Successfully navigating your gym business through the reopening

Graphical image of blue building with a padlock to illustrate the impact of COVID-19.

I was listening to Michael O’Leary CEO of Ryanair this morning as he announced that it could take the airline at least two years for passenger demand to recover. This is why they are already restructuring the business. While health clubs and studios across the UK are in a current state of suspended animation and being supported by government intervention and landlord/supplier support, it is essential to begin financially modelling what revised trading will look like when the business reopens. People discuss a ‘bounce back’ (the UK government even has a ‘bounce back loan’), but you should not underestimate the time it will take for consumer confidence to return.

 

How comfortable is the British public to visit businesses when they reopen?

This is an interesting YouGov poll from April 20-21st 2020 which illustrates the current sentiment of the British general public.

Chart showing 62% of the British public are currently uncomfortable about returning to gyms (YouGov)

62% of the British public are currently uncomfortable about returning to gyms (YouGov)

COVID-19 financial modelling for independent gyms and studios

Presently I am undertaking some financial modelling that will help independent gyms & studios to gain a clearer picture of the viability of their business across several different scenarios. How much rent can the business afford to pay over the next 18 months? What is the impact of no membership growth for six months? Does my business require a ‘ bounce back’ loan to extend its cash runway? and so on. I am seeking one gym to test the model so please do get in touch. There is no fee or obligation.

YouGov methodology

YouGov conducted a representative survey comprising 1,652 adults across Great Britain (so excluding Northern Ireland). The above results only reflect the views of people that actually attend these venues (1,384 people). There was a statistically significant difference between genders regarding visiting a gym. Females reported being more uncomfortable.