The private health and fitness industry represents a huge opportunity for brokers. Predicted to be worth £3.9 billion by 2022, entrepreneurs are quickly capitalising on the nation’s growing health and fitness obsession which has in large been driven by social media.
A quick glance at Instagram and it’s impossible to ignore the fact that millions have been made by health and fitness influencers who have built a community of followers looking for inspiration, advice and motivation. This in turn has created an influx of people seeking out specialist gyms, as well as meal prep services and nutritional supplements.
With the nation’s fitness fanatics increasingly demanding more from facilities, there is lucrative business opportunity for operators who innovate and evolve to keep pace with the market.
It’s worth paying close attention to some of the key trends that are set to infiltrate the sector in the next six to 12 months, many of which will require finance.
According to Health Club Management magazine, these include:
- New technology, such as augmented reality, which will become mainstream in the gym class environment – offering the ultimate 360-degree experience
- Emergence of mind gyms, which teach mind-sharpening strategies such as neurolinguistic programming from within the gym environment
- Diversification of boutique gyms as they add more concepts to their portfolios to keep their communities engaged
- Increase in PT training standards – a consequence of consumers demanding more technical information
- Home delivery subscriptions services for gym equipment, giving consumers the chance to try out new equipment in the home for days or weeks before exchanging it for new kit
- In-house recovery teams that give gym-goers access to specialist care from physiotherapists, sports massage therapists and chiropractors.
Of course, taking a business to the next level requires investment and brokers are best placed to provide alternative financing options to help SMEs fulfil their growth objectives.
Lease or hire purchase plans for business upgrades, such as the latest state-of-the-art gym equipment, can give operators access to the equipment that they need straight away, followed by fixed monthly payments. An appealing flexible financing option, funds aren’t tied up in expensive purchases and lines of credit are left open. Similar to lease purchase, hire purchase gives businesses the option to make monthly payments but with an ownership option at the end of the term.
Business loans can also provide quick access to funds – whether it’s to expand facilities, invest in training or step up a marketing drive.
A loan can also help a business respond to unforeseen circumstances, such as fire damage something that benefited a One pm health and fitness client after it suffered a catastrophic fire. Although the gym was due a considerable insurance payment, the owner was left vulnerable to losing customers to competitors while this was processed. He therefore turned to One pm to provide his company with some fast and flexible funding in order to accelerate the process.
An unsecured loan was agreed, which allowed the owner to begin repair work faster than planned and reopen the gym before substantial losses to its membership. Due to the flexibility of the One pm model, the deal was underwritten and paid out far earlier than traditional financing.
The effectiveness of One pm’s product and service meant their client could also benefit from a second unsecured loan to further renovation and undergo a rebrand. As the customer was a perfect payer, the second loan was paid out within a matter of days.
Visit www.onepmfinance.co.uk for more information.