Tag Archives: Cash Flow

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A Quick Guide to Raising Fitness Membership Prices

By Joe Galea

In last week’s post, Help! Should I Discount Paid in Full Memberships?, I covered the impact discounted paid in full memberships can have on immediate and future cash flow.

Up-ArrowAnother strategy to increase cash flow: raise your membership price. But what conditions warrant an increase?

It’s generally a good sign that you can increase your membership price if more than 15% of your memberships are paid in full.

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Help! Should I Discount Paid in Full Memberships?

By Joe Galea

I need more cash for my business. I’m considering offering a discount on a one-year membership if the member pays in full. Is this a wise move?

question-markJoe Galea’s Answer on Discounting Memberships that are Paid in Full:

Thanks for your question! Before I answer, I want to make sure we’re on the same page with the definition of cash flow. Cash flow is simply the movement of money in and out of your membership business.

If cash flow is good, there is always cash on hand for the daily operation of your business. When cash flow isn’t so good, you may need to enter into loans of some sort to survive.

Many factors will enhance or kill your current cash flow, as well as the cash flow you have on hand in the future.

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3 Things a Membership-Based Business Can Do Today to Step Up Cash Flow

By Angela Summa

cashWith all the different types of payment processors and ways to accept payments, it can be difficult to figure out what is right for your business. These decisions are important though as they can make or break your business.

Here are three things you should know about payment processing to help secure your business and step up cash flow. Continue reading

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Spotlight: American TKD Martial Arts – How Taking Money Out of the Mix Leads to Business Growth

By Member Solutions

American TKD Martial ArtsAmerican TKD Martial Arts is on the rise. The Coral Springs, Florida school has moved to a bigger facility in a better location. Also, cash flow has increased by 81% over the past couple years. We recently caught up with successful Owner and Master Instructor, Walter Swaney, to see just how he’s making this happen.

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How to Beat a Cash Flow Drought Like a Pro — Master Kenny Kuek

By Kenny Kuek

As the saying goes in business: “Cash is King!” It really is.

You can’t tell your landlord that you’re the Master of Martial Arts that teaches life skills and self-defense. Your landlord doesn’t care.Bottom line: if you don’t pay your bills, you’ll end up on the streets.

I have visited a number of Martial Arts and Fitness businesses — many that have no problem enrolling members — but because of their lack of financial management, they end up having cash flow problems. There are times you may need to improve your cash flow. Here are some strategies to bring more money into your business:

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Can You Continue to Fund Your Business Growth? A Look at Your Balance Sheet – Michael Connor

By Michael Connor

iStock_ChartCan your membership business continue to fund its growth? The balance sheet can answer this for you right away.

By knowing how to read a balance sheet, you’ll also be able to have a relevant discussion about it – or a discussion about the balance sheet of a business you’re interested in acquiring.

Two other uses: 1) Vendors and lenders can use the balance sheet in considering the creditworthiness of the business. 2) owners and potential investors can use it to help determine the value of the business.

Let’s look at the balance sheet to get a better understanding and get a picture of your financial health.
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6 Tips to Monitor the Cash Flow of Your Martial Arts Business – Master Kenny Kuek

By Kenny Kuek

Martial Arts business is like any other business — to survive or to grow, “cash flow” is paramount. Any small business must measure and monitor their cash flow. Doing so will help you to determine if you need to implement cost control or search for alternative funding. Here is a basic and simple guideline to help you measure and monitor your cash flow.

1. Know Your Student Value

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Know your student value. Student value can be calculated by dividing your annual gross revenue by the number of active students. For example, if you have 100 active students, and gross revenue is $180,000 per year, your student value per annum is $1,800, or $150 per month.

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10 Cash Flow Tips to Stay Strong & in Business [Infographic]

By Member Solutions

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Cash flow is vital to the health of any business. It’s like air to the lungs … it’s what keeps businesses alive. By effectively managing your cash inflows and outflows, you can accurately forecast when sales surges and slumps will happen — and protect your business from a cash crisis.

Check out this infographic with tips to speed up payments and slow down costs — then implement them to keep your business cash flow pumping.

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Why Credit Card Processing Makes Good Business Sense [& Steps to Get Started] – Steve Pinado

By Steve Pinado

describe the imageImagine a brand-new member anxiously walks into your facility, eager to buy whatever is in sight. As he stocks up on gear, ready to make his purchase, you have to break the bad news: “Sorry, we only accept cash”. The member races to find some money but only has a few bucks in his pocket. He has a credit card on hand but you don’t take credit cards. Your member leaves disappointed and you lose a sale.

Is this you? Are you missing out on opportunities to grow your business? People rarely carry cash anymore; and when is the last time you saw someone with a checkbook?

To stay competitive in today’s marketplace, you have to provide what customers demand, and that includes the convenience of paying by credit card.

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Delinquency Management – 6 Tips to Keeping Martial Arts Students on Track – Rick Ellis

By Rick Ellis

PaidOne of the biggest challenges of business ownership is cash flow. It doesn’t matter that you have 500 membership agreements with a value of $500,000 annually. If I can’t access the cash I need today to pay bills, payroll etc., I will find myself with a big problem. My landlord doesn’t care that I have a great accounts receivable balance. She needs a check, and she’s not flexible about it. I also have a responsibility to my staff (the heart and soul of my business) to make sure they are paid promptly and accurately. Finally, Mrs. Ellis appreciates it when we get paid. Go figure!

Below are my opinions only. If you like what you do and it works for you, by all means keep doing it; this is simply how I keep my delinquency rate low. As I write this article, I can tell you that I have a 3% delinquency rate. It typically hovers between 3% and 5%. How? Here are some strategies …

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