The ongoing lockdown due to Coronavirus all over the world is not just a healthcare crisis but a financial crisis as well. There is an inevitable recession in the works, and multiple industries are already being hit. India’s GDP was already around 4%, and is now being projected at less than 2% for the current financial year. Businesses are losing money and people are losing jobs and taking salary cuts. Thanks to government schemes like Pradhan Mantri Mudra Yojana or PMMY there is some semblance of support, although a Mudra loan may or may not really be enough.
Likewise, the fitness industry is also severely hit. Gyms have been shut for a while. While members haven’t been able to visit and workout, gym staff is also suffering. Gym owners are extremely worried because theirs would probably be one of the last shops to reopen when the indefinite lockdown is over. Here are some of the severe effects that gyms are experiencing.
Sending staff on leave
Premier gym chains with multiple centres are hit, and so are smaller gyms. The ones which are better off are luckier to have sent employees on paid leave. It is not just about trainers, other support staff like cleaners and receptionists are also bearing the brunt. In fact, a lot of support staff has been temporarily laid off. As the lockdown extends, more and more people in this industry are bound to either suffer salary cuts or lose their jobs entirely. Finding new jobs in the Coronavirus situation is also going to be difficult.
Loss of members
While all employees across sectors are facing pay cuts, a gym membership is rendered unnecessary right now. A lot of people are cancelling their memberships. Of course, there are going to be no new memberships, so flow of money will be dismal.
Damage to equipment
Gym equipment needs regular cleaning and maintenance. It has only been a little more than a month as of now. However, as time passes, equipment will need caretaking. Gyms which have let cleaning staff go will especially have a hard time.
What can gym owners do?
Every business is finding never-thought-of workarounds for staying alive. While education has gone completely online, why can’t fitness? Smaller gyms have a big support system from the government in the form of Pradhan Mantri Mudra Yojana or PMMY. Here are some steps that gym owners can take.
There is lesser sense in resigning to fate and more in finding solutions. Check your finances and try to formulate ways of handling salaries, overheads, and survival techniques. Plan for a year of lockdown beforehand to reduce the shock.
While investors might be sketchy at the moment, you can rely on some excellent loans such as the Mudra loan, also known at the Pradhan Mantri Mudra Yojana loan or PMMY loan. It is a useful scheme for small businesses which can help them grow.
The Pradhan Mantri Mudra Yojana is a government initiative to help small businesses. It provides loans upto Rs.10 lakhs. There are three types of Mudra loans that you can avail, as per the size of your business and the purpose. These loans can be availed from a list of banks and NBFCs (Non-Banking Financial Companies) which can be found on the official Mudra website.
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Once financial stress is somewhat off your back, you can think about sustenance of your services.
Remember that your members still want to stay fit, especially the regular ones. They would definitely love guidance while working out from home. You can have individual and group sessions on video call. You can design entire courses online and provide exclusive regimes. That way, your money keeps flowing, and your members also remain intact.
Maintenance after reopening
If you manage to plan finances well now, your business might be able to bounce back strong when you have to.
Your equipment will definitely need maintenance and cleaning. More than that, your gym will need safety measures such as disinfecting. Members will need assurance of it being a healthy and safe space. Maintaining social distancing in the initial days of reopening is also something you should consider.
Although the future seems bleak, it is not the end. Our country has bounced back strong from crises in the past and it will, this time too. Focus on not just survival, but well-being of yourself, your family, your employees, and your customers. Knowing that you cared for them in times of need will earn you their loyalty and support in the long term. Plus, money is not a problem that cannot be solved. You can always consider an option like the Bajaj Finserv Business Loan.
Bajaj Finserv Business Loan
We understand that your small fitness establishment might need a push to stay afloat. The Bajaj Finserv Business Loan, available on Finserv MARKETS can be a blessing for small and businesses. With this product, you can secure a loan upto Rs. 30 lakhs in just 3 minutes! You can use this amount for keeping your business running through difficult times. Do not worry about repayment immediately, as tenures are extremely flexible, ranging from 12 to 60 months. Plus, the entire process is online, convenient, and does not require collateral, amongst other lucrative benefits.
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