Being profitable while renting a space
In this video, Barbara Stroup talks about:
- the most profitable activities
- making the right decision
- the main challenge
Barbara Stroup is the founder and manager of Happy Fitness. Find it on happyfitness.lu
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The most profitable activities
My most profitable activities are with my corporate clients, from a perspective of pure profitability over a full business year. Why? Because they’re return clients who bring us work year-round and they’re clients who we have flat rates with. The profit on flat rates is quite significant. It gives us a fairly comfortable working margin.
Optimizing our available space means bringing in a max of customers and when we can’t, we put our space up for rent. I advertised that we had rooms for rent, which is in high demand in Luxembourg, because lots of sports instructors are looking for structures, since they can’t rent a space and pay a lease themselves. Rental income was covering 3/4 of the rent.
Making the right decisions
No business can be healthy without cash flow. Because you can’t make healthy decisions when you’re stressed about cash.
The main challenge
Just plain making rent. If I had to do it over, I wouldn’t have signed a lease. Because the little money I was making was going to rent… at first. That went on for a while. But that’s the challenge, to keep things clean, keep things healthy, and just plain keep things going by paying the rent.