CLIENT PROFILE: Alternative Health Studio offering specialized exercise, rehabilitation and massage appointments and classes. The business is growing steadily but experiencing profitability and facility issues that impact its success.
KEY BUSINESS CHALLENGES:
- With over 2 years in operation revenues are accelerating but business not yet profitable. Gross Margin and growth patterns vary significantly by appointment and class, (group vs. individual), type but this is not being captured by the current financial reporting system.
- The current studio layout/configuration is problematic and is creating congestion along with staff frustration and the owners are considering moving to a larger and more expensive facility.
- The business enjoys a powerful competitive edge but this is not reflected in their digital platforms.
- With expanding revenues financing will likely be required but the business is currently working with a limited Line of Credit.
- We recommended a low cost monthly/annual Revenue, Gross Margin and Cash Flow budgeting and accounting process designed to better focus the business on the more profitable and expanding activities.
- We recommended caution in moving from the current facility and suggest first explore engaging a commercial interior designer to present re-configuration options, pursuing landlord for available adjacent space, improve class and appointment scheduling efficiency – while concurrently conducting a search for an alternative facility.
- We made a series of suggestions relating to more powerful website and social media messaging.
- Some specific Line of Credit expansion and financing options were recommended.