Raising capital for any business albeit the industry takes coordinated efforts. While business people start businesses from their savings, this usually runs out at some point especially in instances where the entrepreneur was not very particular on the use of money. A fitness business is no exception and requires funds for the purchase of the necessary equipment, salary settlement for the first few months, license and inspection levies payments among others. Most business do not bother to make their businesses investor ready from the beginning and therefore when they require funding, investors are not willing to put money in these ventures.
The essential question remains how to ensure that the business is investor ready at all times. While this can be pegged in the management, it actually takes the whole workforce to achieve this. The starting point is usually defining the organisation structure such that every employee understands their roles and responsibilities. The structure is also a tool that employees could use to map out their career paths and therefore take their job seriously.
The fitness business could then identify and properly document different systems, policies and procedures in such a way that an investor or researcher could review and understand the organisation with ease. The more information the business includes, the better it will be if investors come knocking. Documenting and setting up these systems, procedures and processes is pointless if the employees do not understand them nor follow them. The employees should contribute to the development and documentation so that they may identify with the developed policies, procedures and systems. This makes it easier for them to understand and follow them for the benefit of the company. In addition, the business should engage in regular updates of the documents developed to capture changes in the internal and external operating environment.
The fitness business should maintain proper accounting records from the onset of business. Records on all assets purchased, any expenses incurred, all debts and also people who owe the business. They should also maintain proper employee logs and records as well as important client demographics. These will help in the determination of the current financial status of the business. All these will help in the projection of future incomes, expenses and liabilities of the business, an aspect that is of utmost importance to any investor.
The business should constantly be working to improve their operations, products and subsequently to increase their market share. This can be proven through constantly improving the marketing tactics and channels. A business that exhibits its desire to do this will win investors without even trying. Most of the time businesses cut on marketing expenses when they start running out of funds, while this may seem necessary, it also shows that the business has not properly thought out their growth strategy. Cutting down on marketing means that the business is more likely to generate fewer leads and therefore make fewer sales. Subsequently, the market share and revenue streams will suffer immensely. If this is not checked, the business may end up making losses and therefore it will be out of business in a few months or years.
Ensuring that the business is investor ready at all times is deliberate. The management should carry out random checks regularly to ensure that the whole business is compliant. It may not seem worth your while at first but it is very rewarding in the end.