How Enterprise Brands Use Mindbody Capital to Fuel Their Growth
As any growth-minded brand knows, access to capital is crucial for long-term success. Yet, interest rates continue to climb, and the traditional financing process is cumbersome. Lenders often require good personal credit along with collateral or personal guarantee. They also base their approvals on extensive business performance history, which is particularly difficult to prove—even for successful brands—on the heels of the pandemic.
So, while we’re seeing a renewed focus on growth in our industry, financing that growth continues to be difficult. Enter Mindbody Capital.
What is Mindbody Capital?
Mindbody Capital is a new way for fitness, beauty, and wellness brands to access the flexible funding they need, when they need it.
How is it different from traditional financing?
Mindbody Capital’s first product is a merchant cash advance with offers based on a business’s integrated payment processing. Funds are deposited in as little as 1-2 business days and automatically paid off based on a percentage of daily sales. There are no monthly minimum payments, no late fees or interest, and no set term length. The best part: The funds can be used for any business purpose, including payroll, marketing, equipment, or expansion.
“Mindbody Capital is a quick, easy way for our owners to get access to an advance based on the sales history of their business,” shares Brand President of ILoveKickboxing Chris Bushey. “It gives our studio owners the opportunity to leverage their existing, growing businesses and turn our vision into action and implementation, without all the hassle of the traditional loan process.”
How do enterprise brands use Mindbody Capital today?
There are a variety of ways business owners use Mindbody Capital. Here’s what we’ve heard from our enterprise partners, specifically:
To freshen things up. Most brands recommend their locations make updates on a regular basis and provide a dedicated playbook for success. Something that’s often missing? The financing required to fund these new initiatives (e.g., a brand refresh, new marketing campaigns, equipment additions, etc.). “The extra funding has allowed owners to venture into new areas of marketing such as purchasing a booth at community events, do a stronger push on social media advertising, etc.,” says Chief Marketing Officer of We Rock the Spectrum Shane Stahl.
Funding new marketing initiatives has proved critical for ILoveKickboxing owners, too. “We have a lot of positive energy from our franchisees surrounding our brand refresh. But as we talk about all the exciting new logos and colors and graphics and the technology we’re going to be putting into our studios, we also have to balance this energy with a strategic plan for funding the future,” says Bushey. “The last thing we want to see our franchisees experience after all the hard work they’ve put into stabilizing their businesses post COVID is a cash flow constraint. This is where Mindbody Capital comes in.”
To fund expansion. The pandemic created supply gaps in the wellness industry, which means there are a variety of time-sensitive opportunities for wellness brands today. In some instances, this means adding a new vertical or modality, for others it means taking over a former studio space.
To start or expand a franchise. For brands that want to grow but don’t want to take on the ongoing operational and financial burden of owning many locations, franchising is the most efficient option. Doing so, of course, requires an upfront investment.
“With some of our franchise owners expanding into their second location, Mindbody Capital has allowed them to purchase key pieces of equipment and supplies to assist with the build out of that second location, greatly facilitating the speed at which they are able to get these second locations open,” shares Stahl.
For existing franchises looking to increase their footprint, Mindbody Capital can help set new franchisees up for success.
Every enterprise is unique in its goals, strategy, and needs. That said, we’re confident Mindbody Capital can power the next stage of growth for any fitness, beauty, or wellness brand. “We feel like working with Mindbody Capital affords our franchisees the simplicity needed to scale and grow their businesses into the future,” Bushey says.