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Is Mindbody Capital Right for Your Business? 

By Kristin Abel

August 1, 2023

After a few challenging years for wellness businesses, the outlook for the future of wellness is bright! You may be planning next steps for your wellness business, such as hiring more staff, adding new wellness services or modalites, upgrading your equipment, or opening new locations so that you can serve more people in your community. But growth isn’t free, and business owners often struggle to get financing needed for growth. Mindbody Capital comes to the rescue, with fast, easy financing for you, dropped into your bank account in a matter of days, with just a few clicks. 

What is Mindbody Capital? 

Mindbody Capital is a financing solution for Mindbody customers that is easy to access, has no paperwork, and no delays waiting for approvals or onerous credit checks. Think of it like borrowing money from a family member who knows you and understands your business, without having to ask! This unique financing solution is designed to help you manage the short-term cash flow needs of your business, make investments into your business to expand and grow, or tackle a sudden repair.  

Who is Mindbody Capital for? 

There are several reasons why access to capital might be harder for some businesses as compared to others, and women and / or minority owned businesses and businesses with limited collateral (hello, yoga studios!) are examples of businesses that struggle with access to capital. And sometimes as a business owner you need access to capital in a few days, and can’t afford to wait a few weeks. 

How can a fitness and wellness business use Mindbody Capital? 

If you are eligible and pre-approved, your Mindbody Capital offer is presented to you on your Mindbody dashboard. Repayments are based on daily sales, with no need to remember payment dates, special terms or interest rates.  There is one flat fee to access the capital.  

Here are some ways that a wellness business like yours can use Mindbody Capital: 

1. Managing short-term cash flow needs 

Managing cash flow from month to month can be challenging, especially if your business revenue  fluctuates due to seasonal changes (like the dreaded summer slump), or if you have start-up costs for new revenue streams or special events. 

If your business slows down during the holidays or the summer months, but your fixed costs don’t change, Mindbody Capital can provide funding to cover the slower months until revenue recovers. Mindbody Capital is also an ideal solution for covering upfront costs for future revenue streams such as teacher training, upcoming retreats, or a large marketing campaign.  

2. Purchasing new equipment or expanding the business 

To keep new members coming, and retain current members long-term, wellness businesses must continuously look for ways to improve the client experience and create an environment that encourages retention. A great way to do this is by investing in new state-of-the-art equipment, adding a new modality or even a new location. However, these investments can be costly and may require significant upfront capital, and there will likely be a delay before the new revenue comes rolling in. 

Maybe you need new pilates reformers to relieve a waitlist, or maybe you want to expand by adding a treatment room, or a heated sauna, or even open a new location and need a down payment to secure the space. Mindbody Capital can help, allowing you to make these investments easily without dipping into cash reserves, taking on credit card debt or seeking a bank loan. 

3. Covering unexpected expenses 

Running a business comes with unexpected expenses that can take you by surprise. For example, a piece of equipment may break down, or you may close for a few days due to bad weather. These expenses can strain your business's finances when you least expect it. 

Mindbody Capital can help you cover these unexpected expenses by providing quick funding to replace the equipment or cover payroll for staff who may not have been able to work during a closure. Or maybe the A/C goes out as you head into the summer months, and you don’t want to use your cash reserves for the repair.  

How is Mindbody Capital different from a loan? 

Loans often require you to submit personal data or credit checks, but Mindbody Capital is a cash advance based on the sales history of your unique business. The advance amount is based on projected future revenue and is paid back based on a percentage of future sales, plus a flat fee. 

And it is easy to secure! If you are eligible, your offer is presented on your Mindbody dashboard. When you accept, you’ll agree to a rate of repayment and an estimated pay-off time, as well as a flat fee for the advance. A percentage of daily payment processing deposits will be deducted each day. This means that on slow sales days, your payment will be less, and on good days, your payments will be higher. And no questions are asked about why you need the funds. Isn’t that nice? 

When is Mindbody Capital not the right financing choice? 

While an advance from Mindbody Capital can be a great option for many reasons, there are times when accessing this capital may not be the best choice for you.  

For example, if your cash flow is strained due to low revenues, memberships or conversions, a cash advance will not help, and will likely just make the struggle harder, as the repayments come out of future revenue. You’d be better off hiring a Mindbody Business Consultant to help you shore up your systems, pricing and retention strategies to grow your business.  

Also consider how much time your business needs to grow revenue or cover expenses with the advance. If it is just a few days or weeks, then the flat fee, while convenient, might make Mindbody Capital more expensive financing that some of your other choices. Be sure to consider all the costs before you click! 

And lastly, while there are plenty of reasons why businesses may choose to borrow money to fuel growth, Mindbody Capital is just one resource. Consider all of your funding options for your business as part of your strategic growth planning for the future. 

Mindbody Capital can be a valuable tool for wellness businesses looking to manage their short-term cash flow needs or make investments into their business to expand and grow. 

Learn more about Mindbody Capital.

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About the author:

Kristin Abel headshot

Kristin Abel

VP of Finance

Boutique Fitness Broker & Mindbody-Certified Business Consultant

Kristin Abel is a serial entrepreneur with a passion for business and wellness, and has built her career combining the two. With over 15 years of experience as a CPA serving small businesses and 17 years as the owner of her own successful yoga studio, Kristin brings a unique blend of expertise to her current role as a consultant and advisor to fitness and wellness businesses with Boutique Fitness Broker. As a wellness business consultant and coach, Kristin has spent the past few years serving boutique fitness studio owners, helping them to create systems for success and achieve their business goals. As a self-proclaimed math nerd and former yoga studio owner herself, Kristin is deeply committed to helping boutique fitness businesses thrive and reach their full potential.

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