Top 5 Ways Business Owners Are Using Mindbody Capital
This information contained herein does not constitute financial, legal, or other professional advice and is meant to be used solely for informational purposes. It does not take into account your specific circumstances and should not be acted on without full understanding of your current situation, future, and/or objectives by a qualified professional. Mindbody assumes no liability for actions taken in reliance upon the information contained herein.
The beginning of the year is a great time to focus on taking stock, setting goals, and securing the resources required to make your vision a reality. In a recent Mindbody survey, our customers indicated they're planning to actively invest in strategies that will expand their business in the next one to three years, and 34% said they plan to apply for financing in the next six months.
Mindbody Capital leverages our data and technology to offer customers like you a new way to access financing. These offers are different than traditional loans in a few key ways:
- They’re fast: You can expect the funds within two business days of accepting your offer.
- They’re seamless: Payment happens automatically via a percentage of your daily sales.
- They’re flexible: No monthly minimum payments, late fees, and can be used for any business purpose such as repairs, remodel, payroll and hiring.
With nearly $9M advanced in the first five months of the program, Mindbody customers—from single location businesses to leading wellness enterprises—are taking advantage of these benefits. We spoke with Capital customers to understand how they’re using their advances to rebuild, innovate, and expand their businesses.
1. Payroll and hiring
Consumers tell us that they’re returning to in-person classes and appointments because of the incredible experiences that stellar staff members can offer—ones that they can’t replicate at home. However, with more people leaving their jobs than ever before, hiring and retaining staff is one of the biggest challenges that owners face. Seasoned talent demands top compensation, while newer staff often requires comprehensive training—both of which add up. Investing in your team can lead to increased retention of both employees and clients in the long run, but it requires time, energy, and money upfront.
Jess Evans, of Dance Factory Fitness, accepted an MCA of $1,000 and “used the money to assist with costs associated with building our Flagship Studio— specifically hiring three instructors to start their training. It was super helpful to get fast, easy access to funding without a lot of hoops to jump through like a traditional business loan.”
With Mindbody Capital there's no upfront fee or application process. Just log into your software to see if you have an active offer, accept it in as little as two clicks, and receive the funds in as little as two business days. In today’s competitive job market, this helps you move fast and redirect your energy where it’s needed most: your business and your people.
Demand for fitness, wellness, and beauty is back (and, in some places, stronger than ever) as consumers reprioritize their overall wellness and form new routines. This is great news, especially if you’ve positioned your business to capitalize on this surging demand through strategic marketing and customer acquisition. At Mindbody, we’re seeing top brands execute a two-pronged approach: marketing campaigns to revive their digital presence and larger brand refreshes that breathe new life into their physical spaces.
Of course, the best marketing strategy can only get you so far—you also need the funds necessary to execute. When you accept an offer from Mindbody Capital, you won't deal with interest or late charges—just a single, flat fee that’s paid over time. This means that you know exactly how much you’ll owe with no surprises, allowing you to plan your next campaign with confidence.
From a quick refresh to going high-tech, owners are purchasing new equipment in 2022. It's difficult to attract new customers and retain existing ones with equipment that’s been worn down from use or is simply outdated. In addition, studies show that consumers are looking for the latest and greatest in tech. In the fitness world, this means wearable technology, augmented reality (AR), and virtual reality (VR)—all of which are top trends for 2022 and beyond. At the same time, consumers continue to flock to integrative health experiences that serve their overall wellness via modalities like infrared sauna, cryotherapy, compression, and more—with new advancements rolling out regularly. Business owners are taking notice: A recent Mindbody survey showed that 88% of fitness businesses have already expanded their services to include new integrative health offerings.
Emmanuel Sosanya, of Intentional Fitness, says he accepted an MCA of $11,500 for turf, equipment, supplies, payroll, and even a month of rent. "This allowed me margin while still fully functioning my studio, and is still allowing for me to stay ahead of things with less worry. I absolutely plan on continuing to use this service as long as it is needed and available."
Mindbody Capital’s unique payment structure is designed for owners who are investing in their businesses and expanding their services. You pay the Capital advance via a percentage of daily sales, so your payment mirrors your business performance. This means that your payment amounts will increase only after your return on your investment in equipment materializes into an increase in sales.
Even pre-pandemic, monthly rent has been one of the highest fixed costs for business owners in the fitness and wellness industry. That’s more true now than ever as real estate and rent costs continue to rise, making it difficult to invest in innovation or expansion. If you’re feeling the pinch, you’re not alone: 52% of small and midsize businesses (SMBs) report that their rent increased in the first half of 2022—sometimes over 20% above their previous prices!
JoAnn Lockard, of Breathe & Balance Yoga, accepted an MCA of $1,300 and says, “this allowed me to pay payroll and rent for the studio. The funds allowed me to not stress over the next few weeks as business slowed due to mortgage interest rates rising and gas and grocery costs rising—causing people to tighten up their belts and let go of things like coming to the yoga studio. Mindbody allowed me to feel ease in a stressful time of business.”
At a time when one-third of SMBs report struggling to pay rent, it’s no surprise that owners are taking advantage of Mindbody Capital for support. You can accept an advance to use towards rising rent costs—or simply for the peace of mind of having extra cash on hand.
If you’ve made it through the last few years, your focus may finally be on growth: In a recent Mindbody survey, 44% of fitness business owners and 50% of salon/spa owners said they’re ready to start growing again. At the same time, growth looks different today than in years past. Owners are taking a new approach to identifying and executing on expansion opportunities—one that requires them to stay nimble, do more with less, and think outside the box.
Mindbody Capital was designed with this in mind. If you qualify for an offer, it’ll be visible in your software and customizable, so you can accept only what you need. Eligible owners can use their financing if, when, and how they need it for business purposes, empowering them to take advantage of new opportunities as they arise. Whether growth for you looks like introducing new modalities, running a customer acquisition campaign, or expanding into a second location, Mindbody Capital can help you take things to the next level.