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The Health Club ‘Trick’ that Can Create Cash-Flow Stability for Any Business During Recession

Press release January 9, 2009 Business

Cash-flow is ‘King’. Any small business owner knows that even a modest drop in cash-flow can reap dire consequences and lead to bankruptcy in little time. However, there is one simple ‘trick’ that can be ‘stolen’ from health clubs that can solve cash-flow problems fast.

Swanage, Dorset, UK, January 9, 2009 - Henry Baker, Dorset based marketing expert claims he can help solve any small businesses cash-flow problems in very little time.

"I first realised the power of this strategy while doing a 5km run on a tread mill at my local gym about 5 years ago," says Henry. "I was on the last 1km, pushing hard and began to think. I'd renewed my membership that day and 'plumped' for the joint membership of £64 per month (which was clearly good value as a single membership was £44 and my fiancée had wanted to join)."

"My membership number was 2,343 and I'd asked the chap if that was the number of members they had. His response was 'No, some of those have expired, we have around 1,700.'" "I did some quick maths in my head. £44 times 1,700 - that's £74,800 a month. Even if 50% are joint membership that's still £64,600...Per month...Every month, even before anyone has been to the gym!"

"But what really got my attention was there were rarely more than about 15 people in using the gym!" "I finished my run and red faced, sweating, I stumbled over to the gym manager and asked him: a) Of your active members, how many actually use the gym? b) Did the active members that didn't use the gym complain about the money they'd paid but not used?" "His answers were as I expected. Only about 20% of members used the gym, and they'd had few refund requests ever!"

"That means the model they use can sail through even the most severe of recessions with stable cash flow allowing them to spend well on attracting and keeping clients. Had they been reliant on single transactions would have left them needing to be frugal about spending money."

Henry concludes that any small business can and SHOULD use this model immediately. A percentage of clients will happily pay a certain amount of money every month, automatically billed via direct debit or credit card in return for two things: a) Getting more value than they pay. If they automatically bill for £50 a month, give them a little more in business money e.g. £60. You'll still make more! b) Treat them as VIPs'... Have a range of V.I.P 'bragging' benefits e.g. fast booking, dedicated booking number, free gifts, member lounge, and member parking etc...

Mr.Baker is available for interview, articles and the right speaking engagements and can be contacted on +441929 427744.   Mr. Baker has over 10 years of sales and marketing experience with some of the World's leading corporate sales organizations, as an entrepreneur, business owner, real estate investor and internationally respected trainer and educator. He has directly helped over 800 small business owners grow their businesses and tens of thousands more via his business growth tips and secrets.