Some payment processors announce 14-day holds on funds. Others say they “can’t guarantee” they won’t implement holds against potential client chargebacks on April 1.
With payment processors announcing holds on funds, we’re not recommending a change in gym management software. That’s a risky move because it will require capturing clients’ payment information again, plus a few business days for processing. And there’s no guarantee the new platform won’t implement holds in the meantime. If a potential disruption in cash flow is a huge risk, take action fast:
1. Narrow the gap. Ask for a different payment schedule on your rent, loans and other expenses. Cut payroll and monthly bills where possible (for example, you likely don’t need internet service at the gym right now).
2. Use cash-flow boosters: For example, we like online classes for kids or Driven Nutrition’s three-day payout at 40 percent commission on supplements.
3. Build a long-term bridge by accepting payments for your new online coaching service through a different gateway, such as PayPal or Square. Diversify.
4. Don’t sacrifice long-term stability by offering paid-in-full memberships at discounts. Eventually, this crisis will end. If you undermine your policies or values now, you might not be able to recover later.
CDC director Dr. Robert Redfield says “this virus is going to be with us” and we should be prepared for more social-isolation measures for the next 24 months. Read the NPR interview: Click here.
Chris Cooper: “How to Help Your Clients Most”
The Two-Brain Business COVID resources page is updated regularly with new info.