Case Study

Make Sure Your Business is as Fit as You Are

This husband-and-wife-owned fitness business came to GrowthLab with a simple goal: grow smarter. While the studio was generating revenue, they lacked visibility into cash flow, profitability, and leadership alignment. With fixed costs, looming tax obligations, and scattered debt, they needed strategic support to get financially fit.

Challenge

Cash Flow Constraints, Tax Surprises, and No Insight Into Profitability

Industry

Health & Fitness

Services

• Cash Flow Forecasting
• Debt Strategy
• People Planning

Revenue Up, but Financial Blind Spots Remained

This small business came to us for some help with practical growth and higher-level leadership. When we first engaged, the business was looking to better manage tax planning and the cash flows surrounding those taxes. They had cash flow issues and were troubled with their debt paydown while looking to refinance. As a fitness studio, their costs were rather fixed and the constraint became maximizing space utilization while anticipating future cash impacts - aka taxes,  payroll, etc.

Clarity on Cash, Profitability, and People

GrowthLab helped the founders:

• Track against annual goals with monthly reviews and alignment
• Uncover where they were losing money, not just making it—using data from classes, workshops, and retail
• Refinance and consolidate debt with a realistic paydown plan tied to projected cash flow
• Restructure their team around customer experience and operational efficiency
• Collaborate with CPAs and bankers to design payment plans that worked inside their forecasts

Our focus: align operations with long-term vision while solving short-term cash and debt challenges.

Debt Down, Cash Flow Up, and Growth on the Horizon

With a solid foundation in place, the business is now ahead of schedule on debt repayment—cutting the timeline from three years to 18 months. Revenue targets are being consistently hit, and the studio is generating free cash flow to reinvest in future growth.

Now, the company is expanding to franchise locations and developing an online video platform, scaling from a local fitness space to a broader wellness brand.

Advice for Other Business Leaders

A fit business, like a fit body, needs discipline, structure, and clarity.

You need:

1. Cash flow tools that account for taxes and timing
2. A clear view into profit per offering
3. A people plan that supports both experience and efficiency
   
   

Final Thoughts

GrowthLab didn’t just help this team get their books in shape—they helped build a business that’s ready to flex.