How Much Money Can Working with a PEO Save Gym Owners?

A professional employer organization (PEO) can be a valuable tool for gym owners that are searching for ways to save money, especially during a year when nearly every small business is struggling financially. Working extensively with the right PEO can save your gym thousands of dollars each year. At NEXOFit, we are proud to assist a wide variety of gym owners with lowering their insurance, marketing, and other types of spending.

What Is a PEO?

If you are like most small business owners, chances are you are constantly searching for ways to save money to increase your ability to make improvements to your gym. Working with a professional employer organization, also known as a PEO, can provide a variety of benefits to several areas of your business, such as your gym's payroll, benefits, taxes, regulatory compliance assistance, and other aspects of HR.

A PEO can help you improve the operations of your gym by identifying areas in which your gym may be losing more money than necessary, reasons why you may be struggling to retain employees or members, and other factors that may cause your gym to struggle and potentially become at risk of going out of business. The PEO can also walk you through steps you can take to make changes to your situation to help you save money and improve the overall success of your gym.

Although the assistance of a PEO may be utilized by any type of business, it is by far the most common among small to medium-sized businesses across a variety of industries. Because many gyms have a relatively small number of employees and depend on monthly memberships to be able to pay employees, bills, and other costs, they are especially likely to benefit from a PEO, especially during a year when many gyms are struggling.    

Typical Costs for Gym Owners

As a gym owner, you likely have a wide variety of recurring monthly and annual costs. From insuring and maintaining your building to paying your employees' salaries and purchasing new equipment, your overall spending may be higher than it needs to be. Although not all of these costs are negotiable, working with a PEO can save many gym owners thousands of dollars each year, and this money can be repurposed to make improvements to your gym that you would otherwise be unable to afford.

How Can a PEO Benefit Gym Owners?

Working with a PEO is one of the most effective steps you can take to identify both ways your gym can directly save money and ways to bring in more money to increase your overall budget. Although partnering with a PEO comes with a minimal fee, these three benefits can save your gym a significant amount of money in the long run.

Grow Your Membership

Businesses that utilize the assistance of a PEO often grow 7-9 percent faster than businesses that do not. If your gym is losing money due to declining membership in recent months as a result of restrictions, closures, and your members' need to minimize spending, a PEO can help you identify steps that you can take to make your gym more appealing to potential new members as restrictions continue to ease and residents of your city begin to search for new options for staying fit to increase your income each month. Depending on the size of your gym and the amenities you offer, increasing your membership can bring in an extra $10-30 per member each month, which can make a significant difference in your annual budget.

Improve Employee Retention

If the uncertainties of this year have caused your gym to lose employees in search of a more stable career, a PEO can help you identify solutions for improving the benefits you are able to offer to make sticking with your gym until conditions improve more desirable. Many gyms and other small businesses do not traditionally provide the same type of health insurance packages, 401(k) plans, and other benefits as large companies, but working with a PEO allows you to provide them for your employees at a lower cost than they would be without this assistance during a time when they are needed more than ever. Depending on the state you live in, a PEO can save you up to $2,400 per employee for health insurance alone each year.