Interview: Financial Management for Sustainable Gym Growth

© FIBO

FIBO in interview with Stephan Schulan – Founder, Partner, and CEO of all inclusive Fitness and Holger Kunzmann – Vice President of Finance at all inclusive Fitness.

For quite some time now, financial management at fitness studios has been about much more than just signing up members. Day-to-day operations also include areas such as chargebacks, debt collection and factoring, upselling, the integration of aggregator clients, liquidity, growth (and its financing), and investment. Added to this are the new structures in the world of financial services, with buzzwords like embedded finance, FinTech, revenue-based financing, and other new B2B financing models.

As the heads of the BestFit Group—which is growing rapidly through acquisitions—you find yourselves right at the heart of financial matters, whether from an operational or strategic perspective. On the other hand, Stephan, you also run your own small studio and are currently modernizing it. And, of course, as part of your M&A activities, you both deal daily with studio structures that are smaller than, for example, all-inclusive fitness centers. 

1. FIBO: Are the issues surrounding financial management similar across the board—or do operators of smaller fitness businesses need to worry less about current developments than large fitness chains?   

(Stephan Schulan) Basically, yes—the core issues are the same, but the priorities shift depending on the size of the business. A single studio often has to focus even more intensively on cash flow planning than a large chain: When are tax payments due? When is the right time to make investments? Questions like these can be a matter of survival for a small business. At the same time, digitalization now makes professional processes accessible and affordable even for smaller operators. Not every solution has to be developed in-house—often, good off-the-shelf software is entirely sufficient.  

2. FIBO: What role does the digitalization of payment and financial systems play in the fitness industry’s day-to-day operations? Can you give some specific examples?      

(Holger Kunzmann) Digitalization is no longer a “nice-to-have” in operations; it’s a prerequisite for efficient growth. Automation reduces errors, saves time, and noticeably increases the payment rate. Specifically, this means: automatic bank posting, seamless interfaces between membership software, accounting, and controlling, as well as real-time reporting instead of delayed monthly closings. This also creates added value for our members, as various digital payment options increase convenience and satisfaction. For us as a growing corporate group, it’s crucial that information is available quickly and reliably. We therefore work with solutions such as Business Central (including Copilot), Lucanet, and Coupa to automate processes and maintain complete transparency over our financial data at all times—so we can make informed decisions while significantly reducing manual effort.  

3. FIBO: For everyone who isn’t selling to you or other fast-growing megaplayers, but instead wants to hit the gas and grow on their own: How is growth possible today as an individual studio or a chain if you aren’t already a multimillionaire yourself?       

(Stephan Schulan) Growth must be one thing above all else: profitable. That’s why it doesn’t start with financing, but with robust planning. Before we carry out an acquisition, it must be clear how it will be financed and how liquidity will develop in the coming years. Only once this foundation is in place does the actual integration begin—and that brings its own challenges every time. Even after many transactions, we continue to encounter new issues time and again. That’s exactly why standardized, scalable processes and an experienced team are so important—and should be established early on, long before you even think about growth.

As far as financing is concerned, it’s advisable to examine various forms of financing and combine them strategically—such as bank loans, private equity, sale-and-leaseback arrangements, or vendor loans. The fundamental prerequisite, however, remains the same: solid financials build trust with banks and investors and form the basis for any successful growth financing.  

4. FIBO: How is the importance of ancillary business currently changing— and how is it evolving or being integrated into traditional studio operations? This also applies to the growing importance of aggregator customers, who, unlike the studio’s own members, do not have a technical connection (e.g., chips) to the studio.   

(Stephan Schulan) Aggregators are becoming increasingly important; especially in metropolitan areas, they cannot be ignored. At the same time, this increases competitive pressure: Customers who come to the studio via aggregators have high expectations regarding quality. If these aren’t met, their next check-in will quickly be at another studio. So you’re held up to the mirror even earlier to see whether your own performance is convincing or not.

Aggregators provide reach but make planning more difficult. This makes full integration into reporting and controlling all the more important for identifying trends early on and taking corrective action.  

5. FIBO: The crucial question in every entrepreneur’s day-to-day life— “Make or buy?”—has long been asked, including in the context of receivables management. However, service providers are increasingly offering to take over outstanding accounts at a relatively early stage—for example, to avoid the hassle and expense of chargebacks or to stabilize liquidity and cash flow. What’s your take on this: Is it better to handle it

yourself—or simply outsource this often tedious work to financial professionals for a fee?         

(Holger Kunzmann) There’s no one-size-fits-all answer here. Once a company reaches a certain size, it’s worth establishing its own accounts receivable management processes. However, external specialists offer clear advantages: less administrative burden, professional dunning procedures, and—depending on the arrangement—faster access to liquidity. In return, debt collection providers naturally want to earn a fee. Hybrid approaches are certainly conceivable and often make sense in practice.

The key is always to take a holistic view of costs, cash flow, and service quality. Not every task necessarily has to be handled in-house. Business owners should regularly ask themselves whether the current process still fits the company’s needs and whether there are more efficient alternatives.  

6. FIBO: This inevitably leads to the question: How important is in-house financial expertise these days for small and medium-sized fitness companies that do not plan to become major industry players?         

(Stephan Schulan) Very important, even if you don’t plan to become a major industry player. Entrepreneurs don’t have to be accountants, but they must understand numbers. Liquidity, profitability, and cash flow are not issues you can delegate and forget about. They determine the success or failure of a business on a daily basis. Financial management is a leadership responsibility.    

7. FIBO: And consequently: How can an operator acquire sufficient expertise (even without a degree in business administration)—or, if necessary, procure it at reasonable personnel costs?         

(Stephan Schulan) Through targeted continuing education, networking with other entrepreneurs, and having a good tax advisor as a sounding board. Those who need more in-depth expertise can acquire it on an as-needed basis rather than permanently expanding their staff. Modern software now automatically generates many reports, making professional financial processes accessible and affordable even for smaller companies.

8. FIBO: What do you see when you look at the world of service providers in the fitness industry—without naming names? Does the supplier market already offer everything a fitness company needs? Are the offerings specific enough, or should there be even more industry specialists—or at least services tailored to our industry?        

(Stephan Schulan) The range of offerings has improved significantly in recent years, and there are now many good standalone solutions. The real challenge, however, lies in integration: too many siloed solutions, too few open interfaces, and still too little industry-specific automation. There is still room for improvement here.

At the same time, AI is currently transforming the entire supplier market, particularly in the software sector, but also beyond. From our perspective, AI doesn’t always deliver on its promises just yet. However, the potential is enormous and will noticeably transform the industry in the coming years. 

9. FIBO: In your experience, where do many operators or business owners underestimate the importance of financial management (including the associated technical solutions)—and what risks do they run as a result?         

(Holger Kunzmann) Many operators underestimate how important transparency regarding their own financial figures is. Those who do not continuously monitor liquidity, cash flow, and accounts receivable often don’t recognize problems until it’s too late. Modern financial systems provide the necessary transparency and help make informed decisions—not only for large chains but also for smaller studios.  

10. FIBO: And conversely: In your opinion, in which areas is too much emphasis placed on financial management and the associated technical features, to the point where wages or tech investments might be heading in the wrong direction?         

(Holger Kunzmann) I often see companies investing in new software first and only then thinking about their processes. Technology can only reach its full potential if the underlying processes are clearly defined. Digitalization should always create tangible added value and not be an end in itself.

11. FIBO: If you could start over in the fitness industry, what would you do differently today in terms of financial management? What advice do you have for young, ambitious “new bosses”?         

(Stephan Schulan) Know your numbers just as well as you know your members. Growth isn’t an end in itself—it must always be profitable. Invest in good processes before they seem necessary, and tackle digitalization early on. Standardized processes pay off in the long run. And seek out experienced mentors early on— people who are honest with you and whom you can turn to for advice.  

FIBO: Thank you very much!