As of April 1st 2025, changes to business rates in the UK mean that many businesses in the fitness and leisure industry are now facing a noticeable jump in costs.
Martial arts club owners across the country are rightly feeling frustrated and concerned, but we’re not here to debate the fairness of these changes. What matters most now is how your club responds.
Whether you’re a single club or you have multiple sites, navigating this kind of financial pressure isn’t easy.
The good news is that there are practical ways to lower your overheads and open up new income streams, even in the face of rising costs. Let’s break them down.
Streamline Where You Can (Without Compromising the Member Experience)
The first step is to take a closer look at your day-to-day operations. You might be surprised where small savings can add up, particularly in areas that have gone unchecked for a while.
For example, are there classes on your timetable that consistently have low attendance? You might want to consider trimming or combining them to reduce staffing and energy costs.
Another situation we see frequently is clubs paying for several different software tools, subscriptions, or services when they could actually condense everything into one system that does it all for one monthly fee.
It could also be worth amending your staffing rota to better reflect peak times and reduce unnecessary hours during quieter periods at the club. It’s not about cutting the heart out of your offering, it’s about trimming the excess so your core services can thrive.
Explore New Income Streams
You don’t need to reinvent your club to generate extra income. Instead, build on what you already do well. Even if your club isn’t being affected by the change in business rates, exploring alternative revenue streams is a great way to give your business extra financial stability and competitive advantage by offering value-added products to enhance the member experience.
For instance, some clubs are:
- Running additional training sessions
- Offering virtual classes
- Selling merchandise and physical products
- Exploring corporate partnerships
Diversifying income secures the future of your business and allows you to adapt to new challenges. Review the resources you have on hand, consider what your target audience might want and think of a way to deliver it to them. Read more on exploring new income streams here.
Get a Clear Picture of Your Numbers
When costs go up, it’s tempting to make quick (and sometimes irrational!) decisions but without context, it’s easy to miss the bigger picture. A clear view of your finances can help you stay calm and proactive.
Rather than just looking at your bank balance at the end of each month, ask yourself:
- What areas of your business bring in the most consistent revenue?
- What expenses have increased subtly over time?
- Which services or classes are costing more than they bring in?
Your club management software can help with this by tracking attendance patterns, automating billing, or helping you forecast based on past trends. The more you understand your numbers, the more confidently you can move forward.
You Don’t Have to Figure It All Out on Your Own
It’s important to remember that you’re not alone in dealing with this change. Business rates have increased across the sector, and a lot of club owners are in the same boat; trying to cope with higher overheads while maintaining value and retaining members.
Connect with fellow club owners to share ideas and lean on your team – sometimes your instructors have great insights about what’s working on the ground.
Don’t be afraid to reach out to your software provider to see if there are tools or reports you could be making better use of, or if you feel like you’re not being supported, see what other management software is out there!
You don’t need to go it alone in times like this. Collaboration can be one of your biggest assets.
This year’s changes to business rates are far from ideal, especially in an industry that already runs on tight margins. Putting your frustration aside, the most important thing is what you do next.
By tightening operations, exploring creative ways to grow revenue, and staying close to your numbers, you can adapt without compromising the service your members know and love.
ClubRight is the go-to management software for martial arts clubs, taking care of everything from membership management and billing to class bookings and online joining, plus a whole lot more. Give us a call today on +44 (0)203 884 977 or book a free online demo with one of our product experts to find out why we’re trusted by more than 1000+ fitness businesses across the UK.
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