James Sinclair's Business Broadcast £30k per Month Leisure Business with Cashflow Struggles!
Jan 15, 2024
In this engaging discussion, James Burt, a skilled mind behind Phonic Media and Entrepreneurs University, shares his insights on financial challenges in the leisure sector. They explore managing cash flow while dealing with profitability issues and loan repayments. The conversation dives into the struggles of operating indoor leisure businesses and the necessity of strong landlord relationships. Burt emphasizes the importance of honest conversations about real financial struggles in contrast to social media portrayals, encouraging aspiring entrepreneurs to adapt and strategize for success.
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Why Hospitality Businesses Struggle With Cashflow
- Hospitality and leisure suffer extreme cashflow volatility from seasons and weather.
- These businesses face many turnover taxes and levies that amplify cash pressure.
Giving Away 20,000 Vouchers Failed
- James gave away 20,000 free vouchers during a hot summer and almost no one came.
- Weather can nullify even extreme promotions in indoor play businesses.
Add Complementary Revenue Streams
- Fold complementary revenue streams into the same building to share overheads.
- Use the same rent and rates to add services like nurseries or classes and boost profitability.