How to Manage Your Cash Flow During a Facility Renovation, Refresh or Club Opening

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Serving the fitness industry with quality equipment over the past 32 years has afforded our team at Power Systems the great pleasure of being involved with grand openings and renovation projects of all sizes. We understand that purchasing new fitness equipment – regardless of the size and scope of the project – is not only a meaningful investment but also contributes to the success of your fitness programs and ultimately, your business. Count on Power Systems as a trusted partner to help you take your facility design project from design concept to reality.   


When building a budget for a fitness facility design or renovation project, it’s easy to forget that there are more expenses to account for than equipment alone. Power Systems can assist you with each of these budget line items – some commonly overlooked: 

  • Equipment: IHRSA* recommends that large health clubs budget 4-5% of annual revenue, beginning in year 2, to equipment upgrades. These can include Cardio and Strength Training Machines, Free Weights and Barbells, Studio Equipment, and Functional Training Equipment.
  • Equipment Storage: Did you know that one of the top 3 reasons members leave a facility is overcrowded and unclean facilities* (IHRSA). Upfront plans for storage for all fitness accessories will allow you to eliminate clutter free corners and wall space and maximize every square foot of your facility with organized, attractive, and wide-open training spaces.
  • Flooring: Take the time to think about the way you want your facility to look in the beginning. You can create separate training areas without breaking the budget with different flooring options. Look at using Rubber Flooring for common areas such as the cardio deck and main weight floor, Turf for Functional, Small Group, or Athletic Training, and hardwood or laminate for the Studio. 
  • Shipping: When ordering equipment in bulk, your order is often processed as a freight shipment and additional shipping fees apply. When you build a quote with a Power Systems Sales team member, we are happy to provide a freight shipping calculation or estimate.
  • Installation: Large fitness equipment pieces, comprehensive storage units, and flooring will require assembly or installation. If you don’t have a full maintenance team in place, Power Systems has relationships with regional companies that can assist in equipment assembly and installation.


Allocate your costs over time and by spreading out equipment expenditures to offset the high costs of a grand opening or renovation. With project phasing, discuss the full vision of your project with our equipment experts and we can assist you with breaking the full project into phases based on programming goals. Install one room or section at a time, paying for each phase as you go.

Project phasing also allows you to adjust your budget based on the cash flow based on the success of your new facility or program. Count on Power Systems to break down the complete project in as little as two phases or more if needed to give you the peace of mind that comes with time phased budget planning. 


Power Systems can assist you in every phase from budgeting, space planning, project phasing, and financing. Build a financing plan with one of our preferred financing partners to discuss options that align with your budget and chase flow. Once your design is complete and the agreement is finalized, the ordering process will begin!

Just getting started? Don’t worry – we are here to help! We can’t wait to hear about your vision to impact health and fitness in your community. Click over to our website to begin your Facility Design Plan or Time Phased Budget and Planning Project.  

*IHRSA – Health Club Business Handbook

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About Power Systems

Founded in 1986, Power Systems (PS), LLC is a leading provider of fitness and performance products and is recognized throughout the sports and fitness industries for its complete selection, superior customer care, and fast delivery. Power Systems (PS), LLC is committed to quality, innovation, and service through our knowledgeable team that is dedicated to exceeding customer expectations.