In the early morning of 20th July 2016 at 12.46 am, California Fitness Singapore announced that all their fitness gyms (Bugis, Raffles Place and Novena) will be closed with immediate effect, and that:
This basically means that they do not have sufficient inflow of cash (cashflow) to keep the business going. Now because I do not know the exact accountings (no one does except for their senior management and accounts team).
But what I do know is that
Now I've been using their service for a very long time, I think it's close to 8 - 10 years, and I've been regular with them, so I'm sad of the way things turned out and the way they handled the situation. Ok, maybe they were under a lot of financial stress and hope it'd be better, and they kept it underground so that people could keep signing up so that they can have more cash, but truly, this isn't the way business should be run - it should be engaging, real and connected.
Yes of course, the market has changed to having more competitors from no frills 24/7 gyms, gyms with higher level of service, gyms with physio, boutique gyms, MMA gyms - competition came to play with them. And they didn't evolve.
Now the people who had just signed up or people who had prepaid (like myself, who have another 17 months prepaid) are left in the lurch without warning, preparation or anything.
And this scenario unfortunately, is a common scenario, and is called "cashflow issues" - for us as individuals, entrepreneurs, employees and investors, having good sense and control of our own cashflow is paramount to our success and livelihood.
You have to learn to evolve and grow as well.
You have to ensure that you always have a positive cashflow from multiple streams of active/passive income (I prefer passive income) that is collectively more than your expenses to keep you afloat and safe and more importantly, financially free.
You have to be brutally honest with yourself and your numbers, if the data isn't good, then identify what you have to do, be it:
...then do it.
If you don't know how, that's ok - that's a technical issue - then go and learn.
If you don't take care of yourself and your own finances, who will?