I wish to open my own Fitness Center

[STORM SHADOW]

I have a small bus loan guarantee from the military of $100g's... any thoughts or ideas from some of you other small business owners... let me know.

So far I've been checking out awesome huge warehouses in the Golden area.. $4 a sq/ft... I want 10,000 sq/ft. These warehouses have alot of parking.

One of my ideas to help out my bros and get advertising... hmmmm maybe if I can get it open... make a deal with Big A to advertise here and all 'OUT OF TOWN' brothers/sisters on vacation to Colorado get to use the gym no charge... yeahhh thhhhat's the ticket!

THE STORM

 

[littlemack]

Ask around Storm, but $4/sq.ft sounds like a tough way to get started! I know its all relative, as we all live in different parts of the country, but with only a $100g's you'd go through that in a hurry within the first few months. I'd try to stretch that loan as far as is practicle. 1-2 years if possible. I always work to achieve a 3-5 year break even, and 2 years is probably more preferred.
One of the most successful things I've seen my local gym do was to comp a few of the young local bodybuilders and business owners that are the most well known guys in town. On guy who is a bar owner and bodybuilder that has probably filled 30-40% of that gym. They also give 1 free month to all people who have referred others. I really like that angle as I have applied it in another business and it worked really well. Do a search on here, b/c I know all of this has been discussed before in some previous threads.
Peace Out.....

 

[Coopie]

You're going to really have to be frugal with only $100K. My opinion would be to get a few silent partners to "buy into" your biz. If you get 5 guys with $50K each, you've now got an additional $250K and now you're in the right ballpark in terms of startup costs.

You have an agreement drafted in which you "buy out" the partners over the course of 5 years. You also stipulate that they have no decision-making capacity, etc. You give them a percentage of the profits for the 5 year term and then the place ais all yours after 5 years. That's how most of the stand-alone gyms here in NYC are funded. In fact, even the franchises usually have 5-15 guys involved as partners due to the stringent requirements, but they get bought out in a scheduled basis.

In my experience, the best revenue for gyms stems from advertising. Selling advertising space or having advertisers "sponsor" your classes, etc. One example would be the mini-billboards over the urinals in the mens bathroom or in the stalls in the woman's bathroom. A gym can charge $5,000 per month for each advertisement per every 1,000 member they have. MY friend's gym is currently generating over $200,000 monthly from advertising revenue alone.

 

[STORM SHADOW]

Ask around Storm, but $4/sq.ft sounds like a tough way to get started! I know its all relative, as we all live in different parts of the country, but with only a $100g's you'd go through that in a hurry within the first few months. I'd try to stretch that loan as far as is practicle. 1-2 years if possible. I always work to achieve a 3-5 year break even, and 2 years is probably more preferred.
One of the most successful things I've seen my local gym do was to comp a few of the young local bodybuilders and business owners that are the most well known guys in town. On guy who is a bar owner and bodybuilder that has probably filled 30-40% of that gym. They also give 1 free month to all people who have referred others. I really like that angle as I have applied it in another business and it worked really well. Do a search on here, b/c I know all of this has been discussed before in some previous threads.
Peace Out.....

$4 is a tough way to get started? This will really get ya then... the first place I looked at with the best location off of a busy highway is $22 sq/ft!!!

THE STORM

 

[STORM SHADOW]

You're going to really have to be frugal with only $100K. My opinion would be to get a few silent partners to "buy into" your biz. If you get 5 guys with $50K each, you've now got an additional $250K and now you're in the right ballpark in terms of startup costs.

You have an agreement drafted in which you "buy out" the partners over the course of 5 years. You also stipulate that they have no decision-making capacity, etc. You give them a percentage of the profits for the 5 year term and then the place ais all yours after 5 years. That's how most of the stand-alone gyms here in NYC are funded. In fact, even the franchises usually have 5-15 guys involved as partners due to the stringent requirements, but they get bought out in a scheduled basis.

In my experience, the best revenue for gyms stems from advertising. Selling advertising space or having advertisers "sponsor" your classes, etc. One example would be the mini-billboards over the urinals in the mens bathroom or in the stalls in the woman's bathroom. A gym can charge $5,000 per month for each advertisement per every 1,000 member they have. MY friend's gym is currently generating over $200,000 monthly from advertising revenue alone.

Wow! that's good income!

THE STORM

 

[JETHRO TULL]

Some day soon!

I think it would be fun. Phil has his own gym...he might be able to help you with additional ideas, Stormshadow.

 

[Macdaddy]

10,000 sq ft isn't that big. There are some houses in my neighborhood with 5000 sq ft.

 

[STORM SHADOW]

10,000 sq ft isn't that big. There are some houses in my neighborhood with 5000 sq ft.

A 5000 sq/ft house is big for a house and not usually on one floor.... a gym at 10,000 on one floor is not small.

THE STORM

 

[Macdaddy]

I guess 10,000 would be a fair size. I guess it depends on how much equipment you are planning on having and what other types of add on's you plan on having (ie juice bar, saunas, large locker rooms, nice big entrance....

Phil, how many sq ft is your gym?

 

[Wynn]

I remember that you can get surplus gym equipment when the bases clear out the older stuff for new. You might want to investigate it to cut costs.