I recently put my two boys in a boxing gym. While looking at them train, I thought, man, we can do that. I have a brother-in-law who is a boxer and he can help me out. I think that with his skill and the available resources that our out there for minority veterans like myself, we could get something started. I just need some advice of what to expect and/or what I should also be thinking about. Thanks again!
Foremost, "thank you" for your service.
Second, given that you're in Irving (where I worked once) ... I'd suggest you reach out to Dallas local Mark Cuban: email@example.com This seems to be just the sort of thing he'd relish ... best wishes for success!
The two highest constant cost to your business would be the commercial space and insurance. Have a budget for your business by calculating all over head costs first and cut the cost where you can.
I am in Commercial Real Estate and business development and I find that most businesses that need a space make mistakes by getting into a lease that is way over their head in cost for the start up. Shop around for a cost effective space and then a good insurance. You will need a good insurance because of a high injury risk business.
Hi Alvaro - some high level things to consider before embarking on the venture:
Per Jerry's reco - make a business plan. This would include for example:
- capital investment - how much money to start and run the business (including padding on operational costs until you break even and can start paying yourself - that also includes money to live off of until you can produce income . Budget what it costs for your living expenses (home, food, car, etc) - do you have savings to cover that for 6-12 months while the business gets rolling? Also budget what will it cost to run the business with zero clients - rent, utilities, insurance, payroll, etc. - also you'll be paying a lot of that out of pocket until your revenue can cover these costs.
- operational aspects such as location, lease cost, lease contract, build out, inventory (e.g. punching bags, mats, gloves, towels, etc) hours of operation, number of employees, cleaning services, laundry services, etc
- homework to establish business (license, insurance, etc).
- Investigate your competition: as you realized yourself, the barrier to entry is low to start such a business so as you create the plan and do the research, make sure you'll be able to attract enough customers. In the face of competition, what will you offer that's different or better - don't make it just about price. If you don't know, go for a class or two at all of your competitors' gyms to learn from them first. What do you like, what would you do differently, how would you price membership,
- Marketing and Sales: decide how are you going to find clients and market the business - e.g. facebook ads, google search words, traditional post cards/flyers, etc. To that point, you also want to decide who do you want to attract, kids, young professionals, stay-at-home parents, corporate clients, etc? That will impact your marketing - what you do and what tools you use to reach those audiences. Then, plan how will you sell the membership - free trials, groupon as lead generation but ultimately, what will one pay to be a member and types of memberships - a per visit charge or monthly/annual. Also what types, group classes only, private instruction, etc. I don't know much about this area but gather most fitness companies focus on subscription models so you get client's funds whether they show up or not.
These are generic guidelines but I hope it helps get you thinking and planning for a successful gym! Happy to answer additional questions . Feel free to private message me for clarifications
Check at your local Chamber of Commerce. Also if they do not have a representative of the SBA (small business administration), see if the can hook you up with one. Also, some of the larger Chambers have a SCORE, group which are business execs who help people layout the business plan, you may need to go to a larger city for this. All in all it can be a one stop shop.
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