Opening a fitness center requires a lot more capital and funding than most business ideas. You have to purchase equipment, fitness machines and allot for luxury amenities such as the shower/sauna/locker area and the swimming pool. You are most likely going to need a loan or outside investors to get your fitness center up and running.
Here’s How to Get Started.
Before anything else, invest as much personal capital as possible. It will help lenders and investors know you’re serious and it will increase your chances of receiving funding.
1. Create a Business Plan.
Build a comprehensive business plan that outlines your vision as well as your expertise and experience in the industry. Be sure to add the combined experience of everyone on the management team, as well as key employees and any business partners.
2. Do the Math.
Calculate all of your startup costs and write out the projected operating costs, capital expenditures and revenue for three years. Thoroughly research the industry for information on the demographics and costs of operations. Be sure to include the cost of vendors and who those vendors will be. Be as honest and transparent as possible.
3. Compile All Financial Data.
Every business owner and investor has to provide full financial records in order to submit an application for a loan. Those documents include: personal tax returns for 3yrs, bank statements, real estate documents, personal assets, retirement accounts and anything else being used to qualify for the loan.
4. Seek out a Business Partner.
If you don’t want to take out a traditional business loan, you can always seek out a partner with complimentary skills and/or services to go into partnership with. Be sure to sign an agreement regarding financial contribution, company control and repayment.
5. Seek Sponsorships.
You can partner with local vendors and business in exchange for exposure. Sponsors will be able to advertise and share their services with your customers. While this is a great idea, be sure to make sure your sponsors align with your business (i.e. meal prep services, nutritional supplements, athletic wear, etc).