I want to start a gym in a community that is lacking a quality gym. I need funding for up to $350K.
I am a career firefighter who wants to give back to the town I grew up in. Downtown 4th street has become a thriving hub for the community and I think a gym would be a great addition. Below is my working business plan.
Swolemates
The Gym Where Grit Fell in Love with Discipline
Staff
Manager/Maintenance: Ben Hayden
Salary*: $2,000/month; $24,000/year
*Raises will be considered as our membership goals are met.
Mission
To provide a gym worthy of the community that it serves. For individuals 16 years of age and older. We will provide a safe and hygienic environment in which you can thrive.
What sets us apart: We have all of the hardcore essentials without the meaningless fluff. So prices do not become over inflated, and you only pay for what you need. We provide an esthetic to motivate you to accomplish your fitness goals. We encourage independent personal trainers to use our facilities at no cost to them.
Location
We want to locate as close to 4th Street Huntingburg as possible.
423 East 4th Street, Huntingburg is the property currently being considered. However, this property is currently for sale with a listing of $249,000. It has 2 stories that includes an apartment, as well as a basement with a loading dock. The apartment would be rented out to create additional revenue if this property is selected. The mortgage will, of course, require an additional source of funding.
Marketing
Create a social media presence: Instagram, FB. Post Daily WOD and inspirational quotes with pictures.
Get out in the community: Set up information booths at local sporting events. Place fliers in local businesses.
Host Tailgate parties for Southridge Football games.
Reach out to Personal Trainers to aid in member recruitment.
Create a partnership with GrassCorp.
It seems that the Latino community is underserved in this market. I want to market to Huntingburg’s Latino population. We will have motivational signs in Spanish—prepared by a native speaker. I want both Spanish and English speakers to feel at home in our gym.
We will advertise the fact that we use Rogue,GORUCK, and other popular brands for our strength training equipment. In this hyper-social-media-landscape, this will draw a young demographic to our gym. Esthetic matters.
How We Will Fund the Project
Angel Investors
Sponsorships: e.g. a business will have advertisements placed next to a piece of equipment they paid for in part or in full.
Small Business Loan/Grants
Possibly use an Equipment Loan and buy the property we use rather than leasing.
Conditional on the 423 E. 4th Street property: $249,000 needed for the property.
Creating Revenue
Gym Membership: $25/mo. w/ $20 join fee
Special events: Volleyball tournaments, basketball tournaments, 5k’s, etc.
Outdoor fitness rental: Kayak rental, GORUCK equipment rental.
JOCKO Fuel Supplements Sales
Merchandise Sales: T-shirts, Ball Caps, Water Bottles, Stickers, Patches
Possible revenue from advertisements on social media if we eventually get a big enough following.
Conditional on the 423 E. 4th Street property: Rent the upstairs apartment for $1,000+ /month.
Goals
250 Members in the first 60 Days after opening.
This will give us a revenue of at least $11,250 in the first 2 months, and a total of $73,750 in the first 12 months of operation.
As a secondary Goal, I would like to increase membership to 500 by the end of the first 12 months of operations. This would make an additional possible revenue between $11,250-$67,500.
If in our 2nd year of operation we had 500 members, our revenue would be approximately $150,000.
Most “non-chain” gyms have 500-1000 members, so I think this is an achievable goal that we can build upon.
Startup Costs
Equipment:
3 Squat Racks $3,600
2 Bench Press $2,000
6 Olympic Bars $1,800
Dumbbells $3,500
3 Benches $1,800
Plates $5,000
Fly Machine $3,500
Shoulder Press Machine $3,500
Leg Press $3,500
Leg Curl $4,000
Leg Extension $4,000
Smith Machine $1,600
Cable machines $6,700
3 treadmill $6,000
1 stationary bike $1,000
Echo Bike $850
Stair Machine $4,000
3 EZ Bars $1,200
Misc. Items (mats, bands, b-bell collars, etc.) $1,000
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Total Est. Equipment Costs $58,550
Building renovations $10,000 Max:
Door with Key Card locking system
Rubber gym floor
Wall Mirrors
Seating (benches, chairs, etc.)
Front desk
Decor
Inspection Costs
Conditional on the 423 E. 4th Street property: Renovation costs would be roughly the same because while the gym space would be ready to use, the upstairs apartment would require some cosmetic work. We would be primarily looking at a property mortgage of up to $249,000 with an equipment loan ca. $58,550.
Other startups costs:
Insurance: up to $4,900/yr.
iPad $800
Lawyer Fees
Logo and Website
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Total $5,700
Total Projected Startup Costs**:$74,250
**plus cost of 423 E. 4th street if chosen as business site.
Cost of Operation
Lease/Rent: TBD(with ins. & prop. Tax)
Utilities: TBD
Marketing/Advertising: TBD
Start-up Loan Payment: TBD
Maintenance: TBD
Gym Master Payment: $139