View Single Post
Old 05-11-2011, 01:34 PM   #6
Mauricio Leal
Affiliate Mauricio Leal is offline
 
Mauricio Leal's Avatar
 
Profile:
Join Date: Jun 2009
Location: Oakland  CA
Posts: 839
Re: New affiliate predicament, advice on how to proceed please?

Quote:
Originally Posted by Jason B Cox View Post
My partner and I would both like to quit our day jobs when possible but no one is under any fantasies about when that will happen.

My options, as I see them, are :
1. Put my effort into building a clientele, hope it works, and move to a bigger space when we can, knowing we might get the boot at any time.
2. Bite the bullet and borrow money to rent a nicer facility in order to charge the price that I want and land the clients I want (and be competitive with the other boxes in town). In this scenario I tend to lean toward the more expensive higher foot and car traffic retail/mixed use space that gets a lot of people in the door/buzz. I Have seen it work very well first hand in this town.
3. Try and find some other space to partner with and get out of this one. Ultimately this is a short term fix, but maybe a good one.

I just kinda feel like the landscape of affiliates has changed somewhat. While it may have been possible in the past to open up in a garage or a park, I am not sure you can do that anymore, based on the competition. Like I said, i have 6 affiliates in my town, some of which are awesome. I understand that great coaching is the foundation of the business, these days I think you have to be pretty sharp in business as well.

I 've also been reading the LaunchBoxRx stuff and I find that what they have to say makes a lot of sense as far as not moving your box 3 times in the first few years and eating the buildout over and over. They advocate getting more of the space you want initially.

I appreciate the help very much. I really feel stuck here.
Your options, paraphrased:

1) Take the least amount of financial risk, but suffer logistical pains.
2) Take the most amount of financial risk, but suffer no logistical pains.
3) Take some unknown amount of financial risk, but suffer unknown logistical pains.

Take heart, you're not alone. But I think the question boils down to things mostly unrelated to the apparent choices though, such as:

1) How confident are you in your abilities as coaches?
2) How serious are you both about seeing this through to success?

If your answers to either of those two questions are less than "very," consider doing the financially safer but painful thing, and wait until the answer is "very." When that is the case, then ask yourself the questions:

3) Ok, I'm ready, but am I being a complete financial idiot by not weighing the risks and rewards appropriately?
4) Do I have enough money in the bank so I'm not totally screwed personally if something I probably can't even anticipate causes this thing to fail?

This is the time to get a third party/pro to come in and evaluate your business plan, or to at least take a very sober look at your monthly inflows and outflows. It is possible to make it happen on some debt and crossing your fingers that you can bring people in the door (while actually hauling *** to do so), but you're not likely to get a public/professional endorsement of such a plan. You wanna be an entrepreneur, aye?

If you're confident in your abilities, relentless in your dedication to making the business successful, and can at least reasonably justify the decision financially, you won't regret taking a leap, even if it ultimately fails (it won't ).

I'm in a similar situation but am basically saving money and building clientele until the financial parts make more sense. Patience is a virtue also!
__________________
CrossFit Cypher
www.crossfitcypher.com
  Reply With Quote