I can't agree more with Luke. If you really think that showing a bank how many people have sent a text somewhere saying they want an affiliate nearby shows that you've got to find some help before you get started. The bank doesn't care, they only want their money back. And in this economy it's harder and harder to get a loan, especially given you have little to no collateral, or money; and you want to start a business that is tradionally a failure. Not CrossFit per se, but a gym in general.
I'm honestly surprised you even paid for your affiliate when you still obviously have ALOT of things to "get" before you move forward. Now, you're paying $4k, or whatever it is now for nothing. Stupid move. And if you've been accepted that means that you're paying for insurance too. Sorry if it sounds harsh, but I don't want you to fail. Unlike your family who will usually not be honest with you, typically because they don't know what it takes to run a successful business. Some members on here will give you a wake up call.
My advice is to SLOW DOWN. Stop spending money you don't have unless it's going to make you some money. IMO, the quickest way to be a bankrupt 25 year old, is to take out an $80k loan to start an affiliate. There are so many stories of people that started small and grew, and grew, and grew. You know who's not on the boards anymore? Many of the ones that are still paying back large loans to a bank or family member and don't have a business anymore.
You're in Alabama. It's cheap there. Find a warehouse if you garage is not an option. 1500-2000sf. Sign a year lease, and go for it. Spend less than $5k in equipment. Just put flooring down on part of it if that's all you can afford. If you can't get rowers or GHD's don't. Don't try to keep up with the "Jone's", you'll go broke given where you currently are in your life.
You're young, and going to make mistakes. Big F'n deal. Learn from it, and don't make it again.
Originally Posted by Nina Cobb
My boyfriend and I just got accepted to be an affiliate of CrossFit, the process is not complete, but within the year we hope to own a box down near Birmingham, AL. We are 19, and 22 years old. We have a well generated plan, although at this age we have NOTHING. To walk into a bank and ask for an $80,000 line of credit (or loan) is not going to happen. We are working with a Small Business Development Center so I know we will have a solid business plan, and a solid projection.
My question is; how do we find the "market" for CrossFit? How do we "prove" that CrossFit works!? With us not having any assets, the bank is going to want to know that if we open our doors, there are going to be people that will want to join our box.
.... I'm not sure if i'm being clear on this.. here's an example; do we put an add in the local paper saying "if you would like to see a CrossFit Box in your area, text WOD to 439**343*8" So then we can have "proof" that can be presented to the bank along with our business plan?
Any advise/ideas would be GREATLY appreciated!