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Running a CrossFit Facility Tips and guidance on how to open and operate a CrossFit gym.

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Old 08-07-2010, 10:40 PM   #1
Barrett Reznick
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New Affiliation Question

Hey Guys,

My business partner and I were going to open a CrossFit/Athletic Training Facility in AZ. He was going to run the business side of the operation and I was going to be the the facility Coach and run the day to day operations. In the last few days he has decided that it was not a good option to open a gym because it cost too much.

I still want to open a gym and am a hard core CrossFitter but all the funding was from him. What advice do you have for me? How much would it cost to open my own facility (say 3000sqft-4000sqft.) and how many clients would I need to make the facility work? I have no experience in running a business but have been training in either a CrossFit or Globo gym for some time. I just need some advice. My passion IS CossFit!
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Old 08-08-2010, 02:53 AM   #2
Michael L Schaal
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Re: New Affiliation Question

Check out Jon Gilson's mic'ed instructor videos at Again Faster on opening an affiliate. He even has basic cash flow spreadsheets to download to do some initial planning on how much it will cost.
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Old 08-08-2010, 01:17 PM   #3
Steven Bowser
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Re: New Affiliation Question

Those numbers can vary big time which I just found out while opening a second location.
Rent was a huge factor along with flooring. Wright Equipment was the cheapest vendor and did a great job.
Instant message me if you want more help but be patient because I am running two locations and working a full time job.
Yeah, I dont sleep.
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Old 08-09-2010, 04:28 AM   #4
Barrett Reznick
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Re: New Affiliation Question

Thanks guys! I don't have much capital of my own, so I am trying to figure out what is the best way to come about more startup money.
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Old 08-09-2010, 09:59 AM   #5
Brian Strump
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Re: New Affiliation Question

Work and save. It's fairly simple. It's unlikely you will get a loan to start a business like CrossFit especially if you have no track record as a business of any kind.
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Old 08-09-2010, 12:35 PM   #6
Jonathan T Fisher
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Re: New Affiliation Question

It will be tough to find money from a bank to start up a crossfit affiliate. If you have the majority of the funds required you might be able to get a loan for the rest, but if you hardly have any money saved up to put in to the business the answer would most likely be a resounding no to your loan request.

If you are trying to find capital to start any business the most common sources are the 3 Fs - friends, family, and fools. The first two will see your passion and hopefully want to help you achieve your dream. The third speaks for itself.

Last edited by Jonathan T Fisher; 08-09-2010 at 12:36 PM.. Reason: typo
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Old 08-09-2010, 06:00 PM   #7
Barrett Reznick
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Re: New Affiliation Question

Yeah....thats what I was worried about. The rejection from banks.
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Old 08-09-2010, 06:33 PM   #8
Bill Houghton
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Re: New Affiliation Question

Start in your garage. Collect money, buy more eqipment. Repeat. When you max out the garage space, take all that equipment that is paid for and move into a rented space. A great way to get business experience. Figure out what works and doesn't. Minimal risk.
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Old 08-09-2010, 07:07 PM   #9
Jonathan T Fisher
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Re: New Affiliation Question

Have you done any research on real estate in the area? I did a quick google search of the area and found a bunch of business/industrial parks with space available. If you are serious about starting up you should figure out how much it is going to cost and put a business plan together. If money is a concern going for a 4000 square foot facility might be a little bit aggressive. Start small (1000-1500 sq ft) and with minimal equipment. It isn't like you are going to have 200 clients from the day you open up the doors. You can add equipment as your client base grows. Figure out what equipment you need to start and get a quote from the equipment suppliers. After the first few months include some money in the budget for buying new equipment every month. If you set aside a little bit of cash to buy more equipment every month you will have a fully equipped box in no time.

For the revenue side, be reasonable about the number of clients you expect to attract. Do you do personal training right now? If so, you have a good base of clients to draw from to get started. If not it will take some hard work to get going. Make sure your client growth target isn't crazy. If you put in that you can find 50 new clients every month everybody will know you are lying to them and won't take you seriously.

If you can develop a solid business plan it will be much easier to find the money to start up. Take the plan to friends/family that might have the money that you need to get started and ask for loans. You don't have to get all the money from one person (although it would be nice to only have one person to pay back instead of many). Make sure you set up reasonable repayment terms that you can meet. You don't want to lose friends or alienate family because you can't make the payments when they are due. Even if you aren't able to get the money right now to start up the business, the business plan will give you an idea of how much you need to save to open it up in the future and you can start putting some money away every month.

If you aren't comfortable creating a business plan on your own you might want to check out the Arizona Small Business Development Centre (http://www.azsbdc.net/ WFS). They offer seminars/counselling to help get small businesses off the ground and would probably be happy to help you develop a business plan.

Good luck,

Jonathan
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