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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 09-16-2012, 11:02 AM   #31
Lisbeth Darsh
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Re: Crossfit Business Plan

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Originally Posted by Christopher Page View Post
You are correct, we are a new affiliate. However I own a training facility, not a gym, experience here is the same. We've been training athletes from pro on down to grandmothers for many years.

At 45 years of age and most of it in the business of training, I decided to become a CrossFit affiliate because I love the training philosophy, NOT because it's a business solution. But I agree with you, gym owners have no clue how to run a training facility.
Are you still talking to me? I NEVER said "gym owners have no clue how to run a training facility." Don't misquote me or insinuate I said things I did not.

You have your opinions. I have mine. Don't lump me in with yours.
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Old 09-16-2012, 12:34 PM   #32
Brian Strump
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Re: Crossfit Business Plan

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Originally Posted by Christopher Page View Post
Just watched this video. Way over simplified and not that easy. Fixed cost will be much, much more. There are so many more expenses that go along with owning a box. Professional fees for attorneys and accountants, figure $3k+ per year. Insurance expenses for a commercial business run $7k or more per year. ACH bank fees and credit card fees will run another $3K-$5K per year. Yes the banks take a cut of your transactions. Office supplies will run $3k+ per year. And... you need to pay yourself, which is not in his formula. Conservatively, expenses will be at least double and more than likely more than double.

As a big box owner I would be bankrupt if it was that simple. Beware, it will cost you more than you think. If you don't want to work a full-time job aside from owning your box you will need to charge more than $150/mo. You will also need 12 months of cash. Once you sign that lease there will be a ton of money going out. You won't have 75 clients month one. So covering your costs based on memberships will take a few months... 6+ or more.

Any good trainer is worth $75/hr private and $25/hr group. That means your income for a one hour group training session is $500 with 20 clients. And... any good trainer is well worth this money. My plumber makes $75/hour. If you do it right your minimum monthly rate should be no less than $250/month and upwards of $500/month for unlimited sessions. Much less and there is no way you can cover your margins and earn a pay check, put food on the table, own a car, pay your own living expenses, and survive.

Again, most CrossFit boxes are a part-time job because they are priced so stupidly low. $150/month for unlimited training is between a $5 and $7.50/hr trainer rate. Don't follow someone else's pricing structure. The #'s need to work for you. If you are going to follow this price structure, don't quit your day job!
The math is actually quite simple for a "successful" affiliate. You've got tens of thousands of dollars in equipment that the traditional CF affiliate will not have.
I think your amounts for accountants and attorneys is way too high, unless you find yourself needing your accountant for more than your taxes, and your lawyer to get you out of too much trouble.
My commercial insurance is professional and commercial liability is less than $2000/yr. I suggest you talk to your insurance broker, because you're getting ripped off. Mine is not the cheap stuff either, I know that there are many things of mine that need to be protected.
I think your amounts for bank fees are in the right range, however, you can save over 50% if you change from debit/credit transactions(2-3%) to ACH(.50/transaction).
While 12 months cash is ideal, if people only started a business with that much reserve capital, I think more than half of all small businesses would not have seen day 1 of business.
You also need to consider where you are located in NY, and your cost of real estate.
I have 12,000sf of doctor office and CF affiliate in Charlotte, about 12 miles from the center of the city. My rent is $5200/mon. VERY cheap for what I have, and where we are located. Open for 3 years, and more than profitable.

Some owners are looking to make hundreds of thousands of dollars a year, while others are looking to make $50k. Either can be accomplished.
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Old 09-16-2012, 01:39 PM   #33
Jim B Smith
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Re: Crossfit Business Plan

Quote:
Originally Posted by Christopher Page View Post
Just watched this video. Way over simplified and not that easy. Fixed cost will be much, much more. There are so many more expenses that go along with owning a box. Professional fees for attorneys and accountants, figure $3k+ per year. Insurance expenses for a commercial business run $7k or more per year. ACH bank fees and credit card fees will run another $3K-$5K per year. Yes the banks take a cut of your transactions. Office supplies will run $3k+ per year. And... you need to pay yourself, which is not in his formula. Conservatively, expenses will be at least double and more than likely more than double.
Chris they were showing a formula for forecasting and a way to run scenarios so you can determine if you're heading in the right direction. I don't think anybody would watch this and walk away thinking that would be all there expenses.
I found it very useful and am using the spreadsheet as a starting point and adding expenses to it.
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Old 09-17-2012, 04:59 PM   #34
Karl Wall
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Re: Crossfit Business Plan

Hi Guys,

Sorry for not getting back to anyone, it's just that I've been away for a while on ship and had no internet. Just at the airport now waiting to catch a flight to get back on ship again, so really busy with work.

Thanks for all the infor you have provided me.

A few have asked me to sent them the business plan from Pete. This is private information and personally don't have the right to forward it to anyone.

Thanks again and good luck guys

Karl
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Old 09-18-2012, 09:44 AM   #35
Austin Lieberman
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Re: Crossfit Business Plan

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Originally Posted by Brian Strump View Post
The math is actually quite simple for a "successful" affiliate. You've got tens of thousands of dollars in equipment that the traditional CF affiliate will not have.
I think your amounts for accountants and attorneys is way too high, unless you find yourself needing your accountant for more than your taxes, and your lawyer to get you out of too much trouble.
My commercial insurance is professional and commercial liability is less than $2000/yr. I suggest you talk to your insurance broker, because you're getting ripped off. Mine is not the cheap stuff either, I know that there are many things of mine that need to be protected.
I think your amounts for bank fees are in the right range, however, you can save over 50% if you change from debit/credit transactions(2-3%) to ACH(.50/transaction).
While 12 months cash is ideal, if people only started a business with that much reserve capital, I think more than half of all small businesses would not have seen day 1 of business.
You also need to consider where you are located in NY, and your cost of real estate.
I have 12,000sf of doctor office and CF affiliate in Charlotte, about 12 miles from the center of the city. My rent is $5200/mon. VERY cheap for what I have, and where we are located. Open for 3 years, and more than profitable.

Some owners are looking to make hundreds of thousands of dollars a year, while others are looking to make $50k. Either can be accomplished.
I totally agree. Some do it to make a remarkable impact on the lives of others for an affordable price while making a good living and some see it as a way to use fitness and others needs to become very wealthy.

I feel like in a situation such as Page's, the "community" feeling as well as the awesome environment that makes crossfit so great (in addition to the results) would be lost. I'd like to see what his relationship is like with his crosfitters in comparison to that of an owner of just a crossfit box.... I'd imagine it is much more distanced.

This is all of course just an assumption because I have never been to his facility. I'm just glad Glassman didn't take Page's money making mentality when this whole crossfit thing took off because it WOULD NOT be anything like it is today if he had...
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Old 10-02-2012, 01:20 AM   #36
Andrew Bolliger
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Re: Crossfit Business Plan

I started my box with about $500 (after affiliate fee's and insurance) in my 1 car garage. I had no "cash flow plan", "business plan" or expectation to take over the world. In Chris's definition I would have zero chance of success. The opposite happened... now pushing 250 clients in a smallish low income town, absolutely thriving with 13 employees. This took about 3 years to happen. There is no template, stop trying to find one people! Train every client like they are your Mom, make smart decision based on current cash flow (not expected), grow slow and create a very positive influence in the community. The basic CF model works, I am proof. I am not recommending this plan to everyone, just want to add perspective to the discussion.
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Old 10-03-2012, 05:22 PM   #37
Jim B Smith
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Re: Crossfit Business Plan

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Originally Posted by Andrew Bolliger View Post
I started my box with about $500 (after affiliate fee's and insurance) in my 1 car garage. I had no "cash flow plan", "business plan" or expectation to take over the world. In Chris's definition I would have zero chance of success. The opposite happened... now pushing 250 clients in a smallish low income town, absolutely thriving with 13 employees. This took about 3 years to happen. There is no template, stop trying to find one people! Train every client like they are your Mom, make smart decision based on current cash flow (not expected), grow slow and create a very positive influence in the community. The basic CF model works, I am proof. I am not recommending this plan to everyone, just want to add perspective to the discussion.
I think he's hit the nail no the head for the most part!
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Old 10-03-2012, 05:57 PM   #38
Chris J. Campbell
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Re: Crossfit Business Plan

Quote:
Originally Posted by Andrew Bolliger View Post
I started my box with about $500 (after affiliate fee's and insurance) in my 1 car garage. I had no "cash flow plan", "business plan" or expectation to take over the world. In Chris's definition I would have zero chance of success. The opposite happened... now pushing 250 clients in a smallish low income town, absolutely thriving with 13 employees. This took about 3 years to happen. There is no template, stop trying to find one people! Train every client like they are your Mom, make smart decision based on current cash flow (not expected), grow slow and create a very positive influence in the community. The basic CF model works, I am proof. I am not recommending this plan to everyone, just want to add perspective to the discussion.
I find stories like this so grounded in common sense and inspirational.
Thanks for sharing your perspective!
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Old 10-04-2012, 01:06 PM   #39
Aldo Rodriguez
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Re: Crossfit Business Plan

This will be my first post I am kind of in the same situation i have a good friend that is wanting to fund me only if I have a clean business plan. Could you share the business plan tremplate with me as well. I thank you in advance. aldorodz@gmail.com
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Old 10-06-2012, 12:41 PM   #40
Jim B Smith
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Re: Crossfit Business Plan

I would sure appreciate a copy of the business plan as well! harleyguy13@gmail.com
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