CrossFit Discussion Board  

Go Back   CrossFit Discussion Board > Community > Running a CrossFit Facility
CrossFit Home Forum Site Rules CrossFit FAQ Search Today's Posts Mark Forums Read

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

Reply
 
Thread Tools
Old 12-27-2010, 12:00 PM   #11
Tish Traster
Affiliate Tish Traster is offline
 
Tish Traster's Avatar
 
Profile:
Join Date: Oct 2008
Location: Ormond Beach  FL
Posts: 449
Re: Cost of opening an affiliate

Quote:
Originally Posted by Yahya Kohgadai View Post
dumb question but.. until you start profiting, how do you pay for your own personal expenses like rent, food, etc?
Don't give up your day job! Going into our third year. First year, client base grew so big had to expand within the year. Expansion ate any profit I would have made last year. Probably will take this year to turn a little...and I mean little profit.
__________________
"Insanity is doing the same thing over and over and expecting different results." ~Albert Einstein www.crossfitormond.com
  Reply With Quote
Old 12-27-2010, 12:33 PM   #12
Justin McGinley
Affiliate Justin McGinley is offline
 
Justin McGinley's Avatar
 
Profile:
Join Date: Apr 2008
Location: Cherry Hill  NJ
Posts: 3,047
Re: Cost of opening an affiliate

Quote:
Originally Posted by Tommy Alfinito View Post
I know the dollar amounts are different for everyone but I would put the order of expenses as
1. Rent
2. Equipment
3. Affiliation
4. Insurance

Honestly these are the biggest fees, add these 4 up and you should get a ballpark figure for your expenses. Now take this number and add 5-10k more to cover every little odd thing that comes up like pvc, chalk, webhosting, registering as an llc, buyign a credit card reader. Its really crazy the things you don't even think about that pop up when you are putting it all together. Like you may have rent costs figured out but then theres a security deposit. It will cost you money just to register your business with the state. I guess the reason you are getting such varying answers is because you never really know the cost until you do it.
3&4 are cheap. Utilities and payroll are much more. Cleaning supplies, toiletries, furniture, it all adds up quickly.

It is easy to drop $40k on equipment and still want more.
__________________
My Affiliate - CrossFit Aspire in Cherry Hill New Jersey
  Reply With Quote
Old 12-29-2010, 07:10 AM   #13
Randy Tarasevich
Affiliate Randy Tarasevich is offline
 
Randy Tarasevich's Avatar
 
Profile:
Join Date: Sep 2007
Location: Norwich  CT
Posts: 1,632
Re: Cost of opening an affiliate

We have about $15,000 invested so far, including training (read: certs), and if I had to do it over again I would have wanted to start out with about $30,000. This is for approx. 2,000 sq. ft. in CT. Starting with more capital has to do more with covering unforeseen expenses and for the slow months, more than just wanting more space and equip.
__________________
www.sectcrossfit.com
  Reply With Quote
Old 12-29-2010, 11:21 AM   #14
Steve Loeding
Affiliate Steve Loeding is offline
 
Profile:
Join Date: Dec 2008
Location: Minneapolis  MN
Posts: 464
Re: Cost of opening an affiliate

There really is no "start up cost" that is a Magical number. Like all the others said, it really does vary.

Rent varies from location to location, equipment wants vs needs, affiliation and insurance, paying trainers (maybe later), website homes (zenplanner, MBO, etc), the little things (toilet paper, cleaning supplies, etc).... it all adds up.

Best idea, unless you have lots o' cash saved up, is start in a garage or subleasing (which I do - 1/4 my income - worked out great so far - allows me to save $, buy equipment, pay trainers + I don't have to buy the TP or little necessities). SAVE $ - buy only the equipment you need and the basics at that - barbells, rubber and metal plates, pull up bars, maybe some KBs, rings...let it grow naturally.

Keep your day job - most people work during the day or if they work nights, they sleep during the day. Hold classes when it's most convienient for your clients - early morning, evenings. Give them a good experience, they'll come back and they'll tell others.

Realize you won't "make it big" for a couple / three years.... gut it out.

Passion is great - eating and having a roof over your head are better.
__________________
Steve - Top Gun CrossFit - Mpls MN
  Reply With Quote
Old 12-29-2010, 12:13 PM   #15
Joey Scafidi
Affiliate Joey Scafidi is offline
 
Joey Scafidi's Avatar
 
Profile:
Join Date: Oct 2009
Location: Prague  Czech Republic
Posts: 149
Re: Cost of opening an affiliate

I'd like to hear more from affiliates that started over $10,000 in debt. How scary was it, would you do it again, or start smaller? I'm at the point where I need to decide if i'm all in, or if i'll start really small and grow. I'd rather start bigger and take the risk but my wussy side keeps getting the better of me.
  Reply With Quote
Old 12-29-2010, 12:26 PM   #16
Katherine Derbyshire
Member Katherine Derbyshire is offline
 
Profile:
Join Date: Jan 2009
Location: Seattle  WA
Posts: 7,596
Re: Cost of opening an affiliate

Quote:
Originally Posted by Joey Scafidi View Post
I'd like to hear more from affiliates that started over $10,000 in debt. How scary was it, would you do it again, or start smaller? I'm at the point where I need to decide if i'm all in, or if i'll start really small and grow. I'd rather start bigger and take the risk but my wussy side keeps getting the better of me.
What are the advantages of starting bigger?

What happens if you fail?

For any small business, debt and overhead costs reduce your margin for error. Undercapitalization is a major reason why most small businesses fail.

Katherine
  Reply With Quote
Old 12-29-2010, 12:53 PM   #17
Joey Scafidi
Affiliate Joey Scafidi is offline
 
Joey Scafidi's Avatar
 
Profile:
Join Date: Oct 2009
Location: Prague  Czech Republic
Posts: 149
Re: Cost of opening an affiliate

Quote:
Originally Posted by Katherine Derbyshire View Post
What are the advantages of starting bigger?

What happens if you fail?

For any small business, debt and overhead costs reduce your margin for error. Undercapitalization is a major reason why most small businesses fail.

Katherine
My own dedicated place, a bigger variety of equipment, plus i'd save a ton in shipping costs and headache if i made one large purchase. I'm smack dab in the middle of Europe and equipment over here's super expensive, so ordering it from Rogue and shipping it over is still cheaper than buying it here!
  Reply With Quote
Old 12-30-2010, 08:04 AM   #18
John Michael Jones
Affiliate John Michael Jones is offline
 
John Michael Jones's Avatar
 
Profile:
Join Date: Mar 2009
Location: St Paul  MN
Posts: 39
Re: Cost of opening an affiliate

We took on some debt when we moved into our facility. This was after 6 months running classes at a rec center, where we built up our client base, and more importantly developed our group class coaching skills. Our trainers came primarily from a personal training background, so starting small and developing our skills as class size grew gradually was very important for us.

Your coaching skills should be a big driver in your decision whether to "go big" and fully outfit a decent sized facility, or start small like many affiliates do and grow with your client base. If you opened an awesome facility and had 40 members in the first month sign-up, would you be able to give classes of 8-10 people a quality experience from day 1? Coaching 1-2 people is drastically different from coaching a class of 12, and it takes time to develop the capability to do this well.
__________________
www.crossfitstpaul.com
  Reply With Quote
Old 12-30-2010, 08:12 AM   #19
Brian Strump
Affiliate Brian Strump is offline
 
Brian Strump's Avatar
 
Profile:
Join Date: Sep 2009
Location: Charlotte  NC
Posts: 2,619
Re: Cost of opening an affiliate

We're in a unique situation when starting the chiropractic office and CrossFit at the same time. From CrossFit, I opened $12,000 on business credit cards to but what we needed to get started. I wasn't necessarily in debt, since I did have more than that $12k in the back, but the credit cards gave us flexibility to pay the minimums at the start, and pay more as the income of the affiliate increased.

It's a risk, but we did have money saved. And I already had taken out a loan to fund part of the doctors office. The loan doesn't offer the flexibility of the credit cards, but is at a much lower % rate.

Regardless, I'd start small like the others have said, and grow as you need growing, one barbell at a time.
__________________
Brian Strump, D.C., FMS, NKT
www.crossfitsteelecreek.com/
  Reply With Quote
Old 01-06-2011, 02:11 PM   #20
Brendan McNamar
Affiliate Brendan McNamar is offline
 
Brendan McNamar's Avatar
 
Profile:
Join Date: Mar 2010
Location: Glendale  AZ
Posts: 2,216
Re: Cost of opening an affiliate

I happen to be painfully familiar with these numbers right now. Starting 2/13/10 when I got interested in affiliating to 12/31/10 when I am a small (8 full price clients) up and running garage affiliate.

Asset (things that last a long time) $14,076.57
Expenses (thing that are used up) $ 7,937.66
Supplies (thing that are used up fast) $ 1,120.39

Total $23,134.62

Income 2010 $ 1,915.00

The assets are truly investments so I don't worry too much about that number. I paid cash for my equipment so I don't have debt on it. The more important issue is Income-(Expenses + Supplies) = profit or loss. In my case $1,915.00 -$9,058.05 = -$7,143.05 for 2010.

Two important points. 2010 has non reoccurring start up cost like Certs. and Website design. Second my current monthly income is about $1,000 (I discount for multiple family members) right now with a couple of prospects all ready scheduled. If I don't move in 2011 I fully expect positive cash flow but little or no pay for me. I have another part time job.

Brendan
__________________
Nomadic CrossFit Coach
  Reply With Quote
Reply


Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is Off
HTML code is Off
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
New (non-affiliate) box opening ...what am I forgetting? Helen Lawson Running a CrossFit Facility 18 12-05-2010 06:09 AM
New Affiliate opening in Acton, MA Justin Keane In Search of CrossFitters 3 05-21-2010 07:54 AM
Cost of Taxes as an affiliate? Josiah Ertz Running a CrossFit Facility 4 04-21-2010 04:26 PM
Completing CF certification and opening affiliate Richard Macaulay Running a CrossFit Facility 2 07-23-2008 05:48 AM
New affiliate opening...SouthCoast CrossFit Jeremy Froley Running a CrossFit Facility 14 11-24-2006 04:01 PM


All times are GMT -7. The time now is 01:53 AM.


Powered by vBulletin® Version 3.6.8
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
CrossFit is a registered trademark of CrossFit Inc.