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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 09-12-2012, 04:17 PM   #21
Jim B Smith
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Re: Crossfit Business Plan

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Originally Posted by Matthew Boyd View Post
I strongly recommend watching the entire series by Jon Gilson. Starting with https://www.againfaster.com/blog/201...iliate-part-1/

I followed this exactly. It has worked great.
Just watched this and I have to say if you are at all considering opening a box EVER this is a must watch. Great info to get you thinking properly. Not the answer to everything you'll need but absolute great foundation!
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Old 09-13-2012, 11:12 AM   #22
Christopher Page
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Re: Crossfit Business Plan

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!

Last edited by Christopher Page : 09-13-2012 at 11:17 AM.
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Old 09-13-2012, 11:19 AM   #23
Christopher Page
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Re: Crossfit Business Plan

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. 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!
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Old 09-13-2012, 05:43 PM   #24
Lisbeth Darsh
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Re: Crossfit Business Plan

Christopher,

First, it's nice that you've jumped right in there and shared your personal knowledge. Thanks. You've only been a CrossFit affiliate owner since July, though, right? And you've come from owning a regular gym, so your experience may not be the same as for everyone else.

Just interested in making sure things are clear here. Experiences differ. Good luck with your affiliate.
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Old 09-13-2012, 06:57 PM   #25
Christopher Page
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Re: Crossfit Business Plan

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.

My concern, too many people look at CrossFit as a business model which I strongly discourage. How I run our training business has not changed because of our affiliate, but our affiliate provides a training solution. There is a difference there that should not be confused as the same. Too many perspective future owners have no training business knowledge or any business background and without all the real world facts may land themselves in serious trouble. A 10 minute video that has some great info to get people thinking about opening a business hardly counts as an encyclopedia of business.

I stick to my previous posts. Newbies and future owners need to read "Found Money", the "E-Myth" and "Good to Great" PLUS look into a professional fitness business consulting firm such as NPE, http://www.fitnessmarketingmuscle.com/ It could make or break there success.
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Old 09-13-2012, 07:59 PM   #26
Chris Guillermo
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Re: Crossfit Business Plan

Just wondering why would anyone in there right mind pay $500 a month?
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Old 09-14-2012, 03:35 AM   #27
Luqman Naeem
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Re: Crossfit Business Plan

Hi Karl,

I know it is an old post but I would highly appreciate if you could email the business plan to me too:- luqmannaeem@gmail.com

I am working on my business plan at the moment. I am just in the initial stages but would love to see your ideas and get inspiration.

Thanks

Luq
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Old 09-14-2012, 03:57 AM   #28
Christopher Page
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Re: Crossfit Business Plan

Simple... Needs vs Solutions.

Most people do not have the knowledge of how to put a complete program together, they cannot formulate a workable plan of action which integrates all the components necessary for success (incl. nutrition and supplementation) and they don't have the support system or accountability required to make lifestyle changes and maintain them. They have the need and we offer the solution.

Value is the clients experience + the relationship we build with them and the results they attain. That's a good business building formula. If someone wants unlimited training for the year, $23/hr ($500/mo.) is a pretty cheap rate and it falls within the margins required for the trainers to earn a living and the business to make money. You go into business for the passion but the business is in business to make money. Period. Otherwise it's just a hobby.

$23/hr is cheaper than most training facilities offer. Maybe not in a CF box, but I believe as do many training facility owners I know, that our trainers including CF trainers are worth it. $20-$25/hr is very common in our industry as a group training rate.

If someone can't justify charging that for their services they should consider some mindset training. Here's an example: my wife pays around $130 to have her hair cut and colored. It takes about 1.5 hrs ($87/hr rate). We get a massage, easily $65/hour. We go to dinner at a nice restaurant, appetizer, dinner, wine is easily $100. My plumber charges $75/hour as do most. I had our copy machine fixed recently. The part cost $17 and labor for 20 minutes was $190... that's $570/hr!

If you're a trainer, than you're worth the money. You provide a service that changes lives. You help people reach their goals and get results that they would never get on their own. Unless of course you don't, then you shouldn't be in the business.

I'm not sure how any box can offer $7/hr sessions and grow. The math just isn't there. The margins can't be there.
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Old 09-14-2012, 06:33 PM   #29
Chris Guillermo
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Re: Crossfit Business Plan

You are lucky, i'm pretty sure that 90% of the boxes out there do not have a clientele that can afford $500 a month.
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Old 09-15-2012, 06:47 AM   #30
Christopher Page
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Re: Crossfit Business Plan

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Originally Posted by Chris Guillermo View Post
You are lucky, i'm pretty sure that 90% of the boxes out there do not have a clientele that can afford $500 a month.
Chris,

I know you're 100% wrong! No offense. CrossFit facilities are all over the world. If my small town of 50,000 people have the clientele, so does everyone else. And there is no luck involved here. To be clear, $500 is the high end. My average client pays $360. No one pays less than $250. Plus, our county has one of the highest unemployment rates in our state.

This is a mind set problem. Either you don't believe you're worth it or you don't believe they can afford it (maybe both). Take a look at what your clients drive. New cars or junkers? Do you know what they do for work? Do you know what neighborhoods they live in? What toys do they own? I will bet if you look around you will see most of them have more money than you. My clients do!

Every city has; managers and sales people of businesses (Wal-Mart, Lowes, Equipment Dealers, Car Dealerships, office buildings), hospitals, schools (nurses, doctors, teachers all have some discretionary income), pharmaceutical reps, lawyers, accountants, engineers of all types, real estate agents. Our country is run on small business. There are more people out there who can afford it than you can possibly imagine. My wife use to be a hair dresser. She easily made $300 every day. $80k/year. Her Mary Kay rep earns over $100k/year.

Really this is a belief issue for you. $20-$25/hr is cheap and a great value for the service you provide. 2 sessions a week for a year is $200/month. Most people can swing it and your margins are covered. You business is covered.

The biggest mistake a business can make is to look at what a similar business charges and price from there. Your expenses and theirs are different. Just because the box across town under values their service with a rock bottom price doesn't mean you should too. Price is rarely an objection to $360/month for us because we show the value. We show the client how we will solve their need.

I don't believe for one second that your clients can't afford $20+/hr. Unfortunately you do and I bet it's because you based your price on what another box charges. All of them are too low from what I've seen. No one seems to value properly the service they provide to their communities. Inflation goes up every year but I would bet few adjust their rates to account for it.

I hope you and others re-evaluate your business plans. I hope you adjust for success. Business is not easy and a poor business plan makes things even worse.

Best of Health and Business,

Chris

PS,
I'm happy to advise anyone who requests assistance. Just email me.

Last edited by Christopher Page : 09-15-2012 at 06:51 AM.
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