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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 01-28-2013, 12:53 PM   #71
Jeff Stanek
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Re: Crossfit Business Plan

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Originally Posted by Brian Strump View Post
Just my 2c.

If business plans worked, 80+% of small businesses would not be out of business in 36 months or less. Learn. Work your *** off. Prepare to work harder than you ever expected. Don't expect to pay yourself for 3-6 months.

Find someone that is successful at running a business, and learn from them. Learn on someone else's dollar.

Many will disagree, but I know the 80% of businesses that fail each year didn't have failure in their plan either.
Brian speaks the truth. I opened my gym based on what The BIZ teaches, and it's made a huge difference in both our financial solidarity and the happiness of our people.

(And yes, I work as an intern at The BIZ, feel free to ask me questions.)

We created a product *specifically* for new box owners to teach basic finance planning, growing before you sign a lease, and creating a community (it's called Launchgasm).
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Old 01-28-2013, 02:00 PM   #72
Kellybeth Clawson
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Re: Crossfit Business Plan

I would appreciate a copy of the business plan if it is still floating around: crossfitkb@gmail.com

Thanks
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Old 01-28-2013, 03:09 PM   #73
Max Savin
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Re: Crossfit Business Plan

I would appreciate one as well
max @ savinnutrition [dot] com
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Old 01-28-2013, 04:17 PM   #74
Luke Conner
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Re: Crossfit Business Plan

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Originally Posted by Chris Cooper View Post
Hey guys - I was getting a lot of requests, so I put ours up on the 321Go site. Totally free, SFWH: http://321goproject.com/resources/startup-client-tools/
For everyone who keeps asking but fails to look one page back.
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Old 02-06-2013, 06:03 PM   #75
Nina Cobb
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Re: Crossfit Business Plan

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!
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Old 02-06-2013, 08:42 PM   #76
Luke Conner
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Re: Crossfit Business Plan

Getting an $80,000 loan to start a gym is I think the worst way to go about doing this. You're better off starting small, out of your garage if you have to. Better to build slowly and stay in the black than take out a huge loan to buy a ton of stuff you don't need and be buried in debt.
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Old 02-06-2013, 09:16 PM   #77
Brian Strump
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Re: Crossfit Business Plan

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.

Good luck!


Quote:
Originally Posted by Nina Cobb View Post
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!
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Old 02-07-2013, 11:54 PM   #78
Daniel O'Brien
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Re: Crossfit Business Plan

Awesome posts from both Luke and Brian. Read them a few times through and let it all sink in. It may sound harsh, but it's the truth and he is telling you to help you.
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Old 02-12-2013, 10:24 AM   #79
Nina Cobb
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Question Re: Crossfit Business Plan

Okay, awesome, thanks for the advise.

Now we are at a new dilemma; we dropped our numbers significantly, and are still going to be 42k in the negative in year one (numbers generated from business plan profit/loss table). We dropped our equipment from 33k to 10k, but will be paying out a salary of $2,500 a month to one of us to pay our home expenses. Plus one of us is going to have a job- How the hell do you get ahead!?

Our profit/loss data shows that it will cost us around 72k a year to run our box( included in that is the 32k that we take for personal expenses)

Any more input? How do we make our start up smaller? I feel like we narrowed the equipment down significantly...

We are working on getting grants- anyone have any good suggestions on those as well?

This is my dream, ill do whatever it takes to make it a success... Just need some direction and honesty- Beat me up, I'm ready for it! :-)
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Old 02-12-2013, 10:28 AM   #80
Nina Cobb
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Re: Crossfit Business Plan

^^^^^^^ continued^^^^^

Is 72k a year around what it takes to run a box (average?) just because the business is not making a profit on year one does that mean it is not a good plan? How long should it take?
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