- 1). Create a business plan that includes your complete business model, your personal experience and the experience of any current business partners or employees. Successful experience in the industry carries weight with investors since this is an indicator of whether a new venture is likely to succeed.
- 2). List your costs for running the business for up to three years in the future. Having a handle on the capital needed to start the business is an important factor, but investors will need to know you have a plan to make the business profitable going forward. Organizations such as SCORE or the Small Business Administration can provide business plan templates and assist in calculating start up and operating costs. You may also seek out fitness center owners in other cities that have your same business model for advice and assistance. You can find competitors in other cities by checking with local chambers of commerce.
- 3). Seek out loans and lenders through Small Business Administration resources and local chambers of commerce. Lenders will need complete personal financial information for all current business partners and investors. Required financial information will include tax returns, checking, savings or investment account statements, and a complete listing of personal assets and liabilities. Lenders may also ask for past and pending loan applications.
- 4). Obtain a business partner to invest in your new fitness center. If you seek out a partner you should be ready to give up at least a portion of the decision making responsibility. Look for compatible partners with whom you can work well on a regular basis. Business partners should have complementary skill sets. An example would be to seek out a partner that has a strong financial background if your business accounting and finance experience is weak. When taking on a business partner, establish a written partnership agreement or similar legal document to establish roles and responsibility for all involved in the venture.
- 5). Solicit several forms of advanced income such as reduced cost annual memberships and advance sponsorships from local businesses. Advertise reduced cost membership specials in advance of opening your doors to create a small amount of cash flow before operating costs begin to add up. At the same time, seek out local businesses that will sponsor your grand opening. Offer sponsoring businesses prominent advertising space throughout your fitness center, such as front desk placards and wall advertising placement. Some businesses to consider approaching are health food stores, nutritional supplement companies, sports physicians or sporting goods stores.
previous post