To all the Business guys here!

[Josh Markley]

There is a large need for more fitness centers in the city I live in.  It is the 3rd largest city in the state of missouri with 250,000 residents.  There is only one fitness center to account for the whole population.  In the next five years I want to open at least 3 facilities.  I will have to borrow money from the SBA since I am a full time student that pulls in about 12 grand a year.  I have no idea the first thing about a business plan, or where to search for the funds.  What I do know is the fitness industry I know it will work here and have the passion to start it.  Any info will be great.

[Vince G]

Not quit that easy Josh. SBA doesn't give money up for a startup. After in business for a few years then they might, same on Grants from the gov. Same as I am doing soon... beg, borrow, and ask for investors (investors don't do startup either). Loans with collateral is one way, like owning a home against the loan. These days things are even tighter bank wise.

[David E]

Josh

I am CEO of a large Management Consulting Business....my advice to you is:

We see very few small Businesses fail because of lack of expertise...we see many small Businesses fail because of lack of Working Capital.

You must make enough funding provisions to see you through the difficult earlydays (negative cash-flow, high start-up costs etc).

Expanding too rapidly is also a dangerous place to be...again due to high costs and low initial returns.

Your Business Plan MUST include a comprehensive Cash-flow report...preferrably going out to 2 years...then you will see where the holes are !!!

[Vince G]

Though you have much to study up on esp. if you don't have a business background. Here's a few links that might help. There's a group called Angel Investment  you could look into.


http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business/loans-grants-funding


http://www.myownbusiness.org/

[Chong]

Josh,

Best to work for that one fitness center and learn as much about the business as you can.

What's your fitness niche Could be MMA type training, general equipment focus like treadmills, weight-lifting etc etc, yoga or specialized athletic training. That will help determine your start-up capital cost.

Be prepared to work 120+ hours per week.

In the fitness industry, your main goal is "Sales" ... annual/lifetime memberships. You'll need to hire an aggressive sales force.

Answer the above questions and it'll give you a start to your business plan write-up. Best to google search for samples of business plans relating to the health industry. After that, you'll need to sell your business plan to investors. If the potential is as good as you think, you should have investors willing to risk $$$ but be prepared to give up equity.

Up here in Ontario, former NHL player Gary Roberts is doing an amazing business specializing in training hockey prospects using unconventional training methods and emphasizing organic nutritional supplements.  Google his name for more info.