If CrossFit training is your passion and you’d like to help culminate the desire in others, then you’re probably wondering how to start a CrossFit gym. The first step in achieving this goal is to know how your gym will start. You also need to plan financially for it. With a growth rate of 166% year over year and 7,000 affiliate gyms up from just three in 2005, the CrossFit Games has become one of the top fitness movements ever. It’s time to figure out how to start a CrossFit gym. Here is a guide on how to start a CrossFit gym and get the money you need to fund it.
Start With Your CrossFit Gym Business Plan
First, begin by creating a business plan with a comprehensive, step-by-step blueprint to give you a clear view of the various costs that come with opening the gym. You will also need to research areas like marketing costs, location, liability and insurance, the cost of CrossFit equipment, and everything you’ll need to do to make your CrossFit gym turn a profit. Try to put as much information as you can in the business plan to guide you, especially when you feel confused as to what to pursue next.
Find The Right Location
One of the essential factors that will take your business to the next level is controlling your fixed costs. And one of the most significant fixed costs is your rent. Sure, location wouldn’t be necessarily crucial as it would be for other businesses, but it will be a significant step towards having some visibility especially since you’re trying to create your community.
Get Ready For The Business Side
As you start the CrossFit gym, get ready to handle all the duties single-handedly. You will be the electrician, the marketing team, the plumber, the CPA, and several other duties that you were not prepared to handle. If you want your business to remain standing for the long term, you will need to allocate sufficient time to setting up memberships, doing financial reports, and sending out emails. While at it, you’ll be cleaning up weights, changing lights, and anything else that pops or doesn’t pop on your mind. It will be only for a short while, and you will soon be able to afford to hire people to handle these duties.
Don’t Set Your Prices Too Low
Set reasonable prices at the beginning since it will be tough for you to hike them down the road. Take this idea: Have 50 members paying $100/month instead of 100 members paying $50/month. When you look at it, the lower prices you have, the more clients that will have to get through your door so you can turn a profit while at the same time covering expenses. It will also cost you a lot to maintain your space and your equipment as well. Additionally, steer clear from giving people “special deals” even if it’s a sibling, friend or neighbor- keep off this pitfall. It wouldn’t be good finding yourself in a position where one person finds out he/she is paying different fees for the same services is the last thing you want. Do yourself a favor by setting prices and sticking to them.
How To Start A CrossFit Gym Through Various Funding Options
Starting a CrossFit gym is an expensive affair Here’s why. Initial equipment may cost approximately $20,000 or more. Starting insurance costs will be roughly $5,000. Here are options to get funding for your CrossFit gym:
SBA (Small Business Administration) Loan
This is a financing option that helps entrepreneurs to establish their own business by offering them loans from third party intermediaries that work with the government. As per government regulations, these loans are easier to get if the owner is a woman, considered disabled or a minority. Even if you feel that it’s not for you since you don’t fit into an SBA preferred category, it won’t hurt looking into it if you are in the initial stages of opening your new gym. It’s worth noting that an SBA loan usually takes longer to get approved for than a non-government backed loan, so it may not be for you if you’re on a timeline to open your new gym.
A lot of business owners who could once get approved for a conventional business loan from a bank now have to finance CrossFit gym equipment with a finance loan instead. If you are unsure about taking a CrossFit gym equipment loan, you can contact the LenCred team for expert advice.
In the fitness industry, “leasing” means financing to own. Leasing is another type of loan which needs less documentation than the traditional bank loan. On receiving quite a straight forward lease application, the leasing company will do a credit check to find out the amount that’s best suits you. This is usually based on your current FICA score and credit history. Unlike a bank loan, leasing does not need collateral against the loan, a business plan, or a lot of documentation. Leasing is a very straightforward process that can be completed in the shortest time frame.
Remember: Leasing is not renting your equipment. It is like a traditional loan, and after the lease term, you possess the equipment.
Get Help The Help You Need to Start A CrossFit Gym
Getting a profitable CrossFit gym to run is very involving. It all begins with the initial planning, and there are several ways to get funding for your new CrossFit gym. Also, be sure to save the budget for marketing your CrossFit business online and offline so that it can become nationally known. (This is especially important if you plan on opening multiple locations across the U.S.). By carefully researching how to start a CrossFit gym (and creating a business plan) you will have a greater chance of success. Working with an expert to help you get started can also increase your chances of success. LenCred are experts at working with gym owners to get the funding they need. If you’re at the stage where you are ready to get funding for your CrossFit gym, contact the LenCred team to get started.