Opening a Club?

Whatever possessed you to want to get into the fitness business? You can be sure that you will be asked this question as you ponder opening a fitness facility for the first time. Your potential investors, your banks, your significant other, your family and your friends will all want to know why you’re getting into a business that is perceived by those on the outside as so easy, yet is known by those who own and operate fitness businesses as one of the most challenging small businesses you could own.

Opening a small business is a very serious matter that involves risk this is compounded by a high level of stress. Risk comes from the fact that you will invest your money, along with other people’s cash is most cases, in a project that might fail. Failure, while not life-threatening, always feels like it all the time. Clubs fail, although in smaller numbers in the past, and the risk always exists that you will at some point have to close after losing everything you invested.

Any small business can fail and often it is unexpected, unknown, or emotional mistake that takes them down. The unexpected might be delays by your builder that eat up your reserve capital. The unknown might come in the form of another competitor opening in the same market that you didn’t know about (because you failed to do your homework) and who is chasing the same target market.

Emotional mistakes are perhaps the most frequent among young owners who become impatient and try and force the club even if it is obvious that he or she needs to back away. Taking a location that is too expensive or on the wrong part of town is a sign that you’re emotional. Signing a lease and other obligations when you’re short of money for the overall project means that you are too emotional. Believing that it doesn’t matter that 12 clubs are already in the market going after the same target market and defending that decision because you are going to build a club like no one has ever seen – and besides, you’re the best trainer in town anyway – is a sign that you’re making bad, emotional decisions.

The stress factor kicks in when the enormity of creating a new business where one had not existed overwhelms you in the middle of the night. You will be stressed, your family will be stressed, and people you don’t even know will hate you because it will become hard to talk about anything else but your new business and how it is coming along

“Why?” is also the most important question you should be asking yourself as you investigate getting into a new business. Why do I want to get into this? What is the expected outcome from my decision to open a fitness facility?

The expected outcome is the end result of opening your new business, usually projected five years down the road. Again, more questions will help you determine the expected outcome of your new venture.

How can the NFBA help you get started:

• Feasibility Studies
• Business Plan Review
• Complete Business Plan Development

Call today 800-726-3506 to get more information and to talk with our consultants.