I have an investor who is willing to fund me opening up a gym what are some of the cautions i should be concerned with in regards to that. What things will i need to have in place so i make sure that my gym and business run itself.
if someone who has done this before is interested in taking me under their wing to help me learn this process than i would be very grateful!
This is a huge opportunity for me and i want to make the most of it so please help!
Big question you ask!
Here are a few things
Write up a business plan
Hire a lawyer and tax accountant
Develop a marketing plan
Know your overhead/costs- includes, rent, equipment, salary, utilities, etc
Analyze your risk factors
Learn the business side of running a gym
Most gyms can’t run themselves -they need constant attention!
I managed a fitness studio for 25 years, never wanted to be an owner, too much of a headache
Feel free to email me any questions
It seems to me that you don’t have any experience operating or running a gym. My personal advice to you is that you put some more thought into this project, especially if you are going to take someone else’s money. If I were you I would first try to manage a gym for a few years, see how things operate, and learn the business portion of that operation before getting in too deep with your own gym. Susan has some great points for you and I agree with her as well. Also, if you need to get some advice on how to operate a gym it would be better to hire someone who has experience managing a fitness facility/gym.
Just as Susan mentioned gyms don’t run themselves without constant supervision. Before opening a gym you need to have done some research on a few things such as:
-Your competition (very important if you want to survive)
-Have a good solid business plan
-Make sure you have all of the necessary licenses and permits in order
-Hire the right people to help you operate the gym (this is very important)
-Have a solid marketing plan
-Know your overhead and operational costs
Managing a gym is very different from owning one, just as any other business. If you are going to open a gym and have outside investors (as you have mentioned in your question), you have obligations to them as well since they are investing their capital into your gym.
I wish you the best and I hope things go well with your new business opportunity.
First of all congratulations. I am sure you are excited and overwhelmed by this opportunity.
I concur with the answers provided by Susan and Harris.
There is a lot to be addressed in your question but I will focus my answer based on your primary concern – the investor…
Here is what I can suggest in terms of any type of partnership venture:
The investor, generally, is the one that is the most at risk. If you have been presented with a partnership agreement, have your own independent attorney review it (so there is no conflict of interest) and advise you of the risk and benefits.
Are there any specific conditions that the investor has placed on you that concerns you?