I’m going from renting space in a gym to leasing space and offering classes. I’m currently with Sadler for PT and Philadelphia insurance for my PaddleFit. Do I need another policy for the building? Also os there a spreadsheet formula out there that can help me figure out how many clients I’ll need charges etc to make sure the leap is viable?
You might be able to add the building to your current policy as an ‘Added Insured”, if not you will need to upgrade/change your policy. But to be sure about this, you might want to contact your insurance providers. As for the second part of your questions, I’m not sure if there is a formula that will help you figure this out (hopefully someone else could provide you with one that works for them). You’ll need to know what your overhead costs (rent, equipment, operational costs, fees and taxes, any construction costs you might have, etc.) are going to be and then figure out how many clients or how much you’ll need to charge people in order to be profitable. There are many ways to about this, so you need to find out which one will work best for your business model. Knowing your target clientele helps because then you have a better idea about the right type of marketing and promotions you will need to have in order to increase traffic for your business.
It’s better to have all these calculate before making the jump and also have a solid business plan in place. Good luck to you.
Harris and Sue are correct, you should call your insurance providers to sort this out. They can likely give you a quote for rented space or let you know whether there would be a cost to add on to your existing policies.
In addition, you should take a look at the terms of your lease. Your lease may require you to carry specific insurance and name the building owner, landlord, and/or management company as additional insureds.
In terms of a cost-calculator, you may be able to find a worksheet or spreadsheet online. I would suggest looking at udemy, which may have a course on small business finance. You should also see if your state’s office of small business assistance has a program, spreadsheet, class, or other resource. (Most states have some kind of free state assistance to small businesses. The specific name of the office may be different, and it might be under the secretary of state or secretary of commerce. The resources are generally good quality.)