Any Gym Owners Out There? Advice?

[quote]UtahLama wrote:

[quote]spar4tee wrote:

[quote]UtahLama wrote:
I am a minority owner of a gym here…my advice, don’t do it if you want to make money.

The only gyms making money these days are Crossfit Boxes…because they charge $100+ a month and have limited equipment.

See Steve Pulcinella’s log on EliteFTS…he owns an amazing gym (Iron Sport) in Philadelphia…and scrapes by.

Perhaps think of something else to do.
[/quote]
Steve’s the man. That is all.[/quote]

Absofucking-glutly[/quote]
Good post

[quote]landuatj wrote:
@utahlama

Thank you for the advice.

Im not looking to get rich. Im looking to make enough to live, “affluency through wanting less”, However, I live in an area where I can live well (Pay my bills, own a decent home, have extra cash to do things I enjoy) on $35,000 grand a year.

So, two questions.

  1. Can I PM you some of my thoughts on financials and the number crucnhing I have done and to get your opinion on them to see if its sound?

In regard to your original Post and remembering that its not about how come I cant its about how come I can:

  1. I assume since your a minority owner, although I may be wrong, you may not have full input on the operations of the business. So. How would you improve profitability in the club that youre a minority owner in?[/quote]

To #1…no matter how you crunch the numbers, it’s gonna be worst than you think for at least 2-3 years…have a solid bankroll…and your 2000 members? no-fucking-chance without a HUGE footprint.

#2 My club makes money…the main owner is seriously rich, he does not do bad deals…so we make money, just not that much. In retrospect, I think he built it as a…favor to the community/I am the man, tell me I am the man…project.

[quote]spar4tee wrote:

[quote]UtahLama wrote:
I am a minority owner of a gym here…my advice, don’t do it if you want to make money.

The only gyms making money these days are Crossfit Boxes…because they charge $100+ a month and have limited equipment.

See Steve Pulcinella’s log on EliteFTS…he owns an amazing gym (Iron Sport) in Philadelphia…and scrapes by.

Perhaps think of something else to do.
[/quote]
Steve’s the man. That is all.[/quote]
Greeny and I belong there. It’s a five minute walk from where we live.

[quote]imhungry wrote:

[quote]spar4tee wrote:

[quote]UtahLama wrote:
I am a minority owner of a gym here…my advice, don’t do it if you want to make money.

The only gyms making money these days are Crossfit Boxes…because they charge $100+ a month and have limited equipment.

See Steve Pulcinella’s log on EliteFTS…he owns an amazing gym (Iron Sport) in Philadelphia…and scrapes by.

Perhaps think of something else to do.
[/quote]
Steve’s the man. That is all.[/quote]
Greeny and I belong there. It’s a five minute walk from where we live.[/quote]

So Jelly.

That place looks like Disneyland for weightlifters.

It’s MY opinion that’s uninformed, though.

I’m curious if you have a sense of how many highly dedicated lifters are in your area, and how you arrived at the number.

Regardless, best of luck with the venture.

[quote]landuatj wrote:
@pk0ad
Thank you for mentioning my uninformed opinion. However,

No, I am not going about it ass backwards.

  • I know who my target costumer is.
  • I know how to meet their needs. (There is an underserviced population here in my area that are serious about the lifting they do and the lifting sports they participate in. However, there is no place that caters to them. Just places where, I’ll put it in one of their own words: “You know it sucks but Ill just do the best I can with what they have available.”)
    -I’ve been in this process and I bleieve I have, for the most part, come up with a plan/model which will provide these people with a place that meets their needs for a competitive price.

If you read what I am saying is actually this:

I am thinking about, starting the process, of opening a gym in my area. Im putting together the business plan(meaning that I have thought about things and have a general idea of what I want to do and how I want to do it)but, I am asking anyone who owns, has owned, or who operates a gym if they have any advice for someone who is looking to do the same thing. Something that I have not thought of

Example: “Hey, when I started my gym I forgot to budget for repair and maintnence costs. Once I rectified this I found myself more prepared for those emergencies. Being able to take care of this allowed for a better quaility of gym, a better quailty of experience for my members, and as an extension a more profitable and less stressful business.”

I will agree with you that the market is saturated. However, for the most part with clubs that compete for the same type of member. Zumba loving, BOSU ball ballancing, I need aqua aerobics, and if it isn’t fun it isn’t exercise pansies. You know the old catch 22. Its better that they do something then nothing but how much more then nothing are they doing? The serious lifters lift at one of these many places by defacto. The gyms dont market for that specific member type. Gold’s hold most of them because of Gold’s reputation. However, these Gold’s franchises are not even weightlifting oriented.
As one of my former clients, a fourtune 200 CFO and Executive VP, told me: " You have to ask yourself how do you build a better mousetrap?" In this scenario I provide a space and equipment that serves the underserved and most dedicated of lifters in my area. By extension we create a atmosphere of succeess, motivation, and dedication that attracts anyone in the area who truly wants to be better. In short we promote Quality by being better in every facet of what we do. I don’t want mom’s who want at least 60 classes a week but go to two. I dont want a place where somebody is looked at wierd if they use choke, puke, grunt, or lift over 225lbd(oh my). I want a place where success and hard work are appreciated, aknowledged, and celebrated. We have everything else in the area but we dont have that. I can provide that and although only a nutshell it is a better mousetrap. [/quote]

where you at OP ?

@pk0ad

I caught the my. Thats why I said thanks. Sorry that I didn’t clarify better.

I mentioned it would be able to top out in the 1500-2000 range. That would be my upper limit . I planned the financials so that I can break even at between 325 and 420 paying monthly dues. That doesn’t include any income from PT or any other source.

I feel confident that I could reach 500 in 2 years or less. I’ve lived in the area my whole life, and have been part of the industry here for almost 5 years. I’ve got a good feel for how gyms are run in the area, what is available to members and what isn’t. There is definitely a market.

Thank you for your well wishes!

@marlboroman

The Fox Cities… you?

[quote]landuatj wrote:
@marlboroman

The Fox Cities… you?
[/quote]

oh shit…I was going to guess Green Bay !

I hit the Lower Fox , and sometime the Wolf , for catfish …Kimberly , Kaukana , DePere…

Im about 60 to 70 miles to your south/southeast

Large Mouth, small mouth, Walleye and Pike, damn I miss fishing in god’s country.
Had a summer house up out of Gresham that my dad and uncle built on Koonz Lake.

Sorry for the quick thread highjack ; )

@marlboroman

I was born and raised in kaukauna live just down the road in Little Chute. You must lie in ripon. Thanks for commenting on my thread. I hope to have you as a guest one of these days. Good luck on the water with our early ice out, I’ll he heading north soon.

@killerdirk

It’s ok. I’m Wisconsin proud and I believe that wisconsin is an under rated place to be. Winter can suck. It gorgeous though and has a lot to offer in the ways of activities thy are close to god. Hunting, fishing, camping… Etc… Besides lifting they are some of my favorite things to do. Come on back and enjoy it… Also, you come be a guest too.

Take care gentleman

Just to clarify… A guest at my gym!

[quote]landuatj wrote:
Just to clarify… A guest at my gym![/quote]

that would be very gracious of you. Love the midwestern hospitality that I grew up with.

Native of Chicago but spent my summers, all twelve weeks up at the summer house. I for one

am glad that wisconsin is still underrated as it is so nice to go home to…

Heck, even Madison gets top kudos consistently for livability, work, outdoor activities.

“If” I do move back to the midwest expect to find me there…thanks

Ask around, send out some fliers, emails, shit like that to see how many people would ACTUALLY be interested. If you only get a few hundred, then base your decision for a facility off of that.

CS

I just wanted to say thank you for everybodies advice and well wishes. However, unexpectedly, ive been presented with the opportunity to move to California for a year, which is on my bucket list, so I will be moving there in august and shelving the gym for the time being. Thanks again.

Hey Land, which part of Cali ? If you need any insider info from one midwestern brother to another I have lived here now for 27 years, just give me a PM : )