Although you’ve started a business to make money, you first need to invest some to make some – and this bit of wisdom is well-known among entrepreneurs and teams who focus of kickstarting an idea in a small, but rather crammed fitness market. Considering the fact that there are over 36.000 gyms in the US alone, the pressure you feel as a new gym owner is perfectly justifiable.
How you fund your fitness idea will greatly affect your ability to invest time and expertise in other areas of business development, so as to have a peace of mind when it comes to your financial stability, so to speak. Let’s look into several efficient ways to make sure that your gym stands on firm ground when it comes to budgeting, and the rest is up to you to choose and apply the ones that resonate with your particular business philosophy.Consider crowdfunding
A relatively new way to get started with your company, crowdfunding is gaining more traction due to its many perks, as well as the fact that many startups actually get plenty of publicity and initial marketing this way. In a single go, you’re able to introduce your idea to the world, see the response you’ll get, present it to as many viewers as possible, and of course, inspire people to join in and invest.
On the other hand, this is a slippery slope for businesses that have yet to create that edge, the appeal that will make them stand out from the crowd. By joining a crowdfunding platform such as Kickstarter, you’ll be competing with a slew of similar fitness-inspired businesses, all of which are trying to grab the fleeting attention of the common human being, as opposed to a versed investor who is much better at recognizing a profitable idea. So, if you do choose this option, make sure you tailor your presentation to your audience.Seek out investors
Also known as angel investors, an apt name for these wonderful individuals, they are one of the safest ways to start your business journey. First of all, no one becomes an angel investor overnight, so you’ll deal with a reputable individual with a track record of success, and plenty of experience under their belt, which they’ll be happy to share with you, since it will be in their best interest for your gym to succeed.
The fact that they have extra money they are eager to invest, however, does not mean that they will take any proposal that comes their way. You will need to make sure that your idea comes together with a financial breakdown of how you’ll use their funds, expected growth rate and return on investment for each sector, as well as your expected profit. These people like enthusiasm, but only if backed up with plenty of numbers to go in your favor.Consider a loan
The old-fashioned, somewhat complex idea of a bank loan is no longer your only option, and it’s no wonder so many business owners opt out since they come with a slew of restrictions and possible legal conundrums. Not to mention the paperwork, and no one has the time to mess with jumping through numerous hoops if there’s a simpler way to get things done.
Nowadays, you can apply for quick loans online, with extremely affordable interest rates suitable for your business, as well as other perks such as a speedy approval. They are a great option for businesses that could use a quickly available source of funding that you can repay in installments and focus on building up your membership base and sourcing high-quality equipment to make your gym a cut above the rest.Reach out to your friends and family
Some may see this as a last resort, but inviting your family and friends to invest in your gym is an excellent financial strategy, both as a stand-alone system or as a complementary one to any of the other funding options. This is especially great if some of your family members have faith in your idea and are well-off enough that you know their investment will actually not cause them any issues. Who knows, they might even join your gym to get the ball rolling!
The fact that they are your relatives and close friends shouldn’t deter you from treating them as fair as you would any other investor. Make an effort to help them understand your business goals, the market you’re entering, as well as the projections you have about the future of your gym. Just like your investors, they should also be aware of any risks involved, so keep your friends and family in the loop with every aspect of your business.Dip into your own savings
If you have always been a visionary in addition to being a fitness guru, you already have your own personal fund that you can use for kickstarting your business. It may not be enough to cover everything you need, but it can serve as a strong basis for your budget plan, and an inspiration for other investors to “pitch in” if needed. However, using your pension funds is also becoming a more available option for businesses.
Before you delve deeper, make sure you know all the right steps to take in order to make the most of your retirement funds to finance your business without penalties. Learn more about any risks that might be attached to your particular situation to decide if this is indeed the right option for you.
Luke is a fitness and health blogger at Ripped.me and a great fan of the gym and a healthy diet. He follows the trends in fitness, gym and healthy life and loves to share his knowledge through useful and informative articles.