“…I want to open a studio. How do I get started?…”
I have received dozens of inquiries with some variation of this basic question. My answer is exactly the same as it would be to anyone who wants to launch a restaurant, a magazine, a retail store or a dot.com business. YOU NEED A BUSINESS PLAN. The act of writing and developing a business plan forces you to address all the critical factors that can make or break your business. While writing it you will begin to frame answers to the most critical questions:
- Who will my customers be?
- How long before I am profitable?
- How much money do I need to start this up?
- How much money am I likely to make in year 1, year 2 and beyond?
- Will I need other income during the start-up period (i.e. can or should I quit my current job?)
- Is the operation of this type of business suited to my skills?
- What are the key things I need to do to make this successful
- What kind of team do I need?
- How will I distinguish myself from competition?
- Should I recruit partners or investors?
- What are the risks and how much can I tolerate?
- What is my eventual exit?
The very act of writing a business plan forces you to formulate answers
to these and other questions. These issues should all be addressed BEFORE you borrow money, sign a lease, copyright a name or invest significant dollars. For some, writing a business plan convinces them they do not want to be an entrepreneur — much better to find out before signing a lease or investing in equipment. For others, writing the plan is the exciting initial spark that puts the engine in gear and gets it running. Feel free to contact us for a free consultation around development of your fitness studio business plan.