Funding a Fitness Business

Starting your own fitness business can definitely be an exciting proposition. However, finding funding for it may not be so. In fact, it can be a very stressful task.

Starting a fitness business, whether opening a gym or a complete fitness center, requires a huge outlay of funds. So, before you start looking for funding, the first thing you need to do is prepare a business plan. The business plan must include all the details of your fitness business, from the type of fitness equipment you intend to have to the place you plan to open or rent your fitness center.

Doing this will give you a clear idea about the kind of funding you will require. However, starting a fitness business is not the only time you require funding. You will also need it if you plan to expand your existing business.

There are many different types of fitness businesses in existence these days such as full-fledged business centers, one on one personal training, cardio, boxing, yoga, aerobics and various others. The kind of funding you require will depend on the type of fitness business you wish to start.

When you think of starting your own fitness business, you should be ready to spend your own money. If you can't put up your own money, try to convince friends and family to invest in your fitness business venture. If you are unable to do that also, don't worry. Today, there are various options available to those who need funding for their fitness business ventures:

1. Banks: Banks usually approve large business loans. Simple loans are an excellent source of funding if you have the appropriate security to borrow against. Normally, banks look for a good business plan, great credit rating score and security. Once the risk of your venture is assessed, the terms and conditions are laid down. With the current popularity of fitness and health centers, it should not be difficult to procure a loan through a bank for a fitness business.
2. Mortgage: You can also raise funds for your fitness business through your mortgage. The advantage of obtaining funding through a mortgage is that they offer flexible repayment options as per your business needs.
3. Minority Business Grants: You can obtain as much as $50,000 for your fitness business using minority business grants. The main advantage of funding your fitness business venture using these grants is that they don't need to be paid back like conventional loans. Grants are provided by certain government agencies as tax-free cash awards. However, you must have a foolproof business plan to get approved for these grants. To increase your chance of receiving the grant, get them written professionally.
4. Administrations: There are various administrations and agencies that either work under the federal government or privately. They are dedicated to providing loans to people who are interested in starting their own fitness business.
5. Private lenders: If everything else fails, you can approach private moneylender to fund your fitness business.

Wellness and fitness industries have the fastest growing markets today. Thus, funding a fitness business start up should not be difficult.

Finding the Right People

There comes a point in the life or our business that we find oursleves needing to hire staff. Typically, that is a good thing because it signals that our business is growing. However, finding, hiring and keeping qualified employees and/or independant contractors is no walk in the park as many business owners will tell you. It requires a lot of research and planning because of how crucial your employees and or I.C.'s will be to the success of your business.



Putting together a team that has the right skills provides your business with an opportunity to grow and to meet its challenges head on. It's not an exaggeration to say that the right people in the right jobs can provide your with a distinct competitive advantage. Which brings us back to the point we just made--hiring the right people takes time and effort.



To increase your chances of hiring the right people, consider following these steps:

1. Take a good hard look at your business structure and budget before you decide to hire someone. Ask yourself some objective questions such as" do you really need additional personnel for the long term? Are you experiencing an increase in work load that will only last for a short period of time or do you expect it to continue? Can you afford to hire additional staff? This includes not just the salary aspect, but also fringe benefits and federal, state and local taxes assoicate with hiring someone.


2. Develop a clear idea of what you want that person to do and the job qualifications they should have. From this, you will be able to create a concreate job description that can guide you through the interview process.


3. Create an advertising and recruiting strategy that will allow you to find the right person for the job. This means you need to determine which advertising avenues will yield the best candidates. For example, if you are perateing on a limited budget are you more likely to find qualifiied candidates for the position of a certified personal trainer in your local newspaper classifieds or through the web?


4. Confirm that you have selected the right person for the job. Often overlooked but extremely important is the need to perform those all important reference and education checks.


5. Ensure that all parties understand the terms of employment. Draft a letter of employment that outlines any terms and conditions of employment to avoid any misunderstandings that may occur down the line.


6. Finally, orientate your new employee and provide ongoing training and support. Again, this is another often overlooked area. Do not stop with a simple walk around your facility or an introduction to other employees. Providing ongoing educational opportunities is not just an investment in your employee, but an investment in your business.

While it may sound corny, it holds true...our employees/I.C.'s are our greatest assets. Treating them with respect and providing guidance and assistance so that they can grow both professionally and personally contributes to our own business success. And, that's something we can all appreciate.

The Impact of Healthcare

During the business training for Achieve Fitness USA Licensing Program we talk about a variety of topics and programs. One of the programs available is a corporate wellness program. In our discussions about corporate wellness we discuss this from three aspects:

1) The company
2) The employee
3) The potential employee

The Company Aspect

Companies are looking for additional ways to cut cost and reduce expenses. In regards to health care the average cost has more than doubled from $4,793 in 2001 to $11,058 in 2010. This is a huge expense for companies. Many companies who have 50 or more employees now offer some sort of wellness program. Companies are seeing a huge return on investment by implementing a wellness program. For every dollar spent they save three dollars. With this sort of incentive companies are putting pressure on their employees to activity participate in the wellness programs being made available. In fact some companies are even penalizing employees who are participating in the wellness programs. Some companies are penalizing through increased premium rates or an annual surcharge.

The Employee

Employees are feeling the pressure to pursue a healthier lifestyle and manage their chronic health conditions. The pursuit of a healthier lifestyle includes losing weight and quitting smoking. Managing chronic health conditions such as high blood pressure, high cholesterol, diabetes, etc is strongly encouraged. The message is clear many companies are not accepting the lazy attitude many of today’s work force has towards their health.

The Potential Employee

Today the job market is more competitive than ever and whether we want to admit it or not the entire process of finding a job is based on discrimination. It’s true that traits such as color and gender are suppose to be set aside there still are many other factors. The price of health care has most certainly added another factor to be discriminated against when looking for a job. Employers are certainly more aware about the long term costs to the company if they hire someone who is in poor health and/or has poor lifestyle choices. If you have doubts here is evidence.

In 2007 The Cleveland Clinic stopped hiring smokers. It tests newly hired workers fro nicotine and rescinds the job offers for those who test positive. The person can participate in smoking-cessation programs and reapply for the job in 90 days.

Taking responsibility for one’s own health is going to become a reality.

Sources:

http://www.marketwatch.com/story/get-healthy-or-else-2010-05-15

http://www.inc.com/magazine/20060401/handson-human.html

Discovering Your Target Market

Target market is a phrase that is thrown around frequently. In simple terms, it is a segment of the market that is the strategic focus of your business. Being able to effectively identify who is part of you target market is important if you are developing a marketing strategy and campaign and you want it to be successful.

Prior to creating your marketing plan, you need to be able to answer two essential questions: (1) what is your target market and (2) what does your target market want and/or need that you can provide? If you are able to answer both these questions in great detail, then you can begin drafting your marketing plan. If you have doubts or lack details, you need to back up and do a little homework.

Who Is My Customer?
You need to recognize who your customer is because of the objective of your marketing efforts is to concentrate on those customers most likely to buy your products and services. Therefore, you need to start by describing exactly who your customer is. Are there certain characteristics that your target market shares? Do they fall into a particular age category? Gender" Socioeconomic class? Occupation? Do you know which customers spend the most time and money with you? Why do they do that?

Be Precise
When creating your prospective list of customers, you need to be as precise as possible. Make sure that you are able to identify them in specific demographic or geographic terms. If you can't you will have a hard time in determining which channels will be the most effective in reaching them, i.e. twitter, facebook, youtube, website, blog, etc.

Give Them What They Want
This is often a difficult area. We think we know what our customers want, but unfortunately we often fail at finding out what they really want and/or need. You need to be able to give them exactly what they want or need in a convenient and affordable way if you expect them to buy what you are selling.

Quality versus Quantity
More is not always better when it comes to developing prospects. Buying leads lists is one prime example of this. If you haven't taken the time to truly identify who your customer is, buying expensive marketing lists are often a major waste of money. Most of these lists are outdated to begin with and are typically only as good as the information you put into them when generating. Having a quality list of leads increases your ability to convert them into sales tenfold. So, shift your thinking from quantity and focus on the quality angle of building your list.

Use a Sounding Board
Finally, before running with that marketing plan you've created, test it out. One of the most common mistakes made is failing to test out your assumptions on a sampling of your target market. By taking a little extra time to conduct a survey or questionnaire of a small portion of your target market, you can avoid wasting your time and money. It may take a little longer to kick off your campaign, but it will be well worth it in the long run.

Hiring Trainers

When it comes to growing your personal training business it is important to create additional revenue streams. Amoungst the traditional revenue streams that come to mind such as, product/equipment sales, supplements, etc. Although somehow most trainers who own their own business fail to recognize that hiring trainers is in itself a means of adding additional income to their business. For those who have hired trainers I have no doubt that you have your share of stories to share both good and bad. Today I would like to share some tidbits for trainers seeking either their first job in the industry or looking to move on to a different facility. Here are top 3 things you need to have:

1. A plan. During my own personal experiencing conducting interviews I should have termed this "get a clue". But to get back on point I strongly encourage you to have a plan in mind about how you are going to pick up a client base and what you have to offer to a future employer. It doesn't matter if you are a independent contractor or an employee if you come to the table with a plan that is marketable you will truly stand out.
2. Know the Company. Spend some time prior to your interview or for that even before you apply and learn about the company. Know if the company is going to be a good fit for you. Does the company provide the opportunities your are seeking? Ask questions during the interview and recruiting process that generally show interest in the company.
3. Qualifications. Please be sure all qualifications are current. This would include: certifications, CPR, & liability insurance.

Make no doubt this is not a complete list, but if you are looking to get a leg up during the interviewing process make sure you have to above items covered and you will be at the top of the pack for landing your firs or next personal training position.