This was the facility that needed to be refurbed before opening my last transformation facility (back in 2015)..
(the second pic is what it looked like after!)
Here are some critical things you must know when opening a brand new facility…
First, this needs to be a carefully planned project.
The build will likely take twice as long and cost double as much as anticipated. Make sure you have good profit reserves ready to scale into a facility like this.
Here are some more tips for Opening a Group Fitness Training Facility – that I wish someone had told me back in 2014!
Securing a Facility
• Location: get as accessible / central as you can – without going over budget for your rent / lease
Being in the middle of nowhere is cheaper… but way harder to get people through your door.
• Size: at least 3000 sq feet gives you adequate space to generate the revenue and profitability you need.
If you can’t afford to go that big yet you may not be ready for scale. And instead may need to spend more time putting capital reserve aside.
• Parking: important! 😀
One of the #1 considerations is to get adequate parking for a larger facility (if you’re going to have 10-15+ people per time slot attending)
• Easy access
• Have more than one estate agent looking for you. They can then compete to get you the best deals and contracts
•Discover how long current place has been unused to give yourself leverage. The longer the landlord keeps waiting the more money they’re flushing down the drain. Giving you the space can help them cut their losses if the location has been on the market for a long time
• Negotiate hard on rent & utilities included.
Aim to get one month free for every year of lease
And a new paintjob should be included
• Have lawyer look over agreement every time it is returned and double check before signing that nothing has been changed
• Everything you want and agree on MUST be included in contract, no matter how small
•Negotiate for rent to start when you open for business – give yourself 1-3 months to use the facility but not for profit
• In downmarket may be better to secure longer term (5 years) to fix rents in case of upturn
• Calculate profitability per hour and by square metre
Estimate your costs wisely:
– Lockers / changing rooms?
– Reception desk
– Paint work / design (give at least 1 month for artists to complete work)
• Use Facebook post / ad to fing Personal Trainers
• Make them complete Application form online with a CV / resume attached (use Wufoo.com for that)
• First interview: Use Skype / phone appointments for best candidates to measure personality
• Accept best phone candidates for live second interview
• Accept best live interviewees for live demo session
•Hire for personality, train for skill!
It was THIS TIME in 2014 we were doing all of the above. The location still looked like it did on the left image… and we were due to open in January!
We pulled it together, hired a team, refurbed the location, got the walls painted and got the equipment shipped in, just in time for the start of January when we opened our doors.
By April that year (4 months later) the facility was turning over £30k per month, and constantly growing
(without me being there day to day).
Its possible – with the right plan and the right mindset 🙂
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