Time to create a proper strength gym in adelaide.

[PTC]

I recently looked at leasing a factory. Not a hope in hell. Even with the amount of clients I have, already owning more than enough equipment, and the availability of more equipment for free, the doors wouldve been shut in 3-6 months.

You'll need more than 4 bars, even with just 20 guys, it wont be enough. I reckon with 50 guys you'll still struggle for funds, and by then you may need 8 bars and 1200kg of plates, minimum.

The biggest killer for me was, rent, rates, insurance, electricity, water. This added up to over $25,000 a year. I was going to split it and it still wasnt do able.

Not knowing how you plan to set it up, members wise, thats a lot of coin. And that was without borrowing a cent, let alone $35,000.

With my set up currently, I pay no rent, no rates, no insurance(AFL cover it), no electricity, no water. My rates to clients are lower today than when I started in 2008.

Overheads will destroy you.

Make sure you cover EVERYTHING before you sign a lease big fella

The property your looking at will cost you $25,000 in rent alone, makes your costs way above $35,000pa, plus the loan. A 3 year lease, the whole lot could be close to $200,000 with your loan repayments and running costs for the 3 years.

 

[legalattorney]

I recently looked at leasing a factory. Not a hope in hell. Even with the amount of clients I have, already owning more than enough equipment, and the availability of more equipment for free, the doors wouldve been shut in 3-6 months.

You'll need more than 4 bars, even with just 20 guys, it wont be enough. I reckon with 50 guys you'll still struggle for funds, and by then you may need 8 bars and 1200kg of plates, minimum.

The biggest killer for me was, rent, rates, insurance, electricity, water. This added up to over $25,000 a year. I was going to split it and it still wasnt do able.

Not knowing how you plan to set it up, members wise, thats a lot of coin. And that was without borrowing a cent, let alone $35,000.

With my set up currently, I pay no rent, no rates, no insurance(AFL cover it), no electricity, no water. My rates to clients are lower today than when I started in 2008.

Overheads will destroy you.

Make sure you cover EVERYTHING before you sign a lease big fella

The property your looking at will cost you $25,000 in rent alone, makes your costs way above $35,000pa, plus the loan. A 3 year lease, the whole lot could be close to $200,000 with your loan repayments and running costs for the 3 years.

3

thanks for the guidance mate.. the bank will probably shut me down if they don't think its feasible...

ill try to cover the overheads (so the rent + electricity and water) with the membership costs and try to come up with the money for the equipment from private internal equity rather than external.

in this case, then ill have to have a lot more than 20 people ready to sign up when it opens... maybe do a stall thing at mall's and shopping centres and at local high schools to get the word out and see how many people wish to purchase membership..

i saw jetts 24hr do it at west lakes.. they were advertising membership before they even started to build most of their gyms in our local area..

in this case, i hope we can come up with 40 members paying around 20 a week...

and even if that can cover the overheads, i may offset the loan of 35,000 or so over 5 years, and pay it off using my job.. but that means me spending less time at the gym etc.. fuck..

 

[PowerBuilder]

A stall at a mall is not exactly the best way to promote your business.

Get your maketing mix right. The segment of the market your aiming for is quite small. It's there, though quite small.

I was under the assumption that there are some pretty good strength based facilities. I am friends with numerous national level weightlifters.

 

[PTC]

Look at the numbers generated at PL meets in SA.

The PA run Adelaide Classic had 7 lifters.

CAPO have no presence in SA.

Setting up a PL only gym in SA is like sticking a Tampon Vending machine in a Mens Gay Club.............no one knows its there.

You may be able to help, but it shouldnt send you broke.

Start in a garage, squat stands, bench press, a couple of bars, some plates. Take it slow. If people come, expand then.

I know a guy who did that, worked out okay in the end.

 

[DKD]

I like your approach to business Markos. Keeping control over expenses is vital.

I'm saying it like I've got some real world experience lol, but my guesstimation is that all these small businesses fold because of unrealistic assessments of the ongoing expenses.

 

[Aaron]

thanks for the guidance mate.. the bank will probably shut me down if they don't think its feasible

Don't count on that. Banks lend money to people that shouldn't get loans every day of the week...

 

[PowerBuilder]

Have you heard of a NINJA loan? No income, No job and No assets.

Banks make money on their ability to generate interest from the loans they provide. You're ability to repay the loan as well as the interest should be a major factor. While in reality some lenders unfairly overlook issues such as an individuals or groups capacity to repay the loan.

 

[some_cs_student]

<cut>
Banks make money on their ability to generate interest from the loans they provide. You're ability to repay the loan as well as the interest should be a major factor. While in reality some lenders unfairly overlook issues such as an individuals or groups capacity to repay the loan.

The responsible lending (NCCP law?), in Australia is toughening up the credit lending. Credit companies must show proof that they asked whether the person was able to repay the loan/credit before providing it.

So it *should* be harder now, although many banks have not completed there implementation of rules. The legislation was in on the 1st Jan 2011.

 

[titan au]

look up fortus gym in adeilaide

they are setting up a powerlifting gym and will have certified powerlifting coaches and referees soon

they have an eleiko powerliftng bar and plates and soon an eleiko comp rack (bench.squat rack combo)

 

[NPR]

Its the NCCC Gareth and even though it was implemented there is a grace period in terms of when banks need to become compliant.

 

[some_cs_student]

Its the NCCC Gareth and even though it was implemented there is a grace period in terms of when banks need to become compliant.

Really? NCCP....

Yes I know there's a grace period, and I know a more than 1 bank are applying for an extension or going to take the fine if they get caught by auditors

 

[kindred]

From a business point of view I dont think you should do this thing. You would be better off starting up in someones shed with a small group and insurance. Start as a small "personal training group" but basically just be a very small private gym for whom ever you deem worthy. Your plan seems very high risk. Start small then build big Infact isnt theres someone that does that sort of thing from here? Maybe he has better advice.

edi: he said stuff so forget my post

 

[Senator]

seen this all before used to be modras gym in the 80s sterns in the 80s brices all these were powerlifting gyms heavy duty stuff all set up in wharehouses except brices shed job,Good on u levendi 4 trying and i hope it works out 4 u.I now train out of the power house prospect plenty of weights 4 me (i am only benching these days )toooo old and no time up my sleeve just 2 times a week heavy and lite . there is no bumper weights there 4 deadies but plenty a steel and my son and other guys still do them hey a bb there was doing reps on 160k and 180k . cheers