How To Get Business Funding For Your Fitness Center
Getting business funding for a gym may be challenging compared to other small businesses. There are many needs from exercise equipment to shower facilities, and for some, a swimming pool and a spa. With the need for startup capital, below, you can find some steps to guide you on how to obtain funding for your fitness center.
Start by writing your business plan, describing your vision for opening a new gym, and your experience and expertise in the business. You should also include the skills of your management team, your employees, and any partners. This gives the investors and potential lenders an idea of how competent you and your staff are in the industry, and they can also measure the growth potential of your gym.
The next step is calculating the startup and ongoing costs, the projected revenue, and capital expenditure for the next three years. Your potential investors and lenders will want to see this projection based on industry research correlating with your business model. Ensure that the numbers are consistent with your plans for operating the business.
When looking for business funding, the next thing is compiling financial information from investors and business owners for loan applications. Some lenders request documentation for assets allocated to your fitness center and personal assets as well. On the other hand, loan applications require you to produce tax returns for both the business and business partners for at least three years back. You will also need to include any current and previous loan applications submitted.
Get a business partner. As you seek one, be ready to let go of a small portion of your business. When looking for a partner, find one who complements you, can finance the business, and has the right attitude. You can get a lawyer to help you craft a partnership agreement or a limited liability partnership, depending on the business’s needs.
Finally, it will be good if you get sponsorship from local businesses. Solicit the local business owners for sponsored advertising within their business. You can come up with this arrangement before opening the gym to show lenders and investors that you have another source of revenue. This ancillary revenue can be something like placing logos for other businesses near gym equipment.
Therefore, when looking for business funding for your gym, ensure you have everything in order before approaching a lender. You can also reach out to Advanced Commercial Capital LLC for financial help for your gym.