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Running a CrossFit Facility Tips and guidance on how to open and operate a CrossFit gym.

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Old 06-03-2011, 06:37 PM   #1
Troy Morse
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Gym Growth?

I know that there are alot of variables that can effect this, but still would appreciate some input. I am in the process of putting together a bussiness plan and building a 24 month cash flow projection, profit and loss, etc. I am curious as to membership growth other Boxes have experienced. Has membership grown with the popularity of our Sport, etc..

Here is what i am looking to do. I have a line on a building in Redmond WA one of the hightest $per house hold in Washington. The Building is 4200SQ ft with 2 GL Bay doors for $3280 per month, I have in Storage ready to go all the flooring and about 30K in equipment.
Redmond is also a very fitness orentated area.

I would be starting with only a few people maybe 2 Besides me
Jusrt trying to justify the leap
Any input is appreciated
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Old 06-03-2011, 06:59 PM   #2
Katherine Derbyshire
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Re: Gym Growth?

There are lots of CF boxes in the greater Seattle area. How would yours be different? How far is your proposed location from the existing affiliates?

Katherine
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Old 06-04-2011, 12:22 AM   #3
Aushion Chatman
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Re: Gym Growth?

Quote:
Originally Posted by Troy Morse View Post
I know that there are alot of variables that can effect this, but still would appreciate some input. I am in the process of putting together a bussiness plan and building a 24 month cash flow projection, profit and loss, etc. I am curious as to membership growth other Boxes have experienced. Has membership grown with the popularity of our Sport, etc..

Here is what i am looking to do. I have a line on a building in Redmond WA one of the hightest $per house hold in Washington. The Building is 4200SQ ft with 2 GL Bay doors for $3280 per month, I have in Storage ready to go all the flooring and about 30K in equipment.
Redmond is also a very fitness orentated area.

I would be starting with only a few people maybe 2 Besides me
Jusrt trying to justify the leap
Any input is appreciated
Heh, initial interest in CF grows as the name gets out there more, this doesn't necessarily mean your membership will grow...Maybe you'll get a few more people into your doors (a good thing), keeping them there though is where it's all about you and how well you run your business...and the community you develop.

How do you connect with people, how do you explain how you can help someone meet their goals with your initial conversation? How do you answer, "What is Crossfit?" how do you follow up after that first intro or conversation?

When someone new comes in, do your current clients all take the time to say hello and shake hands, or does the new person have to stand in the corner hoping to be noticed by someone who "works here" to come talk to them.

Obviously if you haven't opened doors yet, these things aren't answered yet, but they are what I would think about more than how much affect CF popularity as a whole has on your business...I personally wouldn't even care about the growth other affiliates in your area are having. I WOULD, however, dialog with them and let them know you are in the area, a part of the CF community, and look forward to a cordial and mutually beneficial relationship with any other affiliates, at least on the East Side with you. (Went to U-Dub).
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Last edited by Aushion Chatman : 06-04-2011 at 12:25 AM.
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Old 06-04-2011, 09:10 AM   #4
Tamara Cohen
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Re: Gym Growth?

I think the some issues to consider are:
1) Do you need a space that big?
2) How much per month does a smaller space save you?
3) How many members paying X amount per month do you need to just break even? How much to be profitable? How long can you realistically wait before you turn a profit?
4) Is the number of members and the X amount for membership that you need to break even a reasonable number and in line with what other affiliates in the area are charging?
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Old 06-05-2011, 09:45 AM   #5
Steve Loeding
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Re: Gym Growth?

WOW - that's a HUGE space esp for someone without clients... I'd suggest going a little smaller (ok, a lot smaller) if you can find space that is within the city codes. Build a clientelle and then move when you have to. There are tons of CrossFit boxes in your area - I'd be careful of expectations regarding numbers. Many people (Not all - but many) choose a gym based on location, so if there isn't any around for a few miles, you might do ok. Can you afford the rent with no clients for 3-6 months ??
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Old 06-05-2011, 10:56 AM   #6
Sam Ser
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Re: Gym Growth?

If you weren't confident in potential growth, why did you purchase flooring for a huge space and $30,000 in equipment?
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Old 06-06-2011, 06:01 AM   #7
Bryan Hood
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Re: Gym Growth?

I downloaded this cash flow calculator from the message boards here. I think the guys at Again Faster came up with it. Pretty good for projection.
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File Type: email Affiliate Cash Flow Calculator-Blank.xls (34.5 KB, 362 views)
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Old 06-06-2011, 07:10 AM   #8
Chris Cooper
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Re: Gym Growth?

Hi Troy!
This is one of my favourite ideas from Seth Godin: the Long Tail.
http://sethgodin.typepad.com/seths_b...ng-tail-t.html

Because CrossFit still fills the need for 'novelty' with most people, you'll likely see a big upswing at the start. Growth, for most of us, has not been linear: there's typically a dip as the early-adopters move on to something different, followed by organic growth from your best clients. For some, that happens slowly; for some, it keeps pace with their cash flow needs; for some, it exceeds their cash flow needs.
Your cash flow needs appear very high, but perhaps you can fund it during the building process.
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Old 06-06-2011, 07:17 AM   #9
Brian Strump
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Re: Gym Growth?

Business 101-

Don't spend more than you make.

$30k is ALOT of money to start, ESPECIALLY with not base of members yet!

You shouldn't need a cash flow calculator to tell you only spend on what you need. You don't need to run a bare bones operation, but why not not start alittle smaller,and give room to grow instead of blowing all your money before you have any members?

You don't even know what equipment you will need more of yet! At the very least I would recommend starting with half that tops, closer to $10k to open, and if the other $20k is burning a hole in your pocket then spread out $5k/mon, which is still ALOT more money than you probably need to be spending with little to no membership.

Unless you can pay your rent with kettlebells and rowers, I suggest you look for business advice prior to spending that kind of money.
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Old 06-06-2011, 10:51 AM   #10
Lincoln Brigham
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Re: Gym Growth?

Agoge Gym, Eastside Strength & Conditioning, Gravity Janes, Crossfit Redmond, Crossfit Kirkland, Northwest Crossfit, Crossfit Bellevue, and Crossfit 425 are all within 5-7 miles of downtown Redmond. Just saying.
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