What steps do I take before I engage with a consultant or climbing wall installer?
Three main factors go into preparing for a plan to build a gym:
- Market analysis
- Access to equity
- Available property in the market area. A basic market analysis is based on population.
If you want to build a successful gym, a rule of thumb is that you need a significant population to support a healthy and profitable gym. If you are in a community of only 50,000 people, it is unlikely that the venture will give a return on investment.
Before you engage a consultant or wall building service you need to determine if you have access to capital. Most gyms are financed through private venture capital. You want to propose your concept to either a bank or private venture group just to see if there is any interest in the concept. Selling the concept is important at this stage. Many of the private equity people will work with you in developing a business plan.
One of the most difficult stages of this process is finding a building that is suitable for you business. It is easy to engage a commercial broker for a search for property. You don’t want to put investors through a process if there isn’t property available.