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3 Replies Last post: Oct 14, 2007 12:18 PM by score81

Need help learning to find honest and fair financing options.

Oct 12, 2007 7:15 PM

absbodysym 2 posts since
Oct 12, 2007

My company is called Absolute Body Symmetry and has been run as a home-based personal training service for 3 years. I have updated my business plan, trade marked my name and scouted out an up and coming 2500 single - family home community. I have a location. I have submitted my plan and had favorable comments. I have only had to revise it once. It's a good time to move on and build my business into one that isn't so dependent and demanding on me physically, Timing is crucial and I am ignorant to the financial dealings of this type of growth. The building site is going up in phases, so the proposed space I'm considering has not been built yet. This is a lease opportunity. The developers are offering 20.000 sqft. I'm not sure of the build out allowance at this time.

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LUCKIEST 7,932 posts since
Aug 6, 2007

1. Re: Need help learning to find honest and fair financing options. Oct 12, 2007 7:43 PM

Reading your bio, it sounds like you are in the right place at the right time.
Having a business plan is great. Do you have sufficient cash or equity??
You need an accountant, a real estate agent, a lawyer and throw in an insurance agent.
One or more of the above will get you in contact with their bank.
Explain your source and the amount of equity capital.
Develop a monthly operating budget.
Develop an expected return on investment and monthly cash flow.
Discuss your break - even point.
Finally prove a "what if" statement that addresses alternative approaches to any problems.
Good luck, LUCKIEST

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absbodysym 2 posts since
Oct 12, 2007

2. Re: Need help learning to find honest and fair financing options. Oct 12, 2007 8:08 PM

in response to: LUCKIEST

That is a great start for me. I actually have prospects in each of the areas that you suggested.

I use Pre-paid legal for my small business. Will that do for now?

I am in contact with the real estate agent in charge of the retail development phases at the location of interest. Should I get an outsider here?

I recently contacted an accountant referred by another entreprenuer I respect

I have currently have business insurance with CM Meiers, a reputable company for fitness facilities, I' trying to decide on the size of my facility so that I can get a resonable estimate on cost.

I own two homes and have equity in both but as a personal trainer my personal income is low. (Credit is good if not excellent)

I've not had good success with clubs giving me an insight to operating/startup costs so the budget part is giving me pause. Do you think that a startup of $175000 - $250000 is too far fetched for a first time venture?

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score81 76 posts since
Aug 6, 2007

3. Re: Need help learning to find honest and fair financing options. Oct 14, 2007 12:18 PM

There are number of issues need clear answer before a solution can be prepared:

How many people will be coming at the peak hour at your place? Should be part of busiess plan
Based on peak load and typ of services they will be using decide the space requiremet and other aminities.
Based on your business plan future out look of 3 year, you decide hoe big space will be needed.
Lets suppose you calculate on peak load there will this number of peple in irst year, then based on that I need space of 5000 SqFt. Now in 3 years my business plan shows growth 3 time. So that mean you need a space of 15000 sqFt.
Yo got three things in hand
1. Space requirement
2. Total equipment required
3. What type of inside configuration(walls, rooms, bathroom, etc) you need to look perfet.
Hire commercial realtor explain him all and ask hi to negotiate best deal with builder for the lease, which should include money to build spcace for your need.
Most Commercial Realtors are experts in caculating the cost of the lease and getting best dea for you. They have the financing resources to help you finance it directly from bank or if I am you I will do it through SBA.
Remember never ever use Commercial realtor representing Developer.
Most cases developer pays to your realtor. Just make sure.

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ForumsStarting a Business

This Question is Possibly Answered

Need help learning to find honest and fair financing options.

Oct 12, 2007 7:15 PM

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