How to Launch a Successful Gym Business | Greg Vanderford | Skillshare

How to Launch a Successful Gym Business

Greg Vanderford, Knowledge is Power!

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17 Lessons (1h 30m)
    • 1. Gym Business Promo

      3:30
    • 2. Lesson 1 Gym Business Introduction

      5:32
    • 3. Lesson 2 The Best Business Model Ever

      5:30
    • 4. Lesson 3 Positive Cash Flow

      4:33
    • 5. Lesson 4 Reducing the Risk of Failure

      9:49
    • 6. Lesson 5 Purchasing Equipment

      5:29
    • 7. Lesson 6 Turbocharge Your Launch

      5:41
    • 8. Lesson 7 How to Rapidly Gain Marketshare

      5:24
    • 9. Lesson 8 The Power of Automation

      6:09
    • 10. Lesson 9 How to Avoid Lawsuits

      4:51
    • 11. Lesson 10 How to Avoid Losing Money at Launch

      6:16
    • 12. Lesson 11 How Much Capital You Need to Start

      3:25
    • 13. Lesson 12 Marketing Plan Basics

      6:39
    • 14. Lesson 13 Launching with Little or No Money

      6:47
    • 15. Lesson 14 Franchising

      2:56
    • 16. Lesson 15 The Best Gym Franchise

      3:49
    • 17. Lesson 16 Conclusion

      3:14

About This Class

Much ink has been spilled about how to launch a successful business.

However, research and business modeling analysis has proven that CERTAIN BUSINESS MODELS SUCCEED AT A MUCH HIGHER RATE THAN MOST 

The Gym Business is one such business model.

The reason for this is due to the fact that after the initial investment of setting up the gym, there is very little continuous investment needed, while customers come and pay in advance for long periods of membership. 

The gym then makes money whether or not members use its services, but cash comes in first. This makes the gym business a very CASH FLOW POSITIVE BUSINESS

Poor cash flow is one of the main reasons why most businesses fail in the first year. They are under-capitalized and then don't have enough time to develop business before they run out of cash. 

In short, the risk of failure with a gym business is FAR LOWER than most other business as well as FAR MORE PASSIVE after initial setup.

In this course you will learn:

1. How to setup the business

2. How to order fitness machines and weights

3. How to design the gym

4. How to run successful promotions to build membership

5. How to structure marketing campaigns to build membership

6. How to virtually guarantee your gym business is successful with little known secrets of the business

7. How to intelligently reinvest earnings for long term growth

8. How to make the business almost 100% passive so you can enjoy your life

9. How to eliminate the chance of being sued successfully for any injuries that may occur at the gym

10. Much more!

Join the course, and learn how a Gym Business can provide enough passive income for you to live off for the rest of your life!

Transcripts

1. Gym Business Promo: Hi, My name is Big Band afford. I consider myself a serial entrepreneur. At this point, I opened up over a dozen businesses over the last 10 years. Small businesses, most of them I have launched have been over here in Vietnam where I live, some kind of a specialist in the expat business type of markets. But I'm also a business teacher and writer, and I just been fascinated by micro economics. And I am a student of business and economics, and I just love everything about it. So I make courses to teach you guys about business models that I have experienced with, from a practical point of view in terms of how to actually do things, not from a theoretical point of view in terms of what the textbooks se. So the most recent business that I launched was a fixed business business. I prefer to call a gym business, and I launched the gym business in Bootle, Vietnam, And then, in this case, I decided Teoh immediately sell the business, do some interested investors after I got upper running just kind of my specialty. This point I like to do start up and because I'm really good at startup. I feel like teaching people how to start business is a really good fit, and it's very help. So in this course, I'm gonna teach you guys how to launch a gym business. My business was called Max Fitness. And so this over here in Vietnam and most of you listening to this probably don't live here . I'm actually going to give you guys some of my materials, the logo, and you're gonna have the business plan that I made for the course. Excuse me for the business and some financial analysis that I did and some actual stuff that is being used for this business Over here. You can launch it in your respective country, and you don't have to worry about being sued or anything. Although there are already some gym businesses called Max Fitness. I mean, you can have the same name is one in your country's lines. You know, it's not across the street from you. I wouldn't worry about it. But in any case, I'm gonna show you guys why, in this course, the gym business is one of the absolute best businesses to open Is the most or one of the most automate herbal businesses. It has some of the highest potential in terms of what you can make for your investment, and it's what attracted me to the business in the first place. So I started looking at the numbers and we started analyzing the business model. I was really impressed, and there are some macroeconomic factors that go into this right now. People are aging, they need the services of fitness center, and this is going to be a trend for many, many decades to come and the businesses ballooning. It's over $70 billion now of the fitness business, and it's growing every year. And the great thing about it as gonna learn in the course that after your initial investment, it's gonna be a lot lower than you probably think. You think about how expensive equipment is and everything else. There's a lot of ways to save money and get started with a lot less money than you probably think. And after that initial investment, it's mostly passive. People pay membership fees and they come to the gym. You don't need to manage much Compared to all other businesses, it's one of the most passive businesses, especially now because of modern technology. So in this course, you guys gonna learn how you can launch a gym business were analysed in numbers for you. I'm gonna show you that you could automate the business. What software to use. And they should be how you could build a successful business even if you have no business experience. Because this is a model that is easy to learn and anybody can do it. And so jumping in the course and let's dive right in. 2. Lesson 1 Gym Business Introduction: this course how to launch a probable Jim business and create lifelong passive income with a successful Jim. Doesn't you guys gonna learn why this is one of the best business models out there? Why, it's the most automated, well, business wise, one of the best place for your cash flow and what's when the easiest launch and to manage. In addition, you're going to learn why this industry is one of the best ones to be in because of demographics is going to be growing for a very long time, and it's going to be growing at a rapid rate. Right now. The markets are up $30 billion in the U. S. About 70 to $80 billion worldwide is growing very rapidly as people are aging and people have health issues that need services. Get at a gym. They need trainers. They need to be consuming oftentimes supplements and other health products. And due to the fact that Jim could be totally automated now, automated check in automated payments you really don't need to have any employees, all except for one or two staff members to be on site part of the day to handle signing up new members. And if you're gonna have personal trainers, everything like that, you don't need very much human labor. You don't need much overhead at all. Lowers all of your coughs and it makes everything very easy to manage. You don't need to be on site to run this type of business once you get it set up. And actually, due to the nature of the software and the technology that changed right now, it's getting easier and easier. Very, very cash flow. Positive business because it's two ways that people pay for the service. One of them is they have it automated so the monthly membership fee just comes out of their bank accounts. So instead of having toe have to account perceivable where you send out bills and things like that is usually really bad. Your cash flow because you're rendering a service and you're waiting for capture committee give you really bad cash flow problems. It's one of the biggest risk that you take a small business owner. Well, in this case, the wages comes out automatically and so your cash flows excellent. On the other hand, the second way that you have money coming in is when you give discounts or longer term memberships, for example, baby cash for a whole entire year and they can save 10 or 20% or more, which we're gonna talk about in the course. Then what happens is you get a huge influx of cash for a long term service. You're not rendering service yet, but you're getting the cash to come in. So it's really, really good for your cash flow and you offer a lot of value and you give the discounts for people to commit themselves for a long time. And they may or may not even use the membership in one of the famous things about customers of Jim's. This sign up for New Year's resolution, and are they really motivated? In the short term, they stopped coming. Now we don't necessarily want didn't stop coming. The thing is, once they pay their money, we have it. And whether they come to the gym or not, it's none of our business. So it's really, really good for the cash plummet. Teach you guys some ways that you could make the cash flow even better, and you could really juice up your short term results so you got. Money is flowing through the business from the very, very beginning, So it's one of the very few business models that could be made. Holy passive is one of the business models where there are many ways to launch. There's many different kinds of niches and markets, and so even though there may be a lot of competition in your hometown or in your city, is almost always a way to have a probable gym because you can have a small gym that could be very, very probable without costing a lot of money too much. So you can start with little or no money in many cases, which is not the case for a lot of other businesses. And also you don't need to be an expert to run a gym. Immediate. Some machines you need some weights. You need to have systems in place. Check in system, which pretty much comes as a package deal with software you're gonna pay for, and everything is running for you. It's like a little money machine. You don't even have any business experience really to do this, although you will learn to go. We like to think he'll need to learn as you do it. But in this course, I'm gonna give you guys materials from my actual Jim that I have launched and sold off over here in Vietnam give you guys a business plan. Financial analysis that we used forecasts and even the logos and stuff. Three D renderings, the design of our Jim. Everything that you guys would he to launch your own, Jim, even that you guys made what to watch one. That's a smaller scale. And the one that we did, they give you guys a lot of ideas and give you a really good example of what you can do. So again, you don't even have a lot of business experience to launch a gym. I was one of the fastest growing industries, and it will continue to be one of the fastest growing industries out there for a very long time. That something that you really want to have if you're gonna be opening. Okay, Jim Business. It's projected to continue going for a long time and the automated monthly payments or large sums of cash up front for that discounts for the long term memberships all lead to it being a very low risk business compared to almost all the other businesses that are out there. And in addition to all this stuff, there's a lot of really good franchise so that if you do have some capital get started on a larger scale, you can buy one of the franchise models that we're going to talk about in the course. That could make it even easier. And you can make a larger amount of money than you otherwise would. Lots of ways to succeed in this business. It's much easier than most type of small businesses, and you don't need to be a genius or a business expert to do it. So, um, with that, we'll jump right into it, and I'm gonna teach you guys how to launch a successful gym business. 3. Lesson 2 The Best Business Model Ever: So, as I already mentioned, out of all the business models that I've studied that have tried in the real world, this one might be my absolute favorite. And one of the main reasons are is the the systems for collecting payments that lead to excellent cash will. Actually, a lot of people failing business because of bad cash will having to sell the service and then send out bills and wait for money to come in and chase people up for money to get their accounts receivable. Lots of that. You're in a competitive industry. People want to be able to put things on credit. They want to be able to just sign for their order and then pay for it next month or paper within 90 days. A lot of the terms for credit accounts are paid within 90 days. It's really bad for your cash, for most of your customers are doing that. You're spending money operating your business and your hoping that people pay you one time . It was very stressful and you run out of cash business, you know we call cash. The lifeblood of the business is very bad for you, but a gym been. This is amazing because people are paying automatically. You literally are taking money out of their bank accounts Was almost everyone wants to automate the payments so we don't forget to pay. Very few people will want to pay by the old model of sending a check to you. It just doesn't really happen anymore. The automated they pay their 40 or $50 or whatever it is membership feet per month. And it goes straight on your vic count. Don't worry about don't worry about the building is a huge headache for most businesses. That's totally eliminated in this one. And secondly, as I mentioned in the introduction, you can sell a long term membership. So one of the ways so long term memberships is that we sell lifetime memberships. And so you sell a lifetime. That was really stupid. Head to this. Um, Then you can get a large chocolate. So you still a lifetime membership? We usually based the analysis on this on 20 years because, you know, made people may not want to use a gym in 50 years, but still way say that lifetime membership, and we want to calculate it up for around 20 years. That would be the same as paying only $20 a month, as opposed to maybe the normal membership be one of the pages one month at a time is $60 a month. So you're getting huge, you discount and you get $5000 cash into the business. Now that person can theoretically used their membership forever. But you know, if you can sell a few of these memberships that can run your business in some cases for many, many once imagine if you've launched you successfully sell 10 or 20 lifetime memberships, then you're bringing in $50,000.100,000 dollars cash into the business. And a lot of people worry about well, if you still like the membership, so the gym's gonna get too busy. But it takes a very large number of members to make the Jimmy full and so full that there are machines for people use. The only had to worry about during peak times during rush hour afterward, an early morning before work. But that's gonna be a problem that you wanna have. Your gym is still busy so crowded that people are complaining. Well, you know that will be an issue, but really good from that. You have a lot of money coming through. The business is not something you should recently worry about. Okay, so when you get payment up front by offering a discount and you can sell a long term lifetime memberships for $5000 or more, it's kind of like a typical mount. You have a lot of cash coming in to visit. You can kind of relax and work on making the business really good, because your cash flow was so good. You have enough money to run for months at a time, or even a year at a time. You get really good sales. This is also with paying that rent. Talk about later, but you can hire sales people on a commission just like you would look at a car dealership . You know something is a $5000 sale. It's worth it to give the commission of, let's say, five or 10% and you have some of the commission of 10% on this sale. There get $500. That's a nice chunk of change for them to just get a sale of bring someone business you get $4500 in cash that would come into this business. Another thing you could do is when you're very initially launching. I'm gonna talk about this later. Also is you can even do just kind of lifetime memberships to try to get a lot of cash to straighten the company problem. You long, we'll talk about that more later. So this is just a sip. A typical example of the normal never should be might be around $60 a month. You start giving them discounts for the longer term. To get more cash to come to business, pay cash for six months at once. You drop into $50 a month, so $300 in cash comes in instead of just $60 up 12 minutes of one's. Nothing $5 like $45 a month, $540 cash coming in. So this is a way to increased the cash flow. A lot of people like to get the discount, and they will be more than happy to pay cash. Now some people don't like that is you know what? I would rather just have it so that its automated and it paid by them. So they must pay that the $60 fee every month. And then let's get build one month at a time. And in that case, you just have a nice even cash flow that is passive. Just your software handles. It just takes out of their bank account and invoice this entire problem, having to collect on accounts receivable. So those two ways of collecting money in this business, almost just by themselves make is one of the best business models out there. And then we're gonna get into why, uh, all the other aspects of the business true will charge it even more. So most businesses fail. Do Teoh initial under capitalization or bad cash flow, they run out of money before they're able to succeed in building up the business. So this nest lecture, you're gonna see why this business of ways is problem 4. Lesson 3 Positive Cash Flow: now emphasizing this positive cash. What aspect? So much so why you understand that most businesses fail for this one reason they're undercapitalized or they run out of money before they have time to build the business up and get customers. And so this business is positioned to avoid this problem. And there are many strategies that could be used further increased the positive cash flow of the business in addition to the couple that I've already just mentioned. So the payment upfront offers great value for customers, but even more for the business. So it's a way for you do get customers in the door to get sales to get cash flow going. And also, it's a good PR because people see, Oh, this is a really good deal that goes off. It's great promotion right now that you do it like that membership. It's $1500.1500 dollars off and get over $300 for a lifetime membership. So you create buzz and you get people talking And, you know, like I already said, customers may not even use the membership. A lot of people, no, they are too lazy to work out. That's just the way it is to pay for things, and then they know they can use the membership they want to. But the end of not using all that much. And that's actually good for you, a za business because you don't want the gym to be full. And so it's just in a little quirk of this business. Seduce the relative lack of motivation of most people after the paper. Jim Services. Most people don't actually come that much, and so you get paid for services, not even rendering now. That's not our goal. We definitely want to be adding and providing lots of value to our customers. We're not trying to sell something that people are going to use, however, is, uh the nature of the business. It's a reality in this business that lowers the risk of the owner. A gym almost never completely fills up except during peak out. So it's just something that you don't need to worry about, and so it helps your positive cash flow. And another thing is, it's really easy to see the value get stale of everybody that joined a gym, especially if you're doing just councils stuff. It's not a hard sale to make people know what they're getting. But most businesses, you gotta have sales people out there trying to explain the benefits of what is there selling. Everyone understands the idea of joining a gym and what you're gonna get out of it, so that no, you know, salesmanship that really needs to happen you need to worry about is if you have a lot of competition, how to get them to buy from you and set up to buy from them. That's what we're gonna talk about throughout the course. Okay, you can employ a commission on the sales reps to customers, especially to sell those lifetime memberships, was long term memberships, and it's a really great deal with salespeople. They get people to come in and buy membership. They can make a lot of money off those commissions. It's a really great deal for you because you're having someone help you with sales and getting that cash will coming in as I've been talking about, it's a really great deal or the customer because they're getting a discount and they're getting really good customer service so aggressively advertising your highest price products like Lifetime in your lung memberships is really the way to go, especially when you're first starting. It's the best value for everyone. Everyone. You make the most money, they get the most out of it, and it lowers your risk because it gets cash flowing into the business is one of the things not everybody does. But you understand a little bit about this business. It's something you should definitely be very, very aggressive at the beginning, especially if you have a significant amount of competition in your market. Another thing that helps you get often running at the beginning and helps with the positive cash flow is by buying used equipment. You can get really, really high poulet equipment that is used for a tiny fraction price you pay for brand new equipment, and for most people had joined a gym. They don't know if this news you used. They don't care. It's new or used. I don't I don't care if I go to a gym and all the machines weren't great and the weights, I never think about its brand new or old or anything like that. Most people just don't care about that, and so if you buy it used or lease it. You can save a lot of money and boost your cash flow. Even Mauritz almost really never makes any sex to buy totally brand new equipment list. You're going for the really high end and have a lot of capital and maybe some reasons why you want the perception of your business to be a very, very premium product. But for probably mostly take its course. We're gonna want to be watching with little capitals possible and get it as good of cash flow can early on, Teoh recoup our investment as possible. So for buying, buying used equipment or at least the equipment is the way to go. And I'm gonna go into some detail about that in later elections about how to go about doing that. Okay, so the next lesson we're gonna look about how we can reduce our risk. When we launched this business even more 5. Lesson 4 Reducing the Risk of Failure: The first thing you need to learn about business when you go to business school is they may not even teach you in school has had a lower your rips. Think same thing is true with investing things, anything that shoot with any time of entrepreneurial business endeavor. How can you get a business up and running a business system that makes money without risking everything? And so one way is by being very, very careful in selecting what business you open, it has to have certain characteristics. Now. This is a business that has almost all the characteristics that you want that I are even discussing so far. Positive cash flow easy to manage, automate, able even to launch provides great service parents great value. All these things that all fits. Okay, Anson Industry that is growing and it's unregulated. A lot of businesses are very highly regulated by the government, so if you want to get into the insurance business, you want to get this other types of the health care industry. It's regulated a lot of red tape and a lot of hoops. You gotta jump through in order to launch that business, whereas a gym that's not were the case. The main thing you want to do what you talk about later. Also, you just wanna make sure that you have ironclad waivers of liability. So if anyone does get injured while they're on the gym, there's no way that they can sue you because they have signed the name on the dotted line leasing you all lined building. Other than that, Jim missus, it's not regulated by the government. Like a lot of other. This is in the health care industry, so it's a huge, huge boost to the business. That's a big thing you have to worry about, usually when you launch a business. So in order to reduce your risk as they already mentioned you by used or you least, the equipment significantly lowers your start up costs. And therefore, by lowering your startup us, you're lowering your risk. You can get all the machines for the entire business for 10 or $20,000 instead of $6100. When you can do is I'm gonna show you later. You are lowering your risk by a great deal, and then you could probably cover your entire startup costs with Stammel just a few lifetime memberships. The left of memberships are the most attractive service air offering. They have the best value for money, so they're not that difficult to sell, especially if you're really aggressive with the pricing at the beginning in order to get your first memory is going to be very hard for your competition to compete with you. If you're offering two or $3000 lifetime memberships, you're not gonna want to do that forever because you may have a problem with having two people in the gym. But nor did get that cash rolling in and to create buzz and get publicity. It's a really, really smart thing to do. So you want to be aggressively promoting your higher price products to bring in a lot of cash from the business's first being launched. This lowers your risk, and you know, a lot of people think I don't want to give too much away. I don't want Teoh underprice my service of my product, but this is a way to get launched. You can't succeed at all if your business fails in the 1st 1 or two months, so you want a very aggressive in gaining market share at the beginning. Later on, you can stop the promotions. You could raise your prices. You could do many things once your business is established. But most businesses, they'll people don't know how to establish the business. They're not patient enough. They take too much risk. They spend too much money and they don't know what they're doing. So if you are picky about what business, you start the first place. And then you learn how to launch on a shoestring budget in industry that is rapidly expanding, you are lowering your risk immensely. You can almost guarantee that you're gonna have some level of success, at least not go out of business. So I was already mentioned. You can offer lifetime memberships at some special rate like the 1st 12 to 3 months or so, only $3000. And you can promote the heck out of that. And you could put in earlier advertisements bring a giant banner outside of the business itself. Have everybody see it? People will talk about Oh, did you hear? Is the new Jim. They're offering $3000 lifetime membership. That's amazing. Get everybody talking about it and you get some word of mouth was going, and it reduces the risk of failing in the business. Nothing you could do is, you know, start really small. Rent a small space open a small Agip charge less than the competition. Your lower overhead, you lower costs and just get yourself established. And then, once money is rolling in, you can always expand into a larger space. Don't think that in order to compete with the giant Jim down, really, you have to have the same size with the same quality of equipment. If you're offering a lower price with your offering something different, some sort of different product or service or different value, you're going to attract at least a segment of the market. And that's all I need to do. Either pull some of their Custer's away from them, or even pull in some customers that aren't using the other gym for various reasons. Maybe the things overpriced. Maybe they are intimidated by the largest size and the fact that it's always busy. Who knows, You know, I know that I don't like going through Germans crowded. I'm going to Egypt when there's not many people, there are small gym. I only need a few machines. I don't need to have a huge, huge selection of machines, so I'm the type of person that would be attracted to a little gym in a nondescript place. So you launch something little gets him good cash looking and start making money. You can always add to your services your offerings. You can always expand later, but one with a lower risk. In at least being established. Start really small and then grow it out from there. Keep things simple. You can start with just basic machines and free weights. You can add that equipment as profits increase. Just that you can expand the size profits increase. You may start with this fewest 45 machines and two or three benches and three weights and then make your price much lower than the other. Jim is going to attract a certain part of the market. You sell lifetime memberships and you're off to the races. You could be profitable immediately. This business, which is very unlikely with most businesses, Most businesses get to be operating for around a year for you gonna, probably because of the outlay of capital because of the nature of cash flow there. The thing with the gym is you buy or lease equipment, and there are very few other expenses. After that course you have utilities and you have the rental of the space with other businesses. You got costs of goods sold coming in. So if you're selling a product in a retail situation, you've got a lot of money going out to order that stuff. And then you don't have money coming in until it sells. See in a gym business. That's not the case of all. All of your money goes out initially when you get set up, and then mostly you just have cash coming in and you have a few expenses to managing. Expenses per month are much, much lower, so lowers your risk. By leasing, you could choose the least. You can give yourself time to get cash pulling into the business, so I mean, you think about it. If you set of spending 20 or $30,000 on used equipment, if you only spend like one or $2000 a month to lease it, yes, you will never own it, and you will always have at least expense until you, by the way, at some point in future, it lowers your risk. In the short term, it allows you to easily cover all of your costs. I mean, if you think about and we're gonna do an analysis of this later, if you spend $2000 a month at least equipment lease equipment, usually getting brand new equipment, so you least brand new room for a couple of dollars a month. That's what you spend $1000 for the space and you have $500 utilities and you've got $1000 and, um, employees or something like that. So you're talking about having somewhere around like $5000 in expenses. You could sell one lifetime membership and cover the whole month's expenses, So you started looking at selling a few lifetime memberships. You're safe your cash flow for several months in the situation, so leasing could be a good way to go, especially the lower your risk in the beginning, and then later on, you can buy the equipment to do that. We want to do but automate and Jim. Business on the software also makes the accounting checking in and checking out all the building. It's really, really easy to met. This lowers your risk because allows you the manager, to focus on lots of other things to focus on sales, to focus on making sure that customers were happy and everything is running smoothly in most businesses. There's a lot of management going on, especially the beginning, as you know the assistance of running as you train. People who get a higher people train people, all kinds of little details that take up your attention and take your time. This business is so simple, you know, people commit. They know what they're getting. A lot of sales that have to happen. You promote your main product that I've been talking about, the long term memberships and stuff like that, and then the stop or taste terrible. The rest. You know, you just put their name and information into the software. Give them whether you're going to use a fingerprint scanner or gonna give them a card they can swipe. When they come in and out, the door will be locked. They swipe themselves in with their car. It's very, very simple, and the computer is connected to the door it'll is connected and the payments are automated . I mean, it's just such a low level of management necessary that lower is your risk because allows you focus on making sure everything is running smoothly. Instead of all your time being taking up with just, you know, hectic. Be trying to manage the day to day stuff. So those are a lot of different ways that you can reduce the risk of owning the business. And it's almost not even possible to do that. With 99% of other small businesses just more chaotic, there's just no way to automate those businesses. You need a lot of staff. We need to be managing things and doing a lot of things yourself and just more chaos. But this business model is so simple, it allows you. Teoh have a lot of stress, and the probability of being successful is much, much higher, as's promised. We're now we're gonna look at how the bridges equipment and look some details about how to go about doing that. It's 6. Lesson 5 Purchasing Equipment: So I've already given you the example we're gonna compare and contrast is two options either buying used or leasing the equipment. So if you choose divine use, you save a ton of money. You never, ever have to make another payment. So buying use is actually the best if you have the capital because once you bought it, you own it, and your monthly expenses are gonna be much, much lower. If you leased the equipment. Your initial outlay is much lower. But you have that payment forever until you actually make a purchase. It was gonna matter on how much capital you have to start with. The more capital you have, the better idea is to buy the less capital you have. A better idea is to Lisa K. That's basically the way you want to think about leasing conserves cash in the short term. Not as good in the long term. Okay, so I must give you a quick example. Here's you some real numbers. So a used treadmill will cost you some urban tree. You could get us cheaply as 500 to $1000. We're talking about, like, really good was really high. Pauling ones that last a long time. I've had $100,000 instead of $3000 up some really hyper electric, those five or $6000 or more. But you can find on the Internet. Or if there's like a going out of business sale from another gym somewhere in your region, you could buy a bulk and get a whole bunch of treadmills for like, $500 apiece for maybe $700 apiece. It's much, much cheaper than buying them the same thing with things. Things like spin bikes. You good to spin bikes for 2 to $600 each instead of $1000 of its new stationary bicycles to $600 $7000 if it's new, So on an order of 10 machines and say you have an average savings of around $1000 for machine. I save around $10,000 your total copier total costs or 10 machines might be as low as three Grant. That's not very much money to get multiple professional grade cycling and aerobic machines , so you can do it for a few $1000 if you buy wisely. $3000 is the cost of one new trend or half one really high quality you trip. So if you shop around, you find some good you stuff your time of saving yourself tens of thousands of adults. And that's exactly what we did with our Jim. Over here in Vietnam, we found some used equipment, and we will pay about 20 grand for all. We ended up just upgrade to get very, very quickly afterwards because we had positive capturing for selling lifetime memberships has already mentioned. And then we were, like, doubled the amount of equipment we had at the gym. And due to the nature is the way things worked out for us, we found investors. People wanted to get to the gym business. Ours was immediately successful and launched everything really well. There's offered to buy us out, and we took the offer, so I just sold it. Um, but this is what we actually did. This is a real world example. These are all real numbers, okay, not lease equipment. Let's see, you want $50,000 with a brand new equipment, and that's about how much you might spend on a small gym. Because there's already mentioned. If you're paying for $5000 for one trend alert, you can only get a few of those, and you're feeling considerably high. But you wanna have a brand new equipment and you lease it. Usually, you know you leased equipment around 15%. Or something like that is typical CB pain like 16 $25 a month only for release of $50,000 with women's. That's not that much for a business. 67 $25 to have all that machinery in your possession being able to be used. And even if you can't get that good of a term on at least depending on the least you get in the company go with. Even if the 30% lease, you're still only looking at $1250 per month. Who's a better person? That means per year 30% per year or 15% that you're paying per year. So for the company, at least it to you. They've got $50,000 worth of equipment. They're getting a passive income off that 50% or if they want to go higher and they offer you a lease term of a passive income of 30%. That's a lot of money for them, for just loaning out their equipment. They still only equipment. But for us, we're making a business off of that equipment. Even if you pay Trover and $50 a month to have $2000 worth of really high holding gym equipment, that's not that great of an expense. Again, if you still want to lifetime memberships, you're covering two or three months worth of your equipment rental. So, Lisa, we can see it could be a really good option. Get a lot more equipment for the gym. But just remember that you always have that payment until you finally do. But I think equipment. Okay, so that's just a really quick example of pursing equipment, and it shows you the difference between buying used and Lea Si. But the numbers are pretty compelling. We see that bull options offer really great opportunity Teoh make money without taking a lot of risk and to launch this business without a huge budget. Most businesses these days in the United States or any other developed country, is you're looking at hundreds of thousands of dollars where this is one of the businesses that you can launch with a lot less money. And now make sure you guys a whole bunch of different ideas in terms of how you can get your launch to a great start and maximize your profits in the short term. 7. Lesson 6 Turbocharge Your Launch: so we don't just want to launch a business and not fail. We wanna walk launch of business and we want to succeed. We want to make a lot of money. You wanna really? But that's what motivates us to launch a business in the first place. If the idea of a lot of profits it's exciting. So you want to combine all of the above strategies that I've been talking about together for a high probability of success and make sure that you do them all really well. So you combine the aggressive promotion of your higher price products and using salespeople to sell the crap out of those lifetime and your long memberships you want to launch with as low cost as possible. So if you're on a shoestring budget, leased equipment, promote those lifetime memberships and get cash flowing into the business. If you don't have any money to start bar of the start of capital and you don't need that much, you can borrow 10 or 20 grand. Get the least going on both the rental space of machinery and just get rolling, and you can start even selling memberships before you even open your doors. you can tell people we're doing a special promotion before we launch you pay cash upfront, we will give you a lifetime membership for $3000. Now, if you break that down over 20 years, $3000 is only like 10 or $15 a month. It's very, very cheap during a lot of sales. By doing that and so you can hire sales reps on a commission they don't to pay them unless they make a stale now as attractive because they get a $500 selling. You give them a nice commission of 5 10 15%. That's gonna be very nice incentive for them to work hard to make sales for you. And so it's almost guarantees you're gonna have money coming into the business right away. Before you even launch case, you're gonna have a lot of success right away. That you can dio is. Instead of hiring a lot of people, you could basically manage it yourself and hire maybe just one other person. So I have very, very low overhead until you get established and you can hire more people so you save money by not having to pay somebody and running it yourself. It also cheat to do the business so you can train your replacement later on. It allows you to control the cash flow and reduce the risk of theft while you're managing it by yourself. And it's good for you to get used to using Stop where and you know, set up for 100% automation after launch. You know, while you're running things, employs gets the only thing payments 100% digital. You want to understand how the software works really well, so anybody of quits in the future you can retrain the new hiring, even think that, but by managing yourself, seem a lot of money and you learn the systems. And later on, if you have money coming in and you want to step away from the business, you can have untold the automated. You could even be outside the country and have the money flowing into your bank account from all the sign ups that you are getting basically exchange for taking the risk and having the initial energy output of setting everything up. For that 1st 1 or two months, you're going to be rewarded, hopefully with a lifetime profit stream that you know, even if it doesn't end up being millions of dollars into getting rich off it. It could be one passive income source that will almost certainly be better than real estate in terms of doing rental properties or commercial real estate or giving dividends from the stock. You launch this business for 20 $30,000 end up making thousands of dollars profit per month and make it passive and automate herbal. That is pretty much the Holy Grail of visits. That's what everybody wants. And if you could launch this, to have it be automated will be one business stream, one income stream. Excuse me, You can't just continue to do it. You could launch multiple different locations in different towns in your region. Or if you say you know what I like having one, Jim. You can live off those profits and you could create some other income stream as well. If you're into making passive income. This is one of the very few businesses that are going to provide a high level passive income of such a high probability of success outside of things like realistic OK, a really good thing to do also is to visit your competition. You know? No, your competitors, prices know their services. So you can set up something that differentiates you from them. Baby, you can undercut them on your price. You know, Taylor, your product feel some bitch that they haven't filled. Do something that differentiates do from the competition. You know your competition. It's not that hard to do, especially in a gym business, because usually they will be promoting certain things. Here you go in there and they talk to you about what you get for how much money everything runs. All you gotta do is make your is different from them, making lower price and them off for something they don't have offer machines, they don't have whatever it is, it differentiates you from them. It will turbocharge your early success and get you a lot of customers in the door right away that either are going to switch from your competition or that they want to tap into that offering for whatever reason, the first place they will be attracted to yours. The easiest to do, of course, is to offer better pricing, which in the short term, in order to get word of mouth going around about your gym and get customers coming in. It's a really good thing to do, and you're giving up a little bit of money at the beginning. But later on, when you have a lot of customers, you can always increase your pricing and increase what you're offering when the best ways to succeed in business is to be very aggressive and gaining market share when you first open your doors. And with that being said, we're now going to turn, Teoh have to get a rapid market share growth, right? 8. Lesson 7 How to Rapidly Gain Marketshare: would be a little repetitive when it comes to this idea, because it's so important for you succeed in Bisbee. First launch business. You need to be very aggressive. You'd be aggressive with your pricing to be aggressive with your promotions. You need to be aggressively putting yourself out there in the community to make sure everybody in your market knows about your business does. But you're offering knows what's different. The competition knows why it's better than the competition. Once you have a stable plan, tell you can reduce the promotions and increase your margins. You can reduce all the deals you're doing and increase your prices, because now you're stable. You have cash nominated. People know about your business. You don't spend a lot of marketing, and then everything that comes in for that will be higher margin business. You will make more money, but you can't make any money. If your business doesn't make it through the first few months, you do whatever you need to do to make sure your business survived. For the first few months cases, you save costs and you get sales. And if you have to have thin margins at first and not make that much money in terms of, you know, a lot of profits to live off of, You have to sometimes sacrifice and business tow. Launch a company. But once you get established, once you've got that market share, then you have a lot of power to do many different things to be flexible and to increase your prices. So you may need to be prepared to spend a lot of advertising at first. Make sure the whole market knows about your new businesses should be pretty easy if you live in a small town. But if you're in a big city and lots of gyms, you need to focus really hard on the local area. Jim's gonna located. Make sure everybody around there knows about business. You may need to go out yourself and hand out flyers. You hire people, hand out flyers and go and talk to everyone going in front of a supermarket. Tough people make sure everybody at least knows about your new gym. And maybe on your promotional stuff, you say lifetime memberships 50% off and people think wow for $1500 to guns, all thinking lifetime membership that is a good deal. Maybe you say, like 1st 20 people could have a $2000 lifetime membership. So you live in it, so you're not selling too many and giving too much away. But you could get $40,000 immediately to come into the business within one or two weeks to sell whole little lifetime memberships. Give that cash flow in the business. Maybe pay off all of your equipment, all of your expenses for summer months. You have to be aggressive. Okay, Make sure the whole market knows about those long term deals and make sure the whole market knows something that sets you apart from the competition. All this place is new. It's cool. It's 24 hour fitness. You check in at one or two o'clock this morning. Other boss doesn't allow you to do that, or this place has awesome deals. $2000 lifetime memberships. Nobody else does that that's awesome or this place is really cool. The owner is just an average Joe and really friendly nice guy, and he wants to make a good Jimmy cares a lot about health, you know. He's out in the community talking to people, something that makes people remember you and differentiates you from the competition. You don't have to be this aggressive, energetic, forever. But you just need to do it at the beginning for the first few months, maybe, maybe only the 1st 1 month, depending on how well things go after you launch and then you're off to the races. But when you launch a business, you have to be aggressive. You have to go for it. So you might have to have an advertising blitz. You know, put an ad, maybe in the newspaper, the radio be all over Facebook. Beyond Twitter, be on instagram beyond snap jet. You can hire a teenager to do a lot of this for you. Say OK, here's our advertised. You could make one simple flyer. One simple image that shows the lifetime memberships, for example, has your phone number has your address on there? Has a local, so they really simple is Make sure that it's everywhere. Everybody sees it, gets spread all around you put on YouTube and then maybe join a local organization and going network, join the Rotary Club, join a Qantas club or join a Business Network International, which is a networking group. You know, go around and talk about your business. At least for the first couple of months. You need to be very, very aggressive, and that will lead to rapid success of your business. Later on, it's gonna be automated. You're gonna have one flowing into your bank account. You're not gonna be having a check in every day. You might even be able to go months without having to go in your business. If you have a good employees and everything is going well, it's one of the most automated will businesses there is. It's really amazing. That's why we're able to attract a buyer for our business so early they saw the potential over. They saw that the cash flow and the positive profits, you know that we're making in the growth that we have just a couple of months and they said , We want to buy this business from you, operates a fair price. And we took it because, you know, we could have kept building it been a lot of money for a long time. Enjoy it. But someone offers you cash in hand for something, you know, sometimes it's a good idea. Take that too. That's what we decided to do that I'm gonna give you our business, plan it all of our materials that we use for start up so you could do the same thing with your business. And I'm gonna go even Mawr in detail into the power of automation in the next lesson, because it's just such amazing thing. 9. Lesson 8 The Power of Automation: so this idea of having automated business is not rocket science. It's pretty much what everybody wants is kind of the Holy Grail of visits. If you could make a living off something that is passive and allows you to do whatever you want, live wherever you want and save your time, then that's pretty much what everybody wants. But most people don't know how to do it. And most people don't realize that due to modern technology and due to the nature of the industry and the way that this industry is going, you could automate this business very, very easily. I mean, building is something that I have seen. People just wrecked their brains about the aspect of having Teoh collect on your conference , Evil said. People builds you to send out, mainly get away to capture, coming every day your way, you're going to the bank. All of that is just gone. This business automatic building takes the headache out of collecting on accounts receivable. It's such a big deal. I can't overemphasize how much stress and time it's one activity, uh, causes business owners K automated check. It reduces the staffing needed to enforce. Never should save a lot of money. I'm not having to have a lot of staff. People can come in the middle of the night, been coming and exercise any time they want. Teoh, all these key card or you have a fingerprint check in or a nice canon. Whichever way you decide toe go. You just have them check and you don't need to be there. No one needs to be there at night time. You have to have someone that they're for enough hours during the day to sign up new members or to clean the machines. You have people cleaning the machine. It's actually best that you can have cleaning materials there and just have some signs that please been machines. Most people are really good these days, but use the machines and then wiping them off. But you still need to clean them and making sure that they're very sterile. Every once in a while, at least once per day, you have your staff clean the machines, that other thing, a lot of time one person could do it. If you're Jim is small and they can do it in like one hour basically and you could even automate people signing up and paying and everything. Do you then go into your website and they can sign up. The lifting is they need to be given a car, but we need to be at the site to put their fingerprint on the machine. So you need to have a staff member there for sign ups, but it's not very time consuming something in sign up. Within just a couple of minutes, they sign a waiver. They put their finger print scanner or they have a card given to the and that's it. They're off to the races. It doesn't take much time, so basically you have one employee that is full time that's there during the week. That's it. Maybe you need to have to, and you want to share shifts if it's too much time for one person. But really, all you need is one or two employees, that's it. That's not very much to run a small business that saves you a lot of time and allows you to manage the business from a distance. You could be anywhere. You could just manage your employees by email or give him a call on the phone. How are things going? You know, busy issues with software. You know, most of stuff can be solved out. I'm having to be that there aren't very many businesses that you can say that about managing a business is extremely time consuming. If you look at a business like a restaurant, a restaurant business is really popular because everyone likes food. Most people in a little bit about cooking. It's not a very complicated idea, but restaurant businesses are very, very heavy on management. You have to be that we have to manage your staff to make sure that the what the dishes air being washed, that food is clean, that everything is being clean. That the servers air good is very, very intensely has to be managed and very time consuming and increases your costs. But Jim is a software reduces the time necessary to manage over 90%. You were cutting out what most businesses with have is their biggest cost is employing people and managing them in this business. You don't have to do it. There aren't any other business models that I can think of that when you could do this and have such a high level success. There are other businesses that are automated billing, for example, having an arcade when you just a whole bunch of video game machines. And then people come in and they put the cores into it. But it's just not a very weak market. You don't have a lot of people coming and playing our case anymore because you've got PlayStations and all these other things. So there's other businesses that are automated ble, but they're not in an industry that is growing, and that is popular. Health care is a super important thing right now, and the industry is going going for a long time. So it may be the only business that is this automate herbal and that is growing this rapidly at the same time. So this is just huge, and it can't be overemphasized enough automating the accounting of the business and also eliminates the need for bookkeeper that saves you money that saves. You worry a lot of times having a bookkeeper. When people of basil money is always always a bookkeeper because of the ones who know the numbers, it could hide what is going on. You don't need a bookkeeper in this business, if you have the software, the same software. When you buy software, that man is a gym. It's the same software that allows you to check in, check people in and now manage the payments and also manage the book. If you have all that stuff, run through the same software. And so you might be a couple 100 bucks a month for that software package. But it's totally worth it. Saves you so much in costs K. And so you don't have a lot of accounting knowledge, whereas most business people it's all this you know about account, you know, you know, how are you gonna report stuff to the I. R. S? What do you do for taxes? Are people stealing money for me? You don't know, but payments are automated going directly out of people's bank accounts, and everything is being tracked with your software. It eliminates this whole issue completely. So again, it's one of the only business where you can so easily do this. It's basically stress free way to be a successful business owner without having any or that having much experience in the business world at all. So automation is a huge, huge factor and making this business small, so awesome. And then the next thing when you look at its happen, you with lawsuits was, unfortunately, this business there is a liability. People go and they overdo it and they hurt themselves in the gym and they want to sue you, but we can avoid that as well. 10. Lesson 9 How to Avoid Lawsuits: Unfortunately, we live in a very litigious society. It's very easy to sue. Companies is right, used to suit people. And even if you successfully win the lawsuit, ego defend yourself means you probably the higher lawyer. It's expensive, but you know, in surveys show the fear of lawsuits is one of the number one reason people do not go into business for themselves. They're worried about liability, which is really unfortunate. That probably hampers the economy. But how many billions of dollars a year? I don't know. And it's just the nature of our legal system making it too easy to sue. The legal industry makes billions of dollars a year lawsuit, so there's nothing to change any time soon. They've got a very, very strong lobbying force in Washington that does not want tort reform, which is what it's called Tort law is the law related Teoh lawsuits and being able to sue people and the gym businesses the prime target for lawsuits due to the nature of the service people can get injured and therefore lawyers like the fact that they can attack you , and even if they I don't want a trial in order to a voice a really expensive legal battle. Most business owners who was pay some sort of a settlement. So if you're being sued for a $1,000,000 because the customer heard their back but exercising to vigorously on your machines, which all will have warnings on them. You know, if you have this issue where that health issue a sticker that comes in the machines, I will have to say, You don't work out of this. This is this But the main thing you want to do is you need to have on ironclad waiver that allows the members of that You forced me members to sign so that if any attorney comes to Colin saying, Hey, my client says they got hurt your gym. We're suing you for negligence. Say, hey, read the waiver that they signed. We are totally released from any and all liability. There's no point. Bring this to court because you will lose, and that's that. And so this is a way for you to avoid lawsuits. You don't have to worry about it pretty much at all to make sure the way where you used is really, really strong in its legal language to make sure that there's no way that they can get around what it says in there and studio. So I recommend for this. Such an important thing is to have your own attorney. You know, pay a few $100 if you have to. You to read through a waiver or to write a waiver from scratch, saying I don't want to ever have to worry about being sued by anybody What happens in my gym even if you are negligent, I don't know. Sometimes you get water spilled on the floor and slippery. Or sometimes you know you have a machine to get broken. You didn't know about it yet. And someone you know the waste fall and heard their foot. I don't know. There could be something that could be naming that. You can have it written into the waiver that says, Even if you are negligent, you cannot be sued. They waive all of their rights, so just make sure it has some really strong language in it like that, and you can't be sued. What a lot of people dio as they get a generic waiver happened. Besides that, we release you from all liability, but then lawyers who are very, very intelligent. They figure out some way to say this waiver is not valid because doesn't say this or doesn't say that or in this situation, due to the nature of my client's injury, the business, he's negligent or grossly negligent, and therefore they have to pay lawyers really smart. They're really crap. So when you have a contractor a waiver, you did make sure that it's really, really strong. Okay? And so because of that's worth the money to use a lawyer to make a super strong waiver that cannot be rooted by potential plaintiffs. It's an expense that is totally worth it in the long run. Having a lawyer job a special way, Rick and saving thousands or tens of $1000 from a lawsuit, even millions potentially, You never know what could happen. So can use online generic waiver in order to save a little money. But at the very least, you have a lawyer check it and probably add some language to it to make it stronger than it already is. Case That's just a little bit of advice for avoiding lawsuits and protecting yourself, cause unfortunately, in society in which we live today. It's concerned something. You have to protect yourself from me in certain industries, having some state. They have such easy tort laws. And so easy to suit doctors, for example, that the malpractice insurance for doctors is so high that doctors literally leaving the state of saying it's too expensive for me to pay for malpractice insurance here. I'm gonna go back this medicine in a different state. That's how bad it's gotten in some places, so I don't want to scare yet. That's definitely something you want to protect yourself from. But if you do what I say in this lecture, then you won't have to worry about the next lesson. We're gonna learn how you can avoid losing any money when you first launch. 11. Lesson 10 How to Avoid Losing Money at Launch: so is well known among US business researchers and practitioners that there are certain reasons that most businesses fail. Ah, number one reason that most businesses fail is that because they're undercapitalized, that means they didn't have enough start up money when they launched. They run out of money, and that's it for the business is done. We need to make sure you have enough money to run for long enough to get customers in the bill. The business up that usually takes like a year or longer for a typical business. But once again, the reason that Jim Businesses so strong is because it's easy to get a lot of initial sales . And once you have outplayed the initial of capital, you don't have a lot of additional expenses. Whereas most businesses and I use the restaurant example again, you have a lot of cash going out because every time if the reorder supplies to reorder ingredient you to read, order things, a lot of cash going out to pay for things before you have customers that come in and pay for those products and allow you to have the cash to pay those vendors so very cash negative whereas in this business we don't have that problem is I've already explained. So most businesses are undercapitalized. We have four cash. Look, a lot of times they didn't do it. A market research, for example. They say, Hey, I would love to have a pizza restaurants with my dream to have a pizza restaurant And no matter how many pizza restaurants there are in their town or their city or the neighborhood , they just started business because I dream and then they feel this is too much competition or because you didn't differentiate your product from the competition. Why? So we're gonna come and buy your pizza. If there is an established peace of place down the block and they have better prices, they have better food or, you know it's the exact same. There's no reason for anyone to come to you. You're some unknown wanted. Okay, so you have to do market research to make sure that you're offering something that has a unique selling proposition. We call that a USP unique selling point. You gotta have something that differentiates you from the competition. In this case, it's really easy. You could undercut them a price you can offer some different type of training service. You know, for some special type of spin classes, you can offer some special type of yoga. Whatever is something that you can do that the other Jim down the street is not doing. At the very least, you want to do some research to see. Are there enough potential customers in your neighborhood? Or maybe just fine an area? It doesn't have a gym and put your gym right there, and you could serve everyone within a few blocks so they don't have to drive to the gym. Everybody in the world is a potential customer. If you open a gym, everybody needs to exercise every single person. That doesn't mean that everybody is going to pay for a gym membership, but it means that everybody is a potential customer and maybe you can reach them. The market is very big. You don't need to have a huge, huge market based in order to have a probable Jim business. You start really small and you just get a few dozen people to pay for your service. You're off to the races, and that's not that many people to get coming and paying for your gym. You have a restaurant. You need to get people to come back over and over and over again. If you have a gym business, you just set up. You sell membership one time, and that money flows for a long time unless they cancel their membership. But even though some people will cancel the membership some time, I'm used to make sure that the rate at which you're adding memberships out paces the rate at which people are leaving. So understand the competition is key. A lot of people they don't do the due diligence before they launch their business, and also they don't understand the industry very well. Well, this industry really needs to understand it's growing is going to be going for a long time due to demographics. People getting older, the largest portion of our population, at least in the United States. But even throw a lot of the world is getting older and they're gonna need paying for healthcare. So the health industry and generals doing really well we'll continue to do really well, and the gym business will continue to do really well, so you don't need to have a sophisticated understanding of the industry to know that this business bolt probably succeed. So this business model that avoids a lot of those problems because demand is extremely high start up costs can be very low. Cash flow is excellent. It's easy to research the competition. I got news going look and see what they have on offer and the automation makes. The probability of success is very high. So again, I challenge you to think of any other business where you have all of these things all the same time. High demand will start up costs such good cash flow model and automation. I mean, it's very, very rare. And so that makes the probability of success in this business very, very high, even if you're no nothing business person. And that's why I'm sharing everything with you in this course. I think anybody can start this business and do really well. Okay, And by reducing the time needed to manage the business, automation reduces the stress on management that causes most businesses fail. People get burned out on the launching businesses that were really, really hard for a few months, and they get tired. They say. You know what It's not worth Indian War. Still not making any money. I'm just gonna go ahead and full. I'm gonna give up on this effort. Well, when you could make a business that you can automate with the first few months, it's much easier to stick with it until it succeeds. So automation allows owners to focus on issues they're having, or simply focus on sales and marketing. Getting money to come into the business that's actually the most important thing that a business owner can do is a focus on growing the business, getting sales, getting marketing out there. It's the most important thing. You don't want to be bogged down all of the time on accounting or hiring training people. And so, luckily, this business, you really don't have to worry about other things very much. And of course, automation also lowers the costs of running the business significantly due to not having to hire much staff used one person on site for part of the day, that could be enough to run this business. It's very, very, very low cost compared to the vast majority of businesses out there, just another huge bones. So that said, how much capital. Do you need to launch a successful Jim business? We're gonna look at the numbers in the next lecture. 12. Lesson 11 How Much Capital You Need to Start: So this is obviously when you're vary a lot, depending on the scale of the business you want to launch, you can obviously spend a $1,000,000 more on a Big Jim. But if you just want to start something small and don't have very much capital, which you know what most people go into business initially they don't have a lot of money. And so we're gonna look at how can we start a successful business on a shoe stream budget? Okay, most businesses the United States require hundreds of thousands of dollars to start, but automation and used equipment as we've already learned it, Jim business can be launched with very little money. And with a small loan, you can get started in this business literally no money if you have someone that you could borrow money from, or even bossom capital from the bank. If you have some security like, for example, a title long on your car, if you have a valuable car or something like that, get a little bit of cash, have started, get some of the main pieces going, like getting the rental space and getting some leased equipment and start selling lifetime memberships. You can really start. Oh, my. I just borrow a little bit and you're off to the races. You just have to have the idea and the will to do it. I think a small gym can be launched with his. Little has about $20,000 they saw in an early example. If you get used equipment and you buy it very wisely, you can get enough stuff to launch with about $10,000 a couple channels, couple bikes, free weights and some office supplies. A few things like that and you know your business and your gun. You can launch, you know, maybe $5000 you need for the commercial space, which is enough to run for a few months, $5000 or staff and utilities some of marketing expenses as enough to get cash full rolling in what you start selling memberships. So if you think about 10,000 Lars Berg put man $5000 for this base outdoors for everything else, you can launch the gym and then start getting money to flow in and you're and you're up and running. You're off to the races. You probably want to have more than that, but you can do it for as little as 20 grand with used equipment or leased equipment. Remember that he will have cash will immediately after you open your doors. In this business, the cash goes out once and then it comes in forever. You have very few fixed costs because the major cost was the equipment. So again, cash flow great. Initial costs are recouped very quickly. Early profits should be reinvested back into the business to purchase more equipment, to upgrade the space or for marketing. You're going to want to expand if you're starting on a shoestring budget. But it's not great. Difficult to do so. As we've seen, you can start with part time staff to receive new members. Clean equipment exceptional later on, you could hire full time staff later on. Even higher. More people, more salespeople, everything. But first, you can start with a skeleton crew and at least get everything blush. You're gonna be really busy at first, but eventually you're not going to be very busy at all once you have succeeded, so you should be very involved in first and then phase yourself out as the money comes in. OK, so with that, we're gonna look at some marketing basics. You got to do some really good marketing at the very beginning in order to get everything up and running. 13. Lesson 12 Marketing Plan Basics: so marketing is not really rocket science. The whole point is you need to be reaching people in your target market and letting them know about your service, depending on whether good or services that your marketing this maybe or difficult or easier Jim, it's pretty easy because you're trying to reach people in your area where the gym is located. So you're talking about a actual physical locations so you can reach people that live there by easily, even go door to door and hand out flyers. I mean, that may be a lot of work, and it may not be very appealing to you, but if you live in a neighborhood, you have a small gym. You can probably reach several 100 people very easily by doing that and make sure that, uh, everyone will be talking about it and know about this new gym that is just opening up. So in order to do that, so in order to have a good marketing plan, you have knowledge. The competition, all the local market, have some sales targets. In terms of weight, you need to achieve the break even after you launch, you look OK. How many purchased by his cell in order to break even. It's not great hard to do those calculations. You look at your monthly costs and then you look at your membership fees and then he just run the numbers. Okay, I didn't 50 minutes or I need to sell 10 lifetime memberships where I need to get 100 stable members, whatever the numbers are, then you can aggressively go after those targets. And don't you hit them that you know that you're gonna be doing fine. So you have a sale strategy and then you need to have a budget. Those are the basic characteristics that you need for a good marking plant doesn't need to be anymore complicated in that you don't need a sophisticated MBA Level 20 page marketing plan to launch small business. A lot of people are intimidated, and they don't have a business Agrio experience in business, even though they have a dream and a passion for something like, If you get it, a passion for being a trainer or exercise that you can launch a gym bins, you don't need to have APIs degree or in management degree to do it. Despite what the universities would have you believe a lot of stuff? He learns, as it is not necessary to know, especially with business model as simple as this one. There's a famous businesswoman in Rows, Lumpkin. She was the owner of the largest furniture store and in the US, and Warren Buffet famously bought her furniture store was called Nebraska Furniture Mart and still exist today. And they have more turnover than any store in the country that you millions and millions of dollars worth of business every year. She started the company from scratch, selling furniture out of her basement. She was a Russian immigrant, and someone asked her what her business plan was, she said of one line. She said. Sell cheap, Tell the shoe that's a pretty much as simple as it gets. She wanted to undercut the competition by having lower prices and gain people's trust. But I never lying about anything. And that very, very simple motto made her the most successful furniture sales person in the entire country , which means probably in the entire world, were the most successful furniture company in the US than you're probably the most successful for intercompany the entire world. She started from her basement. Okay, so, no, it does not take a high level of visits, sophistication to run a successful small business, especially one as easy to run as you learned enough from the course as a gym, business, business and marketing. They're not rocket science. What's important is that you execute that. You take your simple business plan your symbol marking time. You go out there and you execute. You promote those lifetime membership. You get into the community and you hand out flyers. Get talk to people, you know, you set everything up and you just go for it. Sometimes in life, you know, especially business, you just have to go for it. And the people that think action of the people that will succeed and people that only talk about it are the people that will never get off their butts and be successful and other ones who sat on the sidelines. And they criticize people taking risks. They criticize people taking actions, they fear failure. And so they tell everybody else, know you're gonna fail. You can't do it because I don't believe I could do it. Therefore, you can't do it. Sometimes the people that will criticize us and holds back. Most are people close to us like our parents or our loved ones, because they're afraid we're gonna fail that don't want to see us get hurt or because they're afraid that they don't know how to launch a business. And we need to block those people out. And we need to just sometimes take a step, you know, with some faith, and go for it. We may know people in our family that have business degrees or have a lot of experience in this day and you don't know what you're doing. You shouldn't do it and again, me to block those people out. Sometimes you gotta dream, have your own business or to be financially free or be your own boss. Sometimes you just have to take the risk. It doesn't take a genius. It rose blood kin can use the model of sell cheap and tell the truth to build the most accessible for interest or in the country. It surely little you and the Lumi can launch a successful small gym that is profitable. Today's technology with such a favorable condition in that industry growing the way that is growing If you can't succeed of this type of business model, then you know there's gotta be There's an issue somewhere. It's mostly probably just laziness, because if you just go out there and give it a shock, you followed me. Surprised at how well you can do OK, but the key. His differentiation. Have something that makes your business stand out from the rest. How is your offering different from them? How often your promotional efforts communicate this difference easily and effectively. So people look at a flyer or look at when you're posters. You go. Yeah, that's different, right? I continue to bring up the lifetime memberships because feeling it's good value, it gives a lot of savings to customers really used to communicate a lifetime membership for X amount of dollars. It only takes one sentence to convey everything that you need to convey, and it will get people to at least walk in the door. Maybe you don't sell them a lifetime. Membership definitely will get their attention. Another thing that Rosabal often family said, she said, if you're the most price, customers will find you at the bottom of a river. And again, that's not some complicated thing to understand. But, you know, people want to save money, especially in this day and age work. People are hurting financially. A lot of people have never really recovered from the big recession that we had many years ago, after the crash of 8 4009 and so, if you can compete on price and you could undercut your competition a price, you are going to get some customers for sure. 14. Lesson 13 Launching with Little or No Money: so launching with little or no money. Most of us don't have much money when we try to get started in business now holds a lot of us back. So we think it takes money to make money. We hear things like that. We think, you know we don't want to go on it, Dad. We don't want take any big risks. Sometimes you got to take a risk. If you have no money, you gotta dream at a passion. This is a type of a business that you can see the small look, You can take a loan as little as $20,000. As I've been saying throughout this course, cash flow will start to come in. All you do is have some cash to get the equipment to get a space minute out an outfit and get the ball roll, if you can, all from your friends and family. If you can't write a business plan, I'm gonna give you our business. By now, we actually used to launch our business and try to borrow money from your local bank. If you can't do that, you can use one of the very many online peer to peer lenders like Lendingclub, Lenny Club's biggest one. Now there's dozens and dozens of these things. We're basically they will give you unsecured loans as long as you have decent credit. So you go on there and fill out a form, and you have individuals like yourself or myself who want to invest our money. Let's say we don't want to invest in the stock market for whatever reasons. And so we want to give a loan to somebody so you can put, uh, interest rate in there that you want to get as an investor and maybe a credit score minimum pressed for the people who have and you're going to loan up to 15 $20,000 the limit on lending Club's $35,000. So that's more than enough for us to lunch are small gym business, and you can go on there and go on the lendingclub or one of the other waas. You fall before, and then they will offer you a limit, and they will offer you an interest rate. And so that's another option. If you can't get any capital together any other way, you can use lendingclub or you can use a crowdfunding place. A lot of crowdfunding Web sites like Go fund Me and It was the Indiegogo You've got Kickstarter. You go in there and say, Hey, I've got a dream to launch a business. I wanna have a gym. I'll donate something away to charity If you're going to use crowdsourcing, usually a charitable element, We want to offer something to people that are funding it and say, I'll give you guys T shirts or I'll give you guys free memberships, for example, that they live in your neighborhood. Whatever it is, you don't have any other option. No other way to raise the money. You can use a pure appear lender, or you can use a crowd funding source from the Internet and those airways where you can scratch together the initial money get going even if you have zero dollars in your bank account. So you have an idea and you have the energy you could make a small business happened. I've done it many, many times. I've started many businesses with no money or very little, but usually I don't with a partner who has brought someone in to the table. But other times I have borrowed money, and I started with small low. I specialize in launching small businesses, and after doing it many times successfully, I can tell you anybody with the desire to do it can do it. And the reason that teaching this class on Jim business is because it's the best small business, the easiest small business in my opinion. Tow launch. If you have little business experience, you don't have very much capital. So have a look at the financial analysis for larger businesses. A downloadable resource In the lecture I have included the financial analysis of Arjun Business. Now the numbers are a little bit bigger than what I've been talking about in this course because we decided to launch a little bit larger scale we were able to put together. The resource is Do that. And so it was a large Jim Space. We're going for a much larger no amount of equipment and what I've been talking about in this course because I'm hearing this force towards those of you who maybe don't have that many resource is and you want to start something small. I mean, you could make the numbers of being, as you have the ability to do in the financial analysis, and I'm going to provide for you guys that you guys download. Those are the real numbers for our real business, and it worked out very, very well. Noticed how the startup costs get immediately to be covered by the initial sales You the nature of the business models have been talking about, and this financial analysis is extremely conservative. It probably overestimates the cost. I think the costs were actually a lot lower then what that initial analysis that I made before I launched the business show. We ended up spending a lot less than that. Whatever you're doing, costing analysis for business, you always want to be conservative just to make sure that you know you're not forgetting anything and just to be safe, you always want to be conservative. When you do that, never let the fact that you don't have money stop you from launching. A great is used. Other people's money. That's what you're doing. You're borrowing money from the bank of your family or go fund me site using other people's money to launch a business. Maybe you have to cut them in, giving them ownership shares. Maybe if you do some profit sharing, maybe to give them a dividend, whatever it is, there's still a way to make it happen. Using to find someone with money out there. You just got to get your hands on it and offer a compelling deal for people. There's so much money out there in the world's waiting to be invested. People have cash there sometimes scared of flying in the stock market at evaluations like, right now they're very high. You know, people are looking for investments. All I gotta do is put it out there and say, Hey, I'm watching business. Anybody want to invest in my business? You have a good business plan which I have provided for you, which is just adapt for your situation. You when you pay for a business. But usually it's $1000 so right through, I have given you guys are business plan to use so you probably can use it in its current form. In your situation would have been just adapt it, change the verb ege, change the names, maybe change some figures. But you can see that this is a business plan that we actually use. Okay, so you said we gotta find the money that's out there. You can offer generous terms on alone, you know, offered 10% or more interest to people. And don't let that stop. You know, having money is an idea, reason not start of visits. People say it takes money to make money, and it's definitely true that you can make a lot more money if you already have a capital in many situations. But if you need to get started, the business not having money it's not an excuse. A lot of billionaires started. Nothing usually find a way. If you're creative to get your hands on some capital or just to save up the money yourself of working in a job and then use that money to launch your business, it does take courage. It does mean if it takes a risk. But you know, life is risky, and if you don't take action, you just risking living a life, mediocrity and never achieving goals. So really, sometimes is riskier to do nothing than to actually take these types of risks. Okay, and then the next lesson, we'll look at the idea of franchises 15. Lesson 14 Franchising: so there's a lot of really good franchises out there now, especially in the gym business. And Franchising is the easiest way to launch. If you already have, resource is at your disposal. If you already have a lot of cash and you want a lunch, a business with a high probability of success and one that is automated will like this one . And Franchising can allow you to immediately scale and automate at a larger, larger scale. I've been talking about launching a really small gym business to get started, but if you were listening to this course and you're like, Well, I do have some resource I don't need to launch a tiny little $20,000 Jim. Then you can put like 100 $200,000 into a gym bins and you could franchise. And the great thing about that is they give you their systems that give you their software . They give you the logo, their marketing and their their brand for the machines. Everything is given to you. You really don't know anything at all that he was gonna pay for the system, and then you gotta put in place, maybe do a little bit of, you know, the hiring and recruiting stuff. Otherwise, they give you everything, and it's all very, very high quality, so it allows you to launch for it quickly and do everything right away. So Franchising this generally expensive I'm usually you'll need at least $203,000 depending on the franchise, although sometimes you can launch with, like, 100,000. It just depends on your location, your scale, the franchise that I'm going to recommend to you, which I think is the best. Based on my research and experience, you can launch with his little 100,000 that would be on the very, very low and the franchise costs. But this amount can also be raised from investors to. So if you wanted to go big and you think you can raise a couple $100,000 from friends and family or from the bank for a gym, which is a really, really well known a steady business that that might be one way you want to go, you're the little audacious and brave. You might want to go big, and if you want to go, being a franchise could be a way to go. It's really just up to you. We learn a lot more money on a larger scale business of you launch of two or $300,000 franchise. You re looking at making 10 $20,000 a month, probably instead of maybe making 4 $5000 a month and profits. So it just a matter of what your goals are and what you think you can accomplish. Do you have access to a large amount of capital to your friends and family or associates? You should probably consider Franchising if you do. If you have little or no resource is, you should probably start the business yourself using the strategies from this course. So there's a lot of things to think about. Everyone's situation is different, and I'll leave it up to you guys to decide which way you want to go. But in the next lesson, I'm going. Teoh recommend what I think is the best franchise has actually been rated as in the world's number one franchise at one point Time one publication, but it's a really good model for maximum profits and maximum automation 16. Lesson 15 The Best Gym Franchise: so anytime. Fitness is probably, in my opinion, definitely the best Jim business franchise, and you could just go to their website and have a look. It shows you some numbers, some average numbers you expect to earn. If you have an average Jim, it shows you that start up costs should be the Franchising fee, which I believe the fee itself is around $40,000. And then you spend all the rest of the gym set up and get the equipment everything but allows for total automation. It's got excellent brand awareness, so you franchise or getting a brand paying for the brand, and so people will automatically know about it. It's all over the world and in the U. S. There's hundreds of any time finished jobs. So if you open up one of these, you're guaranteed to hit the ground running. To have lots of people come and join your gym, and it's pretty awesome is really great value for what you get. They provide great marketing materials and strategies. You don't think about that stuff with worry about. That's the you know, the newest tech for checking in. Imagine membership in the league, upgrading their Tech because you know their reputation is at stake when they have a franchise. He opened new locations, so they help you. They give you the newest stuff, even newest marketing stuff for local changes to give you all those materials. You pay for that, but it makes it so that you don't need to worry about thinking about this stuff. And it's all very, very high quality there, a rapidly growing and very aggressive and high skill company. They'll support you every step of the way, and they're growing throughout the world and see this gym popping up internationally. I live abroad. I live in Vietnam, and I know from a friend of mine that they are playing on expanding here, expanding throughout Asia. And what that tells you that may not matter to you of your in America. Some of the country, but it tells you, is that the very aggressive, they're very successful, and there are a good place to apartment with if you want to own a franchise and you have somebody so I would recommend going with them. That's the gym that I was a member of when I lived in the States for a few years and not all that long ago. And I thought that it was awesome. No, it's any time finishing coming any day, any time at night. You got a key card to check in. The fees were really reasonable since I was working as a teacher at the time, I got a discount. Think I was only paying $35 a month because of that special discount that he got. But they get discounts. Teoh, military teacher that things like that, Um, there's lots of ways you can pay, but all automata ble the he's the building is automated, and so I think that's a really good way to go. If I was in the launch of business in the U. S and I had the capital, I would definitely launch anytime. Fitness Center for sure. Hey, it was rated as a number one top global franchise. Look at this link. That's the actual stats. It was definitely got some cachet, and it's got high quality. You can see there the average profit of just a typical one of the locations, $135,000 per year. That's profit. So that's pretty dang good and the odds of you getting that are really hot to think about franchises, that they give you everything packaged up. So the odds of you achieving a number like this or high it's not very risk evenly putting a lot of your money out there to set it up. It's a pretty low risk business. And they say on their website that they could be launched with little $100,000 which includes everything includes the Franchising, feed, all the equipment, all this set up marketing everything that would be weather, smaller locations. And it goes all the way up to, like, 600,000. So you could spend up to six on their French as you want to go big, depending on the city, you live in a different things like that. But you want a franchise there, Probably your best bet and next lesson Renewal review And look at what we've learned in the course 17. Lesson 16 Conclusion: so it might sound like I'm beating a dead horse, but I really want to drive the point home here. The gym business is one of the best, if not the best business models that currently exists in today's environment because of the great cash flow for the ease of start up because of the autumn inability because of the high demand and the great future prospects. I mean, I challenge you to get to get any other small business that has all of these accidents. I can't think of another one, so it's a great place to go, and it is, especially. We're just getting started in business. You wanna have a get a win under your belt and become an entrepreneur. This could be the way to go. Jim Business can be launched any market, despite the competition. Because the market is so huge that you can just get a few dozen members, you can have a profitable business, especially its automated, even making a couple 1000 bucks a month, which may not be your dream if its automated and you have a couple $1000 coming in just without you having to manage anything or doing much man at all, and you could focus on creating other income streams so it can work out really well. Even if you start small, you can start multiple different locations of each of them. Average $2000 a month and come on. You can make 10 of them and there's $20,000 a month, so there's a lot of ways to do it. You'll benefit from having a lifetime membership for yourself. That's pretty cool, you know, use your gym, obviously. So just another a little bonus. Having gym business is going to pay for your own membership somewhere else. That's kind of handy, you know. In some gyms, businesses produce huge problems. Some of them do make over a $1,000,000 a year. Some of those big franchises, like I mentioned, that cost $600,000 a launch. If you get hundreds and hundreds of members, you still dozens of lifetime ever should. You can turn it into extremely probable business. So the sky's the limit, depending on which way you end up going. And you know being a business owner means will never have to work for someone else ever again. That's a huge thing It's a lot of freedom being your own boss, and it even if you're only making a few $1000 a month. If you could be free from a boss and you hate your job right now, this could be a really good opportunity. Just imagine the freedom and the feeling of being your own boss is to visualize putting the business together and seeing your first customers walk through the door. You know, that's something that you have is a dream. That's something you can imagine being something you want todo I say Don't quit until your dream has become a reality. People quit the job and start businesses every day. A lot of them failed for the reasons that you've learned in this course. And so now that you know, the main reasons are you can avoid the most likely factors that lead to failure. You don't need a business degree to succeed in business. We need to do is know what to avoid. You didn't know how to have a high probability of success, and you need to know that, you know, oftentimes just take going for it. Don't be intimidated, okay? Just like Rose Bumpkin said you know, her business model is to sell cheap and tell the truth. And people will find you at the bottom of a river if you have the best price. So it could be a simple Is that for you to succeed in business? And I hope you guys go for it. And I wish you the best of luck.