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Business plan for new climbing gym
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hollywoodcragmonkey


Apr 4, 2005, 4:40 PM
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Business plan for new climbing gym
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I am looking to put togeather a business plan for a new climbing gym, in or around Hollywood, CA. Currently working with two commercial real estate brokers looking for a possible local (they are friends, and I would NOT replace them with a different broker FYI), and I need to work out a prelim. business plan. Any climber with a background in this area who might be able to lend a hand should feel free to contact me. Thanks.


horseonwheels


Apr 4, 2005, 4:59 PM
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Re: Business plan for new climbing gym [In reply to]
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Hey,

I don't know if you've searched the threads at all, but this one comes to mind

http://www.rockclimbing.com/...iewtopic.php?t=82765

I know it's more about whether or not it's worth owning a climbing gym, but there are some decent ideas about what people want and some other somewhat useful info. Anyway......


hollywoodcragmonkey


Apr 4, 2005, 5:10 PM
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Re: Business plan for new climbing gym [In reply to]
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I have looked over some of the other posts, and there are a lot of solid ideas in all of them, some I was aware of, others were news to me. The insurence issues are points of interest certainly.


msbrenne


Apr 4, 2005, 5:18 PM
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Re: Business plan for new climbing gym [In reply to]
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Im a University student, I might take on the project. Mark


lambone


Apr 6, 2005, 9:49 AM
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Re: Business plan for new climbing gym [In reply to]
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In reply to:
The insurence issues are points of interest certainly.

call these guys:
http://www.stratusins.com/...inggyminsurance.html

If you are new at business plans, as I was...buy yourself one of those business plan software programs, it helps you get started and get n idea of which categories of information you need to research. Insurance is one thig, but I found it to be one of the easiest on the list.

Start getting information on your local and surrounding demographics. Identify the competition and go scope them out.

Are you planning to buy or lease? Gym facility criteria:
-ceiling height 28-35ft
-parking (if there isn't enough parking the city wil screw you in the end
-Tenant improvements in place is a very good thing (bathrooms, office, etc)

I just went through a two month long lease negotiation for our gym, hardest thing I have ever done. Some general points on the lease:
-shoot for a short initial term with as many extensions as possible
-try for gross rent instead of nnn
-make sure your rent escalators are tied to the CPI, for the entire lease
-check on parking first thing
-get a contingency based on city permits and approval
-try to get a graduated lease schedule 0 fo 6months, 3/4 for next 6mo.
-allways shoot low in your rent and term negotiation because they will counter anything you give them


Those are some basics, make sure your realtor is really working hard to get these things for you.

Eldorado Wall company offers a consulting service that I thought was well worth the time and expense. They offer this pre-consulting checklist to help you prepare before your meeting. These are the basics of your business plan.

At the minimum do the following preparation:
1. Familiarize yourself with the demographics of a 45-minute drive radius from your approximate location. These should be available from local Chambers of Commerce
2. Cross reference the above demographics with those from Climbing and R&I magazines
3. Research possible competing and complementary businesses.
3a. What other large climbing facilities exist? How far are they from you?
3b. What do other facilities charge for memberships, programs, instruction, day passes, gear rental?
3c. What small climbing facilities (ex: university walls, YMCAs) exist that may act as feeders to your facility?
3d. List all fitness clubs in area, what fee structure do they use?
4. Begin analyzing demographics for existing and potential climber base.
4a. Based upon demographics will you aim for membership or program based revenue.

To be more prepared:
5. Start shopping real-estate.
5a. What zoning regulations affect where you open a "fitness facility"
5b. Are existing buildings sufficient and available or will you have to build?
6. Begin business plan.
6a. What are your reasons for opening a climbing facility.
6b. What are your financial goals. (revenue per year / ROI)
6c. Outline proforma financials (these will start as crude estimates and gradually become more targeted)

When you are ready to come for consulting:
A. Call Eldorado to make reservation at least 2 weeks ahead of time.
B. Most clients prefer Fridays for consulting and stay through the weekend to enjoy the area and the climbing it boasts.
C. The Start-Up Consulting price is $2000 and may be paid ahead of time w/ personal check or paid day-of with a certified check.

hope that helps! Think of writing your Bus plan as being fun and it won't be nearly as bad as you may think. It is a lot of work, but worth it, make sure to keep updating it as you progress.
cheers


freemeliberty


Jul 24, 2013, 4:08 PM
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Re: [lambone] Business plan for new climbing gym [In reply to]
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This has a lot of great information.


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