3: A one man operation. So when are you ever going to take a vacation? Even if you invest the money in a badge access system that gives everyone free reign, AND you magically have the perfect clientele who never cost you more than lights, water and normal wear and tear (which you're not, you're catering to SSfags,) when do *you* get a week off? What happens if you decide to take one, and the door stops working? Refunds everyone? Signups and renewals during that time? Are you going to black out a segment of your annual balance sheet to take some time off? It's not like a family restaurant where you can post a sign on the door and say "Gone fishing, see you in two weeks." You're running a subscription based service, and you need to be there to satisfy that service.
4: Other costs. Rents are expensive. VERY expensive. No place in a location worth going to is going to be cheap. Expect around $30/sq ft for a cheap strip-mall location. Electricity? Power costs for commercial sites is actually more per kw/h. Water, same thing.
Basically, you're talking a few million to start what won't recap you shit, unless you're going to charge hundreds per user, per month, and that won't work for your target clientele.
Connor Russell
Your insurance of 86k to 194k is totally wrong. It may be right at the low end assuming we are talking a big gym with a lot of employees (workmans comp). Just for liability and umbrella we aren't talking more than $300 per month payable annually.
Tyler Lewis
Ok, running the show as an LLC. Good idea. Where are you getting your startup capital then? Self-financing? If not, then you're going to have to put up some personal collateral to back your business loans. Got enough to do that?
Lincoln Foster
>Self-financing? Yes, but it won't be in a strip mall nor cost a million dollars. Here is an example of a building. These places are all around Pittsburgh and cheap to rent even in good areas because of limited need. Real hole in the wall type joint is the idea. I don't want it to be on a main street. Limited space, limited people. The demonoid model of gyms were registrations close!
Nicholas Jenkins
>It will be formed as an LLC. They won't get much out of a broke gym and it will just be shut down.
Negligent action can pierce the corporate veil and void LLC protection. For instance, if you purchase a cheapo squat rack (one not rated for commercial use) and it collapses, then you could be held personally liable with an unlimited limit due to tort.
Also, if you'd ever hire bad staff, any negligence on their part is also likely to pierce LLC protection.
You would do well to get a CPA, because stuff like writing personal checks out of the business account, intermixing business and personal finances, etc., etc. will automatically void LLC status as well.
Most of my businesses have been LLCs, and they have more upkeep than you'd expect, and there are a lot of things that they won't protect you personally from.
