I have a decent idea for a training type business that involves me having to open a small studio type gym. I want to target a specific sport and broad age demographic. Is a business plan really necessary to secure funding for such a venture? I need equipment, a space to put it, and clients to train. I have no idea what to even charge, but my services would include strength and conditioning workouts and also work on developing skills specific to the sport which will help the athletes I train reach their goals.
yes
Yes, and if you think your idea is unique, you better make sure that everyone you discuss it with signs an NDA.
I have been through the funding process, and aside from being prepared to answer questions about any facet of your idea/business plan, you should be very prepared from a numbers standpoint. You should should have financial projections for the first 3-5 years of operation, and better be able to give a break even point and support it with factual projections.
When you boil it all down, VC’s, angel investors, and others offering funding are in it to make money, thus your numbers and your financial projections are the single most important part of a bullet proof business plan.
PM if you have any more specific questions.
Fund it yourself.
Yes, you need a business plan to get funding. If you were funding it yourself then you do not need a formal plan you just need to be organized about where your money is going…and from where your money is coming in.
For a business like this, you would likely be looking at bank financing for it and you will definitely need a business plan for them. And these days with them being as tight with money as they are, it will need to be well prepared. Contact the small business office for your state or town and they should have people or can point you to people that can help you put together the business plan and get everything ready to present to a bank.
You will definitely need to get whatever fees you are going to charge in order as well. Check with other trainers in your area and try to find out what they charge for their services. If there is something unique which will set you apart from them, then a premium can be charged for this, but for a bank to believe it, you will need to make sure that it is very unique and marketable and that you can sell it to your clients.
You will definitely need a business plan.
Even if you were funding this yourself, going into a business venture without a clear and structured map of progression, is asking for problems.
If you are going to see a bank, make sure you include as many data types as possible. Something as simple as putting in a BCG Matrix, SWOT analysis, the 4P’s, PEST analysis etc. is going to set you apart. All of those can be drawn up in an hour or so and will definitely set you apart from the vast majority of people who have an IDEA but don’t have a PLAN.
Also, make sure your mission statement is good. No matter how well drawn up your business plan is, people won’t look through it unless the mission statement grabs them.
A good piece of software to help you write your plan would be Palo Alto.
This is very good info guys. I am planning something similar in the future and some of these things will help me a lot. I have no formal education on this subject and it can be overwhelming at times.
[quote]jarvis wrote:
You will definitely need a business plan.
Even if you were funding this yourself, going into a business venture without a clear and structured map of progression, is asking for problems.
If you are going to see a bank, make sure you include as many data types as possible. Something as simple as putting in a BCG Matrix, SWOT analysis, the 4P’s, PEST analysis etc. is going to set you apart. All of those can be drawn up in an hour or so and will definitely set you apart from the vast majority of people who have an IDEA but don’t have a PLAN.
Also, make sure your mission statement is good. No matter how well drawn up your business plan is, people won’t look through it unless the mission statement grabs them.
A good piece of software to help you write your plan would be Palo Alto.[/quote]
Great suggestions, funny you mention Palo Alto, because that is where I live. Heart of Silicon Valley.
Also, don’t underestimate the power of a well crafted cover letter/executive summary, because in most cases that is what is going to determine whether or not you get a meeting (if you are going down the VC/Angel Path). Forget the fluffy coatings, executive summary’s need to tell the VC/Angel what problem your solving, how your doing it, and how its going to make you/them money. If they can’t see that in the first paragraph or two, they will lose interest and be onto the next proposal.