Anyone own or run their own PT studio?

[Boom782]

I have been personal training for about 5 years now and have a really good clientel built up but I am looking to get out of the Nationwide gym I am in and start up my own studio.

Has anyone done this successfully? I'm not talking about starting to do in home training either. I am strictly looking to rent/buy retail space and open up my own small training studio.

Please let me know if you have done this and if you would mind me picking your brain a bit. Thanks in advance.

[NetworkPro]

Has anyone done this successfully? I'm not talking about starting to do in home training either. I am strictly looking to rent/buy retail space and open up my own small training studio.

I did the fuzzy math for my area and found that it is very expensive:

Equipment for a good gym - not including wash rooms or balls or ropes:

Required for Gym Quantity Price Total
5 - 50 Dumbells 1 1775 $1,775.00
50-100 Dumbells 1 2500 $2,500.00
Treadmills 3 2500 $7,500.00
Eliptical 3 2500 $7,500.00
Smith Machine 1 2000 $2,000.00
Leg Press 1 1500 $1,500.00
Squat Racks 1 1500 $1,500.00
Cable Machine 1 1500 $1,500.00
Benches - Press 3 819 $2,457.00
Decline Bench 1 700 $700.00
Incline Bench 1 700 $700.00
Moveable Bench 2 700 $1,400.00
Weight Sets 1 4590 $4,590.00
Bars 5 65 $325.00
Ez Curl Bar 1 125 $125.00
Rubber Flooring 2000 2.59 $5,180.00 Sq ft
Paint 1 500 $500.00
Signs 1 800 $800.00


$42,552 Total Startup

Commercial Space 1 1500
Commercial Electric1 300
Commercial Water 1 300
Insurance 1 100


$2200 MRC (monthly reoccurring costs)

Pay off the Equipment in 3 Years No Interest (36mo): $1182/mo

Total MRC: $3382/mo

I did it monthly but lets do it in sessions:

100 Sessions/mo @ 33.82/mo = Break Even (Steady 25 Sessions / week)
50 Sessions/mo @ 67.64/mo = Break Even (Steady 12.5 Sessions / week)
25 Sessions/mo @ 135.28/mo = Break Even (Steady 6.25 Sessions / week)

... then you can think about paying yourself .... and paying interest on that small business loan.

[Boom782]

Thanks for the reply.

I am looking for something on a much smaller scale though.

1-2 pieces cardio equipment
5-50lb DB's
Smith machine
1 moveable bench
Cable machine
And all the small apparatus stuff many gym PT studios have(bands,balls,steps,jumpropes, etc.)

So cost will be more in the neighborhood of $10-20k. Might be forgetting a couple items, but in my opinion, that is all the equipment I would need to train my clients right now...at least for awhile.

[NetworkPro]

Thanks for the reply. So cost will be more in the neighborhood of $10-20k. Might be forgetting a couple items, but in my opinion, that is all the equipment I would need to train my clients right now...at least for awhile.

I can work with that AND I'll pretend you can find a 2000 sq.ft. facility for 900 / mo

5 - 50 Dumbells 1 1775 $1,775.00
Treadmills 1 2500 $2,500.00
Smith Machine 1 2000 $2,000.00
Cable Machine 1 1500 $1,500.00
Movable Bench 1 700 $700.00
Weight Sets 1 4590 $4,590.00
Rubber Flooring 2000 2.59 $5,180.00 Sq ft (CANNOT have a gym without this ask anyone)
Bars 1 65 $65.00 (power cleans, clean high, power jerk, deadlift)
Paint 1 500 $500.00
Signs 1 800 $800.00
Website 1 550 $550.00 (lets just pretend you don't have MRC with this)
Balls / bands /steps 1 300 $300.00

Total startup costs: $20,460.00 *

**** by rule you are supposed to take this number *25% Plus 6-10 months MRC and that is what you ask the bank for. ****

0% 36mo Startup equip = $568.33/mo

MRC $1600

Total MRC $2168.33

100 Sessions/mo @ 21.68/sess = Break Even (Steady 25 Sessions / week)
50 Sessions/mo @ 43.37/sess = Break Even (Steady 12.5 Sessions / week)
25 Sessions/mo @ 86.73/sess = Break Even (Steady 6.25 Sessions / week)

Again pretending that we can paid it off at 36 months with 0% interest (which would never ever happen unless you have an angel investor -- DO NOT LOOK FOR VULTURE Capital (venture))

Startups are difficult my friend, however, you have something that most startups don't -- a customer.

[Thuirwyne]

Yep; you should fish around for a small business loan or grant.

[dasixthsun]

I am about to sign a lease on a 2000 sq ft building. Rent for the month is 1,800. I will install rubber flooring so im guessing around 2000 dollars for that . usedgymequipment.com is your friend. or you can check out collins international. pm me if you need their number . But basically they sell equipment 50%less than manufactures price. also start looking on craigslist for stuff. I just brough a dual side half rack with olympic lifting platform for 1500. But the proposal used gym equipment gave me was under 10000. and it included:

2 Olym flat bench
1 Olym incline
1 Olym military press
2 90 degree adj bench
1 preacher curl
1 45 deg angled leg press
leg lift station (forget the name but you can also do dips on this )
Decline ab bench
ab bench
Hyperextension
Db w rack 10-110
Fixed Barbell w rack 20-110
2 plate trees
Olympic plates to fille 2 plate trees (45, 25, 10, 5, 2.5)

So you can do it and this will be a nice ass studio when finished and will be under 15 grand for startup. I am currently renting space where there is only a functional trainer 2 sqaut racks and a multistation unit.

[Boom782]

Thanks again for your reply but I still think your costs are off and still very high.

Maybe I should be more specific in my requirments. First off I found a place already that is 950sqf. Perfect for what I need. About 900 of it will need rubber flooring so lets start there.

Rubber Flooring - $2330
DB's 5-50lb + Rack - $990 shipped(already priced, branc new, good equipment)
Treadmill - $1500(probably buy used)
Cable machine - $2500(Life Fitness Dual Adjustable Pulley)
Smith Machine - $1000(not sure which one you are looking at for $2000)
Weight Plates - $1200
Moveable Bench - $700
Balls/Steps/Bars/Ropes - $1500(steps alone are $300 and I plan on having lots of small apparatus equipment)
Paint/Signs/Website - $1850(I'll take your figure since I have no idea)

And let's tack on another $1000 for other stuff I might want such as kettlebells and other toys that aren't really neccessary. I'm not sure what the $4500 weight set is you are talking about. If you are talking about plates for the smith machine then a decent set can be found for under $1200.

Round up and I'm looking at $15,000.

The place I'm looking at is $1500 + gas/electric so $1800-1900/m on the high side.


Now, I'm not really sure why I took the time to write all that up. I know my business and I know what I can manage so I didn't come here asking if you guys think its feasible for me to do this. I came here asking "What is my next step?"

I have the clientel, I have about $10k saved up, and I have a location selected. Where to now? Find a lawyer? Accountant? I would like to move my business into this location within the next 6 months I just am unsure of the process. ie getting licenses, legal crap, zoning, paperwork...Thats what I'm here for.

Thanks again

[Boom782]

I am about to sign a lease on a 2000 sq ft building. Rent for the month is 1,800. I will install rubber flooring so im guessing around 2000 dollars for that . usedgymequipment.com is your friend. or you can check out collins international. pm me if you need their number . But basically they sell equipment 50%less than manufactures price. also start looking on craigslist for stuff. I just brough a dual side half rack with olympic lifting platform for 1500. But the proposal used gym equipment gave me was under 10000. and it included:

2 Olym flat bench
1 Olym incline
1 Olym military press
2 90 degree adj bench
1 preacher curl
1 45 deg angled leg press
leg lift station (forget the name but you can also do dips on this )
Decline ab bench
ab bench
Hyperextension
Db w rack 10-110
Fixed Barbell w rack 20-110
2 plate trees
Olympic plates to fille 2 plate trees (45, 25, 10, 5, 2.5)

So you can do it and this will be a nice ass studio when finished and will be under 15 grand for startup. I am currently renting space where there is only a functional trainer 2 sqaut racks and a multistation unit.

I am in Chicago. I wish I could find a 2000sqf place for only $1800. The one I looked at was 2100sqf and it was $5700. Granted it was a very nice store front though.

[NetworkPro]

I am in Chicago. I wish I could find a 2000sqf place for only $1800. The one I looked at was 2100sqf and it was $5700. Granted it was a very nice store front though.

I am not trying to undermine your knowledge but I've gone out for venture capital on a $340 million dollar aquisition from investors in Chicago. Specifically, the guy and son of the guy that funded the startup of Eharmony.

You asked:

Has anyone done this successfully?

I have started several organizations successfully (some as a mentor and some as an owner) and I also have failed miserably. From someone that has done this multiple times and have been in countless meetings with investors this is what I've learned:

How quickly can you pay off your loan and what do I have to do to keep this thing running?

You are absolutely correct, you know your business, however, I think you are quick to shoot when you need to layout the entire cost structure of the business. When I mentor companies on startups, that is usually what it comes down to. Can you afford and sustain a business for two years? Why? Two years is the make or breaking point for most organizations.

Have you thought about operating capital? If you have 10k in the bank are you putting that towards operating capital or are you putting that towards the equipment? Do you own a house? Does it have any equity? Banks are not going to just give you money just because you're a good trainer. They want something they can take from you if your business goes south.

Do you expect all of your clients to follow you? What if your new place is too far for them to drive because you can't afford a place near your current location? Don't expect everyone to follow. Use 70% of your clients as a baseline for your business.

How are you going to drive customers into your shop if you are not tied to a gym? What advertising costs will you then have?

If starting a business was as easy as everyone thought -- everyone would be owners. I am not here to shatter your dreams - I am here to provide reality behind the actual costs of a business.

When you actually figure out the numbers and if you can get a loan for your ideal location:

#1 Determine if you want to be an LLC, S Corp, or C Corp. Probably LLC is best for you.
#2 Determine if you have a non-compete clause in your agreement with your last company. The state of Illinois will honor the noncompete if you are NOT fired.
#3 File articles of incorporation with the state of Illinois. I have a sample if you need one. A lawyer for these will cost you an arm and a leg. There is a filing fee for these.
#4 Obtain a Federal Tax ID number. - Free
#5 Get insurance for your gym. Both for injury, Liability, and renters insurance.
#6 Perform the required maint to the facility to make it useable.
#7 Find an accountant or someone that can help you with the books. Don't wait on this one either as year end totals will really screw you.
#8 Find a good defense lawyer and put him on retainer (being that you know where to go if someone gets injured)


So much more but this should give you a start.

[Environ]

I spent less than €2,000 on equipment - squat rack, barbell and plates, and dumbbells - and converted my (very fancy) conservatory into a gym. Since it's PT only, you don't need a lot of space. We have a landscaped garden with various different height walls, so I use that too, and there is a fine park around the corner. I didn't buy anything that required electricity (so no cardio machines because I think that they are less beneficial than actually running on a surface for example).

I work part time as a PT and, at the moment, I have one spare hour a week that I will shortly fill. Everybody that trains here is very happy with it because they've said so without me asking them to comment.

All of the above is temporary because we are moving house shortly. I will build a proper studio when we move and I have budgeted a maximum of €10,000 for the construction - and I have that saved up. On top of that, I will buy a few more bits and pieces for the gym (medicine balls, kettlebells, etc). My training partner, who is a former client, is an Interior Designer and he is doing the design for me (I'm an Engineer, so I've been able to produce my own sketches and drawings for the physical structure). He is confident that I can build it within budget. Also, my brother-in-law is a builder and he will jump at the opportunity for work given the economic situation we have over here.

So, I think you should think outside the box when you go ahead with this. Decide on exactly what you need and try to recruit friends and relatives who can help you out (even if you rent or buy space, you will still need somebody to kit it out for you).

[Boom782]

I have started several organizations successfully (some as a mentor and some as an owner) and I also have failed miserably. From someone that has done this multiple times and have been in countless meetings with investors this is what I've learned:

How quickly can you pay off your loan and what do I have to do to keep this thing running?

You are absolutely correct, you know your business, however, I think you are quick to shoot when you need to layout the entire cost structure of the business. When I mentor companies on startups, that is usually what it comes down to. Can you afford and sustain a business for two years? Why? Two years is the make or breaking point for most organizations.

Have you thought about operating capital? If you have 10k in the bank are you putting that towards operating capital or are you putting that towards the equipment? Do you own a house? Does it have any equity? Banks are not going to just give you money just because you're a good trainer. They want something they can take from you if your business goes south.

Do you expect all of your clients to follow you? What if your new place is too far for them to drive because you can't afford a place near your current location? Don't expect everyone to follow. Use 70% of your clients as a baseline for your business.

How are you going to drive customers into your shop if you are not tied to a gym? What advertising costs will you then have?

If starting a business was as easy as everyone thought -- everyone would be owners. I am not here to shatter your dreams - I am here to provide reality behind the actual costs of a business.

When you actually figure out the numbers and if you can get a loan for your ideal location:

#1 Determine if you want to be an LLC, S Corp, or C Corp. Probably LLC is best for you.
#2 Determine if you have a non-compete clause in your agreement with your last company. The state of Illinois will honor the noncompete if you are NOT fired.
#3 File articles of incorporation with the state of Illinois. I have a sample if you need one. A lawyer for these will cost you an arm and a leg. There is a filing fee for these.
#4 Obtain a Federal Tax ID number. - Free
#5 Get insurance for your gym. Both for injury, Liability, and renters insurance.
#6 Perform the required maint to the facility to make it useable.
#7 Find an accountant or someone that can help you with the books. Don't wait on this one either as year end totals will really screw you.
#8 Find a good defense lawyer and put him on retainer (being that you know where to go if someone gets injured)


So much more but this should give you a start.

Excellent reply. This is exactly what I am looking for. Thank you!

As for some of your questions, I have thought it out and the costs.

1. The location is a block from the gym I currently train in.
2. I have a minimum of 8 clients following me all train 2-3x week at $50-70 an hour. Many others I can get back if I can charge them less which I will do(but still make more than gym pays me)
3. 10k would go for equipment and opening costs. Signing up my current clients will cover first 2-3 months rent.
4. Advertising is something I have yet to put much thought into
5. I rent, do not own so no equity.
6. I am planning on doing this with another trainer/friend so split costs
7. I have two other ideas for sources of income into the gym. Enough so that if it works as hoped the facility will pay for itself regardless of what I bring into it.

Thanks again for your info. Let me know if you would be willing to let me pick your brain a bit more because it seems you are very knowledgable on this.

[NetworkPro]

I am planning on doing this with another trainer/friend so split costs

HUGE RED FLAG!!!!!!! -- but something you can get over.

This last year I had a business partner who went 50/50 into the business with me. He was a sweat equity investor, and I was the capital investor. We opened a bank account together and had several successful business transactions with corporations around the United States. He thought it was a good idea to take a month vacation in Aruba, however, he ran out of money while he was out there. Him and I got into a discression about him being out there with no money and the day he got back from Aruba, he closed out our bank account and ran with the money.

This was a guy that I was best friends with for over seven years (so much that he was to be the best man in my wedding someday). Completely blind sided me. I couldn't even fathem him doing something like this to me. I tried to press charges on him for misappropriation of funds / embezzlement, however, our local authorities stated that because he had access to those funds, and was a co-owner, he was able to do with it that he'd like.

So now after thousands of dollars more out of my pocket in attorneys fees, I am taking him to circuit court to deal with this situation.

Thing's I've learned

#1 The very first thing you are going to do is get an agreement called a shareholders agreement. This will discuss the breaking up of gains made in the organization. This will also discuss how you are paying out the salary to eachother. This is to also discuss equal paycuts in times of corporate distress. I cannot tell you how painful this agreement is in the making, but would have saved me a **** ton of money. This is critical!!!!!!!!

EDIT: You also must require a prenup for you and your partner to sign before getting married. If someone's marriage fails, the wife will obtain 25% of the business in divorce court AND most likely you will have to buy out her shares if you don't want her a part of the business. This goes along with the first right of refusal - so you and your partner have the first right to refuse an offer to buy out shares (so your partner doesn't sell his shares to someone else). Additionally you want to put in a death clause where you have the right to purchase the shares at a fair market value.

#2 When you setup a joint bank account, you must setup the rule that both of your signatures must be on the closing documents.
#3 You may require both signatures for checks.


Man.. this last year has been full of a bunch of life lessons for me.

P.S. Edit 2: A little rep wouldn't hurt

[MT1979]

Don't forget architect fees, tennant finish, monthly upkeep of equipment, and other miscellaneous costs that will pop up. You aren't going to find a retail space that is set up perfect for a studio. You need an architect to design your build out, a crew to finish it, permits for construction, etc.

I thought it would be simple, but I've been putting mine together and getting bids from contractors for over 6 months. If I was you, instead of splitting costs, I'd rent space to your friend and other trainers. Less ways to divide the money and less of a tax headache.

[oakspringer]

HUGE RED FLAG!!!!!!! -- but something you can get over.

This last year I had a business partner who went 50/50 into the business with me. He was a sweat equity investor, and I was the capital investor. We opened a bank account together and had several successful business transactions with corporations around the United States. He thought it was a good idea to take a month vacation in Aruba, however, he ran out of money while he was out there. Him and I got into a discression about him being out there with no money and the day he got back from Aruba, he closed out our bank account and ran with the money.

This was a guy that I was best friends with for over seven years (so much that he was to be the best man in my wedding someday). Completely blind sided me. I couldn't even fathem him doing something like this to me. I tried to press charges on him for misappropriation of funds / embezzlement, however, our local authorities stated that because he had access to those funds, and was a co-owner, he was able to do with it that he'd like.

So now after thousands of dollars more out of my pocket in attorneys fees, I am taking him to circuit court to deal with this situation.

Thing's I've learned

#1 The very first thing you are going to do is get an agreement called a shareholders agreement. This will discuss the breaking up of gains made in the organization. This will also discuss how you are paying out the salary to eachother. This is to also discuss equal paycuts in times of corporate distress. I cannot tell you how painful this agreement is in the making, but would have saved me a **** ton of money. This is critical!!!!!!!!

EDIT: You also must require a prenup for you and your partner to sign before getting married. If someone's marriage fails, the wife will obtain 25% of the business in divorce court AND most likely you will have to buy out her shares if you don't want her a part of the business. This goes along with the first right of refusal - so you and your partner have the first right to refuse an offer to buy out shares (so your partner doesn't sell his shares to someone else). Additionally you want to put in a death clause where you have the right to purchase the shares at a fair market value.

#2 When you setup a joint bank account, you must setup the rule that both of your signatures must be on the closing documents.
#3 You may require both signatures for checks.


Man.. this last year has been full of a bunch of life lessons for me.

P.S. Edit 2: A little rep wouldn't hurt

Very interesting post. Had a similar best friend/business partner thing happen with my mom. Eventually she sold her share of the company.

I would venture to agree that unless everything is in writing between two partners, there is likely to be trouble.

So like they say, fail to plan, plan to fail.

[jules_d1]

wow.... a lot of you guys are spending/purchasing WAYYYYYYY to much.

People really overestimate what you need. If you are a half decent trainer, you know how to train people without all that equipment.

Unless you are training high end athletes you dont need all that stuff when you start up....just the basics.

When I started up I had

DBs 1kg-30kg
Med Balls
Adjustable bench
Squat Rack
Oly bar and weights
Smith machine
boxing euipment.
2 Spin Bikes
Varied sized tyres
2 TRX suspension training.

I think thats about it in regards to actual equipment. There is pretty much nothing you cant do with all of that. Add matts and some foam flooring (dont need to spend crazy amounts on the high end stuff unless you plan on your clients throwing weights around).

Try and buy as much as you can second hand. So many people buy fitness eqipment with good intentions and then never use it. A used 10kg weight plate is just the same as a new one.

Clients dont care what equipment you have. They just want results.

[jules_d1]

Another thing

PEOPLE WONT CARE WHAT IT LOOKS LIKE OR WHERE IT IS (AS LONG AS ITS NOT 30MINS AWAY

You dont want a retail spot for many reasons
- Rent will be super high....find warehouse space. dead cheap and nice open space
- Parking is a problem in busy areas
- People dont want to be seen all hot a sweaty leaving the studio

You dont need everything to start with. I;ve added things as ive gone. Clients actually love to see the progressions in the place. they see it growing and loving being a part of it all.

I have my studio in a big warehouse space (1332 sq ft) and now expanded into next door (now 2664ft). It doesnt look fancy from the outside....it looks just like a crappy warehouse but clients LOVE it....why?

- It doesnt look like a gym....they come to you as they dont like the gym environment.
-Its off the street and private.
-Plenty of off street parking
- It has a "hard work" feel to it and they get get down and dirty and bust a gut without worrying about any body looking in or anything.

Here are a few pics from the outside. Some pics are from our xmas party.


this pic is from when we actually started to move stuff in.

[asto_86]

jules, your gym looks kick ass and I would prolly train there given the chance and i dont know why.

ps.. this thread is a bit depressing. I didnt realize how much it took to start up your own place. Ive got a loong ways to go. Jules your advice was promising though

[jules_d1]

jules, your gym looks kick ass and I would prolly train there given the chance and i dont know why.

ps.. this thread is a bit depressing. I didnt realize how much it took to start up your own place. Ive got a loong ways to go. Jules your advice was promising though

haha you havnt seen inside! it could be crap!

all the advice ive given is for a private studio. for a fully fledge gym you'll obviously need a full set up.


The way that you take payment from clients also effects when you can and cant do.

If you are getting payments session to session, week to week you will struggle. You need to be able to sell packages up front. When people are paying a couple grand at once it gives you great cash flow with room to move.

[Mr.ILL]

Jules are people just at your studio when being trained or do people come and work out by themselves as well? Do you rent out to other trainers?

[jules_d1]

Jules are people just at your studio when being trained or do people come and work out by themselves as well? Do you rent out to other trainers?

It is a private studio, when you are in there, you are with a trainer. Its not open to the public.

I have two other staff members. I will never rent out space in there as I want to have complete control over the quality of training that goes on.

[NetworkPro]

Jules - I agree that the costs don't have to be high, however, in Chicago, things are a bit different.

A large (I can't find the actual percentage) part of the population that lives in Chicago relies on public transportation. He needs to find a location that people can access via public transportation easily and feel safe in doing so. What he has going for him is a highest number of single females to non single female ratio, who concentrate on working out. As long as his location is in a safe, non sketchy area, he should be fine. Things are NOT cheap in Chicago. Just like living in any other big city in the US.

You should be proud that you found a way to make it work Jules. The business law may be different out by you so you may not have to deal with these business agreements. For the US, especially in Chicago, business agreements are critical. How do you draw in new clients? Word of mouth?

As per oakspringer -- Take in laundry before you take on Partners. While you think you may know someone, you have to know all of their dirt before going in business with someone. Do they have a large amount of debt? etc.. etc..

[jules_d1]

Jules - I agree that the costs don't have to be high, however, in Chicago, things are a bit different.

A large (I can't find the actual percentage) part of the population that lives in Chicago relies on public transportation. He needs to find a location that people can access via public transportation easily and feel safe in doing so. What he has going for him is a highest number of single females to non single female ratio, who concentrate on working out. As long as his location is in a safe, non sketchy area, he should be fine. Things are NOT cheap in Chicago. Just like living in any other big city in the US.

You should be proud that you found a way to make it work Jules. The business law may be different out by you so you may not have to deal with these business agreements. For the US, especially in Chicago, business agreements are critical. How do you draw in new clients? Word of mouth?

As per oakspringer -- Take in laundry before you take on Partners. While you think you may know someone, you have to know all of their dirt before going in business with someone. Do they have a large amount of debt? etc.. etc..

all fair points. If location is important go for that but i still stress you dont need a fancy looking place with a big shop front. im sure you can still find warehouse space.

what do you mean by business agreements?

I do rely strongly on word of mouth and heavily reward people for it. i do use other unique marketing methods. public speaking, contests etc all work in my favour. I dont give out business cards to random people (id rather get their card to i have their contact details).

[tovlakas]

Depending on the cardio equipment you get, you're typically going to be looking at a lot more than 2.5k per machine, unless you get residential-grade or a REALLLLLY good used deal. Most machines i've encountered, even used, are around 7k a piece, up to 15-16k new. For commercial grade, of course... don't waste your money on a residential-grade machine.

[NetworkPro]

what do you mean by business agreements?

If you incorporate as a C Corp in the United States you have obligations to the State such as one shareholders meeting a year (location, time, ect. ect), voting in meetings, board of directors, officers, declaring your tax season (what months your fiscal year are), principal place of business, and a bunch more stuff.

The first thing you have to issue to the State is the 'Articles of Incorporation' which also include your 'Registered Agent'. Think of a registered agent as the person who handles all of your legal and tax mail to/from the state.

You then have to declare your 'Corporate By Laws' which contains the above declarations. This makes sure that there is no dispute over who is entitled to what and the split of the shares, and how to make decisions.

This remains partially true for S Corps and LLCs. The main difference are the Corporate By Laws and what your obligations to the state are (taxes, legal, ect).

Once you go through all of this stuff once and pay the legal fees once, it makes it easier the second time around

[jules_d1]

If you incorporate as a C Corp in the United States you have obligations to the State such as one shareholders meeting a year (location, time, ect. ect), voting in meetings, board of directors, officers, declaring your tax season (what months your fiscal year are), principal place of business, and a bunch more stuff.

The first thing you have to issue to the State is the 'Articles of Incorporation' which also include your 'Registered Agent'. Think of a registered agent as the person who handles all of your legal and tax mail to/from the state.

You then have to declare your 'Corporate By Laws' which contains the above declarations. This makes sure that there is no dispute over who is entitled to what and the split of the shares, and how to make decisions.

This remains partially true for S Corps and LLCs. The main difference are the Corporate By Laws and what your obligations to the state are (taxes, legal, ect).

Once you go through all of this stuff once and pay the legal fees once, it makes it easier the second time around

ah ok man. yea that isnt relevant to my situation.

[Ronin4help]

The key is advertisement and promotions. You have to shock the community, once in a while, with unrealistic temporary offers to get their attention. The word will spread and once you are at full capacity, discontinue the offer until you need it again. That is what every major company does. You have to be willing to (temporarily) lose money, in an effort to attract customers.

[jules_d1]

The key is advertisement and promotions. You have to shock the community, once in a while, with unrealistic temporary offers to get their attention. The word will spread and once you are at full capacity, discontinue the offer until you need it again. That is what every major company does. You have to be willing to (temporarily) lose money, in an effort to attract customers.

This is very common but isnt always the best method.

As with anything in life you need to be PRO-active rather than RE-active.

Wouldnt you rather be consistently be marketing so you are always overflowing with clients rather than having down periods where you have to go "oh sh*t! i need more clients!"

Id rather be continuously hussling with my marketing and being left with "oh sh*t, where can i fit all these clients on?"

[NetworkPro]

You have to be willing to (temporarily) lose money, in an effort to attract customers.

I've never met a business man who could sell under cost and make it up in volume.

+1 for Jules - You have to make realistic promotions and know how to drive business into your company. A lot of it is word of mouth, but eventually it will dry up and you'll have to come up with promotions. But losing money should never be part of a marketing plan IMO.

[carl.c]

bump

[Boom782]

Lots of good information guys. Thanks a lot!

Another thing though...how flexible are leasing agents when it comes to price? This place is only $1500 + gas/electric and they only require two months up front and a one year lease which I feel is reasonable. I was wondering how much negotiating might be possible since I have never dealt with leasing agents. Their contractor is putting together an estimate for me now to rebuild the space to my specifications. Should I push for free renovation or possibly a couple free months rent??

The space has been mainly vacant for two years now and is only being used as storage that some of the local businesses are paying for.