Opening my own business: advice?

I have some of my own businesses and am in the processof openning another as we speak.  Its not easy but it is worth it.  The gym idea is difficult in my area, (south Mississippi), because of the Snap fitness, 24 hour fitness, etc etc that charge very little to use.  I am a member of our local Y and love it.

If I was going to open a gym like that, I would couple it with a tri specific store that would supply gear that I can't get anywhere else around here.  Looks like Triathlon's are going to be here for a while, might as well capitalize on the craze (or crazies), which ever fits.

I went to Louisville KY last week to ride the ironman course before my race and needed some gear, went to VO2 Multisport.  Great store, wish Ihad one here!

Something to think about.

As a small business owner I can tell you the #1 thing that puts SB's under is lack of working capital.  You are going to need a good chunk of change to buy all the equipment, hire trainers, rent a space, do advertizing etc..

Whatever you have computed you need, triple it.  Money flows out the door like water in the early stages.

Also be prepared to take little to no salary for the first year or so. 

You need to have something that differentiates you from the other guys.  They are going to have better equipment, nicer buildings, better staff.  Have you done the market research to determine is the niche of "tri" training is large enough in your area to support a business?

If you are not scared off yet then great!  You have the stomach for business,.

This is a great idea. 

My recommendation would be to get a degree in Business ( or an MBA) as it will give you a good idea of most of the aspects of owning/running a business. Everything from financials to marketing to managing a staff. Most business programs will also have you writing a business plan as a major project - many in my classes used their own businesses (or future business ideas) as the basis. It was a great venue for professional critique and tweaking without being invested just yet.

As for certifications, check out USAT coaching certifications.

Other things to think about:
Swimming: will you offer masters classes? Coaching? Lessons? For kids? Adults? All ages? Will you teach flip turns?
Biking: Spin classes? Group rides?
Running: Track workouts (outdoor?)? Group runs? 
Strength: Yoga? Crossfit? P90X?
Nutrition: Smoothie bar? Dieticians?
Education: Seminars, workshops, pro panels, Q&As, Tri 101, community events 
Lifestyle: Is there a package that includes all of these elements for a total lifestyle? Are things sold "a la cart?" (I want the membership but not the coaching/nutrition, etc.)
Training plans/groups: will you offer tri coaching or custom training plans for specific races? Group training for specific races?
Price point: There's a local gym that offers $10/month memberships, what sets you apart and how are you going to compete with them? 

PS I have a gym membership ($21/month w/ company discount) but go solely to swim laps and the occasional (like 2x a year) treadmill run. Why would I join a triathlon specific gym? Something to think about.

I can't remember exactly why (something like: everything costs more than you think, business is never as good as you think, you never think of all the expenses, etc.....), I just remember one of the guys in my group worked for Glazer and we got to go to their corporate office to meet and discuss our business model with some big wigs there, because it had to do with alcohol distribution, and they had the coolest office I've ever seen.  fully stocked bars everywhere with different themes.  glass walls, girls in bikinis all over the walls, tvs every where.  It was awesome.

This.

The last time I went to a gym was to hit a treadmill and avoid 100+ degree heat. I have a bike trainer and can ride at home. I do need a pool to swim in, but Tucson has TONS - and I currently swim with a masters team.

What is your market like?

You'd need to cater to people that WANT the experience - because a tri-specific gym isn't something anyone needs. They can fulfill the basic needs at a YMCA, outside, with a tri club, or something similar, generally speaking.

Where I live, we've got this: http://www.tucsonendurancecenter.com/Home_Page.html

I haven't been, but they have a decent relationship with my tri club - the offer us discounts on TRX once a week, and a computrainer session (5 weeks, once a week) with course simulations for local races.

...and I still haven't gone. $90 for 5 sessions is a little steep for my taste, especially when another local gym does $5 drop-in spin classes 3 nights a week.

TriSports has something unique to the area though - you can reserve one of their endless pools for 45 min. 1 for $10, or 15 for $90.

That said, I'm also in a HUGE tri/cycling area, so the market is there to support these things.

+1000

Cash flow is king.  The first two years of my business were wildly successful and we had 5 digit profits every month, but I was always on the verge of going out of business.  Receivables always drag out and payables are never ending.  If I didn't have an external investor to help with the cash flow I would have never made it, even though we were profitable.

The other advice I'd give is to not be afraid to let people go.  I probably lost $60,000 the first year just by hanging onto people several months longer than I should have.  They ended up quitting or getting fired eventually, but if I would have listened to my gut I would have saved a ton of money.

I like some of your suggestions but I believe that getting an MBA with the goal to directly become a small business owner would not be a good return on investment. 

Depends on your investment... mine was free

OK, but your time wasn't... That's 1-2 years you could have been growing the business.  But to each their own.  Just my 2 cents.

Oh yeah, I forgot about that.  Disregard my previous post.  

Tip: Don't over-estimate your market.

Not sure where you are but very few locales are going to have enough triathletes to support the type of business you are looking to create.

Not trying to be a negative nancy, just suggesting you put some research into it. Determine what size gym you think you will need, what type equipment, how many people. Then put a dollar figure to it. Determine how many customers you will need to make a reasonable rate of return on that investment, then ask yourself if there are enough triathletes to comprise that customer base.

Personally I think it's too narrow of a focus. Gyms can be both capital intensive (lots of equipment needed) and labor intensive (experienced trainers aren't cheap). As entrenched as we are in this sport, sometimes we lose the perspective that this really is just a minor niche sport.

As a small business owner myself, the above pretty much sums it up.

I have a friend who is in the process of opening a spin studio.  She's looking at $50k of equipment.  Then there is finishing out a space.  Your landlord will give you a build out allowance but you'll probably still be $10,000 or more out of pocket. 

In the current economic climate, you need to plan on funding coming from your savings or friends and family.

Something to think about: why would a trainer with more experience than you come to work for you rather than themselves?  Can you guarantee income for them?  Do you have marketing savvy that they lack?

In my area there are a few triathlon training for hire businesses.  The top people running them have pro triathlon credentials or significant age group results.  Have you thought of what your hook will be to get paying customers in the door? 

I also agree with TriRSquared regarding education.  An MBA is not important for your business.  I think trade specific education would serve you better.  You are on the right track as far as seeking certifications.

An MBA is great if you are working as an employee for a large business. It may help you if you are looking at multiple locations or franchising.

Starting a successful business can be very rewarding.