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The Pred
Green Belt
Joined: 26 Jun 2003
Posts: 385
Styles: Goju Ryu
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 Posted: Thu Jun 27, 2019 8:29 pm Post subject: Raising money to purchase.. |
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Hi all,
Question to anyone that has their own school. Did you already have money available to open your own place. Or did you purchase from your own instructor and or franchising the name? Second I've been doing a bunch of research and is it easy to get an SBA loan? |
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bushido_man96
KF Sensei
Joined: 31 Mar 2006
Posts: 30188
Location: Hays, KS
Styles: Taekwondo, Combat Hapkido, Aikido, GRACIE, Police Krav Maga, SPEAR
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| Posted: Fri Jun 28, 2019 9:36 pm Post subject: |
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If you plan on getting a small business loan, you'll need to go into it with a business plan. You'll need to show what your plan is: building location, class schedule, rates you'll charge students per month, estimated expenditures, how you plan to generate revenue (especially to cover paying off the loan), what your start-up fees may be, and how soon you can estimate that you will start turning a profit (again, a point-of-interest from someone loaning you money).
In a business like an MA club/school, you'll want to demonstrate that you hopefully have a group of students ready to go, willing to be paying dues from the jump. You'll have to demonstrate how that will generate income, and how you plan on growing to increase your income. Advertising, etc.
You'll want to probably draw all this up in a very nice, presentable notebook that shows how you plan to make this work. You may want to speak with your financial advisor if you have one. They may be able to help with this.
Best of luck! Please keep us posted.
_________________
www.haysgym.com
http://www.sunyis.com/
www.aikidoofnorthwestkansas.com |
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The Pred
Green Belt
Joined: 26 Jun 2003
Posts: 385
Styles: Goju Ryu
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| Posted: Sat Jun 29, 2019 7:52 am Post subject: |
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| bushido_man96 wrote: |
If you plan on getting a small business loan, you'll need to go into it with a business plan. You'll need to show what your plan is: building location, class schedule, rates you'll charge students per month, estimated expenditures, how you plan to generate revenue (especially to cover paying off the loan), what your start-up fees may be, and how soon you can estimate that you will start turning a profit (again, a point-of-interest from someone loaning you money).
In a business like an MA club/school, you'll want to demonstrate that you hopefully have a group of students ready to go, willing to be paying dues from the jump. You'll have to demonstrate how that will generate income, and how you plan on growing to increase your income. Advertising, etc.
You'll want to probably draw all this up in a very nice, presentable notebook that shows how you plan to make this work. You may want to speak with your financial advisor if you have one. They may be able to help with this.
Best of luck! Please keep us posted. |
Thank you.
Yeah, if anything I'd purchase the dojo im already at. I already have some ideas. |
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DWx
Black Belt
Joined: 17 Jan 2007
Posts: 6455
Location: UK
Styles: Tae Kwon Do & Yang family Tai Chi
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| Posted: Thu Jul 04, 2019 4:31 pm Post subject: |
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Where abouts are you based as it will differ from region to region?
I'm coming up on one year of my school so fairly new compared to others on KF. I found it easier to start by renting a room a couple of nights a week in a local sports club as if it all went wrong I had less to lose. Purchasing a building or taking on a loan is a long term commitment so you have to be sure it will work out.
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"Everything has its beauty, but not everyone sees it." ~ Confucius |
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sensei8
KF Sensei
Joined: 23 Feb 2008
Posts: 16424
Location: Las Vegas, NV
Styles: Shindokan Saitou-ryu [Shuri-te/Okinawa-te based]
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| Posted: Thu Jul 04, 2019 4:43 pm Post subject: |
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I opened my dojo with my own money from my savings account. No family members...no help from my Sensei...no help from any living soul except myself...and I wouldn't have had it any other way.
As far as the SBA, that will depend on ones financial strength or weakness across the board. Just remember that lenders just don't loan money without some strict approval/reject protocol in place; some lenders are much more relaxed then others...and they're out there, just have to find them.
When it comes to the SBA, it's not personal, it's business, and they will do anything and everything to protect their bottom line, than yours!!
Good luck and much success!!
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**Proof is on the floor!!! |
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The Pred
Green Belt
Joined: 26 Jun 2003
Posts: 385
Styles: Goju Ryu
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| Posted: Sun Jul 07, 2019 2:11 pm Post subject: |
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| DWx wrote: |
Where abouts are you based as it will differ from region to region?
I'm coming up on one year of my school so fairly new compared to others on KF. I found it easier to start by renting a room a couple of nights a week in a local sports club as if it all went wrong I had less to lose. Purchasing a building or taking on a loan is a long term commitment so you have to be sure it will work out. |
NJ which ironically is the worse place to start a business. |
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JazzKicker
Orange Belt
Joined: 07 Aug 2017
Posts: 174
Location: NJ
Styles: Hapkido, JKD, TSD
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| Posted: Mon Jul 08, 2019 2:19 pm Post subject: |
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| The Pred wrote: |
| DWx wrote: |
Where abouts are you based as it will differ from region to region?
I'm coming up on one year of my school so fairly new compared to others on KF. I found it easier to start by renting a room a couple of nights a week in a local sports club as if it all went wrong I had less to lose. Purchasing a building or taking on a loan is a long term commitment so you have to be sure it will work out. |
NJ which ironically is the worse place to start a business. |
I don't know if it's the worst, I got a lot of support from the Small Business Development center when I had a go at an engineering business years ago, but it depends on what town you're in.
A friend of mine did have a rough time with zoning and permitting when he tried to open a club in a nearby township. He moved to a better spot in his own township, then expanded to a bigger space. |
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