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theunknowndj
Nov 10, 2008, 5:29 PM
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I live in city where climbing gyms are seperated from the down town core by long bus/train/subway rides. In the downtown core there is a ghetto of student housing nearby to a major university.
It goes without saying that there are a multitude of factors to consider but from a global perspective, is a bouldering gym an easy business to make profitable? The way i see it is
Pros:
1) requires very few staff
2) market proximity and no competition near by
3) possibility of additional income from an attached cafe
cons:
1) large one time startup cost of building an original wall and gearing up
2) climbers are dirt bags who don't make tons of cash
Any thoughts?
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suilenroc
Nov 10, 2008, 5:37 PM
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I live in Athens Ohio, pop. 30,000ish, home to Ohio University... Last May a friend opened up a bouldering gym www.solutionrockgym.blogspot.com and it has been doing good. He definitely saved money by doing most of the construction by himself and had a huge personal collection of holds. PM me if you want his contact info to get some real beta and not a bunch of a-holes bla-ing at eachother in a forum.
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marebear
Nov 10, 2008, 7:12 PM
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In reply to: cons: 1) large one time startup cost of building an original wall and gearing up 2) climbers are dirt bags who don't make tons of cash
I think another con you are missing is the overhead costs created by insurance premiums. I would think insurance would be a nightmare for a climbing gym.
The gym I climb at seems to do pretty well, but of course I don't know what kind of profit they are pulling. My guess would be that the revenue would be quite seasonal depending on the climate where you live. Here, the gym is much busier during the winter months when it is too cold to climb outside.
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shockabuku
Nov 10, 2008, 7:25 PM
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You may be underestimating the number of staff hours involved in setting routes.
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dynosore
Nov 10, 2008, 7:29 PM
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With the economy in the gutter, I'd think twice before doing this.....
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climb4free
Nov 10, 2008, 8:06 PM
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dynosore wrote: With the economy in the gutter, I'd think twice before doing this.....
With the economy in the gutter, I'd think twice before depending completely on an employer's paycheck. To the OP, going into business for yourself is a calculated risk, but at least you are in control of your success/failure to some extent. Do your market research, conduct some surveys of your target market, get cost estimates, and then make the best decision for you and your family.
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Feller
Nov 10, 2008, 8:17 PM
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Registered: Jul 28, 2008
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climb4free wrote: With the economy in the gutter, I'd think twice before depending completely on an employer's paycheck. To the OP, going into business for yourself is a calculated risk, but at least you are in control of your success/failure to some extent. Do your market research, conduct some surveys of your target market, get cost estimates, and then make the best decision for you and your family.
I agree with Climb4free. he's a businessman and knows what he's talking about. I could go on for about 10 pages about proper business practices and modern marketing schemes, but Its probably a waste of breath until you've conducted all your primary and secondary research. you won't get anywhere without knowing who your market is, why they buy the things they do, how your target market behaves in a down turned economy, and what goods and services they are specifically looking for.
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djlachelt
Nov 10, 2008, 9:53 PM
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marebear wrote: I think another con you are missing is the overhead costs created by insurance premiums. I would think insurance would be a nightmare for a climbing gym. The gym I climb at seems to do pretty well, but of course I don't know what kind of profit they are pulling. My guess would be that the revenue would be quite seasonal depending on the climate where you live. Here, the gym is much busier during the winter months when it is too cold to climb outside.
As for insurance premiums, that is not a big issue... at least in the US (I don't know about Canada). In the US you can become a member of the Climbing Wall Association and then have access to an insurance provider at very reasonable rates... based on a percentage of revenues. This has been discussed multiple times in Indoor Climbing forum. Do a search for more info.
Your other observation about seasonality is of course correct in most places.
To the OP... if you are serious about your idea you should definitely check out the CWA. They have a yearly trade-show in the spring that is very informative... not just vendor fluff. Here's the scoop about the 2008 show: http://www.climbingwallindustry.org/cwsmain08.php
Good luck!
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dynosore
Nov 10, 2008, 9:56 PM
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climb4free wrote: dynosore wrote: With the economy in the gutter, I'd think twice before doing this..... With the economy in the gutter, I'd think twice before depending completely on an employer's paycheck. To the OP, going into business for yourself is a calculated risk, but at least you are in control of your success/failure to some extent. Do your market research, conduct some surveys of your target market, get cost estimates, and then make the best decision for you and your family.
My point was, climbing = disposable income, which a lot of folks are short on right now. I wasn't saying don't try it, I was just suggesting that the timing may be a bit less than ideal. You can have the best business plan in the world on paper, but if customers don't come, they don't come.
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marebear
Nov 10, 2008, 10:12 PM
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In reply to: climb4free wrote: dynosore wrote: With the economy in the gutter, I'd think twice before doing this..... With the economy in the gutter, I'd think twice before depending completely on an employer's paycheck. To the OP, going into business for yourself is a calculated risk, but at least you are in control of your success/failure to some extent. Do your market research, conduct some surveys of your target market, get cost estimates, and then make the best decision for you and your family. My point was, climbing = disposable income, which a lot of folks are short on right now. I wasn't saying don't try it, I was just suggesting that the timing may be a bit less than ideal. You can have the best business plan in the world on paper, but if customers don't come, they don't come.
The economy being in the gutter could work in your favor, provided you have the capital to start something now. Interest rates are low (if you can get a loan), there are deals to be had on real estate and construction companies and engineering firms are looking for work.
Here's the website for a new climbing gym going up in Boise:
http://www.boiseboulderinggym.com They have a cool concept in a town that already has a couple climbing gyms.
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