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mikej
Sep 21, 2010, 6:58 PM
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I have a business plan, a 3d design, and previous experience building a gym and am currently looking for funding. I've done a bit of research on the subject and keep hitting dead ends. I'll keep looking locally, but I was told some of the large wall building companies also fund new gym builds. Ive talked to rockwerx funder and they only fund rockwerx projects. I can't seem to find funding info on any of the wall builders sites. I plan to do the build myself with a team, have costs relatively figured out up to opening and have month to month figures on the way. Ive searched the threads with little luck. Anyone know where to find funding for such a project? Ive looked into commercial loans, they still require about 30% down.
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vegastradguy
Sep 21, 2010, 7:30 PM
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planet granite (or was it touchstone? pretty sure it was planet granite) has gotten into the business of helping new gyms get off the ground- i cant remember the details, but it'd be worth giving them a call.
regardless, you're going to need some collateral or a chunk of the start up costs somewhere in the equation if you want to own the business yourself- nobody is going to give you a loan without a down payment and any other kind of funding is going to mean equity in the company for the funder.
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gmggg
Sep 21, 2010, 7:40 PM
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mikej wrote: I have a business plan, a 3d design, and previous experience building a gym and am currently looking for funding. I've done a bit of research on the subject and keep hitting dead ends. I'll keep looking locally, but I was told some of the large wall building companies also fund new gym builds. Ive talked to rockwerx funder and they only fund rockwerx projects. I can't seem to find funding info on any of the wall builders sites. I plan to do the build myself with a team, have costs relatively figured out up to opening and have month to month figures on the way. Ive searched the threads with little luck. Anyone know where to find funding for such a project? Ive looked into commercial loans, they still require about 30% down.
Have you looked into the CWA yet? I believe they have some helpful tools, and at the very least you could go to their annual conference and do some networking with others who have and/or are looking for funding.
http://www.climbingwallindustry.org/
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jgross
Sep 22, 2010, 12:22 PM
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Climbing wall companies are only interested in funding projects that generate business for themselves. I believe most of them will do some form of funding/loan if they think your project is sound, even if they don't advertise it on their web site. But if you are building the walls yourself, they have no reason to pitch in.
Have you considered a hybrid project, where a wall company does some of the build and your team does some? That will increase your costs substantially, probably increase the quality of the result (depending on your skill & experience), and possibly generate enough business for the wall company to consider helping you get the project off the ground. That might be worth it.
To get a bank loan you need both collateral and your own skin in the game (i.e. you need to have money of your own to invest). Your only other options are to round up sweetheart loans from friends & family who believe in you, or sell some of your equity to a partner. New businesses are risky, and any lender needs to offset that risk somehow.
John Gross
Owner, True North Climbing
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dynosore
Sep 22, 2010, 2:17 PM
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The previous poster summed it up well. Think about it from the lender's perspective. Here's a guy that want to build his own wall of unknown quality and has little equity in it. We don't understand the economics of a climbing gym, and of course his projections are rosy but what's the reality? The economy is still in the gutter. The last thing our bank needs is another default.
If I were in your shoes I'd work my tail off a couple years until I had the 30% collateral. If you really believe it will work make it happen!
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