Tag Archives: cycling studio business plan

Funding your studio, practical notes

Over the last year, I have spoken to a ton (many dozens) of people who have connected with me about the idea of starting their own cycling studio from scratch.   If you and I have spoken, you have probably heard me discuss what  the 3 critical “phases” of studio development (before launch).

money on trees1) Business plan….answers key questions like how much do I need to get going?, how much can I make?, what are the operations and marketing issues around getting going?, do I really want to do this?

 2) Funding…a few folks are self-funding with savings, most want to borrow money to get going.  How does this work, what do you need?

 3) Real Estate….finding the right space in the right demographic location at the right price is critical to making these work.  Lots of issues around this as many can attest.

 Today, I want to say a few brief words on funding, funding, funding, and especially the idea of borrowing money from a bank.  Is it possible?  Yes.  Is it difficult?  Yes.  Is having a great idea that you KNOW will work enough to convince a bank?  No.   

 I am going to make a gross generalization and there are always exceptions but there are 3 things a bank cares about.

1)Is the business a good idea with a good plan

2) Is the entrepreneur or team a good credit risk?

3) Has the owner demonstrated a strong commitment by putting their own money at risk?

Here is a quote from the SBA (Small Business Administration) website.  The SBA is one of the major lenders to startup small businesses

“…Sufficient equity (investing your own cash) is particularly important for new businesses, to convince the lender you are serious…”   

Having a good idea and a good plan?  Good.
Having a good plan and a good team?  Better
Having a good plan, good team committed and motivated?  Best   

Feel free to call to call anytime and discuss these or other marketing issues facing your studio!  Bill    billpryor@comcast.net  –  781-254-3677  –  skype: spynergy1

I am thinking of opening a cycling studio or a SPINNING® studio…..what do I do first?

“…I want to open a studio.  How do I get started?…”

I have received dozens of inquiries with some variation of this basic question.  My answer is exactly the same as it would be to anyone who wants to launch a restaurant, a magazine, a retail store or a dot.com business.  YOU NEED A BUSINESS PLAN.  The act of writing and developing a business plan forces you to address  all the critical factors that can make or break your business.  While writing it you will begin to frame answers to the most critical questions

  • How much money do I need to start this up?
  • How much money am I likely to make in year 1, year 2 and beyond?
  • Will I need other income during the start-up period (i.e. can our should I quit my current job?)
  • Is the operation of this type of business suited to my skills?
  • What are the key things I need to do to make this successful
  • How will I distinguish myself from competition?
  • Should I recruit partners or investors?

The very act of writing a business plan forces you to formulate answers to these and other questions.   These issues should all be addressed BEFORE you borrow money, sign a lease, copyright a name or invest significant dollars.  For some, writing a business plan convinces them they do not want to be an entrepreneur — much better to find out before signing a lease or buying bikes.  For others, writing the plan is the exciting initial spark that puts the engine in gear and gets it running.

Spynergy Consulting provides consulting services (including business plan development) to entrepreneurs and studio owners throughout the world.   To arrange a free consultation, email Bill at billpryor@comcast.net