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Old 15.11.2017, 14:32
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Looking for an investor for a Gym

I am looking for an investor for a lifestyle gym in Zurich. The goal is to create a visually beautiful space with membership based around classes with gym access. There is a gap in the market and I think I can fill it.

It's one of the fastest growing industries in Zurich and I really think I've got something very unique to bring to the table.

I got a lot of negative comments here before when I was asking about finding investors, please not this is not my only means of looking for an investor, but there are lots of helpful people here so it's not going to hurt.

I have start up funds, a business plan and numbers/projections which I will happily provide.

The investment I am looking for is between 150 000 and 250 000 depending on the location and size of the space.

Thank you!
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Old 15.11.2017, 14:44
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Re: Looking for an investor for a Gym

I'm not an investor but wish you luck ..


I wonder what the market gap is though.. Here in Geneva, within a ten minute walk from my office i can probably reach 10 "gyms". Ranging from posing parlors and pick up joints to low cost pay as you go to sweaty crossfit boxes (where i go) to spin and everything else. One of the latest is EvO which is marketing itself as a beautiful space with low cost membership and no commit.

What else is there?
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Old 15.11.2017, 14:50
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Re: Looking for an investor for a Gym

It's a completely different style of gym. the closest you would probably get in Zurich is Balboa, but they offer no structured schedule, gym access and it's visually very different. Balboa have just opened their 3rd gym in less than 3 years so the the demand is there.

Basically there is a gym in London and one in Helsinki that I absolutely love and really miss both. I want to create a combination of the two with added extras and with the visual aspect (art etc.)
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Old 15.11.2017, 14:53
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Re: Looking for an investor for a Gym

And I would love to go more into the specific concept, but I don't obviously want it all laid out here on a public forum
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Old 15.11.2017, 16:11
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Re: Looking for an investor for a Gym

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It's a completely different style of gym. the closest you would probably get in Zurich is Balboa, but they offer no structured schedule, gym access and it's visually very different. Balboa have just opened their 3rd gym in less than 3 years so the the demand is there.

Basically there is a gym in London and one in Helsinki that I absolutely love and really miss both. I want to create a combination of the two with added extras and with the visual aspect (art etc.)
You think one gym a year shows there's a demand? They wouldn't get any of the dragons on "Dragon's Den" to invest with that slow a growth. And following on that theme, what percentage of the business are you willing to give up for the investment?
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Old 15.11.2017, 16:47
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Re: Looking for an investor for a Gym

Roi?
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Old 15.11.2017, 17:11
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Re: Looking for an investor for a Gym

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It's a completely different style of gym. the closest you would probably get in Zurich is Balboa, but they offer no structured schedule, gym access and it's visually very different. Balboa have just opened their 3rd gym in less than 3 years so the the demand is there.

Basically there is a gym in London and one in Helsinki that I absolutely love and really miss both. I want to create a combination of the two with added extras and with the visual aspect (art etc.)
People go to the gym to see art?

I'm not knocking it but just totally alien to me.. I go, knock myself senseless, shower and leave. The only thing on the wall is scuff marks from trainers and med balls.

My concept of a gym is maybe outdated
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Old 15.11.2017, 17:51
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Re: Looking for an investor for a Gym

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Roi?
I am guessing this is a potentially risky area considering the amount of money that the OP wants to spend on the visuals of this "lifestyle gym". The overall costs of this project could be huge, and the membership fees as a result higher than other gyms.

From the OP's description it will look to appeal to only the wealthier members of society thus lower target membership and appeal.
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Old 15.11.2017, 17:52
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Re: Looking for an investor for a Gym

Opening 3 gyms in less than 3 years in a relatively small city is pretty impressive yes. Theirs is a classes only concept and most of their classes are always sold out so it does show there is demand for that style of training.

And As I said, its a new concept and not like a traditional gym and the space is just part of what makes it unique.
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Old 15.11.2017, 17:54
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Re: Looking for an investor for a Gym

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The investment I am looking for is between 150 000 and 250 000 depending on the location and size of the space.
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And As I said, its a new concept and not like a traditional gym and the space is just part of what makes it unique.
That is in addition to what you already have? Sufficient space comes at a premium everywhere
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Old 15.11.2017, 17:55
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Equity % is something I am willing to discuss but i want to maintain majority of stock.

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That is in addition to what you already have? Sufficient space comes at a premium everywhere
And yes that is in addition, the amount required depends on the size and location of the space. i have been viewing spaces for a few months now so I am aware of the costs.

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I am guessing this is a potentially risky area considering the amount of money that the OP wants to spend on the visuals of this "lifestyle gym". The overall costs of this project could be huge, and the membership fees as a result higher than other gyms.

From the OP's description it will look to appeal to only the wealthier members of society thus lower target membership and appeal.
All the financials have been calculated with a memembership cost lower than its main competitors so the concept is not "luxury" for the wealthy only. I believe you can create a visually unique space without blowing the bank.

Last edited by 3Wishes; 15.11.2017 at 21:22. Reason: merging consecutive replies. please use the multi-quote feature (button to the right of quote)
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Old 15.11.2017, 20:37
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Re: Looking for an investor for a Gym

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I got a lot of negative comments here before when I was asking about finding investors, please not this is not my only means of looking for an investor, but there are lots of helpful people here so it's not going to hurt.
Look serious promotors don't go trying to raise founds on some random website. And serious investors know this.

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Equity % is something I am willing to discuss but i want to maintain majority of stock.
And that is exactly why! You're not looking for an investor, you are looking for a business loan...
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Old 15.11.2017, 21:02
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Re: Looking for an investor for a Gym

So you have start up funds and believe in your idea. Yet you know already that you want an investment of 150K to 250K to cover for steady costs.

How exactly would you want to pay back the investor if you are not willing to hand over a majority of shares? This either means your business is worth more than half a million which I deem impossible for a young sportschool in a rental building. Or it means that you think that in some time you will have enough customers to pay for your own life, pay for all of the sportschool, and on top of that give the investor his money back including the nice profit you promised him. But if you fail to get such amount of customers the investor is just in bad luck since there is hardly anything to sell besides an excel sheet with customers and a bunch of second handed equipment.

Lets say a year has passed, the extra investment is used and you have not a sufficient income, then what?
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Old 15.11.2017, 21:21
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Re: Looking for an investor for a Gym

Quote:
So you have start up funds and believe in your idea. Yet you know already that you want an investment of 150K to 250K to cover for steady costs.

How exactly would you want to pay back the investor if you are not willing to hand over a majority of shares? This either means your business is worth more than half a million which I deem impossible for a young sportschool in a rental building. Or it means that you think that in some time you will have enough customers to pay for your own life, pay for all of the sportschool, and on top of that give the investor his money back including the nice profit you promised him. But if you fail to get such amount of customers the investor is just in bad luck since there is hardly anything to sell besides an excel sheet with customers and a bunch of second handed equipment.

Lets say a year has passed, the extra investment is used and you have not a sufficient income, then what?
I am more than happy to discuss the details of the financials as well as the exit strategy for the investor but its not necessarily something I want to post on the Forum publicly.

I have sufficient income from other sources, i believe this has the potential to make a lot of money and i think its a great opportunity for the right person. As i mentioned its one of the fastest growing markets and there is a lot of room for growtj in switzerland.
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Old 16.11.2017, 12:28
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Re: Looking for an investor for a Gym

Payback time? ROI?
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Old 16.11.2017, 13:42
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Re: Looking for an investor for a Gym

IMO, what's missing in Zurich is an easygym.

They've started popping up in London (and under various names) - unmanned gyms, that cost next to nothing (£10-£30 a month). No staff other than the one person running a class during peak hours, otherwise access is biometrically done.

I would sign up for that again...
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Old 16.11.2017, 13:53
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Re: Looking for an investor for a Gym

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IMO, what's missing in Zurich is an easygym.

They've started popping up in London (and under various names) - unmanned gyms, that cost next to nothing (£10-£30 a month). No staff other than the one person running a class during peak hours, otherwise access is biometrically done.

I would sign up for that again...
It may be good for punters, but investors are not impressed by “next to nothing” income - especially when overheads like rent, ultilies and administration are the same as a more expensive gym...
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Old 16.11.2017, 13:57
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Re: Looking for an investor for a Gym

There are a lot of easygym style gyms popping up all over Switzerland now. Basefit and Evofit are just two examples. McFit will be expanding into Switzerland soon.

The fitness industry in Switzerland is definitely ripe for disruption, however it has been experiencing a period of crazy growth over the last five years and there is now significant consolidation taking place (lead by Migros).

As with the restaurant/fast-food industry, 90% of the challenge is in finding the right kind of space at the right location. If you can get an attractive lease and have a concept which differs from the 'discounters' or traditional gyms (looking to London and the US, it seems that boutique gyms with classes are the right way to go) then you are in with a fighting chance.
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Old 16.11.2017, 14:02
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Re: Looking for an investor for a Gym

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It may be good for punters, but investors are not impressed by “next to nothing” income - especially when overheads like rent, ultilies and administration are the same as a more expensive gym...
This isn't true long term.

Initial fixed costs are high (and similar), however variable costs consist mainly of staffing costs.

The reason there are low returns for investors currently is that competing chains are engaged in a price war. This should end soon as the industry consolidates (look at Sweden, Denmark and parts of the US to see how it tends to play out).

The only real economies of scale in the gym industry are in marketing.
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Old 16.11.2017, 17:40
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Re: Looking for an investor for a Gym

I was in the London market for 6 years and as I said above I find the class based structure gyms are really lacking here. The reason turnover from a class based gym is high is because membership costs are much higher than a traditional gym (luxor, holmes place etc), equipment selection is completely different and people can also pay per class or pay in blocks of 5-20.

There isn't a shortage of gyms in Zurich, but I find most of them dated and uninspiring. I also like a holistic way of training so want to have a space where you can obviously challenge your body but that has something for the mind as well. I also like the idea of a fitness community based around your gym, when I go to my London gym I have instructors hugging me and welcoming me back. Here I've been going to a gym for almost a year and I barely get a hello at reception.

Those asking for financial details, happy to provide but everything is variable, depending on the space and location. A large space in a central location has obviously high costs but has the potential to bring in twice as much money than a smaller space in a cheaper location.

Exit strategy wise, if the investor wants out I believe they would break even by year 3 (latest).
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