[Pocket PDF] Headframe Strength Gym Business Plan
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Imagine Airin at the gas station in Tonopah, Nevada, standing behind a man in a hi-vis shirt who cannot turn his head to look at the drinks cooler. He turns his whole body instead, like a crane. He is maybe thirty-five, he has just come off a twelve-hour shift in a haul truck, and the nearest physical therapist is a long drive and an unpaid day off away. That moment is where this gym business plan starts, and the first version of it did not survive its own arithmetic.
Read the original story here.
Description
The town this gym business plan starts in
Tonopah sits on US-95 halfway between Las Vegas and Reno, with a little more than 2,000 residents and a median household income of about $37,000 against roughly $81,000 for Nevada. The town hospital closed more than ten years ago. Three small gyms already operate on and around Main Street, none of them with a website or a published price.
What the town does have is work. Kinross Round Mountain employed 880 people and 153 contract workers. The ioneer Rhyolite Ridge lithium-boron project brings 400 to 600 construction workers at peak. Centerra Gold is developing the Goldfield project thirty miles south, Albemarle runs lithium at Silver Peak, and the county, the state road crews and the Tonopah Test Range contractors fill in the rest. Thousands of people work ten- and twelve-hour shifts inside ninety minutes of a town with no clinic worth the drive.
What the first numbers said
Before a lease is signed, we run a break-even model on the main product. It asks a blunt question: add every fixed cost, add the cost of opening, decide how fast you want it back, and how many people have to pay your price for that to happen.
Fixed costs came to about $6,400 a month: rent on Main Street, propane heat at six thousand feet, insurance, software, cleaning, a part-time coach and the loan payment. Opening the doors costs $54,425. At $49 a month, after card fees and taxes, one member leaves about $33.
The answer was 314 members, in a town that can hold about 160. The gym was not a bad idea. It was a bad engine.
