Check out this great little video of Robb speaking about his book The Paleo Solution!
Looks awesome – cant wait to order it! And of course read it!!
Nicki I have a separate question about the business side of things. A friend and I are in advanced talks to open classes (2 per week for a total of 8 hours per month) at a local martial arts gym here in Israel. We have negotiated no rent, but a 70-30 split with the owner of the gym, who sees his initial investment (he is building and installing the pullup bar, among other things) as an opportunity cost.
My question revolves around the notion of pricing and profitability.
Obviously no one is getting rich right out of the gate, but even in best case scenario modelling, we can fit 15 participants in the box and we are pulling in 3750 Shekels month (about $1000 USD) so he gets about $300 while we split the remaining $700. At $350 each, that works out to about $80per hour.
My question to you is twofold:
1.) Is this in the ballpark of viability/feasability dollars-wise?
2.) What is our next step, since moving facilities will require new expenses not currently felt (rent, for one)
We are both hot to trot on this, but trying to remain cool and collected, and turning to this-business experts such as yourself for advice.
I look forward to hearing from you, both on this and on other subjects.
A 70-30 split is a great deal and I think you’d be hard pressed to find a better scenario. No upfront costs/recurring overhead on your part and the owner is investing in the necessary buildouts. You don’t need to secure a lease, pay for utilities, insurance, permits, etc. And ultimately you have the flexibility to move, change your mind, etc (unless of course he is having you sign some sort of agreement that you’ll be there for a specified period of time).
A couple of questions: Are you able to grow here? Is there an opportunity as you get more clients to offer more than 2 classes per week if the demand is there?
You need to ask yourselves what you are ultimately wanting? Your own facility? What would be the cost to rent a similar space of your own, and what are the other overhead costs you would be incurring? Figure out what dollar amount that is. How many clients would you need to just pay overhead? How many clients would you need to cover overhead and pay yourselves the $80/hour that you will be earning currently? What does that time frame look like?
You also might want to make sure any verbal arrangements you are making are in writing…
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