Starting a personal training business can be a rewarding and fulfilling career path, but it can also be financially challenging, especially when it comes to securing funding. Here are 7 steps you can take to get financing for your personal training business:
Step 1. Create a Business PlanThe first step in getting funding for your personal training business is to create a business plan.
A business plan is a document that outlines the details of your business, including your financial projections and marketing strategy. The following sections are critical to include when putting together your plan:
1. An executive summary: This is a brief overview of your business plan. It needs to include the purpose of the plan, the problem your business will solve, and the solution your business will provide.
2. A description of your business: Details information about your business, such as the products or services you will offer, the target market, and the unique selling points of your business.
3. A market analysis: Add all relevant information about your target market, including demographics, size, and competition. It should also contain a marketing plan outlining how you will reach and engage your target market.
4. A financial plan: It needs to enclose financial projections for the next three to five years, including income statements, balance sheets, and cash flow statements.
5. An appendix: You can add any additional information that supports your business plan, such as resumes, references, and contracts.
Having a solid business plan for your fitness venture will help potential investors and lenders understand your vision for the business and how you plan to make it a success. It will also help you stay organized and on track as you work to grow your business.
Step 2. Consider Your Funding OptionsOnce you've designed your business plan, you can consider your funding options. There are several options for funding a small business, including:
• Loans: Many types of loans are available to small business owners, including traditional bank loans, Small Business Administration (SBA) loans, and alternative loans. Research the different options to find the one that best fits your needs.
• Grants are financial awards given to small businesses and entrepreneurs to help them start or grow. There are many grants available, but they can be competitive, so it's essential to research and apply for as many as you are eligible for.
• Investments: If you are looking for more substantial funding, consider seeking investors. This can be a good option if you have a solid business plan and are confident in generating a return on investment.
• Crowdfunding: Crowdfunding platforms, such as Kickstarter and Indiegogo, allow you to pitch your business idea to a large number of people and ask them to contribute small amounts of money to help you get started.
• Personal savings: If you don't have any luck with grants, loans, or investors, you may need to use your savings to get your business off the ground. It can be risky, but it may be worth it if you are confident in your business idea and have a solid plan.
It's essential to carefully consider your options and choose the best funding type for your personal training business. In the following paragraphs, we'll look at each of the above in more detail.
Grants and Financing ProgramsIn this step, let's look at how you can get funding for your personal training business via grants and financing programs. Many grants and financing programs are available specifically for small businesses and entrepreneurs. Some examples include:
• Small Business Innovation Research (SBIR) program:This program provides grants to small businesses to help them develop and commercialize new technologies.
• Small Business Technology Transfer (STTR) program: This program provides grants to small businesses to help them develop and commercialize new technologies in collaboration with a research institution.
• Microloans are small loans, usually less than $50,000, designed to help small businesses and entrepreneurs get started or grow. Non-profit organizations and community development organizations typically offer them.
• Community Development Financial Institutions (CDFI) Fund: The CDFI Fund provides grants and technical assistance to CDFIs, which are private financial institutions that provide financing and financial services to underserved communities.
• Local grants: Many local governments and non-profit organizations offer grants to small businesses and entrepreneurs in their communities. Check with your local chamber of commerce or economic development office to see what options are available.
It's essential to research and carefully review the eligibility requirements for each program to ensure you are a good fit. Also, be prepared to provide a robust application and meet any conditions necessary to receive the funding.
Seek Out InvestorsIf you are looking for more substantial funding, consider seeking out investors. This can be a good option if you have a solid business plan and are confident in generating a return on investment. There are several types of investors you can approach:
• Angel investors: Angel investors are high-net-worth individuals who invest their own money in start-ups or small businesses in exchange for ownership equity.
• Venture Capital Firms: Venture capital firms invest in businesses with the potential for high returns, usually in exchange for ownership equity.
• Crowdfunding platforms: Some crowdfunding platforms, such as Seedrs and AngelList, allow you to pitch your business idea to many investors and ask them to contribute money in exchange for ownership equity.
When seeking out investors, it's crucial to have a strong pitch that clearly explains your business idea, how it will generate revenue, and how it will provide a return on investment. It would be best if you were also prepared to answer questions about your business and provide supporting documents, such as financial projections and a marketing plan.
Remember that seeking out investors can be time-consuming and competitive, so it's essential to be patient and persistent. It may take time to find the right investor for your business.
Use Your Personal SavingsYou may need to use your savings to get your business off the ground if you are still looking for grants, loans, or investors. This can be risky, but you may not have another choice. Before using up your savings, it's imperative to double-check that your business plan is solid and that you have calculated everything to prevent surprises.
Using your savings to fund your business has both advantages and disadvantages. On the one hand, you won't have to worry about paying back a loan or giving up ownership equity in your business. On the other hand, you will be putting your financial security at risk if the company doesn't succeed.
Before using your savings to fund your business, carefully consider the potential risks and rewards. Make sure you have a solid business plan and are confident in generating a return on your investment. It is also a good idea to consult with a financial advisor or attorney to get guidance on the best action.
Get a Part-Time JobHere, we're moving onto ideas that can temporarily ease financial pressure to help you focus on what you want to do with your personal training business.
If you are struggling to find funding, you may need to get a part-time job to help support your business until it becomes profitable. This can help you cover your expenses and give you time to focus on building your business.
There are several advantages to getting a part-time job while starting your own business. First, it can provide a stable source of income to help you pay your bills and support yourself while you build your business. Second, it can give you valuable experience and skills that you can use to benefit your business. For example, if you get a job in customer service, you may improve your communication and problem-solving skills that you can use with your clients.
Keep in mind that getting a part-time job can also be a time-consuming and potentially stressful experience. It's essential to strike a balance between working on your business and a part-time job so you can stay calm and relaxed. It is also helpful to set clear boundaries and communicate with your employer about your business commitments.
BONUS Step: Use Online Personal Trainer SoftwareOne of the best money-saving steps you can take when launching a hybrid or online personal training business is to use online personal trainer software to take care of all the little repetitive tasks you'd be performing.
Whether checking in with your clients regularly, onboarding new participants to your service or designing and delivering workout, nutrition and habit coaching plans, PT Distinction will take care of it all. Learn how to manage your time and increase your earning potential early by employing automation via an online fitness coaching app.
In SummaryWe covered many grounds in this article, so let's look at all your options regarding sourcing funding for your personal training business idea:
• create a business plan
• consider your funding option
• look for grants and financing programs
• seek out investors
• use your personal savings
• get a part-time job and
• be patient.
It's essential to do your research, have a solid business plan, and be persistent as you work towards securing funding for your business. Keep in mind that starting a business can be a long and challenging process, so it's essential to stay focused and motivated as you work towards your goals.