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The Fitness Coalition, Fairfield

BACKGROUND
The Fitness Coalition is a personal training center established in January 2012 in the client’s garage. Classes and clients began almost immediately rain or shine. The goal was to expand the business into a larger space and become a CrossFit Affiliate gym. Clients visited many other CrossFit gyms and CrossFit events and sought out advice from successful CrossFit gym owners.

CHALLENGES
Joey Hoey started dreaming about having a CrossFit Affiliate gym and filed his DBA in late 2011. Initially he only had the basic equipment in his 235 sq ft studio accommodating 1-3 athletes safely per session. He wanted to open and operate a full size CrossFit gym within a year or so.

Joey didn’t have gym management experience so he also began interning at a successful CrossFit gym to learn the tools and management of a membership driven business. 

Both clients, Joey Hoey and Bryan Boudreaux, completed their training and are now CrossFit Level 1 Certified Trainers.  

Clients needed to work on market research, get licensing, look at legal structure and insurance, open a bank account, develop their goals and marketing strategy and do their financial projections.

ACTIONS
After meeting with Business Advisor, Sandy Stelter, clients decided to enroll in the 11-week NxLeveL Entrepreneurial Training class offered through Solano College and Napa Valley College SBDCs. Through the NxLeveL program, the clients put together their business plan and determined their financial needs for leasing a larger warehouse space. 

They began researching warehouse space on the west side of Fairfield, Ca since a similar gym already existed on the east side of the city.  Clients purchased the domain www.TheFitnessCoalition.com and determined that Facebook was an integral part of their marketing strategy. Next to word of mouth, Facebook has been the most effective form of marketing.

RESULTS
Clients determined that they would initially need a loan of $35K along with $12K of owners’ equity and $10K of private capital. Clients were each gifted with $20K from each of their supportive families.

Clients negotiated a favorable lease payment for 1200 sq ft warehouse space which includes 3 offices areas downstairs and 1 large office or training classroom area upstairs. The Fitness Coalition moved in and started painting and setting up in February 2013. Clients have already increased their membership by 175% since moving into the larger space. They expect additional memberships once they host their open house in April 2013. 

“NxLeveL gave us a way to shape our ideas and turn them into reality so we could get them down on paper and formulate a plan and hook us up with the right individuals that we needed in every different  aspect of the business world: finance to marketing. Helped us learn new techniques and brush up on the ones we thought we knew but really had no idea about until we learned from somebody that's been doing it for a long time. I'm completely satisfied with NxLeveL and the money was well spent and in my opinion it was a small price to pay ... an investment. Especially if you have a passion for what you're trying to do and you really want to formulate that into a possible career path. Going to NxLeveL allows you to determine if this is something that I can actually do for in the future or is this just a cool idea for a hobby? If you do decide to do it as a career path, you have every tool you need and having you guys at our call and all the information you had and checked in with us about the progress we made it a lot easier. I don't have any idea about finance, I just call you guys and there you have the information... talk to this person and the SBDC has all the right connections for us. I credit a lot of what we did to the SBDC because without it we would have been fishing in the big pond not really knowing where to go. Keeps you accountable, it keeps you on task and on top of learning a lot from the class, just having someone there to push you and wanting to know where you are in the process really keeps you on track. Once you finish the class and have put your heart into it, you leave the nest and are well on your way to fly. We've done a lot since completing the class but I feel that we've saved months if not years not spinning our wheels by going to class, learning and staying on track!”

Company Name: The Fitness Coalition, LLC
Owner(s): Joseph Hoey and Bryan Boudreaux
(707) 365-4768
JosephMHoey@gmail.com
TheFitnessCoalition.wordpress.com