MAW Boxing
Launching a boxing gym in East London
OVERVIEW
Experienced boxing fighter and coach Mark Walker wanted to launch boxing gym in East London. A few years ago he had planned to launch a gym but backed out because he felt that the investors were not offering him a fair deal. The crux of the issue was his lack of understanding of the business model. Having spent 20-years in the industry Mark knew all of the details but not the financial projections. The investors made their own, less optimistic, financial predictions and Mark was unable to put forward a strong counter argument. This time, Mark came to us and together we developed a model that, by the time he met with investors, he knew inside and out. He’d played out every scenario and adjusted every input, so he knew exactly how robust his projections were and what targets he needed to hit.
Sector
Fitness
Deliverables
7-year financial model
Outcome
Investment secured
Mortgage approved
Business launched
"
It has been my dream
to open my own gym.
Thank you for helping me
make it happen.
"
Mark Walker
Founder & CEO
DETAIL
The fitness space in London is busy. There is a lot of competition and margins are tight. Making the right decisions at the planning phase is vital to success.
One of the key decisions that Mark needed to make was whether to lease or purchase a studio and whether to go for a 1-room, 2-room or 3-room property. More rooms means more classes and enables the gym to offer other additional services such as physio or personal training. But more rooms also means higher operating costs, a larger mortgage or higher rent, greater setup and refurbishment costs, and more staff members. So even though more rooms means more revenue it doesn’t necessarily mean more profit. It also might affect how long it takes to get into profit which affects how much investment the business needs and when investors will see a return.
Modelling the different scenarios using industry data as well as Mark’s experience of working in gyms enabled Mark to make an informed decision as to which property to select and whether to lease or purchase the site.
