Opening a spin studio is no easy task. It takes a lot of hard work, determination, and money. Financing your spin studio, however, is a unique way of offsetting the immediate costs.
The startup costs for an average size spin studio include the property for your studio space, hiring instructors, marketing, and of course, the equipment. In the beginning stages of opening your spin studio, you’re probably going to be spending the largest chunk of your money on your bikes.
Let’s say your studio is around 1600-1700 square feet (an average sized spin studio in the U.S.). With a space that size you can fit around 120 bikes. This is essentially optimal to get the highest return on your purchase. The cost of these bikes will probably equal to about $60,000 if you are purchasing quality bikes. While bikes are important, they aren’t the only equipment you’ll need to purchase. You’ll need to consider equipment like weights, balls, towels, mirrors, and software. Estimate these additional equipment costs at $15,000 you are looking at a startup cost for all your equipment to be about $75,000. This is only an estimate – the price could easily vary depending on the size of your studio and quality of your equipment.
This kind of cash can be difficult to come up with especially up front and in a limited time frame. Getting creative with financing options is a smart way to help pay for the equipment you need to open up a successful studio. Worried about how you’re going to finance the costs? Try some of these creative financing options for purchasing your spin studio equipment.
Lease Your Studio Equipment
When you’re buying spin studio equipment, there are two options—paying for it upfront or leasing it. While there are obvious benefits to owning a set of bikes and not having to worry about making payments every month, leasing is a great option for those on a budget. Not only are there leasing plans from third-party spin studio equipment companies, you can find a better deal by leasing your equipment directly from the manufacturer. In addition to leasing spin bikes, there are many plans that allow you to lease other studio equipment. Think speakers, ATV systems, and furniture. By leasing your spin studio equipment, you save the cash or credit for other starting costs. This can help in the case of an emergency, too.
Sell Branded Gear
A great way to increase your revenue and membership signups is to sell your brand. Sell branded items like workout shirts, water bottles, or drawstring bags to start. It’s a great way to earn extra money while building brand loyalty.
You’ll need to make sure that the gear you’re selling is something people will actually want to buy. Stick to athletic gear made out of high-quality materials, and spend time designing your logo so it’s eye-catching.
Aside from selling promotional clothes and supplies, consider having additional options for clients to purchase. Think rental spin shoes, protein drinks, protein bars or healthy, prepared meals.
Crowdfunding is an easy creative financing option you can use to help you purchase your spin studio equipment. There are several platforms like Kickstarter and GoFundMe that allow you to create a profile and start crowdfunding for free. Market your crowdfunding with a unique angle like “First spin studio in the neighborhood,” or “Entrepreneur opening unique workout experience.” Sharing your crowdfunding page with your friends, families, and other local business owners is a great place to start. While you may not necessarily raise every penny you need to finance your spin studio equipment, generating interest can offset some of your costs.
With a little creativity and some elbow grease, you can find unconventional options to help you finance your spin studio.