If you’re thinking about starting a micro-gym, and you’re asking yourself how much cash you need to open it up, keep reading.
You need 25,000 dollars in cash before you even considering opening a gym.
“…The less cash that you have in the beginning, the more risk that you have of going bankrupt. So, if you don’t have cash, remember that equals bankruptcy. So you have to have cash to pay down the monthly expenses that you have such as rent, utilities et Cetera.”
Having this amount of cash on hand allows you some space to breathe and maneuver should have experience difficulty in acquiring clients in your first year of operation. After all, you need to be able to pay rent somehow. Essentially, the 25 grand serves as insurance and protection for yourself. It’s deeply unwise to acquire dent or borrow money in your first year of operation, especially if your model does not provide
“Now, keep in mind it could be less, it could be more, but what you need to have is a runway of cash so that you can be open for nine to twelve months in my opinion, without actually bringing revenue in. Do I expect somebody to bring no revenue in for nine to twelve months? No, I don’t but you have to have enough cash just in case something goes poorly so that you have enough cash so that you don’t go bankrupt.”
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