Starting Off

It's time for Kelly to start her own small business; a health club franchise. What advice does Dave have for her?

QUESTION: Kelly and her husband want to open their own franchise health club business. They have no debt and live in an apartment and want to figure out the best way to go about this. They have $70,000 saved up and will work on this business together. They both have other jobs as well. What’s the best way to get this started?

ANSWER: I would highly recommend you not go into debt to open a franchise business. It would be especially true in the health club field; because health clubs come and go like restaurants. You can open a gym without a franchise. As far as starting, start with fewer pieces of equipment. Being in debt when you start a business will cause you to fail. It’s absolutely vital that you don’t borrow money to do this. You have to get in there and make things happen for this to succeed.