NOOB help! SBApatriotloanbusiness idea...

**Spaazkaz** · 05-21-2008 12:50 AM

A buddy just got back from the army and found out he could get some deal through the SBA Patriot loan program. I recently recieved a business degree and my friend wants me to help him come up with something, to make money and build equity. It might be important to point out we are both 22, Im not very keen on how credit works to be honest (im learnin). So Im thinking of buying a house with a barn on the outskirts of the small city we live in, rent out the house and use the barn as the business and turn it into a gym. NOthin high class but i have a bunch of buddies that would join, and i am [confidently] gambling on a unique idea about the gym. I dont know, this is a very spur of the moment idea but im pretty set on starting up a business plan. I guess im askin' for a little guidance from the pros here and my questions are; is a loan for such an idea feasible? Am I on the right track? What would be your next step? Is the idea even worth a hoot? Thank you for taking the time to read my post. -Zack-

**Upperz** · 05-21-2008 06:46 AM

I am not an expert on this, but I see a trend going on, that people want either to pay less for minimum workout facilities, or pay much for state of the art "all drinks for free" personal training gym studios.
I think the money is in the state of the art gym studios, as people want to be proud on where the work out. But then again I am not an expert, and if probably depends on the location.
My suggestion is to do some marketing reserach. And as its a local thing, it will not be hard to do so.

**entrepresooner** · 05-21-2008 10:43 AM

Location is very important for gyms. If a gym is too far out of the way for people they will not want to leave home to go workout. People know this and as such will not want to be a member at a gym they know they won't go to often.

I am getting a membership at gym friday 100% based on its location (directly between work and home, so that instead of fighting the rush hour traffic, I stop and workout 5 days a week). I think that this is true for many gym members.

Not saying I am an authority on the topic, but just thought I would relate my personal experience.

**Spaazkaz** · 05-22-2008 07:01 PM

I think our main source of income plans to be the rental unit... Im more wondering if I can get the loan based on the idea of opening a [small] gym (probably mostly just friends and aquaintances (sp?)) whilst paying for the loan and mortgage from the income from the rental property. Sort of a 2 in one deal. whuddya think.... I had a looong day so pardon me if this doesn't make sense and i will attempt to rephrase. thanks YE! -Spaz-

**jasaunders** · 05-22-2008 09:16 PM

Originally Posted by Spaazkaz

I think our main source of income plans to be the rental unit... Im more wondering if I can get the loan based on the idea of opening a [small] gym (probably mostly just friends and aquaintances (sp?)) whilst paying for the loan and mortgage from the income from the rental property. Sort of a 2 in one deal. whuddya think.... I had a looong day so pardon me if this doesn't make sense and i will attempt to rephrase. thanks YE! -Spaz-

I think not. They're called zoning laws. You can't put a commercial gym on residential property. You would have to have your local AHJ rezone the property to be used for the appropriate type of business you are running.