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Creating Smart Fitness Solutions

Starting a Personal Training Business Part 2: Securing Funds

Securing Funds for Personal Training Business


Securing funds is almost the most important piece to starting your personal training business besides of having clients.  They both go hand in hand.  You need clients for money but you need money for clients.  You can find out more about different types of loans and other business information on the SBA website.  I will go over some of these options but before discussing these, you should ask yourself a few questions first.

Questions to Ask Yourself

What do you need the money for?

How much money do you need?

How long will it take you to pay it back?

How much collateral, if any, do you have to put up for the loan?

How quickly do you need the money?

 

The first option that I will discuss is getting a personal loan or credit card and the second option involves getting a small business loan form a bank.  

Option 1: Getting a Credit Card or Personal Loan

These methods are simple as long as you have an average credit score.  With a great credit score lets say 750 or higher, your interest rates should be low.  The percentage rates vary between 11.9-24% from excellent to rebuilding credit according to Capitalone.com.  The actual rate will vary.   You can also choose to get a personal loan.  The amounts and percentage rates vary depending on your credit score and if the loan is unsecured or secured.   According to the Wells Fargo calculator, the amount you can borrow for an unsecured loan is $3,000-$1000, 000 and for a secured loan its $3,000-$250,000.  These options might be the best way for you to start if you’re not comfortable going a more conventional small business loan route. 

Option 2: Small Business Administration Loans

There are multiple types of loans that you can apply for under the SBA.  Listed below are the different types of loans and a brief description.  To get more info check the SBA. 

7(a) Loan Program: These loans are basic and can be used for general business purposes such as; working capital, equipment, building renovation, etc.…

Microloan program:  These loans can be used for general business purposes such as; working capital, equipment, building renovation, etc.… but cannot be used to pay existing debts or purchase real estate.

CDC/504 Loan: Program provides businesses with long-term fixed-rate financing for major assets, such as land and buildings.

Loans for Women-Owned Business:

If you are a women owned business you have resources that you can apply for.  More information can be found by visiting the SBA website. 

Alternative Loans and Funding

There are plenty of other alternative methods of funding which can be found on these websites:

Lendio.com

Kabbage.com

OnDeck.com

Gofundme.com

Kickstarter.com

Indiegogo.com

As you can read, there are multiple ways to get funding and it all depends on your business plan.  There is no right or wrong way to achieve funding, just as long as it works for you.  If you’re just starting out in the fitness world, I would suggest to start small and work your way up.  This way if you don’t succeed with your first business plan, you’re not out too much money, just time and hard work.  Starting your own business is not easy and you will most likely fail one way or another but always learn from your mistakes and keep pushing forward. 

More blogs in Starting a Personal Training Business:
Whats Types of Businesses
Securing Funds
Website Design and Search Engine Optimization (SEO)
Marketing and Advertising
In Home Personal Training
Negligence and Personal Injury Lawyer
Online Personal Training
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