Here is a recent response I gave to someone who requested some information on new club financing. (The names have been omitted to protect the innocent) While brief I thought it might be helpful someone should they stumble across this posting and have similar questions.
Congratulations, on your decision to get involved in a great industry. I'd love to see if I can be of some assistance. There are a ton of opportunities right now to get into the club biz if you know where to look. In spite of the economy people in the know are capitalizing on the supposed downturn and having stellar years while others are struggling. That being said money has definitely tightened up on the institutional side and individual investment has become pretty scarce too. This is especially true for those embarking on their first venture in the industry. Banks and VC money is becoming less risk tolerant.However, it can get done!
One option would be to find a troubled club and negotiate a takeover in which the transaction is exercised for as little as $1 with the new ownership taking on the existing receivables base, assets, and liabilities. Depending on your financial situation this may be the best route. (I have negotiated several of these deals in the past and helped turn the club into a huge success.) There are still some more traditional options out there but in order to do a project from the ground up I would recommend working with a professional who understands all the intricacies of this industry from financing, lease negotiations, location feasibility study, competitive analysis, getting preferred status with vendors, marketing and sales expertise and finally a systematized operational approach.
Please give me a call 404-453-8420 if you'd like to talk more about your project and perhaps I can shed some light on your options.
Congratulations, on your decision to get involved in a great industry. I'd love to see if I can be of some assistance. There are a ton of opportunities right now to get into the club biz if you know where to look. In spite of the economy people in the know are capitalizing on the supposed downturn and having stellar years while others are struggling. That being said money has definitely tightened up on the institutional side and individual investment has become pretty scarce too. This is especially true for those embarking on their first venture in the industry. Banks and VC money is becoming less risk tolerant.However, it can get done!
One option would be to find a troubled club and negotiate a takeover in which the transaction is exercised for as little as $1 with the new ownership taking on the existing receivables base, assets, and liabilities. Depending on your financial situation this may be the best route. (I have negotiated several of these deals in the past and helped turn the club into a huge success.) There are still some more traditional options out there but in order to do a project from the ground up I would recommend working with a professional who understands all the intricacies of this industry from financing, lease negotiations, location feasibility study, competitive analysis, getting preferred status with vendors, marketing and sales expertise and finally a systematized operational approach.
Please give me a call 404-453-8420 if you'd like to talk more about your project and perhaps I can shed some light on your options.
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