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We can help your borrowers better understand their market, industry, and financials. ASBTDC offers one-on-one consulting services for current and prospective small business owners at no charge. Training and market research are also available. Our goal is to equip business owners with the information, guidance, and tools they need to make better business decisions.
800.862.2040
501.683.7700
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12 Ways
ASBTDC Can Assist Your Customers
· Market information
and research
· Site selection
· Financial benchmarks
· Industry trends
and outlook
· Business planning
· Expansion planning
· Ratio analysis
· Marketing
· Projections
· Training (classroom and online)
· Website optimization
· Loan proposals
asbtdc.ualr.edu
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FAQ
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The Frequently Asked Questions on the ASBTDC website give your small business clients solid information fast. Refer your customers to more than 40 small business FAQ on starting a business, financing, purchasing an existing business, and other topics. Here's a sample:
QUESTION: Is it possible to get 100% financing for my business?
ANSWER: No, it is extremely rare to see a small business obtain 100% financing from a bank. Banks don't issue 100% financing for businesses because it places the entire burden of the risk on the bank. They prefer if the owner shares some of the risk, thus most banks will require the individual to cover at least 20% of the financing cost to start their business. Some banks will require an even larger owner equity injection depending on the industry or type of business.
asbtdc.ualr.edu/faq
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The Arkansas Small Business and Technology Development Center is funded in part through a cooperative agreement with the U.S. Small Business Administration through a partnership with the University of Arkansas at Little Rock College of Business and other institutions of higher education. UALR is committed to the policy of providing equal opportunity for all persons and does not discriminate in employment, admissions, programs, or any other educational functions and services on the basis of sex, age, disability, race, and national origin, color, or religion. |
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Fact: Fitness patrons are rarely willing to drive more than 15 minutes to their facility of choice. (First Research)
Fitness centers look to capitalize each January on a trifecta of well-documented behavioral patterns: holiday eating, abbreviated vacation time,
and New Year's resolutions. To get ready, many gym managers are currently running maintenance checks on equipment, planning family programming for school holiday breaks, and shoring up their staffing schedules for the heavy use their facilities enjoy every new year.
Not surprisingly for this industry, cash flow is seasonal, with highest revenues in the first quarter. In addition to the ongoing membership dues (typically paid monthly) that account for 65 to 70 percent of revenue, initiation or joining fees for new members account for the upsurge. Other secondary sources include sales of clothing and equipment, personal services (fitness training, massage, and children's programming), and food purchases.
The industry is fragmented: while it includes about 22,000 organizations, only a few dozen of them own more than 10 centers. Small companies can enjoy competitive advantage with an advantageous location and effective marketing strategy. Convenience is a major factor: health clubs typically draw members from within a 15-minute driving range. Fitness is a capital-intensive industry; fixed assets typically range from 60 to 65 percent and challenge management with constant "lease or buy" decisions.
Fitness centers can capitalize on several current trends:
- Concerns about childhood obesity among parents, coupled with budget cuts for physical education in schools, can position fitness centers to attract families through after-school programming.
- Corporate partnerships allow gyms to recruit new members at discounted rates while allowing participating businesses to offer benefits to employees at little direct cost.
- As the population ages, baby boomers' expectations of fitness facilities shift from vanity to health. Programming centered on core training, balance, and flexibility attracts a market segment that generally delivers higher customer retention rates than the industry average.
If this is the kind of research you would like to see from your customers in a loan package, please refer them to the Arkansas Small Business and Technology Development Center.
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Extreme Image Fitness
 Four years ago, Josh Hines spotted a building along a well-traveled business route in Magnolia that had once housed a grocery store and saw an opportunity. He contacted the ASBTDC at Southern Arkansas University, where Paul Considine, since-retired ASBTDC center director, helped Hines develop a business plan to rehab the building to house a fitness center. Hines was able to secure SBA financing through Peoples Bank in Magnolia and opened Extreme Image Fitness Center in May 2007. Today, Hines and his wife April run the facility, which features a 3,000-sq.ft. fitness room, personal training, a full schedule of classes, massage therapy, a shake bar, and fitness merchandise.
Extreme Image Fitness Center
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Help Local Small Businesses and Build Your Brand with Sponsorships
Whether their New Year's resolution is to start a new business or take advantage of new opportunities through expansion, small business owners need financing to succeed. The ASBTDC appreciates the many lenders across the state who assist small business owners in their endeavors.
Make a difference in your community by partnering with the ASBTDC to provide small business people with educational and networking opportunities to help build their businesses. Co-sponsoring ASBTDC events can be an excellent way for lenders to build relationships with small business owners in the community, which in turn can build your client base. Contact Shannon Roberts, ASBTDC training manager, today to discuss sponsorship/co-sponsorship opportunities for 2011.
Shannon Roberts
sxroberts@ualr.edu
501.683.7700
THANK YOU to all the lenders and banks who supported ASBTDC programming in 2010 as co-sponsors!
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