Starting a business

P

PamelaRodriguez

New member
Aug 21, 2013
9
0
0
Hello to all.
I am living in US (plan on living in Santiago area at some point) My friend (already in Santiago) is a trainer in a gym and wants to open his own. We have the location already but we need money for the equipment to get it started. Any suggestions on how to do this? How is it to get a bank loan at a Dominican Bank?
Suggestions appreciated or investors as well!!
 
P

PamelaRodriguez

New member
Aug 21, 2013
9
0
0
Thanks, sorry was stuff like this already posted? I just joined (although have read on here frequently in the past..) do you know if it is easy to get a loan there for Dominican citizens or is it easier for Americans? I already told him to head out to banks, I don't know if it's easier for him to get with me or alone.
 
M

MJSantoDomingo

Bronze
Apr 13, 2011
680
0
0
If you do not already have enough money for equipment, then I suggest you wait until you have saved up enough money for ALL the start up costs. And even then, make sure you have a solid business plan that shows a profit after all potential expenditures (including months when gym memberships are low or have dropped). Then add a little more to your "start up" savings for all the things you do not even know about yet as expenses.
A gym, especially the typical DR privately owned gym, is not a business where you want too many "partners" splitting the profits.
And - do not get a loan!
Matilda's blog has some good pictures of gym equipment that you could do yourselves that would be very inexpensive :)
 
P

PamelaRodriguez

New member
Aug 21, 2013
9
0
0
That is true it's really better to have less "partners" than more. Loans at banks in DR are bad? I guess the interest rate would vary, but is it that different than in US? Matilda's blog? do you have a link to it? Thanks!
 
M

MJSantoDomingo

Bronze
Apr 13, 2011
680
0
0
Here is the link to the DR1 thread that gets you to Matilda's blog: http://www.dr1.com/forums/living/119407-matildas-blog.html

But I meant that humorously, because she shows pictures of a "gym" her husband made with concrete in cans and buckets and wood set up as "benches and work stations".

If you have a loan in the DR, and the business goes under and you can not pay - they will come after everything you own!
 
P

PamelaRodriguez

New member
Aug 21, 2013
9
0
0
Oh, yes, my daughters uncle had a gym like that over there already, he made all of the equipment himself.. jajaja. We want something more professional though. I look through places here for used things but wonder how much shipping would be for all of that so need to weight the costs with the advantages. it will happen eventually with in the next year, hopefully the location will still be there. it's almost worth to just rent it now and fill it as we go along..lol
 
C

Chip

Platinum
Jul 25, 2007
16,772
429
0
Santiago
Pamela

Yes business loans can be obtained here, I know various Dominicans that have obtained them. You will need to have an established credit history like in the US.

Regarding a gym, there are a lot of considerations, like you will need to know your target demographic and will need a place with sufficient parking. For example, gyms run from RD25 a day(RD500 a month expected?) to upwards of RD1500 for gyms that have memberships.

Regarding equipment, the best option would be to get a tax exemption to bring the equipment from the States and bring it in a container as gym equipment is a luxury item and priced accordingly.

Also, there is the option of having it made locally. If your target demographic is on the lower end this would be acceptable for 90% of the equipment, less the aerobic equipment. The club I go to in Gurabo has this type of equipment. It is club Mambuiche on Carr. Turistica. They don't have a phone but you can visit them.
 
Last edited:
P

PeterInBrat

Gold
May 29, 2006
10,265
200
0
PamelaRodriguez said:
Hello to all.
I am living in US (plan on living in Santiago area at some point) My friend (already in Santiago) is a trainer in a gym and wants to open his own. We have the location already but we need money for the equipment to get it started. Any suggestions on how to do this? How is it to get a bank loan at a Dominican Bank?
Suggestions appreciated or investors as well!!
Click to expand...


Do you have location? Know what your start up costs will be with a break down of where you get your equipment and price per piece of equipment? Have a business plan with expected costs, revenue, break even point, time to pay back a loan? Experience working in the industry or running your own business? Have equity in the DR that can be used as collateral?

An idea without a plan is just a dream.
 
C

caribeman

Member
Dec 26, 2011
293
0
16
Enjoy meeting new people/cultures
My $.02 worth. If you have any assets - home/car/moto etc in the US. Leverage against those if possible to fund your venture. My experience with partners is they get the benefit and you get the debt and problems. Unless there is a longstanding deep business relationship - proceed prudently with attorneys, accountants and lots o paper work.

I would search for the cheapest, most visible foot traffic location where you could get a sign up for all to see. SCOUR the country for a failed Gym venture. Get the equipment for cents on the dollar and go from there. Limit your exposure at every turn. Costs, liabilities, expense...

I personally would not saddle myself with potential high interest loan debt from inside the countries banks. Some banks are great - but a loan is a loan is a loan.

I would pay someone a few pesos to go sit nearby whatever gym is most popular - See how many people come and go? What days? If it does not matter if it makes money that is one thing. Otherwise you need to know if you are going to be upside down in a matter of months or years.

Good luck. Great place to live, work and yes -- play too.
 
Last edited:
P

PeterInBrat

Gold
May 29, 2006
10,265
200
0
Looking for a failed gym is a pretty good idea, esp if it's obvious that it was the management/owners who ran it into the ground and not because of bad location, rent, or lack of infrastructure. While you're still in the States, go to a gym and do a breakdown of everything they put into the location. Padded floors, security, equipment, hand wipe station, mirrors, shower and bathroom, signage, etc. On the downside, it's not unusual for Dominican business owners to want full retail price for used equipment and sometimes even a profit. In most businesses, the rule of thumb is you pay a quarter of retail when liquidating or half price if going through a middleman.
 
P

PamelaRodriguez

New member
Aug 21, 2013
9
0
0
Thanks Guys, all good advice and stuff to think about. I will be looking into some things when I go down next month. Yeah I don't want a bank loan and neither does he, but he will do it if he has to.
 
P

PamelaRodriguez

New member
Aug 21, 2013
9
0
0
He knows the business and has a large client base already. He works at a gym already and I am sure his clients will follow him. I am sure it will be successful. I was just curious how some things worked over there.
 
C

Chip

Platinum
Jul 25, 2007
16,772
429
0
Santiago
I personally would be very wary of buying an existing gym. It probably has no parking or a bad location. Dominicans aren't going to be too concerned with the equipment or the surroundings.
 
J

jabejuventus

Bronze
Feb 15, 2013
1,437
0
0
Chip said:
Pamela

Yes business loans can be obtained here, I know various Dominicans that have obtained them. You will need to have an established credit history like in the US.

Regarding a gym, there are a lot of considerations, like you will need to know your target demographic and will need a place with sufficient parking. For example, gyms run from RD25 a day(RD500 a month expected?) to upwards of RD1500 for gyms that have memberships.

Regarding equipment, the best option would be to get a tax exemption to bring the equipment from the States and bring it in a container as gym equipment is a luxury item and priced accordingly.

Also, there is the option of having it made locally. If your target demographic is on the lower end this would be acceptable for 90% of the equipment, less the aerobic equipment. The club I go to in Gurabo has this type of equipment. It is club Mambuiche on Carr. Turistica. They don't have a phone but you can visit them.
Click to expand...

Hi Chip. With respect to the OP, my wife and I will be trying to take advantage of the Exonaracion de Mudanza sometime this coming Feb. We have plenty of personal exercise equipment, i.e., Gazelle, gravity table, massage table, Pilates Gym, and etc., and been wondering if these would be exempt under the law (miesposa es Dominicana). Yes or no? Thanks.
 
M

Matilda

RIP Lindsay
Sep 13, 2006
5,485
338
63
I opened a gym with my husband (Dominican) here in Juan Dolio. Thought I knew about gyms and running businesses. I didn't know enough about the DR though.

1. I said we needed showers and changing rooms. Husband said not. I insisted. They were a waste of money and never used as most people did not use them - went home to shower.

2. We had over 300 members. Wow I thought. No direct debit system here. They had to physically pay each month. No money one month, they didnt pay.

3. Staff stole money - as we couldn't be there all the time

4. Bought all the equipment from place in the capital - very good prices but can't remember the name - sorry.

5. Peso went up to 50 odd to the dollar from 14 when we started gym. Rent paid in dollars for the building - income in pesos. Ooops.

6. Gym closed, sold equipment for more than we paid for it. Would I do it again? No. The lack of direct debit really makes it hard to forecast cash flow.

PM me if you need to know more.

Matilda (who will now stick to home made gyms!)
 
J

jilly777

New member
Jul 17, 2013
171
0
0
here is my two penneth....just wondering....before you start borrowing money
How well do you know the trainer/potential business partner?...why does he need a business partner if he already seems to have a large following client base?
Why cant he apply for a loan himself?
If you are going to take the plunge then perhaps you should consider both getting loans and going 50/50....just in case things go bad
There is some sound advice coming from members on here.....worth taking heed.
Hope your venture gets underway and things go well
 
You must log in or register to reply here.
Top Bottom