SGV SBDC Matches LA Boxing with Bank for Business Loan
SGV SBDC Matches LA Boxing with Bank for Business Expansion Loan
Anthony Geisler’s success with a rapidly expanding franchise of health and fitness clubs, LA Boxing (www.laboxing.com), was the very reason he sought help from the SGV SBDC hosted by Mt. San Antonio College. The 31-year-old entrepreneur had converted a grimy gym into a top-of the-line, nationwide franchise, but five years of self-financing left him with skimpy cash reserves.
To improve his cash flow and expand further, he sought help from SGV SBDC consultant Jerry Boykin and obtained an $850,000 loan for equipment and operating expenses.
“The loan provided cash for boxing rings, gloves and steel cages for the heavy bags,” Geisler said. “It also improved the company’s cash flow and really improved my sanity.”
A USC Entrepreneurship program graduate, Geisler previously started Internet-related companies. He was just seeking a good workout when he came to the existing LA Boxing gym in 2002. The run-down gym, operated for 12 years by dedicated fighters, focused on boxing training and conditioning. Geisler immediately saw the franchise potential – if the gym were spruced up, run professionally and targeted to a suburban market.
As the new owner, Geisler sold his home and cars to open new gyms in Alisso Viejo and Fullerton in 2003. These became franchise models, with the first franchise opening in Albuerquerque, New Mexico, in 2005. Others soon followed, until Geisler realized his self-funded, rapid-growth mode left him small margins for unexpected contingencies.
So, he sought help from Boykin, who provided a loan-preparaton checklist; coached Geisler on financial projections, narrative and uses of money that would satisfy banks and the Small Business Administration (SBA); and referred him to bank loan officers.
“We had to reinterpret his needs in a way that the bank and SBA could fund it,” Boykin said. “Although health & fitness clubs were pretty common, boxing gyms weren’t.”
With the loan, Geisler now has an inventory of equipment to sell to future franchise operators and boxing gloves to customers. LA Boxing’s growth to 104 locations makes it part of just 18% of franchises with 100 or more locations. Stories have run in Inc., Entrepreneur and Muscle & Fitness magazines and Geisler was honored in March 2008 at USC for his entrepreneurial success.
“The SBA loans have been a process that’s worked for LA Boxing,” Geisler said. “I know 8 to 10 of my franchisees who funded their store start ups through the SBA, I’ve got a franchisee now looking at an SBA loan, and we were able to fund our expansion.”
Sidebar quote:
“The SBA loans have been a process that’s worked for LA Boxing.” Anthony Geisler, LA Boxing Franchise Corp. Santa Ana, CA
Anthony Geisler - President - LA Boxing
Anthony Geisler
Anthony went to school at the University of Southern California, and graduated in 1999. He received the Entrepreneur Spirit Award from the Lloyd Greif Center. He has been asked every year since he graduated to speak to MBA students and undergrads at USC. In 1999, he founded Internet Management Marketing Group (IMMGNet), a company which procured domain names and developed web based marketing campaigns for the entertainment industry.
He later sold this company in 2001. In January 2000, he formed Interactive Solutions Corporation (ISC), which developed web based casino games for Las Vegas and Atlantic City Casinos. At its height, ISC was a 170 million dollar public gaming company, with a board of directors that consisted of state assembly persons, the former CEO of Trump, and other high-profile political and casino figures.
In early 2002, he became a member of LA Boxing in Costa Mesa, CA. In October of 2002, he purchased LA Boxing Costa Mesa, and within the next year opened LA Boxing of Aliso Viejo, CA and LA Boxing of Fullerton, CA. In February 2004 he created LA Boxing Franchise Corporation, and later that year began advertising the LA Boxing franchise opportunity.
Please visit www.LABoxing.com for more information.
07/16/2008 01:59 PM - 3878 - 07/11/2008 03:24 PM |
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