Assume for me that this isn't a joke; I have enough money to start my own running club/company

Well, what are you going to do for income?

A running club is nothing but a drain on your money. You don't actually add to what you have, just subtract.

So unless you have a very large nest egg, large enough that you can run the club through the interest alone, then at some point the club is going to come to an end.

The Hansons actually own a chain of very successful businesses. The Farm Team existed solely because Nike gave them millions of dollars that they got from their very successful shoe business. A program like ZAP gets donations and runs running camps too.

So you're going to have to find a niche to keep this thing going.

Best of luck in your quest. If you are serious look at what you would need to attract top talent (or at least emerging talent). You will need access to coaching and other experts (doctors, etc). Location and what you expect in return from the runners. Will you supply housing, food, a job or spending money? Who selects the races? Do you get a cut of race awards ($$$). How about shoes, equipment needs? Who will set the workouts? Will you except a runner who already has a coach or wants to coach him/herself? I am not trying to rain on your parade- I would really like to see more of these units set up for emerging athletes, but it is very costly and there is little if any chance of a return for your money or efforts.

I would first create a successful business with a running club made up of employees. Next support top local talent with equipment and travel expenses. If they are successful, build off of that to attract talent straight from college with the resources to spend enough to house, train, and keep healthy the athletes that you support.

One important question is what you hope to get out of it. Is there an ego element? Do you want to be a coach?

Take the Hanson's, for instance. They've given a tremendous amount to the sport. But let's not deny there's some ego gratification for them. They coach and represent all their runners, and the program is "their way or the highway." Doing it like that has meant that it has taken nearly a decade, and a LOT of money, to reach the level of success they're now having. Of course, the rewards are all the sweeter -- they didn't just bankroll an Olympian, they coached and created him.

On the other hand, with many of the other groups out there, the money and the coaching/leadership come from different places. There are many established coaches out there with poorly funded groups that include potential Olympians. You could partner with an existing group and turn a struggling, rag-tag group into a well-funded, very desirable training mecca.

The second option would be far more likely to attract good athletes, produce good results, and get them much sooner. But it might also be a less rewarding way to spend your time and money. Essentially, you might end up as the administrative guy with the check book.

I suggest picking an area of focus. The Hanson focus on the marathon. How about putting together a team to produce great 800-1500 runners. It's also easier to find a sponsor if you have a specific focus.

Also realize that the internet is your friend and its relatively free advertsing. Hanson and Zap are very poor at utilizing the internet to draw attension and income for their teams. A team of athletes who are media savy with blogs and videos would be very big from a marketing standpoint.

What are your short-term goals and long-term goals?

What distance will you focus on?

Will you provide coaching for both men and women?

What area of the country do you prefer?

What kind of marketing skills do you have that will attract the right post-collegiates that will help you meet your goals and perpetuate your plan?

Do you have the skills to weed out the weak and worthless?

Do you have the credentials to draw talent?

Besides money and a comfortable environment what will you be able to uniquely offer these athletes?

Can you provide them with health insurance, travel money, per diem, equipment and the proper training?

It's great that you want to give back to the sport, but what makes you think Phil Knight couldn't snuff out your dream if he feels you are encroaching on his game?

hold the phone wrote:

Take the Hanson's, for instance...the program is "their way or the highway." Doing it like that has meant that it has taken nearly a decade, and a LOT of money.....

Ahhh, the legendary back handed compliment. Only the truely bitter and insincere can master it as well as you.

Perhaps take an established club, such as GBTC (just an example, it could be the Aggies or Florida TC or whichever one appeals most to you), with established coaching and good foundation of membership and build/revive a funded Olympic development program within the established structure. Match your capital and vision with their expertise and tradition. What about funding the women's side of the Hansons so that they can better attract female talent to that program?

Just some ideas that came to mind.

Hayduke wrote:

Ahhh, the legendary back handed compliment. Only the truely bitter and insincere can master it as well as you.

Definitely not intended to be back-handed -- I view the Hansons as role models. It's simply a fact to say that it did take nearly a decade (well, nine years) to produce an Olympian, it did take a lot of money, and the training program is their way or the highway. And I don't think there's any thing wrong with that -- it's you who is inserting a value judgement. But I thought it was important for the OP to consider those facts: if he wants to be the next Kevin Hanson, nurturing a future Olympian, he's going to have think in terms of a significant, long-term committment. If, on the other hand, he views his strengths as organizational skills (in keeping with his MBA) and doesn't have visions of actually coaching future Olympians, then his resources may be better suited to buying into an existing structure.

Don't waste your money. Save the money or invest in a proven business. A running club is a huge risk. You should only in vest an amount of money of you don't mind losing because the chances are you will.

Everyone I talk to who has spent some money on running, track, etc. businesses have failed.

Host a race and everyone wants a free hotel room, a free this a free that. Everyone is pissed that sponsors won't fork up any money. And the sponsors (who are runners too) tell me, "Come look at my books anytime, I have no extra money for sponsorships, I have to pay medical insurance for my employees".

There are no more, I mean zero, profitable free lance video producers or photographers, they all went kaput. The only ones left give away free videos to runnerspace, free pictures to T&FN, etc. The only money they get are from their parents H.R. Block franchises, NYFD retirement pensions, high school teachers pensions, Wall Street sales job, an engineer with $millions$ in cable modem and laser optical transmission gizmos stocks, hubbies, State Forest Service, wives, trust funds, plus most have a full time weekday job.

The outlook for a running biz is not good. Try a Dominoes Franchise (founded here in Ann Arbor) ;-)

Put together a business plan and see if you can find a way to make it work. My guess is you can't. The expense will hit hard and fast, the revenue may never come.

business dude wrote:

Put together a business plan and see if you can find a way to make it work. My guess is you can't. The expense will hit hard and fast, the revenue may never come.

Maybe I misunderstood, but I don't think the guy was looking to make a profit, or even to break even. If he was, then you're right -- he's crazy.

Brett,

Would you be willing to invest some of this money into buidling an indoor track and field center somewhere? I have an opportunity that I think you would like. I am currently looking into this and doing some research. If it works out, it will be similar to the situation that the NYC Armory would have. Of course, local city government would have to be on board but if they can have an immediate backer then this could be a good thing.

And who knows, from this you might be able to start your own club.

hold the phone wrote:

Definitely not intended to be back-handed -- I view the Hansons as role models. It's simply a fact to say that it did take nearly a decade (well, nine years) to produce an Olympian

I have had the pleasure of interviewing the Hansons and their goal was not to create an Olympian. That was simply a bonus. Their goal was/is to help raise the profile of the sport. The athlete's are trying to become Olympians. The Hansons are trying to create an environment that will allow runners to improve.

what part of the country would his be in? I am interested in finding out more, assuming this is for real and somewhat close.

I know of a surefire way to make a small fortune in the running business:

Start with a large fortune...

Seriously, all of these groups exist because people love the sport and are willing to make sacrifices for it. Because they're not exactly real businesses, they're much more likely to talk to you. If I were you, I'd get in touch with people from all of the major clubs and training groups. Have some phone conversations with them. Take a few trips and have more meetings with a few of them. Talk to athletes and college coaches. Plan to spend 6 months doing research. You're going to need this kind of information to be successful. This research stage could actually be really fun.

Sorry I haven't gotten back to you sooner, things have been hectic around my house. And the truth is a lot of the questions that I’ve read I don’t have answers for. I hope I can answer some of them and I will try to do better at responding sooner today (if anyone is still paying attention to this thread.)

Income- As far as general income, if I were to venture towards this business I wouldn't have any initial income.

I was going to try and put 2 reputable coaches in place for the athletes (men and women) along with providing gear, housing, pier diem, etc. I guess I need a solid business plan before I can actually saw the how and how much.

I run and I know the scene pretty well (at least I think I do). I ran division 1 if that means anything to you guys. Of course, I’m willing to learn because I know I'm far from knowing it all.

My goal would to be an Olympic development team for mid-distance and up focusing on track. Ideally I would hope to provide a clean, safe, structured, and knowledgeable environment for qualified athletes.

It would be in the northeast.

Sorry of I missed some things. Would anyone like to know anything more specific that may help you provide advice for me? Finally, thanks so much for the responses, I didn't think that I was going to find this much support on letsrun. HA

All the best,

Brett

PS: I am aware that a lot of you find this to be a dumb idea because of its high upfront costs and limited initial and overall return but I can assure you that money isn't the main goal here. It's more about giving back to the sport. I'm confident I will find money somewhere. Hopefully. HA

Brett

Get in touch with Tyrone Bell and Ryan Woods in Florida. I know Tyrone is looking for sponsorship, or a elite group to train with. Both of them are pretty fast guys 3:43 for the 1500, and 1350 for the 5k.