Each year, millions of people join gyms in order to lose weight and/or get fit. The global health industry is worth $81 billion, whereas gyms in the US alone have a market share of about $26 billion per year.- Start Your Own Gym
With the proper mix of training, skills, and commitment, starting a gym can prove to be a successful business move. However, just because the industry is thriving doesn’t mean that you shouldn’t do proper research before diving into the market. This is a venture that could see you spending money on personal training management software, equipment, property fees, insurance policies, etc., depending on the scope of your gym, so you need to be prepared for what comes ahead.
In this guide, we’re offering 5 tips that will help you get started.
1.Create a Business Plan
A good gym involves more than just the right equipment. You need to think of the clientele you will be serving, membership fees, and find ways to differentiate yourself from the competition. And the best way to achieve this is by starting off with a detailed business plan.
Your gym business plan will be a roadmap to your success, keeping you informed when you are making important decisions. It will also serve to persuade potential investors to join you on your journey.
Your business plan should include the following sections: an executive summary, company overview, market research and marketing, services and amenities, financial projections, and funding. With a business plan in place, you will be unstoppable in your new venture.
2. Consider the Costs- Start Your Own Gym
According to experts, it usually takes about $50,000 to open a gym. However, this will largely depend on where your gym will be located. If, for instance, you want to open a gym in NYC, it could cost you over $500,000 just to get started. A bigger gym might cost upwards of 1 million dollars. If you’re considering a franchise, you should know that while they might carry lower operating costs, you’ll need to pay a franchise fee.
The largest expense is the initial investment in equipment, which can cost $200,000 or more, whereas the second-largest expense is either the rent or labor, depending on the size of the business.
3. Obtain the Required Licenses and Permits
Just as any other business, you will need to apply for adequate permits and licenses. You will need to register for an EIN, as well as federal and local taxes. You probably won’t have to apply for a federal business license, but you’ll need to comply with state oversight. In addition, you will need to comply with municipal rules when it comes to business and building zoning.
If you feel overwhelmed, consider consulting an attorney before you start applying. Failure to acquire the required licenses and permits can result in fines, or even cause your gym to be shut down. You can find the required licenses, registrations, and documents for opening a gym in your state via the Small Business Administration’s Licenses and Permits Resource.
4. Invest in Insurance
Insurance is important for any business, but it is even more critical when you own a gym. This is because a big number of clients are going to be participating in potentially dangerous activities in your gym. As a result, you need to make sure that both your business and your patrons are properly protected.
Besides business insurance, you should also consider purchasing liability insurance. In fact, this type of insurance might be legally required, depending on municipal or state laws. Also, if you are investing large sums on equipment, you might want to consider a separate equipment coverage policy.
5. Hire Employees Wisely
In most cases, gym owners start by hiring self-employed or freelance personal trainers to offer their clients guidance. That being said, it would be wise to check whether each potential candidate has the necessary experience, whether they’re properly certified, and make sure they are personally insured.
If you’re thinking about hiring full-time employees, you should know that typical pay scales begin at $20,000 to $30,000 a year for entry-level positions.
As you begin your journey towards opening your own gym, you will face a number of challenges. Remember that every business is unique; what matters is knowing what it takes to own a gym and taking the first steps as highlighted in this post.