Knowing how to start your own gym business is very important. however, not just start your own gym rather starting a profitable gym business from scratch is one of the best ideas in the fitness industry.
In fact, gym is becoming more valuable and popular as compared to the olden days.
There are thousands of people joining gyms to get fit and lose weight.
The competition has also increased.
Starting a profitable gym from scratch can be challenging, therefore, you need to consider a few factors.
This article provides you with the best tips on how to start a profitable gym business that will land you to bigger gigs.
Before going deep into the tips let us tackle some important tips
Have vision and mission before starting a gym business
Identifying your niche is very important.
In fact, coming up with a clear vision before starting your own gym can have a great positive influence on your business.
Ask yourself what you intend to do and how you are going to do it and once you know your target market and vision, then you are set to go.
Also, consider drafting your mission statement to give you insight into your business.
The total cost of starting own gym from scratch
The total amount of money required to start a successful gym business can vary depending on the location or rent, price of equipment, if you need to hire a trainer and other factors.
However, the cost of starting a gym business from scratch ranges from $15,000 and $400,000 depending on locations.
The total cost of starting a gym business is a key factor to highlight.
Good enough, some people purchase second hand or buying used equipment, which costs less amount, in order to lower the cost of starting gym business.
Interestingly, new gym-goers want to see new equipment, therefore, make sure to have all used equipment thoroughly inspected and serviced prior to use.
10 Tips on how to start a profitable gym business
Here are the best tips on how to start own gym business in this competitive world.
Before you start your own gym business, you need to do thorough research.
Check all the aspects and factors.
Research help you identify the strength and weakness, threats and opportunities that may arise.
Consultations from experts and from the surrounding community are essential.
Therefore, take a trip to the field it might be town or city and consult from the current gym owners in case.
To start gym business you to get certified. Getting qualified to start a gym is very important.
Therefore, establishing a legal business entity that prevents you from being personally liable if your gym is sued.
However, it may not be compulsory to obtain a professional fitness qualification before starting your own gym business.
However, accreditations are crucial.
Using a registered agent service can help protect your privacy and stay compliant.
Getting fitness certifications is important before starting your own gym business.
Find a suitable location for your gym
Now find location, which is the most important aspect to consider when starting a profitable gym business.
When not chosen appropriately, it can lead to low profit and closure of your gym.
You need to identify a suitable location with potential customers.
To identify a suitable location, consider the factors discussed below.
How to determine a suitable location for the gym
Factors to consider as you start gym business from scratch in a given region is crucial, therefore, determine the following factors:
Check the number of gyms around your area of interest.
Keenly check on the number of gyms around where you what to locate your gym business.
Identify their strengths and weakness.
Confirm how they operate, what they offer to their members and make sure that you turn their weakness into profit.
This will enable you to create a better profitable gym business.
Failure to consider market factors can lead to a big loss to your gym.
Identify the Traffic or threshold
Determine the demographic location of your potential customers before starting own gym business.
Is the population sparse or dense? Check where they go for a workout.
The population matters a lot when you what to start gym business.
For a profitable gym, I would prefer locating your gym where there is a high population density.
Another key area to consider is how to reach your gym by members. Locating your gym in an accessible area is very important.
Consider factors such as parking space, do you have enough hall for aerobics.
It is also important to locate your gym near accessible roads where people visit.
Size for future expansion
Consider the space where you what to locate your gym.
Can it contain all the gym equipment and can it allow expansion or can it grow in that location in the future.
Come with a gym business plan
You need to a realistic gym business plan that will enable you to run the business effectively and efficiently.
Furthermore, a business plan will secure funding from investors or other financial institutions.
For realistic gym business plan consider the following factors:
- What are the initial costs?
- Who are your potential customers?
- What is the duration it will it take to start operating?
- How will you brand your gym? Choose the right name is crucial.
It will tackle the cost of construction or rental, the amount needed to purchase the products, and any other professional resources like hiring a fitness trainer.
Seek advice from financial advisors and other partners while making a business plan in order to make a complete realistic gym business plan.
Determine gym products base
You need to identify where you will buy gym equipment or the company that sells gym equipment that will source you with gym equipment.
You also need to design how you will organize gym equipment.
What is the viewpoint of the gym to potential gym customers? The equipment in gym, what your gym offer to membership?
Now you need to get money for the setup and operations, however, you need a financial advisor to guide you through the business plan.
The experts say it usually takes around $20,000 for gym setup. However, it will depend on where you are starting gym business.
It is important to choose the best financial option that will not give you a headache.
Remember what can make your gym business to fail is cash flow.
Therefore, a financial expert should guide you through your business plan.
To start gym business you will require legal approvals.
Therefore, a gym license is very important.
You need to apply the permits and licenses that any other business owner would need to obtain.
These documents are very important as they give you legal rights to own a gym business and to protect your customers.
However, let this not scare you.
You will register for an Employer Identification number, local and federal taxes.
This can vary from country to county.
To stay on the safer side, you need to consult a legal expert before firing off permit applications.
That is it is important to do research before starting your own gym from scratch.
In addition to that, apply for insurance to ensure both patrons and your business is legally and financially protected from major accidents.
Get the Right Equipment
After putting everything in place, now you need to start sourcing the equipment to your location.
Purchase of basic free weight equipment for serious lifters such as bench presses, squat racks, deadlift mats, dumbbells and racks for curls and dips.
Together with cardio equipment like bikes, rowing machines and treadmills are important.
Hire a fitness trainer
After equipping the hall with gym equipment, you need to hire a trainer for your gym team.
It is difficult to run a gym without a helper. Therefore, it is important to hire a qualified and accredited individual to help run the business.
Now start the gym operation
Announce to the residents of that town, you can publish in newspapers gym opening date, time of operation, and offers.
How to improve your gym traffic?
For profitable gym business you need to create awareness through Social media page, and also it is important to create a fitness website to market your business.
In addition, traditional local advertising is crucial.
Stay creative and know your demographics, and reach out to those individuals wherever possible.
Post-workout videos on YouTube and make money per view.
How does a gym make money?
Another important question when you want to start gym business is, how does a gym make money?
Generally, with gym business, you can make money through, membership and supplemental.
For instance, you can make money through classes like yoga, Pilates, aerobics classes, spin classes, and many others.
This will improve your gym business income.
The charges for a gym membership
Most gym charges from $15 to $50 per month for memberships.
Some gym also gives a discount if a member pays for more than three months at once or a full year.
However, this varies depending on the location of the gym. See also how to increase gym membership retention.
What is the potential profit for gym business?
If you want to start gym business, then a very important question is how much profit can a gym make?
The fact is, revenue and profit vary by size, location, and potential customers.
However, the gym has several ways in which it can make a profit.
The profit ranges from $500 to $25,000 a month. Nevertheless, larger gyms can make more than that. Here are 14 ways on how to make money in the fitness industry
Summing It Up
You need to do thorough research and make a realistic gym business plan for the effective running of the gym.
Follow the above procedures are the best way to run your own gym fro scratch.
Always get the legal requirement before starting your gym.
Insurance is an advantage to you, therefore, the purpose to obtain insurance from a legal company.