How to Open a Gym — Ultimate guide

How to start a Gym

Many people start doing both business and sports, but not everyone succeeds. Entrepreneurs who have no practice, deciding to master the sports business, sometimes make serious mistakes even at the planning stage. As a result, optimistic forecasts do not come true, and people abandon projects, losing money and precious time. Today we will talk about how to properly open a gym from scratch without making common mistakes.

The biggest opportunity here comes from the Active Generation, who have a completely different approach to exercise. They prefer to sweat in liters rather than drink in liters, and view exercise as a social experience rather than a punishment.

Traditional meeting places such as places of worship and bars are becoming less common in modern society, and clubs can fill this gap and become the backbone of new communities, providing members with the opportunity to interact and communicate while working in groups.

Need a business plan template? We recommend using the step-by-step guide

Franchise or your own Gym?

You can start such a business in several ways:

• buy an existing gym or fitness club,
• a franchise of a famous brand;
• independently organize and develop a business.
• Each of the options is imperfect and does not promise big profits in a short time, bypassing problems. When an entrepreneur buys a ready-made gym, he visually evaluates what he buys. That is, he sees the state of the premises and equipment. He can pick up all the documents on running a business and see tax and accounting reports, determine the profitability of the project, etc. This is how a general idea of the existing gym is formed.

Need a business plan template? We recommend using the step-by-step guide → Gym Business Plan

Drawbacks of a franchise.

However, image errors, which may not be immediately noticeable, together with the business, pass from the previous owner to the new one. Therefore, it is often necessary to make an effort to return old and attract new customers.

Sometimes a revision of the pricing policy is required. It is worth finding out which pricing method was used earlier at the enterprise: profitable or costly.

When buying a ready-made business, you need to carefully study not only the documents, but also the gym itself, every little thing. It is advisable to establish customer feedback and collect feedback.

For example, when connecting utility lines, the technology could be disrupted, which led to the appearance of an unpleasant odor in the showers and alienated customers. You will have to invest additional funds to troubleshoot.

How much does it cost?

As for gym franchize, it is about building a business with a ready-made model of a successful enterprise. This path may seem easy, but it is quite costly. An entrepreneur (franchisee) signs a contract with a franchise seller (franchisor) and receives a recognizable brand, business technology, advice on the construction of a building or its acquisition, personnel and equipment selection.

The cost of a franchise is measured by the size of a one-time lump-sum fee and the amount of royalties — a monthly payment. As an example, consider the franchise package from the Fit-Studio fitness club chain. The network has 23 own and 38 franchise clubs.

The franchisee is offered three business formats that differ in cost, space requirements and range of services. So, the “Mini” model involves the opening of a small gym with an area of ​​220–400 sq. m for group training. Format “Maxi” — a large club with an area of ​​800 sq. m, on the basis of which complex group programs and individual training with experienced athletes are carried out.

If the options for buying a ready-made business and purchasing a franchise do not suit you, there is only one way left — to open a gym from scratch on your own.

Need a business plan template? We recommend using the step-by-step guide → Gym Business Plan

Where should you start in this case?

A gym as an idea for a business is perfect for those who love sports and a healthy lifestyle, understand the types of exercise equipment, understand what equipment is in demand and why. The future profitability of the project depends on how successful the start of the project will be. Therefore, special attention should be focused on drawing up a detailed business plan, choosing a suitable location and quality equipment, and developing an effective advertising campaign.

Based on a business plan and analysis of the health and sports services market in the region. It is necessary to choose the right location, taking into account the presence of competitors nearby, traffic, proximity to public transport stops, convenience of parking. It is necessary to determine the target audience of the gym and, in accordance with it, develop a concept, order a design project.

Need a business plan template? We recommend using the step-by-step guide → Gym Business Plan

Calculate the finances.

Before you open your gym, you need to calculate the amount of investment that will be required at the start, decide on the list of services provided, with their price category. You should also make a forecast of club attendance, calculate the possible income and the amount of net profit.

All these calculations must be made before the club opens.

The created model will become the main guideline for further work, and a competent business plan will help attract investors, especially since this project is not the cheapest.

Financial planning should be one of the steps you take when starting your own gym. There are a lot of numbers to take into account for example the number of clients your gym welcomes each day, the amount of subscriptions people bought each month, as well as discounts you offer. To make the calculations easier, there are special financial models created for your convenience and time-management. This is a one time investment, that helps you maintain your finances easily.

Find an attractive location.

Another important step is to choose a location for the gym. It is more convenient if the club is two-story. On one floor, you can set aside a place for changing rooms, showers, administrative and utility rooms.

The other will have a space that can be zoned based on needs. Without corridors and partitions, with the ability to move equipment. During the day it can be a fitness club, and in the evening it can be a lecture hall, for example, on the benefits of healthy eating, or adance studio.

Using such a layout, you can offer the services that the consumer needs. Such a gym will be mobile and able to survive in a competitive environment.

Need a business plan template? We recommend using the step-by-step guide → Gym Business Plan

Do not forget about design.

The design of the sports hall is also a very important point. When decorating a room, it is better not to use dark and aggressive colors, but to choose bright positive shades. Plaster or cork panels will give the walls vapor permeability.

The club must have full-length mirrors, powerful lighting devices and high-quality musical equipment.

The design of the sports hall can be in the style of “minimalism”, “modern” or “high-tech”.