Healthcare, Sports & Recreation

How To Start In The Gym Business | Ultimate Fitness Company

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With health being a significant concern to many Americans, gym subscriptions have gradually increased over the past two decades. Today there are gyms in almost every city and town in America. Besides large franchises, many private gyms cater to a smaller group of people searching for ultimate fitness, pro fitness, or just lifestyle fitness. Running a gym is a very lucrative business because most people sign up for long-term contracts- this results in a steady income stream even if the individual does not show up for the service. However, other income streams are from the supplemental services, including juice bars, selling high-energy foods, extreme fitness classes, renting space out to trainers, core health and fitness training, tanning salons, and even massage services.

Learn The Fitness Industry

While all this sounds good, it is essential to know that gyms also have very high closure rates- the key reasons are intense competition and failure to create a sound plan. Opening a personal training studio or large gym can provide a steady income for those who do their homework. Here are some tips on opening a successful gym business:

The gym business is not for everyone. If you have no idea what is involved, have never been to a gym, or only limit your exercise to a walk in the park on Sundays, then doing a short internship at a gym is crucial. Most gyms are always seeking extra help as they are open for long hours. During this training period, you can learn about the practical aspects of the gym, including how it operates, the type of employees required, the types of exercise machines needed, the supplementary services offered, what the fees are, and the nuisances associated with gym ownership.

Pro Fitness Certification

To make your gym status bona fide and reputable, obtain some professional fitness certification from one of the following:

These agencies offer short business courses and certifications in sports-related businesses.

Popular Gym Classes

You may want to offer a variety of classes like:

Aerobic classes
Circuit training
Crossfit
Dance classes
Jiu-Jitsu training
Kickboxing
Military Fitness
Pilates
Spin classes
Yoga

These classes should generally be run by a dedicated professional like a fitness or a dance specialist.

What Are The Common Reasons For Gym Failures?

Multiple factors lead to gym failure and including the following:

Lack of a planning
Excessive spending
Poor behavior by employees
Lack of appropriate exercise equipment
No marketing
Very high gym fees
Underestimating the competition
Poor location

You can reverse all the above factors, but it should ultimately be a team approach.

How Do I Ensure Client Satisfaction At My Gym?

Try and match your equipment and staff to your potential clients
Use the services of certified and trained exercise professionals like personal trainers and fitness instructors
Always chat with clients to determine if their needs are being met and if you need to do something else

What Are The Challenges Of Gym Ownership?

Maintenance of the facility. Wear and tear are significant with dozens of exercise machines, which frequently break down or need regular maintenance. Further, all the devices must be regularly cleaned and checked for safety.
If there is a pool, you will need to check the pH of the water regularly and remove all dirt and debris daily.
Supplies like towels, toilet paper, and detergent need constant replacement.
Member retention: No matter how friendly and perfectly appointed your gym is, some members are just never happy. To keep everyone happy in a gym is not easy, and you must continually provide excellent service.
Further, new gyms popping up in your area always offer significant discounts and no annual subscription when starting, So you’ll need to continually address these challenges and figure out how to retain these clients.

Is the Gym Business Right For Me?

To be successful in the fitness industry, you need to live and breathe fitness and exercise. This is not a business for laid-back people. One needs to be proactive and lead a healthy lifestyle. Also, you should have business acumen and be a ‘people’ person. Since you deal with people all the time, each interaction has to be warm and pleasant. Finally, owning a gym requires a considerable time commitment; one must be dedicated to the job and remain motivated.

Gym Business Plan

It is vital to make a plan if one is considering a gym business. Many gyms closed within the first year because the owner made no plans and did not anticipate any potential problems. A detailed plan is vital in today’s economy and intense competition for clients. Things that you should include in the plan:

What is the start-up cost for a gym?
Where should I open the gym?
What equipment will I need?
What is the rental fee?
Will I need a fitness or sports specialist to help run the gym?
How big will my gym be?
Who is my competition?
What will I charge for my Gym services?
Do I need a license to operate a Gym?
How will I get funding for my gym?
What are the negatives of a gym business?
Who will be my clients?
How will I market my gym?
What will be the ongoing costs of running a gym?

Here are a few links to help you with your business plan

What Are Gym Operating Hours?

The gym hours are long. Since most people work during the day, they can only visit the gym outside of working hours, So gyms have to be open early in the morning and stay open till late at night- usually from 5 am to 10 pm. Plus, gyms need to be available during weekends and holidays since this is the time when many people are free.

Do I Need A License Or Permit To Operate A Gym?

All gyms require a business license, usually costing a few hundred dollars. However, it is best to check with the local Chamber of Commerce if any permits are required. If you plan to hire fitness trainers, then make sure they are already licensed so you do not have to bear the cost of licensing.

You also need to register your business for state and federal taxes
Obtain an EIN
If you hire more than two employees, you also need to get workers’ compensation insurance.

Property and Casualty Insurance Resources | NationalUnderwriter.com

My Fitness Brand Legal Entity

To protect you and your assets in case of litigation, form a legal entity, which may include a Sole proprietorship, Partnership, corporation, or Limited Liability Company (LLC)

Check out these few companies that can assist you in getting your LLC started.

Here are a few government links you might want to visit

IRS Website

This site by the IRS is a must-see when beginning your LLC

Gym Insurance

Some type of insurance is vital if you operate a gym. Injuries during gym activity are not rare, and to prevent litigation, you must have liability insurance. At the same time, when anyone becomes a member, you should add a clause that the gym will not be responsible for any injuries- this will hopefully prevent customers from suing for self-induced injuries.

Here is a list of some standard insurance companies

Best Places To Get Small Business Insurance

What Are The Operating Costs For A Gym?

Startup costs for even a tiny gym can be high. Costs vary from $250K to $500K, and large gyms could cost at least 2-3 times that amount. Many franchises may have lower operating and marketing costs, but the franchise fee can be significant, so it is not always a cheaper option to get started.

The major expenses of a startup gym are the rent and the equipment. Gyms usually require huge space, and the rent can vary depending on the location and size. The smallest gym may rent for $10K a month, but rentals for larger gyms can easily cost $50K.

How Much Do Gym Owners Make?

Overall, fewer people frequent the gym in spring and summer. Gyms usually are more prevalent during the winter months. Gym owners can make a significant profit; how much will depend on many factors, including the size of the gym, the number of members, supplemental services, and overhead expenses. Plus, your net profit depends on your charge, how many regular clients you have, and your monthly expenses. Studies show that a small gym with 200-300 members can make at least $100K a year, but bigger gyms can make much more. However, if you are located in a small community or a small town, you will probably not make as much money. Gyms generally are not profitable for the first few years; this business is a long-term investment, and profit starts to show usually after the 3rd year.

Buying Or Leasing Gym Equipment

Your equipment costs depend on whether you will buy or lease. If you purchase the machines, it can easily cost $300K-$500K. If you rent or lease the machines, you can reduce your startup costs significantly. Renting equipment can cost as little as $30-$100 a month per device. However, most manufacturers or leasing companies do offer discounts for startups.

Most new gym owners lower the initial overhead by purchasing used exercise equipment, but this strategy may not always work. Most of your members will look for more modern and sophisticated gym equipment and may not be impressed with the old treadmills and weights. Plus, the older equipment may not be in the best condition and may even break down frequently. It is vital to have all used gym equipment thoroughly inspected before purchase. You can also ask if there is a warranty.

Should I Lease or Buy Gym Equipment?

Gym equipment like computers is continuously updated and refined. Buying gym equipment is a costly affair, and it is unlikely that you will be purchasing new equipment every year. On the other hand, customers always expect to see the latest exercise machine, so leasing may be a better option. It provides you with all the newest equipment, and any defective machines are quickly replaced. The downside to leasing is that it is expensive. Leasing each exercise machine can cost $30-$150 a month, but on the other hand, buying these machines can easily cost thousands of dollars per device.

Here are some fitness equipment leasing companies

Music Licensing For My Gym

Since most gyms have music playing during the day, it is essential to get the necessary permissions. Today a ‘blanket license’ can be obtained, which allows the business to play a wide range of music. This blanket license may cost anywhere between $200-$300 a year.

Here are some places you can license your music

Can I Open A Gym Business With No Funding?

It is unlikely that you can open a gym business with no funding. Opening a gym is an expensive undertaking, and no one is just going to give you hundreds of thousands of dollars worth of equipment. You may try obtaining funds from the bank, but they will expect to see a plan first and ensure that you have a good credit rating, but you will also need some down payment (usually 20%). With the current fragile economy, the best recommendation if you don’t have funding is to work for a gym and gain experience. At the same time, save your money and build your credit.

What Is The Growth Potential For A Gym?

The key to success in a gym business is retaining clients and encouraging more to join as members. Client retention is a complex task, as the competition for clients is fierce. So to be successful, you will frequently have to engage with your clients, ensure they are satisfied, and correct any issues that arise. Marketing is also a core component; you must regularly spread the word about your gym features. Finally, you will always need to offer something unique that your competitors do not.

Is Opening A Gym Profitable?

Gyms can be profitable depending on location, level of competition, and services provided. Today, many gyms close due to high membership fees. So you need to ensure that your gym fees are reasonable and affordable. Millions of people still do not have steady jobs, and many remain unemployed; thus, setting your gym fees too high is a recipe for failure. The key to the retention of clients is providing a good experience they will not find elsewhere at the right price.

Daily Fitness Business Activities

The daily activities of a gym owner and employees include the following:

Cleaning up and vacuuming
Restocking supplies like soap, towels
Getting raw ingredients for the juice bar
Checking gym equipment to make sure it is functional and safe
Manage all accounting
Make an employee schedule
Verify gym membership and dues
Updating the webpage
Training
Running classes

Gym Fees

The pricing of gym fees is quite varied. Some gyms have a sign-on fee ranging from $50 to $300. A reoccurring monthly fee ranges from $10-$30, while other gyms offer the first-year membership for only $20 a month with no sign-on fees. Most gyms also provide daily fees ranging from $5 to $12.

How Do I Promote My Gym Business?

Create a website – promote the location, the types of services you provide, contact information, various promotions, and costs. Also, state your opening hours and offer online bookings.
Create a logo and use it on all your stationery, website, and equipment
Develop flyers and post them all over your community, restaurants, malls, plazas, etc
Place ads in the local paper
Join social media sites and interact positively
Remain active on your website, and blog, and show bright, colorful images (before and after photos with permission from clients)
Offer considerable discounts to first-time members.
To attract more clients, offer a week of free personal training sessions.
Set up a time for select members of the public, like morning hours for the elderly and afternoon hours for women with children

Your gym domain name protects your website address on the internet. You can register a domain name with any hosting company you choose

Some of the common domain registrars include:

Here is a list of some options for building a regular website.

Here is a list of drag-and-drop page builders for WordPress.

My Gym Location

Location is critically important when opening a gym business. The gym has to be opened with the customer in mind and includes the following:

The area should be safe
The site should be accessible.
There should be ample free parking
The gym should preferably be near other businesses- many workers hit the gym during lunch hours.
The gym should be close to residential communities- preferably within walking distance.
The area should be free of significant traffic.

Here is a list of some popular commercial real estate companies:

Gym Trainers And Employees

To keep the gym running 24/7 means you need good reliable people who offer good customer service. You will have to create a work schedule that pleases everyone. You’ll continuously have a backup plan if one employee doesn’t show up. Keeping employees happy all the time is a difficult task. The best way to retain and keep employees happy is to communicate regularly, have regular meetings, and meet their concerns. Be flexible in scheduling employees and offer competitive salaries that are the same or better than what other gyms offer.

In addition, running a gym requires a team that includes trainers, fitness experts, nutritionists, therapists, dancers, etc. Expect to pay a minimum of $25 an hour for these experts. Also, you will need someone at the front desk, and a maintenance professional, a marketing person, an accountant, and a lawyer.

Ultimate Fitness, Boxing, Gym Yoga, Core Fitness, And Other Programs

Personalized training services
Sale health supplements on site
Offer health monitoring
Inbody screenings
Nutritional counseling
Juice Bar
Tanning beds
Massage and spa services
Chiropractic services

What Type Of Gym Equipment Do I Need?

Try out these handy links

Some of the most exercise equipment that should be in a gym include the following.

Abdominal crunchers
Aerobic stepper
ARC trainer
Barbell Set
Cable Pulley Machines
Dumbbell set for various levels of training
Ellipticals & Cross Trainers
Exercise Bikes
Free weights
Indoor cycles
Recumbent Bikes
Rowing Machines
Ski machine
Stair Climbers & Steppers
Training bench
Treadmills
Upright Bikes
Weight machines

Juice Bar Equipment

Commercial Bar blenders
Cooler
Drink dispensers
Juicers
Ice makers
Ice crushers
Napkins
Prep tools
Glasses
Refrigerator
Sink

Point Of Sale Systems

Here are a few POS systems designed for the gym business

Conclusion

To ensure client retention, take regular surveys, and get feedback. Communicate with the members via email and a mobile app. Ask them what new equipment they want, what other fresh juices they desire at the juice bar, or what unique classes they may be interested in. Send reminders to members of new events and happenings. And finally, now and then, offer discounts on juices, snacks, and supplementary exercises.