How To Start My Own Gym Business – You have found the perfect business franchise and now you are ready to take the first steps. Starting a business is a whole different world than simply applying for a local business license. We’ve put together this basic overview to start your fitness center business. These guidelines will help ensure that your new venture is organized, properly staffed, and legitimately profitable.
An instantly recognizable brand is fundamental to the success of a new business. A franchisee will help you shape the details of your business and help you deal with any problems that arise.
How To Start My Own Gym Business
The cost of running a fitness center is significant. Most mid-sized fitness centers cost between $200,000 and $400,000 to move. A large fitness center can cost a million dollars or more. Franchising can reduce operating costs, but you will have to pay a monthly franchise fee, so these factors must be taken into account.
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Some fitness center owners try to reduce capital costs by purchasing used exercise equipment. This move has both benefits and problems. New gym users need to see equipment they can trust. The equipment and machinery used may not be in optimal condition. If you decide to buy used equipment, make sure the machines have been thoroughly inspected and serviced to ensure maximum performance.
The biggest expense associated with a fitness center is the initial cost of the exercise equipment, which can be $200,000 or more. The second largest cost is the franchise fee or lease, depending on the size of the business.
The typical fitness consumer is someone who simply wants to get in shape or someone who is looking for a trainer to meet a personal fitness goal. Most fitness centers develop customers through online advertising or positive word of mouth. Loyal users are those who enjoy exercising regularly and have long-term fitness goals.
Lazy or disinterested customers are people who come for a short time but eventually leave within a few months – or less. Many fitness brands charge a pre-enrollment fee to help cover the cost of a member leaving the facility before their membership expires. This fee also helps cover additional costs such as advertising costs.
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Most fitness centers charge between $20 and $50 per month for membership and require individuals to sign a one-year (or multi-year) membership agreement. Some fitness centers offer discounted memberships if the customer pays in advance for the entire year. Additionally, as mentioned, fitness centers usually charge a registration fee, which is usually between $100 and $300.
The extra profit will vary depending on the needs of the business and the fitness center you run. Consider your target market and the location of your venue. If you’re in a high-rent area, you may pay more for memberships, one-on-one training sessions, classes, and other optional programs.
Costs and profits will vary depending on the size of your business. However, a busy fitness center will typically earn between $1,000 and $2,000 per month for the first six months. After a year, a successful fitness center can earn $20,000 per month in profit. According to the 2016 AFS Marketing Best Practices Research Report, the typical wellness business in the US earns $63 per square foot, or $200,000 to $300,000 annually. Big gyms can earn 10 times more.
Making extra income with a fitness center is quite easy. Many small fitness businesses earn additional income by renting out space in the building. This “side business” is created to rent space from the franchise owner, which provides additional income. For example, a fitness center owner may lease space to a chiropractor, tanning business, massage therapist, or healthy food/nutrition option such as a juice bar.
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Choosing the right name is very important. Read our detailed blog on the best way to name your business. We recommend that you check if the business name you choose is available as a web address/URL and type the name before you post anything to ensure it is not being claimed by someone else.
Creating a legal business structure like an LLC protects you from personal liability if your fitness center is sued. There are many business structures to consider, including corporations, LLCs, and DBAs.
You should also consider using an attorney to help you navigate the more complex aspects of a corporation or other business structure.
Before actually starting you should apply for various state and government grants. You must apply for an EIN to receive the subsidy. It’s very easy and free!
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Using a bank account and business credit is essential for your personal financial security. Combining your personal and business accounts puts your assets (your home, car, etc.) at risk if your fitness business is ever sued.
This separates your own assets from your organization’s assets, which is essential for personal financial security. It also facilitates accounting and other financial documentation.
This will help you keep your personal credit separate from your business transactions – and help you track your expenses effectively by tracking and itemizing them.
Accounting for various expenses and profits is essential for any successful business. Keeping accurate accounts helps you understand where your business stands financially – and will make it easier for you to pay your bills at the end of the year.
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Obtaining the necessary permits and licenses for your fitness center can result in heavy fines or even being put out of business.
Certain states require certain licenses for an individual to open a fitness center. Learn about licensing requirements in your state on the SBA website for state business licenses.
Most franchisees are required to collect and share information about local laws governing the business. But make sure you do your homework and find out the specific rules and regulations in your area.
In addition, certain city and borough permit regulations may apply. For more information on city licenses and permits:
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Get help from one of the neighborhood affiliates listed in the US Small Business Association’s Local Business Resource Program.
Fitness center businesses with special needs may need to redesign or modify their site to better serve their members. Franchisees moving into the space will need a Certificate of Occupancy (CO) to convert. CO certifies compliance with all building codes, zoning laws and government guidelines.
Before hiring, make sure your landlord has or can obtain a CO focused on the fitness center business.
After significant remodeling, CO should be obtained. In the event that your business location changes significantly prior to opening, it is recommended that you read your lease agreement carefully. Make sure the language in your contract states that your rent payments will not begin until you receive the proper CO.
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Research all building standards and zoning restrictions for your business area to ensure your fitness center business is sustainable and carbon dioxide ready.
Many fitness center franchises play music to engage members during exercise. To play music in a commercial environment, you must obtain permission from the artist or licensee. It is usually possible to obtain a ‘cover’ license which allows the organization to play the music of a long list of artists and recording studios. Such licenses can be obtained from performing rights organizations such as ASCAP and BMI.
Exercising at the gym can pose some health risks, especially for those who lift heavy weights or have certain medical conditions. New fitness members are strongly encouraged to sign a waiver in case of any injury during exercise.
Like business licenses and permits, your fitness center needs security to operate safely and legally. Business insurance ensures that your operations remain financially viable in the event of an unforeseen outcome.
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Different types of security strategies have been developed for different businesses with specific risks. If you are unsure about the risks your business may face, start with general liability insurance. It is the most recognized insurance that independent business owners need, so it is a good choice to start your business.
Another useful protection strategy that many organizations use is workers’ compensation insurance. If your business has full-time employees, your state will likely mandate workers’ compensation coverage.
Your image is what your business depends on – how it is perceived by others in the market. A strong and reliable brand will help your fitness center stand out from the competition instantly.
Word of mouth and local marketing are two essential components so word of mouth exchange and proximity promotion are two essential strategies to add new members. A successful fitness center will advertise in both physical newspapers and online sites
Open A Gym
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Hi, I am Erick Norman. A blogger specialist in Kitchen Design.