There is currently a boom in the fitness industry as the market keeps seeking out new ways to get in shape.
Today, opening a gym appears to come with full opportunities with the ever increasing number of health insurance incentives and corporate wellness programs.
As a startup business, it could be very daunting to take the first step required in opening up a gym with all of the different available options such as commercial gym equipment, facility type, programming etc. In this article, resources will be provided on how to start up a gym business with relevant plans on where to begin.
Deciding Where To Locate Your Gym Business
The ability to decide the kind of facility you would like to establish provides an excellent starting point. It is paramount to get your planned facility aligned with the demographics of the area.
For instance, you probably would not venture into establishing a Mixed Martial Arts facility that focuses mainly on private grappling sessions in an area where its female population is at 60% with a median resident age of 55 and an estimated median household income of $22,000.
Before you venture into opening your own gym business in an area, ensure that you get the demographic data of your area.
This information can be rightly accessed from most government or small business assistance organizations which should have a portal on a detailed account of the area’s demography.
Cater To The Needs Of The Demographic
So, you should ensure that your facility caters to the needs of the area demographics. As much as you love what you do, be passionate about the business. Do everything within your means and follow the gym business plan.
Purchase A Franchise or Open An Independent Facility
You may either want to purchase a franchise or open an independent facility, whatever you want to do depends on your experience.
If you feel confident to start the business from scratch without any interference from outside, then go ahead. It will provide you with the freedom and flexibility you need to own the rights of your business and set up whatever way you like inside your gym.
For first-time business owners who feel more comfortable in obtaining a franchise, you will enjoy start-up costs and step by step support.
However, this may limit your creativity in terms of services, products, equipment etc. that will be permitted by the franchise inside your facility.
On top of an annual franchise fee, you make probably need to budget for monthly royalties in your gym business plan.
The Small Business Administration (SBA) loan is one of the most common funding options. In this view, the most competitive rates are likely to be offered while you may be allowed to allocate funds for tenant improvement (TI) costs such as lockers, flooring, mirrors etc. as well as equipment.
However, it has got a rather extensive application and approval process which may not work with your business timeline.
Consider these factors when setting up your gym business plan so as to be fully prepared before venturing into the business.