Getting the startup capital for a new gym or health club can be a challenge compared to other small businesses. Gyms require exercise equipment, shower facilities and, depending on your business model, spas and a swimming pool. As with any small business, new entrepreneurs should invest as much of their own capital as possible to remain independent. Given the capital requirements for gyms it is more likely a small business loan or outside investor will be needed. Start by crafting a complete business plan to show potential investors and lenders.
Gym Business Instruction:
Step 1
Obtain a fitness professional certification. Credit-ability is important when opening a gym. Loan officers and customers will regard your level of industry experience as a reflection of your competence and abilities. The American Council on Exercise and the International Health, Racquet and Sports club Association offer certification and business education courses that will help establish your professional credibility.
Step 2
Review and select the gym business services. Gyms offer a number of services to their clients from rehabilitation to weight loss. Determining your customer base factors into the type of services and classes your gym will offer. For example, a gym catering to older adults may want to offer rehabilitation services and gentler disciplines of exercise such as yoga, pilates and low-impact aerobics. A women-only gym may wish to offer weight loss services, intense cardiac workouts and body firming weight-training classes.
Step 3
Find a gym location that will support the services your gym will offer. Seek out demographic areas that will support your gym's services. Location is essential in establishing clients so factor in higher rental rates when estimating startup costs to afford locations closest to your customer base. When seeking out a location consider such things as street access, parking and visibility.
Step 4
Select fitness equipment after selecting your gym’s services and determining the required fitness equipment needed. Certain factors, such as cost, new technologies and equipment maintenance, plays a role when selecting fitness equipment, including weight machines, treadmills, free weights, weight benches and mats. Consider leasing and purchasing options when estimating the cost of fitness equipment.
Step 5
Write a business plan and get gym financing. Starting a gym will require both a written business plan and a loan. According to Entrepreneur, the average cost of opening a gym is $10,000 to $50,000. Lenders will not consider a business loan application without a complete business plan attached. The U.S. Small Business Administration offer free service to help develop business plans and provide assistance in getting loans. You can contact the SBA at 800-827-5722.
Step 6

Step 7
Purchase business insurance. Gyms are places where injuries and accidents happen. Purchasing some form ofbusiness insurance will protect the business. Contact your homeowner's insurance agent for a referral to an agent who specializes in business insurance.
Step 8
Decorate the gym facility, install the fitness equipment, hire your staff and begin your advertising campaign. To reduce the burden of employment regulatory costs such as payroll taxes and benefits when starting consider hiring on an independent contractor basis.
Step 9
Write a comprehensive business plan that starts with your vision for your new gym enterprise and describes your expertise and experience in the industry. Include a description of the combined experience of your management team, key employees and any business partners. This sets the stage for investors and potential lenders about your industry competence and prospects for growing a successful gym.
Step 10
Calculate all startup costs and project operating costs, capital expenditures and revenue from various sources for up to three years. Lenders and investors will need to see projections based on solid industry research that correlates directly with your business model. The numbers should be consistent with how you plan to operate the business. Resources such as local small business development centers, economic development corporations and chambers of commerce can provide relevant demographic and competitor information.
Step 11
Compile financial information from all business owners and investors for loan applications. Lenders will request documentation of personal assets, and any assets being allocated to your gym enterprise by these individuals. These assets will include bank or investment statements, real estate, life insurance, retirement accounts, automobiles and any other personal assets. Loan applications also require a three-year history of business and personal tax returns for all business partners. If any current or previous loan applications have been submitted, these will also need to be included.
Step 12
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Step 13
Seek sponsorship from local businesses. Businesses can solicit local businesses to sponsor advertising within their business to help offset operating costs or receive additional income. These arrangements can be solicited before opening to show investors and lenders another source of revenue. Examples of this ancillary revenue include placement advertising on gym brochures and fliers, or logo placement near gym equipment. Approach businesses that offer complementary services to your gym such as health food stores, nutritional supplement companies or sports physician practices.
Thanks for sharing the information. Nice article nice tips to how open my own gym . I found the post very useful as well as interesting. I will come back to read some more.
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