How to Start My Own Gym Business to Earn Money

Thursday, February 5, 2015

How to Start My Own Gym Business to Earn Money

Gym is slang for gymnasium and gymnastic services such as in schools and colleges and is attributed to compounds such as gym shoes. Gymnasia are open air and covered locations for gymnastics and athletics. Gymnasia apparatus such as bar-bells, parallel bars, jumping board, running path, tennis-balls, cricket field, fencing gallery, and so forth are used as exercises. In safe weather, outdoor locations are the most conductive to health. Gyms were popular in ancient Greece. Their curricula included Gymnastica militraria or self-defense, gymnastica medica, or physical therapy to help the sick and injured, and gymnastica athletica for physical fitness and sports, from boxing to dance. Government statistics indicated strong business growth opportunities for starting your ownGym Business. The U.S. Department of Labor expects industry growth faster than average when compared to other occupations. U.S. Census Bureau statistics indicate that the 21,283 fitness businesses throughout the U.S. net more than $10.2 billion annually according to a 1997 record. To increase your gym’s chances for success make sure to plan and properly finance your business idea.

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

Apply for business permits and licenses. Opening a business requires owners to register and adhere to all regulatory laws. You will have to research and apply for business licenses and comply with other regulatory laws such as building permits and health department requirements. The California Law requiring automated external defibrillators, staff trained in CPR and the AED on site at all times, and a written emergency plan developed by physician is an example of some of the requirements gym owners face.

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

Seek out a business partner. In this case the entrepreneur should be ready to concede at least a portion of business management control. When seeking a partner it is best to find one with complementary skills, attitude and business acumen as well as the ability to finance your business. Craft a partnership agreement, limited liability partnership, or possibly a limited liability company depending on your business needs. Obtain partner agreement regarding the business structure, management responsibilities and financial obligations before opening your doors. Entrepreneurs should also be prepared to reimburse business partners and investors regardless of business success or failure. This can be key if the entrepreneur wishes to pursue future business opportunities. Reimbursement can be negotiated based on the partnership agreement formed. If a business should fail, negotiate an agreement to repay principal over time if lump sum payment is not an option.

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.

References

1 comment:

UnknownMarch 30, 2015 at 4:21 PM
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.
ReplyDelete
Replies

Please don't spam. Spam comments are not approved

Subscribe to: Post Comments (Atom)

Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

Pages

Thursday, February 5, 2015