The modern commercial fitness industry can be traced back to the Godfather of Fitness – Jack LaLanne. Jack LaLanne opened his first gym in California in 1936, which eventually became the model gym for the fitness empire he crafted throughout his lifetime. His fitness television series aired 32 years (1953-1985) and, the gym equipment he invented is still in use today. The fitness industry has changed since Mr. LaLanne first envisioned a healthier world 75+ years ago. Thankfully, this positive change offers easy and affordable access to fitness centers worldwide.
So you want to know, How much does it cost to open a gym? Read on to learn the answer.
Obtaining a Certification Will Be An Expense
Gym owners are encouraged to earn a professional certification relevant to the fitness industry, plus a certification related to the business sector. However, specific certification requirements vary, depending on the local or state law.
Fitness Professional Certifications
Fitness professional certifications are the first step in establishing your credibility as a fitness professional. Professional fitness certification reflects your level of expertise and know-how to potential customers and business colleagues. Fitness certifications are available from many professional schools and institutions of higher learning. Here are two professional organizations to consider in the fitness industry –
- The American Council on Exercise (ACE).
- The International Health, Racquet and Sportsclub Association (IHRSA).
Business Professional Certifications
Business credentials establish your capabilities as a qualified business owner to industry contemporaries. Business certification also discloses to lending underwriters that you have the capability and knowledge to operate a business successfully. Consider the following professional organizations that can be of assistance –
Note, however, the four suggestions noted above represent only a small portion of available resources to consider.
Forming a Legal Business Entity Requires a Fee
There are many rules and regulations to comply with when opening a new business. There are business licenses and permits to obtain, as well as other regulatory issues specifically related to the safe operation of a fitness business. New business owners and entrepreneurs often need assistance with the many tasks required to comply with state or federal law. One such organization dedicated to supporting new gym/business owners is LegalZoom. The professional business and legal consultants at LegalZoom may be able to answer questions regarding the following–
- The Amount of Business Insurance Required.
- The Law regarding Cardiopulmonary Resuscitation (CPR) trained staff.
- Automated External Defibrillator (AED) Requirements.
- Clear defined business objectives as a part of a business plan. This includes critical financial forecasting models.
- Marketing a gym business.
- Developing a website for a gym business.
- The best Point of Sale (POS) system to use for a gym business.
LegalZoom can also assist you in legally registering your new business so you can begin operating in your state. Unlike most online business registration providers, you can purchase a legal plan to speak directly to attorney who will asses your unique situation to determine the best legal structure for your gym business (so you don’t have to figure it out on your own).
The Right Location Will Cost You
The gym’s location will likely determine the business’ success, so choose wisely. The location of the gym will also determine how much it costs to open a gym. Consider factors that include visibility, parking, and ease of access, among other important location factors. To be successful, it is prudent to select a location with a customer base that will support the gym services you offer. Professional consultants at LegalShield are available for unlimited consultations. You can ask them for expert advice on choosing the right location for your gym.
Know Your Competition in the Area, Study Them
Each potential location should include a full assessment of the local competition. A gym owner needs to explore the competitor’s price to determine if his or her gym will be priced competitively. Competitive pricing with different (or additional) services is likely to attract new customers.
Decide Which Services Will Be Offered at Your Location
This is where a gym owner gets to add their personal choices for their new gym. Ask yourself –
- Who do you wish to serve as a gym owner?
- Who are your clients?
- Men only?
- Women only?
- Both?
- Seniors?
- Will you offer circuit training only, or will there be group classes?
- Are their specialty services for weight-loss, Pilates or weight training?
Equipment is the Another Important Expense
Part of the startup costs of opening a gym consists of the different types of fitness equipment that most people use when working out. For example–
- Treadmills.
- Mats.
- Benches.
- Free weights, among many other choices.
LegalShield consultants (and services) can help you decide if it is best to lease or purchase the equipment. Their expertise can be used to demonstrate the way in which to hire (and pay) your staff at the gym as well.
Marketing & Advertising Will Come at a Price
Marketing is an important startup function when opening a gym. In the digital world of the 21st century, there are many ways to successfully market a fitness center and gym. Speak with marketing experts who can help guide you through the many traditional and online marketing resources. Marketing efforts should address –
- The gym’s opening.
- A free one-day pass to allow potential members to ‘try the gym out.’
- Future membership drives, among many other marketing options.
So, What’s the Total Cost of Opening a Gym?
According to expert contributors at Entrepreneur magazine, a modest fitness center/gym’s startup costs average in the range between $10,000 and $50,000. However, it would not be surprising to see one of the mega gym-chains invest upwards of $1,000,000 for the right location. Entrepreneur magazine also advises that some gym owners manage their fitness business on a part-time basis, with the proper support personnel.
Arrange Funding to Cover the Cost of Opening a Gym
As a new or first-time business owner, it is likely that you will need to apply for business financing (either as a business loan or a business line of credit) that offers lenient underwriting guidelines. Generally speaking, lenders won’t consider a financing scenario without a valid business plan. Consider the following financing options –
- A Stated income Business Line of Credit.
- Using an existing 401K account.
- A No Documentation Business Line of Credit.
- An Unsecured Business Loan.
- A Small Business Administration (SBA) Loan.
Get up to $250k in Credit Lines to Fund Your Gym | Use Your 401k to Fund Your Gym |
Get Business Funding | Get 401K Funding |
Takeaway – Get Expert Help to Determine Exact Costs
With a huge range of variable costs and the many important decisions to be made, an entrepreneur or businessperson would benefit hugely by working alongside an experienced business consultant (like the legal consultants at LegalZoom) that offer guidance throughout the process. Experts will help you develop your plan and pinpoint the exact costs associated with opening a gym business.
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