So you are thinking about opening a gym?

Posted by MichealH Alexander on February 28th, 2020

Entrepreneaurialship is a huge undertaking and one to be proud of. However, there are a number of details that will need to be accounted for in order to be successful.

What type of gym will you be? For example: will you be a 24-hour gym or not? Will you be focused on strong man, powerlifting, bodybuilding, or functional fitness? Finding the Niche market that you are passionate about and will be profitable with is the key.

Market STUDY! This is a critical path to success. Without a market study you will not know how to price your services, nor will you know if the service at a price point needed to be successful is a fit for the community you are in. Best Club Management Software

Draft a Business Plan. In most cases, a bank nor a realtor will work with you without one. Not to mention, how will you achieve your short and long term goals if they are not clearly documented? A business plan should not be overlooked.

If you can take this time to start acquiring gym equipment and pay cash, I would. 90% of all gyms fail and that is usually because of predatory lending in this industry. DO NOT, I repeat, DO NOT lease your equipment. Pay cash for it and if you cannot pay cash for it, do not move onto the below steps. You will be greatly stacking the odds against your success.

Find a competent realtor as they will be able to research commercial properties and provide you a list of properties that will work for your business model. They can tell you if a certain building has a high turnover rate and what struggles you can find, such as getting in and out of the parking lot, or parking in general.

As you are touring prospect commercial property, bring a contractor with you. They will be pivotal in sourcing issues you may not see and can give you an idea of a rough cost to build out space for your needs.

Estimate your rent at .00 per sq ft, 25% of rent towards power, water/sewage, internet & phones, insurance, and payroll. Have at least 6 months of bills saved up prior to signing a lease on a building. This will be the cushion you need until memberships can cover the bills.

Once you find a commercial space to lease, make sure it is zoned correctly. You do NOT want to make the mistake to lease a space for 5 years and it isn’t zone for gyms. This is a lengthy legal process that could be financially damaging.

Now that you have a commercial space, you will need with State and Local government bodies for a business license, sales & use tax account for the state, county, and city you are in. Don’t forget the unemployment account. Gymnify Gym Software

If you find any of the above to time consuming or worthless, you will want to reevaluate your desire to open a gym.

There is much more to this process, feel free to reach out to us for any questions, comments, or concerns regarding Gym Ownership if you need help. We are always here for you.