Opening a small gym business

tobeshredded

Hey all so I'm planning on opening up a small gym business weather it's here in Australia or back in my home town of Ireland. I'm just trying to work out my monthly incomes and out goings.
Premises is gonna be around 1000-3000sqft
I know each month I'm going to have to pay out on
Insurance
Gas electric
Phone/internet
Premises rent
And employees wages X 2 for now

Has any one any idea on average each month which all this would cost.
I have a rough idea of my rent and employees wages etc

Also as its only gonna be a small gym
What would you recommend I put into it equipment ways etc
How many
Bench press machine
Benches
Squat racks
Running machines
Rowing machines
Cross trainer

Also is there anything you would recommend putting into a gym that not many gyms have??

I have a rough business plan done up atm just looking some more info

Any help would be much appreciated

sunnybeaches105

I've advised a number of smallish businesses over the years, but never a gym. These are also internet generalities, are not intended as advice, and do not establish a relationship. Take the following with a grain of salt.

(1) Location is everything. Unless you're a destination business that people will flock to no matter where you are based on your reputation and skills, it is critical that you be located conveniently enough for your customers to easily access. Look at the area carefully. How many businesses have come and gone in the building you're looking at? Why? Is it easily accessible from the street? Plenty of parking? How many competitors are within 10-15 minutes of your location?
(2) Consider your customer base. Do your research. If you're a general gym then you want to be warm and welcoming to those new to fitness. If you're a hardcore gym, how many hard core types are around you and do you have the reputation to draw them in?
(3) Start small but with an eye to, and a plan for, expansion. You are starting a business you've never run in an area where you're not completely sure of the market. Leave room for flexibility. Don't commit to 50 brand new machines when 25 lightly used ones will do. Be open to customer suggestions. Listen to them but be sure of what they're really saying. Are the things they want something they'll actually pay for if you choose to invest more money? Will your landlord give you an option for addition space? Yes, landlord. Don't buy real estate unless you are also looking for real estate investment. If so, how much real estate experience do you really have?
(4) Consider your goals and bottom line. Get your ego out of the equation and think about your real goals. Are you in this for profit or because you think owning a gym would be cool? If the latter don't do do it. You need to be passionate to succeed but not so passionate that you don't pay attention to reality. You're not a tech start up that can win the "lottery" and be bought out by investors. You're entering a grinding business and every dollar counts.
(5) Speaking of which, most small businesses fail. That's reality. Gyms fail like restaurants fail. It's a tough business. Do not put more money at risk than you can afford to lose. Debt is dangerous at the beginning stages, consider equity investors but know that they will want to turn a profit and share control. Pick investors who share your vision. Also pick investors who compliment your skill set and fill in the gaps in your knowledge. Accountants, bankers, lawyers, etc.
(6) Speaking of advisors, do you have any? Pick ones who are recommended to you by people you trust. Firm name and reputation are not enough. You will ultimately be working with individuals and you want individuals who know what they're talking about.
(7) Consider a franchise but don't enter into any agreements without consulting with an attorney. Did I mention that gyms fail? I've outfitted my garage with several items from more than one failed gym. I've seen many more fail. Have you ever managed a gym? Maybe do that first?

playmadcats

Maybe also enquire what locals would like. My first gym was a small independent gym run by a group of competitive bodybuilders. Wanted to expand their home gym and decided to make a business of it. Great if you were on similar level but they seemed to skimp on the non gym areas. Ladies were shunted in to room at back so they didn't get in the way and had to do with the main gym cast off cardiovascular equipment, plus a couple of antiquated contraptions probably bought from eBay or garage sales. Also the changing rooms were office type rooms with one shower in a corner with just a shower curtain round it. (Water was never more than a constant drip which meant going home to shower. Not good if you wanted to nip in before going on elsewhere).

My previous gym, not the above mentioned one, had Vipr's. Sadly not found another gym with them and it's the one thing I miss although my present gym is generally far better equipped. However if your just setting up. I wouldn't consider them a priority.

festerw

We just got a quote for setting up a new weight room for the university I work for, large enough for 15-20 people. Roughly 1000sq ft. with 4 racks, bars, plates, 4 plate loaded machines, dumb bells, medicine balls, etc. With the flooring and platforms it was roughly $65,000. Commercial treadmills run around $6000, ellipticals $5000, steppers $4000.

zoeysasha37

sunnybeaches105 wrote: »

I've advised a number of smallish businesses over the years, but never a gym. These are also internet generalities, are not intended as advice, and do not establish a relationship. Take the following with a grain of salt.

(1) Location is everything. Unless you're a destination business that people will flock to no matter where you are based on your reputation and skills, it is critical that you be located conveniently enough for your customers to easily access. Look at the area carefully. How many businesses have come and gone in the building you're looking at? Why? Is it easily accessible from the street? Plenty of parking? How many competitors are within 10-15 minutes of your location?
(2) Consider your customer base. Do your research. If you're a general gym then you want to be warm and welcoming to those new to fitness. If you're a hardcore gym, how many hard core types are around you and do you have the reputation to draw them in?
(3) Start small but with an eye to, and a plan for, expansion. You are starting a business you've never run in an area where you're not completely sure of the market. Leave room for flexibility. Don't commit to 50 brand new machines when 25 lightly used ones will do. Be open to customer suggestions. Listen to them but be sure of what they're really saying. Are the things they want something they'll actually pay for if you choose to invest more money? Will your landlord give you an option for addition space? Yes, landlord. Don't buy real estate unless you are also looking for real estate investment. If so, how much real estate experience do you really have?
(4) Consider your goals and bottom line. Get your ego out of the equation and think about your real goals. Are you in this for profit or because you think owning a gym would be cool? If the latter don't do do it. You need to be passionate to succeed but not so passionate that you don't pay attention to reality. You're not a tech start up that can win the "lottery" and be bought out by investors. You're entering a grinding business and every dollar counts.
(5) Speaking of which, most small businesses fail. That's reality. Gyms fail like restaurants fail. It's a tough business. Do not put more money at risk than you can afford to lose. Debt is dangerous at the beginning stages, consider equity investors but know that they will want to turn a profit and share control. Pick investors who share your vision. Also pick investors who compliment your skill set and fill in the gaps in your knowledge. Accountants, bankers, lawyers, etc.
(6) Speaking of advisors, do you have any? Pick ones who are recommended to you by people you trust. Firm name and reputation are not enough. You will ultimately be working with individuals and you want individuals who know what they're talking about.
(7) Consider a franchise but don't enter into any agreements without consulting with an attorney. Did I mention that gyms fail? I've outfitted my garage with several items from more than one failed gym. I've seen many more fail. Have you ever managed a gym? Maybe do that first?

I agree with this.
I have seen countless gyms fail . usually the owner just thought it was cool to open a gym and didn't really think about the logistics of it. Insurance/equipment and everything else isn't cheap and finding new members isn't easy . think about how many members it would take just to cover your overhead per month. Then think about what your gym could offer compared to a larger chain . as you can see, its not easy to make it work. When a large chain can offer 15$ per month memberships , would people pay you $50 per month for a smaller gym ? What can you offer that someone else hasn't already thought of ?( not much )
So I would think long and hard before dumping money into this idea. Now lots of "personal training" centers are opening up everywhere. Instead of a typical gym, they just have a few machines and a little equipment and basically train people one on one in a small studio . these types of personal training businesses also fail frequently . here they usually last about 12 months. Anyone and everyone can go and get all types of personal training certifications without much knowledge . then these people think they will make a living out of it. Instead they end up with lots of debt and a laughable reputation in the fitness industry.

tobeshredded

Cheers for the feedback guys. I was a personal trainer in a newly opened gym for the past 3 years. I've basically seen the ins and outs. I will be buying all 2nd hand equipment but decent stuff. Tbh will be be a few gyms within a 10-15 min drive from me but they are commercial large gyms no real atmosphere. I want my gym to be buzzing music pumping and a really good atmosphere I've noticed that's what gets ppl into the gym. I've been in talks with my previous boss and also a friend who have opened up gyms wishing the past 3/4 years they have given me some good feedback also. Il not be after any investors etc as il be putting all my own money into it and if all else fails then il always make my money back on the equipment and atleast il have given things a go.

Dr1nkbleachndye

Gyms are a very tough business to be successful with. I'm very into health and fitness, and a gym would be the last style of business I would use my money to open

tobeshredded

Well it's either that or try open a large bootcamp business

Erik8484

Have a look at ibisworld, they provide australian industry reports that will benchmark the various costs associated with running different types of businesses.

Dr1nkbleachndye

I don't like to see people fail in life. Not saying you are going to. You are doing more than most, you are asking people's opinions trying to get a feel for it. Not just using your fitness knowledge, and aspirations for success to drive you to a goal that is more of a mountain than a mole hill. IMO You are smart enough to do that, you are smart enough to make a good decision.

Good luck to you and look forward to hearing your success story

tobeshredded

Thanx a lot for the feed back guys. The more the merrier. I just have to try find a place that's just the right size and affordable. The business plan is now done. I don't want any investors and I'd just like to try this myself and if I fail all a I can say is I tried

zoeysasha37

tobeshredded wrote: »

Thanx a lot for the feed back guys. The more the merrier. I just have to try find a place that's just the right size and affordable. The business plan is now done. I don't want any investors and I'd just like to try this myself and if I fail all a I can say is I tried

I'd say go for it then. Your aware of the risk and know there's a lot of them with this type of business . just make sure your seen! Pay young people to hand out flyers with coupons on every corner advertising your grand opening. Take out ads in the local papers and do anything possible to let people know that you are a new gym with a different atmosphere. Give them a reason to come take a look. Offer a good deal for people who sign up on the first day or offer a give away for free personal training sessions or something to draw them in. You will need as many people to sign up as possible. If I lived in your area , I would do it ! I always go with small businesses when possible!

tobeshredded

Hey man that's the plan it will be well marketed. That's one thing I'm great at. It will also have its own website and Facebook page

iofred

Have you done any research on the viability of opening a gym?? With thee introduction of 24/7 budget gyms in the UK (Puregym, The Gym etc) and them asking very low membership prices (< £20pm) it has driven a lot of "regular" gyms out of the market. So if you want to open a gym, and make certain that you will succeed, you need to come with a differentiator to stand out from the competition. Sorry if that sounds negative

tobeshredded

The fact that ppl in my area and the surrounding areas don't go to pure gym etc is because there is literally no atmosphere in these places they are also mainly based in town centres etc mines will be in the suburbs and writhin a 5/10 min drive from most estates. It will also have a really good atmosphere proper gym music and I know people will wanna train there from being a PR the past 3:4 years I have learnt a lot. Thanx for the reply tho I have already thought about all that. My gym will cost between 15-20 pounds per months with a target of 200 members by the end of year one starting of with 20 members in month one with an increase of 10% each month as the gym grows

iofred

Cool, I hope it works out for you. I used to work out at David Lloyd, which was great atmosphere, but a hefty price as well. When Puregym opened I joined them, and I must admit, I loved the equipment, but especially the fact that it was 24/7 open. When I moved house I invested in my own (home) gym, with quality equipment, and that suits me fine (never believed it would, as I was (and am) a gym addict). at least you got your focus right, and as long as 200 members = sufficient income to cover expenses and wages it would be great to own and work in an environment you love

tobeshredded

Hey mate thanx for the reply yea with 200 members on a 12 month contract direct debit works out very good tbh then on top of that you have your payg clients and then water supplements classes etc which makes more income.

dagobertorodriguez

I meet this person out of Atlanta, Ga. His name is Leon Anderson. This is some type of expert on the field of Commercial Gyms. He is being opening gyms for decades. He's got the experience and know how. I was with one of my friends who was looking forward to open a gym. Different that many regular vendors, he asked my friend so many questions, gave him so many leads, advice, that know my friend has much more knowledge and can take a real smart decision in regards to the area where he shall start, budget, equipment and a bunch of other stuff.
Before you take any purchasing decision, I would suggest you visit this site: http://www.southerngymsupply.net/
Talk to the owner, he will give you excellent prices in commercial and home gym equipment. In reality, his values are amazing.