People are spending a lot of their time and money to get in shape, especially since obesity rates have reached record levels. The gyms and health and fitness chains opened in the last 10 years are the biggest proof of this. In this article, altitudementor.com will discuss the opening of a profitable gym. When photography is like this, opening a gym is a very attractive source of income for those who want to start a business.
If you are an entrepreneur who would be happy to help others stay healthy and fit through exercise, opening a gym may be just the job you are looking for.
Opening A Gym Profitable?
Is it profitable to open a gym? This question undoubtedly bothers everyone who wants to get into this business.
Opening a gym is extremely profitable if you apply the right strategies and take the steps. According to a study, 68% of gyms that have been in operation for more than 8 years make high profits. In gyms that have not been opened for more than 3 years, this rate drops to 52%. This means that opening a gym is very profitable, but it takes some time.
In this article, we will talk about proven strategies and what you need to do to make the gym you open profitable. Thanks to this practical information, you will be able to build the gym of your dreams.
All you have to do is read our article with your full attention until the end. Here we go Time to exercise your brain muscles!
10 Best Ideas Opening A Profitable Gym
As with any business venture, running a successful gym requires some industry-specific knowledge and careful planning. Many factors play a big role in the success of your business.
1. Do research and planning.
Getting into the gym business requires rigorous research and planning. It is extremely important to prepare a business plan that includes many factors such as hall rent, equipment, trainers, and customer base. Especially meeting with people who know this business and currently run gyms will help you a lot in making plans and research.
If you are considering taking out a loan from the bank and getting a Kosgeb loan, you need a written business plan. Developing a business plan allows you to define your target market, determine your likely expenses and earnings, future plans, and address the specific needs of your business. You’ll also need to include specific information about what type of gym you want to open, such as a gym that specializes in women’s health and fitness or a gym suitable for bodybuilders. In addition, the business plan should also include information about location selection and the equipment to be purchased. In this process, you must be meticulous and calculate everything down to the smallest detail. Â
Therefore, try to make the process as efficient as possible. Meet with gym owners for at least 3-4 months. Gym owners generally do not mind helping you out of the sportsmanship that comes with being an athlete. Have a conversation with these people first, and bring your business plan with you to your next meeting. Go over this plan together.
You can get help from these people on issues such as the size of the gym, the concept of the gym, expenses, and personnel management. Once you have a preliminary idea, you can meet with gym owners who have a similar concept to the gym you are planning to open and ask more specific questions.
Your total budget should be roughly determined during the research and planning process. You need to have budgeted for equipment, marketing, rent, insurance, accounting, lawyers, cleaning, bills, and other expenses.
2. Find capital.
The main difficulty faced by sports instructors who want to open a gym is financing. If you do not expect to win a big prize in the lottery, you should balance your income and expenses well and save money in order to open a gym within your own means. This means having strict financial discipline.
So, are you ready to work an extra job on the weekends to save money? You should ask yourself this question. Will you be able to transfer at least 20% of your income to a savings account every month? In this context, do not attempt to open a gym without saving for at least 1 year.
As with any business, you will have certain initial expenses to open a gym. You will need more equipment and more instructors in direct proportion to the size of the hall you plan to open. If you want to open a salon in a busy district, the rents will be high. We should not forget items such as invoices and personnel salaries.
Do not approach a bank loan as much as possible, because although the interest rates seem reasonable now if things do not go well, these reasonable interest rates can turn into astronomical figures. Even small increases in interest rates cause many companies to go bankrupt. So don’t try to save the day and have a certain amount of savings in advance. Keep this money in a separate bank account. In short, it is extremely useful to have money that you can use for emergencies.
There are also some alternatives when it comes to finding the capital needed to open your own gym. An investor who will provide you with capital is one of these alternatives. If you have a relative who is thinking of starting a business but is undecided about which job to enter, you can explain your business plan and monthly income to him/her. KOSGEB is another alternative. In this context, it is also possible for you to receive government support.
3. Determine your customer base.
The customer issue is a completely separate issue. Customers come to a gym for two reasons: Friendships and the brand. In other words, a person goes to a particular gym either because he is friendly with the owner or because he likes the facilities provided by that gym. If these situations exist, the customer is willing to pay annual dues.
If you plan to open a salon in an area with little competition, a general format that appeals to all segments of the population is good. However, if the space is already competitive, a better approach would be to open a niche gym that appeals to an untapped market. For example, if none of the gyms in your market have fitness programs for kids, you can capitalize on parents’ concerns about childhood obesity by opening a gym for kids.
4. Choose a location.
Choose the right location for your gym. If you’re opening a niche gym, make sure you’re easily accessible to your target market. For example, a successful gym targeting seniors should be located in an area with a large elderly population and have ample free and well-lit parking. Make sure the facility is large enough to accommodate all your exercise equipment and allow members to move freely and safely within your facility.
5. Choose the venue.
Consider specific needs when it comes to the size of your space. For example, if you plan to offer cardio, yoga, or cycling classes, your space should include several enclosed rooms. You should also consider bathroom, sauna, and locker room areas and additional spaces. Those considering offering water aerobics should ensure that the available space is suitable for an indoor swimming pool installation. Keep expansion plans in mind when choosing a location. For example, a limited space is sufficient to open a gym focusing on boxing, but if your business becomes successful, you may need additional space.
You should choose the venue according to the minimum number you expect to come to the gym. So, if you think that at least 100 people will come to your hall, make your plans based on 100 people. In layman’s terms, be realistic while dreaming and making plans.
In other words, initially think of expenses as a maximum and customers as a minimum. If more people become members than you expected, you can move to a larger hall. However, if fewer customers arrive than you expected, you may have to close your doors. It is vital at this point to make good Cost/Customer calculations.
6. Hire staff.
Gym staff often interact with members frequently to provide training and support, so you should consider all potential hires carefully. Your fitness trainers should be experienced and certified in their field. Most importantly, the people you hire need to be courteous and friendly, as well as help your members reach their fitness goals.
7. Get the necessary tools and materials to open a gym.
Your equipment needs will largely depend on the type of gym you want to open. Gyms that typically appeal to a broad audience have resistance training equipment, free weights, and a range of cardio equipment such as treadmills and bikes. Exercise mats are needed for clients to use during exercise or yoga classes. Niche gyms will have to consider equipment specific to their needs. For example, a boxing gym requires boxing gloves, protective equipment, and a punching bag.
There are hundreds of different sports equipment and all of these equipment have their functions. However, wherever you go in the world, some equipment is always available in gyms. So, if you are thinking of opening a gym, you must buy this equipment.
Treadmill
Every gym should have a treadmill. In fact, when you think of a gym, the first image that comes to mind is treadmills. It is fair to say that treadmills, which allow people to run in all weather conditions, are the most important equipment for a gym.
Exercise Bike
The exercise bike, which allows people to exercise as if they were riding a bicycle, is a must-have, especially for people trying to lose weight and develop their leg muscles.
Stepper
There are different tools to improve each part of the body. Stepper is also especially ideal for leg and hip muscles.
Elliptical Bike
Elliptical bikes are very useful and popular in terms of cardio as they work the lower and upper body at the same time.
DumbbellÂ
Every gym has several sets of dumbbells classified according to their weight. Moreover, the cost of dumbbells is much lower than larger machines that perform the same function.
Weight Machines
Weight machines, which consist of different parts for the exercise of all body muscles, can also help you kill 5 6 birds with one stone.
8. Develop a marketing strategy.
The number of people who are members of the salon is one of the most important factors for the future of your business. To achieve this, you have to be different from big brands with cheap monthly plans. Effective marketing attracts members to your gym and puts you one step ahead of your competitors. When marketing your private gym, it is not enough to kill two birds with one stone, you have to make a killing.
Free or low-cost trial memberships allow prospective members to test out your salon with minimal financial risk and no long-term commitment. For example, you can offer a one-week free trial. This is the best sales opportunity you can have. It’s also smart to allow customers to bring family members or friends. You can give customers the right to bring a friend or family member for two free weeks a year or offer discounted temporary memberships.
Market-specific promotions can encourage potential customers to stop by your salon. For example, if you own a kids’ gym, you could host an event for kids and their parents that offers games, prizes, and the opportunity to test some of the fitness equipment.
It may also be beneficial to provide free training that your potential customers may be interested in. For example, if you provide a 2-hour free fitness training, people will be informed about fitness and may consider becoming a member of your gym. You can post advertisements on university event pages for such events.
Radio and television advertising still works, but it can be a big dent in your budget. Digital marketing is an effective solution. If you do it at the right time, you can get it cheaply.
Let your customers promote you on social media. Invite them to post about their progress. Offer them to post before and after photos to show off their transformation. Publish factual tips as part of your content plan. You can also create discounts or incentives and post them on social media. Once you’re ready, you can invest in sponsored content on social media.
Let a professional masseuse work at your gym and you can offer customers discounted or free massages in exchange for promotion.
You can create a bulletin board where your customers can share healthy recipes, coupons to local healthy restaurants, or weight loss tips.
9. Get help from your family and friends.
No one wants you to be successful more than your family and close friends. Therefore, before starting a business, you should definitely inform your family and friends and ask for their help.
You will especially benefit from your family and friends in gaining you new customers. If you have 40 friends and these 40 people tell 20 people that you own a gym, 1600 people will immediately know about you. That’s why your family and friends can help you a lot. Referrals are very important in the gym business. Therefore, the more people who can recommend you, the better.
Additionally, try to meet the sports communities in the city where you operate. The important thing in the gym is the gym. So every hall has certain regulars. Therefore, the more people you can reach from the same city, the better. It is advantageous to be active on Facebook, Twitter and Instagram.
When you open your gym, organize a launch event and invite as many people as possible. You’ll be making a smart move, especially if you choose people who might consider signing up for a gym. That’s why it is essential to determine your target audience correctly.
Cost of Opening a Gym
Don’t underestimate the cost of opening a new gym. The cost of opening a gym can generally vary between 350 thousand – 1.5 million TL. However, if you want to open a unique high-tech gym, the cost may be much higher.
There are many different criteria that affect the gym cost. If you give us detailed information about the gym you want to open for a healthy cost, our experts will get back to you after the calculation. For this, you can comment on our article.
Questions Those Who Want to Open a Gym Should Answer
Once you have a basic idea about opening a gym, there are some specific questions you should ask yourself.
1. Joint requirement?
Partnership in business is similar to marriage. There is money involved, not love. However, divorces in business life are higher than divorces in marriages. However, partnerships based on a common vision, great communication, and mutual respect are very beneficial.
2. Am I willing to be sleep-deprived?
Your gym will be your bread and butter. That’s why you need to do whatever you can to keep this salon running. Especially in the early days, if you do not have enough budget to employ staff, you may have to do a lot of work yourself. Cleaning the bathroom and toilet, wiping the floors, washing towels; In short, being the first person to enter the hall and the last person to leave the hall… To wake up in the morning when necessary. You have to decide whether you are okay with all this.
3. Do I have enough money to sustain myself for at least 6 months?
There may be some stagnation in cash flow before the customer base of your newly opened gym becomes established. You should have some money aside to get you through this process. If you do not have much money and things do not go well at first, you may experience some difficulties. (Remember, most newly established companies go bankrupt for this reason.)
4. What types of income sources do I have?
No matter what you do, it’s good to have multiple sources of income. When you open a gym, you should not rely only on membership fees. For example, you can sell sports equipment in the gym or protein powders used by athletes. You can also organize events for certain specific audiences. Yoga courses and dance courses can be given as examples. So, you can also give tango, waltz, and folklore courses in the gym.
5. What are my long-term plans?
What kind of brand do you want to have? Is it a luxury salon with a monthly membership fee of 4500 Rupees? Or is it a hall that costs 1200 rupees per month and everyone can come to? Maybe you want to open a women-only gym? Do you want to expand and open new branches? Do you want to prioritize a particular sport?
You should have certain predictions about the route the gym will follow in 5 years.
6. Why do I want to get into the gym business?
You must be able to clearly and concisely express why you want to do this job. Maybe you’re doing this for the money, maybe because it’s your passion, or maybe to help the environment. All three reasons are valid reasons; However, if you really love this job, it will enable you to be more successful in the long run and earn good money from this job. Because it is very difficult for a person who does not like his job to be truly successful.
Documents Required to Open a Gym
- A petition stating the name and address of the hall and the sports branches to be applied,
- A copy of the identity card of the founder of the gym,
- Full address and criminal record of the salon owner,
- If there will be a person who will represent the hall, a notarized copy of the responsible manager contract for at least 1 (one) year,
- Certificate of residence,
- Three passport-size photographs,
- A copy of the one-year contract made with the trainers, masseurs or other trainers of each sport branch in which the activity will be carried out, certified by the relevant federation or provincial directorate,
- Registration certificate to the Chamber of Commerce, document to be issued by the chamber to those registered to the Tradesmen and Craftsmen Cooperative,
- Architect-approved 1/100 scale layout plan of the facility,
- Business permits to be issued by municipalities, fire brigade reports, provincial health directorate reports in provinces, district health directorate reports in districts,
- Tax plate photocopy,
- Photocopy of the rental contract,
- A doctor, medical officer, or clinic contract with the gym.
Conditions for Opening a Gym
a) There must be at least one locker room with a usable area of ​​not less than 8 square meters, at least two locker rooms in the facilities where male and female athletes will work together, there must be enough locker or hangers for the athletes, the rooms must have a lighting and ventilation system, the temperature must be at 18 degrees Celsius. and meet hygienic conditions,
b) There must be at least one lounge with a usable area of ​​not less than 15 square meters, the floor of the lounge should be covered with carpets, parquet, and similar materials, and the temperature, lighting, and ventilation of the lounge should be sufficient,
c) In facilities where male and female athletes play sports together, there must be at least two showers and two toilets in the locker rooms, excluding sports branches that are not required,
d) Having hot water in the showers as long as work is done in the hall,
e) The temperature of the place where sports training is carried out should not fall below 18 degrees, the ventilation should be sufficient for the number of athletes in the training area,
f) The gym floor must be covered with wood, parquet, chipboard, carpets, and similar materials according to the characteristics of the sports branches performed, and the floor according to the characteristics of the sports branches performed in open facilities; be covered with grass, asphalt, concrete and similar materials prescribed by the relevant federations,
g) Keeping fire extinguishers and similar devices ready in the hall against fire and natural disasters,
h) In order to take precautions to prevent physical impacts during work, the sharp and pointed edges of the dangerous edges should be covered with soft impact-mitigating materials and there should be no poles, columns, ditches, pits, soil piles, trees and similar obstacles in the work area,
i) Having sports equipment and auxiliary equipment for each sports branch during the training, sufficient for the number of athletes in the working group,
i) All units of the facility where special physical education and sports activities will be carried out do not meet conditions that are contrary to general health,
j) It is mandatory that all precautions are taken to prevent the environment from being disturbed due to noise and pollution during the activities to be carried out in the private sports facility.
k) Taking measures for the life safety of disabled people and athletes,
Note: These documents may vary from region to region. Therefore, you can contact the relevant offices in your municipality for more accurate information.
Tips for a Successful Gym
People take being healthy and fit seriously. They want to see their progress measured. Technology has given them access to data showing their daily steps, heart rhythms, sleep patterns, and more. In the past, basic exercise machines allowed customers to track the calories they burned based on their weight. They could also monitor their heartbeats while they worked. Sensor technology takes systems like this to new levels.
Modern gyms are not satisfied with just the devices in the gym to provide information to customers. There are also solutions for the home. These tracking solutions make workouts more fun. Customers can see their fitness improvements over time. They can compare their current exercise performance to what they did yesterday, last week, or last year. When they share the numbers with other members, healthy competition occurs between them.
Warnings
You must take every possible precaution to protect customers from accidental injury. During membership, you can inform customers about injuries and ask them to sign a document that will exempt you from liability in this regard. However, remember that no matter how carefully your attorney prepares the legal document, you may still be held liable if your client is injured while playing sports. You may need liability insurance to cover medical expenses resulting from an injury at your gym.
The equipment must be in proper working order. You should also carefully consider the placement of exercise equipment so no one gets hurt in your gym. You can provide a guidebook for the safe use and placement of equipment. Following this manual can help you reduce the risk of accidental injury in your gym.
Your staff should also be familiar with the proper use of equipment. Minimize the chance of accidents by offering your customers mandatory training sessions before using your equipment. If instructors show customers how to use each machine correctly, not only will the risk of accidents be reduced, but customers will also be able to use the machines more efficiently.
