How to Start a Gym Club Business
Step by Step Guide on How to Start a Gym Club Business
Are you looking for how to get others into shape and you have a business-minded approach towards taking your passion to the next step? Even if you are not much of a fitness person, it might be a profitable to make your way into the fitness world by opening a gym. For a newcomer to make a robust base, there are some steps they have to take in order establish a profitable fitness business.
Here are 12 steps that will guide you on how to set up a gym club business that is thoroughly planned , registered properly and legally approved.
STEP 1: Get trained
Before opening any gym, you should get certified in fitness training, it will help you a lot and have great impact on the performance of your gym.
You need to pass through proper training and luckily, there are different personal training you can choose from, and they all come with their own certifications. But the choice of training to pass through should depend on certain factors like your locality and target market.
STEP 2: Carry out a feasibility study
This is a very important step and will determine how far you go in the business. So you need to find what other gyms are lacking. Always go to gyms around you and talk to the people there, it’s easy to seek out problems since people love to complain. Immersing yourself in fitness communities that use the gym (sports clubs and teams, weight loss groups, etc.) also can reveal any problems. Make sure the matter you propose to unravel are things that folks really care about. So while carrying out a feasibility study, you won’t just be choosing a location alone, but will also be carrying out a demographic outlook of the inhabitants.
Things you should note include the notably dominant class, gender and even age grade in the region because a region with a large concentration of youths will be very ideal for setting up a gym house.
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STEP 3: Choose a brand and it’s name
Your brand is what your company stands for and also how your business is perceived by the general public. Having a solid brand will distinguish your business from competitors.
So in choosing the name of your business, don’t have a cliché name like most of the gyms these days. Try to have a unique name because choosing the right name is very important. You can start by considering the nature of the business. Your choice name will act like an extension of your brand, representing you in your absence.
It is advisable to check if the business name you choose is available as an internet domain. You can quickly secure it immediately in order to be sure that so nobody else can register it.
STEP 4: Register your business name and obtain necessary permits and licenses
After creating your brand’s name, the next thing will be to register it with the Corporate Affairs Commission (CAC). Registering your business with name has many benefits especially in building a reputation with your customers. It’ll also be useful in the future, if you want to access any government contracts or loans from financial institutions. Afterwards you need to acquire necessary permits and licenses because failure to do so can result in hefty fines, or even cause your business to be shut down.
STEP 5: Register With Tax Authority
It is important that you register your business with relevant tax authorities both at state and federal levels. As an entity, there are certain taxes your business should pay. Also, if you hire staff working for you, you need to deduct tax from their salary which you are expected to remit to the state tax authority. Doing otherwise will be seen as tax evasion. Of course, this has its own legal implications.
STEP 6: Open a Bank Account
It is important that you have a bank account for your business. Even though you have a personal bank account, you still need to open a separate account for your business where you can lodge all the supermarket revenues. Also, you should make all the expenses relating to the business from the company. This makes you more accountable. At the same time, it will be easier for you to source loans from the bank when needed. Furthermore, having a bank account makes it easy for your accountant to prepare the financial statements of the supermarket.
STEP 7: Create a Business plan
In creating your business plan, your vision must be clear and the needs of the community where your gym will be located should be included in the plan. A well laid out vision is the groundwork for any business plan and it allows you to focus your energy on ensuring that all aspect of your gym works together. Your business plan must be a well written description of your business’s future. It should contain what your plans are and the methods you intend using to carry out the written plans.
Remember in carrying out laid down plans, you have to start small and focus on solving the problem identified during the feasibility study. Solving that problem should be your main goal, as your gym will live or die by how well you are able to accomplish this. Having a little gym means people will get to understand one another and there’ll be a sense of community, which I found to be one of the most important reasons for membership renewals.
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STEP 8: Have some handsome capital.
For a start, you will need between $20,000 to $60,000 to run your gym business within the first few months and a good percentage of the money will go into renting a space. A large chunk of the money will also go into acquiring (or renting) some equipment and advertising your new business.
There are different ways of raising capital for your business and it includes personal funds (ie savings), loans from financial institutions and borrowing from your friends and relatives who’d be interested in helping you set up the business.
STEP 9: Find the location
Once you identify what type of gym you would like to open, you’ll need to determine what proportion space you’ll need. Initially, an open busy location is vital to getting clients to your gym. Many gym owners believe that location is worth paying extra money in order that your business gets seen.
So get clear first on how many clients you want to be able to serve in your facility because knowing how much space you will need will help you find a location that best suits your requirements. You shouldn’t go for any room, a standard gym house should be around 30m by 20m or more. The building of gym should offer proper ventilation and crossing of air and sun rays. It should have sufficient space to install all equipment and offer separate changing rooms. Hygiene is very important, so encourage clients and employees alike to maintain proper hygiene.
If you’ll be launching your business in developed cities, you might have to budget between $4,000 to $6,000 per month.
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STEP 10: Equip your gym
Acquire the necessary equipment which aren’t present in competitors gyms. Its gives a unique edge. Also have equipment variety because offering a variety of gym equipment and training options will not only bring in new members but also retain those whom you already have. Have plenty of plates and dumbbells. Nobody likes to wait around. People will have all sorts of requests for equipment and other things. Keep track of these requests (so you can notice any trends), but don’t be so eager to please everyone.
Some necessary equipment that you’d be needing in your gym house include: Ski machine, Dumbbells, Weight pile, Exercise mats, Ankle weight, Elliptical, Stepper boards, Motorized & Manual Treadmills, Indoor cycles, Rowers and Skip-rope
These equipment come at different prices, and if you intend purchasing all, you will have to budget more than $10,000. The equipment you buy should be of reliable quality and less prone to cause injuries or breakdowns and easy to service.
Some gym owners attempt to lower their initial overhead by buying used equipment. This is a double-edged sword. New gym goers want to see new equipment. Used equipment may not be in the best condition. If you go this route, make sure to have all used equipment thoroughly inspected and serviced prior to use.
Also note that the equipment can be hired on lease at more affordable prices. If you don’t have enough funds, you can go for this option and upgrade later on.
STEP 11: Hire professionals
Staffing or Team Physical trainer are the next most important aspect of the gym so before hiring fitness instructors and personal trainers, check their training and accreditation carefully. Ask questions thoroughly during the interview, and think about “auditioning” the person before hiring them. You also might want to think about hiring them temporarily for a couple of test classes or personal training sessions before committing to keeping them as an employee.
Your scale will determine the number employees you’d be hiring in the early stage of your business. You can also consider hiring someone to take on the marketing role, the person will be in charge of managing the release and spread of information between your business and your customers.
STEP 12: Promote your business
So word of mouth and local advertising are the two primary methods of gaining new membership. Many gyms advertise in local newspapers and offer discounts for first-time members. They may also offer free workout days or maybe free personal training services to draw in new members. Remember client retention is vital. Take good care of the new comer. They are your advertisement. They are very excited and will speak at length about your facility. Be friendly with every one who enters the gym. Retaining members is harder than attracting them and having a good community at the gym is the best way to retain members. People tend to remain longer once they compute in group otherwise it gets too boring. Most gyms advertise locally in newspapers or by word of mouth
Thanks to the internet, you can also promote your gym business by establishing a web presence. A business website allows customers to find out more about your company and therefore the products or services you offer. You can also use social media to draw in new clients or customers. You can target those in your locality with Google and Facebook ads at very affordable rates. A gym is often seen as a commodity service business and because of this, you must differentiate yourself.
Work on your social media presence and attract people with a large social media following. Alternatively, you can promote your business offline by printing and sharing banners and flyers around your business location.
Gym Membership Cost
In the first instance, the membership fee should be competitive with other gyms . But if your gym is really good, don’t shy away from putting a good price on packages. The prices of gym membership varies across the country. In the developed parts like Lagos and Abuja, you might pay as much as $60 per month or $720 per annum.
In places like Ilorin and Ibadan, the costs are relatively low and you’ll see people charging as low as $30 per month.
When you move to less popular towns, you get it at lower rates of $15 per month.
So in summary, your charges will be dependent on your location and the standard of your gym house.
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How to make your gym more profitable
Gyms typically see an influx of new members in January, peaking in the second quarter, then falling during the last months of the year. This makes the gym business highly cyclical. So as a business owner, you need to make your business more profitable
The standard business model for a gym is to collect membership dues but most gyms add supplemental revenue as space permits. Some forms of supplemental revenue are: Aerobic classes, Dance classes, Yoga, Spin classes, Kickboxing, Pilates, Circuit training, Military fitness, Jujitsu training and Cross fit.
Other sources of revenue include: Personal training, Juice bar, Tanning beds and related services, Supplement sales, Chiropractic services and Massage services
The idea for your new health and fitness business is simply just the primary step in creating your empire. And those that enjoy the grit and grind will reap the very special rewards of owning a fitness business service which reflects your unique mission and attract a client base that makes every day of work a truly magical experience. So build a brand that’s unique and offers customers an experience they will remember.