How to start a gym business

To start a gym business, you need to plan your gym and evaluate the costs, obtain the necessary licenses and permits, and define your gym's brand. For details on each of these steps and others you can take to start a gym business, use this guide:

• Plan your gym and evaluate the costs. It costs anywhere between $50,000 to $1 million to start a gym.

  This wide range is attributed to the fact that there are many different kinds of gyms, and each has its own individual needs in terms of startup costs.

  For instance, a modest studio gym might only cost you around $65,000 to start, while a mid-sized facility could be as much as $115,000, or more.

  A very simple cycling gym might only cost you around $50,000 to get off the ground, while a state-of-the-art mega gym could run as much as $1 million, or possibly more, depending on the amenities.

  Here are some costs you should consider when starting a gym:

  • Location

    This cost can vary widely depending on what community you are trying to start your gym in.

    Depending on whether you are going to lease or purchase the space for your gym is another factor.

    If you go all out, in terms of equipment, spaces for yoga and spin classes, private locker rooms, showers, saunas, etc., you can expect to spend somewhere around $800,000 on your gym's location.

  • Equipment

    This cost can also range widely because it depends on what kind of gym you are starting and the services you will offer.

    A safe bet is in the range of $10,000 to $50,000, depending on the scale of your gym, and the equipment you want to offer.

  • Certifications for personal trainers

    If you can find certified personal trainers, you don't have to worry about this cost, but if your area is lacking in certified exercise professionals you should consider it.

    Getting your staff professionally certified can cost anywhere between $500 to $800 per certification. It's a cost worth considering because people will want to come to your gym to train or take classes if they know you employ certified professionals.

  • Legal and processing costs

    This includes things like negotiating your lease, closing the property sale, or just obtaining the proper permits and licenses for your gym.

    Fees also depend on how you structure your business, but it's safe to assume you are going to spend up to $9,000 in this area.

  • Computer networks of Point of Sale (POS) system

    These are both necessary in the modern age, as you are going to need an internet connection and computerized systems to run your gym efficiently.

    You can expect to spend anywhere from $1100 to $4,600 initially on these equipment and service purchases. Then you can expect to spend $550 to $2,300 annually.

  • Advertising

    This is an area of the cost you can be somewhat feasible on if you get creative.

    Utilizing free social media platforms to spread the word about your gym is a great way to save on costs. However, if you want to put in some more effort, you can expect to spend at least $5,000 on advertising costs initially.

  • Ongoing and recurring costs

    There are many ongoing and recurring costs you need to take into consideration when starting a gym.

    Here are some averages for the recurring costs of a gym:

    • Insurances - at least $12,000 annually

    • Equipment leases - $3,937 to $8,067

    • Utilities - $63,465 to $68,413 annually

    • Equipment repairs and maintenance - $12,609 to $29,980 annually

    • HVAC maintenance - $500 annually

    • Phone and Internet services - $75 per month or $900 annually

Reference your start-up capital to try and hone in on the decisions you will make concerning your gym's start-up costs.