Opening up your own gym sounds like a fun idea. There is a good chance you are probably a fitness enthusiast who would love to share their love of health and fitness with others, and what better way to do it than starting your own gym. However, before you get carried away and begin remodelling the gym space and purchasing new equipment, you have to keep your eyes on the prize.
You may have the best gym around, but if you are not making a suitable profit, then you are eventually going to go out of business or walk away severely in debt. There are numerous gyms that go out of business every year because they forget that profit is the main goal and everything else is second. Below are some things to keep in mind to ensure that your business remains profitable so that you can keep on living the dream of being a gym owner.
Calculate Membership Fees Carefully
Your gym membership fees have to be low enough to entice people to sign up for year memberships, but it also has to be high enough so that they can pay your bills. Erring on either side can be detrimental to the success of your gym business. Of course, having discounted gym membership drives every now and then where the first month of a yearly membership is free or other such promotions can lure in the people that are not sure about signing up, but want to feel like they are getting a good deal.
Supplement Your Income with Supplements
It is reported that the vitamin and supplement field is a $37 billion industry. What more perfect place to purchase these things than a trusted fitness center? Find some quality brands that you can endorse and stand behind, then offer them to your customers. Making ten dollars for every tub of protein you sell can quickly add up. Even if you are only profiting a dollar or two for every bottle of vitamins you sell, it is money you wouldn’t have otherwise. It doesn’t have to be a huge selection eating away from your total square footage, but placing it near the front doors so your members see it early and often will drum up the sales.
Offer Personal Training
Even the smallest gyms can provide personal training to their members. And in doing so, you are going to bank some serious money. Most gyms charge between $30 and $50 per hour for personal training. If you don’t feel adequately qualified to do the gym’s personal training, then find someone who does. Allow them to use the facility and provide them clients, but you keep half of the money. It is a win-win for everyone involved.
Save on Commercial Equipment
The most expensive part of starting your gym is the initial cost of the equipment. It is quite likely a one time fee, though, since much of the commercial equipment can last forever with a bit of upkeep. Instead of buying new equipment, which can leave you spending well over a hundred thousand, purchase slightly used equipment and get it for a fraction of the cost. In fact, with some fully stocked gyms going out of business for one reason or another, you can simply buy up their equipment for a hugely discounted rate. Search for the best deal possible when making this investment. If you get it all at a good price, it will be much easier to make an early profit.
Make Certain You Have the Time
There are those individuals that have a busy life, but still try to start up a gym on the side. In doing so, they often underestimate the amount of time it takes to build up a gym from nothing. If you don’t have the adequate time to put in for making your gym a success, it could lead to its downfall. Of course, you can always hire someone to manage it for you, but this will eat into any profits that you might make. If you don’t have the time needed, consider making it a family project with everyone chipping in. After all, if it is a success then the entire family will benefit from it.
Create a Business Plan
Knowing what you are in store for by creating a business plan can enable you to see hidden expenses that you may not have originally thought of. If you are not certain how to make a business plan, there are examples online for gyms that are probably pretty similar to yours. Think of it as a guide on what you need to be doing to make your gym a success. You don’t have to be following it word for word, but have it available and look at it early and often to keep you on track. Your main goal is to make this business venture profitable, and if you fail to plan, then you are planning to fail.