I hear personal trainers bitch about their current situation, saying the classic line,Wait until I have my own gym, then I’m going to Further discussions reveal they’re stuck in fantasyland.
When I first broke off from the box gym I was working at, one of my personal trainer friends told me he was looking to move on, too. I asked him his plans and all he said was that he was going to buy the open lot down the road and start his own gym.
All I could think was: did he just rob a bank or did he get a very large inheritance from a relative? So he’s going to buy a lot, build a gym, buy all the equipment, hire personal trainers, and just sit back and rake in the money? I tried to sell him a bridge in Brooklyn, but he couldn’t afford it.
In reality, it takes a huge amount of planning just to see if it’s possible to start your own gym. Do your research, get all the numbers together, and then put it down in a fitness center business plan. Make sure you have someone who knows business — and has operated a business — go through the numbers and your plans with you.
If you’re going to be borrowing money from the bank, they’ll insist on a written business plan and projections. You need to have a thick skin during this process and be prepared for some tough questions. Close your eyes and pretend you’re on the show “Shark Tank.” It’s all about money to the bank — they care very little about your dreams!
Spend four to six months talking with other gym owners across the country. Most gym owners are very open to helping others and recounting the struggles they met in starting their businesses. Make at least three calls a week. Arrange a time to contact the owner and then put it on your schedule. Do not reschedule – they’re giving you their time and some excellent information. This is a listening session, so have a list of questions ready. Fight the urge to tell them all about your plans — just ask good questions and takes notes during these calls.
1) Style of gym along with the number of clients and all sources of revenue generated.
2) Expenses and operating costs including employees and the management of those employees.
3) Hurdles in starting your own gym, or unforeseen problems that arose.
Over time your questions can be more targeted to specific questions relating to your plans. After the first two months, you should only be talking to gym owners of the same style gym you’re planning to open.
Your research and planning should include a complete budget. Your business will need the obvious things of equipment, marketing, and a location, but make sure to include items that most people don’t think about. Things such as insurance, accounting, attorney and cleaning services, and utilities can add up to be major costs.
Use professional rates when doing your budget. Don’t fall into a trap that some people looking to start a gym fall into. Because their mother is an accountant and will be doing the books, they think the cost is zero – big mistake. Budget in a professional to do your services; you’ll want to rely on the advice of a professional when making critical business decisions.