How to Start a Fitness Studio
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The fitness industry has demonstrated remarkable expansion. The International Health, Racquet & Sportsclub Association (IHRSA) has indicated that the industry amassed over $96.7 billion in 2021. Fitness centers and gyms are a pivotal component of this market, with numerous individuals seeking effective and motivational spaces to pursue their health and fitness goals. Here’s what you need to know to start a fitness center or gym business.
What Are the Average Costs?
Typically, the average cost of starting a fitness studio on your own ranges from $100k to $250k. On the other hand, if you choose to buy a franchise location, the startup costs range from $239K-$1.5M. The costs vary according to:
Location
Size of the facility
Type of fitness services offered
Franchise vs. Do-It-Yourself (DIY)
Here is a list of potential startup costs for opening a DIY fitness studio:
1. Building Rent/Lease: This is the cost of renting or leasing a space of 2,000 sq./ft. to 10,000 sq./ft. where you will operate the fitness studio. It can range between $3,000-$15,000 per month.
2. Utilities and Insurance: Budget for utilities like electricity, water, and heat, as well as general liability, property insurance, and professional liability insurance. This could cost you $1,000-$2,500 per month.
3. Furniture and Decor: This includes reception furniture, office desk, computer, chairs, shelving, mirrors, and interior design elements for workout areas. This could cost you around $10,000-$40,000.
4. Gym Equipment and Supplies: These include treadmills, ellipticals, free weights, resistance machines, yoga mats, exercise balls, cleaning supplies, sound systems, and more. This could cost you $50,000-$200,000 depending on the equipment's quality and the services offered.
5. Staff Salaries: Budget for payroll for instructors, personal trainers, administrative personnel, and management. This could cost you $7,000-$20,000 per month.
6. Marketing Expenses: Promotion of your fitness studio is essential. This includes website creation, flyers, business cards, social media ads, and other advertisements. This could cost you $3,000-$7,000 per month.
7. Legal and License Fees: Register your business, obtain necessary licenses and permits, and secure legal and accounting services to ensure compliance with state and local regulations. This could cost you $3,000-$7,000.
8. Business Management Software: Organizational tools are pivotal for a smooth operation. Invest in software that helps manage class schedules, bookings, client memberships, and financial tracking. This could cost you $1,500-$5,000 to set up.
9. Working Capital: Maintain cash reserves to cover the fitness studio's expenses for at least three months or until the business becomes profitable. This could cost you $30,000-$50,000.
10. Total Estimated Cost: Considering all factors, an average estimate for a fitness studio startup cost falls between $100,000-$250,000 for initial equipment, supplies, and the first three months of expenses. As always, these costs can vary based on location, facility size, and other unique factors.
What are the Benefits of Owning a Fitness Studio?
1. Positive Impact on Health: Owning a fitness studio allows you to directly contribute to improving the health and well-being of your community members. Every day, you'll witness transformations, both physically and mentally.
2. Flexible Schedule: As the owner of a fitness studio, you have the autonomy to craft your schedule. While initial setup and operations might require more time, eventually you can decide the hours and days you work, allowing a work-life balance.
3. Personal Growth and Learning: The fitness industry is dynamic, with trends and innovations emerging regularly. This ensures continuous learning, from new workout regimes to understanding nutrition better.
4. Potential for High Profitability: A well-operated fitness studio can garner significant revenue, especially in health-conscious neighborhoods or regions. Membership models, especially, can provide consistent income.
5. Diverse Revenue Streams: Beyond typical membership fees, a fitness studio can enhance revenue through personal training sessions, group classes, merchandise sales, nutrition coaching, and even hosting events or workshops.
6. Stability in Health-Conscious Societies: As awareness of the importance of health and fitness continues to grow globally, fitness studios have seen a consistent rise in memberships and engagements. Even during challenging times, many prioritize their health, ensuring a certain level of resilience for the industry.
7. Community Building: Fitness studios often foster a strong sense of community among members. Hosting events, challenges, or workshops can help in building a loyal clientele base that not only frequents your studio but also promotes it through word-of-mouth.
8. Personal Satisfaction: Watching your clients achieve their fitness goals, overcome challenges, and lead healthier lives can be immensely satisfying. As an owner, you play a direct role in these transformations.
What are Common Mistakes of Owning a Fitness Studio?
1. Underestimating start-up costs: The initial outlay for a fitness studio can be hefty. Many make the mistake of not accounting for all potential expenses, from equipment and studio renovations to initial marketing campaigns.
2. Inadequate staff training: It's paramount that staff, especially trainers, are well-qualified and certified. Hiring without thorough background checks or skimping on training can compromise service quality and safety.
3. Ignoring local regulations and permits: Fitness studios often require special permits or licenses, and overlooking local zoning laws or health and safety regulations can lead to hefty fines or shutdowns.
4. Neglecting customer relations: In the fitness industry, building a rapport with clients is crucial. Poor customer service can lead to membership cancellations, poor reviews, and damage to the brand.
5. Overlooking marketing and branding: Simply opening a fitness studio doesn't guarantee clients. Failing to invest in effective marketing strategies can stall growth and limit client acquisition.
6. Not maintaining or updating equipment: Worn-out or outdated equipment not only looks unprofessional but can be a safety hazard. Regular maintenance checks and equipment updates are essential.
7. Lacking an emergency response plan: In the event of injuries, equipment malfunctions, or other emergencies, a prompt and effective response is necessary. Failing to prepare for such scenarios can be detrimental.
8. Underestimating the importance of cleanliness: Gyms can be breeding grounds for bacteria. Not investing enough in cleanliness or failing to have a regular cleaning schedule can deter members and pose health risks.
9. Not diversifying class offerings: Sticking to a monotonous routine or not updating class schedules based on trends can lead to decreased interest and membership drop-offs.
10. Overstretching too soon: While expansion and branching out are positive signs, doing it prematurely or without adequate research can lead to financial strain and operational challenges.
11. Failing to adapt to industry changes: The fitness industry is ever-evolving. Ignoring the latest trends, techniques, or technological advancements can leave a fitness studio trailing behind its competitors.
By being aware of these potential pitfalls, fitness studio owners can better prepare and increase their chances of success in the competitive fitness market.
For more resources on Fitness Studios, I’ve included some recommendations below.
Books on Starting a Fitness Studio
Gym Launch Secrets: The Step-By-Step Guide To Building A Massively Profitable Gym
by Alex Hormozi
Start Your Own Personal Training Business
by The Staff of Entrepreneur Media and Cheryl Kimball
The Fitness Entrepreneur's Handbook
by Pat Rigsby
Ignite the Fire: The Secrets to Building a Successful Personal Training Career
by Jonathan Goodman
Change Maker: Turn Your Passion for Health and Fitness into a Powerful Purpose and a Wildly Successful Career
by John Berardi
Software for Managing a Fitness Studio
ABC glofox
Specifically designed for gym owners! Our gym management software is built by fitness professionals, for fitness professionals. This boutique gym software is an all-in-one system - from scheduling classes to processing payments - with a branded mobile app and website integrations. Increase sales and retain more members with marketing integrations to Meta (Facebook), Mailchimp and many more.
TeamUp
TeamUp is software for ambitious business owners that does things differently. Take away the complexity of running your gym, box, or studio with easier-to-use and better value management software. Keep your classes full and bring all the best parts of your business together in one place. Easily manage all your gym/studio customers’ data all-in-one tool, streamline your admin and marketing activities, optimize your sales processes and stand out from competitors with the best client experience.
Associations and Training Programs
The International Health, Racquet & Sportsclub Association (IHRSA)
IHRSA's mission is to grow, promote, and protect the health and fitness industry, and to provide its members with the benefits that will help them be more successful. IHRSA and its members—health and fitness clubs, gyms, studios, sports and aquatic facilities, and industry partners—are dedicated to making the world healthier through regular exercise.
The Fitness Business Association (FBA)
The Fitness Business Association (FBA) aims to empower fitness professionals by offering comprehensive and advanced training through its FBA Certification Program. This program enables fitness professionals, studios, and gyms to unlock their full potential, equipping them with the knowledge and expertise necessary to excel in their careers.
IDEA Health and Fitness
As the fitness business model transforms, IDEAfit+ Membership helps pros navigate the competitive landscape. Members can gain customized training inspiration, education, and business solutions through a multi-channel array of resources including award-winning publications, incomparable live events—IDEA World Convention, IDEA World Virtual, and IDEA Personal Trainer Institute—and expansive online educational courses.
Fitness Studio Franchises
See Entrepreneur.com for a more detailed list of fitness studios.
Franchises Under $250,000
Jazzercise
https://www.jazzercise.com/teach/details
Dance Fitness Classes
Initial investment as low as $2K
Burn Boot Camp
https://franchise.burnbootcamp.com/
Gyms
Initial investment as low as $239K
Franchise Over $250,000
Planet Fitness
https://www.planetfitness.com/franchising/become-a-franchisee
Fitness clubs
Initial investment as low as $1.5M
How can I get a startup loan?
If you want to learn who the best loan sources are, click here to read our free article, How to Start a Business and Get Startup Capital. In this article, you will learn how to get startup capital ranging from $10,000 to $350,000. (And avoid wasting your time on low-probability sources.)