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Recently I’ve decided to sort out my fitness and get back into a regular gym routine. So I’ve started looking around the local gyms to find one that suits my needs. What struck me almost immediately however was the poor standard of many (small, old, dirty (hygiene-wise, I don’t mind spit and sawdust type gyms) and limited equipment) or the focus on Mr and Misses Average. Whilst being shown around several the instructors proudly told me that they “weren’t bodybuilding gyms”. Fair enough I can understand that the average person isn’t into that kind of thing, on the other hand though, who caters for those that do like bodybuilding gyms, or want to train as powerlifters, strongmen, boxers or even rugby players?
It seems the me that there’s a business opportunity here – opening a gym to cater for the niche markets (bodybuilders, powerlifters, boxers and others interested in strength training). It’s a niche market though, so you will need to make sure you’re close enough to where a large enough number of these people either live or work, otherwise you’ll struggle to break even.
When it comes to preparing a business plan for a gym, you’ll need to factor in a high start-up cost as the capital investment (£25K+ as a basic minimum) in equipment will be significant and by it’s very nature you’ll probably need quite large premises that will command a significant rent so allow at least another £25K+ for working capital. However you can cut this down by sourcing the equipment second hand from gyms that are closing down or alternately look for a gym business for sale and buy a gym ready made, then all you need to do is refine it’s offering and grow the membership. You’ll need to think carefully about the levels of membership, while it’s great for the business to be able to tie members into a 12 month contract, offering a monthly or pay-as-you-go option might help increase numbers. Offering free parking will also help.
If you’d like to explore the idea further, opening a gym has also been discussed on the forum here, here, and here. I’ve also been told the books by Thomas Plummer are very good: The Business of Fitness, Open a Fitness Business and Make Money Doing It and Making Money in the Fitness Business. I also came across Gym Biz: Starting and Running Your Own Gym for Profit which might prove useful.
If you’ve started, or are thinking of starting a gym what’s the experience been like so far?
Photo by: o0bsessed.
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This blog is about business opportunities and ideas that I spot, think of or hear about and think are useful and interesting. It is intended to provide ideas and inspriation for you to help you find the right business idea for you to then grow it into a successful business.
I suspect there are further costs in resources “in this case resources being mostly time, and the financial cost associated with taking up one’s time” to take into account when starting a gym: there is a need to know about safety regulations (and any other relevant law), what qualifications the staff you take on will need, getting insurance (which I’m guessing will also entail a significant financial cost, particularly for some of the niches you mention), and probably quite a few more things. How great these costs are will obviously depend on a person’s background the less experience one has in the gym industry the steeper the learning curve will be.
You don’t need any qualifications to open a gym – however if you offer any training advice I doubt you’ll get insurance without having formally trained staff.
Insurance, wages, rent, rates and the like are the reason for the additional £25K+ of working capital.
Can I sign up? I definitely need to lose lots of weight before much. The festive season weight is a bugger. Lol!
The industry is dominated by a couple of massive companies, most notably Fitness First. These companies offer facilities that you simply wouldn’t be able to compete with unless you have a large capital investment.
Josh
Josh,
Sure Fitness First and the like do dominate the scene for Mr and Mrs Average, but as I said in the post, there are a lot of gym users that aren’t interested in those kind of gyms and that those gyms aren’t interested in catering to i.e. bodybuilders, powerlifters, boxers and so on. If you target those market you don’t have to compete with Fitness First and the like.
John,
I respect your position but unless you are in a big city with a large potential membership (and with high property rental prices) I dont think you will be able to attract enough members who are interested in the niche market you mention (in my opinion). I like the idea as I myself do bodybuilding but I am in a minority of people to have this hobby/activity….obsession. Also what facilities could you provide that other gyms don’t? Many competitive bodybuilders go to my Fitness First gym and find the range of weights fine. Also boxers tend to use purpose built boxing gyms – complete with a range of punch bags, a ring etc – I’m unsure whether they would be more attracted to what you offer. I am interested to hear more.
Kind regards,
Josh
Josh,
I’m not sure you’ve understood the point of this blog. The post is a suggestion for a possible business idea – I’m not personally about to start a gym. For anyone that does choose to, the post suggests where there *might* be an opportunity. If there is an opportunity will depend on their local area (or the area in which they intend to start).
As for boxers using purpose built gyms – yes that was the point Fitness First etc don’t specifically for their needs, so if where you are based is short of a gym for boxers, but there are boxers looking for somewhere to train or traveling a long distance to train, then a purpose built gym for boxers is probably a good business opportunity.
I was thinking of buying a gym. A speciailized womens only gym. Just when I thought that found one that I think I might like to buy. another one I was interested in (that was not previously for sale now is)I now see that several womens gyms are for sale in my area. Does this mean it’s a bad time to buy.
I am concerned so many have gone onto the market at the same time. What might this mean for gyms in my area or buying a gym at this time?
with regards to the above posts and comments,id like to say that i have recently opened a fighting/fitness gym in Newcastle,as a result of a lack of facilities on offer to boxers and fighters and the general public..JJB are the gym round my way but ya just paying to use equipment,theres no guidance..theres no equipment specific to boxing or martial arts and infact such equipment is frowmed upon in such health gyms.i believe that with the UFC becoming more n more popular in the UK,people are catching on to their ideas for training,using cross-fit etc…way ahead of the UK,and very functional for any1.fighters or joe public.and its cost me less than 10k to start up,and in 2 weeks i have had over 120 people in, and i havent even advertised yet,and im already lookin to expand..ifya wanna look at my gym go on facebook and checkout fight-factorynortheast..thanx guys
Hi,
all this is a great help thanks, just one question….
money and qualifications sorted, what do you think an ideal age is to open your own gym?
I understand the point of this blog. I couldnt agree more. Most Gyms here in the US tend to cater to the average joe who likes to train chest, biceps and abs in order to look good at the club with their tight t-shirt.
Small, independent hardcore gyms are hard to come bye. I certainly wish I was in a financial postion to open my own studio.
Another thing too, if your training in a hardcore environment with all like-minded people surrounding you and pushing you, it’s only going to take your game/performance to the next level.
Trust me when I tell you that there is nothing more irriataing on this earth than getting ready for a heavy and intimidating set of deadlifts or squats and having some moron blabbing on his cellphone next to you.
Can you tell me what laws, rules and regualations all gyms and fitness centres need to follow?
I have to disagree with a few of the comments. people love to use an overall gym area. I have friends who own an LA Boxing Gym and a Joe Louis Motor Gym, all are franchises and they have a ring, weights, a mma cage and plenty of cardio equipment.It caters to Young Urban Proffesional Individuals.The white collar people love it and they pay top dollar.
Hi, Im also very interested in starting my own Gym as well. I was hoping about start in the NE London area but sourcing commercial property is quite difficult. I’ve got captial but not sure how to start and dont want to go down the franchise route, any ideas/investors?
Hey all…I’m in Los Angeles, Ca., one of the mecca’s for fitness facilities…just 1000′s. Demographics is the word here for the “general fitness gym” for the general public. BUT Josh has it right on! You must have your niche, as I have in athletic, functional performance training. Here I deal with athletes and as long as you are not located 50 miles away, the athlete will go where he needs to get his REAL work in. Plus they hate the “fufu” gyms. They only go to those places with friends just to have fun and be out in the public, and check out the scenery. You see the average person doesn’t even realize what a rip off those membership gyms have become. Most of the trainers got certified in like 6 wks or so and are just cutting there teeth at those places. The turnover is huge at that type of place. Anyway, get real and most definitely get your “niche” as mentioned
If you prefer buying a gym to starting one from scratch then here is a few that are up for sale at the moment http://www.business4sale.co.uk/Buy/Health-and-Fitness-Clubs-For-Sale-in-the-UK
i have a gym opened on October 2010. its not so stable . can u give some idea so its going smoothly .and i can profit
This is an old blog post, I know, but just wanted to add something here. While there may be a market for a specialist powerlifting/bodybuilding/boxing gym I don’t necessarily think it would be very profitable. I am quite sure that most gyms, especially the big names, make most of their money from the people who don’t turn up – i.e. the people who sign up on a recurring payment and never cancel because they always swear they’re going to go back one day.
In the PL/BB/boxing communities, people are more focused and a higher proportion of the people who sign up would actually use the gym. That means space on the equipment would be taken up and would therefore limit the amount of new people that could/would sign up. There you would face a bottleneck in your revenues.
I think the people who start such niche gyms often do it for the love of their sport rather than a money making business.
As an aside, I heard about an interesting business model the other day, a gym that charges you if you DON’T turn up. Innovative. And judging by the attendance patterns of most people, you’d make a fortune.