Gyms and fitness centers are relatively profitable businesses when compared to other small businesses. Indeed, in 2009, the US Small Business Administratio listed the fitness industry as one with exceptional growth potential, even in the face of the global recession. However, opening a gym can offer unique challenges that do not arise in other job opportunities. Read this article to get started building your gym from the ground up.
Steps
Part 1 of 4: Overcoming Legal Obstacles
Step 1. Submit to the Municipality an application for authorization for the opening of a facility for the exercise of recreational motor activity
Most of the bureaucratic problems for opening a gym is represented by the granting of authorizations. Also, you have to consider that many regions have specific laws governing the opening of gyms. You will need to attach the following documents to the request:
Copy of civil and professional liability insurance policy towards third parties; general plan of the premises; declaration of conformity pursuant to Law no. 46 of 5 March 1990 and relating to technological systems and, in particular, electrical and air systems; descriptive technical report drawn up by a qualified professional showing the compliance of the system with the regulations; certificate of static suitability relating to the load-bearing structures drawn up by a qualified technician; acoustic impact assessment; opinion of the supervisory health authority on the hygiene requirements of the environment; declaration of acceptance of the assignment by the technical director and the health manager; list of activities carried out
Step 2. Complete all questions and meet all requirements for starting your business
In particular, you will need to make sure that you have submitted the following questions and that you have received the following authorizations:
- Application for attribution of the VAT number, declaration of the start of activities to the Revenue Agency, health authorization, referring to the premises, issued by the competent Local Health Authority, fire prevention certificate, issued by the provincial fire brigade command (pursuant to the DPR 151/2011, if the capacity is greater than 100 people or the gross surface area greater than 200 square meters).
- Application for registration in the Register of Companies with notification of the start of activities in the Administrative Economic Repertoire (REA), registration in compulsory insurance against accidents at work and occupational diseases at Inail, registration in the management of contributions and social security benefits at the 'Inps or the Enpals.
Step 3. Remember that in order to manage a gym you will need to hire specialized personnel, in particular:
Qualified instructors according to the requirements of the specific regional regulation laws, a technical director, a health manager with a degree in medicine and surgery
Step 4. Finally, make sure you meet the general requirements established by law (Articles 11 and 92 of the TULPS)
That is, you must not have received criminal convictions and sentences restricting personal liberty exceeding three years, you must not be subjected to special surveillance or personal security measures, you must not have been convicted for crimes against public morality and morality, against health public or for games of chance or for crimes committed in a state of drunkenness or for fines concerning the prevention of alcoholism, infringements of the law on the lottery or drug abuse
Step 5. Contact your accountant for detailed information on taxes payable and any insurance
There is always the possibility of someone getting hurt and of course you need to legally protect your business in these situations
Step 6. Consider opening a toy library for your subscribers' children
It is a useful solution to attract customers who cannot afford a babysitter.
Obviously you need to find out about the permissions and insurance needed to open a similar business
Part 2 of 4: Planning Your Gym Opening
Step 1. Choose an accessible and fruitful location
As with other small businesses, a gym's location has a big impact on its success. People don't want to travel far to meet their fitness needs. The best locations are those where there is a demand for a gym, areas that are easy to access and where competition is minimal or manageable. Here are some things you should consider when choosing a location for your gym:
- Rent. Unless you build a gym yourself, you will need to consider rent as one of your operating expenses. The rent will vary from place to place. In high-income or densely populated areas, for example, renting can be very expensive and this can require increasing customer subscription prices.
- Proximity to residential areas. If your gym is too far from the clientele, it will remain empty. A room suitable for a gym should be close to residential areas or at the very least easily accessible by car or public transport.
- Local market conditions. Finally, the best location for a gym is where the demand is not met. Opening a gym in front of a gym that has already started is a risky move: why challenge the competition when you could open a gym in a part of the city that needs it most?
Step 2. Determine Your Gym Target
You can make a few phone calls or propose a door-to-door questionnaire to understand not only the age and gender of any customers, but also the level of physical activity that is practiced in the neighborhood.
Step 3. Find the capital you need or take out a loan
Like any business, opening a gym has a cost. Getting the space for the gym, buying equipment, doing the necessary work to make the venue suitable for the business, hiring staff, paying for licenses and registrations are major expenses. Most small business owners don't have the money to pay for all the expenses of opening a new gym. In these cases, you need to find the money somehow - usually you can do this by convincing wealthy investors to finance your project or by simply taking out a loan.
- According to some estimates, it takes between 250,000 and 700,000 euros to open a gym in a big city like New York. For a state-of-the-art gym, which offers all possible equipment and qualified personnel, the estimate can easily exceed one million euros.
- Check out this article for ideas on how to find investors.
- Note that in both of these situations you will need to provide the bank or investors with a detailed business plan to obtain the financing you are looking for. This business plan should offer a description of how your business can, in a short time, produce returns for your investors.
Step 4. Consider opening a franchise gym
This is a potentially profitable option. In this situation, the owner manages the gym for a large chain with many other locations. The parent company usually covers the initial costs of opening the gym and either provides the equipment or pays the expenses to purchase it. In most franchise businesses however, most of the profits go to the parent company. The venue may also be subject to sales quotas.
- The parent company will also offer its great assets to the gym owner, such as a recognizable and famous brand, training opportunities, business relationships and financial support in difficult times.
- As with other traditional forms of financing for small businesses, you will need to submit a detailed business plan to obtain authorization to open the venue.
- Make sure you do thorough research on the pros and cons of the franchise solution before adopting it. Running a franchise gym may seem tempting, but it's usually not as profitable as it seems.
Part 3 of 4: Equipping Your Gym
Step 1. Offer sports areas and equipment
The best gyms offer many training opportunities to their clients. You should take into consideration the interests of the people who attend your gym. One type of exercise that is fun and easy to provide is sports. You can offer and keep equipment for many popular sports for a low fee. For basketball, for example, all you need are several full-size baskets, which you can place outdoors or indoors. Below you will find many types of sports that you can offer in your gym (even the space and equipment needed for each one). Note that many gyms only offer some or none of these sports.
- Basketball: Regular-sized court and baskets (outdoor or indoor; usually requires court to be drawn).
- Football: Goals and pitch of regulation size with markings to mark the field.
- Race: athletics track; usually requires starting blocks and distance signals.
- Baseball: diamond or batting cages.
- Boxing: indoor ring, boxing bags, gloves and helmets.
- Swimming: outdoor or indoor pool. A lap pool is ideal, but smaller sizes will do as well.
Step 2. Purchase some weights
Fitness-loving members of your gym will often want to develop muscle, strength, and flexibility. This almost always results in doing strength-building exercises with free weights - dumbbells, barbells, bells, and other resistance training tools. Almost all self-respecting gyms have at least one area dedicated to weights. Below you will find some of the equipment offered by gyms for weight training:
- Lifting benches;
- Bars for squats;
- Deadlift mats;
- Rack for bicep curls;
- Bars for dips and pull-ups;
- Dumbbells and exercise benches for the upper body.
Step 3. Buy some machines
Most modern gyms offer isolation exercise machines in addition to weights. These machines allow clients to train one muscle or group of muscles at a time by lifting varying weight. While isolation exercise machines aren't all very helpful in terms of training efficiency, regular gym customers usually appreciate them because they allow weightlifting exercises to be performed easily and safely. Some types of machines found in many gyms are:
- Leg press;
- Traction machines with the backbones;
- Tricep extension machines;
- Leg extension machines;
- Chest fly machines;
- Shoulder lifting machine.
Step 4. Buy cardiovascular training equipment
In today's gyms, customers expect to have many options available for cardiovascular training. Many static machines allow clients to perform cardiovascular workouts without having to move around the gym. Commonly, in gyms, there are rooms dedicated to this type of training full of dozens of machines. Often, these rooms contain fans and televisions to entertain and make customers feel comfortable when exercising. Some types of cardiovascular training machines offered by gyms are:
- Exercise bike;
- Ellipticals;
- Tapis Roulant;
- Step;
- Rowers.
Step 5. Offer training courses
For some clients, part of the benefit of going to the gym (as opposed to working out at home) is the social aspect. For these people, training in the company of others can be more satisfying and rewarding than doing it alone. To attract this type of clientele, you could offer group training courses. These courses may require a dedicated space in the gym and the hiring of qualified instructors, but you can balance the cost by asking for a paid membership. Below you will find some of the fitness classes you may be offering in your gym:
- Swimming lessons;
- Martial arts courses;
- Spinning groups;
- Sports courses;
- Yoga;
- Pilates;
- Zumba (or other dance-based classes).
Part 4 of 4: Hire Qualified Personnel
Step 1. Hire representative staff
The first employee that customers will see upon entering your gym will be the one assigned at the entrance. These employees are the face of your gym and must offer a polite, professional and friendly welcome to customers. However, these employees are also responsible for not allowing any non-paying customers to enter the gym. In modern gyms, access is granted only to subscribers through the use of IDs that are assigned to customers during registration.
Since this type of person doesn't have to be highly qualified, these are perfect positions for low-income workers, such as young students, part-time staff, volunteers, etc
Step 2. Hire qualified instructors
Some gym clients are willing to pay for the services of a trained and experienced instructor to help them achieve their fitness goals. These instructors will usually have to guide their clients in private training sessions or in small groups. Instructors will also need to offer clients detailed plans for achieving their goals in the form of diets, training programs, and more.
- The qualification required by a personal trainer can vary. Almost all personal trainers will need to be athletic and fit, have a good understanding of anatomy and healthy training practices. A degree in health or biology may be required. A good personal trainer is also friendly, open and outgoing with all types of clients.
- Personal trainers can get certified from many private agencies. However, the standards of these agencies vary a lot. Some large fitness chains don't require their personal trainers to have this type of qualification.
Step 3. Hire instructors for the courses
If you offer classes in your gym (such as yoga, Zumba, swimming, etc.), you will need qualified instructors. These people can be members of your staff or external employees. Whether you choose to hire from the inside or the outside, you should make sure you find highly skilled people who have the experience to teach well and handle large groups of people.
Zumba and other courses with a registered name require instructors to be certified by the company that makes and sells the training materials. The certification process is usually straightforward and requires a short course, an easy test, and payment of a fee
Step 4. Hire maintenance and cleaning personnel
As with any business with clubs, gyms require cleaning and maintenance to make sure everything remains functional, presentable and safe. However, due to the nature of the activities that take place in the gym, maintenance needs will be greater than those of other activities of similar size.
To ensure that everything is running smoothly in your gym, you'll need to hire low-level orderlies, guardians, and other staff. You could also contract out maintenance and cleaning work to a company to avoid having to hire additional staff
Advice
- Auctions are a good source of equipment at low prices; in some cases you will find lower prices than in wholesalers.
- Find a venue large enough to host group and private classes.
