With the global fitness and health club industry generating more than 80 billion U.S dollars in revenue per year, it is clear the price associated with pumping iron has increased. This movement is causing more fitness-passionate individuals to open businesses within this industry, with the common choice being commercial gym startups. Commercial gyms require heavy upfront investment, due to the heavy price tag on gym equipment causing the whole process to be challenging.
To make this process easier, we have outlined the basic costs associated with opening a commercial gym in 2018.
When looking into the cost of opening a home gym it is important to consider the rates of legal certification prior to the consideration of elements like location and commercial gym equipment. Fortunately, certifications are relatively easy to obtain and don’t require a professional fitness qualification or many hurdles in regard to eligibility.
However, there are other legal requirements required in order to open a gym that usually have an attached price tag. Legal requirement fees can be thousands although this will all depend on what type of gym you open and what services you provide. The prominent legal component you will need that all businesses need will be insurance, which can be estimated at thousands monthly depending on a multitude of factors.
Commercial gym equipment
The cost of equipment will require the most upfront capital due to the sheer expense of modern gym equipment. Furthermore, due to their varying costs, it is nearly impossible to ballpark an estimate on the full cost of the entirety of required equipment although you can expect to be spending at least $50K alone for fully equipping a commercial gym. A good idea is to choose your gym equipment beforehand with a quota so you can incorporate this figure into your business plan and draw interest from more investors.
Location is a key financial factor and will be critical to the survival of your gym. It is wise to ensure you purchase a place with sufficient space but also works in well with your expenses. Obviously, your budget will determine the size and quality of the place you purchase, however, devising a good business plan and sourcing funding from investors can generate more freedom.
The average cost per-square-foot of industrial space intended for a special purpose in the US is $12 on a monthly basis. This means if you were considering opening a gym of 150 square feet it will cost you approximately $1800 a month to finance. This, therefore, draws attention to the size of the place you intend to choose as it that will determine its monthly rent.
Opening a commercial gym by yourself is impossible to maintain meaning the process of hiring additional staff and growing your team important. Your business will require the inclusion of personnel that provide and contribute different skills to the development and success of your business.
This means hiring a team that have backgrounds in administration, customer service, management and personal training is wise. Pay rates between all of these roles can range between $30K – $70K USD per annum and will vary based on the experience of the individuals you employ. These rates will again require careful consideration, as it has a heavy impact on the financial dynamics of your commercial gym business.
As you can see, there is a hefty price within with the fitness industry making the idea of opening a new business in this industry difficult. Although, ensuring careful consideration of all associated costs like certification, rent, gym equipment and staff pay rates will allow you to figure out sufficient financing to open your own commercial gym.