Opening a gym

A friend of mine did this just about a year ago now
http://fitfxstudio.com/

They're succeeding, but it's a lot of work. Upscale location, catering to us middle aged fol,ks wanting to be more than weekend warriors by getting into Triathlons/Ironman/GrandFondo stuff.

Good luck.

 

I've been considering this myself...what I have discovered so far is that, above all else, you need some unique element that will set you apart and make people willing to shell out for your services (possibly the snow skiing/auto racing thing). A lot of free or nearly free rec centers have popped up around here, and that combined with the general reluctance of the masses to get on a routine and become long-term members has me a bit worried about taking the plunge. I've been trying to come up with unique classes and programs to tweak the formula a bit in addition to racking my brain for things to include that aren't readily found elsewhere. There aren't any gyms with boxing rings around me, for instance.

I think part of the key is selling it as a lifestyle, though. That's the best way to think about diet/exercise, anyway, so it really isn't deceitful in any way, at least IMO.

 

Are there a lot of skiers in Florida?

 

Probably more auto racers...

Personally I would not go that niche..

 

It would have to be in south Beach and have a hook like you said. Gyms here are so cut throat I would think he'd be better off trying to break ground into training the big $$$ clients from south beach to Palm Beach. Trends change so fast in Miami it would be very, very hard to survive long term giving the operating costs.

Why pay a gym 50%? That's insane when he can lease a truck, load it with gear and go to his clients. I a few friends who do just that by specializing in certain disciplines and they are doing very well. High profit/low overheads.

 

What specialized equipment and services will you have to attract your target clientele?

How many of your target demographic live within a 20 minute drive and have the free time and how many of them do you hope to attract? Which times would be best for them and what do you offer at those times? If it's always one on one sessions, how many trainers will you have and how much will they cost?

What will it cost in marketing dollars and time, to build up this clientele?

How long will that take? How much will the initial startup expense be--machines, signage, buildout, lease costs, advertising, launch, furniture, decor, etc., etc. How much will it cost to run on a daily basis? How long till you get to a client level where the costs are covered? When it starts breaking even, how long till it recovers the sunk costs?

Have you got any financial projections? Cash flow projections?

Do you have a person in mind to handle each and every little detail, from mopping up the equipment to doing taxes to front desk to marketing campaigns to bookkeeping to ordering supplies to servicing the machines to opening and closing to...

Unless you have thought about all this in detail, or have a manager in mind who has the experience and track record, I would advise you to just lay back and dream. It will be a lot better than the reality.

 

I owned a gym in my previous life and while the industry has changed a bit since the mid nineties, for the most part the challenges are probably the same. I could write a 10 page post on this - lots of mistakes I made - but for the most part it can be very rewarding both in terms of financial success but even more rewarding due to making a difference in people's lives.

IMHO the 2 key points to consider are:

1. Building lease/purchase
For almost every club this will be the single largest expense. Finding the correct spot both in terms do demographics as well as the monthly rent/mortgage payment can make or break a gym.

2. Marketing/traffic
Gym owners tend to focus too much (not like this is really possible) on the programs or equipment and services they offer, but fail to realize that no matter how great you and your trainers are, you will have a large turnover in your clientele. Let's face it: for anybody to be successful to meet their fitness goals takes time, discipline and hard work. Most of your members won't have any of them.
This means tha you have to generate constant traffic of new clients and that can be difficult when running day to day operations - additionally lots of gym owners tend to be fitness enthusiasts and might not have experience in marketing any business.

I know of a few great gym promotion companies. This one is owned by a good friend of mine; their blog tends to have some good info as well. Feel free to pm me with any questions, will be glad to give you my .02

Www.helpmygym.com

 

if i ever won the lottery i'd open a gym. That's my dream business i love the look and atmosphere of the gym.

 

It can be a great business and as long as you treat your clients AND employees good can also be financially very rewarding. The hardest thing for me were the hours and the feeling like I had to be there as much as possible when the doors were open.

 

I am a partner in a gym and can tell you what you need to know.

 

This seems like a really interesting question. Just in the past year I got really into the Insanity program, and now Four Hour Body.

Then last night I read that some people are saying Yoga is terrible for the body.

It seems like a gym that specialized in a particular philosophy, like a quick work out, would be easier to sell as unique. But then, live by the sword, die by the sword. Maybe as that particular "fad" expires, so will your business.

 

I see a gym as a struggle on a financial terms. I agree with the rent being a most important thing. Once you are locked in , you got a nut to crack. It never goes away. Lots of competition.

 

My trainer, who sadly I havent visited in 3 months, has his own gym and that was the major factor for my choosing him.

Its small, about 800 sq ft. Its located in a small strip mall in an *okay* area. He has one of pretty much everything you need.

Why only one ?

He only has one client at a time inside the facility. Its complete one on one training.

He is very booked up and charges $75 hour.

 

Get your CrossFit certification and open an affiliate gym. Proceed to charge $200-$300/month and make your fortune.

 

Crossfit gyms are freaking expensive. I looked into one and it was $110/mo. I think I'll stick with my $10/mo membership.

 

True that. Latching on to fads is a pretty quick way to end up in bankruptcy, IMO.

I think offering a pretty wide selection of sport specific training can be a good thing.

 

As a gym rat myself and someone whose good friend owns one, they aren't easy but can survive if you have good business sense and hire the right people.

You will have turnover. Lots. People get motivated and unmotivated in about two weeks. The lifetime gym rats will be your key clientele that will sustain your business and see it as their second home. Unfortunately these people usually already have a second home and don't leave very often. They view it almost as "cheating" on a spouse.

Outside the box tips that have worked for my friend.....really worked.

You will have to get to know your customers. Thank them for their business. Rarely do gym members of large gyms know the owner. Thus it's not personal when they leave or stop going. Thank them for choosing your gym.

Throw a customer appreciation party there AT the gym. Hire a DJ and provide drinks even if you trust it. My old gym used to. It was a crazy party and the women would show up looking hot. They had great food. Some food that wasn't healthy in the least. Some that was. It was always a fun party and I don't think I missed a single one.

Go to EVERY hotel in a 10 mile radius and offer their guests a $5 day pass or whatever is half off of your normal rate. The hotel will love it because a lot of businesspeople like to exercise and are often VERY disappointed with hotel gyms. This will allow the hotel to offer a special rate and they will feel like they are providing a nice solution to their guests and you will make an extra couple thousand per year. More importantly for you is that it brings extra bodies into your gym. While sometimes people don't like a gym that's so packed they can never get on a machine, a gym without bodies is the death of a gym. people want to go to a gym with a vibe. Bodies always create vibe and energy. Gyms are much like bars in that sense. People go to drink but they also like to socialize, people watch, and feel like they are part of a scene.

Have a juice bar there. Sell smoothies. Sell "nutrition" packages for customers at a steep discount included with their membership. Even if you have to charge more for the membership, sell the smoothies at cost. For example on their $50 month membership, add a "nutrition" package based on their performance requirements. For your fat loss goal customers, provide a fat loss smoothie with green tea, etc. For your seniors who are just wanting to be healthy put in ginkgo biloba or something. For your bodybuilders do the protein carb deal. You get the idea. Maybe you add $10-15 to their monthly cost. Again, sell this at YOUR cost. They will feel like they are getting a $4 customized smoothie for $.50 each. Instant value and part of your commitment to their gains and healthier lifestyle. This was probably the biggest "hook" that my old gym had. People LOVED to go up to the juice bar after their workout and hangout and get their "free, customized" smoothie to finish out their workout. Can you imagine how crappy it must have felt if they left that gym to another and finished their workout and just had to "go home" and not maximize their workout? They loved it.

Parking will be KEY. As crazy as it is to think about how someone who is there to get exercise is pissed that they have to walk a block to get on a treadmill and run 5 miles. Bit it's true. For women it's a huge safety concern. Huge. Women won't go where they don't feel safe. Parking is as important as anything.

That should give you plenty to think about.

 

Has anyone looked into a Snap Fitness or Anytime Fitness franchise? They do REALLY well by me and I have inquired about getting one. I am looking in the Vegas area as I would love to move back there sometime.


Mark

 

I was recently looking to find a gym (for use) and was looking at some of the big franchises. They are simply retarded at running these places. I went in with a free pass, and they literally would have let me walk out without talking to me about membership. Lucky for them I was completely intent on joining. Point being areas are becoming saturated with franchise gyms and with a little business sense and customer service you can probably do really well.

Privacy and trainer quality would certainly differentiate.

 

I have a friend who owns a very succesful personal training studio. I can ask him for more details if you'd like, but he and his partner are both the owners and there's no "investor" owner.

 

Very good point and spot on yet I would also emphasize on trainers who are very personable as they do not have to have degree's and such. The gym could also cater towards teaching the clients about basic nutrition and letting the members know that 'cheat days' are a requirement for ones sanity. I think the privacy aspect is HUGE and could be your niche yet there is a catch. If at all possible a fully owned facility on private property (not in some stinkin strip center) can help you cater to an exclusive mindset clientel. This could be huge in the sense you might have to start a waiting list but we all know how obsessed some people are about not only looking and feeling good but especially their privacy so a waiting list could be good.

 

Our company is expanding. We found an underperforming gym and just signed a LOI to buy it. We're in negotiations with the landlord to adjust the rent but even at the current figures a turnaround can be done in a couple of months. One thing I've found out about trainers--they are great at training but many have difficulties running a business. They don't understand cash flow or marketing.

 

It wouldn't take much money if I had it my way.

Bare-bones, bunch'a racks and platforms, a prowler or two and we're in business.