Owning A Gym.......

[tzan]

I'm currently 23 and enrolled at a univeristy. Eventhough it's been four years I still have about 2 years left until I graduate. Today while I'm sitting their in class getting frustrated because it seems like the prof is talking in a foreign language I started questioning why exactly I was there. I mean I know I "should" earn a degree, but I really want to own or co-own a gym when I get older. This is a pretty stupid question, but if anyone owns a gym or knows someone who does about how much start up do you need. I know there are a million different variables that would influence the answer, but if someone could help me out a little it would be great. Fortunately I do have a pretty large sum held away. Any other tips or ways I could further research this would be great.

Thanks a lot

 

[beastboy]

I think the best advice would be to first figure out what type of gym you would like to have. Then from there, you can research what type of cost you will encounter. One thing I can say it will probably cost at least 25% more to start then what you expect it too. I am a business owner and have several friends that are as well, and they can tell you the same. Also, take you your time. I made too many quick decisions that have cost me and set me back. Nothing I can’t overcome, but if I would of thought it through more thoroughly, I would be sitting in a nicer position. You may also want to ask this question over on the C&C board…..

 

[Peyomp]

I asked a gym owner just now. He said that for something that would be good enough for say, a Gold's Gym, we're talking $250-300K for the equipment alone. For the total buildout and equipment, $400,000 is a reasonable cost.

If you've never started a business before... that could easily be alot higher. But after several gyms, thats his approximate cost.

 

[CrimsonKing]

What kind of returns do you get off the $400K? Do you clear 6 digit a year in gross profit?

 

[Peyomp]

You could... most don't. Gyms are very risky businesses. Ever noticed how many open and close? The turnover rate is really high.

 

[Doch910]

Most people decide to open a gym, then go okay were is the location going to be, and where can i get the equipment. Then buy everything, location and equipment. They start to get members but because no gym can grow fast enough, so the close very quick. This is because they owe so much money on the equipment, equipment is the most expensive part of owning a gym. You would want to plan about 2 years in advance, start buy used equipment out of the paper, and when other gyms close down. Then after you have all this equipment saved up, open your gym. Now all you have to pay is your lease, and utils. If you want your gym to have showers or anything extra like that, it will cost more because then you need to purchase insurance.

 

[beastboy]

Most people decide to open a gym, then go okay were is the location going to be, and where can i get the equipment. Then buy everything, location and equipment. They start to get members but because no gym can grow fast enough, so the close very quick. This is because they owe so much money on the equipment, equipment is the most expensive part of owning a gym. You would want to plan about 2 years in advance, start buy used equipment out of the paper, and when other gyms close down. Then after you have all this equipment saved up, open your gym. Now all you have to pay is your lease, and utils. If you want your gym to have showers or anything extra like that, it will cost more because then you need to purchase insurance.

You will need insurance no matter what....and it isn't cheap.

 

[Doch910]

No you don't need insurance, if you state in their membership contract that anything that happens is not the gym or the owners fault.

 

[Peyomp]

No you don't need insurance, if you state in their membership contract that anything that happens is not the gym or the owners fault.

The fact is that courts tend to wipe their asses with waivers. There are some things you just can't sign away.

Gym source pays $400 or $500 a month for insurance.

 

[FitnessFrk]

I was a co-owner of a gym at one time. what a pain in the ass. I will never do that again.

Location is the KEY !!!!!

 

[beastboy]

No you don't need insurance, if you state in their membership contract that anything that happens is not the gym or the owners fault.

What if you're gym is broken into, or a fire??

 

[Doch910]

it should be covered in your lease.

 

[Robert Jan]

you dont need all them crappy shit overpriced machines with cables and chains etc etc etc

just get a good big load of irons and the very basics imo.

if they ask where the cardio equipment is point them to the door and tell them to run to town and back.

 

[Susp's_Babe]

tzan -
I just wanted to encourage you in finishing your degree at the Universtiy. You are over halfway there - and it is something that will be very valuable to you - no matter what you want to do in the future.

My fiance was in the same place you were last year - he just wants to be a personal trainer - and didn't feel like he needed his college experience. However - he found out that many certifications for personal trainers require a four year degree!

You never know what is ahead of you! Good luck with your goals.

 

[Hannibal]

if they ask where the cardio equipment is point them to the door and tell them to run to town and back.

Drag the sled...

 

[CytoMel]

A lot of commercial gyms prefer the cardioclowns over the serious lifters. In a lot of gyms you will find that they spend their $ on fancy treadmills, stairclimbers and crappy smith machines when they only have one set of 30lb dumbells and chipped 45lb plates.

Gym owners make their real $ on those losers who buy lonterm memberships and then show up for a few months and quit with a year or more left on their contracts.

 

[TheProject]

Most people decide to open a gym, then go okay were is the location going to be, and where can i get the equipment. Then buy everything, location and equipment. They start to get members but because no gym can grow fast enough, so the close very quick. This is because they owe so much money on the equipment, equipment is the most expensive part of owning a gym. You would want to plan about 2 years in advance, start buy used equipment out of the paper, and when other gyms close down. Then after you have all this equipment saved up, open your gym. Now all you have to pay is your lease, and utils. If you want your gym to have showers or anything extra like that, it will cost more because then you need to purchase insurance.

Not only 2 years, but as a general rule, most small businesses should be able to operate at a loss for the first 2-3 years, break even the 4th year, and turn a profit the 5th year. You should plan to have enough capital to operate that long.

 

[spatts]

Hannibal and I are talking about opening a PL/storngperson training facility here in KC. We plan to make it so we don't NEED members. People can train by invitation or application and must be dead serious. If they want to do cardio, I'm sure we can find a chain to jump rope with. It will be the bare minimum, nothing fancy, no eye-candy, just a place to work. We're even looking for dual zoned property so Hannibal could live on site. That saves $700 a month that can go tward the facility.