If you want to enjoy the lifestyle that comes with owning a fitness business, you have come to the right place!
While the fitness business has a tremendous amount of opportunities and options, we are going to outline some of the most common costs to start a traditional fitness business helping people get fit.
The cost to start a fitness business can range from as little as $1,000 up to $1,625,600, depending upon the size and scope of your goal. If you want to start a personal training business, you could get set up and start for about $1,000. If you want to start a Planet Fitness business, you could start one at as low as $1,625,600.
There are a lot of opportunities in the fitness business, from being a one-person operation to employing a staff and operating a big facility.
Let’s explore the costs to start a fitness business, and some of the opportunities that exist for you starting today.
15 Common Costs Needed to Start a Fitness Business
As you probably already know, the costs to start a classic gym varies a lot depending on the size and type of operation you want to operate.
For example, if you choose a boutique-style personal training studio with limited capacity, your costs will be much lower than starting a big box gym experience.
Additionally, you could very easily and quickly start a mobile personal training fitness business where all you need is some basic fitness equipment, and a location to train your customers.
It should be no surprise that the initial costs of opening a traditional gym aren’t cheap regardless of where you live in the United States – though some cities can be cheaper than others.
This article and lists of costs will be more focused on a brick ‘n mortar location.
However, based on your goals, you can easily get creative and tailor your fitness business so that you do not need to consider every item on this list. You can choose the relevant items and add them to your planning tools.
- Physical location – this cost will of course depend on the size and location of your gym, as well as your decision to rent or purchase the building. Aside from space for weights and machines, you may wish to include space for cardio, yoga or spin classes. More room means greater capacity for clients but it also means higher fixed costs. For example, you might provide locker rooms, showers or a sauna. You can easily spend $100,000’s with a big footprint.
- Gym equipment – this cost similarly has a large range, depending on the amount and type of equipment you want. Think somewhere between $10,000 for a personal training studio to $50,000 for a fully-equipped commercial gym, or more. Be sure to shop around—and keep in mind you can often get a discount if you purchase the equipment in sets as a complete package.
- Certifications – having a professional, certified staff is core. Accreditations for personal trainers can range from $500 to $800 per certification. Some certifications to explore include the American Council on Exercise (ACE), National Academy of Sports Medicine (NASM), International Sports Sciences Association (ISSA), American College of Sports Medicine (ACSM) and National Strength and Conditioning Association (NSCA).
- Licenses and permits – individual districts define the standards for which licenses and permits you’ll need. It is necessary and legal to explore all the business licenses you will and any required health and safety compliance permits as well. Costs will vary.
- Legal and processing fees – you may need professional help negotiating your lease, closing the property sale, or just muddling through the necessary licenses and permits for your gym. Expect to pay around $200 per hour for these services. Fees vary depending on which legal documents you’ll need (Certificate of Incorporation, Business License, Business Plan, Non-disclosure Agreement, Memorandum of Understanding, Employment Agreement, Operating Agreement, etc.), but expect to pay an average of at least $5,000 to get everything squared away.
- Insurance – insurance is a legal necessity, and especially important for a gym. You’ll need general liability, workers’ compensation and a surety bond as a minimum. Expect to have around $12,000 in premiums to begin, though rates will vary based on different factors (such as franchise situations).
- Building improvements and remodeling – this expenditure may or may not be necessary for you. You’ll at least need to do what it takes to get the building up to legal standards if it isn’t there already. Just keep in mind that remodeling costs accumulate, so it’s worth not getting carried away with expensive materials. If you choose to buy a franchise, you will invariably have build out costs unless you buy an existing location.
- Computer network and POS system – you will need to be set up with an Internet network and a point-of-sale system to accept modern forms of payment, such as Visa, Mastercard and Amex, as well as proper gym management software to ensure operations run as intended. Depending on which provider and level of hardware you choose, you’ll need to spend about $2,000 annually and often more.
- Signage – Here’s an opportunity to be incredibly resourceful. High-quality gym signage could be provided for as little as nothing or a few hundred dollars, though you could easily spend much more.
- Employee uniforms – this is another cost that is more advisory than necessary. It would be great to establish uniformity across staff wardrobe, for many reasons, not least to visibility and customer service. However, for a gym, ordinary workout outfits with company logo shirts can work well and are typical of the industry.
- Miscellaneous gym supplies – Customers and local regulators expect the availability of basic supplies, such as antibacterial sprays and hand sanitizers perhaps as well as towels, chairs, etc. for more of a premium feel. Not all gyms offer towels and chairs. Expect about $500 for the first round.
- Merchandise – don’t overlook a great opportunity to offer your customers supplies and merchandise that make the fitness lifestyle more of a pleasure. Think of muscle-fit and loose-fit tee-shirts, supplements such as protein shakes, high-end nutritional powders, health bars, chilled water and more. It is worth not over-buying to see what’s initially most popular – keep your inventory lean to begin with until you know what sells for your target market.
- Advertising – you’ll want to aggressively announce your presence locally to get the phone ringing. Your advertising budget could spend a few thousand to run a robust, more traditional ad campaign or get creative, for example, by handing out flyers and offering free coupons in high-density areas.
- Responsive website – every gym business needs a web presence. Expect to pay about $1,000 to get started.
- Operating cash – you’ll want some working capital and cash reserves for normal business operations. It is advisable to have at least 3 months of operating cash in the bank.
By no means a comprehensive list for setting up your fitness business but it should be a good start to get you thinking about some high level costs to consider as you lay out your goals and vision for your gym fitness business.