A majority of today's youth is into fitness and some among them decide to take their passion for fitness to the next step by owning a gym. The fact that becomes a hindrance to many is that gym business is a high investment business. Yet, we should not forget a bigger fact that it is one of the most profitable business. Reasons for its profitability are:
Fitness is a priority for many, especially after facing Coronavirus.
It's a one-time investment and would require upgrading based on personal choice and strategic plans.
We would be discussing below in detail the steps to be taken to plan your gym business.
Market Research
Research for a gym business starts with visiting different gyms and practically experiencing the components involved in setting up a gym.
To start with our research, the first question that you need to ask yourself is, "How passionate are you to start a gym business ?" Passion is the most important attribute when it comes to any business development. It acts as a fuel to your vehicle and helps you deliver the best service to your clients.
The next point on our checklist is location. As part of our research, we must check on few key pointers:
Locality: It can be housing area or a marketplace or next to universities. The purpose should be to have a location which is convenient for the members and not far away.
Visibility: The first step of marketing is to gain visibility. And a good location is one which is easily visible from a walkway or a main road. This lets people know that there is a gym out there.
Parking Space: This is one service that many gym owners miss to identify and this adversely impacts the business. Since members have a long term relationship with their gyms, they wouldn't like to park everyday randomly. They would rather prefer a parking space where they can park their 2-wheelers and 4-wheelers conveniently.
Nearby gyms: While doing a location search, it is important to a keep a note of what gyms are located nearby along with details on their performance.
Competitor analysis is the next most important step when it comes to research. For that, one needs to visit gyms and do a practical analysis of what is the USP (Unique Selling Proposition) of the gym and the gaps. The gaps are the prime ones to identify as those can be used as value adds while launching your venture.
Income Projection
Under Income Projection, the basic objective is to calculate the break-even point, i.e. the time to recover the invested amount. There are 2 components required to calculate income - Expenses and Revenue.
Expense: There are 2 major types of expenses.
Capital Expenses: These are the ones that are one-time and require maintenance over a longer time frame. Some examples of capital expenses are Gym equipments, Furniture, Paint, Security Cameras, Electrical fittings, Air Conditioner etc.
Working Capital Expenses: These are expenses that are done on smaller frequencies, i.e. daily, monthly, quarterly. Some of them are Rent, Electricity, Trainer Salary, Staff Salary, Water, Sanitization, Room fresheners etc.
Revenue: Revenue for a gym comes from 2 major sources.
Regular membership
Personal Training
A detailed example of how the projection needs to be done including the calculations is explained in the above video. We have also explained how to set a break even point and price your packages accordingly.
Fund Sourcing
These are many ways of fund sourcing, some of them are:
Savings of self/partners/family
Bank Loans - Make sure you get in touch with the right loan manager to fund your project.
Register your brand
Before registering, it is important to name your brand. Many feel it's an easy task, but we must remember that a brand name should be set with a vision to make it reach millions. Once done, you must register under state government and get your license. That does not cost much in India. It requires you to fulfill a big checklist and once done, you receive the license.
Hiring
Once the brand is registered, it is time to hire staff. These are types of staff required in a regular gym.
Trainers - Must be certified.
Cleaning staff
Front Office Executive
Security
Marketing
Now that you have everything done, it's time to inform our future customers that we are here. There are different ways of marketing a gym.
1. Traditional marketing - This is done by distributing flyers in nearby housing societies, universities, shops. Design the flyers effectively so that people should feel curious to visit your place.
2. Social media marketing - This is done by creating facebook page, Instagram page, Youtube channel and website. Make sure you have regular posts and have some introductory offers to attract customers.
How can you save money
Try buying second hand equipments which are at max 6 months to 1 year old. - Do a thorough research and watch the video to know more.
Use targeted marketing - To know more, consult with our business consultants.
These are the detailed steps for the setting up your first gym business.
If you want to learn any of the above in detail, visit the product site to check out the best packages on business development.
If you want to read about business development, visit our website.
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FITNESS IS THE NEED OF THE HOUR AND IF YOU WANT TO CONTRIBUTE, THIS IS THE ONE-STOP SOLUTION.
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