Earn More MoneyNovember 30, 2020December 27, 2020

Want To Open A Gym? Here’s What You Need To Know

One of my earliest desires was to open a gym. However, as I got older my interests shifted. Although this happened, it did not change my love for working out. Being active and healthy has become a staple in my life, much like many other people. Working out and being active has many benefits. From reducing stress to increasing heart health, it’s safe to say that everyone should be the least bit active. However, many people look to turn their passion into a career. There can be many ways to do this, such as becoming a personal trainer. However, what if you want to open your own establishment? A place where people can go to improve themselves without being judged.

Opening a gym may be for you. However, there are many costs, liabilities, and other factors associated with opening a gym. Knowing all of this, would you think it’s still worth it? Many people would say yes. However, if you’re unsure, this may be the article for you. We will break down what you need to open a gym. Furthermore, we will take a look at how lucrative opening a gym could be.

Do You Need A Degree To Run A Gym?

Much like other businesses, you don’t need a degree to open up a gym. However, this does not mean that owning a degree is completely useless. Having a degree in certain subjects can definitely help you on your journey to creating a gym. For example, having a degree in anatomy or kinesiology can help when trying to progress people through their goals in your gym. Having a degree in marketing will help you create copy and material that’ll give your gym exposure. This exposure can translate to more clients and revenue.

Lastly, having a degree in business management can be extremely advantageous. Owning and operating a business is no small task. There are many stresses and factors that are associated with owning a business. Acquiring a degree in business management or admin can help prepare you for what you may encounter. Many people make large mistakes during their first business venture. However, acquiring such a degree can help minimize any mistakes you may make. Therefore, you do not need a degree to open up a gym. However, having one can serve as a great advantage whilst owning and operating your gym.

Create A Plan For The Gym

Much like any other business, you need to create a plan for the gym. This can mean many things. First, what type of gym do you want? Contrary to what some believe, all gyms are different. They are more than just a place you go to lift weights. Some gyms are catered towards a family-friendly environment, such as Planet Fitness. However, there are other gyms that cater to powerlifting and strength training. A clear example is the “Lunk” alarm at Planet Fitness. Essentially if you grunt or slam weights, they’ll sound an alarm and kick you out. This is due to the fact that they deem these acts intimidating and unwelcoming.

To the opposite effect, there are gyms that host powerlifting events and even have special equipment that contributes towards powerlifting. Most people will probably start off with a gym that’s in between. A Gym that is both welcoming to families and powerlifters alike. A good example of this is GoodLife Fitness. From my time going to GoodLife Fitness, I’ve seen basically anyone you could imagine. People looking to lose weight, gain muscle and become powerlifters. Furthermore, I’ve seen whole families go to the gym. Therefore, if you’re looking to make the most money and help the most people, opening a gym that welcomes everyone is most likely your best bet.

The Cost Of Creating And Running A Gym

Of course, the cost of a gym can be quite expensive. You most likely won’t be owning the building and the maintenance can be a pain. However, how much would it cost to open a gym? Furthermore, what are some of the costs associated with opening up your very own gym? The amount of money you spend goes deeper than just rent. You have to account for cleaners, workers, perks. gym equipment, TV’s, etc. This amount can cost you a pretty penny, my approximation would be around $100,000. However, we can take a look at Service Canada to get a more accurate amount. However, before we get into that, one thing you should definitely have as a gym owner is insurance. People get hurt all the time. Since gyms have a lot of heavyweights and moisture from people spilling water, insurance is a must.

Above is a picture that breaks down the cost and revenue of fitness and sports centers within Canada. Between the four quartiles, you’ll notice some glaring differences. Most notably, the amount of money they made. Of course, the top quartile makes the most money with the highest profit margin. However, what’s really interesting is the fact that as you go up in quartile, the amount of money you make increases while the amount you spend decreases. For example. the average operating cost of businesses in the bottom 25% quartile spends around $100,000. However, the top quartile spends around $43,000. It’s safe to assume this is the case because as you earn more money and get more customers, you can afford to mitigate costs in places you could not previously.

Is Opening A Gym Lucrative?

The facto of the matter is that opening up a gym can be extremely lucrative. However, it all depends on how you monetize your business in order to make money. For example, a huge bulk of your money will come from club memberships. However, there should be incentives and other ways for you to earn money in your business. The amount you personally take home will vary. This depends on both how profitable your company is and how much you feel comfortable taking out. Some people opt to take out a smaller amount such as $50,000 per year. This leaves a substantial amount left to help operate the business. However, if your business is more successful, you can easily pay yourself over $100,000 per year.

If you’re looking for ways to earn more money through your business, there are a few ways. First is vending machines and a snack bar. People will often want drinks and snacks after their workouts. Furthermore, many people won’t want to go to someone else entirely to get them. Therefore, implementing this feature into your gym can be extremely advantageous. You can even go as far as integrating a smoothie bar. This is a place where people can get protein-infused drinks.

Next, having multi-level memberships is a great idea. For example, the base membership could allow someone to partake in only working out. However, having a higher membership can allow people to take part in classes that are hosted at the gym. One of these could be hot yoga.

The last way to further monetize your gym that we’ll talk about is personal trainer packages. Personal training packages are not cheap and can be a great source of revenue for any gym. For example, GoodLife fitness has personal trainers. These trainers work their hardest to find people and sell them on packages. They’re not paid hourly. However, the more clients they have under their belt and training, the more money they’ll make. Of course, they don’t keep all the revenue. Most of the money from the packages go towards the gym.

Shameed Chris Khan

Shameed is just a man on a mission to help those around him gain financial success. Obsessed with writing about all things finance, this GTA native is constantly learning and sharing his experiences with others.