Swati Arora

Lifestyle - Writer
New Delhi - India
http://thelifestyleis.com/

    Feel the Earn – Making Money Running Your Own Gym

    April 24, 2017

    Making a living at your hobby has to be right up there with winning the lottery for many people. If your hobby is fitnessandyou have ever thought seriously about running your own place, here are some things to consider before taking the plunge.

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    Business Plan

    You need a business plan. If you’ve never even heard of a business plan before, much less seen one, that’s all the more reason to make one. A business plan will sort out all the details you have to manage before they bury you. And no lending institution will give you money unless you have one.

    Clientele

    An essential detail is clientele. Just being an expert at fitness and having endless enthusiasm are not enough. You have to do the research to see whether enough clients exist in the neighborhood you want to work. Will you have clients coming in as soon as you open the doors? If so, how many? How will you get more clients and how many will be enough to meet overhead?

    Location

    You’ve heard it before: location, location, location. Will your business be visible and easily accessible? Do a lot of potential clients live nearby? Is there competition in the area?

    Competition

    There will probably be competition in the area. You need to be crystal clear about what separates you from them. How is your gym different and why is it better? Can you explain to your banker why people will walk through your door instead of someone else’s?

    Prices

    You have to consider how much you can charge and compare that to your startup costs. Check out the prices of gym memberships that other fitness facilities charge ().

    Startup Costs

    You are not ready to start a business until you know what equipment and how much space you will need, and how many clients you will need to be successful.

    Here are some costs you need to be aware of. Rent is usually the biggest expense. Utilities for a gym can top $1000 a month. You will need liability insurance and it is not cheap, especially if anything at your place is even remotely dangerous, like a swimming pool or climbing wall. Rubber mats or heavy duty carpet to cover the floor can run $5 per square foot.Don’t forget office expenses including phone, internet, printer, copier and all the sundries.

    Whatever you plan, there will always be unanticipated expenses, so add an additional $500 to the startup cost and $100 to the monthly expenses. In addition, you should have at least two months operating expenses in reserve. Income, especially at the beginning, is never steady. Gym memberships are notorious for coming in a flood after New Year’s and dipping during the summer.

    Hiring help

    If you have a successful business you are going to need to pay someone at the front desk to manage traffic. You will also need an accountant just to be sure your taxes get filed correctly and on time. What about cleaning? Janitorial work takes a huge amount of time and you know how important keeping the gym clean is. Do you want to do all that yourself?

    Timeline

    Lay out a timeline with goals for growth. You should have a clear idea where you need to be one, two and three years down the line in the future. Monthly benchmarks are very helpful to keep you on track and deal with problems early.

    If you’re a serious athlete, you probably do something like this with your workout plan. Business is no different.

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