Even if virtual exercises may be done from home, all indicators are that hybrid fitness will be the future of fitness.
Specifically, market research firm IBISWorld Inc. predicts that the gym and fitness facility business will expand from its present $37 billion to $42 billion by 2026.
Therefore, you may consider starting your fitness center, and Hapana can assist you. (Read more: How much does it cost to start a gym)
If you want to operate a gym, keep the following expenditures in mind while you develop your business strategy and look for the ideal location.
The price tag associated with setting up various kinds of fitness centers
There’s no getting around that the amount of money you’ll need to spend to launch your fitness center will change significantly based on the specifics of the gym or exercise space you want to launch and your geographic location.
For around $25,000, according to Robert Linkul, a business counselor and member of the National Strength and Conditioning Association, you may operate a small studio for yoga, barre, or personal training (think 600 to 800 square feet).
Linkul advises spending $50,000 to $75,000 to establish a medium-sized gym (1,000 to 2,500 square feet) for group courses or other training.
If you want to build a 4,000-square-foot small group strength and conditioning gym with all the bells and whistles, know that Dan Kleckner, a fitness business advisor in Seattle and Montana, required $100,000 to launch each of his facilities.
Let’s break down the cost of opening a gym:
Small studio with minimal equipment = $25,000
Medium-sized gym for group classes = $50,000 to $75,000
Large gym with equipment = $100,000+
Franchise = $500,000+
How lucrative would it be to start a fitness center?
You might want to know the strategic gym marketing approaches and the potential return on investment for opening a new gym due to the large sum of money needed to get it up and running.
However, the amount of money you earn as a gym owner depends on several factors, many of which are connected to the type of gym you run.
Linkul likes tiny studio settings that provide yoga or barre since they need little equipment. Consequently, you probably won’t need to spend as much money as you would to create a gym with expensive equipment that will eventually break down and need to be replaced. A greater percentage of your overall earnings may be retained in this scenario.
How lucrative would it be to start a fitness center?
You likely want to know the potential return on investment for opening a new gym due to the large sum of money needed to get it up and running.
However, the amount of money you earn as a gym owner depends on several factors, many of which are connected to the type of gym you run.
Linkul likes tiny studio settings that provide yoga or barre since they need little equipment. Consequently, you probably won’t need to spend as much money as you would to create a gym with expensive equipment that will eventually break down and need to be replaced. A greater percentage of your overall earnings may be retained in this scenario.
Aside from that, if you live in a major city or other metropolitan region, you may have a better chance of making a profit with your boutique than with a franchise.
Kleckner emphasizes that if you decide to create a franchise now, “you’re going to be ninth or tenth to market in many regions.” “In Seattle, for example, there are probably ten gyms with group classes within two or three miles of us.”
As Kleckner points out, it will be more challenging to attract and retain enough members to produce a profit if you open a franchise or large box gym in a market that is already saturated with similar options. In such situations, it’s usually best to go out on one’s own and establish a business with a more specialized focus. A franchise group class gym retains members for around six months on average, but we keep ours for closer to thirty,” he says. (Here are some frugal ways to improve studio member retention.) Also, remember that paying a franchise fee implies paying a fixed portion of your revenues in perpetuity.
