Americans spend a lot on fitness that reaches billions every year. In fact, their expenses in 2017 reached $30 billion spread over 103,000 gym businesses.
If you are planning to open your own fitness club, a franchise business model could be a better option. Not only would it give you a competitive advantage, but it also reduces the need for too much paperwork and strategic planning. While starting your own business from scratch gives you full control, there is the uncertainty of being successful beyond the first several months of your business.
Time and Effort for New Businesses
Like any other new business, a fitness club requires you to accomplish several steps before you could start to accept clients. Your source of business capital will be among the foremost things to consider for a startup gym. It is great if you already set aside money from your savings, but people seek a small business loan most of the time to cover the initial costs.
As soon as you have the money, that is when the real work begins. You would need to have a professional certificate to prove your capability of offering gym services. The variety of choices could be overwhelming, and it can be confusing to pick the right ones based on your preferred target market. Picking a good location is another important thing and your budget will primarily determine this. A rental property in a place with high foot traffic will definitely cost more.
Fitness Spending Among Americans
A survey of 1,350 adults showed between 18 and 65 years old showed that they each spend $155 every month for fitness expenses. These expenses comprise $33 for a gym membership, $56 on health supplements and $35 for clothing and accessories.
January is arguably the best time for gym businesses, as more people sign up for a membership as part of their New Year’s resolution. Whether or not you plan to buy a gym franchise, there are some expenses that will remain essential.
Other Underlying Expenses
Business insurance is one of the underlying expenses either for a start-up gym or a franchise business, as this covers any damages arising from untoward incidents such as injuries or accidents. Depending on the laws in your state, gym owners should have the right first aid kits and equipment for medical emergencies. In California, for instance, automated external defibrillators (AED) must be always available at the premises.
The state also requires gyms to have staff who trained in CPR and using the AEDs when necessary. All of these expenses may add to a total of up to $50,000, which is average cost of opening a gym.
You may say think that gym franchises are expensive with its initial investment fees and other recurring charges, but this gives you a better chance of competing against other existing businesses. If you are going to spend money on a venture, why not choose a business model that offers greater chance of staying afloat over a long-term period?