When it comes to starting your own business within the fitness industry, there are many things you’ll want to consider.
Whether you’re a personal trainer wanting to start a gym or an investor ready to expand your portfolio, let’s take a look at what it takes to start a fitness business.
- Location and Facility
Location is one of the most important factors when starting your business. This will determine the size, demographic, and revenue.
You have two options when starting your gym. You can purchase something that is already built or can build from the ground up using a steel building kit for fitness centers. Building from the ground up allows you to create the layout and design you desire most.
On the other hand, pre-builts are determined for you and can limit potential expansion opportunities.
- Draw Up a Business Plan
Every business can only be successful when it’s backed by a strategic plan. If you don’t have previous experience creating a business plan, you may want to hire someone who does.
This is important for predicting growth that can assist you with getting business loans or selling your idea to potential investors. Business plans should outline the first three to five years for your company.
- Gather Funding
While you may have a great business idea under your belt, you won’t be able to get anywhere when starting a business without the necessary funding. Your business plan and location are fundamental when creating the foundation for your budget.
You’ll need to also consider monthly expenses, employees, and other various costs such as renting equipment or making the necessary renovations. According to a recent report, starting a fitness center can cost anywhere from $30,000 to $500,000.
Once you have the numbers in check, you can start looking to get a business loan or start accumulating funding from investors.
- Create Your Marketing Plan
If you want your business to be successful, you need to make sure it gets out into the public eye. Your marketing plan will assist with generating buzz and new clientele. This should be done well before your fitness center is up and running.
In your strategy, you’ll want to include some of the fundamentals such as:
- A company website
- Social media accounts
- Email marketing campaigns
- SEO strategy
- Paid advertisements
- Affiliate marketing
While this might seem like a lot to undertake, several digital marketing agencies work specifically with small businesses to help get their digital presence off the ground.
- Register Your EIN Number
Every business requires it to be filed with the state. With this, you’ll receive an employer identification number (EIN). This will be used for tax purposes. Once you have this number, you’ll then need to go to your bank and set up a business account.
It’s always important to keep your personal and professional finances separate. Come tax time, it’ll make things significantly more complicated. Plus, if you’re ever in a legal situation, your personal assets will be protected.
- Acquire Necessary Permits and Insurance
No matter the type of business you’re in, you’ll need to make sure you have all the proper insurance and permits ready before your grand opening.
Because you’re working directly with people and heavy machinery, you’re technically at greater risk than someone who is starting a remote online business. Having the right insurance in place will ensure your company isn’t liable if someone is hurt while working out.
Every state and local town have their own specific set of legal requirements. Make sure to check with the clerk’s office to make your business compliant.
Starting a fitness business requires a substantial amount of work. It’s strongly recommended you speak to other professionals in the business such as other gym owners, accountants, and entrepreneurs.
Learn from the mistakes of others and they may be able to guide you to make starting your business even easier.