Opening a gym or fitness facility can be a rewarding and profitable venture, but it’s important to carefully consider the potential costs and profits before taking the plunge. From renting or purchasing a space, to purchasing equipment and hiring staff, there are a multitude of expenses to consider. However, with the right business plan and gym marketing, a gym or fitness facility can thrive and generate a substantial profit.
The growth of the gym and fitness industry
The gym and fitness industry is set to grow over the coming years, according to market research group IBISWorld Inc. The industry is expected to reach $42 billion by 2026, thanks in part to the rise of hybrid fitness. This trend involves combining in-person workouts at a gym or fitness center with at-home virtual workouts. The COVID-19 pandemic has also spurred this trend, as many people have turned to online workouts to stay fit while practicing social distancing.
The cost of opening different types of gyms and fitness facilities
The cost of opening a gym or fitness facility varies depending on the type and size of the facility, as well as its location. For example, a small studio for yoga or personal training could cost around $25,000, while a larger facility for group classes could cost between $50,000 and $75,000. These costs include the initial investment in equipment and other necessities, such as flooring, mirrors, and sound systems.
Franchising and startup costs
If you’re interested in opening a gym or fitness facility as a franchise, you can expect to spend even more upfront. Franchises like Orangetheory can require initial investment costs ranging from $575,922 to $1,498,122. These costs include the trademark equipment, software, and branding that come with the franchise. Other types of franchises, such as CorePower Yoga and Retro Fitness, can also come with hefty startup costs.
Rent and equipment costs
One of the biggest costs for gym owners is rent. The amount you’ll need to spend on rent varies depending on the location of your facility. In some areas, you’ll pay just $1 to $3 per square foot in rent, while in others it can be much higher. For example, in Manhattan, rates can go for $150 per square foot. In addition to rent, gym owners also need to consider the cost of equipment. This can range from $20,000 to $40,000 for a small studio to $100,000 or more for a larger facility.
Other costs and potential income streams
In addition to rent and equipment costs, gym owners also need to consider the cost of hiring instructors and staff, as well as marketing and advertising expenses. However, despite these potential costs, opening a gym or fitness facility can be a profitable venture. Gyms and fitness facilities can offer a range of services, such as personal training, group classes, and fitness assessments, which can generate additional income. Gym owners can also offer memberships, class packages, and other services, which can provide a steady stream of income.
Conclusion and considerations for aspiring gym owners
In conclusion, opening a gym or fitness facility can be a profitable business venture, but it is important for aspiring gym owners to carefully consider the costs and potential profitability before making the decision to open a facility. By understanding the costs and potential income streams, gym owners can create a solid business plan and make informed decisions about the type and size of their facility, as well as its location.