Starting a gym

Aaron Osaka · Apr 13, 2010

My wife and I are planning on opening up a small gym next year. We are most likely going to cater it to older folk and other less-hardcore people who live in the area.

The plan at the moment is for it to have a large studio and a small lifting area overlooking one of the few 'big' parks in the area. The average gym membership here is over $100 a month (and supplements are equally marked up to insane levels) but I think that the only reason they charge this much is because the average Joe here knows no better.

Are there any gym owners on this board that can give any tips?

One of the things I am looking into ATM is purchasing used equipment from the states and shipping it over here (equipment is pricey here--even used). I can get an insane deal on shipments (about 75% off the standard rate) so this is something we are strongly considering.

boss4romdabay · Apr 13, 2010

dont own any gyms but good luck with it bro

Cactus kid · Apr 13, 2010

I don't own a gym but i do own and run bootcamps. I have a lot to learn but this is what has worked so far and it might be of some use since we are after the same market:

1. The more I spend on marketing the more clients I have.
2. Brand yourself. Logos go along way.
3. When guving away logo shirts, make sure it is simthing they will ware.
4. Don't compete on price. Compete on value.
5. Do not underestimate customer service and word of mouth.
6. Work sympioticaly with other local biz.
7. Smile.

FIRE0808 · Apr 13, 2010

If you are catering more to old folks, opening a medical fitness would be awesome!

Aaron Osaka · Apr 13, 2010

Thanks for the advise guys, keep it coming.

monopoly · Apr 14, 2010

Are you opening the biz in Japan or the states? If you are in the states I can help with financing (if you need help).

I've been working with startups for over 8 years and I can tell you, the number one reason they fail is lack of cash. PM me if you have any questions and good luck!

Nssca · Apr 15, 2010

Lots ofTanning beds and lots of treadmills, stationary bikes, elevator music....no wait I'm thinking of PLANET FITNESS....LOL

TheKenpoKid · Apr 17, 2010

lol

Lots ofTanning beds and lots of treadmills, stationary bikes, elevator music....no wait I'm thinking of PLANET FITNESS....LOL

60 lb max dumbells and a lunk alarm?? come on Planet fitness lol

Aaron, I don't run a gym but the guy in my town has it almost monopolized and is very fair about it. he has specials all the time like 10$/month and like free college week for spring break and stuff like that but i'll be honest man, a guy in albany has extremely fair prices on supplements and shit and i'll never walk into a GNC again...ever!!! Just be fair man - don't rape people with prices and you should be fine - but don't be so cheap you ruin your profits

ericraven2003 · Apr 17, 2010

TheKenpoKid said:
60 lb max dumbells and a lunk alarm?? come on Planet fitness lol

Aaron, I don't run a gym but the guy in my town has it almost monopolized and is very fair about it. he has specials all the time like 10$/month and like free college week for spring break and stuff like that but i'll be honest man, a guy in albany has extremely fair prices on supplements and shit and i'll never walk into a GNC again...ever!!! Just be fair man - don't rape people with prices and you should be fine - but don't be so cheap you ruin your profits

If you are wanting a clientel with money, then you don't make it cheap. You want to keep out meatheads since the older people will have the money for traing, supplements,etc. Meat heads scare away your bread and butter clients.

I managed gyms for years in my old life. So I have seen Wal mart style gyms and higher end gyms. I would own a upper end one every time.

summersgold · Apr 20, 2010

Starting a gym is a difficult business. Victor Martinez started a gym in New York a few years ago and it failed in 2008. A friend of mine started a small one and he had to close after 2 years. Just too much competition.

taz · Jun 7, 2010

i dont know if you already did the ordering. but if not try contacting me. i am a manufacturers rep and we handle several options that i can get out there for you at reasonable rates. we have divisions all over the world.

shoot me a PM if you are still looking around. we do cardio and strength.

Ikzelf · Jul 22, 2010

I do not have a gym but a couple of friends wanted to start a gym. I have them heavily discouraged. In my neighborhood vary the fee revenue between $ 20 - $ 50. So you have a lot of members needed to get out your costs. It is important to establish a good budget.
And losses in the beginning will surely turn up but still will the bills arive. How do you get the money to pay the bills in the beginning..
Opinion: Create a good business plan and a multi-year budget

Donzi · Jul 22, 2010

I was a GM for a while (la fitness urgghhh). Hire a good sales staff and train them. when you think they are good train them more. When you think they are great keep training them. If you let off, they will go backwards. Its just like bodybuilding. There is no down time. If so, you loose progress. We trained on sales ( closing deals, overcoming objections, value vs cost etc etc..) every day for 1 hr 7 days a wk. That is how you continue to grow. LA has a new gym opening every 5 days. They are completly debt free and owned by 1 man (lewis welch). You must have a staff of only leaders. 1 bad apple can be the cancer to your entire dream. and PS I fucking hate LA Fitness.

BillHilton · Jul 22, 2010

I didn't have a gym, but I owned a restaurant for 6 years.

Cactus Kid stated much truth.

Word of Mouth could take care of everything -- IF you have the time to wait.
One thing about financing -- you have to pay it back. That may sound trite, but when money was easy, I saw a lot of friends act like their loans were net revenue.

Accept this deeply, get it now --- NONE of your employees will care about your place the way you do. It is reality.

Used equipment and an older clientele that we assume is more affluent? I don't know. It better look new and work like new.

Say what you will about Planet Fitness. When I travelled frequently in the North East, I was a member, but it was not my home gym. Why? Tons of locations, easy to locate, CHEAP membership and convenient hours.

I went to a Powerhouse Gym in Cleveland over the 4th -- pretty nice.

Analyze their business model and LA Fitness and Bally, too. They may not be what you want -- you need to understand the difference between you and them, though. My restaurant was the anti-franchise.

BTW, I shut down voluntarily because the family business turned to the family nightmare.

Your work will never be done and certainly not when you lock the doors for the day. This is not to say that you should not try it. If it is your dream, pursue it. I started by selling dessert to restaurants, then opening a place n a market house, then a full service white tablecloth, prime steaks, etc place,

But if I had stayed with the desserts and built that business, I bet anything I would still be at it.

Do not let anyone tell you you can't do it. And if you fail, say a big F YOU to anyone who says anything like I told you so. It is easy to be the critic, the credit belongs to the man in the trenches.

No offense to anyone, but I didn't get any reallly good advice from any banker, lender, insurance agent, etc. I did from my customers though, and from others who put it all on the line in their own businesses.

gigo2310 · Aug 19, 2010

Opening small gym

Hi Aaron
Opening a new gym can be hard but I think that you are right by considering used or even remanufactured equipment. Anything that you can do that saves you money for your operating costs is good busines sense. I work for a company that supplies used and remanufactured strength and cardio. Also consider a " one stop shop" such as my company. You can all that you need from flooring on up.
Let me know if I can help.

Good Luck!

TNT_REP · Oct 8, 2010

i can possibly help

Hey my friend. I have ben in the fitness industry about 18 years. I am actually in the process of building a brand new gym myself! Starting from ground 0 its a 1million$ process. If you have any questions let me know. I have worked for over 30 different gyms across the USA. I could probably answer any questions you may have or shoot you in the right direction.

Would love to help if I can my friend. lmk if I can assist you.

Nssca · Oct 12, 2010

If you plan on starting a gym/health club, cater to those who like aerobics, tennis courts, hand ball courts, steam and saunas, treadmills and elliptical...and a small weight room
also tanning beds included in the membership. an in-house massage therapist. add tv's on every wall.
The days of Just a weight room are long gone.:banghead:

Pheedno · Oct 21, 2010

I own a small gym, and just recently bought out a competitor up town.
I came into it catering to older, more financially sound individuals and priced my memberships a bit higher to purposely keep the younger crowd out. The gym I just bought out is a more hardcore, lifters gym which I'll keep in that capacity.

I don't market much, but I live on a small island so word spreads.
My biggest selling point is that I keep my gym immaculate. It's cleaner than anyone's home and my rep for that has made me thrive as the other gyms around town don't emphasize that aspect as much(most gyms dont). If you're catering to an older crowd, this is a huuuge thing. My gym memberships cost twice what the one up town does and I'm buying them out now.
I run bootcamps(which I do market on a limited basis) to cater to those who live on the other side of town and non-members.
I offer free towel service and dished out a little extra money on some granite and marble for counter tops and some other nicer fixtures. I choose a very clean, sleek look. No bright colors. Blacks, browns, stainless, etc. It's gone over real well.
Customer service. Everyone knows everyone. My business is my community and I treat my customers as friends.
Other than that, don't make the mistake of charging necessities to a credit card, spend less than you're taking in, and expect to work WAY more than you get paid for, at least for the first bit of a while. I pull down 80hrs a week, easily.

On the equipment. I would never buy new equipment. I have pieces that are double digits in age, but with good maintenance and cosmetics here and there, they look and function like new. You wont find 1% of your members having a clue what pieces are new or old. The styles dont change like care models. Get some quality used equipment and get yourself set up with a reputable service guy who will come out and do quarterly maintenance to keep things in top form.
Have a good variety of cardio and make that the top priority to maintain. They'll be used far more than the resistance equip.

Building out a room for massage therapy, and a tanning bed or two would serve you well, too. I got my bed used for a reasonable price and it's paid for after 16 months.