While some people dream of opening a restaurant, others have slightly different ambitions and want to own a gym instead. If you’re in the latter group, there are some things you need to consider before getting started. Here are some of the biggest!
Independent or Franchise
Firstly, you need to decide whether you want to open a franchise or start your gym independently. What’s the difference? Well, buying into a franchise means that you can carry the brand name. Also, you’re likely to get support and resources from the parent company. Though you own the individual gym, you are part of a much bigger network of gym owners.
In truth, this is the biggest decision you’re likely to face. There are pros and cons to both approaches, so think carefully. Independent gyms might cost more and provide more challenges in terms of marketing, but you keep all the profits and own the brand name.
Current Performance
To cover all bases, those investing in an existing gym rather than opening a new one need to consider current performance. Why is the gym looking for investors? What do you get in return? What is the value of the company? How much input will you actually have after investing?
Competition
Whether you want to start a gym business in Sydney, or purchase an existing one, another important consideration is the amount of competition in the area. If you live in a small town and there are already five gyms, you’ll find it difficult to get off the ground. Therefore, research the competition and assess the viability of a new service in the market.
As part of your research, don’t be afraid to speak with people in the community. Remember, this isn’t an online service – you’ll rely on locals to visit your gym regularly to stay alive. With this in mind, speak with them and gauge their opinions on the potential of a new gym. If they’re open to the idea, you may just have a space to move into.
Access to Finance
Furthermore, you also need to think about your access to finance as a gym owner. Investing in gym accounting software will be a great option to manage your bills, expenses, and other finances. Even if you choose the franchise route, you’ll still need to invest a healthy amount to get started. As well as the startup costs, you’ll also need to pay franchise fees to carry the brand name. You might have funds to get started, but what if you don’t turn a profit for the first year? How long can you survive without profit? Do you have access to contingency funds?
Licenses, Employees, and Marketing
Finally, did you know that gyms require all sorts of building permits, licenses, and insurance policies? You might picture having fun classes with clients, but a gym is a business, and it requires some skill and experience to run. While on this note, do you have access to high-quality employees? Do you have a marketing strategy? Most towns and cities have gyms, so you’ll need to entice people away from their current gym if you’re to survive.
Before investing, think about all of these factors and review your determination. If you do all of the research and still think it’s a good option for your future, you’re ready to take the next step!
