How to Start a Gym Business

You may obtain financing to purchase equipment to start a gym.

Running a successful gym business will allow you to make a living helping others meet their health and fitness goals. To start a gym, you will first need the financial resources to purchase the necessary workout equipment. Having a background in fitness management will also help attract customers and provide them training. An outgoing personality is another important trait for a gym owner as you will need to constantly market yourself and your business to new clients. If you have an friendly personality and a passion for fitness, running a gym may be the ideal business for you.

Difficulty:

Moderately Challenging

Instructions

1. Research the market for gyms in your area. Ideally, you will find an area without a nearby gym. Areas with new housing developments might be a good place to start.

2. Create a business plan that lists your projected startup costs for the business, your timeline for making a profit and your strategy for marketing to clients. Decide the services your gym will offer. For example, determine whether you will just provide workout equipment or offer other services like physical therapy or nutrition supplements.

3. Decide on the initial financing of your business. Your personal resources may not be enough to purchase the equipment needed for your gym and you will need outside financing. You can acquire bank loans, sell shares of your company to outside investors or finance through a combination of both. Be prepared to show your business plan to the bank and potential investors.

4. Make sure the business name you have in mind is not already in use. Search for it on your state's secretary of state website. If it's available, register your business name with the state government.

5. Contact the Internal Revenue Service for a tax identification number for the business. Register for state and local taxes, if necessary. Obtain proper insurance, including property, liability, workers compensation and unemployment insurance.

6. Decide on a location to open your gym, ideally in an area near a lot of traffic to help market your business. Your gym should also be in an area that's easy to reach and has adequate parking for your clients.

7. Hire any staff needed to run your gym -- start with at least a receptionist. You may also need personal trainers, physical therapists or nutritionists depending on the services your gym will offer.

8. Begin marketing your gym and signing up clients. Consider advertising through mailings, radio or television commercials or billboards along busy roads.

Tips & Warnings

• Be sure to ask for referrals when you sign up new members for your gym. This will help you build your gym more quickly and reduce your advertising costs.

References

• SBA.gov: Follow These Steps to Starting a Business