How to Open a Club Business
Planning and capital are two of the most important ingredients needed to start a club business. Clubs are a huge investment; but, on the other hand, that is exactly the reason you can expect large returns. Health clubs are no longer just places where people exercise; they are now complete lifestyle packages. Today, they are considered to be places where members can exercise, relax, socialize, catch up with friends and have a good time.
Other People Are Reading
Things You'll Need
- Starting capital
- Business plan
- Gym equipment
- Business license
- Business insurance
- Location
- Equipment
Instructions
-
-
1
Consider whether you want to start fresh, purchase an existing business or venture into a franchise. For experienced entrepreneurs, starting fresh or purchasing an existing business is a good idea. However, newbies should consider purchasing a franchise of an existing gym like Gold's Gym, Fit Express, etc. A franchise business opportunity would mean less investment and less hassle because almost everything would be planned. For example, the site, equipment, brand name recognition, marketing, staff, etc. would come in the franchise package.
-
2
Decide on your target market. You will need to determine the exact market to which the service is intended. You can either target people based on their income groups, or you can target them based on other things, such as profession, age, sports preferences, etc. You could also consider groups, such as busy professionals who do not have much time and would prefer a more tailored fitness program, or parents who have to adapt their training to their kids' school schedules. There can be a number of such distinctions; choose the ones you think make the most business sense depending on the location of the club.
-
-
3
Clubs can offer a variety of services to its members; focus on the services your club will offer. Of course, the needs of the target market and clientele will largely determine this. Examples of services include aerobics, cycling, swimming pools, boxing, yoga, circuit training, muscles training, pilates, obesity control and illness-specific services. You may consider workout areas set aside specifically for children or seniors.
-
4
Draft the business plan once you have decided on the services to offer. The business plan will include the financial plan, marketing plan, operations plan and strategy plan. The strategy plan would actually discuss the overall aims and objectives of starting the business and will be the basis for the other three plans. The financial plan will include information on how the capital for the club would be raised, potential profits from the club usage, expenses, investment like equipment, location, insurance, etc. The marketing plan will include information on how the business would be advertised and promoted. After all, what good would the club be if people do not know about it? The operation plan will include service and operational issues, and how they would be handled on a day-to-day basis.
-
5
Decide the location of the club. Analyze the target market and decide the location. If you will have office-goers as a majority of potential clients, consider opening the club in a commercial area. However, if major clientele would be homemakers, consider opening it in a residential area. If you would like to target the affluent people of the city, consider having it in a posh area. The idea is to have the club in an area that is easily accessible; otherwise it would be difficult for members to use the services regularly. Check if there is any competition or any existing club in the area. There is absolutely no point in duplicating services in the same neighborhood or area. Visit the local sports council for help and support. Consult a Realtor for the best location and price as per your needs.
-
6
Hire a good architect and interior designer. Ensure they have had previous experience in designing clubs. The reason for this is to ensure that a combination of the facilities and location provide an irresistible atmosphere for the clients. When you have an environment that is pleasant and soothing for the members, they are more likely to be receptive to the treatment they get.
-
7
Obtain the club license. For more information, visit the Secretary of State's office. A team of health inspectors will likely visit and review the club before granting the license. Ensure all equipment is in working order and all accessibility issues have been addressed. Insure the club and its equipment. Due to the nature of the club business, where health-related complications and accidents could occur, it is a good idea to carry full liability insurance.
-
8
Buy necessary equipment from sources like Shapes for Women or National Gym Supply. These companies sell commercial equipment and offer great packages and discounts for start-ups. Install innovative solutions that target the total well-being of the clients and add value proposition to the club. A club business depends largely on the ability to provide a combination of the right ambiance with excellent facilities in order to succeed. Consider having add-ons such as a steam parlour, sauna booths, massage parlors, tanning beds, beauty spa, facials, manicures, pedicures and other vanity treatments to attract more clients.
-
9
Ensure an adequate number of shower rooms and an ample amount of changing space, along with safes or lockers, are available to accommodate all the members. Consider having extras like a juice bar, small cafeteria or coffee place where members can wind down and relax with friends or workout buddies. Other add-ons could include televisions showcasing a sports channel, computers with Internet access, newspapers and magazines for members. Consider cutting-edge therapies that have been proved to work, such as music therapy.
-
10
Ensure you and your staff are adequately trained and well-qualified. Hold training sessions for the staff on a regular basis to ensure they are aware of changes and innovations in the industry. Join educational seminars and other industry seminars and training programs to ensure you are well-aware of the trends in the club industry.
-
11
Install club management software to manage membership fee dues, member detail database, payroll, client schedule, class schedule, personal trainer appointments, member attendance summary, and overall sales, expense and growth.
-
12
Advertise and market the club. Use newspapers, magazines, radio, flyers, brochures, etc. to market the new club. Give out free day passes to potential members to let them try the facilities before actually paying for the membership. Form a marketing strategy and revise it on a quarterly basis.
-
13
Ensure all members are happy and satisfied with the services. When a member of the club feels like the club is a great place to hang out, they are likely to refer friends to the club.
-
1
References
Resources
- Photo Credit gym image by Mat Hayward from Fotolia.com
