How to Start a Gym or Fitness Center

You wake up at sunrise to teach the first class of the day at your new fitness studio. You love motivating your clients to reach optimum levels of health and wellbeing. This is what keeps you going when you face challenges or get overwhelmed in the nitty-gritty of running your own fitness center.

If this sounds like something you would love to do, then this article is for you! I’ll walk you through how to start your own gym or fitness center, as well as give you the resources to help you start your dream business.

Starting a gym or fitness center is not easy, but it can be extremely rewarding if you’re willing to put in the hard work.

To supplement this guide, I’ve interviewed two successful fitness business owners, Kaylee Cahoon of SMARTCore Method, and Marcela Xavier of Bread and Yoga. What struck me most about both interviews was the clarity and vision the owners had surrounding starting their businesses, and how specific they were about who they wanted to impact through their fitness services.

The fitness industry in America:

The fitness industry has exploded in recent years. In the U.S., total revenues reached 27 billion U.S. dollars last year. Marketing aimed at fighting obesity, as well as trends toward improving health and fitness, have contributed to this market rise.

Low market concentration has made a variety of fitness niches accessible in local communities. Only 18 percent of total revenue in 2016 was from the top four largest players in the fitness industry, while small specialty gyms and independently-owned fitness businesses made up the rest.

In addition, many of these gym and fitness centers employ very little to no staff, which makes startup costs and barriers to entry low. With the proper mix of skills, training, and commitment, starting a gym or fitness center can prove a successful business move.

First, ask yourself: Why do you want to open a gym?

Kaylee Cahoon, the creator and owner of SMARTCore Method in Franklin, Tennessee, says that starting a fitness enterprise must come from love and passion, or you won’t last very long in the industry.

With over thirty years of experience in movement, including professional modern dance, teaching, and various somatic movement modalities, Cahoon developed the SMARTCore Method to teach clients how to move smarter for optimal health and wellbeing. The method is a blend of somatic movement education, strength, balance, and functional and body weight training.

Her business is driven by her passion to educate clients on their bodies for optimal function, not just follow fitness fads and trends that can be harmful in the long run. “The fitness world needs to take a harder look at what’s happening in the body, how the body functions, and how it relates to other parts of the body,” she says.

In 2009, Marcela Xavier, the owner of Bread and Yoga, saw a need for a yoga studio in the Inwood community in upper Manhattan. She started the studio with the intention of creating a gathering space for the community that was inclusive of all ages and people. In addition to yoga, Bread and Yoga offers a wide array of holistic programs for children and adults aimed at encouraging overall health and wellbeing.

Get clear on why you want to start a gym or fitness center

Your reason behind opening a gym will help you maintain the focus, clarity, and drive it takes to become a successful enterprise.

Be honest with yourself. You may find that instead of starting a gym, you want to become a personal trainer or fitness instructor. Make sure you think through the possibilities and determine if starting a gym is the right choice for you.

Don’t skip the market research phase

Talk with fitness center owners to find out what it took to get their business up and running. Learning from those that are already successful in your field is a priceless education that can save you time and energy.

Step 1: Get trained and accredited

First and foremost, make sure you have the proper training, accreditations, and experience to start your own gym. Your clients will be counting on you not just to help them look great, but to keep their bodies healthy and safe using your services.

There are several different personal training certifications you can choose from, and other types of fitness offerings such as yoga, Pilates, or aerobics classes will come with their own certifications as well. You’ll also be responsible for making sure any staff you hire has proper certification.

Step 2: Identify your fitness niche

There are a variety of fitness niches to choose from. Explore these niches to determine what kind of fitness center you’d like to open.

Specialty fitness center:

• This niche focuses on one specialty fitness class or activity, such as aerobics, yoga, dance, Pilates, or cycling.
• Specialty fitness centers often offer a variety of class options based on differing levels, intensity, and complexity.
• Instructors are certified in a particular niche.
• Specialty fitness centers can often be more expensive due to the boutique experience, intimate design, and quality instructors.
• Monthly packages or memberships are often offered as an option.

Traditional gym:

• Traditional gyms provide a variety of workout options, including fitness classes, strength and cardio equipment, and personal training.
• They may provide additional amenities such as massage, sauna, tanning, and steam rooms for an additional fee.

Medical fitness and wellness center:

• These fitness centers provide physical therapy and other medical services to help clients manage, recover from, and prevent health issues.
• Usually associated with a doctor’s office or hospital.
• These centers often have professional staff specialized in managing, tracking, and measuring the progress of clients.
• They provide a variety of educational services for physical and mental wellness, in addition to group fitness classes and gym equipment.

Family fitness and wellness center:

• Family fitness and wellness centers include athletic and country clubs.
• They offer a variety of workout options for adults, seniors, teens, and children.
• These centers often provide classes and programs for youth such as swim lessons, sports clubs, summer camps, and childcare.
• May offer additional wellness amenities including massage, sauna, tanning, and steam rooms for an additional fee.

For-profit or nonprofit fitness center?

Consider whether you’d like to start your fitness center as a for-profit business or a nonprofit.

A nonprofit family wellness center, such as the YMCA, will provide services and programs for community members who cannot afford to pay full price. They often offer discounts for students and seniors. For-profit wellness facilities do not offer these discounts.

Step 3: Find the location

Determine how much space you will need based on the number of clients you want to serve. Consider factors such as street access, parking, foot traffic, and ease of finding your gym.

A good location is key to getting clients to your gym. Paying more money upfront for a visible location can be worth it.

Kaylee Cahoon found the right location by considering the developing area, a highly-educated population, and nearby medical facilities which aligned with her fitness niche.

Step 4: Figure out staffing and equipment

Check the training and accreditation of fitness instructors and personal trainers. Consider auditioning potential hires or hiring them temporarily before committing to keeping them as employees.

Decide whether the staff will be employees or independent contractors.

Consider whether you need to buy or lease fitness equipment. Leasing allows you to stay current on technology and assess your needs, but you give up ownership interest.

Step 5: Get financed

Ensure your finances are in good shape. Most financing groups and landlords want to see two years of tax returns and financial statements. Have enough money saved for personal expenses for at least 12 to 24 months.

Having a strong business plan can help secure funding. Check out sample business plans for guidance.

Step 6: Market your gym

Market and promote your business where your target customers spend time. Consider hiring someone for marketing, PR, or social media management, or do it yourself.

Offer free guest passes, membership discounts, and incentives to attract and retain clients.

Sample business plans and resources:

To get started, check out these sample business plans for gyms and fitness centers:

• Yoga Center Business Plan
• Health Club Business Plan
• Multi-Sport Complex Business Plan

For more information on loans, contracts, and assistance for small businesses, visit The U.S. Small Business Administration. Research tax information and sign up for an EIN on the IRS website. Check the Small Business Administration’s Licenses and Permits Resource to find out the specific documents, registrations, and licenses required in your state.

Andrew Brooks

Hello!

I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com.

My career is built on a foundation of helping individuals and businesses thrive financially in an ever-changing economic landscape. At phonenumber247.com, my aim is to demystify the complex world of finance, providing clear, actionable advice that can help you navigate your financial journey with confidence. Whether it’s personal finance management, investment strategies, or understanding the nuances of market dynamics, I’m here to share insights and tools that can propel you towards your financial goals.

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