What Is the Cost To Open a Brand New Gym?

Although starting a gym is thrilling and gratifying, you must first set up your finances and create a budget. In this post, we’ll break down all the costs to start a gym.

Individual or business franchise

Before doing anything else, you must decide if you want to open your own gym or buy a franchise. Consider doing some study to see which is more suitable for you. Both single ownership and business franchising have advantages and disadvantages, so you must decide which is best for you. Franchise purchases will likely come with significant upfront charges and ongoing expenses. Franchise charges are not discussed in this article.

A breakdown of initial gym costs

Any gym business will include a few expenditures, including gym space, facilities, licensing and administrative charges, insurance, software applications, various gym materials, advertising and promotion, and utilities.

Space and place

It may cost $55,000 to operate a studio gym, while it would cost $115,000 to build a mid-sized gym. So, depending on the size of your gym, you may spend between $60,000 and $1,000,000 making it.

Gym apparatus

The kind and quantity of equipment you purchase will also affect the equipment prices. You may get a studio for $8,000 or a massive gym with all the gear you could want for $50,000. Make sure to choose high-quality gym equipment when investing to avoid having to repair it. Instead of repeatedly fixing the same piece of equipment, a one-time expenditure is significantly preferable.

Fees for licenses and registrations

Different fees apply for the license and permission depending on where you want to start the gym. You may need to conduct some study on your country’s or state’s company licenses and approvals. But you also need to register your trademark, get a business permit, and prove that your gym is secure for clients. For this, you also need legal advice from a lawyer. You must set up $3000 for the certificates, licenses, and permissions.

Insurance

In the event of a natural catastrophe, such as an explosion, fire, or storm damage, you must guarantee that your gym is protected. Any damage your members make to your business will be a problem since your facility will host many visitors. Consequently, it is essential to ensure the security of your gym. Be prepared to spend between $12,000 to $15,000 on insurance premiums. You will get excellent coverage from your insurance if you pay a higher premium.

Inside-out design

The design, the concept, the ambiance, the flooring, and other elements make up the interior design of your gym. Budgeting between $30,000 to $100,000, which covers all improvements, is necessary for the interior design.

Computer networks

To operate your gym more successfully, you would need a few methods. A point-of-sale system and gym management software are also necessary to ensure everything runs well. The initial cost of such hardware might range from $1,000 to $5,000, depending on your chosen components.

After the first investment, your gym management application may cost around $200 per month.

Equipment servicing

The most important thing is to spend money on high-quality gear. If you buy inexpensive gym equipment, you’ll have to do a significant amount of upkeep, raising your total operating expenses. To err on the side of caution, you should budget $1,500 for maintenance charges.

Utilities

A gym will use a lot of power, mainly if a large facility is open continuously. You’ll have to pay between $5,000 and $6,000 a month. You will also pay between $70 and $80 monthly for running water. In addition to power and water, you can offer Wi-Fi to your members; the price will depend on your internet connection provider.

Marketing and advertising

You must set aside money in your budget for your promotional efforts. Both conventional and gym digital marketing can be used in the campaign. Ideally, you should allocate $3,000 to your marketing initiatives.

Some gyms use online marketing, mainly via Facebook and Instagram, as opposed to more conventional forms of advertising. They use their funds to sponsor raffles, membership incentives, and other gym promotion events. 

Pay for employees

Paying your staff’s salary is the next expense you should consider. The quantity of workers you’ll have depends on the area of your gym business. You may hire between 3 to 12 staff based on your needs. The salary will change depending on the employee’s job role in your gym. Fitness instructors may make $40,000, personal trainers can make $60,000, and gym managers can make up to $70,000 annually, for instance. This means that your yearly employee salary budget should be $600,000.

Staff attire

Staff uniforms are entirely optional and not required. You should put up $800 if you wish to buy uniforms for your workers.

Various gym materials

Basic materials like pencils, paper or napkins, towels, soaps, and other amenities should be available in your gym. Therefore, you should set aside roughly $800 for other goods.

Signboards

Depending on the size and design, professional gym signage may cost anywhere from $100 to $300. For your members, digital signage may be entertaining and informative.

Short answer

We have now discussed the main expenses you would incur while opening a gym. The most straightforward way to track your spending is to make a gym budget plan.