Owning A Gym.......

[tzan]

I'm currently 23 and enrolled at a univeristy. Eventhough it's been four years I still have about 2 years left until I graduate. Today while I'm sitting their in class getting frustrated because it seems like the prof is talking in a foreign language I started questioning why exactly I was there. I mean I know I "should" earn a degree, but I really want to own or co-own a gym when I get older. This is a pretty stupid question, but if anyone owns a gym or knows someone who does about how much start up do you need. I know there are a million different variables that would influence the answer, but if someone could help me out a little it would be great. Fortunately I do have a pretty large sum held away. Any other tips or ways I could further research this would be great.

Thanks a lot

 

[beastboy]

I think the best advice would be to first figure out what type of gym you would like to have. Then from there, you can research what type of cost you will encounter. One thing I can say it will probably cost at least 25% more to start then what you expect it too. I am a business owner and have several friends that are as well, and they can tell you the same. Also, take you your time. I made too many quick decisions that have cost me and set me back. Nothing I can’t overcome, but if I would of thought it through more thoroughly, I would be sitting in a nicer position. You may also want to ask this question over on the C&C board…..

 

[Peyomp]

I asked a gym owner just now. He said that for something that would be good enough for say, a Gold's Gym, we're talking $250-300K for the equipment alone. For the total buildout and equipment, $400,000 is a reasonable cost.

If you've never started a business before... that could easily be alot higher. But after several gyms, thats his approximate cost.

 

[CrimsonKing]

What kind of returns do you get off the $400K? Do you clear 6 digit a year in gross profit?

 

[Peyomp]

You could... most don't. Gyms are very risky businesses. Ever noticed how many open and close? The turnover rate is really high.

 

[Doch910]

Most people decide to open a gym, then go okay were is the location going to be, and where can i get the equipment. Then buy everything, location and equipment. They start to get members but because no gym can grow fast enough, so the close very quick. This is because they owe so much money on the equipment, equipment is the most expensive part of owning a gym. You would want to plan about 2 years in advance, start buy used equipment out of the paper, and when other gyms close down. Then after you have all this equipment saved up, open your gym. Now all you have to pay is your lease, and utils. If you want your gym to have showers or anything extra like that, it will cost more because then you need to purchase insurance.

 

[beastboy]

Most people decide to open a gym, then go okay were is the location going to be, and where can i get the equipment. Then buy everything, location and equipment. They start to get members but because no gym can grow fast enough, so the close very quick. This is because they owe so much money on the equipment, equipment is the most expensive part of owning a gym. You would want to plan about 2 years in advance, start buy used equipment out of the paper, and when other gyms close down. Then after you have all this equipment saved up, open your gym. Now all you have to pay is your lease, and utils. If you want your gym to have showers or anything extra like that, it will cost more because then you need to purchase insurance.

You will need insurance no matter what....and it isn't cheap.

 

[Doch910]

No you don't need insurance, if you state in their membership contract that anything that happens is not the gym or the owners fault.

 

[Peyomp]

No you don't need insurance, if you state in their membership contract that anything that happens is not the gym or the owners fault.

The fact is that courts tend to wipe their asses with waivers. There are some things you just can't sign away.

Gym source pays $400 or $500 a month for insurance.

 

[FitnessFrk]

I was a co-owner of a gym at one time. what a pain in the ass. I will never do that again.

Location is the KEY !!!!!