How much does it cost and what does it take to open a gym

You need to know the budget to open a gym, because it is a business that is booming. However, with all the possible options such as the type of installation, the commercial aspects and other factors, opening a gym can be discouraging because you do not know how to start, so you must evaluate several questions that will not lead to thinking about an average budget.

What do I need to have a budget to open a gym

So you can think of a budget to open a gym average, you must evaluate different factors, for example:

The type of installation: Deciding the type of facility you want to open is the starting point of your business, for which you must carry out a market research.

For example, if the area where you open your gym has a large population of women, it would not be a good idea to open a gym focused on martial arts.

Keep in mind that most government or small business organizations can offer you access to portals with demographic data with all the details about your area, as there is a resource in the United States called Stats America that provides you with demographic data for areas. metropolitan areas, counties and states, so make sure your gym caters to the demographics of your area.

Standalone facility or a franchise:

What the installation of your gym will cost will have to do with whether you choose to buy a franchise or prefer a separate installation.

Independent installation: Depending on your experience, you can choose to open an independent business without any external support, because in addition to being exciting, it gives you the freedom to offer what you want in your gym.

However, creating a prestigious brand and minimizing start-up costs will surely become a challenge, because on the one hand it gives you freedom but on the other hand you will not have brand recognition.

The franchise: If you are new to fitness, you may prefer to buy a franchise, as you will get a proven brand history, you will receive step-by-step support to start your business, and the startup costs are low.

However, while you gain in support and purchasing power, you will limit your creativity in terms of equipment, products and services and you will even need a budget for monthly royalties above the annual franchise fee. All franchises will offer you support, but you will have a cost with respect to the infrastructure.

Well, both options have pros and cons, so be sure to use the strategy that works best for your needs. You can even join IHRSA, an industry organization that allows you access to reports and resources from where you will get information on the most relevant topics.

Financing to open a gym:

One of the most common options is the Small Business Administration loan or SBA, as it will offer you the most competitive rates and will allocate funds for the costs of, for example, mirrors, cabinets, the floor, equipment etc.

But you should know that the acceptance process is quite extensive. For this reason, many gym owners choose to lease the equipment or finance it through fitness equipment factories, although the rates don’t hurt to be competitive compared to an SBA loan, as the lease only applies to equipment. of the company and not others that you may consider essential.

If you use a traditional loan, be sure to partner with a fitness equipment manufacturer whose products have a high resale value and have replacement parts available.

Even make sure that your financial strategy is within your means for the continued growth of your business. Read the fine print of the contract and be aware of any penalties.

The budget to open a gym and the legal aspects

When you set the budget to open a gymYou should also think about the legal aspects, since all the procedures have a cost that you will have to face.

EIN: Request the EIBN, employer identification number, since in the United States, opening a gym requires the payment of state and federal taxes. You can fill it out online and then you immediately receive your EIN.

Commercial license: Like any type of company, you must request the appropriate commercial license so that your gym can legally operate. However, it can be a long process, because each state has its own specific requirements and licenses to operate a gym.

Anyway, you can help yourself by going online to the Small Business Administration, for example in California you are required to apply for a state and local business license. However, opening your business is much easier than the other type, since you do not need to apply for federal licenses.

Paying taxes: You must register for the payment of state and local taxes, since it is a requirement for all companies to pay taxes, since the fiscal situation at the state and local level depends on the location of your gym and varies according to the law of state and local taxes.

To do this, you should check with state and local tax agencies and you will get specific information about the tax record.

The name of the business: You must register the name of the business in order for it to function legally. Like tax registration, the process may vary by location.

However, if the official name is the same as the business owner, if the official name is the same as that of the business owner, if the gym is a sole proprietorship it is probably not necessary.

But if it is different, you will need to register it with the clerk’s office in the county where the business will operate.

Insurance: You must obtain insurance that covers you against any injury that a client may suffer or you must even have coverage in the event of death in your gym due to high intensity exercise.

In short, the average cost of opening a gym is 10 to 50 thousand dollars including equipment, products, insurance and all legal aspects, which have a fee that you must pay.