It seems like nearly everyone who loves to work out harbors a dream of opening their own gym or fitness studio and creating the perfect environment for other fitness fans to enjoy.
Of course, the reality of creating that perfect environment involves starting and running a real business, so it’s a bit more complicated than what you may dream up when fueled with adrenalin on the treadmill. But it’s certainly a worthy goal, considering the popularity of gyms and fitness studios right now.
Stats to Pump You Up
- The United States health and fitness industry supported 162,481 businesses, employing 769,042 people, and brought in about $33 billion in revenue in 2014.
- The U.S. Bureau of Labor Statistics has predicted an incredible 23% increase in the number of jobs needed in the Health and Fitness industry over the next 10 years.
- In the 10 years from 2001 to 2011, the number of personal trainers in the United States rose 44%, and is expected to rise by another 31.7% by 2020.
The Health and Fitness Horizon
The health and fitness industry has seen incredible growth in the last few decades as Americans are waking up to the toll the average American diet and lifestyle takes on the human body. As Baby Boomers age, many are finding a regular exercise routine helps reduce stress, build strength and stamina, and generally improve their quality of life.
In addition, corporations have jumped behind this trend by offering free or discounted gym memberships and other health-related programs as part of their benefits packages. Studies have shown that widespread adoption of a fitness program by employees boosts productivity and lowers healthcare insurance costs in the long run, so their motives are both pragmatic and practical.
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Diversity has come into the mix along with this recent surge in popularity as Americans crave a more personalized and eclectic menu of options to choose from beyond the basic treadmill/stationary bike/weight machine setup that defined the gym atmosphere for so long. Of course, standard fitness gyms of that nature are still popular and useful for millions, but these days they are competing with yoga and pilates studios, spinning studios, Crossfit, and a hundred other process and lifestyle adaptations that make up the modern fitness landscape.
Why buying a health and fitness business might be a great idea
Because of all these factors, buying an existing fitness business or into an established franchise (like Gold’s Gym or Planet Fitness), or opening a brand new, independent studio or gym, are equally appealing at this time.
The established franchises are huge right now, and their popularity has been bolstered by a drop in average membership price along with an increase in services offered over the last few years. This has trimmed profit margins slightly, but the difference is being more than made up for in volume as millions flock to join up.
At the same time, as wearable devices and fitness apps for the smartphone continue to improve and come down in price, more and more people are getting a handle on their own health and fitness. As a result, it’s becoming more important to them that if they’re going to pay to have a professional trainer assist them, or just to use professional equipment, they want to have a personalized and measurably beneficial experience.
While the big franchise gyms are approaching this need by hiring more personal trainers and shrinking the size of group programs, the real winners could be the tiny, independent personal training businesses, yoga studios, and other locations that cater more readily to the individual or small group.
Either way, the statistics show that the industry as a whole has seen a tremendous amount of growth in recent years, and the trend is expected to continue strong for years to come.
What you need to know before you start
As with starting any business, a rock solid business plan is far more important than any amount of dreaming and wishing.
To start a small, independent fitness studio or a one-person personal training business, startup capital can and should be fairly limited. If the bulk of the work involves bodyweight exercises, walking/running/dancing and movement control, as opposed to technical weight lifting or machine-assisted cardio, very little if any needs to spent on equipment and supplies.
On the opposite end of the spectrum, opening a large-scale gym with dozens of machines and rack after rack of free weights will require a significant up-front investment.
Either way, your business plan will serve as your blueprint for success because it allows you to plan in detail exactly what you’re going to need from a financial, marketing, staffing, and supplies standpoint, and will allow you the luxury of honing and perfecting the plan before you start spending valuable time and resources heading in the wrong direction.
On the opposite end of the spectrum, opening a large-scale gym with dozens of machines and rack after rack of free weights will require a significant up-front investment.
Either way, your business plan will serve as your blueprint for success because it allows you to plan in detail exactly what you’re going to need from a financial, marketing, staffing, and supplies standpoint, and will allow you the luxury of honing and perfecting the plan before you start spending valuable time and resources heading in the wrong direction.
The following areas must be covered in depth to give your new fitness company a chance at success:
- Location – There are so many fitness centers of one form or another in every corner of the country, so your location determines who and what you’re directly competing against, as well as the cost of your rent/lease.
- Marketing – For the same reason as above, you need to have a very clear idea of who you’re targeting for your gym or studio, and how you’re going to reach them consistently with a message that gives them reason to choose you over the competition.
- Capital – Based on your plans for size, venue, staffing and equipment, you may need to invest a few thousand, or hundreds of thousands of dollars in initial capital. Obviously, if financing is needed, your detailed business plan becomes even more vital.
- Products/Services – As noted above, the craving for diversity and personalization is part of what’s fueling the popularity of the health and fitness industry today. So, you’ll need to give a lot of thought and attention to how your particular lineup of products and services are going to differentiate you from your competition and appeal to your target market. (Many successful gyms have found that diversifying into complementary businesses—such as a healthy shake or smoothie bar on premises, or selling branded t-shirts and workout gear—goes a long way in offering differentiation as well as an alternative revenue stream.)
With these four categories under control, making a success of your gym or studio can rely to a large extent on the enjoyment and passion you bring to work every day. If you (and by extension, your staff) obviously love being there and customers are made to feel welcome and appreciated, you can expect them to keep coming back.
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