Are you thinking about opening a fitness center? If you are, do you know how much it costs to open a fitness center? There are many factors to watch over, from location to the services you want to give at your fitness center.
Building a fitness center is a virtuous choice for starting a career in the fitness industry. But nothing comes without any reasonable effort, hard work, and time. Because at the current period, the business growth and revenue are remarkable.
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According to a Profitable Venture
- Registration fees are around $700-$800
- Legal expenses for obtaining permits and licenses will be approximately $15,500
- Marketing expenses for the grand opening, including promotional costs and flyer printing, will be around $3,650
- If you want to hire a business consultant for business strategies or different plans, it will cost $2500
- Business insurance will be going to $30,500
- The cost for leasing a faculty in an excellent centralized location will be $350,500
- Operational costs for the first 3 months will be around $60,500
- The cost for start-up inventory, Fitness Gym equipment, and machines will be approximately $500,000
You might be wondering whether this is the right time to open a fitness business after covid-19 and lockdown. After all, in lockdown and covid-19 waves, many fitness centers were closed out by their owners. The struggle of the fitness industry in the past 2 or 3 years is not something that anyone can hide. Then why do you want to become a part of this industry?
But let me tell you something, 2022 is the right time to open up a fitness center. After the lockdown fitness industry struggled, but people get aware of fitness, and the ratio of people who went to fitness centers got higher than before the lockdown. So, this is the right time to open up a fitness center.
But before opening a fitness center, you should have to consider many things such as,
- What type of area where you want to build a fitness center?
- Do you own the place or want it for rent where you wanted to build the fitness center?
- How much money can you invest on and in the fitness center?
- Do you have a business plan?
- Are you mentally prepared if anything goes wrong with the business?
- What is your targeted audience?
- How much can you invest?
These are some points that you should consider before starting a fitness center.
On average, building a small or medium-sized fitness center will cost between $65,000 to $100,000. This figure depends on the up-front costs of opening a fitness center, like where you want to build a fitness center and what type of facilities you wish to provide.
Moreover, depending on the quality of the fitness center building, services, equipment, etc., this price can go higher or lower. Also, the targeted market affects the fitness center cost because if your targeted people are from the elite class, you have to provide the highest quality of services. Providing the highest quality of services requires high-quality equipment, certified trainers, a proper place to work out, etc.
The up-front cost of opening a fitness center depends on different factors such as,
- Physical location
- Build-out costs
- Fitness equipment
- License and permits
- Management software and POS system
- Employees uniforms
- Miscellaneous fitness center supplies
- Responsive website
- Operating cash
Let’s start with the physical location and get to every step one by one, so you should be able to understand more.
Here are some apparent factors here to consider. How much space are you looking for in your fitness center? Do you own such kind of place where you want to build a fitness center? Do you want to have such a place on rent or want to purchase it?
Well, the up-front cost will be your deposit or your down payment for the area you are going to purchase. Depending on your location, the down payment for a commercial property will be 20% to 40% of the actual amount.
Aside from the space for weights and fitness center machines, you may require extra space for cardio, yoga, or spin classes. Moreover, you may provide lockers rooms for your clients, showers, or steam or sauna rooms. Depending on your preferences, the cost will add up more for the required space.
You can easily spend up to $800k if you want to own the space outright. As a suggestion, you should have to study the whole area before purchasing a property for your fitness center.
If you are getting a property for your fitness center on rent, you should have to pay the security amount of around 20% to 40%. Additionally, it depends on the location you choose because if you choose such an area where prices of properties are high, the rent amount will automatically rise.
For a 2000 square feet space, expect to pay up to $6,000 a month. So, if you are paying the first and last month’s rent, the deposit will be $12,000 upfront according to the $6000/month rent.
There are high chances that the space you might find will not have everything you are looking for. It can be the structure of the building or might be the amenities or aesthetics. So you may have to build out some of the parts of the building or might have to build out the whole fitness center.
The cost of constructing a club in a rented space ranges from $30 to $80 or more per square foot. Low-cost clubs often range from $30 to $50 per square foot. The cost of larger box club businesses and franchisees ranges from $40 to $60 per square foot. Higher-end clubs have prices that exceed $60 per square foot.
The cost depends on what you are expecting from the results. If you want to build an Olympic-sized swimming pool, the build-out cost will go higher. So, it depends on your preferences and what you expect from your fitness center.
Are you expecting some free weights because that is not the only thing your customers will ask for? If you want to build a proper fitness center and attract more people to your fitness center, then you have to provide each and every piece of equipment that a fitness center should have.
Stereotypically, fitness equipment costs will be around $20,000 to $60,000, depending on the quality and amount of the equipment. The cost will go higher if you choose the best quality equipment, but if you choose the cheaper equipment, the quality of your services will automatically be sacrificed.
So, it is important to decide the targeted audience because it will help you choose the equipment quality. Moreover, if you want to give a little entertainment to your customers, you can add up some LED screens and a quality sound system.
Certified staff can also be a big plus point; it shows the credibility of your trainers and fitness center. Also, it can be the best safety option in some circumstances. Certification costs for your staff may cost from $500-$800 per certificate.
Some certifications to discover include: the American Council on Exercise (ACE), National Academy of Sports Medicine (NASM), International Sports Sciences Association (ISSA), American College of Sports Medicine (ACSM), and National Strength and Conditioning Association (NSCA).
1st you have to go for the building permit because permits and licenses will save you trouble. Suppose you build a building for a fitness center, but the government isn’t ready to give you the permit. Then what will you do after all the build-out? Legal permits might cost you around $9,000. So it is best to reach out to such departments before you start building.
You may also need a business license to start your business, and this will depend on the area of your fitness center. Registering an LLC for a fitness center will cost around $125, which is probably what you want to do. The yearly registration charge for an LLC, which is $500, is another registration expense to consider.
Insurance is a legal requirement and is especially crucial for a fitness center. As a bare minimum, you’ll need general liability, workers’ compensation, and a surety bond. Expect to pay roughly $12,000 in premiums to begin. However, prices may fluctuate depending on many circumstances (such as franchise situations).
Management software for your fitness center will be a handy tool because it will help manage every aspect of your business. You’ll need a software solution to enter and execute these operations, from scheduling trainers, classes, and training sessions to maintain client connections.
It is even better if it interfaces with a POS system, allowing you to handle payments and sell products in-store. This should cost between $550 to $2,300 annually, or the start-up might have to pay twice this amount.
Use different sign boards in your fitness center as precautions or safety warnings. This can be the chance for you to get creative. You can use sign boards for awareness, directions, fitness center policies, or other important announcements.
A proper sign board can be provided as low as $20 per board. You can invest and make your fitness look creative using many signages.
This is another expense entirely on you because you must provide the uniform to your staff members. Uniform comes at different prices. It all depends on preferences and the quality of clothes.
You want some uniformity across employee wardrobes in general, but plain training clothing and company logo shirts are usually the standards for a fitness center.
If you are opening a fitness center and want to provide every basic to your customers, then your customers will expect you to have some basic supplies. So, it would be best to have towels, chairs, sitting benches, etc., on hand.
Expect to spend up to $500 to get set up.
Don’t miss an excellent opportunity to provide clients with resources and items. Consider t-shirts, vitamins, protein shakes, powders, water, and so on. Make careful to factor in the original stock cost.
Advertising can be the most significant factor in your fitness center’s growth. Robust and traditional ads help you draw most of the customers. If you want to attract organic customers, you should run more traditional campaign ads.
Moreover, you can use plaster signs in high-traffic areas you people can learn more about your fitness center. You could spend up to $5000 to gain customers.
Every modern business requires a web presence. Expect to pay up to $300 to $700 for the initial build.
You will need some working capital and cash reserves for routine business operations. We recommend you to have at least $1500 in your hands.
As you can see, there are several factors to consider while operating a fitness center. This is why the cost of establishing a fitness center varies so greatly from instance to the case. By considering each component, you can estimate the first investment your firm will require and where that money will come from.
When planning your money, keep unanticipated costs in mind. We cannot emphasize the necessity of having a financial safety net when launching a new business. It will take hard effort, sweat, and maybe a few tears to attain your objectives, but it will be worth it in the end.