With the current obesity crisis in the UK, there is a high demand for gyms and fitness centres across the country.
If you are thinking of turning your passion for fitness into a career and working towards opening your own gym, there are a few steps you need to follow when it comes to setting up your gym business plan.
Seven Steps For Creating A Gym Business Plan
- Be realistic
If you fail to set up a gym business plan, you will lack the structure and direction you need for your new gym to thrive. Be realistic in your planning, get all the numbers together and work out exactly what it will cost to get your gym set up, and then work out if it is an investment you can afford to make.
It is essential to undergo proper market research to determine who your ideal demographic is, this can then be used to create your Unique Selling Point (USP). Aim to find out as much as possible about your potential future customers, including their age, consumer behaviour and personal factors.
- Review the competition
Before beginning to market your new gym, spend some time sizing up your competitors in the local area. This will help you to determine the potential for a new business and how your new gym can easily and quickly fill a gap in the existing marketplace.
- Calculate your costs
Start-up costs are always going to be high for any new business, but be sure to know exactly what your costs look like from the very beginning, so there are no surprises down the road. Consider costs for equipment, rental spaces, operating costs, utilities, insurance, staff, marketing and membership management. Remember to also include a cushion in your budget to help with any unexpected expenses.
- Know the legalities
There are a lot of legal requirements that must be met when setting up a gym business plan. Insurance is essential, and because of the physical nature of the business, the likeliness of an incident occurring is higher than with most other businesses. Make sure you choose an insurer who can safeguard you against all eventualities and factor in the cost of insurance in your budget.
- Understand the insurance options
As well as gym insurance, you will also be required to get employer’s liability insurance to protect your staff. You may also need professional indemnity insurance which covers you for incidents such as loss of data, unintentional breaches, loss of goods and professional negligence.
- Find funding
Once you know how much setting up your gym is going to cost you, you will need to find a suitable funding option to cover these costs and get yourself up and running. There are various options available including government funding for start-ups, bank loans and even crowdfunding.
Setting up a gym business plan is no easy task, and it will take a huge amount of time and dedication, but it is an essential step in starting your own gym and thorough planning can help to ensure that it will be worth the investment in the long run.