How Much Does it Cost to Open a Gym? + Gym Equipment Cost
Is opening a gym profitable? Do you know the average cost of opening a gym in a small town?
If you are looking to starting a gym, you are thinking the right thought. We all want to be fit, to live healthily. So starting a gym is a sure worthwhile endeavour.
However, before embarking on the mission to start a gym, you must first put certain things into consideration.
First and foremost is to find out if the gym would be feasible at the intended location.
The main attraction for a gym is that it enables members to be physically fit and to also maintain a healthy lifestyle. Starting a gym is not a stroll in the park as it has its own unique cost. The numbers of gyms are also growing.
Another major factor that has contributed to the need for gyms is the mostly dominant lifestyle of the population which has given rise to some physical health problems such as obesity.
And as the human population grows, these problems if not checked could get worse than they are now. What this also means is that the gym business would also continue to grow as more people decide to adopt the gym approach to healthy living.
How Much Does it Cost to Start a Gym?
In this article, we are going to discuss the standard and required cost to start a gym. The cost analysis for starting a gym as it would be presented here would help to provide information on the cost implication of starting a gym.
While starting a standard gym, there are certain things which make up the cost. Such things include mainly the gym equipment, such as weight machines, weight training, gloves, dumbbells, wall bars, flexion machines and much more.
Also to be considered would be the administrative cost, which would include the required office equipment and furniture.
Bear in mind, however, that the equipment cost which we shall be discussing here may not include the cost of shipping, for equipment that requires shipping.
But note that all the equipment and machines which are required to start a gym, can be ordered from any standard equipment seller, so there may not be any need for shipping except maybe in a special situation.
The main cost components are;
- Business Registration Cost
This first cost to deal with is the cost of registering the gym business. The cost of business registration would come at around $750 (U.S. dollar).
- Licensing Fee
You would need a business license from the government before you can operate a gym. The license would also include permits and a health license. The required permits are air and water pollution permit and fire department permit.
The cost of getting the required licenses and permits could be up to $12,000 (U.S. dollar).
- Accounting and Legal Fees
Part of the expenses for the gym would include accounting and legal fees which could come up to $2,500 (U.S dollar).
You would need a good location for your business. An ideal location would be a residential area. The cost of leasing a building facility in a good location could come up to $300,000 (U.S. dollar).
Insurance is needed for your business. You would need theft and burglary insurance, property, casualty and general liability insurance. These could cost up to $40,000 (U.S. dollar).
- Office Equipment
You would also need office equipment such as telephone, fax machine, furniture, and stationery. The cost for office equipment could come up to $7,500 (U.S. dollar).
- Gym Equipment
The machines and gym equipment which you would need at the gym include;
- Pull-up Bars.
- Wall Bars.
- Cable Attachments.
- Weight Machines.
- Boxing Gear.
- Flexion Machines.
- Elliptical Trainer.
- Boxing Gear.
- Kettle Bells.
- Gears and gloves
- Gym Flooring.
This equipment and more are needed for the gym. The cost of all these could come up to $600,000 (U.S. dollar).
You would need to install CCTV’s at the gym. The cost for CCTV’s at the facility could come up to $5,000 (U.S. dollar).
- Remodeling Cost
You would need to remodel the leased property to be fit as a gym facility. The cost of this could come up to $280,000 (U.S. dollar).
- Constancy Cost
This cost could come up to $3,000 (U.S. dollar). This also includes the cost of writing a business plan or the business.
- Labour Cost
The cost of labor includes salaries and wages for workers for at least the first 3 months of running the gym. This includes cleaners, trainers, etc. This cost could come up to $70,000 (U.S. dollar).
From the cost analysis which we have done here, it would cost about $1.32 million (U.S. dollar) to start a standard gym. Note, however, that the cost could go higher.
Ensure that you clearly do understand the cost component of starting a gym before you decide to open your own fitness center.
A business plan is also very important and would also contribute in no small measure in providing direction for your fitness business and ensuring that the business is a success.
While making your budget for the gym, also make room for miscellaneous expenses.