How to Start a Gym

The cost associated with starting a fitness center or gym will depend on size, location, equipment, number of employees and other normal start-up business cost. If it is a franchise operation there could be fee to the franchise people.

The other way to do it is to buy an existing business with its built in clientele. If it is a membership fitness center, the clients are locked in for the period of their contract. Any membership considerations should be fully disclosed and made part of any buy out agreement. Again there may be franchise considerations that need to be disclosed.

This type of business will have some pretty healthy start-up cost or buy-out cost associated with it. The equipment needed and the employees to run the business are going to be substantial money drain as well as the building, the utilities and other business expenses. If it is a buy-out of an existing business the client list is worth a great deal. This cash flow generator will have a value of what it brings in each year. If the business is a franchise operation, there may be on going payments to be part of the franchise. If it is a start-up franchise then there will be additional cost to buy the franchise. This business will entail a substantial investment to buy or start. If this is your area of expertise, then you will need to figure out how much you can bring to the table to see if you can afford the purchase price or the start-up expense.

There is every reason to believe that you can make money owning one of these facilities. People are very conscious of the need to keep their body fit and are willing to pay good money to make this part of their life style. This was a fad at one time, but now it has become part of the culture to keep your body in good health. Many people need the added incentive to go to a place where they are expected to work out to keep their body in good repair. They also may need the advice of a fitness expert on how to take off weight or gain it back. The client may also need the exercise as part of a rehabilitation program. Or maybe the guy or girl just wants to look good to other people. It does not matter why they come to the center, just that they do and are willing to continue to pay to come.

Finding the right center for you to run

There are several ways to find businesses that are up for sale. The local papers can be one source. Business brokers are another solid source. A buyer can also use the Internet to find businesses that are for sale and business brokers that will help in the search. Finding a business in this field in your city may be difficult as there are not always candidates in this field for sale in all areas. This may be a good reason to get a good business broker on your side. They will know what is available and maybe a good deal about this market. This buy-out may necessitate moving to another city to find a business to purchase.

A business broker may be of great use in this business search. This is a unique business area and the number of businesses for sale will be somewhat limited and usually found only in larger cities. A larger business broker company would be a good place to start this investigation of what is available. This unique business would be a likely candidate to use a broker to help them make the sale.

Buying or financing a fitness business

Since this business has a high dollar cost to get into, most buyers will need to have substantial funds available or solid financing in order to buy an existing business or start one up. The money sources for this venture can be the current owner, an Internet business lender, your bank, your relatives, loans on property you own or family-money. This purchase is not a small consideration and most likely will take some kind of financing for most new owners. You should be aware of this going in and a discussion with a business broker could help you figure if it is feasible for you to make happen.

This business is capital intensive to enter. The return can be excellent, but the upfront money needs to be considered from the beginning. If you are going to need financing, then the availability of financing will depend on what you can put down and your credit and business history. The deposit has to be a reasonable percentage of the full price for the business. Even owner financing will require a sizeable deposit on your part. The best course of action early on is to have a heart-to-heart conversation with a qualified business broker to see if it is possible for you to pull it off. If that answer is yes then finding the correct property for you may take some time to ferret out. You might be wise to check out some franchise operations to see what they offer. As you can see this is not like buying a local retail store or hardware.

Check out the Net for yourself to see the listings and where you would have to buy in order to find a business for sale. There are not as many opportunities in this niche market as there are in other businesses. It just does not lend itself to starting one up without enough of a population to support its operation. Patience in finding the right property and the right deal will pay back big dividends in the long run. This is no place to buy a big white elephant.

Conclusions

This business entity is not as easy to find as other businesses are in every community. There are always restaurants for sale in every larger town. That may not be true with this type of business. You may have to look in other towns near you in order to find one that is for sale at a price that is within your budget. Even then you need to arrange financing that is reasonable when compared to the cash flow of the business. Franchising or a private center is another question to answer. All of these considerations must be looked at with a cold and realistic eye in order to have a chance for success in the future. The investment needed to carry this out requires that any reasonable buyer do this.

The ongoing expense of running this type of business must also be studied. Employees and advertising are going to be critical to running a successful operation. The long hours of operation are not like running an office. This factor alone makes employees a serious consideration. Another serious budget item will be an advertising campaign that will need to be active most months of the year. Certainly a solid campaign the last few months of the year when people are making up the New Year resolutions to get into better shape in the coming year. This is a solid business opportunity for those that have the funds or can get them.

And now I would like to offer you free access to information on a powerful integrated system of marketing, sales & advertising so you can thrive instead of survive in today's economic environment.

Henthorn is president of Spiral Marketers, a marketing firm which includes a number of partnerships that range from cutting-edge software development, business and personal improvement coaching, online e-commerce businesses, and more.

He was formerly was president and principal broker of a resort / commercial real estate brokerage in Honolulu which specialized in representing sellers in transactions up to $50MM.

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