The wellness industry is full of extremely successful personal trainers and fitness enthusiasts that all share the same goal of opening their own facility and being their own boss some day. For many of them, the passion and level of education for training clients is a well developed skill that has been finely tuned over many years of practice. However, the education for opening, operating and maintaining a successfully thriving business is typically an area in which they are lacking. Many trainers pull the trigger on opening their own facility without doing their due diligence.
A few basic things to consider when budgeting for a gym:
1. Assess Your Current Revenue
What is your income per month as it currently stands? Include all revenue streams in your calculation including those that come from personal training or any other job you may have. Add them up to come up with your total revenue per month.
2. Evaluate Your Current Expenses
What costs do you incur per month? Create a list of each of your monthly expenses ranging from your telephone bills to your licensing fees. Total these items to measure your total expense per month.
3. Identify Your Opening & Operating Costs
What will it take to open your desired gym or fitness studio? These include any marketing and advertising expenses, licensing fees, insurance and fitness equipment, among any other expenses you may face at the beginning stages of your gym. Measure these expenses as a monthly value. What costs will you incur in running your business? Even if you do not currently have exact numbers, use industry standards to estimate your monthly rent, utility, cleaning supplies, staff salaries and other day to day expenses that will keep your gym up and running. Adding these up, you should not have your total expected opening and operating expenses per month.
4. Balance Your Sheets
Do these numbers tell you whether opening a gym right now is feasible or not? To determine whether or not you're in the right place to embark on this business venture, calculate your net income first (this is your total revenue minus your total expense). If your net income per month can cover your opening and operating expenses, then you can be confident that you are ready to open your own gym. If your net income does not cover the expected costs of starting your own business, then it may be time to reevaluate your time line - perhaps it is not the right time to open a gym.
Creating a basic budget that includes current sources of income, expenditures, and the projected opening and operating costs are a few preliminary steps, among many a potential studio owner should produce prior to making a decision as big as opening a gym.
Download the Opening a Gym Guide to learn more about launching your own fitness center: sample budgets, case studies, and more!