Getbig.com: American Bodybuilding, Fitness and Figure
Getbig Main Boards => Gossip & Opinions => Topic started by: Muscleboy on March 11, 2007, 01:54:46 PM
-
This may be long...serious replys only.
Well, i just found out that my career is going nowhere and dont want to be making shit for money the rest of my life. I love lifting and i was wondering if i should open a gym. I have 30,000 dollars saved up and good credit so i think the bank would loan me the money. But i dont know anything about how to get started.
I know a couple of guys on here have gyms they own and i need some information. How much would a gym cost to open up? I know its expensive but i need a rough estimate. Also, is owning a gym a moneymaking idea. It wont bankrupt me or anything because i dont want that. If someone could reply or PM me with their ideas and advice it would be appreciated.
-
bad idea, one of the riskiest businesses to open, open a strip club instead.
-
You'd probably have a better chance of making money spending your savings on Lottery tickets. Gyms are a risky investment.
-
Here is what I suggest. Remember, I'm just a retard who reads this board, so take it for what it's worth.
Get a part time job at a small locally owned gym and learn the business. Find someone who looks like they are doing well from it and learn the lessons they did. Don't re-invent the wheel.
-
i remember you, muscleboy!
-
Good Credit? So What, the bank wants collateral. 30k won't cut it when you'll need 500k to open. You have building codes to meet...bathrooms to construct....plumbing to install.
Banks won't give you credit on the equipment as collateral since it devalues instantly. You'll need to put up 80% if you don't have other successful business in operation.
You'll need a venture capitalist.
Good luck.
-
This may be long...serious replys only.
Well, i just found out that my career is going nowhere and dont want to be making shit for money the rest of my life. I love lifting and i was wondering if i should open a gym. I have 30,000 dollars saved up and good credit so i think the bank would loan me the money. But i dont know anything about how to get started.
I know a couple of guys on here have gyms they own and i need some information. How much would a gym cost to open up? I know its expensive but i need a rough estimate. Also, is owning a gym a moneymaking idea. It wont bankrupt me or anything because i dont want that. If someone could reply or PM me with their ideas and advice it would be appreciated.
make sur eyou buy the building rather then lease it if you go thru withthis that way evenbtually your overhead will be reduced
-
This may be long...serious replys only.
Well, i just found out that my career is going nowhere and dont want to be making shit for money the rest of my life. I love lifting and i was wondering if i should open a gym. I have 30,000 dollars saved up and good credit so i think the bank would loan me the money. But i dont know anything about how to get started.
I know a couple of guys on here have gyms they own and i need some information. How much would a gym cost to open up? I know its expensive but i need a rough estimate. Also, is owning a gym a moneymaking idea. It wont bankrupt me or anything because i dont want that. If someone could reply or PM me with their ideas and advice it would be appreciated.
http://www.getbig.com/boards/index.php?topic=66734.0
-
Is muscleboy the guy with pee stains on his boxers?
-
you're gonna need like 200,000 i would imagine for something decent. Just a guess.
-
you're gonna need like 200,000 i would imagine for something decent. Just a guess.
You have the leasing company pay for all the construction and equipment. If you have great credit you won't even need a down payment. If you know what you are doing you can open a 10,000 sq. ft. gym with not too much money. Lease all your equipment which includes computers, and everything else. Its the rent you'll have to worry about. Get about $400,000 in equipment for around $6,000 to $7,000 a month lease payment. You have insurance to pay and payroll during pre-sales. Work on mostly commission during the pre-sales though. Other stuff you'll need cash for or credit card would be logo design, signage, products, office supplies, etc. Your entire locker rooms can be included with the lease payments. Utility costs, too. Most important is to keep your hard costs down. Payroll will be one of the biggest. Keep that down. I cut the payroll from the gym we are buying from $700,000+ last year to around $400,000.
-
just invest your money and if it doesnt werk burn the place down how hard is that?
-
You have the leasing company pay for all the construction and equipment. If you have great credit you won't even need a down payment. If you know what you are doing you can open a 10,000 sq. ft. gym with not too much money. Lease all your equipment which includes computers, and everything else. Its the rent you'll have to worry about. Get about $400,000 in equipment for around $6,000 to $7,000 a month lease payment. You have insurance to pay and payroll during pre-sales. Work on mostly commission during the pre-sales though. Other stuff you'll need cash for or credit card would be logo design, signage, products, office supplies, etc. Your entire locker rooms can be included with the lease payments. Utility costs, too. Most important is to keep your hard costs down. Payroll will be one of the biggest. Keep that down. I cut the payroll from the gym we are buying from $700,000+ last year to around $400,000.
onlyme, you seem like a nice guy on here, but.....are you really in the gym business? No 1, leasing equipment for a startup is ALMOST impossible, most require at least two years in business first.$400K in equipment if the leasing co did it for free, would cost about $6700 per month with a five year lease with a dollar buy out (leasing is a write off, but a VERY expensive way to finance look for the actual payment to almost double taht $6700...and no leasing company would go longer than that on equipment....yeah, you can lease lockers, but the build out is hard cash....if you are worth millions and personally gaurantee a lease on a building, the landlord MIGHT give you build out allowance....to think good credit would give you a gym with no down payment is laughable. And any money you borrow would be backed up !00% by collatoral
Ed Connors thought a certain pro bodybuilder was an idiot for thinking he and his wife could buy a gym with no money but good credit. Let alone a start up.
-
onlyme, you seem like a nice guy on here, but.....are you really in the gym business? No 1, leasing equipment for a startup is ALMOST impossible, most require at least two years in business first.$400K in equipment if the leasing co did it for free, would cost about $6700 per month with a five year lease with a dollar buy out (leasing is a write off, but a VERY expensive way to finance look for the actual payment to almost double taht $6700...and no leasing company would go longer than that on equipment....yeah, you can lease lockers, but the build out is hard cash....if you are worth millions and personally gaurantee a lease on a building, the landlord MIGHT give you build out allowance....to think good credit would give you a gym with no down payment is laughable. And any money you borrow would be backed up !00% by collatoral
Ed Connors thought a certain pro bodybuilder was an idiot for thinking he and his wife could buy a gym with no money but good credit. Let alone a start up.
That is where being in the industry helps. MANY leasing companies will allow you to include build-out costs in your lease payments. Some equipment companies will finance the equipment order and if big enough will also include build-out costs. I have put together and/or put together Business Plas for numerous gyms. Most currently one we are buying here for just over a million dollars.
Where do you think leasing equipment for first time gym owners is impossible. It is possible. I am not saying you can open a gym with NO money. No one is going to loan you money if you have none. No matter how good your business plan is. I am saying you can use what collateral and assets you have to secure a lease or loan and open. There is no need to use you own money. Best thing is to find someone who as the credit and money. When I took over the Golds Gym here in 2003 we went from doing $40,000 a month to over $60,000 a month within 2 months and never went under that amount except one month. The gym we are looking at right now does over $160,000 a month.
I may not be able to explain what I mean to say very good, but I have been doing this since the early 80's when I owned part of gym. And I am ask ALLOT on how to get things done at a gym. People know I have countless contacts and can get things done. No matter what opening a gym has to be done in an area that will support it. Here where I am at now is different from the mainland. We are limited to the number of gyms. Even when reps come over to meet me, after the first day they will always say "this place is like no other in world". And yes the Locker Rooms are probably te most expensive room to put together besides equipment.
-
onlyme, you seem like a nice guy on here, but.....are you really in the gym business? No 1, leasing equipment for a startup is ALMOST impossible, most require at least two years in business first.$400K in equipment if the leasing co did it for free, would cost about $6700 per month with a five year lease with a dollar buy out (leasing is a write off, but a VERY expensive way to finance look for the actual payment to almost double taht $6700...and no leasing company would go longer than that on equipment....yeah, you can lease lockers, but the build out is hard cash....if you are worth millions and personally gaurantee a lease on a building, the landlord MIGHT give you build out allowance....to think good credit would give you a gym with no down payment is laughable. And any money you borrow would be backed up !00% by collatoral
Ed Connors thought a certain pro bodybuilder was an idiot for thinking he and his wife could buy a gym with no money but good credit. Let alone a start up.
We just switched our business format from a 10,000 sq ft full membership gym with personal training, group exersise, nutrition, massage, physical therapy....
to
high-end capped membership and independently contracted personal trainers bringing in their own clients and paying per client.
competing with big gyms here in chicago for membership is really hard. They have more ameneties and cost less. The one thing they can't offer is a membership cap, aka, no crowds. We charge a premium for that.
Also, small gyms kill on PT. The trainers are usually better (been on there own for a while and care a little more) and the headaches are a lot less. Give it a thought.
-
For more information, Contact Victor Martinez :)
-
That is where being in the industry helps. MANY leasing companies will allow you to include build-out costs in your lease payments. Some equipment companies will finance the equipment order and if big enough will also include build-out costs. I have put together and/or put together Business Plas for numerous gyms. Most currently one we are buying here for just over a million dollars.
Where do you think leasing equipment for first time gym owners is impossible. It is possible. I am not saying you can open a gym with NO money. No one is going to loan you money if you have none. No matter how good your business plan is. I am saying you can use what collateral and assets you have to secure a lease or loan and open. There is no need to use you own money. Best thing is to find someone who as the credit and money. When I took over the Golds Gym here in 2003 we went from doing $40,000 a month to over $60,000 a month within 2 months and never went under that amount except one month. The gym we are looking at right now does over $160,000 a month.
I may not be able to explain what I mean to say very good, but I have been doing this since the early 80's when I owned part of gym. And I am ask ALLOT on how to get things done at a gym. People know I have countless contacts and can get things done. No matter what opening a gym has to be done in an area that will support it. Here where I am at now is different from the mainland. We are limited to the number of gyms. Even when reps come over to meet me, after the first day they will always say "this place is like no other in world". And yes the Locker Rooms are probably te most expensive room to put together besides equipment.
please recommend ONE leasing company that will allow you to include build out costs
-
invest in a curves for women franchise you'll have a better chance
good luck
-
Before you get confused by all the advice, look through this first, everytime I have an idea to expand my business, I look to this........
http://www.sba.gov/smallbusinessplanner/index.html
-
invest in a curves for women franchise you'll have a better chance
good luck
I agree with that. Not just curves, but any gym that caters to the common schmoe. Get a few franchises under your belt, and then if you want, open a hardcore gym. When it comes to profit, get rich off the lemmings, and then pursue your passion.
-
I agree with that. Not just curves, but any gym that caters to the common schmoe. Get a few franchises under your belt, and then if you want, open a hardcore gym. When it comes to profit, get rich off the lemmings, and then pursue your passion.
http://www.entrepreneur.com/franchises/curves/282265-0.html
-
You can lease equip for sure, It may require a deposit but If it breaks they fix it. Also aside from the cost of all the overhead don't forget, that you need a salary to live off of too. A lot of people forget to include the money they will have to pay themselves for a year or two into the total money borrowed. Most people have a lot of expensed they forget to about. Aside from feeding and clothing myself I also have the responsibility of a house, a car, suv and most expensive a wife.
Most gyms won't see a profit (getting them out of the red) till about the three year mark, two if you're savvy and have a big draw.
It's a real risky business, but hey man you do get to have a business doing something you love.
I'm not a risk taker so I work a 9-5 and wear a Tie every day (with the exception of casual Friday where I can wear a Polo) I make good money but I work for a corporation. At first I hated it, doing a job I hate, but after 5 years with the company, I know work in Human Resource. It's kind of fun to determine who we hire. Pretty cool power trip.
I admire Gym owners, most will never get rich but you can live your life knowing that you got paid to do your hobby.
If you're a risk taker go for it, if not Post your resume on Monster.com
-
bad idea, one of the riskiest businesses to open, open a strip club instead.
unless you are trying to open a mainstream "fitness" type of thing, he is right. You have to target the people who aren't serious and plan to use your gym around once a month. If you opened a mma type of training facility it would likely work good for you as well, that is if there is no others near you.
-
Here is what I suggest. Remember, I'm just a retard who reads this board, so take it for what it's worth.
Get a part time job at a small locally owned gym and learn the business. Find someone who looks like they are doing well from it and learn the lessons they did. Don't re-invent the wheel.
I am in the gym business and own part of a club. What this guy said is the exact advice I give, because it is what I did. What ONLYME me says is partially true, lease all your equip., computers, furniture, etc... but that is the easy part. Getting a lease from the a landlord, preferably in a shopping plaza to draw notoriety from other tenants, is so unbelieveably difficult. Go get a job doing membership sales, work up to Sales manager, then GM, learn as much as you can, save as much as you can, then leave. The only downside is that you will need partners.
-
please recommend ONE leasing company that will allow you to include build out costs
Some will give you money for "infrastructure repairs", plumbing, HVAC, roof, electrical. They will invest a portion, think about it, it is in their best interests for the business to do well, 200 or 300K from a landlord, for a larger club (25000 sq. ft. + ) is not uncommon.
-
please recommend ONE leasing company that will allow you to include build out costs
I heard that LifeFitness will also help pay for build-out costs. A large gym could easily purchase $300,000 in cardio equipment. Most equipment companies will fiance their own equipment and bypass the Leasing company. I also think Onlyme has his connections and probably can get things done differently than some others. Check on U.S. Global Leasing I think that is the name. They will include some build-out costs in the lease payments.
-
This may be long...serious replys only.
Well, i just found out that my career is going nowhere and dont want to be making shit for money the rest of my life. I love lifting and i was wondering if i should open a gym. I have 30,000 dollars saved up and good credit so i think the bank would loan me the money. But i dont know anything about how to get started.
I know a couple of guys on here have gyms they own and i need some information. How much would a gym cost to open up? I know its expensive but i need a rough estimate. Also, is owning a gym a moneymaking idea. It wont bankrupt me or anything because i dont want that. If someone could reply or PM me with their ideas and advice it would be appreciated.
if you love bodybuilding and want to make zero dollars go ahead and do it just for the love of it.
but you need alot more than 30 grand to open a gym lol.
i would advice you against it.
-
make sur eyou buy the building rather then lease it if you go thru withthis that way evenbtually your overhead will be reduced
its not as simple as that
-
Even if you are just making a living- although it may cost you literally living there, its grea tbeing your own boss, and owning something you love.
Just be carefull, research- and listen to onlyme, he knows his shit- and has his shit together, congrats onlyme! 8)
-
I have co-owned a gym for over 35 years. We started small and grew into a large center with more employees. All said and done it is a high investment, low return business. The hours are really long as most clubs open early and close late. You have to know what your market is before you buy a club or open one.
You should get your landlord to do the fitout and repay him with a higher rent. That way you both claim what you paid instead of borrowing to do that fitout and claiming only the interest and something like 10% per year. You will have to own your own home before banks will finance you. You can do an interest only deal until you are making a profit. You can lease your equipment but make sure you know which equipment to buy or lease. All equipment is not the same.
You will need sales people and someone who knows about marketing. There are successful clubs out there so go and see what they are doing. Sometimes they will tell you what you need to know. Join IHRSA and get back issues of their magazines. Lots of good info there. Attend the IHRSA conference and tradeshow in San Francisco which comes up soon this month. You can get heaps of ideas about running a gym successfully.
Our equipment cost over $1,000,000 and has to be replaced or upgraded from time to time. Perhaps having a smaller club with good equipment and instruction might be better than having a large gym with huge overheads. Aerobics usually doesn't make any money. Do what you are good at. If it is bodybuilding then set up a good gym for that instead of trying to be everything for everyone. A 5000 square foot well-equipped gym might make it compared to huge clubs that cost too much to run.
Location is important as is software and everything else in this business.
If I had $30,000 I would open an ice-cream store! Arnold never opened a gym because Joe Gold told him there was no money in it. He was told to invest in real estate. Good advice from a good gym operator.
Good luck.
-
just invest your money and if it doesnt werk burn the place down how hard is that?
you should have talked with Vic M a few years ago.
-
you should have talked with Vic M a few years ago.
bigkubby great idea man ;D
-
I heard that LifeFitness will also help pay for build-out costs. A large gym could easily purchase $300,000 in cardio equipment. Most equipment companies will fiance their own equipment and bypass the Leasing company. I also think Onlyme has his connections and probably can get things done differently than some others. Check on U.S. Global Leasing I think that is the name. They will include some build-out costs in the lease payments.
Yes Lifefitness is one company that does it. It is too early here and getting ready to go to the airport so I don't have time to look up the leasing company we were going to deal with. And no matter what the lease (property) and terms are the most important.
-
If I had $30,000 I would open an ice-cream store! Arnold never opened a gym because Joe Gold told him there was no money in it. He was told to invest in real estate. Good advice from a good gym operator.
Good luck.
Every gym business seminar I have been to has mentioned that the building your gym is in and the land it sits on is the most important part of that business, meaning real estate.
The people who started Life Time fitness (a HUGE gym chain here in the midwest, multiple 100,000 + sq suburban clubs) is a real estate mogul and just happened to start opening up gyms.
-
"muscleboy" i will put the pee stains aside for one post and give you this advice:
whatever business you want to open you should work in someone else's SUCCESSFUL similar business for at least a year to realize what is involved. if you just open it with no background theres like a 95% chance it will fail. maybe 99%.
if you use the time there effectively to learn it inside and out you'll have a much higher likelihood of yours succeeding. realize what works and why, and realize what can be improved and incorporate those ideas into your own model.
same goes with restaurants, clubs, stores, etc.
-
You got to ask yourself, kid...do you want to make money and push aside all your personal ideas and passions or do you want to own a gym as more of a 'hobby'? Like me.
If you want to make money then you have to research your location, demographics and projected demographics in 2 years...5 years even 10 years. Understand the gentrification of the area and other what other buisnesses are there and how long have they been there.
You can franchise a 'name brand' gym and have that back-up but it can be tricky.
Otherwise be prepared to roll the dice.
How I did it? Just sort of fell in my lap. Local neighborhood guy approached me as he had a vacant store-front in his huge apartment building complex and wanted to make it a gym for 'the neighborhood guys'. He left it in my hands and 2 yrs later I had it fully equipped from mostly used and refurbished equipment. Gyms that closed down, getting in contact with equipment dealers etc...
Him and I do it more of a hobby now. We paid ourselves back what we put into it and every year we take a little 'stipend' for ourselves. Most of the money we make is from freelance personal training as we dont have to pay anyone rent and can keep whatever we charge for ourselves.
Both of us have day-jobs so the gym isn't our bread and butter. Far from it, actually.
-
You got to ask yourself, kid...do you want to make money and push aside all your personal ideas and passions or do you want to own a gym as more of a 'hobby'? Like me.
If you want to make money then you have to research your location, demographics and projected demographics in 2 years...5 years even 10 years. Understand the gentrification of the area and other what other buisnesses are there and how long have they been there.
You can franchise a 'name brand' gym and have that back-up but it can be tricky.
Otherwise be prepared to roll the dice.
How I did it? Just sort of fell in my lap. Local neighborhood guy approached me as he had a vacant store-front in his huge apartment building complex and wanted to make it a gym for 'the neighborhood guys'. He left it in my hands and 2 yrs later I had it fully equipped from mostly used and refurbished equipment. Gyms that closed down, getting in contact with equipment dealers etc...
Him and I do it more of a hobby now. We paid ourselves back what we put into it and every year we take a little 'stipend' for ourselves. Most of the money we make is from freelance personal training as we dont have to pay anyone rent and can keep whatever we charge for ourselves.
Both of us have day-jobs so the gym isn't our bread and butter. Far from it, actually.
russian mafia?