Questions on opening a gym

[Muscleboy]

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.

[The Squadfather]

bad idea, one of the riskiest businesses to open, open a strip club instead.

[Saxon]

You'd probably have a better chance of making money spending your savings on Lottery tickets.  Gyms are a risky investment.

[packetman]

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.

[TroubleReady39]

i remember you, muscleboy!

[comebackkid]

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.

[dzulboy]

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

[kh300]

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

[youandme]

Is muscleboy the guy with pee stains on his boxers?

[Bast000]

you're gonna need like 200,000 i would imagine for something decent.  Just a guess.

[onlyme]

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.

[bigkubby]

just invest your money and if it doesnt werk burn the place down how hard is that?

[insidescoop]

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]

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.

[Mike]

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.

[HUGEPECS]

For more information, Contact Victor Martinez

[insidescoop]

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

[muscularny]

invest in a curves for women franchise you'll have a better chance

good luck

[Mr. Intenseone]

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

[Dingleberry]

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.

[Mike]

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

[Dballn247]

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

[warrior_code]

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.   

[BigSexy50]

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.

[BigSexy50]

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.