I'd love to show you my budget for the gym I am opening currently in Vegas. It is just under 40,000 sq. ft. with a 32' ceiling. I have earmarked $2.75 million and that is based on getting between $15 and $25 TI money. Won't get less than that but the more the better. This is for an existing building. Construction, development, equipment leases, permits, legal shit, design, FF&E, etc. Spending close to $150,000 just on the Grand Opening party. What's weird is once you start putting everything down on a spreadsheet you really don't know how much it will cost you. It adds up very fast. Having a team like I have put together is also a huge advantage if you want to penetrate the market with some huge impact. In cities like Vegas or LA or New York I can't see how you can do any kind of substantial business with a gym under 25,000 sq. ft. I'm talking where you can bring in a minimum of $130,000 a month in gross revenue. And having a gym with just a workout area without any type of ancillary profit center is just not worth it. If you are spending $100,000 a month in total expenditures and your club is making $130,000 then I feel it is worth it. Of course our numbers are substantially higher, but for a minimum this would be it.
When opening a club (I have planned 5 here in Vegas corporate owned and franchising worldwide) you have to make sure you get the best price possible for equipment. I have preferred vendor s that give me unreal pricing and in a couple cases the equipment is free because they are using my flagship club as a West Coast showroom. You have to be able to work the equipment companies. The biggest companies don't always have the best equipment either.
This is my biggest venture to date. The biggest I was putting together was a 160,000 sq. ft. gym in Hawaii where I lost everything from a crooked developer. So I learned my lesson. Stay tuned cause when I am ready I will announce the Grand Opening date so everyone can come from Getbig.
