Getbig Bodybuilding, Figure and Fitness Forums
Getbig Bodybuilding Boards => Gym/Stores/Industry Business Board => Topic started by: 240 is Back on April 19, 2006, 11:34:47 AM
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Is it worth it? Was it hard to ge ta loan? Where did you get your equipment, and did you buy new or used? Liability? Other issues?
Are you glad you did it? If you could go back 5 or 10 years, what would you do differently? This is the place where gym owners, or those interested in maybe starting a gym down the road, can talk about it!
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Is it worth it? Was it hard to ge ta loan? Where did you get your equipment, and did you buy new or used? Liability? Other issues?
Are you glad you did it? If you could go back 5 or 10 years, what would you do differently? This is the place where gym owners, or those interested in maybe starting a gym down the road, can talk about it!
Our next plan is to get a 3000sq PT studio that's affiliated with our current gym. 4 lane track, monkey bars, climbing ropes, sleds, monster truck tires in the parking lot...fun stuff. You'd be suprised how many 40 year old JPMorgan Chase employees it takes to flip a 500lb tire (answer: too many).
Low overhead.
Trainers are paid a fixed rate based on certification and experience plus comisssion for selling packages.
Trainers only get paid if it's a paid session.
Mothers returning to the workforce are your best trainers, they can handle the young guys and the old women.
Fixed overhead business.
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I have a few friends that either have own gyms or PT studio's. Their answers are something like this:
Is it worth it?
no...not always.
Was it hard to ge ta loan?
no...but depends on your business plan & partnership
Where did you get your equipment,
From whomever bids the lowest. Try to go with one vendor (like Life Fitness) that can provide about 80% of the cardio & strenth that you need. Then they will buy into other lines & add select pieces they prefer & customers would request.
and did you buy new or used? Liability? Other issues?
New....never used or very rarely used. A friend I know will buy small PT studios (complete buyout)....update & resell them. If the used equipment still in there is ok....they'll leave it a lone.
Are you glad you did it?
no....& yes. Making money can be harder than it seems from owning a gym.
If you could go back 5 or 10 years, what would you do differently?
Go back another 15-20 years & start then
This is the place where gym owners, or those interested in maybe starting a gym down the road, can talk about it!
Then bottom line they all say the same thing....have a niche, sell memberships, & location, location, location.
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What is the success rate of none chain owned gyms????
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What is the success rate of none chain owned gyms????
Now thats a good question.
That really depends on size, location, & what actual kind of gym it is.
Don't have any stats on that.
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What is the success rate of none chain owned gyms????
Got this off the Golds Gym Website:
According to the U.S. Department of Commerce, 90 percent of franchised operations are still operating after ten years, whereas 82 percent of independent businesses fail. This statistic solidifies the fact that aligning with a recognized leader increases the probability of success.
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Wow that is a pretty good success rate..... The profits must be the problem breaking even is prob the easy part.
Knny do you own a gym?
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Wow that is a pretty good success rate..... The profits must be the problem breaking even is prob the easy part.
Knny do you own a gym?
no.....but have considered it & have a friend that wants me to go in with him....
I just don't have the passion for it.
I have a few friends that either own a studio or have owned Hard Core gyms in the past.
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seems like alot of work.......
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I'm not a gym owner but if anyone would like to send me a PM with questions about owning a gym I'd be more than happy to try and guess what the right answer would be
geo
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I'm not a gym owner but if anyone would like to send me a PM with questions about owning a gym I'd be more than happy to try and guess what the right answer would be
geo
thanks for your support
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Best bet is to lease the equipment where you are always getting new stuff evry 2-3 yrs then you can tell the members you just invested millions of dollars in all new equipment!
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Right at this moment I am putting two gyms together here. I am either doing a Gold's Gym or Dorian Yates Temple Gym. Allot to think about. Gold's has the name but the reputation is down and especially here. Very expensive and it doesn't seem they do any dealing. Temple on the other hand seems very eager and wants to do what it takes to get on the map. Easy to talk to and get ahold of. Many of the executives of Gold's do not even work out of the office. But I have been with Gold's for along time. I make decision next week. We'll see
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I bought a run down gym in 2002 for a 'modest' price....was a difficult and risky decision. I carefully planned every movement to compliment my 2 year plan where i would sell it.
I updated and bought new equipment as i required and as my membership increased. I ran the personal training business (http://mybusinessisfitness.com) I was the cleaner, you name it!
It is a business, nothing else. It helps to have interest in what you do but dont get caught up. Gym members want to be your 'friend' thats the environment theyre accustom to and friends want to train free, but thats not smart business.
Follow a plan and you can be quite successful.
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What is the success rate of none chain owned gyms????
like knny said...find a niche...provide better customer service.
People are wary of chain gyms, they join out of convenience and shrewd membership consultants (http://mybusinessisfitness.com), you just have to remind them that chain gyms go under and that their 'agreements' are concrete.
uninspired, lazy people will get buried by chain gyms if theyre not pro active 24/7
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Best bet is to lease the equipment where you are always getting new stuff evry 2-3 yrs then you can tell the members you just invested millions of dollars in all new equipment!
best bet is to buy refurbs. 30-60% lower cost...and you own it at the end of the day. that way you have something to liquidate if the business fails.
then budget for 3-6 new pieces a year.....keeping all the douches happy.
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best bet is to buy refurbs. 30-60% lower cost...and you own it at the end of the day. that way you have something to liquidate if the business fails.
then budget for 3-6 new pieces a year.....keeping all the douches happy.
Not to sure about that. Depends on the size of the gym. If you have a gym of 12,000 sq. ft. or bigger and plan on putting some good used equipment in, buying it will cost at least $100,000+ easy. That is a big hunk of change to fork over in a business that has many other costs. Your locker rooms alone will cost you at least $80,000 for a gym that size. When you lease you get a very good warranty and no matter what you need that warranty. I am opening two 13,000 sq. ft. facilities and I am putting in about $400,000 in equipment in each club. The cardio alone was $100,000 with my discount of close to 50%. Flooring alone is close to $50,000. Lease payments are just under $8,000 a month. No up front costs for leasing either. That is due to our credit rating though and reputation. The number one thing you have toworry about is rent. you have to negotiate the best rent possible to make sure you are at the numbers you want.
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I own a 2000 sq ft personal training studio/gym in Tarpon Springs FL. I have been open since January of this year. I'll tell you right now it is not easy but I also would not trade it for anything. I bought some equipment used, leased some and bought a couple pieces new. I would reccomend keeping overhead to a minimum especially at first. I was able to secure an equity line from my bank but this also can be tough depending on your credit rating. It's like anything else... some days you love it some days you hate it but every day you are tied to it. It's not as glamorous as it might seem. It's difficult to get your own workouts in etc and the bottom line is always the bottom line. We have made money since our first month but not enough to cover my house note etc. I have a downtown store front with a lot of traffic and this definately helps. I have also been forced to rely on my personal training to carry us as the hard core bodybuilder is really the dinasour nowadays and you will not make money if you plan on appealing to them. Also it is tough to compete with the Golds, Lifestyles etc so find your niche and go for it if you have a love for it, time, patience and some money to live off while you get started. You might want to stick to websight designing. I'd be glad to speak to you abot it if you have any questions.
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as a gym owner, how would you best be approached by vendors trying to submit their prouducts to you?
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Is it worth it? Yes, good money if you're the only gym around..
Was it hard to get a loan? I used all my own money.. But it is hard to get a loan if you don't have a business plan made of gold..
Where did you get your equipment, and did you buy new or used? I bought it new and I got the best money can buy.. NEBULA BABY!!!
Are you glad you did it? Ask me again in a year or so..
If you could go back 5 or 10 years, what would you do differently? I was just a kid then..
Other than that....... COME TO MY GRAND OPENING DEC 9TH!!!! POWERHOUSE GYM YUCAIPA CA... ;D
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Other than that....... COME TO MY GRAND OPENING DEC 9TH!!!! POWERHOUSE GYM YUCAIPA CA... ;D
That's tomorrow!!
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That's tomorrow!!
Yeap.. I'll be posting pics for those who miss it..
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I have owned 2 in my life time.. one in the last 1980's and it was a raw ,hardcore gym... all before the EFT and Credit cards machines like they have now..lol
It was good but had a life change,
then in early 2000 I had a private club for PT,Massage,Yoga,Pilates, and had a PT Cert school.... did ok ,,, but we had as resturant below that had a bug fire which put us out of business... I have been looking now down in south jersey for a spot ..but havent really come up with one where I would like to be.. it takes time !
Its a good business in the right spot !
and if you are looking to purchase and existing one ,, you really have to look into every aspect of the books.... it never is what they tell you when they are looking to sell!
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a few questions about starting a gym.
1. Did you guys write your own business plan? If not who did it? Is it possible for someone to post their successful Business Plan or cost of a proven one?
2. I have always heard keep personal funds and business funds totally seperate. Is that even possible?
3. What if I never owned or managed any business before. Is that a major strike against me as far as the loan institution is concerned?
4. I know women have a better chance of getting business funds like low interest loans and even grants. Is this a good consideration?
5. The average price per Sq/Ft is $8-$12. I am looking for around 1200 - 1400 sq/ft. Does this mean rent is $9000 a month?
6. Did you all hire salesmen/trainers or just advertise and sign up whoever came in to ask?
7. Do any of you bill Medicare or insurance companies? If so how do you get started and what are the rules (got a link)?
8. Who wrote your contracts?
9. Does anyone have a 24 hour club with no staff at night? Any horror stories?
10. How much is insurance roughly?
Well these are a few questions I have. Now let me tell you what I had in mind.
At my gym if I wanted to do Cardio I have to basically stand in line like a vulture. Sooo....I was thinking why not have a 24 hour cardio only place. No staff at night. Cameras everywhere. Fingerprint ID\or pin plus picture to get in the building. No long term contracts. Can go month to month. Medicare/Insurance billing if applicable? (not sure if I can or not). 18 and over only. About 50 machines total. 20 ellipticals, 20 Treadmills, 10 Bikes. TV's and radio with transmitters for the machines.
May include Tanning during the daytime while staff is there. May rent out space for massage therapist, physical therapist, aerobics.
I work in the I.T. field so any aspect of cameras, ID verification, software, payroll, etc...will be handled by me.
I know many may cringe at a cardio only place but it is just a business idea that fills a void where other gyms cannot deliver. I see the same people at the gym everyday hitting the cardio and heading out. I always think why do they spend $40 a month for just cardio. I would like to charge $20 to $25 a month with perks like refer 4 people to sign up for year and you will get a year free. In my head it is a cannot fail. The scariest thing is startup. How do I get 300-400 members to join in very quickly to cover my costs. Even then I am not sure that 400 memberships would do it.
Hopefully someone has some valueable input. I would like to really have a go at this. In the long term I would like to franchise out. That's where the money is.
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http://www.anytimefitness.com/
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thanks for the link. Thats pretty much what I want. do not want to deal with franchise
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a few questions about starting a gym.
1. Did you guys write your own business plan? If not who did it? Is it possible for someone to post their successful Business Plan or cost of a proven one?
2. I have always heard keep personal funds and business funds totally seperate. Is that even possible?
3. What if I never owned or managed any business before. Is that a major strike against me as far as the loan institution is concerned?
4. I know women have a better chance of getting business funds like low interest loans and even grants. Is this a good consideration?
5. The average price per Sq/Ft is $8-$12. I am looking for around 1200 - 1400 sq/ft. Does this mean rent is $9000 a month?
6. Did you all hire salesmen/trainers or just advertise and sign up whoever came in to ask?
7. Do any of you bill Medicare or insurance companies? If so how do you get started and what are the rules (got a link)?
8. Who wrote your contracts?
9. Does anyone have a 24 hour club with no staff at night? Any horror stories?
10. How much is insurance roughly?
Well these are a few questions I have. Now let me tell you what I had in mind.
At my gym if I wanted to do Cardio I have to basically stand in line like a vulture. Sooo....I was thinking why not have a 24 hour cardio only place. No staff at night. Cameras everywhere. Fingerprint ID\or pin plus picture to get in the building. No long term contracts. Can go month to month. Medicare/Insurance billing if applicable? (not sure if I can or not). 18 and over only. About 50 machines total. 20 ellipticals, 20 Treadmills, 10 Bikes. TV's and radio with transmitters for the machines.
May include Tanning during the daytime while staff is there. May rent out space for massage therapist, physical therapist, aerobics.
I work in the I.T. field so any aspect of cameras, ID verification, software, payroll, etc...will be handled by me.
I know many may cringe at a cardio only place but it is just a business idea that fills a void where other gyms cannot deliver. I see the same people at the gym everyday hitting the cardio and heading out. I always think why do they spend $40 a month for just cardio. I would like to charge $20 to $25 a month with perks like refer 4 people to sign up for year and you will get a year free. In my head it is a cannot fail. The scariest thing is startup. How do I get 300-400 members to join in very quickly to cover my costs. Even then I am not sure that 400 memberships would do it.
Hopefully someone has some valueable input. I would like to really have a go at this. In the long term I would like to franchise out. That's where the money is.
First off is the square footage you put down correct. If so, that is very small for a gym even if it is just cardio. Cause thats all you'll have. You need a front desk area. There you have a small concession and also maybe do sales from there. No way for a shower or bathroom. A place that small I doubt would handle a membership of more than 200 to 250 if that. I doubt your rent is going to be that high. Unless it is in an high traffic office building. But even that is high. And way to high for a gym. And why do you need PT's. There won't be any weights. Anyone can ride a bike or walk a treadmill. You would only need one staff member working but that would be a headache if someone is calling and someone is siging up and someone else is asking you a question. No matter what you have to have a business plan. Especially if you are going to a bank. Having atrack record is good. I have done many business plans for a variety of companies. Including a few gyms including the 160,000 sq ft gym I was dveloping on Oahu. That plan was awesome. It covered everything. It also included an unbias market study that cost an additional $10,000. But the landlord required it. First though, you need to rethink everything if this space is really only 1000 sq ft or so. Going to be hard to make any money.
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Hmm If you get a bank to finance you, please let me know.. My god 8-$12 per square foot.. holy crap!
There is no rule of thumb on how much a square foot is.. It all depends on how big and where it is located.. 12-1400 sq/ft isn't even big enough for a PT studio.. If there are competitors anywhere near, trust me, they will put you out on your butt..
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my bad I was actually wanting 12,000 or so sf.
I did see something today that was 6000 sf. The leasing agent sent me this...
We are asking $14/sf, and are estimating the NNN be $2.70/sf.
This is in the older section of town. There are new sections that I am sure go higher.
There may be light weights provided, tanning, PT's. Just brain storming really. It all depends on the money I will have to shell out a month. If I knew how much the monthly lease payment would be I can determine from that if it is worth it. So if that $14/sf for 6000 sf space had a payment of $84,000 a month then it cannot be done. I see these other business that have spots in this plaza too. I have no idea how they make the payments. I mean how much can you really make doing shoe repair? ???
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my bad I was actually wanting 12,000 or so sf.
I did see something today that was 6000 sf. The leasing agent sent me this...
We are asking $14/sf, and are estimating the NNN be $2.70/sf.
This is in the older section of town. There are new sections that I am sure go higher.
There may be light weights provided, tanning, PT's. Just brain storming really. It all depends on the money I will have to shell out a month. If I knew how much the monthly lease payment would be I can determine from that if it is worth it. So if that $14/sf for 6000 sf space had a payment of $84,000 a month then it cannot be done. I see these other business that have spots in this plaza too. I have no idea how they make the payments. I mean how much can you really make doing shoe repair? ???
No way in the world can a gym of that size survive with a $14 a sq. ft rent schedule. Where is this gym. You need ot find warehouse space NOT office or retail space. They get top dollar for that. See if the zoning permits mix-use. I am in Hawaii and even here NO gym is paying more than $2 a foot maybe a little more. But most are sub $2 and even as low as $1. The gym I am in the process of buying right now we are going to be paying $1 for 26,000 sq.ft. That is located in the middle of town with front footage on the main street.
You need to figure out your hard costs. What improvements are need and if the landlord will give you any TI money. Once you get your hard costs, you need to figure out your membership income and how many members do you need to pay your hard costs. Some equipment (leasing) companies will allow build out costs to be included with your equipment lease payments.
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No way in the world can a gym of that size survive with a $14 a sq. ft rent schedule. Where is this gym. You need ot find warehouse space NOT office or retail space. They get top dollar for that. See if the zoning permits mix-use. I am in Hawaii and even here NO gym is paying more than $2 a foot maybe a little more. But most are sub $2 and even as low as $1. The gym I am in the process of buying right now we are going to be paying $1 for 26,000 sq.ft. That is located in the middle of town with front footage on the main street.
You need to figure out your hard costs. What improvements are need and if the landlord will give you any TI money. Once you get your hard costs, you need to figure out your membership income and how many members do you need to pay your hard costs. Some equipment (leasing) companies will allow build out costs to be included with your equipment lease payments.
This is in the St. Louis area. I see other places like Curves and tanning places in theses Plaza type places. I figured there had to be something I am missing with the payment. There is no way these businesses are pulling down that much cash to pay that high of a price. I am gonna contact some other property management places and tell them what I want so I can get a solid quote. I just didn't want to go in looking like a total dumbass when it comes to leasing and stuff..( i know I am though). :D
I did look at the warehouse locations. They are high as well. usually listed as $8 sf. Looks like I am doomed to the 9-5.
Thanks for your suggestions bro. I will keep on researching options around here.
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This is in the St. Louis area. I see other places like Curves and tanning places in theses Plaza type places. I figured there had to be something I am missing with the payment. There is no way these businesses are pulling down that much cash to pay that high of a price. I am gonna contact some other property management places and tell them what I want so I can get a solid quote. I just didn't want to go in looking like a total dumbass when it comes to leasing and stuff..( i know I am though). :D
I did look at the warehouse locations. They are high as well. usually listed as $8 sf. Looks like I am doomed to the 9-5.
Thanks for your suggestions bro. I will keep on researching options around here.
There are two ways to list commercial property. Depends on what part of the country you are in. Some list the sq ft rate annual, some list it monthly. I am 99% sure they are listing it annual. So, for a 6,000 sq ft club: $14 + $2.7 nnn (common area maintenance, real estate taxe, property mgmt) would be $16.70 x 6,000 = $100,200 annual rent / 12 = $8,350 per month.
I have two Fitness Centers, one in Madison Wisconsin paying $10.50 sq ft + $4.00 nnn that is 5,260 sq ft. The other is $16 sq ft + $4 nnn at 4,760 sq ft in Sun Prairie, WI. At each club I have approx 22 peices of cardio, all with "Cardio Theatre", 1 "full" set of selectorized equipment, power cage, smith machine, 5 pieces of hammer strenght, 5 - 100 lb TKO rubberized dumbell, 2 tanning rooms, 2 privite bath w shower, 1 restroom, two offices. Fits nicely.
A "Cardio Only" club of 6,000 + sq ft would be insanley expensive to equip with enough equipment to fill it up. Cardio equipment is by far the most expensive stuff! On 22 pieces I spent about $60,000.
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There are two ways to list commercial property. Depends on what part of the country you are in. Some list the sq ft rate annual, some list it monthly. I am 99% sure they are listing it annual. So, for a 6,000 sq ft club: $14 + $2.7 nnn (common area maintenance, real estate taxe, property mgmt) would be $16.70 x 6,000 = $100,200 annual rent / 12 = $8,350 per month.
I have two Fitness Centers, one in Madison Wisconsin paying $10.50 sq ft + $4.00 nnn that is 5,260 sq ft. The other is $16 sq ft + $4 nnn at 4,760 sq ft in Sun Prairie, WI. At each club I have approx 22 peices of cardio, all with "Cardio Theatre", 1 "full" set of selectorized equipment, power cage, smith machine, 5 pieces of hammer strenght, 5 - 100 lb TKO rubberized dumbell, 2 tanning rooms, 2 privite bath w shower, 1 restroom, two offices. Fits nicely.
A "Cardio Only" club of 6,000 + sq ft would be insanley expensive to equip with enough equipment to fill it up. Cardio equipment is by far the most expensive stuff! On 22 pieces I spent about $40,000.
Great info gunnz...I did finally figure that out about the annual rent. Unfortunately the place I was looking at was a bust because they are using an old walmart next door to open a Golds gym. I would be screwed. The shady thing is that the agent never told me about Golds moving in. It could have been a major disaster financially. He called to see if I was interested in more property. I told him to F off.
Thanks for the reply man.
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I live in one of the most expensive places on earth and rent here for most gyms are around $1 to $2 a foot. The 24 Hour Fitness on Kapiolani pays about $2 a sq. ft. and their gym is just over 54,000 sq. ft. The Golds in Honolulu pays just over a dollar a foot and they are 25,000 sq. ft. The gym we were developing on Oahu in the mid 90's was 160,000 sq. ft. and the rent was $99,000 a month with $34,000 in CAM ($133,000 total). The rent at the Golds i owned here in Kona was $1 a foot for 14,000 sq. ft. The gym we are looking at now is in prime location on the main street and it is $1 a foot at 26,000 sq. ft. I can't imagine having to pay those rates you guys are paying. I also couldn't see having a gym under 10,000 sq. ft. But, here we are limited to the number of gyms. You need to get industrial property and get it rezoned or find a mixed-use property.
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I live in one of the most expensive places on earth and rent here for most gyms are around $1 to $2 a foot. The 24 Hour Fitness on Kapiolani pays about $2 a sq. ft. and their gym is just over 54,000 sq. ft. The Golds in Honolulu pays just over a dollar a foot and they are 25,000 sq. ft. The gym we were developing on Oahu in the mid 90's was 160,000 sq. ft. and the rent was $99,000 a month with $34,000 in CAM ($133,000 total). The rent at the Golds i owned here in Kona was $1 a foot for 14,000 sq. ft. The gym we are looking at now is in prime location on the main street and it is $1 a foot at 26,000 sq. ft. I can't imagine having to pay those rates you guys are paying. I also couldn't see having a gym under 10,000 sq. ft. But, here we are limited to the number of gyms. You need to get industrial property and get it rezoned or find a mixed-use property.
So the Golds you owned was $1 a foot for 14,000 sq ft, or $14,000 a month, right?
Where I live, and throughout much of the country (but not everywhere) they list square footage on an annual basis, so for your gym:
$14,000 per month rent x 12 months = $168,000 annual rent
$168,000 annual rent / 14,000 sq ft = $12.00 sq ft
So you are paying $1 sq ft monthly, or $12 sq ft annually. Not that different.
And the gym you were developing would have been listed at about $10 sq ft annual if I did my quick math right. Also not that different considering that was in the mid 90's.
A facility under 10,000 sq ft can fill a nich and be quite profitable! IMO alot of people are tired of the "medium" and "big box" gyms.
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I live in one of the most expensive places on earth and rent here for most gyms are around $1 to $2 a foot. The 24 Hour Fitness on Kapiolani pays about $2 a sq. ft. and their gym is just over 54,000 sq. ft. The Golds in Honolulu pays just over a dollar a foot and they are 25,000 sq. ft. The gym we were developing on Oahu in the mid 90's was 160,000 sq. ft. and the rent was $99,000 a month with $34,000 in CAM ($133,000 total). The rent at the Golds i owned here in Kona was $1 a foot for 14,000 sq. ft. The gym we are looking at now is in prime location on the main street and it is $1 a foot at 26,000 sq. ft. I can't imagine having to pay those rates you guys are paying. I also couldn't see having a gym under 10,000 sq. ft. But, here we are limited to the number of gyms. You need to get industrial property and get it rezoned or find a mixed-use property.
Damn dude 160,000 sq ft. You could put living quarters up in that place. How many clients do you need to make a living? How long did it take to get your customer base. Man that is a phenomenal gym man. :o
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160,000 sq ft gym sounds like something us gym owners only dream about.. Never happened, never will.. Anything over 100,000 sf would be way too much for any membership base to cover the cost of overhead.. I'm happy with 15,000 sq ft tops and if you knew how much I pay you'd be wanting to partner up with me fast.. ;D
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160,000 sq ft gym sounds like something us gym owners only dream about.. Never happened, never will.. Anything over 100,000 sf would be way too much for any membership base to cover the cost of overhead.. I'm happy with 15,000 sq ft tops and if you knew how much I pay you'd be wanting to partner up with me fast.. ;D
alright ARMZ....how good of a deal you get dude? ;D
I was scoping out these Steel buildings that you can get for around $5-$10 a sq ft. Of course that is only for the building material.
Here is a link for one. There are many out there though. http://www.buildingsguide.com/steel-shop-buildings.htm
Instead of throwing away money on rent I would think, in the long run anyway, this would be the way to go. I am guessing you could get a 30 year note. If you managed to stay in the biz for 10 - 15+ years you might have the structure and land paid for at the same price as rent while building equity.
Any Thoughts?
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alright ARMZ....how good of a deal you get dude? ;D
I was scoping out these Steel buildings that you can get for around $5-$10 a sq ft. Of course that is only for the building material.
Here is a link for one. There are many out there though. http://www.buildingsguide.com/steel-shop-buildings.htm
Instead of throwing away money on rent I would think, in the long run anyway, this would be the way to go. I am guessing you could get a 30 year note. If you managed to stay in the biz for 10 - 15+ years you might have the structure and land paid for at the same price as rent while building equity.
Any Thoughts?
You can't really go wrong with owning the real estate imo...... but you are going to need some money to get the loan. Paying for the building, land and equip, misc supplies... you are going to have to have a good net worth, good cash in the bank, good credit. figure 20% minimum down on the note.
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So the Golds you owned was $1 a foot for 14,000 sq ft, or $14,000 a month, right?
Where I live, and throughout much of the country (but not everywhere) they list square footage on an annual basis, so for your gym:
$14,000 per month rent x 12 months = $168,000 annual rent
$168,000 annual rent / 14,000 sq ft = $12.00 sq ft
So you are paying $1 sq ft monthly, or $12 sq ft annually. Not that different.
And the gym you were developing would have been listed at about $10 sq ft annual if I did my quick math right. Also not that different considering that was in the mid 90's.
A facility under 10,000 sq ft can fill a nich and be quite profitable! IMO alot of people are tired of the "medium" and "big box" gyms.
Oh I thought you were talking monthly rent. Your are right then.
160,000 sq ft gym sounds like something us gym owners only dream about.. Never happened, never will.. Anything over 100,000 sf would be way too much for any membership base to cover the cost of overhead.. I'm happy with 15,000 sq ft tops and if you knew how much I pay you'd be wanting to partner up with me fast.. ;D
I can't remember the exact overhead costs but close to 80% of the rent was covered trhough subleases I had setup involving, restaurant, travel agency, suntanning company, sports medicine, car detailing, personal trainers, etc. We had clsoe to 3,000 pre-signups before we officially broke ground. This is a very lengthy story but in short the developer stole the money and it never officially opened. They foreclosed on me and we shut everything down. None of the members lost any money and 100% of it was returned. Our projections had us at 10,000 members after the 18th month if I remember.
Now the gym here we are looking is a very successful operation. Payroll is high at $700,000+ last year but that can be fixed very easily. The rent is great. As opposd to buying the building without owning the land which makes it touchy. Plus the land lease is up in 2020 I think so buying the buildings aren't the smart thing to do. But the business is easily worth we are offering. It is just 26,000 sq. ft.
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Is it worth it?
Yes.. You have to have a passion for it along with some basic business sense. There are so many things involved that the average person who workout don't even notice when they're in the gym.
Was it hard to get ta loan?
For me it wasn't, I had pretty good credit and collateral
Where did you get your equipment, and did you buy new or used?
A little of both. Some equipment (benches, dumbbell's, rubber plates, etc) last for quite awhile. If you can afford to buy those upfront I think cheaper in the long run. Cardio equipments on the other hand breaks down more frequently, these are better to lease.
Are you glad you did it?
Yes,
If you could go back 5 or 10 years, what would you do differently?
You always learn when you're doing something no matter how long you've been doing it. can't specifically say I'd change a, b or c. But I've gain a bit more knowledge on things here and there that will make you say "emm ok, I' do this next time or I should have done it this way and I'd be a bit easier"
One negatives of working out in my gym is interuption from members. They assume you're always working and have a free access to ask you anything at anytime. that's ok except wen I'm trying to get my training done. The easy solution would be to train somewhere. When you own a gym or any business you realize that the more you're around the smother it goes.
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any gym owners here i would like to get some feedback on this.
It will prevent on the wear and tear on your gym floors and dumbbells, as well as injuries
to the user or someone standing around your workout. Go to my web site, if you look on the
Home page upper left side you can click on to other features, Pics.and more Info on it. Thanks
Here's the site. www.tekfusionnewagegymeq uipment.com
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How has the economy the past three years affected business for gym owners here?
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good job everyone.
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Is it worth it? Was it hard to ge ta loan? Where did you get your equipment, and did you buy new or used? Liability? Other issues?
Are you glad you did it? If you could go back 5 or 10 years, what would you do differently? This is the place where gym owners, or those interested in maybe starting a gym down the road, can talk about it!
Wow, leave it to Rob to start such a thoughtful and informative thread.
Since this thread is quite a few years old, I was wondering if any of the respondents might have any 20/20 hindsights they might want to add in this new post-pandemic era?
Thanks in advance :)