# Opening a Gym



## helder07 (Jan 25, 2007)

Hi guys

Im looking to open a gym in the Leicestershire area and was wondering if any of you know any good places where I can get a business loan from and as im only 26 is there any government funding, im sure there are a few gym owners on this forum who will be able to point me in the right direction.

Thanks guys

Helder


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## westsider (Feb 12, 2007)

Helder as far as raising finance for a gym goes given the fact that you will probably have a cash flow crunch you are best of leasing equipment rather that buying it for that you are best of speaking to a company like GMAC or Lombard. Do you already have a premises? Are you looking to buy a gym franchise ie Golds etc or set up an independent place. Speak to a high street bank like Natwest or Barclays regarding business start ups they are generally quite good. They will want you to put in some security. The government have a scheme called the Small Firm Loans Guarantee scheme look in to that. Also check out this website - growingbusiness.co.uk


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## Craig660 (Dec 8, 2005)

or speak to ninepack


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## BSF James (Sep 29, 2003)

I opened a gym as my first business when I was 23. I used a small firms guarantee loan (although we paid it back after 1 year when we sold the gym to concentrate on supplements). If you can possibly get by without a loan that is better though as gyms are a tough industry to survive in and the smaller overheads you have the better. The small firms loan guarantee is ok, but it adds an awful lot onto what you pay back to the bank (for us I think it was £6k onto a £30k loan) and if things go tits up, then you will still have to repay it.

We did look for other sources of funding when we were starting, but at the time there were none.

Its tough running an independant gym, but it largely depends on location and the area, so if you find the right spot then it can be a success. Our gym wasnt a great success (in fact we took about £25,000 that whole year in the gym, whereas we do a good deal more than that on supplements in a week now), but that was down to poor parking facilities, poor location, lots of competition and no heating/air conditioning. If we had that same gym in the location we're in here it would be pretty successful. Just do your research on the area you are looking to buy in. For equipment, I recommend to buy 2nd hand as brand new stuff devalues incredibly quickly and the second hand market is flooded with stuff at the moment. Also, as there are many gyms closing down these days, look out for liquidation sales.


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## helder07 (Jan 25, 2007)

silentbob said:


> I opened a gym as my first business when I was 23. I used a small firms guarantee loan (although we paid it back after 1 year when we sold the gym to concentrate on supplements). If you can possibly get by without a loan that is better though as gyms are a tough industry to survive in and the smaller overheads you have the better. The small firms loan guarantee is ok, but it adds an awful lot onto what you pay back to the bank (for us I think it was £6k onto a £30k loan) and if things go tits up, then you will still have to repay it.
> 
> We did look for other sources of funding when we were starting, but at the time there were none.
> 
> Its tough running an independant gym, but it largely depends on location and the area, so if you find the right spot then it can be a success. Our gym wasnt a great success (in fact we took about £25,000 that whole year in the gym, whereas we do a good deal more than that on supplements in a week now), but that was down to poor parking facilities, poor location, lots of competition and no heating/air conditioning. If we had that same gym in the location we're in here it would be pretty successful. Just do your research on the area you are looking to buy in. For equipment, I recommend to buy 2nd hand as brand new stuff devalues incredibly quickly and the second hand market is flooded with stuff at the moment. Also, as there are many gyms closing down these days, look out for liquidation sales.


 Hi Thanks a lot for the in depth information, I am actually going to have a look at a gym thats for sale on Saturday, I think the guy wants 40k for it but will have to have a look and see if its worth it, There are a lot of gym's about at the moment and they all seem to be surviving!!

What's your supplement company called, I was also thinking about opening and supplements shop but don't know if there is a big enough market for it around these areas!!

Thanks again for the info

Helder


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## BSF James (Sep 29, 2003)

helder07 said:


> Hi Thanks a lot for the in depth information, I am actually going to have a look at a gym thats for sale on Saturday, I think the guy wants 40k for it but will have to have a look and see if its worth it, There are a lot of gym's about at the moment and they all seem to be surviving!!
> 
> What's your supplement company called, I was also thinking about opening and supplements shop but don't know if there is a big enough market for it around these areas!!
> 
> ...


Hi mate. If you want any further advice on gyms, feel free to email me or pm me. I would certainly take asking prices on any gyms you look at with a pinch of salt. Personally if I were to make an offer on a gym it would be typically half of the asking price as the owner always massively over-values it. A lot of the time they base the price on what the equipment cost them, when in reality the equipment has very little value now its no longer new. Far more important to look at is the customer base/turnover/profit margins/overheads and like I said - the location and parking facilities. We lost a lot of members at our gym just because the nearest car park was a quarter mile away. People go to a gym to get fit but are too lazy to walk that extra bit of distance to get there! Sounds silly but its very true.

Supplements - its difficult to do really well as a supplement retailer starting out now if thats your standalone business. Back in 2003 when we started it was easy to get established in the market but its so competitive online now that there's dozens of new companies cropping up each month and most dont last long. We've supplied quite a few that have come and gone in recent times. Local supplement shops that dont trade online tend to struggle just because its a bit 'niche' for a bricks and mortar shop only covering a small area of walk-in custom. However, for gyms supplements are definitely an essential sideline. We have some gym accounts that do extremely well on supplements. In fact a lot of our gym accounts buy and sell more supplements from us than the online retailers we supply do. I think most gyms probably get anywhere from 1/4 to a 1/3 of their turnover from supplements these days.

My company is BodyShapers Fitness Ltd (www.bodyshapersfitness.com). Please feel free to get in touch if/when you open your gym and we can offer you a trade account.


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## bow chika wow (Aug 1, 2007)

westsider said:


> Helder as far as raising finance for a gym goes given the fact that you will probably have a cash flow crunch you are best of leasing equipment


But saying that.......in the long term it will bite you on the ass as you end up paying over the odds for the equipment. I wouldnt by brand new either...there are lost of great 2nd equuipment on the market from gyms that have folded. All I will say is make sure your business plan is solid and learn from those already in the business, who have already made the mistakes.


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## helder07 (Jan 25, 2007)

silentbob said:


> Hi mate. If you want any further advice on gyms, feel free to email me or pm me. I would certainly take asking prices on any gyms you look at with a pinch of salt. Personally if I were to make an offer on a gym it would be typically half of the asking price as the owner always massively over-values it. A lot of the time they base the price on what the equipment cost them, when in reality the equipment has very little value now its no longer new. Far more important to look at is the customer base/turnover/profit margins/overheads and like I said - the location and parking facilities. We lost a lot of members at our gym just because the nearest car park was a quarter mile away. People go to a gym to get fit but are too lazy to walk that extra bit of distance to get there! Sounds silly but its very true.
> 
> Supplements - its difficult to do really well as a supplement retailer starting out now if thats your standalone business. Back in 2003 when we started it was easy to get established in the market but its so competitive online now that there's dozens of new companies cropping up each month and most dont last long. We've supplied quite a few that have come and gone in recent times. Local supplement shops that dont trade online tend to struggle just because its a bit 'niche' for a bricks and mortar shop only covering a small area of walk-in custom. However, for gyms supplements are definitely an essential sideline. We have some gym accounts that do extremely well on supplements. In fact a lot of our gym accounts buy and sell more supplements from us than the online retailers we supply do. I think most gyms probably get anywhere from 1/4 to a 1/3 of their turnover from supplements these days.
> 
> My company is BodyShapers Fitness Ltd (www.bodyshapersfitness.com). Please feel free to get in touch if/when you open your gym and we can offer you a trade account.


 Thats very valuable information, thank you very much, when I open my gym I will contact you for the supplements.

Thanks

Helder


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## Nine Pack (Oct 30, 2006)

bow chika wow said:


> But saying that.......in the long term it will bite you on the ass as you end up paying over the odds for the equipment. I wouldnt by brand new either...there are lost of great 2nd equuipment on the market from gyms that have folded. All I will say is make sure your business plan is solid and learn from those already in the business, who have already made the mistakes.


On the leasing subject, you save far more in tax than you overpay on equipment if you actually own as little as possible of the equipment in the early stages. We have got a phenominal deal from Hammer Strength/Life Fitness and as well as that, the interest charges on the lease are tiny. Everyone thought we'd get spanked buying new, but if you could see the amount of discount we got off the list prices, you'd be gobsmacked. We are also looking at getting some assistance from the IFI (inclusive fitness initiative) as a lot of our equipment is usable by people with disabilities.

Echo what B.C.W said about the business plan. Make sure it is a sound plan with a few accurate financial projections, not too optimistic (I have 26 different scenarios played out over three years). We based our projections to the bank on getting just 300 members by the end of year one. In reality we'll probably smash that, but at least we know we can still survive even if we only have a modest start. Your plan should'nt be something just to impress the bank to get the funding, it should be something you actually use to measure your progress against as you go along. Too many businesses put together a plan looking through rose coloured spectacles & make it sound great just to get a loan, but then they find they haven't really made any solid plans.

Remember, fail to plan and you plan to fail. (jeez, I sound like my old boss)


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## bow chika wow (Aug 1, 2007)

Nine Pack said:


> On the leasing subject, you save far more in tax than you overpay on equipment if you actually own as little as possible of the equipment in the early stages. We have got a phenominal deal from Hammer Strength/Life Fitness and as well as that, the interest charges on the lease are tiny. Everyone thought we'd get spanked buying new, but if you could see the amount of discount we got off the list prices, you'd be gobsmacked. We are also looking at getting some assistance from the IFI (inclusive fitness initiative) as a lot of our equipment is usable by people with disabilities.
> 
> Echo what B.C.W said about the business plan. Make sure it is a sound plan with a few accurate financial projections, not too optimistic (I have 26 different scenarios played out over three years). We based our projections to the bank on getting just 300 members by the end of year one. In reality we'll probably smash that, but at least we know we can still survive even if we only have a modest start. Your plan should'nt be something just to impress the bank to get the funding, it should be something you actually use to measure your progress against as you go along. Too many businesses put together a plan looking through rose coloured spectacles & make it sound great just to get a loan, but then they find they haven't really made any solid plans.
> 
> Remember, fail to plan and you plan to fail. (jeez, I sound like my old boss)


Also lok into a secondary income for example supplement sales....not just your primary income(membeship fee's) We have just doen a business plan for a gym on secondary spend and increased it by 4 fold in 6 months and we have only implemented less than 15% of the business plan so far, and alot of gyms are dead this time of the year due to money, ppl off on holidays, kids off etc. So its def worth while, and alot of companies will deal in cash for you :rolleye11


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## neilmcteggart (Sep 7, 2008)

helder07 said:


> Hi guys
> 
> Im looking to open a gym in the Leicestershire area and was wondering if any of you know any good places where I can get a business loan from and as im only 26 is there any government funding, im sure there are a few gym owners on this forum who will be able to point me in the right direction.
> 
> ...


hey man, newbie here

any joy with the gym ??

planning on opening a personal training studio myself based on strength stuff / kettlebells / mma etc etc - not your standard gym (too many where i am) so i am heading for more of a niche - would just be interested to hear how you got on ???

neil


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## Kezz (Sep 3, 2007)

BSF James said:


> I opened a gym as my first business when I was 23. I used a small firms guarantee loan (although we paid it back after 1 year when we sold the gym to concentrate on supplements). If you can possibly get by without a loan that is better though as gyms are a tough industry to survive in and the smaller overheads you have the better. The small firms loan guarantee is ok, but it adds an awful lot onto what you pay back to the bank (for us I think it was £6k onto a £30k loan) and if things go tits up, then you will still have to repay it.
> 
> We did look for other sources of funding when we were starting, but at the time there were none.
> 
> Its tough running an independant gym, but it largely depends on location and the area, so if you find the right spot then it can be a success. Our gym wasnt a great success (in fact we took about £25,000 that whole year in the gym, whereas we do a good deal more than that on supplements in a week now), but that was down to poor parking facilities, poor location, lots of competition and no heating/air conditioning. If we had that same gym in the location we're in here it would be pretty successful. Just do your research on the area you are looking to buy in. For equipment, I recommend to buy 2nd hand as brand new stuff devalues incredibly quickly and the second hand market is flooded with stuff at the moment. Also, as there are many gyms closing down these days, look out for liquidation sales.


 25k a week on supps!!!!! respect, that good going


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## sallgate (Jan 27, 2010)

If your looking at 2nd hand gym equipment let me know as our company has taken in a full body building gym that was sent into liquidation in December which we are currently selling.


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## SK-XO (Aug 6, 2009)

Very informative thread, cheers guys.

I would eventually be looking at opening a gym in the coming years, mainly because my area is a large town but only has 2 fitness gyms and all the "bodybuilding" era is being phazed out. And all the surrounding small towns have no gym apart from very small council ones that have no weight training equipment what so ever, just some techno crap machines. Even the fitness gyms are all converting to the techno crap way.


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## Hardc0re (Apr 21, 2009)

Where in Scotland are you SK-XO?

Sounds a bit like where i stay in Fife.


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## SK-XO (Aug 6, 2009)

Hardc0re said:


> Where in Scotland are you SK-XO?
> 
> Sounds a bit like where i stay in Fife.


Just outside Edinburgh mate. Fife is quite like that as well I know, you from KDY?


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## Hardc0re (Apr 21, 2009)

SK-XO said:


> Just outside Edinburgh mate. Fife is quite like that as well I know, you from KDY?


Im from just outside Dunfermline. Only really got Bannatynes near me. But ive started travelling into KDY to train at templehall. Its the closest gym that caters for bodybuilders.

Would love to open up a gym in my area. But like most people, this is probably not the best financially safe time to go ahead and open a new business.


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## physcult (Apr 6, 2008)

I think you should also approach ther local council to see if there are any grants. Grants are better than loans:thumb: Loans are nasty if you want to survive the 1st year.

You need to write your business plan in a sutable way to impress the council. Employing lots of people, service to community etc etc.


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## thefitness (Feb 18, 2010)

hey guys,

had a successful family run business for 30 years now the key = hardwork! recently purchased some new equipment from The Fitness Shop (www.the-fitness-shop.com) awesome stuff and has gone down a treat. Really worth checking out.

Good luck with setting up its all worth it once the money starts rolling in!


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## alley (Feb 20, 2010)

hi sallgate

I would love to know more about the liquidation stock that your firm has.

ta

alley


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## stu'y (Feb 21, 2010)

sallgate said:


> If your looking at 2nd hand gym equipment let me know as our company has taken in a full body building gym that was sent into liquidation in December which we are currently selling.


hi i am just in the process of opening my own gym and are looking for some decent equipment at realistic prices there is loads of stuff on ebay and i know a guy who has 2 gyms and he has told me about liquidation sales etc and auctions so i was wondering what have you and what price are you looking for i have the cash so i am not messing but i am not going to pay megga bucks thanks stu


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