# Opening a gym



## Russ.B (Aug 10, 2010)

Hi All,

Wondered if anyone could help me or give any advice.

I am looking into opening a gym and have found a small place (3,000 sq ft) in a great location. From what I have read so far its all about location.

I am putting together a business plan and managed to calculate most things but dont have a clue how much electricity and other utilities would cost each month. Anyone able to have an estimate?

Also what is the cost of employers and public liability insurance?

I am on a very tight budget and have managed to source nearly all the kit I need to start up for £30,000. Obviously reconditioned. Going for 15 pieces of CV. Resistance machinces for the major muscles and a decent free weight area.

Last question for any gym owners. What do you think the maximum amount of members I could have on the books for this size of gym?

Any help would be great. Thanks


----------



## stevo99 (Nov 28, 2008)

for your insurance then i think your best getting some quotes mate, they vary like mad.


----------



## musio (Jan 25, 2008)

I couldn't give you any good advice but here's my 2p's worth

-look at the local demographic.bodybuilders? bimbo CV girls? gear the gym towards the clients

-if the gym is constantly packed, you'll get a bad rep for 'that gym where nobody can get onto the bench' so maybe put some 'student times' in like my old gym use to have. Evenings were great as the kids came before the bigger kids who were out to work.

-Re estimate of expenses? it all depends, doesn't it? How many sinks, taps, machines, did you see the manufactures specs to see how power efficient they are? put all the watts into a spreadsheet, calculate the wattage, shop around for an energy supplier, see how much the costs vary, come up with a median? Then at x% for winter, will you have aircon? When will it be on? If you get to the nitty gritty and you're good with spreadsheets i think you can get a rough idea. Maybe there is someone on here who runs a gym and can give you better advice.

Good luck - where about's will you be opening? Can i have a free membership?....oh, one can only but ask..


----------



## musio (Jan 25, 2008)

PS. If i can't have a membership, can i have a peep hole to spy into the girls changing rooms like the film porkys?


----------



## ElfinTan (May 23, 2008)

Planning permission?


----------



## Guest (Aug 11, 2010)

1 Why are you looking to open a gym ?? just because you can ???

2 Do you have any experience at all with health clubs or gyms ??

3 Ensure you can operate and get planning permission before starting to do buisnes plans

4 Be prepared for alot of very very hard work


----------



## coflex (May 10, 2010)

i sold my place 3 years ago at a big loss. best thing i ever did.

my insurance then was £1500. the electricity was 180 per quarter. dont forget rates. water charges. advertising.

mate, my advice is not to do it unless you have £10,000 sitting in the bank to fall back on. ppl wont walk thru the doors right away.


----------



## Will101 (Apr 14, 2009)

I agree with coflex on insurance - budget £1,500. I have a commercial policy and £850 a year but that is for an office based business - risks with a gym would be higher I guess plus location, levels of cover etc. will all vary.

The landlord should be able to give you a guide to utilities.

Also, don't forget to factor in legal fees for reviewing the lease on premisis - as much as £3,500 for a straightforward contract.

Once you think you have all your costs, don't forget to add a healthy contingency as there will be things that surprise you along the way.

Good luck mate!

Oh and on member numbers, this could be rubbish but I was once told gym's have a limit on the number of members based on their sq ft premisis size. This is for health and safety reasons....


----------



## musio (Jan 25, 2008)

Will101 said:


> Oh and on member numbers, this could be rubbish but I was once told gym's have a limit on the number of members based on their sq ft premisis size. This is for health and safety reasons....


I heard the same based on health and safety regulations, blah blah blah


----------



## Little Ron (Aug 10, 2010)

From my experience the hardcore gyms are slipping away as the core membership of bodybuilders is not enough to keep them afloat. Gyms are losing membership to the big chains like Fitness First, David Lloyd and Virgin etc etc as they have all the tarty facilities. You just cannot compete with the capitol those places or Leisure Centres have. 

You say you are outlaying 30k so in your business plan how long will it take to recoup that investment?


----------



## Greyphantom (Oct 23, 2003)

I have read that its about 30 people per 5 sqm...


----------



## Russ.B (Aug 10, 2010)

Thanks for the replies so far.

The reason I am looking at opening a gym is because I want to. I have been going to gyms for nearly 10 years now, and both of my brothers are personal trainers and will be partners in the business. I will be the one putting most of the capital in.

I dont think planning will be a problem as there is already leisure use on the same site and the agent said it will not be a problem.

It will not be a bodybuilding gym. There will be a small free weights section but I know this is not the area which makes the money. There will be CV, resistance machines and a small studio offering classes.

The spot I have found is in the middle of an area with a 10,000 population along with many small villages around and big business parks nearby. Also a 5 min drive to the closest town. There is no gym in this area so this must be a benefit.


----------



## zelobinksy (Oct 15, 2008)

Ask tinytom, hes opening ministryoffitness.

best of luck mate!


----------



## Fatboy 23 (Apr 21, 2009)

you have to have air-con and there are alot of hidden costs.you need disabled access nowadays ect ect i know because weve just moved into a brand new gym.u need disabled toilets lifts if theres 2 levels .. air-con is a must to meet building regs. also with the economy how it is you will struggle to get loans ect.sorry to put a downer on it


----------



## Russ.B (Aug 10, 2010)

Im not worried about the funding of it. I have that bit sorted.

What happens if you dont have disabled access, air con or lifts. The gym I go to now has non of these and they seem to do ok.

I know everyone will say I need air con but at this stage I dont have the funds for that but will aim to get within 18-24months of opening.


----------



## coflex (May 10, 2010)

the air con isn't a must. but dis-abled access is. if the building is on the ground floor then you're sorted, easy. if it's on the first floor you may be in trouble. there are loop holes in this building regulation tho. because it's an existing building. if it's impossible to fit a lift you may get round it. BUT, it still leaves you open to discrimination claims in the future. ie. if fred comes along in his wheelchair and cant gain access to your facilities, then he can claim against you for discrimination. i've seen it done before mate.


----------



## Will101 (Apr 14, 2009)

Ok, this is bad but you can get around the disabled access by fitting disables toilet facilities and being disabled friendly "as far as is reasonably possible" - even if they can't reach them in the first place..... Like a lot of things, what is in ledgistlation / in a contract, it is worthless until it receives judgement in court.....

Nothing major, just another "gamble" in the world of running your own business!


----------



## Tinytom (Sep 16, 2005)

My legal fees were around 2k

Planning consultant fees 2k (although I did get this paid back by council at appeal)

Building and renovation costs over £40k

Equipment costs over £50k plus cardio which we hire.

Rubber flooring was £6k

Losts of hidden costs which come up at the wrong time. We dont have air con but will soon, we've had a quote close to £20k for air con so that can wait.

Also dont forget that planners dont like gyms opening. Took us nearly a year to get planning and we had to go to committee and appeal.


----------



## Russ.B (Aug 10, 2010)

There are already disabled tiolets in the building due to space I was going to change the layout and just make this put of the male changing rooms. I might just keep it how it is now.

Tinytom how big is your gym? I will be looking to half that renovation cost and I konw that the kit I get will be cheaper but it is going to be reconditioned.

I have only got a small space 3000 sq ft.


----------



## Tinytom (Sep 16, 2005)

Mines 9000 sq ft


----------



## vitty (Jan 28, 2008)

Ive been to plenty of gyms that were two floored and none of them had nor accesability for disabled nor air cons...


----------



## gearchange (Mar 19, 2010)

vitty said:


> Ive been to plenty of gyms that were two floored and none of them had nor accesability for disabled nor air cons...


My gyms the same (if your disabled you have to have a partner for health and safety reasons)So get them to carry up the stairs. :tongue:


----------



## MMM (Aug 7, 2010)

hey russ weres this gym ganna be some where close to me i hope


----------



## yoshi123 (Jul 25, 2010)

Tinytom said:


> My legal fees were around 2k
> 
> Planning consultant fees 2k (although I did get this paid back by council at appeal)
> 
> ...


This is really good advice.

Some other things are accountants fees, they bleed you dry then they fck up your books then you sue them (well it can roll like that).

I think also you might be looking at 1-2 years before you get a tonne of members and the money starts flowing. Advertising costs are an issue.

Don't mean to be neg here, but in the last 12 years, 3 gyms I trained at shut, and 2 other gyms changed hands 3 times - never making a profit also. I am guessing each time a new buyer comes in, they buy the gym cheaper and cheaper...maybe by the time it's sold to the 10th person it'll hit profit.


----------



## Russ.B (Aug 10, 2010)

Ye sounds about right. In my busniness plan I havent got the gym making money until year 3. It will actually make a small loss in the first year. These are on very modest predictions so you never know the first year might blow my prediction out of the water.

Also surely it doesnt matter what you buy the gym for. You could buy it for £1 but if your outgoings are more than your income from the gym then you make a loss and therefore fail.


----------



## Tinytom (Sep 16, 2005)

if you do your ground work it can work for you

Ive been open 2 weeks and got 85 members.


----------



## Kezz (Sep 3, 2007)

it can be well stressful, especially if you are in the middle of knowhere like me!!

I'm still going after 12 years and although i cant say i make much money i wouldn't change my job for the world!!

well perhaps if i won the lottery !!!


----------



## Earl-Hickey (Apr 20, 2010)

My eventual aim is to open a gym when i turn 30, so i have 3 years of university, where im doing sport and nutrition and business managment majors, then 4 years to earn some $$$ and then get started


----------



## Will101 (Apr 14, 2009)

Tinytom said:


> if you do your ground work it can work for you
> 
> Ive been open 2 weeks and got 85 members.


Nice work, that's a great achievement :thumb:


----------



## Russ.B (Aug 10, 2010)

Tinytom said:


> if you do your ground work it can work for you
> 
> Ive been open 2 weeks and got 85 members.


That is quality. Well done.

How many do you predict by the end of the first year.

And what would you say the maximum amount of members you could get for the size of your gym.


----------



## m14rky (Aug 11, 2008)

Tinytom said:


> My legal fees were around 2k
> 
> Planning consultant fees 2k (although I did get this paid back by council at appeal)
> 
> ...


sounds expensive how long do u reckon till u get all the money back uve laid out


----------



## empzb (Jan 8, 2006)

Don't forget the running costs as well, there's staff, overheads like electricity, water if you have showers, gas for heating, insurance, advertising (although that can be done very cheaply), replacement machines etc!


----------



## Greyphantom (Oct 23, 2003)

One thing I would like to mention... if you want to do it then do, dont listen to all the nay sayers and negative nellies... it sounds like you are doing your homework and things are progressing... good luck to you and for your adventure...


----------



## Russ.B (Aug 10, 2010)

Cheers greyphantom, thanks for the support.

Ive noticed there are always some negative comments but if I dont try this I will never know what would have happened.


----------

