There’s no denying the fact that fitness centers are extremely profitable ventures. But the truth is that there is a large initial investment that must be made in order to start this type of business. If you are interested in opening a fitness center, you should continue to read this article to find out what are the startup costs that await you.
Business incorporation fees
You might think that finding the location is the first step to opening a fitness center, but it’s actually not. First of all, when setting up a fitness center, you must incorporate your business in your state. Also, you have to get a federal Employer Identification Number for the business. The incorporation part will cost you money, while the Employer Identification Number is free.
After you pay the incorporation fees and you get the Employer Identification Number, it’s time for the insurance. Fitness centers can be quite dangerous, people sometimes exerting themselves and getting injured. Without insurance, such an incident could cause you to go bankrupt if the customer blames you for the incident. To stay away from such problems, buy insurance for your business, and make sure that you include all the possible clauses in the membership waiver. This will protect you from getting into trouble.
When you get to the step of finding the perfect location for the fitness center, you first have to decide whether you want to buy or lease the location. Afterward, you can start looking for the ideal spot where to set up the fitness center. There are a few rules that you must take into consideration when choosing the perfect location. For example, you have to make sure that there are no other similar businesses in the area. Also, you have to look for a spot that has a lot of traffic, ensuring that a lot of people will walk or drive by and notice your business.
Now, it’s time to talk about the core of your business, the equipment. Fitness equipment is pricey, there’s no denying it. But keeping in mind how profitable a fitness center is, you will take back the money that you invested in no time. When purchasing the equipment, you must make sure that you buy enough pieces to populate the gym without overcrowding it. Also, make sure that you have as many types of equipment as possible to suit all the needs of your clients. For example, it’s mandatory for a fitness center to have treadmills, rowing machines, dumbbells, and weighted clothing because these are the most popular fitness equipment out there. Dumbbells are used for a variety of exercises, weighted clothing provides added resistance to make workouts more challenging, treadmills offer a good cardio workout, and rowing machines are ideal for those who want to work out all their muscles at once.
Of course, when you open the fitness center you must advertise to have customers coming in since day 1. Get the word out about your business through ads in the local newspaper, on a local radio station, and spread flyers. Also, build a website for the fitness center, and create Facebook and Twitter accounts for it. After all, you can’t expect customers to come rushing in if they don’t even know that you have opened up.