12 Do’s and Don’ts for a Successful Gym Business
There are a lot of opportunities for Biloxi business owners in the fitness industry. Back in 2016, over 60 million people had a gym or health club membership. This might seem like a large amount until you consider that there are over 30,009 fitness facilities are vying for that business. The majority of people that get involved in the gym business are typically former trainers that got fed up of working for others. That being said, opening a gym is not as easy as it seems. The aim of this article is to come up with 12 dos and don’ts for a successful gym business.
Don’t overlook your uniqueness
A good workout can be had just about anywhere, and customers know this. Considering just how much competition there is in the gym business, they are more likely to search for a place that has a cheaper monthly subscription or on that is closer to the office or home. Successful gyms are so because they are able to corner a particular niche market, offering an experience that is specialized. You can decide to cater specifically to athletes offering some of the best facilities to be had outside sport teams. This brings your specified crowd, but it also enables those individuals that are looking to get serious with their training to your gym as it is where the professionals go.
Do not accept an investment offer from your customers without thinking
Numerous personal trainers tend to accept investment seed from their well to do clients when beginning their own gym. This is something you should carefully consider as business partnerships between clients and trainers can become toxic. Typically, the investors are venture capitalists or attorneys that understand the ins and outs of business, however, the fitness industry is another kettle of fish. You should also know that accepting the investment offer can mean that you lose ownership of your business.
Do not forget to conduct a competitive analysis
One of the keys to having a successful gym is to place it in the right location. Most times potential gym owners simply pick an area in Biloxi that happens to be sought after without any competitive analysis being done. This is down to the fact that most people enter in with the mindset that they are more knowledgeable than others. There is a lot more to owning a gym that simply having a fitness background. Before picking a location for your prospective gym there are some questions you have to answer:
How large is the fitness or gym market in Biloxi?
What is your competition?
What type of business model do they use?
What are the services they offer?
What is their pricing structure?
What are the results of your SWOT analysis?
Don’t go big too soon
When you open a gym with more space and equipment than you require, it can be a huge drain on your finances. Since you are just starting out, there is nothing wrong with opening a smaller gym which requires a small number of customers to become profitable. There is nothing wrong with starting small and growing later.
Do not give in to fitness groupthink
Since you want to open a gym in Biloxi, you might believe you only have to consider your industry when searching for insights. The majority of gym owners only know others in the gym industry. When you are searching for inspiration, do not discount the value that entrepreneurs of other industries bring.
Do not undervalue the need for an accountant
Small business owners usually have some skills necessary to run a business, however, one thing they lack is rudimentary accounting skills. Intelligent gym owners understand that having a good accountant can help to increase their cash flow while ensuring the gym doors remain open. For instance, an accountant is knowledgeable enough to depreciate an equipment’s value to ensure that you save money on your taxes.
Do have a business plan
Having a business plan before creating your own gym is integral to succeeding. It is the foundation on which your business is built, and it essential that it is as detailed as possible to provide you with what you need to make the right decision. Your business plan has to contain the following: ensure your business plan includes research on your field, how you can be an expert in your field, if there is a particular niche in your proposed site, how much you can charge, the equipment you would need and the cost of said equipment. You also have to discover what you will need to be successful
Do save some money
Most people underestimate just how much money you need to start a gym. Apart from the fact that gym equipment is quite expensive, there are some other unforeseen charges that come up. When you create a budget in your business plan for expenses, whether monthly or general start-up costs, you should add at least an extra $500. This helps as you never can anticipate the expenses that might pop up. It is also imperative that you have savings that can cover at least 2 months of operating costs. This helps to give you some breathing space during the first couple months of operation.
Do understand you will have to do more than just coach people
Most people believe that as a gym owner, you simply spend all day coaching clients to their fitness goals, however, this is but a small part. You actually have to wear numerous hats: administrative work, marketing, advertising, bookkeeping, custodial and maintenance and many other hats. You will have to give your time to your business Most people never truly appreciate the amount of time required to operate a business until they are actually doing so. These hours are not like a typical office job where you have a clearly defined work period. There are times when you will have to work when others do not. You will have to open and close the gym.
Networking is an essential skill that all business owners must have. For you to be successful, you have to reach out to people that have undergone the same experience you are going through. You can find out more information, gain guidance and advice which can help you avoid making the same mistakes they made.
Do be passionate It is imperative that you only open a gym if it is your passion. Your passion will drive you on the days when you feel the challenges are just piling up. Your passion is what helps you wake up early to open the gym and coach clients when you don’t really feel like doing anything.