How much does it cost to open a gym?

Deciding to open your own gym is an exciting moment in any fitness professional’s life. But a huge part of making this decision is working out your budget for your new business venture, so how much does it cost to open a gym?

Of course, the answer to this question depends largely on factors such as what kind of gym you’ll run, what equipment you need, and whether you’ll start your own gym or open a new gym for a franchise.

There are many factors to consider, so we’ve put together a list of one-time and ongoing costs related to opening a gym so you can make sure you haven’t missed anything!

 

Decide what kind of gym you’ll run

You can choose from many different types of gyms when you’re trying to decide what kind of gym you’ll run. There’s also nothing to stop you from diversifying further down the line once you’re fully established and investing in new equipment or hiring specialist fitness professionals.

Whatever you decide, thoroughly research the costs of the different types of equipment and exactly what equipment you’ll need before you start buying. You should also consider whether you want to set yourself up as a budget-friendly or more boutique gym.

If you aren’t sure where to start, read our step-by-step guide on how to open a gym. However, if you want more support in setting up your gym, you could look at the possibility of  opening one for a well-established franchise like Hitsona, instead of launching independently.

Becoming part of a franchise usually involves an investment from you, the amount of which is dependent on the brand you choose to work with (personal input starts at £25,000 with Hitsona, for example). Though it can be costly, this route usually comes with further support and training for setting up your own gym.

 

What costs are involved in opening a gym?

 

As we’ve already mentioned, the cost of opening a gym can vary greatly due to a number of factors. However, Xplor Gym estimates that it could cost between £75,000 and £120,000 in upfront costs to open a gym.

Below, we’ll review a list of the costs involved so you can calculate the budget you’ll need to open your gym.

 

One-off costs

Your one-off costs are anything that you only need to pay once, so anything that you can buy outright or that won’t require regular payments. These include:

 

Deposit for your space

Whether you’re buying or renting the property for your gym, you’ll likely need to be able to afford a sizeable deposit. Of course, if you’re in a position to be able to buy the space outright, you’ll have to include that in your one-off costs, too.

When you’re on the hunt for the perfect space for your gym, you must choose the location very carefully. If you already have a network of clients, keep in mind that you’ll want the gym to be easily accessible to as many clients as possible, both new and old.

 

Buying gym equipment

You may also be planning on buying the gym equipment you need upfront. Plan out what you think you’ll need ahead of time so you don’t buy anything that your clients may not be interested in using.

According to Startups, you should have enough machines for 15% of your members to use at any one time. To keep costs low, you can start with less equipment and scale up as needed.

You can also buy second-hand or refurbished gym equipment to get you started, and you can always upgrade to newer or more sophisticated machines as you grow.

 

Décor

It might not be first on your list, but making your gym aesthetically pleasing gives a more professional impression to your clients. Look around online to see what you’d be interested in having, whether it’s decals for the walls or a fresh coat of paint.

Even better, if you can carry out some of the renovation work yourself or with the help of friends, you’ll save more money, which you can then spend on other areas of the business.

 

Registering your business

By law, you must register your business with Companies House within three months of trading. This comes with a one-time fee, and you can find the full details of Companies House fees on gov.co.uk.

 

 

Ongoing costs

Your ongoing costs are those that will require repeat payments. With ongoing payments, ensure you plan your budget with a decent amount of wiggle room in case these costs change over time. Ongoing costs include:

 

Rent and bills

If you choose to rent a space, you have the opportunity to get a smaller space on a shorter rental contract, so you can move to a bigger space on short notice if you scale quickly. 

Bills, such as electricity and water, are also an ongoing cost to budget for before you open your own gym. These will fluctuate, of course, so ensure you put more than enough money aside each month to ensure these are paid.

 

Renting equipment

If you don’t want to buy your equipment, you can always rent the machines that you need instead. This works well if you aren’t sure what will be most popular with your clients or want to test out different equipment for a period before you buy.

A downside of renting the equipment is that if you rent it for long enough, it will cost you more than if you’d just bought it in the first place! So, crunch the numbers on this one to see what works best for you, your gym, and your bank account.

 

Marketing

Remember to include marketing costs in your budget! Effective marketing will help you grow your network of clients and advertise for new staff. 

You can try the free route by relying on social media and word of mouth, but if you want to plan a full marketing campaign, there are some brilliant marketing tools you can invest in to help you do so. You can use apps like Canva to help you create posts and schedule them to send with apps like Hootsuite.

There are a lot of tools out there, and many will offer a free version of the software or a free trial, so it’s up to you how much money you choose to invest in it. You might even want to hire a marketing professional to help market your business as you scale up.

 

Wages

You’ve probably already thought about this, but wages will be another ongoing cost to factor into your budget. As your business grows, ensure you keep on top of your finances so that you can afford to hire more staff when you need them.

 

Licences

As a business, you’ll need to look into any licences you’ll need to purchase before opening. For example, if you want to play live TV or copyright-protected music, you’ll need a TV Licence and a music licence to do so.

Always do your own research into the licences you’ll need, as they won’t be the same for every business.

 

Software

If you're looking for a way to manage your bookings, memberships, and finances, you might want to  consider getting gym management software like PushPress or Gymflow. There are many options out there, so search for the best software for you.

It'll certainly be worthwhile to have some form of Customer Relationship Management (CRM) software as you scale to keep track of your clients' details and payments.

 

Insurance

Opening and running your own gym is a big investment, so you may want to consider getting insurance to protect yourself, your clients, and your gym. Insurance can provide financial protection and peace of mind should the worst happen.

 

 

Specialist gym insurance through Ripe

If you want peace of mind when running your gym or leisure business, you may want to consider having specialist insurance in place to protect yourself, your business, your customers, and staff.

Through Ripe, you have many cover options to choose from, including Public and Products Liability to protect your business against third-party claims and Legal Costs cover for pursuing or defending a claim.

You can also opt for Buildings Cover to protect any buildings your business owns or leases.

Click here to learn more about sporting club, leisure and community insurance coming soon to Ripe.