The demand for fitness products and fitness facilities is gradually increasing with the increased awareness about the importance of health and fitness. Social media has a huge influence on people’s minds and hence fitness influencers to a certain extent, are helping the fitness industry get back on track.
Setting up a gym might seem like a long process involving multiple decisions to make financially and practically. But if you know each step thoroughly, your gym setup can be a successful venture.
However, being driven and focused throughout the process is the key towards having a successful business.
This guide has all the necessary steps you can follow with the essential details.
1. Decide whether You Want to Run a Franchise or Want to have Your Own Brand
Buying a franchise of an existing gym brand may be an easier option to a certain extent as they already have a reputation and image in the fitness industry, and you can save your time on aspects like branding and gym interiors as each brand has its gym interior design theme and color combination set to be followed in every franchise.
On the other hand, starting your own brand may rather be a longer and difficult process but can result in a rewarding venture if done right by paying attention to each step and every detail. Every business does take some time to take off but once this happens you can always aim to grow bigger and bigger.
2. Market Research to Understand Scope and Competition
The very first step for market research is selecting the right location for your gym. SWOT analysis (strength, weakness, opportunities and threats) goes hand in hand while selecting the location of the gym as a part of the market research. This step helps us understand and evaluate the scope of growth of your fitness facility.
List out your strengths and differentiators which can help you vouch for your fitness facility over others. These strengths should be attractive and beneficial for the gym members, which you can showcase in your pre-sales and launch campaign.
Similarly, be your own critique! As a gym owner you know your weakness more than anyone else, hence it is better to accept those weaknesses and work towards changing them into a workable action plan.
3. Setup a Budget
Gym owners often tend to go overboard with gym interiors and hence fall short of funds for other essential aspects such as pre-sales, recruitment, uniforms etc.
Therefore, finalizing a budget is of utmost important from the very beginning. Gym owners need to ensure that this budget is inclusive of all expenses, big and small; without exceeding the limit.
4. Be Well-Versed with The Bank Loan Processes
Business owners often turn to banks for capital resources as it’s one of the most important factors for running a business. Your business credentials need to be very substantial to get a loan from the bank or you can mortgage your property against the loan.
A number of documents need to be submitted to the bank such as:
- CMA data (or the financial report used by lending institutions to analyse the financial position of a company before lending).
- Return on Investment working (showing the investments involved and returns that are expected).
- All vendor invoices need to be signed and stamped.
There are special loan provisions and different schemes for women entrepreneurs in our country which can be beneficial for businesses.
5. Decide and Design: Name of The Brand & Logo
Branding is extremely important if you’re setting up your own gym. Having an interesting name and a well designed logo can definitely make an impression on the customers. A logo doesn’t sell (directly) but it identifies!
When you hear Gold’s Gym, instantly a yellow and black combination appears in your mind, that’s the impact a logo and branding can create.
Hence it’s extremely important to work well with your brand name and logo which you can include as a part of your interior decor too.
Having a trademark is optional but you can have your brand name and logo registered separately under Class-41 for trademark. Once the registration gets approved you can add the ® to your brand.
6. Make Sure all the Documentation and Legalities are Done Right
There are a couple of documentations that need to be done legally for a commercial space and business, some of those are:
- Leave and license agreement
- GST Certificate
- Udyog Aadhaar (essential for all the micro and medium sized businesses as you gain subsidies which will help your business flourish, in both central government or state government).
- Shop Act License (in Maharashtra) but if you are registered on Udyog Aadhaar, you would not require to have this license.
- Company PAN card, etc.
7. Prepare a Detailed Timeline
Any gym setup involves a lengthy process, having a detailed timeline can always help you keep a check on things to be done, things that are done and the target date you can aim for. This can in turn help you prepare for all your pre sales planning and for the launch. Having a preset timeline can also make your team disciplined and focused avoiding the vague and laid back approach.
8. Discuss and Negotiate with Landlord
While finalizing a commercial space for your gym setup there are a few aspects which need to be discussed and considered in the rent agreement and with the landlord in advance so that you avoid facing difficulties in future, such as:
- Availability and amount of parking space.
- Amount of deposit (you can negotiate with the landlord for the same)
- Rent escalation clause (usually it is 5% after a year or 15% directly after 3 years).
- Diesel Generator rate to be paid (if there is a common DG for the building).
- Maintenance charges.
- Rent-free period (usually around 2-3 months which is provided by the landlord for commencing the interior work, you can negotiate with the landlord for the duration accordingly).
- Leave and license agreement (usually for 5 years, but as a gym owner, you would be investing into the business in multiple aspects, you can negotiate to extend this agreement for around 10-15years in case of a gym setup).
- Lock-in period (generally of 3 years) can be beneficial for both the tenant and the landlord; if the tenant decides to wrap up the business before the lockin period ends then the landlord can forfeit the deposit amount. Similarly the landlord cannot replace the existing tenant with a new tenant or terminate his tenancy before the lockin period ends.
- Make sure the Force Majeure clause is included in the agreement which can exempt you from paying the rent in times of crisis or calamities caused beyond human control or by act of God.
Ensure that the civil work in the scope of the landlord and the timeline of completion is covered and executed as decided because this delay may in turn delay your gym interior work and other timeline to be followed, for the opening of your gym.
9. Select The Right Equipment for Your Gym Setup
Once the legal documentation and the formalities related to the landlord are done, you can now start focusing straight on your actual gym setup which certainly needs you to decide whether you want to open a gym with multiple workout facilities or narrow it down to a specific fitness training gym.
A gym with multiple workout facilities can have strength training machines, cardio machines, functional training rigs, accessories etc. Ensure to have a list of gym equipment you want, so that you can procure your equipment from the right brand.
10. Make a List of Activities and Dependencies
Since we have a timeline made in the earlier step, it’s now time to assign work and activities to the respective team members to identify the dependencies. This can help fasten the process and each one can track the activities in detail.
11. Set-up a Meeting with an Interior Designer
The interior design of a gym is one of the most important aspects of a gym setup which involves multiple steps in itself. But once you have a vision and design set in mind, you can work a way out around your budget with the interior designer. Ensure to have a site supervisor assigned during your execution either from the designer’s side or from the execution team so that designing, material supply and execution is well coordinated, supervised and executed. Make a detailed document of all the agencies and suppliers/vendors involved. For example: HVAC consultant, Modular furniture agency and so on; on the other hand light fitting supplier, wall tiles vendor, sanitary fittings supplier etc.
Having these teams assigned and known to both the execution team and the design team can help speed up the interior design execution process.
12. Plan and Execute Pre-Sales Strategy
Often people tend to pay less attention towards pre-sales strategy and concentrate more on the launch. Whereas, a successful launch is actually a result of a well planned pre-sales.
Reception desk should be the first area to be ready and open to entertain inquiries. This reception area can include a screen which has a walk-through video played on loop for walk-in visitors to understand and know your fitness facility. A few equipment can be kept on display so that people know what they will be using once the gym opens. Pre-launch offers for membership can be very beneficial to gain multiple enrollments and spread the news of a new gym opening through the word of mouth. Also, planning a strategy to offer a discounted membership rate for the first 100 members can be beneficial.
Moreover, this can be the right time to get active on social media platforms and run campaigns.
People often buy the necessary forms, notepads etc. from a local stationary, but you can customize these stationery items with your gym’s logo and letterhead to add a more gym specific touch to all these items.
13. Get Going with Recruitment
A gym with well qualified and well trained trainers can help gain the trust of gym members and the number of members can increase. The criteria for selection can be: certification, number of years of experience, qualification, personality of the trainer, communication skills, etc. You can also prepare a written test for them to appear for.
Apart from trainers, you would require to hire a manager, receptionist, sales executive, nutritionist, maintenance team etc. The entire staff needs to be trained and oriented towards the vision that you have for the gym. Fitness industry is a service industry and it relies on quality where customer service and satisfaction matters a lot.
14. Design Role-Specific Uniforms
Having the same uniform for all the people working in your facility can get confusing for members or visitors to understand whom to approach for help or assistance. Hence making sure your employees have separate role-specific uniforms and their designation mentioned on their uniform is very important.
15. Develop Systems and Processes to Operate the Gym
Every facility needs a particular process which needs to be followed for smooth operation. Procedure for a walk-in visitor, nutrition consultation and exercise card for each member, and so on need to be planned well, explained to all respective employees and followed well.
16. Finalize a Gym Software for Managing The Gym Systematically and Professionally
System controlled management through a software can be very easy at the same time professional too for a gym setup. Access control data can be linked to this software to keep a track on each member’s attendance, timing slot availability and much more.
17. Prepare for Launch
Pre-sales can help you work your way towards the launch. You can send messages to enrolled members reminding them about the launch date and inviting them for the launch. Hoardings and social media announcements can attract attention from people to make them aware about the launch.
A well known celebrity or a politician or even a famous fitness enthusiast can be invited as the chief guest for the inauguration ceremony. Adding this to the social media announcement can grab people’s attention and help in gaining more enrollments during the launch day. Last but not the least, finalize the membership rate card for monthly, quarterly, 6 months and annual membership rates.
Feel free to reach out to our sales team for more information on how to setup your commercial gym.
