Last Updated on December 1, 2021 by Peter Townsend
Many people have the desire to start their own gym, but how much does it cost?
According to Entrepreneur.com, the average costs of starting a gym are as follows:
- $20,000 (gyms that don’t serve members).
- $75,000 (gyms that service members).
- $120,000 (luxury/premium gyms).
These averages include rent and equipment costs. Of course, these numbers vary depending on location and demand for health clubs in your area.
How much funding you think you will need depends greatly on what type of club you want to open: membership only or membership plus services like personal training and health coaching. If you plan on adding services like those, you may also want to include licensing fees, insurance costs, and additional programming costs.
If you’re just looking to open a club that is conducive to working out with minimal equipment, plan on about $1,500 in startup costs. To open the average gym it will cost between $30,000 and $115,000. If you are looking to launch a top-of-the-line health club it could run upwards of $350,000 or more.
Opening your own personal training studio can be done with minimal startup costs as low as $3,500 if utilities are included with the lease agreement. These totals do not include equipment charges which range from around $10 per month for light dumbbells at most gyms to more than $300 for a heavy bag.
Before opening your gym, make sure you are familiar with the market demand in your area and set aside enough money to stay afloat until you get off the ground.
Facility Costsm for a gym
A gym is usually designed basically the same way. It has space for all equipment; free weights, cardio, or both; machines; and some type of weight lifting platform. A locker room with showers is also necessary to offer memberships for longer than one day.
Despite the fact that most gyms are built similarly, there are some significant differences in costs associated with building a gym.
For instance, an exercise studio may cost $7 per square foot while a standard gym will cost $10 per square foot on average. According to some estimates, it can cost anywhere from $62-$90 per square foot to build a health club depending on whether or not it includes club-wide amenities like childcare centers and restaurants.
The cost of licensing, insuring, and building can all have significant impacts on the final price of a gym. These costs are not the only factors to consider when constructing a new facility. Some owners also spend money on marketing before opening their doors.
If you want to be sure that your gym is operating at its maximum potential, it might be wise to invest in advertising campaigns or discounts for early registrations. Once these details are sorted out, you need to consider how much equipment will cost you.
Gym Equipment: $50-$80 per pound. For a 100-pound dumbbell, you’re going to pay $500 for it and that doesn’t include shipping or handling.
Bodyweight: You can buy bodyweight charts inexpensively on the internet and print them out at home. Yet, even hand-drawn copies of these charts will be more expensive than photocopies from an office store.
If you want something more customized, expect to spend around $100 for someone to draw up your designs, and then you can simply print them yourself. Paper: Paper costs next to nothing so don’t worry about it too much unless you plan on printing a lot of information sheets or posters.
Signs & Signage: You can buy a pre-made street sign for $10 or you can get them made professionally at a print shop for around $25.
Furniture: You’ll need to buy some basic furniture like commercial-grade benches, racks, and other items if you don’t already have them. The amount of money you’ll spend really depends on the type of facility you’re opening; but if it’s not too extravagant, you might be able to get away with spending as little as $5,000.
Boards & Contracts: If this is your first time renting space (for instance, renting an office inside another building), then keep in mind that there will likely be other costs involved like security deposit fees ($500-$1,500), rent deposits ($1,000-$5,000), and then your monthly rent payments.
Insurance: Gym insurance can be quite expensive, costing anywhere from $2,500 to $10,000 annually.
Staffing: You’ll need at least one person to staff the gym; but if you’re not comfortable working with people or are short on time, you might want to consider hiring a personal trainer or fitness instructor. Expect to pay around $25 per hour for their services.
Total Cost: If you’re starting from scratch and have no existing equipment or furniture, then you can expect to spend at least $15,000 in order to open a gym. This number will increase if you want to include additional features like a locker room, childcare facility, etc.
Licenses and Permits
The cost of licenses and permits necessary to open a gym will vary depending on your location. For example, in New York City, you would need a license from the Department of Consumer Affairs, while in California you would need a license from the Department of Health. The cost for these licenses can range from $100 to $200. You may also need permits from your local zoning board or fire department, which can also cost anywhere from $100 to $200.
Lease or Purchase Space
If you do not have any existing space that you can use for your gym, you will need to lease or purchase space. Leasing space can be expensive, with rates ranging from $50 to $100 per square foot per year.
Legal Fees and Business Insurance
The first cost you’ll incur is legal fees. This will vary depending on your location, the size of your gym, and the type of business structure you choose. You’ll also need to purchase business insurance, which will protect you in the event of a lawsuit or other liability issue. The cost of business insurance varies depending on the size and location of your gym, but it typically costs around $1,000 per year.
Rental or Lease Agreement
If you don’t own the building where your gym will be located, you’ll need to sign a lease or rental agreement. The terms of this agreement will vary depending on the landlord, but typically you’ll pay between $2,000 and $10,000 per month.
Before you can open your gym, you’ll need to make some renovations to the building itself. These may include: replacing old flooring and mats; painting walls; installing new light fixtures, and making any other cosmetic changes necessary to transform the space into a fitness center. This process will be time-consuming and expensive, costing between $60,000 and $150,000 in most cases.