How to Open a Gym Business in 2024
Are you ready to get into the fitness industry? This guide will teach you all you need to know about opening a gym in 2024, from business planning to new membership methods and more.
With rising lifestyle health concerns due to dietary changes and a sedentary work culture, the people in the country are turning to fitness solutions as the only way to improve their overall well-being. The fitness industry is projected to hit $6.1 billion by 2024, and this is the perfect time to capitalise on this escalating trend by starting your own gym business. More than stashing your gym with the latest equipment alone is not going to give your customers an exceptional fitness experience, but focussing on a bit of planning and customised guidance and suggestions shall give you an idea of an ideal gym business. In this blog, we shall try to cover the step-by-step guide on how to open a gym in 2024.
You may have a couple of questions on how to start a gym business in India like:
- What is the first step to setting up your gym business?
- What will be the overall gym opening cost in India?
- How will you be pricing the membership fee, and how much will you pay your trainers?
- How will you market your gym business plan in India?
- Which brand of gym equipment will be cost-friendly and also serve the purpose?
Launching your own gym business in the fitness industry can be both exciting and rewarding. The key objective is helping others achieve their health goals. However, thorough market research, a strong business plan, and securing the right location and equipment are the keys to success. A step-by-step plan can be handy in deciding your gym’s unique selling proposition. It covers a few elements that are essential to setting up gym requirements.
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Step |
Details |
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1. Finalise an Area/Locality |
- Choose a high-traffic location (near residential or commercial areas) for better profits. - Ensure accessibility and visibility for easy customer reach. |
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2. Have a Solid Business Plan |
- Essential for bank loans or investors. - Gym set up under Rs. 10 lakhs. - Plan the finances, including initial investments and future profits. |
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3. Obtain All Licences |
- Obtain permits for gym, tax, amenities (pool, spa, steam rooms). - Get insurance for liabilities and injuries. - GST registration for managing taxes. |
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5. Get the Right Equipment |
- Equip your gym with treadmills, stationary bikes, free weights, yoga mats etc. - Equipment costs range between ₹3,00,000 and ₹40,00,000. |
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6. Invest in Interiors |
- Create a welcoming environment with attractive designs, motivational posters, quality speakers, and matching equipment. |
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7. Offer Member-Friendly Incentives |
- Offer additional services like physiotherapy, fat loss, Pilates, Zumba, high-intensity cardio workouts, etc., to attract diverse clientele. |
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8. Promotion & Marketing |
- Use fitness campaigns, demo classes, annual packages, and discounts for promotions. - Offer special incentives like “Bring Your Buddy” discounts. |
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9. Opt for Franchise |
- Explore franchise options to minimise startup hassle. - Choose a well-established or mid-range brand to reduce risks. |
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10. Staff & Maintenance |
- Key staff include: 1. Receptionist 2. Cleaning Personnel 3. Sales Representative 4. Housekeeping 5. Special Trainers 6. Doctors (if offering physiotherapy) 7. Service Technicians. |
A few steps on gym requirements are given above. Beyond this are a few more points to be decided upon for starting your gym business.
Choose a Business Model
The business model you choose can gauge how well your gym can do in the area you have set up. Depending on what you are willing to settle on, your business models can be:
- Membership Model
- Pay as you go Model
- Dynamic Pricing Model
- Integrated Model.
Membership Model - Customers pay a fixed monthly fee for regular access to the gym, ensuring a stable revenue stream. This model works best in areas where there is a high demand for gym services, providing steady income for the business.
Benefits -
- Provides steady, predictable income.
- Ideal for areas with high demand.
Example -
Cost: Rs. 1,000/month
Break-even: 50 members for Rs. 50,000 expenses
Pay As You Go Model - This model is flexible and allows customers to pay per visit, thus making it appealing to new or irregular users who don’t want a long-term commitment.
Benefits -
- Attracts new or irregular customers
- No long-term commitment required
Example -
Customers can purchase 10 visits for Rs. 1,000, offering them the convenience to pay as they use the services.
Dynamic Pricing Model - In this model, packages are based on specific fitness goals, such as weight loss or bodybuilding. Pricing is tailored to individual needs, making it highly attractive in affluent areas where clients may be willing to pay more for personalised fitness solutions.
Benefits -
-Tailored pricing for customer needs
- High potential in upscale localities
Integrated Model - An integrated pricing strategy combines multiple models to cater to a broader range of customers; this ensures flexibility, steady revenue, and personalised services.
Benefits -
- Steady, predictable income from memberships
- Flexibility for irregular customers with pay-per-visit options
- Customised packages for specific fitness goals, appealing to higher-end clients
Example -
The gym can offer a Membership Model, where customers pay a monthly fee (Rs.1,000) for regular access. This provides predictable income and is ideal for areas with high demand, with break-even at 50 members covering Rs.50,000 in expenses.
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Apply Now.Gym investment cost in India
Soon after deciding on the gym’s location, the next step involves arranging the required funds. Gym investment costs in India may be anywhere around Rs.10 lakhs to 25 lakhs. You can arrange for a business loan, as paying such a huge amount from one’s savings is not always possible. You can research how much it costs to open a gym before applying for a business loan.
You can explore the following finance options that have the financial breakdown and tips for budget management:
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Category |
Details |
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Options for Financing |
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Personal Savings |
Utilise personal or family savings to reduce interest rates and debt obligations. |
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Bank Loans |
Approach banks for small business loans with a solid business plan. Look for low-interest or government-backed loans like MSME, MUDRA, etc. |
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Investors |
Pitch to private investors or venture capitalists for initial funding in exchange for equity or profit-sharing. |
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Government Schemes for Startups |
Explore schemes like MSME loans, Startup India, or MUDRA Yojana for low-interest loans for small businesses in India. |
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Financial Breakdown |
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Equipment Costs |
Allocate 30-40% of the budget for equipment. To reduce upfront investment, consider leasing options for costly machines. |
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Rent/Lease |
Real estate consumes 15-25% of the budget. Choose a well-located but cost-effective space with high footfall potential. |
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Staffing |
Include salary costs for trainers, front desk staff, and cleaners. To maintain service quality, offer competitive pay for certified trainers. |
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Insurance |
Set aside funds for business and liability insurance to cover accidents and damage to equipment or property. |
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Marketing |
Allocate 5-10% of the budget for digital marketing, social media campaigns, and launch events to build brand awareness. |
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Tips for Budget Management |
1. Set aside 10-15% of the budget for unexpected expenses. 2. Use financial software to monitor cash flow. 3. Review finances quarterly to adjust the budget. |
Conclusion
India is set to make it big in the fitness industry, with more and more people prioritising their health over everything. The profitability of a gym depends largely on its location, quality equipment, skilled trainers, and a sound business model. A person with prior experience in the fitness industry or a beginner looking into the gym business can earn well in this rewarding venture. One can tap into the growing demand for fitness services and establish a profitable gym business today.
FAQs
Q1. What is the minimum area required for a gym?
Ans. Experts advise planning 36 square feet per member and 45-75 square feet per piece of equipment, so you will need at least 1,000 square feet to open a basic gym. Divide the space into different zones, for example, cardio equipment in one area, strength training in another, and the remaining rooms for specialised classes.
Q2. How much does gym equipment cost in India?
Ans. The cost of gym equipment in India depends on the quality and brand of products you choose. While modern gear can easily cost lakhs, old school or even second-hand pieces will be cheaper. Gym equipment, including cardio machines, costs around Rs. 2 to 3 lakhs in India.
Q3. What facilities are available at the gym?
Ans. A basic gym must have the following facilities:
- Yoga space.
- Charging station.
- Changing room.
- Complimentary toiletries.
- Accessibility for customers with disabilities.
- Group exercise.
- Locker space.
- Lounge area.
Q4. What is a gym plan?
Ans. This is usually a written record of your fitness routine. A plan like this includes the types of exercises you need to do and how long you need to do them. This plan helps you maintain a consistent routine, so you can achieve your fitness goals. It gives you an organised structure of how your exercise should go
Sapna aapka. Business Loan Humara.
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