Taking over a gym business is not as easy as it may seem. You’ll need more than fancy equipment and a prime location to get started. Ideally, you want a viable gym with a decent size existing member base. Opening or taking over a business is a process that requires hard work, vision, persistence, ingenuity, knowledge and flexibility for growth and success.

NEXO Fit understands the challenges that business owners encounter and offer the following considerations to make the process of taking over an existing gym facility much easier and more rewarding.

1. Research the Market and Opportunity

Regardless of your level of expertise in the fitness industry or your level of trust in a current gym owner, you should perform due diligence to mitigate all potential liabilities and risks. Gyms and fitness centers have special risk considerations in light of the COVID pandemic. Perform in-depth market research and carefully weigh the pros and cons before making offers or showing interest in any existing buyout opportunity.

Taking over an already established fitness facility means you have more time, energy, and resources to use on operational improvements for better sustainability. The last thing anyone should do when starting a business is to go into the process blindly. That’s a surefire recipe for unnecessary hardship, stress, and disaster. Review the business and tax structure and operational and financial matters and make the necessary adjustments to maximize the benefits and mitigate as many risks and issues as possible. Look for trends to help you identify areas for improvement and ways to add your brand.

2. Improve Financial Viability and Business Compliance

Lenders are more willing to extend financial resources to existing gyms than new startups because there is an existing track record of success, thus eliminating many of the financial blockades that often result in business failure within the first year. An effective gym takeover strategy requires a solid foundation that includes comprehensive insurance coverage and compliance with all licensing requirements.

An obvious benefit of becoming the owner of an existing gym or fitness center is the investment threshold is much lower than having a startup. Instead of having to shop around for a facility and location, negotiate lease terms and invest in a ton of new equipment, new owners get to work with what’s already available.

Before you go squandering critical business and financial resources on equipment, facility, and operational upgrades, make a strategy that includes a mission, brand, and pricing strategy. Make sure you have the necessary financial resources and a solid business foundation for compliance in place before you take over any existing gym business so you can tweak things as necessary.

3. Invest in Gym Business Insurance

There’s always the possibility of member, staff, and trainer accidents and injuries. Don’t forget to consider the risk of equipment and facility damage and theft. Dealing with the fallout of those events can become very expensive. Invest in a robust insurance plan that offers the right amount of liability, property damage, casualty, and workers’ compensation coverage to protect your business from potential issues that could lead to failure and bankruptcy.

4. Employ the Right Staff

Evaluate the short- and long-term viability of staff, fitness equipment, property structure and location, and operations. Thoroughly vet existing staff and trainers to ensure their work ethics and attitudes will enhance your gym’s mission and operations or not. Review employee records and credentials. Don’t be afraid to get rid of poor performing or toxic employees and fitness staff and hire individuals who are better suited and willing to support your gym business’ goals. Improve employee and gym staff morale and culture by implementing incentives, rewards, and safety protocols to keep everyone motivated and happily employed.

5. Improve Member Retention

The last thing you want to do is turn off an existing member base or create issues that make it hard to attract and retain new members. According to AXIOS, fitness and gym memberships are down by over 50 percent, primarily because more people are aware of the advantages and flexibility of working out online and taking a more holistic approach to health. Your gym business must highlight the benefits of membership to overcome these challenges. Create a healthy and friendly culture that attracts your target audience’s attention and shows them everything they’ll miss by working out at home or a competitor’s fitness center.

6. Personalize Your Fitness Center

Regardless of the previous owner’s success, you’ll need to add your personal touch on every aspect to help establish it as your own. Think of your business goals and dreams and how you want to use them to help members achieve their fitness and overall health goals. Now is the time to think about if you want your gym to be a family center or focus on a specific niche. Survey existing members to learn their likes and dislikes and recommendations so you can use their input to promote your brand while providing the perfect gym for them to join.

Consider adding amenities that eliminate potential lifestyle barriers, such as childcare, wellness features, etc., and provide comprehensive recovery and relaxation opportunities that support member fitness goals. Upgrade to better and more comprehensive equipment and make modern renovations to improve overall member and staff safety, retention, and experience.

Contact NEXO Fit Today

NEXO Fit offers a variety of NEXO insurance products to provide fitness and gym owners with the comprehensive protection they need to cater to their members’ health and well-being. Call (310) 361-4225 to discuss custom gym business coverage and service options today.