6 Things to Know Before Opening a Gym

The fitness industry annual revenue in the U.S. is valued at $32 billion. The industry is also demonstrating great growth potential, considering it grew by 37% between 2008 and 2018. This trend is reassuring for gym owners, as well as anyone looking to start new gyms. However, it is not a guarantee that your new gym will be a success. Running a successful gym requires a smart strategy. It helps to know what to expect and how to handle the market. Here is an overview of 6 especially important things to know before opening a gym.

1. A Business Plan is Essential

Starting a gym requires a smart and comprehensive business plan if it is going to materialize and thrive. Start by conducting comprehensive research into the gym market. Forget what you know about training and look into the finer details of the business. Consider details such as upstart costs, local regulations, local competition, types of equipment needed, market size, and more. Your research must be thorough and accurate as it will inform your whole business plan, essentially determining its future.

Next, set a timeline and plan for your business's future by setting realistic goals. Finally, come up with a practical plan for how you will achieve these goals – and stick to it!

2. Have a Concrete Financial Plan

Every new business requires some time to set up, establish itself, and attract a reliable customer base. To this end, many startups don't turn a profit for a month or two. Hopefully, it shouldn't take long for your new gym to start turning a profit, considering the industry's incredible growth.

However, it is still prudent to plan for revenue shortcomings for the first few months. To this end, it is advisable to set aside enough money to cushion you from these financial shortcomings and any other unforeseen losses. Ideally, you should have enough money to cover all operating costs for at least two months after opening.

You will also need enough capital to buy the necessary equipment to set up your new gym. Gym training equipment will be your business's greatest asset, so don't skimp on quantity or quality. Gym equipment can be quite expensive, but you can always seek financial options. NEXO Fitness Solutions offers equipment financing solutions that include leasing gym equipment and soliciting financial help from leading financial institutions.

3. Think About Insurance Coverage

Your gym must have insurance to cushion you, your employees, and members in case of an accident. There are various categories of insurance:

Liability insurance.

It is mandatory for every fitness facility to have liability insurance. There are two types of liability insurance:

• General liability insurance: This coverage option protects you from bodily injury suits and property suits filed by vendors or clients. It also protects you in case a member is injured on your premises.
• Professional liability insurance: This insurance covers suits that result from wrongful acts resulting from professional advice. The wrongful acts covered include neglect, breach of duty, omission, or misleading statements. For instance, this can arise when your employee is accused of giving poor instruction during a workout.

Equipment protection

Equipment protection covers your equipment in case of damage. At NEXO, we provide a property insurance policy tailored for fitness facilities. This policy covers your flooring in case of water damage. It also covers your landlord's windows if they are broken by loose or malfunctioning equipment.

Employee practices Insurance.

Claims of wrongful termination, discrimination, and sexual harassment are common for gyms and fitness facilities. These claims are usually expensive and not covered by Liability Insurance. We help you prevent such occurrences by conducting background checks on employees and applicants at an affordable rate. However, some scenarios cannot be anticipated, which is why we offer Employment Practices Insurance.

Special Event Insurance.

Planning for a special event can be hectic. You shouldn't have to deal with delays that may be caused by delayed insurance certificates. NEXO guarantees same‑day certificate issuance, taking the stress off you and letting you focus on planning the event.

We have plenty of resources and personnel dedicated to ensuring that you find the right insurance coverage to protect you, your assets, employees, and clients. We also help you go over policies or quotes provided by other agents to help you in your decision making.

4. Success Hinges On Streamlined Operational Systems

One common mistake among many first-time gym owners is expecting things to work themselves out: clients come in, work out, pay, and leave. However, it is never that simple. Like any other business, your gym requires proper administration, staffing, and a comprehensive operations system.

Your business plan should address the gym's operational systems. Who will manage and run the business? How many trainers will you be hiring, and what should their compensation be? How will sales be processed? These and other questions regarding administration should be properly addressed by implementing comprehensive operational systems.

For effective administration, you can leverage NEXO Fitness Solutions for most of your administrative roles with its NEXOSync Solution. Some of the solutions offered include payroll, workers' compensation, 401k, employer taxes, health benefits, and more. Our accurate and fast payroll systems guarantee that your books (including tax remittances) will always be balanced and accurate.

5. Licensing and Certifications

Personal trainers, health coaches, group fitness instructors, medical exercise specialists, and nutritionists need to have the necessary certifications. Employees will need to undergo a couple of study sessions and tests before they are certified. For nutritionists, they have to have a valid Bachelor's degree from an accredited institution.

You'll need to do plenty of research regarding the legal requirements necessary to run a gym to avoid getting into trouble with the authorities. You first need to check zoning requirements so that you know where to open your gym. Some zones have designated areas where businesses can be set up.

In addition to your license or certification, you need a business license to operate a gym or fitness facility. You need to find out what licenses are required for your desired location. You will also need to research local or municipal level business zoning and building permits. You may need to get special licenses and permits if you would like to offer special services. Such special services include spas and massage, food and retail, and daycare.

6. Marketing Will Boost Your Revenue

It is estimated that there are more than 38,000 active gyms across the United States. There are also thousands of freelance trainers who operate online, in parks, along streets, and virtually everywhere. As such, expect stiff competition and come up with an efficient marketing plan to beat it.

Utilize every platform possible to market your new gym. Ideal marketing platforms include local online forums targeting fitness, local social media circles, local billboards, and other places where locals frequent. Most importantly, use your perfectly toned body to advertise the fact that you are a professional trainer. NEXO Fitness Solutions also offers marketing and advertising solutions. Our marketing solutions include PPC advertising, search engine optimization, content marketing, website design and development, and social media marketing, among others.

Final Thoughts

More people are conscious about their health and fitness, and they rely on gyms and trainers to exercise and keep fit and healthy. This is a growing trend that guarantees more demand and revenue for gyms, making this the opportune time to venture into the fitness industry.

These guidelines will cushion you from the common problems that plague new gyms and foster overall growth and success. You also stand better chances of success with NEXO Fitness Solutions by your side. Contact us today to learn more about what we can do for your new gym!