Health Club Business Plan

Health Club Business Plan

Fitness Club Business Plan – Start a Fitness Club or Fitness Club Franchise with Fitness Club In A Box

Start-Up Costs to Own Your Own Fitness Club or Own Your Own Health Club or Start Your Own Gym

In general, the kind of equipment is important; this is why we supply the top name brand equipment, such as Lifefitness, Startrac, Precor, Matrix, etc. Fitness Club In A Box is part of a Fitness Equipment consortium, which is the largest global distributor of new and used equipment with $15,000,000 in stock.

Fitness Club In A Box warrantees the product, we can remanufacture equipment to meet the more budget oriented, we can cater to clubs from 1200 to 10,000 square feet, we include all software and equipment from membership to accounting, we supply support and training, and even help with the launch and marketing of the company like a Franchise would but without the huge costs paid to a Franchise! We have over $15,000,000 in equipment ready to be entered into a shipping containter and shipped anywhere in the World. With warehouses in Canada and the US, our logistical team can ship fitness equipment by the container load to any global location!

This equipment is hand-picked by a gym designer and floor plan specialist. On average, here are a few examples of start-up costs for your gym’s commercial weight-lifting equipment, cardio equipment, etc.

START UP COSTS

PERTAINING TO A HEALTH CLUB 2,500 sq. ft.

  • First and last equipment payment  $6,000.00
  • First and last month landlord deposit $12,500.00
  • Printing $2,500.00
  • Legal (set up corporation) $1,500.00
  • Advertising $10,000.00
  • Signage $2,500.00
  • 20% of above figure for incidentals (software, name license, etc.) $7,000.00

TOTAL START UP COSTS $42,000.00

MONTHLY OVERHEAD

  • Rent 2,500 sq $6,000.00
  • Equipment lease $2,000.00
  • Manager/Trainer/Sales $2,500.00
  • Advertising (Canada post, internet) $1,500.00
  • Accounting and bookkeeping $400.00
  • Cleaners (7 days a week) $1,200.00
  • Business taxes/Licenses/Permits $$300.00
  • Printing and office supplies $100,00
  • Equipment maintenance $400.00
  • Lease charges (collections, charge backs) $500.00
  • Internet and cable $100.00
  • Insurance $400.00
  • Legal $200.00
  • Utilities $500.00
  • Miscellaneous $1,500.00
  • Preauthorized payment $2,000.00

MONTHLY OVERHEAD $20,000.00

MEMBERSHIP FEES

  • FIRST 250 MEMBERS $19.00 PER MONTH
  • COST AFTER FIRST 250 MEMBERS — $30 PER MONTH
  • With 100 members  — dues $19,000.00 – trainers $2,400.00 – total $21,400.00 per month.
  • With 200 members – dues $38, 000.00 – trainers $2,400.00 – total $40,400.00 per month.
  • With 300 members – dues $62,500.00 – trainers $4,000.00 – total $66,500.00 per month.

AN EFFECTIVE PRE-SALE AND GRAND OPENING FOLLOWED BY AGGRESSIVE MARKETING SHOULD RESULT IN 300 – 400 MEMBERS WITHIN THE FIRST YEAR.

(All figures are estimates, for a custom fitness club business plan, lay-out, floor plan, and fitness club in a box solution, contact Brandon@fitnessclubinabox.com.)

GYMS IN A SMALL TOWN CAN BE A GUARANTEE

A health club in a smaller town (4000 people) can be successful and less pressure for a number of reasons: less square footage necessary; lower rents; cheaper lease; less competition; less money spent on marketing.  All of these factors result in a ‘reduced break even point’.

HEALTH CLUB NAME

FIT ON SALE and Fitness Club In A Box owner Mike Hamill operates a spacious fitness club in Tsawwassen, BC.  The gym is called the TSAWWASSEN ATHLETIC CLUB.   A name followed by “Athletic Club” can’t be patented.  We suggest you name your health location the  “An Athletic Club” if you are not building your own Franchise model. We can design the graphics, marketing material, and membership program for your Fitness-Club-In-A-Box.

EQUIPMENT LIST

For a health of containing 5,000 square feet of training space, this is an example of necessary fitness equipment.

  • Dumbbells with rack (rubber/chrome) 2.5 to 80 lbs.
  • 2 sets 2.5 to 40 lbs, 1 set 45 to 80.
  • Barbells and rack (includes easy curl bar) 15, 20, 25, 30, 35, 40, 45, 50, 55, 60, 65, 70, 75, 80, 85, 90, 95, 100.
  • Leg extension
  • Leg press
  • Leg curl
  • Vertical press
  • Glute machine
  • Incline press
  • Calf machine
  • Pectoral fly
  • Deltoid fly
  • Lat pull down
  • Vertical row
  • Shoulder press
  • Bicep curl
  • Tricep extension
  • Dip machine
  • Dual adjustable pulley
  • Adjustable abdominal decline bench
  • Flat bench
  • 45” back extention
  • Multi adjustable bench
  • Pull up/dip/leg raise
  • Triceps seat
  • Treadmills (6)
  • Ellipticals (6)
  • Upright cycle (4)
  • Recumbent cycles (4)
  • Steppers (2)
  • Rower (1)
  • Assorted resistance bands
  • Bosu balls (4)
  • Prostretch
  • Assorted balance boards
  • Matting, ropes, medicine balls
  • Exercise balls and rack
  • Vinyl mats (6)
  • Roam rollers (3)
  • Scale

For a health of containing 2,500 square feet of training space, this is an example of necessary fitness equipment.

  • Dumbbells with rack (rubber/chrome) 2.5 to 80 lbs.
  • 2 sets 2.5 to 40 lbs, 1 set 45 to 80.
  • Barbells and rack (includes easy curl bar) 15, 20, 25, 30, 35, 40, 45, 50, 55, 60, 65, 70, 75, 80, 85, 90, 95, 100.
  • Leg extension
  • Leg press
  • Leg curl
  • Vertical press
  • Incline press
  • Calf machine
  • Pectoral fly
  • Deltoid fly
  • Lat pull down
  • Vertical row
  • Shoulder press
  • Bicep curl
  • Tricep extension
  • Dip machine
  • Dual adjustable pulley
  • Adjustable abdominal decline bench
  • Flat bench
  • 45” back extention
  • Multi adjustable bench
  • Treadmills (3)
  • Ellipticals (3)
  • Upright cycle (2)
  • Recumbent cycles (2)
  • Steppers (1)
  • Assorted resistance bands
  • Bosu balls (2)
  • Prostretch
  • Assorted balance boards
  • Matting, ropes, medicine balls
  • Exercise balls and rack
  • Vinyl mats (3)
  • Roam rollers (1)
  • Scale

For a health of containing 1,200 square feet of training space, this is an example of necessary fitness equipment.

  • Dumbbells with rack (rubber/chrome) 2.5 to 50 lbs.
  • Barbells and rack (includes easy curl bar) 15, 20, 25, 30, 35, 40, 45, 50, 55, 60, 65, 70, 75, 80, 85, 90, 95, 100.
  • Leg extension
  • Leg press
  • Leg curl
  • Calf machine
  • Pectoral fly
  • Lat pull down
  • Shoulder press
  • Bicep curl
  • Tricep extension
  • Dual adjustable pulley
  • Flat bench
  • Multi adjustable bench
  • Treadmills (2)
  • Ellipticals (2)
  • Upright cycle (1)
  • Assorted resistance bands
  • Bosu balls (2)
  • Prostretch
  • Assorted balance boards
  • Matting, ropes, medicine balls
  • Exercise balls and rack
  • Vinyl mats (2)
  • Scale

FLOOR PLAN

The entire gym will be visible from the front entrance.  Your health club will have a secure office and male and female washroom.  Many successful gyms nowadays don’t supply showers – members arrive for a fast efficient workout and leave.  Showers are optional.

LEASING

FITNESS CLUB IN A BOX has had twenty years partnering with professional leasing companies.  Leasing is a major component of our infrastructure.

REASONS TO PROMOTE LEASE FINANCING:

STUDIES have shown that STRATEGIC LEASE FINANCING can increase sales in excess of 30%;

WIN deals over your competition with lease financing, as your competitors may not be using that marketing tool;

ALLOWS you to include building and equipment rent, freight, installation, delivery and miscellaneous charges into one flexible monthly lease payment.

REDUCE STRESS as you will no longer be focused on various capital cost but a monthly fixed lease payment;

RATES currently are at an unprecedented low and are fixed throughout the term of the lease;

BANKS have currently tightened up their lending capabilities.  Leasing maintains a 95% approval ratio and is always looking at ways to approve transactions with a flexible approval that meets client’s needs.

Fitness Club Payment Processing Services

FITNESS Club In A Box’s infrastructure provides the technology and expertise to handle your payment processing services.  We’ll work with your business to ensure you have a payment solution that works.   Handling membership payments can be a full-time job.  It’s frustrating, time consuming and costly to follow-up on returned payments and keeping account information current.  We have a well-defined, systematic process to recover missed payments.  A proper payment solution makes your employees more productive by freeing up their time to focus on your business’s largest asset: your members.

KEY CARDS

All members must CODE IN at the front desk upon arrival.  Each member will be supplied with a club card when purchasing their membership.  These cards are necessary to track member’s payment schedule.

A SUCCESSFUL HEALTH CLUB HAS:

LOCATION – a gym located on a busy street is preferred.  The ideal location is situated between residential and commercial so that potential customers will drive by your gym often – an obvious SIGN is necessary, a front glass window is wonderful advertising.

QUALITY FITNESS EQUIPMENT – a list of necessary equipment is stated later in this package.  We can supply you with new equipment but FITNESS CLUB IN A BOX has been in the used equipment business for years — we can supply your gym with quality refurbished fitness equipment for a fraction of the cost of new equipment.

CLEAN, CLEAN, CLEAN – no explanation here.  Your health club must be kept spotless for the public to take you serious.  Each employee should have an area they are responsible for regarding the club’s cleanliness.

EFFECTIVE PRE-SALE – this is mandatory as an effective pre-sale can result in many members paying monthly dues.  With post pre-sale energy from word-of-mouth communication plus continued advertising, your membership base will increase daily.

GRAND OPENING – at this official opening you will sell many more memberships.  An effective PRE-SALE and GRAND OPENING could result in 400 members.

EFFECTIVE MARKETING – owners and managers must get external and communicate with their community.   Major industries and big employers in your area must be identified and approached with “corporate wellness plans” that offer group packages for their employees.   Sports teams in your area should be encouraged to train at your gym.   With this aggressive attitude your MEMBERSHIP MUST INCREASE  MONTHLY resulting in increased cash flow.

Health clubs bring in additional monthly revenue from: personal trainers who would pay ($800–$1200) your gym monthly to train your clients; clothing sales; vending machines (offering items like water and juices); a health bar offering protein shakes, health sandwiches and snacks; tanning salons.

VALUE ADDED SERVICE

Increasing the service added is the most effective method of differentiating your club from your competitors.  Your staff must be dedicated to customer service and satisfaction.  Your personal trainers must be of the utmost of professionalism.  Aside from being able to train from the novice to the elite athlete, your trainers must also offer: fitness assessments; body composition analysis; nutritional guidance; flexibility information.  Each employee must be responsible for a section of your facility, keeping your location CLEAN, CLEAN, CLEAN.

WHY DO HEALTH CLUBS FAIL?

Health clubs and gyms fail when there is no support system in place.  Many health locations are victims of additional costs for services rendered.

We at FITNESS CLUB IN A BOX offers new health club owners the proper abilities and strategies necessary to survive in the fitness industry.  We are the largest on the planet for new and used equipment international sales through our network of over 500 resellers globally. (We probably have representatives in your City or Country.) Not only do we build your own gym or fitness club, we help you prepare for running the business like a Franchise without the huge fees that Franchises make you pay!

We will even design your pre-sale and grand-opening to suit to your environment (your city or town, your competition).   Novice gym owners underestimate the “business build-up stage” necessary to achieve the “breakeven stage”.  Once the breakeven stage has been achieved (usually one year after opening) successful business returns will follow.

Contact Brandon@FitnessClubInABox.com if you are interested in Starting A Gym or are looking to buy the Best Fitness Club Franchise.