It makes sense to spend some money at the gym than spending it on bariatric surgery or for frequent doctor visits! Keeping this in mind, you will find majority of the households have at least 2 members that hit the gym at any time of the day to stay fit and fine.
Over the years, more and more people are signing up for gym membership. As such, if you have decided to take a plunge into this field and open your own gym or fitness center, chances are that you might get handsome returns within a short time span. But to start with, you have to do a thorough planning for the same, of which gathering your finances is of top most priority. In this article, let us find out more on how to finance this business that you are planning to start.
What are the various costs involved in opening a gym?
Generally, the cost will vary depending on the brand and the franchisee that you are planning to sign up with. The cost of opening a gym business will depend on a number of factors. Let us find out the different expenses you have to incur on-
- Franchisee fee
- Legalities involved
- Security deposit
- Working capital
Aside from the above, you will also have to take into account the monthly financial obligations that you have to take into account so that you have to steady flow of income to maintain these expenses. Although, it is an expensive business to start with, if you have the necessary infrastructure, you can surely go ahead and take the plunge.
Funding the project
There are companies operating in the market that offer loans to start-ups and small businesses. For instance, you can find out the various options offered by Cashfloat.co.uk. Although payday loans from direct lender is not a very feasible option for funding a small business like a gym, but you can always find out the types of loans they offer. The biggest challenge in payday loans is the repayment. Repaying payday loan is a big challenge as you cannot fall behind on your payments. Defaulting on the payment will mean that you get into a vicious debt cycle and in most of the cases it has been observed that in order to wriggle out of this debt, you slip into it further.
As per State of the UK Fitness Industry Report, the revenue generated from health clubs and gyms in the UK market amounts to £4.7 billion and the report also states that more than 300,000 people sign up for gym services annually.
Is the gym business right for you?
The gym business is undoubtedly right for you if you have the following-
- If you are a qualified personal trainer
- If you are ready to put in long hours of work.
- Financial management
- Possess marketing and sales skills
Opting for franchisee
If you are not willing to take the responsibility on your own, you can also take franchisee of a reputed brand. Opt for the franchisee the fees of which you can afford. This is because if you sign on the dotted line once, you will not be able to retreat unless the term of the contract is over. And you would not like to regret later after investing so much of money in your dream business. So, due diligence is a must prior to taking the plunge in this business.