How Much Does it Cost to Open a Gym?
How much does it cost to start a gym? The answer depends on what kind of gym you want to open, where it will be located, and what amenities you plan to offer your guests. Also, on top of the cost to open a gym, you must consider the monthly cost of running a gym, as these recurring costs can be substantial.
Are you passionate about fitness? Now’s the time to make that passion pay the bills. Starting your own gym can be both ambitious and rewarding. However, the burning question is: how much does it cost to build a gym business?
In this post, we’ll discuss how much it costs to open a gym, as well as break down some one-time and recurring costs and provide some budgeting tips. Finally, we’ll list some financing options to help you get started on the road to your fitness empire.
Gym Startup Costs
When we consider the cost to start a gym, a tiny studio gym could be opened for as little as $65,000, whereas a mid-size gym would cost close to $115,000. If you’re wondering, ‘how much does it cost to open a fitness gym?’, a simple cycling studio can be set up for around $50,000.
You can practically spend anywhere between $50,000 and $1,000,000 setting up and opening a gym; it all comes down to the location, equipment costs, and facilities you require.
Of course, there are other determining factors when considering how much is necessary to start a gym. For example, will you rent or own the premises? How much square footage will your gym require to be fully functional? Where would you like your gym to be located?
One-Time Costs
When answering the question, ‘how much does it cost to open a gym?’, the one-time costs can make a huge difference. Some critical costs to consider include:
- Gym Equipment
Fitness equipment costs vary depending on the type of equipment you need and how many items you want to purchase. Estimate in the region of $10,000 for a personal studio and $50,000 if you’re going to fully equip a commercial gym.
- Physical Location
Again, this cost will vary depending on how big your gym will be and where you want to locate the premises. Additionally, you’ll have to decide whether to purchase or rent the building.
- Permits and Licenses
Individual states have different legal requirements regarding which permits and licenses your gym will need. So, we recommend you research any health and safety compliance permits and business license criteria in your state as part of your business plan.
- POS System and Internet Facilities
These days, free internet access is necessary if you’re creating a business that serves the public. So, you’ll have to price out the best options for commercial WiFi around your gym premises. Additionally, you’ll need a POS system to take electronic payments, so be sure to get some quotes for these services.
Recurring Costs
The ongoing costs of owning and maintaining a gym vary significantly between gym sizes and types. However, these are some potential recurring costs for you to consider:
- Insurance
Initial premiums of around $12,000 need to be paid annually and kept up to date. Make sure these figures are factored into your ongoing budget.
- Lease or Mortgage Payments
Whether you decide to purchase or rent your location, you’ll have to pay monthly mortgage or lease payments. These costs will vary depending on the rental prices or loan amount specific to your premises.
- Utilities
Gyms can use a lot of electricity, especially if you decide to open 24 hours a day. Large gyms can pay around $68,000 annually.
Financing Options
Now that we’ve answered the question ‘how much does it cost to open a gym?’, it’s time to discuss financing options.
SBA Loans
SBA loans offer financial assistance and are guaranteed by the U.S. Small Business Administration (SBA). This organization provides loans for SMEs (Small and medium-sized enterprises) who can’t access significant amounts of capital. We’re SBA partners and can help you secure a loan for your first gym.
Merchant Cash Advance
Here at L3 Funding, we make it quick and easy to apply for a business cash advance without lengthy processing times and complicated paperwork. Plus, you can easily apply for funding online.
Unsecured Loans
Access to fast capital could change the outlook for your first fitness center. Contact us today to find out more.
Secure Working Capital for Your Gym
As you can see, L3 Funding has a wealth of options to help your fitness business succeed. From small business working capital to micro loans, we have the financial solutions your business needs. Discover just how easy you can secure the monies you need with our merchant funding company.