How is this loadout? Do you think anything is superfluous, or missing?
Power rack |2|
Multipress rack |2|
Deadlift platforms |2|
Leg press machine |1|
Hack squat machine |1|
Leg extension/curl machine |2|
Power tower |1|
Multifunction cable machine |1|
Cable crossover machine |1|
Smith machine |1|
Preacher curl station |1|
Chest-supported row machine |1|
Back extension machine |1|
Reverse hyper machine |1|
Seated calf raise machine |1|
Benches. Lots of benches.
And those cool plate dollys. Lots of those too. One on each side of each piece of free weight equipment.
And lots of plates. And a full rack of hex head dumbells.
Like, if you cut out the luxury amenities, make sure you go big on the stuff that matters.
So that a meathead is going to tell his friends “That place was awesome. Tons of plates, hex heads up to 150 lb. And (what ever) bars for the squat racks.”.
Thats going to be a hidden cost. Bars, plates, dollies, etc.
Its not shiny equipment, so most people really don’t “see” them until its necessary.
Look for auctions or auction houses. A friend of mine bought an entire large high school gym lock stock & barrel for like $600.00. He was the only bid.
So we hauled out the flooring, all the plates, bars & dumbells & stands by the truck load, and it was worth waaaaay more than what he paid.
What you described was my initial idea, but many told me that it wasn’t commercially viable. If I had to include at least some machines, which do you think I should include? I posted a list of all the machines I am thinking of including just above your post. Do you think anything is lacking, or that anything is unnecessary to start out with?
Thats where my experience falls short. About 99% of my lifting has been free weights. I’ve had very little exposure to machines.
Same here. If more were like us, then my task would be easier.
The owner of my gym runs it as a hobby. He may make a bit on the side but it’s not his livelihood. I think this is the way to approach it.
I agree. My goal is to break even, not to make a living from it. I am studying accounting and hope to open a firm one day. But I’d hate to take a huge risk borrowing the money and making the purchases, just for the enterprise to fail.
I work for a (cashed-up) private school with a big strength & conditioning department. Our weight room, IMO, is perfect for the vibe you’re looking for.
We’ve got:
I reckon if you tick those off, with the T-bar row and the leg curl being the lowest priorities, you’d be pretty set
Welcome to business. This is the risk we all take (unless you’re a nepo baby starting with Daddy’s money, NTTIAWWT).
You say you are studying to be an accountant, how old are you, 20?
What is the sq. footage of the locations you are looking at and their rent?
This seems like a bad idea.
The 2 examples you got are of individuals not worried about profit and are probably losing some. That is not an issue as it can be seen as their membership fee to a private gym,
I know people who have gym memberships at over $400 monthly. Losing that much or a bit less/more would not be that big of a deal if they got to have all the toys they wanted.
With the equipment you listed it seems that the location would be very small and unable to accommodate many people. Like 20 or less.
I’m 22 and graduate soon. There have been enough stories of people younger than me starting successful businesses for my age not to be a concern of mine, but in any case this is a long-term goal. I am in the brainstorming stage.
Most of the buildings in my area are on the smaller side. The gym will have to be small. Rents that I have seen are in the $2,500-$3,000 a month range. I want a smaller gym I don’t care about large rofits, but right now I am considering commercial viability.
I do not believe I have been to a gym that regularly had more than 20 people in it at one time. That’s just my experience.
Initial $30k outlay for equipment and TI. Conservatively. Assume paid for in cash
$3k/month rent
$300/month cleaning service/ security/utils to keep it warm or cool etc
Assuming a $50 membership fee, you would need about 65 members from day 1 to break even in 5 years.
Are you sure you will be in that area for the next 5-10 years? Or are you young enough that things are fluid? How are you going to get those 60+ members ASAP and cost free? Will you have the time/expertise to fix and maintain equipment, or will you pay for it? Will you get insurance?
And realize this is not a full accounting of costs.
That is very conservative. I could get those pieces for a garage gym much cheaper but, I assume he would want newer equipment for a commercial gym. Just going Rogue would be more and that is not including benches, bars, weights, bench press, or dumbbells.
How many gyms have you been to? You mention there being just 2 within 10 miles. That is a low number, I cannot imagine Planet Fitness never has more than 20 people.
Even still you want your gym to have the capability to accommodate enough members to make rent or are members going to make appointments to train?
Right now I am seeing about $40k in equipment using the most economical commercial-grade products. Rent is about right. Maybe I will need a monthly cleaning service, but I was intending to do that myself.
I also have to consider the costs of setting up and decorating the gym, marketing, licensing, and insurance like you said.
I want to sell memberships for $25 a month, or possibly $30. Either option would seriously undercut my competitors.
I wanted to borrow $100k, but I’d like the amount borrowed to be as low as possible of course. I still have to make my cost estimates.
Thank you. I will keep this in mind. Financing also seems like a good choice.
I’d be a little weary of financing until interest rates come down. At least with leasing theres a finite end point. If you want out, you can get out relatively unscathed.
Loans are a little more binding. You can’t really just go tits up if things don’t work out and walk away.
I have been members at 3. I just joined the Planet Fitness out of necessity. At 5 AM, there were around 20 people there. This is a rural area. When I lived in a more populous suburb, there were maybe around 30 people there at peak times. I didn’t count, but it had to have been between 20 and 30.
I agree about the space issue. Properties in my area range from 1,225 sqft to 2,800 sqft, but I don’t have many options to choose from.
. Ehhh…
Me & my buddy started a tree company about 30 years ago with a chainsaw & a piece of rope. Pretty low overhead costs at that point. It has since grown into trucks, cranes, machines, and all the little things.
So has the price. Like, typically somebody is looking at $15 - $2500 for your average tree.
There are a new crop of young bucks that see this and think “Thats crazy! I’ll do it for $800 and be back at the bar by lunch time!” And we watch them die, literally and figuratively, every year.
I’d determine the price point based on your operational costs once you know what that will be, not beforehand.