I know that there are a couple of gym owners on this forum, and I would appreciate your input on this issue. I have calculated that if equipment will cost around $60k if I get everything new from Elite FTS. If I buy used equipment, I expect to pay around $50k, but I am budgeting for $60k. What other expenses should I expect to encounter, from startup costs to recurring ones?
Regarding startup expenses, I am aware of permits, licensing, marketing, and miscellaneous things to get the gym set up, like flooring and decorations. I haven’t priced these things yet, though.
The recurring fees I am aware of are rent, utilities, insurance, and gym management software. I hoping not to have to employ anyone in the beginning.
I am sure that I am missing a good number of expenses. What else should I expect to encounter? With that knowledge I can map out how much I would need to charge to break even.
Toiletries and sanitation products. Commercial cleaners, disinfectants, toilet paper, trifold paper towels, pads, first aid kits, fire extinguishers,
A company like Zep has commercial acccounts reps that usually will do pretty good to cover most of those bases, but you want to check with the property management company on responsibility for fire protection services. They’re relatively common, and come around to inspect and refresh your fire extinguishers & stuff.
I helped open a small gym, and beyond equipment, flooring and HVAC were big surprise costs. Insurance, cleaning, staff, software, and marketing also add up fast. Even little things like towels, Wi-Fi, and music licensing become recurring expenses. Budgeting beyond gear is key.
There was only one gym in my area and I felt it was too expensive. I thought that eventually I could open a gym and charge less. I wouldn’t say the motive was to become wealthy, but it was to take advantage of that opportunity and provide something smaller and more affordable for myself and anyone else who may have been interested.