# Starting my own gym



## animale66 (Nov 25, 2013)

No freakin' clue which section of the forums to drop this one on... but I respect everyone's opinion and ideas (and need them for taking on a risky venture like this)!


A friend of mine and I have agreed to take the plunge and purchase our own gym.  We have started dealing with another gym owner in the area who is looking to liquidate and possibly purchase his equipment or go out on our own (determined the business wasn't for him, and I think he knew he had no idea what he was getting into). 


Our town is littered with globogyms, and we both feel there is an oppurtunity to service true strength athletes (bodybuilding/powerlifting/mma) to an underserved community. 


It's an exciting adventure for sure - I've run 5 businesses (at 29 years old, believe it or not... my partner is early 40s) and am gainfully employed with a Fortune 500 company doing computers (which I now hate).  I am drunk with my sport and can't get enough of it.

Certainly there are other gym owners or (fitness industry entrepeneurs) on the board.. my question for you is:
* What advice would you have for someone starting out?  
* What were the mistakes you regret the most?
* What was the smartest thing you did for your business?


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## Arnold (Nov 25, 2013)

So his gym is going out of business, obviously because it was not profitable, and u guys are going to turn it around and make it successful? Yeah that is damn risky! 


www.IronMagLabs.com


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## kboy (Nov 25, 2013)

I think you have a good starting point with this gym that is closing Bro, analyze what factor contribute to the failure of this gym for example:monthly dues, membership cost, location, type of clientele they appeal to, condition of the equipment, staff, promotions, benefits and privileges of been a member, and most important like any other business do you want to profit on numbers or quality.


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## kboy (Nov 25, 2013)

If your objective is to create a place for the elite athlete the real hardcore is great but you will be limited to that, on a business point of view the Globogym is what brings the money, develop a plan with that in mind starting by selecting the qualities and ameneties that you think are important to have, I love a hardcore gym where I can drop the weights without been bitch at but I don't like the hardcore gym restroom with piss in the floor, a great example is Metroflex in Dallas Tx. a legendary hardcore gym from one side to the other, now a franchise the Plano Tx. location still a hardcore Metroflex gym but with better equipment and amenities, on my own experience as a business owner if a Hardcoregym is your passion ensure it by opening a business that will appeal to a wider range of people some where in between the Hardcore and Globo and make that business pay for the real Hardcore gym, and that way you will really enjoy it without worrying about the number of members you need to pay bills and you  will have plenty of time to allow it to grow.


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## animale66 (Nov 26, 2013)

Thanks guys - 

To be clear Prince, we're looking at purchasing the equipment only to jumpstart our own place.  We're not interested in the current facility, trademark, previous clientele list, etc.  

And kboy - thank you... from a financial stand-point, i'm expecting that we're going to hemorage money for the first year... barely squeak even the second, and the third year edge out a tiny profit (though remain unsalaried).  

Both my partner and I agree that the number one mistake gym owners make is that they confuse a gym with "a room with a lot of equipment in it".  It's not - it's about the people, the culture, the connections (personal, sport-specific, and casual) that get fostered while there.  As a male athlete, I'd say it's my #1 social outlet outside of perhaps work.

Our goal is to capture as much audience as possible while maintaining our core culture (hard old school strength sports... not this newfangled crossfit type minimalistic approach with bodyweight exercise designed to turn everyone skinny fit).  With that I expect a wide range of people with varying degrees of attitude towards sport (from high schoolers needing to improve strength for their activities, to guys seeking/holding pro cards).

Thanks guys!

PS - not dogging on crossfit... just saying... you can't go into powerlifting/strongman and make that the core of your routine.


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## Bowden (Nov 26, 2013)

Look at it as a business with month to month cash flow requirements rather than from the perspective of "As a male athlete, I'd say it's my #1 social outlet outside of perhaps work".
In addition to start up costs, you have operating costs from maintenance ect.

Maybe design it as a mixed model.
Divide the gym environment up into two different sections.
The globogym/ planet fitness section helps support the hard old school strength sports section.

That way you stay in business longer.


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## Bowden (Nov 26, 2013)

animale66 said:


> Thanks guys -
> 
> To be clear Prince, we're looking at purchasing the equipment only to jumpstart our own place.  We're not interested in the current facility, trademark, previous clientele list, etc.
> 
> ...



The problem you have is long term financial viability.
A powerlifting/strongman potential gym member marketing demographic may too small to generate enough cash flow to support a 'brick and mortar business' from a long term financial viability standpoint.


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## theCaptn' (Nov 26, 2013)

Bowden said:


> The problem you have is long term financial viability.
> A powerlifting/strongman potential gym member marketing demographic may too small to generate enough cash flow to support a 'brick and mortar business' from a long term financial viability standpoint.



Ignoring the cross-fit crowd is a risk too - that is a growing market.


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## Darkhrse99 (Nov 26, 2013)

I was just asking my gym owner all about starting a gym up last week. She owns Anytime Fitness. There is a lot of overhead in starting a gym. In her case it was 50K for the name, 110K for the equipment, 150k for the build, her total monthly bills are around 24k a month including utilities. I believe the gym space alone was 15k a month to rent. She also hasn't made money yet and is in her 3-4 year of doing it. She moved once during that period and members go up and down quite often from the move and with law changes in this area. If you can come up with cash and not have to finance a lot of it, I'm sure your numbers will be drastically different from hers.  I was kinda shocked when she told me the final numbers and getting financed for all of it might be hard to do.  Being a gym rat myself, I wish I could pul this off too!


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## Dr.G (Nov 26, 2013)

animale66 said:


> No freakin' clue which section of the forums to drop this one on... but I respect everyone's opinion and ideas (and need them for taking on a risky venture like this)!
> 
> 
> A friend of mine and I have agreed to take the plunge and purchase our own gym.  We have started dealing with another gym owner in the area who is looking to liquidate and possibly purchase his equipment or go out on our own (determined the business wasn't for him, and I think he knew he had no idea what he was getting into).
> ...


 1- good location is important
2- on top of being a gym offer something new like private one on one sessions and semi private one /many lessons. you need good trainers who can bring their customers to you and you take a percentage.
good trainers is the key.
3- body fat analysis and all that computerized crap that cost you nothing but attracts the ladies
4- before noon only membership option cheaper than the "anytime option" this way you encourage the people who can come only in the morning and also you can shift more people towards the morning to avoid crowded afternoons
5- good equipment that targets the heavy lifters as well as the older ones and women too .


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## animale66 (Nov 26, 2013)

Wow - so many terrific ideas. 

Indeed, ignoring crossfit entirely is definitely a poor idea.  Perhaps catering our environment/culture towards them to help augment their current training makes sense. 


Am curious though Darkhrse... 150K for the build *AND* 15K to rent?  One of those build-to-suit kinda deals I guess.  Fortunately my area has a lot of old warehouse space that I'm hoping can easily be converted... I too am thinking moving in a few years is in the cards (ideally because of growth!) so good ideas in terms of anticipating the membership drop.


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## Darkhrse99 (Nov 26, 2013)

I'm not really sure what she meant by build, I'm guessing remodel and being up to code for whatever building she chose. I do know she rents in this strip mall and I believe she paid 10.00 a square foot for rent. She said her rent alone was 15k and then with everything added
 It was 25 k a month. 


Sent from my iPhone using Tapatalk


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## Kenny Croxdale (Nov 27, 2013)

animale66 said:


> A friend of mine and I have agreed to take the plunge and purchase our own gym.  We have started dealing with another gym owner in the area who is looking to liquidate and possibly purchase his equipment or go out on our own (determined the business wasn't for him, and I think he knew he had no idea what he was getting into).
> 
> Our town is littered with globogyms, and we both feel there is an oppurtunity to service true strength athletes (bodybuilding/powerlifting/mma) to an underserved community.



*Marketing*

I spent 15 years in marketing.  So, I will address this part of it. 

*Specialty Gym*

As you have noted, being a specialty gym offers the more hard core athletes something that the National Gyms don't.  

*The Upside*

You can own the "Strength Gym" catagory.  

You don't really need expensive equipment with the hard core group.  

*The Box*

Crossfit is a great example of this.  That is why they refer to their place as, "The Box".  

The Crossfit magazine is even called, "The Box." 

*The Upside*

The true hard core athletes will want to train with "their own" people for a variety of reasons.  

Hard core groups tend to be loyal, especially if you the only one in the area. 

You don't need a prime retail location.  Basically, a warehouse off the beaten path will work, providing you are in a fairly populated area. 

*The Downside*

As other have stated, the more specialize you are, less members you will have...less revenue. 

*The 22 Immutable Rules of Marketing*

This is one of the best books ever written on marketing.  It is a cheap (about $12 on amazon), quick read and will provide you with some good marketing information.  





animale66 said:


> What advice would you have for someone starting out?





You are on the right path.  However, posting on sites like this limits you knowledge base. 

*Going Down To The Battlefield*

Nothing beats real world experience.  

The only way to gain real world experience is to go out in person and find others who have a successful small gym.  

Spend some time in their place and talk to them in person. 

Most individual like to talk about themselves, how they succeeded and the mistakes they made along the way.  

It is amazing how much you will learn from just buying them a burger/fries and coke. 

While you may obtain some information by posting sites like this, NOTHING compares to the in person real world experience. 

Kenny Croxdale


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## Kenny Croxdale (Nov 27, 2013)

Bowden said:


> Maybe design it as a mixed model.
> Divide the gym environment up into two different sections.
> The globogym/ planet fitness section helps support the hard old school strength sports section.
> 
> That way you stay in business longer.



*"Birds of a feather flock together."*

What you first need to do is identify who you are.  

In plain English, "Like attract likes".  

*Example*

The Ironmagazine site is a prime example of how "Likes attract likes".  

This site attracts individuals who either are hard core or who "wanna be" hard core.  

You don't/won't find the weekend athlete or women who want to get toned on this site.  

*Family Fitness Center*

The national "health clubs" are the Poster Children for weekend athletes, women who want to get toned, and individuals who generally lack motivation. 

National Family Health Clubs attract and cater to a different demographic than hard core gyms.

*Hard Core Gyms*

These gyms are all about attitude.  They are a Cult, that is driven increase strength, size, speed, etc.   

Hard core gym members prefer to train with other who have their same attitude and objective.

The hard core trainee doesn't have much respect for the Planet Fitness type of gym member.  

With the said, the Planet Fitness member is intimidated hard core athletes and does not care to be around them. 

*Israeli-Palestinian Gym*

The concept of having a mixed Planet Fitness with a Hard Core Gym is like having an Israeli-Palestinian Gym.  

Kenny Croxdale


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## Kenny Croxdale (Nov 27, 2013)

theCaptn' said:


> Ignoring the cross-fit crowd is a risk too - that is a growing market.



*"A camel is a horse designed by a committee."*

The take home message if you trying being too much, in trying to please as many people as you can...you become a totally different animal. 

*Identify who you are!*

By defining who you are, what you do and what you belief in, you attract those individuals..."Bird of a feather..."

When you try to please everyone/group, you end up pleasing no one.  

*Knock Off*

Crossfit has carved out it niche on the market.  

No one wants to go to a "Knock Off" Crossfit.  

*Being First*

Research has demonstrated that being recognized as "First" in a market mean that you garner the most revenue.  You are considered "The Expert".

Thus, Crossfit is the leader in their category. 

*Being Second*

Research has demonstrated that being "Second" in the market, garners you about half of what "First" does.  

*The Law of Large Numbers*

In business, the greater the population, the better the chances a business that is rated second, third or even fourth can make money. 

*Cell Phones*

A great example of his is that cell phone business.  Pretty much everyone in a family owns a cell phone.  

Thus, even a third tier company can make money. 

*Niche Markets*

While Crossfit has grown, it is still a niche market.  Their membership is small compared to the size of National Family Health Clubs.  

Any "Knock Off" Crossfit gym will pick up some individuals interested in Crossfit.  

However, due smaller percentage of individuals doing Crossfit, you are going to only get a minuscule amount.  

*Own Your Catagory*

In small niche markets, you Want to own the category you are in.  

Establish yourself as "The Experts" in your field.  

Kenny Croxdale


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## Kenny Croxdale (Nov 27, 2013)

Dr.G said:


> 1- good location is important



*Gym Location*

A good location for a hard core gym, isn't that important from being in a retail area.  

What matters is the population of the area that you have to draw from. 



Dr.G said:


> 2- on top of being a gym offer something new like private one on one sessions and semi private one /many lessons. you need good trainers who can bring their customers to you and you take a percentage. good trainers is the key.



*Personal Trainers*

Most hard core gym attract hard core "seasoned" athletes that already have a solid training foundation.  

One of the things that often attracts new hard core members who are hanging out, training with and learning from the "seasoned" other strength athletes.

Thus, a good trainer is nice but NOT going to be a key to the success of the gym. 



Dr.G said:


> 4- before noon only membership option cheaper than the "anytime option" this way you encourage the people who can come only in the morning and also you can shift more people towards the morning to avoid crowded afternoons



This look good on paper but does NOT work in real life. 

You want a key club. 



Dr.G said:


> 5- good equipment that targets the heavy lifters as well as the older ones and women too .



*Good Equipment*

Here's an ambiguous term with NO meaning.  

Hard core individuals don't need a lot.  Some Selectorized pieces are nice.  

*Older Ones and Women*

I am ranking member of old group as well a the hard core group.  

With that said, you have indicated that you gym emphasis is on hard core athletes...not the geriatric crowd or women who want to "tone". 

Keep it hard core.  

*Target Marketing*

1) What you want to do is determine who you market is and then go after it.

2) Establish your place as the "Mecca" for athletes.

*Shotgun Marketing*

This amounts to throwing crap against the wall to see if it sticks. 

Trying to be everything to everybody NEVER works. 

Kenny Croxdale


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## Jimmyinkedup (Nov 27, 2013)

Yeah 3 words: Value Added Services...
Learn how to successfully market and sell them (ie PT) and you will be well ahead of the curve....


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## Kenny Croxdale (Nov 28, 2013)

Jimmyinkedup said:


> Yeah 3 words: Value Added Services...
> Learn how to successfully market and sell them (ie PT) and you will be well ahead of the curve....



*"Added Service-Selling Them Personal Training"*

While the gym member does get something out of a Personal Trainer, the real "Value" is more for the gym owner than the member. 

With that said, I don't see PT as what I would deem as a real Added Value...meaning you get a little extra for the same price. 

*Fitness Equipment Sales*

As I stated, I spent 15 years in marketing.  

I worked in Retail (for home use) Specialty Equipment Sales for 13 years. I now am in Commercial Fitness Equipment Sales

*Retail Added Value/Service*

What I did to get some of my retail sales was once the customer purchased the equipment, have them come in and get a couple of free training sessions.  

What I also did was to offer to write up a new program for them about every 6 weeks for free.  

*Commercial Added/Service Value*

I do something very similar in commercial sales.  

I go over training information with them in person.  I also send them training article on how to reach their objective/goal. 

*Strength Clinic*

For the last two years, I have put on a Strength Training Clinic for Personal Trainers. 

*Sponsor*

The fitness company that I work for allows me work on the strength clinic a little while I am on the job and they sponsors the event. 

I sold the idea to the owner by telling him, the flyer and registration form for the strength clinic would have his company name on it, identifying him as the sponsor. 

We would also have the company banner up during the event.

*Certified Event*

The clinic is certified with two of the top Personal Training Organizations:  

1) The National Strength and Conditioning Association

2) The National Academy of Sports Medicine

*Speakers*

The speakers are individuals with degrees in Exercise Physiology, Nutrition, etc and those with some type of expertise in training. 

None of the speakers nor I am paid.  

The speakers and I work for free. 

The only payment the speakers and I receive is additional Continuing Education Units to maintain our certifications.  

*Cost of The Event*

$50 for 7 Hours of Continuing Education Units for Personal Trainers.  $50 is cheap. 

All the proceeds go to the Jewish Community Center, who allows me to host the event.  

*Transferring That "Added Value" Marketing Concept to A Strength Gym*

1) Put on Strength Training Clinics for free.  

You don't have spend money sanctioning them, as I did. 

There are knowledgeable individuals out there who would love to talk about their passion. 

Have an clinic about every 6 months.

2)  Demonstrate How to Use the Equipment

Post a time that you will show the members how to maximize the use of a particular piece of equipment or exercise.  

This could be a once a month event. 

*Example*

The Animale66 Gym
Saturday, January 18, 2014
10am -12 noon

*The Back Raise-Hip Extension Bench* 

Learn how to work the spinal erectors (Back Raise) or blast the glutes (Hip Extension) by simply changing your body placement on the bench pad.  

Also, learn the different training effects between a 45 Degree and Horizontal Back Raise-Hip Extension Bench. 

*Personal Training*

Demonstrating how to maximize a piece of equipment, exercise or training method establishes you as "The Strength Guru".  

That means you end up having people who will ask you to train them. 

If you decide to do Personal Training do this...

*Groups of 2-4 People*

1) It cuts the cost for the member. 

2) It increases your hourly rate.

3) It allows more recovery time between sets. 

4) _Socialization_ 

This is one of the greatest benefits.  It becomes a fun social even, a team of friend with on common goal. 

They feed off each other.  They show up not only to become bigger and stronger but because they like the social interaction with their friends...increased member retention.

If one misses a session, the others will dog them...you don't have to be the bad guy.

*Other Added Value Marketing Concepts*

There are a multitude of other Added Values that you can come up with.  

One of the primary goals is establish your Gym as The "Mecca for Strength Training".

Kenny Croxdale


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