Is it profitable to open a gym?

Like any business, opening a gym requires a significant investment. Therefore, it's important to conduct a preliminary assessment of the profitability of the business you're considering, and to take into account some key factors that will allow you to evaluate whether Is it profitable to open a gym ?

It's important to know that there is no clear answer. Is a professional gym profitable? It can be successful if the right decisions are made, just as it can be a failure if proper planning isn't done. It all depends on many factors that we must consider before embarking on this venture to minimize risks. Let's look at some of them.

Is there a demand for gyms in my area?

Demand is a fundamental factor. For To assess whether there is demand for a gym in the area , we can begin by investigating how many such facilities there are within a certain radius. From the list of gyms we find, whether many or few, we will need to estimate the approximate number of members at each one.

• • If there are few gyms in the area, but they are full, there is demand.
  • If there are few and they are empty, there is no demand.
  • If there are many gyms and they are full, there needs to be more supply.
  • If there are many gyms, but they are empty, there is an oversupply.

In each of these cases, pricing also comes into play. Intense competition sometimes leads to price deflation, making it difficult to make the business profitable because you'll need a very high number of subscribers.

As you can see, there are no exact rules, but there are certain factors that can give us clues.

What can I offer that my competitors don't have?

If there is competition around, we must find the differentiating factor of our business, that value proposition that makes users prefer to sign up at our facilities, instead of those of our competitors.

We recommend the book "Purple Cow" by Seth Godin. A purple cow stands out from the rest because it's different. What will be your gym's purple cow? It could be a service others don't offer, more welcoming facilities, a more flexible schedule, longer hours, or simply a better price. Opening a gym is profitable to the extent that users prefer it over those of the competition.

Where is it located?

Location is another key factor to consider. There are areas where rent is cheaper, but these may not be profitable if they are located in areas with lower purchasing power, which forces prices down. Similarly, areas with high purchasing power are more expensive. In any case, it is especially important that the gym's location is accessible and in a highly visible area. gym in hard-to-reach areas It will require an offer of additional services that makes it worthwhile for the user to go there (in addition to a higher promotional cost).

To consider: High-traffic areas such as residential areas, areas with high commercial traffic, or areas with high population density.

Is it a good time to invest in a gym?

Another aspect to consider is the current market trend. Is it a good time to invest in a gym? For example, in recent years there has been a There has been an increase in the popularity of boutique gyms , which offer personalized training and a more exclusive atmosphere. Similarly, in the wake of the pandemic, there has been a growing demand for online training or fitness apps .

To have all this information, it is important to be aware of market trends and adapt to them.

Here are a few Reasons to open a gym .

What is the initial cost of setting up the gym?

As Setting up a gym can be expensive , so it's important to assess the initial costs to avoid straining your finances in the first few months, or even years. We've already written a blog post about this. The costs involved in setting up a gym . We recommend you read it carefully to understand the scope of the project.

In summary, you will have to consider expenses such as the purchase or rental of the premises, the equipment ( gym equipment on a rental basis). or purchased), the renovation and decoration of the space, staff, promotion… When calculating expenses, it is important to be realistic and consider all possible contingencies.

What will the subscription fees be and how many subscribers do I need?

Since you've already conducted a competitive analysis, you can now determine the approximate subscription fees you'll set for your subscribers. This analysis tells you what users are willing to pay based on the services your competitors offer.

From there, you should consider the other factors to finalize your pricing. Is my gym well-located? Does it offer something my competitors don't? If your facilities offer fewer services, the fee should be lower; if they offer more, you can consider raising your prices slightly.

We've included a table of Prices of monthly memberships at the main gyms in Spain taken from the article about the different  Spanish gym fees published on the Superprof blog: