Not sure where to start with your fitness centre idea? Find out how to set up and start your own gym business with our expert guide.

In the UK, the health and fitness industry is booming. The membership figures have nearly returned to normal after months of uncertainty for business owners. While in the meantime, the UK government and health organizations are pushing Britons to get active, drawing more consumers to the fitness market.

Fitness professionals and personal trainers are still highly in demand, which means you can start your own gym business and offer physical and mental benefits to a large chunk of the population.

The challenges of starting a new business vary by industry. New gym owners should consider a lot of factors, particularly after Covid, in order to provide service users with the best support. Fitness is therefore a sector where SMEs can thrive – but also one where entry seems difficult.

Here are the top priorities you need to consider when starting a gym business, such as marketing, finance, and health and safety. You’ll be able to start a commercial gym business that even Joe Wicks would be proud of at the end of this guide.

Here’s a step-by-step guide on how to open a gym

If you’re interested in opening a gym, here are some steps to help you get started.

Write your business plan

Setting your gym up for success requires a well-crafted business plan that acts as a compass, guiding your journey towards growth and prosperity. This comprehensive plan will not only chart your strategy but also pinpoint potential risks and aid in securing the necessary funding to expand your enterprise.

Skipping this critical step would be a costly mistake. A meticulously designed business plan empowers you to gain a deeper understanding of your market, including the initial startup costs and how you can set your gym apart from competitors. It also allows you to explore potential niches, such as catering to the senior market or offering unique class-based activities, to establish your gym as a standout player in the fitness industry.

Outlined below is a suggested structure for your gym’s business plan:

• Executive Summary:
  • Concise overview of the business and its projected success.
  • Emphasis on exceptional customer experiences, top-notch facilities, and diverse fitness programs.
  • Commitment to inclusivity, personalized training, and community building.
• Company Description:
  • Detailed information about the fitness business and its core values.
  • Focus on customer-centric approach and diverse exercise options.
  • Competitive advantages, including experienced fitness professionals and welcoming atmosphere.
• Organization and Management:
  • Clear structure of the company and roles within the management team.
  • Emphasis on experienced leadership and passion for fitness.
  • Goal to inspire staff for seamless day-to-day operations.
• Market Analysis:
  • Assessment of the current fitness industry outlook.
  • Identification of target customer demographics.
  • Recognition of local competition and differentiation strategies.
• Financial Plan:
  • Outline of funding requirements for launch and operations.
  • Detailed financial statements and profitability projections.
  • Focus on achieving financial sustainability while maintaining quality.
• Marketing Strategy:
  • Multi-faceted approach to attract and engage customers.
  • Utilization of digital marketing, social media, and local partnerships.
  • Promotions, referral programs, and incentives for member loyalty and word-of-mouth referrals.

Get trained and accredited

Getting trained and accredited is essential for anyone looking to excel in their chosen profession and build a successful career. In the fitness industry, obtaining relevant certifications and accreditations not only enhances your knowledge and skills but also instills confidence in clients and employers.

Accredited training programs provide comprehensive education on exercise science, anatomy, physiology, and various training methodologies. They also cover essential topics such as injury prevention, client assessment, and program design. By acquiring recognized accreditations, fitness professionals demonstrate their commitment to delivering safe and effective workouts, catering to clients’ unique needs, and maintaining high industry standards.

This not only elevates their professional credibility but also opens up opportunities for career advancement and the ability to work with diverse clientele, from general population to athletes and special populations.

In the UK, there are several reputable accreditations that fitness professionals should consider obtaining to excel in the industry:

1. REPs (Register of Exercise Professionals): REPs is a prominent UK-based accreditation organization that sets industry standards for fitness professionals. Holding a REPs qualification showcases your expertise and adherence to the highest professional standards. REPs offers various levels of accreditation, ranging from entry-level to advanced certifications, providing a clear pathway for career progression in the fitness industry.
2. YMCA Awards: YMCA Awards is another widely recognized accreditation body in the UK, offering a range of fitness and personal training qualifications. Their certifications focus on practical skills and knowledge required to deliver safe and effective exercise programs to clients. Having a YMCA Awards accreditation signifies your competency and commitment to continuous professional development.
3. Active IQ: Active IQ is an awarding organization that provides a comprehensive range of fitness qualifications and certifications. Their accreditations cover diverse areas such as gym instruction, personal training, group exercise instruction, and specialized fitness programs. Holding an Active IQ qualification demonstrates your proficiency in delivering quality fitness services and staying updated with industry advancements.

Understand the startup costs involved in owning a gym

Understanding the startup costs involved in owning a gym is crucial for planning and financial preparation. Opening a gym requires a significant initial investment, including expenses for equipment, facility lease or purchase, renovations, licenses, insurance, and marketing. Additionally, factoring in staff salaries, utility costs, and other operational expenses is essential to create a realistic budget and ensure the long-term financial viability of the gym.

Here are ten examples of startup costs involved in owning a gym:

1. Equipment: Purchasing gym equipment, including cardio machines, strength training machines, free weights, mats, and other fitness accessories.
2. Facility Lease or Purchase: The cost of leasing or purchasing a suitable location to set up your gym.
3. Renovations and Interior Design: Expenses for remodeling the gym space and creating an attractive and functional interior design.
4. Licenses and Permits: Fees associated with obtaining business licenses, health permits, and other legal requirements.
5. Insurance: Costs for gym liability insurance and property insurance to protect against potential risks.
6. Marketing and Advertising: Funds allocated to marketing and promoting your gym to attract new members.
7. Staffing: Initial costs for hiring and training gym staff, including personal trainers, fitness instructors, and administrative personnel.
8. Utilities: Monthly expenses for electricity, water, heating, cooling, and other utilities required to run the gym.
9. Technology and Software: Investment in gym management software, POS systems, and other technology to streamline operations.
10. Initial Inventory: Purchasing initial inventory, such as towels, water bottles, and retail merchandise, to offer additional services and products to members.

These are just some of the primary startup costs that gym owners should consider when planning to open their fitness facility. Proper budgeting and financial planning are essential to ensure the smooth launch and successful operation of the gym.

Choose a business name

Selecting a business name for your gym is a significant decision that plays a crucial role in establishing your brand identity and attracting potential members. The name should reflect the essence of your gym’s mission, values, and unique offerings.

Consider a name that is memorable, easy to pronounce, and resonates with your target audience. Avoid using generic terms and opt for something distinctive and original to set your gym apart from competitors.

Additionally, ensure that the chosen name is not already trademarked or in use by another gym to prevent any legal issues in the future.

Conduct thorough research and gather feedback from friends, family, and potential customers to ensure that the chosen name conveys a positive and lasting impression, setting the stage for a successful and recognizable gym brand.

Pick a business structure

Choosing the right business structure is a critical decision for entrepreneurs starting a gym, as it impacts legal liability, taxation, and ownership arrangements. The three common business structures for a gym are sole trader, partnership, and limited company.

1. Sole Trader: A sole trader is an individual who owns and operates the gym as a single business entity. This structure offers simplicity and full control over the business, with the gym owner personally responsible for all aspects, including profits, debts, and legal liabilities. An example of a sole trader gym could be “John’s Fitness Studio,” where John is the sole proprietor and handles all aspects of the gym’s operation.
2. Partnership: A partnership involves two or more individuals who co-own the gym and share responsibilities, profits, and liabilities. This structure allows for shared decision-making and resources but also means that partners are jointly liable for the gym’s obligations. An example of a partnership gym could be “Smith & Lee Fitness Center,” co-owned by Sarah Smith and Jack Lee, who both contribute to the gym’s management and success.
3. Limited Company: A limited company is a separate legal entity from its owners, known as shareholders. The gym operates as its own entity, and the owners’ liability is limited to the amount they invest in the company. This structure offers added protection to personal assets and may attract more significant investment. An example of a limited company gym could be “FitLife Ltd.,” where multiple shareholders collectively own and manage the gym.

The choice of business structure depends on factors such as the gym’s size, funding requirements, ownership preferences, and desired level of personal liability. Consulting with legal and financial professionals can help gym owners make an informed decision that best suits their specific needs and goals.

Register your business

Opening a gym in the UK requires registering your business to comply with legal regulations and establish a formal entity. The registration process varies depending on the type of business structure you choose, whether it’s a sole trader, partnership, or limited company.

• For sole traders, the process involves registering as self-employed with HMRC and reporting income and expenses through a Self Assessment tax return.
• Partnerships must register the partnership with HMRC, providing individual details for each partner’s income and expenses, and each partner files a separate Self Assessment tax return.
• If you choose to operate as a limited company, you need to register the company with Companies House, appoint directors and shareholders, and provide necessary incorporation documentation.

Registering your gym business ensures you are operating legally and meeting tax obligations, providing a solid foundation for growth and success.

Accounting software

Accounting software tailored for gyms streamlines financial management processes, making it easier for gym owners and managers to track expenses, manage revenue, and maintain financial records. Two examples of accounting software designed specifically for gyms are:

1. GymMaster: GymMaster is a comprehensive accounting software solution that integrates seamlessly with gym management systems. It provides a user-friendly interface, allowing gym owners to efficiently handle membership dues, track expenses related to equipment and facilities, and generate financial reports. With automated billing and invoicing features, GymMaster simplifies revenue collection and offers integration with various payment gateways, ensuring a smooth financial transaction process for gym members.
2. Zen Planner: Zen Planner is another popular accounting software designed for gyms and fitness studios. Alongside its extensive gym management capabilities, Zen Planner offers robust financial tools. It allows gym owners to create and manage memberships, set up recurring billing cycles, and generate financial reports to assess business performance. With its integrated payment processing, Zen Planner facilitates secure and hassle-free payment collection from members, reducing administrative burden and improving overall financial efficiency.

Both of these accounting software options offer tailored features and functionality to meet the unique financial needs of gyms, providing peace of mind for owners and enabling them to focus on enhancing their fitness services and growing their businesses.

Opening a gym via franchising

Opening a gym via franchising can be an advantageous option for aspiring entrepreneurs looking to enter the fitness industry with a proven business model and support from an established brand.

Franchising offers a host of benefits, including access to a well-developed brand image, standardized operating procedures, and ongoing training and support.

By franchising a gym, individuals can tap into the expertise and experience of the franchisor, allowing them to focus on running the business and providing quality fitness services. Moreover, being part of a recognized franchise network often enhances the gym’s credibility, attracting more customers and increasing the chances of long-term success.

Three UK examples of gym franchises that have expanded their reach through franchising are:

1. Anytime Fitness: Anytime Fitness is a well-known 24-hour gym franchise that originated in the United States and has expanded globally, including a significant presence in the UK. They offer a supportive franchise model, providing training, marketing support, and a range of operational tools to help franchisees thrive in their local markets.
2. Snap Fitness: Snap Fitness is another international gym franchise that operates in the UK and offers flexible membership options and convenient 24/7 access to its facilities. They provide a comprehensive franchise package, including site selection assistance, training programs, and ongoing marketing support to help franchisees establish and grow their gyms successfully.
3. énergie Fitness: énergie Fitness is a UK-based gym franchise that has rapidly grown and now has a considerable presence across the country. They offer a variety of gym formats, from budget gyms to premium fitness centers, catering to different market segments. Franchisees benefit from initial training, ongoing support, and access to the latest fitness trends and equipment.

These gym franchise examples showcase how entrepreneurs can leverage established brand identities and support systems to open successful fitness businesses in the UK market.

Franchising provides a structured pathway for individuals to become gym owners while minimizing some of the risks associated with starting a new business from scratch.

Open a business bank account and credit card

Opening a business bank account is a critical step for gym owners to manage their finances efficiently and separate personal and business transactions. A dedicated business account not only simplifies accounting and tax reporting but also enhances the credibility and professionalism of the gym.

It allows for easy tracking of income and expenses, provides access to financial tools, and facilitates payment processing for memberships and services. With a business bank account, gym owners can better organize their finances, monitor cash flow, and make informed financial decisions to support the growth and stability of their fitness venture.

Several reputable banks in the UK are known for their acceptance of start-up businesses and the specialized services they offer. These banks provide tailored solutions to meet the unique needs of gym owners and offer attractive benefits to support their financial requirements.

Some examples of banks that accept start-up businesses in the UK include:

• Barclays: Offers free banking for start-ups for an initial period, providing access to digital tools and tailored business banking solutions.
• HSBC: Provides start-up business accounts with free banking options and financial support for emerging businesses.
• NatWest: Offers start-up business accounts with no monthly fees for the first 18 months, along with dedicated business banking support and services.
• Lloyds Bank: Provides a range of business bank accounts and services for start-ups, including free introductory banking offers and financial planning assistance.

By choosing a bank that specializes in serving start-up businesses, gym owners can avail themselves of valuable financial support and set the groundwork for a successful and thriving fitness enterprise.

Find a location for your gym

Finding the right location for your gym is a crucial aspect of setting up a successful fitness business. The location you choose will significantly impact your gym’s visibility, accessibility, and potential to attract a steady flow of members. Conduct thorough market research to identify areas with a demand for fitness facilities and a target audience that aligns with your gym’s offerings.

Consider factors such as foot traffic, proximity to residential areas and workplaces, and the presence of competitors. An ideal gym location should be easily accessible, have ample parking space, and be situated in a safe and well-maintained neighborhood. Additionally, assess the size and layout of the space to ensure it can accommodate the gym’s equipment, amenities, and future expansion plans.

By carefully selecting the right location, you can position your gym for success and create a welcoming environment that fosters fitness goals and a sense of community among members.

Get licenses and permits for your gym

Obtaining the necessary licenses and permits is a crucial step in ensuring the legal compliance and smooth operation of your gym. In the UK, there are various regulations and requirements that gym owners must adhere to, depending on the services and facilities offered. Common licenses and permits may include health and safety certifications, zoning permits, and registrations with relevant authorities.

Additionally, if you plan to offer specialized services such as personal training, group classes, or sports therapy, specific qualifications and accreditations may be necessary to meet industry standards and regulations.

By acquiring the appropriate licenses and permits, you demonstrate your commitment to providing a safe and professional environment for your gym members while avoiding potential legal and financial pitfalls.

In the UK, gym owners may need the following licenses and permits:

• Health and Safety Certification: Ensuring compliance with health and safety regulations to protect gym users and staff.
• Business License: Obtaining a general business license to operate a fitness facility legally.
• Planning Permission: If you are making significant changes to the property, you may require planning permission from the local council.
• Music License: If you play copyrighted music in your gym, you may need a music license from the Performing Right Society (PRS) for Music and Phonographic Performance Limited (PPL).
• Employer Identification Number (EIN): For limited companies and partnerships with employees, an EIN may be required for tax purposes.
• Public Liability Insurance: Providing coverage in case of injury or damage to a member or visitor while on your premises.
• Premises License: If you plan to sell alcohol or provide refreshments on the premises, you will need a premises license.
• Personal Trainer Qualifications: For gym staff providing personal training services, appropriate certifications and qualifications are essential.
• CPR and First Aid Certification: Ensuring staff are trained in CPR and first aid for emergency situations.

By being proactive in obtaining the necessary licenses and permits, you can confidently operate your gym within the legal framework and focus on providing excellent fitness services to your members.

Insurance for a gym

In the United Kingdom, insurance for gyms is equally vital to safeguard against potential risks and liabilities in the fitness industry. Gym owners need comprehensive insurance coverage to protect their businesses, clients, and assets. While there are many insurance providers in the UK, here are three examples of companies that offer insurance specifically tailored for gyms:

1. Hiscox: Hiscox is a well-established insurance provider in the UK, offering specialized coverage for various industries, including fitness centers and gyms. Their gym insurance packages typically include public liability insurance, which covers accidents and injuries that may occur on the premises. Hiscox also provides coverage for equipment, business interruption, and employer’s liability, ensuring comprehensive protection for gym owners.
2. Simply Business: Simply Business is an online insurance broker that offers tailored insurance solutions for small businesses, including gyms and fitness facilities. They provide public liability insurance to cover accidents and injuries to clients or third parties on the gym premises. Additionally, they offer coverage for business equipment and contents, ensuring that gym owners can replace damaged or stolen equipment without significant financial burden.
3. Gym Insurance HQ: Gym Insurance HQ specializes in providing insurance solutions exclusively for gyms and fitness businesses across the UK. They offer customizable packages that can include public liability insurance, professional indemnity coverage for trainers, property insurance, and business interruption insurance. Gym Insurance HQ understands the unique risks faced by gyms and can tailor insurance policies to suit individual business needs.

When selecting an insurance provider in the UK, gym owners should carefully review the coverage options, policy limits, and exclusions to ensure they have adequate protection. Seeking advice from insurance professionals who have experience in the fitness industry can help gym owners make informed decisions and find the best insurance coverage for their specific requirements.

Financing your gym business

Financing your gym is a critical aspect of turning your fitness business dream into a reality. Opening a gym requires a significant upfront investment to cover various startup costs, equipment purchases, facility leasing or renovation, and operational expenses.

Many entrepreneurs seek external funding sources to support their gym venture, and there are several options available depending on your financial situation and business plan.

Some common financing methods include securing loans from banks or financial institutions, seeking investment from private investors or venture capitalists, using personal savings or contributions from partners, or exploring government grants or startup competitions.

It’s essential to create a detailed business plan and financial projections to present to potential lenders or investors, demonstrating the viability and profitability of your gym business.

By carefully assessing your financing needs and exploring various funding avenues, you can secure the necessary capital to launch and grow your gym successfully.

Market your gym business like crazy