In the business world there is a saying: "As long as you have €1, you can have your own business." In fact, many successful entrepreneurs state that more important than having money is knowing what to do with it. This is a big difference between successful and unsuccessful people.
When we think about opening a gym, the scenario is the same. More important than having money to invest is knowing how to invest. There are many questions, such as, Which flooring to choose? Where to open? What type of gym? etc. And these questions can be answered in various ways.
- Market analysis - This can be done in several ways, but it's important that it's done. It can be:
- a PEST analysis - where we analyze political-legal factors (what legal requirements a gym needs to comply with, what kind of government support exists, what policies encourage physical activity, etc.), economic factors (available investment value, market and industry value, average monthly fee value, etc.), social factors (demographics, number of inhabitants, type of socio-economic stratum, region, etc.) and technological factors (type of service to implement, technological resources used, consultancies, etc.).
- or a transactional context analysis, where we analyze suppliers, customers, competitors, and the community.
The important thing is that this analysis happens, and that decision-making is as assertive as possible.
- Market segments - There are various market segments, with very different characteristics. They operate differently, have a different target audience, different average monthly fees, etc. Opening a gym without defining whether it will be “either fish or fowl” can lead to failure.
- High end: These are the so-called Premium gyms. They usually have everything included, more personalized service, average monthly fees above €60, heavily reliant on human resources (especially specialized ones).
- Mid end: The so-called mid-cost gyms. They offer good service, with many options included, at a more affordable price.
- Low end: Low-cost gyms, very technological (to reduce the value invested in human resources), more impersonal, average monthly fees below €25, usually large and spacious.
- Boutiques: Specialized spaces (such as PT studios, Pilates studios, CrossFit Boxes, etc.), where they offer a maximum of 2 or 3 services, higher prices, more personalized service.
- Medical Integrated - Associated with clinics or with staff from the health services area, where gym, health, and well-being services are found in the same space. Usually more expensive, but with integrated and multi-disciplinary programs.
- Other models: Family gyms (where various services for children, parents, and grandparents can be found), hybrid gyms (integrating, for example, paddle, running tracks, tennis, climbing, etc., with in-person and online services).
It is of immense importance, after analyzing the market, to define where you want to position yourself. The investments in different types of segments vary greatly, as do human resources and structure.
- Taking action - After understanding where you will invest and how you will position yourself, it's important to take action. Choosing the best partners is fundamental. Among these partners are suppliers, who play a decisive role in implementing your project. They can help you with your layout, choosing machines, flooring type, changing room equipment, among many other things. These companies are specialized and experienced, as they regularly equip various gyms, so their support can be important in several areas:
- Design - architects don't always have the best vision for implementing a gym. Each brand of fitness machines has different characteristics (size, volume, electrical needs, etc.), so after you have the floor plan of your space, it's necessary that the machine supplier gives you support to choose the best machines, according to what you need for your business, maximizing the space you have.
- Investment advice - there are various fitness equipment, also divided by price. It is necessary to understand that having top-of-the-range equipment will not make your business profitable and successful. It is necessary to combine the market analysis you did, with the chosen segment, the value you want to invest, and the design of the space. A good choice of equipment should take into account all these variables.
- Energy advice - Many brands already provide this type of advice. Energy will be one of the consumables that will take a huge slice of your business expenses. Knowing what type of energy you should use and what its impact will be on your business is fundamental.
- Support and maintenance - usually in the first few months of operation, no gym has equipment problems. But with constant use, it often happens that after a few months, equipment maintenance is needed. Choosing a supplier that offers this service is fundamental, as it will influence member retention and the profitability of your business.
If you follow this step-by-step guide, most of your questions will be answered. Be methodical and courageous, and team up with partners who will truly help you.
Good business.
