Sport is a promising sector. Widely developed as a franchise, each concept has its own strengths that should be clearly identified before launching. Discover, in 10 steps, our guide to opening a gym.The practice of a sporting activity is more and more popular.
Here are the 10 steps to open a gym franchise.
Step 1: Define your Project
Making the choice to create a business is not trivial. In return for obvious personal satisfaction, the pace of life changes, time spent with family is lacking, responsibilities and risks increase. Before knowing whether or not you are ready for all these sacrifices, you must first test your motivation … and gain the support of those close to you. Once this life path has been drawn, you will have to define your project more precisely. What type of gym do you want to create? A big, a small? For what purpose and with what means? Or ?
Step 2: Study the Market
Market research is an important step that should not be overlooked. It should allow you to better understand the major trends and players in your market, to verify the opportunity to get started, to sketch the first sales assumptions. More impressive than it sounds, market research is all about opening your eyes and ears to feel the pulse of your project. During this step, you will have to answer many questions, including: What are the major market trends? Who are the potential customers? What are their needs ? How do they choose their gym? Who are the competitors? Where are they ? What do they offer and at what price? What is the regulatory environment in my market? What are the possible opportunities and threats? Does your project bring a “plus” compared to the competition?
Step 3: Compare the Brands / Choose your Franchisor
In parallel with your market research, you can begin to identify the brands that would best correspond to a franchise development of your project . In this step, the easiest is to proceed by elimination using the good old funnel technique. Leave aside concepts that do not fit into your budget and those that already have a representative in your area. Then skim again by eliminating concepts that don’t exactly fit with your vision of the ideal gym. At the end of this first big triage, you should only have a handful of concepts left that you can study in more depth. To better compare, make a file per network with the main elements that are important: initial training and continuing training, consistency of know-how, entry fee, overall investment, personal contribution, profitability at 2 years, needs in staff, network size, reputation, brand reputation, etc. On the basis of these files,ask the network for documentation to find out more and go to the meeting days regularly organized by the networks to better feel the atmosphere, understand the discourse, etc. Then take the time to visit some best franchise gyms with the same size and environmental characteristics as your future project. By combining all the elements gathered formally and informally, you will need to be able to choose the franchisor that matches your desires, your budget, your way of seeing sport and your strategy.
Step 4: Create a Business Plan
With your franchisor chosen, it’s time to move on to creating your business plan. What does this step consist of? Ask the quantified elements that will serve as a guide to manage your financing plan, the launch of the activity and its sustainability. Several hypotheses (high, median, low) need to be worked out. Depending on your estimated expenses, you will have an overview of the minimum turnover to enter each year to start making profits (breakeven point).
Among the Expenses to be Expected, we can Mention in Particular:
- registration fees, notarial deeds and fees
- lease rights, no door and rents
- material investments (equipment of the sports hall)
- personnel costs
- the communication / promotional budget
- insurance costs
Step 5: Finance your Creation
Once the business plan is complete, it’s time to move on to setting up the financing plan for your fitness franchise. To the personal contribution constituted by personal savings, State aid of the Arce type , honor loan, Love money , are usually added a bank loan as well as leasing loans for the purchase of equipment.
Step 6: Get Started
Once the company has been created, the arrangements made, the declarations recorded, all you have to do is open the doors of your establishment by accompanying this opening with a large-scale promotional action.
Author Bio
Written by Meghan Hale, a content writer, and editing machine. She is working with La Dolce Studio. You’ll find me yelling at my dog to stop barking, whether it be at the neighbors or on a long afternoon walk
