Starting new business: How to start with a gym? Investment and other details

Business Type

There are four business models of gyms: boutique, traditional gym, full service, and franchises. To open a boutique business requires an investment of 300.00 to 500,000 INR and the return on investment is six months. The boutique is a trend model since only one space is required to teach and a couple of devices, either bicycles or MX4, which are devices that provide complete training in 40 minutes, yoga or pilates classes can also be given. Guillermo says that this type of business is characterized by the personalization that is given to users because the classes are 10 people maximum. 

The traditional gym is implemented in an average space of 400 square meters, it implies more amount of cardio equipment, integrated weight and free; Here, showers are provided and the amount of investment goes from 500,000 INR to 4 million INR , depending on the amount of equipment and space. The return on investment is usually given to the year or year and a half.

The full service gym is different because it gives additional services, from massages, yoga classes, pilates or MX4. According to Guillermo, the investment amount can be 1 million or 1.5 million INR with a recovery time of three to five years.

There is also the franchise business model. At the moment, only Smart Fit has this and having one of these branches requires an investment of 1 million INR, with an average total investment of 16 million INR and an approximate return on the investment from the third year.

Where we exercise

Although more and more people are interested in exercising and maintaining a healthy lifestyle, in Mexico 42% of the population over 18 years of age practices some sport or physical exercise in their free time, according to data from the National Institute of Statistics and Geography.

Of these people who exercise, 62.8% do it in public places and 33.5% do it in private places such as gyms or sports clubs.

Guillermo reports that there are around 13,000 gyms in the country, of which only 3.5% belong to a chain.

How to start with a gym?

There are different business models to open a gym, but the main thing is to have passion.

If you are passionate about exercise and you plan to open a business, a gym is a good option. According to the International Health, Racquet & Sportsclub Association, an organization that gathers the members of the industry, the fitness market in Mexico has a value of 1,800 million dollars and has maintained a constant growth in the last five years of 20 percent.

There is a series of recommendations to open a gym, but the fundamental one, says Guillermo Maciel, general manager of Matrix Fitness, an exercise equipment marketing company, is to be passionate about exercise.

“If you want to be successful in this industry, you have to be passionate about the exercise, you have to live it, enjoy helping people to meet their goals, that’s vital. When this happens, the business is a success, because users identify your interest, “says the businessman.

Before opening the business, a market study is required to know the competition and the type of user, as well as an analysis of the area where the gym is to be established. Guillermo recommends that it be in an area close to housing or industrial complexes, even near a school.

“The main decision of a person to join a gym is proximity to work, school or home, then evaluate if you like machines and if you feel comfortable,” he says.

It is also important to have a statement of expenditures prior to opening, that is, to define all the expenses that will be incurred, how much money is needed to pay for them and how much time would be had, this will establish a price of memberships and monthly payments.

For example, in a space of 400 square meters, it will require two people to serve per square meter -which would be ideal. “You have to make a result of projected expenses, to say, these are going to be my income. I need 800 people and, if I charge 400 INR, this is my monthly wool. How much rent, electricity, payroll, and expenses. If it does not reach you, you have to raise your monthly payment. ”

In addition, the gym must make a pre-sale before opening to the public, so that when it opens there is a point of balance, and with the necessary customers to pay the expenses.