Saturday, July 14, 2012

Starting A Gym Business



Last night was one of those "I will sleep now, I do not want to talk to you anymore" nights between me and my husband. For a few weeks now, he has been into gym and fitness activities. Actually, he has been going to gym everyday for as I said few weeks now. He mentioned about going into gym business as a profitable venture. Disappointing him was none in my list but I do no want to give him false hope. Despite of being tired for the whole day, I got myself seated and explained. But then, he is not a finance person so explaining ROI, net income and rate of return were not in his vocabulary.

So I ended up watching him stretch his muscles and ending the call eventually.

According to the person he inquired about starting a gym business, it would require Php50,000 investment to put up a gym business. In our residence area, the entry fee of going to gym is only P20. So roughly if you have only 5 loyal customers a day, assuming the daily operating expenses would only P70, that would leave you a P30 net income per day times 30 days to get the monthly income times 12 to get the yearly income of only P10,800. Not a good picture if this business would only be your source of income. To compute for the ROI or return on investment, divide the investment by the yearly income so Php50,000/10,800=4.63 years or 4 years and 8 months before you can have the initial investment recovered. Anything you earn after the investment recovery would be your profit in putting up a business.

That is too long!

But then those are assumptions so you would really be needing a good location and a good business plan

Here's good article in putting up a business so read along with me.

Getting and staying in shape is becoming a priority among more and more people, but the challenge lies in making time for it. That’s something aspiring gym owners need to consider before entering the glamorous world of profiting from other people’s desire to sweat. It isn’t enough to build a gym and hope that clients would come. You must find ways to help people overcome excuses that keep them from getting fit.
Address these concerns, and you’re on your way to success, according to Joana Piñon, co-owner of 360 Fitness Club, a circuit training and fitness facility with branches in Makati City and Pasig City. In 2010, Piñon and her college classmates put up 360 as an alternative to the traditional gear-heavy gym setup. Piñon stresses that in this business, a spirit of friendly accommodationand honest practicality are key factors to success. Here are other important issues a would be gym owner should consider, according to Piñon.
Checklist:
  • Financing
  • Equipment
  • Personnel
  • Space
  • Crowd Control
  • Gym Attractions
  • Location
  • Flexible Packages
  • Alternative Activities
  • Express Gym
Read the full article here
source: entrepreneur.com.ph


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2 comments:

  1. This blog is very helpful for me as I want to open a gym business Your blog give me a very helpful information in related stuff.

    ReplyDelete
    Replies
    1. Hi Mariya. Thanks for stopping by!

      Delete

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