HI - I currently reside in New York and I am interested in opening my own gym. I do not want a large scale gym because I cannot afford it and also because I want to focus on personal training.

My boyfriend and I are both certified trainers and are planning to lease space and equipment.

Do you think that is a bad choice?

Karina:

Renting space to start your business is a good idea leasing the equipment will only make sence if you know exactly what you are getting into and what the actual equipment cost will be. Before you sign the lease compare the cost to acquire the equipment with a financeing transaction.

Your idea sounds good and your plan to start with a smaller operation makes economic good sence.

Get your business plan and financial projections together and see what the numbers look like. Do not commit any significant monies until you have a business plan.

Tom Rose

you definitely need a business plan in place. Figure out all your costs, count on a worst case cash flow scenario. If you sign leases on equipment make sure you know what your obligations are.

Good Luck, sounds like a great idea!

Allan Fried
Executive & Business Coach
www.careerintervention.com

Katrina,

Opening a small scale gym is the way to go because it will help keep your overhead down. One thing is that you will want to think about other profit centers within you rclub besides memberships and personal training. Maybe a pro shop and juice bar are low cost to start and easy to maintain. If you are interested in some books to help you our you should check out the books by Thomas Plummer. He has several very good books on opening and running a health club and goes in depth about the money and financing of opening a club. You can get his books on Amozon. If you have any questions I have worked in health clubs before and even was a General Manager for four years of a Gold's Gym. My email is coachdstrong@yahoo.com. Hope this helps.

Karina,

It will be difficult for you to find a favorable lease rate unless you have a company that can show that it has been in business for at least two years. You may be able to show that, as a sole proprietor, you have a track record and financials to show you have a two year history in the fitness industry. In the absence of that, financing companies will consider you a start-up and the financing options they will offer aren't reasonable. You may consider buying the equipment yourself. If you don't have the cash, consider buying it with credit cards and credit lines. The interest rates will likely be better than if you lease it and you can write off the entire value of the purchase and the interest paid over time.

Keep it small, keep it simple. You want to shoestring it and keep your overhead low. Remember, clients will patronize your studio because they believe in YOU, they are investing in YOU. Fancy equipment doesn't generate revenue, it is a liability. Get good, functional equipment at a reasonable price.

Best,

Jonathan Aluzas
www.arenafitness.com

Are you wanting to open a health club for the public, or a personal training studio?
I personally like the leasing, but Jonathan made a great point - the numbers don't favor you until 2 years in. In the case that you don't have the capital, then you may not have a choice. The primary concern for you should be keep your overhead to an absolute minimum. You may need to start out a barebones operation, and expand as the cash flow increases.
If you want to email me, we can talk more. I co-own a health club, a personal training company with multiple locations, and am opening another health club this fall. I have bought and leased, and when I started I had no money. You really can do this.
I have a website, www.fitnessconsultinggroup.com, you can get the free report and newsletter offered. You will find a lot more information related to your question.
I hope I have helped.

Nick Berry
www.fitnessconsultinggroup.com
rnberry4@yahoo.com

Karina,

My company works with health club start ups. You can exchange your industry knowledge and decent credit for a good leasing contract with some room for additional funding for cushion. Let me know if you still need some advice on this. info@cafundingllc.com
--Rashida

Possibly if you specialize and find a place with low rent you can design yourself or create a trendy image.

Daryl Des Marais
www.usabusinessgrowth.com
"Growing Small Business"