This depends on a huge number of variables - location, size, type of gym, new or used equipment. You can set up a small gym for as little as £60 000, if you have a solid plan and are willing to go down the route of leasing. You'd also likely be the sole member of staff in the beginning. On the other end of the scale, if you wanted to set up a large (10 000sqf +) facility with all new equipment and no leasing, you'd be looking at £300 000 upwards. Either way, a comprehensive business plan is certainly something you'll want to have before you start, so that you can be adequately prepared.
The reason I started this was because I didn't have anything like it to turn to and I wish I did.
When I set up in 2017, I made a number of costly mistakes. I was able to course correct luckily and I'm still here and now thriving. However, I could have saved money, time and stress, if I had someone to hold my hand in the beginning.
Secondly, the UK is now packed with deep pocketed chains, often controlled by hedge funds. The independent sector needs all the help it can get!
Key areas I can assist with are:
If you really are passionate about exercise, then yes.
However, theres a bit more to it. Ask yourself how many gyms operate in the area that you're looking at, what are the prices like, are there plans for new houses?
Unless you have an investor or a very generous budget, are you willing to be the receptionist, cleaner and everything in between in the early years?
There are four big players in the UK gym market. These are Pure Gym, Gym Group, JD Gyms and Energie Fitness
Pure Gym is by far the biggest in terms of number of gyms and market share, with 346 gyms and over 1 million members. At an average price of £20.99 per month, they are very much the leader of the budget gyms. Pure Gym is owned by Leonard Green & Partners, an American private equity investment firm, founded in 1989 and based in Los Angeles.
Gym Group is the cheapest of the big gyms, with a monthly price of £19.99. Listed on the London Stock Exchange, constant and aggressive expansion is the theme, with shareholders to appease. At 200 gyms and growing, they have a fair chunk of the market.
JD Gyms, owned by JD Sports Fashion, listed on the London Stock Exchange has 230 gyms and charges an average of £25 per month.
Last of the big four is Energie Fitness, owned by RM Funds, with over 100 gyms nationwide. Their model is largely based on franchising.
The big chains have their claws in deep and where they used to be satisfied with big units in big towns, they are now starting to move into smaller towns around the country. This is driven by shareholders - shareholders want to see consistent growth. The large budget gym model in the bigger towns has been fully exploited, and the smaller towns are the next on the list for expansion.
What are the big chains strengths?
1. Money - These guys have deep pockets and can afford to come in and refurbish an old building, buy a car park, and drop £250k worth of equipment into it.
2. Marketing - these chains have well developed marketing teams, with enormous budgets
3. Classes - big studios and a big mix of classes on offer, plus on demand classes
4. Low membership price - they can achieve this through sheet volume of people and almost no staff costs
5. 24 hour member access
6. Brand - well known names
What are their weaknesses?
1. No real atmosphere
2. Lack of community
3. No staff to speak off
4. The gym floors are generally a mess
5. Often over-crowded
6. Slow to repair broken / damaged equipment.
7. Once they are setup, they often don't replace equipment for 5+ years.
As an independent, you probably can't compete on money, marketing or brand. You'll need to be smart with your resources and play to your strengths.
Something that always works is to make sure your facility is the absolute best it can possibly be. From cleanliness to the repair of broken machines to how the people on the front desk interact with members. The big chains wont be doing this - they compete almost solely on price. Not everyone chooses a gym on price - some want community, better equipment and to feel valued as a member.
If you're able to build a reasonably priced gym, with top quality equipment, thats clean and has nice people working in it, you're a lot of the way there already.
In 2017, I set up Gainz Fitness & Strength in St Neots from scratch. This is a relatively small town centre gym. It has a solid community of people and a great atmosphere.
In 2019, we bought a gym trading as World Gym in Bedford. The gym was in a run down sorry state.
Over the past 4 years, we've transformed it into a well known gym where bodybuilders and others feel at home.
I'm certainly not finished yet, but I feel I'm able to use what I've learnt so far to help others.