thinking of opening a gym

[Mike250]

what are your thoughts about starting or setting up a hardcore gym facility, i.e generally a facility for people committed to actual body-building and/or power lifting?

[thatwaslight]

Where how much cash you got?

[Phedder]

I'd suggest you have a chat to Steak, OldBull, and Dr Squat if you're seriously considering this. Would be a wealth of knowledge and advice for you I'm sure.

[thatwaslight]

if you build it near a wendys/kfc and install a pie warmer in the gym you might be able to steal a few from CBB... :grin:

[Mike250]

I am in Dunedin at present. Cash available is 120,000 (I was thinking between 80,000-200,000 for this sort of venture)

[DANIEL8]

open it in hamilton. in need of one here!!

[Ronin]

Save your money. Put it into another venture, or another city. Dunedin can't really support another gym, especially one with such a narrow focus. Your "serious lifters" are already in a gym, most seem to have gravitated to either Sky or Olympic, and you'd have a struggle drawing them away. Considering that a new gym has recently sprung up here, and one of our 2 supplement shops has just gone tits up, I'd say that trying to open a facility like the one you talk about would be a great way to lose your money.

If you're that keen to get rid of some cash, can I suggest you send me a cheque made out to a really worthy charity, Central Amazonian Spiritual Healers. To make things easier, just use their initials.

[Mike250]

so you don't think I can compete with them for said lifters? hmm Al-right, maybe I'll put it into a burger venture then.

[tinytraps]

so you don't think I can compete with them for said lifters? hmm Al-right, maybe I'll put it into a burger venture then.

Probably not dude. As well as these above mentioned gyms you also have the powerdome (seriously awesome gym!). If your looking to make a profit go commercial. This is something you would do as something on the side not to pay the bills unless your willing to pump some serious cash into it.

[thatwaslight]

plenty of those too mate...hardcore gyms will never be really profitable so don't do it unless your doing it for the love of it. i think you should talk to a financial adviser or business mentor before you pour a hole lot of cash into a hole.

[AgentOrange]

I am in Dunedin at present. Cash available is 120,000 (I was thinking between 80,000-200,000 for this sort of venture)

Dear Friend,

I am Mr. Dramane Yadi, I work in the Accounts/ Operations Department of a Prime banks here in Abidjan Cote D'Ivoire. I actually have an urgent and very confidential business proposal for you. I got your contact from Internet and decided to contact you immediately.

On January 10th 1994, An American Oil Consultant/ Contractor with the Societe Ivoirienne De Raffinage (SIR), Mr. George Norman Wesley, made a number time (fixed) deposits valued at US$8,750,000 (Eight Million, Seven Hundred & Fifty Thousand United States Dollars). On investigation, it was discovered that Mr. Wesley died along with his family in a plane crash. On further investigation, I discovered that Mr. George Norman Wesley did not leave a WILL and all attempts to trace his Next of Kin proved abortive. I therefore made further investigation and discovered that Mr. Wesley did not declare any Next of Kin in all his official documents, including his Bank Deposit paper work. This sum of US$8,750,000 is still floating in the Bank and the interest is being rolled over with the principal sum at the end of each year. For the past 5 to 6 years now, no one has ever come forward to claim the fund.

According to the Ivoireinne Laws, at the expiration of 7 (seven) years, the money will revert to the ownership of the Ivoireinne Government if nobody applies to claim the funds. That is what gave way to this deal.

Consequently, my proposal is that I will like you as a foreigner to stand in as the Next of Kin to Mr. George Norman Wesley so that the fruits of this old man's labour will not get into the hands of some government officials.

To facilitate the transaction therefore:

1. I would like you to provide me with a viable account details where this fund could be safely transferred into as Next of Kin of the former depositor.

2. We do not anticipate any risk/problem whatsoever, as all the loopholes has been taken care of and there is no risk involved in this deal. All the Computer work for this transaction will be done by me, including your name as the new Beneficiary of this fund.

You will be entitled to 30% of the total amount as your commission after the transaction. If you are interested and capableof handling this deal, please write. On receipt of your response, I shall then provide you with more details on how to go about it.

Please note that this is very confidential. And as I am still a staff with the bank here. I would not like to be known or mentioned as having knowledge of the deal but I will be giving you inside information on what to do.

Awaiting your urgent reply. Do not forget to include your direct telephone and fax numbers for further communication.

Faithfully Yours,

Mr. Dramane Yadi

[Android]

All good advice.

I think it's a great life-style choice if that's what you're after, to be surrounded by like-minded people. But business-wise it's got a limited market so it's got a limited income.

If I was to open a gym it'd be a new 24/7 gym, they are hugely popular up here in Auckland and I'll be re-joining one when I finish competing and come back from xmas hols for the off-season. As an owner there's less committment to open up early (you don't open up a 24/7 gym LOL the people come and go as they please). You aren't "having" to hire staff that try to look busy. You get cleaners in a few times during the day and night that's it. You can take on more members which offsets the lower subscription price, as they trickle in over all hours and you aren't holding pump classes which cause an influx of crowds in your limited space. Lots of positives.

You are still surrounded by like-minded people but you also have variety.

I've trained at Miada, BTS etc and although I consider myself to be quite focused I still enjoy seeing girls walking in, people on treadmills walking/ jogging, and dance music blaring on the TV screens. I don't like being surrounded by other sweaty, large men...for some strange reason it's just not my thing...call me strange.

[Mike250]

Oh I understand that its a narrow market-the challenge is there are more general fitness enthusiasts or "hey I need to get in shape folks" than there are those committed to actual bodybuilding- but that also means the facility does not have to be that large (at least not initially) nor will I need to offer a lot of frills. the more specialized the easier it is to focus my efforts. I've noticed most gym owners assume their target customer is everybody who works out. As for the business mentors, apparently they only offer their service if you have an established business in the first place. They would be useful in the later stages. For now though its time to do some positioning (market analysis) and prepare a complete business plan.

Thanks for everyone's input on the matter.

[Grover]

Since you seem to be serious about it sit down and do up a prelim budget

That'll tell you how many peeps and how much you will need to charge them to break even

Then you will have an idea of whether u can swing it or not

from previous threads most of us are tight arsed buggers who don't want to spend squat to squat!

[Gym rat]

If I was to open a gym it would cater for hard core trainers .My gym would have db's that go up to 100kg db's,stack loads of hammer strengh machine,three lifting cages,couple of leg presses the latest state of the art machines from the states..In the way of music my gym would have hard rock blasting out and zimmer frames for hire for people who have a hard time to walk out the gym after they have had a hard quad or hamstring train.

[Android]

Oh I understand that its a narrow market-the challenge is there are more general fitness enthusiasts or "hey I need to get in shape folks" than there are those committed to actual bodybuilding- but that also means the facility does not have to be that large (at least not initially) nor will I need to offer a lot of frills. the more specialized the easier it is to focus my efforts. I've noticed most gym owners assume their target customer is everybody who works out. As for the business mentors, apparently they only offer their service if you have an established business in the first place. They would be useful in the later stages. For now though its time to do some positioning (market analysis) and prepare a complete business plan.

Thanks for everyone's input on the matter.

Good on ya mate, hope it pans out for you cos everyone needs choices.

Watch out for GymRat, if he's giving out zimmer frames at his gym you might wanna do the same

[Optimass]

If I was to do it again I'd invest the money in the real estate first and then leverage of the equity to finance the equipment.

24/7 has its pros and conns ... like Android has pointed out it requires lower time invested but if you are paying a good sized rent to be in a more marketable catchment retention is driven by good service and great atmosphere. Opportunity to farm more income is better .... :nod:

[iwilson]

As an actual gym owner, I'd say go for it if the numbers stack up. But numbers can be tricky things - there is always the temptation to make the numbers work in your favour.

Costs

Rent plus associated costs (you pay for everything with a commercial lease, like the landlords insurance, fire alarm test, alarm monitoring, building WOF, rates etc).

Power

Insurance

Water

Staff

Equipment (Sky is the limit here). Benches, plates, racks, dumb bells, machines, platforms, cardio, flooring, straps, belts etc. Buy cheap and your target market will definitely notice, plus increased maintenance costs. Factor in replacement costs down the road.

Fitout - changing rooms, lockers, reception area, gates, plumbing, electrics, fixtures and fittings.

Maintenance of equipment and spares - if you can do itself all the better as techs will charge like a wounded bull.

Cleaning - Cleaners, bog paper, paper towels, disinfectant, shower gel etc (you wouldn't believe how many paper towels I go through.

Signage

Advertising and marketing - a necessary evil to get the word out. Yellow pages, newspaper, flyers, brochures etc

Telephone and website - can be significant if you want to be taken seriously.

Apra and PPNZ music licensing - they'll ping you for any TV's, background music etc. Don't bother and you're facing a $150k fine when found out.

Billing companies - if you handover membership fees to an external billing company then they'll clip approx. 7% of all DD payments (I do them myself), eftpos, member management software, merchant banking fees.

Accountant and lawyer fees - significant when starting up, you want the right structures in place to avoid personal liability in case it all goes tits up.

Cash - you're going to burn though plenty while waiting for membership income to exceed costs. No point in spending 120 - 200k to get going to discover you haven't got the cash flow to keep going.

Your salary - what do you need to live on?

To make it in this business you need to be business smart, it's not good enough to be passionate about the business. You've got to be able to negotiate great deals with suppliers and landlords and be able to run on the smell of an oily rag. A hardcore Club is never going to make much money, to few members working your equipment hard.

In saying all of that I look forward to everyday and have watched the Club grow over the years to the point it makes a reasonable living. I could have got there faster if I had compromised on equipment but I can honestly say hand on heart that everything that goes in is best in class imho and the members notice.

Good Luck!

[Richard_P]

Stick with your dream bro. If Dunedin doesn't want you, find a city that does.

[olympia]

Open a strip club bro. One with decent chicks that can work the pole

[Optimass]

As an actual gym owner, I'd say go for it if the numbers stack up. But numbers can be tricky things - there is always the temptation to make the numbers work in your favour.

Costs

Rent plus associated costs (you pay for everything with a commercial lease, like the landlords insurance, fire alarm test, alarm monitoring, building WOF, rates etc).

Power

Insurance

Water

Staff

Equipment (Sky is the limit here). Benches, plates, racks, dumb bells, machines, platforms, cardio, flooring, straps, belts etc. Buy cheap and your target market will definitely notice, plus increased maintenance costs. Factor in replacement costs down the road.

Fitout - changing rooms, lockers, reception area, gates, plumbing, electrics, fixtures and fittings.

Maintenance of equipment and spares - if you can do itself all the better as techs will charge like a wounded bull.

Cleaning - Cleaners, bog paper, paper towels, disinfectant, shower gel etc (you wouldn't believe how many paper towels I go through.

Signage

Advertising and marketing - a necessary evil to get the word out. Yellow pages, newspaper, flyers, brochures etc

Telephone and website - can be significant if you want to be taken seriously.

Apra and PPNZ music licensing - they'll ping you for any TV's, background music etc. Don't bother and you're facing a $150k fine when found out.

Billing companies - if you handover membership fees to an external billing company then they'll clip approx. 7% of all DD payments (I do them myself), eftpos, member management software, merchant banking fees.

Accountant and lawyer fees - significant when starting up, you want the right structures in place to avoid personal liability in case it all goes tits up.

Cash - you're going to burn though plenty while waiting for membership income to exceed costs. No point in spending 120 - 200k to get going to discover you haven't got the cash flow to keep going.

Your salary - what do you need to live on?

To make it in this business you need to be business smart, it's not good enough to be passionate about the business. You've got to be able to negotiate great deals with suppliers and landlords and be able to run on the smell of an oily rag. A hardcore Club is never going to make much money, to few members working your equipment hard.

In saying all of that I look forward to everyday and have watched the Club grow over the years to the point it makes a reasonable living. I could have got there faster if I had compromised on equipment but I can honestly say hand on heart that everything that goes in is best in class imho and the members notice.

Good Luck!

Whats PPNZ cost? Is this the thing the Australian industry have been fighting?

[Ronin]

Open a strip club bro. One with decent chicks that can work the pole

Now you're talkin. Dunedin can definitely use another one of those :nod: Hell, I might even consider a return to door work if you're keen :wink:

[iwilson]

Whats PPNZ cost? Is this the thing the Australian industry have been fighting?

It used to cost approx. $180 per year. The Aussie equiv. the PPCA won their case and as a result the PPNZ have based their new rates on the Australian decision. This will mean a increase of at least 400% for my Club.

More info here http://site.fitnessnz.co.nz/music-licensing/

Interestingly they have done a deal with Fitness NZ to collect and administer the fees Clubs pay.

[Android]

Whats PPNZ cost? Is this the thing the Australian industry have been fighting?

It used to cost approx. $180 per year. The Aussie equiv. the PPCA won their case and as a result the PPNZ have based their new rates on the Australian decision. This will mean a increase of at least 400% for my Club.

More info here http://site.fitnessnz.co.nz/music-licensing/

Interestingly they have done a deal with Fitness NZ to collect and administer the fees Clubs pay.

Good solid advice mate in all your posts mate :clap:

[severe]

I am in Dunedin at present. Cash available is 120,000 (I was thinking between 80,000-200,000 for this sort of venture)

Dear Friend,

I am Mr. Dramane Yadi, I work in the Accounts/ Operations Department of a Prime banks here in Abidjan Cote D'Ivoire. I actually have an urgent and very confidential business proposal for you. I got your contact from Internet and decided to contact you immediately.

On January 10th 1994, An American Oil Consultant/ Contractor with the Societe Ivoirienne De Raffinage (SIR), Mr. George Norman Wesley, made a number time (fixed) deposits valued at US$8,750,000 (Eight Million, Seven Hundred & Fifty Thousand United States Dollars). On investigation, it was discovered that Mr. Wesley died along with his family in a plane crash. On further investigation, I discovered that Mr. George Norman Wesley did not leave a WILL and all attempts to trace his Next of Kin proved abortive. I therefore made further investigation and discovered that Mr. Wesley did not declare any Next of Kin in all his official documents, including his Bank Deposit paper work. This sum of US$8,750,000 is still floating in the Bank and the interest is being rolled over with the principal sum at the end of each year. For the past 5 to 6 years now, no one has ever come forward to claim the fund.

According to the Ivoireinne Laws, at the expiration of 7 (seven) years, the money will revert to the ownership of the Ivoireinne Government if nobody applies to claim the funds. That is what gave way to this deal.

Consequently, my proposal is that I will like you as a foreigner to stand in as the Next of Kin to Mr. George Norman Wesley so that the fruits of this old man's labour will not get into the hands of some government officials.

To facilitate the transaction therefore:

1. I would like you to provide me with a viable account details where this fund could be safely transferred into as Next of Kin of the former depositor.

2. We do not anticipate any risk/problem whatsoever, as all the loopholes has been taken care of and there is no risk involved in this deal. All the Computer work for this transaction will be done by me, including your name as the new Beneficiary of this fund.

You will be entitled to 30% of the total amount as your commission after the transaction. If you are interested and capableof handling this deal, please write. On receipt of your response, I shall then provide you with more details on how to go about it.

Please note that this is very confidential. And as I am still a staff with the bank here. I would not like to be known or mentioned as having knowledge of the deal but I will be giving you inside information on what to do.

Awaiting your urgent reply. Do not forget to include your direct telephone and fax numbers for further communication.

Faithfully Yours,

Mr. Dramane Yadi

I had to laugh. :pfft: