You love to work out. You love gyms and gym culture. Surely, you’d be a great fit to own a gym, right? Not so fast. Owning a gym may sound like a lot of fun until you dive deep into the process. At the end of the day, it is a business in a very versatile and unpredictable market. If you go in with the mindset of “running a gym” instead of “running a business”, it could lead to a tough road. In this post, we will discuss reasons why gyms fail and how to prevent failure as a gym owner.
If there was one thing that was learned from the COVID pandemic, it’s that businesses with a solid business plan and a versatile structure came out on top.
The fitness industry can be very unpredictable, and you must make sure you are prepared for anything. From lawsuits to major repairs, you need to have an action plan in place to ensure you can keep things going.
Targeting the right demographic is critical for success. If you fail to understand and cater to the needs and preferences of your target audience, you risk missing out on potential members. By identifying the ideal demographic and aligning your gym’s offerings to their preferences, you will create a strong customer base and increase your chances of success.
One common mistake is spending too much time working IN your business and not enough time working ON your business. Don’t open a new gym thinking you’ll get to devote every day to coaching and hanging out with members; that’s what employees are for. As the boss, you have marketing plans to execute and financials to pay attention to. There are some gym business secrets, but in reality, you need to be an experienced operator to have a successful gym business. Your passion for fitness will only get you so far.
This may seem like a no-brainer. Things happen, repairs need to be made, equipment breaks, staff need raises – there is always something. It’s important to not make financial decisions until you are sure you are able to afford it.
The pricing structure and membership fees of a gym can make or break its success. Setting your prices too high could push away potential members, especially in an area with cheaper options. While having cheap rates can lead to financial instability and make it challenging to maintain the quality of equipment and facilities. Striking the right balance between affordability and profitability is crucial for survival.
Getting the word out about your business in the early days is not an easy task, but make sure you have all the ingredients for success available to you.
Ensure your branding and marketing style match the demographic of your desired audience. If you’re doing elderly fitness therapy classes, there’s no point in advertising on TikTok. Take some time to discover where your target audience spends their time, and then ensure you craft the right message to get them into your gym.
You may have a great fitness business with top-notch marketing and a wonderful gym community, however, if your gym is not located in a heavily populated location, it’s going to be hard for long-term success. When scouting for your location, you need to be extremely thoughtful in finding a location that’s easy to reach and find.
Owning a gym is never easy. Day in and day out, gym owners face challenges that can make or break their success. As a gym owner, it’s important to know why gyms fail and make a conscious effort to ensure that doesn’t happen with your own space. Look at your gym. In what areas are you thriving, and where could you improve? By addressing these challenges, you can set the stage for continued success.