How to open a gym: a step-by-step checklist

If you’re wondering how to open a gym in the US, we’ve got great news. You’re getting ready to tap into a very lucrative market. The US has the single largest market for gyms and fitness studios worldwide.

This begs the question – is opening a gym profitable? In short, it all depends on how it’s set up, marketed, and managed. Like any other venture, a well-run, well-attended gym is a great investment. However, this also means that the gym has to be set up in the correct way right from the start.

The checklist below follows the order in which most new owners actually make these decisions, from choosing a niche and writing a business plan to licensing, fitting out a space, setting up your technology and running the gym once it opens.

What you need to open a gym #

Before you sign a lease or order a single rack, it helps to see the whole list in one place, since several of these steps depend on each other and some of them take months.

1. A niche and business model, so you know who the gym serves and whether it will be staffed, unstaffed or a mix of both
2. Relevant certifications if you plan to coach, which also strengthen your case with lenders and insurers
3. A business plan and the funding to carry the gym until membership covers its costs
4. A registered business, the licenses and permits your city requires, and the right insurance
5. A location that suits your members and your equipment, fitted out for heavy use
6. Gym management software and an access control system that talk to each other
7. A marketing plan that starts selling memberships before opening day
8. A plan for running and growing the gym once the doors are open

1. Choose your niche and business model #

Before you set out to get training and become accredited, you need to determine your niche in the health and fitness industry. After all, the accreditation you need to open a Pilates studio is a lot different from what you need to open a CrossFit gym.

Start by deciding which corner of the market you want to serve, and work your way from there. It pays to do some market research beforehand so you’ll know if there is a demand for the service you plan on offering. It is also helpful to speak to gym owners who specialize in that type of training to see what their experience has been.

Having a niche might sound scary at the beginning, who would want their target audience to be small and very specific? We asked Nicole D’Andrea, a Mindbody Certified Consultant, what she thinks about it. Here’s what she said:

I think we’re going to see a lot more specialization, and a lot more business owners finally embracing the concept of having a niche. It’s the only way to cut through the noise and stand out.

Most local markets already have a budget chain and at least one premium club, and both can usually beat a newcomer on price, size or the range of features on offer. The answer to this is simple: be unique!

Your niche also decides your business model, and the main options carry very different commitments:

• A full-service gym needs a large floor, a broad equipment range and enough members to fill it, so it carries the highest upfront risk.
• A small gym or boutique fitness studio, built around Pilates, yoga, cycling, boxing or strength training, works with less space and charges more per member because the experience is more focused.
• A private or personal training studio is often the most practical way to open a small gym, since a few regular clients can cover the rent while you build a reputation.
• A fitness franchise gives you a recognized brand, a supplier network and an operating playbook, but you pay franchise and royalty fees and give up much of your control over how the gym runs.

One decision to settle at this stage, well before you hire anyone, is whether your gym will be staffed during every opening hour. Many small gyms now run unstaffed or 24/7 hours alongside staffed peak times, which keeps payroll down and lets members train when it suits them, so the choice shapes your budget, your opening hours and the kind of entry system you will need.

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2. Do you need a degree or certification to open a gym? #

You don’t need a degree or a fitness certification to own a gym in the US, because no state ties gym ownership to a personal qualification. Certification matters as soon as you coach clients yourself, though, and lenders, insurers and members all read it as a sign that you know what you’re doing.

Once you’re sure what type of gym you want to open, get trained and certified in that area (if you aren’t already). Also, look into accreditation from groups like ACE (the American Council on Exercise). It’s not mandatory to have it to open a gym, but it can open a lot of doors, especially in terms of finance. A person that is specialized and certified has definitely more leverage with investors than someone that is only moved by their passion for fitness or entrepreneurship. Make sure that your profile is perfect for both creating plans for your subscribers and your investors.

Some examples of certifications:

• National Association of Sport Medicine
• American Council of Exercise
• International Sport Sciences Association
• National Strength and Conditioning Association

Whatever you choose, add current CPR and AED certification for yourself and anyone who trains members, since many insurers ask for it. A business degree isn’t required either, but you will need a working grasp of budgeting and cash flow, which is where the business plan comes in.

3. Write a gym business plan and secure funding #

A gym business plan is the document that turns your niche into numbers, and every lender or investor will ask for one. It should describe your concept and target members, the competitors near your chosen area, your membership pricing, your location, a forecast of operating costs and revenue, the point at which you expect to break even, and how you plan to market the gym. Your startup costs belong in it too, broken down line by line, because that budget is what you are asking people to fund.

Unless you have a lot of money saved up, the best way to finance a fitness venture is to get a business loan. In order to do so, you will need to put together a thorough business plan. Take a look at the US Small Business Administration website for guidance on tailoring suitable business plans before heading to a bank or lending institution.

Bank loans aren’t the only route, so it is worth knowing the main ones before you apply:

• SBA-backed loans, including the 7(a) program and microloans of up to $50,000, which suit smaller studios
• Equipment financing or leasing, which spreads the biggest single expense over several years
• Private investors or a business partner, who will expect evidence of demand, such as a waitlist or presale numbers, when your concept is new to the area
• Founding member presales, which bring in cash before opening and prove to lenders that people will pay

Do not underestimate the figure of business consultants at this stage. Many of them offer a free session so that you can ask them your questions and evaluate whether they can help you or not. Make sure they are certified, like the consultant we mentioned earlier in the text, and prepared to answer all questions you might come up with. Free mentoring is also available through SCORE and your local Small Business Development Center, both of which are supported by the SBA.

Don’t forget to calculate your security costs. An access control system, video surveillance, and panic buttons are the security foundation to keep you, your equipment, and members safe. The initial gym access control investment can save you a lot of money in the long run, especially considering a 24/7 gym. Planning for it now also costs less than retrofitting doors and wiring once the build-out is finished.

4. Get gym licenses, permits and insurance #

Usually, legal requirements for opening a gym come from a combination of business registration, local building rules and the services you plan to offer. You’ll need to check on how your state defines the type of gym you want to open and research its permit requirements. It differs from one state to the next.

For most gyms in the US, the baseline looks like this:

• A registered business structure, usually an LLC because it separates your personal assets from the gym’s liabilities, along with an EIN from the IRS
• A general business license from your city or county
• Zoning approval and a certificate of occupancy confirming the space can legally be used as a gym, followed by a fire inspection that sets your maximum occupancy
• Registration under your state’s health club or health spa law where one exists, since several states regulate how gyms sell prepaid and long-term memberships and some require a bond
• Public performance licenses from music rights organizations such as ASCAP, BMI, GMR and SESAC if you play music on the gym floor or in classes, which many new owners only discover after opening

However, that’s if you’re only planning to open a basic, stock-standard gym that offers a space to sweat and a few classes. This changes when you upgrade your offering. If you’re planning on offering childcare, selling food and drink, or offering spa treatments, other permits and licenses come into play. Saunas, pools and showers can also bring health department inspections, depending on your city.

Insurance is the other half of this step. General liability insurance covers injuries to members and visitors, professional liability covers the advice your trainers give, property insurance protects the equipment, and workers’ compensation becomes mandatory in most states once you have employees. Pair your policies with a liability waiver that every member signs at registration, and have a local attorney review both the waiver and your membership contract, because the rules on cancellations and auto-renewals vary by state.

5. Find your location and equip it #

Choosing a location #

Once you know what type of financing you qualify for, you can start looking around for suitable premises. Don’t do so blindly. Do research on the areas your key demographic frequents and set out to find a location where there is a large concentration of these consumers.

A gym also asks more of a building than most retail tenants do, so check the space itself before you fall for the neighborhood. You need zoning that permits fitness use, enough ceiling height for racks and overhead lifts, floors that can take heavy equipment, and ventilation and HVAC sized for a room full of people exercising.

Noise travels too, which means dropped weights above another tenant can turn into complaints, so ground-floor units are usually easier to run. Showers and changing rooms add plumbing work, and that is where a tenant improvement allowance, negotiated into the lease, can save you a significant share of the build-out.

Buying or leasing equipment #

A gym is only as good as its equipment. Fitness equipment can be bought or leased. Both options have their benefits. Leasing is less expensive in the short term and allows you to test out new tech before taking the plunge. It also normally includes equipment maintenance.

Buying, on the other hand, is more expensive in the short term but saves you money in the long run. It also remains your property.

Refurbished commercial equipment sits between the two, offering most of the durability of new machines at a lower price, provided it comes with a warranty. Whichever route you take, buy for your niche first and expand later, because a strength gym and a cycling studio need very different floors.

6. Set up your gym software #

Fitness equipment is essential in opening a gym, but security equipment comes a close second. Besides the obvious safety reasons, a modern access control system like Kisi integrated with fitness software can ensure that only paying members are using your new gym.

Start with your gym management software, since it handles memberships, billing and class bookings, and members will use it before they ever walk through the door. The access control system should connect to it directly so that you manage members in one place.

With Kisi’s Mindbody integration, for example, members with an active membership receive door access automatically and are checked in when they unlock the door, while bookings can grant time-limited access around a class or appointment. Kisi currently lists more than 30 fitness platforms in its integration marketplace, including Glofox, ABC Ignite, Zen Planner and PushPress, so it is worth confirming that your software is among them before you commit to either.

There are excellent access control solutions available for fitness and wellness facilities these days. Solutions like Kisi streamline visitor logs, door timers, and scheduling. You can even manage your members’ privileges remotely. You get to sign up new members and grant them access without meeting them at the gym.

Allowing gym members to enter your gym with their phones is an extra everyone will appreciate. Unlike cards or fobs, we rarely forget our mobiles at home.

A few features matter more for gyms than for other businesses:

• Unlock schedules, which keep the front door open during staffed hours and require a credential outside them, so the staffing model you chose earlier carries straight into your door settings
• Access links, which let guests and trial members unlock the door through a web link or QR code without downloading an app, and which expire automatically at the time you set
• Cameras at the entrance, and where you run unstaffed hours, tailgating detection that flags when more people enter than were authorized, which with Kisi requires cameras from VIVOTEK VORTEX or Cisco Meraki

Systems differ most in how long installation takes, how they handle temporary members and whether doors keep working during an internet outage, so weigh those points when you choose gym access control for your space.

7. Market the gym before opening #

Get the word out about your business. It is best to work with marketing professionals who will be able to help you create a memorable corporate identity. They can also help you to determine which marketing channels will be worth your while to pursue on your budget.

If you plan to do your marketing yourself, it’s highly recommended that you look into taking a few online courses to gain some experience.

Either way, start selling well before the doors open. Founding member rates, offered at a discount for the first few months, bring in revenue while you are still paying for the build-out, and the sign-up numbers double as proof of demand for your lender. Set up your Google Business Profile as soon as you have an address, because most people find a local gym through a map search, and ask your first members for reviews early.

Local partnerships also tend to pay off quickly for a new gym. Physiotherapists, offices, running clubs and nearby cafes can all refer members, and a free trial pass is the easiest offer to hand them. Since trial passes can be issued as time-limited access links, a prospective member can visit on their own schedule without a staff member there to let them in, and the pass simply stops working when the trial ends.

How to run a gym after opening day #

Opening the doors to your gym is of course just the beginning. In order to retain your members, and have them spread the word about your gym, you are going to have them feel part of a community, keep them engaged and get feedback from them on what they do or do not like. And of course, you will have to put that feedback into action, and continuously listen to your members.

Retention is the number that decides whether a gym survives its first years, because replacing a member who leaves costs far more than keeping one who stays. The first weeks of a membership matter most, so give every new member a proper onboarding session, check in with the ones whose visits drop off, and ask for feedback while there is still time to act on it.

Keeping your members and their possessions safe is a must. Implementing a modern access control system like Kisi can also enhance the member experience when organizing different training sessions. Since your trainers won’t need to let people in, they can actually start their classes on time. The punctual members will see you appreciate their time, and late members won’t feel awkward since they can let themselves in when they arrive.

Running a gym well also means reading your own data. Door activity shows you when members actually train, which tells you where to place classes, when you need staff on the floor and which hours could run unstaffed. Many owners revisit their staffing model once they see real traffic, and adding unstaffed early mornings or late evenings is a common way to extend gym hours without adding payroll.

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How to open a gym with no money #

Whilst most people believe that starting your gym business will break your bank, this is not always the case. With the right passion for fitness, along with the right systems and services, it is quickly becoming easier to open a fitness center. We will take you through a list of tips showing you exactly how to open a gym with no money.

Whilst there are many costs connected to starting your own fitness business, there are many ways to ensure that costs remain low. When it comes to how to open a gym with no money, there are a few important steps to take that can help you. These include but are not limited to:

• Marketing should be free by using social media to cross-promote with other businesses (this can also include free trials or passes for some or all of your services)
• Choose cloud-based software and services with monthly pricing over systems that need servers or large upfront hardware purchases, so your costs grow with your membership
• Utilize free resources – The US Small Business Administration offers a variety of free services (these include helping with business plans as well as legal and accounting advice)
• Sell memberships before you open, so your first members help fund the space they will train in
• Lease equipment instead of buying it, which keeps your largest expense off your opening budget

It is also crucial to take a financial inventory, knowing exactly what your personal expenses are as well as the predicted costs of operating your business. It is also imperative to review current income to figure out how much you need to keep the doors open and business running.

Try to stay realistic when budgeting. This could start with meeting clients at home or renting a gym space to start. This will allow your business to function with almost no overheads. Training clients outdoors, in their homes or during rented off-peak hours at an existing studio lets you build a paying client base before you sign a lease of your own.

Frequently asked questions #

How do you open a gym franchise? #

To open a gym franchise, you choose a franchisor, review its Franchise Disclosure Document, meet its financial and experience requirements, and then follow its process for financing, site selection and opening. Under the FTC’s Franchise Rule, the franchisor must give you that disclosure document at least 14 days before you sign anything, which gives you time to have a franchise attorney read it and to speak with existing owners about how the business really performs.

How do you open a rock climbing gym? #

Opening a rock climbing gym follows the same steps as any gym, but the build is far more specialized, because climbing walls have to be designed and installed by dedicated wall manufacturers. You will need a building with high ceilings, often a former warehouse, along with specialist liability insurance and trained route setters to keep the walls interesting. Many owners start with a bouldering gym, which needs lower walls and no rope systems, and the Climbing Wall Association publishes industry standards and runs events for new operators.

How do you open a cheer gym? #

A cheer gym needs open floor space with enough ceiling height for stunts and tumbling, a sprung competition floor and plenty of matting, and coaches with safety credentials. If you plan to field competitive all-star teams, membership in the U.S. All Star Federation sets the coaching credentials and safety rules your gym will follow, and most cheer gyms run recreational tumbling classes alongside the teams to keep revenue steady across the season.

How do you open a boxing gym? #

To open a boxing gym, you need space for heavy bags and ideally a ring, an experienced coach, and liability insurance that covers contact training. Decide early whether you will run fitness boxing classes, train competitive amateurs or both, because competitive clubs typically register with USA Boxing and need coaches certified through it. The same questions apply if you are opening an MMA or jiu-jitsu gym, with mat space replacing the ring.

How do you open a CrossFit gym? #

Opening a CrossFit gym, known as a box, means applying to become a CrossFit affiliate, because the CrossFit name can only be used under an affiliate agreement. According to CrossFit’s affiliate FAQ, anyone coaching CrossFit classes must hold a current CrossFit Level 1 Certificate or higher, and US affiliates must show proof of insurance. The space itself is usually a simple open floor with rigs, barbells, rowers and plenty of room to move.

How do you open a gym in a small town? #

Opening a gym in a small town works in your favor on rent and competition, but the pool of potential members is smaller, so the gym usually has to serve a wider range of people than a city studio would. Community ties matter more as a result, and flexible hours help too. Unstaffed early and late hours with app-based entry can make a small-town gym viable when finding staff is the hardest part.

How hard is it to open a gym? #

Opening a gym is demanding but manageable with a plan, and most of the difficulty sits at the start, when you carry the lease, build-out and equipment before membership revenue arrives. Owners who validate demand with presales, choose a clear niche and keep fixed costs low give themselves the most room for error.

How much space do you need to open a gym? #

How much space you need depends on your model. A personal training studio can run in a small unit with room for a few stations, while a full-service gym needs a large floor for cardio, strength and free weights, plus changing rooms. Work backward from the number of members you expect to train at peak times and the equipment each of them will use.

How long does it take to open a gym? #

Opening a gym typically takes several months from the first business plan to opening day, and the longest delays usually come from lease negotiations, permits and the build-out, not from buying equipment. A small studio in a space that needs little work can open much faster than a full-service gym that needs plumbing, ventilation and a certificate of occupancy.