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How to Start a Gym Franchise in 8 Steps

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Gym franchises are some of the most popular franchises in the country, so if you have a passion for health and fitness and are interested in joining a franchise rather than building a new business from the ground up, this could be the perfect solution.

There are plenty of gym franchises to choose from, but deciding which brand is right for you is just one of many steps you’ll need to take. Read on to learn how to start a franchise gym, pros and cons, how much it costs, and more.

How to open a gym franchise

Ready to start the franchise buying process? Follow these steps to purchase a gym franchise of your own.

1. Weigh the pros and cons of owning a franchise gym

As is the case with any business venture, there are advantages and disadvantages of franchising. Before you decide that opening a gym franchise is right for you, consider the pros and cons. It’s also a good idea to speak with current and former gym franchisees to get a better understanding of what this process will entail.

Here are some pros and cons of owning a franchise gym to consider as you make your decision:

Pros of owning a gym franchise

  • Brand recognition: Franchises are well-known brands with a history of success. This makes finding members a cinch—there’s already a built-in customer base. Plus, the franchisor will likely handle marketing for the entire franchise.

  • Training and ongoing support: If you’ve never owned a business before, there will be lots of things to learn. With a franchise, you’ll have the ongoing support of your franchisor to walk you through every step of the process.

  • Higher profits: Franchises typically see higher profits than non-franchise businesses, as there is a loyal customer base and formula for success. While the initial investment to open a gym franchise can be high, you’ll likely turn a profit more quickly.

Cons of owning a gym franchise

  • Lack of independence: When you join a franchise, you may own your location, but you are ultimately an employee of sorts of the franchisor. They have the final say when it comes to business strategy, marketing, location, decor, etc. If you’re looking to create a truly unique gym experience, a franchise may not be the best choice.

  • Initial investment: As we mentioned, the initial cost of starting a gym franchise can be very high. You’ll have to purchase a lot of equipment, after all. If you don’t have the liquid capital or aren’t able to qualify for financing, this will likely not be a viable option.

  • Ongoing cost: In addition to the initial franchise fee, you will also be responsible for ongoing payments to the franchisor. These may include royalty fees, marketing fees, renewal fees, and more. Make sure you’re aware of all of the costs involved in a particular gym franchise before you join.

2. Consider your options 

If, after weighing the pros and cons, you’re convinced that buying a gym franchise is right for you, you’ll next want to consider the franchise options you have. There are plenty of gym franchises to choose from—from classic gyms to specialty studios. Some options include:

  • Anytime Fitness

  • Orangetheory Fitness

  • Planet Fitness

  • Crunch Fitness

  • Pure Barre

  • The Bar Method

  • Jazzercise

  • Gold’s Gym

Your gym franchise options will also be specific to where you want to open your business so make sure you spend some time researching the best choices. When reviewing your options, pay close attention to any requirements they have to make sure you meet them, as well as how much capital each one requires.

3. Contact franchises

Once you’ve narrowed down your options to a handful of possibilities, it’s time to reach out for more information. This can typically be done online through the franchises’s website. In most cases, you’ll submit a preliminary application or request more information.

From there, the franchisor will provide more information. This could also include upcoming events in your area to learn more about the business and speak with other people in the franchise. Remember that during the application and interview process, you should be interviewing the franchisor just as much as they’ll be interviewing you to make sure it’s a mutual fit.

If you move along in the application process, the franchisor will share their franchise agreement, which includes the franchise disclosure document (FDD). Both you and your business attorney should review this document carefully, as it will lay out exactly what both you and the franchisor are responsible for over the course of your business relationship. If all looks good, you’re ready to sign and officially join the franchise family.

4. Write a business plan

Once you know the franchise gym you’re going to open, your next step is writing a business plan. This may feel unnecessary when joining a franchise, as so much of your business will be prescribed by the franchisor. However, it’s still a good idea to put something together so you can clearly see how you’ll launch and grow your business.

There are some key points you want to make sure your business plan hits, including a market analysis of competition in the area and the need that your gym franchise will fill that’s currently not being filled by competitors. You should also include other information like expected costs, how many people you expect to hire, what your role in the franchise will be, financial projections about how long until you expect to turn a profit and more.

The nice thing about opening a franchise gym instead of starting a business from scratch is that you can likely get quite a bit of information for your business plan directly from the franchisor or franchise agreement.

5. Secure financing

The cost of buying a gym franchise will vary depending on which one you decide to join, as will the financial assistance you can expect to receive from the franchisor. We’ll explore costs in more detail below, but for now, it’s worth discussing your franchise financing options.

Chances are, you’ll need some sort of financing to get your business off the ground. While you may be required to self-fund a portion of your franchise, you will likely look to outside sources as well. You’ll have a variety of business loan options available, based on what you need to use the money for (i.e. buying property, working capital, etc.) Your franchisor may also offer guidance or their own financing solutions that you can utilize during this stage.

6. Choose a location 

An easily accessible and convenient location for your gym is crucial. For most gym-goers, close to home or work is best. As to figuring out what constitutes “convenient” for your target membership, it all starts with studying the data available to you.

“The first thing to do is look at the demographics of the area,” says Montoya Jennings, operations manager for L.A. Fitness in Atlanta, Georgia. “Choosing a location depends on a lot of things: the average age of the area, the crime, and if it’s near a shopping center, which encourages more foot traffic and spending. There’s quite a bit of data to consider.”

You can utilize resources like Stats America to research everything about residents in a given region, from gender breakdown to estimated median income, which tells you whether the kind of gym you want to open will have a stable community of potential members to draw from.

Another part of the location decision is whether to use an existing structure to house your gym or to build something new entirely. In the case of L.A. Fitness, they’ll often look for a satisfactory property in a desired location, then enlist a contractor to build according to the company’s description and specifications.

Of course, every franchise is different. Make sure you consider any location requirements when choosing a gym franchise. Some franchisors will have very specific requirements or may choose the location themselves. Others will give you more autonomy.

7. Get permits

As with any business, you’ll need to obtain the proper permits and licenses to operate. These can include building permits if you’re renovating a space, as well as a number of other permits once you’re ready to open, such as health and safety permits.

In some cases, you’ll need your licenses and permits in order before you can start receiving equipment and setting up your gym. “You need to get the license to occupy, the business license for that facility, the fire inspectors to come out and do their inspection, contractors to ensure the fire sprinklers and plumbing are up to code. Then L.A. Fitness sends out its own team to install all the equipment for the facility—that team decides what goes and what doesn’t,” says Jennings.

There are fees for obtaining building permits, and other permits might be necessary as well, depending on the kind of amenities your gym plans to offer. For example, a snack bar could require employees to pass a food handling test specific to that locality.

8. Start hiring

Once the location is set and you have the proper licenses and permits to legally operate, you’re ready to hire your first employee. You’ll need a number of employees to help clean, run the front desk, manage sign-ups and memberships, and train members or teach classes, and more.

Remember, gyms typically have long hours—some are open 24 hours a day—so they’re open when their customers want to work out. This means you’ll need a host of employees to cover all the shifts and make sure your facilities are clean and well-organized.

How much does it cost to start a gym franchise?

As we’ve mentioned, the cost of buying a gym franchise can be significant. Besides the initial fee you’ll pay to join the franchise, a gym requires a great deal of equipment, as well as a large commercial space.

The total upfront investment for a gym franchise can fall anywhere between $30,000 and $300,000, including the one-time franchise name fee (ranging from $15,000 to $30,000).

Of course, some brands are less expensive than others. Ditto for some locations. For example, the initial investment for Snap Fitness ranges from $77,000 to $250,000, including all needed working capital, while Curves charges $24,000 plus an additional few thousand for equipment delivery.

Some companies have larger financial requirements: Planet Fitness, for example, asks that franchisees have liquid assets totaling at least $1.5 million, with an overall net worth over $3 million.

Royalties are another cost: Some companies charge a flat rate per month (usually around $400 to $500—again, depending on the brand) while others take a percentage of gross revenue. Royalties pay for continued use of the brand name—a huge draw for potential customers—and help with marketing, advertising, training of new employees, and other support that independent gyms have to fund on their own.

The bottom line

Starting a franchise gym isn’t for the weak-willed or those without the upfront capital. If you have the means to go into business with a brand-name gym, however, you have the opportunity to enter an industry that expects to see continued growth for years to come with the backing and support of an established name. With an independent gym, you have to start from the bottom. The head start that a franchise gives entrepreneurs is substantial—from then on, it will be up to you to fulfill that promise of success.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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Everything You Need for Starting a Pressure Washing Business

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If you have an entrepreneurial spirit and feel ready to go into business yourself, the pressure washing business could be the best option for you.

Starting a power washing business doesn’t require lengthy learning and the startup costs are relatively low. Since the demand for such services is always high, this business can provide a solid flow of income if mastered and managed properly.

Like any other business, a successful power washing business requires proper preparation and planning and this article offers a step-by-step guide for embarking on such an entrepreneurial journey.

Research the Market

Doing some in-depth research about the pressure washing market, what customers you want to target, and how many similar businesses are already operating in your area is essential. Even though this business is expected to register decent growth in the coming years, you should still dig a little deeper to see if there’s more work than the existing pressure washers can take on.

You can choose to focus on residential accounts or take on commercial clients. If you feel that you can manage more work, explore opportunities for pressure washing in surrounding neighborhoods and towns.

Proper research and identifying what opportunities exist is a crucial step in establishing a flourishing pressure washing business.

Get Your License

The moment you decide that this type of business is a golden opportunity, you need to check the local requirements for doing business as a pressure washer.

Depending on the state you live in, you may or may not need a business license. However, you should apply and obtain one before getting started as it will cover you legally. Make sure to check with your local authorities on what the rules and regulations are to stay on the right side of the law. 

This is also a major plus when attracting potential customers as they’ll feel more comfortable and it will help establish trust in your business. It may also help in meeting the requirements of other parties, such as vendors, who might want to see your license before deciding to do business.

Get Insurance

Even though it sounds easy to start a pressure washing business, make sure that you develop the proper skills on how to pressure wash without destroying the surrounding area, damaging your client’s siding, and causing an injury to yourself or somebody else.  

However, accidents happen, so in order to protect your new business from claims of negligence, injuries, accidents, financial risks, and legal fees, you should purchase insurance coverage. Nowadays, insurance companies can provide you with a quote for pressure washing insurance online, so you don’t have to waste time standing in lines.

Not only is pressure washing insurance a safety net for your business, but new potential clients will also take this as a positive sign that you’re a professional who takes their job seriously and ensures customer satisfaction.  

Choose Equipment

Depending on your service offering and scope, the type of equipment you’ll need might vary. If you only intend on working for residential clients, then you’ll be good to go with a pressure washer with a force of up to around 4,000 PSI, but for commercial work, you’ll need stronger equipment that offers more functionalities. Since this business is physically demanding, choose equipment that is fast but safe and helps you get certain jobs done efficiently.

Practicing also plays a big role as you don’t want to accidentally damage someone’s landscape while power washing their siding. Regardless of how technologically advanced your equipment is, not knowing how to efficiently handle it can get you bad reviews and cause unwanted accidents and lawsuits.

Before making any big investments, rent a pressure washer and practice on your friends’ patios, or driveways as this will give you the best hands-on experience.

Price Your Services

Once you’re done with all the administrative work, decide on your pressure washing service prices. Since you’re a new business owner, you should start with lower prices while trying to attract new clients.

Test what hourly rate gets you most jobs and try to slowly but surely bump the price up every year as your expertise gets better.

It might feel overwhelming at the beginning but focus on mastering few services first and settle on a rate that works for you. As you improve your skills and your business grows, you can adjust your prices accordingly.

Final Thoughts

Market research, obtaining the right pressure washing insurance, choosing the right equipment, and pricing your services, are all important aspects on the road to becoming a successful business owner.

We’re sure that you’ll be glad to have considered all the above-mentioned steps once your pressure washing business is set up and running.

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A Basic Guide to Starting a Home-Based Business

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Starting a business in 2021 is much easier than it was twenty years ago. With advanced technology and digital marketing, anyone can step into the role of an entrepreneur. In some cases, all you need is an idea and a computer.

Becoming a business owner is a path to financial security. Even if you don’t give up your day job, starting a home-based business can lead to financial freedom down the road. 

Are you wondering how to start a business? Keep reading for an essential guide to getting started.

Choosing a Home-based Business

Choosing a business that’s right for you is vital to your success. You want something you’ll stick to for the long run. The best home-based businesses are those you can operate from the comfort of your home. 

Start looking at things you are good at and research to learn if there is a market for what you want to offer. For example, if you have certification in accounting, you can start a business performing accounting services for other small businesses.

Creating a Business Plan

Like any business, it’s essential to create a business plan. This document outlines what your business offers, competitor analysis, marketing strategy, and financial goals.   

The business plan is a great way to measure success and to remain focused on reaching your goals. If you’re starting a business and require financial backing, you’ll need a business plan to show lenders. 

You can maximize solar savings by creating a green business.

Incorporate Your Business

A home-based business is no different from starting any other business model. You want to incorporate your business to add a layer of protection. It’s also valuable for opening a business bank account. 

Separating your business from your personal assets is essential in growing a business. It will help you build business credit. Plus, if you are ever sued, you don’t want someone going after your personal property. 

Get an ECommerce Website

Once the paperwork is done and your finances are in order, it’s time to get your business website up and running. Most businesses can benefit from an eCommerce website. These websites help grow efficient businesses that do not require a physical location or multiple employees.

With an eCommerce website, you can sell products, take deposits on bookings, and so much more. 

Marketing 

A powerful marketing strategy is essential to a home-based business. Determine which social media platforms have the greatest reach for getting noticed by your target audience. 

Use your website’s blog options and photo storage as a launching pad for the information you’ll share on online platforms. 

Don’t be afraid to try different marketing trends, including digital ads.

It’s Time to Invest in a Business

A home-based business is an excellent investment. Once your business is up and running and turning a profit, consider a second start-up. The potential is limitless.

If you need more great tips and information on business start-up trends, we have you covered. Continue to browse our site and check back often for new content.

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Starting A Business

How To Set Up a Successful Electronic Business

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Consumers can purchase a range of mechanical items and parts from an electronics company, such as cell phones, televisions, computers, peripherals, and components. If you aim to create this type of business, you should arm yourself with knowledge so you don’t end up like huge electronic retailers that collapse. Read on!

1.Examine Other Electronic  Businesses

Examine and comprehend the business models of existing electronics businesses before starting your own. This comprises the typical markup on commodities, overall consumer satisfaction strategies, and managing supplier relationships. You’ll need this information to determine competitive store policies and prices. Compare and contrast the success of successful electronics stores with those that have closed or failed.

2.Research Your Interest Area of Establishment

If you’re just starting, you’ll focus on the local industry first. It’s also possible that you won’t be the first to play the electronic game. You may be competing with a lot of other small businesses in addition to big stores.

Make sure you do your homework before deciding where you want to locate your business and whether it is a good idea to do so. If your neighbourhood is densely packed with stores, consider looking on the opposite side of town or imagining how you may stand out. People may be hesitant to go through your doors if you come in and offer nothing more than another store.

3.Obtain The Necessary Permits

Check with your state and city to determine if there are any additional criteria for opening your store. If you repair computers, you may be required to pass a state-licensed test to ensure that you are aware and capable of providing proper care.

You’ll also need to check into various business licenses and other forms of documents to ensure that you’re following all of the rules.

4.Have a Competitive Business Plan

Due to the competitive nature of the electronics retail industry and the high risk of failure, you must develop a comprehensive business strategy that focuses on your competitive advantages. Use the information you acquired from your initial case study in the market and business profiles, as well as any personal experience you have with electronics, to show why your electronics company would thrive. 

If you’ve managed an electronics store, for example, you’ll be familiar with the inner workings of this type of retail operation and may have an advantage over other new stores.

In your plan, you need to include the brands you’ll be selling. You need to ensure that they are of both quality and outstanding market performance. For instance, working with certified wholesalers of closures and boxes, guarantee you offer the consumers new brands that are outstanding.

Also, don’t forget to include other regular but essential products such as lights and screens. This is because it is always good to offer a pool of varied products to your customers.

5.Choose a Brand For Yourself

idea

Your company’s brand is both what it stands for and how it is regarded by the broader public. Your company will stand out from the neighbourhood competition if it has a strong brand.

So, while naming your firm, don’t go with a generic name like most electrical stores these days. Try to come up with a distinctive name because the right name is really important. You can begin by considering the business’s nature. In your absence, your chosen name will operate as an extension of your brand, representing you. Part of your brand representation in what you sell. You can add some wire connectors. They are always widely in demand by everyone.

We recommend checking to see if the business name you want is available as a web domain and securing it as soon as possible so that no one else does.

6.Get Startup Funds

banknotes

For starters, you’ll need thousands of dollars to launch an electronic business in the first few months, with a large portion of that money going for rent. A significant portion of the funds will be spent on getting certain in-demand electrical goods as well as marketing your new business.

Personal cash, such as savings, loans from financial institutions, and borrowing from friends and family who are interested in assisting you in starting your business are all options for raising capital for your business.

7.Promote Your Store

Starting a business takes time and effort, as well as determination and vision. If you’ve already decided to work in this field, you should first check into legal and technical issues. After you’ve successfully achieved the first two responsibilities, you should build your brand and sell it. 

You must stay up with the most recent advances and maintain high standards at all times. It isn’t enough to have good items. To expand and develop revenue, it must be adequately publicized. The advertising team must be ready to provide you with a marketing strategy that will interest the audience.

As a result, the two key techniques of attracting new clients are word of mouth and local advertising. Many electronic stores promote in local media and provide first-time customers discounts and advertising billboards. Keep in mind that customer retention is crucial. Take extra precautions with the newcomer. 

They are your billboards. They are ecstatic and will brag about your store for hours. Be friendly to everyone that walks into the store. It’s more difficult to keep customers than it is to get them.

The Bottom Line

Starting and maintaining a business to its success is not an easy task. You need to be dedicated to the course and understand that however hard things get, you need to surpass them. Electronic stores are quite demanding, but a nice business to invest in altogether. Best of luck!

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