Fitness franchises are hot this year, as people are beginning to get back in shape after coming out of quarantine. There is a lot that you must do beyond simply applying for a business license. Here’s what you need to know to start your own gym.
One: Planning Your Business
When choosing a franchise as your business, you begin ahead of the game. You already have an instantly recognizable brand, assistance with the specifics of your business, and help with any problems that arise.
You’ll want to review the costs associated with opening a fitness franchise, which is significantly less than opening your own brand. Starting with NutritionHQ means a lower investment than many other franchises with a range between $149,500 and $247,500.
Next consider who your market is. The typical fitness customer is someone who wants to get healthy, stay in shape, or is seeking a trainer to meet a specific fitness goal, like running a marathon or preparing for a weight lifting competition. You want to attract customers who enjoy working out, want to do so on a regular schedule, and have long-term fitness goals. You will want to avoid customers who are uncommitted and may end up not using the gym and quitting within a month or so.
Two: Managing Your Finances
You should apply for an EIN and open a bank account in your business’s name. It’s important to keep your business assets separate from your personal finances. Separate accounts not only keep you protected if your business is ever sued, it also makes bookkeeping and documentation simpler.
You may also want to open a business credit card in order to start building credit for your business. Use the card only for business-related transactions and be sure to track expenses and itemize them for easier bookkeeping. When tax season rolls around, it’ll be easier for you to manage your business financial transactions.
Three: Setting Up Your Business Bookkeeping
You must record all costs and profits to be successful in your fitness franchise. Not only will this help when it comes time to pay your taxes, but it’ll help you understand on a daily basis where your business stands financially.
Keep all receipts and record all checks that have been written. Manage payroll and all other costs and profits through a single bookkeeping program to make things easier at the end of the year.
Four: Obtaining Permits and Licenses
It’s important that you obtain the correct permits and licenses to run your fitness franchise. Check with your state to see if it requires licensing to open a fitness center. The SBA’s (Small Business Administration) website offers information on licensing including how to obtain the correct ones.
Your franchisee should be happy to supply and share information regarding the permits and licenses needed to open and run your business. Beyond state laws, also check with city and neighborhood permitting rules to ensure that your franchise is legal.
Five: Getting Business Insurance
It is wise to have business insurance for your fitness center to ensure that you are working securely and legitimately, while financially protecting you from unforeseen occurrences. General liability is the most widely recognized insurance used by independent business owners.
You may also need to get Workers’ Compensation Insurance, particularly if you employee a full-time staff. Most states mandate Workers’ Compensation Coverage to protect your business in case of an employee injury.
Potential fitness franchises owners should get the help they need from their network of advisors, but it’s important to understand the steps you need to take to get up and running. Once you complete these steps, you’ll want to look into marketing and advertising your business to improve sales. You’ll not only want to attract new customers, but you’ll want the ones you have to keep coming back.
People are ready to come out of quarantine and get in shape again, making now the ideal time to open a fitness franchise and succeed in business.