Become a FabJob Guide to Fitness Club OwnerIHRSA President & CEO Joe Moore has characterized the fitnessindus - try as “historically recession-resilient.” Industry Statistics In

Open a fitness studio, health club, or gym!

Kelly Boyer Sagert

FabJob Guide to

Become a Fitness Club

Owner

Visit www.FabJob.com

ContentsAbout the Author .............................................................................9

1. Introduction ..........................................................................................11

1.1 Owning a Fitness Club ................................................................12

1.2 A Growth Industry .......................................................................12

1.3 BenefitsofBeingaFitnessClubOwner ....................................14

1.4 Inside This Guide .........................................................................16

2. Fitness Club Basics ..............................................................................18

2.1 TypesofFitnessClubs .................................................................20

2.1.1 Cardio-and-Strength Fitness Club ...................................21

2.1.2 Fitness Club With Personal Training Services ................23

2.1.3 Fitness Club With Cardio Classes ....................................24

2.1.4 Fitness Club With Mind/Body/Spirit Classes .................24

2.1.5 Fitness Clubs Focusing on One Gender ..........................26

2.2 Fitness Club Services....................................................................26

2.2.1 Personal Training ................................................................27

2.2.2 Group Fitness Classes ........................................................28

2.2.3 Yoga, Pilates and Other Non-Cardio Classes .................29

2.2.4 Relaxation Massage ............................................................30

2.2.5 Other Fitness Club Services ..............................................30

2.3 Products You Can Sell ..................................................................30

2.3.1 Fitness Accessories .............................................................31

2.3.2 Vitamins and Supplements ...............................................32

2.3.3 Exercise/Sports Drinks .......................................................32

2.3.4 Branded Clothing ...............................................................33

2.4 Fitness Club Personnel.................................................................33

2.4.1 Your Role as Owner ............................................................33

FabJob Guide to Become a Fitness Club Owner

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2.4.2 Employee Roles ...................................................................35

3. GettingReady .......................................................................................37

3.1 Skills and Knowledge You Will Need .......................................37

3.1.1 Interpersonal Skills .............................................................38

3.1.2 Business Skills .....................................................................40

3.1.3 Motivational Skills or Knowledge ....................................42

3.2 Learning by Doing .......................................................................43

3.2.1 Take a Fitness Class ............................................................43

3.2.2 Work in a Fitness Club .......................................................43

3.2.3 Get Volunteer Experience ..................................................45

3.3 Be Your Own “Mystery Shopper” .............................................46

3.4 Learn From Other Business Owners..........................................50

3.4.1 Talk to Fitness Club Owners .............................................50

3.4.2 Join an Association .............................................................52

3.5 CertificatePrograms ....................................................................54

3.5.1 CPR,FirstAidandAEDCertifications ............................55

3.5.2 PersonalTrainerCertification ...........................................57

3.5.3 AdditionalFitnessCertifications ......................................59

3.5.4 Business Courses ................................................................61

3.6 ResourcesforSelf-Study ..............................................................62

3.6.1 Books ....................................................................................62

3.6.2 Websites ...............................................................................63

4. StartingYourFitnessClub .................................................................66

4.1 Choosing Your Niche ...................................................................66

4.2 OptionsforStartingaFitnessClub ............................................68

4.2.1 Buying an Established Fitness Club .................................69

4.2.2 Franchising ..........................................................................76

4.2.3 Opening a New Fitness Club ............................................83




4.3 Choosing a Fitness Club Name ..................................................83

4.4 Your Business Plan .......................................................................85

4.4.1 What To Include In a Business Plan .................................86

4.4.2 Start-Up Financial Planning ..............................................94

4.4.3 A Sample Business Plan ...................................................104

4.4.4 Business Plan Resources ..................................................118

4.5 Start-Up Financing .....................................................................119

4.5.1 GettingPrepared ...............................................................119

4.5.2 Equity vs. Debt Financing ...............................................121

4.5.3 Borrowing Money .............................................................122

4.5.4 Finding Investors ..............................................................124

4.5.5 Government Programs ....................................................127

4.6 LegalMatters ...............................................................................128

4.6.1 Your Business Legal Structure ........................................128

4.6.2 Business Licenses ..............................................................135

4.6.3 Taxes ...................................................................................137

4.6.4 Insurance ............................................................................139

5. SettingupYourFitnessClub ...........................................................143

5.1 Finding a Location ......................................................................143

5.1.1 Possible Locations .............................................................143

5.1.2 Points to Consider ............................................................144

5.1.3 Signing Your Lease ...........................................................151

5.2 Fitness Club Design ...................................................................160

5.2.1 Outside the Fitness Club .................................................160

5.2.2 Inside the Fitness Club .....................................................163

5.2.3 Fitness Club Security ........................................................167

5.3 Displaying Merchandise ...........................................................169

5.3.1 Maximizing Sales ..............................................................169




5.3.2 Creating Window Displays .............................................170

5.4 Equipment and Supplies ...........................................................173

5.4.1 Fitness Club Equipment ..................................................173

5.4.2 Maintenance Supplies ......................................................175

5.4.3 Business Supplies .............................................................176

5.4.4 Fitness Club Retail Products ...........................................179

6. RunningYourBusiness ....................................................................182

6.1 Fitness Club Operations ............................................................182

6.1.1 Developing an Operations Manual ................................182

6.1.2 AreasofOperationsChecklists ......................................189

6.1.3 SettingYourHoursofOperation ....................................192

6.2 HygieneandCleanliness ...........................................................194

6.3 FitnessClubManagementSoftware ........................................197

6.4 Pricing Your Services and Products .........................................198

6.4.1 Charging Enrollment Fees ...............................................198

6.4.2 Package Pricing and Discounts .......................................199

6.4.3 Pricing Your Services .......................................................200

6.4.4 Product Pricing Formulas ...............................................203

6.4.5 ProfitMarginvs.PercentageMarkup............................205

6.5 GettingPaid .................................................................................207

6.5.1 Accepting Debit Cards .....................................................208

6.5.2 Accepting Credit Cards ...................................................208

6.5.3 Accepting Payment Online .............................................210

6.5.4 Accepting Checks .............................................................210

6.5.5 Tips and Gratuities ...........................................................210

6.6 Financial Management ..............................................................211

6.6.1 Bookkeeping ......................................................................212

6.6.2 Financial Statements and Reports ..................................214




6.6.3 Building Wealth ................................................................223

6.7 Employees ...................................................................................226

6.7.1 WhentoHireHelp ...........................................................226

6.7.2 RecruitingStaff .................................................................229

6.7.3 TheHiringProcess ...........................................................234

6.7.4 PayingYourStaff ..............................................................239

6.7.5 New Employees ................................................................242

7. GettingandKeepingCustomers ....................................................246

7.1 Marketing Your Business ..........................................................246

7.1.1 Your Grand Opening ........................................................247

7.1.2 Advertising ........................................................................251

7.1.3 Free Publicity .....................................................................256

7.1.4 Printed Materials ..............................................................260

7.1.5 Your Website ......................................................................266

7.1.6 Social Media ......................................................................270

7.1.7 NetworkingandReferrals ...............................................274

7.1.8 Other Marketing Ideas .....................................................275

7.2 Customer Service ........................................................................276

7.2.1 Booking Appointments ....................................................277

7.2.2 Dealing with “No Shows” ...............................................277

7.2.3 Greeting Walk-In Customers ..........................................278

7.2.4 Making the Sale .................................................................279

7.2.5 RefundandExchangePolicies ........................................281

7.2.6 GettingRepeatBusiness ..................................................282

7.3 Growing Your Business .............................................................285

7.3.1 Expanding Your Current Location .................................286

7.3.2 Opening Additional Locations .......................................287




1. IntroductionCongratulations! You have just taken an important step in your quest toopenyourveryownfitnessclub,offeringmotivatingandexcitingfitnessservicesthatwillhelpothersbecomestronger,healthierandfit-ter.Everyday,youwillhavetheopportunitytoprovidethesetting,resourcesandguidanceformembersofyourfitnessclubtostrengthentheirmuscles,increaseflexibility,reducestressandimprovetheirhealth– and in many instances, lose weight until they are at an optimum size and shape.

Morethanlikely,youalreadyknowthenumerousbenefitsofexerciseandareenjoyingthemyourself,thankstoyourownfitnessroutine.You most likely enjoy helping other people to set and reach goals and areabletoencouragethemwhenthey’reunsureofthemselvesandtomotivatethemtoreachtheirfitnessgoals.

Perhaps you’ve already worked as a personal trainer at an established fitnesscenter,orperhapsyou’vetakenakeyvolunteerroleinencour-aging the people with whom you exercise. Nothing compares, though, toowningyourownfitnessclub,whereyoucanofferyourownuniquemixofexerciseequipment,fitnessclasses,andmerchandisethatreflectyourpersonalvisionofwhatafitnessclubshouldbe.




Theguidewillprovidein-depthinformationonhowtogetyourfitnesscenter up and running. Let’s get started.

1.1 OwningaFitnessClubYou’rechoosingagreattimetostartyourfitnessclub,withtheU.S.DepartmentofLaborprojectingthatincreasingnumbersofagingbabyboomerswilljoinfitnessclubsinthecomingyearsinordertogetfitandstayhealthy.Businessesarealsoseeingthevalueofhavingtheiremployeesexercise.Withfewersickdaystakeninworkplaceswithfit-nessprograms,businessesthatfacilitateexerciseprogramsfortheiremployees can receive reduced rates on health insurance.

Additionally, doctors will continue to advise their patients to partici-pateinaregularexerciseprogram.Infact,becauseofrisingobesityinthe United States and other developed countries, and the increasing recognitionofhowobesitycancontributetooverallpoorerhealth,doc-tors will most likely increase their emphasis on regular exercise. That’s becauseoneofthebestwaystofightagainstobesityissafe,effectiveand regular exercise – and that’s just where you come in.

1.2 AGrowthIndustryOverall,thefitnessindustryhasbeengrowingandwillcontinuetogrow.AccordingtotheU.S.DepartmentofLabor’sBureauofLaborStatistics,thejoboutlookforfitnesstrainers/instructorsisrosy,withemploymentexpectedtogrow13%from2012to2022,adding33,500jobstothecurrent(2012)267,000.Themedianpayforfitnesstrainers/instructorsis$31,720peryear(or$15.25perhour),butyoumayfindyouearnmuchmoreasownerofyourownfitnessfacility.

TheInternationalHealth,Racquet&SportsclubAssociation(IHRSA),theglobaltradeassociationforthefitnessindustry,reportsthatin2015,there were 54.1 million health club members in the United States alone, upfrom45.3millionmembersin2009and25millionin1999.Youcanseethatthistrendindicatesopportunitiesforwell-runfitnesscentersthatofferthepublictheservicesandproductsthatpeoplewant.

InJanuary2015,theglobalfitnessindustryencompassed183,900clubs,upsignificantlyfromabout122,000clubsin2008.2015globalrevenues




wereestimatedat$84billion,upfromabout$68billionin2008.Infact,IHRSAPresident&CEOJoeMoorehascharacterizedthefitnessindus-try as “historically recession-resilient.”

IndustryStatistics

InanApril2015pressrelease,IHRSAreportedthefollowingin-dustry statistics:

More than 63 million Americans utilized a health club in 2014, up2.3%from2013when62.1millionconsumersindicatedus-ing a health club. Total U.S. health club memberships exceeded 54 million.

“For the second consecutive year, total health club visits sur-passed5billion,animpressivemarkfortheindustry,”saysJoeMoore,IHRSA’spresidentandCEO.“Byanothermeasure,membersfrequentedtheirhealthclubsforanall-timehighof103visits, on average, in 2014. These numbers demonstrate the im-portant role health clubs play in helping more and more Ameri-cans improve their overall health and wellbeing.”

BasedonastudyconductedbyTheInternationalHealth,Racquet&SportsclubAssociation(IHRSA)aspartofthePhysicalActiv-ity Council (PAC), results show that 54.1 million Americans be-longedtoatleastoneofthe34,460healthclubsnationwide.Since2008,membershiphasgrownby18.6%,whilethetotalnumberofconsumers has increased by 19.2% over the same time.

Thenumberofhealthclubfacilitiesroseby6.4%incomparisonwith the previous year. In 2014, health club industry revenue in theU.S.increasedto$24.2billion,upfrom$22.4billionin2013,animprovementof7.4%.“Allkeyperformancemetricsreachedanall-timehighintheUnitedStates,”saysJayAblondi,IHRSA’sexecutivevicepresidentofglobalproducts.“WithoneinfiveAmericansutilizinghealthandfitnessfacilities,theindustryiswell-positionedforfuturegrowth.”




The number that you just calculated represents how many people in yourtargetaudiencewillmostlikelyuseafitnessclub.Howmanywouldcometoyourfitnessclubwoulddependuponhowmanyoth-erfitnessclubsareinthatregionandhowwellthoseclubsfulfilltheneedsofthemembers.

1.3 BenefitsofBeingaFitnessClubOwner“Eleven years later I still LOVE what I do. It is my heart and soul. I have some clients who have been with me from day one. I can’t tell you what that feels like, other than totally satisfying.”

— Marion Roaman, owner, Ride the Zone, whose clients include celebrities such as Alec Baldwin and Katie Couric

Whenyouownafitnessclub,youtrulyhavetheabilitytotransformthelivesofthepeoplethatyoumeet,helpingthemtolearnhowtoincor-porate new routines into their daily lives, routines that promote good health,increaseenergyandmakepeoplelookandfeelbetter.Besidesthat, you’ll be working in an environment that allows you to continue to incorporate mentally and physically healthy habits into your own day.Herearesomemorebenefitstoowningyourownfitnesscenter:

CreateYourOwnNiche

“When you own your own studio, you can implement your vision, your en-ergy and ideas. You can change things on the spur of the moment based on what you think is the right direction. Owning your own studio gives you creative power to change anything you want at the drop of a hat.”

— KathyVanPatten,owner, GYROTONIC®studiosofBoston, Manhattan,andSanFrancisco.

Asafitnessclubowner,youhavetheabilitytobecreativeandtoofferauniqueblendoffitnessproductsandservicestoyourcommunity.Youcanalsochoosespecialmarketsasafocus.Forexample,somefitnessprofessionalsfocusonprovidingservicestoolderadults,whichmightinclude Pilates and Tai Chi courses that are tailored to the older body. Theseprofessionalsfindjoyinwatchingolderadultsblossomandfindrenewedenergythroughfitness.Othersmighttailorintenseclassesand




servicesforthoseenteringthemilitaryorforprofessionalathletesintheiroffseasons.Stillothersmaydesignclassesspecificallyforpeoplewith special physical needs, such as those with arthritis or multiple sclerosis.

FinancialRewards

Ifyouweretoaskpeopleinthefitnessindustrywhytheychosethistypeofwork,theiranswerswouldoftenreflectthepassionthattheyhaveforgoodhealthandforhelpingothersachievethegoalsthatgivethemabetterlife.

Inadditiontothesefactors,thereisalsothepotentialforaverygoodincome. In general, the amount that you can earn is largely based upon thenumberofmembershipsandfitnessservicesthatyousell.Accord-ingtotheFitnessBusinessProannual“StateoftheIndustry:GoFish”reportof2007,singlefitnessclubownersinthatyearexpectedtoav-eragenearly$600,000inrevenues.BasedonindustrystatisticsfromTheFitnessIndustryCouncilofCanada,averagefitnessclubrevenuesinCanadain2007were$340,000,themostrecentfigureavailableatthetimeofpublication.Thosearejusttheaverages.Somelargefitnesschainsearninthehundredsofmillionsofdollarseach.

“One of the main benefits of owning a personal training studio is that you get to make money while helping people by doing something you love. It is very rewarding watching clients transform both mentally and physically as health and fitness becomes a sustaining part of their lifestyle.”

— KevinBetts,ChiefOperatingOfficer, fitnessclubchainFitnessTogether

BeanImportantPartofYourCommunity

Perhapsyouloveworkingwithteenagers.Ifso,thenyoumightcon-siderpartneringwithlocalhighschoolstoprovideadditionalfitnessclassesandtrainingfortheschool’sathletes,membersoftheROTC,dancersandsoforth.Ifyou’reabletoofferthoseservicesatadiscountfortheschools,youwouldinfactbehelpingtosponsorthoseimpor-tant youth activities. By doing so, you would also be helping to make yourcommunityabetterplacetoliveandwork.




Or,ifyourcommunityissponsoringawalkorrunforagreatcause,perhapsyoucoulddonateanhourortwoofyourtimetopresentaclassonhowtosafelywarmupandthentraintoparticipateinthesecharitable events in your community.

Inaddition,providingfitnessfacilitiescanprovideanopportunitytoimprovethehealthofyourcommunity;exerciseisoneprongofthetwo-pronged approach (the other is diet) to addressing obesity.

1.4 Inside This GuideThe FabJob Guide to Become a Fitness Club Owner will walk you through thestepsneededtoopenthefitnesscenterofyourdreams.Thechaptersareorganizedasfollows:

Chapter 2 (“Fitness Club Basics”)willprovideyouwithinformationaboutfitnessclubbasics–traitsthatmostfitnessclubshaveincom-mon–alongwithinformationaboutavarietyoftypesoffitnessclubs,sothatyoucanstarttodecidewhichnicheisbestforyou.InformationfoundinChapter2willdescribeupcomingtrendsinfitnessanddiscussatrendthathasgrownoverthepastdecadeandahalf:fitnessclubsforonegenderonly.You’llalsofindusefulinformationaboutproductsyoumightofferandservicesyoumightsell;aboutyourroleasfitnessclubowner;aboutthetypesofemployeesyoumighthireandtheirrolesinyourdreamofafitnessclub.

Chapter 3 (“Getting Ready”)takesanin-depthlookatsomeoftheskillsets – interpersonal, business and motivational – needed and how they areimportanttoyouasafitnessclubowner.Discoverhowyoucanlearnmoreaboutthefitnessindustryonyourown.Plentyofresourcesaboutobtainingcertificationsareincluded,alongwithideasforself-study.

Chapter 4 (“Starting Your Fitness Club”)ispackedwithinformationaboutdifferentwaystomakeyourdreamofowningafitnessclubareality. The chapter starts out with an overview checklist that you can printoutforreferenceandthenprovidesguidanceabouthowtochoosethebestniche.You’llreadallsortsofterrificinformationaboutthead-vantagesanddisadvantagesofbuyinganestablishedfitnessclub,buy-inganexistingbuildingandmodifyingitintoafitnessclub,buyinga




franchise,orcreatingabrandnewfitnessclub.Chapter4alsoprovidesinformationaboutcreatingabusinessplanandastart-upbudget,find-ingresourcesforyourbusinessplanandgatheringthefinancingneed-edtogetyourbusinessupandrunning.You’llalsofindhelpfuladviceaboutwhichbusinessstructuretochooseforyourbusiness,whatinsur-ancetobuyandwheretofindinformationaboutinsurance.

Chapter 5 (“Setting Up Your Fitness Club”)helpsyoutofindthebestlo-cationforyourclubbyprovidingyouwithinformationaboutpermitsand zoning, space requirements and more. Included is a comprehen-sive check sheet that allows you to compare properties that you have seen.Chapter5alsoprovidesinformationaboutsigningaleaseandtheprosandconsofvarioustypesofleases;designoptions,bothinsideandout;floorlayoutideas;suppliestobuyandwhichsupplierstocon-sider;andhowtoobtainyourfitnessequipment.

Chapter 6 (“Running Your Business”)offersadviceyoucanusewhencreatingyourproceduresmanualandchecklistsforyourvariouspro-cedures,includingopeningandclosingprocedures;membercheck-inprocedures;andmore.InChapter6,you’llalsofindinformationonsettingyourhours;maintainingahygienicfacility;choosingmember-shipandbillingsoftware;managingappointments;managinginven-toryandpricing;determiningwhattypesofpaymentyouwillaccept;understandingfinancialstatementsandreports;buildingwealth;andhiringandpayingstaff.

Chapter 7 (“Getting and Keeping Customers”)putsthefinaltouchesonopeningyourfitnessclub!Here,you’llfindinformationaboutmarket-ing your business, which includes the ever-important grand opening. Discovermoreaboutadvertising;freepublicitytools,includingthepressrelease;promotionaltoolsthatyou’lluse,includingyourwebsite;networking;customerserviceandmakingthesale.Plus,you’llfindguidance on bringing in repeat business — which is a key component ofgrowingyourbusiness.

YouhavereachedtheendofthefreesampleoftheFabJob Guide to Become a Fitness Club Owner.Toorderanddownloadthecompleteguidegoto https://fabjob.com/program/become-fitness-club-owner/.



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Documents

Become a FabJob Guide to Fitness Club OwnerIHRSA President & CEO Joe Moore has characterized the fitnessindus - try as “historically recession-resilient.” Industry Statistics In