So you want to open UP a gym?

 Opening a gym can be a daunting task with the risk of failure being high but the benefits of success being even more rewarding. Like any other, a gym is a business and must be viewed from the lens of an entrepreneur regardless of your background. A genuine interest in lifting is a must but passion won't guarantee success. Business is about logistics, numbers, and all that boring stuff that's easy to ignore.

In this article I'll be sharing with you all my personal experience, suggestions, and also some examples of numbers that may help with putting you in the right direction. Please note this is based off of my personal experience and you are encouraged to research different experiences and view points when choosing what will work best for you. Business isn't going from point A to B but instead it's a winding path full of forks in the road. Take this as a road map that will give you a fighting chance in the wild but I can't guarantee you won't get lost. It's all just part of the journey.
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"Grand Opening" with the Mayor of Carol Stream
PART I : Opening Surge To New Levels
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Front Page Feature on the Business Section of the Chicago Daily Herald
​So I got to work. I started with five clients. Training them at a large discount with the promise they would bring in referrals to offset their reduced price. Despite my degree and experience I knew that people were more persuaded by word of mouth and recommendation. So I needed a base of clients to show off what I could do and get a buzz going with their friends. It worked.

Five turned into ten and ten into twenty etc. Fast forward a year and half in and I had saved every single penny I possibly could. Buying a piece or two of equipment every month until I had just enough to put up what would be the first skeleton of the first SURGE. Halfway through 2016 we finally pulled the trigger and signed the lease. By Fall of 2016 everything was approved and all the paper work and hurdles were over with. We got the key and hit the ground running. 

I'll be honest, I got lucky. While I was still training clients to afford our new venture my dad, fiance, and brother were coming in to help. Sweeping the floors, painting, setting down the flooring, etc. After finishing up with clients I would come in and we would continue that long and hard labor that is putting a gym together. This gave us a huge head start and by Labor Day we were finally open for business! 
Let me preface this by saying I never wanted to open a gym. In fact it was the last thing I wanted to do when I got out of college. Yet like many other men and women of my generation I found myself graduating with a degree and no job. I loved the industry but with only entry level positions being offered I may as well have gone straight to work out of high school and avoided the debt I was in. 

Early 2015 it finally hit me over a night of restless sleep. If I can't find a job, then I"ll make my own. So I quit the office job I had ended up at and I decided to take up a friend of mine on his offer to do independent personal training. Greg owned a private studio and the deal was I could rent the space and train clients out of the space. I could charge whatever I wanted and run business as I wished BUT I was responsible for bringing them in myself. Essentially I could make more by finding my own clients versus working commercial and making less but with endless hours of clients.



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Before and After Our First Opening
​So I opened the doors AND... crickets. I think that day we had a few people come in to check it out but beyond my loyal client base I had been training; the gym was empty for the most part. My fiance hadn't started training yet and I had no one else. I remember this period being a bit depressing. I would work my one on one clients and it just felt desolate. Especially coming from a gym where there were always people laughing and having a good time. It was tough but I stuck to my plan. Get more clients, build my membership base, and hopefully get some independent contractors of my own.

I worked hard and I knew if I could just set a reputation for the gym then we could break the dry spell. It didn't happen over night and for the first year it was slow until it finally began to spread. The word was there was a new powerlifting gym in Chicago and people were starting to finally stop by! Not only that but my fiance finally switched full time to work with me and we found a few independent contractors. With the new money I bought more equipment until it got to the point we were so full that we knew we had to make our next move. EXPAND.

Once again luck was on my side and our neighbors had just moved out. With the agreement of the landlord we knocked the wall down and expanded to what Surge to New Levels is today. A facility full of brand new premium powerlifting equipment. A powerlifters paradise full of monolifts, combo racks, specialty bars, and more. After this expansion our membership doubled, I established my independent contractors further, and things continue to grow to this day. It's been quite the journey so far and we are now exploring options for the future again. Growth never stops and now I'd like to share what you should look for.
Part II : How to Open Your Own Gym
​Okay you love lifting and you're good at it. Opening a gym should be easy then right? Wrong. That's the biggest mistake you can make The real question you need to ask yourself is, do you posses the qualities to be an entrepreneur? If the answer is yes then you're on the right path. Never open a gym solely on the reason you enjoy lifting. Like anything else this is a business and business requires more than passion. Passion alone can set you up for failure and even hating what you once loved. Trust in your logic and decision making skills if you want to succeed. 

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The gym was practically empty when we first started
My first recommendation is to start small, save, and grow with your business. To begin with loans are hard to come by. Assuming you can get a loan, money does not equal success. It will absolutely help but if you can't turn $100, into $1000 and so forth. What makes you think a bunch of money will change that? Last thing you want to do is blow it all away. So that said start by proving to yourself you can run business at a small scale. Whether its being an independent or having a super small studio. If you can outgrow that then you know you have it in you. If you're struggling with this then at least it's not a big loss and you can recover. Regardless you would be surprised the direction your business can take you over the years. Make sure you put money where you know it'll count; not where you think it may count only to later go unused. 
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Don't just wing it. Make a business plan for yourself. It doesn't have to be formal or professional. My original plans were just notes pinned on a wall but the point was that it gave me direction. You can't go somewhere if you don't know how you are getting there. You can leave it all to luck but you're also giving failure a higher chance to peer its ugly head. Ask yourself: How many sources of income can I create? How much money do I need to save? Should I go industrial or retail? How will I bring people in? If you can think of a question then write it down and do your best to answer it.
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Dated June 2015 - Setting the Stepping Stones for the Future SURGE
When making estimates to open up always make sure to under estimate your income and over estimate your expenses.  I personally highly recommend making a cash flow sheet where you can track your income and expenses. I started with this and continue to use it so I can track how much I can save and spend while still being able to view how the entire year looks financially. If you make $2,500 a month then list your income as $1,500. If you think you need to save $10,000 to open up then make it $15,000. Of course numbers are subject to change but you get the idea. You want to make sure you have some cushion room because things WILL come up. You can use a cash flow sheet to see when you can and can't spend money without leaving zero in the bank. For example, it doesn't matter if you will make a million at the 30th the month if you have zero in the bank on the 1st when all your bills are due!  You have to think ahead.
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My First Big Order Took Much Planning Ahead of Time
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​Triple check before making a decision and outline day to day activities in your head. When I was looking at spaces my realtor wanted me to sign before I even checked with the village if I could have a gym in that area. Sure enough when I called they told me the zoning wouldn't allow it. Can you imagine if I had signed a two year lease only to not be able to conduct business? Everything would have been over before we even got started! Always make sure you look into every detail especially when it comes to the fine lines. What insurance do you need? Are you allowed to put up signage outside? Is there enough parking to sustain growth? Will your neighbors get mad if you play music?  I recommend going through scenarios in your head of what daily activities may look like so you can pin point all the small details that can easily go missed.
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After Months of Dealing with the Village We Finally Got the Approval!
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​Don't be afraid to go industrial and review your lease closely. Store fronts are nice don't get me wrong but do you really need to pay an extra $5,000 a month to be next to a Target? It's not a coincidence so many small gyms go industrial. Industrial will always be significantly cheaper and personally I've always run a by an appointment only model which works perfect. Unless you feel you absolutely need walk in traffic, it doesn't hurt to start industrial. Once that's decided make sure you review your lease. I recommend getting a lawyer for this one so they can tell you EXACTLY what you are responsible for and other details that can screw you over in the future if you try reading it by yourself.

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​Don't just hide the cash you're making now. Start showing you can afford to lease and make yourself an attractive candidate for your new landlord.  Similar to buying a house you need to show you your landlord you can actually afford it. before they even agree to offer you a lease This includes statements and a good credit score. I recommend starting with making an LLC so you can then create a business account with your local bank. If you do business for yourself as a trainer you will absolutely want to start making deposits to show a paper trail. I also highly recommend using Quickbooks to manage all your book keeping. Find yourself an accountant who can help you set all that up so you can generate reports the day you need it. Finally if you have a bad credit score, that's definitely a big priority as well since most landlords will ask for this. 
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Official Paperwork After Going Through with the State!
If you don't have one already then find someone you can trust and consult with for making decisions.  I can't stress this one enough. We're all human and we make bad decisions. Before I make a decision I always consult with my fiance. I can trust in her 100% to let me know if I'm being smart or stupid. This has kept me from making some impulsive or emotional decisions that could have really set me back. I also recommend finding a mentor you can ask questions. Ideally another business owner that you look up to for their success. My clients Paul and Eva have been some of the biggest influences for me and when they would talk I was a sponge. Soaking every piece of advice I could get and I still absorb as much as I can to this day. ​
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Jackie Always There Since Day One; Helping Me Assemble Our First Power Rack at the Location I Originally Rented From
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Gym Family is Everything Through the Ups and Downs

​Finally choose something you are good at, stick with it, and treat people well. You can't try to be the best at everything or you'll end up being mediocre at everything.  Find your niche and stick with it. What sets you apart? For us it's private personal training and powerlifting and it's something we feel confident doing. Because of this people really value our service and are willing to go out of the way to stop in our gym. To go along with that a lot of the people who stop in also value our gym for the community we've built. This is no accident. It goes without saying but treat people well and they will want to support you! Easy enough advice but make sure you live up to it everyday. Remember, if you're in this for the money then you won't last very long.
WOW. I know that was super long and I can continue forever but hopefully something in there can help you get thinking in the right direction. Now it's time for the boring stuff. Numbers, numbers, and more numbers.
Part III: The Numbers 
Let me say first that the numbers I am listing will differ from case to case. These are just some estimates based off of my personal experience from to help get you thinking because let's be honest; you want a simple answer to show you how expensive this will be. Can things be done differently? Of course. Take it with a grain of salt and go from there. Since expanding these numbers have changed dramatically us but this is more or less where we started. ​

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Estimated Start Up Costs for a 2,500 Square Foot Facility (Industrial) - $28,650
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Lease - $3,000
  • $3,0000 (First Month and Deposit)

Facility - $24,100
  • Equipment - $15,000 (Monolift, One Competition Bench,  Two Power Racks, One Platform, Specialty Bars, Kilo Plates, Standard Plates, Utility Benches, Dumbbells, Kettlebells, Plyo Boxes, Sled, Yoke, etc.)
  • Gym Decal - $2,400
  • Security System Installation - $1,300
  • Office Furniture - $1500
  • Artificial Turf - $1500 
  • Rubber Flooring - $1400
  • Paint and Supplies - $1000
  • Speaker System - $500
  • Miscellaneous Building Supplies - $1000

Lawyer, Book Keeping, Insurance, Etc. - $1,150
  • Lawyer Lease Review - $500
  • Quickbooks Software - $300
  • Liability Insurance - $200
  • LLC Creation - $150

Marketing and Advertising - $400
  • Logo - $300
  • Website - $100
Estimated Monthly Bills for a 2,500 Square Foot Facility (Industrial) - $4,140
Lease - $1,500
  • $1,500 
 
Facility - $700
  • Utilities - $300
  • Security and Key Access System - $150
  • Internet/WiFi - $150 
  • Supplies - $100

Owner Draw and Personal Tax Write Offs - $1,550
  • Owner Draw - $1300
  • Car Insurance - $100
  • Phone Bill - $100
  • Fuel - $50
 
Professional Services, Subscriptions, etc. - $390
  • Janitorial Service - $250 
  • Mind Body Scheduling Software - $100
  • Book Keeping - $30
  • Spotify Premium - $10

Yes I know it seems like a lot of money. Don't let it scare you but I also want to get the point across that these numbers should be respected because it's easy to get carried away fast. I will say that this does not include taxes, maintenance repairs, advertising, meals and entertainment, travel costs, health insurance, credit cards fees, and a ton of other miscellaneous costs that can add up. These numbers can also creep up so you see why you would want to take my advice on under estimating income and over estimating expenses! You can also see why it's important to keep a cash flow sheet since it's easy to lose track of money on the start up and forget you still have monthly bills to take care of. Everything should ALWAYS be accounted for if you want to succeed. 
Part IV: Moving Forward 
​My recommendation would be to use everything I've noted as a point of reference. Depending on how, where, or when you want to open a gym can change a lot of these variable. Regardless of the things that can change I hope this serves as a tool to guide your thought and help the further planning of your own goals. Owning a business is not an easy task and I honestly believe every person should have a genuine shot at success in this country. Education is a big part of that and hopefully this piece of writing can give you a fighting chance so you too can reach The American Dream!
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About the Author


Sergio is a first generation Mexican-American college graduate, elite powerlifter, business owner, and State Chairman for the United States Powerlifting Association. Starting at the age of 23 he's been doing business for himself for almost 5 years now.