Determining Your Budget
As a New Gym Specialist, people often come to me to help them to turn their dream of opening a new gym into a reality. Often, they are fitness enthusiasts who know how important the role of fitness plays in living a quality enriched life. They are excited about the opportunity of owning their own coed gym, personal training studio, crossfit gym, women’s only gym or other type of gym and are ready to take the next steps towards doing so.
In this third part of this Series, “How Much Does Gym Equipment Cost?” I discuss an essential step in moving forward towards opening your new gym – Determining Your Budget
Even for the fitness enthusiast who simply loves working out and could spend all day in the gym, to be a successful gym owner, opening a new gym needs to be undertaken for what it is – a business endeavor that can be extremely rewarding both personally and financially. As such, you need to have an idea of what you are budgeting for your gym equipment before you contact your New Gym Specialist to put together a Complete Package for your new gym.
Once your New Gym Specialist has a close estimation of your budget, he can work to maximize the quality and the amount of your cardio equipment, selectorized strength equipment, plate loaded equipment, free weight equipment and other items so that you get all that you need to be successful while staying within your budget. But first, you need to determine what your budget is.
Determining Your Budget for your Gym Equipment
Your budget will determine the type of gym equipment that you can get, the amount of gym equipment that you can get and the quality of gym equipment that you can get. Therefore, you need to know what your budget is at the outset. You can determine your budget by answering a few simple questions:
- How much can I afford to pay for my gym equipment?
- How much am I comfortable with paying for my gym equipment?
- How am I going to pay for my gym equipment?
Let’s take a closer look at these questions.
- “How much can I afford to pay for my gym equipment?” – Generally, just as with any new business endeavor, opening a new gym requires some monetary expenditure on a few different things such as the expense of the build out of the room, advertizing, staffing and the gym equipment itself (cardio equipment and strength equipment). Each of the expenses is separate from the other and should be looked at as a separate operating budget. This will allow you to allocate a specific amount of funds for each part of your new gym opening project and to stay within your budget for each part.
Determining how much you can afford for your new gym equipment is pretty much the same as how you figure out how much you can spend on any major purchase. For example, let’s say that you are in the market for a new car. You already know how much your income is and what you have in the bank or other investments where you can get liquid capital, so you have a good idea of how much you can afford for a new car.
You should take the same approach when determining how much you can afford for your gym equipment. Know what you have on hand, what is available to you and, if you have another revenue stream, what that is.
- “How much am I comfortable with paying for my gym equipment?” – Although this may initially seem to be the same as question #1, there can be a difference between what you can afford and what you are comfortable with allocating. If you are not comfortable allocating the maximum amount that you can afford for your new gym equipment, your New Gym Specialist can work closely with you regarding financing avenues such as leasing, (again discussed in Part 4 of this Series).
Keep in mind that your new gym is a business that is there to generate a healthy income for you. You do NOT want to cut corners and purchase less equipment than what you need because it’s vital to start out strong in appearance and function for prospective members to join.
Also, don’t settle for used gym equipment for your new gym. Remember that this is your livelihood and your equipment is a reflection on you, as the owner. This was discussed in Part 1 of this Series, but it’s worth mentioning again here.
Be comfortable, but also be realistic. You’re not going to open a new gym business that you are going to make your living with and purchase your gym equipment for $10,000, (Unless it’s a very small one-on-one personal training studio), any more than you can get that new BMW for $10,000.
Your New Gym Specialist is your #1 Source for helping you get the best equipment and stay within your budget.
- “How am I going to pay for my gym equipment?” – Once you know your budget and how much you are comfortable with spending, you need to determine how you are going to pay for your gym equipment. There are several options to consider and this is the subject of the next part of this Series.
To summarize, done right, starting a gym can become a very lucrative and enjoyable source of income. The gym equipment that you choose is a very important aspect of this business and, by answering a few quick questions, you will know how much you have to allocate for it. Once you know this, it’s time to contact your New Gym Specialist to get to work for you.
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If you missed Part 1 or Part 2 of this information series check it out below or some of our other important and useful information guides.
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Written by Bill at BAMPSCO International Inc. / GymStarters.com