Sports clubs attract investors by the fact that the demand for their services continues to grow, and so do prices. Of course, the profitability of the project depends on the level of the club. Experts believe that so-called “basic clubs” should be built.
Sports clubs can be conditionally divided into power, women’s, children’s, universal or basic and multifunctional.
A multifunctional club, initially involves large areas, and hence construction costs (it is difficult to find a ready-made room for such an institution). The main set of services of such a club is 5-15 halls for sports, a swimming pool, a beauty salon, billiards, recreation rooms, tennis courts, a yacht club, golf that is in vogue … According to experts, the minimum investment in this case will be from $ 1, 5 thousand per 1 sq.m.
The basic club involves providing clients with basic sports and several additional services: training on simulators, movement programs (aerobics, shaping, yoga), sauna, massage, solarium. It is these clubs of the middle price category that are most lacking on the market.
The initial investment in such a club is $50-100 thousand, of which $10-35 thousand will be required for repairs, $28-40 thousand will be spent on the purchase of exercise equipment, $10-23 thousand will be needed to equip the sauna and solarium, 0.7-1 thousand – for promotion and advertising and the same number for obtaining permits.
In addition to initial investments, you need to take into account current expenses – $ 8-15 thousand per year – and rent – from $ 2 thousand to $ 25 thousand. Taking into account the capacity of such a club is 20-40 people and the cost of a monthly subscription is $ 25-60, the payback period of the club will be 3 to 6 years.
Where to begin
As in any business, you will have to start with the development of a strategy. You can also develop the concept of the club yourself, if the investor or future manager clearly understands all the stages of creating a club and bringing it to the market. If you don’t have your own experience and a specialist, you can turn to fitness consultants who will help you develop an architectural and construction project ($8-14 per 1 sq.m.), engineering and design projects ($4-6 and $10-12 per 1 sq.m. .), select equipment, train staff.
The developed project for the reconstruction, redevelopment of the premises and changes in the facade will need to be coordinated with the architectural department and the department for the improvement of the state administration of the district (city), fire authorities, and the sanitary and epidemiological station. In addition, even before the start of the functioning of the sports club, the tenant will need to conclude agreements with the ZhEK, city water and energy supply organizations – the city water canal and the city energy.
Official rates for such work are set by administrations and may vary significantly depending on the region. As experience shows, more serious expenses can also arise – unpaid electricity bills of the previous tenant, for example. All approval procedures may take from two months to a year.
The best option for a future sports club is to rent former sports schools, departmental sports complexes, and gyms. But now there is a clear shortage of such premises, so investors, as a rule, rent the first floors of offices and residential buildings. The minimum area where a club can be placed is 150-220 sq.m. Of these, 80-100 sq.m will be occupied by a gym, 30 sq.m – an aerobics room, 40-60 sq.m – locker rooms, showers, a toilet, 10 sq.m – a massage room, 15-20 sq.m – the director’s office and an accountant.
The main thing to keep in mind when planning the premises is that the club should not be crowded, and if there is still not enough space, then it is better to refuse some of the services. Clients will not go into a cramped room. This is an axiom.
It is desirable that the rented premises be equipped with an exhaust ventilation system, or install two powerful air conditioners, which will cost $ 2-2.5 thousand. You also need to take care of a special floor covering in advance – ordinary linoleum is not suitable, it is “traumatic”.
As for the walls, at least one wall of each hall must be mirrored. Mirrors visually increase the room, create the effect of free space. In the aerobics hall, a dance machine for stretching should be installed.
Repair of the premises will cost at least $ 10-35 thousand.
Name / Price with VAT, USD
- Strength training equipment VASIL GYM, VASIL MASTER+
- Horizontal Bench – 306
- Weightlifting bar bar for 200 kg – 99
- Angled Up Bench – 315
- Barbell for 150 kg – 62
- Disc stand 131
- Disc 2.5 kg (10 pcs.) 54
- Disc 5 kg (10 pcs.) 108
- Disc 10 kg (12 pcs.) 259
- Disc 15 kg (20 pcs.) 648
- Disc 20 kg (20 pcs.) 864
- Smith Machine 586
- Leg Press Attachment 962
- 4-Position Block Frame Station and Pull Handle Set (4 pcs) 2959
- Bench adjustable 225
- Press bench 180
- Roman chair 266
- Back Extension Machine 198
- Stand for dumbbells for 10 pairs and professional dumbbells (9; 12; 16; 18; 20; 22; 24; 26; 30; 35 kg) 1225
- Chrome dumbbells (1-10 kg) with stand 463
- Glute Trainer 920
- Hip extensor machine 689
- Hip Flexor Machine 689
- Biceps machine 648
- Triceps Machine 679
- Leg trainer 825
- Leg Raise Machine 825
- Calf-machine (sitting) 592
- Total 15777
- SportsArt cardio equipment (Taiwan)
- Treadmill (motor – 3 hp, belt – 56 x 140, 12 levels and 2 modes) 4875
- Horizontal exercise bike (generator system, 12 programs, 14 load levels) 2750
- Stepper (generator system, 12 levels and 2 modes) 2750
- Orbitrek (generator system, 12 levels and 2 modes) 3750
The most expensive item of expenditure is the purchase of simulators. Equipping 1 square meter with domestic simulators costs $200-300 on average, and $400-900 with imported ones.
The basic set of equipment consists of 15-17 strength training equipment and 4-5 cardio equipment and will be freely placed on 100 sq.m. and will cost $25-30 thousand.
Recently, the world’s leading manufacturers of sports equipment, the so-called semi-professional exercise equipment, have been offering an offer on the market. They are not inferior to professional ones, they cost three times cheaper, they can “pass” up to 30 people a day and are quite suitable for completing a basic club.
Some experts believe that in terms of their functionality, Ukrainian simulators are not inferior to Western ones, and the price is significantly (3-5 times) cheaper.
When equipping the hall, you must follow the following rules:
- each simulator should account for at least 4-6 sq.m,
- in the area of free weights (dumbbells, barbells) there should be a place for securing the client,
- there should be a place in the hall for a warm-up.
In addition to exercise equipment, you will need a music center and a TV with a VCR or DVD player. All this equipment and accessories will cost $28-40 thousand.
- LifeFitness equipment (USA) for a 100 sq.m gym offered by Kettler-Sport
- Equipment for “light commercial use”
- Name / Price with VAT, USD
- Strength training equipment
- Multifunctional trainer 1749
- Smith machine, standard configuration 2299
- Multifunctional bench 439
- Limiters 159
- Disc Supplement 149
- Rubberized cast iron pancake 1.25 kg (2 pcs.) 20
- Rubberized cast-iron pancake 2.5 kg (2 pcs.) 36
- Rubberized cast iron pancake 5 kg (2 pcs.) 64
- Rubberized cast iron pancake 10 kg (2 pcs.) 117
- Pancake cast iron rubberized 15 kg (2 pcs.) 214
- Pancake cast iron rubberized 20 kg (2 pcs.) 335
- Pancake cast iron rubberized 25 kg (2 pcs.) 389
- Overhead rowing machine 699
- Gak machine/leg press 1949
- Leg curl/extension machine 699
- Leg Abduction/Reduction Machine 749
- Horizontal Bar / Parallel Bar / Knee Raise 649
- Roman bench-hyperextension 399
- Ab bench 349
- Calf Bench 439
- Horizontal bench 229
- Bench with tilt change (angle – 0-90o) 389
- Bench for biceps 499
- Dumbbell set (10 pairs) 1566
- T5 treadmill (Flex-Deck, 0.8-20 m / h, angle – 0-15o, canvas – 51 x 147 cm, standard + additional programs, quick start, user weight – up to 180 kg) 5149
- C7i upright exercise bike (interactive programs, 20 load levels) 2789
- R7i horizontal exercise bike (interactive programs, 20 load levels) 3699
- X3 Elliptical Trainer (Standard Programs; 20 Load Levels, Forward and Reverse, Fat Burn and Cardio with Polar) 3949
Name / Price with VAT, USD
Strength training equipment
- 45 deg. Back Extension 45 degree hyperextension 1049
- Adjustable Ab Bench 1049
- Adjustable Bench 1049
- Back Extension, back loom 4399
- Cable Crossover, crossover 6099
- Chest Press 4449
- Pectoral Fly, butterfly 4599
- Hip Abduction/Adduction,
- mixing/breeding 5049
- Leg Curl 4249
- Leg Extension 4449
- Seated Leg Press 6099
- Seated Row rowing 4599
- Arm Curl Biceps 3999
- Triceps Extension 4199
- Pancakes cast iron rubberized 1.25-25 kg (2 pcs.) 1175
- Treadmill LT9100TN (Polar heart rate sensor, 2 interactive and 4 standard programs, speed – 0.8-20 km / h, angle – 0-15o, canvas – 51 x 152 cm, maximum user weight – 160 kg) 11699
- Treadmill LT9500HRN (Polar heart rate and touch sensors, 2 interactive and 4 standard programs, speed – 0.8-20 km / h, angle – 0-15o, belt – 51 x 152 cm, maximum user weight – 180 kg) 13699
- Upright Exercise Bike LC9100 (Polar heart rate sensor, 2 interactive and 4 standard programs, maximum user weight – 159 kg) 4899
- Recumbent bike LC9100R (Polar heart rate sensor, 2 interactive and 4 standard programs, maximum user weight – 159 kg) 5549
- CT9100T Elliptical Trainer (Polar heart rate sensor, 2 interactive and 3 standard programs, max user weight 159kg) 8199
According to most experts, success in this business depends primarily on the staff. The staff of a small club consists of a manager, coach, administrator, accountant, technical worker. The manager and coach are the key employees of the sports club, it depends on them whether the club will “go” or remain just a mountain of “iron”.
The manager must have a good knowledge of the fitness services market. His responsibilities include the formation of pricing policy, marketing, promotion of the club. The salary of such an employee is $300-500 per month.
The coach sets the sports “mood” of the club. A good coach should always know what is popular and selling well in our country today, and what is already popular in the West. He determines the programs that the club offers, selects instructors. In large clubs, the person with these responsibilities is called a “fitness director.” In addition to the salary, he receives a percentage of the payment for individual training.
The instructor’s salary consists of hourly wages plus a percentage of individual training. $150-300 per month.
The total salary of the staff (manager – $300-500; trainer – $150-300; 2-3 instructors – $80-100 each, etc.) will be about $1000 per month.
As for the pool, naturally in a small club it will also be small – for example, 3 x 5 m and up to two meters deep. Today, the market offers a wide selection of pools that involve economical heating, autonomous cleaning, filtration and disinfection of water. Installation of the pool will cost $6-12 thousand depending on the size.
The cost of a Finnish sauna measuring 2 x 2 m (designed for four people) with installation will cost $ 1.5-2.5 thousand. Visiting it can be paid additionally.
The cost of a solarium depends on the power. For a small fitness club, inexpensive Dutch solariums Ali Sun and Garda Sun, which cost $3-6 thousand, depending on the number of lamps, are quite suitable. For a slightly larger amount, $4-7 thousand, you can buy a more powerful used Ergoline solarium.
An advertising campaign should be planned long before the opening of the club. Even at the stage of reconstruction, it is desirable to indicate on the billboard that the sports club is being reconstructed, the opening is planned at that time.
Large sports clubs use all sources of advertising – from the distribution of booklets to advertising in the press, on billboards, radio. But television is considered an ineffective advertising medium.
A small club can distribute in the “coverage area” a flyer-invitation to the opening with a description of the services, and a discount for the first visitors. Distribution of a thousand foxes will cost only 50 gr. But practice shows that word of mouth is considered the best promotion channel for fitness.
In the course of work, it is imperative to inform about summer and New Year discounts, club promotions. In total, promotion costs can be about $700-1000.