How to Start a Fitness Business

Embarking on setting up a successful fitness venture is an exciting endeavor. Not only does it allow you to pursue your passion for health and fitness, but it also allows you to make a positive impact on the lives of others. Like starting any business, it's a lot of hard work and requires careful planning and execution.  

If you're unsure how to start your fitness business, you've come to the right place. This guide walks you through the process—from planning and funding to marketing and growth—so you can launch with confidence. You'll need to: 

• Find your niche
• Do your research
• Develop a solid business plan
• Find the perfect location
• Build your brand
• Secure funding/financing
• Equip your space
• Build a strong team
• Find the right fitness management software
• Create a marketing plan 

Find your niche

Defining the niche for your new studio is key to your journey to start a fitness business. Consider what sets your business apart from others in the industry. Are you passionate about high-intensity interval training (HIIT), yoga, CrossFit, Pilates or specialized programs? Will you provide group classes, personal training, virtual services, or all of the above? By defining your niche, you can tailor your offerings to meet your target audience's needs and interests. 

• Perform a self-assessment to identify the fitness modalities that you are passionate about and have experience in. Consider whether you are enthusiastic about yoga or have multiple years of Pilates experience. Reflect on which fitness genre brings you the most joy and sparks your interest in sharing it with others. 

• Research what modalities are lacking in the area. For example, if there aren't many personal training or CrossFit gyms, you may have an opportunity to provide those to the community. 

• Gather local feedback from friends, colleagues, and community members to gain more perspectives on what best suits people's needs and preferences.   

Nick Mitchell, the founder of Ultimate Performance, emphasizes the significance of having a unique selling point when launching a new fitness business in a highly competitive industry. "When I launched Ultimate Performance, I wanted to build a personal training space where results matter. Where clients could genuinely see a return on their investment.   

For example, my trainers are only promoted based on the results they deliver, not their session numbers, so they are incentivized to deliver the best possible result for their clients. That's our USP, and that's why we're the most successful personal training business in the world." 

Do your research

Comprehensive market research is essential for understanding your target demographic, assessing competitors, and identifying potential gaps in the market. Conduct surveys and interviews and analyze industry trends for insights into consumer needs, preferences and market demand, especially in the area you intend to serve.  

Identifying and understanding your target market will better equip you to make informed decisions about your operating hours, amenities, marketing strategies and more. 

At this stage, estimate the startup costs for your new studio or gym, including rent, staffing, insurance, maintenance, and other operating expenses. 

Name your price

Pricing is essential in starting a fitness studio, so you should try to identify the best pricing structure for your services. Consider factors like your target market, the value you'll provide, industry standards and your overall business goals to price effectively.

• The market rates within your area
• Your operating costs, such as rent, equipment, insurance, utilities, and staff wages
• Your level of expertise and experience. For example, if you're an expert in your field and bring unique value to your services and business, you can factor that into your pricing
• Offering various pricing tiers, such as single sessions, weekly or monthly packages, or discounted rates for annual contracts 

As you determine your prices, don't underestimate the power of a well-crafted intro offer. It will attract new clients and increase the chances they'll stick around. 

Develop a solid business plan

Your business plan is the foundation of your fitness venture. Writing down your goals, target market, pricing structure, marketing strategies, and financial projections helps you make informed decisions and attract potential investors or funding. This stage is also a good time to determine the right legal structure to set your business up for long-term success. 

• An executive summary that provides an overview of your business
• A company description and market analysis that details what problems you plan to solve, your ideal clientele, and your competitive advantage
• An overview of your organization and management, including the legal structure of your business and staffing plans
• A detailed description of your services
• An overview of your marketing and sales strategy to attract and retain clients
• An outline of how you plan to fund your business and financial projections over the next five years 

Find the perfect location

The location of your gym or studio plays a major role in your long-term success. When scouting potential spaces, focus on accessibility, visibility, and the overall experience you want to create for your members. Look for areas with steady foot traffic to attract walk-ins and build brand awareness. Ensure there's ample parking or convenient public transportation nearby.  

Research nearby competitors to understand the local market. If similar businesses are in the area, identify how you can stand out through your offerings, atmosphere, or pricing. Pay attention to neighboring businesses as well; those that attract your ideal clientele can help drive more potential members your way and even open doors for partnerships. Finally, review local zoning regulations, as some cities restrict where fitness facilities can operate. Confirm these requirements before signing a lease to avoid potential setbacks. 

Build your brand

This part is fun but challenging. Choosing a name for your fitness business and creating your brand are essential first steps. Remember, this will help set your business apart from the competition and showcase your business's personality. You'll need to decide what you want to be called, how you'll engage with your customers (digitally and in person), and how you want to look.  

One critical aspect of your overall brand is your visual brand identity. These elements will appear online, on marketing materials, inside your physical space and on branded swag. This includes:  

• Logo
• Color palette
• Typography
• Photography  

Secure funding/financing

Financing a new small business can be challenging. Take the time to explore various financing options, such as grants, small business loans, crowdfunding or investments from private investors. During this process, you'll present your business plan and financial projections to lenders or investors to demonstrate your venture's viability and potential return on investment. 

Some business owners self-finance their gym or studio and/or take personal loans from friends and family to help get established. Others turn to small business loans. Whatever you decide, a clear financial plan will help you manage your resources effectively. 

Equip your space

Behind every great fitness facility is a thoughtfully designed space. Equip your studio with the right tools and amenities for your niche—whether that means purchasing or leasing fitness equipment, flooring, mirrors, sound systems, and other essentials. The goal is to design a functional and inviting atmosphere that reflects your brand and provides a positive experience for your clients. 

Build a strong team

Finding and retaining good employees is challenging, but it's critical to the success of your business. To build your team, define each role and its requirements and qualifications. Create detailed job descriptions for personal trainers, group fitness instructors, front desk staff, etc. 

Hire qualified individuals who share your business values and have the necessary expertise. Provide good training to give your employees the skills, knowledge, and confidence to serve your clients well. A clear onboarding plan will help new hires understand your business, fitness management software, and expectations. 

Doing so ensures they know how their role and responsibilities impact the big picture. The onboarding period can take place over a few days, weeks, or even up to a few months. Taking things slow will save you and your employees time in the future. 

Find the right fitness management software

From streamlining business operations to simplifying the booking process for your clients, choosing the right software will enable you to spend less time doing repetitive tasks and more time delivering high-quality experiences to your community.      

There are many factors to consider when selecting a platform, so take the time to outline what features and processes matter most to you and your business. For example, your management software should be user-friendly for you and your clients, ensuring a smooth process and fostering customer loyalty. It should also help improve routine tasks related to inventory management, performance metrics, and client management.   

Mindbody's platform is specifically designed for fitness businesses. It simplifies and optimizes tasks like class check ins, employee scheduling, client booking, retention marketing, and payroll tracking. 

Create a marketing plan

Effective marketing is essential for attracting new clients and retaining existing ones. Develop a comprehensive marketing plan that utilizes a mix of online and offline strategies, including building a branded website for your business, creating a social media presence, targeted advertising, and community outreach. Use content marketing, promotions, and events to build brand awareness and drive customer engagement. 

Digital marketing

• A well-designed website will help potential customers learn more about your business, showcase your brand, and streamline the booking process.
• Search engine optimization (SEO) helps increase your online visibility. Your website will appear higher in relevant search results and allow you to reach a wider audience.
• Social media is a great way to market your fitness business organically and with paid ads. Running promotions on Instagram, TikTok, and Facebook—maybe offering grand opening discount services or referral codes—will attract attention and expand the reach of your new business.
• You'll want to incorporate email and SMS campaigns that target both existing clients and new prospects to drive higher engagement.  

Local advertising

• Although less popular than before, flyers are still a great option to let shoppers know about your studio or gym, especially when you have an irresistible intro offer.
• Local ads are an effective way to reach potential clients in your area. This could include local event sponsorship, ads in local publications, or placement in local online directories.
• Collaboration with complementary businesses expands your reach, attracts new clients, and creates mutually beneficial relationships.  

Events

Hosting events, like pop-ups or an open house, is a great way to promote your business to the broader community. They'll attract new clients, showcase your expertise, and create a sense of camaraderie, too.

Your journey to starting a fitness business

Now that you've laid the necessary groundwork, it's time to open your doors to the public. Like anything new, getting things right may take some trial and error. Be prepared to adapt and refine your offerings and operations as you grow and evolve your business. You can build a successful and sustainable fitness venture by following these essential steps and staying committed to delivering exceptional service.