A gym is a club, building, or large room, usually containing special equipment where people go to do physical exercise and get fit. It is a building that’s meant for playing indoor sports or exercising.
Data shows that there are about 3,285 gyms in Texas and 5,377,481 residents visit health clubs (gyms) regularly in Texas. In 2021, the market size of the gym, health, and fitness club industry in the United States was over 35 billion U.S. dollars. The sector was forecast to reach almost 36.6 billion U.S. dollars in 2023.
Steps on How to Start a Gym in Texas
Table of Content
Conduct Market Research
If you are starting a gym business in Texas, you would need market research to be able to maximize profits from the business. The first step in the market research process for your gym business should be to develop research questions in line with your business goal and objectives.
You should source information that will help you maximize your business, get data that will give you information about what your potential market will be looking out for from the gym facility, and also help you operate your gym business with less stress.
a. Who is the Target Market for a Gym?
In recent times, most gyms and health and fitness clubs offer an opportunity for exercise and active leisure time for adults, teens, children, and families. The majority of gyms and health and fitness clubs are aimed at fitness enthusiasts, but they are increasingly being focused on other target groups (obese and people with certain ailments).
b. Is a Gym a Profitable Business in Texas?
Yes, the gym business is a profitable business. Data shows that the gyms, health, and fitness clubs industry have made a big splash over the years, as industry revenue was bolstered by rising per capita disposable incomes and the quest to stay fit and healthy.
c. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to the gym business.
d. Who are the Major Competitors in Texas?
- World Gym
- Planet Fitness
- Orangetheory Fitness
- Lowry Fitness Center
- Fitness Nation
- Iron Den Fitness
- Anytime Fitness
- Legacy Barbell – Gym In The Woodlands Texas
- Texas Elite Fitness – Houston’s Strongest Powerlifting Gym
- Warehouse Gym
- Colaw Fitness of Arlington TX Gyms
- Synergy Fitness
- Texas Health & Racquet Club
- Texas Muscle & Fitness LLC
- Texas Family Fitness
- Texas Health & Fitness Inc GYM
- Alphalete Gym
- Gold’s Gym Bryan
- CrossFit Texas
- The Field House Gym.
e. Are There County or State Regulations or Zoning Laws for Gyms in Texas?
Yes, there are zoning laws that require gym facility operators to follow specific rules and regulations, including some that apply only to players in the gyms, health, and fitness club industry. Please note that in some communities, zoning laws require gym facilities to apply for a permit from the city.
This application process allows the city’s zoning department to determine whether the gym meets the zoning rules of the community. Permits also ensure that all gym facilities are licensed by county or state agencies.
f. Is There a Franchise for Gym Business?
Yes, there are franchise opportunities for gym the business, they include;
- Basecamp Fitness
- MaxStrength Fitness
- Row House
- My Gym Children’s Fitness Center
- Fitness 1440
- Orangetheory Fitness
- Planet Fitness
- Anytime Fitness.
g. What Do You Need to Start Gym Business?
- A feasibility report
- Business licenses and permits
- Equipment and gym facilities
- EIN (Employer Identification Number)/Federal Tax ID Number
- Operational capital (For ongoing expenses)
Choose a Memorable Business Name
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for a gym business are;
Creative Gym Business Name ideas
- Palm Avenue© Gym and Fitness Club, Inc.
- Fred Nancy® Gym and Fitness Club, LLC
- James Harts® Gym and Fitness Center, Inc.
- Fitness Land® Gym and Fitness Club, Inc.
- Barry Jones™ Gym and Fitness Center, Inc.
- Old Yard™ Gym and Fitness Club, LLC
- Oak Springs© Gym and Fitness Club, LLC
- New Era® Gym and Fitness Club, Inc.
- Rainbow Town© Gym and Fitness Club, Inc.
- Justin Lake© Gym and Fitness Club, Inc.
- Raymond Bob® Gym and Fitness Center, LLC
- Park House® Gym and Fitness Club, LLC
- Magnus Greene™ Gym and Fitness Club, LLC
- First Port© Gym and Fitness Club, Inc.
- Moses Malone® Gym and Fitness Club, Inc.
- Play House™ Gym and Fitness Club, Inc.
- Dallas Club™ Gym and Fitness Center, Inc.
- Lead Way© Gym and Fitness Club, Inc.
- Sport Nest® Gym and Fitness Club, Inc.
- Roland George™ Gym and Fitness Center, Inc.
Register Your Business
a. What Type of Business Structure is Best for A Gym Business?
There are several options like a sole proprietorship, partnership, limited liability company (LLC), and corporation, but when it comes to the business structure of a gym business, the one that most players in this line of business consider is an LLC. It is considered because providers want to protect themselves from lawsuits.
b. Steps to Form an LLC
- Choose a name for your LLC.
- File articles of organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Gym in Texas?
- General Business License
- Zonal Permits
- Signage Permit
- Operational State Facility Inspections for your office facilities
d. What Type of Certification is Needed to Start a Gym in Texas?
You don’t need any certifications to start a gym business.
e. What Documents are Needed to Open a Gym in Texas?
These are some of the legal documents that are required if you want to run a gym business in Texas;
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval (For your indoor gym facility)
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting a gym business in Texas, there may not be a need to file for intellectual property protection or trademark, because the nature of the business makes it possible for you to run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Gym in Texas?
A gym business will cost from $120,000 to over a million dollars to start, depending on your business goals and objectives.
b. What are the Costs Involved in Starting a Gym in Texas?
- Business registration fees – $750.
- Legal expenses for obtaining licenses and permits – $7,300.
- Business consultant fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $85,000
- Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
- Operational cost (salaries of employees, payments of bills et al) – $20,000
- Equipment – $4,750
- Furnishing and equipping the gym – $185,000
- Website: $600
- Opening party: $3,000
c. What Factors Determine the Cost of Opening a Gym Business?
- The size of the gym business
- Other fitness accessories and services
- The choice of location
- The required licenses and permits
- The cost of furnishing and equipping the gym
- The cost of the insurance policy covers
- The cost of registering the business
- Cost of recruiting and training your staff
- The cost of the purchase and customizing of uniforms
- The cost of the grand opening of the gym
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
No, it is not compulsory to build a new facility for a gym because you can rent or lease an empty warehouse to get started.
e. What are the Ongoing Expenses of a Gym Business?
- Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
- Salaries of employees
f. What is the Average Salary of your Staff?
- Chief Executive Officer (Owner) – $55,000 per year
- Gym Facility Manager – $38,000 per year
- Accountant/Cashier – $34,0000
- Marketing and Sales Officer – $32,000 per year
- Fitness Coach (Gym Instructors) – $30,000 per year
- Customer Care Executive/Front Desk Officer – $23,396 per year
- Cleaners – $18,000 per year
- Security Officers – $21,150 per year
g. How Do You Get Funding to Start a Gym Business?
- Raising money from personal savings
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank
- Source for soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Barry Jones™ Gym and Fitness Center, Inc. is in the business of ensuring that people stay fit by exercising regularly and maintaining a healthy lifestyle. It will be located at 135 E John Carpenter 1400 Irving, Texas United States of America.
We were able to secure a standard facility in the heart of the city. Our gym and fitness club has a standard Olympic-size swimming pool. We are going to serve the entire community as well as visitors and travelers.
Barry Jones™ Gym and Fitness Center, Inc. is going to be the number one family-focused gym and fitness center in Irving, Texas and we will work hard to build our facility to meet the needs of the average family. Our gym facility has enough parking space to accommodate more customers.
- Personal training
- Group fitness classes
- Yoga classes
- Pilates (full body workout)
- Spinning classes
- Weight management
- Kinesis station
c. Mission Statement
The mission of Barry Jones™ Gym and Fitness Center, Inc. is to build a world-class gym and fitness club in Irving, Texas where residents can train for health and fitness; a place where residents can connect while achieving their health goals.
Our vision is to contribute our quota in encouraging families and residents in Irving Texas to engage in regular exercise to enable them to stay healthy.
d. Goals and Objectives
The goals and objectives of the gym business are to provide a safe and secured indoor facility for children and adults to exercise and build their bodies.
e. Organizational Structure
- Chief Executive Officer (Owner)
- Gym Facility Manager
- Fitness Coach (Gym Instructors)
- Customer Care Executive/Front Desk Officer
- Security Officers
a. SWOT Analysis
- Location of the gym facility
- Experienced and qualified employees and good management
- Availability of varieties of gym equipment and tools
- Secured office facilities
- Excellent operational history
- Not enough clientele to run at full capacity immediately
- We will need a loan to build our facilities
- The owner is currently running the business solo
- Lack of economies of scale.
- Growing number of families in our location
- Build upon existing clientele
- New services, technology, and the opening of new markets
- Favorable government policies.
- Loans diminish profitability until they are paid off
- The first year will be financially tight while we gain customers and pay off loans
- Competition in the area could increase
- Management of employees requires time, money, and efforts
b. How Do Gym Businesses Make Money?
Gyms make money by charging admission and membership fees, through the sale of food, beverages, and sports merchandise.
c. Payment Options
- Payment via on-the-counter bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines (POS)
- Payment via online bank transfer
- Payment via mobile money transfer
d. Sales and Advertising Strategies
- Introduce your gym by sending introductory letters to schools, households, and other stakeholders in your city.
- Open your gym facility with a party so as to capture the attention of residents
- Advertise your gym facility on national dailies, local TV, and radio stations.
- Promote your gym facility online via your official website and other social media platforms.
- Make use of handbills to create awareness and also to give direction to your gym facility.
- Position your signage/flex banners at strategic places.
- Create a loyalty plan that will enable you to reward your regular customers.
- Engage in roadshows within your neighborhood to create awareness for your gym facility.
a. How Much Should You Charge for your Services?
The average cost of a monthly gym membership is $37.71. The average cost ranges from $31.00 to $44.42. Budget gym membership prices range from $40.00 to $70.00 per month. High-end gym memberships range from $55.00 to $80.00 per month.
b. How Much Profit Do Gym Business Owners Make a Year?
On average, a gym owner can make from $75,000 to $150,000 a year. A successful gym facility itself can make over two hundred thousand dollars depending on its popularity, location, and assets.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the gym facility
- The types of related services offerings
- The location of the gym facility
- The management style of the gym facility
- The business approach of the gym facility
- The advertisement adopted by the gym facility
- The number of years the gym business is in business
d. What is the Profit Margin of a Gym Business?
The profit margin of the gym business is not fixed. It could range from 15 percent to 25 percent depending on the service offering.
e. What is the Sales Forecast?
Below is the sales forecast for the gym business. It is based on the location of the business and other factors as it relates to such startups in Texas;
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $380,000
- Third Fiscal Year (FY3): $560,000
Set Up your Shop/Office
a. How Do You Choose a Perfect Location for a Gym in Texas?
- The demography of the location as it relates to the number of fitness enthusiasts
- The purchasing power of businesses and resident at the location
- Accessibility of the location
- The number of gym facilities and other fitness facilities in the location
- The laws and regulations in the community/state
- Traffic, parking and security et al
b. What City is Best to Open a Gym in Texas?
- Dallas, Texas
- Austin, Texas
- Fort Worth, Texas
- Houston, Texas
- San Antonio, Texas
- El Paso, Texas
- Arlington, Texas
- Corpus Christi, Texas
- Grand Prairie, Texas
- Waco, Texas.
c. What Equipment is Needed to Operate a Gym?
- Resistance Training Machines
- Weighted Strength Training
- Power Lifting Equipment
- Chest and Arms Training Machines
- Chest Press Machine
- Training bench
- Dumbbell set
- Stationary bicycle
- Barbell Set
- Rowing machine
- Low-impact treadmills.
When hiring employees for a standard gym facility, you should plan to hire a competent chief executive officer (you can occupy this position), facility manager, accountant, gym instructors, fitness coaches, cleaners, and security officers.
Launch the Business Proper
No gym facility opens its door for business without first organizing an opening party to officially launch the business. You can do a soft opening party if you are operating on a low budget or you can go for a grand opening party. With a proper launching of the gym business, you will officially inform people in your city that your gym is open for business.
a. What Makes a Gym Business Successful?
- Choose a good and secure location to run the business
- Make use of reliable gym equipment and fitness tools
- Hire only competent, hardworking, and trustworthy staff
- Encourage the use of word of mouth to promote your gym business
- Leverage all available online and offline platforms to promote your gym business
b. What Happens During a Typical Day at a Gym?
- The facility is open for the day
- Administrative work is done
- The facility is cleaned and ready to welcome patrons
- Gym equipment and fitness tools are properly positioned and ready for use
- Service points are activated and ready to serve customers
- Maintenance of the facility is carried out
- The facility is administratively closed for the day.
c. What Skills and Experience Do You Need to Build a Gym Business?
- Good exercise and fitness skills
- Good facility management skills
- Customer services skills
- Interpersonal skill
- Business management skills
- Bargaining skill
- Work experience in the gym, health and fitness club industry
- Experience in managing people
- Experience in business administration.