How much does it cost to open a gym?

There’s no denying that the fitness industry is booming. According to a recent UK health and fitness market report, gym membership numbers are rising year on year – and there’s a particularly strong preference for lower-cost gyms.

With that in mind, you might be considering opening your own budget-friendly fitness studio. Or perhaps you’re hoping to launch a more specialist studio space. But exactly how easy is this to do and what expenses will it involve?

Below, we take a look at what costs opening a new gym might entail – from initial investments to ongoing maintenance.

Initial costs of opening a gym

Before you even open your doors to potential customers, you’ll have a number of costs to factor in – from actually finding and paying for a suitable space to kitting it out with all the right equipment.

This initial step may cost anywhere between £70,000 to £120,000 (or more in some cases) depending on several variables. Meaning? You’ll need to have a significant amount of funding behind you, whether that’s through your own savings, a business loan or investor capital.

This may sound like a good chunk of money, so let’s dive in and see where it will most likely be spent during those first phases of opening a new gym:

Leasing/buying a suitable space

You can’t open a gym without having a physical location sorted, so this will be one of your first priorities. The cost of leasing or buying a suitable space will vary drastically depending on a number of factors including:

• Location, location, location – It’s logical to assume that a city centre location will be more expensive than somewhere a bit further out. However, you’ll want to weigh up how much business you’re likely to get if you open a gym somewhere less populated and whether the lower rent will be worth it in the long run.

• Size of the space you need – Consider the square footage you might need (factoring in things like space for changing rooms and lockers). As a general rule of thumb: the bigger the space, the higher the costs.

• Special facilities/amenities – Will your gym just be weights and machines? Or do you want something more specialist such as a dance studio with floor-to-ceiling windows, a spinning room with a high-tech sound system or even a swimming pool with a sauna?

• Decorating and remodelling – Unless you find a space that was previously used as a gym, it’s likely you’ll need to factor in decorating costs to get it up to scratch. This could mean anything from buying a few pots of paint to hiring builders if you need extensive remodelling work done.

Permits and certifications

As with any business, there’s likely to be specific mandatory paperwork that you’ll need to acquire to operate your new gym. This could be something as simple as health and safety certificates or be much more specific like a local council permit to change the use of your chosen space.

Buying equipment

Getting equipment for a gym – whether that’s free weights and/or machines like treadmills, exercise bikes and rowing machines – is a big initial cost but 100% necessary to entice new customers through your doors. You might decide to buy some of this outright or lease it from a specialist company for a monthly or annual fee.

If you’re buying new gym equipment, you can expect to spend around £35,000 to £40,000 for a 200-member gym. Leasing the same equipment may cost you around £2,500 per month.

Hiring staff members

You can’t open a new gym without having any employees! This might be reception staff, personal trainers or instructors to teach certain classes. There can be several costs involved in hiring staff, including paying for uniforms to be made (on average around £30 per employee), training, plus insurance for anyone who will be directly working with members of the public on their fitness goals.

You’ll also need a bit of tech to keep things running smoothly, so save some money back to pay for things like computer systems, a website and even an app to make booking and managing memberships smoother. You may be able to get a simple business app for around £10,000.

Ongoing costs of opening a gym

Congratulations! Your gym is officially open. You’ve started to welcome members and finally get paid for all your hard work. However, there are still many ongoing costs that will need to be budgeted for month on month. Here are just a few of the more common ones:

Bills and rent

Whether you’ve bought your building or you’re leasing it, you’ll have monthly bills to pay – from your rent or mortgage payments to costs of things like electricity and water.
With inflation typically rising year on year, bills are something you’ll need to seriously budget for and ensure you have more than enough money to cover in case of unexpected price hikes.

General maintenance

Keeping your new gym looking smart means ongoing maintenance which will incur a small cost. This might be touching up the walls when they get scuffed or damaged, paying for equipment repairs and covering any IT updates to your website and/or app.

Staff wages and rehiring fees

All those staff members you hired when you opened your gym will need to be paid a monthly wage. The total cost of this will vary depending on how many people you hire – but don’t forget to factor in paying for cleaning staff, maintenance people or any ad-hoc employees you use to cover sickness or holidays.

Staff will come and go too, so set some budget aside for rehiring costs. This will help cover things like posting job adverts or paying for specific certifications and training new staff members may need.

Insurance for gyms

Another ongoing cost of opening a gym that you’ll definitely need to factor in is insurance. Having adequate insurance is vital for any business – but especially for somewhere like a gym where your members will be using heavy equipment that may put them at risk of injury.

Having good insurance will allow you to swiftly repair or replace damaged equipment. It can also help cover the costs of any medical bills or legal claims from members. Plus, if you have a quieter trading period or have to close temporarily due to unforeseen circumstances, it may help cover loss of earnings too.

Specialist insurance for gyms and studios through Ripe

Here at Ripe, we have years of experience in providing specialist insurance for gyms and studios across the UK. Get in touch with our team today to see how we can tailor your policy to suit your needs – no matter if you’re opening a small neighbourhood gym or a dedicated hot yoga studio.