Boutique gyms, also known as speciality gyms, seek members to participate in instructor-led courses or sessions on certain sorts of training. For example, your company may specialise on barre exercises, heart rate monitoring, crossfit training, pilates, powerlifting, or any of a variety of other sorts of fitness programmes.
While the standard gym may provide various programmes in a huge facility and members prefer to work out alone at their leisure, boutique gyms are more regimented and provide members with the opportunity to work out in an intimate atmosphere. A professional trainer will guide and inspire participants in planned lessons. As a boutique gym owner, you’ll likely spend less money on rent, equipment, and machine inventory while charging more than a traditional gym. You may also build more intimate interactions with your gym members.
Table of Contents
Follow these ten steps to open a boutique gym:
Create your Boutique Gym.
Create a legal entity for your Boutique Gym.
Taxes must be registered for your Boutique Gym.
Create a Business Bank Account and a Credit Card
Create Accounting for Your Boutique Gym
Obtain the Required Permits and Licenses for Your Boutique Gym
Purchase Boutique Gym Insurance
Create a Boutique Gym Brand
Create a website for your Boutique Gym.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. We’ve put up an easy guide to getting started with your boutique gym. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
STEP 1: Make a business plan.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
Fortunately, we have done a lot of the legwork for you.
What are the expenses of starting a boutique gym?
Your prices will be decided by your location, the sort of training programme you provide, and the equipment and apparatus you need. Depending on these and other circumstances, your launch expenses might range from absolutely nothing to one million dollars. A reasonable medium range may be $25,000-30,000.
A barebones enterprise, for example, would be you offering a small boot camp session a few times a week in an outside public access location, such as a beach or park. If your exercise consists mostly of callisthenics, jogging, and other aerobic activities, you may simply need jump ropes, stretch bands, and lightweight weights. (Do not even try this strategy unless you reside in a climate that allows for regular outside training.)
On the other end of the spectrum, you could only provide cutting-edge stationary cycles, treadmills, and lifting equipment, together with surround-sound music and an upmarket juice bar for post-workout socialising, in a modern facility in a high-rent commercial neighbourhood.
Regardless of the style of gym you use, these are some of your major charges.
Space rental — Depending on the city, this might range from $4,000 to $5,000 per month for 3,000 square feet. Don’t cut corners here, since your members won’t want to pay top cash to attend lessons in a cramped room or a bad neighbourhood.
Equipment — This may range from a few thousand dollars for numerous sets of dumbbells to hundreds of thousands of dollars for the most technologically sophisticated workout machines.
Insurance for liability and other risks – You should have everyone sign releases (here’s an example), but liability insurance is still required. More information regarding gym insurance coverage requirements and pricing may be found here.
Workers – For starts, you may be the lone employee, so either have funds so you don’t have to draw any pay from your company at first, or figure out your basic requirements. If you have a head trainer, you might pay him or her a commission (such as 25% of membership fees) to incentivize his or her sales efforts. Trainers, who are also independent contractors and are paid roughly $20 each one-hour session, may lead sessions.
What are the continuing costs of running a boutique gym?
Rent and utilities will be your most significant continuous costs. No matter how hot or cold it is outdoors, it is critical to maintain training rooms at a reasonable temperature. In many areas, $500 per month for utilities may be considered standard.
Your staff expenses will be determined by the amount of lessons you teach each week and how they are scheduled. At initially, you may want to attempt to plan lessons such that you can handle most or all of the training alone. This will greatly reduce your operational costs.
Consider inventory expenses if your gym sells smoothies, healthy snacks, coffee, or products.
Who is the intended audience?
In general, your members are interested in improving their health, looks, and/or lifestyle, and they are enthusiastic about exercise. This is evident in their willingness to follow instructions, attend planned lessons, and spend more than a basic gym membership in your region.
Because boutique gym memberships may be substantially more expensive than traditional fitness club subscriptions, you’re likely to attract a premium audience as well as customers who just believe the expense is warranted. Your clients will most likely prefer joining a community with like-minded individuals than working out alone, and favourable word of mouth will help you acquire more members.
How can a boutique gym generate revenue?
Memberships will be your primary source of revenue. You’ll recruit new members to six-month or one-year contracts at prices that are likely to be higher than local gym memberships—perhaps $100 or more per month. A smaller percentage of speciality gym operators charge per exercise. This pricing system, however, does not promote participation as much as a monthly payment that is due regardless of attendance.
For added income, several boutique gyms sell nutritious juices or smoothies, or provide coffee and healthy snacks after exercises. Some also offer modest gift stores where you may buy branded t-shirts, towels, or other goods. Childcare during exercises and dietary advice are examples of additional services.
How much money may you charge your customers?
If you can find out how much traditional fitness clubs in your region cost, use that as a starting point. You may charge a greater premium since your programmes are more personalised and professionally conducted. While standard fitness club memberships in your location may not cost much more than $30 per month, the services, atmosphere, and peer group you provide may cost three times that much.
What kind of profit can a boutique gym make?
Boutique gyms like Soul Cycle and CrossFit have expanded many sites around the country and even gone public, demonstrating that there is no limit to your success.
Here are the average income numbers for major and small clubs in 2014.
How can you increase the profitability of your company?
Consider your consumers’ whole spectrum of requirements. If their objective is to lose weight, for example, you may provide the services of a nutritionist to design meal plans. You might also explore focusing on a tiny yet underserved market in your town. For example, one boutique gym specifically serves pregnant women, providing a variety of safe and effective activities and dietary guidance for that specific population. The deeper you understand your target audience, the more ways you will be able to give the answers they need. It will keep your team loyal while also delivering a consistent cash source.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
Creating a formal company organisation, such as an LLC or corporation, shields you from personal liability if your boutique gym is sued.
STEP 3: File your taxes
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!
Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
These guides will teach you more about small company taxes:
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
STEP 4: Establish a company bank account and credit card
Personal asset protection requires the use of distinct business banking and credit accounts.
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Establish a business bank account.
Opening a business bank account is not only required when asking for business financing, but it also:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Create a net 30 account.
Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Apply for a business credit card.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Build your company’s credit history, which will be important for raising funds in the future.
STEP 5: Establish business accounting
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
STEP 6: Obtain all required permissions and licences
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
Requirements for State and Local Business Licensing
To operate a boutique gym, some state permissions and licences may be required. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.
Boutique gyms that plan to offer refreshments or other merchandise may also want to consider filing for a resale licence, since a resale certificate permits shops to acquire goods intended for resale without paying sales tax.
Furthermore, local licencing or regulatory restrictions may apply. For additional information on local licences and permissions, please visit:
Check with the clerk’s office in your town, city, or county.
Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.
Waiver of Liability
To reduce legal risk and promote transparency, it is best to give clients with informed consent agreements. These agreements are required because customers may be subjected to potentially hazardous equipment or physical exertion. Here’s an example of such a contract.
When you join up for Rocket Lawyer’s premium membership, you can easily produce a professional release of liability form for your gym. Members have access to hundreds of legal agreements and on-call lawyers for free legal assistance for $39.95 each month.
Licensing of Music
Permission from the composer or licence holder is required to play music in a commercial environment. The simplest method to do this is to secure a “blanket” licence, which allows your company to play music held by a wide number of artists and recording studios. These licences are available from performance rights organisations such as ASCAP and BMI.
Labor safety regulations
It is essential to follow all Occupational Safety and Health Administration regulations. Relevant obligations include, among other things, employee injury records and safety signs.
Occupancy Certificate
A boutique gym is usually conducted from a studio. A Certificate of Occupancy is often required for businesses that operate from a physical site (CO). A certificate of occupancy certifies that all building rules, zoning laws, and government requirements have been satisfied.
If you intend to rent a space:
In most cases, it is the landlord’s obligation to get a CO.
Before leasing, ensure that your landlord has or can receive a valid CO for a boutique gym.
A new CO is often required after a big remodelling. If your location will be refurbished before opening, incorporate wording in your leasing agreement saying that lease payments would not begin until a valid CO is given.
If you intend to buy or create a location:
It is your responsibility to secure a valid CO from a local government entity.
Examine all building laws and zoning standards for your boutique gym’s location to verify compliance and the ability to receive a CO.
STEP 7: Obtain commercial insurance.
Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.
STEP 8: Establish your brand
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
How to Market and Promote a Boutique Gym
Social networking is essential. At the very least, you should have a Facebook page and an Instagram account. Allow prospects to hear from members who are similar to them, and display several images boosting the equipment as well as the cleanliness of the place.
You might also explore hiring a stand at health expos, however this can cost $1,000 or more. That’s a lot of money, but you may get it back with only one or two new members that stay for a year.
Some marketing initiatives are as easy as posting leaflets on windshields or bulletin boards in coffee shops, shopping malls, and schools where potential members may be located.
How to Keep Customers Returning
How many individuals do you know who set a New Year’s resolve to lose weight only to ditch it by mid-January? Many of your members join because they see the value of having the assistance of a professional trainer and a community of like-minded peers. Create a sense of community for your consumers, and they will be more inclined to return.
Give prospective members a free trial period of a week or two. According to one boutique gym manager, she was able to retain approximately 67 percent of prospects who accepted a trial and attended at least three or four classes.
Encourage positive feedback and word of mouth as well. Offer membership discounts or free/discounted products and services to anyone who refers friends (for example, a free t-shirt or $25 in smoothies).
Finally, pay close attention to your members. Are they able to find a class that fits their schedule? Is the programme well received? If you ask for their honest opinions, you’ll be less likely to lose them when their contracts expire.
STEP 9: Create your company’s website.
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
STEP 10: Install your company phone system.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.