What Are The Key Factors To Remember Before Buying A Gym Franchise?
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Given the growing consciousness among the youth about their health and fitness, the Indian fitness industry has been skyrocketing on its upward sway without a sign of faltering. If you are willing to donne the entrepreneurial hat and are a fitness enthusiast, then opting for a gym franchise is the best idea.
However, here are a few factors to consider before buying a gym franchise.
Choose the right brand for you and your area
You need to do a thorough research of your area and grasp the pros and cons of the various franchise opportunities available there. Following this, compare all the elements starting from the startup and estimated cost to public perceptions about the brand, commission rates and the time it will take to get the business up and running.
Count business costs carefully
More planning means fewer surprises. Excluding the surface costs, there are hidden costs which require attention and must be taken into consideration. Location cost, permits or regulation cost, business tax, parking cost, equipment cost, employee cost, business insurance to name a few.
Evaluate your personal finances in detail
A business can take time to start generating income. Therefore, it is better to have a complete visibility of your personal monthly budget. Include your mortgage or rent, average weekly food shop, childcare, travel and petrol, family outings, bills, insurance and subscriptions. Add in one-off costs that you normally pay in a year, such as car tax, MOT, pet vaccinations, birthday and Christmas gifts, holidays and your TV licence. Subtract any income you know you will be receiving, for example a partner’s monthly wage, and you’re left with the minimum amount you will need to make every month.
Explore finance options
Consider finance options like bank loans in case you lack savings or investment to meet the upfront costs. From the office to the workout area to the café, you’ll need to offer the right customer experience. You can source most of what you need through lease or hire purchase to reduce your up-front costs and give you more flexibility with cash flow.
Choose the right location
Before making a commitment, investigate the area to find the ideal site. For example, local competition, is there enough demand for you to open a new gym? Also, research and find out if any gyms have closed in the last few years due to lack of interest – this is a red flag.
Research the local competition
It is wise to do a mystery shopper exercise to checkout your competition’s strengths and weaknesses from a customer perspective. You can also speak to the existing members as to why they sign up with particular companies and their concept of ideal gym experience. Thereby helping you to refine the service you offer and market your gym effectively.
Get to know your customers
Building a customer profile will help you launch successfully because you’ll know who your ideal members are. Thereby making sales and marketing easier and more effective because you’re not trying to be all things to all people.
For example, how you sell to people joining a premium gym is different to how you sell to students joining a no-frills one.
Learn online marketing basics
One of the easiest and most cost-effective ways to market your gym is through online and social channels. You should consider investing in training to learn the basics.
Setting up a fitness club franchise can be a time-consuming affair. As well as dealing with the franchise company, you’ll need to consult with the council to obtain necessary permits and suppliers to get your facility up and running. Factor contingency into your schedule to mitigate against inevitable delays.
Be prepared for hard work
Every business requires hard work. If you are a novice at running a business, you will need to learn about marketing, bookkeeping and so on. Be ready for long hours to get the business running. If you’re prepared to put the time and effort into making your franchise a success, then you’ll reap the benefits for many years to come.
This article was originally published in Franchise India by Smita Nag.