Apply for Instant Loan

Download Our App

Apply for Instant Loan

Download Our App

Play Store

Apply for Instant Loan

Download Our App
Arrow Arrow

How to Establish a Gym Business in India?

How to Establish a Gym Business in India?
Fitness is one of those industries that thrive regardless of the prevailing economic conditions. Hectic work schedules and sleep deprivation among people today has resulted in growing lifestyle illnesses such as heart disease. The only way to address these issues is to incorporate healthy eating and exercise into your daily routines. This is where a well-equipped gym comes in handy.
 
Over the years, the gym business has evolved into one where success is guaranteed if done correctly. As a result, many people are interested in starting a gym business to earn good income. This article will address the query, "how to start a gym business in India?". 
 

How to open a gym in India?


Although there is no guaranteed strategy for a successful gym business, the following are some essential guidelines:
 

  1. Choose your location wisely

    Your gym's location is critical to its success. The chances of success are high if you open the gym in a residential area, crowded marketplace, or a housing society. The reason is people prefer going to their nearest gym early in the morning or after their office hours. If the gym is on the outskirts of a city with a small population, you will have difficulty finding customers. People dislike taking time out of their busy schedules to travel 40 to 45 minutes for a gym.
     

  2. Arrange funds on your own or through a business lender

    Once you have decided on the gym’s location, the next step involves arranging the required funds. Opening a gym is a costly affair and the overall expenses may be around Rs 10 lakhs to 25 lakhs. Bearing the entire amount from your savings could put you in financial trouble. The best alternative to meet this large funding requirement is a business loan. You can avail this loan for the maximum amount of Rs 25 lakh, with a repayment tenure of 36 months. 
     
    While performing credit appraisal for business loan, the lender evaluates your business’ financial records, net profit, and credibility. If everything is in order, you can secure a low interest on a business loan. However, remember that you can only apply for this loan if you already own a business or if your new gym comes under an existing gym brand.
     

  3. Choose a business model

    Since opening a gym requires a significant investment, it is critical to select your business model wisely. This will allow you to quickly recoup your initial investment and generate profits. Gym owners in India typically use one of four pricing models listed below.
     

    • Membership model:

      This is a common pricing model that you will find in every second gym in the country. Under this, you will charge your customer a fixed monthly amount to use any of the gym's equipment. The membership model ensures a consistent flow of income, and your profit remains intact even if a customer leaves in the middle of the month.
       

    • Pay-as-you-go model: 

      This is possibly the best model for attracting new customers. Customers are only required to pay when they visit your gym and use its equipments. For example, if you intend to use this model, you could charge Rs 500 for five visits, or you could charge a bit more if your gym is in a metropolitan city.
       
      This model allows your prospects to see if your gym is well-equipped and if the gym trainer has sufficient experience. Once your business flourishes, you may switch to a membership model.
       

    • Dynamic pricing model:

      Under this, you can provide your customers with a customised package. For example, you may have separate packages for weight loss training, aerobics sessions, Zumba, and regular exercise. This business strategy will assist you in attracting customers from various segments.
       

    • Integrated strategy:

      When running a gym, you may encounter customers who, despite paying a monthly fee, are unable to visit the gym regularly due to their hectic schedules. You can make it convenient for them by combining a pay-as-you-go model with a membership plan. For example, suppose someone pays Rs 2,000 for a monthly membership plan with a pay-as-you-go model but can only visit the gym for 15 days. The integrated pricing model, in this case, would allow them to go to the gym for free for the first 15 days of the following month.
       
Also Read: Growth Strategies for Small Businesses
To Avail Unsecured business loans
Apply Now

  1. Obtain the necessary licenses

    Opening a fitness centre requires you to obtain various licenses and permits. The very first permission that you will need is from the police department of your respective state. Next, you must obtain a tax registration certificate, initial investment licences, a building permit, and so on. Furthermore, once your annual sales exceed Rs 20 lakhs, or Rs 10 lakhs in some states, you must register for GST. You may also be required to apply for SSI certification to be eligible for government subsidies.
     

  2. Hire gym trainers

    When calculating the cost of a gym setup, never forget to include the expenses involved in hiring and paying skilled gym trainers. People will not consider your gym as trustworthy if you do not hire a competent trainer. Those preparing for bodybuilding competitions especially require the assistance of a trainer and will be hesitant to become your long-time customers.
     
    Before hiring a trainer, make sure they have the necessary training and certifications. Here is a list of credentials you should request from a trainer before considering them for the job:
     
    • Certification from BFY Sports & Fitness
    • Certification from the Indian Academy of Fitness Training (IAFT)
    • Training certificate from Gold’s Gym Fitness Institute (GFFI)
    • Certificate from Certified Bodybuilding & Gym/ Personal Trainer (CBT)
     

  3. Equipment purchase

    When starting a gym, you should investigate the top fitness centres in your city to learn about the equipments they use. Ensure that the machines you intend to install have not become obsolete. Also, pay attention to the gym's interior design. Your gym's interior design should provide a vibrant and stress-free environment. Install air conditioners and a good music system on the premises as well.
     

  4. Invest in marketing of your gym

    In addition to having a solid gym business plan, you need to invest in marketing and promotion of your gym among potential customers. For example, you can promote your gym on social media by launching a limited-time special offer. You can also offer free demo sessions, personalised gifts, or t-shirts imprinted with your gym's name.
     

  5. Franchise business

    Several successful gym brands in India offer franchise opportunities. These brands have already established customer trust and do not require additional promotion. Opening a franchise gym is one of the best ways to achieve success within a short-term. To obtain a licence for this type of gym, you must go to the gym brand's official website and apply as a franchise partner.
     
Also Read: Top 10 Profitable Wholesale Business Ideas for 2022
 

To conclude

 
Many aspiring entrepreneurs wonder, "Is the gym business profitable in India?" The answer is the success of your gym business majorly depends upon the location and the type of equipments you have. Further, if you have prior experience of working in a fitness centre, this is without a doubt the best business option for you.
 


To Avail Unsecured business loans
Apply Now
Did You Know

Disbursement

The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.

Exclusive deals

Subscribe to our newsletter and get exclusive deals you wont find anywhere else straight to your inbox!