How to Launch a Gym Business from Scratch with Insider Tips

The global health and fitness industry was valued at $121.19 billion in 2024 and is projected to grow from $131.31 billion in 2025 to $244.70 billion by 2032, at an impressive 9.3% CAGR. But with that rapid growth comes intense competition.

Fitness is one of the most crowded industries, with big-box gyms, boutique studios, online fitness programs, and social-media fitness influencers all competing for the same audience. Today’s customers have endless choices when it comes to workout styles, pricing, convenience, and membership perks.

So how do you cut through the noise, attract loyal members, and build a gym that’s actually profitable? This guide will walk you through how to start a gym business step by step, from planning and positioning to launching and scaling, so you can turn your passion for fitness into a successful business.

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Is Opening a Gym Business Still Profitable Now?

Since the COVID-19 pandemic, the health club and fitness studio industry has moved beyond recovery into a phase of steady, long-term growth. Fitness is no longer seen as a luxury or a seasonal habit. For many people, it’s now an essential part of maintaining both physical and mental health.

This mindset shift is reflected clearly in market size and spending. North America continues to dominate the global fitness industry. In 2023, the region was valued at $47.89 billion, and that number grew to $51.87 billion in 2024. A strong fitness culture, higher disposable income, and a willingness to pay for structured programs all contribute to this growth across the U.S. and Canada. 

From a business perspective, the average gym profit margin ranges from 10 - 15%, but the model you choose makes a big difference:

• Franchise gyms typically operate on slimmer margins, often around 10%

• Boutique fitness studios (yoga, HIIT, Pilates, spin) can achieve 20 - 40% margins due to premium pricing and smaller class sizes

• CrossFit gyms commonly see margins between 25 - 30%, driven by strong community loyalty and high retention

Consumer demand is also evident in search trends.

Consumer demand is also clearly reflected in search behavior. Searches for “gym near me” continue to rise, now reaching approximately 550,000 searches per month, signaling strong local intent and consistent interest in nearby fitness options. This trend highlights the importance of location-based marketing and local SEO for gym business owners.

How to Start a Gym Business

If you’re passionate about fitness and ready to turn your business idea into reality, here are 9 practical steps to start.

Step 1: Choose your gym business model

Simply put, a gym business model is your plan for making money. It defines how your business is structured and how you deliver and monetize your services.

The most common model is Membership-based gyms. Customers pay a monthly (or tiered) fee for access to equipment and services. In this model, you can predict your income and encourage attendance as members feel financially committed. However, it also puts pressure on you to constantly sell and retain members, and some customers prefer more flexibility than contracts allow.

Personal training can be your main offering, or an add-on. For example:

• One-on-one personal training: Highly personalized and results-driven, ideal for clients with specific goals, but income is limited by available time.

• Semi-private training: Small-group sessions with similar goals, more affordable for clients and more scalable for your business.

• Online personal training: Remote coaching through workouts, content, and community support, allowing you to scale beyond your physical location.

• Hybrid personal training: A mix of online coaching and occasional in-person sessions, offering flexibility for clients and better sustainability for trainers.

Instead of high foot traffic and low margins, personal training model relies on higher pricing, strong trainer-client relationship. Image by Unsplash 

While personal training helps you stand out and delivers better results for clients, it requires qualified staff and often ties your income directly to time spent training.

Group training, on the other hand, focuses on classes like yoga, boxing, or HIIT. It can scale well, especially when offered online through group programs or challenges. Group training builds community and allows you to train more people at once, but in-person classes are limited by space and schedules, while online programs require strong marketing to succeed.

Step 2: Research your target market and competition

Most gyms serve more than one type of client, but each target audience should be clearly defined. Break your ideal customers down by:

• Demographics, such as age, gender, income, location, and occupation

• Psychographics, including fitness goals, lifestyle, values, motivations, and challenges

Understanding this helps you design the right services, pricing, and marketing messages.

Besides, conduct a competitor analysis. Identify direct competitors like gyms or studios offering similar services to the same audience with you. This may include both local gyms and online fitness platforms. For each competitor, analyze:

• Services and programs offered

• Target audience

• Pricing and business model

• Strengths and weaknesses

This research helps you spot gaps in the market and position your gym in a way that meets customer needs better than existing options.

Learn more: How To Start a Service Business From Scratch in 9 Steps

Step 3: Create a gym business plan

A business plan helps you estimate the time, money, and resources you’ll need. It also keeps you grounded when challenges pop up since you’ll already have a clear plan to follow.

If you’re still in the early stages, you don’t need a long, traditional business plan right away. Start with a lean gym business plan. It’s short, practical, and easy to update as you learn more. You can write it using simple paragraphs and bullet points, focusing only on what matters most.

Here’s what a lean gym business plan should include:

• Executive summary: What your gym is, who it’s for, and what makes it different

• Company description: Your mission, business model (membership, training, classes), and gym concept

• Market analysis: Local demand, trends, and what you learned about competitors

• Products and services: Membership tiers, personal training options, group classes, online offerings

• Customer segmentation: Your main customer personas and the problems you solve for them

• Marketing plan: How you’ll attract members (local SEO, social media, referrals, partnerships, promos)

• Logistics and operations plan: Location, hours, staffing, equipment needs, software, and daily workflows

For a lean version, you can keep financials simple for now, for example, basic startup costs, monthly expenses, and pricing assumptions. You can always expand into detailed projections later if you’re seeking funding or preparing to open.

Read more: 300+ Fitness Business Name Ideas in 2026

Step 4: Choose the right location

It’s no exaggeration to say that your gym business location can make or break the success of your gym. Even the best concept will struggle if people can’t easily find or access your gym. 

High foot traffic, clear signage, and being in a well-known area all help attract walk-ins and build brand awareness. In cities, this usually means busy streets or commercial areas. In smaller towns, choosing a central, easy-to-find spot becomes even more important.

Accessibility matters just as much. Most members and staff will arrive by car, so parking availability is critical. Make sure there’s enough space for people to park, enter, and exit without heavy congestion. Poor parking can quickly turn potential members away and make hiring staff harder.

If your gym business isn’t in a standalone building, nearby landmarks can help with recognition. Being close to a popular store, café, or well-known business makes it easier for people to remember and describe your location.

Northwest Fitness Company is a great example of strategically locating a gym in a densely populated residential area and close to office buildings.

Here are some gym-friendly locations we see most often:

• Business districts

• College or university campuses

• Shopping malls or retail centers

• Areas near other health and wellness businesses

Step 5: Apply for business license and permit

Before opening your gym business, make sure you’re legally allowed to operate. Requirements can vary by state, city, or country, so it’s important to check local regulations early to avoid delays.

Depending on where you plan to open your gym, you may need:

• A business license to legally operate in your state or city

• A zoning permit confirming the location is approved for a fitness facility

• Health department permits if you offer showers, saunas, locker rooms, or food and beverages

• A fire department permit to meet safety, occupancy, and emergency standards

• Proper personal trainer certifications if you offer training services

• A sales tax permit if you sell merchandise, supplements, or apparel

Because requirements differ by location, always consult your local government offices or a business advisor. Handling permits early helps keep your opening timeline on track and protects your gym from compliance issues later on.

Step 6: Buy gym equipment

What makes members stay at your gym business long term? For many, the answer is the quality of your equipment. They say equipment quality directly affects whether they keep their membership. 

The gym equipment you purchase will depend on your business model, but you need to clearly understand your target audience’s needs before buying anything. Focus on equipment your members will actually use, rather than purchasing everything at once, as unused equipment can be costly and inefficient.

At a minimum, most gyms should include these below equipments:

• Dumbbells

• Barbells and weight plates

• Power rack

• Adjustable and flat benches

• Kettlebells

• Smith machine

• Cable machine or functional trainer

• Leg press machine

• Treadmills

• Ellipticals

• Stationary bikes (upright and recumbent)

• Rowing machines

You can find gym equipment through specialized fitness suppliers, direct manufacturers like Precor, Life Fitness, or commercial gym distributors. Some owners also consider buying used equipment to save upfront costs. While this option is more affordable, it often comes with higher maintenance, limited warranties, and fewer upgrade options.

Precor is a well-established commercial and fitness equipment manufacturer and supplier known for delivering high-quality gym machines

In the long run, investing in new, durable machines usually delivers better member satisfaction, lower repair costs, and a more professional gym business image, especially if you plan to scale or raise membership prices later.

Step 7: Hire trainers and staff

Adding staff is one of the biggest ongoing costs for a gym, so every hire should be intentional.

• Who do you need? Define the exact role you want to fill.

• What can you afford? Be clear on salary, benefits, and total cost.

• What type of employee do you need? Full-time, part-time, contractor, intern, or freelance instructor.

Hiring too early can strain your finances, so be sure that you really need more staff. You may be ready to hire if you’re experiencing high turnover, growing member demand, unfilled roles, overtime pressure, performance gaps, or plans to expand.

So if you truly need to hire more, create a clear and detailed job description. Be specific about responsibilities, required skills, and expected qualifications, especially for trainers and group instructors. More experienced professionals usually expect higher pay.

Step 8: Set gym pricing and membership plans

When setting your gym pricing, it helps to reverse engineer the process. Start with clear revenue goals for your first 90 days, six months, and one year. These will be estimates, so stay realistic and conservative. Your pricing should support these goals while still feeling fair and competitive for your target market.

Once you understand how much revenue you need, you can choose pricing models that fit your business model, location, and audience. Many gym businesses use a mix of options rather than relying on just one.

Below are some of the most common gym pricing models you can use as a starting point and customize for your gym.

Step 9: Launch and promote your gym business

When people are ready to commit, they usually start by searching for gyms nearby, so having a strong online presence is a must. Your website should clearly explain who you are, what you offer, and how new members can sign up.

Shopify is a solid option for gym business owners because it makes it easy to create a professional, mobile-friendly website fast. With flexible themes and a wide range of apps, you can manage memberships or class bookings, sell merchandise, and accept payments, all from one platform.

A tip to truly elevate your Shopify site is to consider using GemPages, an AI-powered landing page builder made specifically for Shopify. GemPages gives you full creative control with a simple drag-and-drop editor, so you can build high-converting pages without writing a single line of code. It’s especially useful for gyms that want to move fast but still stand out.

GemPages even lets you generate full landing pages from images or simple prompts using AI

With GemPages, you can:

• Create custom landing pages for memberships, free trials, or class sign-ups

• Use AI to generate complete page layouts from images or prompts in minutes

• Choose from 200+ conversion-focused templates and tailor them to your brand

• Optimize for mobile and desktop separately to ensure a smooth booking experience

For gym business owners focused on turning website visitors into paying members, GemPages helps bridge the gap between a good-looking site and one that actually converts.

In addition, local SEO is key to attracting members in your area. A well-optimized Google Business Profile helps your gym show up on Google Maps and in local searches like “gyms near me.” Keeping your business details accurate, adding photos, and posting updates or events can significantly boost visibility.

Besides, encouraging members to leave Google reviews after their first few weeks builds trust and helps improve your local rankings. Small incentives, such as a free guest pass, can motivate more people to leave feedback.

Social media helps you reach beyond walk-in traffic. Instagram and Facebook are great for showcasing your community and daily activities, while TikTok is especially effective for short, engaging fitness content and younger audiences. Claim your brand handle on all platforms, but focus on posting consistently on two or three channels for the best results.

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How Much Does It Cost to Start a Gym Business

The cost of opening a gym business can vary widely based on location, gym size, business model, and equipment choices. That said, for a traditional brick-and-mortar gym, you should generally expect a startup budget in the range of $245,000 to $400,000 to get your doors open.

Here’s a high-level breakdown of common startup costs:

The single biggest factor influencing your startup cost is the type of gym you’re opening. 

A large commercial gym business with extensive equipment and amenities will require far more capital than a boutique studio, personal training facility, or hybrid/online-first model. Leasing equipment and starting smaller can significantly reduce upfront costs, while buying equipment and property increases long-term control but requires more capital.

Hidden Truths You Must Know for a Successful Gym Business

Running a profitable gym takes more than passion for fitness. Understanding the less-talked-about realities of the industry can save you time, money, and costly mistakes.

1. Smart software saves time and money

Around 69% of gyms are adopting digital check-ins and online booking systems, and it’s a trend you don’t want to miss. Managing a gym manually can quickly become overwhelming as member numbers grow and daily tasks pile up.

Using smart software to handle memberships, bookings, payments, and customer communication helps streamline operations and makes your business easier to scale. 

If you use Shopify as your website builder, you can easily integrate apps for bookings, memberships, and payments, allowing you to automate sign-ups, scheduling, and transactions while saving both time and operational costs.

2. Pre-sales matter more than you think

Waiting until opening day to sell memberships is a common mistake. Pre-sales validate demand, bring in early cash flow, and help you open with momentum. 

To make pre-sales work, consider offering:

• Founding member discounts with lifetime or long-term savings

• Limited-time offers that reward early commitment

• Early access perks, such as priority booking or exclusive classes

3. Retention should be planned from day one

Bringing in new members is only half the equation, keeping them is what drives long-term profitability. Member retention has a direct impact on revenue stability and growth.

If you can maintain a retention rate higher than the industry average of 71.4% for health clubs, you’ll already be ahead of many competitors. 

Simple strategies like clear onboarding, regular communication, progress tracking, and fostering a strong sense of community can go a long way in helping members stay motivated, see results, and remain loyal to your gym.

4. One income stream is not enough

Relying solely on membership fees can limit your gym’s growth and make your gym business vulnerable to seasonal dips or unexpected market changes. Successful gyms build multiple revenue streams to create more stability and increase lifetime customer value.

Beyond memberships, you can generate additional income through:

• Personal training

• Small group classes

• Specialized programs

• Online coaching

• Workshops

• or community events.

These add-ons not only boost revenue but also deepen member engagement by offering more ways for people to connect with your brand. 

Common Mistakes When Starting a Gym Business

One of the most frequent mistakes is choosing the wrong location. A gym business with low visibility, limited parking, or poor accessibility can have a hard time attracting members no matter how great the facilities or trainers are. Being too far from your target audience or surrounded by strong competitors can also limit growth.

What’s more, many gym owners put most of their energy into signing up new members but overlook retention. And no clear retention strategy often leads to high churn. That’s why keeping existing members happy and motivated is usually far more cost-effective than constantly finding new ones.

Finally, some owners try to manage everything manually to save money at the beginning. Using the right software from the start not only makes operations smoother but also allows you to scale more efficiently while delivering a better member experience.

Final Thoughts

Starting a gym business today is challenging, but with the right strategy, it’s absolutely achievable. Success doesn’t come from having the biggest space or the most expensive equipment; it comes from a clear business model, a strong understanding of your target audience, and systems that help you operate efficiently from day one.

Focus on building a gym that solves a real problem for your members, whether that’s convenience, community, results, or a specialized training experience. Use digital tools to streamline bookings and payments so you can spend more time coaching and less time managing admin. A professional website, strong local presence, and consistent marketing will help you attract the right members and build trust early on.

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FAQs About Starting a Gym Business

Do I need to be a certified personal trainer to own a gym?

No, gym owners are not required to be certified trainers. However, if your gym offers personal training or coaching services, all trainers should hold recognized certifications. Even if you don’t train clients yourself, having qualified staff protects members, improves results, and reduces liability.

How long does it take for a gym to become profitable?

Most gyms take 6 to 18 months to reach stable profitability. This depends on how quickly you attract members, retention rate, pricing strategy, and operating costs. Gyms that focus on pre-sales, strong onboarding, and recurring revenue often break even faster.

What is the most profitable gym business model?

The most profitable gyms don’t rely on a single income source. Combining memberships, personal training, group classes, online programs, and merchandise increases average revenue per member and creates more predictable cash flow. High-touch services like personal or semi-private training usually deliver the highest margins.

Is it possible to start a gym with a small budget?

Yes. Many successful gym owners start small by opening a personal training studio, group training space, or online fitness business. These models require less equipment, fewer staff, and lower rent, allowing you to validate demand and scale gradually as revenue grows.

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