How to Open a Gym - Part 4- Lets talk $$$

How much cash will you need to get your doors open? Find out here.

 min. read
May 13, 2022
software for strength coaches

Ok, so I have talked about a lot of stuff up to this point, but I want to make some stuff clear regarding how much money it takes to open a gym, so you have it in your head what you will need to come up with to get the doors open.

Here are the BIGGEST things you will need cash for:

  1. State Paperwork & LLC Stuff
  2. Logo and graphic design
  3. Website domain and hosting
  4. First months rent / Security Deposit
  5. Equipment fee down payment
  6. Miscellaneous build out stuff
  7. Software

This is absolutely not a comprehensive list, but its a good start.  From here, lets break down the VERY rough estimated amounts, as they will change very drastically depending on youyr model (but this is a good starting point):

State paperwork & LLC - $200

You need this to form your legal entity, which you will need to get your equipment loan, bank account and a federal EIN so you can run payroll and more.  Do this yourself, do not hire a company do to it - its not very hard and doesnt take long.

Logo and graphic design - $50-$500

Yes, this can cost $5 on fiverr. No, I usually don't recommend getting the cheapest logo possible. Mine was $400 from my logo guy, many people I know have spent $50-100, but just know its going to be in that range.  Take pride in this and make sure its right, if you go the route of fiverr don't be afraid to hire a few guys with the same job to get the brand you want.

Website domain and hosting - $50-$200

A domain will usually cost $15, and adding domain privacy is usually another $15 per year or so. Hosting on a shared server (all you need) is another $5-7 per month to set up your own wordpress site, whereas a wix or webflow account will be a bit more (but will require very little technical knowhow). I recommend learning to build and modify your own site if you are at all technically capable, if not, plan on being closer to the $1000 range to get this done cheaply.

FIrst months rent / Security Deposit - $????

This one is easy - take whatever space you found and whatever price you negotiated and do some math. If you have NO IDEA where to start, I would plan on your rent being in the $2500-4000 per month range, and you need first, last and security to get it leased. Basically, have $10,000 liquid to get this done, and more available if you need it.

Equipment fee down payment - $????

Again, another easy one because this is dependent entirely on what you got for your gym.  My newest gym has $110,000 in equipment purchases on lease, and my payment is $2200 a month for 5 years. You make your first payment very shortly after the deal is done. Buy less or cheaper stuff, this amount goes down.

Miscellaneous stuff - $2500

$2500 is a conservative amount to have on cash ready to build out.  You will be taking a lot of trips to home depot, you will need speaker, paint, wire, cosmetic fixes, bathroom stuff, signage, banners, cleaning supplies, tools - tons of little things will fall in this category and can easily be double here, but plan on $2500.

Software - $200/mo

You will need various softwares to run a gym. You need a membership manager which will be $80-120 per month, gmail suite, payroll, accounting, marketing software - it depends what you need, but plan on having a few months of this cash built up to pay for software prior to revenue coming in.

Bottom line? To consider opening your own private gym, have $15,000 cash ready to go out the door, and ideally some reserve cash for your bills, etc. This amount gets your doors open - you will need to make more by month 2 to pay your continually recurring bills.