According to the U.S. Small Business Administration, only about half of all businesses survive 5 years. However, a new gym startup is tougher than many other ventures. Moreover, the increasing popularity of the “warehouse gym” is a double-edged sword. One one hand, entrepreneurs will need less startup capital to enter the market. On the other, it means that competition is stiff.
Overall, relatively few barriers to entry is a good thing for the fitness industry. Nevertheless, it has created a massive number of new gym owners who are unprepared. As a result, these owners end up not spending enough time actually growing their business. Today’s article will address some of the biggest mistakes new gym startups must avoid.
New Gym Startup Mistakes
1. Too Much Time on the Floor – Many new gym startups are owned by people who have never owned a business in the past. They don’t really know what they should be doing, and spend way too much time training clients or acting as a supervisor. Instead, you should spend most of your time marketing. If you don’t attract members, you are not going to be in business very long.
2. Not Knowing the Competition – Is there a budget gym near you? I’m sure you know the type. It is that $10 or $20 per month gym, with no contracts. While this type of gym does not include the expertise found at yours, it is likely larger and has more equipment. In order to have a successful business, you must understand market demand. That said, people buy value and will spend more for better quality and customer service.
3. Not Creating a Gym for “Normal” People – Many new gym startup owners create the gym that they fantasized about as a trainer, powerlifter, bodybuilder, or other fitness professional. In spite of that, there is a ton of people who just want to lose a few pounds. Your idea of the ideal gym is nothing close to what they are looking for or need.
4. A Bad Location – Success will rely on location, location, location. There are many factors to consider when selecting a location, from traffic flow to planned local development. Be that as it may, having a “hidden gym” does have some marketable advantages and could save you on the rent. It is important not to rush into a decision and consider the positives and negatives of a location.
5. Not Developing Super Fans – Every new gym startup needs to find a way to get more leads and sell more memberships. It is reasonable to want more people walking in the door. Still, the most important thing is providing an unmatched experience and incredible results. When you do this, you create super fans that just can’t help themselves and will talk about your gym every chance they get.
What haven’t we covered yet that is important to you? If you would like to talk about the mistakes new gym startups must avoid, or related topics, please contact us.
