Reflecting your market
But the machines are a surprisingly low proportion of the running costs, as many companies offer hire or hire-purchase agreements on the latest models. Wage costs are comparatively cheap, too, as instructors only take home between around £12k and £15k per annum.
Precise costs will depend on the make-up of the club, which in turn should reflect your market. There are gyms aimed at the hardcore bodybuilder at one end of the spectrum, with women-only clubs focusing on classes at the other.
You could even orientate your facilities to the over-55 market. Although traditionally they don’t go to the gym, they are increasingly keener to keep fit, and, crucially, have money to spend.
Swimming pools and dedicated classrooms can take up valuable space that might be used to house the machines — particularly cardiovascular ones — that could attract more members. Pools are expensive to maintain, while classes generally make very little money — although their inclusion does give your club a significant edge over the competition.
Of course, if you have a large enough club, then you can have the best of all worlds. With large facilities of over 12,000 sq ft, members will expect Jacuzzis and saunas, as well as classes and a swimming pool.
Income is mainly composed of membership fees, which are limited by location. In central London, over £60 per month might be viable. In less thriving areas, lower fees and generous offers will be needed.
Some larger clubs generate substantial income from extras such as cafes, drinks machines and shops. Profit can vary enormously — Jaskowski knows of one club of only 1,300 sq ft which makes £120k per annum net profit, while other, larger ventures can turn over £500k without making any money. On average, though, he estimates £40k to £50k per year is easily possible.
Franchisor know-how
If you feel daunted by choosing the location, marketing mix, membership fees and facilities, then buying a franchise is an easier way into the industry.
The franchisor has the market know-how to locate you in areas where demand is sufficient for you to thrive. Then, once set up, the marketing muscle of a national brand will help lever you into the local market — a big advantage given the importance of sales and marketing in this sector.
Specialist fitness franchises include énergie, which runs women-only gyms, Little Gym, which caters for children, and Hire Fitness, which rents out gym equipment for people to use at home.
Management and administrative training, and the assistance you receive in fitting out your gym, makes a franchise an ideal investment for anyone lacking experience in the industry. And even if you feel capable of succeeding on your own, remember that this industry is dominated by the big players.
If you get the marketing and facilities right, then Jaskowski says running a club can be among the most enjoyable and relaxed ways to make serious money.
“You can have a very visible income from not a lot of effort and time spent. You will have peaks when you have to be there, depending on whether you deal with members or not.
"But it’s definitely not a nine-in-the-morning to nine-in-the evening job.”
The main joy of running a club, though, is the atmosphere — which is partly developed by the proprietor.
“People come to health clubs to relax. They generally have the same mindset, and because of that it’s a very social atmosphere,” adds Jaskowski.
