WAG How much for start up costs?

[BarCoach]

Of course the numbers will vary dramatically by region, size and type of building and business but I'm just trying to get a general sense of the numbers. I'm having a hard time estimating mine. I have estimated legal costs, advertising, building and utilities, permits, equipment and furniture, building improvements, and cash. Am I missing anything?

How much were your start-up costs and how big was your gym (square feet and how much equipment)?

Thanks!

 

[Deleted member D3987]

a fully equipped gym with in ground pits, and say average size 15,ooo sq.ft. will cost approx $400,000.

 

[hearts_and_stars]

Plus the land....we just built a new gym and with the building, land, permits, etc it was well over $400,000. (I think our gym is quite a bit larger than 15,000 square feet though)...

 

[gralch1]

Taxes and payroll tax were big sticker shock for us.
Take your estimated budget and triple it!
Good luck.

 

[Deleted member D3987]

ah, yes. he's been talking about opening a gym...but never said anything about buying a building outright.

 

[BarCoach]

Ok thanks for the numbers. That helps. I haven't considered building a new building but it may come down to that. Right now there aren't any appropriate buildings for sale but this is a future project so maybe something will come up.

 

[kandkfunk]

I don't see insurance on your list of costs. Maybe you lumped that in with something else. My understanding is that it can be quite expensive to purchase.

 

[Becauseisaid]

You may also have to figure zoning changes in there.

 

[thecurseofthechalkyhand]

What size gym are you going for? Gyms come in all sizes so the startup costs can vary wildly. Lots of gyms also start small and and, if they are successful, get bigger. Where I used to live there was a gym that was in a rented spot in a shopping center when it first started. A few years later, the owners bought a building that was over two times bigger. This took less than ten years.

I'd be careful about deciding which buildings are "appropriate". I've been in and seen some cobbled together places with wacky corners, columns, low ceilings, or underground but the owners still managed to turn them into gyms. Get in where you fit in and upgrade later.

 

[gymdog]

Plus the land....we just built a new gym and with the building, land, permits, etc it was well over $400,000. (I think our gym is quite a bit larger than 15,000 square feet though)...

Well the building factor is what's going to vary wildly depending on location. Also you can buy, lease monthly, or do a long term lease. It is probably best to at least try to get a long term lease so you do not lose your business in a year after the investment to say make pits...that is a sunk cost if you have to move you are OUT. It has happened before to gyms (lose a lease after getting outbid in a competitive area).

But dunno's number seems about right to me for the actual equipment and building cost. Obviously a lot depends on your pit designs, how much equipment you actually buy, whether to do in ground tramps/track, what if you want to out in a rod floor for tumbling, etc. All those factors. But just a basic gym I'd say 300,000-400,000 in my experience as well pretending that the building aspect already exists. Then on too of that initial cost you have the monthly rent or mortgage, water/electricity/gas if applicable, payroll, and maintenance (bathroom supplies, cleaners, equipment maintenance). Also taxes and property taxes.

 

[BarCoach]

I meant to include insurance.
I will want to get the biggest building that I can afford. That's why I wanted some numbers for different sizes, to get an idea if what is possible.
I've seen some pretty small but workable gyms too, so I won't rule anything out yet.

 

[BarCoach]

Thanks gymdog.