As a project for my econ class, my group and I have to start a business and show results of operation for a 12 month period. I was just wondering if anyone could tell me, or direct me to a site, that would give costs of ordering X amount of a machines, or pieces of equipment, weights, etc.
Thanks for any information
Thread: Cost of opening a gym
04-15-2006, 12:09 PM #1
Cost of opening a gym
04-15-2006, 12:11 PM #2
04-15-2006, 12:14 PM #3
04-15-2006, 12:15 PM #4
04-15-2006, 12:18 PM #5
04-15-2006, 12:55 PM #6
The biggest insight will be that there are MANY costs beyond just the equipmet (such as insurance noted above). Just a few thoughts. . .
- Monthly bills such as electricity, gas, water, sewer, trash collection, phones, internet(?), groundskeeping, snowplowing
- Recurring payments such as property tax
- Random costs such as equipment repair. Not just the gym equipment, but also plumbing, air conditioner, heater, etc. Everything breaks sometime.
- Promotional costs (are you going to buy advertisements in the paper? billboards? etc).
- Office equipment - desks, chairs, computers, cash register
- If you have vending machines (water, Gatorade, whatever), do you get a cut of the profit?
- You'll obviously need some employees to cover the front desk, manage the place, etc.
04-15-2006, 12:59 PM #7
This is interesting. Maybe the first interesting post in the misc section.
How serious is this exercise you are doing? Will you be scoping out all the costs for real, i.e. talking to gym managers re staff/overheads/etc, equipment suppliers, etc.
Will you be estimating turnover, etc?170 lbs @ 10%, 185 lbs by summer 2011
04-15-2006, 01:08 PM #8
This is for my final project, so I want to have some degree of accuracy. I know some people that work at the gym I go to, but they weren't sure about the costs of weights, cardio equipment, etc., which is why I came here. I've been looking online and finding most of what I was looking for.
I don't know about turnover cost. I don't know too much about accounting, or financing. How would one go about getting those numbers?
04-15-2006, 01:09 PM #9
you can an alraedy established gym for 60 thousands + up to millions of course
equipment cost 40-50 k's at least, lease and insurance +decorating + locker room = another 30 grands
so buying an established one is beter
my goal in 4 years is opening my own chain of gyms in remote area with high population density, and lots of youth and seniors
04-15-2006, 01:12 PM #10
04-15-2006, 05:47 PM #11Originally Posted by Lance Uppercut
04-15-2006, 06:12 PM #12
You are going to :
Write a business plan consisting of:
1 Equipment costs
2 building costs (finance, or lease)
3 insurance costs.....including flood
4 energy costs (find a buildingand ask your power company for the average power usage data
5 employee cost......benefits and tax withholdings
6 accounting system (cash or accrual)
7 membership numbers (break even point)
8 produce pro-formas from your accounting systems and see how diferent financial strategies would affect:
A) Cash Flow
E) CURRENT RATIO
on your LOC or loan, be sure to take out enough to cover working capital shortfalls......this is why many businesses fail in there first year, not enough capital!
Good luck on your project.Cardio is for girls and people named Lawrence.
04-15-2006, 06:13 PM #13