As people become increasingly health-conscious, India’s fitness industry is experiencing a surge in demand. According to the latest research, published in 2021, the young Indians find the fitness industry as their springboard to meet their lifestyle challenges. India holds only 0.5% of the global fitness market, and the major share stems from gym and weight gain or loss followed by yoga.
So, starting a gym can be a lucrative venture if you adopt a proper strategy. This is a detailed guide that will help you understand the process of setting up a gym in India, covering essential aspects such as market analysis, business plan, and initial set-up costs. So, let’s begin.
Choosing the Right Business Model
The business model you choose can determine how well your gym can do in the location you have chosen. You can follow quite a few business models like:
1. Membership Model:
This is the most common business model that gyms have used for a long time. The customers pay a monthly fee, and it gives you a regular income. If the gym is located in an area where there is a good demand, you will have more customers. This model can be quite profitable.
2. Pay As You Go, Model:
This model works best if you have just started your gym. You are also looking for new customers to join the gym. It is great for people who cannot go to a gym regularly. However, they would rather pay a small amount for every visit to maintain their fitness.
3. Dynamic Pricing Model:
This model works best if you start a gym or a franchise with coaches for weight loss or bodybuilding, or combine it with other fitness-related programs. The customers will be offered different packages based on their needs and goals.
4. Integrated Model:
This model is a combination of the membership and the pay-as-you-go model. It is of great help to both gyms and customers. Regular members can benefit from the membership model. Irregular members of the gym can choose the other. It does ensure that you have a high customer base and a steady income.
Cost to Set up a Gym in India
The cost of setting up a gym in India can keep changing depending on the size, the facilities, equipment, and the kind of trainers you are recruiting. Let’s look at it closely.
-Renting Out Space
Gyms need to be spacious to attract more people. So at least a 10,000 square feet area would be required. It can cost anywhere between Rs. 30,000 to Rs. 5,00,000 to rent.
-Quality Equipment
Good gyms need to have a wide range of gym equipment. Also, this has to be in multiple numbers, so more people can work out. If you’re starting small, then the basic equipment costs would come to around Rs. 5,00,000 while an advanced gym can cost more than Rs. 50,00,000 to set up.
-Classy Interiors
If you are planning to attract customers from the upscale localities then your interiors should feel classy. The interior design costs can go up to Rs. 5,00,000.
-Maintenance Staff
Maintenance staff, including the front desk receptionist, would need to be paid from Rs. 30,000 to Rs. 60,000 depending on how many you employ.
-Qualified Trainers
Hiring qualified trainers can cost quite a bit. It could go over Rs. 1,00,000 depending on how many you employ.
How to Market Gym Business in India?
Marketing your gym can decide how well you will perform in the beginning and maintain your growth figures. You can do it in the following ways:
- Start with creating your online identity by opening a website or app and getting on popular social media platforms.
- Your website should contain all the information about your gym facility and offers. Write blogs and generate plenty of content for SEO (Search Engine Optimisation).
- Getting on Instagram is one of the best things you can do to quickly promote your business. Post pictures of your gym including people working out. Make interesting reels every day so that people can talk about your gym.
The Business Plan
Before starting a gym business, conduct thorough market research to understand the demand, competition, and target audience in your chosen area. You need to identify the demographic profile of your target audience. This includes gender, age, income, etc.
The following points are essential for preparing a well-researched business plan for your gym.
a) Executive Summary:
Provide a brief overview of your gym business. This would include its mission, vision, and goals.
b) Business Description:
Give details about the type of gym you plan to establish (e.g., traditional gym, fitness studio, etc.). Highlight your unique selling proposition (USP) and how your gym will stand out in the market.
c) Market Analysis:
Present findings from your market research, including potential customer demographics and competition analysis. Try and identify opportunities and challenges in the local fitness industry.
e) Organization and Management:
Outline the organizational structure of your gym. Introduce key team members and their roles.
f) Services and Products:
You need to specify the types of fitness programs, equipment, and additional services your gym will offer.
g) Marketing and Sales:
Develop a marketing strategy to attract and retain customers. This will include online and offline promotional activities.
h) Funding:
Outline the initial capital required for setting up the gym. Specify if you are planning to take external funding. Also, give details on how the funds will be utilized.
g) Financial Projections
Provide detailed financial forecasts for the next 3-5 years. This would include income statements and cash flow projections.
Read also: Tips for Starting a Gym Business in Delhi NCR
Parting Thoughts
Like any other business, starting a gym in India requires careful planning and a well-executed business plan. By understanding the market, defining your target audience, and managing your initial setup costs, you can succeed. There are two important things to focus on- a commitment to quality service and a focus on customer satisfaction.
