Starting your own fitness entity (whether you want to set up a gym or join a boutique gym utilizing shared space and resources) can be an incredibly rewarding experience, and it can also help you achieve your career goals faster than if you stay employed at someone else’s gym. But it’s certainly not easy to get started. There are many things to consider before deciding whether or not starting your own fitness entity is the right choice, such as figuring out what kind of fitness specialty will best suit your skills, researching your market, and then beginning to build relationships with clients.
Here are 10 questions to ask yourself as you think about whether or not starting a small business would be the right move for you.
1) Determine if it's the right time
A health/fitness-based business, although sounds exciting, could easily not work as expected because it has been started in an already saturated market. Before you jump into entrepreneurship, make sure it’s really what you want. How? Ask yourself:
Is there a gap in your industry or market that no one else is filling?
Would you be able to make a living wage by working in a gym that someone else owns?
Do you have all of your startup costs ready and covered, or can you go without them for at least six months while still supporting yourself?
Are you passionate about your idea enough to keep going even if things don't pan out as planned? This one is really important in a location with the competition.
Can you handle two full-time jobs—your day job and running your own business—at once? Maybe you want to do that to start with to minimize risk?
2) Know why you want to start your own business
Money? Freedom? Challenge? What’s your why for wanting to start your own business? As Seth Godin says, starting without knowing why you are starting is like going on a road trip without knowing where you’re going.
3) Are you ready financially?
For most people, starting a business means taking on significant financial risk. You’ll need capital—the money that you use to pay expenses until your company can generate revenue—but what if you don’t have it? Will you be able to secure funding from investors? What other sources of money are available to you? Even if money isn’t an issue, there are plenty of other factors that could complicate or delay your entry into entrepreneurship. Registering your LLC will require money. Would you like to wear branded apparel showing your gym's name? That will require money. How about having a logo that defines you?
4) Do you have a plan?
When you’re just starting out, it can be tempting to dive right in. But when you’re launching a small business, it’s important that you think things through and come up with an outline of what your plan of action will be. If you take time out of your busy schedule to consider how you’ll handle certain situations and what steps you’ll take as your company grows, it can only benefit both yourself and your business as a whole.
5) Are you passionate about what you're doing?
Passion is, of course, more than an emotion—it's motivation. If you're passionate about fitness and health and taking people along on the fitness journey, chances are you'll be more successful at it and therefore make more money. Passion is contagious, too: Your enthusiasm will spread to others. So think long and hard before starting a small business on something that doesn't interest or excite you. If your heart isn't in it, neither will be your wallet or bank account.
6) Can your skills translate into profit?
The ability to bring in revenue is obviously essential for small business success. To test your business idea, maybe you are thinking about bringing bodybuilding to a market that has historically been about cycling, put yourself in the client's shoes, and ask: Would you pay for what I have to offer? Could someone else find it valuable? Is there anything unique or novel about my product or service? If you’re able to answer yes, move on; if not, keep brainstorming. But don’t forget that an awesome website isn’t enough—you need substance behind it. You need to keep adding value online and making sure that you keep giving to the community that you want to prosper in.
7) How do you want to get paid?
If you want to start a small fitness business, you must figure out how you’re going to get paid. Most new businesses are structured as either sole proprietorships or limited liability companies (LLCs). In both cases, profits are taxed just like personal income; if your business generates $50,000 in profit during its first year of operation, for example, your earnings will be taxed at your individual income tax rate.
8) What type of clients do you want?
The very first thing you need to decide when launching your fitness business is who you want as clients. This might seem obvious, but it’s so important. Make sure your values line up with what your prospective clients value; even if they come with lucrative client contracts, if their values don’t align, it will be too difficult for you to work with them. What type of clients do you want?
9) Research your competitors, but don't copy them.
If you don’t have something unique or valuable to offer customers, then consider not opening a business at all. Good businesses are built on their value proposition – that is, their offerings and how they differentiate themselves from competitors. So it doesn’t really matter what your competitors are doing; rather, it matters how you plan to make your business better for your customers than theirs. Use your market research to learn about what your potential clients want; leverage that knowledge to craft an effective sales pitch. It may be possible to provide clients with more of what they want – and less of what they don't need. Ask a lot of questions!!
10) Get organized, and be strategic.
Launching and running a small business is no easy feat. In fact, you’ll be faced with a deluge of tasks and administrative details on an almost daily basis. To ensure your business stays in tact—and solvent—you need to map out and execute strategic plans for day-to-day operations. Before you hire any employees or open your doors, write out how each aspect of your business will run from now until forever. That way, you’ll have less rework when things inevitably go wrong. What should you include? You guessed it: everything! Write down anything that might affect operations in your plan; though it may seem tedious at first, it will pay off as time goes on. Here are some ideas to get you started: Are you starting as a lone trainer or will you hire immediately and use a team? How will everyone be compensated? Will you need insurance, benefits, or retirement packages for your team? How much workspace do you require (can your team even work from home)? Keep track of employee hours worked, revenues generated, and expenses paid so you can keep track of how far along you are towards profitability. Many entrepreneurs find it useful to list goals next to each item on their lists. This allows them to see which aspects of their businesses are working, and which ones could use improvement; all without breaking up sections by date or company division/department headings. With all of these factors considered, try setting up templates where possible; especially where exercises, nutrition, and even budgets are concerned. For example, there’s not really any point in writing out budget projections every month or quarter unless something drastic happens (i.e. growth). Instead, set these up once per year and refer back to them every month or two; it will save you valuable time throughout your day-to-day functions as a business owner. Use tools that allow you to run and look after your business. While you provide people with an opportunity and guidance to better their health, the health of your fitness business is equally important.
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