Understanding how to find the best location for a gym can make or break your business as a gym owner. Digital fitness has completely changed the way people work out and many fitness businesses and fitness franchises have been forced to adapt to survive. If you want to set up a sustainable fitness business, then finding the right location is key.
Digital fitness may have transformed the industry, but that’s not to say the industry is in a bad place. In fact, people are visiting gyms more than ever, and it is a great time to set up a fitness business.
If you are thinking about opening a gym business this year, your location is still one of the factors that will determine your success. In this article, we’ll go through why your location is important, the factors to consider before choosing a location, and some ideas for the best locations to open a gym.
Skip ahead to:
- Why is the gym location important?
- Factors to consider before choosing the best locations to open a gym
- Best locations to open a gym
Why is Gym Location Important?
It’s not an understatement to say that the location of your fitness business can determine if you will have a successful gym or not. Foot traffic, parking availability, and a fitness-focused population are vital for your fitness business, and they’re not always easy to find. Additionally, the best locations are always going to come with a higher price tag.
The most expensive commercial rents are usually located on the main street in cities and towns. If money is an issue, you may not be able to set up your fitness business on the main street, but you can certainly use it as your focal point in your property search.
Here are three key reasons why your location is so important:
- The facility needs to be within a convenient distance of your target market
- It will dictate what you charge for your membership: if the location is in an affluent area you will be able to charge more.
- The location will affect how much you invest in your business. A more prominent location will cost more. Or a completely bare location will need significant investment in terms of renovations and fitness equipment.
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Finding the right location to set up your gym business can be a hard process. You may find a location that “feels” right but there are so many factors to consider before making the final decision. Here are the biggest questions you need to ask yourself:
1. Who Your Members Are
Before you even open the doors on day one, decide who your target market will be. One of the most common mistakes that fitness business owners make is to be all things to all people. Focus on providing a singular service for your ideal type of member.
Once you have decided on who your ideal member is, it should be easier to pick what kind of location you need to be successful. For example, if you are a boutique studio that offers high-priced fitness classes, you want to be in a built-up urban area where big companies are located. Here you will get access to a market of young professionals with money to spend.
2. Visibility
Think about the location you’re interested in and how visible it is to the public. If you’re in a remote town or village, it might be harder to attract members. Or if you choose to locate your gym in a city, then you need to be in a busy place where people can easily spot your gym.
If you’re in a standalone building, then the business will be more noticeable. And if not, you might want to consider what landmarks beside the facility that people can easily identify. For example, when you’re explaining your location to potential clients or people enquiring, you can point to something recognizable like a monument or a well-known shop.
3. Parking
Most of your potential gym members and staff will probably come to your gym via car. If you don’t have suitable parking, people might not be motivated to come, and your gym business will be less convincing to prospective employees to work there.
When looking at parking for your gym, you will also want to make sure there is enough space for people to enter and exit the property straight away without having to be in a traffic jam. When scheduling classes, make sure you factor in local rush hour times and when your members might be available.
4. Size of the Gym
Size has to be one of the first things you consider when looking for a space to open your gym. Before you choose, think about the services you’re going to offer and the gym equipment and cardio equipment you need. This will give you a good indicator of how much square footage you’ll need and the levels you’ll want. The experience and atmosphere all come down to size, and you don’t want to have a gym that lacks that, so think about your square feet carefully.
5. Competition
While owning a gym isn’t a monopoly, and competition in the fitness industry can be healthy, you don’t want to be next door to another gym owner or an established gym franchise like Crunch Fitness or Anytime Fitness. The minimal competition will help you keep loyal clients and secure new ones easily.
If you have local competition near you, it will most likely encourage members and potential ones to check it out and compare services and prices. So before you go and establish your gym, you must conduct a detailed market analysis to give you an idea of who you’re up against and if it’s sustainable to operate a fitness club in that space.
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6. Cost
As we discovered in our article on counting the cost of opening a gym, the cost to open a fitness facility in the US is around $10,000 to $50,000 dollars on average. A large part of this will be used to secure premises for your business. If you spend too much money and overcommit, it’s more than likely you’re going to have to cut back on other parts of the business.
The location is going to talk up a huge part of your operational costs so consider everything both inside and outside of the location. You could potentially run into the dilemma of having found a great location with a lot of work to do with the interior. In this case, you need to make your investments carefully.
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Best Locations to Open a Gym
Now you have an idea of what factors are important when opening a gym; it’s time to think about potential locations. Some of the best locations to choose are:
Business Districts
Boutique fitness studios typically target a particular demographic of fitness enthusiast. Their target market is young professionals in their mid to late twenties with excess cash to burn. Young people today care more about their health and fitness than generations before so there is huge potential in this market.
To access this market, however, you need to be in the right area. Business districts where there is a build-up of companies will provide a big market for you to target. There will be increased competition in these areas also so you will need to be aggressive with your marketing to stay ahead of commercial gyms in the area.
College and University Campuses
College and university campuses also provide access to a younger market keen on health and fitness. The only difference here is the market will have less disposable cash on hand. Think of reaching out and building partnerships with the higher education facility in your area so discounts can be offered to students.
At NYU alone, 55% of students claimed their biggest difficulty is stress from academia. If you can position your business as a stress reliever for these students, you could provide a highly in-demand experience. Additionally, colleges can have 5000-15,000 students on average, and that’s not even factoring in the faculty; it could be a big income earner for your business.
Shopping Malls
Gyms and fitness studios are starting to find their home in empty retail spaces in shopping malls across the US. This newly empty space is down to the fact that a lot of retail has moved online. On top of that Covid-19 has accelerated the closure of a lot of businesses, meaning commercial space is now widely available in places like shopping malls.
Setting up your gym in a shopping mall could be a real game changer as it increases your exposure. If people are browsing and walking around shopping, they’re more than likely going to come across your gym, allowing you to get potential customers you wouldn’t have gotten through advertising. Finally, a shopping mall could save you money by using shared amenities such as parking, security, maintenance, and more.
Near Other Health and Wellness Businesses
When looking for a location it would be a wise idea to set up near businesses that are in a similar industry. Now this isn’t always possible but it would be ideal to be around places like health food stores and restaurants, a health club, sports physiotherapists, wellness shops and fitness businesses that won’t be in direct competition.
This kind of area will bring the kind of footfall that would be interested in your services. There is also potential for partnerships with these kinds of businesses. For example, you could partner with a nearby sports physiotherapist and offer discounts to each other’s clients.
The Best Gym Location Is Different For Everyone
Overall, location is everything for a gym owner, and you should take time to consider the area you want to set up. Remember to factor in your cost, competition, visibility, parking, size, construction, and more. Once you’ve done enough market analysis, think about your prospective location. Often the best locations are close to as many neighborhoods as possible to encourage people to travel to your new gym.
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