Part Ownership in a gym (51%)?

[Shibby]

I have had a thought in a different direction about owning a gym. How common and how able would it be for someone to invest and own 51% of a current gym that is borderline profit or doing well?

[nda246]

There are many questions that need to be answered in order to give good advice here.

How much does the gym earn from members?
What are the costs (insurance, labor, equipment up-keep, new equipment, utilities, etc.)
Are the owneres willing to sell the majority of there buisiness?? Normally when someone owns 51% its because they sold 49% of it, not because they bought 51%.

Its basic business-if they bring in what yo consider to be a significant amount of money more than they spend to keep the place running, then yes its a good investment.

One thing to consider though is, at 51% you are not a silent partner, if you have no insight on how to run a succesful gym or succesfull business on your own, then this is a very risky venture.

Consider all angles and good luck!!!

[Shibby]

Well this is something far in the future. But I would like to have a gym that I can implement ideas and be involved to make things better. I'm sure at 49% I would have a major say in it. I wouldn't be looking to be a silent partner, but I'm not sure I would want to go the 100% ownership route and let the stress run my life. So maybe the 49% would be a better direction to go...? I would want to be my own boss in a sense, but this would be a secondary venture and income, when the time would come.

[Curls4dGirls]

shib ... it's a tough, tough business to make decent money. if you're running the biz, regardless of ownership, you're gonna have a ton of stress. Since member attrition is so high, the name of the game becomes driving numbers through the door. This means constant promotion of the business ... lead boxes, off site promotions, corporate alliances, etc, etc, etc. real pain in the ass. Of course, you can hire high school students for this, but that cost money and brings it's own set of issues.

the way the industry is moving, the independent operators will not be able to withstand the push of the large companies.

[Primal Instinct]

As a part owner in any business venture you run the risk of the other partner(s) not taking their responsibilities as seriously as they need to placing a greater burden on you. Additionally, you also run the risk of a partner running up the gym's credit for other purposes and possibly defaulting on loans that you will be held responsible for paying off. Be careful.

[Shibby]

Thanks, this is all great info. Granted these plans are far in the future, but I need to decide first how exactly I want to approach it (if at all when I'm well informe).

[coffee-guy]

shib ... it's a tough, tough business to make decent money. if you're running the biz, regardless of ownership, you're gonna have a ton of stress. Since member attrition is so high, the name of the game becomes driving numbers through the door. This means constant promotion of the business ... lead boxes, off site promotions, corporate alliances, etc, etc, etc. real pain in the ass. Of course, you can hire high school students for this, but that cost money and brings it's own set of issues.

the way the industry is moving, the independent operators will not be able to withstand the push of the large companies.

Ditto...

[mcalo4]

Shibby,
The gym I work at is a privately owned personal training studio. My boss (the owner) does pretty well. The gym is "by appointment only", not a Golds Gym type of place. Including himself he's got 6 trainers, were all on a 50/50 split with the house. I dont know my bosses financial affairs but I would assume that if he didnt want to he wouldnt have to work anymore.
Of course it took some time to get it like that, but the guy couldnt be happier, he's got a succesful thriving business thats always busy, hes got a close knit group of trainers that are loyal (we've all been there for at least 2 years), and the phone is always ringing. What more could you ask for as a business owner.
I just thought I'd throw you a differnt angle.
Good luck.

[Shibby]

what is the studio like and can you give me a summary about how appointment only is done?

[dot1]

I own a Swim, Tennis and Fitness club. I would not want to be a partner in any venture, was in my old club and bought my "partner" (uncle) out. I found a bigger better club to buy and only have my wife as a (silent) partner. I like not having any partners or investers. Are you prepared to put up $500,000-$1,000,000 just to get started? PM me if you want more info on owning.

[mcalo4]

what is the studio like and can you give me a summary about how appointment only is done?

By appointment only I mean it's a personal training gym only, No one can train unless they are with a trainer. All the sessions are usually booked in advanced. we all have our own clients so it's always just the trainer and his client/clients out on the floor.
But it's just like any other gym in that the peak hours are always around 4 until 8p. He's got it built up to were theres 5 or 6 trainers out on the floor just about everynight at the same time for up to 3 hour at a time. Biness is rockin'. Same thing early in the morning, that place gets going around 5am and usually stays busy until 11a, and then it picks up again in the late afternoon.
All of us get along really well, theres no egos in there, we have a blast. He says that if he didnt have a good group of guys it wouldnt work.

I guess if personal training is your thing than this would be something to look into. lease a small space, bring your clients and get some other trainers to bring their clients and charge them a percentage, before you know it you got 5 trainers working 20-30 hour a week/each out of your studio and shibby will be livin nice.

Later.