Opening a Fitness Studio? Here’s What You Need to Know
Opening a fitness studio requires careful planning and execution.
The reality of being a small business owner is that an estimated 20% of these businesses fail in the first year. While I don’t have a crystal ball to see exactly why each of these businesses doesn’t make it, I can say from my experience working with business owners that it often comes down to a lack of planning and proper execution.
Whether your studio will be focused on Pilates, Yoga, or general fitness, having a plan in place — a plan based on research that considers all the nuances of running a business — is critical.
As someone who’s worked in the wellness space for 30 years, I’ve seen many studios come and go. I’ve worked with countless budding wellness business owners from early concepts to their opening. Along the way, I’ve figured out many critical components contributing to successfully opening a fitness studio.
Here are eight things you should consider when opening a fitness studio.
#1. Market Research
You may think you already know enough about your target audience to skip ahead and start your business plan. However, opening a fitness studio — and ensuring it’s sustainable and profitable — relies on giving your potential clients what they want. That’s why you’ll want to conduct thorough market research before you craft your business plan.
Your market research aims to identify the demand for Pilates or Fitness services in your target area and analyze the competition, target audience, and potential customer base.
For example, some general questions you’ll want to answer with your research include:
Who are your potential clients?
What do they currently spend on?
What compels them to buy?
What will you offer that they will want to purchase?
When looking at the competition during your research, focus on studios that are a comparable size to yours, ones that serve the same geographic location, and companies with a similar ownership structure (solo, partnership, etc.).
#2. Business Plan
Opening a fitness studio requires a business plan, and it needs to be comprehensive. Your business plan should outline your goals, target market, pricing strategy, marketing plan, and financial projections. This will serve as a roadmap for your business and help secure funding if needed.
A business plan is generally made up of a few key areas:
Company Profile: A high-level overview of your business idea that includes a value proposition.
Sales and Marketing: An explanation of how you plan to sell your services, including a pricing strategy, marketing plans, and sales forecast.
Operations: This includes information about your location, asset, organizational structure, risk assessment, etc.
Financials: A cash flow forecast, sales projections, financial statements, and anything related to funding your studio.
The above breakdown is very high level. Each main section has several sub-sections that need to be addressed — this is where working with a consultant can be invaluable.
#3. Location and Facilities
Opening a fitness studio means finding a suitable space for your business. We all know the real estate mantra “location, location, location,” and your studio is no exception.
Consider the proximity to your target customers. Are there places close by that already attract those people? You’ll also want to think about visibility. Is the location easily seen by people driving or walking by?
Accessibility is also going to be a key factor. Is the space able to accommodate people with various physical limitations?
Accessibility should also be considered in terms of how people will get there. Is it on a transit route? A walkable area? Will most people be coming by car? How much parking is available?
Of course, the overall size of the space will be a determining factor. Will you have enough space to host classes comfortably? Will all your equipment fit? You want your clients to be comfortable and not feel like they’re on top of each other, but you also don’t want to be paying for unused space.
#4. Equipment and Supplies
Your new studio will require equipment and supplies, so a list of what you need (and want) should be created, including the pricing.
Think about your target audience: what equipment will they expect to see in your studio? What equipment will you need to provide the class and workout experience you’re going for?
If you’re opening a fitness or Pilates studio, your equipment will be a big investment, and this is not the place to try and cut corners. Investing in high-quality equipment and supplies at the outset will serve you well in the long run as you can be confident they will wear effectively.
Lastly, think about how much equipment you need. How much equipment will you need to accommodate multiple clients simultaneously?
#5. Legal and Regulatory Requirements
Legal and regulatory requirements aren’t the place to skip a step when opening a fitness studio. You want to ensure everything is in order so you don’t run into problems later on.
Start by familiarizing yourself with the legal and regulatory requirements for opening a fitness studio in your area. Some questions to investigate include:
What licenses are required?
What permits are needed both before and after opening?
What type of insurance will you need?
What are the health and safety requirements your studio will need to follow?
#6. Staffing
Part of what can make a fitness studio memorable and have your clients coming back again and again is your staff.
The first step is determining how many staff you need once the studio opens. Teachers will be at the top of your list, but other positions may need to be filled. Do you need someone at the front desk? Do you need someone to do the day-to-day administrative work or marketing?
Next, you’re going to want to think about your business values. Communicating those to potential staff is critical to hiring people whose vision aligns with yours.
Remember that opening a fitness studio means building a reputation from scratch, which means having highly qualified, skilled, and certified Pilates or Fitness instructors who can bring their experience and expertise to your clients.
#7. Marketing and Promotion
One place I’ve seen many new studios run into some challenges is their marketing — or, more specifically, their lack of marketing.
That’s why a comprehensive marketing strategy is always a must when I work with studio owners through the planning stages. Marketing is all about creating awareness for your brand, and that doesn’t happen without investing time and effort into it.
Your goal is to get your studio’s name out there and attract potential customers, and this can be done in multiple ways:
Your website
Social media platforms
Email marketing
Local advertising
Partnerships with complementary businesses
Marketing is a great place to get a little creative and experiment. If you try out something and it’s not working, don’t be afraid to change it up. However, remember that marketing takes a while to pay off, so patience is also essential.
Also, keep in mind that your role is running your studio, so it may be worthwhile to hire marketing specialists so you’re not spinning your wheels on marketing when your energy would be better focused elsewhere.
#8. Financial Management
Of all the things you do when opening a fitness studio, having a solid plan for your financial management should be at the top of the list. You want to build a profitable and sustainable business, and managing your money is a big part of that.
First off, business and personal funds shouldn’t ever be comingled. You’ll need to set up business bank accounts from the get-go.
Some things to consider when putting together financial plans and systems:
A monthly budget
Monitoring due dates (for bills and other monthly expenses)
Tracking all expenses
Managing any inventory
Regular checkpoints for reviewing financial performance
How you can build up a cash reserve
Poor money management can be highly detrimental to your studio, so if this isn’t an area you’re comfortable with, it may be worth hiring a professional — like a bookkeeper or accountant — to help keep things in check.
Need Some Support Opening a Fitness Studio?
Opening a fitness studio or Pilates business requires dedication, hard work, and a passion for helping others achieve their fitness goals. However, with some strong planning, you can help ensure that the road to opening is less stressful.
And if you find yourself feeling overwhelmed through the process, you CAN get help.
I work with Fitness and Pilates studio owners like you to build their dream fitness studio business with specialized consulting support. I’m here to help guide you in creating strategic plans to help you meet your business goals.
Book a free consultation call, and let’s chat about how I can support you.
