If you want to begin your own personal training company or if you already have your own business, you will need to know the legal and financial aspects of starting a fitness business.
There are a lot of considerations which have to be taken into account when you start your own fitness company, such as what type of business entity to form, where you should register your business, and how much it will cost. What needs to be in place before you start soliciting clients? Once all this is done, other things must happen before you can begin getting clients, such as marketing and establishing a website.
This article will focus on what is needed for those who want to start their own company or have already started their journey down that path.
The Basics: What You Need To Get Started
There are a few basics you’ll need before you cut that ribbon and let your first customers into your studio; let’s take a look.
A Business Plan
This is the first step in getting started and can be the most challenging part of forming a fitness business. You need to take into account many aspects of starting a business, like marketing, accounting, finances, local zoning laws and regulations, etc. You also need to be aware of the obstacles your business may face, such as competition, clientele, equipment costs, maintenance and upkeep, and more. This plan is an invaluable tool for you and for potential investors when it comes time to raise capital.
Putting together a proper budget takes time and careful planning so that you can be certain of what you are spending your money on. You’ll need to account for things like building utilities, gym equipment, marketing, insurance, and other business costs.
It may be difficult to get your head around at first, but at the end of the day, it is one of the most important documents for any business owner/operator. This will also help you to set realistic sales goals and plan for future expenses such as advertising, marketing, meeting insurance costs, etc.
Registration is crucial because your fitness company will have legal status as an independent entity. If your personal fitness coaching business is your own sole proprietorship or partnership, you will not have these added benefits.
If you are working for a company or are just getting started, many business entities are available to you, including the following:
- Sole Proprietorship – When your fitness training business is owned and operated by only one person, it is considered a sole proprietorship. Entities like this do not need to register with the state because it operates under one person’s name.
- Partnership – When your fitness training business is owned by two or more people, it is considered a partnership. Partnerships do not need to register with the state because it operates under two or more people’s names.
- Corporation – When one or more individuals own your business, it can be a corporation.
Finding Your Niche
Once you have your business plan and are ready to start looking for a location, one of the next steps is to decide what type of equipment and decor you will have in your new facility.
Having an idea of the type of customers you want to attract -i.e. new moms, weight lifters, wellness enthusiasts, etc.- will help you plan your equipment and decor purchases easier.