Looking to open your first gym or wanting to expand an already existing one, the most important thing to consider is your location.
Why does location matter?
The location of a gym plays an important role in determining whether it will survive the competition or not. Your location plays an important role in the promotion of your business and is a significant factor that affects your revenue.
You need to have your gym at a location which is easily accessible for your target audience, is visible, and has enough area to accommodate your members.
Factors to consider while choosing your location
You need to consider the following factors before finalizing a location for your gym:
Know your members
The first and foremost thing you need to do is figure out who your target audience will be. It is a common mistake for gym owners to try and provide all sorts of services to their members at their fitness facility. You need to focus on providing a few services to your members initially. This will allow you to determine your ideal member. Your ideal members can be anyone from bodybuilders to employed personnel, from high-income groups to low-income groups. Every target audience has different needs that you would need to address.
Visibility and accessibility of your gym
Now that you have an idea about your target audience you need to decide where you want your gym to be located. You can pick either a commercial or residential area but you need to make sure you have high visibility. High visibility means that you will be able to attract more clients, keep in mind that the rent will be high in these locations. If you are going for a place that has lower visibility it will have lower rent. Supposedly your target audience is members who can easily afford premium memberships then you can go for a place with high visibility.
Other than visibility, you need to make sure your gym is accessible to your members. Areas, where different modes of transport are accessible, are preferable. As some of your members will have cars or motorbikes, providing a gym with sufficient parking space is ideal. You need to make sure that the space is not overcrowded with vehicles so that it does not become a problem for your members.
Size of the gym
Another important factor to consider is the space your gym will have. You need to think about which services you will be providing to your members and what equipment you will need for it. Now that you have the equipment in mind it will be easier to decide how much space you will require to set it up, how many floors you’ll need, and how you will plan its layout. The atmosphere you will provide to your members also depends on the size of your gym, so you need to be thoughtful about the space.
Competition in the area
You need to conduct a market analysis to see the competition in your area. Listing down your competitors in the area is a great way to see what you are up against. Keeping away from any direct competition is a better option if you are establishing a new gym. But keeping away from competition does not mean that you get a location which is not accessible or visible to your target audience. So it is better to select a location which is visible and accessible to your members but is a bit farther away from your already established competition.
However, if you have a solid Unique Selling Point (USP), opening your gym near your competition can be more favorable. It would provide a great opportunity to attract your competitors' members to your gym.
Cost
We had discussed in a previous article, How Much Does It Cost To Start A New Gym?, that the cost to open a gym can be anywhere from $700,000 - $1,700,000 on average. Allocating a budget for all of your business activities is important. If you give less and commit more then you would have to cut back on other operations of the business. Finding and securing a good location takes up a major part of your budget, so you need to be careful while investing in your in the location of your gym.
Best places to open a gym
Now that you have an idea about the factors to consider while selecting a location for your gym, following are some potential areas you can choose to set your gym in:
Near health and wellness centres
It would be a wise idea to pick a location near businesses that are in the same industry. Opening your gym near places like wellness shops, health clubs or health food stores is ideal for your business. As the kind of footfall in these areas would be interested in your services as well. You will also have the advantage of partnerships with the businesses in that area which can be great for promoting your gym.
In shopping malls
Having your gym in a shopping mall can be a great way for you to increase the exposure of your gym. Malls are hustling and bustling every day, so people walking by can see and notice your gym. Shopping malls have their own parking and security so it saves you a lot in the long run. In the end, the exposure and cost reductions make it preferable to open your gym in a shopping mall.
Any business region
Professionals in their mid to late twenties till early forties can be potential clients for you if you have a fitness studio located in a business district. Business districts are areas where there are many companies, and where there are a lot of companies, there will be many potential clients for you. The younger demographic today cares more about their health and fitness than the older generations. This shows that there is a massive potential in this market.
You need to market your Unique Selling Point (USP) heavily in business regions due to increased competition.
Takeaway
Location is a big part of what you want your brand to look like and what you want your members to perceive it as. So you need to take your time and think about where you want your gym to be considering the factors stated above. Once you have all these points figured out you need to make sure the location you select has your potential target audience. Many times the gym has a great layout and design but the area is not easily accessible for the members or does not have a parking space. So picking a location that covers all these factors is necessary.
