Researching before starting your own gym? Or own a gym and want to see if you are performing up to the mark or if you are underachieving? We've got you covered!
It's important to know that gym owners' salary doesn’t really have a fixed amount. It depends on a few factors. Ultimately, your salary depends on the profit you are generating from your gym.
Factors that determine how much salary Gym Owners can make:
There are a number of factors that affect the profitability of your gym and the salary you can earn as the owner.
Gym Size
A major factor is the size of your gym, how many members can your gym accommodate at a time? The number of members your gym can accommodate affects the revenue your gym can make. If you have a smaller gym with fewer facilities then your expected revenue will also be less as compared to larger gyms.
Being a gym owner you need to be careful in how you are utilizing your gym space. If you have a large gym but are not providing equipment or services to your members according to the size of your facility, you are wasting your space. A larger facility will cost you more and will be a waste of money if you are not utilizing it correctly.
The Business Model of your gym
The Business Model your gym will use depends on the type of gym you have established or want to establish. A Business Model describes how you want to structure your business. It includes what services you are providing to your members, what type of members you have, and what is the value of your service. Following are some of the different gym business models you may use:
- Hybrid Fitness Studio
- Pay as you go
- Membership Based Business
- Franchise Business
Your business model can include any one of these options or you can even have a combination of them. Your business model can also contribute to how much revenue you are making and hence affects how much you will earn as a gym owner. Read more about strategies to enhance your gym revenue in our previous blog.
Startup Costs
The costs that you incur starting up your business have a big impact on your earnings. You can start your gym in the United Kingdom from as low as £100,000 if it is a smaller studio. Your start-up cost depends on the type and size of the gym you want as well as the location you select for it. A larger facility requires more equipment and will cost more to acquire.
You need to decide where you will arrange to fund these costs. You can be having personal savings for them or you can even get a loan from banks. The rent, insurance, set-up, utilities and salaries will be included in these initial costs.
Want to know how you can profit from your gym after opening it? Read more about it in our previous blog, Is Opening a Gym Profitable? 7 Expert Tips To Help Increase and Retain Gym Memberships.
Operating Expenses
Again the expenses you will incur will depend on the business model you are using. If you have a gym that is focused on weightlifting then you might have higher insurance and utility expenses and a lower trainer salary expense. Whereas if you have a yoga studio you might have a higher trainer salary expense.
Other expenses that you might have to pay are rent, utilities, insurance, staff salaries, and, marketing of your facility. Maintaining your facility and scheduling properly can be great ways to control your expenses.
Reinvesting in your gym
Let’s suppose you are a gym owner making an annual profit of £80,000, which is basically your salary. Taking all of the profit and not investing in your business means that no capital will be left. You can’t invest in marketing, staffing, repairs or maintenance if you do not have any capital. So, it’s better to reinvest as it will help to grow your business, which can lead to higher profits. We would suggest reinvesting about 25% of your earnings in your gym.
What is the average earning of a gym owner?
According to a study by Salaryexplorer, a gym owner in the UK makes approximately £113,000 a year. If we divide this number on a monthly basis, that will make approximately £9,415 per month. The report also showed that annual salaries can vary as high as £180,000 or as low as £52,000. These values also vary from state to state depending on the locals.
The truth is, there isn’t any average if we are determining a gym owner’s salary. There are many pieces of research done online which show a different average, the reason is that these researches may have respondents who are affected by different factors, which are discussed above. The effect of those factors may influence the overall result, which is the salary of gym owners.
Final Verdict
There are many factors that have an impact on the salary of a gym owner. But the best approach is to keep overheads low so that you can keep your profits high. Investing in your gym will help in growing your business and boosting your salary in the long run.
