Is it Profitable to Own a Gym in Australia?

Whether you are interested in running your own gym or becoming a personal trainer there are challenges and rewards that you need to keep in mind.

The biggest question is can you financially support yourself if you nosedive into a Gym or PT business?

When you decide to start your own gym there are a few important things to consider first. You need to have a solid business plan and marketing plan in place with concrete data and forecasts. You need to choose a location where you are confident the demographics support running a profitable gym. You also need to explore leasing options that suit your goals. Sometimes, there aren’t many options so might end up with a long-term lease that you cannot easily get out of. This is just the tip of the iceberg; you must also consider your ongoing operating and overhead costs.

You’ll need to get ready to hire staff, pay salaries, buy gym equipment, pay for equipment maintenance, pay utilities, keep up with rent, pay for upgrades, and much more. You might wind up making the right profit if all the cost doesn’t stop you from realising your dream of owning a gym.

In Australia, a number of variables, including location, competition, pricing strategy, target market, and operational costs, can affect how profitable a gym is to own. Nonetheless, operating a gym in Australia can be a successful business if it is run effectively.

Controlling Your Finances

Gym operators must also control operating expenses to optimise profits, set reasonable membership rates, provide superior facilities and equipment that cater to their target demographic, and provide alluring specials and packages.

Remember the Fixed Costs

Fixed costs are those costs that you incur regardless of how much of your service or product you sell. For a gym owner, these costs can rack up to $100,000s of dollars. Some of the unavoidable fixed costs include the cost of getting franchise rights, purchasing equipment, upgrading portions of the building, paying rent, move-in costs, and unforeseen repairs.

Be ready to put down an initial investment of $150,000–$450,000 if you intend to operate a gym. Although there is a wide range, you can simply keep costs low by starting with a smaller facility or buying used or refurbished commercial gym equipment. Stay away from consumer-grade equipment. They will last only a few months with the heavy use they will be put through in a commercial gym.

Ways to Make Money

The fitness sector in Australia generates over $4.4 billion in sales yearly and has expanded over the last five years, according to the 2021 IBISWorld Industry Report. The report also emphasises the low entry barriers in the business, which can lead to fierce rivalry but also chances for new entrants to carve out a position in the market.

Australians pay an average of $60 per month for gym memberships, with 24-hour, basic clubs receiving the majority of their business. You might earn up to $6,000 just from monthly gym memberships if you can attract 100 customers in the first few months. Add a protein bar, drink, or snack, more classes, personal training, and other specialised services, and your sales may soar.

Adding more services like personal training, group classes, and nutrition coaching can boost income and keep members coming back.

Pay Yourself Last

While the common financial advice is to pay yourself first, it does not apply to Gym owners. Before you even start dipping into the bank account or paying yourself make sure all the expenses, bills, fees, and rent are paid for. Remember, you still need running water, electricity, Internet, working equipment, staff, and supplies. If you have trainers, receptionists and cleaners, paying them comes before you pay yourself. Moreover, if you are planning to expand and grow your business you will need to reinvest funds in marketing and advertising for the business.

You might be making between $105,000 and $210,000 per year running your own gym if you stay the course and keep developing and expanding your business.

Or become a Personal Trainer

If running your own fitness company sounds like a pipe dream but running a gym doesn’t seem like the ideal career move for you, you might want to think about becoming a personal trainer. Whereas running a gym has extremely high operating costs, running your own independent personal training business has comparatively moderate operational costs. Personal trainers have the choice of operating from a Gym, a local facility or their own space. Some personal trainers choose to use public spaces, parks, reserves, schools etc. to provide training. Not to mention there are mobile gyms such as Gym 365 which is a small trailer gym on wheels. You can attach the trailer to your vehicle and take your own Gym where you need it. As a Personal Trainer, you can also invest in equipment that you can take with you or use in your own area.

Becoming a personal trainer enables you to meaningfully contribute to someone’s fitness journey, just like running a gym. Personal trainers assist clients to reach their goals, connecting with their bodies, and gaining more confidence by working one-on-one or in small groups. There are several chances for business development, customer retention, and professional achievement for both personal trainers and gym owners.

Having your own gym can be a fantastic opportunity, but personal training has its own special advantages. If you have the self-discipline to do so, you can choose your own hours and schedule as a personal trainer. Also, personal training enables you to operate in your ideal setting rather than being required to go to a workplace that is determined by your company every day. If you want a more all-encompassing approach to fitness, becoming a personal trainer is the ideal career choice because it enables you to develop closer, more intimate relationships with customers.

Challenges of a Personal Trainer

Even if you can choose your own hours, one of the challenges of personal training is the commitment needed to strike a balance between work and life. Making a profession out of personal training is simple if you can effectively set your own hours and grow your business. Personal trainers in Australia make an average of $29 per hour; if you work 40 hours per week, you might make more than $60,000 a year while assisting clients in changing their lives.

You’ll need the right qualifications whether you want to run your own gym, work as a personal trainer, or just occasionally teach a few spin classes.

The bottom line

Ultimately, operating a gym in Australia can be financially rewarding, but it takes careful planning, efficient administration, and a thorough knowledge of the regional market and rivalries.