Fitness Facility

How Profitable Is A Fitness Facility? (Updated for 2024)

Pat Walls

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Updated: September 22nd, 2024

How Profitable Is A Fitness Facility? (Updated for 2024)

So you want to start a fitness facility?

And the first question that came to your mind was, “well, are fitness facilities actually profitable?”

With a market size of $96B - there’s plenty of business to go around.

Especially considering:

You could start a fitness facility with as low as $20,000
Based on our data, fitness facilities generate an average of $490K per year
You could see gross margins as high as 62% with fitness facilities

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a fitness facility.

Let’s dive in!

Is a fitness facility profitable?

Yes, a fitness facility is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $490K per year with an estimated gross margin of 34%, you could expect to recover your investment within 15 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your fitness facility.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your fitness facility is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a fitness facility worth it?

If you’re wondering if a fitness facility is worth it, the answer is a big YES. With fitness facilities, you have the potential to earn $490K per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $96B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a fitness facility to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful fitness facilities case studies.

Examples Of Profitable Fitness Facilities

Here are a few examples of profitable fitness facilities, and a few more details about them:

1. Arsenal Health and Fitness ($1.56M/year)

Jake Rowzee, co-founder of Arsenal Health and Fitness, was inspired by his personal health struggles and a revelatory Joe Rogan podcast episode on hormone testing. Today, his company generates around $130k/month, providing a comprehensive health optimization service.

Is it profitable? Yes
What's the gross margin? 62%
How much money it makes: $1.56M/year
How much did it cost to start: $20K

My Exact Playbook For Building A $1.5M/Year Fitness Business

Delving into the journey of Arsenal Health and Fitness, this case study reveals how a passion project turned into a $130,000/month business through a comprehensive and personalized health optimization model, leveraging everything from personal networks to innovative hormone testing and multidimensional wellness strategies.

Read this case study

Read by 32 founders

Learn more about starting a fitness facility:

Where to start?

-> Fitness facility plan
-> How to finance a fitness facility?
-> How much does it cost to start a fitness facility?
-> Pros and cons of a fitness facility

Need inspiration?

-> Other fitness facility success stories
-> Marketing ideas for a fitness facility
-> Fitness facility slogans
-> Fitness facility names
-> Fitness facility Instagram captions

Other resources

-> Fitness facility tips

How much can you make with a fitness facility?

With a fitness facility, you can make an average of $490K revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $20,000. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 15 months.

How much does a fitness facility make a week?

Based on our data, average weekly revenue for a fitness facility ranges around $10.2K. As such, you could see monthly revenues of $40.8K.

To know if your fitness facility achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your fitness facility.

How much do fitness facilities owners make?

The income of a fitness facility owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established fitness facility is about $10.2K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a fitness facility owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Fitness Facility Profit Margins

Generally speaking, a fitness facility can expect profit margin of around 34%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a fitness facility, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, fitness facility owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, fitness facility owners can ensure long-term sustainability and profitability for their business.

Fitness facility owner salary

The salary of a fitness facility owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established fitness facility, in a prime position, might see an average weekly salary around the ballpark of $3.47K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a fitness facility may be a promising business to start - but the success of your fitness facility mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable fitness facility.

Part of

Starting A Fitness Facility: Everything You Need To Know

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