Many people dream of opening their own business, being their own boss and taking control of their own careers with a new and exciting challenge. Unfortunately, far too many of these people falsely presume that the initial start-up costs and risks place their dreams forever out of their reach. But in fact, it does not have to be as difficult as you may have previously presumed to set out on a new business venture in your chosen industry.
For those looking to open a new gym in Australia, it is always a good idea to consider buying into an existing gym franchise. With the benefits of all their existing business models, marketing resources and training services – not to mention their established base of customers who are familiar with their brand – your franchise partner can help you get off the ground more swiftly and efficiently than may otherwise have been possible.
Initial Costs: Franchises & Fit-Outs
One of the many benefits of opening a new gym franchise business is the fact that the costs are fairly straightforward to work out. Because the franchise will have established processes and models, they will be able to give you a very clear idea of exactly how much money you are going to need in order to get your new business up and running.
As a general rule, the initial outlay for investing in an Australian gym franchise will be somewhere between $200,000 and $600,000 – but the exact amount will vary greatly depending on the particular brand you choose to partner with. The final figure will also depend quite heavily on your own choice of location and equipment, with the official franchise fee giving you access to the franchise brand and resources likely to account for only $50,000 to $70,000 of the overall start-up costs. By contrast, the initial fitting out of your chosen premises with equipment and furniture is likely to account for between $50,000 and $300,000 of this sum.
Aside from the franchise fees, it will be important to take into consideration such factors as the security deposit on your premises (which is likely to come to around three months’ rent), and the initial working capital you will require to start winning customers.
Ongoing Costs & Setup Time
Once you have paid the upfront costs and got your new gym decorated, furnished and fitted out with equipment, you will be ready to open your doors to the public. As you begin trading, you will need to be mindful of the fact that your franchise partner is likely to charge an ongoing fee for the use of their brand and resources, so you will need to factor this into your ongoing costs. Depending on the franchise you choose, this figure may amount to a set monthly rate or a percentage of your turnover.
Other ongoing factors such as the rental cost of your premises, insurance and staff wages will all need to be taken into consideration. The amount of time it is likely to take to get your business running at a profit will vary from case to case, though again your franchise partner should be able to provide you with plenty of help, support and advice based on the experiences of previous franchisees in your position.
Overall, to give yourself the best chance of turning a profit as quickly as possible, make sure you choose a great location with plenty of transport links and take advantage of the established reputation of your franchise brand to demonstrate your edge over the competition and win your first customers. As long as you choose the right franchise partner and the right location, you can be confident that with plenty of work and passion you will have the foundations of a thriving new business that is sure to repay your initial outgoings in no time at all.
Why Choosing Ninja Parc Franchises?
When it comes to taking the first step towards your new career, you could benefit from choosing Ninja Parc as your local, Australian-owned fitness and kids gym franchise. We specialise in working with franchisees to build dynamic and exciting new fitness franchises for kids, and our team of highly trained and experienced professionals have been working in the industry for years.
As a result, we know exactly how to help new and aspiring franchisees to hit the ground running and turn their fledgling businesses into thriving hubs in their communities. Our established costing and financial protocols along with our time-proven business models mean that we can make the whole process as straightforward as possible and give you the tools and confidence you need to start making a profit as swiftly as possible after opening your doors to the public.
If you are ready to get started, feel free to contact our team via the online form available on our site. We will then review your information promptly and send you a free franchise information pack containing everything you need to know about how starting a new business with us works.