Gym Startup Costs: An All-You-Need-To-Know Guide

by FitGymSoftware®

Business plan and Guide for gym business setup

5 min · June 23, 2024


According to studies, post-COVID, 26% of Indians have started to focus on engaging in different fitness activities like yoga, cardiovascular exercises, and body weight exercises. If you are a fitness freak and a trained gym instructor and want to cash this opportunity, you can start your gym. It allows you to follow your passion and earn a living. However, everyone wanting to start this business wants to know the amount they need to invest to kick-start the business.

What does it cost to open a gym?

The price ranges usually from 10,00,000 to 25,00,000. The cost of starting a gym depends on the location, quality of equipment, level of renovation required for the space, size, and ownership expenses.

List of expenses to set up a gym

Types of Gym Startup Costs

Global fitness statistics project that the CAGR of the health and fitness club industry from 2021 to 2016 will be 7.21%.

How to open a gym? If you are planning to open a gym, the first thing you should think about is the cost. Different costs are involved in setting up a gym in this country. It depends on the size, facilities, equipment quality you want to buy, and trainers you want to hire.

Capital expenditure

The gym should be spacious to attract more people. At least 10,000 square feet of space is required to start the gym. Based on the location, the rental expenses for the gym space would be Rs. 30,000 to Rs. 5,00,000.

Equipment cost

Good gyms will offer a wide range of equipment for people to exercise and tone different body parts. When there are other equipment, many people can work on each of them. If you are starting a small gym, the equipment cost would be around 5,00,000, while a lavish gym would have quality and much equipment wherein the price would skyrocket to 50,00,000.


The marketing expenses range from around 20,000 to 1,00,000, depending on the website's complexity. You can also market your gym offline by circulating flyers, local ads, and sponsored community events.

Unexpected expenses

How much does it cost to open a gym? If you are going to grab the attention of the upscale community, you need to have classy interiors. The interior design for the gym would range between 2,00,000 and 5,00,000.

Maintenance staff

The maintenance staff would include a front desk receptionist, for whom you would have to pay around 30,000 to 60,000. For the gym trainers, you have to pay 1,00,000 to 1,50,000, depending on how many you have to employ.

Factors Affecting Gym Startup Costs

Location impact

The location has a significant influence on the startup cost. Be it rent, licensing fees, remodeling expenses, or payroll, everything is associated with location expenses. Rental payments are high in certain states and cities, but they depend on which part of the city you are planning to set up in.

Generally, a location with heavy foot traffic, parking facilities, and easy accessibility would provide many fitness centers and gym opportunities. You must also consider the growth opportunities when choosing the physical location before making a Gym investment.

Size and scale considerations

The size of the gym is the most crucial aspect to consider while calculating costs, including the cost of gym equipment. The square footage would impact the rental expenses and the equipment you need to buy. An ample space would be expensive as it gives you space to install workout areas and equipment to grab the attention of large customers. On the flip side, smaller spaces would cut the cost of opening a gym but would also limit the ability to offer different fitness programs and accommodate larger groups.

Creating a Gym Business Plan

Importance of a business plan

A well-crafted gym is essential for the gym venture. It will serve as a roadmap for you to outline the business objective, target market, marketing strategies, and financial projections. The business plan will help you secure all your finances, attract potential investors, and guide you in making the right decisions.

Importance of having a business plan before starting a Gym

How to start a gym business? A gym business should have a gym plan for the following reasons:

  • Simplify the testing process before starting the gym.

  • Accumulate the capital for startup and other funding required to start the plan.

  • Provide you with business models, strategies, equipment, and marketing.

  • Set up short-term and long-term goals and define the process to attain them.

  • Mention the goals and vision to drive success in the fitness industry.

  • Mention all you need to attain goals.

  • Set a solid foundation for the business.

Various components of a business plan

Here is the gym business plan outline that should include these components.

Financial projections

It would help if you offered a comprehensive financial outlook for the gym, including start-up expenses and revenue projections. This is crucial for securing funds or loans.

Marketing strategies 

Outline how you want to market your gym and raise awareness about it. It would help if you used social media advertising, promotions, and local partnerships.

Target audience analysis

You need to delve into the target market for the gym, like discussing demographics, psychographics, and lifestyle choices. It would help if you also did a SWOT analysis to measure the position in the market as part of the Gym business plan in India .

Navigating Legal and Regulatory Requirements

Licensing and permits

If you want a new gym to open, you must follow the legal procedures. You must obtain a police clearance certificate, gym registration, SSI, and service tax registration.

Police department clearance

You must obtain clearance from the police department in the jurisdiction where you want to open the gym. You can do this online or in person at the police station.

Gym Registration

Register once you decide on the gym's business model, format, and location. Register under an LLP or private limited company for transferability and liability protection.

SSI registration

Small-scale industry registration would offer you a lot of benefits. You can apply for the provisional registration certificate issued without much inquiry. When you start to operate, you can apply for permanent registration.

Service tax registration

If the gym turnover exceeds nine lacs, you must pay service tax. Register using the ST-1 form on the government's official portal.

The above legal processes would be part of the Gym setup costs.

Insurance considerations

The cost of setting up a gym also includes insurance expenses. A few of them include:

Insurance coverage and its complications

To safeguard yourself and your clients from gym accidents, the fitness centre must acquire general liability insurance. The firm will offer coverage for property, personal injury, equipment damage, and other services based on the risk level. The cost differs based on the location and number of employees to be covered.

Insurance for commercial property

Whether you own or rent the space, you must take out commercial property insurance. It is part of the cost to set up a gym. It protects the contents and damages caused by catastrophes and theft. You can have this for a single room or the whole property.

Liability insurance

Having a reliable insurance plan for your New gym opening would be best. The safety of the members and trainers should come first. If any injuries were left untreated, they would result in deadly or life-alerting effects. So, to cover such injuries, you must obtain liability insurance.

Tips for Cost-Effective Gym Setup

Budgeting strategies: Tips on how to reduce spending without cutting down on quality.

The following are the tips you can embrace to spend less on the gym without compromising on the quality when you plan to reduce Gym investment costs in India .

  • Choose a location that costs you little.

  • Reduce the expenses you spend on designing the interior space.

  • Start by getting only essential gym equipment.

  • Hire the part-time trainers.

  • Market your gym in an effective way to increase the gym's customer base.

How to acquire gym equipment with affordable pricing

It would help if you viewed every piece of gym equipment you get at the fitness center as an investment. A warranty will back the top-quality equipment, and the service team will come to your rescue if there are any issues. Many brands sell all types of gym equipment. It would help if you found a brand that sells equipment within your budget, such as treadmills, ellipticals, climbers, rowers, and gym stations. These all add up to the Gym opening cost in India .

Financial Management and Funding Sources

There are a lot of ways for you to secure funding for your gym business. You can get a bank loan or raise money from investors. You can start your business with the savings and investments you have. Half of the investment goes into buying gym equipment. Crowdfunding is also a viable option. If you apply for a loan, you must provide the lender with the proper business plan and financial projections. The lender would analyze the cost of setting up a gym to approve the loan amount. 

The person taking the loan must have a good credit score. To raise money from investors, you must pitch and convince them that your business reaps higher ROI. Bootstrapping is a challenging option but is rewarding if the business clicks. Through bootstrapping, you can retain ownership and control over the company. 


Effective gym promotions can significantly enhance your business, but only when it is done correctly. Try to understand your audience needs, to get the result you’re looking for in your gym. Don't hesitate to think outside the box and use creativity in your approach.

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