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As with other types of small businesses, a significant portion of a gym's success has to do with its location. The location of the gym should be based largely on the population group that it targets. People don't like having to go far out of the way to fulfill their fitness needs. The best gym locations are in areas where there is demand for a gym, where the gym can be easily accessed by its clientele, and in which competition with other gyms, fitness clubs, etc., is minimal or at least manageable. Below are just a few things you may want to consider when choosing a location for your gym:  Rent. Unless you own your gym's building outright, you'll have to pay rent as one of your gym's operating expenses. Rent can vary from location to location. In wealthy or densely-populated areas, for instance, rent can be very expensive, which can require you to raise membership prices to pay for it. Proximity to population centers. If your gym is too far away from your clientele, they won't go to it. Good gym locations should be in or near populated areas or at the very least be easily-accessible via car, bus, train, and so on. Local market conditions. Finally, the best gym locations are where there is a demand for a gym that isn't being filled. Opening a gym across the street from an established gym can be a risky move - why deal with the intense competition when you can open a gym in a part of town that is sorely lacking one? Make phone calls or conduct door-to-door surveys to determine not only the age and sex of individuals in the area you wish to target, but also the physical activity level of these residents. Like any business, opening a gym costs some money. Obtaining the space for your gym, buying equipment, modifying your building to accommodate the needs of your gym, hiring personnel, and registration/licensing fees can all be substantial cost barriers to open your gym. Most small business owners don't have the money up-front to pay for everything they need to open their business. In these cases, it's necessary to raise the money somehow — this is usually done by persuading wealthy investors to provide capital or simply by getting a loan.  By some estimates, it can cost anywhere from $200,000 to $500,000, at bare minimum, to open a gym in a place like New York City. For a state of the art gym that features amenities and experienced personnel, the estimates can easily exceed $1 million. See: How to Find Investors for a Small Business and How to Get a Loan. Note that in both of these situations you will almost always be expected to provide a detailed business plan for the benefit of the people or entities providing you with the money to open your business. This business plan must offer a convincing explanation for how the business can quickly become profitable, or the investors/lenders are unlikely to provide money for your venture. One potentially lucrative option prospective gym owners have is to open a franchise gym, rather than their own independently-operated gym. In this situation, the owner runs the gym for a large chain with many other locations. The parent company usually covers the initial cost of opening the gym and either provides its own equipment or pays for equipment. However, in a franchise situation, most of the profits from the gym go to the parent company. The franchise location may also be subject to sales quotas.  The parent company also offers its extensive resources to the gym owner, which can include a recognizable, established brand, training opportunities, connections, and financial support during "rough times". As with traditional forms of small business financing, franchise opportunities usually require you to submit a detailed business plan to the parent company. Be sure to carefully research the pros and cons of a franchise agreement before committing to it. Owning a franchise may sound appealing, but it's usually not a golden ticket when it's all said and done.
Pick an accessible, lucrative location. Determine who your gym will target. Raise capital or get a loan. Consider the option of opening a franchise location.