7 min readReports, expenses and accounts
Gym setup cost and business plan in India: every cost to count before you open
By Himanshu Thakur, Founder, Jimwala · Updated · 7 min read
What it costs to open a gym depends almost entirely on the city, the size of the space and whether you buy equipment new or used. A quote you read for another city or a bigger floor will not be yours. So this guide does not name a figure for opening a gym in India. It gives you the list of costs to ask about and a sum to test whether the plan pays back.
If you are still deciding whether to open one at all, our checklist for starting a gym business covers that first.
One-time costs to list
- Rent deposit. Commonly several months of rent held by the landlord. Ask before you sign.
- Fit-out: flooring, mirrors, lighting, ventilation or air conditioning, changing rooms and toilets.
- Equipment: cardio machines, benches, racks, dumbbells and plates, and anything for stretching or classes.
- Branding and signboard.
- Software, computer or tablet, and a reliable internet connection.
- Licences and registrations, below.
New equipment or used?
Used equipment can cut the biggest line sharply, but ask what it will cost to keep running. Free weights and benches age slowly. Treadmills and other machines with motors and electronics can be expensive to repair, so check how easy it is to get spares and a technician in your town before you buy.
Get written quotes from at least three suppliers, and ask each what warranty and servicing they give.
Licences to check locally
Rules differ by state and by municipal corporation, so check them yourself with the local office and with a chartered accountant. The usual things to ask about are the shop and establishment or trade licence, any fire safety requirement for your building and size, electricity connection category, and GST registration if your income will pass the threshold. If you play music in the gym, music licensing bodies in India collect fees for public performance, so ask about that too. Do not skip this step. A closed gym is the most expensive kind.
Monthly costs to list
- Rent, electricity and water
- Salaries for trainers, front desk and cleaning
- Equipment repair and cleaning supplies
- Marketing, software and internet
- Licence renewals and small unplanned items
Working capital
A gym does not earn its first month on day one. Keep enough cash to cover fixed costs for the first three to six months, because memberships build slowly and a new gym often runs below break-even at the start. This is the most commonly forgotten line.
The payback sum
Add the one-time costs and the working capital to get your total investment. Estimate the monthly profit at a realistic member count, not a hopeful one. Divide the first by the second to see how many months it takes to get your money back.
As an illustration, an investment of ₹20,00,000 against a steady profit of ₹42,000 a month pays back in about 48 months, which is four years. If that number looks too long, change the plan before you spend: a smaller space, used equipment, or a lower rent.
Test the plan on your own members first
Work out the break-even number for the monthly costs you listed, then ask honestly whether your area has that many people who would pay your fee. If you can pre-sell memberships before you open, even better.
Once you open, track every payment and expense from the first day. Jimwala has a 14-day free trial, and its reports show collections, expenses and profit for any date range, so you will know whether the plan is working.