Gym (Fitness Center) Business Plan Investment Profit

Gym Business Ideas Or Fitness Center Business Plan Investment Profit

In present time, due to life style or hectic schedule, the demand for Gym has also increased. Everyone wants to look fit so they can maintain their life style and stay healthy. Even with increasing population within the country, there is an increase in the number of people suffering from Diabetes or other related health conditions.

Gym Business Ideas Or Fitness Center Business Plan Investment Profit

According to past estimates, over 10 to 15 percent population is suffering from serious diabetes condition, while over 35 percent people are suffering from severe heart, cholesterol, Blood pressure or hypertension related problems. Obese is also one of the most common health problems and so for our healthy life style we need to visit gym sessions regularly.

In this article we have provided you with requirements you need to fulfill for registering and establishing your own Gym in India.

Getting your Gym License in India

In order to get your gym license in India and set up your own personal Gym, you may have to apply for Police NOC. This is mandatory for anyone who wants to operate Gym or Fitness center in India. You have the convenience to apply in person or online.

Note:- As India is a country having many states so the regulations may also vary from one state to another.

You have to approach the local Police Department and collect more information from them.

How to Register a Gym in India?

If you want to finalize the setup of a Gym in India, you have to look around for ideal location. It is also advisable to work out the total cost before setting up. The Indian government permits registration of Gym as Ltd. or Pvt. Ltd. Firm.

This will help you obtain proper protection and transfer ability from the Promoters. The moment you are possessing Transfer ability, you can ensure that you can sell off the Gym in case you are not able to operate it.

SSI Registration

You will have to register your Gym in India under Small Scale Industry at your nearest Taluka level. This will further offer you with protection of license and other benefits.

Registration Process

  • In the initial stage, you will have to apply for registration as provisional basis, as Gym is not considered as Industrial unit. You will be issued with a provisional certification for Gym one the process of application has been submitted by you.
  • The moment you have got started with your gym establishment business later on you can apply for permanent registration license.

Incase of applying for permanent registration you may have to consider following points.

  • You have already got all further NOC and clearance from authorized bodies including society. You have to keep in mind that it is important to follow local regulations imposed.
  • You also have to mention the value and cost of all gym equipments and other premises details that shall be used when opening or setting up your Gym.

As per the regulations, you have to get the Gym registered for Service Tax as you are providing with service. This is valid in case your annual turnover exceeds Rs 9 lakhs in value.

How to open a Franchisee Gym?

To decide the set up of a franchisee gym you have to think of the type or format of the gym or center. In general, within India you have two basic categories:-

  • Weight lifting, Gym and cardio equipments gym – This is a common type of franchisee gym that has all set up for weight lifting practice, cardio exercises and other general Gym equipment.
  • Fitness centers – This type of Gym is more expensive type that offers with complete fitness cycles including weight gain or loss programs, martial arts, Yoga, Aerobics and much more.

The second type of fitness centers are usually set up depending on the Geographical and Demographical features. As the cost of investment is also much more as compared to normal gym so they are usually established as partnership firms.

Process for set

  • First you have to work out the fitness center general plant for establishment. As it involves big investment so you may have to seek advice from professionals.
  • After proper planning you have to work out the cost for establishment. It is important that you take all right decisions to avoid future complications.
  • You have to complete the procedure of registration from the Local governing authorities as well as the franchiser outlet company.
  • All equipments in general have to be invested by the entrepreneur. Some companies may also request you to make an initial deposit for providing you with professional trainers and other equipments at your place.
  • In case you are in need of a personal or business loan then you may have to apply under the same with various financial institutions or banking institutions.

How to start a Gym Business with no money

Getting started with Gym business without money may not be easy task.

  • To get started with low budget try and rent small space inside other professional Gym or health center. You can also provide with home based sessions to your clients by visiting their homes.
  • Make use of words of mouth or pamphlets distribution for marketing. Always ensure you invest less money on marketing. Try and approach free resources.
  • It is ideal to approach services that are available on voluntary basis starting from training sessions to accountability. Avoid making use of latest gym equipment and expensive trainers. You should try and provide with training on your own.

Gym Equipment list and prices where to get them

You can start looking around for affordable and latest Gym equipments in India online over the internet. Some of the top rated gym equipment suppliers along with list are provided here.




Total Investment

The total investment in general would depend on the overall space you have selected for entire set up.

  • If you are willing to rent out around 2500 to 3000 square feet of space then you may have to invest around Rs 77 lakhs annually. This would include the cost of equipments, marketing and interiors as well.
  • If you are planning to rent or lease out around 3000 to 3400 square foot of space then you may have to invest around Rs 87 lakhs annual including interior and marketing with equipments.
  • If you want to establish over 3400 to 4000 square foot of space then the cost would go around Rs 98 lakhs including interiors and equipments.

Profit Margin

Profit margin in Gym would depend on the locality where you set up your gym. If you have invested around Rs 70 lakhs in the gym establishment then you can easily generate around Rs 17 lakhs as annual profit after taking the cost of utilities, marketing, rentals and salary away from the income.

Marketing strategy

  • In order to make use of best marketing strategy you should try and approach the local residents and schools. It is also ideal to try and visit schools and colleges. You can get them signed up for entire academic year for discount benefit.
  • In the initial stages you can also provide with discounted offers so you get to attract more visitors. On regular basis try and implement better profitable offerings for people in your gym.

Market area For Gym Business

  • Your target customers list will include people who belong to the corporate sectors as they need to get away from their busy schedule and find time for exercises.
  • You can try and approach corporate people and business men for getting them registered in your Gym. Common house wives and men can also be targeted for joining regular gym sessions.
  • You can also target sports men and women to join and be a part of your special training sessions. School going kids and college going youngsters can also be targeted to join the gym.


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