4 Important Elements in Conducting Market Research | Start Your Own Gym With The Right Business Plan

If you want to know the basics of starting a gym business, you need to get into every detail of the business planning process with the fundamental concepts every gym business owner must understand. 

This article includes actionable tips on how you can start a gym business with a feasible plan by conducting thorough industry and market research. Specifically, we will discuss the vital factors you need to consider, the types of clients you will target, and the methods you apply. By the end, you can begin with your planning process to open your gym with all situational and financial considerations taken into account.

Industry and Market Research

Industry and market research should be among the top priorities on your list as you begin to scour your opportunities in the gym business. Without knowing your success rate against your risks in the market, you can’t possibly start and expect to be profitable in this industry. Even companies with high expectations of success can’t neglect the probability of failure.

Customers/Market Share

The first factor to consider in doing market research is knowing the types of clients you can target. You need to know your market to understand what to expect in marketing your gym products and services to specific demographics and deliver them well. 

In general, you can expect three types of customers: beginners, experienced, and advanced. These three often have different needs, so knowing if you’re capable of addressing each of them would be beneficial if you know they include in the market you’re targeting.

More specific customer groups include some of the following:

  • Fitness enthusiasts
  • Business people
  • The working class 

Customer research may then include:

  • demographics (e.g. age, gender, income)
  • social trends
  • lifestyle trends
  • fitness needs
  • behavior and expectations
  • views toward your brand
  • views toward your competitors

The fitness enthusiast is often looking for an all-inclusive package that will include lessons, equipment, and services. Business people are busy customers who need convenience in their scheduling systems and value their service experience. And the working class has a broader range of demands in terms of their fitness needs, requiring you to offer custom services to capture their market.

People working out in a gym

Products and Services

Researching about your target customers will help you develop products and services to offer in your gym. Fitness customers have various categories when it comes to their interests. For example, create product and service offers to target clients who prefer personal training, group classes, or unsupervised workout sessions. Of course, you also need to make it beneficial and uniquely irresistible to them.

You can also partner with other businesses, especially when offering gym products. Consider it a marketing strategy to expand your market share while making essential gym items accessible to your members.

Pricing Structure

Part of your research significantly involves several elements of the pricing structures.

First, you must research pricing within your local competition. Find out the average charging offered by other gym establishments in the area so you can execute the right pricing that does not go beyond or below the average prices afforded by the market.

Second, membership options don’t have to be offered in one service level alone. Some members want less while others wish to experience so much more. Remove your service limits by offering memberships at different levels.

Third, you need to consider offering custom prices depending on your customers’ specific fitness needs, behavior, and expectations. You don’t have to remove the standard membership offer available to all members. However, you don’t have to stop there either. If you know you can offer more services tailored to each of your members, don’t hesitate to suit the pricing rate accordingly.

Fourth, as you research your customers and market share, you need to re-evaluate the pricing according to their lifestyle. Some customers demand more. If you know that you can deliver, turn it into a profit that will also meet the satisfaction that your customers seek to experience.

Fifth, considering your prices according to how you can deliver your client’s needs should also suit the gym’s profit goals. Keep your profit margin in mind by calculating your overhead costs and setting a target. By doing that, you can develop the exact pricing structure that meets all the right elements.

Lastly, utilize the pricing strategy features supported by gym management software. With this technology’s help, you can adjust certain costs to keep up with the market demands without sacrificing your service quality.

Check out Jonas Fitness’ gym management software solutions by requesting a free demo here.

Marketing or Advertising

Your marketing strategy will significantly boost your customers’ brand awareness and drive sales to the business. You must realize that even if you’re opening a business similar to many other successful establishments in the area, you don’t have to follow their marketing strategies to the letter. You will have a unique business structure when you consider all the elements in your company. With that, you need to develop a marketing plan best for your goals.

You will find several options available when it comes to your gym’s business marketing plan. You can hire professional marketers to advertise your gym according to how you stipulated it in your business plan. Marketing consultants and specialists in digital advertising will be of excellent service for many startup businesses in many industries, including the fitness market. Internet marketing involves social media, email marketing, pay-per-click (PPC), search engine, or combining these approaches.

Conclusion

Your business plan will give you an idea of the level of competition you will face. Conducting industry and market research will guide you in identifying the most effective strategies to use in starting your gym business. 

Now that we’ve covered the essential elements in achieving your industry and market research as a vital part of your planning, you can move on to other crucial parts of the business roadmap.  

Having the best tools within your access will also affect your bottom line. When you’re ready to get started, don’t forget to consult with a business consultant to help you understand the best course of action for your gym.

Are you looking for solutions in streamlining your business processes as early as the planning stage? You should consider exploring the features of health and fitness club management software. Jonas Fitness helps the industry’s top gyms, health clubs, and wellness centers solve business challenges and boost their bottom line. Request a free demo here today to find out how we can help improve member experience for future customers!