I have a project for my class and that is to start my own fitness center/gym, I think 5000 sq ft is substantial for an average starting gym. I would also like feedback on that, so if anyone can give me a idea of all the overhead in a month of a gym this size I would more than greatly appreciate it I’m a noobie. I don’t think or assume I know anything about business. I just got assigned something and I need help! thank you all!
Here is what you need to take into consideration:
-Location because depending where you are going to start your gym at the electricity charges, taxes and distribution rates vary. You will need to do some search to see what the above numbers are.
-The overhead also depends on the type of equipment you are going to buy or lease, the number of employees you will have, the type of trainers (fitness instructors, personal trainers, independent contractors, etc.).
-The amount of down payment you will put when applying for a business loan and the length of the loan is going to play part when calculating the overhead cost as well.
-The lease agreement you will have with the landlord if you are leasing the space.
-Insurance (liability, equipment and building structure)
-Are you going to be open 24 hours/day or will you have a fixes business hours (this will also determine the amount your monthly overhead expenses)?
The above are some of the things I can think of at the moment. Hopefully someone else will be able to help you with more ideas.
I would call the electric company and ask them. They should be able to give you a rough estimate.