What is The Best Way to Start A Gym Business In India?



According to Smergers, the Indian fitness business is valued at Rs. 4,500 crores and is growing at a pace of 16-18 percent each year. With the growing popularity of fitness, it’s worth noting that opening a commercial gym, even with a business loan online or MSME loan online, is a potential prospect for anyone with an entrepreneurial spirit.

In the country, gyms have long been popular. This blog includes all the information needed on how to start a gym business in India and make it into a lucrative business in the long term for anyone considering a gym startup, including information about obtaining business loans online.

Apply for Business Loan

Choosing a Location 

Your gym’s location has the potential to make or break your business. Setting up your gym in residential neighborhoods, gated communities, or apartment complexes is great.

If no space near the residential neighborhood is available, choose a large space in the next closest potential place for a cheaper rate. In the mornings and evenings, gyms in residential areas tend to be packed.

People are willing to walk a little further if it means working out in a less crowded and more comfortable environment.

Select a Business Model

According to industry research, the cost of operating a gym in India might range from 5 lakh to 10 lakh rupees. As a result, no major company investor would agree to hand money away or provide business loans in Delhi or any major city without a solid business strategy in place.

The business strategy you select will have an impact on how successfully your gym performs in the region where it is located. Your business models might vary depending on what you’re ready to accept:

  • The Membership Model: For a long time, this has been the standard business model for gyms. Customers pay a monthly charge, which provides you with steady revenue.
  • Pay-As-You-Go Model: If you’re just starting and want to attract new members to your gym, this is the greatest option. If the package costs Rs.1000 for ten visits, customers can go to the gym anytime they like.
  • Dynamic Pricing Model: Customers will be presented with various packages based on their requirements and objectives. If you locate your gym near high-end neighborhoods in major cities, this will be a more successful business strategy.
  • Integrated Strategy: This model helps both gyms and consumers by combining membership with pay-as-you-go. Regular members may take advantage of the membership model, while irregular members can choose the alternative.

Obtain the necessary licenses

Fitness centers should be organized as a Private Limited Company or a Limited Liability Partnership to guarantee that the promoters have transferability and limited liability protection.

After completing the business registration, a person must get the tax registration, building permits, tax processes, and first investment-related licenses. A fitness center’s services will be subject to service tax.

As a result, whenever the fitness center’s yearly sales exceed Rs.9 lakhs, it must register for service tax.

In addition to service tax registration, the fitness center also needs to seek SSI registration to be eligible for government subsidies and programs.

Operating a fitness center in India also necessitates obtaining permission from the local police department. To run a fitness center in the state, you must first seek permission from the relevant official of the police department.

Hire Personal Trainers

The availability of trainers on-site determines the fitness center’s capability. Fitness trainers may assist clients with suitable training regimens and provide personalized suggestions.

As a result of these services, they will be able to maintain their membership for a long time. A licensed trainer will not only provide validity to your gym but will also improve the quality and word-of-mouth marketing.

Here are all the credentials you should check for before choosing a fitness trainer:

  • GFFI (Gold’s Gym Fitness Institute) 
  • BFY Sports & Fitness
  • CBT (Certified Bodybuilding & Gym/ Personal Trainer) 
  • IAFT (Indian Academy of Fitness Training)

Equipment and Interiors

Installing the proper exercise equipment should be high on your priorities list. You must consider the safety of the members, as well as new technology and proper maintenance.

The cost of installing any standard equipment might range from Rs. 3,00,000 to Rs. 40,00,000 lakh. The interiors should be well-designed, with plenty of bright lights, nice paintings, and encouraging posters.

In the case that the equipment rolls away, the halls should be lined with mirrors and have protective bumpers at the bottom.

Incentives for Members

Standard gym membership packages are no longer sufficient to keep gym customers for lengthy periods. You may also provide members with extra benefits and activities like weight reduction programs, physiotherapy, Zumba, aerobics, or specialized training.

Gym Business Promotion

People are always looking for something fresh, original, interesting, and reasonably priced fitness packages. You may advertise your business by launching various campaigns, including fitness activities, demo courses, attractive discounts, and personalized gifts (merchandise, bags, etc.)

Franchise for a gym

Look for a franchise if you are enthusiastic about this but are intimidated by the prospect of starting from scratch. From legal permissions to appropriate sites, most of the aforementioned measures will be taken care of by a reputable brand owner.

This can be easily done by taking a business loan online. Learn more about it here. Purchasing a gym franchise may also assist you in learning a great deal about the sector. With this information, you may open your gym and address the issues.

Maintenance & Personnel

You’ll need receptionists, cleaning workers, sales reps, housekeeping staff, special trainers, physiotherapists, and service technicians for any gym. The cost of personnel and gym equipment upkeep every month might range from approx 40,000 to 80,000 INR.

Plan according to your requirements. If you want to open a large gym with hundreds of members, you will undoubtedly require gym administration software. Individual members, their routines, progress, special needs, comments, and regularity may be tracked using the app.


A successful gym depends on the location, the initial investment in equipment, furnishings, space, trainers, and a long-term business concept. It is a viable business opportunity for people with prior knowledge in the field or those interested in acquiring a franchise.

This information should be enough to give you a good idea of what to expect. If finance is a problem, consider getting a business loan online or an MSME loan online from Ziploan for a hassle-free experience.

Working Capital Loan

Frequently Asked Questions

Is a gym a profitable business?

In the world of gym ownership, there are three surefire ways to boost profit.

How much does it cost to start a gym?

The startup costs for opening a gym business can vary massively depending on the size, location, facility, and the type of gym you plan on launching.

Why do gyms fail?

Other than being under-capitalized, the biggest reason we see for health club failure is lack of business know-how and lack of proper implementation of sales and marketing strategies.

What do gym owners struggle with?

A common occurrence when first opening up a gym that many owners struggle with is member attachment. Members tend to get very comfortable with certain trainers and don’t want to change. The issue arises because unfortunately, a growing fitness club sometimes needs to alternate between multiple trainers.

How do I open a small town gym?

1) Research is a must. Start by examining what your “competition” will be
2) Envision the Space. Unless you have large investors or a bank of cash saved for just this purpose, start small and evaluate the feasibility of leasing, buying, or building
3) Develop an Active Voice
4) Keep it Legit and Legal

Is owning a gym franchise profitable?

The bottom line is, gym franchises are profitable. Their business models are designed to generate a steady stream of income in the long run. But remember that gym franchises will not make you filthy rich.

Related Posts

Get Business Loan For Women