How to Start a Boxing Club

Start a boxing club by following these 10 steps:

1. Plan your Boxing Club
2. Form your Boxing Club into a Legal Entity
3. Register your Boxing Club for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Boxing Club
6. Get the Necessary Permits & Licenses for your Boxing Club
7. Get Boxing Club Insurance
8. Define your Boxing Club Brand
9. Create your Boxing Club Website
10. Set up your Business Phone System

We have put together this simple guide to starting your boxing club. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Boxing Club Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a boxing club?

This is highly dependent on the area you choose to open in. Boxing clubs will need gym space, gloves, and at least two boxing rings so people aren't constantly waiting for their match. Depending on the quality of your equipment, a ring can cost up to $5,000 or more and a single pair of gloves can be $100 (generally you'll need at least 20 pairs.) You’ll also need a variety of workout equipment, from weights to jump ropes to punching bags to headgear.

You may end up having to allocate much of your budget to insurance for both customers and employees. Lawsuits with gyms are common simply due to the nature of the sport.

What are the ongoing expenses for a boxing club?

Much of the your expense will come at the beginning, but should also factor in the following ongoing costs:

• Equipment replacement/maintenance
• Insurance
• Advertising costs
• Administrative supplies
• Employee salaries

Who is the target market?

Clients should have a healthy respect for the art of defending oneself. You’re not looking for people who want to savagely hurt their opponents, but you are looking for people who want their bodies to be stronger, leaner, and healthier.

How does a boxing club make money?

Boxing clubs make money by charging people for classes or for a general membership where they can use the facilities and equipment. The prices you set have to take into account not just the skill level of the trainer, but also the price of the equipment used and the rental costs of the space.

How much can you charge customers?

This depends on the area you choose to open in. An in-demand, underserved location can likely charge up to $20 per class, and hundreds of dollars for a workshop. Other areas may only be able to charge closer to half that price. Research what similar classes in your area cost as a basis for comparison.

How much profit can a boxing club make?

Between membership fees and boxing lessons, boxing clubs can make a good deal of profit. If you have 50 people sign up for memberships at $30 a month (even without classes), that’s $1,500 a month minus the rental costs.

How can you make your business more profitable?

Boxing clubs often sell boxing equipment or accessories with a healthy profit margin, which is a great way to make a little extra cash. People may choose to buy at your club exclusively over somewhere else (e.g., online) because the staff can make personal recommendations as to the best equipment for each type of fighter.

You may also want to consider offering mobile lessons, where you may go to a community center or a school to give beginner boxing lessons.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your boxing club is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate a boxing club business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

Release of Liability

To avoid liability and potential lawsuits, boxing businesses should have their clients sign waivers from all sort of injuries.  Here is an example of one such form.

Recommended: Rocket Lawyer makes it easy to create a professional release of liability form for your boxing club business when you sign up for their premium membership. For $39.95 per month, members receive access to hundreds of legal agreements and on call attorneys to get complimentary legal advice.

Certificate of Occupancy

A boxing club business is generally run out of a gym. Businesses operating out of a physical location typically require a  Certificate of Occupancy (CO).  A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a location:
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a boxing club business.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening,  it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

• If you plan to purchase or build a location:
• You will be responsible for obtaining a valid CO from a local government authority.

Review all building codes and zoning requirements for your business’ location to ensure your boxing club business will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

This business is for people who eat, sleep, and breathe boxing. However, any potential owner should also have a good idea of how to organize classes, teach, and enforce safety standards in their boxing club.

What happens during a typical day at a boxing club?

Boxing club owners may face the following agenda on any given day:

• Teaching classes
• Creating schedules
• Equipment inspections
• Advertising the business
• Administrative duties

What are some skills and experiences that will help you build a successful boxing club?

Owners should have a certain amount of natural boxing talent, but they should also have people skills to connect with customers. Owners should also be creative when it comes to designing classes for both kids and adults at varying skill levels. There is an art in taking the basic moves each group needs to learn and turning them into a fun class.

What is the growth potential for a boxing club?

The growth potential for a boxing club business is there. No matter how far the economy dips down, boxing clubs still have the potential to thrive. Not only is it an outlet for many to let out their stress, but it also helps participants feel empowered.