Start a boxing club by following these 10 steps:
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. 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.
Check out our How to Start a Business page.
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 are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
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
- 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.
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
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.
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your boxing club is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
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!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
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.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank, credit union, business-loan friendly banks, one with many brick-and-mortar locations, and more.
Open net-30 accounts
When it comes to establishing your business credit, net-30 vendors are considered the way to go. The term "net-30," which is popular among vendors, refers to a business credit arrangement where the company pays the vendor within 30 days of receiving goods or services.
Net-30 credit terms are often used for businesses that need to obtain inventory quickly but do not have the cash on hand.
Besides establishing business relationships with vendors, net-30 credit accounts get reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our guide on the best net-30 vendors so you can start building business credit now, so you never have to worry about cash flow in the future. Keep in mind that poor cash flow is the #1 reason businesses fail!
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment 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.
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.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
For information about local licenses and permits:
- Check with your town, city or county clerk’s office.
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
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.
Learn more about General Liability Insurance.
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.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
How to promote & market a boxing club
Promotion is very much a local matter, which is why it helps to know the other fitness opportunities in a community. Putting up flyers on bulletin boards in coffee shops, gyms, and even in community centers like the YMCA can be a good way to generate chat about your business. Consider giving free classes (with coupons for the next class) to young children, teenagers, and adults of every age.
You should also have a professional website that lists your information and advertises your classes. Structure workshops for different skill levels. Market different workshops to different types of people (e.g., parents, young women, etc.) to create a broader appeal. Let people know that boxing can round out people’s fighting style even if they already know a different sport, such as karate.
How to keep customers coming back
Your instructors should always be top-notch, and your facility should be well cared for. Workshops should never feel repetitive, and they should teach skills that can be carried outside the club. Boxing clubs may face a certain stigma in the community, making word-of-mouth particularly powerful.
Owners should also understand the primary motivations of why people are interested in boxing. This sport is a regulated form of violence, but it’s also a great way for people to test their self-defense skills and sharpen reaction times. Once you know more about the demographics in your club, you’ll know more about how to market.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use.
Recommended: Find the best phone system for your business; check out our review of the Best Business Phone Systems 2021.
Start A Boxing Club In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
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.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
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.
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Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a boxing club?
Experts will tell you to really understand the neighborhood before opening up a boxing club. You need know a good deal about the existing gyms, and whether or not the community needs are being served. You should understand your target client backwards and forwards regardless of what you’re offering. For example, if most people seem to be coming into the club to burn calories, this will determine your marketing strategy moving forward.
Your instructors should be able to provide basic First Aid on anyone injured (this includes CPR). Ceilings in the club should be high, and there should be lots of space on the floor. You may even want to consider joining a trade association for martial arts for additional support and credibility. Check with your state for any special restrictions or mandates for boxing clubs as well.
Also, don't shy away from the negative aspects of the sport. Address people's fears so they feel comfortable in trying your club. Some may feel that boxing is too brutal, so it’s a boxing club owner’s job to give potential customers perspective on how they can use the techniques to benefit their life.
How and when to build a team
You’ll likely want to build a team as soon as possible. You won’t necessarily need a lot of staff, but customers should know they have support and attention from the second they step into the club. Even the people who clean the bags will likely end up interacting with your customers on a regular basis. You should look for instructors who understand people as much as they understand how to stay light on their feet during complicated maneuvers.