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 step guide to starting your gymnastics classes business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
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 long it will take you to break even?
- 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 gymnastics classes business?
This business requires the use of a local gymnasium and gymnastics equipment. Though it is possible for the business to open its own gym, it is much cheaper to rent a local gym for the hours in which lessons are conducted. The business should also have a website to boot. Plan on spending at least $500 to build a website. Renting space at a local gym including gymnastics equipment will likely run several hundred dollars to several thousand dollars per month at a bare minimum. The exact cost depends on the level of demand for the space as well as the number of lessons you conduct.
What are the ongoing expenses for a gymnastics classes business?
The business requires a gym, gymnastics equipment, a website, insurance, instructors, marketing and utilities. Budget a couple hundred dollars per month for utilities and a high-speed internet connection. The gym itself will likely cost several hundred dollars per month to rent at a bare minimum. Budget at least $100 to $200 per month for gymnastics equipment. Website maintenance and marketing will require another couple hundred dollars per month. Plan on paying instructors between $15 and $30 per hour. If you add an accountant or marketing expert, these professionals will command a yearly salary in the range of $30,000 to $50,000.
Who is the target market?
Though people of all ages take gymnastics lessons, the vast majority of these individuals are young. Target your services to families with kids age 18 and under. Ideally, parents with multiple children will sign up their kids for gymnastics lessons as a group.
How does a gymnastics classes business make money?
Money is made by charging clients for gymnastics lessons. These instructors typically charge by the half hour or hour for lessons.
How much can you charge customers?
In general, customers can be charged between $25 and $50 per hour of gymnastics instruction.
How much profit can a gymnastics classes business make?
This type of business tends to make between $10,000 and $100,000 per year. The exact level of profit will hinge on the demand for your services, the location of your business and the number of competitors offering similar services. Market your business in a prudent manner, produce successful gymnasts and your business will ramp up, creating the possibility for a six figure yearly profit.
How can you make your business more profitable?
Consider offering a gymnastics camp in which your instructors train participants across an entire week or longer. You can also make money by selling instructional DVDs. Sell your old equipment when upgrading to newer versions. If you own you a gymnastics facility and do not have enough customers to fill it during business hours, consider renting out your space to others.
What will you name your business?
Choosing the right name is very important. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.
After registering a domain name, consider setting up a professional email account (@yourcompany.com). Google's G Suite offers a business email service that comes with other useful tools, including word processing, spreadsheets, and more. Try it for free
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC prevents you from being personally liable if your gymnastics classes business is sued. There are many business structures to choose from including: Corporations, LLC's, and DBA's.
You should also consider using a registered agent service to help protect your privacy and stay compliant.
For most small businesses forming an LLC is a great option, but if you still want to weigh all your options check our our article, What Structure Should I Choose for My Business?
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?.
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
- 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.
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 gymnastics lessons 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, gymnastics businesses should have their clients sign a release of liability. Here is an example of one such form.
Recommended: Rocket Lawyer makes it easy to create a professional release of liability form for your gymnastics 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 gymnastics classes business is generally run out of a gymnasium. 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 gymnastics lessons 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 gymnastics lessons business will be in compliance and able to obtain a CO.
Gymnastics lessons businesses should require clients to sign a services agreement before starting a new project. This agreement should clarify client expectations and minimize risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership. Here is an example of one such services agreement.
STEP 7: Get Business Insurance
Insurance is highly recommended for all business owners. If you hire employees, workers compensation insurance may be a legal requirement in your state.
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.
How to promote & market a gymnastics classes business
Use the web to promote your gymnastics classes business. Establish a website and social media accounts. Produce a steady stream of content that is optimized for search engines so locals can find your website with ease. Be sure to highlight the physical benefits of gymnastics to motivate parents to sign their children up for your classes. Advertise on local radio, TV, magazines, and newspapers. Key in on advertising in specialty publications popular in your area such as health or sports magazines. Place flyers by libraries, gyms, shopping spaces, and other areas where youngsters congregate. It will also help to sponsor local gymnastics events. Such a sponsorship will enhance your company's brand awareness.
Recommended: Get started with local advertising for your business with a $300 credit from Yelp.
How to keep customers coming back
The best way to attract and retain customers is to provide high-quality instruction, flawless gymnastics equipment and a comfortable practice space. Consider offering a price discount to new customers. This low price will convert those who are on the fence into paying customers. Treat each student with respect. Do not yell at your students. Provide constructive criticism, key in on detailed instruction and you just might produce a successful gymnast who brings attention to your gymnastics classes business.
STEP 9: Establish your Web Presence
A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.
Start A Gymnastics Classes Business In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
This business is ideal for an individual who would like to make a difference in his community. Open a gymnastics classes business and you will have the opportunity to shape young people in a meaningful manner. Your gymnastics classes just might turn a couch potato into a superstar gymnast. If you would like to help people get in shape, have fun and spend time with others, you should open a gymnastics classes business. Ideally, you will enjoy working with kids and have motivational skills as this line of work requires extensive interaction with youngsters.
What happens during a typical day at a gymnastics classes business?
This business is centered on teaching youngsters the nuances of gymnastics exercises. The day is spent refining students' gymnastics techniques, guiding students through practice performances and marketing the business. The business owner might also perform accounting duties, answer phone calls and update the company's social media pages to boot.
What are some skills and experiences that will help you build a successful gymnastics classes business?
The business owner should have a background in gymnastics. It will help if the instructor(s) has competed in gymnastics in the past. The most successful gymnastics classes business owners also have business savvy. The manner in which this business is marketed matters a great deal. Even the details of the agreement for the use of a local gym can have a monumental impact on the success of the business.
What is the growth potential for a gymnastics classes business?
Though gymnastics is not the most popular sport, parents are certainly on the prowl for a means of getting their kids off the couch and active with athletics. Locate your gymnastics classes business in an area that is rife with families, market it properly and it will gradually grow. It is possible to expand the business to the point that you hire additional instructors for the facility. Some such businesses grow to the point that they expand to other cities and even entire regions.
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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.
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 gymnastics classes business?
If possible, secure your own gym and gymnastics equipment from the get-go so you don't have to worry about sharing a rented gym with others. The availability of a private gym goes a long way in convincing prospective customers to sign up for lessons. If you have a background in gymnastics, be sure to tout it when attempting to persuade prospects to sign up for lessons. If you are short on money at the business's launch, start out with used gymnastics equipment and gradually replace it with new items as time progresses and revenue rolls in.
How and when to build a team
If you have a background in gymnastics, you can teach the lessons on your own for the first couple of months or even the first year. However, as the customer base expands, it will be necessary to add gymnastics instructors, a marketing expert and possibly even an accountant.