How to Start a Rock Climbing Gym

An indoor rock climbing gym provides members and visitors a chance to exercise while developing their rock climbing skills. There are “runs” that are made for beginners, and very difficult runs made for advanced rock climbers.

Learn how to start your own Rock Climbing Gym and whether it is the right fit for you.

Ready to form your LLC? Check out the Top LLC Formation Services.

Start a rock climbing gym by following these 10 steps:

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

We have put together this simple guide to starting your rock climbing gym. 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:

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 Rock Climbing Gym 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.

Want some help naming your rock climbing gym?

Business Name Generator

What are the costs involved in opening a rock climbing gym?

You will need to lease a very large space with extremely high ceilings. A typical rock climbing run can go up at least three stories. As such, most rock climbing gyms are located in industrial areas.

If you cannot find a space with sufficiently high ceilings, you will need to pay for the demolition of the structure between the floors and put in stronger support structures to allow for enough space for the rock climbing walls.

You will also need to make sure the building has very strong support from above for safety ropes to catch any customers if they happen to fall. You will buy need to purchase custom-made hand grips ($5 to $15 a piece) that can securely mount to the rock climbing walls. These are made from very durable plastic and are shaped in different ways to mimic the types of surfaces and crevices one might encounter when trying to rock climb out in the real world.

Typical startup budgets look like this:

  • Formation of an LLC and getting business permits - $1,000
  • Paying the lease deposit on a 10,000 square-foot facility - $25,000
  • Getting building permits for the reconstruction - $2,500
  • Remodeling expenses - $100,000 to $150,000
  • Signage - $5,000
  • Furniture and Fixtures - $30,000 (this includes showers, restrooms, and the wait areas)

What are the ongoing expenses for a rock climbing gym?

You will have to maintain the equipment in perfect condition and pay for the replacement of anything that is worn out or in bad repair. Depending on the size of your gym, plan to budget around $500 to $1,000 per month for this.

Utilities will be ongoing. For a 10,000 square foot facility, it is about $1,000 to $2,000 per month to have lighting and heating or air-conditioning as needed. Depending on the locale, this utility expense may be much higher.

You will also need phone service, a decent Internet connection, and a web hosting service that together might cost about $150.

Your marketing expenses will probably be modest, except you may have the expenses of an online marketing campaign. Allow about $200 to $1,000 per month for marketing expenses.

Your staff, trainers and safety personnel will also need to be compensated according to their level of experience.

Who is the target market?

Because this is a specialty area, the best customers are rock climbing enthusiasts and people who are curious about this sport and want to learn more about it.

How does a rock climbing gym make money?

Consumers will typically pay for a gym membership, which could be on a monthly or annual basis, or they might pay a fixed rate per visit.

How much can you charge customers?

Daily use fees can range anywhere from $10 to $20 per day, with monthly fees typically around $50 to $75, and annual fees anywhere between $350 to $550 per year.

How much profit can a rock climbing gym make?

The key to making profits is to have enough paying members and daily-use customers to make more than the costs of operations.

A successful operation, depending on its size, will have up to 1,000 members and earn up to $650,000 in gross revenues per year. After facility expenses and paying employees’ salaries, the owner of such a business could earn around $250,000 in gross profits before taxes.

How can you make your business more profitable?

You can also add a shop in your gym to sell equipment and related accessories used for rock climbing. Another great idea is to have food and beverage service for those that want to relax a bit after using the gym. You can sell tours to local real-world rock-climbing experiences as well in order to make extra money.

Want a more guided approach? Access TRUiC's free Small Business Startup Guide - a step-by-step course for turning your business idea into reality. Get started today!

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 rock climbing gym is sued.

Form Your LLC

Read our Guide to Form Your Own LLC

Have a Professional Service Form your LLC for You

Two such reliable services:

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.

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 through the IRS website. If you would like to learn more about EINs, read our article, What is an EIN?

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.

Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.

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.

Recommended: Apply for an easy approval business credit card from BILL and build your business credit quickly.

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 rock climbing business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits

For information about local 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.

Release of Liability

Liability waivers are essential since consumers will be in high risk environments, climbing at considerable heights and partaking in intense physical exertion. For this reason, your gym should require all visitors wear protective gear and also follow a set of safety rules to reduce the risk of accidents. An example of facility rules can be found here.

Though climbing facility waivers should be custom-made, sports center waivers can serve as helpful examples.

Recommended: Rocket Lawyer makes it easy to create a professional release of liability form for your 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.

Music Licensing

In order to play music in a rock climbing gym, permission must be acquired from the composer or license holder. Typically, it is possible to obtain a “blanket” license allowing a businesses to play music owned by a large catalog of artists and recording studios. Such licenses can be obtained from Performance Rights Organizations, such as ASCAP and BMI.

Certificate of Occupancy

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 an Indoor Rock Climbing 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 you business’ location to ensure your Indoor Rock Climbing 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.

FInd out what types of insurance your Rock Climbing Gym needs and how much it will cost you by reading our guide Business Insurance for Rock Climbing Gym.

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.

Recommended: Get a logo using Truic's free logo Generator no email or sign up required, or use a Premium Logo Maker.

If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.

How to promote & market a rock climbing gym

Making affiliations with local gyms to give their members a free day-pass can drum up new business. You can also offer students at nearby high schools and colleges student discounts. The biggest rock-climbing gyms advertise in rock climbing magazines, although this is very expensive.

Most of your new customers will come through word-of-mouth, so encouraging existing members to bring in new ones by giving them discounts or a free membership extension is a good idea. For example, if a current member brings in a new member who signs up for an annual contract, you could give them one free month’s membership for doing this.

Sponsoring local contests for rock climbing events both in the gym and out in the real world will also help the gym gain more public attention.

Having a great website that is marketed online using good search engine optimization (SEO) is important as well.

Finally, placing flyers or other ads at related business and giving a commission to those that bring new customers is a good way to build up the clientele for a new facility.

How to keep customers coming back

Besides the marketing methods detailed above, the best thing is to offer a discount to existing members for renewing their membership for longer periods.

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.

Recommended: Get started today using our recommended website builder or check out our review of the Best Website Builders.

Other popular website builders are: WordPress, WIX, Weebly, Squarespace, and Shopify.

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. Check out our review of the Best Business Phone Systems 2023 to find the best phone service for your small business.

Recommended Business Phone Service: Phone.com

Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.

Is this Business Right For You?

This is a recreational gym where people come to learn how to rock climb. These gyms typically offer three types of climbing:

  1. Top-rope climbing – Where you are always protected by a safety rope in case you fall.
  2. Bouldering – Where you climb short distances without the aid of ropes.
  3. Lead Climbing – Where you go first to set the supports in place for those that follow you from below.

Most owners of rock climbing gyms are also avid rock climbers. However, anyone who loves exercise and the thrill of a good challenge could succeed in this business.

Rock climbing gym owners also need to be sensitive to any possible safety concerns to ensure that their visitors have a fun and risk-free experience.

Want to know if you are cut out to be an entrepreneur?

Take our Entrepreneurship Quiz to find out!

Entrepreneurship Quiz

What happens during a typical day at a rock climbing gym?

Owning a rock-climbing gym is like owning a bowling alley or a health & fitness center. Your daily duties will be to make sure the safety equipment is in good condition, the place is clean, and your support staff is always ready to help gym members and visitors.

What are some skills and experiences that will help you build a successful rock climbing gym?

Being a skilled rock climber is helpful. Also having a knack for teaching this sport and encouraging others, regardless of their skill level, is important.

Creativity is also an asset, as you will need to come up with different runs to meet the various skill levels of all your gym members, from beginner to advanced. This will make sure everyone who comes to your gym will have a rewarding experience.

What is the growth potential for a rock climbing gym?

Each location will attract a certain number of customers that has a tendency to level out over time. The way to expand is to create new locations. College towns and places with lots of energetic young people are good locations to consider for expanding operations.

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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:

  • Funding
  • Events
  • Guides
  • Support

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.

How and when to build a team

Add staff and consider adding instructors if you also want to offer one-on-one or group training programs.

Read our rock climbing gym hiring guide to learn about the different roles a rock climbing gym typically fills, how much to budget for employee salaries, and how to build your team exactly how you want it.

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