How to Start a Personal Training Business

Start a personal training business by following these 10 steps:

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

We have put together this simple guide to starting your personal training business. 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 Personal Training Business 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 personal training business?

The costs involved with opening such a business are minimal. The certification you may require should cost no more than $2000, with some programs being as low as $500. You will need to purchase liability insurance, and this should cost no more than $200-$300 a year. Because you will be meeting with clients at areas that they choose, you don't have to worry about the pricey overhead of a separate building or its various utilities. In fact, your only other real cost will be any equipment that you purchase for your clients, and this will change based on specific clients and their specific needs. Plus, you should be building in equipment costs into your hourly rate (more on that later). Finally, factor in about $1000 for some initial advertising—this will be in the form of professional fliers, business cards, and possibly newspaper and radio spots. Never neglect the potential of running a website and having a social media presence,as both of which can be done with little to no cost and help increase your visibility.

What are the ongoing expenses for a personal training business?

Perhaps the greatest thing about a personal trainer business is your minimal ongoing expenses. Pretty much all you will regularly pay is the monthly contribution towards liability insurance (between $200-$300 a year), any fuel costs for traveling to clients, and the cost of the equipment that you buy. And, as mentioned above, there are different pricing structures that allow you to absorb these costs, effectively reducing your ongoing expenses to nothing more than the insurance.

Who is the target market?

This job involves a more diverse clientele than almost any other job out there. Generally, though, the best clients are younger clients. The main reason for this is that they are likely to schedule more sessions (leading to more money for you) and, if they like you and stay in the area, may be a regular source of income for you and your business for years to come. Such loyal clients can also help recruit more clients for you in the form of inviting their family and friends to contact you.

How does a personal training business make money?

Personal trainers make money by charging their clients for sessions. This is typically an hourly charge and the sessions are usually an hour. You may consider charging extra for travel to the client or offering specials where a client can pay a certain amount up front for a number of sessions.

How much can you charge customers?

As with many jobs, the exact amount you can charge your clients will vary based on the area that you are in and the full breadth of services that you offer. For instance, some trainers suggest charging a fixed $85 an hour, and they believe this cost is justified based on both your experience as well as your willingness to buy the clients whatever equipment they require (which can become an expensive proposition based on the client and the equipment). Others recommend either charging different amounts for different services (with the knowledge that some forms of training is more expensive and/or complex than others) or to negotiate a price via an open pricing model (which may let you factor in things like whether it will take 30 minutes to travel to a client and then 30 minutes to travel back, which eats up an hour you could spend training someone else).

How much profit can a personal training business make?

Obviously, the exact amount of profit that you can make comes from the intersection of your average hourly charge and the amount of customers that you have. The average amount that a personal trainer makes is about $50,000 a year, and a steady array of clients means that you could potentially double that amount and then some. Keep in mind that the previously-mentioned low overhead and low cost to start this business are also major factors in how much of this money goes directly to you rather than to the costs of your business.

How can you make your business more profitable?

As your business picks up steam, don't hesitate to raise prices. Even a modest increase in your hourly charge can contribute greatly to your bottom line. Consider taking on additional roles for your clients, such as selling them valuable supplements or specialized equipment: this helps establish you as their “one-stop-shop” for fitness. Finally, consider creating an automated payment system, as it helps establish your desire to work with regular clients and makes payment more convenient for those who are suitably committed.

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 personal training business 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 personal trainer 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:

• 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, personal trainer 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 training 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.

Professional Liability Insurance

This is critical for any personal trainer. AFPA has examined many insurance organizations and has compiled a listing of those organizations that offer the reasonable rates with excellent coverage. Professional Liability Insurance organizations are listed here.

Certificate of Occupancy

A personal training business can be run out of a gym or any large space (typically indoors). 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 space:
• 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 personal training studio space.
• 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 space:
• 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 personal training business will be in compliance and able to obtain a CO.

Services Contract

Also be sure to include a services contract for each client. This contract should specify how you will help clients reach their health and fitness goals and the price of training.

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?

Obviously, this business is great for those who are already fit and have worked hard to create an exercise and health regimen that works, as they can use their personal experience to help educate others. It's good for someone who is a “people person,” as the entire job revolves around regular interaction with a diverse clientele. It is also good for someone who is a natural leader—just as a good manager or coach helps people to visualize and then actualize success, a good personal trainer helps clients visualize a healthier self and provides a pathway to achieving that goal.

What happens during a typical day at a personal training business?

The daily activities of a personal trainer are very straightforward, though they may vary based on the client’s needs. The vast majority of any given day involves traveling to where clients are and then conducting sessions (typically one hour sessions). This means, potentially, a lot of driving and using phone calls or text messages to coordinate with the different clients. The actual sessions can have very diverse content—some sessions may involve helping elderly clients recover from surgery using pool exercises. Other sessions may involve helping younger clients achieve their coveted beach body through a variety of cardio- and strength-training exercises.

What are some skills and experiences that will help you build a successful personal training business?

While a formal education is not required, having a personal trainer certification may help you secure more clients and is likely a requirement to become a personal trainer in your area. Personal experience working in anything related to the fitness industry can also be a major benefit as you are getting started. As mentioned earlier, special exercise and diet regimens you have developed for yourself in the past can help you customize these things for your clients, and being a healthy, visible member of your community will help your community look to you as an authority on matters of fitness and health.

What is the growth potential for a personal training business?

The growth potential for a personal trainer business is very good, as the field is expected to grow at a steady rate for most of the next decade. It helps that more businesses and governmental institutions are encouraging healthier lifestyles and offering additional benefits to employees who work towards this goal.