Which Gym Business Model Is Best for Your Fitness Business?

Before you decide to start a gym business, it's important to first consider which type of gym business model will be right for your fitness goals and objectives.

James Plata
April 6, 2022
Which Gym Business Model Is Best for Your Fitness Business?
Before you decide to start a gym business, it's important to first consider which type of gym business model will be right for your fitness goals and objectives.

Being the owner of your fitness studio is both exciting and worrisome. You get to be the boss and make the rules inside the confines of your gym. Dozens of decisions must be taken, including whether to rent or buy a facility and what type of liability insurance to obtain, among other things. Which gym business plan is best for your fitness organization is determined by several factors. This post will show you how to establish your own fitness business using a variety of gym business concepts.

Photographer: Craig Lovelidge | Source: Unsplash

What Business Model Would You Use to Describe a Gym?

A gym uses this business plan with a membership-based business model. The vast majority of new members expect when they first join a gym. You can use the facility without restriction for a monthly or annual fee.

It's a good thing it's been through the wringer. As a result, it's a tried and true strategy. Your members understand exactly what they are getting for their money. Businesses may rely on consistent and predictable income to help them manage their cash flow.

This business plan also can produce a consistent and predictable stream of money. Reduces the risk of wildly fluctuating cash flow and allows for more precise financial forecasting.

What is the Most Profitable Type of Gym?

It was once thought of as a passing trend, but it has since proven that it is here to stay. There has been an increase in people signing up for the training program each year.

CrossFit Gyms are the most profitable type of gym in the United States as of November 2020, accounting for 69% of gym shares.

Running a CrossFit facility includes salaries, utility costs, liability insurance, and marketing costs. An hourly rate of $15 to $25 is typical for a CrossFit coach.

Having a CrossFit gym isn't a surefire path to financial freedom, but it can be a great way to cash in on a growing fitness craze.

Which Successful Gyms is the Best for You?

24-Hour Fitness

Cost of membership: $39.99 – $49.99 per month + $49.99 annual fee; month-to-month or 12-month contracts available (where the monthly fee is slightly less)

24-Hour Fitness has it all, including a workout app that provides workout plans, so you don't have to program your own. It's a 24-hour facility with plenty of floor space and equipment, offers group fitness classes and personal training, and even has a workout app that provides workout plans, so you don't have to program your own.

In 2017, 24 Hour Fitness made $1.44 billion in revenue, up from $1.42 billion in 2016. According to Club Industry, the company had 433 clubs in 2017. 24 Hour Fitness launched a behavior change program and research study in 2018 to better understand motivation psychology. The 28-day StepUp program was developed in collaboration with the Behavior Change for Good Initiative at the University of Pennsylvania (BCGI).

What Are the Things to Consider in Choosing a Gym?

In addition to the gym's equipment and machines, you'll want to consider other factors that will determine whether or not you enjoy your workout, such as:

  • Gym hours
  • Options for training
  • Location
  • The cleanliness of the gym
  • Staff
  • Member benefits

Commercial Gym versus Private Gym: What’s the Difference?

When most of us think of going to the gym, we picture a "Commercial Gym." They're usually big buildings with many equipment, group fitness rooms, pools, basketball courts, and other amenities. In fact, for many people, this is the main attraction.

The following are the key advantages of this option:

  • There are a number of them.
  • Membership is open to everybody.
  • There is a lot of training equipment available.
  • Provides a variety of classes
  • They are available around the clock.
  • The cost of basic membership has been reduced.

Any fitness facility with restricted membership or access is referred to as a “private gym.” Most private gyms charge a membership fee or require some other qualification, and the general public is not permitted to use the facility. The private gym may have much of the same equipment as any other fitness center or gym, but the number of users may be limited, resulting in less wait time and less risk of equipment damage.

Unlike commercial gyms, which can be found almost anywhere, private studio gyms are few and far between. The following are the main benefits of this option:

Fewer members

Coaches with expertise


Personal Training Studio versus Gym: In What Aspects Did They Differ?

Working with a personal trainer in a gym is not the same as working with one in a personal training studio. Personal training studios can range from small rented spaces to working with a personal trainer in the comfort of their own home. Keep in mind that personal training does not require all of the amenities found in a gym. Here are some of the advantages:


If you don't want to be on display or around other gym members, a private studio will be ideal for you.

There is no need to wait.

You won't have to wait for equipment or space to open up because you're training in a private studio rather than a large gym.


With nothing else to distract you, you can fully concentrate on your workout. You can learn proper form faster/easier with personal attention in this setting.

There are some advantages to working out at a gym rather than a personal training studio. If you're already a gym member, you might be able to negotiate a deal with one of their trainers. The personal trainer can use a variety of machines to help you get in shape, and once you learn how to use the machine, you can do the same workout on your own to stay in shape. Working with a personal trainer at a gym is ideal if you prefer to be surrounded by people. Here are what to expect from a gym:


Training sessions and classes are usually less expensive. Bigger gyms have more trainers, members, classes, and space than smaller gyms. Members usually benefit from lower prices as a result of this.

A large amount of equipment

A big box gym is ideal if you like to use a variety of machines and cardio equipment. You may or may not have to wait for some equipment, depending on the size of the gym and the time you visit.

Gym’s Atmosphere

You might enjoy the vibe of a large gym if you want to meet new people, pick up a new girlfriend, etc.

What Are the Things to Do to Become a Successful Gym Owner?

It's critical to remember that developing new talents requires time and effort. It is crucial to continue evolving, and it is acceptable if you do not do everything right the first time. Mastering these skills, on the other hand, will assist you in expanding your business and attracting new gym members:

  • Consistency.
  • Capabilities for leadership
  • Adaptability is the ability to change.
  • Personal trainers should be on the list.
  • Include smoothies and healthful foods in your diet.
  • Set up, weight-loss support groups.
  • Provide a wide range of exercise classes.
  • Utilize fitness management software.

How Can You Make Your Fitness Business More Profitable?

If you want to share your passion for fitness with the world by opening a new gym, you'll need to figure out how to make money from a gym.

Here are some general recommendations for building a profitable fitness business:

  • Set aside time for yourself.
  • Streamline your fitness company.
  • Don't betray yourself by undervaluing yourself.
  • The significance of consistent branding cannot be overstated.
  • Examine your competitors.
  • Make use of your creativity (Be Creative)
  • It is critical to provide excellent customer service.

Final Word

The best gym company idea might have a range of different elements. One aspect, however, remains constant: it fits the needs of your target audience. Members place a premium on usability, adaptability, and a pleasant purchasing experience. Selecting the best business model for your organization can help it grow and deliver greater value to its members.

No items found.
James Plata

James Plata is the CX Operations Manager at PushPress, a fitness-nut and hoarder of all gadgets. He brings 10+ years of experience in startup tech and fitness to help gym owners rebel against useless and overpriced software.

The gymOS Podcast

Helping gym owners build better businesses, one episode at a time.
Listen Now

Ready to scale your fitness business?

Try our hassle-free Gym Management Software loved by thousand of successful Gym Owners.
Get started for $0/month
“PushPress is the reason my gym became profitable.”
—Joe M. Gym Owner

Follow along and build a better gym with us

Get actionable strategies and ideas to help you grow your gym and manage it successfully, in your inbox every week!

No Spam. Ever. Unsubscribe anytime.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.