The turf is always greener in another sports performance facility, right? Many strength sport business owners seem to think so. That, coupled with egos, are why you see a new sports performance facility or organized sports club popping up every time you blink these days.

Gyms and sports clubs aren't huge moneymakers for a vast majority of entrepreneurs. So before you open that bay door to the public or go in debt buying state of the art equipment, ask yourself why you're opening your own facility. Not sure? Don't fret: I've put together some questions you to consider before you pull that trigger.

Common Questions

Whether you're opening up a gym, opening a boutique studio, or forming your own organized sports club, there are general questions you should be able to answer before signing on that dotted line to start your new venture.

• Why are you opening your facility? This is the most important question you need to ask yourself before taking the plunge. Sit back and be honest with yourself. Do you want to improve lives? Make copious amounts of cash? Do it to spite your former boss? No judgement from me on what that reason is, but just be honest with yourself about it.
• What makes you different from your competitors? This coincides with the previous question. What are you going to offer the community with your facility or sports club? Maybe you'll have showers, 24-hour access, or a children's program. Perhaps you'll offer classes at times your competitors don't or have coaches certified in particular fields.
• Do you have professionals helping you? Opening a gym or forming an organized club is going to be hard work and full of business details you may not even think about. That's why it would behoove you to get a team of professionals to help you on your journey. An attorney, an accountant, and an insurance professional are must-haves, but you could enlist the help of a marketing consultant and web designer as well.
• Do you have legal paperwork drafted? I may be biased because I'm an attorney*, but this is absolutely critical for a new venture, even if it is just a weightlifting club you're starting for fun. If you're making money, or plan on it, do yourself a favor and have an experienced attorney draft up your legal paperwork. This includes client contracts and liability waivers as well. Remember: it's much easier to start off on the right foot than to have to go back and fix it.
• How will you be organizing your venture? Will it be a corporation, a partnership, a limited liability company?  This has a substantial impact on taxes so make sure to seek the advice of an accountant and an attorney with any questions.
• Do you have insurance? There are a plethora of liability issues that arise when you own or operate within a sports program. Get liability, property, and/or business insurance for your operation. In my (non-legal) opinion, it's always best to over-insure rather than underinsure. Things never seem like they'll wrong...until they do. Prepare for it.
• What is your business plan? Whether you're planning to stay local or go global with your venture, you need to have short-term and long-term business plans. Think about each fiscal year's objectives and how you plan on reaching them. You should have goals for each day, week, month, and quarter.
• How will you be funding your venture? Do you have cash saved up? Are you taking out a loan? Partnering with investors? Make sure you pick the option that will be best for you financially in the long run.
• How will you collect dues? Pick a date for monthly membership and yearly membership dues (if applicable) and stick with it. Determine if you wish to handle dues online through your website, via an invoice system, or just by verbal reminder. Set yourself up to receive cash, check, and card. Automatic drafts are a gym's life-saver, but make sure you have the proper paperwork in place to allow for it. Keep a ledger of the transactions.
• Will this be your primary source of income? If it will be, then make sure you have some hefty savings to lean on when you get started if you're going to be running the gym or the club full-time. If not, then count yourself lucky. While the sink or swim approach to life is helpful, it can be overwhelming if you own a small business. There is increased pressure on you, not to mention your family and friends, so make sure you're at peace with that challenge.
• What security protocols do you have in place? Security cameras and appropriate lighting are what comes to mind, but security protocols reach beyond that. Liability waivers, standard operating procedures, and appropriate background checks on employees and trainers will help safeguard you, your facility, and your client.
• Who will clean the facility? A clean facility is crucial to client retention and alleviates the possibility of safety hazards. Are you going to hire a company, or have a client do it in exchange for membership?

Gym Specific Questions

Opening a gym may be your dream, but that dream can quickly turn into a nightmare if you don't go into the venture with your eyes wide open. You may be opening a gym to help people, but you're also about to start a business. Owning a business is far from just rainbows and PRs. While rewarding, it can also weigh heavy on your sanity and your finances. Make sure you've thought about the following questions and determine if owning and opening a gym is right for you.

• Will you have employees? This sounds like a silly question, but it's something you need to think about. Will there be floor staff, front desk workers, a clean-up crew, sales people, or managers?

If you have a staff of trainers, are they going to be independent contractors or employees? That classification is important for you financially as it helps determine taxes and 401K allocations.

• Do you have a location? Will your facility be located inside an existing structure (gym, warehouse, school), or do you plan on building your own location? Building a facility will require additional start-up costs and permits, so make sure it's a location you're going to be happy with.
• Have you done demographic research? Just because you like a certain area of town doesn't mean there's a need for your gym there. If you want to open a $250/month gym up in the middle of nowhere, then you better make sure there are professionals or trust fund babies nearby to keep your doors open. Can your town support multiple gyms of the same type in a three-mile radius? Do thorough research before you pick a location and a facility specialty (if you're going to have one).
• How will you get clients? You need to have a plan to get clients to sign up long before you open your doors. While it is nice to bring clients or absorb clients from an existing facility, it doesn’t always happen. Think about promotions and partnerships you can create with local businesses and schools.  
• How will you retain clients? Getting clients isn't the end of your battle. Once clients are in the door, you will need to keep them there. Client surveys, monthly contests, client appreciation events, referral programs, and using client names often are all ways you can keep your members happy, healthy, and honored to remain a part of your gym.
• What's your budget for expenses? Some things gym owners may not think about when they open their doors is how much they are going to have on spend on "little" things. Little things like paper towels, toilet paper, laundry expenses for washing and drying towels, printing costs for contracts and flyers, etc. all add up quickly. Another thing to consider is your electricity bill; some states have laws dictating what temperature a gym must be at all times regardless of the weather outside.

Organized Club Specific Questions

Forming an official Olympic weightlifting or powerlifting club under a national office takes much more than just filling out a piece out a piece of paper for the organization. Sure, that's all that is actually required from them, but there are many more variables to consider before taking the plunge.

• What does your organization require for formation? Some organizations require you to have certified coaches from that organization before you can apply for club formation. Background checks and insurance may also be required.
• Do you have a written operating agreement? Yep. You read that right. You never know when your club will grow. If you are starting the club with other people, then it's best to lay everything out on paper in case something goes sour or someone wants to leave.
• How will you raise money throughout the year? You may not have many athletes to bring in a steady flow of cash at first, but if you have the opportunity, you can host meets, certifications, and seminars to bring in more money throughout the year.
• How will you get athletes? The growing trend is to recruit from primary and secondary schools as well as from functional fitness facilities. Reach out to coaches of other sports and don't forget that sponsoring events or partnering with other facilities or teams can go a long way. Ensure that you are active on social media, and never underestimate the power of introducing yourself around town.
• Where will you be located? Similar to the gym question, you need to ask yourself where you are going to be housed. Do you want to be affiliated with a functional fitness facility, a medical complex, or a school? Think of your location as an extension of the feeder principle in the question above. It matters just as much.

The Bottom Line

Don't let the lure of opening your own gym or sports club cloud your judgement. Do your research, be able to answer these questions, and grow some thick skin. It's going to be tough, but if you plan ahead and stay smart, you can make it in this crazy fitness industry.

* Nothing in this article should be construed as legal advice. No client-attorney relationship is established. Always consult with a licensed professional in your state.