Occasionally we run guest posts that we think will be of interest to the community. A school owner contacted us with this post — and if you’ve ever thought of opening a gym, we think you’ll find this fascinating. Plus, the author will answer your questions! Let’s let the professor make introductions:
Have you ever wondered what the underlying realities of being a school owner are? Whether you one day aspire to open your own school or just want to have a better understanding of the day-to-day costs of a gym, I hope this article is eye opening.
I am the owner of a gym that has been open less than 5 years. These are all 100% real numbers but I will redact any personal information to protect the innocent. Just call me … Professor X.
| COSTS | |
| Drafting Fees 3% of total gross credit cards | $390.00 |
| Cost of Goods Sold | $960.00 |
| Salaries and wages | $1,100.00 |
| Rent | $2,900.00 |
| TICAM | $837.00 |
| Utilities | $343.33 |
| Cleaning Supplies | $120.00 |
| Insurance | $95.41 |
| Telephone/Internet/Answering Service | $199.00 |
| Office supplies | $50.00 |
| Marketing | $500.00 |
| Affiliation | $200.00 |
| Loan repayment | $1,493.94 |
| TOTAL COSTS | $9,188.68 |
| Revenue | |
| Recurring Monthly Payments | $11,657.33 |
| Sponsors | $162.60 |
| Privates | $880.00 |
| Annual Member Cashouts | $510.66 |
Average Revenue/member = $129.17
Monthly Average Profit = $4021.91
So there it is: the sum total of your average BJJ school on one page. There will be some variance, but the cost of rent for the space, the amount of monthly debt obligations (loan repayment), and the school marketing budget are the big three where you will see significant variance.
Got questions? Ask away!
How many hours a month are you working for this “profit”? Is the salary paid to the owner, or to other instructors? Are you paying yourself, or do you have a day job in order to make this work?