How to Start a Gym in Pakistan

The market for gyms & health clubs in Pakistan has been developing steadily over the last decade and a mushroom growth of gyms and clubs is being observed in all the cities. But still a good potential exists for quality health clubs because Pakistan is emerging as a newly health conscious society. A health and fitness club generally provides services to its members to improve their physical appearance through exercise.

The proposed health and fitness club will provide indoor facilities of Gymnasium and Exercise Halls to male and female members and will offer personal fitness training services (i.e. gymnasium and exercise) for both males and female through qualified instructors / trainers.

The club will be established in a rented premise having a covered area of 2,800 sq.ft. and should be centrally located within a residential society to provide easy access to its members. The proposed club will have a capacity to cater 125 members per day on two different session bases. However, during first year of operation club will entail 94 members at 75% capacity utilization. The total cost to setup a gym & health club in Pakistan is estimated as Rs. 4.29 million, with a capital investment of Rs. 3.22 million and working capital of Rs. 1.07 million. The legal business status of this project is proposed as “sole proprietorship”

The installed and operational capacity of Health & Fitness business venture mainly depends on the market size and potential clientele. This pre-feasibility study is based on engaging 02 instructors and 02 gym helpers along with other 04 permanent staff including owner manager. The proposed club will operate in two different sessions of six hours each in the morning and evening on daily basis. Total capacity of the club will be to accommodate 125 members both males and females per day; in first year, the club will operate at 75% capacity by handling 94 members. The maximum capacity utilization is assumed at 95% (i.e. 119 members), which will be attained during 3rd year of operation. While, ratio of male and female members is considered as 60% males and 40% females

Areas Where a Gym Should be Opened in Pakistan

The increasing population and high concentration of educated / working class in major cosmopolitan cities like Karachi, Lahore, Islamabad, Peshawar, Quetta, Rawalpindi, Multan, Gujranwala, Sialkot etc., offers a very lucrative business opportunity for opening up well planned Health & Fitness Club. However, it is recommended that the club should be centrally located within an easily approachable developed / developing residential society, in line with the selected target market.

The target customers for health clubs are the population of big cities having age group of 18 to 50 years. Population of urban areas of Pakistan is 33% of total population out of which 50% falls in the targeted customers’ age group.

Keeping in view the economic and social factors, the market potential for the proposed project is mainly attributed to the population of big cities. Hence, it is recommended that the proposed project may be established in any of the major cities like Islamabad, Lahore, Quetta, Karachi, Rawalpindi, Peshawar, Multan, Faisalabad, Hyderabad, Sialkot and etc., However the project may also be opened in other cities and towns after careful market analysis.

Factors for Success of a Gym in Pakistan

Following are the factors critical for the success of gym & wellness club in Pakistan:

  • Selection of an appropriate location within the vicinity of a residential society
  • Selection of affordable and quality machinery & equipment i.e. exercise machines etc.
  • The proprietor should himself have technical know how of all the services being offered
  • The services of qualified instructors and physician should be hired as supervised workouts improve results
  • Utmost priority should be to provide members a lifestyle that encourages fitness through the safest and latest means. Products like heart-rate monitors, calorie expenditure, display units, and etc., should be used to enhance client motivation
  • Maintaining a clean, hygienic and healthy environment
  • Marketing and promotion through various channels i.e. catalogs / pamphlets, outdoor advertisement, hoardings / flex signs, TV & cable ads, and promotion through social media (Facebook etc.)

Space Requirements for a Gym in Pakistan

The proposed Health & Fitness club will be established in a rental premises. In this regard space may be acquired in a commercial plaza. The rent of the building will depend on not only the vicinity of the club as well as the floor on which it would be located. The club can also be established in an independent house unit that can be used for commercial purposes. If the required building is acquired on rent on 2nd or 3rd floor of any plaza the cost will be slightly lower. An estimated covered area of 2,800 sq. ft. will be required for the proposed venture; this space requirement has been calculated on the basis of installed machinery and maximum capacity of the club to facilitate the members.

Gym Machinery and Equipment Requirements

Following table provides the list of machinery and equipment required for the proposed services of Health & Fitness Club.

  • Electric Jogger Power Fit
  • Exercise Bicycle Air Resistance Dual Action
  • Heavy Duty Dual Action
  • Mini Stepper With handles
  • Twisters Twister- Double with handles
  • Twister- Single
  • Vertical Knee Raise
  • Hyper Extension (Adjustable)
  • Sit-up Bench
  • Abdominal Board with stand (Multi and Adjustable)
  • Chest Exercise Bench Press (with plate holder)
  • Butter Fly Machine (with 60 Kg weight)
  • Sitting Bench Press Machine (with 50 Kg weight)
  • Multi Smith machine Bench Press
  • Cable Cross Over Machine with Chin-up Bar (with 100 kg)
  • Legs and Thigh Exercise Leg Curl Machine (with 50 Kg weight)
  • Leg Stand
  • Standing Calves Machine (with 100 Kg weight)
  • Arm Exercise Preacher Curl Bench (manual)
  • Bent Over Lever row: T-Bar
  • Standing Curl Stand
  • Triceps Dip
  • Multi Gymnasium – Four Station (200 Kg weight) with Cable Rowing, Lat Pull, Twister and T-Bar Extension
  • Rods (Chrome Coated) Olympic Rod (6 Ft)
  • Curling Rod (4 Ft)
  • Dumbles & Weights (Chrome Coated)
  • Dumbles & Weight Racks
  • Exercise Mats

Investment Required for Opening a Gym in Pakistan

A detailed financial model has been developed to analyze the commercial viability of Health & Fitness Club. Various costs and revenue related assumptions along with results of the analysis are outlined in this section. The projected Income Statement, Cash Flow Statement and Balance Sheet can be studies in the pre-feasibility study of starting a gym in Pakistan by SMEDA.

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