Posted by Bob Adams on March 17, 1999 at 15:28:42:
In Reply to: Opening a gym or fitness center posted by David Garrido on March 16, 1999 at 15:11:06:
The first thing I'd do is figure out how to handle the liability issue. I don't mean to scare you away--but even a once a week exercise class involves significant risk.
If someone walks across the gym floor and slips there is all too good a chance that you'll get sued and if you don't protect yourself you could lose everything!
You could try to get liability insurance, but it will expensive for this type of business. For example years ago when I rented bicycles my local insurance agent said he couldn't even find me insurance. Eventually a larger broker placed a policy for me--but it cost me 10% of my revenue!
Another solution is to incorporate and pay yourself a hefty salary so as not to leave much money inside the corporation. This way if the company is sued and found liable for a large amount that you can take the company bankrupt and walk away from the claim. Often plaintiffs will also sue the CEO but unless there is gross negligence the CEO is unlikely to be found responsible.
Of course the safest solution is to incorporate and to get insurance for both the business and the corporate officers.
Basically starting this type of business is like any other--you need a business plan and you need to check out the competition and figure out how you'll be different.
You may need licenses to conduct gym classes and permits.
If you want to build a gym you will certainly need either commercially zoned property, and an occupany permit for the intended purpose. In many areas a facility of this type would require a special permit.