₹4 lakh rent, ₹3 crore investment, ₹20 lakh monthly earning: Faridabad man shares the reality of running gym

A gym owner opened up about the expenses of running a premium fitness centre in Faridabad, Haryana. Despite earning almost ₹20 lakh on an average in a month, he shared how much he takes home.

Running a gym might seem profitable, but it isn't always the case. Gym founder Nitesh Yadav shared his take in a video on Instagram. He shared that his monthly earnings range between ₹2 lakh and ₹8 lakh after investing ₹3 crore in the gym.

Is running a gym profitable?

Yadav's video caption read: “How much I earn as a gym owner in a month”. He shared the details of his monthly expenses and his average earnings in a month from running a gym in Faridabad, Haryana.

He said, “On average, my earnings are between ₹2 lakh and ₹8 lakh per month.”

Check monthly expenses

The owner broke down the profit and expenses of running the business. He shared that the fitness centre generates monthly sales of ₹20 lakh as an example. Considering staff and employee salaries, he said that he spends around ₹6 lakh to ₹7 lakh monthly. The gym rent costs him about ₹4 lakh, including GST, while the monthly electricity bill can cost him between ₹70,000 and ₹1 lakh.

He said that the biggest expense out of these can be the miscellaneous one. He added that miscellaneous expenses can be around ₹1 lakh to ₹3 lakh.

Profit

Considering all expenses, Yadav said that he is left with ₹5 lakh to ₹6 lakh. However, it is not the amount that he gets to take home, he added.

He said that he spent around ₹3 crore to set up his gym, which included the machines, equipment, interiors and other things.

“So, on average, the savings that I am able to make in this scenario are ₹5 lakh to ₹6 lakh. But there are different problems with it as well. For example, the gym that I have invested in is worth ₹3 crore. Now, the EMI that goes into it is ₹3 lakh a month. After that, whatever is left, there are other things at home as well. Things have to be maintained in a different way," he explained.

Monthly EMI

Paying an EMI of ₹3 lakh, the owner said that he is left with around ₹2 lakh to ₹3 lakh. He also pointed out how gym owners have to constantly upgrade their gym, machines and services to remain relevant in the market and keep up with expectations from customers.

“You have to keep up in the market as well. So, not everything that you see is all glitter," he warned.

Reacting to his video, a user wrote in the comment, "Gym business is not good for profit purpose as it requires a huge fix physical capital cost (sic)." Another said, "It will take you 6 years just to recover what you invested (sic)."

Disclaimer: This article is based on social media generated content and is intended only for informational and educational purposes. Live Mint couldn't independently verify its claim and doesn't endorse them.

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