₹ 4 Rent, ₹ 3 Million Investment, ₹ 20 Lakh Monthly Earnings: Faridabad Man Shares Reality Of Running A Gym | Today’s news
Running a gym may seem profitable, but it isn’t always. Gym founder Nitesh Yadav shared his insight in a video on Instagram. He said that his monthly earnings range between ₹2 lakh and ₹8 crores after investment ₹3 million in the gym.
Is running a gym profitable?
Yadav’s video caption reads: “How much do I earn as a gym owner in a month”. He shared the details of his monthly expenses and average monthly earnings from running a gym in Faridabad, Haryana.
He said: “On average, my earnings are between ₹2 lakh and ₹8 million per month.”
Check your monthly expenses
The owner spread the profit and expenses to run the business. He shared that the fitness center generates monthly revenue ₹20 million as an example. With regard to staff and staff salaries, he said he spends around himself ₹6 lakhs up to ₹7 crore per month. Renting a gym costs him approx ₹4 lakh, inclusive of GST, while the monthly electricity bill can cost it between ₹70,000 a ₹1 lakh.
He said the biggest expense of these can be the most varied. He added that various expenses may be around ₹1 lakh up to ₹3 lakhs.
Profit
Taking into account all the expenses, Yadav said he was left over ₹5 lakhs up to ₹6 lakhs. However, it is not the amount he gets to take home, he added.
He said he spent around ₹3 million to set up his gym which included machines, equipment, interiors and other things.
“So, on average, that’s the savings I’m able to achieve in this scenario.” ₹5 lakhs up to ₹6 lakhs. But there are also various problems with it. For example, the gym I invested in is worth it ₹3 crores. Now it’s EMI that’s getting into it ₹3 million per month. Then what’s left is other things at home. Things have to be maintained in a different way,” he explained.
Monthly EMI
EMI payment of Rs ₹3 lakh, the owner said he had left around ₹2 lakh up to ₹3 lakhs. He also pointed out how gym owners must constantly improve their gyms, machines and services to stay relevant in the market and keep up with customer expectations.
“You also have to keep up with the market. So not everything you see is glitter,” he warned.
Commenting on his video, a user wrote: “Gym business is not good for profit as it requires huge fixed cost of physical capital (sic).” Another said: “It will take you 6 years to get back what you invested (sic).”
Disclaimer: This article is based on social media generated content and is for informational and educational purposes only. Live Mint could not independently verify its claims and does not endorse them.
