Offering a glimpse into the financial realities of running a small business, a Faridabad-based gym owner has shared a video on Instagram revealing how much he earns and finally saves every month.
In the video titled “How much I earn as a gym owner in a month”, Nitesh Yadav spoke about the income and expenses of his fitness club, Infinity, located in Sector 86, Faridabad.
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He revealed that his monthly earnings range between Rs 2 lakh and Rs 8 lakh.
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How Much Does It Cost To Run A Gym With Rs 20 Lakh Monthly Sales?
Taking monthly sales of Rs 20 lakh as an example, Yadav explained that a significant portion of the revenue goes towards operating expenses. Staff salaries alone account for Rs 6 lakh to Rs 7 lakh, while the monthly rent is approximately Rs 4 lakh, including GST.
Electricity bills add another Rs 70,000 to Rs 1 lakh to the expenses, while miscellaneous costs can range between Rs 1 lakh and Rs 3 lakh.
According to his initial calculation, these expenses leave him with around Rs 5 lakh to Rs 6 lakh. However, this is not the final amount he gets to take home, as the business also involves loan repayments and other personal expenses.
Rs 3 Crore Investment And Rs 3 Lakh Monthly EMI
Setting up a premium fitness centre requires substantial investment in equipment, interiors, facilities and other essentials. Yadav revealed that he invested around Rs 3 crore in the gym. He has to pay an EMI of Rs 3 lakh every month towards the investment.
This brings his estimated monthly savings down to around Rs 2 lakh to Rs 3 lakh, before his additional personal and household expenses.
Explaining the financial challenges of running the business, Yadav said that simply setting up a gym and purchasing equipment is not enough. Gym owners also need to continuously invest in upgrading their facilities and maintaining their position in the market.
He explained, “So, on average, the savings that I am able to make in this scenario are Rs 5 lakh to Rs 6 lakh. But there are different problems with it as well. For example, the gym that I have invested in is worth Rs 3 crore. Now, the EMI that goes into it is Rs 3 lakh a month. After that, whatever is left, there are other things at home as well.”
He concluded his video by saying, “You have to keep up in the market as well. So, not everything that you see is all glitter.”
In the caption accompanying the video, he also highlighted the importance of retaining existing members, writing, “Gym business income = membership revenue minus rent, staff salaries and maintenance. The real profit comes from member retention, not new joining.”
What Social Media Said
Soon after the video was shared online, many social media users asked Yadav about the investment required to establish the gym. Some inquired about its membership fees and the number of customers it serves.
“Dear, does the Rs 3 crore include only the equipment or building as well?” a user asked.
Responding to the question, Yadav clarified, “Equipment + Interiors + 3 months Advance Rent +3 months Maintenance + Marketing.” He also shared that the gym pays Rs 3,39,000 per month, plus 18% GST. This takes the total monthly rent to approximately Rs 4 lakh.
Another Instagram user wanted to know about the gym's customer base. He questioned, “How many members do you have, and what is your monthly membership fee?” Yadav replied that the gym has 700 active members and charges Rs 6,000 per month.
“The gym business is not good for profit purposes, as it requires a huge fixed physical capital cost,” a user said.
An account posted, “It will take you 6 years just to recover what you invested, 6 years ka jo time gya vo alag just to get too breakeven. That too considering you consistently make this much every month plus no increment in rent (impossible). And most gyms don't survive more than 2-3 years. Running a gym is the worst business idea in India until and unless you already own that land. You could have made more just via simple FD.”
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“That's why local gym guys earn more because they invest just 50 lakhs or even less with 3 max employees and earn more than a lakh after all expenses and EMI of investment. The more premium you go, you need deep pockets,” read a comment.
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