If you’re a personal trainer, starting your own personal training business can be the route to more freedom, flexibility, and income. Of course, this is only true if you run your business in a way that drives your success.
Fortunately, learning how to start a personal training business is simple when you follow a step-by-step process, beginning with thorough research and a profitable business plan. A business plan that builds your personal brand will help you secure clients and earn a competitive wage.
Key Takeaways:
- Starting a personal training business involves creating a plan, raising funds, and marketing your business.
- A full-time personal trainer can earn between $30,000 to $150,000 a year.
- The global personal fitness trainer market size1 is expected to grow to $51.69 billion by 2028 at a rate of 5.7%.
If you’re interested in taking part in this profitable line of work by starting your own personal training business, read on. This article will teach you how to start a personal training business and keep it on the right track.
Step 1: Research Personal Training Business Ideas & Options
The best way to start planning your own personal training business is to brainstorm and conduct relevant research about your personal training business. Consider the following questions:
- What type of personal training services will you provide?
- To whom will you market these personal training services?
- What personal training certifications will you need to obtain and how much will they cost?
- What type of location do you want to base your personal training work at?
- What equipment do you need to purchase to make that location effective for your personal training business?
By starting with these questions, you can create a clearer vision of the type of personal training business you would like to start and identify the tasks and resources necessary to achieve it. Let’s take a closer look at the questions below.
Kinds of Personal Training Services
When planning your business, you will need to make several choices about the personal training services you will provide.
First, consider whether you will specialize in a particular training. The following list includes several types of training that personal trainers can specialize in.
- Health and lifestyle coaching
- Bodybuilding and physique training
- General fitness coaching
- Cardio and endurance training
- Conditioning and strength training
- Performance training
- Sport-specific personal coaching
- Gym instruction
- Mobile personal training
- Bootcamp instruction
- Martial arts-related training
- Injury rehabilitation
- Athletic training
Another important factor to consider is what demographics you would like to train. Personal trainers can specialize in training different client demographics, such as women, men, youths, professional athletes, seniors, and physically impaired individuals.
If you look at other personal training businesses, you’ll soon realize that the considerations don’t stop here. Many of them offer additional services that are related to physical fitness. For example, will nutritional guidance be part of your business?
Finally, consider how much time you would like to dedicate to your personal training business. Do you want it to be your sole source of income or a side gig? Is it going to be a full-time or part-time operation?
Becoming clear on the type of personal training you want to provide and how you plan to provide it will guide several aspects of your business planning, including the marketing, branding, and certification training you pursue.
Personal Training Certification
Certifications are important because they help build your knowledge base and add credibility. Although there are no state or national license requirements for independent personal trainers, the right personal training certification will help enhance your services, improve your business prospects, and potentially get a contract to train at a gym or health club.
The National Academy of Sports Medicine’s (NASM) personal training certification (NASM-CPT) is popular among people starting their own personal training businesses. This certification is available for an affordable monthly fee starting at $79. Other certifications include the American Fitness Professionals Association’s (AFPA) Senior Fitness Specialist Certification ($499) and Youth Fitness Specialist Certification (also $499).
All personal trainers should become certified in first aid, cardiopulmonary resuscitation (CPR), and automatic defibrillation (AED). This training can be obtained locally at health training companies, college recreation centers, the American Red Cross, and the American Heart Association.
Choosing a Location
A positive aspect of owning your own personal training business is the ability to work at many different locations. This can be beneficial from a business standpoint, as you’re not restricted to working in a building that has a high overhead cost.
Instead, personal trainers can choose to train in less expensive or even completely free locations. For example, train people in public areas, such as at a park or the beach. Additionally, offer to meet clients at their home gym or have them come to your house to work out.
Conducting virtual training online is another low-cost option that is growing in popularity. Apps like Trainiac help people looking for online training. Marketing your services over the Internet expands your potential customer base from local to worldwide.
Of course, many personal trainers still prefer to train in places like gyms, as they are designed specifically for the purpose of physical fitness activity, and these facilities usually provide exercise and training equipment to visitors. As independent contractors, personal trainers can usually rent out space in gyms.
However, the rules and fees associated with these locations can differ from facility to facility, so it is best practice to conduct research into them before you plan to utilize them. This way, you will know what to expect and whether the location would be suitable for your personal training needs.
Researching Equipment
Now that you have decided on the type of training you plan to offer, the certifications you’ll need to acquire, and where your training will take place, its time to look into purchasing equipment.
To save money, purchase gently used equipment, as doing so can cost about 40% to 60% less than it would to purchase new equipment. Even if you are meeting clients in their home for a training session, it may be wise to purchase basic equipment that can provide a decent workout, regardless of the equipment they have. This ensures that you will always possess the supplies you need to conduct a quality training session.
Step 2: Write Your Personal Training Business Plan
Every personal training business, both full-time and part-time, needs a business plan. A business plan is a strategic plan that helps business owners consider every factor necessary to make their business a success. Most importantly, a business plan should include a section for financial projections, where you will use data to predict how much money your business will earn and expend over the next three years in operation.
To help you get started, read our guide to writing a business plan, which includes detailed, step-by-step instructions. If you don’t need to seek investors or business partners, you may not want to write a multi-page business plan. In that case, our guide to writing a one page business plan will be a better fit.
Whether you opt for a comprehensive plan, a one-page business plan, you’ll want to perform a competitive analysis and calculate some financial projections for your business. Expand the sections below for a detailed look at each step.
When formulating your personal training business plan, you will need to include information about your competitors. This info will be included within the competitor analysis section, and should contain research gathered from other local businesses that will offer similar services and/or targeting the same clientele.
For the competitor analysis section, begin by listing your top five competitors that are located within a five-mile radius―expand if needed―of your business. For each of these five competitors, write down how far they are from your location. Additionally, write down key information about these competitors, focusing on each competitor’s advantages over your business and the advantages your business will have over them.
The financial projections section is the most difficult yet most important section of a business plan. This section is where you will show how much money your business can expect to earn and spend over the next three years of operation. This section will also specify the amount of money your business will require and how you will use it to make a profit.
The financial projections section is highly critical, especially if you will be seeking an investor to support your business financially. Understandably, investors will want to see the financial projections section first to learn how they will make their money back before they agree to provide funding for your business.
For a personal training business plan, a suitable financial projections section may include the following information and documentation:
- Startup expenses
- Sales forecasts
- Revenue projections
- Expense projections
- Operating expenses for the first three years of operation
- Cash flow statements for the first three years of operation
- Income statements (profit and loss statements) for the first three years of operation
- Balance sheet
- Break-even analysis
- Financial ratios and key performance indicators (KPIs)
- Cost of goods sold (COGS)
- Amortization and depreciation for the personal training business
- Funding requirements
The Service Corp of Retired Executives (SCORE) provides a free, downloadable, and customizable financial projection template.
Step 3: Finalize Your Business’ Administrative & Legal Paperwork
Now that you know the type of personal training business you’re going to open and have a solid plan in place, it’s time to make legal arrangements for your business.
It is vital that you make legal arrangements before accepting clients because personal training is full of risks and potential liability, as a client can be seriously injured in this line of work. Therefore, it’s important to register your business as a legal entity with the state and acquire personal liability insurance to avoid any financial disasters that could ruin the business’s or your personal finances.
The employment identification number (EIN), which is also commonly referred to as a Federal Tax Identification Number is a number the federal government gives businesses to identify them for federal tax purposes. Additionally, many banks will require business owners to have an EIN before they are allowed to open a business checking account.
There are several ways that an entity can get an EIN, but the most straightforward technique is to go directly to the IRS website. Here, business owners can apply for an EIN online and receive it for free. Alternatively, if you’d like to avoid the paperwork, use an online legal service to obtain the EIN for you.
Every personal training business is required to register as a legal entity within the state in which they’re operating. Creating a legal business entity, also called a business structure, protects the personal trainer from personal financial liability if a lawsuit were to occur against the business.
The most common legal entity is a limited liability company (LLC). Each US state law requires business owners to pay state filing fees when they file the documentation to form their LLC in that state. This documentation is usually known as the LLC Articles of Organization, but may also be referred to by alternative names, such as the Certificate or Organization, Annual Franchise Tax, Annual Report, Annual Fee, or Certificate of Formation.
The price of LLC filing fees can vary by state, and some states require business owners to pay LLC Annual/Biennial Fees periodically throughout the duration that the business remains operating. For example, a California LLC requires owners to pay a $70 filing fee, as well as a $800 annual fee and a $20 biennial fee. Other states require less expensive fees for LLC businesses, such as Missouri, which requires a $50 LLC filing fee and no subsequent fees or information reports.
Remember, it is very important to determine the upfront and recurring fees and requirements associated with your business structure, as by failing to do so, your business could be subject to penalties and interest.
Personal training businesses should acquire liability insurance, as this protects their business assets from customer injury, property damage, and reputational harm. For example, the insurance would cover if a client trips, breaks a toe, and claims your business is liable for their injury.
Related:
Depending on your city and state, you may need a business license. Furthermore, you may need a work-at-home license if you are going to train clients at your home. This is vital, as getting caught without this license may result in fines or other penalties. In the case of personal training businesses, they typically get caught when someone reports the business to a county, like a client or neighbor.
Additionally, if your business operates in a state with a sales tax, you may need to acquire a sales tax permit. This allows businesses to make taxable retail sales, collect sales tax from customers, and report those amounts to the state. A sales tax permit may also be known as a sales tax license, seller’s permit, retail license, sales and use tax permit, vendor’s license, or seller permit.
In some states, the business’s EIN number will be the same as the number used for the business’s sales tax permit. Whereas in other states, business owners must acquire a separate sales tax number that is issued by the state for local tax purposes. Go to your state’s official tax website for additional information.
Opening a business bank account is the best way to ensure an easy experience during tax season, as by conducting business through a separate account, you can ensure that your personal and business finances are not mixed. In the event of a tax audit from the IRS, you want to have all income and expenses from the training business in one account. Combining your income and expenses into a personal account can complicate the audit.
Most business bank accounts require a minimum $2,000 balance for a business bank account, or a monthly fee is charged.
Step 4: Raise Funds for Your Personal Training Business
Unless you’re opening a physical location, a personal training business is a fairly low-cost business, and many trainers only need to tap into their personal savings to open one. However, if you don’t have that option, there are other ways you can access additional funding for your personal training business. Some popular options include taking out a personal unsecured loan or starting a crowdfunding campaign and selling your services in advance.
Apply for a Personal Microloan
A microloan is typically a smaller loan of up to $50,000, which is provided through SBA funding intermediaries. According to the U.S. Small Business Administration, the average microloan is about $13,000.
Funding from a microloan is pretty low compared to a traditional bank loan, which usually starts at a minimum of $100,000. However, while a microloan is far easier to obtain than a traditional loan, the interest rate is higher. A microloan is similar to a personal unsecured loan from a lending institution. Depending on your personal credit, you should expect to pay up to a 20% interest rate on a microloan.
Find an Investor
An investor is someone who invests money into your business in exchange for a percentage of ownership, also called equity. Most business owners choose to work with an investor instead of a bank because of the investor’s business expertise. Furthermore, new business owners aren’t usually eager to take on new debt.
Unfortunately, finding investors can be challenging. One of the best places to come across them is at local business networking events. Keep in mind, however, that before you begin actively seeking investors, you need to have a well-thought-out business plan with solid financial projections. These assets are necessary to attract investors and convince them of the value of your business.
Start a Crowdfunding Campaign
A crowdfunding campaign is a strategy businesses use to raise money by preselling products and services as “rewards” for their business. Typically, on a website like Kickstarter, you’ll see people raising money for a product before it’s created. A crowdfunding platform will deduct around 5% of the total money raised. Plus, there is usually a payment processing fee of around 3%.
If you’re trying to raise money for equipment or gym space, you can presell memberships or workout packages. For example, you could presell a single workout, five workouts, or ten workouts, all at varying reward levels.
Also, consider selling “swag” items like branded T-shirts for a smaller reward amount. For a personal training crowdfunding campaign to be successful, the owner needs to be well-connected with those interested in the services. Our
Step 5: Purchase Software for Your Personal Training Business
Software systems are commonly used by organizations, both big and small, to automate recurring tasks and save users time and effort. You can use these solutions to enhance your personal training business with tools like client scheduling software that makes it easy for clients to schedule appointments with you, accounting software that helps you track your income and expenses, or client billing software that allows clients to pay online easily and set up recurring billing processes.
Client Scheduling Software
Apppointment scheduling software allows clients to go online or through an app and make training appointments. This software can save you the time and headache of dealing with phone calls and setting up appointments. Furthermore, the software typically requires less effort and expense than hiring a secretary to perform these tasks for you.
Accounting Software
Accounting software keeps track of business income and expenses. At first, your small personal training business may not need accounting software because you will likely have only one type of income―hourly training―and minimal expenses starting out. However, as you grow your business and potentially open a physical location, you may want to look into accounting software like QuickBooks to keep track of your business’s multiple income streams and expenses.
Client Billing Software
When you’re creating your new business, you may use cash or a simple system like Venmo―a one-time online payment platform―to bill your clients per session. But as your business grows, members may begin to owe larger payments, especially if you start offering annual prepaid contracts.
Client billing software can simplify these processes and grant your clients the ability to set up recurring payments. By setting up a recurring payment system using client billing software, your clients can simply enter their payment information once and will never have to undergo the process again.
Email Marketing Software
Email marketing software is a convenient way to advertise your personal training services and stay in touch with current, former, and potential clients. Personal training is a great industry for email marketing because there are many opportunities to provide valuable information to clients. Consider emailing current and former clients at least once a month with exercise and health tips or to entice them with information on special offers or deals.
Step 6: Market Your Personal Training Business
Marketing is everything for a personal training business. As a new trainer, you’ll have to use your marketing strategies to differentiate yourself from the dozens of other trainers.
Tangible marketing tools like business cards and brochures are ideal for ensuring potential clients can contact you. However, in today’s digital world, online marketing tools like websites and social media pages are highly important for gaining visibility when someone searches for your name using an online search engine like Google.
Traditional Marketing Materials
Generally, traditional marketing materials are considered physical advertising materials like business cards, brochures, and flyers with contact information. Additionally, traditional marketing can include your biography, case studies, before and after photos, and testimonials from happy clients.
Branded merchandise is another common form of traditional marketing. Consider creating branded items related to your personal training business, such as water bottles, towels, and stickers with your business name and logo.
Online Marketing
Online marketing is the use of internet-based digital tools and platforms to reach existing and potential customers. Standard online platforms, like websites, Facebook pages, and Instagram business accounts, are great for promoting your business and establishing credibility. At the same time, other tools for video marketing and email marketing can be helpful for keeping your clients engaged.
Here are online marketing platforms that all personal trainers should consider:
- Website: A website is similar to your online billboard and will be a digital space in which you can promote your business. Websites are also essential for establishing credibility online, as a quick Google search should lead internet explorers (AKA potential clients) directly to your site.
On your website, market your business by including several large, high-resolution photos explaining the type of services you provide and testimonials of happy customers.
- Social media: Social media pages for your websites can attract clients from all corners of the world wide web. Facebook has long been a popular social media site for businesses, but for visual businesses like personal training, Instagram will likely be the platform with which you have the most success. Consider trying out Instagram Stories, as this is an excellent way to connect with your audience frequently.
- Video marketing: Video marketing can enable you to communicate your training workouts better than photos, as viewers are able to witness the movements involved in your training. Facebook and Instagram Stories are a terrific way to post short, authentic videos about your training.
- Email marketing: As you grow your lead and customer base, it’s important to keep in touch with them, and email marketing is a free way to do that. However, many paid software services can simplify your email marketing efforts and may be worth the investment.
Online marketing is always changing, which presents an opportunity for trainers to stay up to date with the latest changes. Social media platforms especially undergo frequent feature updates, and therefore, it’s important to keep up with these changes so you can get the most from these tools.
Personal Training Marketing Package
As a personal trainer, you will be meeting potential clients both in person and online. With business opportunities around every corner, it is important to stay prepared and look organized with a marketing package that summarizes your services and background.
A personal training marketing package can consist of a folder with several pieces of paper, or it can be a digital PDF. Inside, include your bio, a description of the business, client testimonials, client results, several photos, and possibly a video. Remember to keep your marketing package up to date so that it reflects your business’s current offerings.
Branded Clothing
Branded clothing is a great way of marketing your business. Many personal trainers wear a uniform that represents their business, with shirts or athleticwear featuring their main business colors and logo. If you open a business with several trainers, having all of your staff members wear your branded T-shirts or collared shirts will make your team look united and professional.
Additionally, you should consider selling branded shirts, tanks, hoodies, and shorts for customers to purchase and wear. Not only would this be an additional income source, but it would be a way to experience free advertising every time someone wore your branded merchandise.
Frequently Asked Questions (FAQs)
This section includes the most frequently asked questions about how to start a personal training business.
Personal trainers can get paid well. The typical personal trainer makes between $50 and $60 per hour. That price can increase as the demand for your services increases. If you help people lose weight and gain muscle, word will spread about your success. Additionally, you will need to be well-organized to turn the $60 an hour you earn into 25 sessions per week, which would earn $1,500 in weekly revenue.
Yes, in most locations you can train without certifications. If you plan to get hired by a gym or health club, though, many of those businesses like to see a professional certification or a degree in kinesiology or a related field. Before starting a personal training business, it’s also a good idea to get first aid, CPR, and AED training in the event of a client’s health issue. This training is given locally at first aid training companies, local colleges, and the American Red Cross. They cost around $100.
Highly respected personal trainer certifications include those from well-regarded organizations such as the National Academy of Sports Medicine (NASM) and the American Council on Exercise (ACE). However, the right certification for you will depend on the type of personal training you intend to conduct through your personal trainer business.
Personal training can be a great career. You’ll make your own hours, dress casually, work in a variety of locations, and see physical improvement in others as well as yourself. Additionally, as you grow your client base and demand for your services increases, your hourly rates will increase.
According to industry research company IBIS World, the number of personal trainers has been growing in demand in recent years. People interested in weight loss and customized workout plans have fueled this growth in demand.
The costs associated with starting a personal training business can vary depending on factors like the location of the training facility, the equipment needed, and the certifications acquired by the trainer. On average, the investment can cost $500 to $15,000.
To start a personal training business with no money, practice methods that require limited expenses, such as offering virtual training sessions to minimize equipment and space costs. Free marketing methods include using social media and email marketing. Finally, consider seeking investors to offer financial support for your business.
If your personal trainer operates as an independent contractor and you pay them $600 or more for their services within a year, you should give them a 1099-NEC form for tax reporting.
Bottom Line
Starting a personal training business can be very rewarding and lucrative. As a business owner, you get paid to help others physically transform their bodies and improve their health. As your client base grows and the demand for your services increases, your hourly rate will increase as well. Initially, certain aspects of starting your business may be challenging, like getting new clients and developing a brand for yourself. However, once you get the ball rolling, you can easily earn between $50 and $150 per hour.
