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Do you love fitness and think "Wouldn't it be awesome to open my own gym?" In an exclusive interview with the founder of Lab Athletics based in Bellingham, Washington, we asked Jake Brog to share his story.

As Jake's launch demonstrates, creating your own fitness brand shouldn't require you to invest hundreds of thousands of dollars. Best of all, Jake opened his gym business using nothing more than a credit card. Not only was his launch a success, but he was able to pay off his debt without paying any interest.

Following steps taken by Jake, you can learn how to start a gym from scratch.

Step 1: Become a fitness coach or instructor.

Jake is not a serial entrepreneur. Like many young adults, he worked several different jobs before realizing his two passions in life - helping others and fitness.

Unlike some gym owners, Jake Brog did not initially think to himself, "I want to start my own gym." As you'll see, that desire came later.

At first, he became a volunteer firefighter. To pay his bills, Jake was a personal trainer and did fitness instructing on the side. Within months, he was managing the gym’s coaching staff and all the core tasks associated with running a fitness facility. Before long, he knew he'd found his professional calling - to open a gym of his own.

Watch the full interview with Jake here:

[su_youtube_advanced url="https://www.youtube.com/watch?v=lchlyN9RBuw"]

Get the necessary credentials.

Even if your gym trains you as an instructor, you should consider training from an accredited, third-party organization. There are a number of highly-reputed agencies that offer fitness instructor certifications. Among them are:

• AFAA
• NETA
• ACE
• ISSA
• ACSM

And the best part about becoming a certified fitness instructor or personal trainer is that it costs much less than other forms of training. When you are ready to start a gym business, you'll have all the expertise you need without having to spend $20,000-50,000+ on a formal, college education.

Find a gym that will help you gain experience.

The U.S. Bureau of Labor Statistics notes that fitness instructors are in high demand, with jobs expected to increase by 13% over the next eight years.

If you’re thinking seriously about opening a gym, you should apply for a job as a fitness instructor at a local facility.

Jake worked hard at his fitness job, and before long, the gym promoted him. He quickly gained leadership skills like time management, budgeting, delegation, and conflict resolution. These skills helped Jake to not just open a gym but to also run a gym well.

Step 2: Itemize your gym startup and operating costs.

Like any business startup, launching a fitness facility costs money. Taking the time to itemize every cost of opening a gym can help you create a plan for launch and profitability.

You don't have to start your own gym. there are plenty of opportunities to buy a gym or a franchise if you'd prefer.

What’s the difference between startup and operating costs?

Startup expenses are one-time costs. Here are some common startup costs associated with opening a gym:

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• Lease security deposit (or 10-30% down payment of the commercial property purchase price)
• Gym equipment ($1,000+)
• Starter bar ($275+)
• Olympic bar ($400+)
• Fitness matting (flooring)
• Weight sets (each plate usually costs $75+)
• Crossfit rig (if applicable)
• Business attorney
• Accountant
• Branding (logo and website)
• Company computer
• Bookkeeping software

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In contrast, operating costs are ongoing expenses. These costs usually entail the following:

• Rent
• Utilities
• Insurance
• Equipment replacement
• General maintenance
• Advertising

What’s the difference between variable and fixed costs?

The operating cost of starting a gym usually involves both variable and fixed expenses.

Your fixed costs remain the same month-after-month, such as rent and utilities.

Variable costs increase as you get more clients. For example, more clients mean more wear and tear on your equipment, and this could increase your equipment replacement costs.

Frequently forgotten costs when opening a gym.

Jake noted that some expenses took him by surprise. Like most business owners, he realized he needed insurance. Without insurance, he risked losing his business completely should a tragedy occur. If you need commercial insurance, get a quote here.

Fitness flooring is another business expense that new gym owners don’t often think about when building their business plan. Soft flooring is important because it reduces the risk of injury for yourself and your students.

Step 3: Keep expenses low, but stay away from low-quality gym equipment.

The more you spend, the harder it will be for your gym business to last.

That said, be careful about sacrificing quality for a lower price. If paying too little for certain kinds of equipment will only force you to replace that equipment later, it will end up costing you more money in the long run.

When shopping for a location, look for industrial spaces over commercial spaces.

A danger that many gym startups encounter is succumbing to the pressure to find a commercial or shopping center storefront. According to Jake,

[su_quote]If you look at the survival rate of gyms that are in industrial areas versus commercial, hands down you’re going to have so many more gyms that have been successful in industrial areas.[/su_quote]

Reflecting on his decision to lease in an industrial area, Jake says,

[su_quote]My best business decision during launch was finding a very affordable space to start my gym in. It allowed me to start my business without a crazy amount of risk, pay off my equipment loans fast, and become profitable in the first 12 months.[/su_quote]

Start small.

Jake started his gym in a single industrial storage bay with a few hundred square feet. The smaller area allowed him to pay less for rent and more on quality equipment.

When opening a gym, it’s not important to do everything. Instead, figure out what you need in order to succeed.

When you start small, you can grow gradually with the confidence that increasing your space and equipment will generate profits right away. Today, Jake leases four bays and is already needing more space to keep up with demand.

When shopping for fitness equipment, think quality over quantity.

Poor-quality equipment will require you to replace it sooner. Additionally, bad equipment increases your risk of injury and can lower results for your clients.

Because of its high quality, Jake's favorite equipment brand is Rogue Fitness. And because Jake saved money on rent, he was able to invest in top-level equipment.

[su_quote]Rogue fitness is a very high-quality brand. They’re made in the U.S.A. These guys [crossfit big rigs] we’ve had for five years, and they’re not going anywhere.[/su_quote]

When you start your own gym, keep in mind that there are certain costs that you should not cut corners on. Don’t be afraid to spend a little extra if you are confident that it will be a worthy, long-term investment.

Step 4: Consider all your funding options

Jake did not have $10,000 just lying around. What he did have were determination and great personal credit.

Why do you need a business plan to start your own gym?

After deciding to open his own gym, Jake created a business plan. Initially, he built his gym business plan hoping that it would help him secure a business loan.

Even without a loan, Jake’s gym business plan did force him to do his homework. In his plan, he outlined the following key sections:

• A quick summary of the business (elevator pitch)
• A detailed company profile
• A description of the target fitness market
• Legal setup
• A list of products, services, and pricing model
• A plan to generate revenue from day one
• Financial projections

For most small businesses, writing a business plan allows you to pitch lenders and investors. While not every gym requires outside funding, an extra injection of cash can help you build your business faster.

For a detailed example of a business plan, check out the SBA’s business plan page here.

What do you need to secure a business loan?

In Jake’s case, no amount of business planning would open doors for him to get a traditional business loan.

“What I found out is: the business plan is awesome, but in the real world, the banks are like, ‘We’re probably not going to loan you any money because you have no skills in business.’”

The truth is that most business startups usually can’t get a traditional business loan. Even the SBA prefers to qualify businesses that have existed for a few years and have already demonstrated their ability to create profits.

Jake leveraged a 0% introductory interest rate on a credit card to launch his gym!

Since a traditional business loan was out of the question, Jake got creative. Due to his good credit score, Jake qualified for a credit card with a 0% introductory interest rate.

And here's the kicker. Having built a solid business plan, Jake knew that he had a good chance of making enough sales so that he could pay off his credit card debt before he would accrue any interest charges.

Step 5: Establish your financial goals.

Jake’s financial projections helped him establish realistic financial goals. Within months, not only was he successfully paying all his bills, but he was generating a modest profit.

If you’re considering buying an existing gym, make sure you you go through the following questions, which are critical to understand whether or not an existing business can meet your financial goals.

How much will you charge?

Any fitness business must decide what they offer clients and how much they must charge.

In our interview with Jake, he outlined different types of gym services. Typically, your gym should offer one or more of the following:

• Monthly membership
• Large, medium, or small group classes
• One-on-one personal training

According to Jake, the most lucrative fitness pricing model is the large group class. That said, the larger the group, the more concerned you must be about the safety of your customers.

If your fitness approach involves low-risk exercises (such as those movements that do not involve heavy equipment), your classes can be larger. This model allows you to generate profits faster.

In Jake’s case, he chose the CrossFit model. While he does a lot of group classes, he knows that he must keep classes smaller. This approach also affects how he prices his memberships. Jake noted,

[su_quote]Basically, our memberships are between $149 and $170 a month.[/su_quote]

He arrived at this number after calculating realistic financial goals based on his costs and the value he brought to the local fitness market.

Breaking even means that your business is no longer costing you money.

Over the course of his first year in business, Jake invested between $15,000-20,000.

[su_quote]To actually break even on rent and then also to start paying off the credit card - the debt that I’d incurred - I had to be making about $1,000 a month.[/su_quote]

Jake’s personal bills and debt were very low, and his low cost of living further helped him break-even. After ten clients, he was paying his bills with a little extra to spare.

Break Even

Sales ($) = Costs ($)

You should also know how many clients/memberships your gym needs to be paying your bills. If you go too long and are unable to keep up with your costs, it will be much harder to stay in business and eventually enjoy those profits!

Profitability means that your gym sales are greater than your costs.

After you’ve broken even, your next goal should be to seek higher levels of profitability. To help them achieve profitability faster, most gym owners don’t take a paycheck right away.

Profitability

Sales ($) > Costs ($)

Once generating a profit, Jake’s first priority was to lower his debt. Since he had only so many months before his 0% interest promotion would run out, he committed himself to pay off his credit card as soon as possible.

[su_quote]It was about 6 months into the business where I finally felt comfortable that I had enough money coming in where I was going to be able to pay off that credit card debt that I’d incurred.[/su_quote]

Sustainability means that your gym is successful enough for you to take a paycheck.

After generating a profit, your final goal should be sustainability. When you feel confident that your business can sustainably generate a profit, you can begin to enjoy greater perks.

[su_quote]If you’re talking about actually having some substantial profit, having some freedom, extra money in the bank account, for me the big landmark was about 100 clients.[/su_quote]

Sustainability ensures that you have a regular paycheck (how much you make depends upon your financial goals). Additionally, financial freedom can allow you to hire employees so that you as the gym owner can have more time for yourself and your family.

Sustainability

Sales ($) = Costs ($) + Owner Paycheck ($) + Business Savings ($)

Today, Lab Athletics employs five people, and Jake is able to focus on more big picture decisions, such as how to grow his brand as a gym owner.

Step 6: Identify the type of person you want to join your gym.

You should never build one gym that fits every type of client. Like any small business, you should have specific kinds of people in mind in your community.

By defining who your target audience is, you can better understand what your customers need and how to deliver value to them.

What is their income level?

Jake knew that his approach to fitness catered to an audience with more financial resources.

[su_quote]Most of our clients are definitely high-end people that have pretty serious jobs.[/su_quote]

This insight helped Jake create a strong pricing model, as well as tailor his training to those with a certain budget.

What is their age?

Your gym will typically serve an ideal age range. Because we all tend to lose functionality with age, your fitness model may be better suited for those that are older, younger, or middle-aged.

In Jake’s case, he specialized in helping middle-aged adults that are in generally good health. These ideal customers had known what it was like to be in amazing shape, and they wanted more than “general good health.”

[su_quote]We’re definitely catering to people that are initially coming in because they wanna lose some weight. They’ve let themselves go. They wanna be the athlete that they used to be back in high school or college.[/su_quote]

What is their mindset?

When opening a gym, the mindset of your clientele will determine whether or not you can succeed. Fitness facilities need customers that are driven and know what they want. Oftentimes, those people just need a little direction and incentive.

Step 7: Incentivize gym membership referrals before spending money on advertising.

While Jake enjoys marketing and advertising, he knew that to succeed, his gym needed referral power.

How can your gym incentivize referrals?

Obviously, no one will refer friends and family to your business if your services are mediocre. When you get your first batch of clients, you must pay attention to their wants, needs, feedback, and results.

[su_quote]The best metric of how we’re doing as a gym is how many referrals we’re getting every month. If we’re not getting referrals, we’re not doing a good job.[/su_quote]

When your customers are happy, they’re more likely to refer others. You can also offer discounts to your clients for referring their friends/family.

What should you do if a client is unhappy?

If feedback and results are negative, you may need to make some adjustments.

Especially in the digital space, negative reviews are sometimes unfairly accusatory. When you receive negative feedback, it’s important that you listen to the criticism and look for opportunities to improve your gym.

Above all, never attack critics. Instead, thank them, offer them a gift, ask probing questions, and commit to (realistic) changes. Even if you can’t win back an angry client, others will see your response and want to give you their business.

What kind of advertising works best for your gym business?

Social media pay-per-click (PPC) ads became one of Jake’s favorite mediums once he had achieved sufficient word of mouth for his gym. For middle-aged audiences, Facebook ads are among the best-performing in the fitness industry.

Step 8: Teach consistency among your clients.

You want to make sure your gym members to keep coming back. Not only is it important that you teach consistency, but you must also earn trust with your customers by delivering results.

Gym memberships last longer when your clients see results.

Jake and his team know that when clients see results - weight loss, bulk, or increased physical functionality - they will keep coming back.

Customer retention is more profitable than customer acquisition.

It is a proven fact in economics that constantly chasing new customers will cost you more money than retaining as many of your members as possible.

Since repetition is the key to results in fitness, creating ways to remind your clients to stay consistent should be part of your gym’s services. This could include encouragement during training sessions, follow-up phone calls, or even email newsletters.

At Jake’s gym, they showcase successful clients on a wall to inspire other members to persist toward their fitness goals.

Step 9: Scale your gym business from within.

Jake warns against jumping too fast towards a multi-location strategy.

Can you open more gym space at a low cost?

The fewer the costs you have to manage in your gym business, the easier it is to “ramp-up” (that is, break even with your costs and become profitable). In the fitness industry, it can take large gyms several years before they generate a profit simply because they started in too big a space.

[su_quote]The first bay I rented out was this back bay here - so just that one garage door. There was nothing in here. We didn’t have a bathroom. It was basically about 400-500 square feet of a garage unit. That was $250 a month… We have four bays now.[/su_quote]

If you find an industrial location with the potential for slow expansion, you can build out your gym smarter, just as Jake did.

Can you add more classes?

In your current location, think about ways to exhaust its potential. Jake says,

[su_quote]We could always add more class times... Let’s say we’re doing large group training right now, we could also offer an additional service that is small group training for an additional cost.[/su_quote]

Can you extend your gym hours?

If you have the time and employees to facilitate extended workout hours, you can cater to those that prefer to workout at different times of the day, including early morning or later in the evening.

Remember that opening a new gym location is a major expense.

With each new fitness center location, you will have to sign a new lease, pay more in utilities, and fill with equipment. It many ways, it's like starting a gym all over again. Jake advises,

[su_quote]So there’s ways to scale inside your facility versus going and starting another gym, two other gyms, and actually just make that one facility a lot more profitable than going and trying to replicate facility, facility, facility.[/su_quote]

Before you establish a new location, make sure that demand justifies the investment and that you’ve filled the space you currently occupy.

If you think at some point you’d want to sell your business, scaling too quickly could negatively impact the value of your business.

Step 10: Arm yourself to replicate success.

Once your gym is a success, you should look for big and small ways to replicate it.

Seek more training.

You and your team are worth investing in greater knowledge and fitness skills. Qualifying your staff to do more with less is a great way to increase your sales and lower your costs.

Jake also found that investing in a coach did wonders for his gym business and him as a gym owner.

[su_quote]You can learn so much and shortcut your success by learning from someone who is the professional you want to be or has been extremely successful doing what you want to do.[/su_quote]

Read books that improve your mindset and soft skills.

Jake’s favorite book is The eMyth because it ultimately inspired him to open his own gym. Reading instructional and motivational books by experts can enhance your skills and improve your mindset.

Never stop challenging yourself.

At the end of the day, you are the one that must take calculated risks. When asked what advice he would give to those thinking, Should I start my own gym? - Jake Brog insists, “Do it! Just go for it!”

It worked for Jake, and it can work for you, too.

Business ideas

More people are thinking about starting a business than ever before. In fact, nearly 5.4 million businesses were started in 2021, so how much does it cost to start a business?The answer is different for every business, but many small business owners spend less than $5,000 on startup costs. We’ve talked to a ton of small business owners about how to start a business and we’re going to share what we’ve learned from them.We’ll break down the business startup costs into upfront costs, one-time costs, and recurring expenses for each type of business. Let’s look at how we classified each type of cost.

Typical business startup costs

We’ve broken down the startup costs into fixed costs and variable costs. We’ll discuss each below.

Fixed Costs

Fixed costs are business costs that do not change as sales increase. The following items are common startup costs that are fixed costs:

• Office Space (Recurring): This includes both rent and utilities. Most small business owners start with home office space and deduct the percentage of space from their taxes as a small business cost.
• Legal Fees (Upfront): These are recurring costs that you have to pay to run a business legally, which usually include business formation, business licensing, and other professional fees to comply with regulations.
• Software Costs (Upfront and Ongoing): These business startup costs include payment processors, websites, CRM, accounting software, and more. You can find some that would be one-time costs, but most are recurring charges.
• Equipment Costs (Upfront): This includes machinery, vehicles, and other costs to meet the mission critical aspects of the business.
• Insurance Costs (Upfront and Ongoing): If your business requires insurance, make sure to keep it continuous. If it doesn’t, you may want to consider it anyway.

As time goes on, some businesses may find that a few fixed costs only remain fixed up to a certain volume. After that, they might see a drastic increase to add more volume and then it will become a fixed cost again. Adding a second service truck is one of the typical costs that work like this.The other type of small business startup costs are variable costs, which we’ll discuss next.

Variable Costs

There are business costs that vary based on the volume the business does. These startup costs are called variable costs. Common startup costs in this category include:

• Shipping Costs (Variable Expense): Shipping costs are included in variable costs because you only pay for them if you order materials or ship products to a customer.
• Marketing Costs (Ongoing Costs): The Small Business Administration suggests spending approximately 8% of desired revenue on marketing. The advertising costs seem to be one of the defining factors as to whether a business succeeds long term.
• Material Costs (Varies): The time and materials that go into offering a product or service will affect your revenue.
• Supplies and Packaging Costs: Items you use for running the business must be considered early in the game. This startup cost may include computers, cleaning supplies, business cards, packaging for products, and other items that help your business.
• Wages: Most wages will vary with the amount of business you have. You have to pay employees for their time regardless, but you’ll schedule less hours when you have less business.
• Unexpected Costs: You should always leave a little wiggle room for unforeseen events. I’d suggest at least a 10% slush fund for unexpected startup costs and operating costs.
• Other Costs: This is a catch all for spending you can forecast, but are not sure which cost categories to include them in.

Now that you know the costs we’ll be analyzing, let’s look at the average start-up costs for businesses.

How much does it cost to start a business?

I broke down the average costs of starting a business into four different classifications:[su_note note_color="#dbeafc"]

1. Low Cost: start a business with a shoestring budget and figure out the ongoing expenses along the way.
2. Average Cost: start a business with the money to cover the first year of organizational expenses.
3. High Cost: business owners interested in the startup costs to guarantee they stay in business for five years.
4. Franchise: business owners who want to buy a franchise.

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How much does it cost to start a small business?

According to the Small Business Administration, one out of every four businesses start with less than $5,000, and over half of small businesses have startup costs of under $25,000. But the median is just over $24,000, and the weighted average would be between $72,000 and $276,000.[su_table responsive="yes" alternate="no" fixed="yes"]

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How much does it cost to start an online business?

Online businesses are normally some of the lowest in cost to start. You can start most of them for under $1,000 without any educational expenses.They require a computer, internet, business licensing, and some software. Businesses in this category might include:

• E-commerce stores
• Graphic design
• Blogging
• YouTube content creators
• Virtual assistants
• Marketing agencies
• Software developers
• And more

When people ask “how much does it cost to start a business online?” search results will normally provide answers about ecommerce stores. We’ll discuss those next.

How much does it cost to start a t-shirt business?

T-shirt companies are fairly easy to start. For example, you can start with a $30 Shopify, some design software, and a print-on-demand provider. If you really want to make money on it, you have to get good at SEO and marketing, which will increase your costs.[su_table responsive="yes" alternate="no" fixed="yes"]

[/su_table]Check out our interview with the owner of Urbanity to learn more:[su_youtube url="https://youtu.be/_wUc28d8KkE"]

How much does it cost to start a landscaping business?

We’ve interviewed multiple business owners who have started landscaping companies. It’s one of the easiest types of businesses to start. You can even start a business for as little as $300.The table below shows the breakdown of the business expenses a small business owner should expect when starting a landscaping business.[su_table responsive="yes" alternate="no" fixed="yes"]

[/su_table]Check out our most recent YouTube video with a small business owner who started Plan-It Vision with only $300:[su_youtube url="https://youtu.be/mQdsCmVFPGI"]

How much does it cost to start an eyelash business?

An eyelash business is one of the most commonly searched small businesses. To get started, you may need to go to cosmetology school. Many states require school, but some do not. If you haven’t already gone to cosmetology school, starting a small business will cost more than $20,000.Most eyelash small businesses run as a combination of brick and mortar business and traveling to their client’s location. We’ve provided you with estimates of how much to expect startup expenses to cost based on the assumption you haven’t already gone to cosmetology school.[su_table responsive="yes" alternate="no" fixed="yes"]

[/su_table]Subtract $20,000 from any of these numbers if you have already gone to school. I included legal fees and insurance costs in the low cost startup funding because you don’t want your new business to be slapped with a major fine for operating illegally.

How much does it cost to start a cleaning business?

Cleaning businesses are great for startups. You can even start your own business for as low as $300 if you just buy the cleaning supplies. Almost all the costs are variable expenses.However, you should get the business license and the insurance as soon as possible if you decide to get them after you get started. The ultra low cost way assumes you rent any equipment after booking a job that needs equipment.[su_table responsive="yes" alternate="no" fixed="yes"]

[/su_table]Check out our interview with Christopher Mondragon below or sign up for our cleaning business course that covers pricing, business credit, Chris’s marketing scripts, and automation templates:[su_youtube url="https://youtu.be/d4Iip7BHXwg"]

How much does it cost to start a jewelry business?

Many people enjoy doing arts and crafts like making jewelry. You can start a business out of this fun hobby for less than $100 and build your business as you grow. Premade findings are typically more economical, but creativity is often the joy of this type of business owner, so you might want to make your own pieces.If you are trying to make gold and silver jewelry, you can expect the cost to be much higher. A troy ounce of gold varies based on market conditions, but has been between $1,000 and $2,000 over the last 15 years. It will only make about five to 16 rings, and you still have to have the tools to melt it.

How much does it cost to start a storage unit business?

The answer to this isn’t particularly clear cut. If you are wanting to buy storage units that are selling people’s stuff to recoup the costs, you should plan to bring at least $500 to the auction. Then, hope you find a gem and recoup your investment.If you are talking about building storage units and renting them out, you’ll need to:

1. Buy land (acres range from $1,600 to millions, with an average of $12K over the continental U.S.
2. Build storage space for $25 to $45 per square foot.
3. Run the property for $2 to $4 per square foot of operating expenses.

Check out Love to Know’s blog for more detailed information.

How much does it cost to start a food truck business?

You might be able to start a food truck for as low as $10K, but I’d expect to spend more like $20K to get started. You’ll probably need around $156K to make it through the first year and around $670,000 to make it through the first five years.If you figure out a winning recipe, it can lead to a million dollar business, though.[su_table responsive="yes" alternate="no" fixed="yes"]

[/su_table]Check out our video below to find out how Saied Samaiel makes more than $600K per year with his food truck:[su_youtube url="https://youtu.be/Qi_RBWualJ8"]

How much does it cost to start a dropshipping business?

The cost of starting a dropshipping business can vary dramatically because you may have to design a product and purchase inventory. If you are using print-on-demand with dropshipping, it is often fairly cheap.Expect to spend at least $80 getting started, but if you are sourcing materials and manufacturing, it could be more than $30,000 to make your products. Through the course of a year, you might spend up to $180,000.[su_table responsive="yes" alternate="no" fixed="yes"]

[/su_table]Check out our interview with Casey about how he created and dropships Shed Defender:[su_youtube url="https://www.youtube.com/watch?v=XTiks_VFTMo"]

How much does it cost to start a candle business?

You can start a candle business for less than $200. The materials and a Shopify account are all you need to get started. The numbers below are from our interview with Jazmin who started the company in 2020 and is making more than $150K per year.[su_table responsive="yes" alternate="no" fixed="yes"]

[/su_table]Check out our interview below:[su_youtube url="https://www.youtube.com/watch?v=UzZ5aTbiLh0&t=2s"]

How much does it cost to start a towing business?

A towing business can be started for under $10,000. It has special licensing requirements that raise the cost and most people don’t own a tow truck. You can typically make around $100,000 per truck––if you do it right.[su_table responsive="yes" alternate="no" fixed="yes"]

[/su_table]Check out our interview with a towing company business owner to learn more:[su_youtube url="https://youtu.be/pk4B1Q28SCs"]

How much does it cost to start a painting business?

You should expect to spend $5,000+ to start a painting business because you’ll need a contractor’s license in most states to start a painting business. Contractors’ licenses have financial requirements that make them more expensive. States may require:

• Background checks
• Surety bonds
• Multiple years of experience
• Licensing exams

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How much does it cost to start a detailing business?

You can start a mobile detailing business for as little as $300, but you should probably expect the annual costs to approach $53K to really grow. That includes licensing, insurance, a vehicle, upgrading your website, and spending $2K per month on marketing. Check out the breakdown below:[su_table responsive="yes" alternate="no" fixed="yes"]

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How much does it cost to start a trucking business?

Trucking businesses will normally cost around $10,000 to start in-state or $20,000 for interstate operations, but you can expect to spend $100K to $250K per year to run a trucking business.Make sure the truck you buy is less than 10 years old because most companies require a newer vehicle when hiring you to haul their products.[su_table responsive="yes" alternate="no" fixed="yes"]

[/su_table]Check out our interview with Mikael Sant. He averages $75K a month running Sant Lines LLC:[su_youtube url="https://www.youtube.com/watch?v=-8TnsjDRXUE"]

How much does it cost to start a taxi business?

Taxis are a dying business in most places. The business structure is antiquated. You have to register with your city’s transit authority, hire dispatch, and buy a bunch of taxis. We’ve provided an estimate for starting with five taxis running 24 hours a day.If you already have a car, you can start driving for Uber or Lyft. All you have to do is get a business license, pass a background check, and have a current car inspection. You can run a successful business fairly easily. The startup costs for this kind of business is around $300.[su_table responsive="yes" alternate="no" fixed="yes"]

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How much does it cost to start a laundromat business?

Starting a laundromat can cost nearly $1 million to get started and about twice that over the first five years. The building, equipment, and utilities are most of the cost.[su_table responsive="yes" alternate="no" fixed="yes"]

[/su_table]Check out our interview with Justin Pike of Ferndale Laundry:[su_youtube url="https://youtu.be/HVCJ-_VpGrY"]

How much does it cost to start a photography business?

You can start a photography business for as little as $500, which includes the price of the camera, a website, online photo gallery, and Adobe Photography Suite.If you want to upgrade to a higher end business with better equipment and a good marketing budget, you should expect to spend around $45,000 the first year. It’s even higher if you want a good studio, however.[su_table responsive="yes" alternate="no" fixed="yes"]

[/su_table]Check out our interview with a couple that started their own photography company:[su_youtube url="https://www.youtube.com/watch?v=EUcv1HAAbns"]

How much does it cost to start a handyman business?

Most places require handymen to be licensed contractors, so you can get started for as low as $2,750 without risking violating laws, but you can expect to spend around $40,000 during the first year if you really want to do it right.[su_table responsive="yes" alternate="no" fixed="yes"]

[/su_table]Check out our interview with Caleb to find out how he makes $125K per truck:[su_youtube url="https://youtu.be/leUta_q_MPQ"]

How much does it cost to start a soap business?

Soap businesses are fairly inexpensive to start. You could start making soap for under $100 and build from there. Successful business owners will spend nearly $70K in their first year of business to make around $200K. Check out the TruIC blog for the steps to start a soap business.

Small Business Owners Funding Resources

Now that you know the costs associated with starting a business, check out some of our resources for finding funding.

• Business Credit: Check out our preferred lending partners to get small business loans or a business credit card.
• Business Hub: Learn how to start a business entity, get insurance, and estimate a company’s revenue in our hub.
• Small Business Administration: Get information from the SBA on grants, loans, and local business resources.
• Evaluate Funding Options: Whether you are using a personal savings account or looking for alternative funding methods, check out our funding blog.

What Type of Business Will You Start?

We’ve covered the typical expenses associated with the costs of starting a business. Now it’s time to examine your personal expenses and cash flow to cover the filing fee and other business costs.Make sure to follow our YouTube channel and blog for more great information on how to start a business.Which business do you think is a worthwhile investment? How will you manage the financial implications of starting a new business?

Business ideas

Clients pay hefty sums for a good residential painting company. Want to know how to start a painting company and make $10,420 per hour?

We’ll show you how Carmelo Marsala started Spray-Net and makes over $21 million per year. He discusses his painting services, pricing, and how to get painting jobs. Along the way, he shares a bit of his business philosophy.

[su_quote]You can’t fail if you don’t quit.[/su_quote]

Read on to learn how to get started in painting from a business owner who has trained more than 117 franchisees to use his patented painting process for roofs, vinyl, and other unique materials.

[su_note note_color="#dbeafc"] Click on any of the links below to jump to that section, or just continue reading.

• Case Study: Spray-Net
• UpFlip exclusive Spray-Net franchise
• Learn about the painting industry
  • How much does it cost to start a painting business?
  • Do painting business owners make good money?
  • Do painters need to be licensed and insured?
  • What equipment do I need to start a painting business?
• How to start a painting business
  • Step #1. Learn professional house painting skills
  • Step #2. Research the market
  • Step #3. Create a painting business plan
  • Step #4. Consider painting business names
  • Step #5. Choose your business structure
  • Step #6. Get a painter’s license
  • Step #7. Open a business bank account
  • Step #8. Get painting business insurance
  • Step #9. Establish painting services and prices
  • Step #10. Choose your painting equipment
  • Step #11. Set up accounting and bookkeeping
  • Step #12. Invest in painting business software
  • Step #13. Advertise your painting business
  • Step #14. Get your first customers
  • Step #15. Document everything
  • Step #16. Hire subcontractors or employees
• Spray-Net franchise offer
• Painting business influencers
• Painting business resources
• Start your own painting business [/su_note]

Case Study: Spray-Net

Straight out of college, Carmelo became a franchisee for the painting company College Pro. He realized exterior vinyl painting was something that was missing in the industry. He started digging into why and found that the standard paint production process just doesn’t work for vinyl application.

Carmelo started asking why additives weren’t added on site to adjust to weather conditions, and he kept hearing the same thing:

[su_quote]That’s just how it’s always been done.[/su_quote]

He decided to reimagine the process and formulate his own paint. Spray-Net was born, and today he makes around $21 million per year selling painting franchises and training the franchisees. There are now more than 130 Spray-Net locations in the U.S. and Canada.

Check out our interview with Carmelo below.

If you like how Spray-Net approaches the painting industry, consider our exclusive offer.

UpFlip exclusive Spray-Net franchise

We’ve partnered with Carmelo to offer you an exclusive opportunity to get a Spray-Net franchise and save.

Learn about the painting industry

How much does it cost to start a painting business?

Though car painting and artistic painting can be viable business options, in this guide, we’ll be covering house painting businesses.

Starting a house painting business requires startup costs between $50 and $35,000, depending on the type of painting business and whether you have the tools and equipment to start painting.

Painting companies that need a shop could cost much more than $35K because you’ll need to put a deposit on the space, remodel, and furnish the space. That's why many people consider starting a painting business from home. Costs will vary based on the region.

The basic painting supplies, like brushes, drop cloths, extension poles, paint trays, and rollers, aren’t that expensive. The main costs will be a vehicle, business formation, and insurance when you first start. You’ll save a lot of money if you already have a vehicle.

Do painting business owners make good money?

Yes, painting business owners can make great money, but it depends.

According to business research firm IBIS World, the average painting company makes about $140K per year with a 6.9% profit margin, which isn’t very good. Successful professional painters can make much more though. Carmelo told us about Spray-Net’s earnings.

[su_quote]The company makes $10,420 per hour. First-year franchises make around $500K [in] revenue per year, while older franchises average $1.2M. Gross margin is 59.44%.[/su_quote]

That means first-year painting business owners can take home over $100K in net profit. The older franchises are making about 2.5 times that. We came to these numbers by multiplying the revenue by the gross margin and then subtracting 40% (20% for taxes and 20% for additional business costs).

Do painters need to be licensed and insured?

Make sure to ask a licensed attorney about the requirements in your location, but most states require contractors to be licensed and insured. Make sure to register as a contractor if it is required in your location.

At a minimum, you should carry $1M per occurrence or $2M in lifetime general liability insurance to protect against damage done to clients’ property. In addition, you’ll probably need workers' compensation and commercial automotive insurance.

What equipment do I need to start a painting business?

You’ll want commercial painting equipment when you start a painting company. Some of the equipment you’ll need includes:

• Brushes
• Drop cloths
• Extension poles
• Paint trays
• Rollers
• A truck or van
• Painters tape

Spray-Net has additional painting equipment requirements, including sprayers and mixers, which are necessary to mix and spray the paint on location.

Their painting process is patent protected, so if you want to use their painting equipment you’ll need to buy a Spray-Net franchise.

How to start a painting business

Starting a painting business requires you to:

1. Learn professional house painting skills.
2. Research the market.
3. Create a painting business plan.
4. Consider painting business names.
5. Choose your business structure.
6. Get a painter’s license.
7. Open a business bank account.
8. Get painting business insurance.
9. Establish painting services and prices.
10. Choose your painting equipment.
11. Set up accounting and bookkeeping.
12. Invest in painting business software.
13. Advertise your painting business.
14. Get your first customers.
15. Document everything.
16. Hire subcontractors or employees.

Get ready to learn how to start a painting business.

Step #1. Learn professional house painting skills

You’ll need to learn how to paint professionally to avoid making mistakes that cost you time and money. Potential customers expect you to protect their property and don’t want to request touchups after you declare the job done.

Make sure to develop painting skills, like:

• Protecting the space
• Knowledge about acrylic, latex, and oil paints
• Using primers for interior painting (some exceptions apply)
• Properly using paint brushes, rollers, and sprayers
• Scraping, sanding, and patching
• Applying an even coat
• Cutting paint

And don’t forget to always paint a room from top to bottom.

Step #2. Research the market

This article is a good start for understanding the market and financial viability of a painting company. You’ll want to do more research to understand whether a painting business will be successful in your area.

Research the number of local painting businesses and their reputations, pricing, and services. You’ll also want to know how many area homeowners there are, or the number of potential commercial clients.

Understanding how others market their painting companies will help you manage your painting business so you can differentiate your marketing strategy from the rest of the pack.

Step #3. Create a painting business plan

Painting business plans help you, lenders, and your employees understand the company’s values, unique value propositions, and intended operations.

You can make a simple one-page business plan just to help you keep your business on track, or you can create a more extensive business plan for when you apply for business loans.

Carmelo told us:

[su_quote]I was young and gung-ho and didn’t have a plan. But now, I warn people [that] failing to plan is planning to fail.[/su_quote]

Learn more in our business plan writing guide.

Step #4. Consider painting business names

You’ll need a professional name for your painting business. Your business name will be how people recognize the business. It should be fun, easy to spell, and identifiable as a painting company.

You should look up your painting company name ideas on the United States Patent and Trademark Office website and other search engines to make sure the business name is available. Then you’ll want to choose your business structure and register your business.

Step #5. Choose your business structure

Painting contractors will need to register their painting business with their Secretary of State and potentially their local government. You have a few business structure options when starting a painting business, but the most common types are a limited liability company or sole proprietorship.

A limited liability company makes your painting business a unique entity (as long you keep your personal and professional finances separate). This prevents you from being personally liable if something occurs within the business. There are also tax benefits to a business being a separate entity.

Meanwhile, a sole proprietorship is a business structure where you and the house painting business are one entity, which means if an accident happens, your personal assets can be taken to reimburse the client or employee.

Learn more in our guide to business structures.

Step #6. Get a painter’s license

Many locations require you to become a licensed painter when starting a painting business.

A painter's license is just a business license that requires you to prove you have the insurance your area requires you to have. The best insurance to cover everything is often a business owner’s policy, but we’ll discuss insurance more below.

There may be other requirements, including testing or job experience, depending on the location.

Step #7. Open a business bank account

You’ll need a business bank account to keep your personal and business expenses separate. You can choose to get a business bank account from:

• Brick-and-mortar banks: These banks are local to you, have higher probabilities of approving loans, and are easier to deposit cash.
• Online-only business banks: A business owner can benefit from an online bank with lower fees and higher interest rates on savings, but it’s harder to deposit cash and get a loan.

Step #8. Get painting business insurance

A successful painting business needs insurance to protect the business owner, their employees, and their commercial and residential painting clients. You might be wondering, what insurance does a self-employed painter need?

The small business insurance you need when starting a painting business is:

• General liability insurance: This coverage protects you if your painting company accidentally damages or hurts a non-employee. It is typically a $1M per occurrence or $2M for a lifetime policy, but some local governments or commercial clients may require higher limits.
• Workers compensation insurance: You’ll want this in case anyone gets hurt on the job. It will cover their injuries and their wages as long as they weren’t negligent or intoxicated. This is mandatory in nearly every state.
• Unemployment insurance: This insurance protects workers who get laid off. It’s required by law in every state.
• Commercial auto insurance: You’ll need separate car insurance for your business vehicles.

Many of these can be combined into one plan with a business owner’s policy. You can learn more in our business insurance guide.

When you’re ready, we suggest going to Simply Business to get quotes from the largest insurance companies in the world.

Step #9. Establish painting services and prices

At this point, you have a business entity, business license, and insurance. You can operate your own business, but what services are you going to offer, and how will you price painting jobs to establish positive cash flow?

To give you an idea, we’ll cover Spray-Net’s services and pricing.

Spray-Net offers three main services:

• Exterior painting: They have spray coatings that work on exterior vinyl, stucco, brick, and doors or glass windows.
• Kitchen cabinet painting: Spray-Net offers indoor services, as well, such as cabinet painting.
• Roof re-granulating: I wouldn’t think to hire painting contractors if my roof has issues, but Spray-Net paints roofs and says the painting job adds 15 years to the life of the roof. Check out their explainer video below.

They price each job either by the square foot or the number of cabinets. They also provide an online estimator so potential customers can get an idea of how much the job will cost.

Their average ticket for a painting job is $5,815, which puts it between the cost of replacing and standard repainting. They offer warranties nearly three times longer than most residential painting companies.

Before you start a new painting business, you should probably look at their professional painting work. You might want to consider their franchise business model to make more money painting houses.

Step #10. Choose your painting equipment

As we stated earlier, when you start a painting company, you’ll need:

• Drop cloths
• Extension poles
• Paint trays
• Rollers
• Truck or van
• Painters tape
• Sprayers
• Mixers
• Paint brushes
• Booties for your shoes
• Respirators

You can get these at Home Depot, Lowe’s, or any paint supply store.

Step #11. Set up accounting and bookkeeping

You’ll need a good accountant and bookkeeper to keep your financials in order and help you comply with taxes. Ask other business owners in your area who they prefer.

Step #12. Invest in painting business software

You'll need software to run your own painting company. Here’s some of the essential software:

• Website: You’ll want to build a website. Which means you’ll need a domain name from somewhere like GoDaddy.
• Customer relationship management (CRM) system: You’ll also need to have a CRM to manage all your customers. Small business owners tend to like Jobber or Housecall Pro.
• Accounting software: You’ll want to get QuickBooks to manage your small business’s finances and payroll. A small business owner can make themselves an employee to receive a weekly paycheck.
• Payroll processor: A modern small business will need to accept credit cards, which means you’ll need a payment processor like Square.

Step #13. Advertise your painting business

Successful businesses require marketing to grow. Most small businesses in the service industry will use a combination of digital marketing and print marketing.

Carmelo explained:

[su_quote]We started by knocking on doors. Then when we painted town hall [and got news coverage for it], which created more jobs.[/su_quote]

Then he expanded to digital marketing and traditional marketing.

[su_quote]We spend $3-4M across the system, but you should spend about 10% of your revenue on marketing. Facebook and Google are best. Then you’ll want to add [NextDoor].[/su_quote]

Many people want to focus on branding, but Carmelo has other advice about how to start your own painting business.

[su_quote]Facebook and Google gets you in the door—then tell people about your brand [while you are providing a quote].[/su_quote]

Once you hit the point of diminishing returns on ads, it’s time to start making YouTube videos. Another marketing technique that helps drive customers to your own painting business is appearing on business shows.

[su_quote]DragonDen (similar to SharkTank) reached out. I originally said no, but after a few times, decided to do it. The business was so crazy Microsoft thought our server was broken.[/su_quote]

Next, you’ll want to get your first job.

Step #14. Get your first customers

A house painting company can use all kinds of techniques to get that first customer. Carmelo preferred going door to door.

You might want to practice painting pitches before you start providing quotes for painting houses. Carmelo used the one below when starting a painting company.

[su_quote]I noticed [this thing wrong on the house]. Did you know we can fix it for $X?[/su_quote]

After explaining the hows and whys, Carmelo continued:

[su_quote]I’ll give you a quote, then give us a call anytime. We’ll be in the neighborhood, so you should see us around.[/su_quote]

It might help to bring some painter's business cards. We cover the places you can get low-cost house painting business cards in our inexpensive business card guide.

Carmelo went on to explain:

[su_quote]Customer service is the biggest thing. There is a luck component to business. It’s a lot of hard work, but sometimes it’s just a matter of being at the right place at the right time.

For instance, when we got the town hall job, it was because we painted the house of a person working there. I strategically priced it to get the job for publicity. Then we got the press to cover it.[/su_quote]

You’ll also want to be careful about how much you take on at first. One of the biggest mistakes you can make is growing your painting business too fast. Carmelo explained:

[su_quote]We grew so fast that I stopped paying attention to the numbers. We reached a point where I wasn’t able to pay for payroll, and I had to change that.[/su_quote]

Step #15. Document everything

Before you hire employees or subcontractors, you’ll need to make sure to document your processes so you can teach them. As Carmelo said:

[su_quote]It’s especially important to [document everything] if you have ambitions to scale.[/su_quote]

This can include creating videos explaining everything you do on a job, typing your processes out, creating interactive tutorials, or all of the above. Carmelo explained one method he uses for documenting the processes for his specialized services:

[su_quote]We put a QR code on every paint can for the painting business pro to learn how to use it effectively.[/su_quote]

Step #16. Hire subcontractors or employees

Unless you want a really small painting company that just covers your salary, you’ll need employees or subcontractors. That means you’ll need a payroll processor. You’ll also need to do interviews and background checks.

Carmelo told us:

[su_quote]I base my hiring decisions based on whether I like them. If I don’t, I’m not going to like working with them. The other stuff I can teach.[/su_quote]

You can learn more about hiring straight from a recruiter in our hiring how-to.

Spray-Net franchise offer

Now you know how to become a house painter. Want to skip all the learning about how to get painting contracts, the average cost of painting a room, and advertising painting services?

Carmelo has a special offer for UpFlippers who want to learn how to become paint contractors. You can get a Spray-Net franchise and save.

Painting business influencers

You can find painting influencers like Carmelo and check out their videos, blogs, and social media to help inspire your own painting business.

Painting business resources

It’s useful to pay attention to industry trends as you learn how to start a painting company. There’s no better way than participating in industry organizations like:

• Commercial Painting Industry Association: Annual membership is $395 and comes with a peer networking group, networking events, webinars, subcontractor reviews, and more.
• Painting Contractors Association: Annual membership is $499 and includes annual awards, painter training, a streaming service, event and industry discounts, a recruitment portal, healthcare options, a magazine, and safety templates.

Start your own painting business

We’ve discussed how to get into painting with minimal startup costs, our special franchise offer for starting a painting business with no experience, and painting business resources that will help you as you go.

Ultimately, it’s up to you to put together a plan, get the startup costs, and open your business legally.

Will you start a house painting company, school painting company, or another type of painting company?

Business ideas