If you have a passion for fitness, becoming a personal trainer can transform your interest into a fulfilling career and successful business. According to the U.S. Bureau of Labor Statistics, employment of fitness trainers and instructors is projected to grow 14% from 2023 to 2033, significantly faster than the average for all occupations.
Here are some things to know about starting a personal training business.
Step 1: Find your niche to stand out in the personal training market
Although there are many opportunities in the personal training sector, you will face stiff competition and must find a way to diversify your offering. For example, instead of providing general personal fitness services, consider specializing in a particular area, such as senior citizens, new moms, athletes, or people with disabilities.
Focus on a segment that you're passionate about. If you’re happy and fulfilled with your work, your clients will appreciate you and your services more.
Do market research to help refine your niche. What are your target market’s needs, wants, and challenges? In addition, check out the competitive landscape; this will help you identify market gaps and understand your strengths and weaknesses, price points, and marketing strategies.
Step 2: Develop a comprehensive business plan
A business plan can help clarify your vision for your personal training business, as well as how you will achieve your objectives. A business plan is also essential if you anticipate needing financing for your business. Here’s a suggested outline for a personal training business plan:
- Mission statement: A short paragraph or bullet points about your core values and training philosophy.
- Company description: Include detailed information about your personal training business and explain your competitive advantages
- Services and pricing strategy: It's important to find the right mix of services and pricing to make sure you're bringing in the most revenue while keeping your clients happy. As a personal trainer, you can set fixed prices, create different pricing tiers based on the services you offer, or use a flexible pricing model where you negotiate individual prices.
- Organization and management: How your company will be structured and who will run it. For example, will it be a partnership, LLC, or S-Corporation? Who will be responsible for day-to-day management? (More about business structures below.)
- Market analysis: What is the industry outlook? Who are your target customers? Who is your competition?
- Financing plan: Define your funding requirements and include a detailed financial statement and analysis.
- Marketing strategy: Describe your plan for reaching prospective consumers and turning them into customers. Include your strategy for differentiating yourself from the competition.
Step 3: Secure the proper certifications
Most personal trainers have a certification specific to their specialty, such as yoga, Pilates, kickboxing, etc. Be sure to get the appropriate certifications before you start your business or work with clients. Several organizations offer certifications. For example, the National Commission for Certifying Agencies (NCCA) accredits certifying fitness and wellness organizations, including certifications for personal training.
Certification typically involves a written exam to test your knowledge of proper exercise techniques and the human anatomy, as well as your ability to assess your clients’ fitness and develop appropriate exercise programs. You may also be required to teach a class or host one in-person or online.
Other certifications are also crucial, including cardiopulmonary resuscitation (CPR), first aid, and automated external defibrillators (AED).
Step 4: Choose a business structure
How you structure your personal training business impacts taxes, liability risk, and daily operations. Choose a structure that balances legal protection and benefits.
The four most common business structures for a personal training business are:
- Sole proprietorship: In a sole proprietorship, the business is owned and operated by one individual with no legal separation between the owner and the business. The owner retains all the business profits but is personally responsible for all the debts and obligations of the company.
- General partnership: A general partnership is the most straightforward form of partnership, automatically established when two or more individuals engage in a business venture for profit. As with a sole proprietorship, the owners bear unlimited liability for the business's debts.
- Limited liability company (LLC): This type of business setup is popular in the personal training industry. An LLC gives you limited liability protection, which means your personal assets are safe from any debts or problems with the company, and it also has pass-through taxation.
- Corporation: A corporation is a separate legal entity. It's owned by shareholders, which means the owners aren't personally responsible for any debts or obligations the corporation has.
For more information on business entity structures, read Comparing company types.
Step 5: Understand the legal requirements of your personal training business
Your personal training business may be subject to various legal requirements depending on your business structure and the location of your business.
- Licenses and permits: Regardless of your business entity type, it's crucial to comply with licensing and registration requirements. Your personal training business will likely need a general business license at the local or state level. Even if you operate from home, you might be required to obtain a home occupation permit in certain jurisdictions.
- Sales tax: While most states don’t subject personal training businesses to sales tax, each state has different rules that can change over time. You may need to register with your state’s Department of Revenue.
- DBA filing: If you intend to do business under an assumed name (also known as a trade name or fictitious business name), a DBA filing must be made with either the state or local jurisdiction.
- Obtain an EIN: If you plan on hiring employees, you must also obtain an EIN, register with the Department of Labor in your state, and handle payroll. You will also need an EIN if you form an LLC or corporation.
Other requirements include getting a registered agent and filing a Beneficial Ownership Information Report with FinCEN.
For more information, see What are the legal requirements for starting a small business?
Step 6: Open a business bank account and credit card
Maintaining a business bank account and credit card is crucial for keeping personal and business transactions separate and ensuring legal protection for you.
By keeping your finances separate, you can benefit from liability protection and secure your personal assets in case of legal action against your business, even if you operate as a sole proprietorship.
Additionally, having a business bank account and credit card is essential for building business credit, often required for transacting with suppliers and vendors. Consider opening dedicated business accounts when you start incurring business expenses or receiving income.
Step 7: Prepare contracts and other necessary documents
Most personal training businesses require their clients to sign contracts before services are offered. Your contract should encompass payment terms, the scope of services offered, and cancellation policies. In addition, include language that stipulates you can’t guarantee specific results for your clients (such as weight loss or health benefits). Also, consider asking your clients to sign a liability waiver.
Step 8: Obtain any required insurance
Remember, forming your business as an LLC or corporation can shield your personal assets in most cases. However, it's important to note that this does not safeguard your business from potential risks.
Personal trainer insurance can provide protection from claims related to bodily injury, property damage, or professional errors made by clients. As a personal trainer, consider both general liability insurance and professional liability insurance. If you have employees, obtaining unemployment insurance through the state’s Department of Labor is likely necessary for your business.
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BizFilings is committed to simplifying the process of starting a business, allowing you to concentrate on what you enjoy. For additional details, please refer to our state guides for LLCs and corporations.
