Niche Gyms

When Jane Silber decided to get help for her 9-year-old daughter's weight problem, she found that lots of gyms didn't allow children to come in and work out -- and the ones that did welcome children didn't have the right size equipment for them. Mindful of Centers for Disease Control findings that the percentage of overweight children has tripled since 1980, Silber, 41, recognized a hot business opportunity. In August, she opened Generation Now Fitness for tweens and teens in Chatsworth, California, equipping it with kid-size, fun-to-operate exercise equipment, a smoothie bar, a study room and other amenities. "I wish something like this was around when I was a kid," says Silber, a former restaurateur who projects $1 million in first-year sales for her gym.

The kid gym concept is a hot one right now -- in Entrepreneur's "Biz 101" column, we've been covering the exciting buildup to Karen Jashinsky's Los Angeles-based O2 MAX Fitness club for teens, featuring workouts as well as an internet cafe and tutoring--but other niche gyms are sizzling, too. "[The] business model focuses not on the general consumer, but on one demographic, and then builds the club and all its services around that profile," says Kathleen Rollauer, senior manager of research for the International Health, Racquet & Sportsclub Association in Boston. "The prime example is Curves, which came on the scene because [it] recognized the barriers to women in a typical health club." Nifty After Fifty in Whittier, California, is based on another niche, offering people over age 50 physical and mental exercise routines, a driving-skills program, physical therapy and social activities.

If you're thinking about starting a niche gym, get ready to break a sweat -- and incorporate these startup tips into your routine.

Know your niche. Patrick Ferrell, 50, who started Overtime Fitness for teens in Mountain View, California, is the father of three teenagers, so he already knows their issues well. But if you're thinking of starting a gym for kids and don't have any of your own-- you want some extra insight -- you might volunteer as a sports coach, as Ferrell does.

Do your research. "You really can't do enough of it," says Ferrell, who expects sales to reach $750,000 in 2007. "You have to home in on the key characteristics of your target demographic." His best sources of information have been the International Health, Racquet & Sportsclub Association, as well as fitness equipment vendors and fitness attorneys.

Offer amenities. In addition to fitness equipment, many niche gyms offer a number of amenities and ancillary services specially targeted to their demographic. For instance, Overtime Fitness offers its teens classes on stress management, job interviewing, test taking and SAT prep, and it even has a hot sound and video system to make teens' favorite tunes reverberate from rock wall to rock wall.

Fnd the right location. Silber hopes to expand her gym for tweens and teens to more locations and recommends doing lots of demographic research for your location. For instance, she's focusing on areas that have a high concentration of kids as well as high levels of childhood obesity.

Tink of special promotions and partnerships geared toward your niche. Silber offers a Saturday "date night" to parents, encouraging them to drop off their kids for a few hours and go out to dinner, and has partnered with area restaurants to offer discounts to parents.

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