How to Start a Personal Training Business in England

If you have a passion for exercise, physical self-improvement, and the fitness industry, you might want to start your own personal training business. This article will explore general points all aspiring business owners should consider before they launch their enterprise. It will also address some legal considerations for operating a personal training (PT) business. 

General Considerations             

Your Business Plan

All business owners ought to draft a comprehensive business plan. You can think of this plan as a map to follow in the first few years after your business launch. 

Much more can be said about what to include in your business plan, but you should typically consider: 

• what your start-up costs might be; 
• your general expenses and outgoings;
• how you will finance the up-front costs of the business; 
• how much you need to work each week and charge your clients to make a profit;
• whether you need qualifications and certifications; 
• who your targeted clients will be, for instance, novice gym-goers, those with disabilities, or experienced athletes;
• where you and your customers will train. For example, will you use a home gym or will you need a facility open to the public? If the latter, on what terms will you use the facilities?;
• the scope of your services;
• what your sales and cost projections will be; 
• how you will build, develop, and market your brand; and
• the extent to which you will need to hire employees or partner with others. 

For instance, ask yourself the following questions:

• Will you seek investments from outside investors up-front? 
• What is your forecasted first-year cash flow? 
• Have you run a break-even model? 

Startup Costs and Financing Considerations

Your startup costs will largely depend on whether you intend to operate as an independent trainer or freelance (contract) with an established gym. Likewise, if you intend to work as an independent PT, you will need your own space and equipment. 

Consequently, you will need more money up-front to find somewhere to lease and purchase the right gym equipment such as weights, machines, and bags. Your financing options may be limited if you do not have ample savings. You may be able to obtain a small business loan from a bank, but this will likely be secured on your personal assets and guaranteed in your private capacity. If your business fails, even if you operate through a limited company, you may have to sell your personal assets to repay the bank loan. 

Business Structure

Your business structure is the legal framework that you will trade through. The four most common business structures are:

• sole-trader;
• unincorporated partnership;
• limited company; and
• limited liability partnership (LLP). 

A sole trader is an unincorporated business structure, whereas a limited company is incorporated. Be aware of the implications of being a sole trader versus trading through an incorporated company, particularly as it relates to limiting your liability.  

As a sole trader, there is no distinction between your personal and business assets. If a customer wishes to sue you, your business assets will be at risk, and so will your personal assets.

If you trade through a company (or, less likely, an LLP), there is a legal barrier between your personal and business assets. Incorporated businesses are also easier to scale, but this might not be relevant if you have no intentions of hiring others and building a large brand. The downside to trading through incorporated structures is that you must spend more time meeting the administrative rules required by corporate law. 

Another consideration is if you intend to contract with a partner gym, they may provide certain coverage (or require you to obtain a policy). If you intend to run your own site, incorporating your business may make more sense because you will likely have a commercial lease. 

Specific Considerations 

Obtaining Insurance

As you will be coaching others on how to properly exercise, the risk of injuries is quite high. If your advice or supervision is negligent, you can be held liable. 

Therefore, you should speak to an insurance broker to ensure that you are covered for:

• personal injury to yourself or others;
• damage to your property or another’s;
• professional indemnity; and 
• if you employ others, an employer’s insurance policy.

Qualifications

There is no law that requires you to obtain a qualification simply to provide personal training instructions to the public. However, most successful trainers hold certificates from either the Register of Exercise Professionals (REPs) or the Chartered Institute for the Management of Sport and Physical Activity (CIMSPA). Therefore, from a commercial perspective, you may want to consider obtaining certification from one or both of these institutions. 

Additionally, if you intend to contract with a gym, they may require that you have some form of certification. 

Licensing and Trading Laws

Your local authority may require you to apply for a trading licence if you run your own site. A commercial solicitor can help you navigate applications you may need to file to lawfully begin trading. 

Holding Your Self Out

Under no circumstances should you hold yourself out to have any medical licensing or certificate that you, in fact, do not. Nor should you suggest having qualifications if you once held a relevant qualification that has lapsed. Otherwise, you risk severe civil and criminal penalties.

Renting a Gym 

Unless you intend to run your gym out of your home, you will need to negotiate a lease for the premises you intend to use as your training space. In addition to negotiating the rent, other common terms include:

• any service charges; 
• what insurance provisions you and the landlord will need to have in place; 
• which party is liable for keeping in repair certain elements of the premise; and 
• the extent you can sublease the premises or sell the lease to a third party. 

Running a Gym Out of Your Home

You will have more responsibilities if you intend to work independently and not through a gym. Again, you may consider incorporating your business to limit your liability. 

In addition, if you rent your home, standard residential tenancy agreements usually prohibit running a business from your home without the landlord’s approval. Typically, your landlord cannot withhold reasonable consent. However, they could argue that using your home as a gym may be disruptive or risks damaging the premises.  

Finally, if you have any contents or building insurance, the policy may not cover you if damage or loss happens in the course of you running your business. Therefore, you may need to obtain a second policy. 

Key Takeaways

You should ensure that you have a well-organised business plan in place before you take steps to start your PT business. In particular, consider whether you will work independently in your own training gym or if you will partner with a gym as a freelance contractor. Likewise, you should determine your startup costs and how you will pay them. Other important elements to consider include: 

• what business structure will you use;
• whether you should obtain industry certification; and 
• what types of insurance policies are relevant. 

If you need help launching your own personal training business, our experienced business lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.

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