Recently, several gyms have been forced to shut down. Some continued selling memberships and offering discounts to attract customers, only to announce their closure shortly afterward. In Hanoi, one gym was even sealed off after failing to pay rent and service fees.

Nguyen Van Duong, a former gym owner, said running a fitness center has never been easy. After one year in business, he had to close his gym. Including operating expenses and losses from liquidating machinery and equipment, he estimated that he lost more than $19,000.

According to Duong, some business models that worked around a decade ago are now showing their limitations as costs rise and competition intensifies. The market can no longer support the mindset that simply “opening a gym brings customers, and selling memberships brings money.”

Continuing to rely on outdated management and operating practices without updating business knowledge can expose gym owners to significant risks. When market conditions become difficult, customer numbers decline and revenue is insufficient to cover operating expenses, gyms can quickly run into cash-flow shortages and be forced to close.

Duong said rent is placing considerable pressure on gyms, particularly those occupying large premises. For a gym of around 500 square meters, monthly rent can range from about $1,900 to $7,600, depending on location.

At monthly rent of around $3,800, premises alone would cost approximately $45,400 a year. On top of that, operators must pay for electricity, water, staffing, equipment maintenance, marketing and service fees.

When customer numbers decline or revenue becomes unstable, operating expenses - particularly rent and staffing - can quickly put pressure on cash flow, making it difficult for a gym to stay in business.

Learn to be a manager, not just a personal trainer

Duong said one weakness he has observed at many gyms is that their owners started out as personal trainers. They may have strong professional expertise but lack sufficient management knowledge. Holding professional fitness qualifications does not necessarily mean someone has the skills required to run a business.

Once they are running a company themselves, they may still tend to devote much of their time to technical work, sales or personal training instead of focusing on cash flow, staffing, costs and business strategy.

“If a gym owner is only good at personal training but does not know how to manage a business, that can ultimately be what kills the gym. Anyone who wants to stay in the business for the long term needs to learn management from the outset,” Duong said.

He said gym owners need to shift from the mindset of a fitness professional to that of a business operator. Essential skills include planning, developing a business strategy, managing finances and cash flow, organizing staff and overseeing operations.

Gyms also need to restructure toward leaner and more flexible models rather than competing to open large premises without making efficient use of every square meter.

“What matters is not how large the gym is, but how efficiently every square meter is used and how effectively the business can generate cash flow,” Duong said.

Duy Anh