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Writing a Business Plan
While it may be tempting to put off, creating a business plan is an essential part of starting your own business. Plans and proposals should be put in a clear format making it easy for potential investors to understand. Because every company has a different goal and product or service to offer, there are business plan templates readily available to help you get on the right track. Many of these templates can be adapted for any company. In general, a business plan writing guide will recommend that the following sections be incorporated into your plan.
The executive summary is the first section that business plans open with, but is often the last section to actually be written as it’s the most difficult to write. The executive summary is a summary of the overall plan that highlights the key points and gives the reader an idea of what lies ahead in the document. It should include areas such as the business opportunity, target market, marketing and sales strategy, competition, the summary of the financial plan, staff members and a summary of how the plan will be implemented. This section needs to be extremely clear, concise and engaging as you don’t want the reader to push your hard work aside.
The company description follows the executive summary and should cover all the details about the company itself. For example, if you are writing a business plan for an internet café, you would want to include the name of the company, where the café would be located, who the main team members involved are and why, how large the company is, who the target market for the internet cafe is, what type of business structure the café is, such as LLC, sole proprietorship, partnership, or corporation, what the internet café business mission and vision statements are, and what the business’s short-term objectives are.
Services and Products
This is the exciting part of the plan where you get to explain what new and improved services or products you are offering. On top of describing the product or service itself, include in the plan what is currently in the market in this area, what problems there are in this area and how your product is the solution. For example, in a business plan for a food truck, perhaps there are numerous other food trucks in the area, but they are all fast –food style and unhealthy so, you want to introduce fast food that serves only organic and fresh ingredients every day. This is where you can also list your price points and future products or services you anticipate.
The market analysis section will take time to write and research as a lot of effort and research need to go into it. Here is where you have the opportunity to describe what trends are showing up, what the growth rate in this sector looks like, what the current size of this industry is and who your target audience is. A cleaning business plan, for example, may include how this sector has been growing by 10% every year due to an increase in large businesses being built in the city.
Organization and Management
Marketing and sales are the part of the business plan where you explain how you will attract and retain clients. How are you reaching your target customers and what incentives do you offer that will keep them coming back? For a dry cleaner business plan, perhaps if they refer customers, they will get 10% off their next visit. In addition, you may want to explain what needs to be done in order for the business to be profitable. This is a great way of showing that you are conscious about what clear steps need to be taken to make a business successful.
Financial Projections & Appendix
The financial business plan section can be a tricky one to write as it is based on projections. Usually what is included is the short-term projection, which is a year broken down by month and should include start-up permits, equipment, and licenses that are required. This is followed by a three-year projection broken down by year and many often write a five-year projection, but this does not need to be included in the business plan.
The appendix is the last section and contains all the supporting documents and/or required material. This often includes resumes of those involved in the company, letters of reference, product pictures and credit histories. Keep in mind that your business plan is always in development and should be adjusted regularly as your business grows and changes.
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How to Choose a Phone Plan for Your Business
Every company needs an effective phone plan for their business. It’s important for all your employees to be able to communicate with each other. You also need to ensure that you can take phone calls from clients when they need to reach you. There are many office, VoIP and cell plans available, and your choice depends on what’s best for you. Here’s how to choose the best phone plan for your business.
The Types of Business Plan
If you’re looking for the perfect business phone plan, you need to think about which will benefit your organization most. There are loads to choose from and each have their advantages and disadvantages. It’s essential for businesses to have the best communications systems, because without this you’ll lose potential customers. Many people choose systems based on their convenience, but also look at how effective they are, the costs and if the system is up to date.
With so many options, businesses rarely know where to start. However, your primary goals will enable you to find the best phone plan for your business. Do you have a large team and need a strong internal communications system? Is saving money your primary goal? Here are some business phone plans, and their benefits.
Voice Over Internet Protocol (VoIP)
VoIP is taking over the business world, and many companies are ditching their landline service for the internet-based phone solutions. While making international calls on landlines is expensive, VoIP enables you to call anywhere in the world for no extra cost. Phone calls take place over the internet, and you can reach your employees wherever they are.
There are many VoIP solutions, including basic packages, options for mid-sized businesses and high-end solutions. It’s important to think about which solution is best for your business and avoid any hidden costs associated with high-end solutions. VoIP is great for companies and there is a range of technological benefits you won’t find with other providers. Search online to find the best VoIP providers.
Private Branch Exchange (PBX)
PBX uses hardware to route all calls through the office to and from a central connection. It connects all employees and enables easy transfers. PBX has many benefits, including its cost-effective solutions. Employees can make internal calls without the needs of connecting to an external network. This means that businesses can save money on phone calls, which is especially useful for small companies.
There are automatic capabilities, meaning PBX systems can automatically route calls. Basically, PBX offers an all-in-one solution, but it isn’t as technologically convenient as VoIP solutions. It depends on your needs, but remember PBX systems are best if you use over 12 phone lines. Smaller businesses might find that installing and maintaining a PBX system is too expensive.
Small businesses have one thing on their mind; money. They need to find cost-effective solutions to grow their business, but not bankrupt them. Most small companies use manual key-systems to route phone calls. As you add more lines, you’ll find a manual system less convenient and harder to manage.
Key systems are great when businesses are starting out, but if your business is growing then it’s best to choose between a PBX or VoIP solution. There are many positives to manual key systems, and providers are combining technology with the systems to make them better for small business owners to maximize their internal and external communications.
Is the price right? That’s what you should be considering. Many phone providers will offer comprehensive packages for both office and cell use. Combining these will save you money in the long-term and enable you to streamline your communication procedure. The more technology you want, the higher the price. You should weigh up the benefits of cost and convenience when making your decision.
Speak to providers and ask them what bundles they offer. You’ll want to supply your employees with cell phones if they travel out of the office regularly. Choosing a phone system doesn’t have to be complicated if you know what you’re looking for and consider your price limits.
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Writing a Gym Business Plan? 10 Step Guide To Gym Business Strategy
Backed by industry standards
If you’re reading this, you’re probably the type of person who takes exercising seriously.
Has the idea of starting a gym suddenly sparked your interest? Or perhaps it’s a lifelong ambition of yours, and you are now ready to make a move.
Either way, what’s brilliant is that you’ve picked the right door. Because the first step you need to take is creating a gym business plan .
As the notorious American football coach, Paul “Bear” Bryant, once said, “It’s not the will to win that matters—everyone has that. It’s the will to prepare to win that matters.”
Knowing the structure of your business, understanding your target market and Unique Selling Point (USP), forecasting your financials, and hashing out any other details about your future gym: these are the vital components needed to create a valuable business plan.
Are you ready to make a name for yourself in a £4.7 billion industry which is steadily growing? Then let’s get started.
But before we get on the treadmill….
Ask yourself: can you afford to run a gym? This venture could see you outlay on equipment, personal trainers, class instructors, insurance policies, property fees, and more, depending on the scope of your gym.
If you’re comfortable financially, think about how much personal time you are willing to sacrifice, especially in the beginning. Maintaining that work/life balance is one of the greatest challenges of starting any business; you’ll probably need extra working hours to become fully operational.
Remember, though, that money and time won’t be enough to pass ‘Go’ if you don’t have good people skills, a savvy head for marketing and sales, or the ability to manage your finances (unless you have extra cash to splash out on skilled people …).
But here’s the good news: it will be worth the money and the hard work if this is your passion. And a big or small gym business plan is a reliable way to make that dream a reality.
Your Gym Business Plan Template
The latter group is crucial as Score, an entrepreneur mentoring enterprise, explains: in order to raise the capital you need for your gym to grow, “individuals or banks want a realistic forecast for when they will be reaping on their capital” to confidently invest in your gym.
Below is a comprehensive template for your business plan. Include all ten stages and you’ll fly. Miss one and you’ll fall. Because they are all equally relevant to your future as a gym owner.
Step 1: Executive Summary
Your executive summary needs to shout:
The what – your goals
The why – your mission
The how – what’s going to make you a success story
The bigger picture – your vision
It has to be attention-grabbing, to the point and clarifying. Which is why you need to keep it short. But that doesn’t mean you should rush this part of your business plan. It is your business pitch after all, as the Telegraph explains:
“The fact of the matter is that decision makers can only read so much in the course of a day. So if authors want their work to be paid attention, they must first sell it with a convincing pitch. To this end, executive summaries are a necessary and essential part of running a business, from start to finish.”
If you’re itching to say more on your goals and vision, don’t panic. You can flesh out these points in your company overview.
Step 2: Company Overview
This is where you put passion onto paper.
In your executive summary, you briefly outlined your vision and mission statement. In your company overview, you can elaborate on these points for further insight. Think of your vision statement as if it were a tagline on your future website. Cover:
- The purpose of your gym
- Who it’s going to be for
- How you’re going to accomplish your business aims
Your mission statement can be more personal. Talk about your desired outcome for the business. Here’s an example from Nike :
“To bring inspiration and innovation to every athlete in the world. If you have a body, you have an athlete”
Consider the main reason you decided to go into this industry and share it. Is there something you want to change about the fitness world? Or make it better?
Then give your readers a brief word on your history:
- What have you done previously?
- Have you had any other businesses?
- What is your current status?
Again, this is useful for your investors and partners in understanding your journey and future plans. The more they know, the more they trust you.
Then you need to outline your strategy: discuss what services you plan to offer in the beginning, and how you might approach development and new offerings. Perhaps you’ll need to hire an instructor or build a new facility like a spa or studio. This will be a valuable resource for helping you realise when or where you might need funding or extra staff.
Get another green tick for thinking about ways to increase your market share. You could set up pro bono services with workplaces and schools, for instance. Then you might start to introduce a fee gradually: an efficient way to convert big target customers.
Whether you want to create a gym and spa business plan or any other kind of blueprint, an overview should communicate your planning objectives to potential bankers, partners, employees and financial backers.
Step 3: Management
Consider the positions you’ll need to fill and how these people are going to help your gym succeed..
What’s your employee ladder going to look like? What or who will they be responsible for? What incentives can you offer?
Follow this through into a summary that emphasises how their skills and management experience will solidify your business’s success.
Go back and read this section as if you are an outsider considering becoming a partner to this gym. Does the management structure make you feel satisfied and excited, or concerned?
If it’s the latter, explore how you can change this by making your chain of command stronger.
Step 4: Market Research and Marketing
If marketing isn’t your thing, motivate yourself with the knowledge that solid research and marketing strategies will help you map out a plan for growth.
Your first goal is to summarise your market research. Not quite there with your findings? Think about your location, existing gyms in the area, and your local demographic.
When you are ready, use this space to define your target market. It might be:
- Working professionals
- Senior executives
Or even a specific group, like cyclists. Then explore why this specific demographic would join a gym – i.e. for cardio.
Having done your market research, you should have a better understanding of your target audience. Now ask yourself:
- How will you gain their loyalty?
- What makes you special?
- What’s the best membership package you can offer?
- Is there a demand for special equipment?
Answer these in your plan and define your Unique Selling Point (USP). This should communicate what makes your enterprise a valuable investment opportunity.
Identify your marketing strategies here and you’ll feel more secure about raising your business’s income in the future.
Your marketing strategy might include niche services such as:
- Improving services
- Loyalty plans
- Website promotions
- Email marketing
- New equipment
And any other ideas you have to build your customer base and increase your revenue.
Step 5: Services and Amenities
Here are some examples of products you might buy:
- Gym equipment (treadmills, rowing machines, etc.)
- Specialist equipment (have the best equipment available to draw in members like body-builders, etc.)
- Food or drink products (energy drinks, health foods etc.)
- Personal training
- Classes (yoga, spinning, body pump etc.)
- Swimming pool
For bonus points: describe the benefits of your products and services. Perhaps this is a gym and spa business plan ; look to demonstrate why this added facility would be a valuable asset to your customers.
Next, you want to create a pricing list. The easiest way to do this is to bullet point the costs for specific products and services. This will lead you to your financial forecasting.
Step 6: Financial Projections
Create a menu for your gym. What do you need to spend your capital on? Leave no table unturned, and make sure you put an estimate next to each purchase.
Here are some key areas to get the ball rolling:
- Legal expenses
- Hiring costs
- Building work
- Gym Equipment
- Operational costs for the first three months
- Account software
Then it’s time to get real. Get out your calculator and write down how much you will need to successfully launch your gym. This will give you a clear indication of what you can achieve with your budget, and what you might need funding for.
Your next step in this part of your gym business plan is to highlight potential sources of income.
The idea is to reassure your investors, stakeholders and potential employees that you have a solid plan for your return on investment. Think about how much your services will bring in i.e. classes, a cafe, services, a spa and jot down your educated guess here.
You could also explore opportunities to sell products , such as health foods. You could produce your own protein shakes or energy bars, for example. Just ensure that if you do plan to sell food you keep in check with food hygiene standards.
Step 7: Financial forecasting:
“Your sales forecast is the backbone of your business plan. People measure a business and its growth by sales, and your sales forecast sets the standard for expenses, profits and growth.”
Outline your sales forecast for the first, second and third year of your business. It might also be a good idea to detail your active members predictions for your first year.
Make an educated guess based on:
- Unit sales per month
- Any relevant past data that you have
- Breaking down your purchases (as you will have done in the financial projections)
Step 8: Financial Strategy
How will you use your fees to increase enrolment? Perhaps you discovered that all the gyms in your area have higher prices than average. This would be a golden opportunity to add value to your business by being financially sensitive (you could lower your membership fees or have better offers than the competition).
You could also think about rewards for loyal customers, discounts for group registrations, and pro bonos (as we previously discussed).
Additionally, if you’re creating a gym and spa business plan , compliment your gym with discounts for the spa facilities (jumping in the jacuzzi after a workout session is a gym-goer’s dream come true).
Putting your pricing strategy on paper will make you feel more secure about the future of your gym. The Balance contributor, Darrell Zahorsky , agrees:
“The pricing strategy of your small business can ultimately determine your fate. Small business owners can ensure profitability and longevity by paying close attention to their pricing strategy.”
Step 9: Payment Options
How a customer pays for their gym membership or other fees is important. Use clunky, out of date and unregulated systems for processing payments and you’ll repel your customers.
If you do have a quick and painless booking system or banking platform in mind, make it known in this section of your gym business plan .This will instil confidence in your potential investors: with a seamless buyer experience in operation, your customers have an extra reason to be loyal to you.
Your most obvious choice is a managed direct debit service .
Because having automated payments in place ensures that bills are never forgotten, delayed or lost, allowing you to maintain a solid cash flow.
And the easiest way to integrate this into your business is to use a third-party to operate any direct debits on your behalf.
Take FastPay, for instance. Its simple user interface does wonders for user experience.
And since FastPay independently processes your payments, you’ll never have to chase down customers, giving you more time to focus on developing other areas of customer service. It’s also secure: customers are protected by the Direct Debit guarantee.
With a Direct Debit solution like FastPay in place, your customer retention level will rise. Why would they move to a competitor if paying for a class or gym membership through you is so effortless?
Step 10: Funding
Here are the key external resources you might consider to get funded:
- Personal savings
- Soft loans (family members, friends, gifts)
- Sponsorship from other business
Detail exactly where you plan to get your funding from and how much you are going to gain. And if you’ve previously made loan applications, make a note of them here for any potential investor to consider.
You’re One Step Closer to Cutting the Red Ribbon
With a big or small gym business plan that details everything you have learnt today, you’ll be unstoppable in your new venture. Because you now have a solid roadmap that:
- Will act as a point of reference for you when you have to make important decisions
- Be a resource to help you secure investment
- Give you security that you have explored all aspects of your new business
- Show partners or new employees which direction you aim to head in
Your Personal Checklist:
Before you leave, here’s a personal checklist to guide you through the next stages of running your own gym. Refer to it throughout the development of your business to ensure you don’t miss a thing.
- Write business plan
- Register business
- Apply for business license and permit
- Open business bank accounts
- Select online payment platform
- Obtain tax payer’s ID
- Purchase insurance
- Organise rental space / purchase facility
- Purchase / rent equipment
- Secure funding
- Set up Direct Debit service
- Recruit employees
- Draft contract documents and any other legal documents required
- Design company logo and brand
- Develop website
- Write website content
- Create accounts on social media platforms
- Design leaflets and brochures
- Organise branded uniforms
- Hold launch party
Starting any business is not without its challenges, but the rewards are more than worth it in the end. Sign up to a Direct Debit bureau and make collecting recurring payments from your fitness suite members a reliable, secure and pain-free process. It’ll be a weight off your mind.
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Gym Business Plans
Did you know each of these plans was created in LivePlan? Learn More
Fitness Equipment Business Plan
Circuit Fitness Importing is a start-up business that has been formed to become the exclusive importer of the Wega Corporation’s innovative Esercitazione Diritta fitness equipment.
Health Club Business Plan
Corporate Fitness is a service-oriented, start-up business based on the belief that healthy employees are more productive and efficient employees.
Gymnastics Instruction Business Plan
Gymnastics Jump-Start will offer tumbling, introductory gymnastics, and low-level competitive gymnastics instruction to children in Bouncetown.
Karate Business Plan
City Dojo offers group and individual classes in the art of karate and self-defense.
Martial Arts School Business Plan
Cents and Senseibility is a new value-priced Taekwondo martial arts school.
Physical Fitness Gym Business Plan
Ladies Only Fitness’ goal is to provide a gym for young mothers who are looking for a fitness environment that is focused on their unique needs.
Rock Climbing Gym Business Plan
Igneous Rock Gym is a start up rock climbing gym that is dedicated to creating an ultra-safe environment with properly trained staff.
Weight Loss Seminars Business Plan
Brushy Mountain Retreat offers a series of workshop programs teaching a practical, livable, healthy livestyle approach to weight management.
Workout Gym Business Plan
Mountain Brook Fitness Center is a fitness center where parents can bring children to be taken care of while they do whatever exercise activity they desire.
A good gym involves more than just the right exercise equipment. You need to think of the type of clientele you’ll be serving, membership and subscription fees, hosting fitness classes, and finding new ways to differentiate your fitness center from the competition. The best way to plan all this out and leverage your strengths is by starting off with a business plan.
If you need a bit of inspiration check out or gym sample plans for fitness centers, corporate fitness, gyms, health clubs, as well as martial arts studios, gymnastics schools, and a number of other athletics businesses.
If you’re looking to develop a more modern business plan, we recommend you try LivePlan . It contains the same templates and information you see here, but with additional guidance to help you develop the perfect plan.
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- 8 steps to create a great gym business plan
Your gym business plan is your roadmap to success. It guides you on your journey, helps you to make better decisions, and attracts potential angel investors to your business. Creating a business plan is a process. It’s easy to think of your business plan as one single document that you build and then you’re done. But, your business plan evolves and changes with you; it’s not a static checklist.
Whether you’re starting a new small business or expanding an existing one, a business plan sets the foundation for success. As we all emerge out of the coronavirus pandemic, it’s especially important to evaluate your business plan to make sure you’re still on top of your game.
A great gym involves more than fitness equipment. Setting up a gym is a big task which is why you want to give yourself the best opportunity to succeed. All stages of your business plan are equally important and essential for the final steps. In this article, we try to understand the core elements of a gym business plan and how you can craft a business plan for your fitness business.
- What is a gym business plan?
- Why do you need a fitness center business plan?
What is a gym business plan?
Before we dive into how to create your business plan, let’s start at the beginning. So, what is a gym business plan? Well, it’s a document that tells the reader who you are as a business and a realistic idea of where the business is heading. At a basic level, your business plan answers the following questions:
- How does your business work?
- How are you going to succeed?
- What steps do you need to take to succeed?
Research shows that entrepreneurs who write formal business plans are more likely to succeed . Business owners seeking external financial support are also more likely to commit their thoughts to a formal business plan. With a new business, it’s beneficial to pull your ideas into focus and put pen to paper.
Why do you need a fitness center business plan?
The main aim of your gym business plan is to create a blueprint for your business. For instance, if a potential investor were to read your business plan, they would understand how your gym will progress and succeed in the future. Your business plan also helps you to identify fresh opportunities and see gaps in your current business model or set up. Depending on where your business is, a business plan can be dual-purpose. Here’s why you need a business plan from day one.
Test your business idea
Starting a fitness business is by no means easy. So, you have an idea, and you think it could be a winner. But you can’t always go out and test that idea. A business plan allows you to feasibly test that idea without actually starting the business. Working through your idea and creating a business plan allows you to break down numbers, analyze the market and competitors, and save you a lot of time in the long run. In the early stages, it’s a good idea to work through your idea and create a business plan. The more knowledge you have about your business, industry, and potential customers, the better you can see if your business idea could be a success.
Attracts investors and secure funding
If you want to attract investors, you need a business plan. Most businesses need to secure funding and seek outside financial support. A thorough business plan helps you to obtain startup capital and funding for your new gym business. Even established businesses often need extra funding for expansion and business growth. Potential investors and finance companies will need concrete numbers with facts and figures to move forward with your business. Without a business plan, there is little to no chance of getting funding from investors, banks, or other external financial institutions.
Achieve short-term and long-term goals
It’s great to have both short-term and long-term goals in mind, but it’s important to go a step further. A good business plan will contain detailed strategies on how you intend to achieve these goals. It could involve your business model, equipment plans, hiring strategies, and marketing efforts. Think about everything that you need to do to achieve your goals. Most businesses tend to have overarching business goals that are supported by smaller goals. It’s crucial that your business plan maps out your strategies for achieving your goals. Because goals and strategies can shift, as your business evolves, you can update your business plan as necessary.
Make business planning manageable
A business plan is important for both new and established businesses. Firstly, a business plan gives you a higher chance of success. Budgeting, market analysis, and planning will set the foundation for a smoother beginning. When you have set out your goals and strategies to help you achieve them, you can implement what you need to progress. This whole process helps to make business planning more manageable and effective. A great business plan helps you to manage your business, monitor, and assess your progress over time.
The 6 Crucial Steps to Opening a Gym or Studio
Chris Cooper, a gym owner, author and the founder of the Two Brain Business offers expert insight into the proven formula for a successful fitness business . In an episode on The Fitness Founders Podcast, he talks about how gyms were forced to rethink their business models during the COVID-19 crisis and where fitness operators should spend their time and money to be successful.
8 steps to create a great gym business plan
Developing a business plan is an organized process where you go through specific steps to achieve a final result. To start, think about where you are now and where you want to be. This will help you get into the right mindset when writing your business plan. There will be many times when you will refer to your business plan to help you make a decision. So, the more information you have, the better. You will need to dig deep into your business idea, future finances, competitors, and fitness industry to help you collate the information together. By following these eight steps, you can begin to cover all the different aspects of your health club and start building a great gym business plan template.
1. Executive summary
The executive summary is always at the top of the business plan. It should be an attention-grabbing business pitch that’s short and concise, yet interesting. You will continue to flesh out the points from your executive summary throughout the document. But this first section should be very clear and engaging. Although the executive summary is the first document in the business plan, it can be easier to write it at the end. Keep in mind what it should include so that you answer your own questions as you write your business plan. The executive summary should explain:
- Who – who you are and what you offer
- Why – what you hope to accomplish
- How – how you are going to get there
2. Company overview
The company overview is a more detailed description of your business. You go beyond talking about who you are and delve into the type of clientele you plan on serving, how your business stands out from the competition, and the goals of your business. Because gym business models can differ, now is a good time to explain how you will run your business in more detail. Your executive summary states your mission statement and explains your thoughts at a high level. As you go through your business plan, you have the opportunity to expand and build on your thinking to showcase your business. Your company overview can include:
- Expand on the purpose of your business
- Business model and structure
- Products and services you offer
- Target market research
- Founding story
- Legal structure
3. Industry analysis
The industry or market analysis is where you investigate the local market. Think about your niche, current trends in the market, and how your business aligns with market demand. You’re looking to evaluate the fit of your business in today’s market. Try to include some facts and statistics about your industry and the future of the market. For example, a gym looking to obtain funding for expansion into online fitness would include trends and statistics on the rapid acceleration of digital fitness and where the market is headed in the future.
4. Customer analysis
Within the gym industry, there are various niches and audience segments. Even within one business, you can have multiple target audience personas. The customer base you choose to target will have a big impact on your business, the types of services you offer, and how you market yourself. Start by breaking your target customers down by the following:
- Demographics – age, gender, income level, occupation, location, and education, etc.
- Psychographics – needs, interests, opinions, beliefs, and values, etc.
5. Competitor analysis
A competitor analysis investigates businesses that are direct competitors to you. These are the gyms that offer a similar service in your niche. Although you can mention indirect competitors, this section is mainly for a detailed analysis of your direct competitors. Depending on your business type, you could have both in-person competitors as well as digital-only competitors. Although it may be impossible to find out everything about a competitor, you can usually get a clear idea from your research. Break down each of your competitors into the following:
- Services and products they offer
- Target audience
- Pricing and business model
- Strengths and weaknesses
6. Marketing strategy
The marketing section of your business plan is the place to explain everything you plan to do to get your services in front of your target audience. Include your strategy, projected startup costs, and consider who will be handling the marketing efforts of the business. Your marketing strategy can include:
- Social media marketing
- Email marketing
- Referral program
7. Management team
Ideally, you and your team members have fitness experience within your niche. This section is a great place to highlight the skills, experience, and expertise of your management team. By doing this, it helps to show how specific team members will help you to achieve success. Lay out key members of your team. This doesn’t need to be limited to your fitness experts, but other experts who will guide your business like marketing and sales managers, customer service, and maintenance personnel. How you structure your business and the type of compensation and benefits you offer will help you to attract and retain high-quality talent over time.
8. Financial plan
Depending on where you are with your business, your financial plan can include current financials for the most recent year and future projections. Your projected revenue should be based on facts and solid research with supporting numbers. The financial plan can include a five-year projection with detailed breakdowns of monthly and annual earnings. Think about your income, cash flow, costs, and outgoings. Your finances are the backbone of your business, so it’s important to be as thorough as possible.
Starting a business is hard and comes with its own set of challenges. A good business plan gives you a point of reference to help you navigate your business. Whether you’re looking to expand your gym or start from scratch, a business plan covers all aspects of your gym so that you have every opportunity to succeed. While you may face some unforeseen issues, a business plan helps you to identify potential problems as much as possible. Your business plan isn’t a static document set in stone, instead, it can serve as a guide to growth and your future success through changing times.
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Gym Business Plan Template
Gym business plan & example.
You’ve come to the right place to create a business plan for your gym.
We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their gyms.
Gym Business Plan Example
Use the example below as a template to write a business plan for a gym or fitness center.
Steven’s Gym is a startup locally owned gym located in El Paso, Texas. Steven’s Gym will include various exercise equipment, strength training equipment, free weights, aerobic equipment, and plenty of cardio equipment. The gym will also offer HIIT group classes, spin classes, strength training instruction, and personal training. Located in an up and coming, newly developed, and highly trafficked area of town, Steven’s Gym will attract both men and women ages 16 to 75+. There is something for everyone at Steven’s Gym, whether someone is just beginning their fitness journey or is a seasoned athlete and gymrat. The gym will have a welcoming atmosphere, experienced personal trainers, friendly staff, and frequently cleaned equipment and restrooms. The membership options are affordable and will be offered on a month-to-month basis, a 6 or 12 month contract, or the ability to pay for an entire year upfront. Discounts will be offered to military, teachers, and healthcare workers.
The following are the services that Steven’s Gym will provide:
- Strength training equipment
- Cardio equipment
- Free weights/dumbbells
- Aerobic equipment
- HIIT group classes
- Strength training instruction
- Training sessions upon request
Steven’s Gym will target all men and women ages 16 – 75+ who are interested in achieving and maintaining a healthy and active lifestyle. El Paso is a very diverse city that includes men and women from all walks of life. There are numerous blue collar individuals, white collar individuals, government employees, and military members as the local Army base is one of the largest in the country. Since Steven’s Gym will be very affordable, it will be able to attract people from all walks of life.
Steven will manage the day-to-day tasks of running the gym, while overseeing the staff, scheduling the group HIIT classes, and making sure all equipment is working properly and safely. He will also be in charge of ordering any new and replacement equipment and cleaning products and supplies. Steven will hire a gym manager to manage all new member sign-ups, placing them on a recurring payment schedule, and handle all member issues. There will be three trainers that will be available to personally train any member that requests training. They will also take turns running the group HIIT classes. Steven will outsource a local CPA to handle payroll, accounting, and tax payments. He will also outsource a local advertising company to develop the gym’s logo, branding, photography, social media accounts, website, and billboard design.
Steven’s Gym will be able to achieve success by offering the following competitive advantages:
- Large, clean, and spacious facility that has all the necessary equipment for their fitness routine.
- Knowledgeable and friendly staff of trainers.
- Best value for membership pricing. The membership pricing options are affordable and offer military, teacher, and healthcare employee discounts.
- Convenient hours of operation.
Steven’s Gym is seeking $300,000 in debt financing to begin operations of the business. The funding will be dedicated towards securing the warehouse space, gym build-out, and purchase of the equipment. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and working capital. The breakout of the funding is below:
- Securing warehouse space, gym build-out, and design: $25,000 to $125,000
- Gym equipment purchase: $50,000 to $100,000
- Three months of overhead expenses (payroll, rent, utilities): $15,000 to $55,000
- Marketing & advertising: $15,000
- Working capital: $10,000
Who is steven’s gym.
Steven’s Gym is a new, locally owned gym located in El Paso, Texas. Steven’s Gym will include strength training equipment, free weights, aerobic equipment, and plenty of cardio equipment. The gym will also offer HIIT group classes, spin classes, strength training instruction, and personal training. Located in an up and coming, newly developed, and highly trafficked area of town, Steven’s Gym will attract both men and women ages 16 to 75+. There is something for everyone at Steven’s Gym, whether someone is just beginning their fitness journey or is a seasoned athlete and gymrat. The gym will have a welcoming atmosphere, experienced trainers, friendly staff, and frequently cleaned equipment and restrooms. The membership options are affordable and will be offered on a month-to-month basis, a 6 or 12 month contract, or the ability to pay for an entire year upfront. Discounts will be offered to military, teachers, and healthcare workers.
Steven’s Gym History
Steven’s Gym is owned by Steven Malone, a retired Army Master Sergeant who is also a seasoned powerlifter. Steven was stationed at El Paso’s Fort Bliss for many years before eventually retiring and deciding to stay in El Paso and embark on his dream of eventually owning his own gym. As a frequent gym goer, Steven recognized that El Paso lacks high quality independent gyms. The nicest and most equipped gyms in El Paso are large franchises that have too many rules and regulations. Other independent gyms are dirty, unorganized, and do not offer a large selection of equipment. Steven envisioned a gym that was welcoming to all types of people that is encouraging, clean, and adequately equipped for those who are focused on sustaining an active, healthy lifestyle. Since incorporation, Steven’s Gym has achieved the following milestones:
- Found a 10,000 square foot warehouse space for lease in El Paso, Texas that can easily be converted to a gym.
- Registered Steven’s Gym, LLC to do business in the State of Texas.
- Began the branding image, logo, website, and social media accounts for the gym.
- Began researching and pricing out equipment.
Steven’s Gym Services
The following will be the services Steven’s Gym will provide:
The Gym industry is expected to grow to an annual revenue of $38 billion in the next five years. This growth is likely a result of increased per capita disposable income, in addition to growing health-consciousness. As consumers’ disposable income levels rise, individuals are usually more willing to purchase gym memberships. Additionally, time spent on leisure and sports is expected to increase over the next five years, effectively increasing the potential pool of consumers.
During this period, demographic changes are expected to drive revenue growth for operators. Additional revenue streams are also expected to play an integral part in industry growth. In particular, as healthcare costs continue to escalate, health insurance providers may implement incentives to promote preventive health practices, including the use of fitness centers among individuals within their provider network. Furthermore, the number of obese individuals in the United States has increased in recent years. Consequently, to cut healthcare costs, many health insurance providers will likely attempt to lower an individual’s risk for type 2 diabetes, heart disease and high blood pressure, among other ailments. Additionally, initiatives that promote the health benefits of exercise will likely increase over the next five years, stimulating industry revenue.
Demographic profile of target market.
Steven’s Gym’s target audience will include all men and women ages 16 – 75+ who are interested in achieving and maintaining a healthy and active lifestyle. El Paso is a very diverse city that includes men and women from all walks of life. There are numerous blue collar individuals, white collar individuals, government employees, and military members as the local Army base is one of the largest in the country. Since Steven’s Gym will be very affordable, it will be able to attract people from all walks of life.
The precise demographics for El Paso, Texas are:
Steven’s Gym will primarily target the following customer profiles:
- High school and college students
- Military and their families
- Blue collar workers (factories, warehouses, service industry)
- White collar workers (corporate or government office)
- Athletes who frequently train for fitness competitions
Direct and indirect competitors.
Steven’s Gym will face competition from other companies with similar business profiles. A description of each competitor company is below.
Gold’s Gym is a large franchise-owned gym with two locations in El Paso. Gold’s Gym gives access to everything one needs to transform their life: state-of-the-art amenities, a variety of classes tailored towards someone’s fitness needs, and the world’s best trainers. There are weekly classes for group workouts ranging from martial arts-inspired cardio classes to foundational yoga sessions. There are also certified trainers if someone is new to exercise or just looking for more guidance and coaching. Gold’s Gym also has innovative digital tools to take the fitness journey further, no matter the fitness level. Gold’s Gym’s amenities include cardio equipment, group exercise, personal training, a pro shop, sauna/steam rooms, group cycle, free weights, functional training, kids club, locker rooms, and wifi.
Planet Fitness is for people from all walks of life, whether they’re a first-time gym user or a veteran member, they are there to provide a workout environment in which anyone and everyone can be comfortable. All Planet Fitness members enjoy unlimited access to their home club and the support of their friendly, knowledgeable staff anytime they need it. PF Black Club members receive additional benefits, including the ability to bring a guest for free and access to any of their 2,000+ PF locations. Also, the PF member can take advantage of their free fitness training or find motivation by reading real member experiences on Planet of Triumphs. The goal of Planet Fitness is to provide a clean, safe, welcoming environment for anyone who walks through the door, and all the equipment, amenities, and support they need once they arrive. Planet Fitness provinces a diverse, Judgment Free Zone where a lasting and active lifestyle can be built. They seek to provide a safe, energetic environment where everyone feels accepted and respected. The key benefits of Planet Fitness is that they are open 24 hour, offer clean, spacious amenities, free fitness training, Judgment Free Zone, have tons of equipment, and always have a friendly staff.
Anytime Fitness is a welcoming gym that exists to help someone get to a healthier place – by giving the right support at the right times, in the ways the member wants. Every member receives a free, personalized Get Started Plan when they join. Their friendly, professional staff is trained to help someone along their fitness journey, no matter how much support they need. Aside from a large selection of strength and cardio equipment, Anytime Fitness offers the following services – 24-hour access, 24-hour security, convenient parking, anywhere gym access, private restrooms, private showers, health plan discounts, wellness programs, cardio tvs, and hdtvs.
Steven’s Gym will be able to offer the following advantages over their competition:
Brand & value proposition.
Steven’s Gym will offer the unique value proposition to its clientele:
- Large, clean, spacious, and well-equipped facility.
- Dedicated team of trainers.
- Affordable membership pricing plans.
The promotions strategy for Steven’s Gym is as follows:
Social Media Marketing Strategy
Steven’s Gym will invest in advertising the gym on social media platforms Facebook and Instagram. By using targeted social media marketing, Steven’s Gym will be able to reach the appropriate target audience of El Paso. Before opening, Steven will hire an advertising agency to develop the branding and photography needed to create captivating social media posts.
Steven will invest in two billboards strategically located at busy intersections that receive thousands of traffic daily. The advertising agency will develop the print for the billboard design.
Website/SEO Marketing Strategy
Steven’s Gym will invest in a strong SEO presence so that when someone enters “El Paso gym” or “local gym near me” in their Google or Bing search bar, Steven’s Gym is at the top of the list. Their website will list all of Steven’s Gym’s services, location, pricing, and contact information.
Word of Mouth
Word quickly spreads around town and once a few people experience the clean, affordable, and professional staff at Steven’s Gym, more and more people will come in to see for themselves and sign up for a membership plan.
The pricing of Steven’s Gym will be moderate and on par with competitors so customers feel they receive value when purchasing their services.
The following will be the operations plan for Steven’s Gym.
- Steven Malone will be the sole gym owner and operator of Steven’s Gym. He will oversee the staff, maintain that the cleaning schedules are being enforced, and ensure that all equipment is working per standard and safely. He will also manage all ordering of new and replacement equipment, schedule the group HIIT classes, and daily management tasks.
- Steven will hire a gym manager to be in charge of new member enrollments, place them on an automated payment schedule that will be automatically debited from their account, manage the books, and handle any member issues.
- Steven will hire a team of three trainers to start off with to offer help and training to any member that requests it. Two of the trainers will take turns running the group HIIT class. As the membership grows and clients require more attention, more trainers and classes will be added.
- Steven will hire a local CPA to manage all high level accounting functions, such as payroll and tax payments.
- Steven will also hire an advertising agency to develop the gym’s branding, photography, website, social media accounts, and billboard design.
Steven’s Gym will have the following milestones completed in the next six months. 8/1/202X – Finalize contract to lease warehouse space. 8/15/202X – Begin build-out and design converting warehouse space into a functional gym. 9/1/202X – Hire advertising company to begin developing gym’s branding, logo, social media accounts, website, and billboard design. 9/15/202X – Order all equipment. 9/30/202X – Launch social media campaign and website. Billboards go up. 10/5/202X – Hire gym manager and team of personal trainers. 10/15/202X – Train staff on proper policies and procedures. 11/1/202X – Grand Opening of Steven’s Gym.
Steven’s Gym will be solely owned by Steven Malone. Steven Malone is a retired Army Master Sergeant who has been stationed off and on at El Paso’s Fort Bliss for the past twelve years. Upon retirement, Steven decided to make El Paso his permanent home and embark on his dream of owning his own gym. Steven recognizes the lack of quality, independent gyms in El Paso and wants to open a gym that fits his idea of what a high-quality gym should be.
As a former powerlifter and personal trainer while serving in the military, Steven is aware of the proper equipment and facilities a gym should have. Steven envisions his gym to be friendly, clean, well-equipped, and affordable for the average person so that people from all walks of life will feel comfortable going to the gym and achieving their fitness goals. Steven will dedicate his life and focus on ensuring that his gym is always clean, staffed with the best trainers, and members are happy with what the gym has to offer.
Key revenue & costs.
The revenue drivers for Steven’s Gym are the membership fees it will charge each person that signs up to become a member. Each member will be placed on a membership plan where they can either pay month to month, enroll in either a 6 or 12 month contract, or pay for the entire year upfront. The cost drivers will be the payroll for the staff, rent, utilities, cleaning supplies and equipment, and gym equipment purchase and maintenance. Other cost drivers will be the targeted marketing costs on social media and monthly fees for the CPA and advertising company.
Funding Requirements and Use of Funds
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Initial Number of New Clients per Month: 60
- Average Monthly Membership Fee: $150
- Gym Lease per Year: $100,000
Income statement, balance sheet, cash flow statement, gym business plan faqs, what is a gym business plan.
A gym business plan is a plan to start and/or grow your gym. Among other things, it outlines your business concept, identifies your target customers, presents your marketing strategies and details your financial projections.
You can easily complete your gym business plan using our gym business plan template here .
What Are the Main Types of Gyms?
There are many types of gyms. There are large, franchise gyms that have multiple locations across the country. There are also large single facility gyms. Finally, there are smaller gyms that tend to focus on a particular fitness segment, such as strength training, CrossFit, or group HIIT training.
What Are the Main Sources of Revenue and Expenses for a Gym Business?
The primary source of revenue for gym businesses are membership fees. Typically, members pay month-to-month, or fulfill a year-long contract. Members are also usually able to pay for a full year upfront for a discount.
The key expenses for a gym business are the costs associated with payroll, purchase and maintenance of equipment, cleaning supplies, marketing costs, and working capital. Other expenses will be rent, utilities, taxes, accounts payable, and other licensing fees (if necessary).
How Do You Get Funding for Your Gym?
Gym businesses are most likely to secure funding from banks. Typically you will find a local bank and present your gym business plan to them. Family and/or friends could also be potential investors and other types of capital-raising such as crowdfunding are other common funding sources.
What are the Steps To Start a Gym Business?
Starting a gym business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Gym Business Plan - The first step in starting a business is to create a detailed gym business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. Our business plan template is the perfect guide to show you how to start a gym business plan.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your gym business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your gym business is in compliance with local laws.
3. Register Your Gym Business - Once you have chosen a legal structure, the next step is to register your gym business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your gym business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Gym Equipment & Supplies - In order to start your gym business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your gym business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful gym business:
- How to Start a Gym Business
Other Business Plan Templates
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How to create a gym business plan
- Annabelle Amery
When starting a business , it’s crucial to create a comprehensive and clear business plan. This applies to all types of businesses , including a gym business. A gym business plan is a strategic document that outlines the goals, objectives and strategies for starting and running a successful gym.
A gym business plan serves as a roadmap for entrepreneurs, providing guidance on how to navigate the challenges and complexities of the fitness industry. It helps entrepreneurs define their vision, mission and target market, as well as identify the resources and steps needed to achieve their goals.
Need a way to promote your gym business online? Get started with Wix’s website builder , which includes built-in marketing and scheduling tools.
Why create a gym business plan?
A gym business plan is particularly important for individuals who are new to entrepreneurship. It provides a structured approach to starting a gym by outlining the necessary steps, such as securing funding, finding a suitable location and acquiring equipment. Some of the other main advantages include being able to:
Attract funding: A well-written gym business plan can attract potential investors or lenders who may be interested in supporting your venture financially. It demonstrates your understanding of the market, your competitive advantage and your plans for profitability.
Understand resource requirements: A comprehensive gym business plan helps entrepreneurs identify the resources required to start and operate their gym successfully. This includes equipment, staff, marketing materials and other supplies necessary for day-to-day operations.
Achieve long-term success: A gym business plan provides entrepreneurs with an opportunity to thoroughly analyze their target market and competition. By conducting market research and competitive analysis, they can develop strategies to differentiate their gym from others in the industry.
Set goals: A well-crafted gym business plan helps entrepreneurs set realistic and measurable goals for their gym. These goals can include financial targets, membership growth, customer satisfaction levels and other key performance indicators.
Make better decisions: Having a clear business plan in place helps entrepreneurs make informed decisions about various aspects of their gym, such as pricing, marketing strategies and expansion plans. It serves as a reference point for evaluating options and making choices that align with the overall business strategy.
Guide your website messaging and design: A gym business plan also includes considerations for creating a business website . In today's digital age, making a website is crucial for attracting customers and promoting your gym. The business plan can outline the website's purpose, design, functionality and marketing strategies to drive traffic to the site.
How to write a gym business plan in 6 steps
A gym business plan is a crucial document that outlines the strategies and goals for starting and running a successful gym. It provides a roadmap for entrepreneurs, guiding them through the process of establishing and growing their fitness facility. To create an effective gym business plan, it is important to include six main parts:
Business and domain names
Market analysis and research
Marketing and advertising
01. Executive summary
The executive summary is a concise overview of your gym business plan. It provides an introduction to your gym, highlighting its unique selling points and summarizing the key elements of your plan. The executive summary should include a brief description of your gym, your mission statement, an overview of the target market and competitive landscape, a summary of your marketing, your advertising strategies and an outline of your financial projections (including how you plan to raise money for your business ).
Example of an executive summary for a gym:
“ABC Fitness is a state-of-the-art gym located in downtown Cityville. Our mission is to provide a welcoming and inclusive environment where individuals of all fitness levels can achieve their health and wellness goals. With top-of-the-line equipment, certified trainers and a variety of group exercise classes, we aim to be the premier fitness destination in our community.
In an increasingly health-conscious society, the demand for fitness facilities continues to grow. ABC Fitness differentiates itself by offering personalized training programs tailored to each member's specific needs. Our strategic location in the heart of the city ensures easy accessibility for our target market of urban professionals.
To attract customers, we will implement a comprehensive marketing campaign that includes online advertising, social media promotions, and partnerships with local businesses. We project steady growth in membership numbers over the next three years, resulting in increased revenue and profitability.”
02. Business and domain names
Choosing the right business name for your gym is crucial for building brand awareness and trust. It should reflect your gym's values, target market and unique selling proposition. Here are some steps to consider when deciding on a company name:
Brainstorm keywords and concepts related to fitness, health and wellness
Use a business name generator (or specifically a small business name generator ) for inspiration and to generate unique name ideas
Consider the availability of domain names associated with your chosen company name
Check the availability of the chosen domain name using domain registration websites
Be inspired: Gym business name ideas , Fitness business name ideas
Learn more about registering your business once you’ve landed on your business name and legal structure.
03. Market analysis and research
Including market analysis and research in your gym business plan is essential for understanding the competitive environment and developing a better business strategy.
Target market: Analyze the target market by identifying demographics, psychographics, and fitness preferences of potential customers. Conduct a SWOT analysis (strengths, weaknesses, opportunities and threats) to assess your gym's internal and external factors.
Competitors: Research competitors in your area to understand their strengths, weaknesses, pricing strategies and marketing efforts. Identify opportunities for differentiation by offering unique services or targeting underserved segments of the market.
04. Operations plan
The operations plan outlines the logistical aspects of your gym, including location, premises, equipment and staffing needs. Make sure to select a suitable location that is easily accessible, has ample parking and aligns with where your target market is based.
Then determine the size and layout of your gym space based on the number of equipment, exercise areas, locker rooms and amenities. Research and budget for the necessary gym equipment, including cardio machines, weightlifting equipment and fitness accessories.
Lastly outline staffing requirements by identifying the number of trainers, instructors, front desk staff and maintenance personnel needed.
05. Marketing and advertising plan
The marketing and advertising plan lays out the strategies and campaigns you will implement to promote your gym business. To do this you’ll need to first identify your target audience and tailor your marketing efforts to reach them effectively.
Then, plan out a strong brand identity by creating a logo, color scheme and visual elements that resonate with your target market. (Need help creating a logo? Check out these fitness logo ideas or Wix’s free logo maker .)
Consider using various marketing channels such as social media platforms, online advertising, local partnerships and community events. Then plan compelling content that highlights the benefits of joining your gym and showcases success stories from existing members. You can also implement referral programs or incentives to encourage current members to bring in new customers.
06. Financial plan
The financial plan is a cornerstone of any gym business plan, providing an in-depth overview of how the business will secure initial funding, manage expenses, generate revenue and outline the projected time frame for achieving profitability. This section is pivotal in demonstrating the financial viability and sustainability of the gym business to potential investors, stakeholders and lenders.
Startup costs and funding: Starting a gym business entails various upfront costs that should be carefully estimated for accurate financial planning. These costs include lease or purchase of the gym space, equipment procurement, interior design, licensing and permits, marketing, initial staffing and operational supplies. Funding for these startup costs can come from diverse sources, such as personal savings, business loans, grants, partnerships or investments.
Revenue projections: Revenue projections provide a forecast of the expected income over a specific period, usually the first few years of the gym's operation. These projections should be based on thorough market research, competitor analysis and realistic expectations.
Profit and loss projection: The profit and loss projection, also known as the income statement , offers an overview of the gym business's revenue, expenses and net profit or loss over a specific period. It provides insights into the financial health of the business and its potential profitability.
Time frame for profitability: The time frame for achieving profitability in a gym business depends on factors like membership growth, marketing strategies, operational efficiency and retention rates. Typically, gyms aim to reach profitability within the first year or two of operation
Gym business plan examples
Creating a gym business plan from scratch can be a daunting task, especially if you're new to entrepreneurship. Fortunately, there are many resources available that provide gym business plan templates to help you get started. These templates serve as a framework for organizing your ideas and ensuring that you include all the necessary components in your plan. Here are two draft business plans for hypothetical gym businesses, incorporating the main parts discussed earlier.
By using templates as a starting point, you can customize them to fit your specific vision and goals for your gym. Remember to conduct thorough research, analyze your target market and develop strategies that set your gym apart from the competition. With a well-crafted gym business plan in hand, you'll be well-equipped to start your journey towards building a successful fitness facility.
Business plan template #1: neighborhood fitness studio
The Neighborhood Fitness Studio is a boutique gym located in a residential area, catering to individuals seeking a personalized fitness experience. Our mission is to provide a welcoming and supportive environment where members can achieve their health and wellness goals. With certified trainers, state-of-the-art equipment and a variety of group exercise classes, we aim to become the go-to fitness destination in our community.
Company name and domain name
We have chosen the name "FitHub" for our neighborhood fitness studio. The domain name www.fithub.com is available and aligns well with our brand identity.
Our target market consists of local residents aged 25 to 45 who value convenience and personalized attention
Competitor analysis reveals that there is no other gym within a two-mile radius offering specialized fitness programs tailored to individual needs
We plan to differentiate ourselves by offering personalized training plans, nutrition counseling and small group classes
We have secured a 2,000 square foot space in a commercial building with ample parking for our gym
The gym will be equipped with cardio machines, free weights, strength training equipment and a designated area for group exercise classes
We will hire certified personal trainers, fitness instructors and front desk staff to ensure excellent customer service
Marketing and advertising plan
We will utilize social media platforms like Facebook and Instagram to promote our gym and engage with potential customers
Local partnerships with health food stores and wellness centers will allow us to reach a wider audience
We will offer a free trial period for new members and implement a referral program to incentivize word-of-mouth marketing
Business plan template #2: upscale fitness center
The Upscale Fitness Center is a premium gym targeting affluent individuals who prioritize luxury and exclusivity. Our mission is to provide a high-end fitness experience that combines cutting-edge equipment, personalized training and luxurious amenities. With our state-of-the-art facility, expert trainers and exclusive membership perks, we aim to become the preferred fitness destination for the elite in our city.
We have chosen the name "Elevate Fitness" for our upscale fitness center. The domain name www.elevatefitness.com is available and reflects our commitment to helping members elevate their fitness journey.
Marketing analysis and research
Our target market consists of high-income individuals aged 35 to 55 who value personalized service and are willing to invest in their health
Competitor analysis reveals that there are no other fitness centers in our city offering the same level of luxury and exclusivity
We plan to differentiate ourselves by offering VIP amenities, personalized training programs and exclusive member events
We have secured a 10,000 square foot space in a prime location, featuring high-end finishes and top-of-the-line fitness equipment
The fitness center will include dedicated areas for cardio, strength training, group exercise classes and a spa-like relaxation area
We will hire certified personal trainers, nutritionists and spa professionals to provide a comprehensive wellness experience for our members
We will leverage digital marketing strategies, such as targeted online advertising and influencer partnerships to reach our affluent target market
Exclusive membership events and collaborations with luxury brands will create buzz and attract high-profile individuals
We will offer personalized consultations and complimentary services to prospective members to showcase the unique value of our fitness center
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Gym Business Plan
Are exercise and fitness your passion? Or do you have a good knowledge of gym equipment and workout routines?
Then you might have thought of having your own gym at some point. After all, who doesn’t want to make their passion their profession?
And guess what, having a gym business can be an easy and hassle-free process too! If you have a gym business plan.
A gym business plan will help you pay attention to detail, and make the best strategies for a profitable business.
- Industry Overview
The global gym industry stands at a whopping value of 96.7 bn USD in 2021 and has 174 million members worldwide.
The growing enthusiasm for fitness and the adoption of a healthy lifestyle has led to a growing demand for gyms.
Also, people are becoming more specific with their workouts and want to be trained by experts. This has also contributed to the growth of the health club sector.
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Things to Consider Before Writing Your Gym Business Plan
Choose an accessible location, hire certified trainers.
Good trainers can make all the difference for your business. People who know what they are doing, are passionate and are ready to help your customers are essential.
Get your gym licensed and insured
Gym equipment can be expensive, and as so many people use it, it is also prone to damage. But if you get insurance for your gym you can sit back and relax, instead of worrying about the equipment.
Run promotions and discount offers
Good marketing is crucial to the success of any business. Creating your marketing and promotional strategy can be very helpful.
Why Do You Need a Gym Business Plan?
A gym business plan can help you manage your business with efficiency. It helps you manage everything from your finances to your clients.
A business plan gives a proper working structure to your business. It helps you navigate through roadblocks and carry out tasks to get maximum benefits out of them.
All in all, a business plan helps you turn your idea into a properly functioning business.
Chalking out Your Business Plan
If you are planning to start a new gym or fitness business, the first thing you will need is a business plan.
Before you start writing your business plan for your new gym business, spend as much time as you can reading through some samples of the gym and fitness-related business plans .
Reading some sample business plans will give you a good idea of what you’re aiming for and also it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.
Use our sample gym business plan to start writing your business plan in no time.
Gym Business Plan Outline
This is the standard gym business plan outline which will cover all important sections that you should include in your business plan.
- Business Overview
- Tone & Fit
- Private Fit
- Private Group Fit
- Corporate Fit
- Yoga Control
- The Competition
- Risk / Opportunity
- Financial Requirements
- Sales vs. Net Profit
- Company Description
- StayFit’s History
- Mission Statement
- Goals and Objectives
- Critical Success Factors
- Company Ownership
- Exit Strategy
- Tone and Fit
- Pricing Table
- Unique Features
- New and Follow-on Products/Services
- Industry Trends
- Personal Trainers
- Functional Fitness Training
- Market Segment and Target Market
- Income / Expenditure Statistics
- Physical Activity In Canada
- Aerobic Fitness Ratings In Canada
- Greco Lean and Fit
- The Athletic Club
- Free Form Fitness
- Barriers to Entry
- Cost Structure
- Market Segmentation Strategy
- Targeting Strategy
- Positioning Strategy
- Product/Service Strategy
- Pricing Strategy
- Marketing Objectives
- Marketing Vehicles
- Promotional Budget
- Lead Generation Strategies
- Unique Selling Points
- Dollar Sales
- Company Organization
- Organizational Chart
- Organization Budget
- Legal Structure
- Operations Strategy
- Scope of Operations
- Operations Expenses
- Break-Even Analysis
- Income Statement (5-Year Projections)
- Balance Sheet (5-Year Projections)
- Cash Flow (5-Year Projections)
- Ratio Analysis
- Capital Requirements
- Year 1 – Monthly Profit & Loss Projections
- Year 1 – Monthly Unit Sales
- Year 1 – Monthly Sales Forecast
- Year 1 – Monthly Direct Unit Costs Forecast
- Year 1 – Monthly Direct Cost of Sales Forecast
Let’s understand how you can complete each section of the gym business plan.
1. Executive Summary
The executive summary section sums up your business idea. It should be written in such a way that an outsider can understand your idea in under 10 minutes.
As it forms the first page of your business plan, it’ll probably be the only section that your investor reads. Hence, you should write a good executive summary if you plan on getting funded.
An executive summary mainly includes your vision and mission statement, business summary, and financial summary.
As a gym business, you will add a description of the services you provide. As well as your funding requirements and pricing strategy.
2. Products and Services
This product and services section would consist of a description of the various services you offer. It would also include where your service would fit in the market and how it would solve an existing problem.
As a gym business, you must include the services and types of membership you offer and also include your pricing strategy for the same.
3. Market Analysis
This section is one of the most important ones in your plan. It helps you make sense of your market research and get valuable points out of it.
In this market analysis section, you can include points about your competitors, the market size of your industry, and how you will fit into the same. It is also a good practice to include information about the tastes and preferences of your target market.
4. Competitor Analysis
Whenever you start a new business, it is always recommended to see who your competitors are and what they are doing.
Competitor analysis includes everything ranging from the size of your competitor’s business to the level of impact they can have on your business.
For example, as a gym business, you will include the number of gyms operating in your locality, their size, and their customer base.
Also, include the services they offer and the pricing strategy they follow, so you can devise methods for standing apart from your competitors.
5. Marketing Strategy
A good marketing strategy can help your business grow by leaps and bounds. After, you carry out market analysis, devise clear marketing strategies for reaching out to your target audience based on your analyses.
Your marketing strategy plays a crucial role in making your brand known in the market. Hence, make sure to strategize in a way that resonates with your target audience.
6. Operations Plan
This section consists of long-term and short-term goals, as well as your strategies for achieving them. It mainly comprises how your business functions and what milestones you would need to achieve your business goals.
As a gym business, you may write the number of customers you plan on achieving in your first six months with strategies to do the same.
You can also write about your expansion goals and when and how you plan on achieving them.
7. Financial Plan
A financial plan ensures that your business runs smoothly and without any hiccups.
In this section, you should include your funding requirements and plans to use them. Also, include your projected cash flow and profits in this section.
As a gym business, you must note down the cost of setting up your gym and buying equipment. Write down the funds you’ll require for the same.
Download a sample gym business plan
Need help writing your business plan from scratch? Here you go; download our free gym business plan pdf to start.
It’s a modern business plan template specifically designed for your gym business. Use the example business plan as a guide for writing your own.
The Quickest Way to turn a Business Idea into a Business Plan
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Gym Business Plan Summary
In conclusion, a business plan can take away the hassles of running a business. It ensures that your business journey is smooth and easy.
As a gym owner, a business plan lets you focus on improving your business’s customer experience instead of worrying about your finances and management.
After getting started with Upmetrics , you can copy this sample gym business plan into your business plan and modify the required information and download your gym business plan pdf or doc file.
It’s the fastest and easiest way to start writing your business plan.
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About the Author
Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more
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Gym Business Plan Template
Gym business plan.
If you want to start a new gym business or expand your existing business, you need a detailed gym business plan.
Since 1999, we have helped over 10,000 business owners create business plans to start and grow their gym, health club and fitness businesses.
Write a Business Plan for Your Gym Business
A good business plan includes financial projections, detailed strategies and action plans. We recommend that you start with a simple gym business plan template.
Below are links to each section of a winning gym business plan:
- Executive Summary – The Executive Summary is the most important section of your business plan. It should be clear, and concise and provide an overview of your gym business plan.
- Company Overview – The Company Overview section should include your company name, business model, location, history, and a brief description of your products or services. You can also include your company’s mission statement and/or a list of your key objectives.
- Industry Analysis – The Industry Analysis should include information on the size of the fitness industry, trends, competition and growth potential.
- Customer Analysis – The Customer Analysis should include a description of your target market, customer needs and how you plan to attract and retain your target audience.
- Competitive Analysis – The Competitor Analysis should include a description of your competitors, their strengths and weaknesses and how you plan to compete with them.
- Marketing Plan – The Marketing Plan should include your sales and marketing strategy, pricing strategy, and the promotion plan for your gym.
- Operations Plan – The Operations Plan should include a description of your gym facilities, equipment, staff, policies and day-to-day procedures. It may also include your gym or fitness business milestones.
- Management Team – The Management Team section should include biographies of the gym owner, your executive team members, and key employees.
- Financial Plan – The Financial Plan should include your gym’s financial statements, funding requirements, and investment analysis.
- Appendix – The Appendix should include any supporting documents such as your gym’s lease, contracts, permits and licenses.
Next Section: Executive Summary >
Gym Business Plan FAQs
What is the easiest way to complete my gym business plan.
Growthink's Ultimate Gym Business Plan Template allows you to quickly and easily complete your Gym Business Plan.
Where Can I Download a Gym Business Plan PDF?
You can download our gym business plan PDF template here . This is a business plan template you can use in PDF format.
What Is a Gym Business Plan?
A gym business plan provides a snapshot of your gym business or fitness center as it stands today, and lays out your growth plan for the next five years. It explains your goals and your strategy for reaching them. It also includes solid market research for your local market to support your plans. This is true for an opening a gym business plan and a plan for an existing business.
Once you have a handle on your market and the basics of running a small business, include more detailed information in your formal gym business plan. This better prepares you for financial negotiations with banks and other business opportunities to help your fitness business grow.
Why Do You Need a Gym Business Plan?
Fitness is big business, as baby boomers lead the charge to remain healthy for a lifetime. Gyms have come a long way, and new gym owners have a seemingly endless array of choices. Yet many new gym businesses fail because their owners try to be all things to all people. A written business plan is crucial to growing and developing your gym in a controlled, sustainable manner. In addition, gyms are expensive to build and outfit. Potential investors and loan officers look to the business plan to decide whether to invest in your gym.
What Are the Sources of Funding for Gyms?
To secure funding for a gym, the main sources of funding are small business loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a solid gym business plan will give them the confidence that you can successfully and professionally operate a business.
The second best way to secure funding for a gym is through angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding or, like a bank, they will give you a loan. Venture capitalists will not fund a gym. They might consider funding a chain of gyms, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual gym or fitness center could never achieve such results.
How Much Will It Cost to Start a Gym?
There is no one-size-fits-all answer to this question, as the start-up costs for starting a gym will vary depending on the size and scope of your business. That said, you can expect to spend anywhere from $25,000 to $500,000 or more when starting a gym.
How Do I Write a Business Plan For A New Gym?
A business plan for a new gym will include your purpose for entering the fitness industry, key market data, direct and indirect competitors, and a more detailed description of your marketing plan, management team, target audience, and more. Outside of the 10 sections noted in the gym business plan outline above, you may also include the following information in your gym business plan:
- Mission Statement : Define your philosophy on fitness and why you are opening this specific gym.
- Facility : Describe your gym’s layout and which equipment you will be using.
- Services : Describe the services you offer, such as personal training, available exercise equipment, hosting fitness classes, and child care.
- Membership Fees : Explain your pricing structure for memberships and other services.
- Financing : Detail how you will finance your startup costs and day-to-day operations.
- Growth Plan : Outline your plans for growing the business, including expansion into new markets and acquisitions.
- Risks and Threats : Describe the risks facing your gym and how you plan to address them.
- Exit Strategy : Explain how you will sell or close the business, including a timeline for doing so.
As you can see, a business plan for a gym is comprehensive and detailed. It should be updated regularly to reflect your changing business goals and strategies. Having a well-written gym business plan is essential to the success of any gym or fitness center.
What Marketing Strategies Are Effective For A Gym Business?
There is no one-size-fits-all answer to this question, as the marketing strategies that are effective for a gym will vary depending on the type of gym you own. However, some general marketing tips include:
- Creating a strong branding strategy, including a recognizable logo and tagline.
- Developing marketing materials such as print ads, website design, social media profiles, and more.
- Creating a referral program to incentivize customers to refer their friends.
- Developing partnerships with other established businesses in your community.
- Running promotional events such as free trial days or discounts for memberships.
As you can see, many marketing strategies can be effective for your gym. Your marketing strategy should support your overall business strategy, which is defined by your mission statement, vision, and unique selling proposition.
GYM BUSINESS PLAN OUTLINE
- Gym Business Plan Home
- 1. Executive Summary
- 2. Company Overview
- 3. Industry Analysis
- 4. Customer Analysis
- 5. Competitive Analysis
- 6. Marketing Plan
- 7. Operations Plan
- 8. Management Team
- 9. Financial Plan
- 10. Appendix
- Gym Business Plan Summary
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How To Draft the Perfect Gym Business Plan
A good gym involves a lot more than just the right exercise equipment. You need to think of the type of clientele you’ll be serving, membership and subscription fees, hosting fitness classes, and finding new ways to make your gym stand apart from your competitors. Setting up a gym is by no means an easy task, which is why the best way forward is to start off with a gym business plan.
So what is a business plan?
It is a formal document that lays down who you are as a business and gives a realistic picture of where the business will go in the future. At a fundamental level – It is a document that shows exactly how your business works, how it’s going to succeed, and the steps you need to take to get there.
Do you even need a business plan for your gym?
Industries are now gradually clawing back to their pre-pandemic growth rate. Old enterprises are re-opening and new businesses are popping up faster than we can imagine. To new entrepreneurs, business plans are more of a formality that can be overlooked. But sometimes, undermining the importance of a strategic plan for the growth of your business can backfire.
According to a study , business owners who have a well-defined business plan have almost twice the probability of securing capital and growing their enterprise when compared to those who don’t.
How will a gym business plan help you?
The primary purpose of a plan is to create a roadmap of how a gym will progress in the foreseeable future. Writing a business plan can be a useful exercise to help you discover fresh ideas which you might have missed and gauge if there is any room for improvement. While starting a gym, you can rely on your business plan for things like:
- Deeper assessment of the market : Making a business plan forces you to research the various aspects that will influence your gym’s success. These could include things like your ideal clients, target market, facility and equipment costs, local competitors, and any other market variables that could impact your business’ success.
- Choosing the right way forward: By getting ideas down on paper through various rough drafts of plans, you will be able to evaluate what has the best chance of success. This allows you to focus your time and energy wisely.
- Fund acquisition: Without a clear image of how the money will be used, no smart investor or lender will put money into a business. A good business plan lays out how the money will be spent and what the primary goals will be.
- Detailed mapping: Even though you have company goals in mind and rough ideas for achieving them, having your strategies written down is not the same as having them in your head. A good gym business plan will include thorough plans for marketing, resource allocation, hiring new staff, and other initiatives to help you achieve your objectives. It can assist you in understanding the scope of the fitness industry and determining the resources required to get started.
How do you go about writing one?
Creating a business plan is an organized and detailed process that helps you define the key metrics associated with your business. For this, you need to have a mindset that helps you to make strategic decisions while having realistic expectations . To begin with, ask yourself:
- Where are you right now?
- Where do you want to be in the future?
- And, how do you envision yourself getting there?
Understanding the answers to these questions will put you in the right spot to draft the best possible plan for your gym. Generally, there are 2 types of business plan templates:
- Lean start-up business plan ; and
- Traditional business plan .
A lean start-up business template highlights the key components of your strategy which allows you to view all the relevant details of your business in a single go.
However, having just a lean start-up plan for your business isn’t enough. Banks and financial institutions require extensive business plans as they can showcase an in-depth study of your business and how you plan to take it forward.
A compromise between the two might be the best for your gym . A lean business plan template could be useful for having an overview of your setup. There will be many occasions where you might need to refer to your plan for some important decision, and a lean business plan would be useful in those instances. On the other hand, a detailed gym business plan will be a necessity during fund acquisition, asset expansion, and internal guidance. So keeping both of these handy will not put you at a disadvantage, to say the least 🙂
The 9 key elements of a detailed gym business plan
Drafting a gym business plan is by no means an easy task. You have to strategize a plan of operation, dig deep into the market, run competitor analysis, project financial data for upcoming years, and collate everything in a single document.
We have established businesses that can be susceptible to changes, so owners of pre-existing gyms need to know about how they should update their business plans for future reference.
On the other hand, upcoming gym owners might not know what to include in their business plan, simply because this isn’t something people do on a daily basis. On top of that, they also have to keep their preparation for setting up their gym on track.
While all of that may seem a little overwhelming at first, it’s okay to work at your own pace and do your tasks one step at a time. You don’t have to learn everything at once. This is why, for your reference, we have put together a series of blog posts on:
- How to draft a gym business plan; and
- How to start a gym .
Now that you have a fair idea of what a gym business plan means and how important of a role it plays in the growth of a gym, let’s look at its 9 key elements which will help you cover every single aspect of your gym without missing out on anything:
- Executive Summary
- Gym Business Overview
- Market Analysis
- Competitor Analysis
- Products and Services
- Sales and Marketing Strategies
- Management and Operation Plan
- Financial Projections
- Funding Requirements
We have also included a sample gym business plan for you at the end of this blog ( Click here to go right to it ) .
1. Executive Summary
Having a strong executive summary is crucial if you’re looking for investors or loan sanctions. If your first few pages aren’t compelling enough, potential investors or loan officers would find the document mundane, which is the last thing you would want!
This section is basically a summary or an overview of the business plan. Give a brief description of your gym along with a summary of the market analysis that you have done. Then explain why your gym is uniquely qualified to fit in this market. Your executive summary should address the following questions:
- What is your business model and its strengths?
- What market demand will your gym fulfill?
- What key market data supports your concept?
- What is your competitive advantage?
- What will be your support line in terms of revenue, expenses, and profit/loss for the first three years?
- What are you requesting in terms of funding?
While you’re working on the executive summary, you might find yourself wanting to fill in more data than required, and it is important that you DON’T . The purpose of the executive summary is to highlight your goals for the gym and to give a very high-level understanding of the steps you will be taking in order to achieve those goals. You will have plenty of opportunities to fill in all the relevant information under the coming sections.
2. Gym Business Overview
This is a more detailed description of your gym, the clientele you serve (or the clients you hope to serve), and how it stands out from the competition. This is also a good place to include your goals for your gym
The executive summary captures the mission statement and a high-level understanding of the goals that you want to achieve. You can build on these points in your gym business overview to provide further detail. Try to cover:
- The purpose of your gym – Spreading awareness about maintaining good health, helping people stay fit, etc.
- Target audience ; niche-specific type of gym
- The founding details of your enterprise
- Strategies you will be adopting in different departments to achieve your goals
- The legal structure of your business
3. Market Analysis
Focus on writing about what your market is about and the specific niche your gym fits into. Think of things like:
- Do you have a niche?
- What kind of audience comes under this niche?
- What are the current trends in the fitness industry? Do your business plans cover these trends and how compatible are these trends with your ideal clients?
Carefully examine your local market and your gym’s potential to fit into that market successfully. It’s a good idea to include some hard data and statistics to show where the market has been and where it’s expected to go.
4. Competitor Analysis
Research your competitors . You should make a list of direct and indirect competitors with their strengths and limitations, as well as how your gym compares to them.
- Direct competitors: This includes gyms similar to yours in the local area that are going after the same type of customer.
- Indirect competitors : These are the other types of gyms, health and fitness-based centers in your local area that target your market with different kinds of products and services.
You can talk to locals, hand out questionnaires, and do surveys to gain some insights. Ask them why they chose their current gym, what all do they think they are missing out on, and try to capitalize on that. Getting real-time information can be difficult but it is the most valuable feedback you can get . Collate the data under this heading and highlight how your gym can fulfill the wants of your potential customers.
5. Products and Services
This section is a detailed breakdown of what you offer to your customers. It should cover membership options, group classes, available exercise equipment, and personal training opportunities. You can also include child care options, or special training sessions, whatever fits your idea.
Discuss the needs that your services fill for your target audience. Use this section to detail any plans to add or change services, including the projected cost and payoff for those changes.
You could also explore opportunities to sell products. This can help you establish your brand and kick off an additional source of revenue. Ensure that if you plan to sell health food items, keep in check with food hygiene standards and include procurement sources and a budgeting overview.
6. Sales & Marketing Strategies
Sales & marketing strategies are a key part of the fundamentals of funding plans and financial projections. These are highly dependent on market research and competitor analysis . Your marketing strategy can comprise of:
- Improving services
- Loyalty plans
- Website promotions
- Email marketing
- New equipment
There are no boundaries to your ideas here. It is very important to try and cover all possible bases because these strategies will help you maintain the rate of client acquisition and increase your client retention period. For an in-depth understanding, this section should address the following questions:
- What membership types will you offer and what will you charge for them?
- What are your sales forecasts?
- What is your strategy to get your target market into your club and convert them into members?
- What is your unique selling proposition?
- What promotional offers and marketing strategies will you use during pre-sale and post-launch?
- How will you retain your members?
It’s easy to overlook marketing strategies while doing extensive research on other things which constitute your business plan, which is why we’ve created a list of some simple, low investment, and high ROI gym marketing ideas. Check out this blog to learn about different ways to get more clients for your gym.
7. Management & Operations Plan
This is one of the most important sections of a business plan, while you’re in the phase of opening a gym because this will outline how your gym will actually function and what are the various moving parts involved.
Lay out the key members of your management team and the experience they can bring to help grow your business. This should not be limited to fitness experts and trainers you hire, but also people with business experience who will help you with administrative tasks. It is important to show any potential investors that the right people are in place to help your gym succeed.
If you plan on managing the club, include your bio alongside the rest of the management team’s profile in the appendix. Provide an organizational chart along with a description of any non-management staff you’ll need. They can include:
- Personal Trainers
- Sales/membership managers
- Storage handlers
- Customer service
- Maintenance personnel
Outside of rent, labor is the biggest expense for most fitness club operators, so having the right compensation is critically important. Break down your management and staff profile, along with their compensation and benefits plans. ( Xanax )
How you structure compensation and benefits will impact your ability to attract and retain a strong team and can make the difference on whether or not your business is profitable in the short and long term. So give these points and good thought before cementing anything in your plan.
8. Financial Projections
Include your financials for the most recent year, as well as your projected revenue for the coming years. These projections should be based on the solid market research you’ve done.
Create comprehensive financial projections that include income statements, balance sheets, and cash flow statements for the next three years based on the expected best and worst-case scenarios. Provide context for these numbers by comparing them to industry benchmarks. Start-up costs, payroll expectations, debt payment schedules are important to reference as well.
Make sure to consider membership and revenue-generating service ramp-up, membership churn, and staff compensation in your projections.
9. Funding Requirement
Use this as an opportunity to think realistically about your business. Include the key external resources you might consider to get funded. These could be:
- Personal savings
- Soft loans (family members, friends, gifts)
- Sponsorship from other business
Detail exactly where you plan to get your funding from, and how much . If you’ve previously made loan applications, make a note of them here for any potential investor to consider.
Conclusion (+ Free template)
Starting a business has its own set of challenges, but the payoff is well worth the effort in the end. If you have a gym business plan that covers all you’ve learned so far, you’ll be able to kickstart a gym with a bang! Simply because your plan:
- Will act as a point of reference for you when you have to make important decisions.
- Be a resource to help you secure investment.
- Give you the security that you have explored all aspects of your new business.
- Show partners or new employees which direction you aim to head in.
Want a template to get you started?
Check out this gym business plan template that we’ve created for you.
Download the FREE gym business plan template!
Save it or print it out and use it to create a robust business plan!
Yay! You are one step ahead in a successful personal training business!
Every business is unique. So, don’t be afraid to tailor your own gym startup business plan that is specific to your needs. Even though sample business plans are designed to assist you in creating the ideal presentation for your clients and investors, it is ultimately up to you to decide how you can best communicate your ideas.
We at Appointy, help business owners grow and run their businesses with our online scheduling software. This blog was a part of our ‘Manage your Business’ category, where we provide expert tips, and resources, or simply talk about the challenges that small and medium businesses face every day.
If you have any thoughts on this blog or would like to chat about your business struggles and achievements, let us know in the comments below.
We love a good talk!
Hi there!! As I have been reading going through on How to draft the perfect gym business plan. I then saw where it states check the template but there is no where to print or open. Please help
Hi Magellan! Please try adding your email and then click on the “Download!” button, you’ll find a printable PDF template.
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Writing a Gym Business Plan: How-to Guide & Case Study
- Become a Personal Trainer
- Editors: Abbie Watkins
- Verified By: Chloe Twist
This guide will not only show you how to find success similar to OriGym’s business ventures, we’re going to give you a step-by-step break down of how we did it, providing you with all the industry tips for developing your own gym business plan.
Before jumping in, when running a gym, being qualified is a must! Get started with our Personal Trainer Diploma by enquiring below or download our course prospectus to see what else we offer.
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Download our video guide to get started
Step One – Market Research
First you need to brainstorm some ideas.
After you become a personal trainer and gain industry experience, you need to decide what type of gym you feel your target market in your location would benefit from and how that would differ from the competition.
Step Two – Why finding the perfect location is one of the most important aspects of setting up a successful gym
When writing your gym business plan or personal training studio plan, you need to think about the location of the gym. Even if everything else is water-tight, a large part of your success will be determined by where you choose to set up.
Why gym location is so important…
When you’re trying to complete a gym business plan, or any business plan that operates within a specific location for that matter, it only makes sense that your first thoughts should immediately turn to the location of your business premises.
A good location improves your marketing, makes attracting audiences easier, and can be the difference between your business flourishing, or crashing out at the first hurdle.
When setting up OriGym, location was of primary concern:
Luke Hughes: “When deciding how to set-up a gym, location was key, irrespective of how unique or innovative our later plans were. Before we settled on our final premises to start OriGym, we had visited over 30 different sites. “What’s important to remember is that there are so many variables that you need to consider that could affect your future success of your business. For us, being close to a target audience, and being able to find the right staff was key, so we chose our venue based on these factors.”
What location factors you need to consider when setting up a gym…
As well as business-specific factors, there are also a few practical considerations that you have to keep in mind when you’re choosing the site of your venue.
Any gym business plan that doesn’t consider the following, risks having their business stifled by regulations and red tape…
Luke Hughes: “We elected to go for a warehouse-based gym that was just off a main A road. Our venue therefore had plenty of accessibility, visibility to passing traffic, and came with a free car park for our gym members. “There were no competing gyms within a three mile radius, no business rates, and rent was low due to it being a warehouse that we converted into a gym”
Before we move on, let’s look at some of the most important factors to consider when drafting up your business plan.
Remember, neglecting to cater for any of the below could see your whole plan, and business, collapse at an early stage.
You might have started with an aesthetic vision for your business, be it a boutique gym, a warehouse conversion, or even an inner-city venue with more of a commercial feel.
Regardless of your plans, one thing that all new gyms need is council permission and landlord authorisation.
On most search engines, you can search via D1 premises, inputting your location and industry to pinpoint ideal locations.
You may believe that you have found the ideal location for your new gym, however, bear in mind that it often turns out to be the case that a premises requires you to officially declare the purposes of your business, in order for you to legally open a gym in that building.
Now, here’s the important part: it is a legal requirement for a gym in the UK to have D1 planning permission.
Many applicable sites will already come with this planning permission, but it can become a difficult process if you find a perfect site that only has the planning available for offices or retail.
While the process has many steps – outlined in this excellent article – the basics are that you will need to ask the estate agent if the landlord would be willing to support a change of use, before applying via the local council for that planning permission to be accepted.
As you can imagine, this can be a time-consuming process, during which there is the potential for another company to swoop in if they do not require so many changes to existing regulations.
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Foot Flow & Visibility
Finding a suitable premises that has a guaranteed foot flow, or, at the very least, consistent volumes of traffic that pass by throughout the day, is critical for setting up a successful gym.
Keep in mind that venues placed on high streets or close to major transportation links often charge more on their leases, as they know this is what most businesses want.
When writing your gym business plan, you need to conduct a SWOT analysis of the immediate area in relation to your competition.
It’s all well and good securing a gym premises on a busy high street or main road, but if you are setting up a personal training studio next to a large national chain with a massive marketing budget, you could find yourself getting priced out of the market and struggling to make your lease rent.
When contemplating how to start a gym and putting your gym business plan together, you should always consider how accessible your potential venue is to your customers.
Is there good public transportation links such as bus stops and a train station nearby? Is your prospective venue situated off a main road? Are you in a thriving business area?
You must calculate the cost difference of being on the main road or high street, against the cost of the increases in gym rent and, potentially, reduced gym space.
Future Development Work
Another industry tip to when it comes to opening a gym is to consider what development is planned in the coming years for the surrounding area.
If you find a potential gym premises that has scheduled increased public transport, infrastructural changes, or business development e.g. a nearby business park, you could be getting a real steal on your premises before the land value sores.
When evaluating how much it costs to start a gym, one of the biggest outgoings to consider is the rent or lease cost.
Bear in mind that lease costs can vary based on where the venue is located, the type of premises it is, the square foot of the venue, and the level of accessibility / visibility your gym would receive.
Another aspect to take into consideration when evaluating how much it costs to start your own gym are business rates.
A business rate is the tax you pay to the council for having a commercial premises. It is calculated based on the rateable value of that premises. With gyms requiring large spaces, they normally have large business rates that come with the property.
That being said there are a few ways around business rates:
- Firstly, you do not pay business rates on a property under £12,000 per annum.
- A shrewd way of saving money is renting a venue where the space you are renting is part of a larger overall building, meaning your neighbours may be paying the business rates on that property, or you could at least split the costs between your businesses.
Style of Building
One major cost to factor into your gym business plan is if there are any works to the prospective venue that need completing, in addition to any other work in the way of renovation.
These may include:
Step Three – What services will you offer?
When writing your gym business plan, you need to be clear in your mind what services your gym is going to offer.
Without knowing what you want to offer, you can’t make provisions for target audiences, and without planning for target audiences, you can’t accurately choose a location.
So, how best to condense what you are going to offer to your paying customers?
Let’s start with the factors you need to consider…
Step Four – What fitness equipment should you get? Should you buy equipment or lease it?
Of course, there is no one straight forward answer here.
Your budget for equipment depends on factors like what type of gym you are looking to set-up, the overall budget you have for your gym business plan, the size of the premises, and the expertise of your future clientele.
If there was one golden rule – and this applies to all aspects of business planning – it would be to not get carried away trying to beat your competitors in terms of buying state-of-the-art equipment .
Different gyms have difference client-needs to serve: being the best doesn’t necessarily mean owning the most expensive equipment.
But don’t just take my word for it…
Steph Roberts: “If your costs for setting up a gym are limited, or you just want to start a personal training studio, having a large functional based space is a great place to start, as it does not require much investment and is multi-purpose. “When we set-up our first gym, we leased a few pieces of cardiovascular machines and fixed resistance equipment as they depreciate in value and soon become outdated. Most of our investment was originally spent on functional equipment, weights such as a squat rack, Olympic bars, and dumbbells as they have a much longer shelf life.”
Where should you buy your fitness equipment from?
Again, there is no straightforward answer to this…
Depending on who your clients are, and what they need from your facility, you might be able to save a lot of money only buying certain, specialist equipment, and avoiding expensive weights machines entirely.
A CrossFit Box, for example, may draw just as many clients than a commercial gym, and will usually have less than half of the equipment.
But if you do need to buy expensive equipment, where can you save money?
Major fitness equipment brands provide finance, and will allow you to lease or buy gym equipment outright if you have the capital to do so. They also provide packaged discounts the more gym equipment you buy, so it’s advisable to coordinate your equipment needs and buy in bulk.
Some of the brands OriGym had particular success with were:
Luke Hughes: “Looking on Ebay or Gumtree always produces some hidden gems, especially for cardiovascular based equipment such as treadmills, cross trainers, bikes, or rowers for your gym.” “Like most aspects of life, being pro-active has its rewards. “If you see a gym closing down or a gym planning to announce an upgrade on its gym equipment, a pro-active email / phone call could help you secure cheap gym equipment in bulk for your new venue. “In the past, we’ve even had gyms give us used fitness equipment for free, as long as we were willing to come and pick it up!”
Step Five – Where are you getting revenue from?
How much should i charge for gym memberships.
So, you’ve sorted your location, you’ve conducted market research, and you’re certain that your target audience are in the local vicinity of your gym…
One question: why is everything so quiet?
If you’re experiencing a low take-up in your new facility, it’s probably because your prices are too high.
Similarly, if you’re experiencing unprecedented business uptake, but you’re still struggling to pay the rent, then it’s probably because you’re not charging enough.
Choosing how much to charge your members can depend on local competition, what equipment you have secured, and the contact hours you and your staff intend to have with clients (weekly personal training vs. pay-as-you-go gym sessions, for example)
Here are some of the main factors you need to consider:
- Service Ad-ons – Are you including any additional services, alongside access to the gym? E.g. free personal training sessions, free supplements, or free health checks.
- Gym Facilities – Is there going to be a pool? Are there going to be fitness classes running out of a studio?
- Gym contract – Normally the longer you get someone to commit to a contract for, the lower the monthly amount they have to pay. Many gyms now do not even have a contract
- Gym Equipment – How much fitness equipment will there be? Will the gym equipment be branded and new?
Now listen up, because the next step is crucial.
When writing your gym business plan, you need to factor in how many gym members you believe will sign up to your facility in the early months, and you need to go on to make accurate predictions of your month-by-month growth .
What secondary gym revenue streams will there be?
A well thought out fitness business plan will evaluate every angle of potential revenue that the gym might earn.
When asking yourself how much would it cost to start your own gym, you must first anticipate the possible income generated through your primary services, in order to find out what potential there is for secondary revenue streams.
Here are a few additional revenue streams you might not have factored into your gym or personal training studio business plan:
Before we continue, check out our guides below for advice about getting your fitness business started:
- Personal Trainer Business Plan
- Starting a Personal Training Business Checklist
- Achieving Your Personal Trainer Business Goals
Step Six – Gym advertising and marketing to get your gym off the ground
I can’t tell you how many people neglect this step, and as a result, how quickly their business ambitions fall through the floor.
It is a truth universally acknowledged that in order to succeed in business, you need to learn about marketing.
Or, you need to hire someone who knows about marketing.
Or, pay for freelancers who are professionals in marketing.
Basically, if you can’t compete with other gyms in terms of marketing, you’re going to lose out.
Luke Hughes – “Gym advertising and marketing is extremely important, and you need to have a clear route to market and a gym advertising budget set aside to promote when setting up a gym. “There are two forms of advertising: organic and paid. “Paid gym advertising should be your first point of call to get immediate results, where organic gym advertising should be your long-term strategy.”
Step Seven – Factoring recruitment costs into your gym business plan
When asking yourself how much would it cost to start a gym, you need to start thinking about how many members of staff you will need, and what their wage will be, determined by their expertise.
Below, we’ve compiled the most important factors you should consider when budgeting for staff and recruitment.
Steph Roberts: “ When starting a gym, one of the biggest gym costs to place in your gym business plan is staff costs. With OriGym, we used some free platforms and business links to get our first staff without paying any upfront costs to advertise for positions”
So, what are the best avenues for recruiting gym staff?
General Jobs Boards
Featured: Indeed is the largest jobs board in the world, and it is perfect for starting a private gym as it allows you to advertise jobs in one location, completely free of charge.
Leisure Specific Jobs Boards
- Leisure Opportunities
- Active Careers
Featured: Active Careers is a free jobs board within the health and fitness sector, where you can advertise for fitness-based positions completely free of charge.
Gym Recruitment Agencies
- Flow Sports
- Leisure Recruitment 4 U
- Gym Career
Featured: Gym Career is a recruitment agency specifically focusing on fitness professionals. With access to a huge database of high quality trainers, you will have plenty to pick from. But be warned, it will come at a financial cost.
Partnering with a fitness training provider
Most reputable fitness training providers have obligations to their graduates after they have finished completing their fitness qualifications, including guaranteeing interviews with gyms.
By offering to help their fitness instructing and personal training graduates find employment, you get a new staff member and the training provider fulfils their promises to their students.
What personal training structure should you use?
Remember, the structure with which you pay your personal trainers can drastically affect both your ability to earn, and theirs.
You want to design a structure that is enticing in order to attract the best personal trainers, but also one that ensures that your business remains profitable.
Steph Roberts: “ There are many different ways to offer personal training in your gym. In general, you can treat your trainers as a revenue stream, or hire them on an annual salary. At OriGym we combined paying some of our trainers per hour with options where freelance trainers could pay per client they bought into the gym. “This allowed us to generate some income, but still have the best trainers around for our gym members to work with.”
Step Eight – Gym Insurance
There are many legality issues that you need to factor into your gym business plan, and taking out a policy of public liability insurance is an absolute must.
Insurance companies such as Protectivity and Insure4sport specialise in gym insurance and have specific packages to cater for the following:
Step Nine – Unexpected overheads to consider in your gym business plan
As any business owner will tell you, it is often the aspects of running a venue that you can’t plan for that will cause you to lose sleep at night.
Even if you have the best gym business plan in the world, planned to every immaculate detail, there’s always going to be something at the end of the month that you didn’t expect.
Of course, one problem with unexpected costs is that we can’t exactly write a definitive list of what they might be… Otherwise, they wouldn’t be unexpected, would they?
However, here’s some of the costs that caused us to double-take while getting our first OriGym venue of the ground:
You’ve made it through all the foundational steps of drafting your gym business plan, and got some valube insights from OriGym’s co-owners along the way.
Deserved pats on backs all round.
But we’re not done yet…
For the serious prospective gym owners, below you can find everything you need to know – and what we wish we’d known – in order to execute your gym business plan to its maximum potential.
Why it helps to be personal training qualified before opening a gym
There are many successful gyms out there run by individuals who have never set foot in a classroom to complete their level 2 or level 3 personal training courses .
And it’s true, business acumen, a sharp eye for marketing, and a great sense of timing are all aspects that are going to help you succeed if you’re looking to open your own gym: all skills more aligned with a business graduate than with a fitness one.
But there are also some huge benefits if you’re a qualified personal trainer looking to expand your business by owning your own venue…
Luke Hughes: “ Becoming PT qualified enables you to understand the market, in addition to the needs of your customers and staff to provide a better service. “Additionally, if you are planning to run personal training sessions, conduct gym inductions or perform health checks yourself, you must be PT qualified to do this legally. “Lastly, even if you have no intention of running any physical sessions yourself, you can fill in for staff absences, holidays or sickness to keep your customers happy.”
How should you name your brand?
Creating a brand is the aspect of setting up a business that many entrepreneurs get excited by.
After all, this may be the culmination of years of planning and ambition, so you want to be proud of the sign above your door and the branding of your website.
There’s only one small problem: it’s actually pretty difficult…
To avoid spectacularly missing the mark when it comes to naming your brand, keep these tips in mind:
Creating a memorable fitness brand name that leaves a clear first impression of what your business does is crucial when learning how to set up a gym.
Steph Roberts: “We selected OriGym as our brand name as it combined the word “original” with the word “gym” to capture our brand ethos.”
Registering your gym or personal training studio on Companies House.
Before officially registering your gym name on Companies House, there are a couple of housekeeping rules to be aware of…
What you register your business name as on Companies House has little bearing to what name you can market as a trading name, as long as this is transparent on your website and marketing materials. Getting your brand name trademark protected is far more valuable and should be a priority when incorporation incurs.
Don’t forget to pencil in a pre-sale event into your gym business plan!
Ever wondered how all those new gyms seem so busy as soon as their doors open?
Well, now you have an answer, and its gym pre-sales.
Once you’ve established the day that your gym will open, you should immediately launch a gym-presale event in order to attract your first members.
The whole idea of your presale is to draw customers to your new facility, and the easiest way to do this is to offer a discounted price for pre-sale clients.
Remember, marketing is a key aspect of your gym business plan, and this kind of campaign is an easy win in terms of attracting some early customers and attention.
Add to your pre-sale by offering virtual tours of what your gym is going to look like upon completion, and by offering brochures with price-lists for more services (this way, new clients can see how much money they are saving too!).
And with that, our guide to writing the ultimate gym business plan is complete!
If you follow all the steps outlined above and deliver a unique service to your area, you’ll set yourself on the right path to expanding your local business into a national one.
There is no better way to prepare yourself for a career owning a gym than to gain a Personal Trainer Diploma and establishing a solid foundation for your future. For all you need to know in terms of available career paths, download our free prospectus .
Written by Luke Hughes
Join Luke on Facebook at the OriGym Facebook Group
Luke is the CEO and Co-Founder of OriGym. Holding a first-class degree in Sport and Exercise and an MSc in Sport and Nutrition, he is also qualified as a Level 4 Personal Trainer with various specialist credentials covering the entire spectrum of health, fitness and business. Luke has contributed to a variety of major industry publications, including Men’s Health, Women’s Health, Daily Telegraph, The Guardian, Metro, Cosmopolitan, The Mirror, The Sun, The Standard and more.
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How to create a business plan for your gym
Looking for tips on how to start a gym ? Planning ahead is key to the world of business and workouts. Just like you wouldn’t hit the gym without a workout plan, a fitness business plan is a requisite for starting your own gym, wherever you are in your journey. If you’re looking to find investors for your new fitness center project or are interested in expanding on the gym business you already have, a business plan is essential.
This step-by-step guide shows you how to write an effective business plan for your gym.
Follow along to discover the practical knowledge you can use for crafting an unparalleled business plan. Remember, this is a flexible and personalized document that forms a cumulative road map for your business, so take your time and hone in on what separates your business from the competition.
#1 Executive summary
An executive summary is your grand opening. It should grab your reader’s attention, concisely layout your business, and effectively pitch your gym to prospective investors in just about one page.
The best way to craft an expert executive summary is by asking yourself a few questions to discover precisely what to say.
Some key questions that will help you formulate your executive summary include:
- What is your mission statement? – Let your reader know who you are. Your mission statement should not only include your gym’s values and goals, it should explain why your gym should exist and what sets you apart from others.
- What are your main offerings? - Are you a gym focused on after-school fitness programs for youth, like Montana’s Missoula Boxing Club ? Or are you interested in encouraging seniors to get active like Jean Grimm of Tuscon, Arizona? Whatever your gym’s main offerings and fitness services are, include them briefly in your executive summary.
- What are your gym’s major goals? – To run a successful gym, plenty of pre-planning is necessary. That said, it’s also necessary to describe your business’s short and long-term goals. Do you see franchises in your future or are you looking to gradually expand your offerings? Brainstorm where your business will be in 1, 5, and even 10 years.
If the executive summary is starting to feel daunting, here’s a tip:
While an executive summary is a classic lead into your business summary, you may have more success writing it after you’ve completed the rest of your business plan. After taking the time to investigate each specific aspect of your business in detail, you’ll be in a better position to write an effective summary of everything you’ll be covering throughout your plan.
#2 Company overview
A company overview isn’t just your opportunity to expand on why you’re opening a gym, it’s a great place for outlining your general strategy when it comes to your business.
Consider touching on some points regarding:
- Daily operations
- Hours and location
- Managerial processes
Also, be sure to add in all your relevant experience, and why you’re qualified to build your own gym.
Take the time to go in-depth about:
- Business experience – Is this your first rodeo, or have you been an entrepreneur all your life? Even if you’ve never opened your own business, look to events in your life where your leadership and vision have led to a successful outcome.
- Fitness background – Whether you’re a certified CrossFit trainer with a decade of experience or a passionate marathon runner, your background in physical fitness is highly relevant to your company overview.
- Personal touches – The company overview presents an opportunity to showcase why this business venture is so important to your life’s journey. You can share a story about your first gym experience, your family’s history of gym ownership, or your lifelong dreams about running a fitness center—just be sure to remain professional and relevant to the task at hand.
Be sure to include your business model and legal structure, while expanding on the overall purpose of your business. After finishing your company overview, a reader should have a clear idea of your business, both in how it functions and what it might look like in practicality.
#3 Market research
It’s time to dive into your target market and explore where your business exists in the marketplace. It’s most helpful to immediately identify your target market, pinpointing your customer base by demographics including:
- Socio-economic placement
- Education level
By understanding more about your clientele, you can offer more specially catered fitness services.
You also need to understand key elements of your business, like:
- Your location – Where are you planning on operating? Where your gym is located will determine the potential demographics of your customer base and contribute to your overall gym marketing strategy . Your location in terms of proximity to other gyms is also important to point out. Show that you know what (and where) you’re getting into.
- Your unique selling point - What do you offer your target audience that the competition doesn’t? Whether your gym has flexible hours, unmatched equipment, or classes that no one in the area has ever offered before, take the time to determine your unique selling points and find inspiration from other business owners. Some local gyms have gotten extremely creative when it comes to standing out from competitors. Take, for instance, Omaha’s The Exercise Coach , a small gym using unique tech to create user-specific exercise routines helping members reach their fitness goals in a curated, personalized way.
Research and statistics regarding gyms in your area can also be highly useful in backing up your business assertions. Feel free to add tables and graphs to further illustrate your ideas. Thorough research and relevant facts are excellent ways to showcase a level of professionalism to your business plan overall.
#4 Marketing strategies
Take your deep understanding of local market trends and your fitness industry expertise to craft marketing strategies that will bring members to your fitness center.
Consider the following marketing options and consider using multiple mediums and campaigns to create a winning strategy for your new gym:
- Shake up social media – Create engaging content to attract more users to your social media. Entice your audience with inspirational posts, contests, special offers, and more. Plus, social media gives your audience a direct line to communicate with you, so you can start interfacing with your customers digitally as well as in the gym.
- Connect locally - From your local paper to open bulletin boards, it’s usually simple and effective to find ways to engage with your local community. Print up some fliers, or take out an ad on a local radio station—whatever way you find to connect with your community. Today, it’s even easier to talk to your neighbors with a Nextdoor Business Page designed for local businesses and their communities.
- Loyalty plans and special pricing – Create plans and pricing fitness programs that encourage more contract renewals, personal referrals, and rewards for your most loyal customers. You want to find any way you can to reward your customers for choosing you, so develop a strategy that can benefit both your business and your clientele.
From email lists to billboards, be open to trying new marketing methods and take note of the ones that work best for your business. Marketing your gym is an ever-evolving process, what works today may change in the future, so stay flexible.
#5 Services and products
The “opening a gym business plan” varies from business, and never more so than in the services and products section. While most gyms sell memberships by the month and year, with a variety of service levels, perks, and specialized options, there are plenty of other services gyms offer.Consider, for example, the wide range of fitness classes you have the option of offering, such as:
The list goes on. Not only should your business plan outline every service you plan to offer—including personal training as well. It should also encompass any products your gym plans to sell online and in-store.
Track your plans for expansion and what more your business can offer to bolster profits and bring up your bottom line. These details will be highly relevant in the following section.
#6 Financial projections
Before you can finish your business plan, you’ll need to properly access your finances. While physical fitness may be your passion, if you’re hoping to turn that dream into a reality, you’ll need to display why your business is a sound investment.
Financial projects should include information regarding:
- Membership numbers – Estimate how many members you’ll have by the end of your first year, based on similar businesses. Additionally, you may want to include your total member cap, as this is a hard ceiling to potential earnings.
- Cash flow – The money coming in and out of your business must be adequate to keep the lights on, the staff paid, and the business running. Show investors that your hard work and research have paid off with a solid cash flow report.
- Costs – Between rent, upkeep, and equipment, starting out can be costly. Estimate your overall costs, as well as when your business will break even on this initial financial investment.
The financial portion of your business plan may require some expert advice or specialized knowledge. Consider hiring a professional financial expert or seeking the (often free) advice available to those seeking to start their own small business.
Grow your gym with Nextdoor
A well-written business plan can open doors for your business. After following these steps, you might find yourself with the connections and capital to finally realize your dreams. Before you start buying barbells, visit Nextdoor to get a headstart on connecting with your community.
By claiming your free Business Page, you’ll have the ability to engage with nearby, potential customers who are motivated to support local businesses like yours. Consider sharing your business plan with neighbors on Nextdoor to find out what your community is looking for out of a gym.
Missoulian. Missoula youth gym emphasizes 'books before boxing'. https://missoulian.com/news/local/missoula-youth-gym-emphasizes-books-before-boxing/article_f76a50d2-0285-5b12-8b86-04196ebe72ef.html
KGUN. 78-year-old woman wins award for encouraging elderly to workout. https://www.kgun9.com/spiritofsoaz/78-year-old-woman-wins-award-for-encouraging-elderly-to-workout
KETV. Local gym uses 'smart fitness' technology for workouts. https://www.ketv.com/article/local-gym-uses-smart-fitness-technology-for-workouts/36338943