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In this section, you will present the costs associated with the initial investment and the spending plan for the first year of operation.
List the costs, dividing them into two groups:
After opening a gym, verify the costs regularly, preferably once a month.
Investment costs include, among others:
Regarding point 5 and 6, take into account a very important monthly purchase, which will however save your time and money finally. It’s a gym management software. You can compare some of the software providers on the market to meet the best gym management software . Yet, what we recommend is WodGuru . With its reasonable price, many useful features, amazingly helpful support and nice cartoon visual identity.
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How to finance the opening of a gym?
The biggest problem for a novice gym owner is finding financing for the first business. Various options are worth considering.
Considering bank loans or a subsidy, you must first think about the black scenario. What will happen if your business fails and you have to return the borrowed money? But also what to do to prevent this from happening? How much does it cost to open a gym and which costs are inevitable? How high the margin you have to impose on the training performance? This is the key to assessing the chance of return on investment in the gym.
The financial forecast consists of 3 elements:
Profit and Loss Account You will need to estimate the value of the sale considering the size of your gym, target market, sales volume, and revenue cost. You will get a profit and loss forecast, comparing this with the costs. The easiest way to prepare a profit and loss account is in the form of a table:
Months of running a business | Month 1 | Month 2 | Month 3 | e.t.c. |
---|---|---|---|---|
Number of fitness classes per month | ||||
Average class value | ||||
Monthly income (turnover) | ||||
Variable costs per month | ||||
Fixed costs per month | ||||
Profit per month | ||||
Profit margin (in percentages) |
Investors will want to know how much revenue you will need to generate each month to break even after all fixed and operating costs are considered. In the analysis, you should show how you intend to generate the necessary revenue, even in difficult months with lower sales.
It is worth doing it to assess the negative scenarios.
This will allow us to be prepared better for different financial crises and reduce stress when such a situation arises.
Make a sensitivity analysis in the form of a table
– – – | – – – | – – – | – – – |
Business is people. Describe what your team will look like, dividing it into two groups:
If you are looking for investors, this area can be critical for them.
Describe the founders:
Which positions are necessary for the daily functioning of the premises? Is it the receptionist, a permanent personal trainer, an outsourcing trainer, social media platforms specialist, etc.? Who will suffice as emergency help?
Think about which people you already know with the necessary competencies. Which ones will you have to look for or train as your employees from the beginning? The cost of necessary training should also be included in the gym business plan.
Describe the team you need to build:
Ideally, your marketing strategy should include the items we listed. Below we describe how to do effective marketing in your branch.
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Determining the direction of development is very important at the beginning of your business. When setting gym goals you want to achieve in a certain time, you should start with the wider ones, reaching those at the everyday level. It is also worth considering how you want to achieve these goals.
During project execution you need to observe and adapt initial goals. It enables effective management and reduces losses in marketing, service, and other areas. Your gym’s written plan should clearly outline the vision and strategies to achieve desired objectives.
We created a sample gym business plan to help you write your plan. Click below to download an example of a business plan for a gym.
Download: Free gym Business Plan Template
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Key Takeaways
How to write small gym business plans.
Regardless of the size of the gym or business, the steps of gym business planning remain the same. Writing this document for a small gym consists of creating:
In our opinion, yes. If you are serious about putting your place in the whole fitness industry, you must implement a repetitive method of working “on the company”. A BP that is updated regularly every month and year is a way to run a business.
Opening a gym with no money can be challenging, but it’s not impossible. Here are some ways to open a gym without enough funds:
Discover more ideas on how to open a gym with no money.
Promoting a gym is key to attracting new guests, increasing sales and retaining regular customers. A few steps to help you promote your gym:
Check these gym promotion ideas for inspiration.
A gym’s profit depends on many factors, such as location, offer, prices, service quality, and business size. The average gym profit margin is between 10 and 15% per year, but it can vary significantly depending on the factors mentioned above.
Franchise gym profits on the lower end of 10%, boutique fitness studios averaging 20% to even 40% profit margins, and CrossFit gym profit margins in the 25-30% range.
A gym business plan is crucial for several reasons:
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Opening a gym, 20+ types of gyms (guide for gym owner with examples), gym revenue, how much do gym owners make in 2024, how much does it cost to open a gym in 2024, we will send the materials to your email.
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Is exercise or fitness your passion? Or do you have a good understanding of gym equipment and workout routines?
If yes, you might have considered having your own gym at some point. After all, who doesn’t want to turn their passion into a profession?
And guess what! Just like you wouldn’t hit the gym without a workout plan, starting your own gym demands a comprehensive gym business plan!
If you’re seeking investors to kickstart a new fitness center or aiming to expand an existing gym business, a modern business plan is an essential tool.
A well-written gym business plan will help you pay attention to every detail, and support your entrepreneurial journey to make the best strategies for a profitable business.
But before diving right into the detailed gym business plan; let’s check out some interesting facts about the fitness industry.
Now that you know the fitness industry outlook, it’s time to explore all the key components you will need to include in your professional gym business plan outline:
The executive summary is the first and foremost section of the business plan. Generally, it is a quick overview of your entire gym business plan.
It should be clear, concise, and engaging as it will create your first impression and draw readers to delve further into your plan.
You can start this section with a brief introduction to your gym business and discuss the following key elements:
After that, end your summary with a clear call to action to invite potential investors or readers to the next meeting.
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The company overview section provides a more detailed description of your gym business.
It includes the legal structure, location, ownership, critical success factors, business history, and everything about your business.
First, provide the basic details of your gym including what is the name and what type of gym you are operating.
Mention the names of your gym owners/partners along with the qualifications. You can also include the business history(if any) and milestones you have achieved.
After that, describe your business goals to convey a high level of aspirations and vision that you want to achieve. Here is an example, describing the business goals and objectives:
Setting future business goals for a gym is a crucial step in outlining a clear path to achieve success and growth. The Stayfit Company’s goals and objectives include;
Remember, this section gives an in-depth understanding of your business and business owners. So, make it clear and intriguing.
In the industry and customer analysis section of your gym business plan, it’s necessary to offer a comprehensive overview of the fitness industry and target market.
This section gives you a deep understanding of your industry and target customer attributes which will help you in business planning.
Here are some questions that will help you in the analysis:
For example, look at this market segment and target market of the gym business with the help of Upmetrics:
As a gym owner, you can target the following customer profiles:
In short, a thorough industry analysis will educate you about the local market and help you prepare marketing strategies according to the market trends.
This competitor analysis will help you understand the top competitors and identify the strong points of their service offerings.
As a gym business, you should make a list of the number of gyms or other fitness businesses operating in your locality, their size, and their customer base. Try to specify who are your direct and indirect competitors.
Now, let’s focus on your direct competitors and provide an overview of each competitor, including their size and where they’re based. Evaluate their strengths and weaknesses including their service offerings and pricing structures.
Refer below example; showing competitor analysis description:
A better way to conduct this analysis is by noticing things from a customer’s perspective. You might even ask your competitors’ clients what they like or dislike about them to get valuable insights.
This way you can understand what makes your competitors successful and what gaps you can fill. Also, consider the unique selling proposition of your gym business.
Specify your tactics to stay ahead in the competitive landscape and make all the difference in the local gym market.
Next, specify the scope of your service offerings and elucidate how they meet the diverse needs of your clientele.
This section must be informative, precise, and client-focused, as it is a detailed breakdown of what your fitness business offers your customers.
You can include a comprehensive suite of services encompassing types of membership options, available exercise equipment, personal training sessions, group fitness classes, or nutritional counseling.
Here, you can take a reference from the below example written using Upmetrics AI Assistant :
Also, detail any membership fees or pricing plans in this section to add or revise services. Mention if your gym provides any additional services, like physical therapy, massage therapy, recovery modalities, etc.
Writing the sales and marketing plan section means jotting down all the customer acquisition strategies and the tactics for how to retain them.
You can consider the following marketing approaches to gaining and keeping customers for your new gym business:
Define your gym’s USPs depending on the market you serve, the gym equipment you use, and the unique services you provide. Highlight certified gym trainers, specialty programs, and regular community events.
Use social media platforms to attract more users. Create engaging content and entice your audience with inspirational posts and special offers. Connect with your customers digitally as well as in the gym.
Establish a professional website and brand symbol (gym’s logo) to reach a wider audience. Showcase all your service offerings and build trust among potential customers.
Consider loyalty plans to retain existing gym members and encourage long-term commitment. Create membership tiers or referral programs to offer discounts or additional benefits.
Partner with local businesses (health food stores, fitness centers, or clothing brands), and fitness influencers to cross-promote services or offer collaborative discounts. That can expand your gym’s reach and draw a broader audience.
Traditional offline marketing can still be effective in engaging with your local community. Clearly state your advertising strategies, including open bulletin boards, print marketing, flier distributions, or community events. For instance,
Consider following offline advertising strategies to reach specific demographics:
Try to develop detailed strategies, like offering special introductory discounts, free trials, seasonal promotions, or membership packages with additional services to attract and retain members.
A strong management team is essential to showcase your gym’s ability to thrive in the industry. This management team section emphasizes the key members who can help grow your fitness business.
You can highlight your key managers, fitness experts, personal trainers, or nutritionists. Also, explain each member’s expertise and roles.
Also, discuss the compensation plan in this section, along with their salaries, incentives, and other benefits. For instance,
This operations plan is like a map that shows how you will make your business work.
It provides detailed insights into the day-to-day operations of your gym and highlights key areas such as staffing and operational processes.
Consider adding below essential components to your operational plan:
Try to mention the number of trainers, support staff, and therapists needed. Briefly outline the duties they will perform and detail their qualifications & training required.
Summarize the processes and techniques you will use to run your gym. Your operational process section may include hosting fitness classes, assigning trainers, scheduling the group HIIT classes, billing, training staff, etc.
You can include the list of gym equipment and machinery required for the gym, such as strength training equipment, pull-up bars, cardio equipment, free weights/dumbbells, and aerobic equipment.
Refer to the below example written using our AI assistant:
Presently, you are in the business planning phase, but devoting some time to putting together the most realistic financial projections is also crucial when you start seeking funding from investors.
It is a detailed blueprint of all the cash flow and revenue streams, initial startup costs for setting up your gym and equipment, profit margins, and operational costs.
So, mention all the below elements in your gym business plan outline:
This financial forecast has a substantial value in terms of whether you secure funding or not. And evaluate the funding resources, including bank loans, SBA-guaranteed loans, crowdfunding, or personal savings.
Here’s an example of a projected P&L statement for a gym financial plan with the help of Upmetrics:
Need help writing your gym business plan from scratch? Well, here you go; download our free gym business plan pdf now and start writing.
This modern, user-friendly business plan template is specifically designed for your gym business.
With a step-by-step guide and example, it helps you write a solid gym business plan without missing any crucial steps.
The Quickest Way to turn a Business Idea into a Business Plan
Fill-in-the-blanks and automatic financials make it easy.
With Upmetrics, you will get easy-to-follow steps, 400+ sample business plans, and AI support to streamline your business planning approach.
Our financial forecasting tool will help you develop accurate financial forecasts for 3 or more years if you’re not great with financial formulas.
Whether you’re venturing into a new business or aiming for expansion, Upmetrics provides valuable resources and insights to build successful and professional business plans that perfectly align with your objectives.
So, don’t wait; start planning now !
Frequently asked questions, where can i find examples of successful gym business plans.
There are various online platforms where you can find sample business plan templates. Consider reputable sources like Upmetrics , which offers a successful gym business plan template for your specific needs.
You should include the following key elements in your gym business plan:
While writing a business plan, consider the following gym location factors:
It is very necessary to regularly update your gym business plan, especially in dynamic industries like gym & fitness. Consider updating it at least once a year or more often if there are significant changes in your business.
Following are some of the most common mistakes you should consider avoiding when writing a gym business plan.
About the Author
Vinay Kevadiya
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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