Do you need help smashing out afitness center or gym business plan? Whether you’re starting a new gym or giving your existing one a makeover, your business plan will guide you to success. If you’ve never written a business plan before – don’t stress. We’ve built a comprehensive step-by-step guide that will help you every step of the way. A word of warning – writing an effective business plan is not a quick and easy process. Like most worthwhile endeavors, it takes effort. But the time you invest now (including the agony of answering some very challenging questions) will help prove that your concept can work. Your gym is far more likely to succeed once you’ve been through the business planning process. So, let’s get started.
What is a gym business planA gym business plan is a blueprint and roadmap that explains your ideas and how you’ll get them to succeed. It’s essentially a detailed description of your vision, how the business will operate, and what you’ll do to bring it all to life. It describes your target customer, competitors and financials. Going through each step ensures you don’t overlook any detail in planning your gym’s success.
Why do you need a gym business plan
- Confirming to yourself that your plans make financial sense
- Securing a bank loan, business partners, investors and a lease
- Convincing talented prospective talented prospective trainers and managers to join your team
- Demonstrating your concept is desirable and unique in the market
- Mapping out the steps to make sure your gym is profitable
- Keeping you focused on achieving your vision
- Ensuring you’ve considered all regulations
- Delivering a blueprint for gym operations
Key ingredients of a gym business planWhether you’ve written a hundred business plans or this is your first one, it’s always helpful to use a template designed for your industry as a starting point. Here’s an overview of everything to include in your gym business plan:
- Executive summary
- Company description
- Market analysis
- Marketing plan
- Operations plan
- Financial analysis and projections
1. Executive summaryThe executive summary introduces and outlines your entire vision. It should capture attention, sell your dream and entice your reader to explore the rest of the plan. Consider it a sales pitch. Go light on the detail, you’ll address that later. Some people never make it past the executive summary, so you’ll need to convince them that your concept is worth their time to keep reading. It’s a good idea to write this section last when you’ve got all the details down and it’s easier to pull out the key highlights. You should include:
- Your mission statement and core values
- Overview of your gym concept and why it’s going to succeed
- Rundown of who will bring it all to life, and how
- Forecast costs and anticipated return on investment
2. Company descriptionThe company description introduces the basic information about your gym and outlines the vision for the customer experience. Ownership structure Detail the legal structure of the business. Whether you choose to be a sole trader, partnership or a limited liability company, it’s a good idea to seek legal advice. Funding If you’re starting a new gym, give an overview of the capital required. Save the detail for the financial analysis section. Gym concept Sell your reader on why your gym will succeed with an evocative and compelling description of your main ideas. Approach it as if you were telling a friend about a new gym you just visited that rocked your world. Describe it with enchanting adjectives to bring it all to life. Include details on:
- Unique features (like specialist classes, free wi-fi or latest equipment)
- Service offering (from weight loss programs to massages)
- Atmosphere (from family-friendly to a more competitive workout experience)
- Ambiance (lighting schemes, furnishings, music)
- Related services (memberships, online classes, protein powders)
- Size and capacity
- Operating hours
3. Market analysisThis section details your target audience, proposed location, and competitive environment. Target customer Who are your ideal customers? What are they looking for? Maybe they are exercise-deprived office workers aged 25-40 who live within 10 minutes of your venue, want group training, evening classes and a community of like-minded people to keep them motivated. Be as specific as you can and be clear on why they would choose you over other offerings in the area. Location If you’re opening a new gym, you might not have chosen your exact location when you’re writing your business plan. Totally normal. Just describe the area you’re targeting and how it aligns with your target audience’s demographics. Highlight growth in the local economy, major infrastructure and things that will drive visitation to your gym. Competitive analysis How many other gyms are there in the area? How are they faring? What makes you stand out? Why will customers choose you?
4. Marketing planYour gym marketing plan details how you’ll promote your gym before and after opening. It needs to be a comprehensive plan showing how you’ll grow your business. Consider using digital marketing, advertising, promotions, partnerships and events to reach your target audience and encourage them to become customers:
- Advertising: social media, digital display ads and newspaper ads
- Social media: a solid social media presence is a must. Set up Instagram and Facebook at a minimum
- Reviews: 91% of customers read online reviews to choose their gym. Set up your accounts on Google My Business, TripAdvisor and Yelp so that you can keep track and respond to reviews
- Website: with 93% of customers searching online before choosing local businesses, a website is essential
- Email marketing: use creative contests to build a database of email addresses so you can send updates and offers to customers
- Letterbox drop: in this digital age, old-school techniques like this can still work to reach local customers
- Loyalty programs: create membership programs with exclusive deals and events to retain your customers
- Partnerships with local businesses: for example you could offer membership deals through big local employers
- Sponsorship of local charities or community organizations
- Events: hold regular events that draw in crowds, like end-of-year challenges or kid’s exercise classes on a Sunday afternoon
- Digital signage: there’s no better way to grab your customer’s attention. Digital signs boost average daily sales by 30% because they drive foot traffic and temptingly showcase your service offerings
5. Operations planThe operations plan details how you’ll run your gym. By systemizing your operations, things will run more efficiently. Your operations plan can become the blueprint for staff training and an operating manual followed by all employees. Staffing:
- List of positions, roles and responsibilities and pay rates
- Number of people needed for each position
- Recruitment plan and interview process
- Onboarding and ongoing training plans
- How you plan to be an employer of choice that retains great staff
- Describe the daily routine of the gym
- Show that management is running a tight ship
- Include ordering, receiving, waste management, safety, cleaning and maintenance processes
- Your gym equipment is critical to the success of your gym, so list your supplier’s credentials to show you’ve chosen reliable partners
- Describe your required standards and what will trigger the need for replacement
- Have policies for establishing customer service standards so your customers have a consistently positive experience
- Include how you’ll deal with customer complaints
- Gym management software
- Digital signage to easily update class schedules and availability. Choose a system with reporting and analytics to track the effectiveness of your promotions.
6. Financial analysis and projectionsYou’ll need to show your start-up costs, anticipated revenue and expected expenses. Be realistic – there’s no point exaggerating the potential to secure investors if you can’t pull it off. It’s a good idea to get an accountant to help you complete this section. Try to find someone familiar with the specifics of gym finances. Include: Investment plan: Detail the capital you’re looking to secure and how you plan on spending it. There will be lots of expenses as you set up your gym, so add all costs including equipment, furniture, legal fees, supplies and payroll Financial projections: Have your accountant prepare a projected profit and loss statement using educated guesses. A break-even analysis will show what monthly revenue you need to cover costs. A cash-flow study should demonstrate how the gym will generate enough income to support itself.
Next stepsMake sure your business plan is professionally presented. Hire a graphic designer or DIY on Canva. If you share your business plan with potential investors, be sure to have them sign a confidentiality agreement, especially if you don’t want your innovative concept to be copied. Know your plan inside out so you’re ready to answer every curve ball question thrown your way.
Good luck with everything!You’ll invest a pile of time and effort in creating your gym business plan, but it’ll be well worth it in the long run. Your final document will give you (and your investors) confidence that your dream of running a successful gym is achievable.
Written by Lachlan Ross
Marketing Manager at Mandoe
I’m a SAAS-focused marketer with 10+ years of experience who likes to think I’ve got a way with words - thanks for stopping by and checking out this blog.