So you've decided to start your gym – in that case, congratulations on kick-starting your dream! Or maybe you're just sprucing up your gym to increase your revenue and growth potential. Either way, you've come to the right place because we're here to show you how to create a business plan for your gym.
Writing a framework for your gym's activities is one of the few cases where you don't want to go all out. Think about the good and bad things about opening a gym. Consider your goal of creating a fitness sign from both a creative and practical perspective. To succeed in the long term, you must establish a good foundation; that's where your fitness center business plan comes in.
Let's get to the heart of developing your gym's business plan. We've made a step-by-step guide to ensure the whole process works perfectly. First, we cover your gym's business model from financing to digitalization and scalability.
In this article
- Step 1: Write your summary
- Step 2: Describe your business profile
- Step 3: Set up an order of importance
- Step 4: Research the market and decide who you want to sell to.
- Step 5: Define your unique selling proposition
- Step 6: Describe your building, its contents, and the services you offer.
- Step 7: Present your subscription structure
- Step 8: Define the position of your investors, if you have any.
- Step 9: Appendix
Step 1: Write your summary
The summary is the first version, where you expose all the general details of the Business plan of your sports club. Your resume is the first thing potential investors will read, so be crisp and to the point.
Don't worry about the numbers, data, charts, mission statements, and other small details. Your abstract should be only a few paragraphs long and read at a glance.
Here is what it should contain:
- What is your activity ? (for example, a yoga studio, a CrossFit box, a climbing gym, etc.)
- A summary of your business model
- Why are you creating this business
- What market demand will your fitness business satisfy?
- Your unique value proposition
- How do you plan to succeed (in terms of profit and loss) in a short time?
- Your long-term vision
- What kind of funding are you looking for (if any)?
That seems like a lot for a single page. But you can (and should) change your executive summary after you've written your whole gym business plan.
Step 2: Describe your business profile
This is where you can personalize things by putting your passion at the forefront of your gym project. Your business profile should give readers an overview of your business, its purpose, people, and aspirations.
The main components of your business profile as part of a Fitness Center Business Plan are:
- Your mission statement (a catchy description of the goals and objectives of your gym business)
- The team behind the company
- Your history and past experiences
- Your target audience
- The desired outcome for your business.
Your creativity will run wild when you talk about your main passion: the guiding principles of your business. A gym business owner may wonder if they are doing everything right and the best way to run it. There is no wrong answer here. Just write with as much passion and clarity as you can.
Step 3: Set up and under of importance
For the most part, you'll be working with a small group of people to run your gym, whether you prefer a traditional top-down or flat hierarchy. Indeed, it is essential to specify the roles of each in your gym business plan.
Think about the positions you need to fill and how these people will contribute to your club's success. Then, create an organizational chart of your fitness center's management structure and define employees and their titles.
- Additionally, it is advisable to create CV-like descriptions of key staff members and elucidate their contributions to your business. This makes a better pitch when it comes to Step 8: Investors. We'll go into that in more detail below, but it's time to take the next step and work in the field.
Step 4: Research the market and decide who you want to sell-off.
Understanding the needs of your market is imperative to launch a gym business plan. This will tell you your potential for success in a certain market and help you make your business decision. That is, to determine the age group, gender, or type of sport you wish to serve.
Segment your population and the group you want to target to achieve maximum sales in primary and secondary markets in the region where you operate. In addition, segmenting your population will allow you to learn more about your consumers' profiles, earning capabilities, etc.
Devour consumer reports; find the well-compiled industry reports on fitness consumers in the COVID era and beyond. You can better craft your message by having this knowledge. But above all, to help your marketing efforts. It will help you devise a clear plan for everything from your brand to the equipment you buy.
For example, if you open your gym in an area with many students, budget fitness options will be more popular than a custom fitness club. Or, if you're opening in a place where outdoor rock climbing is popular, think about how the same people could benefit from your gym. For example, you could offer strength and endurance training to help them on the cliff.
The following should come out of your market research:
- Type of consumer (young professionals, seniors, students, athletes, etc.)
- The kind of establishment you are going to open
- The necessary equipment and personnel
This research can help you align your Unique Selling Propositions (USPs) with your chosen market.
Step 5: Define your unique selling propositions
Why are you, um, you? Alternatively, what distinguishes your gym from others? It could be anything from price, to the range of amenities you offer, to a particular location. Finally, when defining your USP in your sports brand's business plan, think from an investor's perspective; why should he believe in your business?
The mistake most people make when describing their USP is that they often elucidate the goals and objectives of their gym business for their consumers rather than their investors.
Also, show your work. Your market research will be useful here. Your USP ought to clarify:
- How do you plan to get clients?
- What makes you special?
- Your featured membership or subscription plan.
- Your special equipment (if any) and how it meets consumer demand.
Step 6: Describe your building, its contents, and the services you offer.
Here's the fun part: you'll be able to talk about your passion project and all it entails. Of course, you may (or may not) already have a location in mind. Nevertheless, you should know the size of your facility and the products and services you plan to offer there.
Describe your establishment:
- Your physical facility's location and size (if applicable and square feet).
- Visibility for potential customers
- Accessibility
- Areas within the facility
- Expansion potential
- Levels, toilets, changing rooms, staff areas, etc.
- Expected rent or lease
- Connection to roads or driveways
- On-site parking options
List your equipment:
- Your main training equipment (limit yourself to the stars of the show, you can list the rest in the appendix)
- Lockers
- Showers
- Studio rooms
- Virtual group training rooms
- Coffee/snack bar
- Other amenities
Describe your services:
- Physiotherapy
- Spa/sauna
- Yoga/HIIT/etc.
- personal coaching
- outdoor training camp
- On-site courses to increase subscription sales
- options for online training
It would be helpful to note that you have included architectural drawings, maps, or 3D renderings of your club in your appendix if you already have any of these items.
Step 7: Present your subscription structure
This is where you specify the subscription payment options for your members. Today's fitness industry is flooded with many payment infrastructures built to simplify life for you and your clients.
An all-in-one gym management system, can relieve you of daunting tasks like invoicing and tracking payments based on membership type.
So once you have decided on the type of membership you want to offer (student discount, pay-as-you-go, xxx entries per year, hybrid on-site and online membership, etc.
So you can then turn to gym management software. Explaining how you plan to use gym management software in your gym business model will highlight your USP (no cumbersome manual systems). It also shows your penchant for future-oriented solutions, which, in turn, builds confidence among your investors in your intention to increase your gym's revenue.
Step 8: Define the position of your investors, if you have any.
Not all gym projects involve investors. There are often few reasons to need an investor to have a say in your business. That said, you should always approach writing your gym business plan from a professional perspective as if you were applying for investment, with a bank or a partner, etc.
How to Write a Business Plan for a Fitness Center That Has an Investor? Establish a hierarchical ladder and define roles and boundaries. Investors worry about how much your business will make from their initial investment.
This is where you set boundaries and projections and give yourself and their exit strategies. In case this all goes wrong (we hope not).
Describe their return on investment (ROI) for the amount of money they invest and demonstrate how to break even. Explain what the organization will look like if they have shares in your fitness business. For example, if you are currently the founder and CEO, will they be able to replace you with one of their CEOs in the future?
There are countless variables involved, regardless of the size of your business. To help you sort things out, you might want to speak with an attorney and an accountant. They can also assist you in developing financial projections and selecting the best financial strategy for your fitness business. In addition, writing the business plan for your gym will undoubtedly relieve a lot of your stress.
Step 9: Appendix
The appendix is where you will share all the documentation to support your business. For example, as mentioned above, your gym's professional designs can be placed here.
This section of your gym management plan may include the following:
- Curriculum vitae of the management team
- An organizational chart of your entire business
- Roadmap
- Flyer mockups and other marketing materials to promote your business
- Maps of your site(s)
- Architectural Drawings, Renderings, etc.
- Layout/zones of your gym
- A table of the complete list of your equipment/services and the corresponding prices.
We sincerely hope our explanation of how to write a gym business plan was helpful. There are many things you can use to help you get started. If you're opening a new gym, please visithttps://www.mbplans.com/fitness-center-business-plan/ for the best fitness business tips.
Comments
Post a Comment