creating a gym business plan

Gym Business Plan Template

Written by Dave Lavinsky

Gym Business Plan & Example

You’ve come to the right place to create a gym business plan.

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 gym business plan.

Executive Summary

Business overview.

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.

Service Offering

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

Customer Focus

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.

Management Team

Steven will manage the day-to-day tasks of running the gym. Steven will hire a gym manager to manage membership and three trainers. 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.

Success Factors

Steven’s Gym will be able to achieve success by offering the following competitive advantages:

• Large, clean, and spacious fitness center 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.

Financial Plan Highlights

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

Company Overview

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 fitness classes, strength training instruction, and personal training. Located in an up and coming, 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. 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:

Industry Analysis

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. 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. Additionally, initiatives that promote the health benefits of exercise will likely increase over the next five years, stimulating industry revenue.  

Customer Analysis

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.

Customer Segmentation

Steven’s Gym will primarily target the following customer profiles:

• High school and college students
• Locally-based Military
• Athletes who frequently train for fitness competitions

Competitive Analysis

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 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 fitness classes tailored towards someone’s fitness needs, and the world’s best trainers. There are weekly fitness 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’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 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.

Anytime Fitness 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.

Competitive Advantage

Steven’s Gym will be able to offer the following advantages over their competition:

• Large, clean, and spacious facility that has all the necessary equipment for their fitness routine.

Marketing Plan

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.

Promotions Strategy

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.

Billboards 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.  

Operations Plan

The following will be the operations plan for Steven’s Gym.

Operation Functions:

• 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 members and member management.
• A team of three trainers will run all of the fitness classes. As the membership grows and clients require more attention, more trainers and fitness classes will be added.
• A local CPA will 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.

Milestones:

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. 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 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.  

Financial Plan

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

Key assumptions.

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

Financial Projections

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 or fitness centers. 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 a gym or fitness center are membership fees. Typically, members pay month-to-month, or fulfill a year-long contract.

The key expenses for a gym or fitness center 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.

A well-crafted gym business plan, complete with a solid financial plan is essential for attracting any type of potential investor. This is true for a new gym business or established businesses looking to grow.

What are the Steps To Start a Gym Business?

Starting a gym or fitness center 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. Write A Gym Business Plan - The first step in starting a business is to create a solid gym business plan that outlines all aspects of the venture. This should include market research on the fitness industry and potential target market size, information on the services and/or products you will offer, marketing strategy, mission statement, business model and pricing strategy and a detailed financial plan.  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 fitness   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 or fitness   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 to reach your target audience.

Learn more about how to start a successful gym or fitness business:

• How to Start a Gym Business

Where Can I Get a Gym Business Plan PDF?

You can download our free gym business plan template PDF here. This is a sample gym business plan template you can use in PDF format.

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Gym business plan: a checklist with templates & examples

In this article, you'll find a checklist of everything you need to know to create a business plan for your gym or fitness business.

If you've recently discovered an ambition to start a gym , or this has been your dream for years, we've got you covered!

The first step in your journey is to create a gym business plan. This will include understanding your business's structure, determining your target market and what sets you apart from other gyms (your unique selling point), forecasting future finances, and any further details about your venture.

Your gym business plan is the key to your success. It will help you make better decisions and attract potential investors. Creating a business plan is ongoing; it's not something you do once and then forget about. Your business plan should be flexible and adapt as you move forward. 

You have to consider many elements to ensure your gym will succeed. All stages of your business plan are critical. In this article, we'll be doing a deep dive into understanding the core essentials of creating a fitness business plan.

What is a gym business plan? 

A gym business plan is a document that informs the reader about your company and where it's headed. In other words, it answers essential questions such as:

• How does your business work?
• How are you going to succeed?
• What steps do you need to take to succeed?

According to research, entrepreneurs who write formal business plans are more likely to be successful . 

This is especially true for business owners seeking external financial support. A formal business plan can help new businesses by providing a clear focus for their ideas.

Why it’s important to have a business plan for your gym? 

Simply put, your gym business plan is an organized and detailed process that provides a roadmap for your business. If someone reads it – like a potential investor, for example – they should be able to understand how you expect the gym to progress and succeed over time.

Plus, putting together a business plan with detailed description forces you to take a critical look at your operation as it currently stands and identify room for improvement or new areas of opportunity altogether.

Depending on where your business is located, a well-crafted business plan can serve multiple purposes.

Keep reading for even more reasons you need a business plan from day one!

Taking advantage of a steadily growing industry

The gym industry is booming, allowing gyms to capitalize on this growth. In the US alone, over 87 million people regularly attend the gym and spend billions of dollars annually on membership fees.

And according to projections, the global gym market is expected to reach 434 billion USD by 2028 – a 171% increase from 2021! This steady growth provides room for gym owners to get in on the action and reap the benefits.

By having a gym business plan that considers the health & fitness industry as a whole, you'll be able to capitalize on this growth.

Ensures your business idea is feasible 

If you're considering starting a fitness business, know it will be complex. You have a fantastic idea and think it could take off--but how can you test that theory without launching the business? 

This is where a business plan comes in handy. By working through your concept and creating a well-rounded plan of action, you'll be able to figure out key details like numbers, market trends, and what your competition is doing and save yourself loads of time down the line.

It helps to bring in investors and secure funding 

To secure funding for your gym business from investors, you need a comprehensive business plan. This document helps startup businesses obtain the initial capital they need and provides established companies with funds for expansion.

Would-be contributors usually request substantiated data— such as numbers backed up by facts and figures—before deciding whether or not to invest in a project.

If you don't have a business plan, chances are slim that you'll receive money from sources like investors, banks, or other financial organizations outside your company.

Set and reach goals, both big and small 

Having long-term and short-term goals is a great start, but it's time to take the next step. A successful business plan will contain specific tactics on how you plan to achieve your objectives. 

This might be through your business model, acquiring equipment, hiring new talent, or marketing campaigns.

A successful business needs a clear plan to achieve its goals. Breaking down important goals into smaller, more manageable pieces would be best. 

And remember-- as your business changes and grows over time, so should your plan. Keep it updated regularly. 

Business planning is no longer a daunting task

A business plan is a vital tool for new and established businesses. It provides direction and helps to set the foundation for a successful start. 

By budgeting, analyzing your market, and setting out your goals and strategies, you can make more informed decisions about how to proceed. This process also makes it easier to track your progress over time and assess whether or not you are on track.

Something to consider before creating a gym business plan

Consider the cost of starting a gym. There are many potential expenses, such as equipment, personal trainers, class instructors, insurance policies, property fees, etc.

Also, consider how much time you are willing to invest in this venture – especially during the beginning stages when there is likely to be a lot of work involved in getting everything up and running smoothly.

It can be challenging to maintain a good work/life balance when starting any business; it will probably require working additional hours outside of your usual schedule.

Money and time are essential, but there are other things you need to be successful. 

People skills, marketing know-how, and financial smarts are essential if you want to succeed in the gym business world. It's not going to be easy, but it will be worth it if this is your passion. A solid plan is the first step toward making your dream a reality.

The 11 key elements of a detailed gym business plan

Before you develop your business plan, think about where you are and where you want to see yourself. Keep this vision in mind, as it will help guide you through writing your business plan. There will be countless opportunities wherein consulting your business plan will assist you in making a decision.

To create an effective health club business plan, you will need extensive research on your fitness industry, competitors, and future finances. 

Following these 11 steps, you can build an excellent gym business plan that covers all aspects of your health club.

Step 1: Executive summary

Your executive summary needs to be clear and concise while also grabbing attention. What you want readers to know is:

• Your mission/purpose
• How you'll achieve success (What will make you a success story?)

And finally, your vision for the future. Though it may seem tempting to hurry through this section because it is shorter than other parts of the business plan, don't rush! 

This is your chance to shine and explain what makes your company special. Don't worry if you feel like you have more to say about your goals and vision. You can expand on these topics in your company overview.

Step 2: Company overview

Your company overview is where you get to sell your gym and its potential. Build on your executive summary's vision and mission statement, delving deeper into what makes your gym unique. 

Think of your vision statement as a tagline for your future website. When outlining the purpose of your gym, which audience it will cater to, and how you plan to achieve business goals, also consider including the following: 

Your personal mission statement for the business- i.e., what outcome do you hope to see?

Then, give your readers some information on your background:

• What have you done in the past?
• Have you had any other businesses?
• What is your current status?

This is helpful for investors and partners to know so they can understand where you've been and where you're going. The more they know about you, the more trust they'll have in you.

Step 3: Services and amenities

Outline your strategy in detail: what services you'll offer and how you will develop new offerings. This includes if you need to hire someone or build a facility, such as a spa or a studio. 

This information will help you realize when or where your business requires more funding and extra staff.

By describing your products and services, you can gain valuable insights into your gym's size. Test your vision to determine if you have the necessary funding for these assets. If not, consider how you might acquire the required financing.

Some potential products you could invest in are: 

• Gym equipment like treadmills and rowing machines 
• Specialist equipment to cater to different types of gym-goers, such as bodybuilders 
• Food and drinks like energy drinks or healthy foods 

And services like: 

• Personal training sessions 
• Group classes like yoga, spinning, or body pump 
• Lockers for storing belongings while working out 
• Spa amenities like saunas or massages 
• A swimming pool 
• Physiotherapy

Furthermore, thinking about increasing your market share is a significant next step. You could start by offering pro bono services at local workplaces and schools, eventually introducing a fee.

This way, you can attract larger customers while still providing value.

When creating a business plan - be it for a gym or something else entirely - remember that its purpose is to lay out your objectives easily for potential bankers, partners, employees, and investors.

Step 4: Management team

It is essential to consider the positions you'll need to fill and how these people can help your gym succeed. 

You should write a summary emphasizing their skills and management experience while incorporating what they will be responsible for and any incentives you plan on offering.

Furthermore, creating an employee ladder is vital to establish who or what each new hire will report to so your business can secure its success.

Step 5: Market research and marketing strategy

Marketing is a field where creativity can shine. It's all about identifying different groups of people who would buy your product, coming up with reasons why they should choose you over others, and figuring out ways to get more sales.

Learn more:

Gym marketing strategy

Gym promotion ideas

Gym membership pricing

Best gym features

Even if marketing your fitness business isn't your favorite thing, remember that your marketing strategy will help you lay out a plan for expansion if you do it right. Your first target should be to summarise what you found in your market research. Are you still stuck? 

Consider where you are situated, similar businesses nearby, and who makes up the community around you.

Define your target market here. It could be

• Working professionals
• Senior executives

Or a particular group, like cyclists. After that, try to understand why this specific demographic would join a gym – for example, are they looking for cardio?

After you have completed your market research, take some time to understand your target audience. Ask yourself the following questions:

• How can I make this customer base loyal?
• What makes my company unique?
• What's the best membership package I can offer?
• Is there a need for special equipment or offerings?

In your plan, identify and communicate what makes your business valuable and unique. 

This is called a Unique Selling Proposition (USP), and it will help instill confidence in potential investors that they are making a wise choice by investing in your company. 

Furthermore, detailing marketing strategies in this document provides peace of mind that future income streams are lined up and secure.

There are many marketing strategies you can use to grow your business, including:

• Improving your services
• Advertising and sponsorship
• Loyalty plans and website promotions
• Email marketing campaigns
• Investing in new equipment or technology

Step 6: Competitor analysis - Understanding direct and indirect competitors

To do a competitor analysis, research businesses in your field that offer similar services. These are your direct competitors. 

You can mention indirect competitors, but this section is mainly for an in-depth look at businesses like yours. Depending on your business type, you could have brick-and-mortar and online rivals.

When investigating a competitor, these are some critical areas you'll want to focus on: 

• Services and products they offer 
• Target audience 
• Pricing and business model 
• Strengths and weaknesses

Step 7: Create comprehensive financial projections

Starting a gym requires careful budgeting. Make sure you consider every possible purchase and estimate the cost of each item.

The following are key areas to cover when starting your business:

• Lawyer fees
• Recruiting expenses
• Constructional endeavors
• Exercise equipment for the workplace
• Three months' worth of bills and other operational costs
• An accounting software

It's time to be practical and ascertain how much money you will need to open your gym and make it thrive. This way, you'll get a better understanding of what falls within your budget and what will require additional funding.

Next, you need to prove to investors, stakeholders, and employees that you have a feasible plan for attaining ROI. 

Consider revenue streams such as classes, services provided, and product sales- anything that brings in money. Set down an estimate here based on research and expert opinion.

If you're looking for ways to make money, selling healthy food could be a great option. You could create your protein shakes or energy bars, for example. 

If you plan to sell food, ensure you stay up-to-date with food hygiene standards.

Step 8: Financial forecasting

Your sales forecast for your business's first, second, and third years should be detailed. Specifying the number of active members, you estimate for your first year would also be beneficial. Estimate using:

• Unit sales per month
• Any relevant past data
• How purchases will be broken down (as specified in financial projections)

Step 9: Financial strategy

How can you use your fees in a way that will increase customer registration? For example, if all the other gyms in your area charge higher prices than average, this could be an opportunity to set your business apart by being financially conscious (lowering membership fees or having better offers than competitors).

Consider ways to show your appreciation for loyal customers, such as discounts or complimentary services.

Furthermore, if you're in the process of creating a gym and spa business plan, consider adding discounts for those who use both facilities. For example, many people would love to take advantage of the jacuzzi after working out.

Writing your pricing strategy down will help give you peace of mind about what's to come for your gym.

Step 10: Payment option

An easy and accessible payment system is crucial for any business, let alone a gym. To retain customers , ensure your payment processing is up-to-date and user-friendly. 

Let potential investors know what platform you're using or planning to use, so they can see that you're taking customer experience seriously. A positive buyer experience will encourage loyalty among your clientele.

Step 11: Funding

Make it clear where your business will obtain the extra startup capital it needs. 

This is a chance to be practical about your company. Can you realistically obtain the funding required to reach your targets? Or do you need to readjust your plan?

Below are some vital external resources that might provide the necessary funding:

• Loans from friends or family members
• Crowdfunding campaigns
• Business partners or sponsors

If you are looking to gain investors, be sure to detail where the funding for your project will come from and how much of a return they can expect. You should also include any previous loan applications related to this venture here.

You're almost there!

Now it's time to put all the elements outlined above into a gym business plan. This plan will be a reference point when you need to make tough decisions, help secure investment, and show direction to new employees or partners.

Your next steps to successfully run your gym

Here's a personal checklist to help you ensure that you have everything covered before you open your gym. Use it as a reference point throughout the development process to ensure nothing is overlooked.

• Write a business plan
• Register business
• Apply for a business license and permit
• Open business bank accounts
• Select an online payment platform
• Obtain taxpayer's ID
• Purchase insurance
• Rent/purchase facility
• Purchase/rent equipment
• Secure funding
• Recruit employees
• Drafting contract documents along with any other legal documents required
• Design company logo
• Develop website
• Write website content
• Create social media accounts
• Design leaflets & brochures
• Organize branded uniforms
• Launch party

Any business, no matter how big or small, comes with its fair share of challenges. However, the payoffs in the end always make it worth your while

Starting a gym can be an exciting and rewarding venture. However, it is important to ensure that you are well-prepared with all the necessary information before you open your gym. 

A comprehensive Gym Business Plan detailing the market research, financial projections and strategy, services and amenities, management team, and more should be developed to ensure success. 

Additionally, obtaining the necessary licenses, finding and hiring trainers, investing in the right equipment , and appealing to members with friendly incentives are all important steps.

Gym business plan template & examples

In addition, we've gathered a few of the gym business plan templates and examples below. These samples will provide you with suggested language for your own document as well as guidance on what to include.

Adam Fitness Centre

Grow think's template

PAWSitively Fit Club

Ecogym business plan

Capital Health and Fitness Club

Frequently asked questions on good gym business plan

How can i start my own gym business.

Follow these steps and understand gym business plans:

• Choose your area/location
• Develop a comprehensive business plan
• Apply and obtain all necessary licenses
• Find and hire certified trainers
• Invest in the right equipment for your business
• Appeal to members with friendly incentives

How do I write a business plan for a gym?

To write a gym business plan, you can implement the steps below:

• Executive summary
• Company overview
• Services and amenities
• Management team
• Market research and marketing
• Competitor analysis 
• Financial projections
• Financial forecasting
• Financial strategy
• Payment option

What type of gym is the most profitable?

Out of the gyms surveyed in November 2020, 69 percent of CrossFit gyms were profitable, while half of martial arts gyms reported being in the black.

Is owning a gym a good business?

Owning a gym can be profitable, but you will need more time to make yourself rich. To succeed in this industry, you must put in the effort.

Do gym owners make money?

According to ZipRecruiter, an American jobs marketplace, gym owners in the United States will earn an average of $69,472 annually as of June 2022.

Do gyms make a lot of money?

A gym that is managed efficiently and has a good mixture of members can generate quite a bit of money. For example, if a gym has 1,000 people paying $50 monthly, the gym could bring in $50,000 each month. And if the monthly expenses for the gym are $20,000 per month, the profit would be $30,000 per month.

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How to Create a Business Plan for Your Gym

Crafting a gym business plan that prioritizes modern technology can help your new fitness business succeed.

A passion for fitness alone isn't enough to open a gym. If you want your business to thrive, you must create a roadmap for success. Gym business plans outline your business's goals and strategies to help you reach those goals, providing a structured framework for decision-making, resource allocation, and long-term growth.

Let’s explore everything you need to know to craft a successful business plan for your gym.

Why Do You Need a Gym Business Plan?

Writing a business plan can feel daunting, and you may wonder if it's worth the time and resources. While you may feel overwhelmed now, pausing to plan offers significant benefits.

Improves Success

A well-thought-out business plan improves your chances of success and accelerates growth. Studies show that entrepreneurs with formal business plans are more likely to succeed .

Additionally, companies with well-developed plans grow 30 percent faster than those without. Why? A strategic business plan creates a path toward achieving important milestones. It outlines specific strategies, timelines, and measurable targets, enabling you to track progress and adjust as needed.

Helps Secure Funding

Whether you're seeking a loan or attracting investors, a comprehensive business plan is essential to secure funding for your gym. Potential investors and banks typically require a business plan that includes market data and opportunity, a high-level marketing and growth plan, and projected costs and revenue.

Crafting Your Gym Business Plan With Modern Technology at The Forefront

With over 32,000 United States health clubs vying for members, new gyms must incorporate modern technology in their business plans to outperform their competitors.

"Technology spans nearly every element of the modern gym environment," says Randy Hetrick, Founder and CEO of OutFit Training. "From member acquisition, utilization, and retention analytics to scheduling, billing, goal setting, program design, biometric analysis, and more – technology touches nearly every aspect of a modern club."

In today’s rapidly evolving fitness landscape, adopting a tech-forward strategy isn't optional; it's a necessity.

Benefits of a Tech-Driven Business Approach

Improves member retention.

Providing a location to pump iron and break a sweat isn't enough to retain members. In fact, most gyms lose 50% of new members within six months of joining. Today, gym goers demand more than just equipment. They want a seamless experience that takes their fitness to the next level. Incorporating modern technology, such as personalized workout apps, virtual classes, and progress tracking, enhances your member's experience and improves retention.

Streamlines Operations

Repetitive administrative tasks are a time suck for gym owners. Ditch the spreadsheets and opt for a more efficient gym management strategy by investing in gym management software. Gym management software streamlines fitness facility operations by centralizing tasks like member registration, class scheduling, and billing. It also automates routine processes, like membership renewals and payments, reducing administrative work and minimizing errors.

Diversifies Revenue Streams

The demand for online exercise courses has increased 132% year-over-year. This trend presents opportunities for gym owners interested in diversifying their revenue streams and bringing in more money.

Offering virtual workouts caters to individuals who may be too busy to visit the gym every day. It can also help boost in-person attendance by 12%. This means not only meeting the needs of those who prefer the flexibility of virtual workouts but also encouraging more people to show up at the gym when they can. It’s a win-win situation for gym owners looking to adapt to changing preferences and attract a broader audience.

The Core Components of a Tech-Driven Gym Business Plan

Now that you understand the importance of a business plan and technology's role in helping your gym thrive, let's explore the essential elements aspiring entrepreneurs should include when crafting their strategies.

Executive Summary

Your executive summary serves as a bird's eye view of your gym, providing insights into your business model at a glance. This section introduces your business idea to readers and includes your mission statement, goals, leadership, operations, and locations.

Products and Services

This section outlines the range of products and services your gym will offer. Here, you should provide pricing information and detail your services' unique features and benefits, emphasizing how technology will enhance the overall fitness experience for your members.

Market Analysis

If you want to turn your dreams of gym ownership into a reality, you need to understand consumer behaviors in your area and economic trends in the fitness industry. In this section, delve into your local market, identifying target demographics, competitors, and potential growth areas. Analyze the demand for tech-driven fitness solutions and showcase how your gym is positioned to meet and exceed these market needs.

Marketing Strategy

This section should detail your marketing strategy, outlining how you plan to promote your gym and attract members. Include both traditional and digital marketing approaches, like social media marketing. A well-crafted marketing strategy will include strategies for building brand awareness, promoting special offers, and fostering community engagement.

Financial Projections

This section should outline your gym's financial planning and projections. If you already own a fitness business, include your financial statements from the previous two years, a listing of current or desired equipment to be purchased, and other relevant financial documents.

Aspiring gym owners should provide detailed financial projections, including revenue forecasts, expense estimates, and expected profit margins. If you need funding, include details about the financial assistance your gym will require. Most likely, you already know your business growth path. Demonstrating that growth path to third parties will help you unlock the funding you need to spur things into action.

The Importance of Financial Forecasting

Opening a gym is not for the faint of heart. Industry professionals estimate that 81% of fitness studios fail in their first year. This failure rate is often due to insufficient funds. If you want to avoid becoming a negative statistic, it’s essential to have a realistic financial plan in place before you open. Financial projections can help establish a budget and create benchmarks toward achieving your gym’s financial goals.

Creating Data-Driven Financial Projections

Financial projections predict the future income and expenses of your gym. This information helps you anticipate financial needs, set realistic goals, and demonstrate your business’s viability and potential success to investors.

Steps to Create a Financial Projections

Collect relevant data.

Established gyms can consult their historical data, like past financial statements, when crafting their financial forecast. However, aspiring gym owners with no historical data must conduct more research. Helpful data to explore when creating financial forecasts includes comparable market research (local and national), industry benchmarks, and analyst reports.

Forecast Expenses

Typical gym expenses vary widely from facility to facility. Opening a gym can cost anywhere from $50,000 to $1 million. When creating your financial forecast, consider the cost of opening a gym and ongoing operational expenses like staff salaries, insurance, the cost to lease property, and marketing.

Forecast Sales

Make a list of your planned revenue streams and project the monthly sales for each. Possible revenue streams for gyms include memberships, merchandise, digital classes, and personal training. Use the data you collected at the beginning of this process to make sales predictions. Remember that revenue tends to ramp up over time, so include a reasonable growth rate for revenue, start at $0, and build into what you believe is realistic.

Forecasting Profit

To forecast your net profit, compare how much money you plan to spend on the business with your predicted revenue. Demonstrating a path to profitability will show your lenders or investors (and most importantly, yourself) that your gym can be a successful and profitable operation.

Innovative Marketing Strategies for the Modern Gym

You could have talented trainers, high-tech equipment, and unique classes, but if no one knows your gym exists, you won't stay open long. including a comprehensive marketing strategy in your business plan is essential to attract new members. this strategy should include a variety of digital channels and outline what techniques you plan to utilize to reach your target audience., create a well-designed website.

Today's consumers expect businesses to have a website. Nearly everyone conducts online research before making a purchase. If you want to be on your target audience's radar, you must provide them with the opportunity to learn about your gym online.

If it's in your budget, we recommend working with a website designer. Poorly designed websites can do more harm than good, driving away potential customers. Skilled website designers will ensure that your website looks professional and is easy for users to navigate.

Optimize for Search Engines

Many business owners think having a website is enough to get discovered. However, creating a professional-looking site is just the tip of the iceberg. If you want your business to show up when prospects search for gyms in their area, you must invest in search engine optimization (SEO).

SEO enhances your website's visibility by optimizing your site's content and structure to rank higher in search results. This makes it more likely that prospects will find your business. Tools like Semrush and Ahrefs can help you identify keywords to include on your site that may help improve your ranking. Given how tricky SEO can be, having a pro in your corner can make things way easier and boost your gym's online game.

Implement Social Media Marketing

With over 302 million social media users in the United States alone, social media marketing helps gyms reach a wider audience. Leveraging platforms like Facebook, Instagram, and TikTok allows fitness establishments to connect with potential clients, share engaging content, and build a community around their brand.

When crafting your social media marketing strategy, include multiple social platforms. Today, the average user engages with up to seven platforms a month . Creating content across different platforms aligns with user behavior and maximizes your gym's visibility.

Utilize Email Marketing

As other digital marketing strategies have arisen, you may wonder if email marketing is still relevant. Let’s set the record straight. With 99% of email users checking their inbox daily , email marketing remains an effective tool for reaching and engaging your target audience.

Gym owners can utilize email marketing to promote special offers, fitness challenges, and exclusive content to their members.

Leveraging Technology to Enhance Your Members’ Experience

When deciding what products and services you want to include in your business plan, consider ways you can integrate technology into the workout experience. Offering fitness tools beyond the standard free weights and cardio machines will help improve your members' health journey and help you stand out from competitors.

Member Apps

If you want to attract tech-savvy members, Randy Hetrick recommends investing in a gym app, saying,"Start with a great member app that engages, challenges, and rewards your members for exhibiting the behaviors that will deliver the results they seek."

Not techy enough to create an app yourself? No worries. Gym management software often includes custom-branded member apps as part of their software solution. These apps allow members to view and reserve classes, track workouts, and access digital exercise programs.

Remote Training

While some people enjoy going to the gym to pump iron, 56.1% of exercisers prefer working out at home . Offering remote training options like digital personal training or online classes can help you tap into this market and add another revenue stream to your business.

Wearable Tech

As fitness technology advances, exercisers have become increasingly interested in tracking their health data. Nearly one-third of Americans use wearable tech like smartwatches to track metrics like steps, heart rate, and burned calories.

Recognizing consumer interest in this trend, successful fitness brands like Orangetheory Fitness utilize smart tech in their workouts. This provides members with helpful information on their health and facilitates friendly competition.

Consider elevating your gym’s membership experience by investing in customized wearable tech for your members. Providing devices like MyZone trackers at the beginning of each training session lets you gamify classes through leaderboards showcasing individual efforts.

Smart Equipment

With 38% of gym goers citing equipment as their primary reason for visiting their gym, investing in quality exercise tools is crucial. Smart equipment like Peloton bikes and Tonal strength machines track users' progress and provide real-time feedback. This data allows individuals to refine their exercise techniques, prevent injuries, and optimize their workout efficiency.

Gym Pricing Strategies and Membership Models

Determining the right pricing strategy for your gym can be tricky. If you charge too much, you'll scare away your target audience. On the flip side, if you charge too little, you'll hurt your bottom line.

To strike the right balance, examine your forecasted expenses and research your competitors' pricing. This will give you a strong idea of how much money you need to bring in each month to stay profitable and how much you can charge to remain competitive in the market. Below are standard pricing model options that may be a good fit for your business.

Monthly Memberships

Monthly memberships are one of the most popular membership models among gyms. These plans have a fixed monthly fee that grants members access to gym facilities and services.

Tiered Memberships

Membership plans structured in tiers offer varying levels of access to amenities and services based on the chosen tier. Higher tiers often come with additional benefits at a higher cost.

Class Packages

If your gym offers a variety of classes, you may want to consider offering class packages. This membership option allows members to purchase packages that include a set number of classes allowing flexibility in attendance.

Measuring Success: Key Metrics to Track in Your Business

After creating a gym business plan, ensure it stays on track by using metrics to monitor its progress. Research shows that companies that track their progress are more likely to achieve their business goals . While the best metrics to track will vary from business to business, keeping tabs on the following metrics will give you valuable insights into the health and growth of your gym.

Net Profit Margin

Net Profit Margin is a profitability ratio that calculates the percentage of net profit relative to total revenue. Your net profit margin is one of your gym's most important financial health indicators. This metric helps determine how much of every dollar your make is kept as profit.

Gross Profit Margin

Gross Profit Margin is the percentage of revenue left after subtracting the cost of products and services sold (like labor, equipment, and other consumables), showing how well a gym manages its core operations.

Revenue Growth

Revenue growth is the percentage increase in total income over a specific period, reflecting the expansion or contraction of the business. It's important for gyms (and all businesses) because steady revenue growth indicates an increasing demand for your services.

Member Retention Rate

Your gym's member retention rate is the percentage of members retained over a set time period. A high retention rate indicates happy clients that contribute to a consistent revenue stream.

Member Growth Rate

Your gym's member growth rate reflects the percentage increase in members over a specific period. A higher growth indicates an increase in popularity and will likely increase revenue.

Bottom Line

Opening a successful gym requires a little planning. But, investing time into crafting a strategic business plan increases your likelihood of success and improves your chances of receiving funding. Check out the U.S. Small Business Administration's resources for more information about creating a business plan.

More Advice for Gym Owners

• Best Gym Management Software
• Ultimate Guide to Opening a Gym
• Grow Your Gym: Capitalize on Fitness Business Trends
• Best Fitness Industry Events for Fitness Professionals
• How to Increase Gym Membership Sales

Intro to Gym Equipment Financing for Gym Owners

• Harvard Business Review. Research: Writing a Business Plan Makes Your Startup More Likely to Suceed
• Bplans. Do You Need a Business Plan? Scientific Research Says Yes
• IHRSA. Media Center
• IHRSA. The 2020 IHRSA Health Club Consumer Report
• IHRSA. How to Build a Successful Health Club Franchise Model
• Power Reviews. Survey: The Ever-Growing Power of Reviews (2023 Edition)
• socPub. 5 Mobile Marketing Mistakes and How to Fix Them
• Statista. Social Media Usage in the United States-Statistics & Facts
• Forbes. Top Social Media Statistics And Trends of 2024
• Optinmonster. Is Email Marketing Dead? Statistics Say: Not a Chance.
• GoodFirms. At-Home Fitness Regime Is the Top Fitness Trend in 2022: GoodFirms' Survey
• National Heart, Lung, and Blood Institute. Study Reveals Wearable Device Trends Among U.S. Adults
• BDC. SMEs and Growth: Challenges and Winning Strategies
• U.S. Small Business Administration. Plan Your Business

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Gym Business Plan Guide – With Templates, Examples & Checklist

Published by caroline @ wellness creative co on 4 october 2022 4 october 2022.

Preparing a gym business plan can feel like a daunting task, but it doesn’t have to be. If you’re starting a health club , fitness center, or boutique studio, it can actually be quite easy to create a document that impresses banks and investors . All you need is a simple step-by-step guide… 

In this article – learn how to write an awesome gym business plan (with samples, PDF templates, and downloadable checklist).

• Essential elements of a business plan
• Why they matter
• Examples & templates
• Downloadable checklist

Key Elements of a Gym Business Plan

Planning a new venture can be an overwhelming task but our 7-step process makes it easy.

We’ll guide you through the exact steps to preparing a brilliant business plan to help secure gym funding. Following a proven format can help you access government grants for fitness centers or gym equipment loans.

Here are the sections that every gym business plan should include… 

• Executive summary
• Industry and local market analysis
• Company overview
• Products and services
• Sales and marketing strategy
• Financial information
• Implementation plan

Now let’s look at each of them in more detail…

1. Executive Summary

Get straight to the point – why should they invest in your business? Include your mission, key financials, and unique selling points. Although it goes at the beginning of your plan, you should do this section last.

2. Industry & Local Market Analysis

Demonstrate potential – show that the industry is growing and there’ll be a strong demand for your products or services. Include research statistics , competitor info, and relevant government initiatives.

3. Company Overview

Summarise the company – objectives, location, ownership, legal status, team structure, and operations.

4. Products & Services

The fun part – detail the names, descriptions , and prices of the products or services you plan to sell. This could be memberships, class passes, PT sessions, workshops, smoothies, merchandise, etc.

You might also like… How To Start an Online Fitness Business or Build a Successful Fitness Brand .

5. Sales & Marketing Strategy

How you’ll attract customers – explain your brand positioning and list all of the activities you’ll do to generate pre-opening sales, attract competitor customers, and promote your business once fully open.

6. Financial Information

Spreadsheets are your friend – potential investors aren’t just interested in your figures, but how you arrived at those figures, so show your calculations!

Include breakdowns of profit & loss, cash-flow, breakeven figures, and the capital expenditure needed for start-up. Project 12, 36, and 60 months ahead.

7. Implementation Plan

How you’ll make it happen – provide a step-by-step list of actions you’ll take, including milestone dates.

Why Business Plans Matter

Preparing a comprehensive business plan is hugely important. You’ll use it to secure a bank loan or investor funding so then there’s a lot riding on this one document.

It’s not just about putting ideas to paper – a fitness business plan needs to be well-structured and involves extensive research. But it’s well worth the effort as it sets you up for long-term success in the future.

“Business plans double your chance of success.”

Creating a business plan may seem like an annoying admin chore, but it’s crucial to the success of your business.

In fact, research shows that people who complete business plans are nearly twice as likely to successfully grow their businesses, or obtain capital. This is because they help you transform your fitness business ideas into a reality and ensure you’re profitable from the start.

You might also like… How To Write A Gym Marketing Plan [With Examples & Templates]

Fitness Marketing Ideas Mini-Guide

25 fitness marketing ideas for your gym, studio, or online business. Attract new members, get more PT clients & boost your fitness blog.

Gym Business Plan Examples & Templates

We’ve also collated a few of our favourite gym business plan templates below. These PDF samples will give you ideas for writing your own along with a guide to follow.

• Ibis World produced this thorough 60-page sample, which is a great source of financial projections.
• Launceston City Council created this aquatic center and health club business plan.
• Dragon Fitness Training produced this interesting personal trainer business plan as an academic exercise.
• Catalyst Fitness created this CrossFit business plan with a detailed risk assessment.
• The Yoga Lunch Box  offers a comprehensive yet easy-to-read yoga business template.
• Fitness Texter has a nice little guide that includes helpful questions to ask yourself.

Creating business plan is totally worth the extra time and effort. It’ll be your business blueprint for the next 3-5 years and help to secure bank loans or investor funding.

Putting some thought into how you’ll promote your services and manage cash flow will ensure you’re prepared for life as a business owner.

Downloadable PDF Checklist

We’ve found that the best way to approach a business plan is to work on it in small chunks . Trying to get the whole document done in one go is the quickest route to overwhelm.

Instead, we recommend working on just one section each day. This will enable you to complete the whole thing within a week, without stressing out .

To simplify the process, we created a  checklist  for preparing your business plan. It walks you through 7 simple sections that’ll result in a killer document, without the stress.

You can download it as part of our Fitness Business Template Bundle…  

Fitness Business Templates & More

Our ready-made templates make it quicker, cheaper, and easier to promote and run your fitness business. They can improve the effectiveness of your sales and marketing campaigns. If you aren’t an experienced marketer, then templates also provide a useful guide for you to follow.

Whether you run a gym club, fitness studio, or personal training business, these templates will save you time and effort. They’ll help you to plan and organize your promotional activities so that you generate more revenue . You’ll get 60+ templates covering sales, marketing, lead gen, client training, and business start-up resources.

Caroline @ Wellness Creative Co

Qualified personal trainer (BSc Sports Science) & nutritionist (MSc Human Nutrition) with 15+ years of fitness & wellness marketing experience working with global brands.

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How to start a gym business in 7 steps

• Jeremy Greenbaum
• Oct 31, 2023
• 10 min read

Are you passionate about fitness, enjoy creating a welcoming environment and love helping people achieve their health goals? If so, starting a gym could be the perfect business for you. In this guide, we'll take you through the process of starting a gym, from developing your concept to creating a business website and implementing effective gym marketing strategies . We'll also address the challenges that come with running a gym and provide actionable steps for overcoming them.

What is a gym business?

A gym business is a facility that provides fitness and exercise services to individuals. This type of business typically offers various workout equipment, fitness classes, personal training and sometimes additional amenities like showers and locker rooms. Gyms are designed to promote physical fitness, improve health and support individuals in achieving their fitness goals.

Why start a gym business?

Gyms have developed into more than just places to exercise—they have become integral to people's wellness journeys and social lives. The fitness industry is experiencing significant growth, with the demand for fitness services and facilities on the rise. In fact, by 2028, the fitness industry is expected to have grown 171.75% to $434.74 billion. As a gym owner, you have the opportunity to tap into this thriving market and make a positive impact on people's lives by starting this kind of a service business .

How to start a gym business

If you're passionate about fitness and ready to turn your dream of starting a business into a reality, here are seven helpful steps to lay a strong foundation:

Create a business plan

Select a business structure

Obtain financing or capital

Set up accounting and bookkeeping systems

Choose an appropriate location

Source gym equipment

Register, license and insure your gym

01. Create a business plan

Develop a comprehensive business plan that outlines your gym's mission, target market, competitive analysis, marketing strategies, financial projections and operational details. This plan will serve as a roadmap for your business and guide your decision-making process. To get started, check out our guide on how to create a gym business plan .

Once you've written your business plan, write a concept statement to outline your vision.

How this business owner turned her understanding of her target audience into a successful gym business

Raquel “Rocky” Harris knows a thing or two about kicking ass. She’s a five-time Muay Thai champion, Team USA gold medalist, Fight Camp trainer (that’s basically the Peloton of boxing)—and, most recently, a thriving entrepreneur (see our guide on how to become an entrepreneur). Harris now uses Wix eCommerce to sell a collection of wellness products to athletes like herself as the founder of Warm Up .

“I was making my own hand sanitizer and thought ‘why don’t they have sanitizers that kill fungus?,’” she says. “ There are always breakouts in boxing gyms due to common skin infections like ringworms. Tea tree soap is anti-fungal, so I started adding it to my hand sanitizers, which eventually evolved into my sweat butters.”

She launched her first product line while training clients and creating Wix sites for her colleagues, all while moving across the country to shoot workouts for Fight Camp.

02. Select a business structure

Choose a legal structure for your gym, such as a sole proprietorship, partnership , limited liability company (LLC ) or corporation . Consider consulting with an attorney or a business advisor to determine the best structure based on your specific needs, liability protection and tax considerations.

03. Obtain financing or capital

As you plan your gym, it’s important to explore different options to raise money for your business . These may include personal savings, loans from financial institutions, grants, partnerships or seeking investments from private investors. Research and prepare a solid business case to increase your chances of securing financing.

04. Set up accounting and bookkeeping systems

Establish accounting and bookkeeping systems to manage your gym's finances effectively. This includes keeping track of income, expenses, payroll and tax obligations. Consider using accounting software or hiring an accountant to ensure accurate record-keeping and financial management.

05. Choose an appropriate location

Selecting the right location for your gym is crucial to its success. Look for an area with high foot traffic, easy accessibility and sufficient parking. Consider the demographics of the surrounding population and the competition in the area. Lease or purchase a space that aligns with your gym's size, layout and amenities.

06. Source gym equipment

Research and source the necessary gym equipment to create a functional and appealing workout space. Determine the types of equipment based on your target market's preferences and fitness goals. Costs will vary depending on the brand, quality and quantity of equipment. Create a budget and compare prices from different suppliers to find the best value. Keep in mind, proper maintenance and regular equipment inspections are essential for the safety and longevity of your gym equipment.

07. Register, license and insure your gym

Before you apply for your licenses and permits, you’ll want to make sure you have a solid name for your business . Consider using a business name generator for inspiration. Once you’ve settled on a name, you can move on to registering your business with the appropriate government agencies and obtaining the necessary licenses and permits. This may include registering your business name, obtaining a tax identification number and securing health and safety permits. Additionally, you’ll need to obtain the right insurance coverage, such as liability insurance, to protect your business and members in the event of accidents or injuries.

Be inspired: Gym business name ideas , Fitness business name ideas

What to keep in mind when managing your gym business

Opening and managing a gym effectively requires careful planning and attention to detail. With this in mind, we recommend focusing on the following areas.

Inventory management

Keeping on top of your inventory management is key. Regularly assess inventory levels and reorder necessary supplies to avoid shortages. This includes doing your due diligence to make sure you’re getting the best deals on supplies. These items can quickly add up, chipping away at your profit, so be intentional about sourcing to make sure you don’t get stuck overpaying. At the same time develop a system for tracking and managing inventory, such as exercise equipment, cleaning supplies and amenities.

Technology and software

Be sure to deploy technology to your advantage when managing your business. You can implement management software to streamline back-end and front-end operations, such as membership management, class scheduling and payment processing. At the same time consider integrating your POS system with inventory and CRM tools for seamless data synchronization, efficient reporting and improved customer service. Wix's POS solution does just this.

You can also make a website that has specific templates and features for gym owners like fitness program information, class schedules and online reservations. Check out Wix’s Gym Website Templates , or these best fitness websites for inspiration.

Quality assurance

Make sure that your gym is a clean and welcoming environment that customers will want to return to. In order to ensure this you’ll need to develop and enforce cleanliness and maintenance protocols to ensure a safe and hygienic environment. If equipment is broken or not properly maintained, it can not only be an inconvenience for your members, but can be dangerous as well, so you’ll need a maintenance process to tackle this. At the same time, seek feedback from your gym members and address any concerns promptly to maintain a high level of customer satisfaction.

Employee training and procedures

Prioritize providing comprehensive training to employees on gym operations, safety procedures and customer service. This should include clear guidelines and procedures for opening and closing the facility, managing memberships, handling inquiries and resolving member issues.

Be sure to also conduct regular training sessions to keep employees updated on new equipment, fitness trends and customer service best practices.

Can opening a gym business be profitable?

Yes, opening a gym business can be profitable. In fact, the gym industry is a multi-billion dollar industry, and it's expected to continue to grow in the coming years. However, it's important to note that not all gym businesses are successful. There are a number of factors that contribute to the success of a gym business, including the location of the gym, the services offered and the management team.

Here are some tips for increasing the chances of profitability for your gym business:

Choose a good location. Your gym should be located in a convenient area with high visibility.

Offer a variety of services and amenities. This will help appeal to a wider range of customers.

Keep your gym clean and well-maintained. This will create a positive experience for your customers.

Hire qualified staff. Your staff should be knowledgeable about fitness and customer service.

Market your gym effectively. Let potential customers know about your gym and the services you offer.

How much does it cost to open a gym business?

The cost to open a gym business can vary depending on a number of factors, such as the size of the gym, the type of equipment purchased and the location of the gym. However, in general, you can expect to spend between $200,000 and $500,000 to open a gym business.

Here is a breakdown of some of the typical start-up costs for a gym business:

Lease or purchase of a commercial space: $50,000-$200,000

Purchase of commercial washers and dryers: $50,000-$100,000

Purchase of other equipment, such as folding tables and chairs: $5,000-$10,000

Signage and marketing: $5,000-$10,000

Permits and licenses: $1,000-$5,000

Working capital: $25,000-$50,000

Total start-up costs: $200,000-$500,000

There are a number of ways to reduce the start-up costs for a gym business. For example, you can purchase used equipment, lease a commercial space instead of purchasing it and start your gym business on a part-time basis. You can also seek out funding from investors or lenders.

What to keep in mind when promoting your gym business

Promoting your gym is essential to attract new members and build a strong customer base. Here are five tips to get your business out there and noticed.

Consider attending local community events, fitness expos and industry conferences to network with potential customers, suppliers and other business owners. Take this a step further and collaborate with local fitness influencers or trainers to host special events or workshops at your gym. You can also connect with local businesses, such as coffee shops or restaurants, and explore opportunities for partnerships or cross-promotion. Build on these external promotions by offering referral programs or incentives for current members who bring in new members, via word-of-mouth marketing.

Marketing strategies

In order to promote your business you’ll need to develop a comprehensive marketing plan that includes both online and offline strategies (and if you are already passionate about marketing, check out how to start a marketing business ). Potential online marketing efforts include digital marketing techniques like search engine optimization (SEO), pay-per-click (PPC) advertising and email marketing to reach a wider audience online.

You can also consider offline advertising options including local radio, television and print media, as well as outdoor signage and direct mail campaigns.

A branded website

When it comes to starting any kind of business, making a website is essential in terms of effective promotion and management. You’ll need a professional and user-friendly website to showcase your gym's facilities, services and membership options. Utilizing a website builder like Wix to easily create and customize your gym's website without extensive technical knowledge is a great way to build a professional site fast when you're in the throes of starting a fitness business . You can additionally use Wix’s logo maker to create a logo that you can feature in all of your digital assets. Check out these fitness logo ideas for inspiration.

Social media

Social media is an important part of promoting businesses, especially gym businesses. Consider creating on popular social media platforms like Instagram, TikTok, Facebook and YouTube to reach a wider audience and build a community around your gym.

The next step is then to share engaging content such as workout tips, success stories, member spotlights and behind-the-scenes glimpses to encourage interaction and attract potential members. Furthermore, you can run social media campaigns and promotions, such as free trial passes or exclusive discounts, to incentivize engagement and generate interest.

Examples of gym businesses on Wix

Gymshare : Gymshare is a home gym-sharing platform. Skip the lines and enjoy total privacy in one of Gymshare’s fully vetted at-home gym set-ups.

Impulse Fitness : Impulse Fitness is a 24/7 access gym, fully equipped with top of the line equipment and an awesome group of members. They offer one price memberships that include unlimited classes for a LOT less.

In Awe Fitness : In Awe Fitness is a ladies only health and wellness group fitness studio. They offer group classes that cater to all levels of fitness—whether you're just starting out or you're looking to take your fitness to the next level.

Classic Bodyworks Gym : Classic Bodyworks is a family owned and operated “old school” gym since 1995. They offer members 24 hour access, free babysitting and a highly certified personal training staff.

Benefits of starting a gym business

In summary, as the owner of a gym business, you’ll get to:

Be the architect of your success: You have the freedom to shape your business according to your vision. From selecting the equipment and classes to creating a unique atmosphere with music and décor, you have the opportunity to build a gym that aligns with your goals.

Create a supportive community: Gyms serve as more than just fitness centers; they foster a sense of community and provide a space for individuals to connect, motivate each other and achieve their fitness goals together. If you have a passion for connecting people, starting a gym could be a fulfilling endeavor.

Realize profit potential: With the growing interest in fitness and wellness, there is significant profit potential in the gym industry. By offering quality services, diverse workout programs and excellent customer experiences, you can attract a loyal clientele and generate sustainable revenue.

Build a flexible schedule: Running a gym provides flexibility in terms of working hours and the ability to choose your hours. You can find the sweet spot between a schedule that suits your lifestyle and caters to the needs of your clients.

Challenges of starting a gym business

While starting a gym can have numerous advantages, there are also several challenges to consider:

High startup costs: Establishing a gym requires a significant investment in equipment, facility renovations, lease or purchase costs and initial marketing expenses. It's important to carefully plan and secure sufficient startup capital and funding.

Equipment selection: Procuring the right gym equipment that meets the needs and preferences of your target audience can be challenging. It's crucial to conduct thorough research, consider space limitations and invest in high-quality, durable equipment.

Attracting and retaining members: In a competitive market, attracting and retaining members can be a challenge. Effective marketing strategies, excellent customer service and providing a unique and valuable experience are essential to stand out from the competition.

Staffing and management: Hiring and managing qualified staff—including trainers, instructors and administrative personnel—can be demanding. Ensuring their expertise, professionalism and commitment to delivering a positive customer experience is crucial.

How to start a gym business FAQ

Is a gym a good business to start.

Whether or not a gym is a good business to start depends on a number of factors, such as your experience, budget and the market in your area.

If you're passionate about fitness and have experience in the fitness industry, then owning a gym may be a good business for you. However, it's important to do your research and develop a solid business plan before starting a gym.

You should also consider the market in your area. Is there a high demand for gym memberships? Is there a lot of competition? Answering these questions will help you to determine if starting a gym is a good business decision for you.

How profitable is owning a gym?

How to start a gym business with no money, is it hard owning a gym, how to start a business in a specific state.

If you're looking to start a gym business in a specific state, here are some helpful resources:

How to start a business in South Carolina

How to start a business in Michigan

How to start a business in California

How to start a business in Arizona

How to start a business in Texas

How to start a business in Maryland

Don’t see your chosen state here? You can use the search bar in the Wix Blog to find all the information you need.

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How to start a consulting business

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How to start a fitness clothing line

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How to create a gym business plan

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How to Create a Flawless 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.

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?
• 8 steps to create a great gym 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. 

The 6 Crucial Steps to Opening a Gym or Studio

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 setup. Depending on where your business is, a business plan can be dual-purpose. Here’s why you need a business plan from day one. 

1. 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. 

2. 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. 

Read More: How to Get Financing For Your Gym

3. 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. 

4. 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. 

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. 

Read More: How ABC Glofox Can Boost Your Business

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 
• Advertising 
• Email marketing 
• Referral program 
• Sponsorships
• Partnerships 

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. 

In Summary 

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. 

If you’re looking for a fitness business platform that can help you create a fitness franchise that will stand the test of time, ABC Glofox is the platform for you. Along with reducing your admin time by 20%, the ABC Glofox platform, on average doubles user revenue in just 18 months.

If you’re ready to take the next step in growing your fitness business, book a call with a member of our team today.

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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
• Advertising
• Sponsorship
• 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)
• Crowdfunding
• 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.

About Appointy

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. 

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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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Starting a Fitness Business: A Step-by-Step Guide

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Starting a fitness business is a heavy lift (pun intended). But it can also be a very rewarding industry to work in. You are helping people accomplish their fitness goals, and in turn, helping them to live healthier lives.

If you're looking to start a business with lucrative potential, this is a great industry to be in—the global health and fitness club market is projected to grow at a rate of 10.6% from 2018 to 2023. Furthermore, according to the 2019 International Health, Racquet and Sportsclub Association (IHSRA) Global Report, the United States health club industry generated a record $32.3 billion in 2018. Comparatively, the United States health club industry only generated $25.8 billion in revenue in 2015.

If you're a fitness junkie, you already enjoy breaking a sweat. Now it's time to put in a different kind of work. Here's everything you need to do when starting a fitness business.

Starting a fitness business in 6 steps

A good fitness business is centered around providing excellent equipment, professional instruction, and personal training. But starting a fitness business requires a lot more than that. Here are the six steps you'll need to take to start your fitness business.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Step 1: Decide what kind of fitness business you want to operate

There are many different kinds of fitness businesses out there. You can become a personal trainer, teach classes, or operate your own facility. There are pros and cons to each. Being a personal trainer is a low overhead venture if you're wondering how to start a fitness business with no money, but it requires in-depth knowledge of exercise and nutrition techniques. Operating a facility, on the other hand, requires a lot of overhead, but you can lean on the expertise of others. There are also gym franchising options to consider when thinking about starting a fitness business. Popular franchises include Crunch Fitness, Planet Fitness, and Pure Barre—you might even consider starting a Crossfit box.

If you're in need of inspiration for starting your fitness business, here are some popular options to consider:

Zumba studio

Physical therapy

Spin classes

Powerlifting gym

Yoga studio

Pilates studio

Step 2: Get trained

The next step in starting a fitness business is to get some training. Whether you want to know how to start a fitness training business or manage a gym, you need to have some background in fitness in order for people to actually think you know what you're doing. Good places to get credentialed include the National Strength and Conditioning Association (NSCA), American Council on Exercise, or National Academy of Sports Medicine. Legitimate certifications are accredited by either the NCCA (National Commission of Certifying Agencies) or the DEAC (Distance Education Accrediting Commission).

Of course, training in fitness isn't the only education you'll need. You're also going to need to do a lot of research into learning exactly what it takes to start a business.

Step 3: Write a business plan and select an entity

This step is pretty similar regardless of whether you're starting a fitness business or any other kind of business. When you’re writing a business plan, there’s a lot you'll need to include. You might find it helpful to use a business plan template to make sure you cover all of your bases.

Factors to consider when writing your business plan include:

An analysis of the market

Who your competition is

Marketing and sales plan

Financial plan and projections

The key is to make sure there's a need for your business and that you'll be able to generate enough business to continue operating after you've invested so much to get started.

Another important part of your business plan when starting up a fitness business is selecting your business entity. Given the nature of the fitness business, you should go with a business entity that offers owners some protection from liability. A limited liability partnership or limited liability company might make the most sense for you if you’re looking for some liability protection.

Step 4: Get necessary permits and insurance

There may be certain business licenses and permits required to operate a gym in your state and locality. You should check with your town, city, or county clerk’s office to make sure you're following all the regulations outlined by your various governing agencies for starting a fitness business.

One permit you'll most certainly need is a certificate of occupancy. A certificate of occupancy confirms that all building codes, zoning laws, and government regulations have been met. If you're leasing your gym space, it is typically the landlord's responsibility to obtain a certificate of occupancy.

Operating a gym also comes with some risks that opening another business might not. People are going to be working out, using equipment, walking around things they can trip over, and doing other potentially hazardous activities. You’ll want to make sure you get small business insurance for a host of scenarios so that if anything happens to someone while they’re in your gym, the business is covered.

You also want to be covered in the event that equipment is stolen or damaged. You might even want to encourage any instructors you hire to get personal trainer insurance as well.

Step 5: Get an EIN

There are a lot of reasons you need an employer identification number (EIN). It allows you to file taxes and avoid tax penalties, open a business bank account, speed up loan applications, establish business credit, and a lot more.

You can apply for an employer identification number online through the IRS. If you register with the IRS online, you should receive an EIN within minutes. Note that fitness businesses operating as sole proprietorships don't need an EIN, but it is still a good idea to get one for the aforementioned benefits.

Step 6: Get funding

If you're wondering how to start a fitness business with no money, some ventures aren't cheap, but you do have funding options that may work for you. According to health club consultant Bryan O'Rourke, costs start at $30,000 but can quickly soar to $500,000. What's more, getting a fitness business up and running takes some time—so you'll need to have a little in the bank.

If you’re looking for some startup funding there are a few options available to you, such as an SBA loan , a business line of credit, or a personal loan.

A business line of credit would give you access to money that you could pull from if you needed it in your early days of starting a fitness business. The difference between a line of credit and a loan is that while the money is available to you, you only have to pay interest on the funds you actually draw on.

There's also gym equipment financing , which is another great option if you're wondering how to start a fitness business with no money. The gym equipment purchased with the proceeds of the financing will, in turn, act as collateral for the gym equipment finance loan used to purchase it.

7 tips for starting a fitness business

Now that you know the steps you need to take when starting a fitness business, let's provide you with some tips that will help your business thrive. To provide you with the best advice possible, we talked to entrepreneurs who successfully started their own fitness business. Here's what they had to say:

1. Personalize your fitness business

The health and fitness club market is expected to grow to be a $147.1 billion industry by 2024, with an emphasis on personalized training.

Consider ClassPass, which operates in 18 countries around the world and is valued at $600 million. ClassPass teams up with classes at boutique studios to offer everything from cycling to yoga to dance to martial arts for its members. For a $19-$199 (which varies by subscription plan) monthly fee, members enjoy unlimited classes to studios in the ClassPass network and can attend the same studio up to a certain limit each month.

ClassPass’ success story is one example that customers want specialized, niche workouts offered in fitness boutique studios. If you're wondering how to start a fitness class business that will be attractive to a growing clientele, this is one example to follow. Other such examples include ShadowBox, a fitness boxing studio; GoRow Studios, a gym that specializes in workouts using rowing machines; then there’s modelFIT, a gym in New York and Los Angeles that is "marrying mindful nutrition with mindful exercise" and is a popular hangout for celebrities.

“People are kind of shying away from the lone wolf workout of going to a box or a membership gym because the [boutique fitness] market is more efficient,” says Eric Posner, CEO and co-founder of boutique cycling studio Swerve Fitness in New York City. “You get a better workout in a less amount of time and pay less than you would for a personal trainer by going to a fitness boutique.”

2. Make your fitness studio a place to hang out

In a panel discussion hosted by American Express' U.S. Small Merchants Group, ClassPass founder Payal Kadakia said fitness studios are “like the new restaurant scene"—it’s not just about burning calories and working out; it’s about the experience and lifestyle. It's paramount you know this if you want to know how to start a fitness business.

This concept of hanging out at your workout spot is how Posner, along with his co-founders Chelsea Kocis and John Henry McNierney came up with the idea for Swerve. It was just a few years ago that the three co-founders, who at the time were college athletes-turned-finance professionals, found themselves tired of taking clients through the typical dinner-and-drinks routine. Instead, they took them to cycling classes.

"We found this to be an unbelievable way to build relationships that were meaningful, as opposed to the typical steak dinners and drinks," says Posner.

“We were going to mostly cycling classes and what we saw about these classes was there were unbelievable ways to get an efficient workout in and do it with other people, but [these classes] weren't capturing the camaraderie of going with a group or going with other people. It was very individualistic,” continues Posner. “So, that's how we came up with the concept of a team-inspired indoor cycling workout.”

Making your gym a place people want to hang not only brings customers in the door, but also makes your fitness business a place they'll want to return to again and again.

3. Incorporate data into your services

We live in a data-driven world, so it makes sense that people want data-driven workouts. People want to see how many calories they burned, how their current performance compares to their past averages, and how they compare to other people—basically what they achieve when they leave a workout session.

Take the technologically-savvy Swerve workout room for example, where riders are divided into teams and try to bike their way to the highest score.

“Technology is playing a big role and the way that [Swerve was] able to tap into that is we have a console—you have a console on your bike—and you see your own personal metrics on this console during class,” explains Posner. “And there are big flat screens behind the instructors where you see your team's average score. After class, all your stats—and this shows how many miles you biked, how many calories you burned, where you ranked in class, and all that—can be viewed on your account profile.”

“So, we find that to be a huge motivating tactic for our riders… and that kind of adds another layer of accountability and it's very results-driven.” Want to know how to start a fitness business that will keep clients coming back? Give them the tools and data to accomplish their personal fitness goals.

4. Specialize in a type of workout or demographic

When Alana Kessler opened the doors to her yoga studio in 2009, she quickly realized classes offered to pregnant mothers who have busy, working lives basically didn’t exist. As a result, Kessler made prenatal classes essential to Sangha Yoga Shala's list of classes offered and has since then built a name for herself.

The key to how to start a fitness training business that offers quality, specialized classes is that you can’t skimp on good trainers. Spend time training instructors and finding excellent ones who will give your customers consistent results every time they’re in front of the class. If you want to know how to start a fitness business, the first thing you should figure out is how to acquire awesome trainer talent.

“I encourage my teachers to build,” advises Kessler. “I incentivize them to build with me. Some [studios] might tap out at a low rate to keep their overhead low, but I pay my teachers well.”

5. Get your studio on social media

Vanessa Packer, co-founder of modelFIT, told the audience at American Express' panel discussion that Instagram played an “instrumental part” in helping modelFIT become a lifestyle instead of just a gym. This means reaching out and engaging with your community on social media.

Do you make it easy for customers to post about their experience? Do you respond in a timely manner that builds connections with existing clients? Additionally, have you thought about untraditional marketing strategies to spread the word for your business? For example, ClassPass gave away passes to influential fitness bloggers in the beginning to quickly get their story out there. What social media marketing techniques could your fitness business do?

6. You'll need to wear many hats

According to Tyler Sellers, senior coach at Total Shape, starting a fitness business requires a lot more than just fitness instruction.

"You must be well-prepared for the behind-the-scenes logistics, especially at the start. As a piece of advice, being a small business owner means that you are the accountant, the administrator, the marketer, and the trainer at the same time," Sellers says.

7. Hire excellent staff

When Laurel Roach started TriFIT Wellness, a corporate wellness training facility in Phoenix, AZ, she says she didn't have a background in the fitness business. Therefore, she had to lean on the staff she hired in order to make her business a success.

"I recommend hiring the most qualified trainers because the wellness industry is notoriously under-regulated," says Roach. "Genuinely passionate employees are difficult to replace so make it a priority to hire and retain the trainers that make your customers feel like an all-star."

Start Your Dream Business

The bottom line

Starting a fitness business is a lot of hard work. But if you succeed, you'll join a booming industry that helps people live their life to the fullest.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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How to Write a Great Gym Business Plan

It’s an exciting prospect to  open your very own gym . However, it’s important to remember that you’re also starting a business. That requires a certain type of preparation and diligence because you’re competing with  31,000 other gyms in America.

To set up your operations, it’s important to start strong with a business plan. Most startups craft one to attract investors and stakeholders, and you can too. Ready to learn how to make your own? Discover why this document matters and specific steps to create a gym business plan.

What Is a Gym Business Plan? 

A business plan is your roadmap for how your company plans to succeed. This comprehensive document outlines the strategic and operational framework for establishing and running a fitness center. It serves as a roadmap for a fitness entrepreneur, detailing every aspect of the venture, from market analysis and marketing strategies to financial planning and management structures. 

This plan should answer three key questions for yourself and potential stakeholders: 

• How does your gym work?
• What does success look like?
• What steps are you going to take to succeed?

Answering these can help an investor see what makes your company unique — and worth funding. 

Why Create a Business Plan? 

Writing a plan makes your business  more likely to succeed . It helps you clarify your goals and identify weaknesses in your plans ahead so you can correct them ahead of time so you  hit the ground running.

A solid business plan can also help you attract investors. This can be a major help, considering the cost to start a fitness company can range between  $10,000 to 50,000 . A clear business plan is a useful document as it fully explains where money will go and how it will be generated in the future. 

Additional benefits from a formal business plan include: 

Create a  mission statement and vision

This document has you craft your purpose in advance and the impact you hope to have. There’s a reason the  most successful and long-standing businesses always have one — it keeps you focused and purpose-driven. This helps increase your member loyalty and growth . 

Build out goals

This plan requires you to set goals, both short-term and long-term. The biggest goal you’ll have is your mission. Your smaller goals help you map out how you will achieve that overall purpose — and are a great way to  motivate your  future team members. These goals might involve your business model or hiring strategies. 

You may also want to consider how your goals will shift and evolve as your company grows. For example, once you build your website, you might change your goals to attracting clients on social media. Consider updating your business plan with your new goals as you go to keep yourself on track as your business evolves. 

Stay competitive in the industry

Today, more people than ever are exercising at home. That creates a challenge to stay relevant in the fitness industry. However, a business plan can help combat that. It gives you a deep understanding of your competitors and what’s needed in this environment, like pricing plans and marketing strategies. These plans can serve as a reference point for evaluating options and making choices that align with your overall business strategy. 

Find funding

You can start a new business with a variety of different funding sources: bank loans, active investors, or even crowdfunding. One way to help any kind of financial backers to envision your company’s success is with a business plan. The plan demonstrates your deep understanding of the marketing and shows how you plan to be profitable. 

Overall, this plan gets your team focused on the goal and ready to take on challenges. 

Components of a Gym Business Plan 

Because business plans are so powerful, it’s important to know how to create one. These are the general pieces you’ll need to include in your plan: 

Executive Summary 

The first section of your plan should include answers to four key questions: 

• Who? Who are you, and what do you offer? 
• Why? Why are you starting this business? 
• What? What do you hope to achieve? 
• How? How are you going to achieve that? 

Try to keep this summary brief since you’ll go into more depth later. The goal here is to provide a concise overview of everything included in your plan. Sometimes it’s  easier to write your executive summary once you have slated out the rest of your plan. That’s because you’ll have a full understanding of everything the document will explore. 

Overview of the Company

This segment is where you delve into the details of your organization. You introduced yourself earlier, but this is where you go deeper. One purpose of this portion is to explain your business model. Additionally, your overview should answer these questions: 

• What’s the purpose of your business? 
• What services will you offer? 
• Who is your target market? 
• What is your founding story? 
• What is your legal structure?  

Competitor Analysis

With a lot of rival gyms out there, taking time to understand your competition can help you position yourself in the marketplace. You might start by examining where your target clients work out right now. That might be big chain gyms, virtual options, and even YouTube videos. Showcasing your knowledge of this information can help potential investors see how you differentiate from the marketplace..

In this section, consider these questions: 

• Who are your competitors? 
• What services do they offer? 
• How do you stand out from your competition? 
• What will draw your clients to your facility? 
• What are your strengths and weaknesses? 
• What pricing do competitors charge? 
• What pricing will you offer? 

Industry Analysis 

Earlier you outlined your direct competitors. Here you dive into environmental conditions. For example,  virtual fitness is expected to grow to  $79.87 billion by 2026 . You could explain how you plan to be a part of that.

Something that can amplify this portion is specifics. For example, you may want to add stats and numbers to it to show that you’ve done your research and to show exactly what stakeholders stand to gain. This section might address:  

• What is the industry like right now? 
• Where is the industry heading in the next five years? 
• How does your business fit into future industry demands? 

Customer Analysis

Your document will often also include a segment on who will come to your gym. Your audience should ideally be hyper-specific. That shows you have a specific client in mind, and you know them well. To illustrate who these people are, consider addressing::  

• Demographics . That includes anything like age, gender, income, occupation, education, and location. 
• Psychographics . This is where you dive into interests, opinions, beliefs, values, and needs. 

Financial Plan

About  82% of small businesses fail because of cash flow problems. Explaining how you plan to fund your company is a vital portion of this plan. Depending on the stage of your startup, you may or may not have hard numbers. If you don’t have those, try to create accurate estimates. That can be done with industry research. Essentially, you will want to answer these questions: 

• How much will your gym make? 
• How does your financial future look? 
• How will you continue to keep revenue coming in? 
• What is your cash flow plan? 

Management Staff 

After explaining the most important parts of your operations, you can introduce yourself and your team. This can be a good time to explain everyone’s qualifications. An ideal team would include experts in everything from fitness to finance. These are the concepts you’ll want to explain:

• How do the specific team members help you achieve success? 
• How will you structure your business to attract and retain  talent ? 
• What benefits and compensation will you offer? 

Marketing Plan

The final piece of the puzzle is creating your advertising strategy. This can help you  find and retain customers . You might detail everything from your email marketing plans  to your  social media strategy The goal is to show that your  marketing approach will  improve sales strategies and engage with your community.  

Some important aspects of this plan include: 

• How are you going to find new clients? 
• How are you going to engage with current clients to help  retention ? 
• How will you get the fund to kickstart your marketing strategy? 
• Who will be handling these efforts? 

Kickstarting Your Business with Gympass

Overall, a business plan is your map to success — how to turn your dreams into a reality. 

A critical part of building a thriving company is regular clients. One way to help build your customer base is to partner with Gympass. Doing so can help boost the number of new patrons coming through your doors. In fact, 75% of first-time visitors with Gympass become repeat customers. 

Learn more about how to get started with  Gympass today! 

• Craig, W. (2018, May 15). The Importance Of Having A Mission-Driven Company. Forbes. Retrieved April 5, 2024, from  https://www.forbes.com/sites/williamcraig/2018/05/15/the-importance-of-having-a-mission-driven-company/?sh=33d59ca83a9c  
• Curley, E. (2021, March 25). 8 Hard Truths to Face Before Starting a Fitness Business. Glofox. Retrieved April 5, 2024, from  https://www.glofox.com/blog/5-hard-truths-to-face-before-starting-a-fitness-business/  
• Develop your marketing plan | business.gov.au. (2023, March 7). Business.gov.au. Retrieved April 5, 2024, from  https://business.gov.au/planning/business-plans/develop-your-marketing-plan  
• Gough, C. (2022, October 27). Number of health clubs in the United States from 2008 to 2022. Statista. Retrieved April 5, 2024, 2023, from  https://www.statista.com/statistics/244922/us-fitness-centers-und-health-clubs/  
• Greene, F. J., & Hopp, C. (2017, July 14). Research: Writing a Business Plan Makes Your Startup More Likely to Succeed. Harvard Business Review. Retrieved April 5, 2024, from  https://hbr.org/2017/07/research-writing-a-business-plan-makes-your-startup-more-likely-to-succeed  
• Hogarty, S. (2022, June 23). What is a vision statement and why is it important? WeWork. Retrieved April 5, 2024, from  https://www.wework.com/ideas/professional-development/management-leadership/what-is-a-vision-statement-and-why-is-it-important  
• Ross, M.-C. (2015, December 14). 5 Reasons Why Mission-Driven Leaders are the Most Successful. LinkedIn. Retrieved April 5, 2024, from  https://www.linkedin.com/pulse/5-reasons-why-mission-driven-leaders-most-successful-ross-gaicd/  
• Steinbach, P. (2022, April 1). Report: Explosive Online Fitness Growth Projected. Athletic Business. Retrieved April 5, 2024, from  https://www.athleticbusiness.com/operations/programming/article/15290412/report-explosive-online-fitness-growth-projected  
• Sutter, B. (2023, May 6). The #1 Reason Small Businesses Fail - And How to Avoid It. Score. Retrieved April 5, 2024, from  https://www.score.org/resource/blog-post/1-reason-small-businesses-fail-and-how-avoid-it  
• Weller, J. (2021, October 3). 8 steps to create a great gym business plan. Glofox. Retrieved April 5, 2024, from  https://www.glofox.com/blog/the-9-key-elements-you-need-to-create-a-great-gym-business-plan/  

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How to Write a Business Plan for a Gym

Welcome to this comprehensive guide on how to write a business plan for a gym. Whether you’re starting a new gym or looking to expand your existing fitness center, a well-crafted gym business plan is essential for success. This article will delve into all the critical aspects that you need to consider when developing a gym business plan specifically tailored to the unique needs of the fitness industry.

Learn how to create a gym business plan with our step-by-step guide. It’s no easy feat to learn how to open a gym or how to start a fitness business , so be sure to manage your gym with the best gym management software and the best personal training software that can help professionalize your gym business and demonstrate to potential investors, bankers, or gym business partners that you have a solid gym business plan.

Get a demo now!

Steps to Create a Gym Business Plan

Follow these steps to create a business plan for a gym, then check out our free gym business plan template examples below.

Step 1: Conduct Preliminary Research

Before you start writing your business plan, conduct preliminary research on the fitness industry, market demand, and competition in your area. This will help you make informed decisions throughout the planning process.

Step 2: Define Your Business Objectives and Mission

Clearly state the mission of your gym business and outline the objectives you aim to achieve. This sets the tone for the rest of your business plan and provides a roadmap for your venture.

Step 3: Executive Summary

Write an executive summary that provides an overview of your business plan. This should include your mission, objectives, and financial projections. It serves as a quick snapshot of your business plan for investors or stakeholders.

Step 4: Business Description

Describe the core concept of your gym, the services you plan to offer, and the business structure. Here, you also introduce your vision for the gym and its role in the community.

Step 5: Market Analysis

Delve into your gym target market , discussing the demographics, psychographics, and lifestyle choices of potential customers. Additionally, consider conducting a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to gauge your position in the market.

Read More: How to Choose a Target Market for Your Gym

Step 6: Marketing and Sales Strategies

Outline how you plan to market your gym and the sales strategies you’ll employ to reach your target audience. This could include social media advertising, local partnerships, and promotions.

• Gym Marketing Ideas
• Gym Social Media Marketing
• Gym Partnership Marketing

Step 7: Service Offering

List out in detail the services you plan to offer such as personal training, group classes, and other amenities. Provide pricing strategies for each service.

Read More: Gym Pricing Strategy

Step 8: Financial Projections

Provide a comprehensive financial outlook for your gym, including startup costs, revenue projections, and a break-even analysis. This is especially crucial for securing funding or loans.

• How to Create a Gym Budget
• Accounting for Gyms
• How to Get a Gym Loan
• Gym Sales Forecasting

Step 9: Legal Structure and Licenses

Explain the legal structure of your business (e.g., sole proprietor, LLC, corporation) and list out all required licenses and permits. Make sure to include any regulations that pertain to the health and fitness industry.

What is the best business structure for a gym?

• Gym Insurance
• Personal Trainer Insurance
• Why is insurance important for a gym?
• How to Negotiate a Gym Lease
• Common Gym Lease Issues to Avoid

Step 10: Appendices and Supporting Documents

Include any additional materials that support your business plan such as resumes of key management, market research data, and any preliminary agreements with partners or suppliers.

Once your business plan is complete, it serves as a strategic guide for you, but also as a presentation for potential investors or lenders. Consider using Exercise.com to manage various aspects of your gym business, such as membership management, payment processing, and scheduling. Book a demo today to see how it can help you implement your business plan successfully.

Read More: Best Gym Management Software

Gym Business Plan Template Example

Table of contents, executive summary, business description, market analysis, marketing plan, sales strategies, financial projections, appendices and supporting documents.

• Mission Statement: Example: “To create a community-focused gym that promotes health and wellness for residents of [City].”
• Objectives: Example: Reach 200 members in the first 6 months.
• Financial Summary: Example: $250,000 initial investment; expecting to break even in 12 months.
• History: Example: Founded in 2023, aiming to fill the gap in affordable fitness facilities in the area.
• Vision: Example: To be the go-to fitness hub in [City] for people of all fitness levels.
• Services Offered: Example: Personal Training, Group Classes, Nutritional Planning, etc.
• Target Audience: Example: Residents aged 20-50 looking for affordable fitness solutions.
• Market Trends: Example: Increased awareness in health and wellness.
• Competitor Analysis: Example: Three other gyms in the vicinity, but none focus on [your unique selling proposition].
• Advertising Channels: Example: Social Media, Local Newspapers, Flyers.
• Promotions: Example: Opening month 50% off on all membership plans.
• Pricing: Example: Multiple membership tiers – Monthly, Quarterly, Annually.
• Upselling: Example: Personal Training sessions, Dietary Plans, Merchandise.
• Startup Costs: Example: $100,000 for equipment, $50,000 for lease.
• Revenue Forecasts: Example: Expecting to generate $300,000 in the first year.
• Break-even Analysis: Example: Expecting to break even within 12 months.
• Resumes of Key Management
• Market Research Data
• Financial Models
• Licenses and Permits

To streamline all the various aspects of your gym business, consider leveraging the capabilities of Exercise.com’s custom-branded fitness app . It’s an all-in-one software solution designed for fitness professionals, offering features like online booking, payment management, online fitness coaching, and much more. To see it in action, book a demo today .

Gym Business Plan Sections Explained

Writing a business plan for your gym is an essential step in the formation and development of your fitness-related business. A well-crafted business plan can serve as a roadmap, guiding you through each phase of starting and managing your business. It also helps you identify potential challenges and plan appropriate ways to mitigate them. Here’s a step-by-step walkthrough of each of the sections needed to help you craft a compelling business plan for your gym.

Start with an executive summary that gives a high-level overview of your gym. This should include the gym’s mission statement, the market need you’re addressing, and the key features that set your gym apart from the competition. Aim for brevity but ensure it captures the essence of your business.

Example Text

“Our mission is to create a community of fitness enthusiasts who feel at home while achieving their wellness goals. Located in the heart of the city, our gym offers state-of-the-art equipment, personalized training, and a welcoming atmosphere.”

This section should offer a more detailed description of your gym, including its history, vision, and objectives. Explain the type of gym you’re planning to open and the services you’ll offer.

“Our gym will focus on strength training and offer services such as personal training, group classes, and nutritional guidance.”

Conduct an analysis of your market. Identify your target audience, assess the competition, and analyze market trends that could impact your business. This will help you understand where your gym fits in the current market.

“The fitness market in our location has grown by 20% in the last two years, with a noticeable gap in specialized strength training gyms.”

Lay out your marketing strategies. How will you attract customers to your gym? What channels will you use for marketing? Include both digital and traditional marketing methods.

“Our marketing plan includes social media advertising, local partnerships, and an opening day promotion.”

Describe the sales process, including pricing and payment methods. Indicate any plans for upselling services like personal training, nutrition plans, or merchandise.

“Memberships will be sold both online and in-person, with various pricing tiers to meet different customer needs.”

This section should contain detailed financial projections for your gym. Include startup costs, operating costs, and revenue forecasts. If possible, provide scenarios for best-case, moderate-case, and worst-case scenarios.

“We expect to break even by the end of the first year with a moderate-case scenario projecting a 20% profit by the end of year two.”

Lastly, include any supporting documents like market research, resumes of the management team, or any other information that supports your business plan.

“Attached are the resumes of our management team and market research findings.”

To run your gym efficiently, consider leveraging Exercise.com’s custom-branded fitness app, which provides all-in-one software solutions for managing your business, from booking and payments to hosting exercise videos and online fitness coaching. Book a demo today to find out more .

Example Gym Business Plan Financials (Small Gym)

Creating a robust gym financial plan is crucial for any gym business, especially when it comes to securing loans or attracting investors. The financial section typically includes projections for startup costs, revenue, expenses, and profitability. Below are example financials that could be part of a small gym business plan.

Gym Startup Costs

Equipment costs.

• Treadmills: $15,000
• Weight machines: $10,000
• Free weights: $5,000

Facility Costs

• Lease: $8,000 (initial deposit)
• Renovations: $12,000

Initial Marketing Costs

• Advertising and Promotion: $3,000

Miscellaneous

• Legal and Licensing: $2,000
• Insurance: $1,000

Total Startup Costs: $56,000

Gym Revenue Projections (First Year)

Monthly membership fees.

• 150 members at $50/month: $7,500

Personal Training Fees

• 30 sessions at $40/session: $1,200

Additional Revenue Streams

• Merchandise sales: $300

Monthly Revenue: $9,000

Annual Revenue: $108,000

Gym Operating Expenses (First Year)

Monthly rent, staff salaries, maintenance.

Monthly Expenses: $8,500

Annual Expenses: $102,000

Gym Profitability Projections

Monthly Profit: $500

Annual Profit: $6,000

Gym Break-even Point: Approximately 7 months

Note: These figures are hypothetical and should be tailored to fit the specifics of your own gym business model . Exercise.com can help you manage various aspects of your gym business, including tracking financials. Book a demo today to find out more.

• Gym Business Models
• How to Create Multiple Gym Revenue Streams
• Most Profitable Fitness Business Models

Example Gym Business Plan Financials (Large Gym)

For gym owners looking to operate on a larger scale, the financial dynamics will differ significantly. A larger operation means higher revenue potential but also increased costs. Below are example financials tailored to a larger-scale gym business.

• Treadmills: $50,000
• Weight machines: $35,000
• Free weights: $15,000
• Lease: $30,000 (initial deposit)
• Renovations: $50,000
• Advertising and Promotion: $10,000
• Legal and Licensing: $8,000
• Insurance: $5,000

Total Startup Costs: $203,000

• 800 members at $80/month: $64,000
• 200 sessions at $60/session: $12,000
• Merchandise sales: $2,000
• Premium services (spa, massage, etc.): $5,000

Monthly Revenue: $83,000

Annual Revenue: $996,000

Monthly Expenses: $41,500

Annual Expenses: $498,000

Monthly Profit: $41,500

Annual Profit: $498,000

Break-even Point: Approximately 5 months

These are hypothetical numbers tailored for a larger-scale gym business. Exercise.com offers solutions to help you manage your gym’s financials, member management, and more. To understand how it can cater to a larger scale operation, booking a demo is highly recommended.

• How to Increase Gym Revenue and Profitability
• How to Scale Your Gym to Multiple Locations
• Best Gym Multi Location Software

Why a Solid Business Plan is Essential for Gym Owners

A solid fitness center business plan serves as a roadmap for your gym’s success. It not only helps you define your goals and objectives but also provides a detailed framework for achieving them. With a well-designed plan in place, you can effectively navigate potential challenges, make informed decisions, secure funding, and attract potential investors. Ultimately, a business plan acts as a tool to guide your gym’s growth and ensure its long-term viability.

In addition, a comprehensive business plan allows gym owners to analyze the market and competition, identify their target audience, and develop effective marketing strategies. By conducting market research and understanding the needs and preferences of potential customers, gym owners can tailor their services and offerings to meet the demands of their target market. This not only helps attract and retain customers but also positions the gym as a competitive player in the industry.

Read More: How to Start a Fitness Business

Understanding the Purpose and Benefits of a Gym Business Plan

A gym business plan serves several purposes. First and foremost, it outlines your vision, mission, and core values. By clearly defining these elements, you can align your gym’s operations and activities with your overarching goals. Additionally, a well-developed business plan encompasses market research, competitor analysis, marketing strategies, financial projections, and risk management considerations. It also helps you identify and capitalize on growth opportunities within the fitness industry.

One of the key benefits of having a gym business plan is that it provides a roadmap for success. By setting clear objectives and outlining the steps needed to achieve them, you can stay focused and track your progress. This not only helps you stay on track but also allows you to make adjustments and improvements along the way.

Another important aspect of a gym business plan is that it can help attract investors or secure financing. When seeking funding for your gym, having a well-developed business plan demonstrates your professionalism and commitment to success. It provides potential investors or lenders with a comprehensive overview of your gym’s potential profitability and growth prospects, increasing your chances of securing the necessary funds.

Researching and Analyzing the Fitness Industry for Your Business Plan

Conducting comprehensive research on the fitness industry is crucial to gaining a solid understanding of current trends, consumer preferences, and market demand. Start by examining industry reports, market studies, and demographic data. Analyze factors such as population density, income levels, and competition in your target location. Additionally, researching consumer behavior and emerging fitness trends will allow you to tailor your gym’s offerings to meet customer needs and stay ahead of the competition.

Another important aspect of researching the fitness industry is understanding the competitive landscape. Identify and analyze your direct competitors, including their pricing strategies, target market, and unique selling points. This information will help you differentiate your gym and develop a competitive advantage.

Furthermore, it is essential to consider the technological advancements and digital trends impacting the fitness industry. With the rise of wearable fitness devices, mobile apps, and online fitness platforms, understanding how technology is changing the way people engage with fitness can provide valuable insights for your business plan. Explore opportunities to incorporate technology into your gym’s operations, such as offering virtual classes or implementing a mobile app for member engagement.

Defining Your Gym’s Vision, Mission, and Values in the Business Plan

Your gym’s vision, mission, and values are the guiding principles that shape your business’s identity and culture. Clearly define your gym’s vision statement, describing the ultimate goal you want to achieve. Your mission statement should outline the purpose of your gym and the value it offers to customers. Additionally, identify and establish core values that reflect your gym’s commitment to excellence, customer satisfaction, and overall well-being.

When defining your gym’s vision, mission, and values in the business plan, it is important to consider the unique selling points of your gym. These could include specialized training programs, state-of-the-art equipment, or a focus on community engagement. By highlighting these aspects in your vision, mission, and values, you can differentiate your gym from competitors and attract a target audience that aligns with your offerings. Furthermore, regularly reviewing and revisiting your gym’s vision, mission, and values can help ensure that they remain relevant and aligned with the evolving needs and preferences of your customers.

Identifying Your Target Market and Demographics

Identifying your gym target market is a critical step in developing a successful gym business plan. Determine the demographics, psychographics, and specific needs of your ideal customers. Consider factors such as age, gender, income level, lifestyle preferences, and fitness goals. This information will help you tailor your marketing efforts, facility design, and service offerings to effectively attract and retain your target audience.

One important aspect to consider when identifying your target market is their geographic location. Understanding where your ideal customers are located can help you determine the best location for your gym. For example, if your target market consists of young professionals who work in the downtown area, it would be beneficial to open your gym in a central location that is easily accessible to them.

Another factor to consider is the competition in your target market. Researching and analyzing the existing gyms and fitness centers in your area can give you insights into the demand for fitness services and the potential saturation of the market. This information can help you differentiate your gym by offering unique services or targeting a niche market that is currently underserved.

Conducting a Competitive Analysis for Your Gym Business Plan

Conducting a competitive analysis allows you to understand your direct and indirect competitors, their strengths, weaknesses, and market positioning. Evaluate their pricing strategies, service offerings, marketing tactics, and customer reviews. By identifying gaps in the market and differentiating yourself from competitors, you can position your gym as a unique and appealing option for potential customers.

Developing a Unique Selling Proposition (USP) for Your Gym

Your gym’s unique selling proposition (USP) is what sets you apart from the competition. It represents the distinctive factors that make your gym attractive to your target market. It could be specialized classes, personalized training programs, state-of-the-art equipment, or exceptional customer service. Developing a strong USP and effectively communicating it in your business plan and marketing materials will help your gym stand out and attract loyal customers.

Creating a Strategic Marketing Plan to Attract and Retain Members

A strategic marketing plan is essential for promoting your gym and attracting potential members. Your plan should include a mix of online and offline marketing strategies, such as social media marketing, search engine optimization (SEO), email marketing, and local advertising. Clearly outline your target audience, marketing channels, messaging, and gym business budget allocation. Additionally, consider creating gym referral programs , loyalty rewards, and other retention strategies to ensure a steady stream of members.

• Gym Marketing Guide
• Gym Social Media Marketing Guide
• Gym Email Marketing Guide
• Gym SMS Text Messaging Marketing Guide

Designing an Effective Pricing Structure for Different Membership Options

Designing an effective pricing structure is crucial to ensuring the financial success of your gym. Consider factors such as your target market, competitors’ pricing, facility overhead costs, and desired profit margins. Offer different membership options and pricing tiers to cater to various customer needs and budgets. Consider offering special promotions, discounts, and trial periods to attract new members and encourage long-term commitment.

Outlining the Organizational Structure and Staffing Requirements in Your Gym Business Plan

Outlining the organizational structure and staffing requirements in your business plan helps you determine the roles and responsibilities necessary to operate your gym successfully. Clearly define the management hierarchy, operational departments, and staffing needs. Outline key positions, their qualifications, and responsibilities. Additionally, consider employee training and development programs to ensure the delivery of exceptional customer service and consistent quality throughout your gym.

• How to Hire the Best Gym Staff
• Best Gym Staff Management Software System

Detailing Equipment, Facilities, and Amenities in Your Gym Business Plan

Detailing the equipment, facilities, and amenities available in your gym is essential for attracting and retaining members. Describe the types of equipment you offer, such as cardio machines, strength training equipment, and specialized fitness tools. Additionally, highlight any special facilities or amenities, such as swimming pools, group exercise studios, locker rooms, saunas, or a juice bar. Ensure that your gym’s offerings align with the preferences and expectations of your target market.

Addressing Legal and Regulatory Considerations in the Business Plan for a Gym

Addressing legal and regulatory considerations is crucial for ensuring your gym operates within the boundaries of the law. Research and comply with local, state, and federal regulations related to zoning, permits, licenses, health and safety standards, and employment law. Consider consulting with an attorney experienced in the fitness industry to ensure your gym’s compliance and minimize potential risks.

Crafting Financial Projections and Budgets for Your Gym Business Plan

Crafting financial projections and budgets is a vital component of your gym business plan. Project your revenue streams, including membership fees, personal training services, and retail sales. Consider factors such as monthly expenses, payroll, equipment maintenance, marketing costs, and facility rent. Create realistic gym financial forecasts , including income statements, cash flow statements, and balance sheets, to demonstrate the viability and profitability of your gym.

Securing Funding Options for Starting or Expanding Your Gym Operations

Funding is often necessary when starting or expanding a gym. Explore various funding options, such as traditional bank loans, Small Business Administration (SBA) loans, angel investors, venture capitalists, crowdfunding, or personal savings. Prepare a compelling business plan highlighting your gym’s potential return on investment to attract potential funders. Additionally, be prepared to present financial projections, market research, and a detailed breakdown of how the funding will be used to grow your gym’s operations.

Read More: How to Get a Loan for a Gym

Implementing Key Performance Indicators (KPIs) to Track Success in Your Gym Business Plan

Implementing key performance indicators (KPIs) allows you to monitor and measure the success of your gym’s operations. Identify KPIs related to membership growth, member retention rates, revenue per member, average visit frequency, customer satisfaction, and employee productivity. Continuously track and analyze these metrics to make informed decisions, identify areas for improvement, and ensure your gym’s ongoing success.

Creating Contingency Plans and Risk Management Strategies for your gym business plan.

Creating contingency plans and risk management strategies is essential for mitigating the potential risks and uncertainties that may arise in the operation of your gym. Identify potential risks, such as economic downturns, equipment breakdowns, and legal disputes. Develop contingency plans and procedures to address these risks effectively. Additionally, consider gym business insurance policies to protect your gym and its assets.

Incorporating Sustainability Practices into Your Gym’s Business Model.

Incorporating sustainability practices in your gym demonstrates your commitment to environmental responsibility and attracts eco-conscious customers. Consider energy-efficient equipment, recycling programs, paperless operations, and environmentally friendly cleaning products. Additionally, educate your staff and members about the importance of sustainable practices and provide resources to encourage their participation.

Leveraging Technology and Digital Tools to Enhance Operations in Your Gym.

Technology plays a crucial role in enhancing efficiency and customer experience in the modern gym industry. Consider implementing the best gym member management software , online booking systems, mobile apps, and wearable fitness trackers. Leverage digital marketing strategies, such as social media advertising and email campaigns, to reach a wider audience. Utilize data analytics to gain insights into member behavior, preferences, and trends, enabling you to make data-driven decisions.

Evaluating Growth Opportunities and Expansion Plans within the Fitness Industry.

Finally, continuously evaluate growth opportunities and expansion plans within the fitness industry. Monitor emerging trends, new fitness concepts, and changes in consumer preferences. Assess the feasibility of opening additional locations, introducing new services, or targeting new market segments. Review and update your business plan regularly to adapt to changing dynamics and maximize your gym’s growth potential.

By following these guidelines and incorporating all the essential elements discussed, you’ll be well equipped to write a comprehensive business plan that sets your gym up for success in the competitive fitness industry. Remember, a thoughtful and well-thought-out plan is not only a roadmap but a crucial tool for attracting investors, securing funding, and ultimately, achieving your gym’s goals and objectives. Good luck on your journey to building a successful gym!

Read More: How do I write a proposal for a gym?

How do I create a business plan for a gym?

Creating a business plan for a gym involves several key components: an executive summary, market analysis, business structure, services offered, marketing strategy, financial projections, and operational plan. Each section should be detailed, backed by research, and tailored to your specific gym concept.

Do I need a business plan for a gym?

Yes, a business plan is essential for a gym as it provides a roadmap for your business, helps in securing funding, and serves as a guide for operational decisions.

When and how will I use a gym business plan?

A gym business plan is used primarily at the startup phase for securing loans or investments. However, it is also a living document that should be revisited and updated periodically to guide your business decisions.

How will a gym business plan help me?

A gym business plan will provide a clear strategy and timeline for your business, help you understand your market and competition, and make it easier to secure funding.

Should I pay for a gym business plan or create one myself?

This depends on your expertise and available resources. If you have a good understanding of business planning, you can create one yourself. Otherwise, hiring a professional may be beneficial.

Do I need a gym business plan to get a gym loan?

Yes, most financial institutions will require a detailed business plan before approving a loan for your gym.

Read More: How to Get a Gym Loan

The best business structure for a gym could be a Sole Proprietorship, Partnership, LLC, or Corporation, depending on factors like liability, taxation, and investment needs.

Read More: What is the best business structure for a gym?

How do I start a gym project?

Starting a gym project involves market research, business planning, securing funding, finding a location, purchasing equipment, hiring staff, and launching marketing campaigns.

Read More: How to Start a Gym

How profitable is owning a gym?

Owning a gym can be profitable, with annual earnings varying greatly depending on location, size, and services offered. Utilizing management software like Exercise.com can help maximize profitability.

Is owning a gym a good business idea?

Yes, with the rising focus on health and wellness, owning a gym can be a profitable venture if well-managed and strategically located.

What is the hardest part of owning a gym?

The hardest part is often balancing high operating costs with the need for continuous marketing and customer retention.

Where do gyms make the most money?

Gyms often make the most money from membership fees, but additional revenue can come from personal training, group classes, and merchandise.

What is the toughest thing about being in a gym business?

The toughest part is likely customer retention, as the industry often sees seasonal fluctuations and competition can be stiff.

How much do gym owners make?

As previously discussed, earnings can vary widely but can range from around $49,000 to over $82,000 annually based on location.

Read More: Gym Owner Average Income

What is the budget of a gym business plan?

The budget should outline initial setup costs, ongoing operational expenses, expected revenue, and financial projections for at least the first three years.

How do gym owners make money?

Gym owners make money primarily through memberships, but also through services like personal training, group classes, and sometimes merchandise and food sales.

Is it hard to start a gym business?

Starting a gym business can be challenging due to high startup costs, competition, and the need for skilled staff and effective marketing.

What is required for starting a gym?

Requirements include a solid business plan, funding, a suitable location, licenses and permits, quality gym equipment, and a marketing strategy.

What would you need to open a small gym business?

For a small gym, you would need a more modest amount of funding, fewer staff, and potentially less space and equipment, but the foundational requirements remain the same.

• What makes a gym successful?

A successful gym offers quality service, maintains a loyal customer base, keeps up with industry trends, and manages its finances well.

• Most Successful Gyms

How many members does a gym need to be successful?

While the number can vary, a commonly cited range is at least 300 to 500 members to break even and become profitable.

What are the disadvantages of a gym business?

Disadvantages include high startup and operational costs, difficulty in retaining customers, and vulnerability to economic downturns.

Is it better to own a gym or franchise a gym?

Both have pros and cons. Owning gives more control but comes with more risk, while franchising offers brand recognition but less operational freedom.

What scares gym owners the most?

Common fears include failing to retain customers, facing stiff competition, and not being able to cover operational costs.

How can I open a gym with no money?

This is challenging but not impossible. Options include taking out a loan, finding investors, or starting small, such as offering outdoor classes before moving to a physical location.

What causes gyms to fail?

Common reasons include poor location, lack of effective marketing, subpar service, and high operational costs.

Read More: Why do gyms fail?

What expenses do gym owners have?

Expenses include rent, utilities, staff salaries, equipment purchase and maintenance, marketing, and insurance.

What is the monthly revenue of a gym?

This varies widely depending on size, location, and services offered, but monthly revenue can range from a few thousand dollars to several tens of thousands.

How much does it cost to maintain a gym?

Maintenance costs can include equipment repair, utility bills, staff wages, and cleaning services, and can range from hundreds to thousands of dollars per month.

Read More: Gym Costs

How much equipment do I need for a gym?

This depends on the type and size of the gym, but a general gym will require cardio machines, strength training equipment, free weights, and potentially specialized equipment for classes.

Read More: What equipment do you need to open a gym?

How much space do you need for a gym?

The space needed can range from as little as 500 square feet for a small specialized gym to 10,000 square feet or more for a large commercial gym.

Read More: How much space do you need for a commercial gym?

How much investment do I need to open a gym?

Initial investment can range from a few thousand dollars for a small, budget-friendly gym to several hundred thousand for a large, high-end facility.

What sort of expenses does a gym have?

Expenses typically include rent, utilities, equipment, staffing, marketing, and administrative costs.

How can Exercise.com help me manage and grow my gym?

Exercise.com offers comprehensive gym management software that streamlines tasks like membership management, scheduling, and payment processing. It also offers marketing tools to help you attract and retain members, making it easier to grow your gym. For a detailed look at how Exercise.com can assist you, consider booking a demo .

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Creating a Gym Business Plan - A Complete Guide

If you’ve found your way here, there’s a good chance you’re either looking to open a gym or revamp your current business plan - Congratulations!

Any business can benefit by starting with a solid business plan. Even if you’ve already hit the ground running, it’s never too late to put one together. In fact, most people are pleasantly surprised that business plans are not all that time consuming to create and that creating a gym business plan can significantly improve your already established business.

A business plan reveals who you are as a business and gives a logical preview of where you’re heading. It is a roadmap that lays out how your business is structured, how you plan to make it succeed, and the exact steps you need to take to get there.

A gym business plan will clearly define the structure of your business , give you a comprehensive insight into your target market and help you lay out your management structure, marketing strategy and financial strategy.

Though we might think of a gym business plan as a one and done type of document, it is actually an ever-evolving plan that grows and changes with you and your business. Ready to carve out a space for yourself in a multi-billion dollar (and climbing!) industry?

First off ask yourself a couple of tough questions:

• Can I afford to run a gym?
• How much time can I invest in this?
• Do I feel comfortable working with people face to face on a daily basis?

Here’s the thing: starting a gym from the ground up is not an inexpensive venture. Between equipment costs, hiring PTs and group class instructors, insurance, rent, etc. you will need to be honest with yourself if this is a business you can afford to get involved with.

If finances are not an issue, it’s time to reflect on how much time you have /are willing to put into this new venture- especially at the onset. Owning and operating a gym or boutique studio is not a 9-5 job and working for yourself can make it extremely difficult to carve out a work/life balance.

Finally, getting started in a fitness business means you need to prepare yourself for an onslaught of face-to-face interaction with members, staff, investors, etc. If that much one-on-one interaction is not something you had prepared yourself for, you might want to re-think this venture.

The good news is that if owning and operating a gym is your dream - the money and hard work that you need to invest in making it a successful venture will be truly worth it.

Your Gym Business Plan Template at a Glance:

Step 1: Executive Summary

The first part of your gym business plan template is your executive summary. This is a quick, to-the-point statement that delineates the what, why and how of your business. It needs to be impactful and concise in framing your goals, your mission and your vision. Don’t worry if you feel like you have more to say - you can add more details in your company overview.

Step 2: Company Overview

If the executive summary was an outline of your gym business, the company overview is where you have the opportunity to go more into depth with your overall vision. Here you will go over the purpose and plans for your gym, your business model and the strategies you will employ to accomplish these objectives. A general overview of your target clients and what products/services you will provide for them can be included as well, but you will get more into detail regarding your target audience and services below. Don’t be afraid to get personal here! Include your own history in the world of health and fitness and/or business. Clearly communicate your vision for this gym. These are all relevant details for potential partners and investors to know when they are deciding on getting involved with you and your business. Aim to build your know-like-trust factor.

Step 3: Management & Operations

The management & operations section of your gym business plan is where you will present the plans for your employee ladder . What are the positions you need to fill and what sorts of skills will these employees need to have in order to make your gym successful? Think beyond your PTs and group class instructors. You’ll also likely need sales and membership personnel, marketing managers, customer service professionals, a maintenance team, etc. What responsibilities will each of these employees have?

Set up and present an organized chart that breaks down all of your staff positions, detailed descriptions of their roles, compensation structure, and benefits plan as well as incentives to attract and retain quality employees.

If you already have your management team in place, be sure to expound upon their individual skill sets, relevant experience and how they will contribute to the success of your gym.

Step 4: Market Research and Marketing

The market research and marketing step is the part of your gym business plan where you will explore: Your niche (the clients you will cater your gym to) Current trends in the industry that your target audience is looking for What your competitors are offering and for how much Plans for marketing your gym

Market research

You must start with market research and dive into who is in your local market and who you are focusing on as your target audience, your ideal clients - your niche. Are they students, working professionals, stay-at-home moms or dads, etc? Or will you target a specific group of fitness enthusiasts: bodybuilders, yogis, cyclists, etc. How do you plan to successfully fit your gym into your decided upon demographic?

When your target market is sorted out you can start researching your competitors. Direct competitors are those with gyms or boutique studios similar to yours in your area who are also going after a similar target audience. What are their strengths and weaknesses? How does your gym compare to theirs? What do your target clients have to say about them?

Once you are comfortable with your niche and your offerings in comparison to those of your direct competitors, the marketing portion is all about how you plan to get your gym and its services/amenities in front of this target audience and how you will attract them to your gym. It’s time to let your creativity shine! A detailed strategy, who will be handling this job, plus estimated cost is ideal. Your marketing strategy might include social media marketing, email marketing, TV or print advertising, sponsorships, loyalty plans, membership promotions, referral programs and more. Marketing can be any idea you have that will help make your gym stand out, build your customer’s loyalty and increase your revenue at the end of the day.

Step 5: Services and Amenities

In your company overview you briefly described the services and products you plan to offer at your gym, and here you will expound upon these services. This will give a clearer picture of what your gym or studio will look like for your members. Services will cover everything from membership options, group classes and personal training options to the specific exercise equipment you will offer. Amenities will include things like lockers, spa services, a swimming pool, child care options, etc. Products are physical items you plan to offer for additional revenue opportunities: juices, snack bars, protein powders or pre-workout, t-shirts, towels, etc.

Go into details about how the services you offer will fill the needs of your target audience and describe the benefits of each. Finally, create a pricing list that clearly outlines the costs for each product and service. This will make it easier when you get to the financial forecast and strategy section.

Step 6: Financial Forecast & Strategy

Finances are easily the most important part of your business, and are generally how you will measure success and profitability. The financial forecast and strategy is where its time to get real with an in-depth and up close projection for the future of your gym.

First, where do you need to spend your initial capital? Rent or building maintenance/upgrades, hiring costs, gym equipment, operational costs for the first 3-4 months, legal fees and marketing costs among others are all places you’ll want to investigate. Give a realistic cost estimate next to each. Then, add it all up: how much money will you need to successfully launch your gym?

Next you will dive into where your income will come from. Estimate how much your services (memberships, classes, PT, physical products) will bring in. The idea here is to show your potential partners/investors/employees that you have a plan with a solid ROI.

Finally, use all of this information to project a sales forecast for the first, second and third year in business breaking down each month as well as annual earnings and expenses.

Step 7: Payment Options

A big thing to think about is what sort of gym management software you will use. A streamlined system like Virtuagym , that automates membership billing and other fees, simplifies online and onsite scheduling, enables easy booking for classes or PT sessions, as well as other backend processes not only looks great for potential investors, it also serves to increase member retention and improve the overall client experience.

Step 8: Funding

You will round out your business plan with a clear description of where any start-up capital is coming from. Personal savings, bank loans, partners, sponsorships or even “soft loans” from family members or friends are all resources you might consider.

You’re Almost There!

Starting a gym has a multitude of benefits but is no easy task to undertake. That said, with the right business plan your rewards will far outweigh your challenges and you can look forward to a happy and successful future within the fitness industry. Refer back to your business plan whenever you need to make important decisions, secure new investments or show new partners or employees the greater vision and direction of your business.

A Personal Checklist:

Feel free to use this checklist to help 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
• Organize 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
• Organize branded uniforms
• Hold launch party!

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Contact Information

Nicolas Fisher

Nick is a Marketing Specialist with a keen eye for market introspection and relevant insights. Adept in relating to people, he often seeks ways in which we can use human relations to bring our businesses and clients closer together to create lasting bonds by using his insights and expertise in the industry.

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Gym Business Plan Template & Guidebook

Achieving success in the fitness industry is no small feat, and having the right plan in place is essential. For fitness entrepreneurs looking to make a big impact, investing in The #1 Gym Business Plan Template & Guidebook is an invaluable step towards creating a winning strategy. Comprehensive and easy to use, this valuable tool will help you create the perfect business plan to ensure that your gym thrives.

Get worry-free services and support to launch your business starting at $0 plus state fees.

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How to Write a Gym Business Plan in 7 Steps:

1. describe the purpose of your gym business..

The first step to writing your business plan is to describe the purpose of your gym business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a gym business:

Our mission at ABC Gym is to provide a safe and supportive environment for our community to reach their fitness goals through personalized instruction and innovative programming that emphasizes physical, mental, and spiritual health.

2. Products & Services Offered by Your Gym Business.

The next step is to outline your products and services for your gym business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your gym business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your gym business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your gym business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a gym business?

• Commercial gym equipment (e.g. treadmills, exercise bikes, weight lifting machines, etc.)
• Free weights and benches
• Fitness accessories (e.g. yoga mats, medicine balls, jump ropes, etc.)
• Sound system
• Fitness classes
• Employees/Trainers
• A u business license
• Zoning permits

5. Management & Organization of Your Gym Business.

The second part of your gym business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your gym business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Gym Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a gym business varies based on many different variables, but below are a few different types of startup costs for a gym business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your gym business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your gym business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your gym business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Gym Business Plans:

Why do you need a business plan for a gym business.

A business plan for a gym business is essential in order to outline the goals and objectives of the business, assess potential risks, create a budget and pricing strategy, demonstrate the market size and trends, and ensure that appropriate marketing plans are in place. A business plan will also help to secure financing if necessary and provide investors with a clear understanding of your vision for the venture.

Who should you ask for help with your gym business plan?

A business consultant or mentor familiar with the gym industry would be a great resource to consult when creating your gym business plan. Additionally, a professional business plan writer may be beneficial to ensure that your business plan is comprehensive and covers all aspects of the gym business.

Can you write a gym business plan yourself?

Writing a business plan for a gym requires an understanding of the market and competition, as well as details of the gym's services and financial model. While it is possible to write a business plan for a gym yourself, it is generally recommended that business owners seek the advice of an experienced professional. A professional can help ensure that the plan reflects strategic objectives for the business, and meets all applicable legal and financial requirements.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

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How to Create a Gym Business Plan

by I.J. Karam | Nov 30, 2020 | Business Plans

Are you planning to open a new gym? Want to raise funds via bank loans or investors to finance your dream fitness club? In that case, loan officers and potential investors would like to see a robust, data-driven and professionally written gym business plan . More than anything, it will show them whether you know exactly what takes to launch a new gym business and turn it into a sustainable venture.

Before we get started, you might be interested to check out our Ready-made Gym Business Plan Template with pre-written text and automatic financials which you can easily customize and adapt to your own project, no financial expertise required .

A business plan is a must-have for every budding entrepreneur looking to raise capital for his or her project. That said, even self-funded projects need one, since a detailed plan acts as a road map for building a successful and sustainable business.

That brings us to the main question: How do you write an effective business plan for a gym?

Writing a comprehensive gym business plan, as you may guess, is a detailed and demanding process. When done correctly, it helps in clearly defining each step and key factor linked with launching a successful venture .

In this post, we will take you through all the steps involved in the writing of a compelling gym business plan. So let’s get rolling.

Outline for a Gym Business Plan

Before discussing each section in detail, here is a brief outline of what should be included in your gym business plan:

Executive Summary

Company Overview

• Market Research and Market Analysis
• Sales Forecast and Strategies
• Services, Programs, and Products
• Equipment and Facilities

Financial Projections

The importance of having a strong, compelling executive summary cannot be stated enough. If the initial few pages of your plan don’t pique interest and enthuse confidence, investors may not read further.

Precisely for this reason, ensure your executive summary is captivating and draws the readers in, showing them early on that you not only have an awesome business idea but have done a thorough homework.

So how can you ensure your executive summary lays out a compelling case for your fitness club?

Your executive summary must clearly outline the following:

The what – What are your business goals? The why – What is your mission? The how – What’s going to turn your fitness center into a success story? The bigger picture – What is your vision?

Answer these questions in your executive summary and potential investors will be all ears.

Which business model you will be following? What are the strengths of your business model?

What kind of market demand your fitness club aims to fulfill?

What key data support your business concept?

Why customers will pick your gym business over others? What are your unique selling points?

What is your sales forecast and financial projections for the first three years?

How much capital do you want to raise?

Even though an executive summary is the most crucial document of your business plan, you should write it last, after you have created all other sections. This way you will have the answers to all the above-listed questions when you sit down to pen the executive summary and consequently will be able to put forward a more compelling case.

This is where you should put passion onto paper. In the first section of your business plan, you briefly outlined your mission and vision. Now is the chance to elaborate these points to give potential investors further insight into your gym business.

You should cover the following points:

The purpose of your fitness club Who will be your target audience How do you plan to achieve your business aims

If you want, you can have a more personal mission statement. You can talk about the outcome you desire from your venture.

Here’s an example of a personal mission statement:

To bring innovation and inspiration to all athletes. If you are enthusiastic about working out and staying fit, you can count on us to help you achieve your fitness goals.

Think about your main reason for joining this business niche and share it.

Do you want to change something about the fitness world? Do you want to make it a little better? Like we said above, this is the time to put passion onto paper.

Next, share your history in brief with your readers.

Some of the questions you must answer to convince them you are serious about your new fitness venture are:

What have you achieved previously? Do you have a previous experience in the gym business? Have you ever run a business before? If yes, in which industry and for how long? What is your current status?

Information shared in this section will help potential investors understand your journey so far, besides giving them a clear picture of your future plans. Remember, the more investors know about you the businessman, the more likely are they to trust you.

Next outline your business strategy. List the services you will be offering right off the bat, your plan for developing the business, and the new offerings you plan to include later on. Perhaps you plan to rope in a gym instructor or set up a new facility such as a workout studio or spa. This information will help you understand when and/or where you may need extra space or additional funding.

Market Research and Analysis

Start this section by communicating the latest trends of the fitness industry. In addition to that, discuss your specific market location in detail. This should include information regarding local competition. Also, use this space to define your target market.

Your target market might be:

Working professional Senior executives Housewives Schools Students

It also might be a specific group, like yoga enthusiasts, body builders or cyclists.

Once you have zeroed in on your target audience, it’s time to explore just why they would like to join your fitness club. For instance, if you target audience is cyclists, they may want to join your gym for cardio and spinning workouts. Similarly yoga enthusiasts may queue up for a membership because a highly-experienced yoga teacher will conduct classes in your fitness center twice a week.

A thorough market research helps you understand your target audience better. Now it is time to ask yourself these questions:

How will you gain the loyalty of your target audience? What are your strengths? What factors make you stand apart from the competition? Why would customers choose you over others? What kind of membership package would work best for you? Is there a good demand for special equipment?

When you sit down to answer these questions, you will be automatically able to define your business’s unique selling point (or USP for short). More than anything, this information will tell your potential investors why your gym is a great investment opportunity — one they would not want to miss out.

Market analysis and research is a key element of why your venture will be successful, so spend as much time you need to gather all relevant information and present it in a precise, neat manner.

Marketing and Sales Forecasts

In this section, outline the marketing and sales strategies you will follow. In addition to them, outline your sales forecasts for at least first three years.

With regards to marketing, you may include a number of channels below:

Online Advertising Search Loyalty plans and referrals Sponsorships Email marketing Radio Word of mouth

Some of the questions you should address in this section include the following:

What are the different membership plans that you will offer and how much you plan to charge for each? What are your sales forecasts for the first year, second year, and third year? How do you plan to convert your target audience into paying and long-term customers? What marketing strategies and promotional offers you plan to use during pre-launch and post-launch? What is your plan for retaining customers?

One thing that you should understand is that your sales forecasts should be realistic. If you cannot back them up with data, you will have a hard time convincing investors that your projections are based on hard facts rather than wishful thinking.

Products and Services

This is where you should introduce your products and services to your readers.

Here are a few examples of products that you may need to buy:

Gym equipment (rowing machines, treadmills, elliptical trainer, stationary bicycle, recumbent bicycle, etc.) Specialist equipment (you may want to invest in top-quality and latest equipment to attract members such as body-builders, etc.) Beverages and food items (health foods, energy drinks, etc.)

Here are a few services that you may want to offer at your gym:

Personal training Fitness classes (body pump, yoga, aerobics, spinning, etc.) Spa Lockers Physiotherapy Swimming pool

Do more than list the products and services you will offer. Instead, highlight the benefits of each. For instance, with the help of hard facts, you may be able to show that gyms that offer a range of fitness classes (like yoga classes, cardio workout sessions, spinning classes, etc.) do better business than those that don’t.

Next, create a pricing list. The simplest way to create a pricing list is to use bullet points to highlight the rate of specific products and services.

This is the section where you need to breakdown:

Your staff profile Your management profile Your organizational structure Your compensation and benefits plan

Do you plan to manage the fitness club yourself? If so, mention that, as well as any prior experience or qualification that makes you a suitable person for this role. You may also consider adding your bio along with the rest of the management profile in the last section of the business plan — the appendix.

Also, create an organizational chart that includes all non-management staff that you are going to need (receptionist, cardio trainers, weight trainers, yoga teachers, etc.)

Two of the biggest expenses for the majority of gym operators are rent and labor. Therefore, carefully planning your compensation and benefits plan is crucial. Remember how you structure the compensation and the business plan will have a huge bearing on your ability to create and, no less importantly, retain a good team and will impact your short-term and long-term business goals.

This section is likely to take the most time to create. However, since it can make or break your chance to raise the necessary capital, leave no stone unturned while preparing your financial projections.

Your financial projections should be as comprehensive as possible, but to help investors understand and absorb the information, use charts and graphs. Include balance sheets, income statements, and cash flow statements for a minimum of three years based on three scenarios: ideal scenario, expected scenario, and worst-case scenario.

However, showcasing financial projections is not enough. You must also be able to provide context for the numbers you have mentioned. One way to do that is by comparing your numbers to your industry benchmarks.

Don’t forget to include membership and service ramp ups, staff compensation, and membership churn in your financial projections.

After you have figured out all the data, summarize it neatly using graphs and charts, define the assumptions you have made, and pen a short, to-the-point introduction for this all-important section.

This is the last section of your fitness club business plan. This is where you will add all the supporting documents such as:

Resume of your management team Your own resume Job descriptions Demographic information Marketing plan specifics Facility plans Promotions and creatives

Final Words

Launching a new fitness venture is exciting, but if you want to raise capital or create a roadmap for success, you need a detailed business plan. Follow the tips shared in this post and you will have no problem creating a thorough gym business plan, one that helps you judge the viability of your business idea, develop business goals and attract funding.

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Sample Gym Business Plan

Writing a business plan is a crucial step in starting a gym. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring gym business owners, having access to a sample gym business plan can be especially helpful in providing direction and gaining insight into how to draft their own gym business plan.

Download our Ultimate Gym Business Plan Template

Having a thorough business plan in place is critical for any successful gym venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A gym business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document. The gym business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your gym as Growthink’s Ultimate Gym Business Plan Template , but it can help you write a gym business plan of your own.

Gym Business Plan Example – FitForge Gymnasium

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

FitForge Gymnasium, located in the heart of Albuquerque, NM, is a premier fitness center designed to cater to a wide range of fitness needs. Our mission is to provide a comprehensive fitness experience that not only meets but exceeds the expectations of our diverse clientele. By offering personalized fitness plans, state-of-the-art equipment, and expert coaching, we aim to create an inclusive community where every member feels valued and supported in their fitness journey. Our focus on accessibility, community, and high-quality service positions us as a leading gymnasium in Albuquerque, dedicated to fostering health and wellness in our local community.

Our success is rooted in our commitment to delivering exceptional service and creating a welcoming environment for all our members. Key factors contributing to our accomplishments include our strategic location in Albuquerque, which provides easy access for local residents and businesses, and our comprehensive range of services tailored to meet diverse fitness goals. We’ve made significant strides in establishing a loyal customer base through our personalized approach to fitness and wellness. Furthermore, our ability to attract corporate clients with customized wellness plans has enabled us to integrate deeply into the local corporate wellness landscape, setting us apart from competitors and driving our growth.

The fitness industry is experiencing robust growth, driven by increasing health consciousness and the demand for personalized fitness solutions. In Albuquerque, NM, this trend is reflected in the rising interest in fitness programs that cater to individual needs and busy lifestyles. The industry’s evolution towards more specialized and accessible fitness offerings presents a significant opportunity for FitForge Gymnasium. By aligning our services with these industry trends, such as offering specialized training programs and flexible membership options, we are well-positioned to capture a substantial market share in a competitive landscape. Our emphasis on community and personalized fitness plans positions us to meet the evolving needs of fitness enthusiasts and casual gym-goers alike.

At FitForge Gymnasium, our customer base is as diverse as our fitness offerings. We primarily target local residents of Albuquerque, NM, who seek a fitness solution that blends convenience with community. Our emphasis on personalized fitness plans and accessible services resonates with individuals who value health and wellness amidst their busy schedules. Additionally, we cater to fitness enthusiasts and athletes looking for specialized training programs, as well as corporate clients interested in improving their employees’ health through customized wellness plans. This strategic focus enables us to attract a broad spectrum of customers, from seasoned athletes to corporate teams, making us a go-to fitness destination in Albuquerque.

FitForge Gymnasium faces competition from several key players in the Albuquerque fitness market. However, our competitive advantages lie in our holistic approach to fitness, our commitment to leveraging state-of-the-art equipment, and our focus on delivering personalized fitness experiences. These strengths enable us to differentiate ourselves from competitors and carve out a unique position in the market. We are dedicated to continually innovating our services and facilities to maintain this competitive edge and ensure that we remain the preferred choice for fitness enthusiasts in Albuquerque.

Our marketing strategy revolves around highlighting our comprehensive range of products, services, and competitive pricing. We offer personalized fitness plans, expert coaching, and state-of-the-art equipment to cater to various fitness goals. Our pricing strategy is designed to be accessible, offering different membership options to suit individual needs and budgets. To promote our offerings, we have developed a robust promotions plan that includes social media marketing, email newsletters, and local advertising campaigns. By engaging with our community through these channels, we aim to build brand awareness, attract new members, and retain our existing customer base.

Ensuring the smooth operation of FitForge Gymnasium is our top priority. Our daily operations include opening and closing the gym on time, maintaining the highest standards of cleanliness and equipment functionality, and providing exceptional customer service. We also focus on managing memberships efficiently and conducting fitness classes that meet our members’ expectations. To support our growth, we have outlined key milestones such as expanding our service offerings and upgrading our facilities. By adhering to these operational practices and achieving our milestones, we aim to enhance our members’ experience and sustain our leadership in the Albuquerque fitness market.

Our management team comprises seasoned professionals with extensive experience in the fitness industry. Their expertise spans various areas, including fitness training, business management, customer service, and marketing. This diverse skill set ensures that all aspects of FitForge Gymnasium are managed efficiently and effectively, from daily operations to strategic growth initiatives. Our team’s passion for fitness and commitment to excellence is the driving force behind our success and positions us well for future growth.

Welcome to FitForge Gymnasium, a new gym in Albuquerque, NM, dedicated to providing our community with high-quality fitness and wellness services. As a local gym, we recognize the gap in the market for premium fitness facilities and are here to fill that void with our comprehensive offerings and superior equipment. Our mission is to create a fitness environment that not only meets but exceeds the expectations of our members, making us the go-to destination for health and fitness in Albuquerque.

At FitForge Gymnasium, we offer a wide range of products and services tailored to meet the diverse needs of our clients. Our offerings include personalized personal training sessions, designed to help individuals achieve their fitness goals in a one-on-one setting. We also provide group fitness classes that foster a sense of community and motivation among participants. Understanding the importance of nutrition in overall wellness, we offer nutritional counseling services to guide our members towards healthier eating habits. For those looking to gauge their progress, we conduct fitness assessments, and for our members who prefer the convenience of working out from home, we offer virtual workouts. Our comprehensive approach to fitness ensures that we cater to every aspect of our members’ health and wellness journey.

Located in the vibrant city of Albuquerque, NM, FitForge Gymnasium serves the local community with pride. Our strategic location allows us to be accessible to a wide audience, ensuring that we are here for anyone looking to embark on or continue their fitness journey with us.

Our gym is uniquely positioned for success for several reasons. Firstly, our founder brings a wealth of experience from previously running a successful gym, ensuring that we have the knowledge and expertise to thrive. Additionally, we pride ourselves on having better equipment and offering more services than any other local gym, setting us apart from our competitors. These factors, combined with our commitment to excellence, make us confident in our ability to succeed and grow within the Albuquerque community.

Since our founding on January 3, 2024, FitForge Gymnasium has made significant strides as a business. We are proud to be a S Corporation, which reflects our serious commitment to our business and its growth. Among our accomplishments, we have successfully designed our logo, developed our company name, and secured a great location for our gym. These milestones mark the beginning of our journey, and we are excited about the future possibilities and the opportunity to serve the Albuquerque community through our passion for fitness and wellness.

The Gym industry in the United States has experienced significant growth over the past decade, becoming a thriving market. According to recent data, the industry generated approximately $35 billion in revenue in 2019. This impressive figure highlights the size and importance of the Gym industry in the country. Furthermore, market research predicts that the industry will continue to grow steadily in the coming years, with an expected annual growth rate of 2.9% from 2020 to 2025.

One of the key trends in the Gym industry that bodes well for FitForge Gymnasium is the increasing focus on health and fitness among individuals of all age groups. With a growing awareness of the importance of leading a healthy lifestyle, more people are actively seeking out fitness centers and gyms to achieve their fitness goals. FitForge Gymnasium is well-positioned to capitalize on this trend as it offers state-of-the-art equipment, expert trainers, and a wide range of fitness classes to cater to the diverse needs of its customers.

Another trend that works in favor of FitForge Gymnasium is the rise of boutique gyms. These smaller, specialized gyms have gained popularity among fitness enthusiasts due to their personalized approach and unique offerings. FitForge Gymnasium stands out in this regard by providing a boutique-like experience through its intimate atmosphere, personalized training programs, and exclusive amenities. By tapping into this trend, FitForge Gymnasium can attract a niche market of individuals who value a more bespoke fitness experience.

Below is a description of our target customers and their core needs.

Target Customers

FitForge Gymnasium will target a diverse range of customers, with a primary focus on local residents of Albuquerque, NM. The gym will tailor its services to meet the needs of individuals seeking a convenient and community-focused fitness solution. By emphasizing accessibility and personalized fitness plans, FitForge will attract those living and working in the vicinity who prioritize health and wellness in their busy schedules.

In addition to local residents, FitForge Gymnasium will also cater to fitness enthusiasts and athletes looking for specialized training programs. The gym will offer state-of-the-art equipment and expert coaching to support high-performance training goals. This approach will not only appeal to seasoned athletes but also to individuals aiming to elevate their fitness journey by engaging in more challenging workouts.

Furthermore, FitForge Gymnasium will target corporate clients seeking to improve their employees’ health and wellbeing through corporate fitness programs. The gym will design customized wellness plans that fit the unique needs of each organization, promoting a culture of health within the local business community. This strategy will create opportunities for FitForge to become an integral part of Albuquerque’s corporate wellness landscape.

Customer Needs

FitForge Gymnasium fulfills the essential need for high-quality gym services that residents in the area actively seek. Customers can expect access to state-of-the-art fitness equipment and facilities that cater to a wide range of fitness goals, from weight loss to muscle building. This commitment to quality ensures that members have everything they need to achieve their personal health objectives efficiently and effectively.

Aside from physical equipment, FitForge Gymnasium recognizes the importance of providing a supportive and motivational environment. Members can enjoy personalized training programs, group fitness classes, and wellness workshops that not only help them stay on track but also foster a sense of community. This holistic approach to fitness addresses the need for both physical and mental well-being, making it a comprehensive solution for anyone looking to improve their health.

Moreover, FitForge Gymnasium caters to the convenience and flexibility that modern customers demand. With extended hours of operation, it accommodates people with busy schedules, allowing them to exercise at times that suit them best. The gym also offers various membership plans to fit different budgets and fitness levels, ensuring that high-quality gym services are accessible to a broader audience. This adaptability highlights FitForge Gymnasium’s commitment to meeting the diverse needs of its members, making it an invaluable asset to the community.

FitForge Gymnasium’s competitors include the following companies:

Liberty Gym offers a wide range of fitness services, including personal training, group fitness classes, and access to state-of-the-art equipment. Their price points vary depending on the services chosen, offering both membership options and pay-per-class for more flexibility. Liberty Gym generates significant revenue by catering to a broad customer segment that includes fitness enthusiasts of all levels, from beginners to advanced athletes. The gym is situated in a central location in Albuquerque, NM, making it accessible to a large population. Liberty Gym’s key strength lies in its community-focused approach, creating a supportive and motivating environment for its members. However, its weakness might be seen in the limited variety of specialized fitness programs compared to some competitors.

The Open Gym prides itself on being accessible 24/7, catering to customers with varying schedules. They offer a diverse range of equipment, personal training services, and several membership options tailored to individual needs, with competitive pricing that appeals to budget-conscious consumers. The Open Gym has a strong presence in Albuquerque, NM, serving a wide geographic area and attracting customers from all walks of life. Their revenue is driven by their ability to retain long-term members, thanks to their flexible operating hours and comprehensive service offerings. A key strength is their focus on convenience and accessibility, ensuring that fitness solutions are available to everyone, anytime. However, a potential weakness could be the challenge of maintaining a high-quality experience during peak hours due to their 24/7 open policy.

Republiq focuses on a boutique fitness experience, offering specialized classes such as yoga, pilates, HIIT, and cycling, in addition to personal training services. Their price points are on the higher end, reflecting the premium experience and personalized attention they provide. Republiq operates in a few select locations in Albuquerque, NM, targeting a niche market of fitness enthusiasts looking for a more exclusive gym experience. They generate revenue not only through their membership fees but also through a range of wellness products sold on-site. Republiq’s key strength is its focus on creating a luxurious fitness environment with high-quality equipment and small class sizes for more personalized instruction. However, this exclusivity and focus on premium offerings could be a weakness, as it may limit their appeal to a broader customer base looking for more affordable fitness solutions.

Competitive Advantages

At FitForge Gymnasium, our competitive edge stems from our unparalleled selection of equipment and the diversity of services we offer to our clients. We understand the evolving fitness landscape and strive to cater to the wide spectrum of fitness goals and preferences of our members. From state-of-the-art weightlifting machines and cardio equipment to specialized areas for yoga, pilates, and high-intensity interval training (HIIT), our facilities are designed to meet the specific needs of every individual. Moreover, our commitment to quality extends beyond our equipment. We offer a range of services including personal training sessions, nutritional planning, and wellness workshops, all aimed at providing our members with a holistic fitness experience.

Beyond our superior equipment and services, our competitive advantage lies in our community-focused approach. We pride ourselves on creating a welcoming environment where members can feel motivated and supported in their fitness journeys. Our staff, from the front desk to our certified trainers, are dedicated to fostering a positive, inclusive atmosphere. This commitment to community extends outside the gym walls through our engagement in local events and partnerships with local businesses, promoting a lifestyle of health and wellness throughout Albuquerque. In essence, our members can expect not just a place to exercise, but a place where they belong, making us a standout choice in the fitness industry.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

At FitForge Gymnasium, customers can find a diverse range of fitness solutions tailored to meet their individual needs and objectives. From personal training to group fitness classes, the gymnasium offers a comprehensive suite of services designed to cater to various preferences and fitness levels. Each service is delivered by certified professionals committed to helping members achieve their health and wellness goals.

Personal Training is a core service, providing members with one-on-one coaching from experienced trainers. These sessions are ideal for those seeking customized workout plans, specific skill development, or extra motivation. Prices for Personal Training sessions average at $60 per hour, offering a valuable investment in one’s health and fitness journey.

Group Fitness Classes are another popular option, allowing members to engage in a variety of workout styles in a motivating, community-driven environment. Classes range from yoga and pilates to high-intensity interval training (HIIT) and cycling, ensuring there’s something for everyone. The average price for Group Fitness Classes is $15 per class, making it an affordable way to stay active and connected with others.

Nutritional Counseling is available for members looking to complement their fitness regimen with dietary guidance. Certified nutritionists work closely with individuals to create tailored eating plans that support their fitness goals. This service is priced at an average of $50 per session, providing a personalized approach to nutrition and wellness.

Fitness Assessments offer members a detailed analysis of their current fitness level and help in setting realistic goals. These assessments are conducted by professionals and include evaluations of body composition, cardiovascular fitness, muscular strength, and flexibility. At an average price of $30 per assessment, members can gain valuable insights into their health and progress.

Virtual Workouts have become an essential part of the gym’s offerings, catering to members who prefer exercising from the comfort of their home or are unable to visit the gym. These online sessions include a wide range of classes led by qualified instructors. With an average price of $10 per class, Virtual Workouts provide a flexible and convenient option for maintaining fitness.

FitForge Gymnasium is dedicated to offering accessible and effective fitness solutions. With a focus on quality, expertise, and community, the gymnasium ensures that every member has the support and resources needed to pursue a healthier, more active lifestyle.

Promotions Plan

FitForge Gymnasium understands the competitive landscape of the fitness industry and recognizes the importance of a comprehensive promotional strategy to attract customers. A mix of online marketing efforts coupled with traditional and innovative promotional tactics will ensure the gym stands out in the Albuquerque market.

Online marketing will play a crucial role in FitForge Gymnasium’s promotional strategy. The gym will leverage social media platforms to engage with potential customers, sharing workout tips, success stories, and live fitness classes to showcase the value they bring. A user-friendly website will serve as the digital front door, providing easy access to membership information, class schedules, and a blog filled with health and fitness advice. Email marketing campaigns will keep prospects and members informed about special promotions, new classes, and events, encouraging continual engagement with the brand.

Beyond digital efforts, FitForge Gymnasium will implement referral programs, offering existing members incentives for bringing in new members. This strategy not only helps grow the customer base but also reinforces the community aspect of the gym, making it a more appealing choice for individuals seeking both fitness and social connection. Local community events and partnerships with health-focused businesses in Albuquerque will further increase visibility and demonstrate FitForge Gymnasium’s commitment to the well-being of its community.

Introductory offers, such as free trial memberships or discounted rates for the first month, will entice prospects to experience the gym firsthand. Once inside, the quality of services, state-of-the-art equipment, and the welcoming atmosphere will encourage them to stay. In addition, targeted advertising in local media and fitness magazines will reach a broader audience, highlighting the unique selling points of FitForge Gymnasium and drawing attention from fitness enthusiasts across Albuquerque.

Overall, FitForge Gymnasium will employ a dynamic and multifaceted approach to promotion. By combining the power of online marketing with the impact of community engagement and traditional advertising, the gym expects to build a strong and loyal customer base, setting the foundation for long-term success in the fitness industry.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of FitForge Gymnasium, there are several key day-to-day operational processes that we will perform.

• Open and close the gym on time each day, ensuring the facility is ready for customers as soon as they arrive and securely closed after the last customer leaves.
• Maintain cleanliness and sanitation throughout the gym, including disinfecting equipment after use, cleaning floors, and ensuring restrooms and changing areas are hygienic.
• Perform regular equipment checks to ensure all gym equipment is in good working order and repair or replace any faulty equipment immediately to prevent accidents and ensure customer satisfaction.
• Provide customer service and support, including greeting customers warmly, answering any questions they have, and addressing their concerns promptly to ensure a positive gym experience.
• Manage memberships and sign-ups, ensuring all customer paperwork is up to date, processing new memberships, renewals, and cancellations efficiently.
• Conduct fitness classes and personal training sessions as scheduled, ensuring they start and end on time and meet the expectations of participants.
• Engage with customers to collect feedback on their gym experience, using this information to make improvements and adapt services to meet customer needs better.
• Monitor gym occupancy and manage access during peak times to ensure a comfortable and safe workout environment for all members.
• Manage inventory, including ordering supplies before they run low, such as cleaning products, office supplies, and fitness equipment accessories.
• Conduct financial activities, including processing payments, managing expenses, and ensuring the gym operates within its budget.
• Market the gym through various channels, including social media, email newsletters, and local advertising, to attract new customers and retain existing ones.
• Develop and update emergency procedures and conduct regular staff training on these procedures to ensure customer and staff safety in case of an emergency.

FitForge Gymnasium expects to complete the following milestones in the coming months in order to ensure its success:

• Securing a Prime Location: Identify and secure a lease for a facility in a high-traffic area with ample parking, visibility, and accessibility for our target market in Albuquerque, NM.
• Obtaining Necessary Permits and Licenses: Complete all legal requirements including zoning permits, health and safety certifications, and any other local regulations necessary to operate a gymnasium.
• Facility Buildout and Equipment Procurement: Design and outfit the gym space with high-quality, reliable gym equipment, locker rooms, and customer-friendly amenities to ensure a positive user experience.
• Staffing: Hire and train qualified staff, including personal trainers, front desk personnel, and maintenance staff, ensuring they align with the brand’s values and customer service standards.
• Soft Launch: Conduct a soft opening for a select group of invitees to gather feedback on the facilities, services, and overall customer experience. Use this feedback to make necessary adjustments before the official opening.
• Launch Our Gym: Officially open FitForge Gymnasium to the public with a grand opening event to generate buzz and attract initial membership sign-ups.
• Marketing and Community Engagement: Implement a comprehensive marketing strategy that includes local advertising, social media presence, and community events to build brand awareness and attract members.
• Membership Growth Strategies: Introduce referral programs, membership discounts, and corporate wellness partnerships to grow the member base and increase gym utilization.
• Operational Excellence: Establish robust operational protocols for customer service, facility maintenance, and financial management to ensure a high-quality member experience and efficient business operations.
• Get to $15,000/Month in Revenue: Achieve the financial milestone of generating $15,000 per month in revenue through membership sales, personal training sessions, and ancillary services.

FitForge Gymnasium management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Sofia Carter, CEO

Sofia Carter brings a wealth of experience to her role as CEO of FitForge Gymnasium. With a proven track record of leadership and success, Sofia has previously demonstrated her capacity to manage a fitness establishment effectively. Her background is distinguished by a clear vision for success, an unwavering dedication to health and fitness, and a deep understanding of the dynamics of gym management. Sofia’s leadership skills, combined with her passion for fostering a supportive and motivating environment for gym members, make her uniquely qualified to steer FitForge Gymnasium towards achieving its goals. Her experience not only in running a gym but in navigating the challenges of business growth and customer satisfaction is instrumental in ensuring the gym’s lasting success.

To achieve our growth objectives, FitForge Gymnasium requires substantial funding. These resources will be allocated towards expanding our service offerings, upgrading our equipment, and enhancing our facilities. Our financial strategy is designed to ensure that we maximize the return on investment for these initiatives, driving increased membership and sustaining our competitive edge in the market. With a solid financial plan in place, we are poised to reach our growth goals and continue our trajectory as a leading fitness center in Albuquerque.

Financial Statements

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Income Statement

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Cash Flow Statement

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Gym Business Plan Example PDF

Download our Gym Business Plan PDF here. This is a free gym business plan example to help you get started on your own gym plan.  

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How to Create a Gym Business Plan: Complete Guide

Blog > how to create a gym business plan: complete guide, table of content, introduction, i. executive summary, ii. market analysis, iii. services and offerings, iv. organisational structure and management, v. marketing and sales strategies, vi. funding and financial projections, vii. operations and logistics, viii. swot analysis, our other categories.

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Business plan 101.

Are you eager to launch your own fitness empire and make a difference in people’s lives? To ensure your gym’s success, you need a well-crafted business plan. At Stellar Business Plans, we understand that a solid roadmap is essential for entrepreneurial triumph. This blog post will be your guiding light as we navigate the process of creating an exceptional gym business plan tailored to your market and target audience. Let’s delve into the world of fitness entrepreneurship and discover how Steller’s expertise can elevate your gym business to new heights.

Your gym’s success hinges on an impactful executive summary. This section is your opportunity to captivate potential investors and partners with a snapshot of your gym’s vision and objectives. At Stellar Business Plans, we specialise in crafting succinct yet persuasive executive summaries that showcase your gym’s unique selling points and potential for growth. By focusing on data-driven insights and incorporating persuasive language, we’ll ensure your gym business plan leaves a lasting impression.

A thorough market analysis is the bedrock of a successful gym business plan. Stellar Business Plans’ expertise lies in mining relevant data and uncovering market trends that align with your gym’s offerings. We will provide comprehensive reports on your target audience’s demographics, fitness preferences, and spending habits. Our analysis will also identify your competitors’ strengths and weaknesses, enabling you to position your gym effectively in the market.

At Stellar Business Plans, we know that your gym’s unique services and offerings are what will set it apart. Our approach involves showcasing each fitness programme and class with compelling descriptions that resonate with your target audience. Through carefully curated bullet points, we’ll highlight the health benefits and personal growth opportunities that your gym provides, leaving potential customers eager to experience your services.

A successful gym needs a robust organisational structure and a capable management team. Stellar Business Plans understands the significance of having the right people on board. We’ll introduce your management team with an emphasis on their expertise and industry experience. Additionally, we’ll outline their roles and responsibilities, assuring potential investors that your gym is in capable hands.

To propel your gym to success, a dynamic marketing and sales strategy is essential. At Stellar Business Plans, we recognise the power of a strong brand identity. We’ll help you define your gym’s branding and positioning to create a lasting impact on your target audience. By utilising industry statistics, we’ll demonstrate the efficacy of various marketing channels and sales tactics, ensuring your gym maximises its reach and customer acquisition.

Securing funding is a crucial step in establishing your gym. Stellar Business Plans’ financial experts will provide you with an in-depth breakdown of startup costs, ensuring you are well-prepared to approach potential investors. Through data-driven financial projections presented in tables and charts, we’ll paint a clear picture of your gym’s revenue streams and profitability, giving investors confidence in the venture’s viability.

Smooth operations are the backbone of a thriving gym business. Stellar Business Plans will guide you through the meticulous process of location selection, ensuring you choose the perfect spot to attract your target audience. We’ll assist you in identifying essential gym equipment and supplies, optimising your gym’s functionality and customer experience. Our experts will recommend software and management tools that streamline day-to-day operations, freeing up valuable time for growth-focused tasks.

A comprehensive SWOT analysis provides invaluable insights into your gym’s internal strengths and weaknesses, as well as external opportunities and threats in the market. At Stellar Business Plans, we conduct a meticulous assessment to help you make strategic decisions and leverage your gym’s advantages effectively.

• Highly qualified and experienced management team.
• State-of-the-art gym equipment and facilities.
• Unique fitness programmes are tailored to cater to diverse customer needs.
• Strategic location with high visibility and accessibility.
• Stellar Business Plans’ expertise and guidance in crafting an exceptional gym business plan

Weaknesses:

• Limited brand awareness in the local market.
• Initial financial constraints during the startup phase
• Relatively small customer base during the initial months of operation.
• Limited range of supplementary services (e.g., nutrition counselling).

Opportunities:

• Growing fitness consciousness among the target audience.
• Collaborations with local health and wellness influencers
• Expanding the gym’s services to include specialised training programmes (e.g., functional fitness, HIIT, yoga)
• Offering corporate wellness programmes to local businesses.
• Leveraging social media platforms for organic growth and community engagement
• Intense competition from established gyms and fitness centres.
• Economic downturn is affecting consumers’ disposable income.
• Changes in government regulations or health guidelines impact gym operations.
• Negative online reviews or social media backlash.

Crafting a compelling gym business plan requires expertise, dedication, and industry insights. At Stellar Business Plans, we are committed to empowering entrepreneurs like you to realise their fitness business dreams. By following the guidelines provided and incorporating Stellar’s brand name organically throughout the content, this blog post serves as a comprehensive guide, equipping you with the tools you need to create an exceptional gym business plan that will set the stage for enduring success.

With Stellar Business Plans as your partner in fitness entrepreneurship, you can confidently stride towards a future where your gym thrives and your passion for fitness inspires others to lead healthier lives.

Book a free discovery call with our consultant today.

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Updated On : September 2, 2023

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Creating a Successful Gym Business Plan

A Business plan is a crucial element in a successful gym and fitness center. To successfully create a business plan for your gym, understand how the process needs to cover all the necessities that come in an efficient business plan.

Zach Colman

December 14, 2023

An outstanding business plan is filled with various administrative characteristics that every gym or fitness owner should consider to maintain balance and organization in their fitness centers successfully. By creating a functional and detailed gym business plan, you will have a guide to help you make better decisions and attract customers to your gym or fitness center.

This article aims to discover the benefits and importance of a solid gym business plan and how it can help your business grow and improve in different development areas through a successful business model and diverse marketing strategies.

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Business Plan for Gyms 

A gym business plan template can help you achieve your goals and serve as a guide throughout your journey. From understanding the structure of your business to identifying your target market , a gym business plan will be the tool that provides a clearer vision of your goals and what you want to achieve.

By having a well-defined business strategy before starting a fitness center, you can bring numerous benefits to your gym, including the following:

• Reduce possible problems and complications
• Saves you valuable time 
• It will be easier to reach the goal 
• Having a better understanding of your company overview
• A more straightforward executive summary methodology.

For a gym business plan to succeed, it must include essential elements such as a comprehensive business description and a thorough target market analysis. We will delve deeper into these topics later in the article.

A Clear Business Description 

Before making any decisions, it is crucial to determine the approach or focus you want your gym to have. Important aspects, such as the type of fitness center you wish to start, must be decided beforehand. You can choose from traditional gyms, boutique studios, or specialized facilities within the fitness industry. Therefore, a clear goal is essential before proceeding with your business plan.

Once you have defined the approach for your fitness center, you can proceed with other essential tasks, such as outlining legal considerations, deciding on the ownership structure, and obtaining necessary licenses or permits.

Some primary avenues through which a fitness business or gym can provide exceptional quality services include, but are not limited to:

• First-class exercise equipment 
• Customer service 
• Knowledgeable employees    

Market Analysis

Performing a market analysis is one of the most critical steps in every gym business plan. By identifying your target audience, you can more effectively approach new customers and better understand what they are looking for in a fitness center. Familiarizing yourself with industry trends and local competition is essential for this process.

Starting with demographics can be a solid foundation for your market analysis. Get to know both the direct and indirect competitors in your area of interest and study the local market. Analyze their working methods and the promotions they run at their fitness centers, and try to identify any mistakes or areas for improvement in their strategies. If beneficial for your fitness center, consider incorporating these findings into your business plan.

Within your demographic analysis, here are some other factors that will help you gain a better understanding of your customers in your local area:

• Statistical data on income 
• Statistical data on employment
• Statistical data of age and gender. 

Identify that unique element that your gym will bring to customers and capitalize on it. Aim to make your gym stand out as a business, offering customers a new and exceptional experience while providing high-quality service compared to competitors.

Consider hosting fitness classes led by experienced trainers, organizing events that interest your customers, and regularly conducting satisfaction surveys about the quality of classes, facilities, and equipment. These are just a few ways to ensure your users feel heard and maintain a service that consistently receives positive feedback from gym members and staff. 

Services and Facilities 

As a gym owner, you must carefully consider the services your gym will offer and the facilities you want to implement. Providing quality equipment, engaging and functional group fitness classes, and hiring experienced trainers and staff will be instrumental in achieving the goals outlined in your business plan.

A marketing strategy to attract potential customers to your gym is to offer a range of membership options. By providing them with various choices and attractive membership deals, they will become interested in your fitness center, pay more attention to your presence, and feel curious to know more about its offerings.

Marketing and Sales Strategies 

Having a well-structured gym business plan requires careful consideration of marketing and sales strategies that will position your gym favorably in the eyes of the public. When implemented with the proper methodology and guidance, a strong marketing and sales strategy can significantly benefit your gym business plan.

To create an efficient marketing and sales strategy, it is essential to have a cohesive branding methodology, develop a proper website, employ an accurate social media marketing approach, have a qualified management team, and generate quality online content.

Position your gym or specialized fitness center as a critical goal in your business plan. Cultivating a brand identity that showcases quality equipment, services, personal trainers, and facilities will create a positive image for your gym within the community and among online users. A good starting point for your marketing strategy is to consider partnering with another gym or fitness center that offers different services but shares related brand goals, a similar company vision, and a complementary brand aesthetic vibe.

Creating an organizational structure for the gym will also prove helpful in maintaining better control over staff and trainers, determining staffing requirements, and effectively assigning management roles and responsibilities.

Work with us! 

At Creatitive , we understand how important it is to create a gym business plan that will adequately fit your needs and goals for you to succeed in your fitness center. That is why if you would like an experienced team to help you create the perfect business plan, we encourage you to contact us, and we will happily provide you with all the information and answer any questions you might need. 

What advantages will I have by creating an efficient business plan? 

A successful business plan will help you understand your market, give a better approach to your strategies, and provide you with a structured plan that will make it easier for you to succeed. 

Is it necessary to have an experienced team for me to start my business plan? 

An experienced team certainly will help you to go through your business plan to make it as functional as possible without many complications that can come along the way. However, if you feel comfortable doing your business plan alone, that can also be achieved without any problem. 

Are there other business plan aspects I need to take into consideration?

Yes, characteristics like the legal structure, equipment promotions prices, operations plan, and financial projections are vital.

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Gym Financial Plan

Are you a fitness freak dreaming of opening your own gym? Well, it could be the most exciting and rewarding move for you!

But in the process of shaping a gym business plan, you might be wondering how to draft a solid financial plan without any hassle.

However, it’s very crucial to understand the financial aspects of your business, starting from startup costs and funding needs to break-even analysis.

Well, we know that financial planning is not an easy task; that’s why we are here to guide you!

This sample gym financial plan will help you get started and provide valuable insights into your gym’s profit & loss potential.

Sounds good? Let’s dive right in.

Key Takeaways

• The income statement, balance sheet, cash flow projection, and break-even analysis are the primary elements of a financial plan.
• Be practical and conservative about your revenue forecasts and cash flows to grab investors’ attention.
• Enhance the accuracy of your plan by exploring the methods of test assumptions and scenario analysis.
• Make reliable financial projections with thorough industry research, clear market understanding, and realistic assumptions.
• Preparing a gym financial plan is much easier and faster when you use financial planning software.

Gym Financial Outlook

Before jumping right into financial planning, let’s take a closer look at the financial state of the gym industry.

The gym & fitness industry is currently experiencing significant growth with the increasing health consciousness and the growing demand for fitness services.

Here are some key highlights from the industry:

• It’s projected that the global health & fitness market will grow at an annual rate of 7.67% and is estimated to have a total worth of $169.7 billion by 2030.
• The total revenue of the gym & fitness industry in the United States was recorded at an impressive $31.2 billion in 2023, with about 113,000 fitness businesses in the mix.
• The US personal training market size was valued at $14 billion in 2023, providing employment opportunities to nearly 839,000 people.
• Amongst the different trends, fitness app usage has surged, and the global revenue from fitness apps is expected to reach around $6.86 billion in 2024.

Overall, the gym & fitness industry outlook shows a promising future for new businesses to emerge in this competitive marketplace.

Now, without further ado; let’s understand how to draft a winning financial plan.

How to Prepare a Gym Financial Plan

• Calculate business startup costs
• Determine financing requirements & strategy
• Understand your business model
• Identify revenue streams
• Market analysis and pre-assumptions
• Make financial projections
• Test assumptions and scenario analysis
• Monitor and update your plan

1. Calculate Business Startup Costs

Once you’ve decided to open a gym, it’s very crucial to have a clear understanding of your finances, right? So, you’ll need to calculate the gym startup costs very first!

You may start by identifying all the initial expenses associated with your fitness venture, including facility rent, gym machines & equipment, staff salaries, marketing, and administrative costs.

You can also research local market conditions and industry benchmarks to evaluate the typical costs of starting a gym . This will help you get accurate estimates.

Try to be clear and comprise every potential cost, no matter how small it is. You can make a specific list of all the expenses, as shown in the below table:

So, having a good idea of startup costs will help you create a proper budget and determine the necessary capital to launch your business successfully.

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2. Determine Financing Requirements & Strategy

Sometimes, people don’t have enough money to start their own business. So, they might need to ask for help from others to get the initial investment.

For your gym, you may evaluate the current monetary position and determine how much startup capital you’ll require to fund your business. Also, assess various financing options and develop a clear strategy to secure funding.

Here are a few funding options you may consider:

• Traditional bank loans
• Small Business Administration (SBA) loans
• Private investors
• Crowdfunding
• Partnerships

For each option, you have to evaluate the terms, interest rates, and repayment methods. This will let you devise a financing strategy that aligns with your investment goals and risk tolerance.

Then, you can decide which funding option is the most appropriate for your gymnasium business.

Furthermore, while seeking credit from banks or investors, you’ll need a professional document that projects how your gym’s financial modeling works. It will assist potential lenders to have a better idea of your business.

3. Understand Your Business Model

Developing a scalable business model is a crucial aspect of a financial plan. This is something you have to decide before you start running your business.

It is a strategic framework that defines how you generate income, manage expenses, and reach your financial objectives.

Here is a list of different business models for a gym:

• Traditional gym
• Boutique studio
• Online fitness platform

While deciding on any of the above models, you have to understand their financial considerations, including revenue potential, market demand, scalability, market demand, and operating costs.

This will help you make well-informed decisions and achieve your financial goals in the long run.

4. Identify Revenue Streams

Identifying your business revenue streams is an essential part of maximizing profitability. So, try to diversify your income sources within the market and create a robust portfolio.

It will help potential investors or lenders determine how much revenue your business intends to generate over the next few years.

For instance, you may include the following revenue streams in your gym financial projections:

• Membership plans
• Personal training sessions
• Group classes
• Retail sales of fitness products
• Wellness programs

Providing a range of offerings can help you appeal to a broader audience and maximize revenue potential.

Well, using Upmetrics could be a great help here. It will not just calculate financial projections but also help you identify relevant revenue streams.

For better understanding, you may consider the following example prepared using Upmetrics:

Furthermore, it allows you to make informed decisions about your revenue by using different ways to forecast income streams, such as unit sales, the charge per service, recurring/hourly charges, or fixed amounts.

So, this can be an effective and accurate way of estimating your income potential.

5. Market Analysis and Pre-Assumptions

A successful business requires a comprehensive market analysis to gain valuable insights into the local business landscape.

While writing a gym business plan , you’ve already conducted thorough market research and have a good knowledge of the target market, customer segmentation, industry trends, and competitors.

So, it’s time to use that knowledge to prepare a financial forecast and make realistic assumptions about membership rates, retention rates, ongoing facility maintenance, payroll, and operating expenses.

Here are a few key components that you should include in your plan:

Pricing Strategy

When it comes to devising a pricing strategy, there’s no bound law. Yet, you’ll need to analyze a few factors, such as your membership offerings, target market, gym facilities & equipment, and local competition, to develop optimal pricing.

You may conduct a competitive market analysis to comprehend the general market prices and set competitive yet profitable sales prices.

Remember, your prices should reflect the value of your gym and still help you generate sufficient returns on your investment.

Sales Forecast

A sales forecast is a primary element of any business, serving as the cornerstone for its profitability and growth.

It helps you estimate future gym membership sign-ups and revenue generation based on market demand, consumer preferences, pricing strategy, marketing efforts, and economic factors.

You can analyze historical sales data and industry trends to predict future demand for your target market and gain insights into the potential growth trajectory of your gym business.

Business Expenses

Generally, business expenses are operating costs or day-to-day expenses that will keep your business running smoothly.

For your fitness center, you may conduct a detailed analysis of its anticipated expenses, including rent, utilities, insurance, payroll, equipment maintenance, and marketing fees.

In addition to that, you may consider a few factors, like market trends, inflation, regulatory changes, or unexpected repairs, while evaluating your business expenses.

Here, you should note one thing—you must account for probable cost overruns or unexpected expenses during business operations. So, be conservative in your financial projections.

6. Make Financial Projections

If you want to attract investors, let the numbers do the talking. This is so because potential investors or stakeholders will look at the financial reports once and decide whether or not to invest in your business.

So, ensure that the key financial reports give a clear picture of your gym’s financial performance and viability.

Here’s a list of several financial statements and analyzes you should incorporate into your projections:

Cash flow statement

A cash flow statement helps you track the cash flow in and out of your business over a specific timeframe, generally monthly, quarterly, or annually.

It provides a detailed explanation of how much cash your gym brings in, pays out, and ends with the cash balance. Typically, it’s an illustration of how well your gym is generating cash.

You may take into account the cash flows related to membership fees, buying or selling gym equipment, loan repayments, borrowing, or equity investments.

Be realistic about your financial assumptions and measure your business’s liquidity, capability to meet financial obligations, and sufficiency of cash flow to fund future investments and expense outlays.

• Balance sheet

A balance sheet provides a quick overview of your business’s financial position at a specific time.

It clearly demonstrates what you own, what you owe to vendors or other debtors, and what’s left over for you. After all, it has three main elements:

• Assets: Cash, gym equipment, property, and accounts receivable
• Liabilities: Debts, loan repayments, and accounts payable
• Equity: Owners’ equity & other investments, stock proceeds, and retained earnings

Ideally, it is formulated as, assets = liabilities + equity

By looking at your balance sheet, anyone can get the exact idea of how financially stable your business is, how much cash you hold, and where your money is tied up.

• Income statement

The income statement is also known as a profit and loss statement(P&L), explaining how your business made a profit or incurred a loss over a specific period, typically monthly, quarterly, or annually.

Depending on the structure and type of your business, consider adding these factors—revenue or sales, operating expenses, and gross margin to your profit and loss statement.

You may calculate the gross margin by subtracting the cost of sales or COGS from revenue. It enables you to determine your business’s efficiency in utilizing resources.

Further, the P&L statement should also include operating income, which is equivalent to EBITDA. And the net income is the ultimate goal of any business, found at the end by deducting the operational expenses from EBITDA.

Overall, the income statement helps you gauge your business’s profitability, financial performance, and feasibility in the long run.

Break-even Analysis

The break-even analysis allows you to determine the point at which your business’s total revenue matches its total expenses, causing no profit or loss.

It helps you evaluate the level of sales or revenue needed to cover your gym’s fixed and variable costs.

This analysis provides valuable insights into your financial sustainability and helps you set sales targets, pricing strategies, and cost-control criteria.

What is the average break-even period for a gym?

Typically, the average break-even period for a gym can vary widely based on a few factors, such as location, membership pricing rates, customer acquisition costs, market conditions, business expenses, and operational efficiency. However, the gym takes approximately 12 to 24 months to reach the break-even point and start achieving profitability.

7. Test Assumptions and Scenario Analysis

As your entire plan is prepared based on assumptions, you’ll need to regularly review and stress-test your financial projections to check their relevance with market realities and business performance.

In this stage, you may consider various “what-if” situations and think about scenarios where things go well or don’t.

For instance, you’ll need to consider the changes in membership rates, operating costs, or market demand to measure the stability of your gym’s financial projections.

By performing test assumptions and sensitivity analysis, you can adjust your strategies accordingly to mitigate risks, optimize returns, and make well-informed business decisions.

8. Monitor and Update Your Plan

Once your plan is ready, continuously evaluate and monitor your gym’s financial performance closely against the financial projections and key performance indicators(KPIs).

You can compare the actual financial results with the projected income streams, expenses, and ROI to take note of any variances or deviations from the plan.

If some factors are remarkably different from projections, recognize the causes behind them. This will help you understand which areas need improvement and which works as anticipated.

Also, review and update your strategies accordingly to optimize financial results and achieve long-term success.

Now that you know how to create a solid gym financial plan, it’s time to explore an example for easy understanding.

Gym Financial Plan Example

Creating a gym financial plan from scratch can be overwhelming, right? But not to worry; we’re here to help you with a realistic financial plan example prepared using Upmetrics.

It includes all the key elements of the gym’s financial projection, including the income statement, balance sheet, cash flow statement, and break-even point. This will streamline the entire planning process and help you get started.

Start Preparing Your Gym Financial Plan

And that’s a wrap—we’ve discussed all the fundamental aspects of financial planning. So, it’s time to put that knowledge into action.

But if you still feel swamped by the thought of creating a financial plan, don’t worry. We’ve got you covered.

Upmetrics’ AI Assistance and financial forecasting features will help you create accurate financial projections and make smart decisions for your business’s future.

You’ll have to simply input the financial assumptions and let it figure out the rest!

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Frequently Asked Questions

Do i need a financial advisor for my gym.

It’s not mandatory to have a financial advisor for your gym, as there are several financial planning software available in the market. Yet, having one can help you make strategic financial decisions, estimate potential risks, optimize the tax strategy, and address complex financial matters.

How long should a financial projection be?

Actually, the length of a financial projection can differ based on your gym’s specific needs and goals. However, it’s advisable to cover a period of at least 3 to 5 years in the financial projections. This time frame allows you to assess your gym’s long-term financial performance and sustainability.

What are the key components of a gym financial plan?

You should include the following key components in your gym financial plan:

• Gym startup costs
• Financial needs
• Revenue projections
• Operational expenses
• Cash flow management
• Break-even point
• Contingency plan

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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