A good gym business plan lays the groundwork for the business to be run in a strategic and methodical way. It also helps you focus your efforts on the way to achieving success and thereby attracting potential lenders and investors. A good gym business plan should describe comprehensively the sections looked out for by investors and lenders.
Overview of a Gym Business Plan
A compelling gym business plan is a blueprint for your gym business. It helps you not to get sidetracked and lose sight of your goals or make decisions that may be out of sync with your ultimate gym business objectives. The vital sections that need to be extensively and precisely discussed in a gym business plan to make it attractive to investors/lenders include the following:
- Executive Summary
- Business and Industry Overview
- Market Analysis and Strategy
- Risk and Significant Opportunities
- Location and Assets
- Operational technology
- Management and Human Resource
- Financial Plan
The executive summary is equivalent to an elevator pitch, it informs your readers why your gym business will succeed. Getting the attention of your readers in this section is crucial. The best approach for addressing this section is by writing the rest of your gym business plan first and then writing your executive summary at the end. This way, you’ll have all the information to do so at your fingertips. Key points to discuss in this section are your business objectives, products, and services, and insights on your target market backed up with quantitative data. You will also have to showcase your competitive advantage and unique selling point, shine a spotlight on the strengths of your business model, and finally, a summary of your financial projections.
In this section, capture information about your gym business by discussing the company profile, mission statement, vision, core values, and business objectives. Begin by briefly giving a history of the business, the gym products and services, inclusive of work-out areas, instructor services, weight loss challenges, etc. Also, mention any additional services your gym maybe specialize in such as nutrition advice, lifestyle seminars, boot camps, walk groups, etc. Wind up by stating the short-term and long-term goals of the business, and your expansion plans. Finally, talk about the organizational structure and briefly state the operations strategy.
Business and Industry Overview
Highlight the external factors affecting your gym business from demographics, economic, sociocultural, legal to political. As you draft your business plan, make sure to do an analysis that will point out how you plan to make the most of the opportunities and as well your risk mitigation strategy. Mention the major players in the fitness industry both nationally and locally. Also, include information on your suppliers of the gym exercise equipment including training bench, dumbbell set, barbell set, kettlebell set, treadmill, pull up and frame bar, etc. Finalize by stating the government and any other regulations directly impacting the operations of your business.
Market Analysis and Strategy
Your gym business plan will not be complete without an analysis of your market research. Show the potential lender and investors that you have done thorough market research by clearly pointing out the unique selling proposition that will give you a competitive edge. The best way to determine what this should be is by analyzing the prevailing industry trends and documenting what your competitors are doing, clearly showing how your proposed gym offering will tap into unanswered consumer needs. For instance, you may choose to stand out by offering extra services such as a personal instructor, juice bar, pool, spa, or sauna, or rooms designated for specific activities like stretching and sports massage.
Then talk about the robust marketing strategy that you will use to strongly introduce your brand in the market, attract and retain customers. They can include social media marketing, advertising, email marketing, referral program, sponsorships, partnerships, and attractive packages.
Risk and Significant Opportunities
Briefly identify the strengths and weaknesses, and opportunities and threats inherent to your market, and show how your gym business will respond with the resources you have at hand.
Location and Assets
If you already have a site or a facility, state the location mentioning whether you plan to buy, rent or lease the space. Point out the benefits such as size, visibility, accessibility, parking, zoning, build-out potential, rent expectations, area demographics, and exposure to your target market. If you are still exploring location and site options, provide the criteria you’ll use to evaluate potential facilities, including the ideal characteristics you’re looking for. Finally, mention the list of equipment you will need to get your gym running.
Most first-time gym owners make the mistake of failing to budget for operational tech expenses. With the evolving technology, a turnstile and a receptionist are no longer sufficient to manage access to a gym. The important technology may include the gym management software you plan to use, visitor screening tech (all the more important in the time of COVID-19), etc.
Management and Human Resource
You and your team members ideally should have fitness experience within your niche. Highlight your teams’ skills, experience, and expertise. Make sure to include an organizational structure showing how specific team members will help you achieve the set business goals.
Next talk about the proposed compensation packages and benefits you plan to offer your employees keeping in mind labor is usually one of the highest expenses of any gym. It has to be commercially viable but at the same time attractive to top talent.
This section will include your income statements, balance sheets, and cash flow statements for up to three to five years (best case, worst case, and expected), Industry benchmarks and ratios, and expense projections, including start-up costs, payroll, loan repayments, etc. Use the numbers to summarize your data and present profit assumptions while ensuring a reasonable percentage of cash in the business.
Starting or expanding a business is has its own set of challenges. In order to succeed you will need a detailed plan that will be a roadmap for achieving your goals. A thorough business plan will help you assess the viability of your project, cement your ideas, develop goals and a path to achieve them, and be used it as a tool to help attract the funding required to launch your business and position help it be sustainable. Here at Vaisus, we are a team of business plan professionals who are ready to assist you in creating a comprehensive, customized, and funding-ready business plan for your gym business. Schedule an appointment with us to speak to one of our consultants today!
Photo: Andrea Piacquadio on Pexels