Steps to Opening and Running a Gym – Sample Business Plan Template
Is opening a gym profitable? Opening a gym business involves a lot of planning. We will discuss the topic; ‘opening a gym business plan’ as well as what should be included in your plan.
By the end of this article, you should be able to put together a basic gym business plan. While having an effective plan is important, its strict implementation is equally important.
This helps in actually following through with the plan. Doing otherwise will lead to its eventual failure. This sample gym business plan template will be discussed under the following sections;
- Executive Summary
- Market Trends
- Target Market
- Competitive Advantage
- Marketing and Sales Strategy
- Pricing Strategy
- Payment Channels
- Start-up Budget
- Financial Projections
Fitness Addicts is a world class family fitness club located in St. Louis, Missouri. 80% of our membership consists of people between the age-group of 18 to 50. Fitness Addicts currently has a membership of 100 and growing. Within the next 3 years, we plan on adding 400 members. Membership fee currently stands at $900 a year.
While parents workout in our gym, we have a childcare where they can safely keep their kids. This is one advantage we have over other competing gym businesses. This has led to a steady growth in membership especially among young parents.
SEE: Cost of Opening a Gym
At Fitness Addicts, we seek to offer quality gym services while also taking care of the needs of families. This we accomplish through our experienced and skilled staff comprising of fitness instructors and care givers.
The gym industry continues to witness a growth in the number of people wanting to keep fit. People are increasingly interested in living healthy lifestyles. This is good for the industry as there are increasing opportunities for growth. Also, gyms located close to residential areas have witnessed greater patronage than those which are not.
To increase their market share, gym business owners are free services for a set period for individuals and corporate clients. This is gradually followed by a fee introduction which is split into several plans that fit all fit all types of client schedule and budget.
Due to the rise in the number of people enrolling in gyms, we have identified three major groups as our target market. These include those interested in body building, people interested in shedding some waiting with the primary purpose of living healthier lifestyles, and lastly those in need of cardio sessions.
At fitness addicts, we seek to provide these services to cater to the needs of these groups of potential clients. These are spread across different professions and categories such as young couples, sportsmen/women, corporate executives and business people among other groups.
As mentioned earlier, our area of competitive advantage include being able to provide childcare services for young parents. This segment of our market is growing. People are increasingly needing our type of services to enable them keep fit without having to worry about where or who to keep their children with.
A lot of our competitors do not provide such services. This gives us the unique advantage of attracting people that fall within this category. Also, our team of skilled and experienced instructors and caregivers help us in blazing the trail in the provision of quality and reliable fitness services.
Marketing and Sales Strategy
Effective marketing is important for the growth of any gym business. We have realized this and taken deliberate steps towards expanding our market share. This has been done through constant improvement of our services and effective promotion of these improvements.
In the areas of sales, we have made our services affordable for everyone. We have also provided plans which people can easily subscribe to based on their budget and schedule. To further consolidate on these, we seek to increase awareness through the distribution of colorful handbills, positioning our banners at strategic locations, and the use of print and electronic media as well as our website to attract new clients.
Our pricing strategies are partly based on discounts as customer loyalty programs. Also, we have a referral system in place where clients gather points. These points can be redeemed through a reduction in subscription fees. Our customized and premium services are meant for clients who need such. These would be charged higher.
This part of our plan caters for the needs of all our clients. We have realized that our different clients have their preferred payment methods. To take care of these needs, we have included several payment options to choose from. Some of these include payment through check, bank, mobile money payments, Point of Sale (POS) payments, as well as online bank transfers.
Although these are the options currently available, we are open to including more payment options as long as our clients make the request.
Our budget covers the provision for all the tools necessary for our gym. Some of these include exercise machines, dumbbell, kettle bell, treadmills, hojo undo, pull-up bar, medicine balls, boxing gym gear, resistance bands, weight machines, elliptical trainer, street strider, flexion machines, weight plates, barbells, gym flooring, cable attachments, benches, gloves, hydration packs, filing cabinets, notice boards and employee uniforms.
We have conducted a research in the industry and based on findings have made a 3-year financial projection. The results have been impressive and show a steady growth in revenue within this period. This is summarized in the chart below;
- First Year $250,000
- Second Year $520,000
- Third Year $790,000
This opening a gym startup guide has listed the key areas required in a good plan. When writing one, you need to seek expert advice. This includes the services of an attorney. These experts keep you from making costly mistakes that may affect or harm your business. This plan should be used as a template only.