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Do you want to start Gym business plan?
Are you thinking of creating a business plan for a gym? It might be a great idea if you want to pursue it as a startup. Starting a gym doesn’t take a lot of experience or any qualifications. You can start the business at any scale and with limited space.
All you need are the best professionals to write a sample business plan. To have an idea of what a professional business plan looks like, you can study this business plan for ExerInc or a related business plan such as business plan template for gum studio.
Even though the business is relatively easier to start, you will still be needed to run it systemically. In this blog on how to start a gym business plan, we have provided all the details of the ExerInc business plan for you.
Executive Summary
2.1 The Business
ExerInc will be a gym startup managed by Harley Stevenson. The business will aim to provide health and fitness training and tips to people belonging to different classes around Portland. It will offer a wide range of services from providing workout areas for personal training to arranging group activities.
2.2 Management of Gym Company
Before you start a gym business plan, you should keep in mind that the plan should guide all the management aspects of the business. Therefore, in your gym business plan proposal, you should include details about all the available and desired resources. If you are short on investment and plan to bargain a loan then you should also go through this business plan for a bank loan.
In this gym business plan sample, we have provided several segments of ExerInc’s business plan. You can use this plan to write a gym business plan executive summary for your business.
If you want to know about the best spaces to launch your gym business, you can go through a list of vacant gymnasiums mentioned in this guide on opening a dance studio business plan in Portland.
2.3 Customers of Gym Company
We will have customers belonging to all work domains and social circles. However, our recurring customer groups are:
- Residential Communities
- Athletes
- Elderly People
- Differently Abled People
2.4 Business Target
Our target is to become a reliable guide and training hub for better health and fitness. We will help our customers meet their fitness goals most safely and sustainably.
The financial targets we want to meet for the first three years of our launch are demonstrated below:
Company Summary
3.1 Company Owner
Harley Stevenson will be the owner and manager of ExerInc. He completed his MBA two years ago, after which he worked in the management of a food chain. However, he had always been passionate about health and fitness and wanted to launch his startup in this niche.
3.2 Why the Gym company is being started
Harley noticed that people are now focusing more on maintaining better health. He also realized that there aren’t a lot of opportunities in Portland. Therefore, he decided to help the people of Portland achieve their health goals.
3.3 How the Gym company will be started
Step1: Plan Everything
The first step for starting a gym business plan is to understand that you need to plan everything. Every aspect of the company should be well-thought-out. To help you create an accurate business plan template for a gym, we are providing a sample for you to follow. You can use this gym business plan example to write up a perfect plan for your startup. So, whether you want to write a small gym business plan pdf or a fitness marketing plan, you can use this document for help.
Step2: Define the Brand
The next step in the process is to bring attention to your company so that your customers can start recognizing you. You can do this by highlighting your business values and goals. You should also use this opportunity to bring attention to your competitive advantages over your competitors in the market.
Step3: Establish Your Corporate Office
Harley decided to rent out two connected storerooms, one large and one small so that he could have both the gym and management office side by side. He then procured the necessary exercise equipment and personnel to start the gym.
Step4: Establish a Web Presence
Online presence is an essential aspect of every business’s success. Understanding the importance of online marketing, Harley decided to make his company’s profile on all social media platforms. He also decided to have a simple website developed where people can contact the gym for memberships and queries.
Step5: Promote and Market
The final step is to develop and follow a marketing plan to advertise your business.
| Start-up Expenses | |
| Legal | $131,500 |
| Consultants | $0 |
| Insurance | $23,000 |
| Rent | $36,600 |
| Research and Development | $10,000 |
| Expensed Equipment | $51,000 |
| Signs | $3,400 |
| TOTAL START-UP EXPENSES | $255,500 |
| Start-up Assets | $288,400 |
| Cash Required | $209,000 |
| Start-up Inventory | $39,000 |
| Other Current Assets | $210,000 |
| Long-term Assets | $289,000 |
| TOTAL ASSETS | $1,035,400 |
| Total Requirements | $1,290,900 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $255,500 |
| Start-up Assets to Fund | $1,035,400 |
| TOTAL FUNDING REQUIRED | $1,290,900 |
| Assets | |
| Non-cash Assets from Start-up | $1,362,800 |
| Cash Requirements from Start-up | $112,000 |
| Additional Cash Raised | $50,000 |
| Cash Balance on Starting Date | $35,000 |
| TOTAL ASSETS | $1,559,800 |
| Liabilities and Capital | |
| Liabilities | $18,000 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $58,000 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $76,000 |
| Capital | |
| Planned Investment | $1,290,900 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,290,900 |
| Loss at Start-up (Start-up Expenses) | $192,900 |
| TOTAL CAPITAL | $1,483,800 |
| TOTAL CAPITAL AND LIABILITIES | $1,559,800 |
| Total Funding | $1,290,900 |
Services
Note
Before writing a gym startup business plan, you need to know the services you want to provide. To know what services others are offering in the domain, you can visit gym business plans available online.
Sample business plan for opening a gym will be different than indoor sports complex business plan. Since Harley decided to also offer sports games in his startup, therefore this document can be used for guidance in both cases.
Here we have provided a gym business plan template to download so that you can understand how to include your services and related stats in your business plan.
The primary services offered by ExerInc will be:
Main Workout Area
We will provide the main workout area with different machines where customers can exercise. The machines and equipment in this workout area will include:
- Treadmill for running
- Stationary Bike
- Pull Up Bars
- Push Up Stands
- Weight Sets
- Weight Bench
- Elliptical
- Yoga mats
Personal Training
In our specialized personal training service, customers will be able to book guided workouts, customized to their goals and experience. Customers will be able to book an appointment with a trainer to draft a training session tailored to their needs.
Sports Facilities
We’ll also provide sports facilities where people can come to play tennis, badminton, squash, football, and basketball. This service will be for kids, adults, as well as professional players. Professional players can book court sessions. On the other hand, kids and other adults can also book sessions to learn a sport.
Group Exercise Classes
Our last service will be group classes and activities. People who prefer to exercise in a community can sign up for group classes such as yoga or guided workouts.
Marketing Analysis of Gym Company
When you are making a draft for opening a gym business plan, you will need to include details about your target market. To enter these details, you should first have in-depth knowledge yourself. You can gain this knowledge by doing a marketing analysis as a part of your document to start a gym business plan.
Business plan for investors
In marketing analysis, you should include information about the present and future trends of your target market. You can use a business plan gym template to understand what to include in your document. The document will analyze the market prices and your financial goals to find the optimized price for your services.
Marketing analysis is an integral part of all businesses. It impacts you financially as startup costs, investments vary with different market locations. From finding indoor trampoline park start-up cost in a certain location to devising a pricing strategy in your business plan for gym pdf, marketing analysis helps you a lot.
In this sample business plan for a gym, we are providing market analysis for ExerInc.
5.1 Market Trends
According to Statista, the global gym industry has a market share of around $97 Billion with 174 million members worldwide. And according to Policy Advice, the health and fitness industry is growing at a rate of 8.7% per year. This means a steadily increasing demand for gyms as people are becoming more and more conscious about their health.
5.2 Marketing Segmentation
The potential customers of ExerInc will be divided into the following groups:
5.2.1 Residential Community
Our primary customers will be the residents living in the surrounding areas. This category will include families as well as single people. They are expected to utilize most of our resources, including the main exercise area, group exercise, and game courts.
5.2.2 Athletes
Our second category for customers will be the athletes in the surrounding area who are expected to need our training facilities and courts.
5.2.3 Elderly People
This will be our third target group of customers. They are mostly expected to utilize our group and personal training services.
5.2.4 Differently Abled People
Lastly, ExerInc will also cater to differently-abled people. We will make special considerations for people who may need extra help. Our trainers are adept at dealing with all kinds of customers with patience.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Residential Community | 44% | 41,900 | 50,280 | 60,336 | 72,403 | 86,884 | 10.00% |
| Athletes | 24% | 21,800 | 26,160 | 31,392 | 37,670 | 45,204 | 10.00% |
| Eldery | 22% | 21,100 | 25,320 | 30,384 | 36,461 | 43,753 | 10.00% |
| Differently Abled | 10% | 11,300 | 13,560 | 16,272 | 19,526 | 23,432 | 11.00% |
| Total | 100% | 96,100 | 115,320 | 138,384 | 166,061 | 199,273 | 10% |
5.3 Business Target
- To become the most trusted and sought-out gym in the Portland area
- To expand our range of services and include more games and activities
- To earn a profit margin of at least $45k/month by the third year
- To achieve and maintain customer satisfaction with our services
- To scale up the business in different US states
5.4 Product Pricing
High Quality Business Plan and Professional Support
It was amazing to work with OGS Capital for our business plan. They promptly responded our enquires and delivered document on time.The document was well organized high quality and content.We succeded with Alex and his team support. We thank you guys again for professional approach and easy communication.
We will offer different packages for different services so that our customers can choose one that fits both their needs and budget. On average, our prices will be similar to our competitors, but we will provide more benefits than them.
Marketing Strategy
Starting up a gym business plan requires taking measures to make the business stand out amongst its competitors. For this purpose, you can add a marketing plan to the business plan for a gym company.
In this gym equipment business plan, we are listing the marketing strategies that ExerInc will use to put the company on the map. You can use this business plan as a guide for starting a yoga center business plan because many services will be related.
6.1 Competitive Analysis
- We have a wide range of services suited for different age levels, body types, and endurance abilities. So, each of our customers will find something suitable for them.
- We have an excellent trainer system. Our trainers will guide our clients in all the exercises to prevent injuries and achieve maximum output.
- Even our main workout area will always have two trainers to give general guidance for preventing injury.
- Our customers can contact us through our website or social media to get information about any service.
6.2 Sales Strategy
- We will advertise our business through posters, local TV ads, social media, and Google Ads.
- We will offer a 15% discount on the first 20 packages.
- We will offer access to extra services to our recurrent customers.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Main Workout | 550 | 583 | 618 |
| Personal Training | 850 | 901 | 955 |
| Sports Facilities | 730 | 774 | 820 |
| Group Exercise | 580 | 615 | 652 |
| TOTAL UNIT SALES | 2,710 | 2,873 | 3,045 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Main Workout | $600.00 | $696.00 | $807.36 |
| Personal Training | $540.00 | $626.40 | $726.62 |
| Sports Facilities | $400.00 | $464.00 | $538.24 |
| Group Exercise | $350.00 | $406.00 | $470.96 |
| Sales | |||
| Main Workout | $330,000.00 | $405,768.00 | $498,932.33 |
| Personal Training | $459,000.00 | $564,386.40 | $693,969.52 |
| Sports Facilities | $292,000.00 | $359,043.20 | $441,479.52 |
| Group Exercise | $203,000.00 | $249,608.80 | $306,918.98 |
| TOTAL SALES | $1,284,000.00 | $1,578,806.40 | $1,941,300.35 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Main Workout | $140.00 | $154.00 | $161.70 |
| Personal Training | $100.00 | $110.00 | $115.50 |
| Sports Facilities | $140.00 | $154.00 | $161.70 |
| Group Exercise | $150.00 | $165.00 | $173.25 |
| Direct Cost of Sales | |||
| Main Workout | $77,000.00 | $89,782.00 | $99,927.37 |
| Personal Training | $85,000.00 | $99,110.00 | $110,309.43 |
| Sports Facilities | $102,200.00 | $119,165.20 | $132,630.87 |
| Group Exercise | $87,000.00 | $101,442.00 | $112,904.95 |
| Subtotal Direct Cost of Sales | $351,200.00 | $409,499.20 | $455,772.61 |
Personnel plan
Writing a business plan for a gym means that you will need to plan out all services and processes for the company’s management. This means that you need to plan about employees as well. Harley understood this and added a list of the employees necessary to run the business. In this start up gym business plan, we are providing details of ExerInc employees.
7.1 Company Staff
- 1 Co-Manager to help in overall operations
- 3 Cleaners
- 6 Certified Trainers
- 1 Technician to upkeep the machinery
- 1 Web Developer to manage website
- 2 Sales Executives to organize and promote sales
- 1 Accountant
- 1 Receptionist
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Co Manager | $32,000 | $35,200 | $38,720 |
| Cleaners | $68,000 | $74,800 | $82,280 |
| Certified Trainers | $185,000 | $203,500 | $223,850 |
| Technician | $23,000 | $25,300 | $27,830 |
| Web Developer | $23,000 | $25,300 | $27,830 |
| Sales Executives | $43,000 | $47,300 | $52,030 |
| Accountant | $21,500 | $23,650 | $26,015 |
| Receptionist | $22,000 | $24,200 | $26,620 |
| Total Salaries | $417,500 | $459,250 | $505,175 |
Financial Plan
The profitability of a business isn’t just measured by sales. Many factors are involved in gym business plan financials. To stay profitable, you need to utilize your resources efficiently. For this, you can do a financial analysis. This financial analysis should be added to the business plan of a gym pdf.
In your financial plan, you need to figure out how much investment will be required for starting and running your business successfully. The analysis of both of these figures will show if your business will be profitable or not.
Below, we are describing the financial analysis of ExerInc for your guidance.
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.12% | 8.20% | 8.26% |
| Long-term Interest Rate | 8.40% | 8.44% | 8.47% |
| Tax Rate | 24.03% | 24.21% | 24.60% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
| Break-Even Analysis | |
| Monthly Units Break-even | 5340 |
| Monthly Revenue Break-even | $132,500 |
| Assumptions: | |
| Average Per-Unit Revenue | $231.00 |
| Average Per-Unit Variable Cost | $0.62 |
| Estimated Monthly Fixed Cost | $163,800 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $1,284,000 | $1,578,806 | $1,941,300 |
| Direct Cost of Sales | $351,200 | $409,499 | $455,773 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $351,200 | $409,499 | $455,773 |
| Gross Margin | $932,800 | $1,169,307 | $1,485,528 |
| Gross Margin % | 72.65% | 74.06% | 76.52% |
| Expenses | |||
| Payroll | $417,500 | $459,250 | $505,175 |
| Sales and Marketing and Other Expenses | $145,000 | $148,000 | $156,000 |
| Depreciation | $2,300 | $2,350 | $2,500 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,900 | $3,000 | $3,100 |
| Insurance | $2,100 | $2,100 | $2,100 |
| Rent | $2,900 | $3,000 | $3,200 |
| Payroll Taxes | $24,000 | $25,000 | $27,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $596,700 | $642,700 | $699,075 |
| Profit Before Interest and Taxes | $336,100 | $526,607 | $786,453 |
| EBITDA | $336,100 | $526,607 | $786,453 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $67,220 | $105,321 | $157,291 |
| Net Profit | $268,880 | $421,286 | $629,162 |
| Net Profit/Sales | 20.94% | 26.68% | 32.41% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $51,000 | $55,080 | $59,486 |
| Cash from Receivables | $22,000 | $23,760 | $25,661 |
| SUBTOTAL CASH FROM OPERATIONS | $73,000 | $79,570 | $85,936 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $74,000 | $79,000 | $85,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $42,000 | $42,000 | $45,000 |
| Bill Payments | $27,000 | $28,000 | $31,000 |
| SUBTOTAL SPENT ON OPERATIONS | $69,000 | $70,000 | $76,000 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $69,000 | $74,520 | $80,482 |
| Net Cash Flow | $21,000 | $23,000 | $25,000 |
| Cash Balance | $27,000 | $30,000 | $33,000 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $275,000 | $308,000 | $338,800 |
| Accounts Receivable | $24,000 | $26,880 | $30,213 |
| Inventory | $4,300 | $4,816 | $4,900 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $282,000 | $315,840 | $355,004 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $19,400 | $21,728 | $24,444 |
| TOTAL LONG-TERM ASSETS | $24,400 | $27,328 | $30,744 |
| TOTAL ASSETS | $294,000 | $329,280 | $370,440 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $18,700 | $20,944 | $23,541 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $19,000 | $21,280 | $23,919 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $15,000 | $16,800 | $18,883 |
| Paid-in Capital | $30,000 | $30,000 | $31,000 |
| Retained Earnings | $53,000 | $57,770 | $63,547 |
| Earnings | $193,400 | $210,806 | $231,887 |
| TOTAL CAPITAL | $285,000 | $310,650 | $341,715 |
| TOTAL LIABILITIES AND CAPITAL | $300,000 | $329,280 | $370,440 |
| Net Worth | $293,400 | $319,806 | $351,787 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.25% | 8.03% | 8.90% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.21% | 10.20% | 11.31% | 9.80% |
| Inventory | 5.39% | 5.97% | 6.62% | 9.90% |
| Other Current Assets | 2.11% | 2.34% | 2.59% | 2.40% |
| Total Current Assets | 149.80% | 151.00% | 152.00% | 158.00% |
| Long-term Assets | 11.55% | 11.60% | 11.64% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.90% | 4.94% | 4.98% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.59% | 7.65% | 7.72% | 7.38% |
| NET WORTH | 100.45% | 101.25% | 102.19% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.60% | 97.15% | 99.87% | 99.00% |
| Selling, General & Administrative Expenses | 93.56% | 96.09% | 98.78% | 97.80% |
| Advertising Expenses | 1.52% | 1.56% | 1.60% | 1.40% |
| Profit Before Interest and Taxes | 41.50% | 42.62% | 43.81% | 33.90% |
| Main Ratios | ||||
| Current | 34 | 35 | 36 | 32 |
| Quick | 33 | 33.8 | 34.645 | 33 |
| Total Debt to Total Assets | 0.18% | 0.18% | 0.17% | 0.40% |
| Pre-tax Return on Net Worth | 74.08% | 74.89% | 75.00% | 75.00% |
| Pre-tax Return on Assets | 96.30% | 101.12% | 106.17% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 33.56% | 34.60% | 35.67% | N.A. |
| Return on Equity | 55.80% | 57.53% | 59.31% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.8 | 7.8 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 32.4 | 34.02 | 35 | N.A. |
| Accounts Payable Turnover | 15.6 | 16 | 16.3 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.5 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.04 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $244,000 | $257,664 | $272,093 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.85 | 0.87 | 0.89 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 29 | 29.12 | 29.16 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.2 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
FAQs
1. How do I write a business gym plan?
Writing a gym business plan is simple if you have a guide. You can use the above example as a guide for writing the business plan for your startup.
2. How much money do I need to open a small gym?
The money for starting a gym can only be evaluated after making a gym ownership business plan. All the details of the business plan help analyze if the business is worth the effort or not.
3. Is starting your own gym profitable?
You can find out if starting a gym business is profitable by outlining a financial plan. For example, you can look at the gym business plan for sale above to get an idea about finances earned through a gym.
Download Gym Business Plan Template in pdf
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