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Building Business Muscle with a Crossfit Gym Startup

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The resilient fitness industry seems to have no growth limits. Generating over $26 billion in annual revenues and employing well over half a billion people in 2013, the industry is expected to continue experiencing annual growth well into the future. Gyms, health clubs, and fitness centers are helping people lose weight and get physically fit and all while they are paying a lot of money in the form of membership dues. There is a large variety of exercise styles in the market, and Crossfit has proven to be one of the most popular. The Crossfit gym offers a vigorous fitness regimen that involves a series of high-intensity, constantly varying functional exercises that draw upon numerous types of sports and fitness styles. It is for people of all ages and weights who are serious about improving their physical conditioning, cardiovascular health, and physical strength, endurance, coordination, and speed.

Starting a Crossfit gym can be personally and financially rewarding with proper business planning.

The better the advance planning for facilities, staffing, pricing, and competitiveness, the more likely the business will succeed.
• Analyze the local fitness center competition, analyzing the types of programs offered and their pricing structures
• Identify the typical demographics of the targeted clientele, including ages, gender (percent male versus percent female), physical conditioning, employment status, income status, average drive time to gym, etc.
• Choose a location that is convenient to the targeted market while being centrally located (most people choose gyms that are close to work or home)
• Develop exercise programming formats which influences the ability to attract memberships, as well as determining space and equipment needs
• Identify space arrangements and necessary remodeling to accommodate people and equipment, i.e. wall-mounted heavy punching bags, kickboxing area, cardio classes, etc.
• Create a membership pricing scheme for programs that may include introductory prices for new clients, special rates during opening or holidays, and prices for special events
• Write a marketing plan for attracting client prospects and a sales plan converting prospects to paid memberships
• Develop a financial plan for success, indicating capital requirements for startup and working capital to cover expenses until the business becomes profitable

Many Crossfit gym owners start in a location that has room for expansion when membership reaches a certain level and more room is needed. Space can be purchased or rented, but in either case it will likely need facility improvements like air conditioning, bathrooms and showers for men and women, specialized flooring materials, front desk area, and so on. The business plan for a Crossfit gym will also include an in-depth explanation of the gym owner’s qualifications and experience in the fitness industry, and the personnel plan for staffing the fitness center.

Anyone ready to start a Crossfit gym and build some business muscle should first complete the OGS Capital ( contact form, which only takes a couple of minutes. OGS Capital consultants can help with business plan development, finding financial support, and developing an attractive and unique document.
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