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Do you want to start a Fitness Center business plan?
Fitness has become of paramount importance in the last decade or so. More and more people have started focusing on both their mental and physical health. Some people have even started centers for people to come together and attain common goals. These are fitness centers, meditation and yoga retreats, and much more.
You might be thinking of starting a business in this domain. If that is true, you can take help from this business plan for a fitness center that we are presenting for Goals Inc. The benefit of starting a business like this is that you can slowly but surely increase its scope. And you don’t even need to know any specialized information for this. You can just get started by learning how to write a business plan for a fitness center.
The business plan for a fitness center that we are presenting below is for starting a business in the fitness domain. But you can also use it to develop a business plan for buying a franchise as business plans help you understand the necessary characteristics of every successful business.
Executive Summary
2.1 About the Business
The fitness business started by Paul Anne will be called Goals Inc. The main aim of the business plan for a fitness center will be to establish itself as a pioneer in sustainable healthy practices that improve day to day life of people. Another secondary aim of the business will be to introduce its branches across the US for a better and wider reach to its customers.
2.2 Management of Fitness Center
To ensure that your business is well managed and moving towards success, you need to do due diligence on your part. The best way to ensure good management is to make a plan and stick to it. Make a plan for everything in your business, even a fitness equipment business plan. That way you will be informed of all the important scenarios and how to handle them adequately.
To help you out, we are providing all the details of a fitness center in this fitness center business plan template free. So you can utilize this document to make your very own plan.
2.3 Customers of Cleaning Services Company
Though Goals Inc will welcome people from all backgrounds, the focus groups of customers will include:
- Parents
- Students/Young Adults
- Working People
- Differently-abled people
2.4 Our Competitors
Knowing your competitors is as important as knowing your customers. You should do all the research as part of your business plan for fitness centers so that you are prepared. The competitors of Goals Inc will include other gyms and fitness centers in the area.
2.5 Business Target
The target of our fitness center is to help people develop a healthy mentality and practices regarding their health and to expand our business plan for a fitness center across different states of the US.
The financial targets that Goals Inc wants to achieve in the next three years are demonstrated below in this sample business plan for fitness center:
Company Summary
3.1 Company Owner
Paul Anne will be the owner and operator of Goals Inc. Paul has been an avid supporter of healthy lifestyles for all his life. Therefore, after completing his MBA, he decided to join his passion and degree to start Goals Inc.
3.2 Why is Goals Inc Being Started?
Paul knew that a lot of focus when considering physical health is to achieve goals at any cost and that can cause people to develop an unhealthy mentality. To change this trend, Paul decided to go against the current and start a fitness center that focuses on sustainability rather than quick change.
3.3 How the Fitness Center will be started
Step1: Research Everything
The key to developing a sample business plan for a fitness center is thorough research. You need to research about everything in your fitness center business plan including your customers, market, competitors, and services. This helps you develop a fitness studio business plan template that will persuade your investors to give you the money to get started.
Step2: Choose a Name and Register Your Business
Once you know the kind of business you want to start, you need to decide on a name. Opening a fitness center business plan involves all the details that you will later use to register your business plan for a fitness center.
Step3: Pick a Business Location
You can start a business anywhere, but each location has its pros and cons. It is up to you to select the most beneficial location. In this fitness center business plan example, Paul decided to open his fitness center in Phoenix, Arizona.
Step4: Establish a Web Presence
Online presence is necessary for every business nowadays. It is a part of every good business plan including a business plan for indoor sports complex. Therefore, Paul intends to establish social media profiles for his business as well as a website.
Step5: Market your Business
The final step in developing a business plan for a fitness center and starting your business is to develop a marketing plan for your business. You need a marketing plan for every business even a yoga marketing plan to help advertise the business to your customers.
| Start-up Expenses | |
| Legal | $130,900 |
| Consultants | $0 |
| Insurance | $22,200 |
| Rent | $36,900 |
| Research and Development | $10,000 |
| Expensed Equipment | $52,200 |
| Signs | $3,400 |
| TOTAL START-UP EXPENSES | $255,600 |
| Start-up Assets | $222,400 |
| Cash Required | $209,000 |
| Start-up Inventory | $39,000 |
| Other Current Assets | $292,000 |
| Long-term Assets | $287,000 |
| TOTAL ASSETS | $1,049,400 |
| Total Requirements | $1,305,000 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $255,600 |
| Start-up Assets to Fund | $1,049,400 |
| TOTAL FUNDING REQUIRED | $1,305,000 |
| Assets | |
| Non-cash Assets from Start-up | $1,310,800 |
| Cash Requirements from Start-up | $122,000 |
| Additional Cash Raised | $59,000 |
| Cash Balance on Starting Date | $35,000 |
| TOTAL ASSETS | $1,526,800 |
| Liabilities and Capital | |
| Liabilities | $18,200 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $58,000 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $76,200 |
| Capital | |
| Planned Investment | $1,305,000 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,305,000 |
| Loss at Start-up (Start-up Expenses) | $145,600 |
| TOTAL CAPITAL | $1,450,600 |
| TOTAL CAPITAL AND LIABILITIES | $1,526,800 |
| Total Funding | $1,305,000 |
Services
Writing a business plan for fitness center involves a lot of research and collection of information. To develop a small fitness center business plan, you will need to hone all the details regarding your business plan for a fitness center. And one of those details happens to be the services your company will be offering to its customers.
If you are also thinking of starting a fitness center business plan, you can take a look at this document. In this business plan template fitness center, we will guide you about all the details you will need to add to your business plan for a fitness center.
As Paul decided to offer a variety of services when starting a fitness center business, you can take help from here and mold it according to your own needs. The services offered by Goals Inc will include:
- Gym Facilities
The main service that will be included in this business center fitness plan sample will be gym services offered by Goals Inc. Goals Inc will provide all the necessary equipment needed for exercise and workouts. This will include:
- Treadmills
- Exercise Bikes
- Ellipticals
- Weight Sets
- Crunch Benches, and more
- Yoga Classes
Keeping in view our focus on mental health and wellness, we will offer guided yoga classes to our customers. This service can be utilized by people of different ages and expertise levels as there will be a variety of options available. These classes will aim to keep people safe from injuries and mentally well.
- Guided Meditations
We will also be providing guided meditation sessions and retreats so that along with their physical health, our customers also have a chance of taking care of their minds.
- Cycling and Outdoor Activities
Goals Inc will also provide several options for outdoor activities for people who don’t like working out indoors. We will offer activities like group biking, trainer-led exercise sessions and running, etc.
Marketing Analysis of Fitness Center
Another important part of business plan of fitness center is the market information. If you look at different fitness club business plan examples, you will see that they all include details about their target market groups and competitors. Including this information in plans like small gym business plan helps the owners understand the strong and weak points of their company.
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If you want to develop a fitness studio business plan, you will need to do a thorough analysis of your target market. This way you can add details about your market in fitness business proposal.
If you don’t know how to develop a business plan for a fitness center proposal by looking at fitness center business plans, you can take help from this document here. We will take you through the parts step by step so that you can keep up.
5.1 Market Trends
According to PolicyAdvice, the global fitness industry has a market of $87 Billion. And the US is one of the countries with the highest number of fitness clubs. However, there is still a huge demand for fitness centers that can provide unique and flexible options to their customers.
5.2 Marketing Segmentation
Goals Inc will have customers from the following groups:
Business Plan for Investors
5.2.1 Parents
Our primary focus will be on the families living in the residential areas around us. The adults in these households usually need flexible options to fit in exercise and health activities in between. We will target such customers to help them figure out a balance and reduce stress.
5.2.2 Students/Young Adults
The secondary focus of our fitness center business model will be on the students and working young adults in the area who need a way to de-stress after a hard day.
5.2.3 Working People
We will also offer specialized programs and activities that can fit the lifestyle of working people.
5.2.4 Differently Abled People
Lastly, we will offer services and activities for differently-abled people who perhaps cannot utilize the usual exercise plans. Our trainers will help them at every step of the way to ensure that they meet their fitness goals.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Parents | 28% | 39,900 | 47,880 | 57,456 | 68,947 | 82,737 | 10.00% |
| Students/ Young Adults | 27% | 35,800 | 42,960 | 51,552 | 61,862 | 74,235 | 10.00% |
| Working People | 22% | 32,700 | 39,240 | 47,088 | 56,506 | 67,807 | 10.00% |
| Differently Abled People | 23% | 32,300 | 38,760 | 46,512 | 55,814 | 66,977 | 11.00% |
| Total | 100% | 140,700 | 168,840 | 202,608 | 243,130 | 291,756 | 10% |
5.3 Business Target
- To develop a fitness industry business plan that will revolutionize the way people think about health and wellness.
- To become a reliable source of fitness help to the community
- To earn profits up to $20k/month by the end of the second year
5.4 Product Pricing
Our prices will be balanced differently as compared to other sample business plans for fitness centers. We will offer different plans for different groups of our customers so that they have a good and affordable fitness option available to them.
Marketing Strategy
Whether you are developing a bouldering gym business plan or a free fitness center business plan, you will need to find and highlight several advantages of your business relative to the competitors in the market.
You can follow this fitness center business plan template where we will highlight the competitive advantages of Goals Inc. We will also describe the plans for marketing this business plan for fitness because you cannot attract customers without good marketing. You can take an idea from this fitness center business plan pdf to develop good marketing strategies for your business plan for a fitness center.
6.1 Competitive Analysis
- We will offer services that put people over money. We will provide customized options for our clients so that they can achieve the right balance of work and relaxation in their life.
- We will offer activities that don’t only make our customers well physically but also mentally/
- Our customers can choose from a variety of options and plans available.
6.2 Sales Strategy
- We will offer free trial classes whenever our customers are not sure about the kind of activities that will be best for them. That way they can make the right decision.
- We will offer discounts and free retreats to our long-term customers.
- We will offer free weekly guided meditation sessions that our customers can attend to unwind after a busy week.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Gym Facilities | 8,500 | 9,010 | 9,551 |
| Yoga Classes | 4,300 | 4,558 | 4,831 |
| Guided Meditations | 1,500 | 1,590 | 1,685 |
| Cycling & Outdoor Activities | 1,200 | 1,272 | 1,348 |
| TOTAL UNIT SALES | 15,500 | 16,430 | 17,416 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Gym Facilities | $75.00 | $87.00 | $100.92 |
| Yoga Classes | $70.00 | $81.20 | $94.19 |
| Guided Meditations | $150.00 | $174.00 | $201.84 |
| Cycling & Outdoor Activities | $200.00 | $232.00 | $269.12 |
| Sales | |||
| Gym Facilities | $637,500.00 | $783,870.00 | $963,846.55 |
| Yoga Classes | $301,000.00 | $370,109.60 | $455,086.76 |
| Guided Meditations | $225,000.00 | $276,660.00 | $340,181.14 |
| Cycling & Outdoor Activities | $240,000.00 | $295,104.00 | $362,859.88 |
| TOTAL SALES | $1,403,500.00 | $1,725,743.60 | $2,121,974.33 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Gym Facilities | $20.00 | $22.00 | $23.10 |
| Yoga Classes | $15.00 | $16.50 | $17.33 |
| Guided Meditations | $50.00 | $55.00 | $57.75 |
| Cycling & Outdoor Activities | $40.00 | $44.00 | $46.20 |
| Direct Cost of Sales | |||
| Gym Facilities | $170,000.00 | $198,220.00 | $220,618.86 |
| Yoga Classes | $64,500.00 | $75,207.00 | $83,705.39 |
| Guided Meditations | $75,000.00 | $87,450.00 | $97,331.85 |
| Cycling & Outdoor Activities | $48,000.00 | $55,968.00 | $62,292.38 |
| Subtotal Direct Cost of Sales | $357,500.00 | $416,845.00 | $463,948.49 |
Personnel plan
Starting your own fitness center can seem daunting but if you plan everything, you will be equipped to deal with a lot of situations. One of the things you can plan for the smooth running of your business plan for a fitness center is to figure out the employees that you will need to run the business. Just like the list of required employees we are presenting in this fitness center business plan sample, you can make a list for your company.
7.1 Company Staff
According to our business plan for fitness center pdf, Goals Inc will need the following employees:
- 6 Certified Trainers
- 3 Cleaners
- 1 Technician to Upkeep Machinery
- 1 Receptionist
- 2 Customer Support People
- 1 Manager
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Manager | $35,000 | $38,500 | $42,350 |
| Certified Trainers | $175,000 | $192,500 | $211,750 |
| Cleaners | $22,500 | $24,750 | $27,225 |
| Technician | $22,500 | $24,750 | $27,225 |
| Receptionist | $22,500 | $24,750 | $27,225 |
| Customer Support | $42,500 | $46,750 | $51,425 |
| Total Salaries | $320,000 | $352,000 | $387,200 |
Financial Plan
A business plan for fitness studio requires financial planning on your part as well. You have to balance the start up cost for a fitness center will the revenue that will be earned. Every business needs to balance these costs. For example, the cost to open a trampoline park business will be balanced by the cost of its services.
You can study different financial plans like a financial plan in the martial arts school business plan to have an understanding of the financial information you will need before you start a business plan for a fitness center.
In this business plan template for fitness center, we will be providing details about the financial viability of starting Goals Inc.
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 | $1,403,500 | $1,725,744 | $2,121,974 |
| Direct Cost of Sales | $357,500 | $416,845 | $463,948 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $357,500 | $416,845 | $463,948 |
| Gross Margin | $1,046,000 | $1,308,899 | $1,658,026 |
| Gross Margin % | 74.53% | 75.85% | 78.14% |
| Expenses | |||
| Payroll | $320,000 | $352,000 | $387,200 |
| 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 | $499,200 | $535,450 | $581,100 |
| Profit Before Interest and Taxes | $546,800 | $773,449 | $1,076,926 |
| EBITDA | $546,800 | $773,449 | $1,076,926 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $109,360 | $154,690 | $215,385 |
| Net Profit | $437,440 | $618,759 | $861,541 |
| Net Profit/Sales | 31.17% | 35.85% | 40.60% |
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. |
Download Sample Business Plan for a Fitness Center in pdf
FAQ
1. How do I write a business plan for a fitness center?
You can write a business plan for a fitness center by following this business plan fitness center pdf.
2. Is a fitness center a good business?
Opening a fitness studio can be a great idea if you follow all the steps to make it successful.
3. How much does it cost to open a fitness studio?
Opening a fitness center cost varies according to the location and scale of the business plan for a fitness center. But you can calculate the estimates through financial analysis.
4. How to open a boutique fitness studio?
You can open a boutique fitness studio by developing a business plan fitness center and then sticking to it.
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