Table of Content

    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.

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    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.

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    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:

    Fitness Center Business Plans - 3 Years Profit Forecast

    Franchise Business Plan
    Helps the franchisee get business case approval from the franchisor

    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.

    Fitness Center Business Plans - Startup Cost

    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

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    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:

    Fitness Center Business Plans - Marketing Segmentation

    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

    Fitness Center Business Plans - Sales Monthly

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    6.4 Sales Yearly

    Fitness Center Business Plans - Sales Yearly

    6.5 Sales Forecast

    Fitness Center Business Plans - Unit Sales

    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

    Fitness Center Business Plans - Break-even Analysis

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     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

    Fitness Center Business Plans - Profit Monthly

    8.3.2 Profit Yearly

    Fitness Center Business Plans - Profit Yearly

    8.3.3 Gross Margin Monthly

    Fitness Center Business Plans - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Fitness Center Business Plans - Gross Margin Yearly

    8.4 Projected Cash Flow

    Fitness Center Business Plans - Project 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.