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Do you want to start a Fitness Center business plan?
Fitness has gained 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.
The benefit of starting a business like this is that you can slowly increase its scope. And you don’t even need to have any specialized information for this. You can just get started by learning how to write a business plan for a fitness center.
If you are thinking of starting a business in this domain, you can take help from this business plan for a fitness center. This plan is written for Goals Inc.
The business plan 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 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.
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. In that way, you will remain 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.
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. The competitors of Goals Inc will include other gyms and fitness centers in the area.
To gain an insight into how they are conducting the business, you should read more than one business plan for fitness centers.
2.5 Business Target
The target of our fitness center is to help people develop a healthy mentality and practices regarding their health. We also aim to expand our business 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 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?
Looking into his competitors’ working models, Paul realized that more focus was laid on achieving monetary goals than on providing good customer service.
To change this trend, Paul decided to launch his fitness center and show the world that profits can still be earned while providing impeccable customer service.
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 and take down everything in your fitness center business plan including the info regarding your customers, market, competitors, and services. This will eventually help you develop a fitness studio business plan template that will persuade your investors.
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 comprises all the details that you will later use to register your business.
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. As per 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 even if it is written for pure physical services such as a business plan for an indoor sports complex. Therefore, Paul intends to establish social media profiles and a website for his business.
Step5: Market your Business
The final step in developing a business plan and starting your business is to develop a marketing plan. You need a marketing plan for every business to advertise the business to your customers. In this blog, we will give a detailed fitness and yoga marketing plan in the later sections.
| 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 a fitness center involves a lot of research and collection of information. As you develop a small fitness center business plan, you will need to hone all the details about the services you want to provide as well.
If you are looking for an accurate 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 that can be beneficial to you.
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 related to the gym. 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. These classes will aim to keep people safe from injuries and mentally well.
- Guided Meditations
We will also be providing guided meditation sessions 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. In this way, you can add details about your market in your fitness business proposal.
If you don’t know how to develop a fitness center business proposal you can take help from this document here. For a greater analysis, you should read some other fitness center business plans before delineating one for your startup.
5.1 Market Trends
According to PolicyAdvice, the global fitness industry has a market of $87 Billion. And the U.S. 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 exercise. We will target such customers to help them attain a balanced life with reduced 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 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 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 $25k/month by the end of the second year.
5.4 Product Pricing
Our prices will be outlined 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 highlight several advantages of your business relative to your 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 strategies for marketing this type of startup in this business plan for fitness. You can take an idea from this fitness center business plan pdf to develop good marketing strategies for your business.
6.1 Competitive Analysis
- We will offer services that prefer 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 will be able to 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.
- We will offer discounts 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 is to figure out the employees that you will need to run the business. To help you in making a list for your company, we are presenting one in this fitness center business plan sample.
7.1 Company Staff
According to the 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 Person
- 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 a fitness studio requires financial planning on your part as well. You have to balance the start up cost for a fitness center with 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 revenue earned from 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.
In this business plan template for fitness center, we will be providing details about the financial viability of 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. |
FAQs
- 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.
- 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.
- 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. But you can calculate the estimates through financial analysis.
- 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.
Download Sample Business Plan for a Fitness Center in pdf
OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.
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