Gym Business Plan Template

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. You can also take help from 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 need help. And there is nothing more that can guide you in how to start a gym business plan than a relevant sample. Here, we have provided all the details of the ExerInc business plan.

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 from different classes around Portland. It will offer a wide range of services, from workout areas to personal training and group activities.

2.2 Management of Gym Company

To start a gym business plan, you should understand that it will guide all the management aspects of the business. Therefore, in your gym business plan proposal, you should include details about all the resources you need and have. This proposal will also be your business plan for bank loan.

In this gym business plan sample, we provide all the information about ExerInc’s business plan. You can use this plan to write a gym business plan executive summary. You can also use it to write a business plan for your own business or opening a dance studio business plan.

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 Community
• Athletes
• Elderly People
• Differently Abled People

2.4 Business Target

Our target is to become a reliable source of guide and training 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:

Franchise Business Plan

Helps the franchisee get business case approval from the franchisor

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 have his startup. So, he decided to join his passions and open a company related to fitness which is how ExerInc came to be.

3.2 Why the Gym company is being started

Harley noticed that more people are now focusing on attaining and maintaining better health. However, there aren’t a lot of opportunities in Portland. He realized that he could utilize his experience and knowledge of fitness to start a company that can cater to people’s health goals.

3.3 How the Gym company will be started

Step1: Plan Everything

The first step to starting 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 a business plan template 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 advantage over your competition 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 will now procure 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 have a page for his company 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

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Services

Before writing a gym startup business plan, you need to know the services you want to provide to your clients. That way, you can plan everything accordingly in your gym business plans.

Sample business plan for opening a gym will be different than indoor sports complex business plan. However, since Harley decided to offer many services in his startup, you can use this document for guidance.

Here we have provided a gym business plan template download so that you can understand how to develop one for your business.

The primary services offered by ExerInc will be:

• Main Workout Area

We will provide the main workout area with different machines where customers can work out. 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

Customers will book guided workouts customized for their goals and according to their endurances in our specialized personal training service. Customers will be able to book an appointment with a trainer to see if they are compatible. And the trainer will design and guide them through their customized workout sessions.

• Sports Facilities

We’ll also provide sports facilities where people can come to play tennis, badminton, squash, football, and basketball. This will be available to 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 community while exercising can sign up for group classes such as yoga or guided workouts.

Marketing Analysis of Gym Company

When writing an opening gym business plan, you will also need to include details about your target market. And 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 start gym business plan.

In this marketing analysis, you should include information about your target market’s past, present, and future trends. 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.

You will need to do an analysis of this type in every business. Even indoor trampoline park start-up cost information comes from this document. For better information, refer to this business plan for gym pdf.

In this sample business plan for gym, we are providing market details 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:

Business Plan for Investors

5.2.1 Residential Community

Our primary customers will be the residents living in the surrounding areas. This 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 target customer will be the athletes in the surrounding area who are expected to need our personal training facilities as well as courts.

5.2.3 Elderly People

This will be our third target group of customers. They are mostly expected to need 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 $45k/month by our third year.
• To achieve and maintain customer satisfaction with our services as well as employees.
• To scale up the business in different US states

5.4 Product Pricing

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 and additions.

Marketing Strategy

Starting up a gym business plan involves all the measures that need to be taken to make the business stand out amongst its competitors. For this purpose, you can add a marketing plan to the business plan for gym company.

In this gym equipment business plan, we are detailing 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 15% discounts 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 best management. This means that you need to plan details of your employees as well. Harley understood this and added a list of the main employees necessary to run the business. In this start up gym business plan, we are providing details of ExerInc employees.

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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 gym pdf.

In your financial plan, you need to figure out how much investment will be required for your business and the price of your services. The analysis of both of these figures will show if your business will be profitable or go into a loss.

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%

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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 as long as 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 found through 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 through a business 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