Table of Content

    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.

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    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.

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    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:

    Gym- 3 Years Profit Forecast

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    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.

    Gym - Startup Cost

    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.

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    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:

    Gym - Marketing Segmentation

    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

    Gym - Sales Monthly

    6.4 Sales Yearly

    Gym - Sales Yearly

    6.5 Sales Forecast

    Gym - Unit Sales

    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

    Gym- 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

    Gym - Profit Monthly

    8.3.2 Profit Yearly

    Gym - Profit Yearly

    8.3.3 Gross Margin Monthly

    Gym - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Gym - Gross Margin Yearly

    8.4 Projected Cash Flow

    Gym - 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