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JUN.11, 2021

Personal Training Business Plan Example

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    Personal trainer business plan for starting your own business

    Starting your own business is the only shot you have at financial freedom. If you want a good lifestyle, no job can make that possible for you. Investment is one of the biggest hurdles in starting your own business and that’s why we have brought this business plan for a personal trainer that can be started with relatively low starting capital.

    If you are interested in knowing how to open a personal training business, the most important thing that you need to make is a strategic business plan for your personal trainers business plan. This is the thing that will make your business a success. Most of the things that we will discuss here are also true for a yoga studio business plan. Let’s see what it takes to start and establish a personal trainer business.

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     Personal Trainers Business Plan Summary

    2.1 The Business

    Bruce Personal Fitness will be a licensed and bonded personal trainer provider company based in Chicago, Ohio. Bruce Jackson is starting a personal training business plan because he is an experienced personal trainer looking to start a business rather than doing a job.

    2.2 Management of Personal Training

    One of the most important things to consider when you want to make a personal trainers business plan for bank to get a loan for the business is to have a management plan for the venture. This is important because if you go to any bank to get the financing, the first thing they’ll ask you is how to set up a personal training business and having a proper reply for that is what you need to successfully secure the loan.

    Note

    Bruce will manage the business himself but will hire a manager to look after the daily things while he himself focuses on other important things of the business, like finding clients and providing the right fitness and personal trainer to the right client.

    2.3 Customers of Personal Training

    The next thing you need to know if you want to learn how to start a personal training business is the customers that you will be providing the services to. Unlike a dance studio business plan where all the customers are of the same category, the personal trainer business will have a diverse range of customers.

    The customers of our will be:

    • People looking to get in shape.
    • People recovering from physical trauma.
    • Schools that need a personal trainer for their students.
    • Organizations looking for personal trainers for their employees.

    2.4 Business Target

    Our targets are:

    • To maintain a customer satisfaction rate of more than 95%.
    • To provide personal trainer services of the highest quality to all people.
    • To make permanent clients from the education and corporate sector.
    • To become the leading personal trainer provider in the US.

    Personal Training Business Plan Example - 3 Years Profit Forecast

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     Company Summary

    3.1 Company Owner

    Bruce Jackson will be the owner and CEO of the company. He has decided to start this business after going through a lot of personal trainers’ business plan examples. He has a lot of experience and contacts in the field owing to his many years of work in this industry.

    3.2 Why the Personal Trainer Business is being started?

    Brusce is starting a personal training business because he has seen the need for one in the area. There is a serious demand of personal trainers in Chicago and there’s hardly any good service provider in the area. This, coupled with the fact that Bruce is a very experienced man of the field, makes it the right choice to start this business.

    3.3 How the Personal Trainer Business will be started?

    Step1: Making a Detailed Personal Training Studio Business Plan

    The first and the most important part of any sample business plan for personal trainer is planning. This is the phase where the strategy for the business will be made and a strategy for realizing the goals and targets of the business will be decided. Bruce will hire a professional personal trainers business plan to make the plan that will guide the business to success.

    Step2: Branding

    The people who look for a personal trainer are mostly the ones who are brand conscious and want to get all their services and products from established brands. Substantial time and effort and a sizable budget will be invested in making a brand for the business.

    Step3: Establish and Office and a Website

    After the plan for the business is complete and the brand has been made, the next step will be to actually establish the business. For this, we will outfit an office to serve as the headquarter and will launch a website so that people can reach out to the business online.

    Step4: Marketing

    Promotion and marketing are also very important in establishing any business and all methods will be used to make out brand and business known to anyone who can be a customer in the future. We need enough marketing power to make sure that whenever someone mentions a personal trainer, Bruce Personal Fitness is the thing that comes to mind.

    Personal Training Business Plan Example - Startup Cost

    Start-up Expenses
    Legal $243,000
    Consultants $0
    Insurance $30,000
    Rent $31,000
    Research and Development $28,000
    Expensed Equipment $51,000
    Signs $4,000
    TOTAL START-UP EXPENSES $387,000
    Start-up Assets $320,000
    Cash Required $360,000
    Start-up Inventory $55,000
    Other Current Assets $230,000
    Long-term Assets $243,000
    TOTAL ASSETS $1,208,000
    Total Requirements $1,595,000
    START-UP FUNDING
    Start-up Expenses to Fund $387,000
    Start-up Assets to Fund $1,208,000
    TOTAL FUNDING REQUIRED $1,595,000
    Assets
    Non-cash Assets from Start-up $1,583,000
    Cash Requirements from Start-up $377,000
    Additional Cash Raised $60,000
    Cash Balance on Starting Date $36,000
    TOTAL ASSETS $2,056,000
    Liabilities and Capital
    Liabilities $30,000
    Current Borrowing $0
    Long-term Liabilities $0
    Accounts Payable (Outstanding Bills) $50,000
    Other Current Liabilities (interest-free) $0
    TOTAL LIABILITIES $80,000
    Capital
    Planned Investment $1,595,000
    Investor 1 $0
    Investor 2 $0
    Other $0
    Additional Investment Requirement $0
    TOTAL PLANNED INVESTMENT $1,595,000
    Loss at Start-up (Start-up Expenses) $381,000
    TOTAL CAPITAL $1,976,000
    TOTAL CAPITAL AND LIABILITIES $2,056,000
    Total Funding $1,595,000
    Any questions? Get in Touch!

    Services of Personal Trainer Business

    No personal trainer business plan template can be complete without discussing the services that the business will be providing. It is cardinally important to have a clear detail of the services to be provided in order to make a personal trainer studio business plan to be a successful one.

    Another thing to note is that the personal trainer field is a very complicated and diverse one and we need to target the correct services, the ones that can bring us the most business.

    Here are the main services that Bruce Personal Fitness will be providing.

    • Body Transformations Training

    This will be the main service provided by Bruce Personal Fitness because this is the main purpose for which people want a personal trainer.

    • Physical Stamina Improvement Training

    Doing too much exercise is not always the best way to increase stamina. We will provide personal trainers that can help people increase their body’s stamina and performance by smart work rather than hard work.

    • Psychological Stamina Improvement Training

    Another service that we will be providing will be that of psychological stamina improvement. This will be for the people who lack willpower and emotional stability, and their lives suffer because of this.

    • Motivational Lectures

    The job of personal trainers goes beyond physical or psychological realms. Sometimes, the client needs something more than that and that’s where having a motivational speaker comes in. We’ll provide these services for individuals as well as institutions.

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    The next thing that you must do in order to know how to write a personal trainer business plan is how to do the marketing analysis for the business. This is the part where you factor in all the market variables from the investment to market forces and from competitor research to market trends to help make the business successful. This step is every bit as important here as it is in a climbing gym business plan.

    5.1 Market Trends

    You need to have knowledge of the market trends before starting a personal training business if you do not want it to flop. Observation and market insight tells us the trend of hiring personal trainers is on the rise and more and more people want these services. This means that if we are opening a personal training business right now, it will be a success by all means.

    5.2 Marketing Segmentation

    Marketing segmentation is the next important thing in this business plan template for personal trainer. We need to know what the market we are going to serve is made up of so that we can direct the right resources the right way.

    Personal Training Business Plan Example - Marketing Segmentation

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    5.2.1 Individual Fitness Clients

    These will be the people who want to get into shape but lack the motivation for it. Personal trainers will be provided to them to help them achieve their body shape and weight goals.

    5.2.2 Individual Medical Clients

    The people who are recovering from a physical trauma and need assistance will also be out customers. We will provide all types of services for them.

    5.2.3 Schools & Organizations

    Schools and corporate organizations that need a personal trainer for their students/employees will also be a pretty large market segment for us.

    Market Analysis
    Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
    Individual Fitness Clients 52% 54,000 55,000 56,000 57,000 58,000 10.00%
    Individual Medical Clients 28% 31,000 32,000 33,000 34,000 36,000 10.00%
    Schools & Organizations 20% 18,000 20,000 22,000 24,000 26,000 11.00%
    Total 100% 103,000 107,000 111,000 115,000 120,000 10%

    5.3 Business Target

    Our business targets are:

    • To get as many permanent customers as we can.
    • To make Bruce Personal Fitness a well-known and reputable brand in the market.
    • To provide impeccable services to our customers.

    5.4 Product Pricing

    We will price our services slightly above the market average. This is a good strategy because the competition is not up to the mark with what we are going to make and we can attract customers even if we charge more than them.

    Any questions? Get in Touch

     Marketing Strategy of Business Consulting Business

    A mistake that most personal trainer business startups make is that of adopting a marketing approach that is mean for a fitness center business plan. You need to know that the marketing ideas for personal trainers and personal training marketing strategies are entirely different.

    6.1 Competitive Analysis

    Bruce Personal Fitness is expected to have ethe following competitive advantages over the competition:

    1. There is not good quality personal trainer services provider in the area and there is a very good opportunity on that front.
    2. The companies providing these services in the area are not Chicago-based which makes it expensive for them to operate and they end up charging way more than what their services are worth.
    3. We have a team of extremely experienced and skilled personal trainers.

    6.2 Sales Strategy

    • We’ll take some famous athletes onboard to endorse our services.
    • We’ll promote and market our services through all possible advertisement channels.
    • We’ll offer discounts to people in the first 3 months.

    6.3 Sales Monthly

    Personal Training Business Plan Example - Sales Monthly

    6.4 Sales Yearly

    Personal Training Business Plan Example - Profit Yearly y

    6.5 Sales Forecast

    Personal Training Business Plan Example - Unit Sales

    Sales Forecast
    Unit Sales Year 1 Year 2 Year 3
    Body Transformations Training 50,000 53,000 56,180
    Physical Stamina Improvement Training 60,000 63,600 67,416
    Psychological Stamina Improvement Training 56,000 59,360 62,922
    Motivational Lectures 49,000 51,940 55,056
    TOTAL UNIT SALES 215,000 227,900 241,574
    Unit Prices Year 1 Year 2 Year 3
    Body Transformations Training $50.00 $58.00 $67.28
    Physical Stamina Improvement Training $46.00 $53.36 $61.90
    Psychological Stamina Improvement Training $43.00 $49.88 $57.86
    Motivational Lectures $38.00 $44.08 $51.13
    Sales
    Body Transformations Training $2,500,000.00 $3,074,000.00 $3,779,790.40
    Physical Stamina Improvement Training $2,760,000.00 $3,393,696.00 $4,172,888.60
    Psychological Stamina Improvement Training $2,408,000.00 $2,960,876.80 $3,640,694.11
    Motivational Lectures $1,862,000.00 $2,289,515.20 $2,815,187.89
    TOTAL SALES $9,530,000.00 $11,718,088.00 $14,408,561.00
    Direct Unit Costs Year 1 Year 2 Year 3
    Body Transformations Training $48.00 $56.00 $64.00
    Physical Stamina Improvement Training $44.00 $51.00 $59.00
    Psychological Stamina Improvement Training $41.00 $47.00 $54.00
    Motivational Lectures $37.00 $42.00 $49.00
    Direct Cost of Sales
    Body Transformations Training $2,400,000.00 $2,968,000.00 $3,595,520.00
    Physical Stamina Improvement Training $2,640,000.00 $3,243,600.00 $3,977,544.00
    Psychological Stamina Improvement Training $2,296,000.00 $2,789,920.00 $3,397,766.40
    Motivational Lectures $1,813,000.00 $2,181,480.00 $2,697,763.60
    Subtotal Direct Cost of Sales $9,149,000.00 $11,183,000.00 $13,668,594.00

    Personnel plan

    Just like a martial arts business plan, this business needs a lot of skilled people to run. As the services are to be provided by trainers, the bulk of our workers need to be experienced personal trainers business plan. When you write a business plan personal training, you need to make a complete personnel plan.

    7.1 Company Staff

    Bruce will be the CEO of the company. He will hire the following people to effectively run the company.

    • 1 Manager to look after the operations of the business.
    • 5 Personal fitness trainers.
    • 3 Medical recovery trainers.
    • 1 Accountant.
    • 1 Receptionist.

    7.2 Average Salary of Employees

    Personnel Plan
    Year 1 Year 2 Year 3
    Operations Manager $14,000 $15,400 $16,940
    Personal Fitness Trainers $55,000 $60,500 $66,550
    Medical Recovery Trainers $30,000 $33,000 $36,300
    Accountant $9,000 $9,900 $10,890
    Receptionist $8,000 $8,800 $9,680
    Total Salaries $116,000 $127,600 $140,360

    Financial Plan

    Even though unlike a trampoline park business plan, this business does not need substantial investment, we still need to figure out the costs involved in establishing and running this business.

    Here’s a simplified financial plan for personal trainers business plan. Let’s see what are the expenses for which you need to have money before you can start the business.

    • Cost of getting the business licensed.
    • Cost of establishing the office.
    • Cost of making a website.
    • Brand logo designing costs.
    • Salaries of the employees.
    • Marketing and advertisement cost.
    Any questions? Get in Touch

    8.1 Important Assumptions

    General Assumptions
    Year 1 Year 2 Year 3
    Plan Month 1 2 3
    Current Interest Rate 8.07% 8.11% 8.27%
    Long-term Interest Rate 8.30% 8.40% 8.49%
    Tax Rate 23.85% 24.60% 25.80%
    Other 0 0 0

    8.2 Break-even Analysis

    Personal Training Business Plan Example - Break-even Analysis

    Break-Even Analysis
    Monthly Units Break-even 5345
    Monthly Revenue Break-even $132,400
    Assumptions:
    Average Per-Unit Revenue $235.00
    Average Per-Unit Variable Cost $0.65
    Estimated Monthly Fixed Cost $162,100

    8.3 Projected Profit and Loss

    Pro Forma Profit And Loss
    Year 1 Year 2 Year 3
    Sales $9,530,000 $11,718,088 $14,408,561
    Direct Cost of Sales $9,149,000 $11,183,000 $13,668,594
    Other $0 $0 $0
    TOTAL COST OF SALES $9,149,000 $11,183,000 $13,668,594
    Gross Margin $381,000 $535,088 $739,967
    Gross Margin % 4.00% 4.57% 5.14%
    Expenses
    Payroll $116,000 $127,600 $140,360
    Sales and Marketing and Other Expenses $127,000 $130,000 $131,000
    Depreciation $2,400 $2,300 $2,200
    Leased Equipment $0 $0 $0
    Utilities $3,000 $3,140 $3,200
    Insurance $2,000 $2,100 $2,200
    Rent $3,500 $3,600 $3,800
    Payroll Taxes $31,000 $32,000 $33,000
    Other $0 $0 $0
    Total Operating Expenses $284,900 $300,740 $315,760
    Profit Before Interest and Taxes $96,100 $234,348 $424,207
    EBITDA $96,100 $234,348 $424,207
    Interest Expense $0 $0 $0
    Taxes Incurred $19,220 $46,870 $84,841
    Net Profit $76,880 $187,478 $339,366
    Net Profit/Sales 0.81% 1.60% 2.36%

    8.3.1 Profit Monthly

    Personal Training Business Plan Example - Profit Monthly

    8.3.2 Profit Yearly

    Personal Training Business Plan Example - Profit Yearly

    8.3.3 Gross Margin Monthly

    Personal Training Business Plan Example - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Personal Training Business Plan Example - Gross Margin Yearly

    8.4 Projected Cash Flow

    Personal Training Business Plan Example - Projected Cash Flow

    Pro Forma Cash Flow
    Cash Received Year 1 Year 2 Year 3
    Cash from Operations
    Cash Sales $55,000 $59,400 $64,152
    Cash from Receivables $13,000 $14,040 $15,163
    SUBTOTAL CASH FROM OPERATIONS $68,000 $74,120 $80,050
    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 $68,000 $75,000 $81,000
    Expenditures Year 1 Year 2 Year 3
    Expenditures from Operations
    Cash Spending $37,000 $39,000 $41,000
    Bill Payments $24,000 $27,000 $29,000
    SUBTOTAL SPENT ON OPERATIONS $61,000 $66,000 $70,000
    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 $61,000 $65,880 $71,150
    Net Cash Flow $16,000 $17,000 $19,000
    Cash Balance $27,000 $28,400 $30,020

    8.5 Projected Balance Sheet

    Pro Forma Balance Sheet
    Assets Year 1 Year 2 Year 3
    Current Assets
    Cash $286,500 $320,880 $352,968
    Accounts Receivable $25,000 $28,000 $31,472
    Inventory $4,000 $4,480 $4,900
    Other Current Assets $1,000 $1,000 $1,000
    TOTAL CURRENT ASSETS $291,000 $325,920 $366,334
    Long-term Assets
    Long-term Assets $10,000 $10,000 $10,000
    Accumulated Depreciation $19,000 $21,280 $23,940
    TOTAL LONG-TERM ASSETS $24,000 $26,880 $30,240
    TOTAL ASSETS $297,000 $332,640 $374,220
    Liabilities and Capital Year 4 Year 5 Year 6
    Current Liabilities
    Accounts Payable $19,500 $21,840 $24,548
    Current Borrowing $0 $0 $0
    Other Current Liabilities $0 $0 $0
    SUBTOTAL CURRENT LIABILITIES $16,500 $18,480 $20,772
    Long-term Liabilities $0 $0 $0
    TOTAL LIABILITIES $16,000 $17,920 $20,142
    Paid-in Capital $32,000 $32,000 $33,000
    Retained Earnings $56,000 $61,040 $67,144
    Earnings $199,000 $216,910 $238,601
    TOTAL CAPITAL $277,000 $301,930 $332,123
    TOTAL LIABILITIES AND CAPITAL $293,000 $332,640 $374,220
    Net Worth $283,000 $308,470 $339,317

    8.6 Business Ratios

    Ratio Analysis
    Year 1 Year 2 Year 3 INDUSTRY PROFILE
    Sales Growth 7.04% 7.80% 8.64% 3.00%
    Percent of Total Assets
    Accounts Receivable 9.20% 10.19% 11.29% 9.80%
    Inventory 5.50% 6.09% 6.75% 9.90%
    Other Current Assets 2.10% 2.33% 2.58% 2.40%
    Total Current Assets 150.00% 151.00% 152.00% 158.00%
    Long-term Assets 11.87% 11.90% 11.93% 12.00%
    TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
    Current Liabilities 4.55% 4.59% 4.63% 4.34%
    Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
    Total Liabilities 7.44% 7.50% 7.57% 7.38%
    NET WORTH 100.30% 101.10% 102.03% 110.00%
    Percent of Sales
    Sales 100.00% 100.00% 100.00% 100.00%
    Gross Margin 94.66% 97.22% 99.94% 99.00%
    Selling, General & Administrative Expenses 93.99% 96.53% 99.23% 97.80%
    Advertising Expenses 1.64% 1.68% 1.73% 1.40%
    Profit Before Interest and Taxes 41.00% 42.11% 43.29% 33.90%
    Main Ratios
    Current 37 38 38 32
    Quick 32 33 33.825 33
    Total Debt to Total Assets 0.22% 0.19% 0.18% 0.40%
    Pre-tax Return on Net Worth 74.88% 75.64% 76.69% 75.00%
    Pre-tax Return on Assets 93.84% 98.53% 103.46% 111.30%
    Additional Ratios Year 1 Year 2 Year 3
    Net Profit Margin 32.66% 33.67% 34.72% N.A.
    Return on Equity 56.00% 57.74% 59.53% N.A.
    Activity Ratios
    Accounts Receivable Turnover 7.7 7.8 7.9 N.A.
    Collection Days 100 100 100 N.A.
    Inventory Turnover 32 33.6 34.01 N.A.
    Accounts Payable Turnover 16.3 16.4 16.54 N.A.
    Payment Days 27 27 27 N.A.
    Total Asset Turnover 2.4 2.5 2.6 N.A.
    Debt Ratios
    Debt to Net Worth -0.03 -0.03 -0.04 N.A.
    Current Liab. to Liab. 1 1 1 N.A.
    Liquidity Ratios
    Net Working Capital $245,000 $258,720 $273,208 N.A.
    Interest Coverage 0 0 0 N.A.
    Additional Ratios
    Assets to Sales 0.81 0.85 0.9 N.A.
    Current Debt/Total Assets 1% 0% 0% N.A.
    Acid Test 27.9 28.4 29.4 N.A.
    Sales/Net Worth 2.1 2.1 2.2 N.A.
    Dividend Payout 0 0 0 N.A.

     

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    AUTHOR:

    Jakub Babkins

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