The aspiration to create a blueprint for your business is why you have to get grasps of the 8 steps to write a fitness center business plan. These are means of efficiency that will aid your effort to become successful in this beautiful endeavor that tends to make humans actively healthy. The fitness center business plan is your roadmap to success. It guides you on your journey, helps you to make better decisions, and attracts potential angel investors to your business.
A great fitness center involves more than gymnastics equipment. Setting up a gym is a big task which is why you want to give yourself the best opportunity to succeed. All stages of your business plan are equally important and essential for the final steps. Creating a business plan is a process. It’s easy to think of your business plan as one single document that you build and then you’re done. But, your business plan evolves and changes with you; it’s not a static checklist.
Whether you’re starting a new small business or expanding an existing one, a business plan sets the foundation for success. As we all emerge out of the coronavirus pandemic, it’s especially important to evaluate your business plan to make sure you’re still on top of your game.
In this article, we try to understand the core elements of a gym business plan and how you can craft a business plan for your fitness business.
8 Steps to Write A Fitness Center Business Plan
With a new business, it’s beneficial to pull your ideas into focus and put pen to paper. Research shows that entrepreneurs who write formal business plans are more likely to succeed. Therefore, with a view to that, we have gathered here for you some of the 8 steps to write a fitness center business plan which you can employ to reach up to your business goals and objectives.
1. Executive Summary
This is one of the 8 steps to write a physical fitness center business plan. The executive summary is always at the top of the business plan. It should be an attention-grabbing business pitch that’s short and concise, yet interesting. You will continue to flesh out the points from your executive summary throughout the document. But this first section should be very clear and engaging. Although the executive summary is the first document in the business plan, it can be easier to write it at the end. Keep in mind what it should include so that you answer your own questions as you write your business plan. The executive summary should explain:
- Who – who you are and what you offer
- Why – what you hope to accomplish
- How – how you are going to get there
2. Company Overview
The company overview is a more detailed description of your business. You go beyond talking about who you are and delve into the type of clientele you plan on serving, how your business stands out from the competition, and the goals of your business. Because gym business models can differ, now is a good time to explain how you will run your business in more detail. Your executive summary states your mission statement and explains your thoughts at a high level. As you go through your business plan, you have the opportunity to expand and build on your thinking to showcase your business. Your company overview can include:
- Expand on the purpose of your business
- Business model and structure
- Products and services you offer
- Target market research
- Founding story
- Legal structure
3. Industry Analysis
The industry or market analysis, as another one of the 8 steps to write a fitness center business plan, is where you investigate the local market. Think about your niche, current trends in the market, and how your business aligns with market demand. You’re looking to evaluate the fit of your business in today’s market. Try to include some facts and statistics about your industry and the future of the market. For example, a gym looking to obtain funding for expansion into online fitness would include trends and statistics on the rapid acceleration of digital fitness and where the market is headed in the future.
4. Know Your Customer
Within the gym industry, there are various niches and audience segments. Even within one business, you can have multiple target audience personas. The customer base you choose to target will have a big impact on your business, the types of services you offer, and how you market yourself. Start by breaking your target customers down by the following:
- Demographics – age, gender, income level, occupation, location, and education, etc.
- Psychographics – needs, interests, opinions, beliefs, and values, etc.
5. Competitor Recognition
A competitor analysis investigates businesses that are direct competitors to you. These are the gyms that offer a similar service in your niche. Although you can mention indirect competitors, this section is mainly for a detailed analysis of your direct competitors. Depending on your business type, you could have both in-person competitors as well as digital-only competitors. Although it may be impossible to find out everything about a competitor, you can usually get a clear idea from your research. Break down each of your competitors into the following:
- Services and products they offer
- Target audience
- Pricing and business model
- Strengths and weaknesses
6. Marketing Plan
The marketing section of your business plan is the place to explain everything you plan to do to get your services in front of your target audience. Include your strategy, projected startup costs, and consider who will be handling the marketing efforts of the business. Your marketing strategy can include:
- Social media marketing
- Advertising
- Email marketing
- Referral program
- Sponsorships
- Partnerships
- Pricing
7. Management Team
Ideally, you and your team members have fitness experience within your niche. This section is a great place to highlight the skills, experience, and expertise of your management team. By doing this, it helps to show how specific team members will help you to achieve success. Lay out key members of your team. This doesn’t need to be limited to your fitness experts, but other experts who will guide your business like marketing and sales managers, customer service, and maintenance personnel. How you structure your business and the type of compensation and benefits you offer will help you to attract and retain high-quality talent over time.
8. Capital Plan
Depending on where you are with your business, your financial plan can include current financials for the most recent year and future projections. Your projected revenue should be based on facts and solid research with supporting numbers. The financial plan can include a five-year projection with detailed breakdowns of monthly and annual earnings. Think about your income, cash flow, costs, and outgoings. Your finances are the backbone of your business, so it’s important to be as thorough as possible.
