To run a successful business, gym owners must do more than purchase exercise equipment. They must determine which type of clientele they’ll serve, whether they will require a membership or allow drop-ins, and more. A gym business plan becomes of great help in ensuring nothing is overlooked when establishing and running the operation.
The plan serves as a formal document that outlines the different aspects of the business. It determines how the company will operate and what steps will be taken to ensure its success. A well-defined plan, while not essential, helps businesses secure capital and grow their organization. Gym owners need this document along with tips for digital marketing, great employees to represent the business and more.
How is This Document of Help?
The plan serves as a road map for the organization. It shows where the business currently is and where it would like to go. When writing this plan, owners often find they come up with new ideas for their venture and see where improvements need to be made. What may one learn when they create the plan?
The plan becomes of great help in analyzing the market and determining what makes a gym a success. With this information, it becomes easier for the owner to determine the best path forward and obtain the funds needed to grow and succeed.
This plan begins with plans for allocating resources, hiring personnel, and marketing, among other things. Writing these things down helps to fine-tune them. Additionally, writing the plan out provides an individual with a better understanding of the industry as a whole and which resources are needed to start out and grow the business.
Writing a Business Plan
When writing this plan, the individual must know where they are at and where they want to go. How do they plan to get there? Some gym owners choose a lean start-up plan while others want a traditional document. The lean start-up plan is good when the owner wants to see all relevant details of their business quickly and easily. However, financial institutions require a traditional business plan before lending money to a person.
Elements of a Detailed Business Plan
Business plans contain several elements, and creating this document takes time. Work on one task. When it is complete, move on to the next. If this method is used, the gym owner is less likely to become overwhelmed and give up.
The Executive Summary
The executive summary of the plan includes a description of the company and summarizes the market analysis. With this information, a person can explain why their business is needed and where it fits in the existing market. Only highlight the important parts in this portion of the document. Go into further detail later in the plan.
The Business Overview
Include an overview of the business. This detailed description provides information about the gym, the target audience, and how the organization differs from others. In this portion of the document, the owner should include the gym goals and strategies that will be used to achieve them.
Next, include the market analysis that was conducted. Explain where the gym will fit into the existing industry and current trends that could increase the odds of the gym succeeding. Include data that back up any assertions made in the plan.
Along with the market analysis, a competitor analysis is needed. Learn the strengths and weaknesses of direct and indirect competitors. Include gyms that are similar to the one you operate along with those that function as gyms but differ in one or more ways. Speak to individuals to learn why they chose the facility they use and what they would like to see in their existing gym or a new one. Show how your gym can meet the needs of customers.
Products and Services
A detailed plan needs to provide information about the products and services to be offered. Share information about membership options, exercise equipment, personal training options, and group classes. If child care will be offered or special training sessions, include them in this portion of the plan. Show how these products and services meet the needs of the target audience.
Marketing plays a key role in the success or failure of a business. A business may advertise, seek sponsors, or offer loyalty programs to bring in customers and generate revenue. Include as much information as possible on how clients will be acquired and retained.
Financial institutions want information about the key personnel in a business. They would like to know their experience. This includes the fitness experts and those who will handle administrative tasks. A gym needs the right people to ensure it succeeds. Add bios and an organizational chart showing these key people. Furthermore, include compensation and benefit plans, as they play a role in a gym’s ability to attract and retain talent.
Outside of rent, labor is the biggest expense for most fitness club operators, so having the right compensation is critically important. Break down your management and staff profile, along with their compensation and benefits. Financial institutions want to know their money is being spent wisely.
Provide financial projections in the plan. Existing businesses should share a copy of their financial reports for the prior year and projected revenue in the coming years. Market research becomes of great help when providing this data. To show this information, create financial projections that include standard business financial documents, such as balance sheets and income statements.
Create these documents for the coming three-year period showing both the best and worst-case scenarios. Show how the figures presented in the documents compare to industry benchmarks, and reference start-up costs, debt payment schedules, and payroll expectations.
Share resources that may be used to fund the plan. This could be a bank loan, a soft loan from family or friends, personal savings, and other resources. Explain where the funding will come from and how much will be needed.
Every new business comes with challenges. A detailed business plan helps owners deal with these challenges. It serves as a reference when making critical decisions and becomes of help when funding must be secured. A business owner feels confident moving forward, as they know they have a complete understanding of their venture, and employees appreciate knowing this document is in place. They believe this provides them with more job security.
Each business is different, thus each plan will be unique. Create a plan that meets the needs of your gym. Individuals who do so find the plan serves as a blueprint to move their business forward and grow.