Do you enjoy working out and think to yourself, “Wouldn’t it be fantastic if I could start up my own gym?” Then the gym business is for you! A gym business plan is a crucial component of running a successful fitness facility. A gym owner who wants to attract outside investors or is just looking to boost business should know how to write a business plan for a gym. This is because more than just fitness equipment goes into a great gym. Opening a gym business is a major undertaking, so you want to ensure yourself the best chance of succeeding. In this article, we’ll look at the essential components of a gym business plan, a template, and how to create one for your fitness business.
Enjoy the ride!
How to Open a Gym Business
Any company that provides a fitness service, whether in person, online, or both, is considered a gym business. The health and fitness business in the UK is flourishing. Meanwhile, the UK government and health organisations have pushed Britons to exercise and stay active, bringing more people into the fitness industry. If you’re a fitness professional or personal trainer planning to open a gym business, the good news is that there’s still a sizable market for exercise’s physical and mental health advantages.
The following are steps to take when opening a gym business:
#1. Discover Your Niche
You must first define your niche in the fitness business before pursuing training and certification or opening a gym business. Begin by choosing which sector of the market you want to serve, and then work your way up from there. It’s a good idea to do some market research ahead of time to see if there’s a demand for the service you’re planning to provide. It’s also a good idea to ask gym operators that specialise in that form of training about their experiences. Niches such as speciality fitness centres, traditional gyms, medical fitness and wellness centres, family fitness and wellness centre etc
#2. Get Training And Become Accredited
To begin, make sure you have the necessary training, certifications, and expertise to open a gym business. Your clients will rely on you not only to help them look good but also to keep their bodies healthy and safe while they use your services. It is not required to operate a gym, but it can offer many possibilities, particularly in terms of finances. A person who is specialised and qualified has far more clout with investors than someone who is motivated solely by a desire to be fit or start a business. Ensure your profile is good for making strategies for both your clients and investors.
#3. Find a Good Location
After you’ve decided to open a gym business and what type of gym you want to open, you’ll need to figure out how much room you’ll need and how large you want it to be. Don’t do it carelessly. Examine the areas where your target audience tends to congregate and seek a site with a high concentration of these clients. Things to look for while you’re searching for a good location to open a gym business:
- Do you require access to the street?
- Is there parking available?
- Do you live in a densely populated area?
- Will it be difficult for people to locate you?
- Are you taking the bus?
#4. Interview and Hire Staff
You’ll probably be the principal fitness teacher when you first open your doors, overseeing the majority of the training and direct contact with your members. However, you’ll need to hire a personal trainer, for more specialised exercise disciplines, such as pilates or yoga.
You should thoroughly examine new employees’ training and credentials before hiring them. Consider including test classes or training sessions in the interview process to see how they interact with clients before deciding whether or not to hire them.
You should also consider if you want to hire employees or contract workers when opening a gym business, as the latter may be more cost-effective if each instructor will only be teaching for a few hours per week.
#5. Invest in Quality Equipment
One thing you should know when opening a gym business is that the equipment in a gym should be as good as the people who use it. If you require gym equipment, you must determine whether to purchase it or rent it. Renting can keep you up to date on the latest exercise technology, allows you to assess your needs before purchase, and frequently includes equipment maintenance. Purchasing, on the other hand, is more costly in the short term but saves you money over time. It is also your personal property. Both options have their own advantages.
#6. Market Your Gym
One important thing you should do when you open a gym business is to spread the word about your gym business. It’s advisable to collaborate with marketing professionals who can assist you in developing a memorable business identity. They can also assist you in determining which marketing channels are worth your time and money.
#7. Financial Plan
If necessary, seek finance for your gym business. If you don’t have enough money in your savings account to cover everything, you’ll need to look for outside help. This could be in the form of fundraising or a commercial loan. Show your business plan to potential investors or lenders to acquire the funds you require.
What Is Gym Business Plan?
A gym business plan should be among the first things to think of while opening a gym business. A good gym business plan can serve as a guide to growth and sustainability for up to several years. As we emerge from the unique financial crisis created by the coronavirus pandemic, it’s an especially good time to update your plan or create a new one capable of adapting to unpredictable conditions. Writing a gym business plan should be a methodical yet dynamic process. Think about where you are today and where you want to be in the future. When it comes to developing your gym’s business plan, this approach will help you get into the zone. As a result, the more data you have, the better. To help you gather the information, you’ll need to research deeply into your business concept, future finances, competition, and the fitness business.
How to Write a Gym Business Plan
Here are 9 steps you need to take while writing a gym business plan. The steps are very important, they are:
#1. Executive Summary
The executive summary of a business plan is always at the top of the document. This should be an attention-getting business pitch that is both brief and engaging. Throughout the document, you’ll expand on the topics from your executive summary. This initial portion, on the other hand, should be highly clear and interesting.
Executive summaries are a crucial and integral aspect of running a firm from beginning to end.
Don’t worry if you feel it’s necessary to elaborate on your objectives and goals. You can elaborate on such points in your company review.
Your executive summary should explain:
- The Who – who you are and what you offer
- The what – your goals
- The why – your mission
- The how – how you are going to get there
We recommend you seek professional help like Business Yield Consult to assist you in creating an attractive executive summary for your gym business plan.
#2. Company Overview
The company overview provides a more in-depth explanation of your business. Your vision and mission statement were briefly mentioned in your executive summary. You can expand on these items in your company overview for more information.
In addition to introducing yourself, you discuss the type of clients you intend to serve, how your company differs from the competitors, and your company’s objectives in the company overview. Because gym business practices vary, this is a good opportunity to go over how you’ll run yours in further depth.
Your company overview can include:
- Expand on the purpose of your gym
- Business model and structure
- Products and services you offer
- Target market research
- How you’re going to accomplish your business aims
- Legal structure
#3. Market Analysis
To create this part, you’ll have to look into the local market. Consider your specialisation, current market trends, and how your gym fits into those trends. You want to see if your company is a good fit in today’s market. Include some facts and figures regarding your industry as well as the market’s future prospects. For instance, trends and statistics on the increasing growth of digital fitness would be included in a gym seeking funds for growth into online fitness.
#4. Competitor Analysis
Competitor analysis is where you look into the local and international fitness scene, as well as what your competitors have to offer. You need to put together a list of direct and indirect competitors, as well as their strengths and flaws, and how your gym compares. Consider what makes your gym unique, as well as current fitness market trends and how your gym business connects with current market demand. You may have both in-person and digital-only competitions, depending on the type of your gym business. Even though it may be difficult to learn everything you need to know about a competitor, your research should give you a good insight.
#5. Services and Amenities
The size of your gym will be defined by the description of your services. Include a clear list of the services you provide to your customers. This could include membership options, group classes, workout equipment available, and personal training alternatives. Highlight the effectiveness of your products and services and why they are beneficial to your clients. The next step is to make a pricing list.
#6. Marketing Strategy
The marketing part of your gym business plan discusses how you will sell your services to your target audience. This includes social media marketing, membership drives, sponsorship of local events or NGOs, advertising, collaborations, and other marketing strategies. Outline expected start-up expenses, as well as who will be in charge of the company’s marketing activities.
#7. Management Team
What is the status of your employee chain right now? What will they be held accountable for, and what benefits can you provide? This helps to demonstrate how specific team members will assist you in achieving success. This part of your gym business plan does not have to be confined to your fitness specialists; it can also include marketing and sales managers, customer service representatives, and maintenance staff. Describe how you’ll keep high-quality employees and how your company culture will benefit the hiring process.
#8. Financial Plan
Make a workout menu for your gym. What do you need to do with your money? Make sure you don’t leave any stone unturned, and that each purchase is accompanied by an estimate. Include your most recent year’s financials, as well as your predicted revenue for the next year or several years, in the financial plan section of your gym business plan. Those predicted sales should be based on your thorough market study. Consider your income, cash flow, costs, and expenses. Because your finances are the foundation of your gym business, it’s critical to be as clear and concise as possible.
#9. Funding
The purpose of this part of your gym business plan is to identify prospective revenue sources. Explain where any further startup funds will come from. Take advantage of this opportunity to honestly analyse your budget. Give details on how and where you plan to acquire your money and how much you expect to make. Make a note of any past loan applications you’ve submitted here for any possible investors to examine.
The following are means by which you can get funds:
- Bank loans
- Crowdfunding
- Personal savings
- Soft loans (family members, friends, gifts)
- Partners
- Sponsorship
Why Do You Need a Gym Business Plan?
The primary objective of your gym business plan is to lay out a road map for your company. A potential investor, for example, would be able to see how your gym would grow and flourish in the future if they read your business plan. Your gym business plan also aids in the identification of new prospects and the identification of flaws in your current business model or set-up.
Final Thoughts
Starting any business is not without its challenges, but the rewards are more than worth it in the end. Creating a gym business plan might seem difficult too. That’s why we’ve compiled a gym business plan template just for you! It’s easier that way, right? Get yours today!
FAQs
How much do personal trainers make the UK?
For each session with a client, personal trainers are normally paid by the hour; in the UK, salaries range from £25 to £50 per hour (best trainers can earn up to £100 per hour!) It will be determined by a variety of things.
How do you attract gym members?
- Make Joining as Simple as Possible
- Encourage Positive Reviews on Social Media
- Craft a Solid Marketing Plan
- Identify Your Gym’s Niche
- Know Your Competition
- Train Your Employees
- Understand Your Prospects’ Needs
- Personalize the Selling Experience
Is it hard to start a gym?
Yes. Opening a gym can be difficult, and the first year of running any small business, especially the first year, is a tough challenge. There will be several difficulties and adversity along the journey, as well as times when you want to give up.
