Gym Business Plan Template

Gym Business Plan

You’ve come to the right place to create your gym business plan.
We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their gyms.


 

Gym Business Plan Template + Example

Use the example below as a template to complete your gym business plan:
 

Executive Summary

Business Overview

Steven’s Gym is a startup locally owned gym located in El Paso, Texas. Steven’s Gym will include strength training equipment, free weights, aerobic equipment, and plenty of cardio equipment. The gym will also offer HIIT group classes, spin classes, strength training instruction, and personal training.
Located in an up and coming, newly developed, and highly trafficked area of town, Steven’s Gym will attract both men and women ages 16 to 75+. There is something for everyone at Steven’s Gym, whether someone is just beginning their fitness journey or is a seasoned athlete and gymrat. The gym will have a welcoming atmosphere, experienced personal trainers, friendly staff, and frequently cleaned equipment and restrooms.
The membership options are affordable and will be offered on a month-to-month basis, a 6 or 12 month contract, or the ability to pay for an entire year upfront. Discounts will be offered to military, teachers, and healthcare workers.

Service Offering

The following are the services that Steven’s Gym will provide:

  • Strength training equipment
  • Cardio equipment
  • Free weights/dumbbells
  • Aerobic equipment
  • HIIT group classes
  • Strength training instruction
  • Training sessions upon request

Customer Focus

Steven’s Gym will target all men and women ages 16 – 75+ who are interested in achieving and maintaining a healthy and active lifestyle. El Paso is a very diverse city that includes men and women from all walks of life. There are numerous blue collar individuals, white collar individuals, government employees, and military members as the local Army base is one of the largest in the country. Since Steven’s Gym will be very affordable, it will be able to attract people from all walks of life.

Management Team

Steven will manage the day-to-day tasks of running the gym, while overseeing the staff, scheduling the group HIIT classes, and making sure all equipment is working properly and safely. He will also be in charge of ordering any new and replacement equipment and cleaning products and supplies. Steven will hire a gym manager to manage all new member sign-ups, placing them on a recurring payment schedule, and handle all member issues. There will be three trainers that will be available to personally train any member that requests training. They will also take turns running the group HIIT classes. Steven will outsource a local CPA to handle payroll, accounting, and tax payments. He will also outsource a local advertising company to develop the gym’s logo, branding, photography, social media accounts, website, and billboard design.

Success Factors

Steven’s Gym will be able to achieve success by offering the following competitive advantages:

  • Large, clean, and spacious facility that has all the necessary equipment for their fitness routine.
  • Knowledgeable and friendly staff of trainers.
  • Best value for membership pricing. The membership pricing options are affordable and offer military, teacher, and healthcare employee discounts.
  • Convenient hours of operation.

Financial Highlights

Steven’s Gym is seeking $300,000 in debt financing to begin operations of the business. The funding will be dedicated towards securing the warehouse space, gym build-out, and purchase of the equipment. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and working capital. The breakout of the funding is below:

  • Securing warehouse space, gym build-out, and design: $25,000 to $125,000
  • Gym equipment purchase: $50,000 to $100,000
  • Three months of overhead expenses (payroll, rent, utilities): $15,000 to $55,000
  • Marketing & advertising: $15,000
  • Working capital: $10,000

The following graph below outlines the pro forma financial projections for Steven’s Gym.


 

Company Overview

Who is Steven’s Gym?

Steven’s Gym is a new, locally owned gym located in El Paso, Texas. Steven’s Gym will include strength training equipment, free weights, aerobic equipment, and plenty of cardio equipment. The gym will also offer HIIT group classes, spin classes, strength training instruction, and personal training. Located in an up and coming, newly developed, and highly trafficked area of town, Steven’s Gym will attract both men and women ages 16 to 75+. There is something for everyone at Steven’s Gym, whether someone is just beginning their fitness journey or is a seasoned athlete and gymrat. The gym will have a welcoming atmosphere, experienced trainers, friendly staff, and frequently cleaned equipment and restrooms. The membership options are affordable and will be offered on a month-to-month basis, a 6 or 12 month contract, or the ability to pay for an entire year upfront. Discounts will be offered to military, teachers, and healthcare workers.

Steven’s Gym History

Steven’s Gym is owned by Steven Malone, a retired Army Master Sergeant who is also a seasoned powerlifter. Steven was stationed at El Paso’s Fort Bliss for many years before eventually retiring and deciding to stay in El Paso and embark on his dream of eventually owning his own gym. As a frequent gym goer, Steven recognized that El Paso lacks high quality independent gyms. The nicest and most equipped gyms in El Paso are large franchises that have too many rules and regulations. Other independent gyms are dirty, unorganized, and do not offer a large selection of equipment. Steven envisioned a gym that was welcoming to all types of people that is encouraging, clean, and adequately equipped for those who are focused on sustaining an active, healthy lifestyle.
Since incorporation, Steven’s Gym has achieved the following milestones:

  • Found a 10,000 square foot warehouse space for lease in El Paso, Texas that can easily be converted to a gym.
  • Registered Steven’s Gym, LLC to do business in the State of Texas.
  • Began the branding image, logo, website, and social media accounts for the gym.
  • Began researching and pricing out equipment.

Steven’s Gym Services

The following will be the services Steven’s Gym will provide:

  • Strength training equipment
  • Cardio equipment
  • Free weights/dumbbells
  • Aerobic equipment
  • HIIT group classes
  • Strength training instruction
  • Training sessions upon request

 

Industry Analysis

The Gym industry is expected to grow to an annual revenue of $38 billion in the next five years. This growth is likely a result of increased per capita disposable income, in addition to growing health-consciousness. As consumers’ disposable income levels rise, individuals are usually more willing to purchase gym memberships. Additionally, time spent on leisure and sports is expected to increase over the next five years, effectively increasing the potential pool of consumers.


During this period, demographic changes are expected to drive revenue growth for operators. Additional revenue streams are also expected to play an integral part in industry growth. In particular, as healthcare costs continue to escalate, health insurance providers may implement incentives to promote preventive health practices, including the use of fitness centers among individuals within their provider network. Furthermore, the number of obese individuals in the United States has increased in recent years. Consequently, to cut healthcare costs, many health insurance providers will likely attempt to lower an individual’s risk for type 2 diabetes, heart disease and high blood pressure, among other ailments. Additionally, initiatives that promote the health benefits of exercise will likely increase over the next five years, stimulating industry revenue.
 

Customer Analysis

Demographic Profile of Target Market

Steven’s Gym’s target audience will include all men and women ages 16 – 75+ who are interested in achieving and maintaining a healthy and active lifestyle. El Paso is a very diverse city that includes men and women from all walks of life. There are numerous blue collar individuals, white collar individuals, government employees, and military members as the local Army base is one of the largest in the country. Since Steven’s Gym will be very affordable, it will be able to attract people from all walks of life.


The precise demographics for El Paso, Texas are:
 TotalPercent
Total population870,340(X)
    AGE
        Under 5 years63,2257.30%
        5 to 9 years59,6316.90%
        10 to 14 years58,0306.70%
        15 to 19 years54,3196.20%
        20 to 24 years61,9387.10%
        25 to 29 years77,3868.90%
        30 to 34 years69,4578.00%
        35 to 39 years61,8077.10%
        40 to 44 years50,4415.80%
        45 to 49 years48,9305.60%
        50 to 54 years48,4875.60%
        55 to 59 years55,7646.40%
        60 to 64 years48,8595.60%
        65 to 69 years37,5064.30%
        70 to 74 years30,0453.50%
        75 to 79 years19,0662.20%
        80 to 84 years9,9051.10%
        85 years and over15,5441.80%

Customer Segmentation

Steven’s Gym will primarily target the following customer profiles:

  • High school and college students
  • Military and their families
  • Blue collar workers (factories, warehouses, service industry)
  • White collar workers (corporate or government office)
  • Retirees
  • Athletes who frequently train for fitness competitions

 

Competitive Analysis

Direct and Indirect Competitors

Steven’s Gym will face competition from other companies with similar business profiles. A description of each competitor company is below.

Gold’s Gym

Gold’s Gym is a large franchise-owned gym with two locations in El Paso. Gold’s Gym gives access to everything one needs to transform their life: state-of-the-art amenities, a variety of classes tailored towards someone’s fitness needs, and the world’s best trainers. There are weekly classes for group workouts ranging from martial arts-inspired cardio classes to foundational yoga sessions. There are also certified trainers if someone is new to exercise or just looking for more guidance and coaching. Gold’s Gym also has innovative digital tools to take the fitness journey further, no matter the fitness level.
Gold’s Gym’s amenities include cardio equipment, group exercise, personal training, a pro shop, sauna/steam rooms, group cycle, free weights, functional training, kids club, locker rooms, and wifi.

Planet Fitness

Planet Fitness is for people from all walks of life, whether they’re a first-time gym user or a veteran member, they are there to provide a workout environment in which anyone and everyone can be comfortable. All Planet Fitness members enjoy unlimited access to their home club and the support of their friendly, knowledgeable staff anytime they need it. PF Black Club members receive additional benefits, including the ability to bring a guest for free and access to any of their 2,000+ PF locations. Also, the PF member can take advantage of their free fitness training or find motivation by reading real member experiences on Planet of Triumphs. The goal of Planet Fitness is to provide a clean, safe, welcoming environment for anyone who walks through the door, and all the equipment, amenities, and support they need once they arrive.
Planet Fitness provinces a diverse, Judgment Free Zone where a lasting and active lifestyle can be built. They seek to provide a safe, energetic environment where everyone feels accepted and respected.
The key benefits of Planet Fitness is that they are open 24 hour, offer clean, spacious amenities, free fitness training, Judgment Free Zone, have tons of equipment, and always have a friendly staff.

Anytime Fitness

Anytime Fitness is a welcoming gym that exists to help someone get to a healthier place – by giving the right support at the right times, in the ways the member wants. Every member receives a free, personalized Get Started Plan when they join. Their friendly, professional staff is trained to help someone along their fitness journey, no matter how much support they need.
Aside from a large selection of strength and cardio equipment, Anytime Fitness offers the following services – 24-hour access, 24-hour security, convenient parking, anywhere gym access, private restrooms, private showers, health plan discounts, wellness programs, cardio tvs, and hdtvs.

Competitive Advantage

Steven’s Gym will be able to offer the following advantages over their competition:

  • Large, clean, and spacious facility that has all the necessary equipment for their fitness routine.
  • Knowledgeable and friendly staff of trainers.
  • Best value for membership pricing. The membership pricing options are affordable and offer military, teacher, and healthcare employee discounts.
  • Convenient hours of operation.

 

Marketing Plan

Brand & Value Proposition

Steven’s Gym will offer the unique value proposition to its clientele:

  • Large, clean, spacious, and well-equipped facility.
  • Dedicated team of trainers.
  • Affordable membership pricing plans.
  • Convenient hours of operation.

Promotions Strategy

The promotions strategy for Steven’s Gym is as follows:

Social Media Marketing Strategy

Steven’s Gym will invest in advertising the gym on social media platforms Facebook and Instagram. By using targeted social media marketing, Steven’s Gym will be able to reach the appropriate target audience of El Paso. Before opening, Steven will hire an advertising agency to develop the branding and photography needed to create captivating social media posts.

Billboards

Steven will invest in two billboards strategically located at busy intersections that receive thousands of traffic daily. The advertising agency will develop the print for the billboard design.

Website/SEO Marketing Strategy

Steven’s Gym will invest in a strong SEO presence so that when someone enters “El Paso gym” or “local gym near me” in their Google or Bing search bar, Steven’s Gym is at the top of the list. Their website will list all of Steven’s Gym’s services, location, pricing, and contact information.

Word of Mouth

Word quickly spreads around town and once a few people experience the clean, affordable, and professional staff at Steven’s Gym, more and more people will come in to see for themselves and sign up for a membership plan.

Pricing

The pricing of Steven’s Gym will be moderate and on par with competitors so customers feel they receive value when purchasing their services.
 

Operations Plan

The following will be the operations plan for Steven’s Gym.

Operation Functions:

  • Steven Malone will be the sole gym owner and operator of Steven’s Gym. He will oversee the staff, maintain that the cleaning schedules are being enforced, and ensure that all equipment is working per standard and safely. He will also manage all ordering of new and replacement equipment, schedule the group HIIT classes, and daily management tasks.
  • Steven will hire a gym manager to be in charge of new member enrollments, place them on an automated payment schedule that will be automatically debited from their account, manage the books, and handle any member issues.
  • Steven will hire a team of three trainers to start off with to offer help and training to any member that requests it. Two of the trainers will take turns running the group HIIT class. As the membership grows and clients require more attention, more trainers and classes will be added.
  • Steven will hire a local CPA to manage all high level accounting functions, such as payroll and tax payments.
  • Steven will also hire an advertising agency to develop the gym’s branding, photography, website, social media accounts, and billboard design.

Milestones:

Steven’s Gym will have the following milestones completed in the next six months.
8/1/202X – Finalize contract to lease warehouse space.
8/15/202X – Begin build-out and design converting warehouse space into a functional gym.
9/1/202X – Hire advertising company to begin developing gym’s branding, logo, social media accounts, website, and billboard design.
9/15/202X – Order all equipment.
9/30/202X – Launch social media campaign and website. Billboards go up.
10/5/202X – Hire gym manager and team of personal trainers.
10/15/202X – Train staff on proper policies and procedures.
11/1/202X – Grand Opening of Steven’s Gym.
 

Management Team

Steven’s Gym will be solely owned by Steven Malone.
Steven Malone is a retired Army Master Sergeant who has been stationed off and on at El Paso’s Fort Bliss for the past twelve years. Upon retirement, Steven decided to make El Paso his permanent home and embark on his dream of owning his own gym. Steven recognizes the lack of quality, independent gyms in El Paso and wants to open a gym that fits his idea of what a high-quality gym should be.


As a former powerlifter and personal trainer while serving in the military, Steven is aware of the proper equipment and facilities a gym should have. Steven envisions his gym to be friendly, clean, well-equipped, and affordable for the average person so that people from all walks of life will feel comfortable going to the gym and achieving their fitness goals. Steven will dedicate his life and focus on ensuring that his gym is always clean, staffed with the best trainers, and members are happy with what the gym has to offer.
 

Financial Plan

Key Revenue & Costs

The revenue drivers for Steven’s Gym are the membership fees it will charge each person that signs up to become a member. Each member will be placed on a membership plan where they can either pay month to month, enroll in either a 6 or 12 month contract, or pay for the entire year upfront.
The cost drivers will be the payroll for the staff, rent, utilities, cleaning supplies and equipment, and gym equipment purchase and maintenance. Other cost drivers will be the targeted marketing costs on social media and monthly fees for the CPA and advertising company.

Funding Requirements and Use of Funds

Steven’s Gym is seeking $300,000 in debt financing to begin operations of the business. The funding will be dedicated towards securing the warehouse space, gym build-out, and purchase of the equipment. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and working capital. The breakout of the funding is below:

  • Securing warehouse space, gym build-out, and design: $25,000 to $125,000
  • Gym equipment purchase: $50,000 to $100,000
  • Three months of overhead expenses (payroll, rent, utilities): $15,000 to $55,000
  • Marketing & advertising: $15,000
  • Working capital: $10,000

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Initial Number of New Clients per Month: 60
  • Average Monthly Membership Fee: $150
  • Gym Lease per Year: $100,000

Financial Projections

Income Statement
  FY 1FY 2FY 3FY 4FY 5
Revenues
Total Revenues$360,000$793,728$875,006$964,606$1,063,382
Expenses & Costs
Cost of goods sold$64,800$142,871$157,501$173,629$191,409
Lease$50,000$51,250$52,531$53,845$55,191
Marketing$10,000$8,000$8,000$8,000$8,000
Salaries$157,015$214,030$235,968$247,766$260,155
Initial expenditure$10,000$0$0$0$0
Total Expenses & Costs$291,815$416,151$454,000$483,240$514,754
EBITDA$68,185 $377,577 $421,005 $481,366 $548,628
Depreciation$27,160$27,160 $27,160 $27,160 $27,160
EBIT$41,025 $350,417 $393,845$454,206$521,468
Interest$23,462$20,529 $17,596 $14,664 $11,731
PRETAX INCOME$17,563 $329,888 $376,249 $439,543 $509,737
Net Operating Loss$0$0$0$0$0
Use of Net Operating Loss$0$0$0$0$0
Taxable Income$17,563$329,888$376,249$439,543$509,737
Income Tax Expense$6,147$115,461$131,687$153,840$178,408
NET INCOME$11,416 $214,427 $244,562 $285,703 $331,329
Balance Sheet
  FY 1FY 2FY 3FY 4FY 5
ASSETS
Cash$154,257$348,760$573,195$838,550$1,149,286
Accounts receivable$0$0$0$0$0
Inventory$30,000$33,072$36,459$40,192$44,308
Total Current Assets$184,257$381,832$609,654$878,742$1,193,594
Fixed assets$180,950$180,950$180,950$180,950$180,950
Depreciation$27,160$54,320$81,480$108,640 $135,800
Net fixed assets$153,790 $126,630 $99,470 $72,310 $45,150
TOTAL ASSETS$338,047$508,462$709,124$951,052$1,238,744
LIABILITIES & EQUITY
Debt$315,831$270,713$225,594$180,475 $135,356
Accounts payable$10,800$11,906$13,125$14,469 $15,951
Total Liability$326,631 $282,618 $238,719 $194,944 $151,307
Share Capital$0$0$0$0$0
Retained earnings$11,416 $225,843 $470,405 $756,108$1,087,437
Total Equity$11,416$225,843$470,405$756,108$1,087,437
TOTAL LIABILITIES & EQUITY$338,047$508,462$709,124$951,052$1,238,744
Cash Flow Statement

  FY 1FY 2FY 3FY 4FY 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)$11,416 $214,427 $244,562 $285,703$331,329
Change in working capital($19,200)($1,966)($2,167)($2,389)($2,634)
Depreciation$27,160 $27,160 $27,160 $27,160 $27,160
Net Cash Flow from Operations$19,376 $239,621 $269,554 $310,473 $355,855
CASH FLOW FROM INVESTMENTS
Investment($180,950)$0$0$0$0
Net Cash Flow from Investments($180,950)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow from Financing$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow$154,257$194,502 $224,436 $265,355$310,736
Cash at Beginning of Period$0$154,257$348,760$573,195$838,550
Cash at End of Period$154,257$348,760$573,195$838,550$1,149,286

 

Gym Business Plan FAQs

A gym business plan is a plan to start and/or grow your gym. Among other things, it outlines your business concept, identifies your target customers, presents your marketing strategies and details your financial projections.

You can easily complete your gym business plan using our gym business plan template here.

There are many types of gyms. There are large, franchise gyms that have multiple locations across the country. There are also large single facility gyms. Finally, there are smaller gyms that tend to focus on a particular fitness segment, such as strength training, CrossFit, or group HIIT training.

The primary source of revenue for gym businesses are membership fees. Typically, members pay month-to-month, or fulfill a year-long contract. Members are also usually able to pay for a full year upfront for a discount.

The key expenses for a gym business are the costs associated with payroll, purchase and maintenance of equipment, cleaning supplies, marketing costs, and working capital. Other expenses will be rent, utilities, taxes, accounts payable, and other licensing fees (if necessary).

Gym businesses are most likely to secure funding from banks. Typically you will find a local bank and present your gym business plan to them. Family and/or friends could also be potential investors and other types of capital-raising such as crowdfunding are other common funding sources.


 

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