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Full of enthusiasm and energy, they put up a shingle outside a warehouse space. These owner-operators focused on becoming great coaches, not creating a perfect CrossFit gym business plan. And they did great work serving their clients.
But they spent more than they needed to at start-up, they didn’t project revenue, they didn’t perform a break-even analysis, and they never created a balance sheet. Their prices didn’t reflect expenses and desired profit margins.
They also assumed marketing would take care of itself and failed to consider barriers to entry, local market trends, service potential, target audience demographics, competition and branding. They thought a commitment to coaching excellence would drive word-of-mouth traffic to the door. Worse, they never created staffing and operational plans.
Some of these ventures didn’t survive. Without a business plan for the gym, the owners worked long hours and struggled to turn a profit. Those that did turn a profit without a plan often weren’t making enough, so they turned to a mentor. That’s where Two-Brain comes in.
We help existing microgyms fill in the blanks that should have been addressed with a business plan for a CrossFit gym in the first place. We help them fix things. We help them with operations, staffing, pricing, marketing and retention. We essentially backfill a gym’s business plan through mentorship and our Growth ToolKit—a step-by-step guide to building a profitable, successful enterprise.
But we also work with people who want to open gyms—and you can avoid a lot of problems if you do things right the first time.
When prospective gym owners contact us with plans to open a facility or in the early stages of doing so, we can save them tens of thousands of dollars and put them on the path to profitability—fast.
We’ve got huge amounts of data from gyms all over the world, and we can tell a new owner what will work and where the speedbumps are. They don’t have to make the mistakes and then waste time and money fixing them. In our RampUp program, an experienced mentor helps a client lay the groundwork for long-term success—essentially creating a gym business plan.
After RampUp, clients enter the Growth stage. There, with all the elements of a gym business plan in place, they quickly build their businesses into cash-flow assets that help them live the lifestyles they want.
Along the way, we support our clients and the community with articles, podcasts, videos, webinars, conferences, Facebook groups and more. And we give away mountains for free help—like the CrossFit gym business plan you’ll find below.
Below, you’ll find an amazing resource: A page that will lead you through all the steps required to create a business plan for your CrossFit box, microgym, fitness studio or bootcamp. You can also download an editable Word document here. (We recommend doing that.)
When you’re finished, you’ll have a great idea how to open your gym, and you’ll have a document you can take to the bank if needed.
Going through this process and creating a strategic plan for your gym will save you thousands of dollars and hundreds of hours. But it isn’t easy. We’ve done as much of the work as possible, but you’ll have to fill in the rest.
If you feel overwhelmed or frustrated, don’t feel bad—but don’t give up, either. Investing now will pay dividends later.
And we’re here for you. If you would like someone to guide you through the process of setting up a gym, we can help. To find out if working with a mentor is right for you, click here.
Now, on the business plan for gyms.
DISCLAIMER—This is a sample business plan, and it should be tailored to your geographic location, your unique situation and the specific needs of your business. We’ve provided a general structure to get you started, and we’ve included instructions for finding or creating your own information in each section.
Two-Brain Business is committed to helping entrepreneurs find success fast, and this gym business plan is designed to help you start building your dream.
Business plans are tough enough without having to figure out the structure and layout. Many people don’t even know what should go in a plan, and a blank page derails them. With that in mind, we’ve created a document you can quickly customize for your business. You can download it here. We’ll take you through the process below, but you might want to work in that document.
We encourage you to be as detailed as possible when adding the information that applies to you and your business. The research that goes into a business plan is invaluable. It will help you plan ahead, avoid mistakes and find success sooner. We want to make this process as painless as possible for you, but it’s a mistake to just make a few mindless changes and hit print.
At the beginning of each section below, we’ve included instructions so you know how to find or create the information you need. The instructions are in all-caps bold.
If you need additional help, we can offer it. Two-Brain Business is a mentoring company, and we can help you set up your business. To see how we can help you, click here.
Download your customizable business plan document here.
⦁ Replace everything in square brackets with your details. For example, [YOUR BUSINESS] should be change to your name—XYZ Fitness Inc., for example.
⦁ Everything in red should be deleted after it’s served its purpose. These sections contain instructions, notes, hyperlinks and other info that’s for you only.
⦁ When you’re finished customizing the document, be sure to fill out the page numbers in the table of contents. We can’t do that for you because we don’t know how much you’re going to write.
⦁ We have not included section breaks for the same reason, but you might want to add them to improve readability. Click here for instructions.
⦁ We encourage you to add your branding to this document. To insert images, follow the instructions here.
⦁ Graphs and tables are always a nice touch, and we have included some basic versions that might suit your needs. You can also create your own in other programs and add them as pictures. For more information on charts, click here.
If you need help with your venture, contact Two-Brain Business.
THIS IS THE 1,000-FOOT VIEW OF YOUR BUSINESS. WHAT EXACTLY ARE YOU GOING TO DO? WHY WILL YOU SUCCEED? WHAT SETS YOUR BUSINESS APART?
⦁ [YOUR BUSINESS] will provide group exercise classes, personal training and nutrition consulting services.
⦁ [YOUR BUSINESS] will focus on high-value clients who desire coaching over a low-cost gym membership.
⦁ The owners of [YOUR BUSINESS] are experienced and educated fitness coaches.
⦁ The Association of Fitness Studios (AFS) reported that around 6.5 million Americans hire personal trainers. AFS also estimates that 59 percent of all fitness studios in the U.S. are personal training studios.
⦁ Most new gyms focus on the low-rate model instead of the high-value model we will implement.
⦁ Increasing awareness, obesity rates and self-esteem are the largest factors driving industry growth.
⦁ [YOUR BUSINESS] will have a private gym with high-quality equipment and amenities.
CONSIDER BAR GRAPH PRESENTATION. CLICK HERE TO LEARN HOW TO EDIT CHARTS. STARTUP EXPENSES SHOULD INCLUDE EVERYTHING YOU NEED TO SPEND TO GET STARTED. THIS DOES NOT INCLUDE INCIDENTALS AND REGULAR MONTHLY EXPENSES SUCH AS WAGES, HEAT, ETC. REMEMBER, THIS IS A HIGHLIGHT SECTION, AND A MORE DETAILED SECTION FOLLOWS TOWARD THE END OF THE DOCUMENT.
TO DETERMINE PROFITABILITY PROJECTIONS, FORECAST CASH FLOW AND SET YOUR RATES, WATCH “HOW TO MAKE MORE MONEY” HERE. NEED MORE HELP? CLICK HERE
| Facility/buildout | [$8,500] |
| Equipment | [$41,500] |
| Insurance | [$3,000] |
| Licenses | [$3,000] |
| Mentoring | [$5,500] |
| Marketing | [$2,500] |
| Software | [$400] |
| Other | [$500] |
| Total | [X] |
CONSIDER LINE GRAPH PRESENTATION. THIS IS A MONTH-BY-MONTH PROJECTION OF THE GROSS REVENUE YOU WILL TAKE IN BEFORE EXPENSES. REMEMBER THAT YOU ONLY HAVE PROFIT IF YOUR EXPENSES ARE LESS THAN YOUR GROSS REVENUE. NOTE: THIS IS A HIGHLIGHT SECTION, AND A MORE DETAILED SECTION FOLLOWS TOWARD THE END OF THE DOCUMENT.
Two-Year Revenue Forecast
| Month 1 | [$500] |
| Month 2 | [$2,000] |
| Month 3 | [$2,800] |
| Month 4 | [$4,000] |
| Month 5 | [$4,900] |
| Month 6 | [$5,200] |
| Month 7 | [$6,600] |
| Month 8 | [$8,000] |
| Month 9 | [$9,000] |
| Month 10 | [$10,000] |
| Month 11 | [$11,000] |
| Month 12 | [$12,000] |
| Month 13 | [$13,200] |
| Month 14 | [$14,000] |
| Month 15 | [$14,500] |
| Month 16 | [$15,200] |
| Month 17 | [$16,000] |
| Month 18 | [$17,000] |
| Month 19 | [$18,500] |
| Month 20 | [$20,000] |
| Month 21 | [$20,500] |
| Month 22 | [$21,000] |
| Month 23 | [$21,500] |
| Month 24 | [$22,000] |
CONSIDER LINE GRAPH PRESENTATION. THIS IS A MONTH-BY-MONTH PROJECTION OF THE PROFIT AFTER EXPENSES ARE SUBTRACTED FROM GROSS REVENUE. IN TWO-BRAIN BUSINESS, WE ALWAYS TARGET A PROFIT MARGIN OF 33 PERCENT. THIS PROFIT IS USED TO PAY THE OWNER AND BUY NEW THINGS. REMEMBER, THIS IS A HIGHLIGHT SECTION, AND A MORE DETAILED SECTION FOLLOWS TOWARD THE END OF THE DOCUMENT.
Two-Year Profit Forecast
| Month 1 | [-$10,000] |
| Month 2 | [-$10,000] |
| Month 3 | [-$9,500] |
| Month 4 | [-$9,000] |
| Month 5 | [-$8,000] |
| Month 6 | [-$7,000] |
| Month 7 | [-$6,000] |
| Month 8 | [-$5,000] |
| Month 9 | [-$3,000] |
| Month 10 | [-$2,000] |
| Month 11 | [-$800] |
| Month 12 | [-$200] |
| Month 13 | [$1,000] |
| Month 14 | [$1,500] |
| Month 15 | [$2,500] |
| Month 16 | [$3,200] |
| Month 17 | [$4,000] |
| Month 18 | [$4,800] |
| Month 19 | [$5,500] |
| Month 20 | [$6,000] |
| Month 21 | [$6,500] |
| Month 22 | [$7,200] |
| Month 23 | [$8,000] |
| Month 24 | [$8,400] |
THIS SECTION IS RELATED TO THE EXECUTIVE SUMMARY AND PROVIDES EXTRA DETAIL ON LOCATION, HISTORY AND PRODUCTS/SERVICES.
[YOUR BUSINESS] is situated in [YOUR CITY, YOUR STATE]. Its home will be [ADDRESS], a location it [OWNS OR LEASES, WITH TERM OF LEASE OR YEAR OF OWNERSHIP]. The business was founded by [FOUNDER’S NAME] in [MONTH YEAR].
[YOUR BUSINESS] provides exercise and nutrition coaching that are high in personal interaction and influence.
THIS SECTION DETAILS YOUR ULTIMATE GOALS AND YOUR VISION FOR THE VENTURE. THESE ARE CRITICAL ASPECTS OF YOUR BUSINESS, NOT JUST YOUR BUSINESS PLAN. YOUR MISSION AND VISION WILL GUIDE YOU IN EVERY DECISION FOR THE LIFE OF THE BUSINESS.
Mission: To extend the lives of people in [YOUR CITY].
Vision: A gym facility that includes one-on-one personal training space, private consultation space and group training areas. A community of between [X and X] clients who work with expert coaches to improve their fitness and health.
LIST ADVANTAGES, SPECIAL SKILLS AND AREAS OF STRENGTH, OFTEN WITH SPECIFIC REFERENCES TO THE FOUNDERS. WHY DOES THIS BUSINESS HAVE A CHANCE IN THE MARKET? WHAT ARE ITS OWNERS GOOD AT? MORE INFO: “PARTNERSHIPS.”
[LIST TOP CREDENTIALS OF PRINCIPALS].
[X] years of coaching experience.
Owner’s personal mission to serve local residents.
THIS SECTION SUMMARIZES THE OBSTACLES YOU MUST OVERCOME. WHEN PERFORMING THIS ANALYSIS, IT’S WORTH REVIEWING THE WAY YOUR BUSINESS WILL OVERCOME THESE CHALLENGES. YOU WILL FACE ADVERSITY. ARE YOU PREPARED FOR IT?
[YOUR BUSINESS] will face a challenging situation in brand awareness and service separation. Currently, larger-scale fitness facilities offer low-priced membership options but not coached fitness services.
[YOUR BUSINESS] will also be challenged to create brand awareness and a marketing strategy to recruit new clients fast. With low cash reserves, the business will have to become cash-flow positive within the first [X] months (see Expected Profit Growth above).
THIS SECTION SUMMARIZES THE OVERALL LANDSCAPE OF THE INDUSTRY AND OUTLINES YOUR PLACE IN IT. MICROGYM/STUDIO OWNERS WILL NEED TO EXPLAIN IN DETAIL HOW THEIR FACILITIES DIFFER FROM TRADITIONAL GYMS WITHOUT COACHING. THE DATA BELOW IS FOR THE UNITED STATES. OBTAIN SIMILAR DATA FROM YOUR COUNTRY’S GOVERNMENT IF POSSIBLE. IF IT’S NOT AVAILABLE, USE U.S. STATS AND EXPLAIN HOW YOUR COUNTRY’S INDUSTRY COMPARES.
Fitness facilities primarily focus on headcount: The greatest possible number of members at low prices. [YOUR BUSINESS] will focus on fitness coaching, which includes nutrition consulting, personal training and small-group fitness classes.
Fitness coaching businesses are sometimes referred to as “studios” (when personal training is the standard service) or “microgyms” (when small-group training is the standard service). Studios can provide small-group training, just as microgyms can provide personal training.
Microgyms and studios differ by coach specialization instead of target client demographic. When the primary professional at a studio specializes in weight loss, the focus of the studio is weight loss. Other specialties include strength and conditioning, yoga, nutrition, sport-specific preparation and CrossFit.
⦁ According to IBISWorld’s report, the U.S. market size for personal trainers was $9 billion in 2017. The market is expected to reach $10.5 billion by 2022.
⦁ In 2016, the U.S. Bureau of Labor Statistics (BLS) reported there were 299,200 gym and personal trainers in the country. The BLS estimates another 30,100 personal trainers will be working in the U.S. by 2026.
⦁ IBISWorld pegged the market growth rate at 3.2 percent from 2012 to 2017. Growth was driven by increasing demand for personalized workout programs. In the decade from 2010 to 2020, BLS estimated a 24 percent increase in jobs in the personal training industry.
⦁ If the personal training industry grows at 3.2 percent—a conservative rate—over the next three to five years, the market will reach $9.89 billion in 2020 and $10.53 billion two years later.
Source: https://askwonder.com/q/us-fitness-industry-market-size-and-growth-5b1777780b0220003a87031b
LIST THE MAIN SERVICES YOU WILL PROVIDE. FEEL FREE TO PROVIDE DETAILS, BUT AVOID EXCESSIVE LEVELS OF IT.
[YOUR BUSINESS] will provide the following services:
Personal training
Group fitness classes
Private nutrition consulting
Group nutrition challenges
THIS SECTION IS AN OPPORTUNITY TO FURTHER EXPLAIN HOW YOUR BUSINESS IS DIFFERENT FROM OTHERS. USE STRENGTHS AND CORE COMPETENCIES ABOVE FOR INSPIRATION.
Highly qualified, caring coaches who work one on one with each client.
High-value service with monthly payment plans.
A combination of nutrition and exercise coaching to maximize client progress.
RELATED TO THE SECTION ABOVE, THIS ONE EXPLAINS HOW YOUR BUSINESS WILL SOLVE AN EXISTING PROBLEM. REVIEW YOUR MISSION STATEMENT AND VISION FOR INSPIRATION.
Access to fitness equipment is easy to find: Many people have gym memberships or own fitness equipment. However, most people are overwhelmed by a lack of clarity. They are surrounded by workout regimes in magazines and trendy classes in media. Fad diets lead to roller-coaster results. And injury rates are high because many gym members jump into workout routines without proper instruction or a ramp-up period.
The solution is personal coaching for nutrition and exercise, a service that is lacking in [YOUR AREAS]. Personal coaching will prepare new fitness enthusiasts for a lifetime of safe, reliable progress toward their goals.
IT IS NOT ENOUGH TO “PROVIDE GREAT SERVICE” OR “BE A GREAT COACH.” RUNNING A BUSINESS INVOLVES GENERATING REVENUE. THIS SECTION IS CRITICAL, BOTH FOR YOU AND POTENTIAL INVESTORS. YOU MUST HAVE A PLAN TO GET PEOPLE IN THE DOOR.
THE DATA BELOW IS FOR CANADA. ADJUST THE LOCATION IN THE LINK BELOW TO REFLECT YOUR COUNTRY. IF IT’S NOT AVAILABLE, TRY TO OBTAIN SIMILAR DATA FROM YOUR COUNTRY’S GOVERNMENT IF POSSIBLE. IF NOTHING IS AVAILABLE, USE AVAILABLE STATS AND EXPLAIN HOW YOUR COUNTRY’S MARKET COMPARES.
⦁ Fitness segment revenue is projected as US$266 million in 2019.
⦁ The expected annual growth rate (CAGR 2019-2023) is 6.1 percent, resulting in US$338 million market volume by 2023.
⦁ Wearables account for the largest revenue segment, at US$228 million in 2019.
Source: https://www.statista.com/outlook/313/108/fitness/canada
IN LARGER CITIES, IT’S LESS IMPORTANT TO SURVEY THE ENTIRE CITY AND MORE IMPORTANT TO SURVEY THE AREA AROUND THE BUSINESS. TO FIND OTHER LOCAL BUSINESSES, USE GOOGLE AND GOOGLE MAPS. MOST CIVIC GOVERNMENTS PUBLISH DEMOGRAPHIC INFORMATION, AND IT’S OFTEN AVAILABLE THROUGH A SIMPLE INTERNET SEARCH. CHECK YOUR COUNTRY’S CENSUS BUREAU FOR MORE DETAILS.
[YOUR CITY/AREA] is currently served by a total of [X] membership-based gyms, [X] personal training studios, [X] yoga gyms, [X] spin studios and [X] dietitians/nutritionists.
The average household income in [YOUR CITY/AREA] is $[NUMBER].
ADD MORE DETAIL TO PUT THIS NUMBER IN CONTEXT. IS IT GROWING OR SHRINKING? WHAT INDUSTRIES SUPPORT THE NUMBER? HOW DOES IT COMPARE TO OTHER AREAS? EXAMPLE: This is a decrease of 8 percent from a decade ago. However, the public sector is growing, buoyed by government and educational jobs. These jobs have pay-scale parity with major metro centers even though the local cost of living is 80 percent less than in the closest larger city. Top earners in the local public sector are reported annually here.
The microgym and studio fitness industry is unaffected by weather or season, except for a small uptick in interest during January and September each year.
RELATED TO THE SECTION ABOVE, YOU MUST EXPLAIN WHY PEOPLE WANT YOUR PRODUCTS/SERVICES AND WHY MORE ARE LIKELY TO DO SO IN THE FUTURE. IN THIS SECTION, YOU NEED TO BE AWARE OF CURRENT TRENDS AND CONSUMER BEHAVIORS. FITNESS MAGAZINES AND WEBSITES ARE GREAT RESOURCES. WHAT ARE PEOPLE BUYING? HOW ARE THEY TRAINING? WHAT DO THEY WANT?
The fitness club market in [COUNTRY] is evolving but growing. The demands of the new fitness club member extend beyond access to equipment and include:
⦁ Customization—People who have memberships or might get one are interested in customized fitness and health care plans. This desire is related to their self-perceived requirement or the prescriptions of a doctor, medical/therapy professional or personal trainer.
⦁ Ease of Service—People are looking for fun exercises that are easy to learn through the instruction of expert coaches.
⦁ Effectiveness of Exercise—Members desire results. Experienced, skilled trainers can devise effective programs so clients safely and measurably improve health and fitness.
THIS SECTION MUST BE TAILORED TO YOUR AREA. DOES YOUR COUNTRY HAVE A “FITNESS CULTURE” IN WHICH PERSONAL TRAINING IS COMMON? DID A MAJOR EMPLOYER MOVE INTO TOWN AND BOOST SALARIES? DETERMINE WHAT IS MAKING LOCAL PEOPLE WORK OUT OR NOT WORK OUT. EXAMPLE: Per capita income increases among the highest local earners. Though household income in Sault Ste. Marie has decreased over the last decade, the average income among our target market has continued to increase with the provincial average. Government campaigns have created increased awareness of the benefits of healthy eating and exercise, so members of our target market are more inclined to invest in gym and nutrition services.
⦁ [INSERT MAJOR FACTOR IN YOUR LOCAL MARKET.]
⦁ [INSERT MAJOR FACTOR IN YOUR LOCAL MARKET.]
⦁ Confusion. Most clients joining a microgym or studio have tried exercise in the past and been frustrated by a lack of progress or confusion about what to do.
THIS SECTION REFERS TO THE FITNESS INDUSTRY AS A WHOLE, AND WEBSITES AND MAGAZINES ARE GREAT RESOURCES. WHAT’S POPULAR? IT WOULD BE WISE TO NOTE THE CURRENT TRENDS AND DETERMINE HOW YOUR BUSINESS CAN PROFIT FROM THEM.
According to the American College of Sports Medicine, current top trends are:
⦁ Wearable technology
⦁ Group training
⦁ HIIT (high-intensity interval training)
⦁ Fitness programs for older adults
⦁ Body-weight training
⦁ Employing certified fitness professionals
⦁ Yoga
⦁ Personal training
⦁ Functional fitness training
[YOUR BUSINESS] will incorporate three of these trends (HIIT, body-weight training, functional fitness training) within three services (group training, fitness programs for older adults, and personal training). We will also employ fitness professionals accredited through [INSERT CREDENTIALING AGENCIES].
THIS SECTION IS LIKELY RELATED TO NATIONAL MARKET DATA ABOVE. CONSIDER BAR GRAPH PRESENTATION. THE DATA BELOW IS FOR CANADA AND THE U.S. TRY TO OBTAIN SIMILAR DATA FROM YOUR COUNTRY’S GOVERNMENT IF POSSIBLE. IF NOTHING IS AVAILABLE, USE AVAILABLE STATS AND EXPLAIN HOW YOUR COUNTRY’S MARKET COMPARES.
As stated above the U.S. market was $9 billion in 2017 and is expected to reach $10.5 billion by 2022.
IBISWorld pegged the market growth rate at 3.2 percent from 2012 to 2017. At the conservative 3.2 percent growth rate, the market will reach $9.89 billion in 2020 and $10.53 billion two years later.
Canadian growth rates are expected to be 6.1 percent, moving the market volume from US$266 million in 2019 to $338 million in 2023. See graph below.
THIS SECTION IS LIKELY RELATED TO NATIONAL MARKET DATA ABOVE. THE DATA BELOW IS FOR CANADA. TRY TO OBTAIN SIMILAR DATA FROM YOUR COUNTRY’S GOVERNMENT IF POSSIBLE. IF NOTHING IS AVAILABLE, USE AVAILABLE STATS AND EXPLAIN HOW YOUR COUNTRY’S MARKET COMPARES.
⦁ Health-care expenditure—Canadian health care reached CDN$242 billion in 2017—a growth of approximately 3.9 percent. The figure is 11.5 percent of the Canadian gross domestic product and amounts to $6,604 per citizen.
⦁ More spending—Since 1975, health spending has been increasing by both current and constant-dollar measures.
⦁ Aging population—As of 2014, more than 6 million Canadians (15.6 percent of the population) were 65 or older. By 2023, the numbers will be 9.5 million and 23 percent.
Source: Canada.ca
THIS SECTION USES CURRENT TRENDS TO LINK PROBLEMS TO THE SOLUTIONS OFFERED BY YOUR BUSINESS. SUBSTITUTE LOCAL/NATIONAL RATES AS AVAILABLE OR EXPLAIN HOW THE ONES LISTED BELOW RELATE TO YOUR AREA.
The fitness industry offers a lot of opportunities for existing and potential investors. The market for fitness services is growing for many reasons, some of which have already been noted above.
⦁ According to its government, Canada is home to 6.3 million obese people.
⦁ Almost 130 million Americans are overweight, with more than 61 million of them obese.
⦁ Fifteen percent of children in the U.S. are obese.
⦁ High blood pressure and heart disease affect 18 million Americans.
⦁ It costs almost $100 billion to treat obese patients—9 percent of total U.S. health-care expenditure.
⦁ Some insurance companies and government agencies are now funding fitness pursuits as a way to lessen long-term costs.
⦁ The effective, safe personalized fitness and nutrition programs we offer are ideal for reducing obesity and improving health.
THIS SECTION ADDRESSES DEMOGRAPHIC ISSUES AND EXPLAINS HOW YOU WILL BE ABLE TO OVERCOME ANY BARRIERS TO ENTRY. ADJUST AS NEEDED.
Some possible consumers might not be able to afford our high-value services. Other facilities sell low-priced membership options to these consumers but exclude the higher-value clients. Because our model is not based on volume, we overcome barriers to entry by seeking out the clients who see the value in our services and can afford it.
NOTE ANY SPECIAL REGULATIONS THAT MIGHT AFFECT YOU.
[YOUR BUSINESS] is governed by standard local tax and health codes and will be operated in accordance with those codes.
NOTE ANY LONG-TERM PLANS OR POTENTIAL OPPORTUNITIES AFTER YOUR BUSINESS IS ESTABLISHED AND HAS ACCOMPLISHED ITS INITIAL GOALS.
Currently, [YOUR BUSINESS] is focused on personalized coaching in exercise and nutrition.
However, in the future, the business might focus on integrating with health-care practitioners such as therapists and doctors.
YOUR TARGET AUDIENCE IS RELATED TO BOTH YOUR LOCAL MARKET ANALYSIS AND SERVICES. YOU MUST FIGURE OUT HOW MANY PEOPLE IN YOUR AREA MIGHT BE INTERESTED IN YOUR PRODUCTS AND SERVICES. CENSUS BUREAUS AND LOCAL GOVERNMENTS CAN PROVIDE THE INFO YOU NEED. EXAMPLE: According to government stats and facts briefs, Sault Ste. Marie is home to 75,141 individuals, including 39,030 females and 36,115 males. The largest segment of the population is aged 45-59. The average household income in Sault Ste. Marie is approximately CDN$86,500. Catalyst Fitness is targeting a segment of 7,456 individuals who are adults living in a home with an income over $120,000 per year.
WITH WHOM WILL YOU COMPETE FOR MARKET SHARE? IN LARGER CITIES, IT’S LESS IMPORTANT TO SURVEY THE ENTIRE CITY AND MORE IMPORTANT TO SURVEY THE AREA AROUND THE BUSINESS. TO FIND OTHER LOCAL BUSINESSES, USE GOOGLE AND GOOGLE MAPS. EVEN IF YOU DON’T STATE IT BELOW, IT’S WORTH DETERMINING HOW YOUR BUSINESS WILL STAND OUT FROM THE EXISTING CROWD.
[YOUR CITY/AREA] is currently served by a total of [X] membership-based gyms, [X] personal training studios, [X] yoga gyms, [X] spin studios and [X] dietitians/nutritionists.
Only the personal training studios will be direct competitors.
They are:
[INSERT NUMBERED LIST WITH ADDRESSES AND PROXIMITIES]
THIS SECTION RELATES TO YOUR BENEFITS AND FEATURES LISTED ABOVE. WHAT DO YOU OFFER THAT JUSTIFIES YOUR PRICES?
⦁ Highly qualified fitness professionals who focus on client results through diet and exercise.
⦁ Personalized approach to clients’ goals.
⦁ Modern, professional facility equipped with the most popular and effective equipment and tracking technology.
HOW WILL YOUR BUSINESS CREATE ITS IMAGE? IF YOU EMPLOY SOMEONE TO CREATE YOUR BRANDING, NOTE THE PERSON/COMPANY AND TRACK RECORD. IF YOU HAVE A COMPREHENSIVE PACKAGE IN PLACE—SIGNAGE, PROMO MATERIAL, INTERIOR DESIGN, VEHICLE WRAPS, POP-UP BANNERS/FLAGS—DESCRIBE IT.
[YOUR BUSINESS] branding will be consistent across all properties to create a professional image. Our logo, name and color scheme will be featured prominently in all uses both inside and outside the gym, both to attract potential clients and influence current clients.
Visitors to our facility will be met with a strong brand identity, both in the entrance and the training areas, and all printed take-away material will feature our signature look.
Employees will wear branded apparel, and, when possible, equipment will feature our branding.
[YOUR BUSINESS] will create an official website as the online cornerstone of the brand and company image, and it will be supported by customized social media channels with the same appearance and character.
Overall, [YOUR BUSINESS] will create a friendly, professional presence that is 100 percent consistent throughout all operations.
WHAT ARE YOU TRYING TO ACCOMPLISH THROUGH OUTREACH EFFORTS? ONLINE SALES, BRAND BUILDING, FOOT TRAFFIC, PHONE CONSULATIONS, EMAIL INQUIRIES? EXAMPLE: Catalyst Fitness will focus on creating a brand image of high-value expertise in Sault Ste. Marie, and we will fulfill our vision by coaching 150-200 clients at a time. To that end, our marketing is not directed at large-scale client acquisition but rather the steady, deliberate acquisition of high-value clients who are willing to invest in health and fitness.
Our primary goals are as follows:
Create the perception of quality and value—Our marketing will be designed to present us as “the best steakhouse in town,” which pre-qualifies prospective clients. We are for anyone but not everyone.
Educate—Our expertise will be on full display in all marketing efforts as we give away free advice and tips through content. The plan will raise our status in the minds of prospective clients and keep us top of mind.
Drive clients to book free consultations—We stand out from all other gyms by offering a prescriptive model in which skilled experts consult with prospective clients and offer customized plans. At similar facilities in other cities, the close rate at consultations is very high, so our marketing channels will direct people to book free consultations.
Grow our contact list—We’ll use various materials to generate an increasingly large mailing list to take advantage of the power of email marketing. We’ll use this channel for education, branding and direct calls to action.
THIS IS THE “HOW” BEHIND THE “WHAT” OF THE PREVIOUS SECTION. THIS SECTION SHOULD CONTAIN MORE DETAILS OF YOUR PLAN. IF YOU DON’T HAVE ANY DETAILS, YOU HAVE A BIG HOLE IN YOUR BUSINESS THAT MUST BE FILLED.
Microgyms and studios benefit from unsolicited referrals and word of mouth, but this inactive marketing isn’t enough. We have a thorough plan designed to engage members of our target market and build our status and value through regular contact until the client is ready to take action.
⦁ Affinity marketing—Referral marketing targets the people connected to our current clients. This is not passive. We have a plan to sit down in person with top clients—those in the Axial Loop below—every month and discover how we can help other people in their lives. We’ll also ask these seed clients for assistance in exchange for complementary services such as personal training. By involving these influential people in service and program development, we’ll tailor the offerings to please similar people and create a sense of ownership in our clients. This program will extend to bring-a-friend days, informational seminars, workplace demonstrations and other outreach activities.
CLICK HERE TO LEARN MORE ABOUT AFFINITY MARKETING.
⦁ Unpaid social media marketing—Social media platforms allow us to attract local fitness enthusiasts to our website with daily content. The fitness and nutrition industries are incredibly well suited to visual media, and we’ll release original content daily across Facebook, Instagram, Twitter, YouTube, Google Business and our website. Phase 2 involves LinkedIn, Pinterest and Vimeo. This content will build the brand and establish expertise, and it will also include calls to action that lead to products and services. Content effectiveness is easy to measure through platform tracking systems.
⦁ Paid digital marketing—This is the third leg of the marketing plan, and it’s implemented only after the other legs are set and things are running smoothly. We’ll use targeted Facebook, Google and Instagram ads to feed interested leads to our website through engaging content identified during unpaid marketing efforts. We’ll monitor the effectiveness of all campaigns daily and track return on investment. Campaigns will be adjusted and recreated depending on conversion rates.
CLICK HERE TO SEE HOW TWO-BRAIN MARKETING USES SOCIAL MEDIA TO GENERATE LEADS AND SALES.
MANY BUSINESSES DO NOT ALLOCATE FUNDS TO MARKETING AND CHOOSE TO RELY MOSTLY ON WORD OF MOUTH, WHICH IS UNRELIABLE. WE ENCOURAGE YOU TO TALK TO SOMEONE WHO CAN EXPLAIN HOW TO SPEND MARKETING DOLLARS WISELY AND ENSURE YOU’RE GENERATING A RETURN ON YOUR INVESTMENT.
[YOUR BUSINESS] will spend up to [$X,XXX] per month, mostly on digital ads. The return on investment will be tracked to ensure we are generating leads and sales. Poorly performing campaigns will be adjusted and discontinued, and successful campaigns will be replicated. The money spent here should be returned to the business in the form of long-term high-value clients. We will track both front-end revenue directly related to ad spends as well as downstream revenue generated when clients book services beyond the initial call to action.
THIS SECTION REVIEWS STRENGTHS AND CORE COMPENTENCIES LISTED ABOVE. FEEL FREE TO PROVIDE ADDITIONAL DETAIL. WHAT ARE YOU GOOD AT?
The owners are committed toward to a results-oriented approach to attract and maintain customers in a competitive market. A comprehensive retention and marketing plan supports this approach.
Personal coaching addresses the greatest needs of existing gym goers and ensures clients see results through safe, effective exercise provided by inspiring professionals.
The microgym/studio model requires only 150 clients to create a long-term, sustainable business and careers for coaches.
Our company will attract and develop qualified and trained “intrapreneurial” staff members who are able to generate sales and client satisfaction.
THIS SECTION REVIEWS THE CHALLENGES LISTED ABOVE. FEEL FREE TO PROVIDE ADDITIONAL DETAIL. WHEN PERFORMING THIS ANALYSIS, IT’S WORTH REVIEWING THE WAY YOUR BUSINESS WILL OVERCOME THESE CHALLENGES.
Our high-value proposition requires more explanation than low-fee services.
Larger gyms have a larger marketing budgets.
USE THE MARKETING OPPORTUNITIES SECTION ABOVE FOR INSIPRATION. WHAT ELEMENTS OF YOUR BUSINESS OR LOCAL MARKET SUGGEST YOU WILL BE SUCCESSFUL?
The fitness market is rapidly growing.
Increasing rates of obesity-related disease are causing people to pay attention to exercise and health-care activities.
A large segment of the local market is still unserved. High-income clients will be of special focus for [YOUR BUSINESS]. This segment is largely ignored by the competition. Client acquisition is costly, but we only have to acquire one $200 client for every four $50 clients our competitors acquire. This allows delivery of tailored, effective high-value service and creates referral opportunities.
THIS SECTION REVIEWS THE CHALLENGES AND WEAKNESSES SECTIONS LISTED ABOVE. FEEL FREE TO PROVIDE ADDITIONAL DETAIL. WHEN PERFORMING THIS ANALYSIS, IT’S WORTH REVIEWING THE WAY YOUR BUSINESS WILL OVERCOME THESE CHALLENGES.
Recessions and economic downturns can slow the growth of health clubs.
Potential similar offers from well-established competitors are a low-level threat, but we can assume other local gyms will want to copy our services.
Low-cost equipment is available for home exercise, but our coaches can serve these individuals through creation of fitness and nutrition plans and home visits.
LAY OUT A TIMELINE OF EVENTS FROM THE DATE OF BUSINESS PLAN CREATION TO OPENING. IF THERE ARE KEY LAUNCH ELEMENTS THAT WILL BE ADDED AFTER OPENING, NOTE THEM. CONSIDER GRAPHICAL PRESENTATION. AN EXAMPLE IS INCLUDED BELOW AND SHOULD BE REPLACED IF YOUR TIMELINE DIFFERS OR INCLUDES OTHER ELEMENTS.
[YOUR BUSINESS] will launch according to the following timeline:
THIS SECTION EXPANDS ON THE COMPANY OVERVIEW AND ADDS DETAILS RELATED TO YOUR LOCATION. IT SHOULD MENTION NEARBY COMPETITORS, AMENITIES, AND OTHER ELEMENTS SUCH AS PARKS, DESTINATIONS, NEIGHBORS, ZONING CONCERNS, PARKING AND SO ON. MANY GYMS HAVE FAILED TO REVIEW ZONING, LEASES AND LOCATIONS FOR POTENTIAL PROBLEMS. WE STRONGLY ADVISE YOU TO INVEST TIME IN SECURING A SUITABLE LOCATION. A LAWYER SHOULD REVIEW YOUR LEASE FOR POTENTIAL PITFALLS. EXAMPLE:
Catalyst Fitness has secured a lease at 123 Any Street for a term of five years at a rate of $4,000 a month. The lease includes an option to renew and has been reviewed and adjusted by legal counsel.
The facility is 5,000 square feet and includes a lobby and washrooms, which will be upgraded as part of the buildout. The landlord has indicated additional space is available if expansion is needed.
The building is wheelchair accessible, and we have researched zoning and fire codes and confirmed there are no concerns. No major mechanical, electrical or structural changes are needed for an occupancy permit. We have ample parking.
We are five minutes from the airport and on a major artery, giving us great opportunities for signage. The high-traffic destination store Joe’s Stuff is located 100 meters away, ensuring regular foot traffic. Several businesses in the area have already expressed an interest in partnerships, and there are opportunities for corporate fitness programs.
The only current neighbor is a loud autobody shop, and noise is not a concern. The landlord is aware of the volume of our proposed activities and has approved them. The floor has been evaluated, and it can withstand our activities with ¾-inch rubber matting, which we have ordered.
There are currently no fitness studios or microgyms within 2 miles; however, one membership-based gym exists within one block.
LIST ANY LEGAL ISSUES. THIS SECTION COULD INCLUDE PENDING LAWSUITS, INCORPORATION, SALE/TRANSFER OR SHARES, NEW PARTNERS, ETC.
There are no current legal obligations for [YOUR BUSINESS].
LIST ALL PERSONNEL, INCLUDING TITLES AND ROLES. IF THE STRUCTURE MIRRORS MANAGEMENT PERSONNEL FEATURED IN THE FOLLOWING SECTION, FEEL FREE TO BE BRIEF. EXAMPLE: Catalyst Fitness will open with three initial staff members, including the owner. See below for detailed breakdown.
THIS SECTION WILL LIST THE MAIN PEOPLE IN YOUR ORGANIZATION. BE SURE TO INCLUDE EDUCATION, TALENTS/SKILLS AND ROLES. EXAMPLES:
Chris Cooper—Chris is the sole owner of Catalyst Fitness Inc. Chris has a bachelor’s degree in an exercise-science related field and has been coaching fitness since 1996. Chris has successfully founded and sold two other fitness businesses and currently owns a business mentorship practice. Chris’ roles will include sales and marketing.
Sally Glama—Sally has a degree in business management and a passion for fitness. Sally’s roles will include operational oversight, personal training and nutrition coaching.
Jordan Glitz—Jordan is a passionate fitness coach with four years in the industry. Jordan’s roles will include coaching group fitness classes, goal reviews and planning, and personal training. Jordan will also fill the role of customer retention management.
LIST YOUR BANK AS WELL AS ANY OTHER PERTINENT INFORMATION ABOUT IT, INCLUDING DEBTS, MORTGAGE, LINES OF CREDIT, ETC.
[YOUR BUSINESS] will bank at [INSERT BANK], where its business representative will be [INSERT NAME].
LIST THE PEOPLE WHO WILL HELP YOU RUN THE BUSINESS, INCLUDING THEIR CREDENTIALS OR AREAS OF EXPERTISE. WE STRONGLY ENCOURAGE YOU TO SEEK THE ADVICE OF EXPERTS TO SET YOUR BUSINESS UP FOR SUCCESS AND LONG-TERM GROWTH. EXAMPLE: Catalyst Fitness will be mentored to launch by Two-Brain Business, the largest mentorship practice for microgyms in the world. Using Two-Brain’s RampUp program, Catalyst Fitness will determine its rates, create its operational processes, hire staff, build a retention plan, and pre-sell memberships before launch.
Ongoing mentorship will ensure Catalyst follows best practices, regularly reviews strategic plans and obtains advice on major decisions.
TO BOOK A FREE CALL WITH A TWO-BRAIN BUSINESSS MENTOR, CLICK HERE.
THIS SECTION REVISITS ASPECTS OF THE HIGHLIGHTS SECTION, OFTEN IN GREATER DETAIL.
YOU CAN INCLUDE INFORMATION ON SECURED FUNDING, LINES OF CREDIT AND SO ON. CONSIDER GRAPHICAL PRESENTATION FOR BEST EFFECT. YOU ARE OUTLINING THE MONEY YOU HAVE AND THE MONEY YOU NEED.
| [Shareholders Loan] | [X] |
| [Investor 1: ABC HoldCo] | [X] |
| [Investor 2: XYZ OpCo] | [X] |
| [Investment requirement] | [X] |
| Total | [X] |
REVISIT THE INFORMATION FROM THE HIGHLIGHTS SECTION AND PROVIDE ADDITIONAL DETAIL IF NEEDED. CONSIDER BAR GRAPH PRESENTATION.
| Facility/buildout | [$8,500] |
| Equipment | [$41,500] |
| Insurance | [$3,000] |
| Licenses | [$3,000] |
| Mentoring | [$5,500] |
| Marketing | [$2,500] |
| Software | [$400] |
| Other | [$500] |
| Total | [X] |
EXAMPLES: Insurance quote valid until July 10, 2019.
Facility buildout is maximum renovation price determined through guaranteed quotes.
Startup includes purchase of assorted office supplies and a desk, filed under Other.
REVISIT THE INFORMATION FROM THE HIGHLIGHTS SECTION AND PROVIDE ADDITIONAL DETAIL IF NEEDED. CONSIDER BAR GRAPH PRESENTATION.
Two-Year Revenue Forecast
| Month 1 | [$500] |
| Month 2 | [$2,000] |
| Month 3 | [$2,800] |
| Month 4 | [$4,000] |
| Month 5 | [$4,900] |
| Month 6 | [$5,200] |
| Month 7 | [$6,600] |
| Month 8 | [$8,000] |
| Month 9 | [$9,000] |
| Month 10 | [$10,000] |
| Month 11 | [$11,000] |
| Month 12 | [$12,000] |
| Month 13 | [$13,200] |
| Month 14 | [$14,000] |
| Month 15 | [$14,500] |
| Month 16 | [$15,200] |
| Month 17 | [$16,000] |
| Month 18 | [$17,000] |
| Month 19 | [$18,500] |
| Month 20 | [$20,000] |
| Month 21 | [$20,500] |
| Month 22 | [$21,000] |
| Month 23 | [$21,500] |
| Month 24 | [$22,000] |
| Month | Clients |
|---|---|
| 2 | [X] |
| 4 | [X] |
| 6 | [X] |
| 8 | [X] |
| 10 | [X] |
| 12 | [X] |
| 14 | [X] |
| 16 | [X] |
| 18 | [X] |
| 20 | [X] |
| 22 | [X] |
| 24 | [X] |
EXAMPLE: Potential growth rates determined in consultation with Two-Brain Business mentor. Rates reflect data collected from similar businesses in like markets.
Client growth supported by retention systems used in similar gyms to create strong length of engagement.
PROFIT AND LOSS PROJECTIONS ARE MORE SUITED TO SPREADSHEETS, BUT WE’VE INCLUDED A BASIC TEMPLATE HERE. PROFIT AND LOSS NUMBERS CAN BE DETERMINED FROM YOUR PROJECTIONS ABOVE. NOTE THAT OPERATING EXPENSES ARE DIFFERENT FROM STARTUP COSTS, AND YOU’LL NEED TO INCLUDE WAGES, RENT, UTLITIES AND A HOST OF OTHER LINE ITEMS. YOUR TOTAL REVENUE MUST BE GREATER THAN YOUR EXPENSES TO SHOW A PROFIT. AT TWO-BRAIN BUSINESS, WE TARGET A PROFIT MARGIN OF 33 PERCENT. THAT PROFIT IS USED TO PAY THE OWNER AND PURCHASE NEW THINGS.
Two-Year Profit Forecast
| Month 1 | [-$10,000] |
| Month 2 | [-$10,000] |
| Month 3 | [-$9,500] |
| Month 4 | [-$9,000] |
| Month 5 | [-$8,000] |
| Month 6 | [-$7,000] |
| Month 7 | [-$6,000] |
| Month 8 | [-$5,000] |
| Month 9 | [-$3,000] |
| Month 10 | [-$2,000] |
| Month 11 | [-$800] |
| Month 12 | [-$200] |
| Month 13 | [$1,000] |
| Month 14 | [$1,500] |
| Month 15 | [$2,500] |
| Month 16 | [$3,200] |
| Month 17 | [$4,000] |
| Month 18 | [$4,800] |
| Month 19 | [$5,500] |
| Month 20 | [$6,000] |
| Month 21 | [$6,500] |
| Month 22 | [$7,200] |
| Month 23 | [$8,000] |
| Month 24 | [$8,400] |
CASH-FLOW STATEMENTS ARE MORE SUITED TO SPREADSHEETS, BUT WE’VE INCLUDED A BASIC TEMPLATE HERE. THIS TABLE SUMMARIZES CASH IN VS. CASH OUT OVER A TWO-YEAR PERIOD. USE YOUR PROJECTIONS FROM THE SECTIONS ABOVE TO FILL IT OUT, AND ADJUST THE ENTRIES FOR YOUR BUSINESS. IDEALLY, YOU WILL TRACK CASH IN AND OUT MONTH BY MONTH. TO DOWNLOAD AN EXCEL SPREADSHEET TO DO SO, CLICK HERE.
BALANCE SHEETS ARE MORE SUITED TO SPREADSHEETS, BUT WE’VE INCLUDED A BASIC TEMPLATE HERE. A BALANCE SHEET SHOWS THE NET WORTH OF YOUR BUSINESS AT A POINT IN TIME. USE YOUR PROJECTIONS FROM THE SECTIONS ABOVE TO FILL IT OUT, AND ADJUST THE ENTRIES FOR YOUR BUSINESS.
BREAK-EVEN ANALYSES ARE MORE SUITED TO SPREADSHEETS, BUT WE’VE INCLUDED A BASIC TEMPLATE HERE. A BREAK-EVEN ANALYSIS SHOWS THE SALES YOU WILL HAVE TO MAKE TO BREAK EVEN. USE YOUR PROJECTIONS FROM THE SECTIONS ABOVE TO FILL IT OUT, AND ADJUST THE ENTRIES FOR YOUR BUSINESS.
THIS SECTION OFTEN INCLUDES VARIOUS REFERENCES, TABLES, CHARTS AND DATA USED TO SUPPORT THE INFORMATION IN THE MAIN BODY OF THE PLAN. IF YOU NEED TO ADD SOMETHING HERE, MAKE A NOTE IN THE BODY OF THE PLAN AND ADD THE INFORMATION UNDER A CORRESPONDING HEADING HERE. FOR EXAMPLE: For a state-by-state breakdown of microgym distribution, see Appendix Section 1.
IF YOU NEED HELP, BOOK A FREE CALL HERE: TWO-BRAIN BUSINESS.
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