A business plan is the road map of a new or existing gym business. Here, entrepreneurs detail their objectives, including target customers, competitive advantage, equipment lease proposals, or how they will charge for the services. The entrepreneur wants a clear direction of what, when, and how to run the business. They use the following steps to come up with a concrete gym business plan.
The business plan will have the following sections.
The Executive Summary
This first part includes a quick pitch to investors summarizing the business idea. It aims to capture the fund managers’ interest or justify why the business owner thinks their concepts are viable. In turn, this section is prepared last.
The Market Research and Analysis
The market research gives insight into the viability of the business idea. It includes a SWOT analysis and a feasibility study for the proposed gym location. The entrepreneur uses the findings of the target market demographics, customer expectations, or the logistics of running the workout sessions to come up with factual objectives, marketing, and financial projections.
Products and Services
A gym entails providing coaching lessons, rent of gym equipment, or sale of workout videos. This section lists all the proposed products and services. From here, the entrepreneur can come up with a marketing plan and a financial plan.
Who will run the gym? What attributes do they have that are an asset to the business? Are there plans to form any strategic partnerships with a fitness coach, manufacturer, or sports icon? This section lays out the organizational structure.
The Marketing Plan
The marketing plan details the proposed income streams and marketing strategies to achieve them. They include offering monthly subscriptions, private coaching, and running a wellness and fitness program. The marketing plan comes up with marketing strategies that will enrich the customer experience.
The Financial Plan
The financial plan converts the ideas into cash. It includes the startup expenses budget, the sales budget, an income and expenditure statement, a balance sheet, and a cash flow statement. In turn, it gives a clearer picture of areas that do not add up, are over-ambitious, or underutilized.
Finally, entrepreneurs have to break the business plan into small achievable goals. They set a time frame to get licenses, assets, and marketing campaigns. Plus, they will have to file tax returns at the end of each financial year. Hence, keeping tabs on all the paperwork is crucial.