How to Write a Fitness Center or Personal Training Studio Business Plan
The fitness center and personal training studio industry have been growing quite impressively over the last several years, which has led to an increased demand for personal training studio business plans, fitness center business plan templates, and personal training studio proforma financial projections.
There are several reasons why entrepreneurs are investing money in startup fitness centers and personal training Studios' business plans. First, fitness centers and personal trainers have become go-to entities for personal fitness as compared to purchasing home gyms. As community members continually rely upon fitness centers and personal trainers, the demand for their services will grow in tandem. Further, households throughout the US are continually embracing healthier living. Our business plan writer has found that this is evident due to the immense popularity of health food stores, healthy menu options at popular restaurants, and other telltale signs. With the growing trend for healthier living also comes the demand for physical fitness and training. Thus, again, the importance of health centers and personal trainers. No matter what reason people embrace using fitness centers and personal trainers, the demand for the services is self-evident. From this, having a well-prepared fitness center business plan or fitness center business plan template is an important competitive tool for industry participants. As a result, our fitness center business plan writer has come up with some tips and tricks the business owners may use when writing their own business plan or business plan template (11/21).
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Executive Summary for a Fitness Center or Personal Training Studio Business Plan.
The executive summary section of a fitness center should start off by identifying the problem the organization will solve. Based on our research, the main problem that a fitness center solves is that its services are aligned with healthy living, which, again, is a trending concept in the US right now. By showing customers that your business is aligned with their personal needs and views, business owners are able to establish a foundation of trust. Because of this important cornerstone, starting off your executive summary section by examining this concept is an excellent practice.
In addition, when constructing a fitness center business plan template, especially for the executive summary, try including a personal story in the summarized owner section. A personal story may include the owners' struggle with weight loss, their passion for fitness, or educational achievements related to health and/or fitness. By demonstrating competence and experience in fitness and health, business owners are able to develop credibility and set a foundation for their passion related to the industry (7/21).
Company Information and Location.
The company information and location section of a personal fitness studio and fitness center business plan should start off with introducing the company and providing basic information about the firm such as the organization’s name, location, and core competencies of the firm like personal training services or fitness classes. From this foundation, our fitness center business plan writer recommends expanding upon why the location was selected. In some instances, fitness centers are located near housing subdivisions and apartments. This strategy may be aligned with an organization’s desire to provide a facility near their target market homes. In other situations, personal fitness studio owners may select a location near hospitals and or office parks. This particular strategy is aligned with targeting workers at these locations. Regardless of the strategic thoughts and ideas behind the location, make sure to state them and support your thought process with a follow-up discussion related to the strategic advantages of the location (1/22).
Product Description and Competitive Advantages
An important segment in a fitness center business plan that needs quite a bit of attention is the competitive advantage section. The competitive advantage section of the fitness center business plan should highlight what the organization does better or specializes in as compared to other fitness centers in the area. For example, some fitness centers specialize in personal training. If this is your core competency, then make sure to provide in-depth discussions as to the types of personal training offered, the number of trainers, and any specialized training courses utilized at the facility. In following this practice, the fitness center business plan writer is able to quickly and effectively differentiate the organization's fitness services from that of area competitors (2/22).
Target Market for a Fitness Center or Personal Training Studio Business
The target market section of the fitness center or personal training studio business plan may target various demographics based on the company’s business model. For example, a fitness center charging a relatively low monthly fee may target residents within a 10-mile radius of the business. In contrast, a personal training studio that offers industry-leading personal training services may charge a premium for services. From this, the target markets for the organization may shift to executives and healthcare providers. Regardless of the target market for your fitness center organization, make sure to provide specific details about the target market and justifications for selecting the demographic.
Industry research for a Fitness Center Business Plan or Template
The industry research section for a fitness center or personal training studio business plan will be similar. This is because both entities fall within the umbrella of fitness center businesses. Important industry statistics that should be included in either type of business plan should focus on membership growth, industry revenue growth, important amenities, and other statistics in the industry. For example, Statista has found that the fitness center in the US exceeded $96 billion in 2019 for the first time ever. Also, LA fitness is the industry leader, with revenues exceeding $2 billion. Finally, the main revenue generator for a fitness center or personal training studio is our membership fees. Finally, based on industry research, approximately 40% of the US population has a gym membership. By providing these facts and more, fitness center business owners are able to show that they understand the current state of their industry as well as that they have their thumb on the pulse of industry trends.
Owner and Management Section
The owner and management section of this type of business plan often starts with a personal statement from the fitness center business owner. This statement often discusses the business owner's passion for fitness OR the challenges faced in their own personal health situation. By adding a personal touch to the management section, the business owner is able to give it a personal feel while showing that their passions or struggles are similar to their current or prospective members. By connecting with members this way, not only are business owners able to increase sales but also better retain members in the long term.
Funding Request for a Fitness Center or Personal Training Studio Business Plan
The funding request section for this type of business plan should follow a specific strategy. First, a fitness center business owner needs to list all of their startup costs. Popular startup costs for a fitness center or personal training studio may include location buildout, operating capital, fitness center equipment, security equipment, deposits for electric and other utilities, and training funds needed for new hires. Once the startup cost is detailed and calculated, the business owner then needs to project their working capital needs for the next several months. Working capital needs for a fitness center may include covering operating costs until membership dues are paid, the money needed for emergency repairs to fitness equipment, and funds available for paying employees. After all of the funding is documented for the business, then the business owner should deduct how much money they are personally investing in the business. The difference between the total funding needed and equity investments will be the dollar amount used in the funding request.
Financials and Financial Projections for a Personal Training Studio.
As noted previously, the main revenue generators for a fitness center or personal training studio are membership fees. Because of the importance of membership fees, this is the main revenue generator that should be shown on the financial statement. Once your membership fees are calculated, deduct variable costs, which may include credit card processing fees. Once this is done, then the business owner may deduct fixed monthly costs like labor, rent, and equipment repair fees from the gross profits. This leaves the business owner with a projected net profit. Once a net profit for the month is calculated, then apply monthly growth rates to the membership fees as well as any variable costs assigned. The end result is a basic profit and loss statement for the year.
Hopefully, these insightful tips and tricks for writing a business plan were helpful. As always, if you need help with a business plan or financial projections, just send us an email or give us a call.
Author: Paul Borosky, Doctoral Candidate, MBA., Author