You thought about it, you dreamed about it, you saved for it and you finally bought everything you thought you needed for it – but did you prepare a gym business plan for your new venture as well?
According to Sean Hackney, owner of the $6.2 million Roaring Lion Energy Drink company, writing a business plan was “absolutely worthwhile”.
Gym Business Plan – Overthinking or Necessary?
According to a survey taken by over 800 would-be entrepreneurs, the Panel Study of Entrepreneurial Dynamics noted that you are actually 2.5 times more likely to start your fitness business if you have a gym business plan. This is because the act of actually getting into the nitty-gritty details of running a business actually gives you a reason to perform research and learn more about the fitness industry.
Let’s not also forget about the exponential growth in the Australian fitness industry – with franchises including Anytime Fitness growing rapidly in the past five years due to their appealing selling points, affordability and accessibility. This means that while “fitness” remains as a steady buzzword in 2015, the average customer is also looking for a business that believes in providing the best workout experience ever at the lowest cost to the customer. As newcomers to the fitness industry, it is important that you are well prepared in learning how to balance quality vs pricing in an increasingly demanding (but lucrative) business and a well thought-out gym business plan can help you achieve this.
An Overview of the Gym Business Plan
Your gym business plan should be succinct and concise on how you plan to reap profits from this business (running a gym could be your passion, but it is ultimately your source of income). Ideally, the gym business plan should fit less than 5 pages and contain:
- An executive summary
- Your marketing plan
- Description of your management team
- Financial projections (income, cash-flow and balance sheet)
If your gym business plan is in PowerPoint format, ensure that it is fewer than 20 slides with fewer than 8 lines per slide (and it should be colourful to make your presentation fun!).
Even if you are leveraging on your gym business plan to gain more investors, make sure that you keep your spreadsheets to a minimal and that the numbers are easily explainable. Seasoned investors are now wise enough to know that 99% of spreadsheets are made of guesswork, so stick to your strengths instead. When in doubt, interview a potential client on what they’re looking for in a gym and make sure that your gym business plan reflects these intentions.
Remember that the final goal of your gym business plan is to make money and enjoy a healthy cash flow – and it so happens to be something that Ezypay is especially good at, with a 99.5% collection rate across 5 countries (and counting!) Our cloud-based software, iconnect360 is also Australia’s Best Cloud Product of 2014 and is designed specifically to make membership management in gyms a breeze. Please contact our sales staff today for a free walkthrough and be prepared to be impressed.
Are you a gym owner/manger or aspiring to become one? In your gym business plan, you need to know who your target audience is and what they want, and what better way to find out what they want than to ask them? That’s exactly what Ezypay did in the Ultimate Guide to the Fitness Industry Survey. This free survey covers everything you need to know about the fitness industry including membership growth trends, effective marketing strategies and more.