Create the strategic plan for your fitness center from scratch

 

Why is it important to make a business plan?

If you are a trainer, becoming your fitness center owner implies a great change and a great responsibility. And boy, running a fitness center is one of those jobs where you have to put your heart and soul into it.

So, the first thing to understand is that there are two types of people. The entrepreneurial and the cautious. Which one are you? Some people like to take risks and are willing to win big but lose big.

Do you dream of becoming the owner of your fitness center? Then, pay attention to these 7 signs! They will tell you if you are the right one for the job.

A serious mistake that many fitness center owners are just starting their business is not making a business plan for their fitness center.

If you haven't done yours yet, you have to know that the consequence of not doing it is managing your company "in the dark." This means that you will manage a business without knowing the income you will need to pay for everything that makes your fitness center work (rent, salaries, materials, electricity costs, internet, heating, accounting, management, etc.)

Making a business plan is not as complicated as it sounds. You may hire a business plan consultant for a better business plan. However, before opening your premises, you must be clear about these calculations and ideas.

Skipping this first step or shortening it is not recommended at all. Some entrepreneurs believe that just by looking at social networks or walking around the competitor's premises, they will obtain valid results. Unfortunately, it is quite the opposite. The only thing you will achieve is to have a vague idea of ​​the market in which your business is inserted.

But don't worry. We've created a step-by-step guide to ensure a foolproof process from start to finish, from financing to promotion and scalability of your new business. 

Step 1: Define your business identity.

The first step is to make an executive summary.

In it, you will expose all the general details of the business plan of your fitness center.

For now, you'll put aside the numbers, data, charts, mission statements, and other details for later.

The executive summary is the first insight that people (and future members) will have about your fitness center. That's why it should be a few paragraphs long and read at a glance.

Your summary must contain 5 things:

1- What is your business? (e.g., yoga studio, boxing center, etc.). If CrossFit is your thing, here you have the definitive guide for the design of your Crossfit box CrossFit

2- A summary of your business model. That is the reason why you are going to start this business.

3- What market demand will your fitness business satisfy? Or, in other words... who will be your target audience?

4- Your value proposition (purpose, mission, values)

5- Your long-term vision (aspirations)

Although the executive summary is a formal document, this does not mean that you cannot put all your passion into it. Write with emotion!

Step 2: Establish rules of coexistence. 

A fitness center involves teamwork, so you must establish the rules of coexistence with your staff and clients. This will save you a few conflicts in the fitness center in the future.

Whether you opt for a traditional top-down business structure or a flat hierarchy, it's essential to clarify people's roles in your fitness center business plan.

Think about the positions you will need to fill and how these people will help the success of your fitness center. Then, create an organizational chart of the management structure of your fitness center and define the employees and their positions.

Additionally, it's wise to create resume-style descriptions of your key staff members and showcase their contributions to your business.

Step 3: Carry out your market study. 

Understanding the needs of your market is essential to launch a fitness center business plan. This will indicate your potential for success in a certain market and help you make a business decision, i.e., what age group, gender or type of sport you want to target.

The best advice you can receive when doing your market research is: to do the math.

Many market studies include a SWOT analysis. This serves to identify opportunities and threats, strengths and weaknesses of your fitness center. However, in the end, the numbers are the best guide to guide the strategy of your sports center.

A common mistake is not making your accounts and using the competitions. This happens, for example, when you "copy and paste" another fitness center's price instead of calculating your own. That is why it is key to make your viability plan. From it, you will know, for example, that you will need x clients for your fitness center to be profitable. So, you will fight to get those x clients who pay x fee to be able to pay x rental price, to pay x amount of expenses and to have x profit. Of course, you must have these calculations very clear.

Step 4: Design your promotion and marketing strategy 

What makes your fitness center different from all the others? This can be anything from the price point, the range of equipment you offer, and the special location.

At some point, you must ask yourself how to attract customers to your business. Alright, this is the time!

The answer? Learn what they think and what they need.

To achieve this, it is key to think about your fitness center's marketing.

What is the most effective strategy to identify your potential client and get him to choose you instead of the competition?

Fitness center marketing is nothing new in the fitness industry.

Every fitness center owner, in one way or another, implements a business strategy to increase revenue in their business.

For example, your fitness center's social networks are one of the most powerful communication channels. For example, 84% of fitness centers in Spain already have an Instagram profile as a marketing strategy to differentiate themselves from the competition.

But when it comes to customer acquisition, fitness center marketing is a broader business strategy. And it boils down to answering 3 questions:

1- Who is my potential client?

2- What are you looking for?

3- And how can I offer it to you?

Step 5: Prepare your facilities, equipment and services.

You may already have a location in mind, but regardless, you should know the size of your facility and the products and services you plan to fill it with.

This part of your fitness center's business model should include a general description of the elements related to your facilities, equipment and services.

You may daydream about a huge, gleaming facility as a fitness center owner. A place with room for multiple classes of 20 or more at once, lockers, and an endless row of aerobics machines.

But all this, although it is hard for you to believe it, can be much scarier than a dream.

Step 6: Create subscriptions. 

This is where you define how your members will pay for their subscriptions.

Your fitness center memberships not only serve to attract customers but are the DAILY SUPPORT of your business.

It is the most reliable and regular source of income, in addition to representing the best incentive for new members to visit your business more often.

For your client, membership is the best engagement ring you can give him as long as you know how to create them and offer them personalized.

In these cases, it is highly recommended to use fitness center management software in your business model. Not only because it will simplify day-to-day tasks but also because it will take your own customers' experience to another level.

Step 7: Onboard partners 

Living with your fitness center partner is not an easy task. Even being best friends, many business partnerships don't tend to last very long.

Possibly, for this reason, many trainers and fitness center owners prefer to set up their fitness center alone, even if that means DRASTICALLY REDUCING the initial investment and the chances of success.

Then there are those with dreams of setting up their fitness center but in need of an initial investor or a coach with leadership skills. They may or may not be best friends. The truth is that this is how one of the many stories of commercial companies in sports centers begins. Many achieve success, while others fall by the wayside. What will yours be? Learning to walk the path with your fitness center partner without dying trying is the point.    

Whether or not you do a business partnership, you must write your fitness center business plan from a professional point of view, as if you were applying for an investment from a bank or a partner.