Free Fitness Center and Gym Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
1.0 Executive Summary
The purpose of this business plan is to raise $250,000 for the development of a fitness center while showcasing the expected financials and operations over the next three years. The Fitness Center, Inc. (“the Company”) is a New York based corporation that will provide fitness equipment usage and training services to customers in its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
Management is seeking to develop a gym facility that will feature a number of standard fitness machines as well as services that compliment the needs of our customers. The business will primarily specialize in providing fitness services for people ranging from 14 to 80 years of age. The Company’s fitness and health services seek to develop the health of clients. Each of our fitness programs will be tailored to the needs of the individual based on their ability to handle certain fitness regimens, and their personal goals for physical development. The third section of the business plan will further describe the services offered by the Fitness Center.
1.2 The Financing
Mr. Doe is seeking to raise $250,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
Management’s mission is to provide clients with a state of the art fitness center facility that they can use for maintaining their health and improving their look.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the fitness and training industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Fitness Center, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Fitness Center requires $250,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Fitness Center, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Fitness Center. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the gym and training services offered by the Fitness Center.
3.1 Gym Membership
The Company will offer a full service gym, complete with state of the art fitness equipment, showers, towel service, and many other amenities offered by fitness facilities. While the Fitness Center will offer equipment for consumer use, our primary goal is to develop relationships with our clients so that we can provide them with ongoing support for their physical fitness development needs.
3.2 Training Services
The Fitness Center will offer an assortment of options to get and stay in shape for people and athletes interested in personal one on one sessions, or accessing their own online trainer and coach. They will receive a customized exercise program customized to their individual fitness level, implementing various components including strength training, weight management, cardiovascular training, flexibility training, and optional nutritional programs.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the fitness industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2009, at which point the economy will begin a prolonged recovery period. However, Fitness Center operate with great economic stability as people will continue to want to stay in shape and remain healthy despite deleterious changes in the general economy.
4.2 Industry Analysis
There are over 16,400 fitness establishments in the United States. These businesses produce over $7 billon dollars a year in gross receipts. Additionally, the business employs over 250,000 people, and generates payroll figures of $2.45 billion dollars a year. The industry has experienced a tremendous rate of growth over the last ten years. The fitness industry from 1992 to 1997 experienced growth of more than 18% over the five year period. This industry is one of the fastest growing industries in the United States. Additionally, the economic tastes of Americans have changed significantly over the last five years as the overall wealth of the country has grown. As Americans now have more access to capital and an increased borrowing capacity, their ability to spend money on brand name and luxury items has also increased. High end physical fitness compliments the expanded purchasing capacity of Americans. More and more Americans are seeking to improve their physical fitness through non-medical means. However, the growth rate of this industry has slowed with the corresponding recession in the United Stats. More normalized growth (with more people signing up for gym memberships) is expected to resume towards the end of 2009.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Fitness Center intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Fitness Center.
5.1 Marketing Objectives
• Establish relationships with physical trainers within the targeted market.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Fitness Center to easily target men and women within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The Fitness Center will also use an internet based strategy. This is very important as many people seeking local services, such as gyms, now the Internet to conduct their preliminary searches. Mr. Doe will register the Fitness Center with online portals so that potential customers can easily reach the Fitness Center business. The Company will also develop its own online website. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the gym and fitness services that the Company is selling.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Fitness Center will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $250,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. However, fitness services are demanded by individuals due to the simple fact that people want to remain healthy and in shape. As such, only a severe economic downturn would result in a decline in revenues.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis