FITNESS STUDIO BUSINESS PLAN
Every business requires to have a well structured and written business plan. Whether it needs to show it to investors, apply for bank funding, or for the internal direction of the business – A business plan is a vital step for the success of any organization.
Grand Business Plans suggests that a business plan should contain the following pieces or main headings.
Executive summary —
A summary of the entire business plan which discusses the purpose of a business plan, market opportunity, details or description about the product and services, a summary of financials, etc. In nutshell, it talks about the elements of below headings but in a summary form and in one para covering each important bit.
Business description —
Describes what does the business do.
Market analysis –
Details about the industry such as the Fitness industry in Ireland, its competitors, and new trends.
Company and Founders/Promoters —
Describe who will run the fitness studio. Their profile and experience.
Detail about the Fitness Studio offerings — the services Business studio offers.
Marketing and sales —
Detail how the business will market and sell to fitness enthusiasts.
Funding request —
What amount of money is needed to set up and grow over the next 3-5 years.
Financial Forecasts —
Supply information like Profit and loss account, balance sheets, Cash flow statements, etc of the fitness studio. Appendix- Optional.
The undersigned reader acknowledges that the information provided in this business plan is confidential; therefore, the reader agrees not to disclose it without the express written permission of the Friendly Instructor.
It is acknowledged by the reader that information to be furnished in this business plan is in all respects confidential in nature, other than information that is in the public domain through other means, and that any disclosure or use of this confidential information by the reader may cause serious harm or damage to the company/Business.
Upon request, this document is to be immediately returned to Friendly Instructor.
Name: Friendly Instructor
The purpose of this Business Plan is to present the funders with details about expanding fitness classes business being operated from a place in Ireland. Business is founded by Friendly Instructor - a fitness enthusiast, a qualified aerobics & fitness instructor. This plan also includes chapters on the Business, fitness classes offered, market focus and forecasts, Competitor analysis, founder and a detailed financial plan.
Business is formed as Fitness Ireland. The concept is not simple fitness classes, but to create joy, enjoyment, and a lot of fun. Until now, the business has been operated by renting various spaces to conduct classes. Now, it gains popularity and increases in numbers and space constraints, that founder has decided to set up a proper studio where regular classes can be conducted. For this reason, the business seeks a loan or grant of 6,000 Euro to work on the newly rented premises.
The founder is the principal strength of the business who has designed programs for people of all shapes and sizes, from the school children to the young population. This is a fitness program that is, by design, broad, general, and inclusive.
The business operates as a sole trader business in the County of Ireland.
Many gyms focus on moving heavy or moving fast, but at Fitness Ireland we believe that moving well is just as important, and emphasizes this in our programming and through our dedicated Movement and Mobility classes.
The business provides the very best coaching through Strength and Conditioning classes and Personal Training sessions, suitable for anyone from a fitness novice to an athlete. Our knowledge and holistic approach are geared up to pushing clients to new heights in their training and fitness needs.
The Irish Fitness and wellness industry have steadily grown over the last 20 years as more and more people integrate healthier movement choices into healthier lifestyles. With steady growth globally and data showing Europe as having the biggest fitness market in the world, with a value of €27 billion, this trend is expected to continue in the coming years.
Fitness Ireland has a sound marketing plan directed at identified markets. Facebook page has an engaged audience of the business. A viable market, good promotion, and an excellent product backed up by the sound and experienced founder will go a long way to assuring the success of this Fitness Business.
Our vision is to be the premier aerobic fitness facility providing innovative, collaborative programming centered on the whole-health and well-being of our community and our region. We will be known for exceptional member experience, with the highest quality fitness services.
- Create a fitness studio with a warm, supportive atmosphere, which is based on satisfying customers.
- Provide fitness training for students at all levels of dance, from beginner to advanced.
1.3 FINANCIAL FORECAST
Business has existing customers but aims to acquire more customers which will generate more revenue. Recurring revenue is a critical part of the business model. The company will be cash flow positive in the first year.
Careful and conservative projections anticipate the following results.
|Year 1||Year 2||Year 3|
|Average Profit per Month||1,516||2,286||3,122|
|Net Profit %||45%||55%||62%|
1.4 FUNDS REQUIRED & USE
Business is seeking XXX through a loan or government grant that will be used for setting up a studio and refurbishment needs of the new leased facility. It already has invested in the equipment however small funds will be used to buy additional equipment and for marketing expenses.
Fitness Ireland provides individuals the opportunity to exceed their fitness expectations. This is delivered through expert coaching, high-quality equipment, convenient scheduling and exceptional exercise programs.
When a person exercises in a group, has fun and uses everyday functional movements; he or she is far more likely to exercise more often, eat better, have less injuries and lose weight while gaining muscle mass. Our program is providing all of the elements necessary for participants to achieve their fitness goals.
One-on-one coaching & group coaching are the main sources of revenue.
2.1 PROMOTERS & SHAREHOLDERS
The Founder has set up this business. She is an expert in fitness and has developed great relationships with customers and wants to build a large fitness studio for Fitness classes she specializes in.
The business has appointed Expert Consulting to deal with tax and accounting affairs of the business.
2.3 LEGAL STATUS
Business is formed as a sole trader business under the laws of Ireland.
2.4 MAIN PRODUCTS & SERVICES
Fitness Ireland provides individuals the opportunity to exceed their fitness expectations. This is delivered through expert coaching, high-quality equipment, convenient scheduling, and exceptional exercise programs.
When a person exercises in a group, has fun and uses everyday functional movements; he or she is far more likely to exercise more often, eat better, have fewer injuries, and lose weight while gaining muscle mass. Our program provides all of the elements necessary for participants to achieve their fitness goals.
This section of the analysis will detail the economic climate, the Fitness industry, the customer profile, and the challenges that the business will face as it progresses through its operations. Presently the economic market condition in Ireland is moderate.
The structure of the Irish health and fitness industry is evolving to better reflect consumer preferences. The market for fitness training reflects the demographics and standard of living in much the same way that the major gyms and personal training facilities are segmented. In general, Fitness Ireland attracts adults in the 30 to 60-year-old range, who either live or work in the area. It also attracts school kids to be healthy and fit. Of course, Fitness Ireland will appeal to many persons beyond this group, but this is our strongest market segment.
With consumers increasingly preoccupied with their physical health and well-being, the Irish fitness industry is enjoying a golden age – but the Irish market still has some distance to go when it comes to reaching the same heights as our gym-fanatic neighbors. The figures for Ireland showed that some 504,000 people were members of 720 health and fitness clubs in 2018, generating sales of €281 million. With the equivalent of 10.4% of the population belonging to a club, the rate of market penetration is low compared with Sweden’s rate of 21.6% or the Netherlands’ 17.1% – countries with high urbanization rates and dominated by large, standalone operators.
3.1 PESTLE ANALYSIS
* Good political conditions for business, lesser corruption, economic freedom, and taxation rates are positive political factors for any business.
* Government policies regarding fitnesss sector are favourable and any economic activity which is encouraged. Business offers Fitness classes that will fill the market needs of market and will provide a better price choice for people to stay healthy and fit.
- Irish Economy has bounced back after recession. However, Covid 19 has caused multiple challenges and he fact business remained closed for many months; it has affected the purchasing power of people.
- Fitness is considered as a life style in Ireland.
- Developments in Accessories for Fitness.
Digitalisation and rapidly changing customer expectations are transforming the consumer goods and leisure sectors. Amid this, the Irish health and fitness industry is rapidly shifting its footing to make the most of this opportunity.
3.2 SWOT ANALYSIS
Although Fitness Ireland thinks to have significant advantages over competitors and many opportunities to exploit to develop and to write a business success case, there are also some potential risks and threat that should be considered in managing the business
Main elements of SWOT analysis allow appreciating the degree of these different points:
• Top class facilities: Fitness Ireland will create state of the art facilities such as a spacious place, industry certified equipment and quality trainers.
• Capital: The founder has already invested in the equipment. Facility is an infrastructure-rich operation and thus highly capital intensive.
• Innovative and appealing programs for fitness
• Dedicated & Experienced Founder.
• Business exterior is clean and tidy.
• Relatively easy entry and low capital outlay.
• Need time to improve brand awareness Fitness centre will use marketing strategies to overcome that.
|• Rise in trends to smart fitness increases the attraction to the business.||
• Limitation and rise of competitors.
• People change of behaviour and reduction of
• interest for the type of exercises they chose
• for their fitness.
• Just like any other business, one of the major threats that we are likely going to face is economic down turn as well the risk of non-recovery of the invested capital amount. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new Fitness CentrePet or supper market that retail same products like us in same location where ours is located. We are not ruling out the fact that unfavourable government policy can also pose a threat to our business.
3.3 COMFITNESSITOR ANALYSIS
There are large numbers of small to medium-sized health gyms and studios. The business has secured customers in Monastravin Area and people from surrounding towns.
3.4 COMPETITIVE ADVANTAGE
Customer service, knowledgeable founder, first-class equipment, and high-end facilities differentiate our business.
3.5 TARGET MARKET
Our main targets are:
Fitness enthusiasts- Could be people of all ages
3.6 TOTAL MARKET VALUATION
Revenue in the Fitness segment is projected to reach XXX in 2020. Revenue is expected to show an annual growth rate (CAGR 2020-2024) of XX%, resulting in a projected market volume of XX by 2024. The market’s largest segment is Wearables with a projected market volume of XX in 2025.
3.7 MARKET TRENDS
- Fitness centers began to change with the arrival of more advanced equipment, an assortment of health and toning classes, nutrition advice, affordable personal training, and top-notch coffee machines.
- This change was also driven by the arrival of women in large numbers – athletic pioneers bringing a new gender dimension into these palaces of body reconstruction.
- The growth in popularity of gyms and fitness centers also found serious traction with a new generation seeking an alternative to the pub.
- Wearable devices such as the Fitbit and smartphones are providing biometric health statistics at the touch of a button.
- Digital information is affecting healthy decisions about exercise, nutrition, and maintaining good mental wellbeing.
- The market continues to expand with operators such as Studio Fitness, Energie, Anytime Fitness, FlyeFit, and Raw only some of the firms opening new outlets.
Business plans to develop a strong reputation as a prestigious Fitness center in Kildare. Joanna is certain that it will achieve strong sales that will continue to grow .
4.1 MARKET STRATEGY
Business understands the importance of marketing and will pursue an integrated marketing effort that will encompass both traditional media such as local newspapers and contemporary media such as websites and social media. Using an integrated marketing communication business will align its image in the mind of the target consumer without creating any confusion. All the tools of marketing will be utilized in an appropriate proportion sending out a similar and well-defined message regarding the services.
Fit & Joy plans to advertise its new facility through brochures and targeting the public locations and giving them the material to read and publicity for new fitness center opening in the area.
Business plans to develop a strong reputation as a prestigious Fitness center in Kildare. Joanna is certain that it will achieve strong sales that will continue to grow.
4.2 MARKET POSITIONING
The business will be located in a prominent location in Ireland.
The founder has 5 years of industry experience in Fitness. Fitness Ireland will allow marketing and promotional material to reflect the offering that it makes to its consumers.
4.3 SALES STRATEGY
Fitness Ireland will adopt certain strategies to attract customers. It will engage with local Fitness societies and communities. The business will also distribute brochures and leaflets to local businesses and homes.
4.4 SOCIAL MEDIA MARKETING/WEBSITE/SEO & ONLINE BLOGGING
Social media will be our hub for connecting with customers in order to develop personalized relationships and to keep them involved with constant sale promotions plus introducing them to our new offers. Here again, the power of word of mouth will be utilized and people will be convinced via the testimonials our business will receive from the satisfied consumers.
We intend to have a very strong online presence utilizing sites used by locals and visitors such as Facebook, and Health fitness websites.
The website will host all the information about Fitness programs and will be able to connect. Consumers like to explore the Internet and connecting with fitness instructors and studios. The website depicts the class of our fitness center and increases our customer base.
Our customers will share their experiences and we enjoy high ranking reviews in different Fitness Listing websites.
To create trust among the customers and to communicate with them the quality of our fitness studio it is imperative to generate a word of mouth through a comprehensive online presence. The extensive database of online SEO articles will educate our customers about our offerings and depiction of the atmosphere through images of the studio and exercise groups. In addition to educating them, they will be given the option to talk in the forum and share their views, through this a referent power can be used of our satisfied consumer to target new consumers.
4.5 PRINT MEDIA
The marketing campaign will be extensively advertised by dropping leaflets in the local area. The advertising will be regular. The company will also place ads in several publications linked to the Fitness community.
The competitive prices are used to keep our customers engaged and enrolled for new students.
Fitness Ireland is run by an experienced founder.
6.1 DETAILS OF KEY EMPLOYEES
Fitness Ireland is run by an experienced founder.
Role of FOUNDER
- Responsible for providing direction of the Facility.
- Creates, communicates, and implements his vision, mission, and overall direction – i.e. leading the development and implementation of the overall strategy of building a top-class Fitness studio.
- Responsible for signing cheques and documents on behalf of the business
- Evaluates the success of the business
- Reports and communicates with Bank.
6.1 BUSINESS ASSETS
The business has already invested in the past year on Equipment and needs capital for the refurbishment of premises.
7.1 FINANCIAL INFORMATION
- Sales levels
In the first year more cautious estimate was drawn to calculations.
No major overheads are expected except for rent and light and heat of business.
7.3 FUNDING REQUIREMENTS
|Sources of Funding||Application of Funding|
• Bank Loans
• Fixtures and fittings – Refurbishment.
• Staff/Working Capital