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Gym business plan: a checklist with templates & examples

In this article, you'll find a checklist of everything you need to know to create a business plan for your gym or fitness business.

If you've recently discovered an ambition to start a gym , or this has been your dream for years, we've got you covered!

The first step in your journey is to create a gym business plan. This will include understanding your business's structure, determining your target market and what sets you apart from other gyms (your unique selling point), forecasting future finances, and any further details about your venture.

Your gym business plan is the key to your success. It will help you make better decisions and attract potential investors. Creating a business plan is ongoing; it's not something you do once and then forget about. Your business plan should be flexible and adapt as you move forward. 

You have to consider many elements to ensure your gym will succeed. All stages of your business plan are critical. In this article, we'll be doing a deep dive into understanding the core essentials of creating a fitness business plan.

A boxing gym owner holding a clipboard, standing in front of punching bags.

What is a gym business plan? 

A gym business plan is a document that informs the reader about your company and where it's headed. In other words, it answers essential questions such as:

  • How does your business work?
  • How are you going to succeed?
  • What steps do you need to take to succeed?

According to research, entrepreneurs who write formal business plans are more likely to be successful . 

This is especially true for business owners seeking external financial support. A formal business plan can help new businesses by providing a clear focus for their ideas.

Why it’s important to have a business plan for your gym? 

Simply put, your gym business plan is an organized and detailed process that provides a roadmap for your business. If someone reads it – like a potential investor, for example – they should be able to understand how you expect the gym to progress and succeed over time.

Plus, putting together a business plan with detailed description forces you to take a critical look at your operation as it currently stands and identify room for improvement or new areas of opportunity altogether.

Depending on where your business is located, a well-crafted business plan can serve multiple purposes.

Keep reading for even more reasons you need a business plan from day one!

Two people working in front of a laptop.

Taking advantage of a steadily growing industry

The gym industry is booming, allowing gyms to capitalize on this growth. In the US alone, over 87 million people regularly attend the gym and spend billions of dollars annually on membership fees.

And according to projections, the global gym market is expected to reach 434 billion USD by 2028 – a 171% increase from 2021! This steady growth provides room for gym owners to get in on the action and reap the benefits.

By having a gym business plan that considers the health & fitness industry as a whole, you'll be able to capitalize on this growth.

Ensures your business idea is feasible 

If you're considering starting a fitness business, know it will be complex. You have a fantastic idea and think it could take off--but how can you test that theory without launching the business? 

This is where a business plan comes in handy. By working through your concept and creating a well-rounded plan of action, you'll be able to figure out key details like numbers, market trends, and what your competition is doing and save yourself loads of time down the line.

It helps to bring in investors and secure funding 

To secure funding for your gym business from investors, you need a comprehensive business plan. This document helps startup businesses obtain the initial capital they need and provides established companies with funds for expansion.

Would-be contributors usually request substantiated data— such as numbers backed up by facts and figures—before deciding whether or not to invest in a project.

If you don't have a business plan, chances are slim that you'll receive money from sources like investors, banks, or other financial organizations outside your company.

Set and reach goals, both big and small 

Having long-term and short-term goals is a great start, but it's time to take the next step. A successful business plan will contain specific tactics on how you plan to achieve your objectives. 

This might be through your business model, acquiring equipment, hiring new talent, or marketing campaigns.

A successful business needs a clear plan to achieve its goals. Breaking down important goals into smaller, more manageable pieces would be best. 

And remember-- as your business changes and grows over time, so should your plan. Keep it updated regularly. 

Business planning is no longer a daunting task

A business plan is a vital tool for new and established businesses. It provides direction and helps to set the foundation for a successful start. 

By budgeting, analyzing your market, and setting out your goals and strategies, you can make more informed decisions about how to proceed. This process also makes it easier to track your progress over time and assess whether or not you are on track.

Something to consider before creating a gym business plan

Consider the cost of starting a gym. There are many potential expenses, such as equipment, personal trainers, class instructors, insurance policies, property fees, etc.

Also, consider how much time you are willing to invest in this venture – especially during the beginning stages when there is likely to be a lot of work involved in getting everything up and running smoothly.

It can be challenging to maintain a good work/life balance when starting any business; it will probably require working additional hours outside of your usual schedule.

Money and time are essential, but there are other things you need to be successful. 

People skills, marketing know-how, and financial smarts are essential if you want to succeed in the gym business world. It's not going to be easy, but it will be worth it if this is your passion. A solid plan is the first step toward making your dream a reality.

The 11 key elements of a detailed gym business plan

Before you develop your business plan, think about where you are and where you want to see yourself. Keep this vision in mind, as it will help guide you through writing your business plan. There will be countless opportunities wherein consulting your business plan will assist you in making a decision.

To create an effective health club business plan, you will need extensive research on your fitness industry, competitors, and future finances. 

Following these 11 steps, you can build an excellent gym business plan that covers all aspects of your health club.

Step 1: Executive summary

Your executive summary needs to be clear and concise while also grabbing attention. What you want readers to know is:

  • Your mission/purpose
  • How you'll achieve success (What will make you a success story?)

And finally, your vision for the future. Though it may seem tempting to hurry through this section because it is shorter than other parts of the business plan, don't rush! 

This is your chance to shine and explain what makes your company special. Don't worry if you feel like you have more to say about your goals and vision. You can expand on these topics in your company overview.

Step 2: Company overview

Your company overview is where you get to sell your gym and its potential. Build on your executive summary's vision and mission statement, delving deeper into what makes your gym unique. 

Think of your vision statement as a tagline for your future website. When outlining the purpose of your gym, which audience it will cater to, and how you plan to achieve business goals, also consider including the following: 

Your personal mission statement for the business- i.e., what outcome do you hope to see?

Then, give your readers some information on your background:

  • What have you done in the past?
  • Have you had any other businesses?
  • What is your current status?

This is helpful for investors and partners to know so they can understand where you've been and where you're going. The more they know about you, the more trust they'll have in you.

Step 3: Services and amenities

Outline your strategy in detail: what services you'll offer and how you will develop new offerings. This includes if you need to hire someone or build a facility, such as a spa or a studio. 

This information will help you realize when or where your business requires more funding and extra staff.

By describing your products and services, you can gain valuable insights into your gym's size. Test your vision to determine if you have the necessary funding for these assets. If not, consider how you might acquire the required financing.

A picture of a well-equipped gym.

Some potential products you could invest in are: 

  • Gym equipment like treadmills and rowing machines 
  • Specialist equipment to cater to different types of gym-goers, such as bodybuilders 
  • Food and drinks like energy drinks or healthy foods 

And services like: 

  • Personal training sessions 
  • Group classes like yoga, spinning, or body pump 
  • Lockers for storing belongings while working out 
  • Spa amenities like saunas or massages 
  • A swimming pool 
  • Physiotherapy

Furthermore, thinking about increasing your market share is a significant next step. You could start by offering pro bono services at local workplaces and schools, eventually introducing a fee.

This way, you can attract larger customers while still providing value.

When creating a business plan - be it for a gym or something else entirely - remember that its purpose is to lay out your objectives easily for potential bankers, partners, employees, and investors.

Step 4: Management team

It is essential to consider the positions you'll need to fill and how these people can help your gym succeed. 

You should write a summary emphasizing their skills and management experience while incorporating what they will be responsible for and any incentives you plan on offering.

Furthermore, creating an employee ladder is vital to establish who or what each new hire will report to so your business can secure its success.

Step 5: Market research and marketing strategy

Marketing is a field where creativity can shine. It's all about identifying different groups of people who would buy your product, coming up with reasons why they should choose you over others, and figuring out ways to get more sales.

Learn more:

Gym marketing strategy

Gym promotion ideas

Gym membership pricing

Best gym features

Even if marketing your fitness business isn't your favorite thing, remember that your marketing strategy will help you lay out a plan for expansion if you do it right. Your first target should be to summarise what you found in your market research. Are you still stuck? 

Consider where you are situated, similar businesses nearby, and who makes up the community around you.

Define your target market here. It could be

  • Working professionals
  • Senior executives

Or a particular group, like cyclists. After that, try to understand why this specific demographic would join a gym – for example, are they looking for cardio?

After you have completed your market research, take some time to understand your target audience. Ask yourself the following questions:

  • How can I make this customer base loyal?
  • What makes my company unique?
  • What's the best membership package I can offer?
  • Is there a need for special equipment or offerings?

In your plan, identify and communicate what makes your business valuable and unique. 

This is called a Unique Selling Proposition (USP), and it will help instill confidence in potential investors that they are making a wise choice by investing in your company. 

Furthermore, detailing marketing strategies in this document provides peace of mind that future income streams are lined up and secure.

There are many marketing strategies you can use to grow your business, including:

  • Improving your services
  • Advertising and sponsorship
  • Loyalty plans and website promotions
  • Email marketing campaigns
  • Investing in new equipment or technology

Step 6: Competitor analysis - Understanding direct and indirect competitors

To do a competitor analysis, research businesses in your field that offer similar services. These are your direct competitors. 

You can mention indirect competitors, but this section is mainly for an in-depth look at businesses like yours. Depending on your business type, you could have brick-and-mortar and online rivals.

When investigating a competitor, these are some critical areas you'll want to focus on: 

  • Services and products they offer 
  • Target audience 
  • Pricing and business model 
  • Strengths and weaknesses

sensory gym business plan

Step 7: Create comprehensive financial projections

Starting a gym requires careful budgeting. Make sure you consider every possible purchase and estimate the cost of each item.

The following are key areas to cover when starting your business:

  • Lawyer fees
  • Recruiting expenses
  • Constructional endeavors
  • Exercise equipment for the workplace
  • Three months' worth of bills and other operational costs
  • An accounting software

It's time to be practical and ascertain how much money you will need to open your gym and make it thrive. This way, you'll get a better understanding of what falls within your budget and what will require additional funding.

Next, you need to prove to investors, stakeholders, and employees that you have a feasible plan for attaining ROI. 

Consider revenue streams such as classes, services provided, and product sales- anything that brings in money. Set down an estimate here based on research and expert opinion.

If you're looking for ways to make money, selling healthy food could be a great option. You could create your protein shakes or energy bars, for example. 

If you plan to sell food, ensure you stay up-to-date with food hygiene standards.

Step 8: Financial forecasting

Your sales forecast for your business's first, second, and third years should be detailed. Specifying the number of active members, you estimate for your first year would also be beneficial. Estimate using:

  • Unit sales per month
  • Any relevant past data
  • How purchases will be broken down (as specified in financial projections)

Step 9: Financial strategy

How can you use your fees in a way that will increase customer registration? For example, if all the other gyms in your area charge higher prices than average, this could be an opportunity to set your business apart by being financially conscious (lowering membership fees or having better offers than competitors).

Consider ways to show your appreciation for loyal customers, such as discounts or complimentary services.

Furthermore, if you're in the process of creating a gym and spa business plan, consider adding discounts for those who use both facilities. For example, many people would love to take advantage of the jacuzzi after working out.

Writing your pricing strategy down will help give you peace of mind about what's to come for your gym.

Step 10: Payment option

An easy and accessible payment system is crucial for any business, let alone a gym. To retain customers , ensure your payment processing is up-to-date and user-friendly. 

Let potential investors know what platform you're using or planning to use, so they can see that you're taking customer experience seriously. A positive buyer experience will encourage loyalty among your clientele.

Step 11: Funding

Make it clear where your business will obtain the extra startup capital it needs. 

This is a chance to be practical about your company. Can you realistically obtain the funding required to reach your targets? Or do you need to readjust your plan?

Below are some vital external resources that might provide the necessary funding:

  • Loans from friends or family members
  • Crowdfunding campaigns
  • Business partners or sponsors

If you are looking to gain investors, be sure to detail where the funding for your project will come from and how much of a return they can expect. You should also include any previous loan applications related to this venture here.

You're almost there!

Now it's time to put all the elements outlined above into a gym business plan. This plan will be a reference point when you need to make tough decisions, help secure investment, and show direction to new employees or partners.

A picture showing a planner and a pen.

Your next steps to successfully run your gym

Here's a personal checklist to help you ensure that you have everything covered before you open your gym. Use it as a reference point throughout the development process to ensure nothing is overlooked.

  • Write a business plan
  • Register business
  • Apply for a business license and permit
  • Open business bank accounts
  • Select an online payment platform
  • Obtain taxpayer's ID
  • Purchase insurance
  • Rent/purchase facility
  • Purchase/rent equipment
  • Secure funding
  • Recruit employees
  • Drafting contract documents along with any other legal documents required
  • Design company logo
  • Develop website
  • Write website content
  • Create social media accounts
  • Design leaflets & brochures
  • Organize branded uniforms
  • Launch party

Any business, no matter how big or small, comes with its fair share of challenges. However, the payoffs in the end always make it worth your while

Starting a gym can be an exciting and rewarding venture. However, it is important to ensure that you are well-prepared with all the necessary information before you open your gym. 

A comprehensive Gym Business Plan detailing the market research, financial projections and strategy, services and amenities, management team, and more should be developed to ensure success. 

Additionally, obtaining the necessary licenses, finding and hiring trainers, investing in the right equipment , and appealing to members with friendly incentives are all important steps.

Gym business plan template & examples

In addition, we've gathered a few of the gym business plan templates and examples below. These samples will provide you with suggested language for your own document as well as guidance on what to include.

Adam Fitness Centre

Grow think's template

PAWSitively Fit Club

Ecogym business plan

Capital Health and Fitness Club

Frequently asked questions on good gym business plan

How can i start my own gym business.

Follow these steps and understand gym business plans:

  • Choose your area/location
  • Develop a comprehensive business plan
  • Apply and obtain all necessary licenses
  • Find and hire certified trainers
  • Invest in the right equipment for your business
  • Appeal to members with friendly incentives

How do I write a business plan for a gym?

To write a gym business plan, you can implement the steps below:

  • Executive summary
  • Company overview
  • Services and amenities
  • Management team
  • Market research and marketing
  • Competitor analysis 
  • Financial projections
  • Financial forecasting
  • Financial strategy
  • Payment option

What type of gym is the most profitable?

Out of the gyms surveyed in November 2020, 69 percent of CrossFit gyms were profitable, while half of martial arts gyms reported being in the black.

Is owning a gym a good business?

Owning a gym can be profitable, but you will need more time to make yourself rich. To succeed in this industry, you must put in the effort.

Do gym owners make money?

According to ZipRecruiter, an American jobs marketplace, gym owners in the United States will earn an average of $69,472 annually as of June 2022.

Do gyms make a lot of money?

A gym that is managed efficiently and has a good mixture of members can generate quite a bit of money. For example, if a gym has 1,000 people paying $50 monthly, the gym could bring in $50,000 each month. And if the monthly expenses for the gym are $20,000 per month, the profit would be $30,000 per month.

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Gym Business Plan Template

Written by Dave Lavinsky

Gym Business Plan & Example

You’ve come to the right place to create a gym business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their gyms.

Gym Business Plan Example

Use the example below as a template to write a gym business plan.

Executive Summary

Business overview.

Steven’s Gym is a startup locally owned gym located in El Paso, Texas. Steven’s Gym will include various exercise equipment, strength training equipment, free weights, aerobic equipment, and plenty of cardio equipment. The gym will also offer HIIT group classes, spin classes, strength training instruction, and personal training.

Located in an up and coming, newly developed, and highly trafficked area of town, Steven’s Gym will attract both men and women ages 16 to 75+. There is something for everyone at Steven’s Gym, whether someone is just beginning their fitness journey or is a seasoned athlete and gymrat. The gym will have a welcoming atmosphere, experienced personal trainers, friendly staff, and frequently cleaned equipment and restrooms.

The membership options are affordable and will be offered on a month-to-month basis, a 6 or 12 month contract, or the ability to pay for an entire year upfront. Discounts will be offered to military, teachers, and healthcare workers.

Service Offering

The following are the services that Steven’s Gym will provide:

  • Strength training equipment
  • Cardio equipment
  • Free weights/dumbbells
  • Aerobic equipment
  • HIIT group classes
  • Strength training instruction

Customer Focus

Steven’s Gym will target all men and women ages 16 – 75+ who are interested in achieving and maintaining a healthy and active lifestyle. El Paso is a very diverse city that includes men and women from all walks of life. There are numerous blue collar individuals, white collar individuals, government employees, and military members as the local Army base is one of the largest in the country. Since Steven’s Gym will be very affordable, it will be able to attract people from all walks of life.

Management Team

Steven will manage the day-to-day tasks of running the gym. Steven will hire a gym manager to manage membership and three trainers. Steven will outsource a local CPA to handle payroll, accounting, and tax payments. He will also outsource a local advertising company to develop the gym’s logo, branding, photography, social media accounts, website, and billboard design.

Success Factors

Steven’s Gym will be able to achieve success by offering the following competitive advantages:

  • Large, clean, and spacious fitness center that has all the necessary equipment for their fitness routine.
  • Knowledgeable and friendly staff of trainers.
  • Best value for membership pricing. The membership pricing options are affordable and offer military, teacher, and healthcare employee discounts.
  • Convenient hours of operation.

Financial Plan Highlights

Steven’s Gym is seeking $300,000 in debt financing to begin operations of the business. The funding will be dedicated towards securing the warehouse space, gym build-out, and purchase of the equipment. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and working capital. The breakout of the funding is below:

  • Securing warehouse space, gym build-out, and design: $25,000 to $125,000
  • Gym equipment purchase: $50,000 to $100,000
  • Three months of overhead expenses (payroll, rent, utilities): $15,000 to $55,000
  • Marketing & advertising: $15,000
  • Working capital: $10,000

financial projections for Steven's Gym

Company Overview

Who is steven’s gym.

Steven’s Gym is a new, locally owned gym located in El Paso, Texas. Steven’s Gym will include strength training equipment, free weights, aerobic equipment, and plenty of cardio equipment. The gym will also offer fitness classes, strength training instruction, and personal training. Located in an up and coming, and highly trafficked area of town, Steven’s Gym will attract both men and women ages 16 to 75+. There is something for everyone at Steven’s Gym, whether someone is just beginning their fitness journey or is a seasoned athlete and gymrat. The gym will have a welcoming atmosphere, experienced trainers, friendly staff, and frequently cleaned equipment and restrooms. The membership options are affordable and will be offered on a month-to-month basis, a 6 or 12 month contract, or the ability to pay for an entire year upfront. Discounts will be offered to military, teachers, and healthcare workers.

Steven’s Gym History

Steven’s Gym is owned by Steven Malone, a retired Army Master Sergeant who is also a seasoned powerlifter. Steven was stationed at El Paso’s Fort Bliss for many years before eventually retiring and deciding to stay in El Paso and embark on his dream of eventually owning his own gym. As a frequent gym goer, Steven recognized that El Paso lacks high quality independent gyms. The nicest and most equipped gyms in El Paso are large franchises that have too many rules and regulations. Steven envisioned a gym that was welcoming to all types of people that is encouraging, clean, and adequately equipped for those who are focused on sustaining an active, healthy lifestyle.

Since incorporation, Steven’s Gym has achieved the following milestones:

  • Found a 10,000 square foot warehouse space for lease in El Paso, Texas that can easily be converted to a gym.
  • Registered Steven’s Gym, LLC to do business in the State of Texas.
  • Began the branding image, logo, website, and social media accounts for the gym.
  • Began researching and pricing out equipment.

Steven’s Gym Services

The following will be the services Steven’s Gym will provide:

Industry Analysis

The Gym industry is expected to grow to an annual revenue of $38 billion in the next five years. This growth is likely a result of increased per capita disposable income, in addition to growing health-consciousness. As consumers’ disposable income levels rise, individuals are usually more willing to purchase gym memberships. Additionally, time spent on leisure and sports is expected to increase over the next five years, effectively increasing the potential pool of consumers.

During this period, demographic changes are expected to drive revenue growth for operators. In particular, as healthcare costs continue to escalate, health insurance providers may implement incentives to promote preventive health practices, including the use of fitness centers among individuals within their provider network. Additionally, initiatives that promote the health benefits of exercise will likely increase over the next five years, stimulating industry revenue.  

Customer Analysis

Demographic profile of target market.

Steven’s Gym’s target audience will include all men and women ages 16 – 75+ who are interested in achieving and maintaining a healthy and active lifestyle. El Paso is a very diverse city that includes men and women from all walks of life. There are numerous blue collar individuals, white collar individuals, government employees, and military members as the local Army base is one of the largest in the country. Since Steven’s Gym will be very affordable, it will be able to attract people from all walks of life.

Customer Segmentation

Steven’s Gym will primarily target the following customer profiles:

  • High school and college students
  • Locally-based Military
  • Athletes who frequently train for fitness competitions

Competitive Analysis

Direct and indirect competitors.

Steven’s Gym will face competition from other companies with similar business profiles. A description of each competitor company is below. Gold’s Gym Gold’s Gym is a large franchise-owned gym with two locations in El Paso. Gold’s Gym gives access to everything one needs to transform their life: state-of-the-art amenities, a variety of fitness classes tailored towards someone’s fitness needs, and the world’s best trainers. There are weekly fitness classes for group workouts ranging from martial arts-inspired cardio classes to foundational yoga sessions. There are also certified trainers if someone is new to exercise or just looking for more guidance and coaching. Gold’s Gym’s amenities include cardio equipment, group exercise, personal training, a pro shop, sauna/steam rooms, group cycle, free weights, functional training, kids club, locker rooms, and wifi.

Planet Fitness Planet Fitness is for people from all walks of life, whether they’re a first-time gym user or a veteran member, they are there to provide a workout environment in which anyone and everyone can be comfortable. All Planet Fitness members enjoy unlimited access to their home club and the support of their friendly, knowledgeable staff anytime they need it. PF Black Club members receive additional benefits, including the ability to bring a guest for free and access to any of their 2,000+ PF locations. Also, the PF member can take advantage of their free fitness training or find motivation by reading real member experiences on Planet of Triumphs. The goal of Planet Fitness is to provide a clean, safe, welcoming environment for anyone who walks through the door, and all the equipment, amenities, and support they need once they arrive.

Anytime Fitness Anytime Fitness is a welcoming gym that exists to help someone get to a healthier place – by giving the right support at the right times, in the ways the member wants. Every member receives a free, personalized Get Started Plan when they join. Their friendly, professional staff is trained to help someone along their fitness journey, no matter how much support they need. Aside from a large selection of strength and cardio equipment, Anytime Fitness offers the following services – 24-hour access, 24-hour security, convenient parking, anywhere gym access, private restrooms, private showers, health plan discounts, wellness programs, cardio TVs, and HDTVs.

Competitive Advantage

Steven’s Gym will be able to offer the following advantages over their competition:

  • Large, clean, and spacious facility that has all the necessary equipment for their fitness routine.

Marketing Plan

Brand & value proposition.

Steven’s Gym will offer the unique value proposition to its clientele:

  • Large, clean, spacious, and well-equipped facility.
  • Dedicated team of trainers.
  • Affordable membership pricing plans.

Promotions Strategy

The promotions strategy for Steven’s Gym is as follows: Social Media Marketing Strategy Steven’s Gym will invest in advertising the gym on social media platforms Facebook and Instagram. By using targeted social media marketing, Steven’s Gym will be able to reach the appropriate target audience of El Paso. Before opening, Steven will hire an advertising agency to develop the branding and photography needed to create captivating social media posts.

Billboards Steven will invest in two billboards strategically located at busy intersections that receive thousands of traffic daily. The advertising agency will develop the print for the billboard design. Website/SEO Marketing Strategy Steven’s Gym will invest in a strong SEO presence so that when someone enters “El Paso gym” or “local gym near me” in their Google or Bing search bar, Steven’s Gym is at the top of the list. Their website will list all of Steven’s Gym’s services, location, pricing, and contact information. Word of Mouth Word quickly spreads around town and once a few people experience the clean, affordable, and professional staff at Steven’s Gym, more and more people will come in to see for themselves and sign up for a membership plan.

The pricing of Steven’s Gym will be moderate and on par with competitors so customers feel they receive value when purchasing their services.  

Operations Plan

The following will be the operations plan for Steven’s Gym.

Operation Functions:

  • Steven Malone will be the sole gym owner and operator of Steven’s Gym. He will oversee the staff, maintain that the cleaning schedules are being enforced, and ensure that all equipment is working per standard and safely. He will also manage all ordering of new and replacement equipment, schedule the group HIIT classes, and daily management tasks.
  • Steven will hire a gym manager to be in charge of members and member management.
  • A team of three trainers will run all of the fitness classes. As the membership grows and clients require more attention, more trainers and fitness classes will be added.
  • A local CPA will manage all high level accounting functions, such as payroll and tax payments.
  • Steven will also hire an advertising agency to develop the gym’s branding, photography, website, social media accounts, and billboard design.

Milestones:

Steven’s Gym will have the following milestones completed in the next six months. 8/1/202X – Finalize contract to lease warehouse space. 8/15/202X – Begin build-out and design converting warehouse space into a functional gym. 9/1/202X – Hire advertising company to begin developing gym’s branding, logo, social media accounts, website, and billboard design. 9/15/202X – Order all equipment. 10/5/202X – Hire gym manager and team of personal trainers. 10/15/202X – Train staff on proper policies and procedures. 11/1/202X – Grand Opening of Steven’s Gym.  

Steven’s Gym will be solely owned by Steven Malone. Steven is a retired Army Master Sergeant who has been stationed off and on at El Paso’s Fort Bliss for the past twelve years. Upon retirement, Steven decided to make El Paso his permanent home and embark on his dream of owning his own gym. Steven recognizes the lack of quality, independent gyms in El Paso and wants to open a gym that fits his idea of what a high-quality gym should be.

As a former powerlifter and personal trainer while serving in the military, Steven is aware of the proper equipment and facilities a gym should have. Steven envisions his gym to be friendly, clean, well-equipped, and affordable for the average person so that people from all walks of life will feel comfortable going to the gym and achieving their fitness goals. Steven will dedicate his life and focus on ensuring that his gym is always clean, staffed with the best trainers, and members are happy with what the gym has to offer.  

Financial Plan

Key revenue & costs.

The revenue drivers for Steven’s Gym are the membership fees it will charge each person that signs up to become a member. Each member will be placed on a membership plan where they can either pay month to month, enroll in either a 6 or 12 month contract, or pay for the entire year upfront.

The cost drivers will be the payroll for the staff, rent, utilities, cleaning supplies and equipment, and gym equipment purchase and maintenance. Other cost drivers will be the targeted marketing costs on social media and monthly fees for the CPA and advertising company.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Initial Number of New Clients per Month: 60
  • Average Monthly Membership Fee: $150
  • Gym Lease per Year: $100,000

Financial Projections

Income Statement

FY 1FY 2FY 3FY 4FY 5
Revenues
Total Revenues$360,000$793,728$875,006$964,606$1,063,382
Expenses & Costs
Cost of goods sold$64,800$142,871$157,501$173,629$191,409
Lease$50,000$51,250$52,531$53,845$55,191
Marketing$10,000$8,000$8,000$8,000$8,000
Salaries$157,015$214,030$235,968$247,766$260,155
Initial expenditure$10,000$0$0$0$0
Total Expenses & Costs$291,815$416,151$454,000$483,240$514,754
EBITDA$68,185 $377,577 $421,005 $481,366 $548,628
Depreciation$27,160$27,160 $27,160 $27,160 $27,160
EBIT$41,025 $350,417 $393,845$454,206$521,468
Interest$23,462$20,529 $17,596 $14,664 $11,731
PRETAX INCOME$17,563 $329,888 $376,249 $439,543 $509,737
Net Operating Loss$0$0$0$0$0
Use of Net Operating Loss$0$0$0$0$0
Taxable Income$17,563$329,888$376,249$439,543$509,737
Income Tax Expense$6,147$115,461$131,687$153,840$178,408
NET INCOME$11,416 $214,427 $244,562 $285,703 $331,329

Balance Sheet

FY 1FY 2FY 3FY 4FY 5
ASSETS
Cash$154,257$348,760$573,195$838,550$1,149,286
Accounts receivable$0$0$0$0$0
Inventory$30,000$33,072$36,459$40,192$44,308
Total Current Assets$184,257$381,832$609,654$878,742$1,193,594
Fixed assets$180,950$180,950$180,950$180,950$180,950
Depreciation$27,160$54,320$81,480$108,640 $135,800
Net fixed assets$153,790 $126,630 $99,470 $72,310 $45,150
TOTAL ASSETS$338,047$508,462$709,124$951,052$1,238,744
LIABILITIES & EQUITY
Debt$315,831$270,713$225,594$180,475 $135,356
Accounts payable$10,800$11,906$13,125$14,469 $15,951
Total Liability$326,631 $282,618 $238,719 $194,944 $151,307
Share Capital$0$0$0$0$0
Retained earnings$11,416 $225,843 $470,405 $756,108$1,087,437
Total Equity$11,416$225,843$470,405$756,108$1,087,437
TOTAL LIABILITIES & EQUITY$338,047$508,462$709,124$951,052$1,238,744

Cash Flow Statement

FY 1FY 2FY 3FY 4FY 5
CASH FLOW FROM OPERATIONS
Net Income (Loss)$11,416 $214,427 $244,562 $285,703$331,329
Change in working capital($19,200)($1,966)($2,167)($2,389)($2,634)
Depreciation$27,160 $27,160 $27,160 $27,160 $27,160
Net Cash Flow from Operations$19,376 $239,621 $269,554 $310,473 $355,855
CASH FLOW FROM INVESTMENTS
Investment($180,950)$0$0$0$0
Net Cash Flow from Investments($180,950)$0$0$0$0
CASH FLOW FROM FINANCING
Cash from equity$0$0$0$0$0
Cash from debt$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow from Financing$315,831 ($45,119)($45,119)($45,119)($45,119)
Net Cash Flow$154,257$194,502 $224,436 $265,355$310,736
Cash at Beginning of Period$0$154,257$348,760$573,195$838,550
Cash at End of Period$154,257$348,760$573,195$838,550$1,149,286

Gym Business Plan FAQs

What is a gym business plan.

A gym business plan is a plan to start and/or grow your gym. Among other things, it outlines your business concept, identifies your target customers, presents your marketing strategies and details your financial projections.

You can  easily complete your gym business plan using our gym business plan template here .

What Are the Main Types of Gyms?

There are many types of gyms or fitness centers. There are large, franchise gyms that have multiple locations across the country. There are also large single facility gyms. Finally, there are smaller gyms that tend to focus on a particular fitness segment, such as strength training, CrossFit, or group HIIT training.

What Are the Main Sources of Revenue and Expenses for a Gym Business?

The primary source of revenue for a gym or fitness center are membership fees. Typically, members pay month-to-month, or fulfill a year-long contract.

The key expenses for a gym or fitness center are the costs associated with payroll, purchase and maintenance of equipment, cleaning supplies, marketing costs, and working capital. Other expenses will be rent, utilities, taxes, accounts payable, and other licensing fees (if necessary).

How Do You Get Funding for Your Gym?

Gym businesses are most likely to secure funding from banks. Typically you will find a local bank and present your gym business plan to them. Family and/or friends could also be potential investors and other types of capital-raising such as crowdfunding are other common funding sources.

A well-crafted gym business plan, complete with a solid financial plan is essential for attracting any type of potential investor. This is true for a new gym business or established businesses looking to grow.

What are the Steps To Start a Gym Business?

Starting a gym or fitness center can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Write A Gym Business Plan - The first step in starting a business is to create a solid gym business plan that outlines all aspects of the venture. This should include market research on the fitness industry and potential target market size, information on the services and/or products you will offer, marketing strategy, mission statement, business model and pricing strategy and a detailed financial plan.  Our business plan template is the perfect guide to show you how to start a gym business plan.

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your fitness   business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your gym business is in compliance with local laws.

3. Register Your Gym Business - Once you have chosen a legal structure, the next step is to register your gym business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your gym business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Gym Equipment & Supplies - In order to start your gym business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your gym or fitness   business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising to reach your target audience.

Learn more about how to start a successful gym or fitness business:

  • How to Start a Gym Business

Where Can I Get a Gym Business Plan PDF?

You can download our free gym business plan template PDF here. This is a sample gym business plan template you can use in PDF format.

Other Business Plan Templates

Food Truck Business Plan Template Event Venue Business Plan Template

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  • Beginners Guide , Indoors Playground

How To Start An Indoor Playground Business In 11 Steps

Written by ownplayground team.

sensory gym business plan

Since the mid-1990s, indoor playgrounds have continued to grow in popularity. Over time, indoor play areas have quietly developed into a legitimate industry, with a variety of options for children and their parents. While some indoor playgrounds cater to the youngest visitors , namely preschool-aged and under, others include activities for children of all ages and in some cases, adults as well.

So, how viable is the Indoor Playground Business? With increasing concerns about childhood obesity, many parents are looking for a fun, safe, and controlled environment for their kids, where they can be physically active; run, jump, and climb without the worry of serious injury , and where they can play hard, without parents having to worry about their security and safety. The indoor playground market fits that niche perfectly and has only continued to grow in recent years. 

If starting an indoor playground business seems like a viable option, we will explain, step by step, the best way to move forward!

Find Your Niche

There are different versions of indoor playgrounds .  

Many cater to the youngest children, from toddlers to preschool, while others focus more on preteens through adults. Although some indoor playgrounds focus solely on physical activities, like: 

Others include additional attractions, such as: 

  • Video games 
  • Skee ball 
  • Other competitive features

A kid climbing, group of teens having fun on the trampoline, a kid playing videogame, and a indoor indoor game.

Before moving forward, it is important to find a niche, or a focus.  

Perhaps you’re interested in opening an indoor playground with a focus on rock climbing or zip lining ; or maybe a sports-oriented indoor playground, with some organized games, such as indoor soccer or dodgeball is closer to what you’re considering. 

Still, other indoor playgrounds focus more on gymnastic activities, such as trampolines and tumbling.

To truly create a viable business, it is important to pick one area of specialty, and be the best at it. 

By offering something with a unique area of focus, that’s a little bit different than other indoor playgrounds , you can target a specific customer base. You can also focus on the community at large, and provide something that other, similar businesses, do not.

Investigate the Competition

Indoor playgrounds are plentiful, but each one seems to offer something slightly different. 

While some focus on gymnastic style play, others focus on different amenities, such as virtual reality video gaming, or go-carts, or a carnival style playground model where kids can earn tickets for prizes.  

When considering a new business, it is important to understand the local competition.

A indoor amusement park.

Whatever the niche of the business, it is important to also provide something better, and different than direct competitors. 

It’s important to understand who the competitors are, and how to outperform them, whether you provide: 

  • Longer hours
  • Lower entrance fees 
  • A better variety of activities and gaming options. 

Planning, Planning… You’ll Want to Have a Plan

Before starting any business, it is important to create a workable plan that outlines every aspect of the business. You need to make decisions that address:

  • What is the main revenue stream? 
  • Aside from admissions, are there other viable ways to create revenue for the playground? 
  • What services can be included?  
  • Will there be food served? If so, will there be hot food to order or vending services? 
  • Will the facility have the capacity to host children’s parties?

Exploring the different amenities within the playground design and creating a business plan that outlines the various revenue streams, can help a small business owner: 

  • Secure funding 
  • Estimate overall costs 
  • Determine what type of supplies and staffing will be necessary once the business is up and running.

You’ve Heard it Said, “Location, Location, Location”

When trying to create a commercial business, whether it’s an indoor playground, a deli, or a dry cleaner, it is important to find the right location.  

First, you will want to consider the demographics in the surrounding area. For an indoor playground, it’s important to find a location that is easily accessible for families, perhaps: 

  • In a commercial area 
  • Close to schools
  • Well established neighborhoods.

The right location can make a business, and conversely, the wrong location can break a business. 

A tablet with an open Map App.

Take the time to research an area thoroughly, find out why previous businesses have failed, and make sure the location makes sense for the type of business envisioned. It is important to find a location that is: 

  • Convenient for families 
  • Perhaps accessible by public transportation 
  • In a location deemed safe for children and families.

Create Hype

Once a location is selected, it is time to start advertising.  

While, it may seem too soon, it is truly never too early to start advertising an upcoming business venture.  

Simple steps, like: 

  • Placing a sign at the chosen location alerting those passing by of the upcoming business 
  • Creating a Facebook and Instagram page to track the progress of the playground, from start to finish
  • Creating a dedicated website to alert people that an indoor playground is “Coming Soon”.

A laptop with camera and pen beside.

Any kind of upfront, pre-opening advertising will help create excitement and anticipation surrounding this business venture. In addition to the passive advertising techniques listed above, consider some direct marketing as well, things such as: 

  • Mail pieces to the community 
  • Including discount coupons for admission 
  • Perhaps a free drink, for all guests who arrive on opening day.

Select the Right Equipment

With the growing popularity of indoor playgrounds , there are many manufacturers of playground equipment to choose from. Quality and durability are important, as is safety. Before committing to any particular choice of equipment, it is important to thoroughly research each manufacturer.

In addition to cost, there are other considerations when selecting a manufacturer: 

  • Which companies offer comprehensive warranties on equipment? 
  • Which manufacturers include equipment assembly in their pricing package? 
  • Do any of the manufacturers have local representation, such as a sales or service personnel, who can assist with questions and simple repairs and replacements?

A happy kid hanging.

It is also important to select equipment from manufacturers who prioritize the safety of their apparatus.  

When running a business that includes playground equipment, amusement park rides, or sports related apparatus, safety must be of the highest concern. 

Any reputable manufacturer should be able to produce paperwork certifying the safety of their equipment.  This is a vital piece of the puzzle when putting together an indoor playground.

Understand the True Cost

It is impossible to create admission fees, invest in marketing, or price food items until the true cost of creating and running an indoor playground is established.  

Many things need to be considered when determining the cost of the business . Renting a space and buying the equipment is only one small factor. 

Not only are there licensing requirements and insurance guidelines ; there are also plenty of other administrative and operational costs: 

  • Utilities, such as electric and water
  • Free-Wi-Fi for customers 
  • Salaries for staff
  • Cost for consumable materials 
  • Cleaning supplies 
  • Basic upkeep.  

It can actually seem slightly overwhelming. By creating a list of estimated expenses, business owners can better manage and understand what drives cost.

Understand Safety Guidelines and Licensing

It is important for business owners to understand the safety concerns, as well as any local regulations regarding this type of business. Since indoor playgrounds can carry some inherent risks based on the physical nature of activities, it is critical to learn all there is to know about keeping customers safe . 

Learn the requirements in terms of safety precautions, and any restrictions on the type, size, or height of the play equipment to ensure all regulatory guidelines are being met.

This is also a great time to start: 

  • Pricing insurance
  • Obtaining any necessary licenses or permits
  • Maintaining appropriate paperwork
  • Meeting all regulatory guidelines 
  • Maintaining licensing information.

Invest in Strategic Marketing

This is where understanding the competition really comes in handy. While it is important to understand what your competitors offer that customers absolutely love; it is equally important to understand what customers aren’t getting, or don’t like, from the competition! 

It is vital to find the customer’s “pain point”. A pain point is a defined weakness that prevents a customer from getting exactly what they want. 

Find that , and marketing is a cinch!

A pain point can be anything. Perhaps competitive indoor playgrounds are charging a high per person rate. This can be an easy pain point to solve, even without lowering prices. Solid ways to address high prices from competitive businesses could be:

  • Offering a buy two, get one free rate
  • Offering customers a ½ price ticket for a return trip within 60 days
  • Offering a separate child’s ticket price vs. adult ticket price 

Another big parental complaint about indoor playgrounds is the noise! 

They are loud, with plenty of screaming, wild kids. 

Creating an indoor playground that includes a quiet space for Mom and Dad could potentially be a huge selling point! 

Next, the level of cleanliness. 

Everyone has heard stories about how dirty ball pits really are! 

Focusing on cleanliness and disinfecting the equipment could easily turn an indoor playground into a parental favor over the competition.

The important thing is to find out what matters most to the parents, and direct marketing to meet their needs and address their pain points! This is an easy way to differentiate a business from the competition.

Hire Talented People

It’s important to pick the right employees. For an indoor playground, ideally, employees should:

  • Love working with children
  • Be outgoing

A kid having fun with her parent.

It is important to select a few employees that are experienced with basic first aid, in the event of minor scrapes and scuffles.

Think about every area of the business that requires staffing: 

  • Staff to handle admissions
  • Answer customer inquiries 
  • Take phone calls. 

Additional staff to: 

  • Help run events and parties 
  • Supervise games and equipment
  • Oversee the snack bar. 

While some employees can fill more than one role, it is really important to have the right fit.

Turnover in employment is a huge business expense that can, with the right staff in place, be reduced dramatically. 

The cost to advertise jobs, interview and train new people, pay salaries, buy uniforms, etc. It all adds up. By picking talented and dependable people, and treating them well, retaining employees is much easier. 

The right employees will be equally invested in making the business a success.

Use Social Media for Promotion

Social media is an incredible tool. 

Studies indicate that nearly 80% of Americans use some type of social media app. (Source: Social Media use in America ) 

Using social media to create excitement prior to opening is only the beginning! 

Facebook app and "social media"

Creating regular updates, focusing on different aspects of the business, and offering small benefits, such as a reduced price one day a week, free beverage refills, or other little perks through social media keeps followers interested in the organization.

Plus, customer reviews are a great way to get free, positive advertising! 

Creating regular social media posts and encouraging customers to leave comments about their experiences is the best free advertising in the world!

How Much Does It Cost to Build an Indoor Playground from the Ground Up?

This question is a bit hard to answer, as prices can vary tremendously depending on what the business offers.   

However, there are certain factors that can create fluctuation in a pricing model. Let’s take a look at what they are and discuss each one in detail:

Age Range of Targeted Customers

  • Type of Activities Offered 
  • Liability rates by location

Obviously, opening an indoor playground in Los Angeles or New York City will cost a lot more money than opening one in Topeka, Kansas!  

For the most part, indoor playgrounds require a large space, so in midsize to large cities, large spaces come with a premium price. It is important for potential business owners to research rental and purchase rates based on square footage in the targeted location.  

Sometimes making a small change to a different zip code can save a good deal of money.

Taxes and rental rates vary widely depending on locations. 

Location is one of the most important factors when creating a business, however, what may be considered a great location for a supermarket, may not be the best location for an indoor playground. 

When considering costs, it is important to weigh the cost factor against the benefits of the selected location. For example, building an indoor playground off of a main thoroughfare, but close to well established family neighborhoods may cost less and work in favor of the business. 

It is more important that kids and their parents find the location convenient, rather than ensuring that it’s on the busiest road in town.

Size of the Total Space

The size of an indoor playground can vary dramatically. 

Playgrounds designed for toddlers and preschool-aged children can be considerably smaller than those that are designed with older kids, teens, and adults in mind.

A indoor playground.

For example, an indoor playground built for toddlers and preschoolers could be housed in a 2000 square foot space rather easily, including areas for parents to relax, a snack bar, and other amenities.   

Conversely, a large scale, family size indoor playground can require spaces larger than even 15,000 square feet. It all depends on: 

  • The type of activities included in the playground
  • The focal activities provided
  • The demographic the business is designed to serve.

Age range will dramatically affect nearly every aspect of an indoor playground. From the overall size, to the types of services offered, to the number of customers serviced daily. 

Age range is probably the single biggest factor in determining what an indoor playground will look like. 

A kid having fun.

Oftentimes, playgrounds designed for younger children operate almost like a traditional ‘Mommy and Me” class where parents and kids can pay an hourly rate for activities that are group led. 

Since toddlers and preschoolers tire or need naps, this is a customer base that will not be spending all day inside, so creating 2 hours ‘appointment’ times can encourage a steady stream of patrons all day long and increase daily revenue over a more free form style of service. 

The operating hours can mimic a basic workday in many cases, thus cutting costs in terms of salaries and staffing.

Obviously, indoor playgrounds catering to older kids and adults will need to operate longer hours and provide a variety of activities designed to keep kids and adults engaged and having fun for several hours at a time.

Types of Services Offered

While the age range of the targeted customer base will dramatically affect the size of the area needed, the customer demographics affect costs in other ways also. 

The older the patron, the more extreme some of the activities need to be. For example, when attempting to appeal to older teens and adults, attractions such as indoor ziplines and indoor go-karts are much more expensive to design and run, but they bring in more revenue as well.

Admission prices can be based on general activities, with specialized services, such as ziplining, virtual reality play, and bowling , for example, charged separately from general admission. 

Using this kind of a pricing model, the business can cater to both wealthier families as well as the more frugal. Offering a la carte services is a great way to build value and create additional revenue streams.  

Additionally, indoor playgrounds can make money in other ways as well. Consider including an arcade. 

Arcade games are easy to maintain and are easy money-makers. 

Catering children’s birthday parties with a variety of package deals and services is also an easy extra revenue stream. 

Watch which activities pull in the money. Then you can rotate out the activities that don’t create a significant revenue stream and bring in new ones!

Liability Insurance Costs

This is another tricky area.  

Liability expenses to insure an indoor playground will vary widely based on location, along with the size and scope of the activities and services offered. 

While insurance rates and maintaining liability insurance for a large scale indoor playground may seem daunting, the type of services offered should drive up costs for customers at a similar rate. 

That is why it is important to keep an eye on popular activities, and quickly move out attractions that aren’t paying the bills.

Additionally, liability rates can vary dramatically between different insurers. It is very important to obtain at least 3 or more quotes when deciding on insurance. 

Also important to note, there are usually different factors that can affect rates as well, such as special consideration or discounts provided by insurers. For example, some insurers will offer discounted rates to minority or women-owned businesses. Additionally, just like car insurance can be affected by certain safety factors, so can liability insurance for an indoor playground. 

It is very important to take the time to review all quotes and discuss all options for providing liability for your business. 

What About an Indoor Playground Franchise?

Another option for starting an indoor playground business is owning a franchise. 

While at times, franchising can lower overall investment costs, it isn’t a guarantee. However, with a business model that is fairly complex, an indoor playground can be somewhat daunting for many small business owners. 

Franchise ownership provides business owners with all the perks of owning and operating their own business, but with the strength and backing of a well-known name.

Benefits of a Franchise

There are many benefits to investing in a franchise, especially with a business like an indoor playground. In reviewing franchise operations for a mid-range indoor playground that services children from about age 2 to age 12, they offer several benefits to their franchise owners, such as:

Market Research

Lease negotiations, professional installation, design and equipment, training and support.

  • Discounts on Equipment and food/beverages

Territorial Protection

Advertising.

A well-established franchise already understands the market, and as such can provide new business owners with a wealth of information. For companies that have a long standing history, market research will consist of factors that as someone new to the industry, may not have even thought about!

A large scale indoor playground company understands the value in terms of rental space, and they know exactly what it should cost to rent a building for their franchises. 

Taking into account some of the market fluctuation in different areas of the country, franchise owners can rest assured that they will not be taken advantage of in terms of leasing prices. The franchise company should be true experts.

Oftentimes franchise companies partner with a specific group of builders around the country or region to handle all of the builds and installations for their franchise owners. This allows the owner to sit back and let someone familiar with the equipment complete all the necessary installations. 

There is no need to reach out to several installers, obtain quotes, customer feedback, etc. They can simply get the job done.

A man fixing something.

Again, franchise companies have the benefit of experience. They know what designs are most appealing to customers and they know which equipment and attractions are guest favorites. There is no guesswork here for the franchise owner. No worries about removing and replacing equipment that is not popular, as the business model has already been established.

It is hard to overestimate the benefit of good training and support. 

Understanding an industry, the market, and demographic serviced by the business, not to mention what works and what doesn’t, is truly key to the overall success of a business. 

With a successful franchise, owners have the benefit of being trained on what works! Previous owners have already gone through the trial and error, so the hard work has been done. Good franchise companies will offer ongoing support, particularly in the first couple of years, as the business owner truly gets up to speed.

Whether it is equipment, rent, or food products, buying in large quantities usually means deep discounts. When working with a franchise business, the individual business owner gets the benefit of a large company’s buying power, even though they are only buying for their location. 

By using specific vendors already contracted with the franchise, owners will pay well below cost for items.

Again, plenty of research has taught franchise companies what a territory needs, and doesn’t need, to be successful. As a franchise owner, you can be guaranteed that you won’t be crowded by additional franchise owners, as each territory is already defined.

A well-recognized name and a good reputation are fantastic advertising. Franchise owners get the benefits of a familiar name, national advertising, as well as local support. 

While they choose to increase advertising through social media, or on local radio, having the national support of a network of established advertising is almost like money in the bank.

What Playground Business Will You Start?

Ultimately, it is up to each individual person or business owner to decide what works best for them. 

Many people prefer to have the support of a well-known company backing them as they start their own business endeavor. Other people want complete autonomy to create their own space, recognize their own vision, and have the freedom to do business however they choose. 

Each method has its own risks and rewards. Either way, the indoor playground industry has continued to grow and develop over the past 2 or 3 decades and shows no signs of stopping any time soon!

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The Basics of Starting an Indoor Playground

Home Blog Uncategorized The Basics of Starting an Indoor Playground

Starting an Indoor Playground Business

Looking to join the growing kid’s indoor playground franchise or want to boost an existing business? According to IBISWorld, a market research firm, increased disposable income and health awareness have greatly benefited the children’s fitness center franchise industry , which includes indoor playgrounds. From 2012 to 2017, the industry saw 1.7 percent annual growth, and it is expected to continue to grow. Parents, teachers and caretakers are working hard to combat childhood obesity, resulting in high demand for engaging playgrounds.

Playground Combat Obesity

If you are excited to join a growing industry, you’ve come to the right place. We’ll share indoor playground business plans and basics and insight to help you open your own indoor play center.

Read the full article or skip to a specific section:

  • Who Should Start an Indoor Playground?

Why Should You Start an Indoor Playground?

Starting an indoor playground: market research and location.

  • Designing Your Indoor Playground

What Do You Need to Get Started With an Indoor Playground?

Preparing the site and installing your playground.

  • Ongoing Maintenance For Your Playground

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Who Should Start An Indoor Playground Business?

Whether you manage a museum, own a retail center, run a family-friendly restaurant, or want to start up a family entertainment center, adding an indoor playground or play attraction will attract families and help your business grow. Soft Play® playgrounds can be designed to fit any size or budget.

Attracting Families to Shop

A comfortable and enticing play area encourages families to take their time browsing, shopping, dining or socializing. You might consider adding indoor playground equipment to your business if you own or manage a:

  • Family entertainment center
  • Trampoline park
  • Any amusement area that you want to make kid-friendly

When kids are happy, parents are happy. A playground helps keep customers relaxed and content no matter where they are.

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Indoor playgrounds are gaining popularity because they offer comfortable and secure play areas, and they give kids a chance to burn energy regardless of weather conditions. Parents and caretakers can relax as kids freely explore fun games and stimulating activities.

Also, parents realize the importance of physical activity in childhood. According to the American Heart Association, obesity is the number one concern of parents today, and the prevalence of childhood obesity has more than tripled since the 1970s. Indoor play areas encourage physical activity in a way that is fun. Kids are more motivated to burn calories and stay fit when they are busy laughing and playing. It is also vital that children regularly play to relieve stress, make friends and develop important cognitive skills.

Children Screen Time Stat

Parents also want to get their kids away from TV and computer screens. The average American child spends five to seven hours a day in front of a screen. Too much screen time makes it hard to sleep at night, increases the risk of attention problems and limits physical activity. With the demand to help kids get healthy and away from the screen, it’s the perfect time to open an indoor playground business.

An indoor playground business can be highly profitable in areas where there is a large population of children and where parents have disposable income. Similarly, communities that experience long winters or frequent rain showers can benefit from indoors playgrounds. There are plenty of reasons to start an indoor playground in your existing business or from scratch. Here are some of the benefits for your business :

  • Attract customers and keep them coming back: Families and children will want to visit businesses that offer fun and create positive memories. In a restaurant with a playground, for example, families are more likely to linger, enjoy their meal and return because everyone can enjoy themselves.
  • Set yourself apart from competitors: Say you own a health and fitness center. Down the street is another gym. Imagine you have a childcare area full of colorful, exciting playground equipment in your fitness center, and the other location does not. Which fitness center are busy parents more likely to choose?

Returning Customers Business

  • Build brand loyalty: You can choose to display logos and company colors when you design your playground . A custom playground is an easy way to advertise your brand and build customer loyalty. If customers have a great time at your business, they’ll remember your name and will surely return.
  • Tailored play experiences: You can build a playground that meets your targeted customers’ needs and promotes stimulating, fun play for all ages. Customers’ children will enjoy the physical and mental benefits of play when they visit your business.
  • Make customers feel welcome: Your business will make customers feel comfortable bringing their children to your establishment. A kid-friendly environment that promotes play will encourage customers to come back time and time again.

Ready to take a leap and starting building an indoor playground? Contact our team of experts at Soft Play and get your custom indoor playground project started.

Planning For Your Playground

Indoor Playground Business Plan

Before you start an indoor playground business, you need to create a business plan. Your indoor playground business plan should include your budget, marketing techniques, a mission statement, and operation procedures such as cleaning and maintenance. You will also need to research competitors to learn how to offer something new and interesting at a reasonable price.

View Play Structures

The goal of your market research will be to discover valuable customer information, such as how many children are in your area, and how much demand exists for an indoor playground. You also need to research what customers are willing to spend money on and where they want to go. To find this information, you can study customers directly through surveys, interviews or online polls. You can also use the information other similar businesses have already collected. Your research will aim to answer the following questions:

  • How many children are in your community (ages 0-12)?
  • Do you have enough physical space for a playground?
  • Are there many tourists in your area, or primarily residents?
  • How will you differentiate from competition?

Knowing your customer’s age, income, lifestyle and other important demographic information is a good place to start. You can hire a market research company to do the work for you, or you can use online analytics tools and do the job yourself. With many potential customers using social media sites, you can find great demographic data online.

Stand Out From Competitors

Next, learn about your competition. Look at companies that are relatively the same size as yours, and which serve the same geographic location. Visit your competitors’ social networks and websites to learn what they are doing. Also, visit their customers’ social media pages and read their reviews and comments about competing businesses. Learn what competitors charge for their products or services, and consider how you can offer something different. The goal is to determine how you can stand out from competition and offer customers something exciting and unique at a price they can afford.

Location is crucial to the success of an indoor playground business. Picking a location near a high-traffic draw like a mall or shopping center will help bring in more foot traffic, or select a location based on a high tourist area. For the building, remember to consider building height depending on the type of play structure you want. For example, you may need upwards of 15 feet for a 3-story play structure.

Planning A Budget

How much money do you need to start an indoor playground? A lot depends on the size and type of play equipment you want to purchase. Obviously, a large elaborate play center is going to cost more than a single piece of playground equipment. The price is up to you and your business goals. Note that standalone play equipment  can be a great option if you are limited on space or budget.

In general, you’ll need to determine the following two factors:

  • How big of a playground do you need to handle the number of customers (based on your busiest day of the week)?
  • How many playable activities do you want in your playground?

Your budget should include:

  • Total start-up costs, including rent and insurance
  • Costs to operate the indoor playground such as utilities and salaries
  • Marketing and other expenses necessary to support the business
  • Estimated or expected profits

At Soft Play, we offer a range of indoor playground projects at varying prices to provide an unforgettable play experience for your entertainment center. Our projects range from $5,000 to $125,000 and we help from the design to the installation of your unique play area.

Considerations for Indoor Playground Designs

Keep Families Coming Back to Playground

If you’re wondering how to start your own playground business and make it successful, you want to design a playground that is innovative , engaging, and fun for all ages, to keep families coming back. Fortunately, the option to design a custom playground allows you to set your imagination free and create an exciting environment that will differentiate from competitor options while also engaging kids.

A thoughtfully designed playground will keep kids entertained for hours and show them something unexpected. Keep the following elements in mind when it’s time to design:

  • Space: Consider where you plan to install your playground and its size. You’ll need high ceilings and enough space around the playground for seating, bathrooms, and food areas.
  • Color and theme: One option would be to use bold primary colors — yellow, blue, and red — if you want a simple design. These cheerful colors signify Soft Play and help stimulate a child’s imagination. Or, consider a theme. A themed playground can capture a child’s imagination even more than a stimulating color scheme. Kids like castles, jungles, and pirates, for example — make a playground theme out of it!
  • Toys: Incorporate toys and activities that kids love, like tunnels, trampolines, swings, inflatable bouncers, blocks, climbing structures, bright interactive games , playhouses, and innovative musical equipment .
  • Brand: Keep consistent with your company’s color scheme and style when designing your playground. Think of ways you can incorporate a common theme, or include a company logo on the equipment. For example, if you own a candy shop, you might choose a candy-themed playground .

Designing Fun Indoor Playground

The benefit of a custom design is that your playground will be unique and offer something competitors can’t. If your playground is fun, kids will never forget it, and they will look forward to returning. Likewise, parents will be glad to take their children somewhere that does not revolve around a screen.

At Soft Play, design consultants know what works best for businesses, children, and parents. They will help you design a playground that attracts customers and keeps them coming back. Once you are satisfied with the design, we manufacture equipment at our state-of-the-art facility in Monett, Mo., to get your playground delivered on time and within budget.

Shop Themed Playgrounds

Before you install a playground, you need to know what business licenses you need according to your state laws. Additionally, you’ll need to find out if you need any permits regarding child care in your state.

If you do not already own a business you will need to register your business with the playground name and get a tax identification number. You will also need liability insurance and any other permits that may be required by your state laws.

There are two basic licenses you need for an indoor playground. They are:

  • Doing Business As (DBA) license: A DBA license allows you to use a made-up name for your business and usually costs less than $50.
  • General business license: A general business license is required to register your business and for tax purposes. A general business license usually costs around $300.

Depending on your state, you may need additional licenses to run a child activity center. You will need to contact state officials to determine exactly what you need to operate an indoor playground business in your city and state. For example, if you plan to serve food at your indoor playground, you may need a specific license for food handling. Indoor play area requirements are important and need to be acquired.

Once you have all the necessary licenses and your location picked out, it’s time to install your playground. Soft Play takes care of the installation for you, so you do not need to worry about hiring a construction crew for your playground. Our installation professionals are trained and certified to ensure proper installation and care with every playground.

Once you have your new playground in place, it’s time to enjoy your hard work and reap the benefits of fun. First, you’ll need to promote your playground and get families excited to check it out. Here are ways to spread the word and generate buzz in your community:

  • Have a grand opening: Invite families to stop in and play during your grand opening. Make sure to have special offers like party discounts or free samples during the grand opening.
  • Set up a website: If you already have a business website, don’t forget to add information about your playground. If you need a site, make it a priority to set one up. Also, join social media groups to promote your brand and connect with customers. Share family friendly tips on social media to build trust and appeal to your target audience.
  • Sign up for an email service: Make sure you can send newsletters, updates and special offers to current customers and potential customers by gathering email addresses on your site. Email is one of the top ways to keep customers engaged at a low cost.
  • Get involved: Get involved in your community to promote the benefits of playgrounds for kids. Become an expert on the subject of Soft Play and share your knowledge with others. Join local parent organizations and let it be known that you are not just another business owner, but also care about the community as a whole.
  • Advertise in print and online: Place ads and coupons in local papers and magazines, as well as via online sources, to make sure you reach as many people as you can.

Advertising Indoor Playground

The goal of advertising is to raise awareness among your target audience about the exciting new product or experience you have to offer. You also want to educate customers about the benefits of your product. Once families experience how fun and convenient your playground is, they will continue to return and share their positive experiences with friends and other family members.

Ongoing Maintenance for Your Playground

Soft Play playground equipment is designed to be low-maintenance, so you can spend less time worrying and more time focusing on your customers and business goals. Each playground component is made to last thanks to high-quality materials, and a commitment to quality control at state-of-the-art facility in Monett, MO. Our customer service team knows our equipment inside and out, and are available to answer questions or identify parts if you do need to maintain, repair or update your equipment.

Although Soft Play equipment is durable and easy to maintain, it’s still smart to make maintenance part of your budget and indoor playground business plans. Schedule days for cleaning as germs can build up quickly in play areas, and immediately replace or repair anything that is broken, loose or damaged.

Contact Soft Play to Learn More About Opening An Indoor Playground Business

Are you excited to attract customers to your business with the best playground you can find? Are you ready to launch an indoor playground business? Starting an indoor play center might feel overwhelming, but Soft Play is eager to help you through every step of the process from financing to installation.

Since 1984, Soft Play has been the global leader in contained playground equipment and has installations in more than 60 countries . We are committed to providing excellent service and unique custom playgrounds so everyone can have fun. We are proud to say we are experts at bringing families back to businesses again and again. At Soft Play, we understand the importance of getting kids back to play and offer expert solutions and design options to fit your needs.

Why choose Soft Play? Here are a few reasons:

  • Finance solutions: We offer competitive playground equipment prices and financing options, so you do not have to wait to invest in your business. We are happy to walk you through every step and pick an option that is best for you.
  • Design consultation: We work with you to design custom playgrounds that fit your budget, space and audience. Whether you want a large themed playground for your new retail space or a smaller play area to draw families to your restaurant, we can’t wait to help make your vision a reality. We will make sure your playground is fun, exciting, innovative and encourages active play.
  • Sales support: Our customer service professionals are experts when it comes to our equipment. They are ready to answer any of your questions and help you decide when it is time to repair or update equipment. Our sales representatives are pleased to guide you from design to installation to make sure the equipment will be fun for your audience and all-inclusive.
  • Expert installation: We make sure certified professionals install every piece of your custom playground, so you can rest assured that your playground is ready for use.

Starting an indoor playground is a great business investment whether you wish to add a playground to your existing business or enter the industry anew. At Soft Play we have the tools and knowledge of indoor playground industry trends to make your new area a success. Don’t wait to give your business a boost — contact Soft Play today to help you open an indoor playground!

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How to Write a Business Plan for your Children’s Indoor Playground Business

March 23, 2022

Starting a family entertainment center is a great way to make a living, quite literally, off happiness and play! However, while this is definitely a great way to earn a living, it’s still a business. So you need to have a plan in place before you get started. Here are a few things your indoor playscape business plan should cover.

Know the Legalities

The first thing you need to know when you’re creating a business plan for a family entertainment center is what the legal structure of the business will be. Consider what the structure of the business will be, and how many people will be partners or owners of the company.

Make sure you are also well educated about permits and zoning for your city, so that when you start looking for premises for your custom indoor playground, you know where to look and what documentation you will need to have in place.

This also includes knowing what the regulations for businesses like these are in terms of safety and insurance. Even if your play space is completely safe, there’s always a liability issue, and most cities will require you to carry specific insurance, have certain first aid supplies and skills on site and have a fixed number of employees. Everything from fire codes to parking regulations could come into play here, so make sure you do your homework carefully.

Know Your Market

The next important thing to consider is what the market is like. Succeeding in the family entertainment center business is about more than just renting a space and installing commercial indoor playground equipment.

You need to know how many families live in your area, how many kids of the age group you are targeting there are, and what the socio economic situation in the area is. This will have a huge impact on every aspect of your business, so the more time you can spend gathering detailed demographic information, the better.

Know the Competition

The next important part of your family entertainment center business plan is what kind of competition you have in the area. This should be direct and indirect competition.

Direct competition would be businesses that also offer an indoor playscape, whether it’s paid or not.

Indirect competition would be other family friendly activities that might attract your clients. This could be things like bowling alleys, outdoor playgrounds, a zoo or farmyard or a theme park. Anything that families might decide to do instead of visiting your business is potential competition.

Knowing your competition also allows you to see what families are willing to pay for a day at one of those attractions, which will help you to set your prices.

Source Equipment

Your family entertainment center will only be as good as the equipment you have. So start looking for custom indoor play structures early. Look for a company that offers commercial playground equipment, because it will take a lot of wear and tear from the kids and look for out of the box options.

Families like to visit play spaces that are interesting and unique, and the more interesting yours is, the more popular it will be.

Know Your Costs

Next, you need to consider what it will cost to set up your indoor playscape and family entertainment center, and what it will cost to run it.

Setup costs could include registering a corporation, purchasing commercial indoor playground equipment, buying signage, painting and decorating the space, buying tables and chairs for families and so on.

Running costs would include things like salaries and wages, utilities, office supplies and so on.

Consider Complementary Business Ideas

If you’re starting a family entertainment center, you might want to add other income streams besides just the custom indoor playground.

Some ideas might include food sales, pool tables, arcade game machines and similar. All of those will have an impact on your startup and running costs, potential profits, licensing and layout, among other things. So make sure you factor any complementary business ideas into all of the other sections of your plan too.

Create a Marketing Plan

“If you build it, they will come” only works in the movies.

If you want your family entertainment center to be a success, you need to make sure people know it is there. Ideally, this will start with a location that is visible to passing traffic. The more people who see your entertainment center, the more people will want to visit.

Next, consider social media and your website, both of which are great for local advertising. You could consider offering opening day discount coupons to schools in the area, who could, in turn, pass them on to families of children that attend. Or have a special birthday package deal.

Local newspapers might be willing to cover your opening day as a local interest story, and you could also try local radio ads. The more people who know your indoor playscape is opening, the more likely you are to launch with a bang.

Set Your Pricing

Once you know what it will cost to start and run your business, and what your competition is charging, you can start setting your price. Make sure that it is high enough to cover your costs, but not so high you price yourself out of the market.

At this stage, you can also calculate how many visitors you will need to break even and make a profit, so you can start planning how to attract them.

Choose the Right Playground Partner

If you’re just staring out in the family entertainment center business, partnering with the right commercial indoor playground equipment company is a big deal. Indoor Playgrounds International has been supplying indoor playground equipment to the best play spaces for many years, so we can help you to make the right choices to make your new venture a great success.

Our custom commercial indoor playground equipment is fun and imaginative, and also built to the very highest quality standards. So you know it will be fun, and also safe and durable.

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Children's Recreation Center Business Plan

Start your own children's recreation center business plan

Cabin Fever

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

This plan provides detailed information on the initial establishment and operation of Cabin Fever – Child Fun Center. The plan outlines the plans for business growth, methods, procedures for operation, and infrastructure.

Cabin Fever will offer young families in Bemidji, MN and the surrounding area a quality family recreation center, with jungle gyms, soft contained play structures, slides, and imagination-inspiring play areas for children ages 2 to 5. All equipment is safety-tested and approved, employees are trained in child safety and first aid. Parents will have special seating areas where they can watch their children play actively and safely, even in the coldest, darkest months of winter, and can purchase snacks and drinks from a limited selection while they wait.

Brian Solum (owner) and Derek Giesbrecht (advisor) are responsible for the design, building, and development of the daily operations outlined in this plan. Derek is the President of Soft Play, LLC, a leading indoor playground manufacturer, and has been in the Active Play industry for many years. He has established Soft Play as the leader in the Family Entertainment Industry. Brian is a former real estate agent, a father of four, and has over seven years of experience in the child care industry. Brian will be supported by a team-oriented and customer-focused staff. Cabin Fever will retain the services of a CPA firm to perform professional company audits, prepare taxes and payroll, and serve as a business consultant to assist in setting achievable long-range strategic goals.

Based on the current prices in the child recreation market, Cabin Fever has the potential to make sales of $158,000 the first year. With good management, we expect a revenue growth of five percent annually. The following ratios apply in the first year:

  • Gross Margin above 95%
  • Net Profit Margin above 12%
  • Pre-tax Return on Assets over 20%
  • Net Worth over $76,000 by year three

We will minimize risk factors to Cabin Fever’s success by:

  • Obtaining sufficient capital to build and cover expenses of initial operation. All investor capital will be held in escrow until the project is totally funded.
  • Minimizing overhead costs, which increases the bottom line profit.
  • Building a sufficient customer base. We have determined an excellent location using demographics, and our aggressive marketing program will ensure the desired results.
  • Establishing community involvement to demonstrate how the business will contribute to a better quality of life.
  • All payments will be cash or check, which eliminates the need for invoicing and collections.

Childrens recreation center business plan, executive summary chart image

1.1 Mission

  • To provide the greater Bemidji area with a safe, fun, exciting (and profitable) child entertainment facility for children ages 2-5, and their parents, which will help children grow physically, emotionally and mentally through interactive play with their parents, peers and the facility itself.
  • To listen intently to customer needs regarding the entertainment, activities and facilities relating to safety, environment and services and act accordingly with respect to those needs.
  • Develop a system of safety, security and accountability on the property between the staff, paying clientele and the general public.

1.2 Keys to Success

1.3 objectives.

  • Attract 30% of my target market to use “Cabin Fever” 1.5 times per month in the 1st year. Based upon the most recent census and demographic statistics available for this region, achieving this objective would mean attracting 3,600 paying children and 1,080 adults through the door the 1st year.
  • Gain market share of 40% by 3rd year.
  • Reduce debt load 37% by end of 3rd year.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Cabin Fever – Child Fun Center is a start-up business that will be owned, operated and managed by Brian Solum. Cabin Fever is an adult supervised children’s play center that offers a series of parent/child activities devoted to the physical, emotional and social development of children. We plan to offer a large, full scale play structure for the child and a smaller play structure for toddlers. In addition, we will also offer nominal vending, snacks and beverages for customers. The facilities are designed to entertain, exercise and stimulate children while reinforcing good social skills in a group play environment.

Cabin Fever offers a unique service in that there is no other program like it in the city of Bemidji or outlying areas. Though the city does have a restaurant with a small scale facility and run some classes for children through their parks and recreation department along with a gymnastics facility open to the public, they are not part of a comprehensive program for kids and parents. Cabin Fever will be a year round, indoor facility that hopes to be located in the booming commercial center northwest of town.

Over the past five years, there has been tremendous housing growth in the Bemidji area. Most these units are being bought or rented by families with young children. Brian Solum is starting Cabin Fever to offer parents and children a safe and exciting environment in which to spend time together and play.

Brian is a parent of three boys and has over seven years experience in the child care industry. He also has four years in a customer service based profession (real estate sales) with an additional two years sales management experience so he is currently capable of handling the sales/management, finance/administration and safety/customer relations areas, respectively.

  • Working Name : Cabin Fever – Child Fun Center
  • Location : Hoping for northwest Bemidji location near major shopping area, motels and airport.
  • History : Start-up business for Bemidji, MN but this type of business has been successful in over 8,500 cities in the US and is also internationally in the UK, Spain, Australia, Canada, France and Japan.
  • Services : Active Play = Fun, physical, social and mental entertainment to kids and parents along with modest food/beverage sales.
  • Customers : Children ages 2-5 and their parents.

2.1 Start-up Summary

The start-up expenses for Cabin Fever include, play equipment, payroll, utilities, legal services, debt service and office materials needed for the facility. Brian Solum will invest $32,000. In addition, Brian will secure up to $100,800 in long-term financing to fund the enterprise. We will incur another $8,000 in short-term debt to finish financing.

Long-term assets includes most play equipment, and a larger service counter for the cafe area. Current assets includes furniture, lighting fixtures, some of the less durable play equipment, and appliances for the cafe area.

Childrens recreation center business plan, company summary chart image

Start-up Funding
Start-up Expenses to Fund $17,800
Start-up Assets to Fund $123,000
Total Funding Required $140,800
Assets
Non-cash Assets from Start-up $115,000
Cash Requirements from Start-up $8,000
Additional Cash Raised $0
Cash Balance on Starting Date $8,000
Total Assets $123,000
Liabilities and Capital
Liabilities
Current Borrowing $8,000
Long-term Liabilities $100,800
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $108,800
Capital
Planned Investment
Brian Solum $32,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $32,000
Loss at Start-up (Start-up Expenses) ($17,800)
Total Capital $14,200
Total Capital and Liabilities $123,000
Total Funding $140,800
Start-up
Requirements
Start-up Expenses
Legal $2,000
Stationery etc. $250
Brochures / Advertising $1,500
Insurance $1,200
Payroll $2,400
Utilities / Phone $1,450
Research and Development $2,000
Expensed Play/Operating Equipment $5,000
Office Supplies $2,000
Total Start-up Expenses $17,800
Start-up Assets
Cash Required $8,000
Other Current Assets $25,000
Long-term Assets $90,000
Total Assets $123,000
Total Requirements $140,800

2.2 Company Ownership

Ownership and legal establishment is anticipated as a Sole Proprietorship and will be owned, operated and managed by Brian Solum with financial backing from a silent partner.

Products and Services

The service I am selling is called “Active Play.”

Pro Tip:

Vicarious Active Play for Parents There was a saying in my house when I grew up:  “If mama ain’t happy, ain’t nobody happy.”  I think what was meant by this was that we could drive her nuts on occasion, and when she was “nuts” we all suffered.  Those occasions were typically when, as children, we were bored or stuck in the house.  Therefore, I believe that this business is also selling fun, rest, and a social outlet for parents. When the kids are occupied, happy parents can enjoy a book, the newspaper, or a friend’s conversation over a cup of coffee or lunch. However, parents are also encouraged to participate with their children on the equipment themselves. Due to the nature and size of some equipment, it is able to withstand and support adults. The youngest children, in particular, will be happiest and most secure when playing with a parent.

Coffee, tea, juice, and snacks We have a small cafe area where parents can purchase food and drinks from a (very) small menu, including kid-friendly items like peanut butter and jelly or cheese and tomato sandwiches, animal crackers, fresh carrot and celery matchsticks, and muffins from a local bakery. The items are either pre-made or require very little assembly. It is important to us to offer only healthy and appropriate snacks. We are currently planning to offer only a couple different kinds of coffee and tea, but if we get enough interest, we may invest in an espresso machine later on, and train our part-time help as baristas, since the current trend toward gourmet coffees includes young parents.

Market Analysis Summary how to do a market analysis for your business plan.">

My market research was directly retrieved from the 2000 US Census, 2002 NARC Census and the BASC 2000 Demographics Study. Per the same data, and to get an accurate idea of current (2003) data, my totals incorporated the projected 1.3% annual growth rate to the demographics. My data was then targeted to the selected townships that use Bemidji for schooling and shopping. They were typically townships within a 24-mile radius around Bemidji. My projected income data from this demographic assumes that only one parent of the households will accompany their children to the facility.

4.1 Market Segmentation

My market demographic is 100% targeted to families, specifically, households with children in the 2 – 5 year-old age group in the Bemidji area.

Childrens recreation center business plan, market analysis summary chart image

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Children 1% 4,000 4,052 4,105 4,158 4,212 1.30%
Parents 1% 1,200 1,216 1,232 1,248 1,264 1.31%
Other 0% 0 0 0 0 0 0.00%
Total 1.30% 5,200 5,268 5,337 5,406 5,476 1.30%

4.2 Target Market Segment Strategy

Our research into the local market has indicated that a concentrated target marketing effort will yield the best results. We are therefore focusing on the 1,200 households surrounding Bemidji with 4,000 children between 2 and 5 years of age. Children in this age range are typically not yet in school yet, and in need of diverse means of recreation, including “play groups” with children of their parents’ friends. As members of this demographic, my wife and I fully understand the need and benefit of offering our children diverse recreational and physical outlets. From experience, this demographic will look for and seek out recreational opportunities for their children for not only the child’s benefit, but for the parent’s benefit as well. Out-of-home facilities that can entertain kids and give parents needed respite are in high demand.

This market is greatly under-served with respect to the services Cabin Fever plans to offer in the greater Bemidji area. The school system can provide this type of recreation to an extent, and there are some businesses that have recreational outlets. However, it is my observation that similar facilities are either too small, seasonal, have health hazards, or are not geared to younger children and their family. Winter is long here, and weather is unpredictable. “Cabin Fever” will be a preferred destination for families looking for something new, fun, and exciting for themselves and their children, especially if it promotes physical and social growth.

4.3 Service Business Analysis

About Soft Contained Play Equipment (Soft Play)

Soft Contained Play Equipment is a visually stimulating and mentally exciting configuration of tubes, slides, ladders, nets and mazes. It also incorporates devices which apply the kids’ own energies to make something move mechanically, like a sign or a front-end loader or a fire truck steering wheel. Some equipment is also designed to stimulate the child’s playful creativity such as the double-sided Fantasy Role Play Panel and the Magic Ball Popper. The whole approach of Soft Contained Play Equipment is to design their equipment through the eyes of a child. It is then developed through consultation with child development experts and adheres to ASTM F1918-98 safety requirements.

The Business

As previously mentioned, Cabin Fever is all about family recreation, specifically, child development and fun. As parents continue to look for fun and exciting activities for their kids the family entertainment center (FEC) has become increasingly popular. FECs have traditionally encompassed multiple attractions such as bowling, skating, mini-golf, batting cages, etc… but the one development that has really spurred the popularity of the FEC is soft contained play equipment. Soft contained play systems continue to be major draws to recent FECs. Kids love the fun and interactive play they provide, while parents appreciate the increased safety measures.

Local Competitors

There is a competitive market in the Family Recreation industry in Bemidji. Currently there is a roller-rink, seasonal water park, bowling ally, Gym-Bin, BSU Rec-center and a few city organized activities on a seasonal basis. However, there is no facility dedicated exclusively to building the social, physical, and mental interactions of children ages 2-5 and their parents in an exciting and stimulating environment.

4.3.1 Competition and Buying Patterns

Families make choices for family recreation activities based on cost, availability of activities appropriate for the entire household, and fun. Currently in Bemidji, activities for children under 5 are an after-thought. There may be a smaller wading pool at one end of the water park, or a special roller-skating class for 4 and 5 year olds. This discrepancy is most keenly felt by parents in the winter, when normal outdoor activities are curtailed for the youngest children. At the moment, parents of small children must choose between a small array of limited activities on a schedule not of their choosing, if they want any out-of-home play.

Safety is another major concern for parents of young children. Activities and venues that are perfectly safe for 10-year-olds may be extreme hazards for very young children. The need to be right next to their child during every moment of play in any of the existing offerings does not alow parents any respite or recreation.

Strategy and Implementation Summary

Emphasize Customer Service Cabin Fever will differentiate themselves from other facilities. We will establish our business offering as a clear and viable alternative for our target market.

Build a Relationship-Oriented Business Build long-term relationships with clients, not just an occasional visit. Let them become dependent on Cabin Fever. Make them understand the value of our services.

Focus on Target Markets We need to focus our offerings on the young family who want a place outside the home to have fun, relax, and experience top quality play equipment services.

5.1 Competitive Edge

Cabin Fever’s competitive edge is its positioning as a strategic ally with our customers. By building a business based on long-standing relationships with satisfied customers, we simultaneously build defenses against competition. The longer the relationship stands, the more we help our customers understand what we offer them and why they should both frequent Cabin Fever, and refer it to other families. In close-knit communities like Bemidji, reputation is extremely important, and word-of-mouth advertising is invaluable. The 2 other factors in our competitive edge are:

  • Location : Best location of any child type activity center — At the intersection of Interstate Highways 2 and 71 in the prime business district of the area.
  • Service : Equipment and facilities to appropriately entertain the age group as well amenities catering to adults and parents in the same building. No other indoor facility in Bemidji offers such diverse services and facilities under one roof.

I do not expect parents to choose Cabin Fever exclusively over these other facilities 100% of the time, but I do believe that Soft Play equipment would be the facility of choice for play groups, birthday parties, and child recreation in the Bemidji area. There is also the possibility of Social Government Services and other health professionals directing their clients to the facility for potential therapy issues.

5.2 Marketing Strategy

Technically, my customers can come from anywhere: male and female, all races, every income level, and can be local residents or tourists to the area. That is why our marketing plan will start at the construction phase; by keeping in mind: if it looks fun, people will come. Thus the main factor to success is demonstrating that a person can enjoy themselves at the center while participating in an activity they choose. Realistically, I expect that initial customers will be more educated and affluent than the area’s average, since those types of family are generally the most concerned with providing appropriate stimulation for their very young children. We will therefore make sure to post flyers and advertisements where this group can see them.

By being on site full-time for the first year, I can make sure that customers are satisfied and can also gather information from them about the types of entertainment they most desire. This type of first-hand market research will prove invaluable in attracting more customers and retaining existing ones. A good experience for parents and children will produce best kind of advertising: word-of-mouth recommendations.

We will supplement this informal marketing with announcements, advertisements in the local newspapers and our website:

  • Print Advertising : The Bemidji Pioneer, our local daily newspaper with a circulation of over 22,000, will feature daily ads 2 weeks prior to grand opening and weekly ones thereafter.
  • Direct Mailing/Phone : Mailing lists relating to my target market are available and would be utilized weekly prior to and upon grand opening and on a monthly basis thereafter. Also, mailings and phone contact would be made to local youth organizations such as church groups, scouts and other social clubs that serve children.
  • Signage : Because Bemidji is a vacation destination, the tourism market could be substantial. Roadside billboards on Highways 71 and 2 would be implemented on the four major conduits into town. Also, all local hotels, motels and resorts would be solicited to provide signage.
  • Other Businesses : A relationship with the other businesses in town that cater to birthday parties (Party Store, Special Occasions, pizza restaurants) would be established to try and promote traffic to the facility. Advertising discounts will be offered in exchange for their service.

5.3 Sales Strategy

Cabin Fever will provide a venue in which young children can really enjoy their leisure time by participating in fun and exciting activities that require minimum strength or physical ability. Supported with great service and offered at competitive prices, I believe we have the winning combination.

Once customers choose to come to our location, they have already made a choice to buy our services. We get them there with marketing; we get them back again and again by continuing to offer high-quality, safe, and fun experiences for and with their young children. Our sales strategy involves continuing informal surveys of our customers about their preferences and needs, and keeping an open mind about changes in the adult areas. We may, in the future, institute a small cafe-type service, or offer space for young family book clubs, and so on, depending on feedback from parents.

5.3.1 Sales Forecast

My sales forecast assumes that, on average, 37% of my market (1,465 children, out of a possible 4,000) will visit 1.5 times per month, at an admission price per child of $4.75. We project that parents will spend an average of $4 per visit on food and beverages, at a 20% cost of goods. This would allow me an 80% markup on food and beverages, a reasonable amount given the savings we will get from doing prep work ourselves in the mornings.

Sales will be higher in the winter months, when outdoor competition and free activities are limited, and lower in the summer. In keeping with my sales goals, I anticipate reaching 40% of my market by the 3rd year.

Childrens recreation center business plan, strategy and implementation summary chart image

Sales Forecast
Year 1 Year 2 Year 3
Sales
Child Admission $125,222 $131,483 $138,057
Additional Parent Spending $33,170 $34,829 $36,570
Total Sales $158,392 $166,312 $174,627
Direct Cost of Sales Year 1 Year 2 Year 3
Child Admission $0 $0 $0
Additional Parent Spending $6,634 $6,966 $7,314
Subtotal Direct Cost of Sales $6,634 $6,966 $7,314

Web Plan Summary

We are currently working on developing a website for Cabin Fever. A friend of the family is doing the design work for free, and Brian’s wife (who has a thorough knowledge of HTML) will update the content regularly – we do not plan on including any e-commerce capabilities, since they are unnecessary; the website is primarily a marketing tool. We plan to launch our website early in 2005.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Management: Initially, and for the first year, of operation I anticipate acting as owner/operator/manager. In the future, depending on cash flow or if a gap in service is identified, a FT manager would be implemented to work alongside myself and the rest of the team. Management will be responsible for overseeing all business aspects including but not limited to: Deposits, marketing, safety, scheduling, customer service and staff support and training, cleaning and general maintenance, food prep and service. Minimum qualifications are:

  • Child Safety, First Aid / CPR certified
  • Three years management experience
  • Mature, responsible adult
  • Enthusiastic, flexible and self motivated
  • Knowledge of marketing
  • High sense of professionalism

FT Employees : Based on my assumed hours of operation, I anticipate hiring one FT employee working a 45 hour week. I will look for adults interested and experienced with children who are child safety CPR and first aid certified. Responsibilities will include but are not limited to: Checking in and greeting customers as they arrive, general cleaning and light maintenance, food service. Minimum qualifications are:

  • Experience with children in a play setting
  • Child Safety First Aid / CPR certified

7.1 Personnel Plan

The company will make gradual investments in personnel on a need basis, always keeping in mind the number of children and parents serviced at the facility with respect to cash flow. Additional full-time paid management will be addressed after the first year of operation and an additional PT employee is built in to the Personnel Table. As owner, I do plan on being on site full-time and will fill the managerial role.

I am committed to paying my employees a fair and equitable wage for their hard work, and giving them benefits such as sick time and vacation time.

Personnel Plan
Year 1 Year 2 Year 3
Owner/Manager $20,000 $25,000 $30,000
FT Employee $24,000 $25,000 $26,000
PT Employee $7,200 $7,200 $7,200
PT Employee $7,200 $7,200 $7,200
Other $0 $0 $0
Total People 4 4 4
Total Payroll $58,400 $64,400 $70,400

Financial Plan investor-ready personnel plan .">

The most important element in my financial plan is initiating, maintaining, and improving the factors that create, stabilize, and increase the cash flow. These items are:

  • High visibility so as to create customer flow.
  • A trained, enthusiastic and knowledgeable staff that answers to customer needs to keep them coming back again and again.
  • Annual modernization and update of the facility equipment to create new experiences for children.

8.1 Important Assumptions

Commercial lending is currently set at 7% for long term (20 year) lending.

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 7.00% 7.00% 7.00%
Long-term Interest Rate 7.00% 7.00% 7.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0

8.2 Break-even Analysis

The Break Even chart assumes fixed monthly expenses of approximately $9,600. The expenses are the total of estimated monthly utilities, phone, payroll, legal, insurance, marketing and rent figures. Variable monthly costs are shown as a percentage of total sales. Average Monthly Sales for the first year are anticipated around $13,200 and the break even point would be at $10,069, leaving adequate room and cash flow for possible costs initially overlooked. These figures show a comfortable cushion for operating expenses.

Childrens recreation center business plan, financial plan chart image

Break-even Analysis
Monthly Revenue Break-even $9,329
Assumptions:
Average Percent Variable Cost 4%
Estimated Monthly Fixed Cost $8,938

8.3 Projected Profit and Loss

The company will show a profit in the first year of operation. The yearly analysis is indicated in the table below, and the monthly analysis can be found in the appendix. Our most significant operating expenses will be payroll, marketing, and rent. We project a modest net profit increasing gradually over the next three years as we streamline operations.

Childrens recreation center business plan, financial plan chart image

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $158,392 $166,312 $174,627
Direct Cost of Sales $6,634 $6,966 $7,314
Other Costs of Goods $0 $0 $0
Total Cost of Sales $6,634 $6,966 $7,314
Gross Margin $151,758 $159,346 $167,313
Gross Margin % 95.81% 95.81% 95.81%
Expenses
Payroll $58,400 $64,400 $70,400
Marketing/Promotion $12,668 $13,089 $13,521
Depreciation $6,960 $7,000 $7,000
Rent $12,000 $12,000 $12,000
Utilities / Phone / Internet $7,680 $7,680 $7,680
Insurance $4,800 $4,800 $4,800
Payroll Taxes $0 $0 $0
CPA $3,000 $3,000 $3,000
Website hosting $250 $300 $325
Office Expenses $1,500 $1,500 $1,500
Total Operating Expenses $107,258 $113,769 $120,226
Profit Before Interest and Taxes $44,500 $45,577 $47,087
EBITDA $51,460 $52,577 $54,087
Interest Expense $7,105 $6,202 $5,259
Taxes Incurred $11,218 $11,812 $12,548
Net Profit $26,176 $27,562 $29,279
Net Profit/Sales 16.53% 16.57% 16.77%

8.4 Projected Cash Flow

Long Term Debt : My long term debt payments are based on a 10-year note, principle balance of $100,800 @ 7% interest. Principal repayments are shown below, while interest is listed in the profit and Loss. Although the yearly projections indicate a straight-line repayment, we may pay off more principal after year one, depending on cash flow.

Capital Improvements : Making changes to the play structure will need to occur as to keep the facility fresh and new for customers. These changes will take place on an annual basis after the first year with the liquidation of old play materials and the acquisition of new ones.

Childrens recreation center business plan, financial plan chart image

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $158,392 $166,312 $174,627
Subtotal Cash from Operations $158,392 $166,312 $174,627
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $6,000 $6,000
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $158,392 $172,312 $180,627
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $58,400 $64,400 $70,400
Bill Payments $63,026 $65,644 $67,898
Subtotal Spent on Operations $121,426 $130,044 $138,298
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $2,665 $2,670 $2,665
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $10,800 $10,800 $10,800
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $12,000 $12,000
Dividends $0 $0 $0
Subtotal Cash Spent $134,891 $155,514 $163,763
Net Cash Flow $23,501 $16,798 $16,864
Cash Balance $31,501 $48,299 $65,163

8.5 Projected Balance Sheet

My Projected Balance Sheet shows that I should not have any difficulty meeting my debt obligations. My Marketing Plan should be sufficient to meet the projections. Most significantly, Cabin Fever’s net worth will increase to approximately $77,500 by year three.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $31,501 $48,299 $65,163
Other Current Assets $25,000 $19,000 $13,000
Total Current Assets $56,501 $67,299 $78,163
Long-term Assets
Long-term Assets $90,000 $102,000 $114,000
Accumulated Depreciation $6,960 $13,960 $20,960
Total Long-term Assets $83,040 $88,040 $93,040
Total Assets $139,541 $155,339 $171,203
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $3,830 $5,536 $5,585
Current Borrowing $5,335 $2,665 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $9,165 $8,201 $5,585
Long-term Liabilities $90,000 $79,200 $68,400
Total Liabilities $99,165 $87,401 $73,985
Paid-in Capital $32,000 $32,000 $32,000
Retained Earnings ($17,800) $8,376 $35,939
Earnings $26,176 $27,562 $29,279
Total Capital $40,376 $67,939 $97,218
Total Liabilities and Capital $139,541 $155,339 $171,203
Net Worth $40,376 $67,939 $97,218

8.6 Business Ratios

The following table outlines some of the more important ratios from the Recreation Center industry. The final column, Industry Profile, details specific ratios based on the industry as it is classified by the Standard Industry Classification (SIC) code, 7999.

We project a higher ratio of long-term to short-term liabilities than is the industry standard. We also project higher expenses for operating expenses and advertising; part of this discrepancy is the result of being a start-up, with no existing reputation. Another is our committment to pay employees a fair wage with decent benefits, including sick time and vacation time. All asset to liability ratios indicate a high ability to pay our creditors.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 5.00% 5.00% 4.94%
Percent of Total Assets
Other Current Assets 17.92% 12.23% 7.59% 36.35%
Total Current Assets 40.49% 43.32% 45.66% 43.63%
Long-term Assets 59.51% 56.68% 54.34% 56.37%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 6.57% 5.28% 3.26% 21.68%
Long-term Liabilities 64.50% 50.99% 39.95% 31.17%
Total Liabilities 71.07% 56.26% 43.21% 52.85%
Net Worth 28.93% 43.74% 56.79% 47.15%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 95.81% 95.81% 95.81% 100.00%
Selling, General & Administrative Expenses 79.29% 79.24% 79.04% 76.74%
Advertising Expenses 4.42% 4.21% 4.01% 2.84%
Profit Before Interest and Taxes 28.09% 27.40% 26.96% 2.11%
Main Ratios
Current 6.16 8.21 14.00 1.05
Quick 6.16 8.21 14.00 0.69
Total Debt to Total Assets 71.07% 56.26% 43.21% 62.49%
Pre-tax Return on Net Worth 92.62% 57.96% 43.02% 2.98%
Pre-tax Return on Assets 26.80% 25.35% 24.43% 7.95%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 16.53% 16.57% 16.77% n.a
Return on Equity 64.83% 40.57% 30.12% n.a
Activity Ratios
Accounts Payable Turnover 17.45 12.17 12.17 n.a
Payment Days 27 25 30 n.a
Total Asset Turnover 1.14 1.07 1.02 n.a
Debt Ratios
Debt to Net Worth 2.46 1.29 0.76 n.a
Current Liab. to Liab. 0.09 0.09 0.08 n.a
Liquidity Ratios
Net Working Capital $47,336 $59,099 $72,578 n.a
Interest Coverage 6.26 7.35 8.95 n.a
Additional Ratios
Assets to Sales 0.88 0.93 0.98 n.a
Current Debt/Total Assets 7% 5% 3% n.a
Acid Test 6.16 8.21 14.00 n.a
Sales/Net Worth 3.92 2.45 1.80 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
Child Admission 0% $8,550 $9,894 $10,986 $12,456 $13,296 $12,944 $11,532 $9,908 $9,740 $9,880 $7,962 $8,074
Additional Parent Spending 0% $2,160 $2,711 $3,244 $3,574 $3,840 $3,498 $2,442 $2,410 $2,646 $2,659 $1,962 $2,026
Total Sales $10,710 $12,605 $14,230 $16,030 $17,136 $16,442 $13,974 $12,318 $12,386 $12,539 $9,924 $10,100
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Child Admission $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Additional Parent Spending $432 $542 $649 $715 $768 $700 $488 $482 $529 $532 $392 $405
Subtotal Direct Cost of Sales $432 $542 $649 $715 $768 $700 $488 $482 $529 $532 $392 $405
Personnel Plan
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Owner/Manager 0% $0 $0 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
FT Employee 0% $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
PT Employee 0% $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600
PT Employee 0% $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600
Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total People 4 4 4 4 4 4 4 4 4 4 4 4
Total Payroll $3,200 $3,200 $5,200 $5,200 $5,200 $5,200 $5,200 $5,200 $5,200 $5,200 $5,200 $5,200
Pro Forma Profit and Loss
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales $10,710 $12,605 $14,230 $16,030 $17,136 $16,442 $13,974 $12,318 $12,386 $12,539 $9,924 $10,100
Direct Cost of Sales $432 $542 $649 $715 $768 $700 $488 $482 $529 $532 $392 $405
Other Costs of Goods $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $432 $542 $649 $715 $768 $700 $488 $482 $529 $532 $392 $405
Gross Margin $10,278 $12,063 $13,581 $15,315 $16,368 $15,742 $13,485 $11,836 $11,857 $12,007 $9,531 $9,694
Gross Margin % 95.97% 95.70% 95.44% 95.54% 95.52% 95.75% 96.51% 96.09% 95.73% 95.76% 96.05% 95.99%
Expenses
Payroll $3,200 $3,200 $5,200 $5,200 $5,200 $5,200 $5,200 $5,200 $5,200 $5,200 $5,200 $5,200
Marketing/Promotion 8% $857 $1,008 $1,138 $1,282 $1,370 $1,315 $1,118 $985 $990 $1,003 $794 $808
Depreciation $580 $580 $580 $580 $580 $580 $580 $580 $580 $580 $580 $580
Rent $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Utilities / Phone / Internet $640 $640 $640 $640 $640 $640 $640 $640 $640 $640 $640 $640
Insurance $1,200 $0 $0 $1,200 $0 $0 $1,200 $0 $0 $1,200 $0 $0
Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
CPA $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Website hosting 15% $0 $0 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25
Office Expenses $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125
Total Operating Expenses $7,852 $6,803 $8,958 $10,302 $9,190 $9,135 $10,138 $8,805 $8,810 $10,023 $8,614 $8,628
Profit Before Interest and Taxes $2,426 $5,260 $4,623 $5,013 $7,178 $6,607 $3,347 $3,031 $3,047 $1,984 $917 $1,066
EBITDA $3,006 $5,840 $5,203 $5,593 $7,758 $7,187 $3,927 $3,611 $3,627 $2,564 $1,497 $1,646
Interest Expense $628 $622 $615 $608 $602 $595 $589 $582 $576 $569 $563 $556
Taxes Incurred $539 $1,392 $1,202 $1,321 $1,973 $1,804 $828 $735 $741 $425 $106 $153
Net Profit $1,259 $3,247 $2,805 $3,083 $4,603 $4,208 $1,931 $1,714 $1,730 $991 $248 $357
Net Profit/Sales 11.75% 25.76% 19.72% 19.23% 26.86% 25.59% 13.82% 13.91% 13.97% 7.90% 2.50% 3.54%
Pro Forma Cash Flow
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Cash Received
Cash from Operations
Cash Sales $10,710 $12,605 $14,230 $16,030 $17,136 $16,442 $13,974 $12,318 $12,386 $12,539 $9,924 $10,100
Subtotal Cash from Operations $10,710 $12,605 $14,230 $16,030 $17,136 $16,442 $13,974 $12,318 $12,386 $12,539 $9,924 $10,100
Additional Cash Received
Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $10,710 $12,605 $14,230 $16,030 $17,136 $16,442 $13,974 $12,318 $12,386 $12,539 $9,924 $10,100
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations
Cash Spending $3,200 $3,200 $5,200 $5,200 $5,200 $5,200 $5,200 $5,200 $5,200 $5,200 $5,200 $5,200
Bill Payments $189 $5,668 $5,581 $5,695 $7,153 $6,743 $6,447 $6,215 $4,825 $4,906 $5,706 $3,898
Subtotal Spent on Operations $3,389 $8,868 $10,781 $10,895 $12,353 $11,943 $11,647 $11,415 $10,025 $10,106 $10,906 $9,098
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $222 $222 $222 $222 $222 $222 $222 $222 $222 $222 $222 $223
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900 $900
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $4,511 $9,990 $11,903 $12,017 $13,475 $13,065 $12,769 $12,537 $11,147 $11,228 $12,028 $10,221
Net Cash Flow $6,199 $2,615 $2,327 $4,013 $3,661 $3,377 $1,205 ($219) $1,239 $1,311 ($2,105) ($121)
Cash Balance $14,199 $16,814 $19,141 $23,154 $26,815 $30,192 $31,396 $31,177 $32,416 $33,727 $31,622 $31,501
Pro Forma Balance Sheet
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Assets Starting Balances
Current Assets
Cash $8,000 $14,199 $16,814 $19,141 $23,154 $26,815 $30,192 $31,396 $31,177 $32,416 $33,727 $31,622 $31,501
Other Current Assets $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000
Total Current Assets $33,000 $39,199 $41,814 $44,141 $48,154 $51,815 $55,192 $56,396 $56,177 $57,416 $58,727 $56,622 $56,501
Long-term Assets
Long-term Assets $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000 $90,000
Accumulated Depreciation $0 $580 $1,160 $1,740 $2,320 $2,900 $3,480 $4,060 $4,640 $5,220 $5,800 $6,380 $6,960
Total Long-term Assets $90,000 $89,420 $88,840 $88,260 $87,680 $87,100 $86,520 $85,940 $85,360 $84,780 $84,200 $83,620 $83,040
Total Assets $123,000 $128,619 $130,654 $132,401 $135,834 $138,915 $141,712 $142,336 $141,537 $142,196 $142,927 $140,242 $139,541
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $0 $5,482 $5,392 $5,456 $6,928 $6,528 $6,238 $6,054 $4,663 $4,714 $5,576 $3,766 $3,830
Current Borrowing $8,000 $7,778 $7,556 $7,334 $7,112 $6,890 $6,668 $6,446 $6,224 $6,002 $5,780 $5,558 $5,335
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $8,000 $13,260 $12,948 $12,790 $14,040 $13,418 $12,906 $12,500 $10,887 $10,716 $11,356 $9,324 $9,165
Long-term Liabilities $100,800 $99,900 $99,000 $98,100 $97,200 $96,300 $95,400 $94,500 $93,600 $92,700 $91,800 $90,900 $90,000
Total Liabilities $108,800 $113,160 $111,948 $110,890 $111,240 $109,718 $108,306 $107,000 $104,487 $103,416 $103,156 $100,224 $99,165
Paid-in Capital $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000 $32,000
Retained Earnings ($17,800) ($17,800) ($17,800) ($17,800) ($17,800) ($17,800) ($17,800) ($17,800) ($17,800) ($17,800) ($17,800) ($17,800) ($17,800)
Earnings $0 $1,259 $4,505 $7,311 $10,394 $14,997 $19,205 $21,136 $22,850 $24,580 $25,571 $25,819 $26,176
Total Capital $14,200 $15,459 $18,705 $21,511 $24,594 $29,197 $33,405 $35,336 $37,050 $38,780 $39,771 $40,019 $40,376
Total Liabilities and Capital $123,000 $128,619 $130,654 $132,401 $135,834 $138,915 $141,712 $142,336 $141,537 $142,196 $142,927 $140,242 $139,541
Net Worth $14,200 $15,459 $18,705 $21,511 $24,594 $29,197 $33,405 $35,336 $37,050 $38,780 $39,771 $40,019 $40,376

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Guide to growing your gymnastics gym

  • Business Management

The Entrepreneur’s Ultimate Guide to Starting a Children’s Gym

Picture of Jill Purdy

  • April 14, 2022

Opening any small business is an exciting, yet somewhat scary experience. The truth is that nearly half of small businesses in the United States will close within five years of opening. That statistic isn’t meant to alarm you, but rather to emphasize how critical planning and teamwork are to building a foundation for success that will keep your business growing for as long as you want!

The team at Jackrabbit Class , and Frank Shalein, CEO of 3rd Level Consulting , have been privileged to work with thousands of gymnastics gym owners. We’ve seen how committed the most successful owners have been when gathering information needed to make thoughtful decisions.

The strongest foundation for a successful gymnastics gym begins well before you open your doors. As a gym owner, you have numerous decisions to make. We’ve put together this guide that dives into the critical aspects of starting a children’s gym to guide you along the way:

  • Clarify your vision
  • Handle the legal aspect
  • Understand the financial opportunity in your market
  • Finance your business
  • Obtain facilities and equipment
  • Build your team
  • Establish an ideal work/life balance
  • Create and execute your marketing strategy
  • Keep students and parents happy
  • Establish a gym operation plan
  • Hold on to your vision

Here are 11 business-building steps to take to grow your children’s gym.

1. Clarify your vision

You probably didn’t decide to open a children’s gym out of the blue. Something is driving you – perhaps whatever drove you into gymnastics. You also probably have ideas of what kind of life you’re looking for as a business owner. What is your why?

The first step for any new business owner is to clarify their vision of what their business will do and who it will serve, as well as what they want their role in the business to be. To help you determine your vision, explore topics such as:

  • Your differentiator: identify what unique niche or need your gym will fulfill. The answer to this will come from your own passions and skills, plus what your local market needs or wants, even if it doesn’t know it yet.
  • Your business model: determine your plan to reach and stay in the “profit zone.” If you come up with a hyper-niche market, you need to assess what sort of business model will work for this specific target market.

We’ll help you with what questions to ask yourself, what to research about your area and demographics, and guide you through some variables in different business models to consider. The goal is for you to have a clear vision about what kind of gym you’re opening, for whom, and what its basic model for making money is first.

2. Handle the legal aspect

There’s no getting around it. Setting up and running a business means you now have a variety of legal aspects that must be addressed. Ask yourself the following questions:

  • What’s the legal structure of the business? Aside from determining your business model, you need to decide on the legal structure of your business because how you set up your business has a great impact on all legal aspects.
  • Are there licensing and zoning issues to consider? The answers can affect where you locate your gym, what licenses you’ll need to operate it, and whether any of your staff require certain professional licenses or certifications .
  • What kind of insurance do you need? You will need more types of coverage than you think to protect yourself, your business, and your team, as well as meet local legal requirements.
  • What intellectual property do you need to protect? This includes your gym name and logo if you have one in mind already.
  • Who should be on your board of advisors? No one runs a successful gymnastics gym alone. You’ll want to have the right team of professional advisors to guide you through these legal aspects and more.

While the legal conversations and to-do list is not always the most exciting part of owning and operating a gym, it’s certainly one of the most important!

3. Understand the financial opportunity in your market

During the vision stage, you researched your local market to understand a bit about the opportunity and challenges it offers. It’s important to understand these variables of your gym so you can price accordingly.

If you’re unsure where to start, seek professional assistance in developing your marketing share. You’ll be ready for conversations with landlords, investors, or bankers who will ask how you got your numbers.

Want to learn more about how other gyms in the industry are pricing their classes, how often they discount, and how much they are raising prices over the last 3 years? Download a free copy of the 2022 Industry Benchmark Report for insight to consider when opening your gym!

Get my copy now

4. Finance your business

Financial mismanagement is one of the main reasons new businesses don’t succeed. Mastering the finances of your gym is essential. When you designated a close group of peers and advisors, you likely selected people with a combination of financial and industry expertise. If not, consider this your warning to reconsider and share your advisory network accordingly!

Even with a board of advisors in place, it’s important you understand your own finances, financial needs, and financial expectations. That is a responsibility you can’t outsource. Things to consider as a new gym owner include:

  • How to create start-up and operating budgets.
  • Standard and unique options for raising capital for start-up (to avoid financing through credit) and when you need some extra capital down the line.
  • What kind of monthly financial statements do you need and how to read them.
  • How to handle challenges and tips for managing your cash flow .
  • What business metrics you should analyze to indicate the financial health of your gym.

Your gymnastics gym must be financially sound to stay in business. It’s important to set some expectations for the first couple of years of operation, plan when you should break even and when you should start realizing a profit. From here, you can identify and determine opportunities to expand!

5. Obtain facilities and equipment

You need to have a solid vision for your gym to start working out location and equipment logistics. The size of the facility you open sets a minimum boundary on your recurring costs and an upper boundary on your gym’s main source of revenue – providing classes and training. The location of your facility is likely critical to its ability to attract and keep students.

When looking at facilities, you should consider:

  • what size facility you need to realize your vision,
  • how to assess the pros and cons of different locations, and
  • how facility size impacts your financial projections.

The cost of your equipment is driven in part by the size of your facility. However, there are other equipment cost variables to consider, such as quality and longevity, and whether having some unique equipment gives your gymnastics gym a competitive advantage over others in your area.

With an idea of what size gymnastics program you can host in your facility, it’s time to build a team to help you make this dream become reality.

6. Build your team

You’re going to need a team of reliable staff. Even family members who plan to work at your gym are considered staff. When it comes to youth activities, the quality of your gymnastics program and reputation depends primarily on the quality of your staff. Not to mention, payroll is typically a business’s largest monthly expense even above facility costs.

When building a team, you should think about the following:

  • What kind of staff do you need on your team?
  • What roles can you outsource or possibly contract?
  • What should you address with your attorney with regard to hiring, firing, benefits, and management of employees?
  • What should be included in employee contracts and policy documents for your gym?
  • How do you plan to recruit and retain your staff?
  • What kind of internal training programs do you need?
  • How do you plan to build a company culture to support your vision of operational excellence and customer happiness?
  • How can you empower your staff to be ambassadors of your gym?

Having a well-rounded team is one of the best investments you can make in your gym. Curious what the market rate is running for coaches and office staff? (—> Check out the 2022 Industry Ben

chmark Report to see what other gyms are paying their staff!)

7. Establish an ideal work/life balance

Maintaining a healthy work/life balance is a must for any business owner. If running a gym takes all your time and focus, it negatively impacts both your work and your personal life. Maintaining a strong work/life balance doesn’t always happen naturally – you need to plan for it by:

  • Distinguishing between the high-value tasks that benefit most from your attention and those tasks that can be delegated or automated.
  • Learning how to trust your team.
  • Knowing the difference between bad stress and good stress so you can relieve and eliminate as much bad stress as possible.
  • Leveraging your positive stress into positive results.

You have four energy categories (mental, physical, emotional, and spiritual) that need recovery time from hard work, just like the body, to achieve peak performance. If you don’t manage your work/life balance in a way that keeps you motivated and engaged in your gym, you’ll undermine every other aspect of operating a successful business.

8. Create and execute your marketing strategy

Your gym may be state-of-the-art. You may have the most talented, empathetic instructors, coaches, and trainers to be found. That may not be as exciting as you’d hoped if the right prospective families don’t know about your gym. Having a marketing strategy in place is essential to attracting the right customers and setting yourself apart in the marketplace.

The great news for you as a small, local business owner is that the opportunities to promote your gym to new students have never been easier. The challenge is that there are so many tactics, both digital and print , that it can feel overwhelming to know which ones to use when, which are must-dos, and which don’t make sense for your gym right away.

It’s important to have a well-rounded strategy that includes word-of-mouth, social media presence, advertisement in online and print publications, and gym reviews. It’s also important to build your Google account to optimize your local search results to assist parents when looking for a local gym for their child.

If you build it, they will come – right?

9. Keep students and parents happy

Student lifetime value measures how long a student stays at your gym and how they generate revenue for your business. Put simply, the longer a student and family stay at your gymnastics gym, the more valuable they become and the greater ROI they provide your business.

In order to keep students returning year after year, it’s important to include key components of an amazing customer experience that instills gym loyalty in students and families and builds a sense of community among all your families by:

  • Laying out a formal vision and plan for inspiring customer delight.
  • Defining how your gym will provide an exceptional experience for students and families.
  • Making it easy for students and families to register for classes , pay fees , and stay connected with your gym.
  • Designing processes to address concerns, complaints, and unhappy parents as needed.
  • Transforming happy students and families into gym ambassadors and referral sources that keep your prospective student pipeline full.
  • Training and holding staff accountable for doing their part to execute your vision and customer delight plan.

Providing a high-quality gym facility and program are requirements to operate a financially stable gym. If you want a gym that’s thriving with both financial and personal rewards, using top-notch customer service to turn customers into a tight-knit community is the strongest advertising you could ask for.

10. Establish a gym operation plan

Gym operations will become your day-to-day focus but you can’t manage daily operations without putting a plan together. Here’s how you can get started:

  • Set up phone and internet systems
  • Set up and integrate class management software
  • Write operational policies and manuals on everything from gym safety and equipment maintenance to canceled class and absent student policies

There are all sorts of detailed decisions you have to make as a gym owner and document the information so you and your staff can act consistently as a team. Establishing an operational plan also requires you to identify key functions and tasks and then delegate them to staff or automate them through your class management software. Key functions include things such as:

  • Scheduling classes and staff
  • Managing class, family, and student information
  • Collecting fees and paying monthly bills
  • Facility and equipment management
  • Product inventory and sales
  • Recordkeeping and reporting

Having operational manuals to outline policies, processes, and requirements is something you’ll be glad you took the time to create. Having clear systems in place will let everyone on your team know exactly what needs to be done so your gym can be successful, even when you aren’t physically in the building!

Discover how to automate the operations of your gymnastics gym with class management software. Create your free Jackrabbit account today!

11. Hold on to your vision

As important as day-to-day operations are, you never want to lose sight of the vision for your gym. After all, it’s the owner’s responsibility to guide the gym and its people towards that vision. To ensure that your vision stays in focus, remember to:

  • Detail some of the tools and tips for staying on top of your gym’s finances and operations to ensure financial stability and opportunities for growth.
  • Identify new opportunities to grow your gym through ongoing analysis of your gym, your market, and the industry.
  • Ensure your gym is positioned for each phase of growth and how to assess when your gym may be ready to take a leap into the next phase.

Each gym owner has different dreams for their business. Perhaps you have visions of expanding your gymnastics gym into a multi-site location. Perhaps your vision is to develop an instructional system you can market and license to other gyms and coaches. Or maybe you want one, thriving gym where you can eventually transition into a more hands-off owner to enjoy its financial rewards.

Whatever your vision is, you need to proactively pursue growth by staying on top of what’s happening at your gym today and understanding how to take the next steps for the future.

Starting a new children’s gym is hard work

It takes considerable work to start any small business. Tremendous effort is required even before your gym opens its doors. Yet, we see how committed and motivated gym owners are to providing their students with a healthy, fun environment, which makes the business side of owning a gym completely worth it when you’re living your passion.

Here at Jackrabbit , we know it’s important to understand the industry in order to make sure your gym can stand out. That’s why we’ve compiled data over the last 3 years from over 4,000 youth activity centers to show the trends that are leaving and the trends that are on the rise in the 2022 Industry Benchmark Report. This report serves as a great resource for gym owners – new and old – so you can analyze how you measure up and find opportunities for growth!

Download your free copy of the 2022 Industry Benchmarks Report today!

ABOUT CO-AUTHOR FRANK SAHLEIN

Frank Sahlein is the CEO of 3rd Level Consulting , former co-owner of the Wings Center (Idaho USA), and developer of the SmartEDGE Resources online business management platform. A former gymnast and coach, Frank now travels globally to work with both child activity center associations and individual clients. The 3rd Level Consulting team provides an array of professional business services, including Membership subscriptions, business start-up or expansion planning, valuations, buy/sell services, training events, and more.

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sensory gym business plan

Gym Business Plan Template & PDF Example

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  • July 22, 2024
  • Business Plan

The business plan template for a gym

Creating a comprehensive business plan is crucial for launching and running a successful gym. This plan serves as your roadmap, detailing your vision, operational strategies, and financial forecasts. It helps establish your gym’s identity, navigate the competitive market, and secure essential resources for growth.

This article not only breaks down the critical components of a gym business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the fitness industry, this guide, complete with a business plan example, lays the groundwork for turning your gym concept into reality. Let’s dive in!

Our gym business plan follows a clear and straightforward structure, covering all the important areas you need in a business plan. Below are the key sections of our business plan:

  • Executive Summary : a quick look at your gym, its market landscape, management and financial plan.
  • Facility, Amenities & Equipment : what your gym looks like, what equipment it has, and its features.
  • Location & Accessibility : where your gym is and why it’s a good location for potential customers.
  • Memberships & Classes : types of memberships and classes available (as well as prices)
  • Key Stats : the industry size , growth and some recent important statistics on the gym industry.
  • Key Trends : the recent market trends defining and driving the gym and fitness industry (regulation, customers trends, etc.)
  • Key Competitors : who are your key competitors in the area and how they compare vs. your business.
  • SWOT : strengths, weaknesses, opportunities, and threats.
  • Marketing Plan : how you intend to attract and retain members / customers.
  • Timeline : major steps and goals from starting up to growth (12 months minimum plan)
  • Management : who runs the gym and what they do.
  • Financial Plan : the expected 5-year financial performance of your gym (revenue and profits), as well as how much you expect to spend.

sensory gym business plan

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Gym Business Plan

sensory gym business plan

Fully editable 30+ slides Powerpoint presentation business plan template.

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Executive Summary

The Executive Summary introduces your gym’s business plan, offering a brief look at your gym and its goals. It should cover your gym’s combination of fitness and wellness services, top-notch equipment, variety of membership plans, and prime location.

This section should also highlight how your gym fits into the broader gym market, how many direct competitors you have and who they are, as well as your unique selling points.

Finally, you should also include here details on the management and co-founding team (who they are and what they do), as well as a summary of your financial projections (5-year revenue and profits are enough).

Gym Business Plan Executive Summary Example

business plan gym exec summary 1

Business Overview

In the  business overview , you should clearly define your gym’s characteristics. This includes its name, location, facility details, membership plans, and the variety of classes offered. This part of the summary is critical for showcasing what makes your gym stand out in a  competitive  fitness industry.

Example: For instance, “FitFusion Gym,” situated in the city center, offers a 15,000 sq. ft. space with an open-plan design and state-of-the-art equipment. Its unique selling points include a comprehensive range of fitness classes, from HIIT to Yoga, and premium amenities like a wellness center. These features position FitFusion as a versatile and appealing fitness destination.

Market Overview

In this section, you should analyze the gym market, including its size, growth trends, and  key competitors . This gives context to where your gym fits within the industry and highlights how it can capitalize on current fitness trends.

Example: FitFusion Gym enters a robust U.S. market valued at $30.8 billion. It sets itself apart from the five main competitors in its vicinity by offering a blend of holistic wellness and cutting-edge fitness technology, tapping into the growing demand for integrated health and fitness experiences.

Management Team

Detailing the experience and roles of your management team is vital. This section should highlight their qualifications in gym and wellness management, underscoring their ability to drive the gym’s success.

Example: The CEO of FitFusion brings extensive experience in fitness management, guiding the gym’s strategic direction and operations. The CFO & Marketing Director, with a strong background in finance and marketing, plays a crucial role in managing the gym’s finances and developing effective  marketing strategies  to enhance customer engagement and retention.

Financial Plan

A clear presentation of financial goals and projections is key in this section. It should include targets for revenue and profit margins, offering insight into the gym’s financial health and growth prospects.

Example: With a target of $2.0 million in yearly revenue and a 22% profit margin by 2027, FitFusion Gym is positioned for significant growth. Its financial strategy is supported by an ambitious marketing approach and a focus on delivering exceptional customer experiences, aligning the gym for success in the competitive fitness market.

For a gym, the Business Overview section succinctly covers three critical components:

Facility, Amenities & Equipment

Detail the gym’s layout, showcasing a wide range of equipment for cardio, strength training, and flexibility exercises. Highlight unique amenities such as sauna rooms, personal training services, and on-site nutritionists that contribute to a holistic fitness environment.

Location & Accessibility

Describe the gym’s location, emphasizing its convenience for members, whether it’s close to residential areas, business districts, or has ample parking and public transport links. The aim is to illustrate how the gym’s location is strategically chosen to fit seamlessly into members’ daily routines.

Memberships & Classes

Explain the variety of memberships and classes available, catering to different preferences and schedules. Focus on the inclusivity of fitness programs, from beginner to advanced levels, and any unique offerings like group fitness classes, yoga sessions, or specialized training workshops that differentiate your gym from competitors.

Business Plan Gym Business overview 3

Industry Size & Growth

In the Market Overview section of your gym business plan, start by assessing the gym industry’s size and anticipated growth. This evaluation provides an understanding of the market’s potential and the opportunity for new entrants.

Key Market Trends

Next, discuss recent market trends, such as the increasing consumer focus on holistic health, incorporating both physical and mental wellness practices. For example, highlight the rising popularity of gyms offering a variety of fitness options, from traditional weightlifting to wellness classes like yoga and meditation, catering to a broader audience seeking comprehensive health solutions.

Competitive Landscape

A  competitive analysis  is not just a tool for gauging the position of your gym in the market and its key competitors; it’s also a fundamental component of your business plan. This analysis helps identify your gym’s unique selling points, essential for differentiating your business in a  competitive  market.

In addition, competitive analysis is integral in laying a solid foundation for your business plan. By examining various operational aspects of your competitors, you gain valuable information that ensures your business plan is robust, informed, and tailored to succeed in the current market environment.

Identifying Your Competitors in the Gym Industry

To begin the analysis, it’s imperative to identify and categorize local competitors. These encompass a spectrum of fitness establishments, including renowned chain gyms, specialized boutique studios, community-based fitness centers, and even online workout platforms. The competitive landscape extends beyond direct gym-to-gym rivalry, incorporating alternative fitness options like outdoor boot camps, virtual training programs, or home workout subscriptions.

Leverage digital tools and platforms such as Google Maps, Yelp, or industry-specific directories to map out competitor locations. Simultaneously, dive into customer reviews and ratings to gauge the  strengths and weaknesses  of rival gyms. For instance, positive feedback on “Peak Performance Gym’s” personalized training sessions highlights a competitive edge worth considering.

Business Plan_Gym_Market 3

Gym Competitors’ Strategies 

Analyzing the strategies of your competitors encompasses various facets:

A thorough examination of competitor strategies involves a multi-faceted approach:

  • Fitness Offerings:  Scrutinize the array of fitness services and programs offered. If “Mindful Movement Studio” gains traction with mindfulness-based workouts or niche programs like aerial yoga, it signals a trend towards holistic fitness approaches.
  • Training Methodologies:  Consider the diverse training methodologies adopted by competitors. A gym like “Strength & Conditioning Hub,” focusing on functional fitness and group classes, may attract a different demographic than “Cardio Fusion Fitness,” known for its cardio-centric programs.
  • Pricing Structures:  Conduct a comparative analysis of membership fees and pricing models vis-à-vis competitors. Are your rates in alignment with the budget-friendly options of “EconoFit” or more akin to the exclusive memberships at “Premier Fitness Retreat”?
  • Marketing Strategies :  Evaluate the marketing initiatives deployed by rival gyms. Are they heavily invested in social media campaigns, influencer partnerships, or local community engagement events?
  • Member Experience:  Analyze the holistic member experience provided by competitors. For instance, “Rejuvenate Wellness Center” might stand out for its holistic approach, offering nutritional counseling, spa facilities, and group therapy sessions in addition to workouts.
  • Operational Efficiencies:  Observe if competitors leverage technology for member engagement, facility management, or workout tracking. For example, “Virtual Vitality Gym” might excel in offering live-streamed classes and personalized virtual coaching.

What’s Your Gym’s Unique Value Proposition?

Crafting a distinct  value proposition  is pivotal for setting your gym apart. Identify your gym’s strengths and core offerings. It might specialize in cutting-edge equipment, an exclusive training methodology, or a diverse array of classes catering to all fitness levels.

Continuously gather member feedback and analyze industry trends to identify unmet needs or evolving preferences. For instance, an emerging interest in sustainability might prompt your gym to adopt eco-friendly practices or organize outdoor workout sessions to align with this trend.

Additionally, consider your gym’s physical location and its demographics. A gym nestled in a tech-centric neighborhood might emphasize digital fitness innovations, while one in a family-oriented community could prioritize childcare services and family-friendly programs.

Business Plan Gym Strategy

First, include here a SWOT analysis to identify the gym’s Strengths (such as cutting-edge equipment or a prime location), Weaknesses (like high operational costs or stiff competition), Opportunities (for example, a growing interest in fitness among the local population), and Threats (such as economic downturns affecting customer spending).

Business Plan Gym SWOT

Marketing Plan

Then, adding a marketing plan is another crucial component, detailing how the gym will attract and retain members through targeted advertising, promotions, social media engagement, and community events.

Marketing Channels

Leverage a mix of  marketing channels  to engage with potential and existing gym members.

Digital Marketing

  • Engage on Social Media:  Utilize platforms like Instagram, Facebook, and Twitter to share workout tips, success stories, and gym events. Foster an online fitness community through regular engagement.
  • Email Marketing:  Cultivate an email list and send newsletters featuring fitness advice, class updates, and promotional offers to keep members engaged.
  • Website and SEO:  Develop a user-friendly website showcasing gym amenities, class schedules, trainer profiles, and client testimonials. Optimize for local SEO to boost visibility in searches.

Local Advertising

  • Harness Local Marketing : Distribute flyers in nearby neighborhoods, participate in community events, and invest in local media advertising to expand your gym’s reach.
  • Host Community Events:  Organize fitness challenges, open days, or charity events to engage with the community and showcase your gym’s offerings.
  • Partnerships:  Collaborate with health-related businesses or local establishments for mutual promotion and referral programs.

Promotional Activities

  • Offer Attractive Deals:  Launch promotional campaigns like ‘New Year Fitness Challenges’ or ‘Summer Transformation Programs’. Provide trial memberships or discounts for new sign-ups to attract potential members.
  • Loyalty Programs:  Implement rewards for long-term members, offering perks like free classes or merchandise after a certain number of visits to foster member retention.
  • Referral Incentives:  Encourage existing members to refer new clients by providing discounts or free sessions as rewards, boosting word-of-mouth marketing.

Business Plan Gym Marketing Plan

Sales Channels

Efficient  sales strategies  within your gym are crucial for revenue generation and maintaining member satisfaction.

In-Gym Upselling 

Optimizing revenue during every member visit:

  • Personal Training Add-Ons:  Encourage members to explore additional services such as personal training sessions, nutrition consultations, or specialized fitness assessments during gym visits or membership sign-ups.
  • Supplementary Gear : Showcase fitness accessories like resistance bands, foam rollers, or heart rate monitors, highlighting their benefits for enhancing workout routines. Ensure staff are well-versed in product knowledge to assist members in making informed purchases.
  • Tailored Membership Packages : Present customized membership upgrades such as VIP access to exclusive gym areas, extended class schedules, or priority booking for sought-after sessions to cater to diverse member preferences.
  • Complementary Add-Ons:  Offer complimentary sessions or trial classes for new equipment, workout programs, or group fitness sessions, encouraging members to explore and possibly opt for extended services.

Online Booking and Sales

  • Online Booking System:  Design an intuitive and user-friendly website or mobile app for seamless membership purchases, class bookings, and payments.
  • Integration of Payment Systems : Incorporate secure payment gateways, allowing for hassle-free transactions and offering various payment options.
  • Membership Customization:  Enable members to personalize their memberships by choosing preferred services, class types, or add-on packages during the online signup process.
  • Automated Notifications:  Implement automated confirmation emails or text messages upon successful bookings, ensuring members receive timely reminders.
  • Virtual Consultations:  Introduce virtual fitness classes or on-demand workout videos accessible through the online platform, catering to members’ preferences for at-home workouts.

Membership and Loyalty Programs 

Encourage repeat business and foster member loyalty:

  • Membership Options:  Provide tiered membership levels with varying services, amenities, and pricing to cater to different member preferences.
  • Loyalty Rewards:  Develop a digital loyalty program where members earn points for each visit, referral, or participation in gym activities, redeemable for discounts on services or merchandise.

Strategy Timeline

Finally, a well-defined timeline sets clear milestones for the gym’s launch, marketing campaigns, membership growth, and expansion goals, ensuring that the business progresses with purpose and direction.

Business Plan Gym Timeline

The Management section focuses on the gym’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the gym towards its financial and operational goals.

For your gym business plan, list the core team members, their specific responsibilities, and how their expertise supports the gym’s mission.

Business Plan Gym Management 1

The Financial Plan section is a comprehensive analysis of the gym’s financial strategy, including projections for revenue, expenses, and profitability. It lays out the gym’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your gym business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. pricing strategies for memberships and services, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Business Plan Gym Financial Plan

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Home > Blog > How to Write a Gym Business Plan (Step-by-Step Guide + Free Template)

How to Write a Gym Business Plan (Step-by-Step Guide + Free Template)

  • Updated on 06/08/2024

Opening a gym can be very lucrative but requires a well-thought-out business plan. We mean a document that will help you understand what steps you need to achieve success at your gym. This article will discuss how we design a plan for a fitness business from the scratch.

We will present some examples and gym business plan templates. They will help you understand what elements should be included in this document. From concept development through market and competition analysis to a financial plan.

This article gives you a solid foundation for writing a business plan. Doesn’t matter if you are creating a new gym or improving an existing one.

Download: Free Gym Business Plan Template

What is a gym business plan?

A gym business plan is a document that describes planned activities, goals, and gym marketing strategies for a new or existing gym. It is an important document for anyone who wants to open or develop their own fitness business.

How to write a gym business plan (Step-by-Step)?

  • Step 1: Gather answers to important questions from the list below before writing your plan.
  • Step 2: Are you opening a gym with an innovative business model? It is better to wait to start writing a business plan immediately to verify whether this model can succeed. 
  • Does the gym have a traditional business model (e.g., hour-scheduled group training sessions) already existing in the market? You can skip this step and create a business plan immediately.
  • Step 3: Create a gym business plan using the ready-made template (pattern) described below.
  • Step 4: Review the business plan regularly, every month in the first months of running the gym, and at least once a year in subsequent years. A business plan is a living document that will help your fitness place grow.

What to remember when creating a gym business plan?

  • Write short and concisely. Be specific.
  • Use numbers for calculations.
  • Assume black scenarios. The blacker you assume, and yet the business has a chance of success, you will manage to beat the market.
  • In the first months of the gym’s operation, work with the business plan daily and update calculations and assumptions.
  • Once the gym is stable and has reached the so-called break-even point, return to the business plan at least once a year.
  • Discuss the business plan with your team. Also, consider sharing some of the profits with your team. In this way, you will build a unique commitment.
  • The business plan is for years. The document should be updated regularly.

Where to start writing a gym business plan? (10+ questions to start with)

Start writing your document by answering a few important questions. The questions help you create a good business plan for opening a gym and, above all, help you design a business that perfectly suits your needs:

  • Why do you want to start this gym?
  • How much would you like to earn per month? 
  • How many clients do you plan to serve per month? 
  • What kind of gym do you want to run? (e.g., group training place, personal training place, specialized gym of one kind of sport or one kind of clientele). Here is a list of types of gyms and other fitness businesses.
  • What kind of service will you offer? (on-site, online, mixed).
  • What area will you operate in?
  • Who will be your client? 
  • How many direct competitors are there where you want to operate?
  • How will your gym stand out?
  • How will you manage your gym? What gym management software do you choose?
  • Who do you need to hire to start a gym? Do you plan a gym staff management software ?
  • What metrics will you keep track of? (e.g. retention rate, customers opinions).
  • What will your gym look like inside?
  • What will the atmosphere of your gym be like?
  • What will your fitness offer look like? 
  • What will your gym pricing strategy be?

Recommendation

Remember that a sample of your fitness classes can attract potential customers. A well-performed meeting will help you sell your idea. The trainer’s performance and place’s image are your #1 sales tools.

What to write a business plan for?

  • A business plan is an action plan. You will stop dreaming and start turning your idea into a real gym business plan.
  • Running a business is working in a company. Creating a plan is working “on the company,” i.e. its design and improvement.
  • A gym business plan will allow you to verify your assumptions. You will observe it in a year, two, or five years. It’s super satisfying to watch how your knowledge grows every year.
  • Writing this document allows you to translate your vision into a specific project and action plan. It also allows you to rethink to what extent your business idea is a recipe for success and what you still need to refine.
  • Creating a business plan for a gym will help you assess the reality of your dream. You’ll check the possibilities of its implementation, as well as check the chances of its success. It’s also important to assess the risk you have to take.
  • A business plan forces you to be specific. If you don’t know the answer to a question in our guide, you may be blind in this area, which is very risky.
  • If you already run a gym and don’t have a plan, fix this mistake. Every gym should have some sort of ideas for the present and future actions.

When is it worth writing a business plan?

In our opinion, it’s always worth it. You plan to open a successful gym, right? Not having the basic elements of your fitness business written down and calculated… dooms you to failure. Remember to verify them regularly too. 

Only a regular analysis of the gym’s results (read more about gym reporting ) and planning the next moves (in the form of a business plan) allows you to have full control over the gym.

Of course, the external motivation is looking for an investor or support (then you are forced to create this document).

Helpful resources when creating a gym business plan

  • How Much Do Gym Owners Make in 2024
  • How Much Does It Cost To Open a Gym in 2024
  • Opening a gym (Step-By-Step Guide)    

Free gym business plan template

A typical gym business plan example includes:

  • Executive summary for a gym
  • Gym description
  • Market analysis

Competition analysis

  • SWOT analysis
  • Investment costs (one-off to start)
  • Operating costs (fixed monthly costs) Financial Projections
  • Profit and Loss Account

Break-even analysis

Sensitivity analysis

  • Gym marketing plan
  • Company description of the vision for further development of the gym

1. Executive Summary

The summary of the gym business plan should include:

  • Mission statement, vision, and values.
  • Description of the gym concept.
  • Why will this idea be a success?
  • How do you want to implement this plan?
  • Profits and return on investment.

The executive summary should be written at the end after you have written your entire gym business plan. The executive summary wraps the business plan up. It provides the reader with the most important information in a very concise form (max. 600 words, i.e., about 1-2 pages). Discuss only the key aspects of your business idea. Use points!

2. Description of the gym

This section aims to show you the details of your gym. It should not lack the following elements:

  • Mission: why do we exist?
  • Vision: what we want to achieve in 1, 2, and 5 years.
  • Business Type: Is your gym a sole proprietorship, partnership, or other business?
  • Gym name (get inspired by this list of gym names ).
  • Gym type: specify the type of gym, e.g., personal training gym, group fitness classes gym, online training studio, wide offer studio, etc.
  • Specific location: write exactly where your new gym is (or could be) and why you chose this place.
  • The style of the place: what will be the colors, atmosphere, decorations, music, etc.
  • Ways to serve the customer: only on-site, only remotely, both ways.
  • Hours of Operation: What hours will the place be open? Why are these?
  • Your offer is surely connected with your experience and skills. But remember to be creative and have 1-3 differentiators from the competition (Unique Selling Points).

3. Market research and competition analysis

You should thoroughly analyze the space to create your premises. Oh, unless you are introducing real innovation to the market – or maybe especially then. What needs to be observed? Analyze the market and competition, focusing on the following:

Market analysis Customers are the key to any gym’s success. Knowing their demographic structure, preferences, and training habits is critical to a business plan.

  • Target market for a gym: Think about who your customers will be. Consider their age, interests, expectations, and how to reach them.
  • Needs in the market: Describe the market’s needs and how your gym will meet them.
  • Target Audience Size: Determine the number of potential customers in the market you intend to target.
  • Market trends: Use credible information to show that people will be interested in your gym idea. Find out current trends and how the gym industry is developing.

Check out other gyms that are or could be your competition.

  • Is there any other gym or fitness center in your area? Make a list of them.
  • Revenue and number of customers they can achieve: Estimate how much such gyms can earn
  • Offer and prices: Analyze what these places offer and what is their gym pricing . Try to calculate their revenue cost (it is how much you need to spend before you start earning).
  • Competitor marketing activities: See what makes them successful and their weaknesses.
  • Competitive advantages: What will be your advantage?

SWOT analysis The abbreviation comes from the words: S for Strengths, W for Weaknesses, O for Opportunities, and T for Threats. Fields S and W are related to the gym’s launch situation. While the O and T fields are related to the success of your project in the future. It is worth conducting such an analysis in the form of a table:

 PositiveNegative
InsideStrengths


Weaknesses


OutsideOpportunities


Threats


4. Investment plan (cost analysis)

In this section, you will present the costs associated with the initial investment and the spending plan for the first year of operation.

List the costs, dividing them into two groups:

  • Investment costs (one-off to start).
  • Operating costs (fixed monthly costs). 

After opening a gym, verify the costs regularly, preferably once a month.

Investment costs include, among others:

  • Rental or purchase of the real estate.
  • Renovation and adaptation of the fitness facilities.
  • Purchase of exercise equipment: mats, kettlebells, dumbbells, other special equipment, like poles for a pole sport studio, etc.
  • Reception Desk.
  • Unified Work Clothes for the staff (if you plan it)
  • Gym POS software.
  • Payment terminals.
  • Computer hardware for the POS system.
  • A website with online booking.

Regarding point 5 and 6, take into account a very important monthly purchase, which will however save your time and money finally. It’s a gym management software. You can compare some of the software providers on the market to meet the best gym management software . Yet, what we recommend is WodGuru . With its reasonable price, many useful features, amazingly helpful support and nice cartoon visual identity.

  • Insurance of the premises and equipment.
  • Organizational and legal costs (e.g., regulations, documentation).
  • Costs related to permits and licenses (e.g. license to conduct exercises according to a patented pattern and name).
  • External training costs.
  • Operating costs.
  • Rental of real estate (if the premises are rented).
  • Electricity.
  • Staff wages: personal trainers, receptionist, outsource trainers etc.
  • Purchase of additional items like finger food and drinks.
  • Equipment maintenance and servicing costs.
  • POS system support.
  • Online booking system.
  • Employee insurance.
  • Online and offline advertising.
  • Printed materials.
  • Running social media.
  • Website positioning (SEO).
  • Taxes and fees.

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How to finance the opening of a gym?

The biggest problem for a novice gym owner is finding financing for the first business. Various options are worth considering.

  • taking out bank loans,
  • receiving subsidies — a business plan will even be necessary to receive them
  • loans from friends or family.

Considering bank loans or a subsidy, you must first think about the black scenario. What will happen if your business fails and you have to return the borrowed money? But also what to do to prevent this from happening? How much does it cost to open a gym and which costs are inevitable? How high the margin you have to impose on the training performance? This is the key to assessing the chance of return on investment in the gym.

5. Financial forecast

The financial forecast consists of 3 elements:

  • Projected profit and Loss Statement: Shows what turnover and profits you will generate. 
  • Break-even analysis: Shows when a gym will become profitable.
  • Sensitivity analysis: Shows what happens to turnover and profit in negative scenarios. E.g., 50% decrease in turnover for three months.

Profit and Loss Account You will need to estimate the value of the sale considering the size of your gym, target market, sales volume, and revenue cost. You will get a profit and loss forecast, comparing this with the costs. The easiest way to prepare a profit and loss account is in the form of a table:

Months of running a businessMonth 1Month 2Month 3e.t.c.
Number of fitness classes per month    
Average class value    
Monthly income (turnover)    
Variable costs per month    
Fixed costs per month    
Profit per month    
Profit margin (in percentages)    

Investors will want to know how much revenue you will need to generate each month to break even after all fixed and operating costs are considered. In the analysis, you should show how you intend to generate the necessary revenue, even in difficult months with lower sales.

It is worth doing it to assess the negative scenarios.

  • The other gyms will be stronger, and you will have to lower price
  • You lose key employees
  • There is a decrease in sales by 10 or 20% compared to what you assume

This will allow us to be prepared better for different financial crises and reduce stress when such a situation arises.

Make a sensitivity analysis in the form of a table









Business is people. Describe what your team will look like, dividing it into two groups:

If you are looking for investors, this area can be critical for them.

Describe the founders:

  • List of founders.
  • Experience.

Which positions are necessary for the daily functioning of the premises? Is it the receptionist, a permanent personal trainer, an outsourcing trainer, social media platforms specialist, etc.? Who will suffice as emergency help?

Think about which people you already know with the necessary competencies. Which ones will you have to look for or train as your employees from the beginning? The cost of necessary training should also be included in the gym business plan.

Describe the team you need to build:

  • List of job titles.
  • Remuneration.
  • Type of contract.

7. Marketing plan

Ideally, your marketing strategy should include the items we listed. Below we describe how to do effective marketing in your branch.

  • Brand building (logo, colors, gym name , gym slogans)
  • Building your own website or app (Here you can check how to create a fitness app )
  • Selling training sessions or booking online from your own website (as the main way of selling online)
  • Launching a loyalty program
  • Will you run social media?
  • Will you be implementing gym SEO (Search Engine Optimization)?
  • Will you add a business listing on Google Maps?
  • Will you run email and SMS campaigns, and if so, how often? How will you build your subscriber base? 
  • Will you be blogging?
  • Will you be running a gym newsletter ?
  • Will you be doing paid Google Ads and Facebook Ads?
  • Will you be offering promotions? If so, what types?

Gym Marketing Tools

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8. Description of the vision for further development of the gym

Determining the direction of development is very important at the beginning of your business. When setting gym goals you want to achieve in a certain time, you should start with the wider ones, reaching those at the everyday level. It is also worth considering how you want to achieve these goals.

During project execution you need to observe and adapt initial goals. It enables effective management and reduces losses in marketing, service, and other areas. Your gym’s written plan should clearly outline the vision and strategies to achieve desired objectives.

Sample gym business plan

We created a sample gym business plan to help you write your plan. Click below to download an example of a business plan for a gym.

Download: Free gym Business Plan Template

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Set up a gym booking software for your website in minutes. Boost revenue while saving time.

Key Takeaways

  • The business plan describes what your gym will look like.
  • A business plan consists of 10 different elements.
  • Create a business plan even if you already run a gym.
  • Do not outsource writing a business plan to external companies. It is better to ask an experienced trainer or an external company as a consultant for your ideas.
  • Go back to the business plan once a month if you are starting and once a year if you have been operating for several years.
  • A business plan is not an artificial document you write once and forget. It is a living document that teaches you how to run a business.

Frequently Asked Questions (FAQ)

How to write small gym business plans.

Regardless of the size of the gym or business, the steps of gym business planning remain the same. Writing this document for a small gym consists of creating:

  • Executive summary, 
  • Gym description, 
  • Market analysis, 
  • Investment plan, 
  • Financial projections, 
  • Team, 
  • Marketing plan,
  • Company development description

Does every gym need a business plan?

In our opinion, yes. If you are serious about putting your place in the whole fitness industry, you must implement a repetitive method of working “on the company”. A BP that is updated regularly every month and year is a way to run a business.

How to open a gym without money?

Opening a gym with no money can be challenging, but it’s not impossible. Here are some ways to open a gym without enough funds:

  • Rethink the concept of your gym.
  • Look for gym investors or alternative funding sources.
  • Start your online business to get first customers.
  • Consider working with other companies.
  • Start a smaller business by offering training sessions on demand and develop your brand.

Discover more ideas on how to open a gym with no money.

How to promote gyms?

Promoting a gym is key to attracting new guests, increasing sales and retaining regular customers. A few steps to help you promote your gym:

  • Create a professional website with a website creator like WodGuru.
  • Take care of social media by posting regularly and encouraging interaction.
  • Add your gym to popular sites.
  • Organize contests and promotions.
  • Collaborate with influencers.
  • Organize events such as health promoting, competitions or concerts.
  • Use paid ads such as Google Ads or Facebook Ads.
  • Collect gym feedback from satisfied customers.

Check these gym promotion ideas for inspiration.

How much profit does the gym make?

A gym’s profit depends on many factors, such as location, offer, prices, service quality, and business size. The average gym profit margin is between 10 and 15% per year, but it can vary significantly depending on the factors mentioned above.

Franchise gym profits on the lower end of 10%, boutique fitness studios averaging 20% to even 40% profit margins, and CrossFit gym profit margins in the 25-30% range.

What makes a gym business plan important?

A gym business plan is crucial for several reasons:

  • It helps clarify the vision and goals of the gym.
  • It provides a roadmap for the business.
  • It includes financial projections, budgeting, and funding strategies for securing investors or loans.
  • It identifies potential risks and challenges, allowing the business to address them proactively.
  • It serves as a reference point for decision-making, helping the management team focus on the business’s objectives.
  • It can be used to communicate the business idea effectively to stakeholders, including investors, partners, and employees.

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  • Why do you want to open a WRTS?
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How Does the WRTS Gym Franchise Business Model Work?

We Rock the Spectrum is the only public, sensory-safe gym that caters to all children ages one year and older. The WRTS business model has been tested in many different communities, with many types of owners, and consistently proves successful. Once you become a WRTS Kid’s Gym franchise owner , you will become a part of the growing We Rock community where you will have full access to administrative resources and proven marketing professionals, as well as a large professional support team. These professionals have extensive experience working with WRTS franchise gyms and will help to ensure your sensory gym is successful. With corporate offices on both coasts, We Rock the Spectrum strives to support its franchise owners with whatever they may need.

Owners of We Rock the Spectrum Franchise are supported not only by their corporate team, but also by the families and members of their community. Owners are able to provide an opportunity to children on the spectrum that otherwise would not exist with their sensory gym. Because of the flexibility allowed with the We Rock the Spectrum Franchise, owners are able to provide their communities with unique classes, Open Play, parties, camps and more. Some owners even offer programs with Occupational Therapists (OT) and/or Applied Behavior Analysis (ABA) Therapists at their gym. With We Rock the Spectrum, we supply the infrastructure for success and leave the creativity and fun to you.

How To Get Started With WRTS

To get started on opening your own We Rock the Spectrum Kid’s Gym, you will first need to sign our NDA (Non-Disclosure Agreement). After which, we will give you a call to discuss your qualifications and give you an overview with our Franchise Developer. If you meet all of our requirements and we think it’s a good fit, we will send you the FDD to review, schedule some follow up calls to discuss, send you an application and run a background check. Then you will have an interview with our CEO and Founder, Dina Kimmel, and lastly we set up validation calls with various owners so you can ask them first-hand what it’s like to open a WRTS gym.

  • Fill out contact form
  • Sign our NDA (Non-Disclosure Agreement)
  • WRTS qualification call & overview with a franchise developer
  • WRTS follow up call to discuss FDD and application
  • Application and background check
  • WRTS call with CEO, Dina Kimmel
  • WRTS validation calls with various owners

Franchisee Requirements

Whether you have a child with special needs, or work with children with special needs, passion for helping children and bettering your community is what we look for in our owners. See our list of what we look for below. Sound familiar? If you think we’re describing you, fill out our contact form, sign our NDA, and we’ll give you a call and let you know more about this incredible franchise that is more about family than business!

  • Experience with special needs children
  • Passion for servicing this community
  • Willingness to learn and collaborate with others
  • Ability to follow WRTS processes and business model
  • Sufficient access capital to own and operate a WRTS business
  • Great attitude

Financial Investment

The investment amount is an estimate based upon the size and location of your gym as well as the regional economics. We have had instances where the amounts can be both higher and lower, but this is a reasonable average to consider in your planning. Our franchise fee is between $50,000 and $60,000 USD depending on the size of your desired location and the total investment amount ranges between $157,000 – $332,000 (including the franchise fee). The fee also includes the 12 pieces of specialized equipment that is in each of our We Rock the Spectrum Kid’s Gyms worldwide.

Commercial Systems

Home systems, our process, the only "trusted professionals" recommended by everyone, as seen on nbc show "george to the rescue".

"Fun Factory made this episode the best of our 12 years, Barr none the absolute best. It is clear to all in this industry that you are who you are by what and how you do it, we call you the untouchables." - Andrew Scerbo Executive Producer NBCUniversal / LXTV

Developments You Can See

Fun Factory Sensory Gym is the inventor of the custom designed indoor sensory gym. Our sensory gyms are designed to accomodate the needs of children, parents, and healthcare professionals. We are the only company in the world insured and bonded to our sensory gym installations.

IN-HOME SYSTEMS

Commercial systems, what our clients are saying, leaps and bounds physical therapy.

After five years in practice, I decided that I needed to upgrade the look of my office to allow for optimal patient care. Upon researching some possibilities, I came across the Fun Factory Sensory Gym. I immediately called the company to purchase my own gym unit. We scheduled an install date and in three short days, my gym and my vision were complete. My patients and their parents walk in and are amazed at the beautiful and fun set up. I truly feel that my patients are getting the most effective and efficient care because I have the best equipment to address their individual needs. With the Fun Factory Gym equipment, I am able to help these children improve by Leaps and Bounds!

Jill Kissel

Clinic owner, the kaufman children’s center.

The Kaufman Children’s Center was proud to announce an exciting upgrade made here at the KCC. Over a long weekend in late January 2013, we completed a huge remodel to our sensory gym.

 The Kaufman Children's Center

Our Fun Factory Sensory Gym has been life changing for our family! The entire experience of having the FFSG team in our home was so enjoyable. The crew’s heart and soul is behind the work they’re doing. From the first phone call, FFSG was committed to helping our family and our 3 small children with their various special needs. We have already experienced the calming effects of the net swing and the multiple ways the entire gym provides sensory input and regulation for our intense sensory seekers. What a great tool for our family and more than worth the investment!

Heather Helms

We are so appreciative to the staff at Fun Factory. The guys that installed our gym were absolutely exceptional. Not only did they do an amazing custom job that fit perfectly in our home but their warmth, sensitivity and attention they gave to our children who were watching made my kids feel like they were a part of the process. We thank you from the bottom of our hearts!

These pictures bring such a smile to my face. This sweet girl is laughing and playing, but there was a lot of work that went into her ability to swing on those monkey bars and climb the wall. We installed this home sensory gym as a surprise for the girls for Christmas, but mostly to give Zia the resources she needs at home to get out her energy and build her strength. She's one resilient and tenacious cookie, and she repeatedly rises to the occasion when presented with a challenge. I learn from her every day, and I've especially learned to never underestimate what you can accomplish when you believe in yourself, work hard and don't give up.

Whatever it is that you think you can't do, you can. Channel your inner Zia and crush it.

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Our services.

Our large open play/multi-functional facilities are designed from the center out. This allows us to capture the center of the room and design out to all four corners making the entire rooms flow and functionality useful to everyone using it. Our large sensory gyms are versatile and can accommodate many therapists and children at the same time.

Homes, Basements, Attics, Garages, and bedrooms! We understand that space can be limited, that’s why our designers take into consideration every square inch of space in your home. Our in-home systems are designed to provide your family with plenty of floor space not only to play but to also move about with ease when the system isn’t being used.

FUN FACTORY SENSORY GYM, LLC is the leading manufacturer of custom sensory gyms and equipment. Our dynamic and experienced team of professionals design, develop and install our products throughout North America.

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Manufacture

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Working Hours

Mon-Fri -8 am to 8 pm EST

Sales & Customer service address: 991 US Highway 22, Suite 200, Bridgewater, NJ

Manufacturing & Warehouse: 108 Park St, Bear Creek WI 54922

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Parent Recommended, Therapist Approved

CUSTOM DESIGNED SENSORY GYMS

We offer a complete range of sensory gym solutions. We're the most trusted designer and installer of custom sensory gyms in North America.

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Delivered And Installed

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Hand Crafted In The USA

Designed By Experts

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State-Of-The-Art Sensory Gyms For All Spaces

The only therapist recommended sensory gym designer and installer in North America.

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Residential

Our custom designed sensory gyms give pediatric therapists unlimited treatment options and clinic owners the upper hand on competitors!

Schools &Clinics

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All of the benefits of an outdoor playground, in the comfort of your home. Accessible 365 days a year for complete sensory development!

Together. We Can.

Our most popular services.

Fully licensed, bonded, and insured. Because nothing says we care about you more than making sure you're covered!

Residential Sensory Gym Design

Our in-home sensory gym systems are accessible to your child 24/7 365 days a year. Experience the Spectrum Sensory Gym difference that parents are raving about! 

Pediatric Clinic Sensory Gym Design

With a custom-designed therapeutic sensory gym, clinic owners and therapists can now provide unrivaled pediatric therapy services for their patients.

University/Elementary School Sensory Gym Design

Special education departments across the United States are advocating for the addition of sensory gyms in elementary schools. Our sensory gyms help children regulate their emotions throughout the school day. Because our sensory gyms have seclusion areas, they're also a great fit for any special education classroom. 

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Sensory Gym Services

Serving Clients in the United States

Our Areas of Expertise

Where We Can Help

Are you struggling to attract new clients? Do your therapists have all the tools they need to effectively transition children to their next developmental milestone?

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What Makes Us Different?

Our custom therapeutic sensory gyms are the culmination of decades of input from industry leading healthcare professionals and parents. 

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Affordable & Transparent Pricing

Everything you need. Nothing you don't. Therapy equipment is expensive. Much of it tends to sit in storage closets for years on end. Each piece of our equipment serves a purpose. That purpose is to provide therapists with the necessary tools in order to transition children to their next development milestone.

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Qualified & Cleared Sensory Gym Specialists

Our carpenters go through rigorous training in order to receive special certifications in sensory gym installation.

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Experience Matters

Spectrum Sensory Gyms has been designing sensory gyms for over 20 years. This experience is the reason we're the most trusted sensory gym design and installation company in the country. 

Designer Working from Home

Expert Design Consultants

Our design consultants have years of experience in engineering and carpentry. Each sensory gym is unique to the space it will be occupying. Our expert design consultants take into account all factors when designing your sensory gym.

WHAT PEOPLE SAY

Mya solana daycare owner- mya's daycare.

When I first started my daycare I was running on financial fumes. Spectrum Sensory Gyms designed my daycare a clinic that truly did fit my space and budget. Extremely thankful for their entire team! 

Amy Stilen Parent

Both of my children are high functioning. I needed something in my home that would address my children's energy needs. I found Spectrum Sensory Gyms and never looked back. 

Ashton Johnson Founder- United Therapy Works

My experience with Spectrum Sensory Gyms can be summed in one word, professional. From the initial consultation to the design consultants. The process of getting my own sensory gym for United Therapy Works was truly Seamless.

  • Sample Business Plans
  • Beauty Salon & Fitness

Gym Business Plan

Executive summary image

Is exercise or fitness your passion? Or do you have a good understanding of gym equipment and workout routines?

If yes, you might have considered having your own gym at some point. After all, who doesn’t want to turn their passion into a profession?

And guess what! Just like you wouldn’t hit the gym without a workout plan, starting your own gym demands a comprehensive gym business plan!

If you’re seeking investors to kickstart a new fitness center or aiming to expand an existing gym business, a modern business plan is an essential tool.

A well-written gym business plan will help you pay attention to every detail, and support your entrepreneurial journey to make the best strategies for a profitable business.

But before diving right into the detailed gym business plan; let’s check out some interesting facts about the fitness industry.

Fitness Industry Outlook

  • The growing enthusiasm for fitness and the desire for a healthy lifestyle has led to the demand for gyms. As of now, 39% of Americans have gym memberships.
  • The fitness industry has been booming in recent years, and it is expected to have 230 million members by 2030 .
  • The Health and fitness market revenue is estimated to grow at a rate of 11.52% annually, reaching a market volume of US$2.32 billion by 2027.
  • The fitness industry is expected to increase its revenue by 172% from 2021 to 2028 – reaching $435 billion.
  • From 2011 to 2019, the revenue for gyms and health centers in the United States consistently increased each year.
  • Recently, the United States led the world in gym industry revenue and is expected to add 15.6 million more members by 2030.

Now that you know the fitness industry outlook, it’s time to explore all the key components you will need to include in your professional gym business plan outline:

Key Components of a Gym Business Plan (w/ Examples)

  • Executive Summary
  • Company Overview
  • Industry and Customer Analysis
  • Competitor Analysis
  • Service Offerings
  • Marketing Strategy
  • Management Team
  • Operations Plan
  • Financial Plan

1. Executive Summary

The executive summary is the first and foremost section of the business plan. Generally, it is a quick overview of your entire gym business plan.

It should be clear, concise, and engaging as it will create your first impression and draw readers to delve further into your plan.

You can start this section with a brief introduction to your gym business and discuss the following key elements:

  • Market Opportunity
  • Vision & mission statement
  • Target market
  • Your products and services
  • Marketing strategy
  • Management team
  • Financial Outlook

After that, end your summary with a clear call to action to invite potential investors or readers to the next meeting.

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2. Company Overview

The company overview section provides a more detailed description of your gym business.

It includes the legal structure, location, ownership, critical success factors, business history, and everything about your business.

First, provide the basic details of your gym including what is the name and what type of gym you are operating.

Mention the names of your gym owners/partners along with the qualifications. You can also include the business history(if any) and milestones you have achieved.

After that, describe your business goals to convey a high level of aspirations and vision that you want to achieve. Here is an example, describing the business goals and objectives:

Setting future business goals for a gym is a crucial step in outlining a clear path to achieve success and growth. The Stayfit Company’s goals and objectives include;

  • Increase the client base by 100 customers within the first year of operation.
  • Relocating to a large and more appropriate location facility by the first year of operation.
  • Expand service offerings to provide a comprehensive fitness experience.
  • Establish partnerships and increase brand visibility to become a recognized fitness brand in the community.
  • Increase total memberships to 500 within 5 years.

Remember, this section gives an in-depth understanding of your business and business owners. So, make it clear and intriguing.

3. Industry and Customer Analysis

In the industry and customer analysis section of your gym business plan, it’s necessary to offer a comprehensive overview of the fitness industry and target market.

This section gives you a deep understanding of your industry and target customer attributes which will help you in business planning.

Here are some questions that will help you in the analysis:

  • What is the current market size of the fitness industry in terms of revenue?
  • What are the current trends in the gym business?
  • Who are the target audience, and which customer segment do you wish to serve?
  • What is the growth forecast for the gym business?

For example, look at this market segment and target market of the gym business with the help of Upmetrics:

market segment and target market of the gym business

As a gym owner, you can target the following customer profiles:

  • Blue-collar employees (factories, warehouses, service industry)
  • White-collar individuals(corporate or government employees)
  • High school & college students
  • Military members and their families
  • Athletes who often train for fitness competitions

In short, a thorough industry analysis will educate you about the local market and help you prepare marketing strategies according to the market trends.

4. Competitor Analysis

This competitor analysis will help you understand the top competitors and identify the strong points of their service offerings.

As a gym business, you should make a list of the number of gyms or other fitness businesses operating in your locality, their size, and their customer base. Try to specify who are your direct and indirect competitors.

  • Direct competitors can be other local gyms
  • Indirect competitors can be another type of gym or fitness center, or health club in your area.

Now, let’s focus on your direct competitors and provide an overview of each competitor, including their size and where they’re based. Evaluate their strengths and weaknesses including their service offerings and pricing structures.

Refer below example; showing competitor analysis description:

gym business competitor analysis description

A better way to conduct this analysis is by noticing things from a customer’s perspective. You might even ask your competitors’ clients what they like or dislike about them to get valuable insights.

This way you can understand what makes your competitors successful and what gaps you can fill. Also, consider the unique selling proposition of your gym business.

Specify your tactics to stay ahead in the competitive landscape and make all the difference in the local gym market.

5. Service Offerings

Next, specify the scope of your service offerings and elucidate how they meet the diverse needs of your clientele.

This section must be informative, precise, and client-focused, as it is a detailed breakdown of what your fitness business offers your customers.

You can include a comprehensive suite of services encompassing types of membership options, available exercise equipment, personal training sessions, group fitness classes, or nutritional counseling.

Here, you can take a reference from the below example written using Upmetrics AI Assistant :

Also, detail any membership fees or pricing plans in this section to add or revise services. Mention if your gym provides any additional services, like physical therapy, massage therapy, recovery modalities, etc.

6. Marketing Strategy

Writing the sales and marketing plan section means jotting down all the customer acquisition strategies and the tactics for how to retain them.

You can consider the following marketing approaches to gaining and keeping customers for your new gym business:

Unique Selling Proposition

Define your gym’s USPs depending on the market you serve, the gym equipment you use, and the unique services you provide. Highlight certified gym trainers, specialty programs, and regular community events.

 gym's USPs

Social media marketing

Use social media platforms to attract more users. Create engaging content and entice your audience with inspirational posts and special offers. Connect with your customers digitally as well as in the gym.

Establish a professional website and brand symbol (gym’s logo) to reach a wider audience. Showcase all your service offerings and build trust among potential customers.

Loyalty plans

Consider loyalty plans to retain existing gym members and encourage long-term commitment. Create membership tiers or referral programs to offer discounts or additional benefits.

Collaborations

Partner with local businesses (health food stores, fitness centers, or clothing brands), and fitness influencers to cross-promote services or offer collaborative discounts. That can expand your gym’s reach and draw a broader audience.

Offline advertising

Traditional offline marketing can still be effective in engaging with your local community. Clearly state your advertising strategies, including open bulletin boards, print marketing, flier distributions, or community events. For instance,

Consider following offline advertising strategies to reach specific demographics:

  • Local Print Media: Advertise in local newspapers, magazines, or community newsletters to target residents in your area.
  • Flier Distribution: Distribute flyers or brochures in strategic locations such as community centers, local cafes, or residential areas to raise awareness about your gym.
  • Community Events: Sponsor or participate in community events, fairs, or health expos. This not only promotes your gym but also allows for direct interaction with potential members.

Pricing strategy

Try to develop detailed strategies, like offering special introductory discounts, free trials, seasonal promotions, or membership packages with additional services to attract and retain members.

7. Management Team

A strong management team is essential to showcase your gym’s ability to thrive in the industry. This management team section emphasizes the key members who can help grow your fitness business.

You can highlight your key managers, fitness experts, personal trainers, or nutritionists. Also, explain each member’s expertise and roles.

Also, discuss the compensation plan in this section, along with their salaries, incentives, and other benefits. For instance,

compensation plan of gym business

8. Operations Plan

This operations plan is like a map that shows how you will make your business work.

It provides detailed insights into the day-to-day operations of your gym and highlights key areas such as staffing and operational processes.

Consider adding below essential components to your operational plan:

Try to mention the number of trainers, support staff, and therapists needed. Briefly outline the duties they will perform and detail their qualifications & training required.

Operational Process

Summarize the processes and techniques you will use to run your gym. Your operational process section may include hosting fitness classes, assigning trainers, scheduling the group HIIT classes, billing, training staff, etc.

Equipment & Machinery

You can include the list of gym equipment and machinery required for the gym, such as strength training equipment, pull-up bars, cardio equipment, free weights/dumbbells, and aerobic equipment.

Refer to the below example written using our AI assistant:

9. Financial Plan

Presently, you are in the business planning phase, but devoting some time to putting together the most realistic financial projections is also crucial when you start seeking funding from investors.

It is a detailed blueprint of all the cash flow and revenue streams, initial startup costs for setting up your gym and equipment, profit margins, and operational costs.

So, mention all the below elements in your gym business plan outline:

  • Profit and loss statement
  • Cash flow statement
  • Balance sheet
  • Break-even analysis
  • Business ratios
  • Exit strategy

This financial forecast has a substantial value in terms of whether you secure funding or not. And evaluate the funding resources, including bank loans, SBA-guaranteed loans, crowdfunding, or personal savings.

Here’s an example of a projected P&L statement for a gym financial plan with the help of Upmetrics:

projected profit and losss statement for a gym business plan

Download Free Gym Business Plan PDF

Need help writing your gym business plan from scratch? Well, here you go; download our free gym business plan pdf now and start writing.

This modern, user-friendly business plan template is specifically designed for your gym business.

With a step-by-step guide and example, it helps you write a solid gym business plan without missing any crucial steps.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

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Start Drafting Your Plan with Upmetrics

With Upmetrics, you will get easy-to-follow steps, 400+ sample business plans, and AI support to streamline your business planning approach.

Our financial forecasting tool will help you develop accurate financial forecasts for 3 or more years if you’re not great with financial formulas.

Whether you’re venturing into a new business or aiming for expansion, Upmetrics provides valuable resources and insights to build successful and professional business plans that perfectly align with your objectives.

So, don’t wait; start planning now !

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Frequently asked questions, where can i find examples of successful gym business plans.

There are various online platforms where you can find sample business plan templates. Consider reputable sources like Upmetrics , which offers a successful gym business plan template for your specific needs.

What should I include in my gym business plan?

You should include the following key elements in your gym business plan:

  • Executive summary
  • Company overview
  • Industry and market analysis
  • Customer Analysis
  • Competitor analysis
  • Service offerings
  • Marketing Plan
  • Operations plan
  • Financial plan

What are important gym location factors to consider when writing a business plan?

While writing a business plan, consider the following gym location factors:

  • Easy accessibility and high visibility area
  • Assess the availability of sufficient parking space
  • Check and comply with local zoning laws and regulations
  • Analyze the local demographics to align with the target market
  • Evaluate the proximity of competitors

How often should I update my gym business plan?

It is very necessary to regularly update your gym business plan, especially in dynamic industries like gym & fitness. Consider updating it at least once a year or more often if there are significant changes in your business.

What are the common mistakes to avoid in a gym business plan?

Following are some of the most common mistakes you should consider avoiding when writing a gym business plan.

  • Ignoring thorough market research
  • Overestimating financial projections
  • Neglecting competitors analysis
  • Overlooking marketing strategy

About the Author

sensory gym business plan

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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Top 10 Sensory Gym Equipment for Autism and Special Needs

Discover the top 10 sensory gym equipment designed to cater specifically to individuals with autism and special needs. This comprehensive guide explores innovative tools that promote sensory integration, enhance motor skills, and provide a supportive environment. From therapeutic swings and balance beams to tactile stimulation tools, each recommendation is carefully selected to create a sensory-rich space. Equip yourself with the best resources to foster sensory development and support those with unique needs. Elevate the well-being of individuals with autism through the transformative benefits of specialized sensory gym equipment. Unlock a world of possibilities for enhanced sensory experiences.

For some people, a sensory gym is simply a “playroom” for kids. Gyms like these look like they are made more efficient with kid-friendly equipment. But that’s where most people get it wrong.

Special Strong Find a Location Near Me

For children with autism and special needs, a sensory gym is a place to enjoy and play without stress. It’s not only a place to get fit but one of those place where they can explore and make sense of the world around them.

Unlocking the Potential: Sensory Gym Workouts for Autism and Special Needs

Sensory gym workouts have emerged as a powerful tool in enhancing the health and well-being of individuals with autism and special needs. These specialized exercise programs cater to the unique sensory sensitivities and challenges faced by this demographic, offering a range of benefits that extend beyond the physical realm. By incorporating sensory gym workouts into their routines, individuals with autism and special needs can experience improved sensory integration, enhanced motor skills, reduced anxiety, increased self-esteem, and a greater sense of overall well-being. These tailored workouts not only promote physical fitness but also contribute to a holistic approach to health that recognizes and supports the diverse needs of these individuals.

A sensory gym: what is it?

Sensory gyms are like a kid’s paradise and a therapy room rolled into one.

You’ve probably seen a sensory gym with bright walls. Or maybe encountered kid-friendly stations that look more like something you’d see on a playground than an actual gym. But that’s just it.

Sensory gyms are structured environment meant especially for kids with special needs like autism. Sensory gyms are not standalone establishments where you just walk in and enrol your child. You can find sensory gyms in therapy clinics and hospitals. Even schools have started to adopt them, too!

But that’s because sensory gyms are meant to be a fun and safe environment to help nurture a child’s learning and sensory experience with the help of different sensory equipment. Sensory gyms are a good place for kids with autism spectrum disorder and other disabilities that might have caused sensory issues.

Here are some of the medical facilities in the US that make use of sensory gyms to help kids and adults alike with special needs:

  •   The New York Center for Child Development
  •   Permian Basin Rehabilitation Center, Texas
  •   Tiny Tots Therapy, New Jersey
  •   The Valley Hospital in Ridgewood, New Jersey
  •   And many more.

So your next question might be…

How do you start a sensory gym and what do children learn from it?

Most people think that kids with special needs want to keep to themselves. They want to be alone. They don’t like talking – or interacting in any way – with others.

But that’s just not true.

Most of the time, kids with autism and other special needs like to socialize. They just don’t know how.

This is where a sensory gym comes in.

While the idea of socializing with other kids is great, every child with disability has his or her own uniqueness.

As a parent or guardian of someone with special needs, you need to know if your child is ready to explore and process information with others. They could do great with a fitness trainer that specializes in special needs. But the opposite can also hold true if your child is not yet ready to socialize with others. It could also be that they have not gained enough skills and awareness to what’s happening around them.

Don’t worry if you can’t enroll in a sensory gym, though.

If you want to, you can actually make fun sensory play available at the very comfort of your home.

Building a home sensory gym

At this point, your biggest question can only be put down to one word:

Parents usually think that building their own sensory gym at home is expensive. The thought of providing your child with all the necessary sensory gym equipment can already be breaking your wallet just by thinking about it.

But the actual cost depends on your budget and your preference.

If you don’t have a place yet, then you might need to renovate a room to accommodate all the sensory gym equipment that you’d need along the way. The type of equipment for your home sensory gym would also matter.

Sensory gym equipment can be broken down into many categories depending on the kind of stimulation that your child needs.

Most of the time, sensory gym equipment not only caters to the five regular senses but also the development of the sixth and seventh senses which is the vestibular and proprioception (read: prō′prē-ō-sĕp′shən ) senses.

What’s the difference of the sixth and seventh senses from the other five senses?

Compared to the five senses, the vestibular sense refers to the body’s sense of movement and balance. This sixth sense helps us stay upright when we stand, walk or sit.

Special Strong Gym Franchise Learn More

On the other hand, the proprioception sense or seventh sense involves awareness to the body’s position. It also involves the force needed to respond to a certain stimuli accompanied with the proper bodily action like when you need to pull in a tug of war.

Do you really need to build a sensory gym at home?

That depends.

Children with autism and special needs struggle with sensory input.

Too much information can overwhelm them.

Or they might not respond to sensory information – at all.

Some children with special needs take time to respond to a stimulus. Others become frustrated when introduced to new things which are not part of their usual routine.

The good news is there are several indicators that would tell you if a sensory gym would be beneficial for your child.

You know you need a sensory gym if your child:

  •   loves running around
  •   jumps constantly
  •   climbs every peak at your house
  •   does headache-inspiring spins around
  •   crash into walls like it’s nothing
  •   hates new experiences
  •   cannot stand touching
  •   becomes agitated when sounds get too loud
  •   shies away from different textures
  •   hates clothes that are too tight or likes clothes that are loose
  •   unengaged most of the time
  •   unable to respond to normal stimulation
  •   lacks muscle control as is the case of children with cerebral palsy
  •   hates simple tasks like tying his or her shoe or buttoning clothes

If you tick one or more of these boxes, then yes. You definitely need a sensory gym.

If your child doesn’t suffer any of these things, still a sensory gym would be helpful in fine-tuning their sensory, motor and social skills.

Should you enroll your child in a sensory gym?

The answer is yes!

Sensory gyms help your child improve awareness and balance. It will also develop their coordination and fine motor skills and enjoy the process in a fun and non-threatening way.

But just in case your kid is not yet ready to engage in a sensory gym outside, you can make one inside the very comfort of your home.

You only need three things:

  •                     Space
  •                     Sensory gym equipment
  •                     Enough budget

You may have the space down pat and you might want to consider the money, but you probably have no idea about the gym equipment.

Don’t worry. The next part of this blog post will help you with that.

Top 10 Sensory Gym Equipment for Children with Autism and Special Needs

1. sensory swings.

A chair swing is one of the best equipment for your home sensory gym since it provides stimulation for both the vestibular and proprioceptive senses. Since kids with autism and disabilities have different needs, investing in a sensory chair swing would be a good start to cater to whatever your child might need.

Sensory swings are also very versatile. You can choose a typical chair swing or go for a more tactile approach by choosing sensory swings that are hammock- or cocoon-like. If you think your child is adventurous, you can also pick spinning swings with smooth rotations and a big round platform to help your kids feel safe and secure as they go about their sensory activities.

For strength building, core strength and balance, a trapeze swing or a rope style swing would be good choices.

Sensory swings are also very easy to install. All you need is enough space to set up a tripod stand or in some cases, get handy with a drill to set up the swing more securely in your ceiling.

2. Steppers or balance beams

Another simple yet effective gym equipment to encourage sensory play are steppers or balance beams. Sensory gym equipment like this helps develop a child’s lower body strength and improves their visual and tactile sensory skills.

Steppers placed above the ground can also help kids with autism and disabilities to develop balance and coordination. Balance beams or balance steppers may be more challenging, but they help develop your child’s confidence faster. 

You can also encourage and expand your child’s imagination by letting them play pretend that they are crossing the River Nile with its ferocious crocodiles or make it to the other end before the hot lava consumes every step. You can also have them pretend that they’re doing an obstacle course or design a game where they will only step on color specific beams or steppers until they get to the end.

To make this sensory play more fun, you can vary the sizes of the steps or beams with small, medium and large sizes.

Almost every kid – disability or not – likes crawling through tunnels. The challenge of going into a confined space and moving out of it gives children a certain thrill that is vital in sensory play. Having this kind of equipment adds fun to a sensory gym and has several benefits to offer kids with autism and special needs.

Tunnels help children develop their core strength as they crawl through and their gross motor skills by improving their bilateral coordination. It also helps a child with disabilities overcome their fear of narrow spaces which in turn could lead to fostering more confidence for them. 

More than that, tunnels are fun sensory gym equipment since you can be imaginative. You can play pretend and transform a simple tunnel into a cave or motivate your child to crawl through it by putting snacks or toys as a reward as they crawl. 

Aside from that, colorful tunnels are visually appealing which is ideal for children who need visual stimulation. 

4. Scooter boards

Another sensory gym equipment that you can use as a therapy tool for kids with special needs like autism or cerebral palsy are scooter boards.

Scooter boards are usually made of plastic and look like a square skateboard with its wheels that turn 360 degrees in all directions. Some scooter boards come with a cushion on top for more comfort or handles for safety purposes.

As an equipment for a home sensory gym, scooter boards are versatile. They provide vestibular and proprioceptive inputs which are ideal for kids who need plenty or shy away from sensory stimulation.

That is, the scooter board is the perfect choice for kids who find it difficult to try a swing or climb any other equipment in a sensory gym, however fun it might look. A scooter board is gentler when it comes to providing movement so it’s a good tool to give kids with autism or any other disability the sensory input they’re craving for. You can also use scooter boards to integrate higher level sensory skills to help them focus, listen and learn. 

5. Pogo Sticks or Jumpers

A pogo jumper is another fun yet simple sensory gym equipment for kids with autism. As a sensory equipment, pogo jumpers not only improve balance and coordination but also your child’s grip and stamina. The experience is like bouncing on a trampoline but with the added thrill of having handles to control their movements as they go from one place to another.

ADHD specialist Eugene Arnold of Ohio State University noted in an essay that the vestibular system is vital in the development of cognitive and behavioral stability. In fact, whether they have a disability or not, children gravitate toward balancing games such as tumbling, skateboards, swings, and, yes, pogo sticks because it stimulates their vestibular system.

In short, kids learn better when they make use of their vestibular senses. Hence, kids with autism and children with disabilities will greatly benefit from having a pogo stick as a sensory gym equipment to build not only their physical but also their cognitive skills.

It’s also worth noting that pogo sticks or jumpers are a great stress reliever for kids with autism.

6. Climbing equipment

Climbing is a good stimulation for children with autism and other disabilities because it has several benefits to offer.

One, climbing increases muscle strength and tones muscles. Two, it improves gross and fine motor skills. Three, it develops a child’s hand and eye coordination. And lastly, it can be visually stimulating for kids as they scout for the right place to keep their hands and feet as they climb.

Climbing equipment like a rope ladder or a climbing wall would be a good addition to a sensory gym as a fun equipment.

The level of difficulty would depend, though. Some type of rope ladders are more difficult to climb while others are very easy for your kid to overcome. If you’re planning to set up a fun sensory gym at home, you must gauge your child’s ability to handle climbers. There are many types of rope ladder available that you can purchase online. Or if you think that your child will enjoy a more stable climber, wall climbers would be a good choice to consider.

7. Trampolines

Kids with autism and children with special needs can greatly benefit from playing trampolines.

If there’s only one piece of sensory gym equipment that you can have for your home, it should be the trampoline.

Kids love to jump up and down and your bed could be witness to that. A trampoline on the other hand releases endorphins which are known to be the “happy” hormones and thereby relieves stress among children with special needs.

According to the American Physical Therapy Association, kids with autism have more difficulty in developing their sensory skills hence the need for therapy. Fortunately, rebound therapy which is also known as trampoline use has been proven to improve balance and coordination, posture and even head control among children with disability. It also satisfies three sensory issues among kids with autism and other disabilities: vestibular, proprioception and visual sensory. Moreover, using a trampoline is by far one of the safest – if not the safest – sensory equipment that you can use whether in the gym or at home.

If that’s not enough, a trampoline provides your child with aerobic activity that is autism-friendly. It’s also the equipment of choice to help them work off those extra energy in a fun, safe and non-threatening way. 

Slides may look like too simple as a sensory gym equipment. But when it comes to children with special needs, sliding helps improve one’s vestibular sense by improving balance and coordination.

Since sliding integrates the body’s multiple senses, it provides stimulation to fill a child’s sensory needs, especially those with autism and other disabilities.

Brightly colored slides help in visual stimulation. The act of sliding down from the top helps build balance and coordination which enhances the vestibular system. Sliding also develops the body’s awareness which is essential in developing the proprioceptive system.

9. Monkey bars

As a sensory gym equipment, monkey bars help develop a child’s fine and gross motor skills. Experts on child development highlight the importance of fine motor skills which plays a vital role in brain and muscle development.  It also allows hand-eye coordination that is helpful in visual and tactile stimulation.

Kids with autism can greatly benefit with using monkey bars as a sensory gym equipment. Not only does it improve hand strength. Monkey bars also help correct posture by helping the body align properly as the kids dangle from each bar.

Monkey bars also stimulate the vestibular and proprioception systems as kids become more aware of their movements as they glide and swing from one bar to the next.

10. Crash pads

As a sensory gym equipment, it’d look like crash pads doesn’t do much. But since kids – even with autism or any other disabilities – like to crash land on anything they deem fit, having crash pads around the sensory gym makes the crashing spree much safer for them.

But contrary to popular belief, a crash pad is a good sensory equipment since it helps calm your child. It also develops their focus and attention which are very helpful in establishing their learning processes.

You can also incorporate the use of the crash pad with other sensory gym equipment like the slides, climbing equipment or even under the monkey bars.

Some kids, especially those with autism and other sensory processing disorders, enjoy hiding under the crash pad. Bearing the weight of the crash pad gives them a sense of security and protection which in turn helps them release tension and stress from frustration or anxiety. 

Got no idea about sensory workouts? We got you covered here .

A few more equipment additions to sensory gyms

Here are a few additions to make your sensory gym a dream room for children with autism and special needs:

  •   Light filters
  •   Exercise balls
  •   Colored puzzle mats
  •   Music equipment that kids can play with

Remember, sensory gym equipment for kids with autism and other disabilities doesn’t have to be expensive. But you need to know the kind of stimulation that your child needs the most and provide it using the proper equipment. 

Want to make a difference?

You can do so by owning a Special Strong gym franchise and provide expert fitness training to people with special needs like autism.

Don’t worry, you don’t have to break the bank to grow with us. We are a low cost franchise with competitive earnings in the fitness industry. All because you don’t have to have a brick and mortar gym like most gym franchises do.

We also have a blueprint for success – a trusted and tested business model to set you up into the future. With the addition of our expert support team, weekly coaching and online trainings, we can make a difference in so many more lives. 

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What is a Sensory Gym? Benefits?

Most of us think of the gym as a place to improve our physical fitness and health by running on treadmills and lifting weights. But the moment you walk into a sensory gym, you know that it’s no run-of-the-mill fitness center.

The first things you’ll notice are the bright colors splashed across the walls. Next, your eyes will move to all the different kid-friendly stations. From the covered swings to the ball pits to the climbing walls, it’s a child’s paradise!

But, in fact, a sensory gym is a structured environment that helps children with special needs develop their sensory, communication and motor skills. These gyms also improve self-esteem and social skills. Although all children can use and enjoy sensory gyms , hospitals and therapy centers use them most often. Our therapists help guide children through activities involving swings, trampolines, therapy balls, brightly colored pillows, ball pits, tunnels, climbing walls, and many more tools to help your child become more confident with sudden changes in their environment.  Gyms also give children with autism access to the tools they need for sensory regulation in a non-threatening environment. Gyms foster independence, reduce meltdowns, and limit social stress by making kids feel calmer and more focused. In addition to providing health and fitness benefits, sensory gyms also increase a child’s social skills and self-esteem

Sensory Gyms Enhance Other Therapies

While sensory gyms certainly provide the health and fitness benefits of regular indoor playgrounds, their benefits extend much further.  Most children with special needs require other services such as occupational or speech therapy. Sensory gyms will not replace other types of treatment your child is receiving, but they will help to amplify its effects. Sensory gyms have been proven to help with fine motor skills, body awareness, increased social skills as well as improve muscle strength, coordination, and balance. A recent study demonstrates that gyms help children exercise independence, communicate better, and strengthen their self-care habits and attention spans.  Most of our therapies involve the use of the sensory gym at one point or another.  They are even used as a "reinforcement" (reward) during the therapy session.

Did you know that a lot of our suspension equipment is imported from the USA and meets international safety standards?

Although already common in the USA, most therapy centers in Metro Manila have limited space and thus, are limited to what equipment they can put.   

Could your child benefit from a sensory gym?

Sensory gyms are fun for all kids, but they’re especially valuable for children with special needs because they provide a wonderful opportunity for them to learn to process information in a fun, non-threatening way. Not only will these gyms help improve balance and body awareness, but they’ll also improve fine motor skills, coordination, cause-and-effect reasoning and cognitive-behavioral social skills in a safe environment.

What makes OUR gym special?

• 51 sqm dedicated sensory gym space •

• USA suspension equipment and hooks • 

• 8x16 ft corner climbing wall for corner traversing •

• Therapy approved wooden pickler triangle systems •

• A dark with calm-light sensory calming room •

• Plus most other equipment common in other centers •

However, sensory gyms are especially useful because they integrate a child’s sensory input, which is something children with special needs struggle with. They’re either over-sensitive (i.e., they become overwhelmed with too much information) or under-sensitive (i.e., sensory information isn’t properly registered). In stark contrast to a traditional learning environment, sensory gyms are fun, stress-free areas where children with special needs can process sensory information and break the classroom frustration learning cycle.

Here are four indicators that your child may benefit from a sensory gym.

1. Your child craves sensory input

If your child enjoys spinning, crashing into walls, or constantly running, climbing and jumping on couches, a symptom of hyposensitivity, a sensory gym could be beneficial to help your child process and develop his sensory skills.

2. Your child hates sensory input

If your child shies away from different textures, sounds and experiences or can’t stand to be touched, a symptom of hypersensitivity, he could use a sensory gym to learn to manage sensory information.

3. Your child is lethargic

If your child is lethargic, unengaged and seems unable to absorb normal stimulation, he could benefit from a sensory gym by practicing responding to sensory information.

4. Your child needs motivation to keep moving lots of different muscles

Maybe your child lacks complete muscle control, as children with cerebral palsy do. A sensory gym will give him a safe, friendly environment that encourages him to move all of his muscles.

5. Even if your child does not have special needs

Even if your child does not have special needs, sensory gyms are beneficial for fine-tuning physical, motor, social and sensory skills.  

If your child does have a sensory disorder, a sensory gym acts as a form of physical therapy that will help alleviate the symptoms of his disorder. If you find that your child has difficulty processing information, introduce your child to a sensory gym and observe how he reacts.

The more sensory integration skills a child can master, the easier it will be for him to learn new information and grow.

Sourced and Adapted from :  www.waynerock.org

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Russian Company OOO "URAL-TRAK"

Brief profile.

liquidated Commercial

TIN 7743676930
Region, city Krasnoyarsk Krai, Krasnoiarsk
Company Age (at the time of liquidation) (For comparison, the average for liquidated firms in the industry is 6 years)
Core Activity Activities of agents in the wholesale trade of office equipment and computer equipment
Scale of Operation
Founders (91%; 10 thousand RUB) (9%; 1 thousand RUB)
Manager (liquidator)

Facts to Consider

Liquidation of a legal entity.

Complete Profile

  • 1. General Information
  • 2. Registration in the Russian Federation
  • 3. Company's Activities
  • 4. Legal Address
  • 5. Owners, Founders of the Entity
  • 6. OOO "URAL-TRAK" CEO
  • 7. Entities Founded by Company
  • 8. Company Finance
  • 9. Timeline of key events
  • 10. Latest Changes in the Unified State Register of Legal Entities (USRLE)

General Information

Full name of the organization: OBSHCHESTVO S OGRANICHENNOI OTVETSTVENNOSTIU "URAL-TRAK"

TIN: 7743676930 (region of TIN receipt – Moscow)

KPP: 246501001

PSRN: 1087746163229

Location: 660133, Krasnoyarsk Krai, Krasnoiarsk, pr-kt Metallurgov, 53, kv.152

Line of business: Activities of agents in the wholesale trade of office equipment and computer equipment (OKVED-1 code 51.14.1)

Organization status: Commercial, liquidation of a legal entity

Form of incorporation: Limited liability companies (code 12300 according to OKOPF)

Registration in the Russian Federation

The organization OBSHCHESTVO S OGRANICHENNOI OTVETSTVENNOSTIU "URAL-TRAK" was registered in the Unified State Register of Legal Entities 16 years ago 4 February 2008.

The average age of liquidated legal entities for the type of activity 46.14.1 "Activities of agents in the wholesale trade of computer equipment, telecommunications equipment and other office equipment" is 6 years. This organization existed for a shorter period of time.

The tax authority where the legal entity was registered: Inspektsiia Federalnoi nalogovoi sluzhby po Sovetskomu raionu g. Krasnoiarska (inspection code – 2465).

Registration with the Pension Fund: registration number 034008076635 dated 27 April 2011.

Registration with the Social Insurance Fund: registration number 770103739754011 dated 13 July 2010.

Company's Activities

The main activity of the organization is Activities of agents in the wholesale trade of office equipment and computer equipment (OKVED-1 code 51.14.1). The code is specified in accordance with the version of OKVED OK 029-2001

Additionally, the organization listed the following activities:

51.15.3 Activities of agents in the wholesale trade of electrical goods and household electrical installation products
51.15.4 Activities of agents in the wholesale trade of radio and television equipment, technical media (with and without records)
51.43.1 Wholesale trade of household electrical goods
51.43.2 Wholesale trade of radio and television equipment, technical media (with and without recordings)

Legal Address

OOO "URAL-TRAK" is registered at 660133, Krasnoyarsk Krai, Krasnoiarsk, pr-kt Metallurgov, 53, kv.152. ( show on a map )

There are no other active organizations at the current legal address. However, the following organizations were previously registered here: LIC "OK" (liquidated 08/15/2012), OOO " RESPEKT " (liquidated 03/23/2011), OOO "VEBER" (liquidated 03/06/2012)

Owners, Founders of the Entity

The founders of OOO "URAL-TRAK" are

Founders Share Nominal value from which date
(TIN: 772486554264) 91% 10 thousand RUB 06/21/2009
(TIN: 771708217006) 9% 1 thousand RUB 04/18/2011

OOO "URAL-TRAK" CEO

The head of the organization (a person who has the right to act on behalf of a legal entity without a power of attorney) since 10 May 2011 is liquidator Vodneva Svetlana Valerevna (TIN: 245305889105).

Entities Founded by Company

OOO "URAL-TRAK" is not listed as a founder in any Russian legal entities.

Company Finance

The Authorized capital of OOO "URAL-TRAK" is 11 thousand RUB.

The organization is not subject to special taxation regimes (operates under a common regime).

Timeline of key events

  • Legal address – Krasnoyarsk Krai, Krasnoiarsk, pr-kt Metallurgov, 53, kv.152 .
  • The new founder – Bondar Grigorii Aleksandrovich .

Latest Changes in the Unified State Register of Legal Entities (USRLE)

  • 09/02/2011 . Entering information about accounting with the tax authority.
  • 07/22/2011 . Entering information about registration in the Pension Fund of the Russian Federation.
  • 07/18/2011 . Entering information about the interim liquidation balance sheet.
  • 07/08/2011 . Inclusion in the Unified State Register of Legal Entities of information on the re-issuance of a certificate.
  • 05/10/2011 . Entering information about the liquidation commission (appointment of a liquidator).
  • 05/03/2011 . Entering information about registration in the Pension Fund of the Russian Federation.
  • 04/27/2011 . Entering information about accounting with the tax authority.
  • 04/18/2011 . Entering information about accounting with the tax authority.
  • 01/28/2011 . Change of information about a legal entity contained in the Unified State Register of Legal Entities.
  • 07/21/2010 . Entering information about registration in the FSS RF.

The data presented on this page have been obtained from official sources: the Unified State Register of Legal Entities (USRLE), the State Information Resource for Financial Statements, the website of the Federal Tax Service (FTS), the Ministry of Finance and the Federal State Statistics Service.

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IMAGES

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  2. Sensory Gym

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  3. Sensory Gym Ideas Organized By Each Sense

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  4. Elements of a Sensory Gym

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  5. Gym Business Plan

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    We have had instances where the amounts can be both higher and lower, but this is a reasonable average to consider in your planning. Our franchise fee is between $50,000 and $60,000 USD depending on the size of your desired location and the total investment amount ranges between $157,000 - $332,000 (including the franchise fee).

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    The Top 13 Items to Include in an Active Sensory Room. Trampoline: A trampoline provides a fun place for jumping. A single person option saves space for other activities in the room. Spin Disc: Your child can sit, kneel, or lie on this disc and whirl around. Spin in circles for vestibular input and then easily store when not in use.

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    1.1 Objectives. The objectives for Play Time for Kids are: To create a service-based company which exceeds customers' expectations. To increase the number of customers by at least 20% per year through superior customer service and word-of mouth referrals. Have a clientele return rate of 90% by end of first year.

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    Here are four indicators that your child may benefit from a sensory gym. 1. Your child craves sensory input. If your child enjoys spinning, crashing into walls, or constantly running, climbing and jumping on couches, a symptom of hyposensitivity, a sensory gym could be beneficial to help your child process and develop his sensory skills. 2 ...

  21. Business Plan Template for Fitness Business Owners

    A business plan is a crucial starting point for any business and your fitness business is no exception. You'll want to know what your studio or gym's strengths and weaknesses are and have a path planned for growth. For many just getting started on their journey as an entrepreneur, it can be hard to know what you should include in such a ...

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    Full name of the organization: OBSHCHESTVO S OGRANICHENNOI OTVETSTVENNOSTIU "URAL-TRAK" TIN: 7743676930 (region of TIN receipt - Moscow) KPP: 246501001 PSRN: 1087746163229 Location: 660133, Krasnoyarsk Krai, Krasnoiarsk, pr-kt Metallurgov, 53, kv.152 Line of business: Activity of agents in wholesale trade of office equipment and computer equipment (OKVED code 51.14.1)