Have you ever tried to build a piece of IKEA furniture without the instructions? Sheer chaos, lots of confusion, zero out of five stars, would not recommend. Running a gym without a comprehensive business plan is kind of like that. If you have dreams of gym growth and sustainability, creating a business plan is essential.
Oftentimes, gym owners think of a business plan as more of a formality. But in order for your business to survive in a competitive marketing environment, it’s crucial that you take the time to create one. Then it can act as a roadmap to help you navigate unexpected situations, while outlining your vision, services and strategies.
Welcome to the Gym Growth Blueprint Series! We asked gym owners, “What’s the one piece of advice you’d give a new gym owner?” As gym owners ourselves, the PushPress team is passionate about helping others succeed.
Today’s advice comes from JP Levesque, host of the Profitable Gyms Podcast and former gym owner.
“Learn how to market, assuming you’ve got a solid business plan in place already,” Levesque said.
Six Steps to Creating a Business Plan for Gym Growth.
1. Define Your Vision and Mission.
In the same way you don’t build furniture without instructions, you wouldn’t set out on a journey without a destination, right? As it relates to your business plan, the best place to start is articulating your gym’s vision and writing a mission statement. What do you want to achieve, and how do you plan to do it?
Your vision should reflect your long-term goals, while your mission statement outlines your purpose.
For example, your vision might be to work with aging adults looking to reduce aches and pains. Your mission could then focus on providing one-on-one coaching aimed at improving fitness, nutrition, stress and sleep.
Or perhaps your vision is to create an inclusive environment that makes fitness affordable for the masses. Then your mission might be to provide fun, supportive group classes that foster community and camaraderie.
Having a mission statement will not only guide you in long-term gym growth, but it will also help you build a stronger gym community. After all, the goal is to fill your gym with people who align with the culture you’re trying to lead.
2. Conduct Market Research.
Understanding your target market is fundamental. And conducting market research is a valuable part of your business plan for gym growth. The more you understand the nuances of your market, the better you’ll be able to find - and connect with - your target audience. Here are some areas to explore:
- Demographics. These include things like age, gender, occupation, education and income levels.
- Market size and trends. Start with determining the total number of potential members. Then dive into gym-related trends like seasonal variations. For example, a gym in a ski town might have attendance dips during winter months.
- Competitor analysis. Who is your local competition and what services to they offer? Check out their USPs (unique selling propositions), marketing strategies, customer reviews, etc.
- Consumer preferences. Do some research about the workout styles and scheduling preferences of your target audience. Also explore the demand for amenities like showers, childcare and even equipment.
- Pricing and membership models. While it’s important to choose membership pricing according to what your business needs, you should still be aware of competitor pricing. This includes things like membership tiers, drop-in fees and discounts. Also be sure to look at typical retention rates in your area.
- Local regulations. A vital part of your market research includes understanding the legal requirements for operating a gym in your area. Don’t neglect any of the health and safety standards or health regulations that gyms in your market are required to adhere to.
3. Develop Your Services and Pricing Structure.
Once you have a clear understanding of your market, you can outline the services and pricing to best fit your ideal clients’ needs. You may even want to take it one step further and develop buyer personas.
Start by determining your core service, such as group classes or personal training. Perhaps hybrid memberships are the best fit for your gym. From there, explore additional revenue streams like nutrition coaching or individual design programming. Don’t forget to consider how you’ll onboard new members, as this could be an add-on service as well.
Keep in mind that when you’re first starting out, sometimes less is more. Though it’s important to have multiple revenue streams for gym growth, be sure not to spread yourself too thin. For example, CrossFit gyms should perfect group classes before adding things like Olympic lifting or gymnastics skills classes. These can always be added later if the demand exists and you have the coaching resources.
The same is true when it comes to setting prices for memberships or other services. Most of the time, it’s best to keep it simple, rather than offering a wide variety of options. You don’t want prospective members to be so overwhelmed that they walk away entirely.
With that in mind, setting membership pricing should take into account what people will get at your gym, what they value most, and what they’re willing to pay in your market.
4. Create a Gym Growth Focused Marketing Plan.
We’d be remiss if we glossed over the first part of Levesque’s advice, “Learn how to market.”
After all, your gym marketing strategy can be one of the most significant pieces of the gym growth puzzle. Not only lead generation, but for improved sales conversion and even retention.
But first things first. Before you ever launch your marketing strategy, it’s imperative that you dial in your internal sales process first. After all, what good will it do to gain a bunch of leads if you aren’t ready or able to close them?
Similarly, ensure that you have an effective gym website. If you’re going to spend time and money getting people to your site, it should get them to take action. And when you improve SEO (search engine optimization), more potential customers have the opportunity to see it. Especially in the fitness industry, your leads will likely do plenty of research before reaching out to schedule an intro. So make sure your business is on their list of potential new gym homes.
As you’re creating marketing content, always craft messaging toward leads, not members. Too many gym owners make the mistake of producing content for social media (or platforms) with their current community in mind. From organic content to paid ads, always try to move the revenue needle for long-term gym growth.
5. Establish Operational Plans.
Operational plans simply detail how your gym will run on a daily basis, and it starts with creating systems, policies and procedures.
Having a plan - or gym operations manual - will outline your systems for just about everything that might happen in your business. From managing finances to nurturing leads, the goal is to decide how your business will operate.
Further, setting up formal policies and procedures can also ensure smoother operations. Think things like a code of conduct, or hold/cancellation policies. These could even include health and safety procedures or how you’ll handle member feedback.
The goal is simply improved efficiency and preparedness. When you can make these decisions in advance with a clear head, you’ll have a reference guide for if things suddenly go sideways.
6. Review and Revise as Needed.
Your business plan should be a living document. In other words, it’s not something that you’ll create once without ever needing to revise it. Through market changes, gym growth and the ever-evolving fitness landscape, it’s important to regularly review and revise your business plan.
Also, consider hiring a gym mentor or seeking feedback from industry peers to gain fresh perspectives. Adapting your plan will help you stay relevant and responsive to your members’ needs.
Pro Tip: Want to learn more about how PushPress tools can help with efficient gym operations and long-term growth? Book a demo with our team today!
In Summary: A Comprehensive Business Plan is a Critical Part of Gym Growth.
Creating a comprehensive business plan is more than just a blueprint for daily operations and navigating unexpected situations. It also outlines your vision, services and long-term gym grown and sustainability strategies.
To create one, start by defining your vision and mission. Conduct the proper market research to learn about your target audience. From there, you can develop your services and pricing structure. Then, create a gym growth focused marketing plan to spread the word. Next, include your daily operational plans. And finally, review and revise your plan over time as your business evolves.
