Guide 3 of 10 to opening a gym · Decide
Gym business plan: a template to fill in
A business plan for a gym, box or studio answers eight questions in writing. Who it is for, what you sell and at what price, where and with whom. What it costs to open and run, how many members you will have month by month, and what you do if it goes worse. Each section fits on a page. The plan exists to decide before you spend, and to answer the bank or partner who asks for numbers. Below is the template, section by section, with the capacity and break-even sums already set up.
On this page · 15 sections
- 1.Why write one, even if nobody asks
- 2.The eight sections
- 3.1. Summary
- 4.2. Audience and competition
- 5.3. Product and pricing
- 6.4. Space and capacity
- 7.5. Team
- 8.6. Launch
- 9.7. Financials
- 10.8. Risks
- 11.Four checks before you commit
- 12.How to present the plan to a lender or partner
- 13.The mistakes that cost most in a gym plan
- 14.After opening, the plan becomes a dashboard
- 15.Frequently asked
Why write one, even if nobody asks
A plan puts numbers where there used to be enthusiasm. On paper you find out that the 19:00 class needs fourteen people to pay the rent, or that the room only holds ten. Finding that out before signing the lease costs an afternoon. Finding it out afterwards costs a year.
If the plan is going to a bank, ask first whether it has its own template and adapt the order. The content stays the same.
The eight sections
| Section | The question it answers |
|---|---|
| 1. Summary | What it is, who it is for, how much money you need |
| 2. Audience and competition | Who will train, and who you compete with |
| 3. Product and pricing | Which classes and plans you sell, at what price |
| 4. Space and capacity | How many people fit per class and per week |
| 5. Team | Who leads, who coaches, what it costs |
| 6. Launch | How the first members arrive |
| 7. Financials | Investment, costs, members per month, break-even |
| 8. Risks | What can go wrong, and what you do then |
1. Summary
Write it last and put it first. Half a page, with four things: the concept in one sentence, the audience, the total investment, and the month you expect to break even. Anyone who reads only this should understand the business.
[Name] is [a box / a studio / a hybrid training gym] in [location], for [audience].
We sell [group classes / class packs / monthly plans] from [price] a month.
We need [investment], of which [own capital] is ours.
We expect to reach [number] members and break even in month [number].
2. Audience and competition
Start with the person, not the market. Who they are, how old, where they live or work, when they can train, and what they want that is not yet close by.
Map the competition by hand. List every gym within fifteen minutes by car or on foot. For each one, record the style of training, the timetable, the published prices and what reviews say. Visit the ones you can. Your national statistics office publishes population figures by area if you need to know how many people live nearby.
| Gym | Type | Timetable | Published price | How yours differs |
|---|---|---|---|---|
3. Product and pricing
Describe the classes you will run, with duration and capacity, and the plans you will sell. Four are enough to open: unlimited, a limited-frequency plan, a class pack and a drop-in. Write each price as the public will see it, with sales tax included where your country requires that.
If you will offer a founding price, write the conditions here: how many spots, until when, and what happens to the price afterwards.
How to structure plans and opening prices has its own guide. Founding member pricing for a new gym
4. Space and capacity
It looks like the most technical section, and it limits everything else. Capacity tells you how many members your timetable can hold before classes are full.
- 1.Spots per week = classes per week × capacity of each class.
- 2.Members who fit = spots per week ÷ classes each member takes per week.
- 3.Realistic members = members who fit, minus the empty hours in your timetable.
160 members
Hours do not fill equally. The 07:00 and 19:00 classes fill first, and the 15:00 class stays empty. Real capacity is lower than the sum, and the plan should say so. If break-even sits close to your capacity limit, the plan has a problem no marketing will fix.
How many spots each class should have, and why one more spot costs you later, is covered here. How many spots should a class have
5. Team
Who leads, who coaches, and who handles everything else: payments, messages, cleaning. Write down each person's qualifications and the full annual cost of each one. Check whether your country requires a licensed technical lead or licensed coaches. Some do.
6. Launch
How the first members arrive, with dates: the interest list, the launch event, the presale and the founding price. Give each phase a target in number of people, and say what you do if you fall short.
The presale, step by step, has its own guide.
7. Financials
Four tables, and none needs more than a spreadsheet:
- 1.Opening investment by category, including the cash reserve.
- 2.Fixed monthly cost: rent, people, insurance, energy, accounting, software.
- 3.Member forecast, month by month for 24 months: presale members, new joiners and cancellations.
- 4.Cash flow, month by month: revenue minus costs, and the running balance.
Put cancellations in the forecast from month one. Everyone who joins can leave, and a plan where nobody leaves is telling a story. Build three versions, cautious, likely and good, and show all three.
Month | Members at start | Joiners | Leavers | Members at end | Revenue | Costs | Month balance | Running balance
1 | [presale] | ___ | ___ | ___ | ___ | ___ | ___ | ___
2 | [end of month 1] | ___ | ___ | ___ | ___ | ___ | ___ | ___
… through month 24.
Break-even: the first month in which revenue covers costs.
Reserve needed: the lowest running balance, as a positive number, plus a margin.
The investment categories, and what tends to be forgotten, are in a separate guide. How much does it cost to open a gym?
8. Risks
Write down the five risks that move the numbers most, and your response to each. It is not pessimism. It is the part of the plan a bank reads most carefully.
| Risk | Early warning | Your response |
|---|---|---|
| The permit is late | No answer from the authority by the expected date | Move opening, keep the presale and events going |
| The presale falls short | Under half the target two weeks out | Review the founding price or the opening timetable |
| The fit-out overruns | Revised quote above budget | Use the reserve margin, postpone non-essentials |
| A coach leaves | Notice given | Have a second qualified coach and documented classes |
| The first summer is slow | Fewer bookings in the holiday months | A shorter summer timetable, decided in advance |
Four checks before you commit
Before signing a lease or ordering equipment, read the plan back against four checks. If one fails, change the plan before you change your life.
- 1.Break-even sits well below the capacity of your opening timetable, not at its edge.
- 2.The cash reserve covers the cautious version of the forecast, not just the likely one.
- 3.The presale target is a number of people you can name sources for: the list, your coaches' contacts, local groups.
- 4.You can survive the worst risk on the list without new money.
How to present the plan to a lender or partner
Whoever reads the plan wants three answers, fast. How much you are asking for, when the business pays for itself, and what happens if things go worse. Put all three in the summary and leave the rest for anyone who wants to dig.
- Bring the spreadsheet, not just the document. Whoever reviews it will want to change the numbers.
- Show the three forecast versions side by side, with the break-even month for each.
- Attach written quotes: fit-out, equipment, insurance. A quoted number is worth more than an estimate.
- Say how much of the investment is yours. A project where the owner risks little convinces less.
- Include the presale, if it has started. People who have paid are the strongest evidence a plan can have.
Concept: ______. Audience: ______. Location: ______.
Total investment: ______. Own capital: ______. Financing requested: ______.
Fixed monthly cost: ______. Average revenue per member, before tax: ______.
Break-even: ______ members, in month ______ (cautious) / ______ (likely) / ______ (good).
Capacity of the opening timetable: ______ members.
Presale: ______ members by ______.
The three biggest risks and the response to each: ______.
The mistakes that cost most in a gym plan
- Forecasts with no cancellations. Everyone who joins can leave.
- Capacity never calculated. The timetable has a ceiling, and the plan must know it.
- Revenue including sales tax. That money is not yours.
- A single version of the numbers. Three versions show you have thought about the worst case.
- Competition described from memory. Only what you saw published counts.
- No dates. A plan without a calendar cannot say when the money runs out.
A good plan says in which month the money runs out if things go worse. That number is worth more than the optimistic one.
After opening, the plan becomes a dashboard
The plan holds forecasts. After opening, compare them with reality every month: active members, joiners, leavers, class occupancy and revenue. In Rummo, the finance dashboard and reports on paid plans show these numbers. The follow-up list shows who has stopped training, before they cancel.
On paid plans, occupancy by time slot, attendance and new members are compared with last year. Occupancy and revenue reports
Frequently asked
- What should a gym business plan include?
- Eight sections: summary, audience and competition, product and pricing, space and capacity, team, launch, financials and risks. Financials cover the investment, monthly costs, a 24-month member forecast and cash flow.
- How do I work out how many members my timetable can hold?
- Multiply classes per week by the capacity of each class, then divide by the classes each member takes per week. Then allow for the hours that will not fill. That is your timetable's ceiling.
- How many months should the financial forecast cover?
- At least 24, month by month. The first year shows the climb to break-even. The second shows whether the gym holds up once the novelty wears off.
- How do I research competitors without market data?
- By hand. List the gyms within fifteen minutes, record published timetables and prices, read reviews, and visit the ones you can. Write down only what you confirmed.
- Should revenue include sales tax?
- No. Public prices may include it, but sales tax goes to the state. In the plan, revenue is the price before tax, minus payment fees.
- Will a bank accept this template?
- Ask the lender whether it has its own format, and adapt the order of the sections. The content stays the same.
Rummo team
Written by the people who build Rummo, management software for gyms, boxes and studios: classes, bookings, members and payments.
Reviewed
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