There are over 6,700 gym facilities in the UK, and one in seven people are members of a gym – that’s 9.7 million of us. Within the industry there are several big names, but there are also many independent facilities. If you’re thinking about setting up your own independent gym, you may be wondering how you are going to compete against the other already established businesses in this market.
A business plan can help you to show potential investors – and plan out for yourself – how your gym is going to be different to others in your area. Here are three questions your gym business plan should be answering:
Who Is Your Target Market?
If you’ve already invested a lot of time into planning your new venture, you probably know who your target market is. This is vital information because it dictates so much of the rest of your plan and what you will do next. For example, to plan your financial projections you need to know your price points, and to set your price points you need to know who your market is and how much they are willing to spend. You also need to know what facilities they would like to have, and which equipment might not appeal to them. Once you’re set up, how are you going to market to them and grab their attention? Having a solid idea of who you are targeting helps you to create a strong brand that has a clear place in the market.
Who Is Your Competition?
When you want to stand out from the crowd, you first need to know who is in that crowd. There may be a handful of gyms nearby, but they might have different USPs and target markets. For example, they could be open 24/7, they could be a premium health club, they might be at the cheaper end of the market, or they might be women-only gyms. Where do you gym fit in amongst these? If someone is offering something similar to what you are planning, how are you going to do it better than them?
What Is Your Price Structure?
Would your gym members appreciate being able to choose from a range of different tariffs, such as day passes, monthly subscriptions or rolling memberships? What membership levels are other gyms in the area offering, and can you offer something different?
It’s important that you offer a pricing structure that your members will be happy with, but it’s also important to consider your cash flow and put a structure in place that is going to give you the revenue you need. While you need to think about your place in the market, you also need to consider how the decisions you make will affect your finances and your growth – and all this should be covered in your business plan.
For more information, take a look at our previous blog post, “Writing A Business Plan For A Gym”. If you’d like some help writing a gym business plan that will make you stand out from the crowd, get in touch with cbm! Contact us online using the form on the right or call 01604 420 420.