Chapter 4: Business Operations Summary

Business Plans

  • Foundation of fitness facilities

  • Road map for organization creation and expansion

  • Essential for managers of new or existing facilities

Well-Developed Business Plans

  • Assess success likelihood

  • Critical for goal setting

  • Reduce risk significantly

  • Serve as a marketing tool for capital raising

Business Plan Components

  • Executive summary

  • Company description

  • Products and services

  • Market analysis

  • Strategy and implementation

  • Organization and management team

  • Financial plan and projections

Business Models

  • Types: For-profit, Nonprofit, or both depending on facility

  • Pricing:

    • For-Profit Facilities:

    • $10 to $30/month: Budget clubs

    • $30 to $80/month: Midmarket clubs

    • $80+/month: Premium clubs

    • Nonprofit Facilities:

    • Varies, often included in student fees or benefits

Funding Sources

  • Membership dues

  • Student fees

  • Taxes

  • Grants and sponsorships

  • Government loans

  • Personal equity

  • Angel investors, Venture capital, Private equity

  • Bank debt, Crowdfunding

Revenue Sources

  • Membership

  • Specialized programming

  • Spa services

  • Food and beverage

  • Retail

  • Youth programming

  • Rentals

Departmental Expenditures

  • Total payroll (salary and benefits)

  • Education and training, supplies

  • Current services (advertising, maintenance)

  • Miscellaneous and fixed expenses

Budgeting and Forecasting

  • Profit and loss statements

  • Types of budgeting: Incremental, Activity-based, Value proposition, Zero-based budgeting