Fitness club business plan
SUMMARY OF THE PROJECT
The goal of the project is to organize a sports hall in the “low-cost” price segment in Moscow, m. Yuzhnoye Chertanovo. The project has both a commercial and a social dimension, providing affordable healthy leisure time for young people. The gym is located in a rented area, in the basement of a residential building. Target audience - young people (men) aged 15-35 with low and middle income, interested in sports.
The main prerequisites for the successful implementation of the project are: the growth of the market for sports and health services even in times of crisis and the absence of sports facilities in the area under consideration with an extremely high population density.
Investment costs are directed to the purchase of simulators, the arrangement of the premises, as well as the formation of a working capital fund, from which losses are covered until the project reaches payback. Key performance indicators are shown in Table. 1.
Table 1. Key performance indicators of the project
Discounted Payback Period (DPP), months
Net Present Value (NPV), rub.
Return on investment ratio (ARR),%
Internal Rate of Return (IRR),%
COMPANY AND INDUSTRY DESCRIPTION
Gym services are part of the sports and health services market, which, in turn, is part of the paid services market. Paid services are an important part of the population's spending structure. However, in terms of the share of paid services in the structure of gross expenditures per capita, Russia lags far behind developed countries. This is primarily due to the relatively low level of income and a large share of the cost of food. As incomes increase, the share of spending on food will decrease, while the share of spending on paid services will increase.
Experts note a constant drop in the real disposable income of the population since 2021; only in the first quarter of 2021 they fell by 3.7%. This drop caused a decrease in household spending by 4.3%, which, in turn, had a negative impact on the dynamics of GDP - it led to a fall in gross domestic product by 1.2% in annual terms.
At the same time, according to analysts (Rosstat and the Analytical Center under the Government of the Russian Federation), the consumption of paid services is highly stable amid falling demand for goods (primarily durables) - in 2021 the demand for services fell by only 2%, while retail contraction was 10%. The volume of the paid services market in 2021 (the results of 2021 are still being summed up) amounted to 7.9 trillion rubles, which corresponds to 17.3% of the added value of the entire service market of the country.
The fitness industry in Russia has been developing rapidly since the 2021s. The process continues now, even in the conditions of instability in the country's economy. People are gradually beginning to see their body as an investment of effort. A physically developed body strengthens health, physiological and psychological processes; it is not only useful but also fashionable. The fitness market is growing every year (growth in 2021 - 10.2%), as is the number of Russians who regularly train in sports clubs. The field of sports in terms of business has great potential, which needs to be developed now. In the above business plan for opening a fitness club, the reader will be able to understand in more detail how to open a sports center, what to take into account in the process, and also study the approximate calculation of how the business will reach the break-even point.
How much money is needed to open a fitness club
Building a fitness club from scratch will require a large investment. An entrepreneur seeking to open such an object must take into account a variety of factors. It is ideal for a person with the knowledge and experience of training to do this business, although in any case, you will have to resort to the help of qualified trainers.
This business plan describes the project of opening a sports complex with a wide range of services. The implementation of this idea will require a minimum investment of over 4 million rubles. (a detailed calculation is given in the article below).
The size of the initial capital is affected by the location of the object, its size, the range of services offered, as well as the amount of investment in marketing promotion.
Description of products and services
At the first stage, the sports club will offer services:
- strength training in the gym;
- aerobics and step aerobics;
- massage and solarium;
- sports bar.
With development, you need to expand, for example, add an indoor pool, create dance classes for different age groups, etc.
In addition to group lessons, it is recommended to provide personal training.
Football club financial model
Brief Investment Memorandum
The recent active promotion of a healthy lifestyle and the policy aimed at the development of sports competitions in our country arouses increasing interest in sports among the population. Sport is taking an increasing place in people's lives. At the same time, football is the most popular among our citizens. This business plan has been drawn up with the aim of starting an amateur football team. Taking into account the high popularity of this sport and ample opportunities for commercialization, the payback period of the project is 22 months, and the project break-even occurs as early as 6 months, when an agreement with the sponsor is signed.
To start creating a football club, you will need to rent a sports base where players can train. The average area of the base, including administrative buildings on it, is about 3,500 m2. In addition to the base, 43 people will need to be recruited.
The club will receive its main income from three sources: the sublease of the football field, the sale of tickets for matches and sponsorship. The rental price will be 6,000 rubles per hour, the ticket - 300 rubles. It is planned to attract a key sponsor by the 6th month of the club's work. The required sponsorship per month is 9,000,000 rubles. Thus, the general indicators of the club will be as follows:
Description of business, product or service
Football is one of the most popular sports in our country. Given the recent reforms, Russian football will increase in popularity in the near future. Thus, with proper management of the club and the presence of good players, the owner will be able to generate substantial profits.
The main goal of this business plan is to create an amateur football club for the purpose of its development and profit.
In order to correctly draw up a strategy for the development of the club, it is necessary to determine its initial position in the football system of Russia. The general structure of football in Russia is as follows:
- Amateur Football League
- Professional Football League
- Football National League
- Russian Football League
Thus, at the opening stage, the club will be at the first level of the system. At the same time, it should be noted that with sufficiently good funding and rapid growth, the club can reach the top league in 4-5 years.
A fitness club is a profitable business that requires an impressive investment. But the costs are offset by the growing demand for sports. Taking care of yourself, being fit and athletic today means “being in trend”, and despite the abundance of gyms and fitness clubs, experts note that in some cities this niche is not filled. Read the fitness club business plan for 2021.
How to open a fitness club: project summary
Consider, for example, a business plan for a small club within walking distance, located in a residential area of the city and designed for residents of this microdistrict.
The main characteristics of your fitness club are written in the first section - the project summary. Also here you need to describe the market, competitors, target audience (potential customers).
Working hours - from 7:00 to 23:00.
Sample list of services:
- Martial arts;
- Sports dance,
- Other types of fitness (Pilates, yoga, stretching, etc.)
- Children's fitness programs;
- Personal training;
- Fitness bar.
Organization and production plan
This section of the plan includes the basic steps for starting a business.
Sports Business Plan Examples
Starting a business in the sports field is a promising business idea. However, for its correct organization, it is necessary to competently carry out business planning. To do this, you need to follow certain rules for its preparation, as well as decide on the type of activity. In this article, we will look at the main aspects of a sports business plan and provide examples.
Sports Business Ideas
Examples of the most attractive business ideas:
- fitness club ;
- yoga studio;
- boxing school;
- football school; li >
- equestrian club;
- dance studio and much more.
Here are the areas of sport that require different amounts of investments. The most expensive, but interesting is the equestrian club. The rest of the sports business ideas are low-cost (from 300 thousand rubles or more), so they are preferable for the small segment.
Sports Business Planning
Let's consider the basic rules for drawing up a plan for a new sports enterprise. It is necessary to start from the overview part. It contains the main goals of starting a business in the field of sports and the nature of the activity. Next, you need to provide a justification for the selection of premises for your organization. It is necessary to make a list of purchased equipment, taking into account prices. Remember that only a business plan with calculations can be considered competent. Therefore, in the financial part, be sure to make a calculation of income and expenses, calculate the profit and the payback period of the project.
Be sure to consider recruiting in your planning process. Typically, a sporty type of business requires qualified coaches, administrators and other workers. Hiring trainers should be considered carefully, as the effectiveness of the enterprise depends mainly on them.
If writing a sports business plan is challenging, you can find free examples on our website. Good luck in your new endeavors!