Business Plan of a Fitness Gym

Rolf Fitness Gym will ensure offering unique consumer value proposition to its target consumers in attaining competitive edge because of which the company’s cash flow and income is expected to increase gradually over the years.

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Business Plan of a Fitness Gym
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1BUSINESS PLAN OF A FITNESS GYM
Executive Summary
Rolf Fitness Gym will ensure offering unique consumer value proposition to its target consumers
in attaining competitive edge because of which the company’s cash flow and income is expected
to increase gradually over the years. The mission of the business of Rolf Fitness Gym is
establishing a committed community of elite functional fitness. The business of this fitness gym
will also be focused on opening and operating a fitness facility at full capacity within the first
two years of its business operation. The promotional content will include engaging content and
visuals on the gym ambiance, the available training equipments, training sessions offered along
with the introductory discounts of the new gym. This proposal channel will also serve as
inexpensive mediums of advertising that can decrease costs along with creating high exposure
for the new gym.

2BUSINESS PLAN OF A FITNESS GYM
Table of Contents
1. Background..................................................................................................................................3
2. Mission........................................................................................................................................3
3. Product Offering..........................................................................................................................4
4. Market Analysis...........................................................................................................................5
4.1. Industry Analysis..................................................................................................................5
4.2. Competition..........................................................................................................................6
5. Primary Target Market................................................................................................................6
6. Marketing Strategy......................................................................................................................7
6.1. Product..................................................................................................................................7
6.2. Pricing...................................................................................................................................7
6.3. Distribution...........................................................................................................................8
6.4. Promotion.............................................................................................................................8
7. Financial Plan..............................................................................................................................9
8. Critical Risks.............................................................................................................................13
9. Conclusion and Recommendations............................................................................................14
References......................................................................................................................................15

3BUSINESS PLAN OF A FITNESS GYM
1. Background
Rolf Fitness Gym will position itself as a thriving fitness centre that can offer affordable
and convenient fitness training services to women and men at all ages nearby the Melbourne area
of Australia. The new business will gradually expand its business to other cities of Australia over
the years. For offering its consumers with most affordable fitness and gym based services
affordability, it will consider employing professional fitness trainers that will be certified as
personal trainers along with having personal knowledge and experience to offer the fitness
services as per consumers’ convenience (Barnes, Ball and Desbrow 2016). The personal trainers
will also be able to support the consumers visiting the fitness gym to attain their personal fitness
goals. The operating hours of the gym will be from 7 am in the morning to 9 pm at night all days
of a week. The fitness gym also focused on offering a low-cost along with ensuring flexible
alternative to expensive and off-site facilities through which it expects to target a huge base of
health conscious fitness-focused residents that are already to workout fir maintaining their
personal health (de Freitas and de Bom 2015). Rolf Fitness Gym will be unique in its business
approach in employing certified professional trainers that can offer exceptional personal training
to consumers.
2. Mission
The mission of the business of Rolf Fitness Gym is establishing a committed community
of elite functional fitness. The business of this fitness gym will also be focused on opening and
operating a fitness facility at full capacity within the first two years of its business operation.
Focused on such mission, the business will develop its fitness products and services based on the
goal of exceeding consumer expectations and increasing sales. To maintain efficiency of its

4BUSINESS PLAN OF A FITNESS GYM
services, Rolf Fitness Gym will offer initial screening and consultation for being able to design
fitness services based on the analysis of health position of all its target consumers. Moreover, the
mission of the new fitness gym will also be to attain competitive advantages in the market within
short time span through offering services such as health and lifestyle advising for consumers,
offering personal or private training sessions at the gym and totally exploiting the sector with
respect to offered quality offered along with making sure that the consumers enjoy the services
they are attaining. Its mission is also to attain increased visibility of its business through creating
better employment for youth in the locality that faces difficulties in accessing employment.
3. Product Offering
The services that will be offered by Rolf Fitness Gym are deemed to be simple and
versatile for the consumers. Personal training sessions will be provided by the gym based on
their heath position and fitness goals (Eke 2017). Each session will last for an hour where the
introductory session will focus on discussing the fitness goals and later most of the sessions will
completely focus on exercising. Professional public training will be offered by the highly
experienced trainers in the gym that can help the consumers in getting in better shape. The
women trainers will also be present that can provide fitness support to women long with
coaching them in several ways of exercising at the fitness gym. The gym training and exercising
equipments that will be placed in the Rolf Fitness Gym automated treadmills, exercise bikes,
elliptical cross trainers, rowers, stair climbers, group cycling, upper body trainers, free weights,
multigyms and cable stations along with accessories (Girnale et al. 2017). With such equipments,
the fitness gym can offer highly effective cardio, strength, functional and group activities based
training to ensure that training in equipments are attained at highest level similar like

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professional athletes. Such fitness services along with the modern gym training equipments will
be offered to consumers at an affordable price.
4. Market Analysis
4.1. Industry Analysis
As the new fitness gym will establish its business in the Melbourne location of Australia,
it will analyze the situation of the industry in developing effective sales, business operations and
marketing strategies for attaining competitive edge in the fitness industry. The fitness industry of
Australia is observed to grow at an alarming rate of 10% each year due to increase in the health
conscious population within the nation (Glassman 2015). This indicates positive growth
prospects of the new business of Rolf Fitness Gym. PEST analysis is carried out in analyzing the
fitness industry situation of Australia is indicated below:
 Political- Political factors can include legislation or government policies and for the
fitness organizations fewer concerns are observed to be related with the trade restrictions
and tax existing in the Australian market (Hermon 2017).
 Economical- The economic factors are considered to be the major factor for successful
operations of the fitness centers. For the reason that the fitness service organizations are
leisure service providers there might be decrease in the number of consumers in case of
any economic downturn within the nation. If the buying power of the consumers due to
economic downturn decreases it can decrease consumer base fur the gym (Hunt 2016).
 Social- Population demographics also serve as a vital factor that can influence business
of a fitness gym. It has been observed that there is a high demand for being involved in

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physical fitness activities among the young and old people residing in Melbourne. Heath
conscious consumers are increasing in population within the nation (Isaac 2018).
 Technological- Highly developed gym equipments and staff requirements make it
difficult for several gym centers to enter in the Australian market. The fitness companies
are aware of several technological advancements in the gym equipments and the training
processes for offering attest fitness service to consumers.
4.2. Competition
The competition for the new Rolf Fitness Gym in Melbourne region of Australia includes
two renowned and established fitness Clubs such as Gold Gym and Wellness Gym. In addition
there are 5 more newly established yoga and fitness centre opened in the nearby area and in the
residential complexes that can be in competition of this new gym (Koehler 2016). From analysis
of these competitors’ services it has been gathered that in all these fitness clubs, various types of
memberships are available as per the convenience of the consumers in the locality. Existence of
options can make the potential fitness club members to compare among the available fitness
centers and select the one that specifically fits ton their needs and fitness equipments that they
desire. Value is highly important to such potential members as most consumers prefer attain the
best value against the price they pay (Kriel 2018). However, the new business of Rolf Fitness
Gym will attain competitive advantages over these competitors through offering modern and a
variety of gym training equipments, highly rained personal trainers and subscription packages at
highly affordable and low price within the locality.

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5. Primary Target Market
The primary target consumer market will be the hardcore fitness people residing within
the selected locality of Melbourne in Australia. This consumer group is considered to be most
prospective visitors of the Rolf Fitness Gym as they perceive themselves as dedicated fitness
committed people. Moreover, they are highly particular about their workout equipment types and
they enjoy the opportunity to be trained at the fitness centre (Lange 2018). As the new business
will maintain advanced gym equipments and experienced trainers this target consumer group is
likely to maintain their commitment with the gym. Another target consumer market segments in
Melbourne are families and senior citizens residing in the region. These consumers are likely to
become members of Rolf Fitness Gym as they are highly interested in health promoting
platforms in affordable prices and consider to focus on their physical activity because of
increased encouraged from family and physicians (Laurens 2019). This target consumer group is
observed to be fastest growing primary market segment over the last ten years. They can also be
a target market for the fitness gym for their special promotions and periodic activates.
6. Marketing Strategy
6.1. Product
The services that will be offered by Rolf Fitness Gym are deemed to be simple and
versatile for the consumers (Lin 2017). The gym training and exercising equipments that will be
placed in the Rolf Fitness Gym automated treadmills, exercise bikes, elliptical cross trainers,
rowers, stair climbers, group cycling, upper body trainers, free weights, multigym and cable
stations along with accessories. With such equipments, the fitness gym can offer highly effective

8BUSINESS PLAN OF A FITNESS GYM
cardio, strength, functional and group activities based training to ensure that training in
equipments are attained at highest level similar like professional athletes.
6.2. Pricing
The pricing strategy that will be implemented by Rolf Fitness Gym will be penetration
pricing where the fitness and the gym services and sessions will be offered to the consumers at
an affordable price. This pricing strategy set for it high quality training sessions and gym
equipments is deemed to tract a huge target consumer base (Lum 2017). Monthly charges for the
training sessions will charge around $ 50 in the initial years of its business that is lowest among
its competitors in the locality. Additionally, charges will be paid by consumers for their training
sessions based on fitness packages and membership fees they select that can be on monthly,
quarterly or yearly basis as per their needs. Additional discounts will be offered of consumers
select one year payment for their training courses (Neville and Gorman 2016).
6.3. Distribution
The training services offered by Rolf Fitness Gym will be through its multi-specialty gym
situated at the city centre of Melbourne region of Australia. This location is selected as it is easy
for the consumers to reach the gym through motor bikes and can also be within the walking
distance. This location also has close proximity to the nearby residential areas along with the
office complexes (Nutting 2018).
6.4. Promotion
Rolf Fitness Gym will promote its business through both online and offline advertising
medium. Initially the business will be promoted through social media channels such as Face
book, Instagram and Twitter along with advertising through flyers. The promotion strategy of the

9BUSINESS PLAN OF A FITNESS GYM
new gym will also include e-mail promotions, word-of-mouth along with local advertising
strategies through flyers and newspapers (Obenauer 2016). Several lead generation exercise will
also be considered on the local parks near the Melbourne region. Promotion of the new gym will
also be done through making presentations to the athletic directors along with the high school
coaches. Another promotional tool that will be employed by Rolf Fitness Gym is its website. The
company’s website will be linked with its main fitness website which is intended to attain
millions of hits every year. If the consumers reside nearby wellbore city, the site will recommend
them to the gym website that can offer consumers with every information they need to join the
new gym and use its fitness services. The promotional content will include engaging content and
visuals on the gym ambiance, the available training equipments, training sessions offered along
with the introductory discounts of the new gym (Sparrowhawk 2016). These promotional
techniques will facilitate in developing an interest of consumers towards its training services.
Moreover, the trainers of the gym will be required to the Rolf Fitness Gym logo included shirts
so that the gym goers are attracted to this new gym center in the locality. This proposal channel
will also serve as inexpensive mediums of advertising that can decrease costs along with creating
high exposure for the new gym.
7. Financial Plan
Rolf Fitness Gym will ensure offering unique consumer value proposition to its target
consumers in attaining competitive edge because of which the company’s cash flow and income
is expected to increase gradually over the years (Yap and Ong 2017). The capital requirements to
start-up the business is estimated to be $100000 among which $50,000 will be invested by owner
and 450,000 will be gathered as loan from bank. The start-up expenses needed by the business to

10BUSINESS PLAN OF A FITNESS GYM
successfully establish its operations along with projections on its profit and cash flow position in
the future years are indicated below.
Start-Up Costs
Summary Statement
Sources of Capital
Owners' and Other Investments
$
31,400
Bank Loans 5,000
Other Loans 5,000
Total Source of Funds
$
41,400
Startup Expenses
Bldgs / Real Estate
$
5,000
Leasehold Improvements 2,000
Capital Equipment 4,000
Location / Admin Expenses

11BUSINESS PLAN OF A FITNESS GYM
4,000
Opening Inventory -
Advertising / Promo Expenses 1,200
Other Expenses 1,000
Total Startup Expenses
$
100,000
Profit and Loss Projection
Year 1 Year 2
Gross revenue $100,000 $120,000
Cost of goods sold $11,400 $11,628
Gross margin $88,600 $108,372
Other revenue [source] $50,000 $0
Interest income $0 $0
Total revenue $138,600 $108,372
Operating expenses
Sales and marketing $10,000 $10,200
Payroll and payroll taxes $50,000 $51,000

12BUSINESS PLAN OF A FITNESS GYM
Depreciation $30,000 $28,458
Maintenance, repair, and overhaul $1,340 $1,367
Total operating expenses $91,340 $91,025
Operating income $47,260 $17,347
Interest expense on long-term debt $6,000 $6,720
Operating income before other items $41,260 $10,627
Loss (gain) on sale of assets $0 $0
Other unusual expenses (income) $0 $0
Earnings before taxes $41,260 $10,627
Taxes on income 30% $12,378 $3,188
Net income (loss) $28,882 $7,439
Cash Flow Projection
Year 1 Year 2
Operating activities
Net income $100,000 $120,000

13BUSINESS PLAN OF A FITNESS GYM
Depreciation $30,000 $28,458
Accounts receivable $15,000 $16,000
Inventories $0 $0
Accounts payable $0 $0
Amortization 5,000 5,000
Other liabilities 25,000 25,000
Other operating cash flow items 0 0
Total operating activities $175,000 $194,458
Investing activities
Capital expenditures $230,000 $0
Acquisition of business 15,000 15,000
Sale of fixed assets $10,000 $10,000
Other investing cash flow items 0 0
Total investing activities $255,000 $25,000
Financing activities
Long-term debt/financing $123,000 $6,720
Preferred stock 0 0
Total cash dividends paid 5,000 5,000
Common stock 0 0
Other financing cash flow items 5,000 5,000
Total financing activities $133,000 $16,720

14BUSINESS PLAN OF A FITNESS GYM
Cumulative cash flow $563,000 $236,178
Beginning cash balance $0 $563,000
Ending cash balance $563,000 $799,178
8. Critical Risks
Certain critical risks must be taken into consideration by Rolf Fitness Gym as these might
impact the successful business operation of the fitness gym in Melbourne, Australia. There might
a risk that not sufficient number of residents is interested in personal training in the region.
Considering such critical risks, the fitness gym must be aggressively involved in marketing along
with advertising that will be necessary in the initial business stages for the gym to build a brand
name and awareness among target consumers. Once the fitness gym business is established
successfully, there might be another critical risk of litigation. This is for the reason that physical
exercise might result in injury and there might also be a risk that a personal trainer suggests some
training to consumers that can result them to get injured (Yonker and Zerbe 2016). To deal with
such critical risk will require a considerable waiver of liability from the trainers along with the
consumers. Even with such waiver the fitness gym might face issues related with the legal fees in
case the consumers take decision to litigate.
9. Conclusion and Recommendations
From developing business plan for a fitness gym it can be elucidated that to maintain
efficiency of its services, Rolf Fitness Gym will offer initial screening and consultation for being
able to design fitness services based on the analysis of health position of all its target consumers.

15BUSINESS PLAN OF A FITNESS GYM
The primary target consumer market will be the hardcore fitness people residing within the
selected locality of Melbourne in Australia. This consumer group is considered to be most
prospective visitors of the Rolf Fitness Gym as they perceive themselves as dedicated fitness
committed people. Moreover, based on the analysis it is also recommended that Rolf Furness
Gym must attain competitive advantages over these competitors through offering modern and a
variety of gym training equipments, highly trained personal trainers and subscription packages at
highly affordable and low price within the locality.

16BUSINESS PLAN OF A FITNESS GYM
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