Whether you're a seasoned pro and have run your own CrossFit gym before, or you are brand new to the world of running fitness businesses, ensuring you have written a thorough business plan is one of the first steps you need to take.
By putting together a comprehensive business plan for your CrossFit box, you're first and foremost creating a strategy for yourself, as well as holding yourself accountable. Each section of your CrossFit gym business plan can work as though it was a "to-do" list that you can check off as you address each task. Your business plan is much more than that though.
In this guide, we take you through what each section of your CrossFit gym business plan should include and how it'll help you take your CrossFit gym from being an idea to a project in motion.
A business plan is a comprehensive document that outlines your business goals, strategies, and how you plan on achieving them. When you start any business, there's a lot to think about, and CrossFit gyms are no different.
Business plans are an essential tool for any business owner. For aspiring CrossFit gym owners, they help to map out a strategy and make informed decisions about the future of your business.
Additionally, a well-written CrossFit gym business plan can help to attract potential investors or secure business loans by clearly demonstrating how you intend to structure your CrossFit gym.
Creating a business plan that's in-depth and gives your potential investors a thorough run-through of how you intend to get your new business venture off the ground is vital to securing funding and starting your cash flow to get your CrossFit box open.
Showing you've thought about all the various aspects it takes to start your own CrossFit, from getting the right CrossFit equipment such as rowing machines, medicine balls, and more to
As with all things, there's more than one way to approach writing up business plans. However, making sure your business plan template includes these key features will help steer you in the right direction:
So what does each section entail? How will each part help you start your own CrossFit box?
Keep reading, and find out more about each component of a business plan so you can start to build your own business plan template.
A company summary is basically a short, concise description of your company. It should include information about your business, what you do, your target market, your unique selling proposition (USP), and anything else that would be relevant to someone considering doing business with you.
A company summary is sometimes also referred to as an executive summary, particularly in the case of startups seeking funding from investors.
In these instances, the company summary serves as an introduction to the rest of the business plan and can be a make-or-break factor regarding whether or not an investor decides to provide funding.
For CrossFit boxes just starting out, having a well-crafted company summary is critical to attracting the right kind of attention and investors. Here are some tips on how to create an effective company summary:
In this section of your business plan, you need to describe the services you offer at your CrossFit gym. When creating your list of services, consider what type of training you offer and what your target market is looking for.
At its core, CrossFit tends to be a group fitness activity. It’s a good idea to specify that in your business plan though. Never assume that everyone who is going to read your business plan is going to know those details.
Once you’ve laid out a plan for your core services and how you’ll be leading workouts of the day (WOD), think about any additional services you or your CrossFit box will offer customers.
A lot of gyms and fitness studios include some extras to help boost revenue as well as to keep clients interested in their fitness business.
Some additional services to consider offering your clients include:
When it comes to starting a CrossFit gym, the most important step is conducting a thorough market analysis. This involves evaluating potential competitors, assessing consumer patterns in your local area, and exploring emerging trends in the CrossFit industry.
By analyzing these factors, you can gain valuable insight into what customers in your community are looking for from a CrossFit box.
Next, it's important to consider the broader market trends that are shaping the CrossFit industry as a whole.
By examining these broader trends, you'll be better equipped to anticipate and stay ahead of changes in customer preferences and competition.
Ultimately, doing a thorough market analysis is the best way to ensure that your CrossFit gym is positioned for success.
Once you've gathered all your research on the local CrossFit market and identified your competition from your market analysis, you can create a marketing plan that outlines how you will promote your CrossFit box and attract new members.
It's important to have a marketing plan and sales forecast in place to help you to determine how to best reach your target clientele and what type of CrossFit equipment and services you need to provide in order to meet their needs.
Some of the questions you need to consider when you put together a marketing plan include:
You will also need to develop a sales forecast that projects your expected revenues and expenses. By taking the time to create a comprehensive marketing plan and sales forecast, you will increase your chances of success in the CrossFit industry.
When you're thinking about starting a CrossFit gym, it's important to first understand the competition. Who are the other CrossFit boxes in your area? What are their strengths and weaknesses? How can you position your own gym to stand out from the pack?
The best way to get insights into your competitors is to conduct a competitive analysis. This involves researching their businesses, observing their practices, and talking to their customers. With this information in hand, you'll be able to develop a clear understanding of what makes your competitors successful (and what doesn't).
There are a few key things to look for when conducting a competitive analysis:
Competitor analysis isn't necessarily about trying to find ways to undercut the competition or even ways of poaching their clients. In many respects, it's more about making sure you're not stepping on each other's toes.
The ideal location depends on several factors, including the size and layout of the premises, the surrounding community, and the availability of parking and public transportation.
The size of the premises is an important consideration, as you need enough space to accommodate all of the necessary equipment and still have room for clients to workout comfortably.
The layout of the space is also essential, as you will need to have designated areas for warm-ups, workouts, and cooling down.
The surrounding community is another important factor to consider, as you want to be located in an area with a high concentration of potential clients.
You should also consider the demographics of the community, as you want to be sure that your target market will be able to access your gym easily.
Finally, you should consider the availability of parking and public transportation. If your gym is not located near public transportation, it is important to have ample parking available for your clients.
Finally, your business plan should include a detailed financial plan that outlines your expected startup costs and how you propose to fund and manage your CrossFit gym.
How much money do you need to start your CrossFit gym? This includes the cost of renting or purchasing a space, equipment, and any renovations or build-outs that need to be done.
How will you generate revenue? Will you charge monthly membership fees, daily drop-in rates, or both? As we've already established, the cost of a premises for your CrossFit business needs to be taken into consideration, but what else do Crossfit gym owners need to think about?
It may seem that at the start you won't need to invest in software solutions with lots of features. Your client base is still relatively small and running things with a spreadsheet and paying on the day can seem like the easiest solution for the first few months at least. But even if you start out with a smaller client base, that number is going to grow.
As a CrossFit gym owner, admin and paperwork can quickly start to pile up. From tracking memberships and payments to scheduling classes and managing finances, there's a lot to keep on top of. CrossFit management software can help CrossFit owners to overcome many of the challenges of managing a CrossFit box.
By investing in the right CrossFit software solutions, you can streamline your admin, freeing up time to focus on other areas of your business. The best CrossFit software will offer a range of features, from online membership management to class scheduling, payment processing and thorough reports that will help you make fact-based decisions based on clear data.
With everything in one place, you'll be able to save time and take the complexity out of your day-to-day administration. So looking for ways to simplify your CrossFit gym's admin from day one means exploring the different CrossFit gym management software providers out there.
An important part of your financial plan is showing that you've considered the cost of equipping your CrossFit box. Your financial plan needs to include proof that you've researched exactly how much it will cost to purchase all the necessary CrossFit equipment for your CrossFit box.
A CrossFit rig typically includes a pull-up bar, weights, and a squat rack. You can expect to pay anywhere from $2,000 to $10,000 for a basic rig, depending on the quality and features you choose. In addition, you'll need to factor in the cost of flooring, signage, and insurance.
Gym owners are responsible for the safety of their members, so it's crucial to have adequate coverage in case of accidents or injuries.
In addition to the obvious costs of renting or buying a space, outfitting it with equipment, and marketing your new business, there are a few other important factors to consider when creating a financial plan for your CrossFit gym.
One of the most important is hiring trainers and staff. While you may be able to get by with one or two trainers at first, eventually you'll need to hire more staff to keep up with the demand.
Not only do they need to be qualified and experienced, but they also need to be able to work well as a team. Hiring the right personalities is as important, if not more than hiring the most experienced candidates.
You can budget for continuing education and certifications for your trainers, but you can’t budget for the right characters who will work well with you, your other team members, and of course, with your clients.
Finally, don't forget to add a budget for any unexpected expenses, such as repairs or replacements for worn-out equipment. By taking all of these factors into account, you can create a comprehensive financial plan that will help you get your CrossFit gym off the ground.
Once you have a good idea of the start-up costs involved, you can start to look into potential revenue sources. Membership fees are typically the largest source of income for CrossFit boxes.
You may also want to consider hosting competitions or offering personal training services. By creating a detailed financial plan, you can make sure that you have the resources necessary to open a successful CrossFit box.
Following a clear structure when you put together a business plan for a CrossFit gym is beneficial not only so you can present your ideas with data and facts to any potential investors. It also helps you plan how to start your own CrossFit.
Each section of your business plan can work as a to-do list. It means making sure you’ve completed each task fully and you’ve considered all the different factors that go into starting any new fitness business.
By preparing a business plan that includes all of the necessary information, you increase your chances of opening a successful CrossFit gym. Make sure to do your research, consider all of the costs involved, and create a detailed financial plan. With careful planning and execution, you can create a thriving CrossFit business.
For more tips and advice for CrossFit gym owners, find answers to CrossFit FAQs here, and start planning the best WOD for your clients with these 11 CrossFit exercises.\
The revenue of a CrossFit gym primarily comes down to how many members go there regularly. A well-run and managed CrossFit gym can earn six figures annually while having hundreds of total accounts across multiple locations. However, even with that said, it still relies on the owner's engagement every day. On average, a CrossFit gym owner earns $36,000 per year.
Starting a CrossFit gym can range from a few thousand dollars to $10,000 for a basic rig, depending on the quality and features you choose. In addition, you'll need to factor in the cost of flooring, signage, and insurance.
There are pros and cons to starting your own CrossFit gym from scratch and purchasing an existing one.
Start your own for more control over your gym and to foster a stronger sense of community. Remember that it will take more time and money than buying an existing one.
Although purchasing an existing CrossFit gym can be less risky, you'll need to ensure its goals and vision align with yours.