Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their crossfit gym businesses.
If you’re unfamiliar with creating a crossfit gym business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.
In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a crossfit gym business plan step-by-step so you can create your plan today.
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A business plan provides a snapshot of your crossfit gym business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.
If you’re looking to start a crossfit gym business or grow your existing crossfit gym company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your crossfit gym to improve your chances of success. Your crossfit gym business plan is a living document that should be updated annually as your company grows and changes.
With regard to funding, the main sources of funding for a crossfit gym business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for crossfit gym businesses.
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If you are starting a gym business or expand your current crossfit gym business, you need a business plan. The guide below details the necessary information for how to write each essential component of your crossfit gym business plan.
Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.
The goal of your executive summary is to quickly engage the reader. Explain to them the kind of crossfit gym you are running and the status. For example, are you a startup, do you have a crossfit gym business that you would like to grow, or are you operating a chain of crossfit gym locations?
Next, provide an overview of each of the subsequent sections of your plan.
In your company overview, you will detail the type of crossfit gym you are operating.
For example, you might specialize in one of the following types of crossfit gym businesses:
In addition to explaining the type of cross fit gym you will operate, the company overview needs to provide background on the business.
Include answers to questions such as:
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In your industry or market analysis, you need to provide an overview of the crossfit gym industry.
While this may seem unnecessary, it serves multiple purposes.
First, researching the crossfit gym industry educates you. It helps you understand the market in which you are operating.
Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.
The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.
The following questions should be answered in the industry analysis section of your cross fit gym business plan:
The customer analysis section of your crossfit gym business plan must detail the customers you serve and/or expect to serve.
The following are examples of customer segments: individuals who seek better health and fitness, athletes who seek higher performance levels, and those who seek weight gain.
As you can imagine, the customer segment(s) you choose will have a great impact on the type of crossfit gym you operate. Clearly, individuals with the goal of weight loss will respond to different marketing promotions than will those who choose to train for competition.
Try to break out your target customers in terms of their demographic and psychographic profiles. With regard to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.
Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.
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Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.
Direct competitors are other crossfit gyms.
Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes performance athlete retail stores, digital exercise or workout routines and natural health stores, You need to mention such competition, as well.
For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as
With regard to the last two questions, think about your answers from the customers’ perspective. And, don’t be afraid to ask your competitors’ customers what they like most and least about them.
The final part of your competitive analysis section is to document your areas of competitive advantage. For example:
Think about ways you will outperform your competition and document them in this section of your plan.
Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a crossfit gym business plan, your marketing strategy should include the following:
Product: In the product section, you should reiterate the type of crossfit gym company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide specialized workouts directed to consumers ages 40+?
Price: Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.
Place: Place refers to the site of your crossfit gym company. Document where your company is situated and mention how the site will impact your success. For example, is your crossfit gym located in a busy retail district, a business district, a standalone building, or in a neighborhood mall? Discuss how your site might be the ideal location for your customers.
Promotions: The final part of your crossfit gym marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:
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While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.
Everyday short-term processes include all of the tasks involved in running your crossfit gym, including answering calls, planning and scheduling courses, paying invoices, contacting customers, etc.
Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell out available courses, or when you hope to reach $X in revenue. It could also be when you expect to expand your crossfit gym to a second or third location.
To demonstrate your crossfit gym’s potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.
Ideally, you and/or your team members have direct experience in managing crossfit gym businesses. If so, highlight this experience and expertise. But, also highlight any experience that you think will help your business succeed.
If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a crossfit gym or successfully running a crossfit gym in a large corporate setting.
Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.
Projected Sales, Gross Profit & Net Income
Income Statement
An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.
In developing your income statement, you need to devise assumptions. For example, will you serve 40 customers per day, and/or offer special crossfit gym sales online? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.
5 Year Annual Income Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | |
|---|---|---|---|---|---|
| Revenues | |||||
| Revenues | $220,959 | $241,644 | $264,267 | $289,007 | $316,063 |
| Total Revenues | $220,959 | $241,644 | $264,267 | $289,007 | $316,063 |
| Direct Costs | |||||
| Direct Costs | $12,181 | $12,675 | $13,190 | $13,726 | $14,283 |
| Total Direct Costs | $12,181 | $12,675 | $13,190 | $13,726 | $14,283 |
| GROSS PROFIT | $208,777 | $228,968 | $251,076 | $275,281 | $301,779 |
| GROSS PROFIT % | 94.5% | 94.8% | 95% | 95.3% | 95.5% |
| Other Expenses | |||||
| Salaries | $58,251 | $60,018 | $61,839 | $63,715 | $65,648 |
| Marketing Expenses | $0 | $0 | $0 | $0 | $0 |
| Rent/Utility Expenses | $0 | $0 | $0 | $0 | $0 |
| Other Expenses | $12,135 | $12,503 | $12,883 | $13,274 | $13,676 |
| Total Other Expenses | $70,386 | $72,522 | $74,722 | $76,989 | $79,325 |
| EBITDA | $138,390 | $156,446 | $176,353 | $198,291 | $222,454 |
| Depreciation | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
| Amortization | $0 | $0 | $0 | $0 | $0 |
| EBIT | $132,390 | $150,446 | $170,353 | $192,291 | $216,454 |
| Interest Expense | $8,000 | $8,000 | $8,000 | $8,000 | $8,000 |
| PRETAX INCOME | $124,390 | $142,446 | $162,353 | $184,291 | $208,454 |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 |
| Taxable Income | $124,390 | $142,446 | $162,353 | $184,291 | $208,454 |
| Income Tax Expense | $43,536 | $49,856 | $56,823 | $64,501 | $72,959 |
| NET INCOME | $80,854 | $92,590 | $105,529 | $119,789 | $135,495 |
| Net Profit Margin (%) | 36.6% | 38.3% | 39.9% | 41.4% | 42.9% |
Balance Sheets
Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your crossfit gym, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.
5 Year Annual Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | |
|---|---|---|---|---|---|
| ASSETS | |||||
| Cash | $124,780 | $221,810 | $331,620 | $456,239 | $515,721 |
| Other Current Assets | $19,035 | $20,817 | $22,766 | $24,083 | $26,338 |
| Total Current Assets | $143,815 | $242,627 | $354,386 | $480,323 | $542,059 |
| Intangible Assets | $0 | $0 | $0 | $0 | $0 |
| Acc Amortization | $0 | $0 | $0 | $0 | $0 |
| Net Intangibles | $0 | $0 | $0 | $0 | $0 |
| Fixed Assets | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 |
| Accum Depreciation | $6,000 | $12,000 | $18,000 | $24,000 | $30,000 |
| Net fixed assets | $24,000 | $18,000 | $12,000 | $6,000 | $0 |
| Preliminary Exp | $0 | $0 | $0 | $0 | $0 |
| TOTAL ASSETS | $167,815 | $260,627 | $366,386 | $486,323 | $542,059 |
| LIABILITIES & EQUITY | |||||
| Current Liabilities | $6,961 | $7,183 | $7,412 | $7,559 | $7,800 |
| Debt outstanding | $80,000 | $80,000 | $80,000 | $80,000 | $0 |
| Total Liabilities | $86,961 | $87,183 | $87,412 | $87,559 | $7,800 |
| Share Capital | $0 | $0 | $0 | $0 | $0 |
| Retained earnings | $80,854 | $173,444 | $278,974 | $398,763 | $534,259 |
| Total Equity | $80,854 | $173,444 | $278,974 | $398,763 | $534,259 |
| TOTAL LIABILITIES & EQUITY | $167,815 | $260,627 | $366,386 | $486,323 | $542,059 |
Cash Flow Statement
Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit, but run out of money and go bankrupt.
When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a crossfit gym:
5 Year Annual Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | $80,854 | $92,590 | $105,529 | $119,789 | $135,495 |
| Change in Working Capital | ($12,073) | ($1,560) | ($1,719) | ($1,170) | ($2,013) |
| Plus Depreciation | $6,000 | $6,000 | $6,000 | $6,000 | $6,000 |
| Plus Amortization | $0 | $0 | $0 | $0 | $0 |
| Net Cash Flow from Operations | $74,780 | $97,029 | $109,810 | $124,619 | $139,481 |
| CASH FLOW FROM INVESTMENTS | |||||
| Fixed Assets | ($30,000) | $0 | $0 | $0 | $0 |
| Intangible Assets | $0 | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($30,000) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from Equity | $0 | $0 | $0 | $0 | $0 |
| Cash from Debt financing | $80,000 | $0 | $0 | $0 | ($80,000) |
| Net Cash Flow from Financing | $80,000 | $0 | $0 | $0 | ($80,000) |
| Net Cash Flow | $124,780 | $97,029 | $109,810 | $124,619 | $59,481 |
| Cash at Beginning of Period | $0 | $124,780 | $221,810 | $331,620 | $456,239 |
| $124,780 | $221,810 | $331,620 | $456,239 | $515,721 |
Attach your full financial projections in the appendix of your plan, along with any supporting documents that make your plan more compelling. For example, you might include your gym location lease or a list of friends and associates who are already lined up to join your crossfit gym.
Writing a business plan for your crossfit gym is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the crossfit gym industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful crossfit gym.
Don’t you wish there was a faster, easier way to finish your Crossfit Gym business plan?
With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!
Click here to finish your Crossfit Gym business plan today.
Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.
Click here to see how a Growthink business plan writer can create your business plan for you.
