Introduction

Almost everyone wishes they could be more fit, trim, and athletic, yet very few of us feel confident in our ability to achieve those goals. As such, the personal fitness space is potentially quite lucrative for entrepreneurs. But simply having a passion for wellness is just the start. To ensure long-term business viability, you’ll need to adopt a strategic and intentional approach.

A good first step is creating a business plan. When created with precision and care, a business plan can point the way forward for longevity and impact. In this post, we’ll outline some of the core components of a successful business plan.

What is a Business Plan?

First, it may be helpful to define the term. When we talk about business plans, exactly what do we mean?

A business plan is a big-picture document, providing a comprehensive assessment of your intended goals and objectives, as well as the strategies you’ll execute to meet those goals. Your business plan may provide summaries of your products and services, as well as the sales and marketing channels you’ll use to promote those products and services. A business plan can also denote financial forecasts and indicate your operational structure.

Business plans are useful because they provide you and your business partners with a road map, keeping you moving toward shared goals. Additionally, potential lenders and investors may ask to see a business plan before they provide you with any funding.

What are the Core Components of a Good Business Plan?

Different businesses will have different plans, but generally speaking, there are a few components that you’ll always want to include. Here are some of the core ingredients to keep in mind as you prepare a business plan for your fitness startup.

An Executive Summary

Start with a paragraph or two that outlines your business, serving as a kind of “elevator pitch” or quick introduction. Your executive summary might include an overview of the business, a mission statement, and a quick list of your main objectives.

A Description of Your Business

It ‘s also important to include a slightly more extended description of your business, going into detail about your product and service offerings. You might also speak to your company’s history, or provide information about your legal structure and state of registry; for instance, you might confirm your intention of forming an LLC in New York.

Market Analysis

Another key component of your business plan is a market analysis. Include some research about the fitness market you’re hoping to enter, including some notes about client demand and demographics as well as primary competitors.

Business Organization

Your business plan should also include a rundown of how your business is structured and organized, including a description of your management team. If you have an Operating Agreement in place, you can glean information from that, particularly with regard to:

• How you and your business partners allocate duties and responsibilities.
• How you and your partners split profits.
• How you’ll handle a business partner who wishes to exit the company.
• How you’ll bring any new partners into the fold.

Such information can be particularly relevant to potential investors who want some assurances that your business is being run in a consistent and strategic way.

Marketing and Sales Channels

Not only should your business plan denote the specific products and services you’ll offer, but it should also include some information about how you’ll actually connect with and convert customers.

Some specifics to include:

• The channels you’ll use to promote your business.
• How much you’ll charge, including pricing structures/tiers for things like personalized fitness coaching.

A Summary of Your Operational Plan

Describe a day in the life of your business. Use your business plan to chronicle the specifics of your daily operations, including your location, equipment, and processes. Again, this kind of detail can be reassuring to potential investors or business partners who want to see some evidence that you’re thinking clearly and strategically.

Financial Projections

Your business plan should also assess the financial realities facing your business, and point the way forward toward a break-even point and eventually sustained profitability. Offer information such as income statements, cash flow statements, and balance sheets.

Funding Requests

Are you seeking external funding for your business, whether from a third-party investor or simply a business loan/line of credit? If so, your business plan should indicate:

• How much money you’re trying to secure.
• What you’ll use that funding for.
• The terms for repayment.

What Not to Include in a Business Plan

As you establish a road map for your fitness startup, it’s important to include all the right ingredients in your business plan… but also to avoid certain things. The following items can all distract from the cumulative impact of your business plan, and are best omitted.

• Excessive technical language or industry jargon.
• Financial projections that are overly optimistic or improbable.
• Personal information or anecdotes.
• Confidential information, such as trade secrets.
• Disparaging comments about your competitors.
• Goals that are vague or not measurable.
• Outdated information.
• Claims that cannot be substantiated (a big concern in the personal health space).

Positioning Your Fitness Startup for Lasting Success

As you set out for success in a personal fitness startup, it’s essential to create a business plan that maps out the path before you. Follow these tips to create a meaningful business plan, but also remember to review your plan regularly and to revise as needed!

Author Bio

Amanda E. Clark is a contributing writer to LLC University. She has appeared as a subject matter expert on panels about content and social media marketing, as well as entrepreneurship.