Planning on opening a gymnastics club?
Millions of kids and teens participate in gymnastics every year in the U.S. In 2021, there were close to 4.3 million school-aged gymnasts. Add in the little tumblers, and that number is even higher.
If you are passionate about helping young people explore their talent on the uneven bars, the mat, and the balance beam, you’re almost certain to run a profitable gym. To be a sure success, however, you need one more thing: a gymnastics business plan.
Your business plan is your roadmap that takes you from startup to stardom. It lays out everything from your marketing strategy to your operational plan.
If you’ve never created a business plan before, or you just need a refresher, read on. This article covers what to include in your gymnastics business plan and provides examples for inspiration.
What Are the Key Aspects of a Gymnastics Business Plan?
A business plan details how you’ll build your business and ensure its success.
It’s an internal document that you and your team will use to guide your actions and business decisions. But you might also share it with external stakeholders, such as:
- Lenders
- Investors
- Potential partners
Your plan reveals the why, what, and how behind your gym. If it’s a strong plan, stakeholders will be more likely to back your business, either financially or with other types of support.
So, what should it include?
Here are the key sections you’ll cover in your plan:
Executive Summary
This section includes an overview of your plan. It also covers your mission statement and why you’re starting this business.
Business Description
Here’s where you outline the nuts and bolts of your gymnastic business.
- Business goals: Do you want to train kids with Olympic dreams? Is the plan to open up multiple gyms in the region? Are you a small studio specializing in making gymnastics fun for kids?
- Services: What gymnastics classes will you offer? Will you offer related classes, such as dance or acro?
- Target customer: What age? What skill level?
You can also list any experience your team has. For instance, gymnastics training certifications or awards.
Market Analysis
This section details the pain points of your primary customer.
For a gymnastics business, you’re thinking about the parents paying for your classes, as well as the kids who want to learn how to tumble.
How will your business fulfill their needs? Is there a market in your area for the type of classes you plan to offer?
Marketing and Sales Plan
Detail your marketing strategies. What channels will you use to promote your gym? Will you have a website? What social media sites will you use? What about ads in local magazines?
You should also explain your pricing plan. Your prices should be in line with your competitors’ prices. They should also account for the value your gym offers. For instance, if you have former gymnastics champions teaching your classes, you’d charge a higher price than a gym without experienced coaches.
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Organizational Plan
Here, you’ll list your legal structure. Are you an LLC? A corporation? A partnership?
You’ll also detail your management structure. List your leadership team and their relevant qualifications.
Operating Plan
How do you plan to run your day-to-day operations? Include those details in this section.
For your gymnastics business plan, answer the following:
- How many teachers will you hire?
- When will they work?
- Who will manage them?
- What other roles will you need, such as administration, maintenance, and marketing?
- What tools will you use to manage class sign-ups, scheduling, and billing?
Financial Plan
Your financial plan is critical. This is where you explain your costs for getting your business off the ground. You’ll explain what you need to be profitable now and in the future.
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The Importance of Financial Planning for a Gymnastics Business
Financial planning is where you figure out how to turn a profit.
The reality is that being an excellent gymnastics coach doesn’t mean you know how to make your studio profitable. And if you can’t make a profit, you can’t stay in business.
But with good planning, you can prepare for the ups and downs of running a business. Draw upon resources for business owners, including financial experts and management software, to help you stay on track financially.
Here are five financial planning steps you should include in your business plan.
Startup Costs
How much will it cost you to open your gym? Include rent, new equipment purchases, labor, and marketing.
Operational Costs
What are your monthly expenses? Add up fixed and variable costs.
When you know the monthly costs to run your gym, you can find your break-even point. That’s how much monthly revenue you need to generate to cover expenses. Anything above that point is profit.
Funding Options
How will you fund your business until it’s profitable? You can take out a business loan.
The Small Business Administration helps small businesses access the funding they need, making it a good place to start. You can also check crowdfunding sites like EquityNet or Fundable.
There are also traditional investors, grants, and any extra cash you may have in your personal savings.
Emergency Savings
Almost half of small businesses reported cash flow issues last year. In this industry, market fluctuations are the norm.
Summer slowdowns, changing trends, new competition—all of these factors can lead to fewer gymnastics students signing up for your classes. This means less revenue without lower costs.
How will you manage until business picks up again? You need an emergency fund.
Decide how much your gym needs to put away for a rainy day. Outline your plan to save that amount and where you’ll store it.
For instance, you might keep this money in a high-interest savings account so you can access it if you need it. At the same time, it can earn interest and grow.
Growth Milestones
What are your plans for growth? Use your business plan to outline where you expect your company to be after one year, three years, and even five years.
These growth milestones will help your business stay on track financially. It also helps you focus on the bigger picture instead of getting bogged down with day-to-day financial matters.
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Operational Strategies and Management for a Gymnastics Business Plan
Your operational and management strategies are two other business plan sections worth further exploration.
These sections define how you’ll function. They detail what tools and solutions you’ll use to ensure your business runs well so you have happy employees, stellar gymnastics classes, and a gym your students love coming to.
Here are four ways you can optimize your operational and management strategy.
Define the Scope of Each Position.
Your coaches, support personnel, and other team members need a list of responsibilities and performance goals. Otherwise, you’ll run into issues with inconsistent processes and people not knowing how to do their job well.
Set Up Clear Communication Channels and Processes.
Everyone should know who to contact if they have questions or concerns. There should be a clear process for HR issues, coaching-related questions, and business-related questions. Also, create an online document system so your team can access the information they need anytime.
Offer Ongoing Training.
Consider supporting your staff in certifying for safety and gymnastics instruction. USA Gymnastics offers certification courses for competitive coaches. There are also online gymnastics coaching classes.
You can count on a better student experience and a more professional team by ensuring your coaching staff is well-trained.
Streamline Management and Billing with Software.
With today’s technology, you can streamline many administrative tasks.
Scheduling classes, sending emails, billing for classes—gymnastics management software can keep all these aspects of management under one system. It can also automate mundane tasks, helping your staff save time and minimizing errors. So, you’ll want to include plans for using software in your operational plan.
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Gymnastics Business Plan Examples to Reference
Still not sure what your gymnastics business plan should look like? Here are two examples to help inspire you.
Example Business Plan: Jenny’s Gymnastics
Executive Summary: Our mission is to teach kids the fundamentals and high-level gymnastics skills so they can pursue their dreams.
Business Description: Jenny’s Gymnastics aims to inspire kids of all ages to strive for their best in the sport. We’re staffed by certified coaches and offer gymnastics classes to students aged 6 to 18.
Market Analysis: Jenny’s Gymnastics serves the Raleigh-Durham area, where approximately 5,000 to 6,000 gymnasts participate in clubs yearly. Our gym focuses on classes for serious students. We also have some of the most experienced coaches in the area.
Marketing and Sales Plan: We have an active presence on Instagram and Facebook. Over half of the parents who enroll their kids use one of these platforms. We also have a monthly advertisement in the Raleigh Times newspaper.
Operating Plan: Jenny’s Gymnastics has a team of seven highly trained coaches. Each coach teaches between two and three classes, allowing us to teach over 400 students each week. We use management software to streamline class management, billing, and communications.
Financial Plan: With 120 class enrollments per week, Jenny’s Gymnastics is able to generate a profit. Our goal is to reach at least 150 enrollments per week after six months. By 2030, we plan to have an average enrollment of 300 students weekly.
Example Business Plan: Tumbling Tots
Executive Summary: Tumbling Tots is dedicated to helping toddlers and pre-school-aged children learn the joy of gymnastics through fun, engaging classes.
Business Description: Tumbling Tots offers beginner gymnastics classes to young children up to age 6. By focusing on the younger demographic, we can fill a gap in our region, where most gyms target older students.
Marketing and Sales Plan: We’re planning an aggressive online marketing campaign with a website, content marketing to educate parents on the benefits of starting gymnastics lessons early, and social media.
Organizational Structure: We’re an LLC headed by Kennedy Star, a former national gymnastics champion. Everyone on our leadership team has at least five years of management experience. We hope to use that knowledge to expand quickly, with the goal of opening a second location in quarter four of next year.
Top Tips for Creating a Gymnastics Business Plan
Ready to start building a plan for your gymnastics business? Here are three tips to help you put your plan into action:
Scout Out Available Locations.
If you don’t already have a space, start looking. Check out leasing costs, too. That way, you can get an idea of how much renting a studio for your classes will cost.
Research Your Market.
Explore other gyms in the area. What classes do they offer? What are their prices? How experienced are their coaches? And how can you set your gymnastics business apart?
Choose a Gymnastics Management Software.
This tool will serve as the hub for your operations. Start the process of deciding on software now. That way, you’ll have all the tools in place for everything from class registrations to payments.
