The VoicE Q4
5 Reasons
You Need A
Business Plan
We all know that business plans
are important, and you likely fully intend
to create one… someday. Consider this
article as a friendly reminder to prioritize
working on your business plan for your
fitness center as soon as possible. And if
you’re thinking, “I already opened my fitness
club so I don’t need a business plan,” think
again. The numbers prove that business
success is judged in the long term.
The U.S. Small Business Administration
reports that nearly 80% of new businesses
survive the first year, but by the five-year
mark that number is down to half. In 10
years? Just one-third of businesses are
still operating.
With those stats in mind, here are five more
reasons you need to create a business plan
for your new fitness business (or the one
you’re already running).
1.) To Become A Fitness Market Expert
While understanding your own business is
critical, you also have to think big picture.
Through your research for the business
plan, you should gain a high-level view of
the fitness industry as a whole. The more
expertise you gain, the clearer an under-
standing you will have of your fitness center’s
place in the broader market, and how best
to operate within it to find success. Further,
you’ll be better equipped to forecast market
downturns or identify potential industry
disruptors, enabling you to adapt your
business with a changing market.
2.) To Unify Your Team’s Mission
A well-researched business plan gives you
the opportunity to define your business
mission, the overall goal or passion that
inspired you to start your business in the
first place. What do you hope to accomplish?
What need are you fulfilling? If your business
is successful, what demographic, community,
or customer group is benefiting? By defining
your business mission, you can rally your
team around this central goal. You’ll find
your staff much more motivated than a
team simply working for their next paycheck.
3.) To Set Benchmarks For
Measurable Success
Success is an exceedingly vague term
when it’s undefined. How do you define
success for your business after one month?
One year? Ten years? Through your research
on the fitness market, you should be able
to create clear benchmarks you want to
achieve as your fitness center develops.
Create quarterly goals for the first year at a
minimum and roadmap overarching goals
throughout the first five years. You should
define benchmark goals for both your busi-
ness as a whole and your management
staff. By clearly defining what you expect
your managers to achieve, you give them
the best starting point to hit those goals.
4.) To Create Professional
Relationships
You need to get your business plan in front
of professional eyes. That means sharing it
with lawyers, accountants, peers in the in-
dustry, and any applicable consultants. By
sharing your business plan with profession-
als, you boost your business’s viability. Why?
Because they know the familiar pitfalls, prac-
tices that lead to success, and ways that
your inexperience can create unnecessary
problems for your new business. Best of
all, through these interactions you educate
yourself. Some people decide to expand
into new businesses after starting their first,
and this beginning experience can prove to
be the best classroom to learn and grow for
future success.
5.) To Raise Funding
No one is going to invest in a business they
don’t understand. Not a bank, a venture cap-
ital firm, or even your mom -- well, maybe
your mom but you shouldn’t ask her to do
so. A well-crafted business plan should be
simple to read, well organized, and easy to
understand. This document takes your fu-
ture fitness business from a vague concept
to a concrete idea. Even if your fitness club is
already operating, a business plan can help
you secure fresh funding to take your busi-
ness to the next level.
Every business plan is improved by fully
understanding the community and the clients
your business is built to serve. Download
our free buyer persona templates to define
who your ideal members are and how best
to attract their business.
Kevin Talley is the Digital Content
Coordinator for Club OS.
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