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СrossFit business plan for starting your own CrossFit gym
Do you want to start a CrossFit? Well, it is undoubtedly the right time to do so, as the need to remain fit and healthy is now more than ever. Nowadays, many people want to reshape their bodies that have deformed due to junk food consumption and lazy life pattern during coronavirus lockdown.
CrossFit is a high-intensity interval training that can be taken regularly to meet several purposes like weight loss, acquiring an athletic figure, a stronger body, agility, and fitness.
To start a CrossFit, you first need to create a business plan for a CrossFit gym. If you don’t know how to open a CrossFit gym or how to create an accurate business plan, you can take help from here. In this sample, we’re providing the business plan of a successful CrossFit startup, Athletics City.
Executive Summary
2.1 The Business
Athletics City will be a registered and licensed CrossFit gym based in Florida. The business will provide CrossFit workout sessions and training for adults as well as for kids. The facility will include a barbell club, cardio room, gymnastic room, and space for metabolic activities like jumping, rowing, biking, etc.
2.2 Management of СrossFit Gym
A CrossFit gym cannot be run without efficient management. After setting up a CrossFit gym you have to take care of many things such as maintenance of machines, business’ operations, delivery of training sessions, finances, etc.
In this CrossFit gym startup plan, we’ll be listing all the details about how to start a CrossFit business and manage it efficiently.
2.3 Customers of СrossFit Gym
The major customers of CrossFit can be categorized into three groups, youngsters, children, and professional athletes. We’ll take separate measures to ensures that the needs of each of these categories are taken care of.
2.4 Business Target
Our major targets are:
- To achieve a repeat purchase rate of 75% by the end of the second year
- To maintain a CSAT score of above 90% throughout our service years
- To earn a net profit margin of $31k per month by the end of the first three years
Company Summary
3.1 Company Owner
Anna Wilde will be the owner of Athletics City. Anna holds a master’s degree in Business Administration. During her academic years, she remained a prominent participant in several internship programs. Moreover, she has also 2 years of working experience as a Business Operations Manager in an engineering firm.
3.2 Why the CrossFit gym is being started
Anna is starting a CrossFit business because it’s her passion. She always wanted to run her own business. Due to her interest in fitness and sports, she chose CrossFit business to invest her energy and skill.
3.3 How the CrossFit gym will be started
Step1: Plan your business
To start a CrossFit, the first step would be to create a CrossFit business model. Your model should include all the startup details, services, market analysis, advertisement strategy as well as financial planning. In case, you are not an expert at making a business plan, you can take help from this CrossFit business plan example. In this CrossFit business plan sample we’re providing a business plan made by Anna for her startup.
Step2: Establish Your Presence
The second step is to acquire the licenses and permits needed to build a CrossFit. At the same time, you have to set up the physical basis and define your company’s values and objectives.
Anna decided to start her CrossFit in a building that was previously used as a restaurant. She hired a co-manager from the very beginning to have help in recruitment and procurement processes.
Step3: Reach Your Customers
Note
Promotion of services is really important because your customers can never realize your value and competitive aspects without it. Anna decided to advertise her startup through various channels to reach a wider audience.
Step5: Invest in Website Development
Understanding the importance of a strong web presence, Anna also hired an expert web developer to mark the online presence of her business.
The spending Anna had to do throughout the startup phase is provided below.
| Start-up Expenses | |
| Legal | $256,000 |
| Consultants | $0 |
| Insurance | $36,000 |
| Rent | $32,000 |
| Research and Development | $28,000 |
| Expensed Equipment | $60,000 |
| Signs | $4,000 |
| TOTAL START-UP EXPENSES | $416,000 |
| Start-up Assets | $325,000 |
| Cash Required | $359,000 |
| Start-up Inventory | $53,000 |
| Other Current Assets | $217,000 |
| Long-term Assets | $235,000 |
| TOTAL ASSETS | $1,189,000 |
| Total Requirements | $1,605,000 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $416,000 |
| Start-up Assets to Fund | $1,189,000 |
| TOTAL FUNDING REQUIRED | $1,605,000 |
| Assets | |
| Non-cash Assets from Start-up | $1,567,000 |
| Cash Requirements from Start-up | $380,000 |
| Additional Cash Raised | $57,000 |
| Cash Balance on Starting Date | $35,000 |
| TOTAL ASSETS | $2,039,000 |
| Liabilities and Capital | |
| Liabilities | $30,000 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $49,000 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $79,000 |
| Capital | |
| Planned Investment | $1,605,000 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,605,000 |
| Loss at Start-up (Start-up Expenses) | $355,000 |
| TOTAL CAPITAL | $1,960,000 |
| TOTAL CAPITAL AND LIABILITIES | $2,039,000 |
| Total Funding | $1,605,000 |
Services
Owning your own CrossFit gym provides you the liberty to introduce any type of services you want. In this CrossFit business plan template we’re enlisting the services that Athletics City would be offering to its customers.
- CrossFit Training: We will provide training sessions of CrossFit that will include gymnastics, cardio, weight training, and metabolic training. The difficulty level of these high-intensity interval training sessions will vary with the workout background of customers. Our offerings will include
- Elite CrossFit Workout for Professional Workout Athletes
- Socialite CrossFit Training (Less Hard Than Elite)
- Beginners CrossFit Training for Adults
- Casual/ Beginners CrossFit Training for Kids
- Barbell Club: At us, our customers will also be able to do just weightlifting and powerlifting if they don’t want proper CrossFit training.
- Gymnastics: We will be offering adequate space with modern gymnastics equipment.
- Metabolic Sports Activities: We will offer a large space and specialized equipment for the following sports activities:
- Jumping
- Cycling
- Rowing
- Biking
- Running
- CrossFit Diet: The benefits of CrossFit can be availed to the fullest only when one fulfills the dietary requirements for it too. We’ll offer a specialized diet such as nutritional meat, vegetables, nuts, seeds, and fruits.
- First Aid: We also provide first aid services to handle injuries and mishaps during the workout.
Marketing Analysis of СrossFit Gym
Business plan for investors
There are many things you need to consider before starting a CrossFit gym. You have to analyze market trends for the business, the ideal time and location to launch your business, the interests of your customers as well as the prices you can set given the economic situation in your area and competitors’ rates.
Through this blog on how to write a business plan for a CrossFit gym you can get an idea of how to achieve all of these purposes by doing marketing analysis.
5.1 Market Trends
CrossFit is getting popular day by day due to the heroic strength and power it provides. This newer trend of CrossFit gym was introduced in California in 2000. Since then the increasing popularity of this sports activity also increased the number of CrossFit gyms to 15,500 in 2018.
The business goes quite well. In 2020, however, CrossFit gyms saw a decline in customer rate and profits due to the recession caused by the coronavirus. Now, as the economy and health conditions are flourishing again, the CrossFit industry is expected to grow more in the coming years.
5.2 Marketing Segmentation
Before opening a CrossFit gym it is essential to know who will be your customers. Mentioning the groups of your target customers in your CrossFit business plan model will enable you to provide a comfortable and appropriate experience for all.
Athletics City identified the following three groups of people as its potential customers:
5.2.1 Youngsters/ Adults: Who has the utmost desire to be strong and fit? Of course, the young and adults. Our primary customers will be people of age 18 and above. This group wants to strengthen their body to look sharp as well as to remain fit their entire life. Thus, we expect them to avail themselves of our regular CrossFit training sessions and our diet plan.
5.2.2 Professional Athletes: The second group of our target customers will be the sportspersons. People who are already involved in some sports activities prefer to take regular CrossFit sessions to maintain their stamina and agility.
5.2.3 Kids & Teens: Our third category will comprise children and teens. Kids will basically be brought to our site by their parents who want them to be strong and fit from the very initial phase of their life. Moreover, parents who will come to us for CrossFit training are also expected to bring along their kids so that they can be engaged. To facilitate this group, we’ll have special coaches to provide casual training to kids.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Youngsters/ Adults | 52% | 52,000 | 55,000 | 56,000 | 57,000 | 58,000 | 10.00% |
| Professional Athletes | 35% | 40,000 | 41,000 | 42,000 | 43,000 | 44,000 | 10.00% |
| Kids & Teens | 13% | 9,000 | 12,000 | 14,000 | 15,000 | 16,000 | 11.00% |
| Total | 100% | 101,000 | 108,000 | 112,000 | 115,000 | 118,000 | 10% |
5.3 Business Target
Our business targets are:
- To earn a net profit of $31k per month by the end of the three years of our launch
- To obtain a repeat purchase rate of 75% by the end of the second year
- To achieve and maintain a CSAT score of above 90% throughout our service years
- To achieve an NPS (Net Promoter Score) of above 60 by the end of the first year
5.4 Product Pricing
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Our prices are slightly more than our competitors. It is because we are employing level 3 coaches to provide elite training. Moreover, we’ll ensure adherence to strict protocols to provide a safe, comfortable, and friendly environment for all women, men, and kids.
Despite our higher prices, we expect to get more customers than our competitors because of our competitive advantages and our excellent sales strategy.
Marketing Strategy
No matter how great services you are offering, you will never gain customers unless you have an excellent CrossFit marketing strategy. In your business proposal for a crossfit business plan, you should study target customers and market trends to identify your competitive advantages and to develop an effective advertising plan.
6.1 Competitive Analysis
The competitive aspects of Athletics City are:
- Our CrossFit trainers are highly skilled and experienced. Through Level 3 certified coaches we’ll be able to provide the highest quality service.
- We have strict and specified rules and protocols. So that all men, women, and children get a comfortable experience.
- We are the largest CrossFit gym in the whole of Florida – and the only one that is providing metabolic sports activities.
- Only we in the whole town are offering CrossFit training for kids.
6.2 Sales Strategy
To capture the attention of our target customers
- We’ll advertise our startup through Google Local ads service and local newspapers
- We’ll ensure a strong web and social media presence
- We’ll offer a 50% discount on our services for the first two months of our launch
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| CrossFit Training | 47,000 | 49,820 | 52,809 |
| Barbell Club/ Gymnastics | 37,000 | 39,220 | 41,573 |
| Metabolic Sports Activities | 33,000 | 34,980 | 37,079 |
| CrossFit Diet | 12,000 | 12,720 | 13,483 |
| TOTAL UNIT SALES | 129,000 | 136,740 | 144,944 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| CrossFit Training | $65.00 | $75.40 | $87.46 |
| Barbell Club/ Gymnastics | $48.00 | $55.68 | $64.59 |
| Metabolic Sports Activities | $50.00 | $58.00 | $67.28 |
| CrossFit Diet | $37.00 | $42.92 | $49.79 |
| Sales | |||
| CrossFit Training | $3,055,000.00 | $3,756,428.00 | $4,618,903.87 |
| Barbell Club/ Gymnastics | $1,776,000.00 | $2,183,769.60 | $2,685,163.10 |
| Metabolic Sports Activities | $1,650,000.00 | $2,028,840.00 | $2,494,661.66 |
| CrossFit Diet | $444,000.00 | $545,942.40 | $671,290.78 |
| TOTAL SALES | $6,925,000.00 | $8,514,980.00 | $10,470,019.41 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| CrossFit Training | $62.00 | $70.00 | $81.00 |
| Barbell Club/ Gymnastics | $45.00 | $51.00 | $59.00 |
| Metabolic Sports Activities | $48.00 | $55.00 | $62.00 |
| CrossFit Diet | $35.00 | $39.00 | $45.00 |
| Direct Cost of Sales | |||
| CrossFit Training | $2,914,000.00 | $3,487,400.00 | $4,277,545.20 |
| Barbell Club/ Gymnastics | $1,665,000.00 | $2,000,220.00 | $2,452,818.80 |
| Metabolic Sports Activities | $1,584,000.00 | $1,923,900.00 | $2,298,885.60 |
| CrossFit Diet | $420,000.00 | $496,080.00 | $606,744.00 |
| Subtotal Direct Cost of Sales | $6,583,000.00 | $7,907,600.00 | $9,635,993.60 |
Personnel plan
Whether you are starting a CrossFit gym from scratch or are purchasing a CrossFit gym franchise, you’ll need to hire skillful employees. While writing a business plan for a CrossFit gym, you should list the employees you need, their job descriptions, and their expected salaries.
7.1 Company Staff
Anna will be the CEO herself. However, she’ll hire the following people.
- 1 Co-Manager to monitor business operations
- 1 Accountant to maintain financial records
- 1 Technician to maintain the machinery
- 1 Web Developer to manage the online presence
- 5 CrossFit Trainers/ Coaches
- 2 General Assistants
- 1 Sales Executive
- 1 Cook
- 2 Cleaners
- 1 Receptionist
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Co-Manager | $14,000 | $15,400 | $16,940 |
| Accountant | $9,000 | $9,900 | $10,890 |
| Technician | $8,000 | $8,800 | $9,680 |
| Web Developer | $8,000 | $8,800 | $9,680 |
| CrossFit Trainers/ Coaches | $53,000 | $58,300 | $64,130 |
| General Assistants | $17,000 | $18,700 | $20,570 |
| Cook | $9,000 | $9,900 | $10,890 |
| Cleaners | $17,000 | $18,700 | $20,570 |
| Sales Executive | $8,000 | $8,800 | $9,680 |
| Receptionist | $7,000 | $7,700 | $8,470 |
| Total Salaries | $150,000 | $165,000 | $181,500 |
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Financial Plan
A financial plan is one of the most decisive components of a crossfit business plan. It analyzes all the investments group business plan, expenses, sales, and cash flows to determine a safe financial trajectory for a business. In case of starting a CrossFit gym, you’ll have to procure expensed equipment and machinery and the costs of maintaining the facility will also be high. Therefore, you must ensure that the highest level of precision is achieved as you created your financial plan. It’s only through efficient financial planning that you’ll be able to earn the desired profits and avoid unwanted losses.
Anna created CrossFit business plan herself because she had the knowledge and experience for doing so accurately. The financial plan developed by her is provided here for everyone who may want to benefit.
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.09% | 8.14% | 8.21% |
| Long-term Interest Rate | 8.32% | 8.39% | 8.42% |
| Tax Rate | 23.90% | 24.60% | 25.80% |
| Other | 0 | 0 | 0 |
8.2 Brake-even Analysis
| Brake-Even Analysis | |
| Monthly Units Break-even | 5348 |
| Monthly Revenue Break-even | $134,800 |
| Assumptions: | |
| Average Per-Unit Revenue | $238.00 |
| Average Per-Unit Variable Cost | $0.68 |
| Estimated Monthly Fixed Cost | $162,300 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $6,925,000 | $8,514,980 | $10,470,019 |
| Direct Cost of Sales | $6,583,000 | $7,907,600 | $9,635,994 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $6,583,000 | $7,907,600 | $9,635,994 |
| Gross Margin | $342,000 | $607,380 | $834,026 |
| Gross Margin % | 4.94% | 7.13% | 7.97% |
| Expenses | |||
| Payroll | $150,000 | $165,000 | $181,500 |
| Sales and Marketing and Other Expenses | $129,000 | $130,000 | $131,000 |
| Depreciation | $2,510 | $2,300 | $2,400 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $3,100 | $3,140 | $3,200 |
| Insurance | $2,000 | $2,100 | $2,200 |
| Rent | $3,600 | $3,780 | $3,860 |
| Payroll Taxes | $36,000 | $38,000 | $41,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $326,210 | $344,320 | $365,160 |
| Profit Before Interest and Taxes | $15,790 | $263,060 | $468,866 |
| EBITDA | $15,790 | $263,060 | $468,866 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $3,158 | $52,612 | $93,773 |
| Net Profit | $12,632 | $210,448 | $375,093 |
| Net Profit/Sales | 0.18% | 2.47% | 3.58% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $58,000 | $62,640 | $67,651 |
| Cash from Receivables | $17,000 | $18,360 | $19,829 |
| SUBTOTAL CASH FROM OPERATIONS | $75,000 | $81,750 | $88,290 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $76,000 | $82,000 | $89,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $38,000 | $40,000 | $41,000 |
| Bill Payments | $22,000 | $24,000 | $26,000 |
| SUBTOTAL SPENT ON OPERATIONS | $60,000 | $64,000 | $67,000 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $61,000 | $65,880 | $71,150 |
| Net Cash Flow | $14,000 | $15,000 | $17,000 |
| Cash Balance | $27,900 | $28,400 | $30,020 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $290,000 | $324,800 | $357,280 |
| Accounts Receivable | $26,000 | $29,120 | $32,731 |
| Inventory | $4,000 | $4,480 | $4,900 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $301,000 | $337,120 | $378,923 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $19,000 | $21,280 | $23,940 |
| TOTAL LONG-TERM ASSETS | $23,000 | $25,760 | $28,980 |
| TOTAL ASSETS | $297,000 | $332,640 | $374,220 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $20,000 | $22,400 | $25,178 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $15,000 | $16,800 | $18,883 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $14,499 | $16,239 | $18,253 |
| Paid-in Capital | $32,000 | $32,000 | $33,000 |
| Retained Earnings | $58,000 | $63,220 | $69,542 |
| Earnings | $201,000 | $219,090 | $240,999 |
| TOTAL CAPITAL | $276,000 | $300,840 | $330,924 |
| TOTAL LIABILITIES AND CAPITAL | $290,499 | $332,640 | $374,220 |
| Net Worth | $273,000 | $297,570 | $327,327 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.02% | 7.78% | 8.62% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.19% | 10.18% | 11.28% | 9.80% |
| Inventory | 5.50% | 6.09% | 6.75% | 9.90% |
| Other Current Assets | 2.09% | 2.32% | 2.57% | 2.40% |
| Total Current Assets | 149.20% | 151.00% | 152.00% | 158.00% |
| Long-term Assets | 11.87% | 11,89% | 11.93% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.63% | 4.67% | 4.71% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.39% | 7.45% | 7.52% | 7.38% |
| NET WORTH | 100.29% | 101.09% | 102.02% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.76% | 97.32% | 100.04% | 99.00% |
| Selling, General & Administrative Expenses | 93.72% | 96.25% | 98.95% | 97.80% |
| Advertising Expenses | 1.61% | 1.65% | 1.70% | 1.40% |
| Profit Before Interest and Taxes | 40.89% | 41.99% | 43.17% | 33.90% |
| Main Ratios | ||||
| Current | 37 | 38 | 38 | 32 |
| Quick | 32 | 33 | 33.825 | 33 |
| Total Debt to Total Assets | 0.22% | 0.19% | 0.18% | 0.40% |
| Pre-tax Return on Net Worth | 74.88% | 75.64% | 76.69% | 75.00% |
| Pre-tax Return on Assets | 93.77% | 98.46% | 103.38% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 32.71% | 33.72% | 34.77% | N.A. |
| Return on Equity | 56.04% | 57.78% | 59.57% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.8 | 7.9 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 32 | 33.6 | 34.01 | N.A. |
| Accounts Payable Turnover | 16.3 | 16.4 | 16.54 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.4 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.03 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $238,000 | $251,328 | $265,402 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.81 | 0.85 | 0.9 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 27.9 | 28.4 | 29.4 | N.A. |
| Sales/Net Worth | 2.1 | 2.1 | 2.2 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
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