Are you about starting a spin studio and need to write a plan? If YES, here is a detailed sample spin studio business plan template & FREE feasibility report.
One of the health and fitness related businesses that is gaining grounds in recent time is the Spin Studio. It is now obvious to people that they can stay healthy, improve their lifestyle and live longer if they exercise regularly and spin studio comes to the rescue.
People who go to spin studios do it to stay healthy, for the fun of it, or in preparation for a cycling competition. Starting a spin studio business can be capital intensive, but you can be rest assured that you will breakeven within 2 or 3 years of starting it if you are in a location where people fancy spinning/cycling.
Below is a sample Spin Studio business plan template that can help you to write your own with little or no difficulty.
A Sample Spin Studio Business Plan Template
1. Industry Overview
Spin studios operate a brand of indoor bicycle and cycling instruction classes distributed and licensed by the American health and fitness company. Launched in 1993, the brand has become a popular term to refer to indoor bicycle and cycling fitness classes in the united states and throughout the world.
Spin studios fall under the Gym, Health & Fitness Clubs industry and this industry operates fitness and recreational sports facilities that feature exercise and other active physical fitness conditioning or recreational sports activities, such as swimming, skating or racquet sports. Operators are also involved in facilities management and fitness instruction.
Statistics has it that in the United States of America alone, there are about 111,055 licensed and registered gym, health & fitness clubs facilities including those who are into franchising, responsible for employing about 808,932 employees and the industry rakes in a whooping sum of $36 billion annually with an annual growth rate projected at 3.5 percent between 2014 and 2019. It is only Fitness International LLC that can boast of having a giant market share in this industry.
Recent research published by IBISWorld shows that the Gym, Health and Fitness Clubs industry has benefited over the five years to 2019, as a result of broad economic improvements and increased health-consciousness. Companies in this industry operate fitness and recreational sports facilities.
Some gym, health and fitness clubs have appealed to consumers on the basis of convenience by offering low-cost memberships with full operational hours.
Comparatively, niche studios have appealed to consumers by offering classes with specific workouts or environments. According to International Health, Racquet and Sportsclub Association data, the number of health club memberships in the United States increased to 60.9 million.
In recent time, the industry has experienced revenue growth, despite many families being time – strapped. While the industry contended with related health and fitness activities, many operators generated industry revenue growth on the basis of convenience.
In the coming years, the industry revenue is forecast to grow as the industry continue to enhance their product portfolios to attract children and families, despite their reduced leisure time.
Starting a spin studio business in the United States of America can be stressful as it requires enough cash to acquire land large enough to accommodate the kind of indoor gym facility that can comfortably attract families and also cash to equip the studio.
2. Executive Summary
Leo Merrick® Spin Studio, Inc. is a standard indoor health and fitness gym facility that will be located in a growing community in Van Wert – Ohio.
Our basic aim of setting up the business is to contribute our quota in ensuring that people who live in Van Wert and neighboring towns have a standard spin studio for their health and fitness activities and also to open a facility highly suitable for family recreation and bonding.
We have been able to secure a standard indoor facility in a central and easy to locate location in Van Wert – Ohio. Aside from the fact that our aim of starting the business is to encourage cycling activities and keep the citizens physically and mentally fit, we will still go ahead to make available, a video game house, bowling alley, BBQ joint, food and drink court, ice cream shop and enough parking space so as to get parents and guardians occupied when they bring their wards to our spin studio.
We are well equipped to services the whole family cum community as well as visitors and travelers. Leo Merrick® Spin Studio, Inc. is going to become the number one spin studio in the whole of Van Wert – Ohio and we will work hard to build our spin studio facility to match the needs of the average person (both male and female) in the community.
Prior to launching the business, we conducted a thorough market research and feasibility studies and we were able to come to the conclusion that Van Wert – Ohio community is the right place to open our spin studio facility. As a matter of fact, our major aim of starting Leo Merrick® Spin Studio, Inc. is to encourage families in the community to cultivate the habit of cycling.
Our spin studio facility is specifically designed to take care of children as well as parents, we have active childcare services for toddlers and we have membership packages that is highly discounted for families.
Leo Merrick® Spin Studio, Inc. is owned and managed by Leo Merrick and his immediate family members. Mr. Leo Merrick is a retired cyclist who has won many laurels for the State of Ohio. He has a robust experienced in the gym, health and fitness clubs industry and possess B.Ed. in Physical and Health Education.
3. Our Products and Services
Leo Merrick® Spin Studio, Inc. is in the industry to provide spinning/cycling facility for residence of Van Wert – Ohio which is why we have been able to put up a spin studio facility that can help us achieve the goal. These are the services and amenities that will be made available to our clients in our spin studio;
- Operating indoor bicycle and cycling instruction
- Operating varieties of spinning cycling activities for children
- Child care services
- Providing additional health and fitness activities instruction
- Membership fees, personal trainers, guest admissions, meals and beverages, merchandise sales, spa services and other.
4. Our Mission and Vision Statement
- Our Vision is to build a world – class spin studio facility and also to contribute our quota in encouraging families and children in Van Wert – Ohio to actively engage in cycling and fitness activities.
- Our mission for establishing Leo Merrick® Spin Studio, Inc. is to create a movement in the community that supports total engagement of residents in spinning / cycling and fitness activities. We want to contribute our quota towards ensuring that Van Wert – Ohio community produces some of the best cyclists in the whole of the United States of America.
Our Business Structure
Leo Merrick® Spin Studio, Inc. intends to become the leading spin studio facility in the whole of Van Wert and we will ensure that we put the right structures in place that will support the kind of growth that we have in mind.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders. As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.
Our business will not be built only for the purpose of giving our members value for their money and time, but also, we will ensure that we make our work environment highly conducive for all our employees. We will provide them with employee package that will help them stay motivated and deliver on their various tasks and goals et al.
In view of that, we have made provisions for the following positions to be occupied by highly qualified and experienced staff;
- Chief Executive Office – CEO
- Spin studio Facility Manager
- Marketing and Sales Officer
- Spin Studio Safety Instructor / Assistant (5)
- Customer Care Executive / Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Carrying out staff induction for new team members
Spin Studio Facility Manager
- Responsible for operating and managing the spin studio facility
- Generate an exercise regimen that focuses on motivation and inspiration while promoting health and wellness
- Ensures that the spin studio facility is in tip top position at all times
- Maintained positive relationships with members to encourage continued class attendance.
- Manage membership and registration services
- Ensuring that participants pay all requisite fees before attending classes.
- Handle other relevant spin studio facility operations
Spin Studio Safety Instructors/Assistant (5)
- Provide cutting-edge group fitness instruction through a variety of challenging yet entertaining fun classes that promote fitness and positive self-esteem in a safe environment.
- Teach a multi-purpose 60 min class of a combination of high intense cycling and mixed boxing
- Follow Mad Dogg Athletics, Inc. certified cycling guidelines while creating a fun atmosphere through music and cues
- Delivering lessons through the use of modeling and verbal instruction.
- Ensuring that participants use the equipment in a safe and appropriate manner.
- Suggesting tailored exercises for individuals with physical limitations or injuries
- Maintained positive relationships with members to encourage continued class attendance.
Marketing and Sales Officer (2)
- Identify, prioritize, and reach out to new clients, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Document all customer contact and information
- Represent Leo Merrick® Spin Studio, Inc. in strategic meetings
- Help increase sales and growth for Leo Merrick® Spin Studio, Inc.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for the organization
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for Leo Merrick® Spin Studio, Inc.
- Serves as internal auditor for Leo Merrick® Spin Studio, Inc.
Client Service Executive
- Welcomes members and potential members/clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the organization’s products and services
- Manages administrative duties assigned by the management in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ services, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
- Responsible for cleaning in and around the spin studio facility
- Clean up after customers
- Maintain a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
- Ensure that toiletries and supplies don’t run out of stock
- Handle any other duty as assigned by the spin studio facility center manager.
6. SWOT Analysis
Leo Merrick® Spin Studio, Inc. is in business to provide spin studio facility for residents in Van Wert – Ohio and also help our clients achieve their fitness goals and at the same time to make profits. We are aware that there are competitions in the gym, health and fitness clubs industry which is why we took out time to conduct an effective SWOT Analysis before investing our hard – earned money into the business.
We know that if we get things right before starting our spin studio facility, we will not have to struggle before attracting loyal clients and building our membership base to a level where we can easily breakeven.
We hired the services of Dr. Ben Douglas, a HR and Business consultant with bias in business structuring to help us conduct SWOT analysis for our company and he did a pretty good job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Leo Merrick® Spin Studio, Inc.;
One of the apparent strengths that will definitely stand as a plus for Leo Merrick® Spin Studio, Inc. is the fact that our spin studio facility is centrally located in a densely populated – residential area in Van Wert – Ohio; our location is in fact one of our major strengths.
We equally have a team of highly qualified and experienced professionals who will work with members to achieve their aims and lastly our gate fee/membership package is going to be one of the best that anybody living in Van Wert – Ohio can get; it is cheap and affordable.
Before setting up this business, we looked into our Business model and we were able to identify two major weakness. One is the fact that we are a new business and the second is the fact that we may not have the financial resources required to match up with existing facilities in Van Wert – Ohio.
As per capita disposable income rises, more individuals can purchase gym, health and fitness club memberships. Furthermore, as disposable income increases, more consumers can afford high-cost, all-inclusive gym memberships, which benefits the industry.
Per capita disposable income is expected to increase in 2019, representing a potential opportunity for the industry. Besides, part of the advantages we have is that, we are centrally located in one of the busiest and densely populated areas with the right demographic composition in Van Wert – Ohio and we are open to all the available opportunities that the city has to offer.
When individuals have more leisure time, they can allocate more time toward their fitness regimen, which spurs consumer demand for gym, health and fitness club memberships.
In 2019, IBISWorld estimates that time spent on leisure and sports will stagnate, representing a potential threat to the industry and lastly, the emergence of new competitors within the same location where our spin studio facility is located will also pose a threat to us.
7. MARKET ANALYSIS
- Market Trends
The gym, health and fitness clubs industry is part of the industry that has benefited from recent marketing campaigns which is targeted towards encouraging people to participate in cycling activities and sports.
Going forward, many people who are part of the baby boomers’ generation are expected to sign up for health and fitness club memberships or encourage their children to make use of available spin studio facilities in their communities.
Just like in other business ventures, the owners of spin studio facilities are always looking for ways to increase their market share; they go as far as signing deals with high schools and also religious organizations et al to make use of their facility.
A spin studio facilities grow, it becomes necessary for them to develop new service offerings or install new facilities that will help them attract more people.
Little wonder some facilities now have other facilities targeted towards attracting everyone who intends to stay healthy and fit. In order words, it is very important for spin studio facilities to continue to improvise if they want to grow their business.
8. Our Target Market
The target market for spin studio facilities cuts across people from different backgrounds. The fact that people visit or register in spin studio facilities make marketing the business interesting. The target market for spin studios can be categorized into three various groups.
The first group are the families who are looking towards creating time for children cum family hangouts. The other group of people are cycling clubs and cyclists who need a standard facility for regular practice. The last group of people are individuals who want to cycle/spin for fun and fitness.
Leo Merrick® Spin Studio, Inc. will work towards providing services, facilities and environment that will help us reach out to our target market.
- Our Competitive Advantage
The gym, health and fitness clubs industry is indeed a prolific and highly competitive industry. Clients will only make use of your spin studio if they know that you can help them achieve their goals. Leo Merrick® Spin Studio, Inc. is centrally located in a densely populated residential area with the right demographic composition in Van Wert – Ohio; this is obviously going to give us an edge amongst our competitive.
We equally have a team of highly qualified professionals who will work with all our clients to achieve their aims of making use of our spin studio facility and lastly our membership package is going to be one of the best that anybody living in Van Wert – Ohio can get; it is cheap and affordable.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
- Marketing Strategy and Sales Strategy
Our marketing strategies will be directed towards achieving specific objectives that support the strategic goals of the organization. The truth is that all that we will create new market channels, increase membership enrolment and increase our market share.
We will leverage on improving our services and ensure that we win new clients and retain old members. At Leo Merrick® Spin Studio, Inc., our marketing strategies will be consistent throughout the marketing mix and we will take into consideration product improvement, promotion, and price.
As part of our sales and marketing strategies, we will pay attention to the promotion of our spin studio facility so as to attract families and cyclists and cycling clubs to enroll and become members of our spin studio facility. Part of the marketing and sales strategies that we will adopt are;
- Open our spin studio facility with a big party for children that reside in and around Van Wert – Ohio
- Advertise Leo Merrick® Spin Studio, Inc. on national dailies, local TV and radio station
- Promote our spin studio facility online via our official website and all available social media platforms
- Introduce our spin studio facility by sending introductory letters alongside our brochure to cycling organizations, schools, corporate organizations, households and key stake holders in and around Van Wert – Ohio
- Print out fliers and business cards and strategically drop them in offices, libraries, public facilities and train stations et al.
- Make our first impression count positively to those making use of our spin studio facility for the first time
- Make use of attractive hand bills to create awareness and also to give direction to our spin studio facility
- Adopt direct mailing coupon marketing approach
- Position our signage / flexi banners at strategic places in and around Van Wert – Ohio
- Create a loyalty plans that will enable us reward our consistent members especially those that register as a family or groups
Sources of Income
Leo Merrick® Spin Studio, Inc. is established with the aim of maximizing profits in the spin studio business and we are going to ensure that we do all it takes to attract clients on a regular basis. Leo Merrick® Spin Studio, Inc. will generate income by offering the following services;
- Operating indoor bicycle and cycling instruction
- Operating varieties of spinning activities for children
- Child care services
- Providing additional health and fitness activities
- Membership fees, personal trainers, guest admissions, meals and beverages, merchandise sales, spa services and other.
10. Sales Forecast
It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field. It would be hard to create a sales forecast with a newly opened business because the statistics that will be provided will be on a short – term basis.
Experts said that usually a business should be in operation for at least one year before they can generate the statistics that will help in accurate forecasting; statistics should be at least one year old in order to show the trends and patterns in consumer spending.
We expect to welcome a minimum of 12,000 members i.e. one thousand children per month within our first year of operation and then in subsequent years we will grow by 25 percent or more. Below are the sales projection for Leo Merrick® Spin Studio, Inc., it is based on the location of our spin studio facility and the services and products that we will be offering to our clients (members);
- First Fiscal Year (FY1): $240,000
- Second Fiscal Year (FY2): $450,000
- Third Fiscal Year (FY3): $750,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major competitor offering same services as we do within 4.5 miles’ radius from our spin studio facility.
11. Publicity and Advertising Strategy
We have been able to work with our branding and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. Below are the platforms we intend to leverage on to promote and advertise Leo Merrick® Spin Studio, Inc.;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community based cycling and sport events and competitions
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
- Install our Billboards on strategic locations all around Van Wert – Ohio
- Distribute our fliers and handbills in target areas
- List Bellerose Indoor Playground®, LCC on local directories/yellow pages
- Advertise our spin studio facility in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our official vehicles are well branded with our corporate logo et al.
12. Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than what our competitors are charging in Van Wert – Ohio.
Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us or when they register as a family or a cycling organization or schools.
- Payment Options
The payment policy adopted by Leo Merrick® Spin Studio, Inc., is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulations of the United States of America.
Here are the payment options that Leo Merrick® Spin Studio, Inc., will make available to her clients;
- Payment by via bank transfer
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
- Payment via mobile money
- Payment with cash
In view of the above, we have chosen banking platforms that will enable our clients pay us without any difficulty. Our bank account numbers will be made available on our website and promotional materials so that it will be easier for members to pay their membership fees (renew their membership).
13. Startup Expenditure (Budget)
When it comes to setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you need a good amount of capital as you need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost of starting a spin studio facility; it might differ in other countries due to the value of their money.
However, this is what it would cost us to set up Leo Merrick® Spin Studio, Inc. in the United of America; This is the key areas where we will spend our startup capital on;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of $10,000.
- The cost for hiring business consultant – $5,000.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- The cost of accounting software, CRM software and Payroll Software – $3,000
- The cost for leasing indoor gym facility – $150,000.
- The cost for facility remodeling and equipping the facility – $50,000.
- Other start-up expenses including stationery – $1000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost for start-up inventory – $15,000
- The cost for acquiring various shapes and types of spinning and cycling equipment – $250,000
- The cost for the purchase of furniture and gadgets – $10,000.
- The cost of launching a Website – $600
- The cost for our grand opening party – $15,000
- Miscellaneous – $15,000
We would need an estimate of $750,000 to successfully launch a standard spin studio facility in Van Wert – Ohio. It is important to state that the testing and evaluating expenses would be high because of the large amount of equipment needed to start up a spin studio facility.
Generating Funds/Startup Capital for Leo Merrick® Spin Studio, Inc.
Leo Merrick® Spin Studio, Inc. is owned and managed by Mr. Leo Merrick and his immediate family members. They decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Leo Merrick® Spin Studio, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to equip our facility with state of the art spinning /cycling and equipment et al and make our services affordable.
Leo Merrick® Spin Studio, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of ten years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Acquiring indoor facility and remodeling the facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed spinning cycling, gym and fitness equipment, electronic appliances, office appliances and suppliers: In progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress.