Greg Glassman, Founder of CrossFit infamously said that, “Typically the world's best athletes are minimalists when it comes to their training. They work hard and fast with few exercises. They master the fundamentals and work with them for years.” Whether you are a CrossFit enthusiast or a lifelong athlete, opening a Box can be a lucrative business adventure with the right approach.
The Key Components Of A CrossFit Business Plan
Starting a business is a challenge, that while rewarding, can quickly become overwhelming if you aren't prepared from day one. To avoid becoming a statistic on failed gym attempts, you need to think before you leap, which means that you need to create a CrossFit business plan before you even think about opening your Box.
Step #1: Do You Have The Right Background?
Unless you are funding the entire business from cash reserves, chances are that you will need partners, investors, or a financial loan. With this in mind, you will need to prove that you are a sound investment, which means that you need to have a background that compliments opening and running a CrossFit gym. Ideally you should have certifications or training as a sports instructor or personal trainer. You should also be able to demonstrate knowledge of personnel management, customer service, and marketing. The latter skills will serve you well as you seek to attract and retain clientele.
Step #2: Do You Have A Defined Business Goal?
Creating a viable business plan is about more than simply saying "I want to open a CrossFit gym." It is about clearly establishing specific goals (financial and operational),, as well as how you will compete against other CrossFit Boxes. For example, if you are a former triathlete, then you might want to use your experience to target clientele who are interested in incorporating better running techniques or muscle groups into their workouts. Conversely, clients interested in using CrossFit to develop increased muscle endurance might want to go to a Box that is run by a former powerlifter. In short, knowing your specific goals and your desired clientele is a critical component of creating a business plan.
Step #3: Market Analysis
As part of your business plan you will need to analyze the market growth, share, and volume. This analysis will also examine your competitors, to better identify your competitive advantages. Finally, you will need to explore what location is best for your business. Remember that in order to choose the ideal location, you will need to have clearly established goals and a targeted clientele in mind. For example, if you want to target youth athletes, then you should be near the local colleges or high schools.
Step #4: Identify Selling Points
After completing your marketing analysis you should be able to identify your company's future selling points. These selling points will once again be used to attract investors or partners. Keep in mind that these unique advantages should be able to generate revenue that will combat the costs of maintaining the gym, future marketing expenses, staffing costs, legal advice, tax payments, and any other business fees that you will encounter. It should go without saying, but unless you can clearly identify your competitive advantages, you won't be able to convince investors that your CrossFit gym is a viable financial investment.
Step #5: How Will You Finance Your Gym?
The final component of your CrossFit business plan should explore the financial components of opening a Box. Will you be able to finance the business on your own? Do you need a partner? Are you interested in acquiring an investor? Do you want to take a loan out from the bank? Answering these questions will require you to make a financial plan for each month of the first year, as well as each quarter of the subsequent five years. Factors to consider include: staffing costs, rent, gym equipment, insurance, taxes, marketing costs, and the amount of cash that you need to have in reserve for emergencies or unexpected costs.
Step #6: Create and Document the Business Plan
While you have probably been taking notes as you complete the above five steps, in this final portion you will need to write everything down in a clear and easy to understand professional document. There are plenty of online tools that can help in the creation of your written business plan. No matter which guideline you choose to follow, keep in mind that you will need to cover the following components:
In short, the information that you gathered in steps one through five will be used as you write the actual business plan.
The Bottom Line
We live in an age that supports entrepreneurial adventures. By following the above six steps, you can easily create a CrossFit business plan that will help you to turn your entrepreneurial dream into a reality. When the time is right, turn to Wodify's all-in-one software solution to empower your business venture and transform it into a success.