Fitness Centre Finance

With the increasing number of people who are becoming concerned about their fitness and state of health, the prospects for leisure and fitness based businesses in the UK look encouraging. An annual growth rate of 6 percent is forecast in the fitness club sector.

Fitness Club Business Plans
Any potential mortgage lender will expect a business plan that covers all the basics and addresses the perennial fitness club issue of how to attract and retain members. The business plan should include:

  • Projected income from membership fees and services
  • Costs of future developments
  • Mortgage and other loan repayment costs
  • Costs of replacing equipment
  • Marketing to potential and current members, including understanding the motivation of gym users
  • Staff development to encourage employees to promote additional services to members
  • Health and safety considerations

Franchised Fitness Clubs
A number of fitness club franchises are available for sale in the UK. They vary from small fitness studios to large clubs with spa and swimming facilities. Typically, a packaged fitness club solution might offer the following:

  • Running machines
  • Rowing machines
  • Exercise bikes
  • Toning equipment
  • Body fat analysers
  • Point of sale hardware and software
  • Club administration hardware and software
  • Membership management hardware and software
  • Business training and support

In addition, franchisees should benefit from national branding and advertising. Investment costs start at around £60,000, plus the cost of the premises.

Golf Courses
Because of the area of land that it covers, buying a golf course is never going to be a low cost investment. When you add the value of the clubhouse and other facilities, your budget could be well into seven figures. Any potential lender will need to be convinced that your business plan is viable.

Golf Course Business Plan
A business plan for a golf course should cover all the usual items plus some that would not be required for most other leisure industry business plans, including:

  • Projected income from membership fees, green fees, catering and bars
  • Costs of future developments
  • Mortgage and other loan repayment costs
  • Costs of replacement of equipment
  • Water requirements for current course and future developments
  • Ground maintenance and environmental costs, including wildlife conservation
  • Staffing costs, present and planned for the future
  • Staff training costs
  • Marketing, including profiling of current and potential course users

Summary

  • Fitness clubs and gyms continue to retain their popularity
  • Franchising offers a tried and tested way into the fitness club business
  • Business plans for golf courses are more complex to devise than those for most other leisure industries
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