Fitness Studio

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Executive Summary

Steady Strong Studio is a small group fitness studio in our city. We offer coached classes, strength training and personal attention in a friendly space where beginners feel at home. Many people want to get fit, but big gyms feel anonymous and intimidating, and many people quit within weeks. A small studio with coaching, community and a clear plan can keep people coming back. We will win members by being welcoming, making every class safe and effective and knowing each member by name. Here is what our numbers show. We expect sales of about $100,500 in Year 1, growing to about $393,600 by Year 5 as we add members, classes and certified instructors. We expect losses of about $51,700 in Year 1 and $35,100 in Year 2 while we build our customer base, then a profit from Year 3 (about $15,800), growing to about $59,600 by Year 5. We need $137,000 in total. That covers $65,700 in startup costs (strength and cardio equipment, a sound system, a studio build-out, opening supplies, licenses, insurance, a sign and a lease deposit) and a cash cushion of about three months of bills. I am putting in $18,000 of my own money, and I am asking for $119,000. The startup costs include a studio build-out and a lease deposit. I am Sandra Fisher, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Steady Strong Studio will be a limited liability company (LLC) in New Mexico, owned by Sandra Fisher. We will work from a leased studio of about 1,500 square feet with an open floor, a front desk and a changing area. What we believe. Welcome everyone, coach with care, keep members safe and build a community that keeps people coming back. What we offer:
- Small group strength and conditioning classes. - Beginner programs and onboarding. - Monthly memberships and class packs. - Drop-in classes. - Special programs: challenges, workshops and seasonal events. Licenses and insurance. Fitness studios need a business license and liability insurance, and some places require a permit for the space. Our city requires a general business license, and I will buy music licenses for classes. Playing music in classes requires performance licenses from music licensing organizations. Instructors hold certifications from nationally recognized programs and CPR and AED training. Every member signs a waiver and health questionnaire, and we follow accessibility rules. We stay within our scope and do not give medical advice. Where things stand today. I have coached for six years, I hold a certification and CPR/AED training, I have run a free weekly park group and I have looked at three studio spaces.

Problem & Opportunity

People near us want to get fit, and many do not feel comfortable in big gyms. 1. Intimidating gyms. Many people feel lost or judged. 2. No coaching. Without guidance, people repeat the same routine or get hurt. 3. No accountability. Without someone expecting them, many people quit. 4. Cost. Boutique studios charge a lot, and many people cannot afford them. How we know people want this. Thirty people came to my free weekend classes last summer, and 12 asked when I would open a studio.

Products & Services

What we sell. 1. Monthly memberships. A monthly fee for unlimited classes. Our plan assumes an average of about $145 per member per month in Year 1, rising to about $155 by Year 5. Direct costs, such as towels, supplies and payment fees, run about $35 per member per month. We expect about 600 member months in Year 1 (about 50 members on average), growing to about 2,317 a year by Year 5. 2. Drop-in classes. A single class for people who are not members. Our plan assumes an average of about $27 per class in Year 1, rising to about $29. Direct costs run about $6 per class. We expect about 500 drop-ins in Year 1, growing to about 1,187. Our prices. Unlimited monthly membership $145. Drop-in class $27. Class pack of ten $230. How it works for the customer:
1. A free intro class and a quick chat about goals. 2. A health questionnaire, a waiver and a plan. 3. Coached classes at times that fit, with progress checks. 4. A community: challenges, events and a coach who knows your name. Gross margin, explained. "Gross margin" is the share of each sale left after paying for materials and direct job costs. Our plan shows about 76% in Year 1. That money pays the owner and crew, vehicle costs, insurance and other bills.

Market Analysis

Who will hire us:
- Adults who want to get stronger and healthier. - Beginners who feel out of place in a big gym. - People returning to exercise after a break. - Friends and coworkers who want to train together. Where we will work. A studio in a convenient spot on the north side with parking, near two neighborhoods and a grocery store. Season. Fitness is busiest in January and spring, and slows in summer and around the holidays. Challenges and events help keep members engaged all year. Our plan is careful on purpose. About 50 members in Year 1 is a size the owner can coach well, with a few classes a day.

Competitive Landscape

Other choices customers have:
1. Large gyms and chains. Peak Gym (a made-up name) charges about $60 a month; known for low prices, but no coaching. 2. Other boutique studios. We compare their prices, schedules and community. 3. Home workouts and apps. Cheap, but without coaching and accountability. How we will win customers: a welcoming community, personal coaching, safe and effective classes, fair prices and a clean space.

Marketing & Sales Strategy

How people will find us. - A free Google business listing with photos, and a simple website with online booking. - Free intro classes and community workouts at local events. - Referral rewards for members who bring friends. - Relationships with physical therapists, doctors and employers. - Social media posts with member stories, with permission. Marketing budget. About $8,000 a year. The sign, logo and website are paid for from startup costs.

Operations Plan

How the business runs day to day. Classes and members. The owner coaches the classes and manages the studio. In Year 1 the owner works alone, with part-time help from instructors paid per class. We add one certified instructor in Year 2 and grow to three by Year 5. Each class has a plan, a check-in and a warm-up and cool-down. Equipment. About $35,000 to start: strength equipment: racks, barbells, plates and dumbbells; cardio equipment: rowers and bikes; sound system and microphone; benches, cubbies and storage; front desk, point-of-sale and booking system; recovery and cleaning equipment; security cameras and access system. We set aside about $3,000 to $4,000 a year for repairs and replacements. Upkeep. Equipment cleaned after every class and inspected weekly, floors and mirrors cleaned daily and certifications kept current. Safety. Health screening and a waiver for every member, careful teaching of form, equipment checks, CPR and AED training and an emergency plan. We stay within our scope and refer members to medical professionals when needed. Running costs in Year 1: studio lease and utilities about $30,000, instructor pay about $20,000, marketing about $8,000. Scheduling and billing. Booking and billing software, with members billed monthly by card and classes booked online.

Management & Organization

Who runs the business. Sandra Fisher, owner. As owner I will coach classes, welcome members, manage the studio, market the business and handle the money side of the business. I plan to pay myself $48,000 a year in salary in Year 1. Crew. Certified instructors at about $28,000 a year each (or part-time pay): none in Year 1, one in Year 2, one in Year 3, three in Year 4 and three in Year 5. People who will help us: a bookkeeper or tax preparer, an insurance agent, and a free mentor from SCORE or the Small Business Development Center (SBDC). Lauren Carter serves as a key volunteer advisor.

Milestones Narrative

Our goals and when we plan to reach them. - Before starting: sign the lease, get licenses and insurance, build out the studio, buy equipment and open for classes. Target start: January 2027. - First year: reach about 600 member months and 500 drop-in classes, for about $100,500 in sales. - Year 2: add a certified instructor, about $162,500 in sales, and a loss of about $35,100. - Years 3 to 5: grow to three certified instructors and about $393,600 in sales by Year 5. Growth depends on hiring good people and winning the work, so treat the later years as goals, not promises. What we check every week: members, attendance, cancellations, trial conversions, revenue, and cash in the bank.

Funding Request

How much we need and how we will use it. Total needed: $137,000. This number comes from the Funding Need Calculator in this plan. It adds up: - Startup costs of $65,700, listed item by item in the Startup Costs section (about $35,000 for strength and cardio equipment, sound, storage and the booking system, $15,000 for flooring, mirrors, paint and lighting, $1,000 for opening towels, water and retail items, $1,200 for the business license and music licenses, $3,500 for the first insurance payment, $1,000 for entity formation, waivers and lease review, $4,000 for the sign, logo and website, and $5,000 for the lease security deposit). - A cash cushion of about $71,300: the deepest cash dip in the early months plus about three months of bills, so slow weeks do not put the business at risk. Lenders call this "cash cushion." - Together that comes to about $137,000 (rounded up to the nearest $500), which is the total we are planning for. Where the money comes from: - My own money: $18,000. - Amount requested: $119,000. Kind of funding we are looking for: an SBA 7(a) loan through a local bank or community lender. How we will pay it back. We expect losses of about $51,700 in Year 1 and $35,100 in Year 2 while we build our customer base, then a profit from Year 3 (about $15,800), growing to about $59,600 by Year 5. With this funding, the business has money in the bank every year of the plan. The loan is planned at 12.75% interest over 10 years, the most the SBA allows for a loan this size, so payments of about $1,759 a month are already included in our cash flow. What we are offering the lender: our equipment and my personal guarantee A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan: - Phase 1: start with small group classes in a park or rented space, with portable equipment, while keeping your current job. Startup can be under $3,000. - Phase 2: once you have a regular group, lease a small studio, buy equipment and follow this plan. To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match. All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or certificates. - A personal financial statement (a list of what you own and what you owe; lenders usually provide a form). - Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov). - Proof of insurance, or a quote. - Your lease or letter of intent, if you have one. - Quotes for the equipment and build-out. - Your menu or price list. - Photos of your product or past work, if you have them. - Your instructor certifications and CPR/AED certificate. - Your waiver and health questionnaire. If you don't have any of this yet, no worries - let's continue. The assumptions behind our numbers (change them in the Financials section to match your own):
- Monthly Memberships: about $145 per member month in Year 1, rising to $155; about $35 per member month in direct costs; about 600 member months in Year 1, growing to 2,317. - Drop-In Class Fees: about $27 per class in Year 1, rising to $29; about $6 per class in direct costs; about 500 classes in Year 1, growing to 1,187. - Owner salary: $48,000 a year. Crew: $28,000 a year each, from none in Year 1 to three in Year 5. - Other yearly costs in Year 1: studio lease and utilities about $30,000, instructor pay about $20,000, marketing about $8,000. - Tax rate: 21%. - Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs