Fitness Gym Financial Model
5-Year Financial Model for a Fitness Gym
This very extensive 5 Year Fitness Gym Model involves detailed revenue projections, cost structures, capital expenditures, opex, and financing needs. This model provides a thorough understanding of the financial viability, profitability, and cash flow position of your gym.
Income Statement (Profit & Loss)
Shows revenues, costs, and net income over a period (monthly/annual).
Revenues (Fully Editable)
Hourly Rentals (Walk-ins)
Assumption: Average fee per hour × Number of hours rented × Utilization rate
Example: $10/hour × 500 hours/month = $5,000
Group Rentals (Studios / Team Training Space)
Flat fee or hourly group booking price × Number of sessions
Example: $50/session × 60 sessions = $3,000
Coaching & Training Services
Personal training packages, classes, specialty coaching (yoga, HIIT, boxing)
Example: $60/session × 200 sessions = $12,000
Retail Sales (Merchandise & Nutrition)
Training belts, mats, gloves, protein shakes, supplements, snacks
Modeled as Units Sold × Average Selling Price (ASP)
Example: 300 units × $20 avg price = $6,000
Total Revenue = Walk-ins + Group Rentals + Coaching & Training + Retail
Expenses
Cost of Goods Sold (COGS)
For Retail Sales: wholesale cost of belts, mats, gloves, nutrition
For Coaching: trainer commission (if % of sales)
Operating Expenses
Salaries & Wages (staff, admin, trainers on payroll)
Rent / Lease (facility cost)
Utilities (electricity, water, internet)
Marketing & Advertising (social media, local campaigns)
Insurance (liability, equipment coverage)
Maintenance & Repairs (machines, mats, cleanliness)
Software & Subscriptions (booking system, accounting tools)
Depreciation & Amortization
Fitness equipment, leasehold improvements, furniture
Other Expenses
Licenses, professional fees, miscellaneous
Profitability
Gross Profit = Revenue – COGS
EBITDA = Gross Profit – Operating Expenses
EBIT = EBITDA – Depreciation/Amortization
Net Income = EBIT – Interest – Taxes
Fitness Gym Cash Flow Statement
Tracks cash inflows and outflows.
Operating Activities
Cash Inflows
From hourly rentals, group rentals, coaching, and retail sales
Cash Outflows
Salaries, rent, utilities, insurance, marketing, maintenance, inventory purchases
Net Cash from Operations = Inflows – Outflows
Investing Activities
Purchase of gym equipment (treadmills, weights, mats)
Leasehold improvements (renovation, mirrors, flooring)
Sale of old equipment (cash inflow)
Net Cash from Investing = Purchases – Sales
Financing Activities
Loan proceeds (if debt-financed startup)
Equity contributions from owners/investors
Loan repayments (principal)
Dividend payouts
Net Cash from Financing = Inflows – Outflows
Cash Position
Net Change in Cash = Operating + Investing + Financing
Closing Cash Balance = Opening Balance + Net Change
Fitness Gym Balance Sheet
Snapshot of the gym’s financial position.
Assets
Current Assets
Cash & Bank Balances
Accounts Receivable (unpaid memberships, rentals, or coaching fees)
Inventory (belts, mats, gloves, supplements)
Fixed Assets (PP&E)
Fitness Equipment (weights, treadmills, machines)
Leasehold Improvements (mirrors, flooring, paint)
Furniture & Fixtures (desks, chairs, lockers)
Accumulated Depreciation (contra-asset)
Total Assets = Current Assets + Fixed Assets
Liabilities
Current Liabilities
Accounts Payable (suppliers of retail items, utilities)
Accrued Expenses (wages payable, insurance payable)
Current Portion of Debt
Long-Term Liabilities
Bank Loans
Lease Obligations
Total Liabilities = Current Liabilities + Long-Term Liabilities
Equity
Owner’s Capital / Paid-in Equity
Retained Earnings (cumulative profits reinvested)
Total Equity = Capital + Retained Earnings
This structure gives you a complete 3-statement model that can be linked in Excel:
Revenues drive the Income Statement
Net Income links to Equity (retained earnings)
Depreciation flows from Income Statement to Cash Flow and Balance Sheet
Cash balances reconcile across statements
Key Financial Metrics for a Fitness Gym
Revenue Metrics
Monthly Recurring Revenue (MRR): Predictable income from ongoing services.
Annual Recurring Revenue (ARR): Yearly equivalent of MRR, providing a long-term revenue outlook.
Revenue per Square Foot: Income generated per unit of physical space, reflecting facility efficiency.
Cost Metrics
Capital Expenditure (CapEx): Initial investment in Olympic Power Racks, Leg Press Machines, Weight Benches, Treadmills, etc.
Operational Expenditure (OpEx): Ongoing costs for maintenance, utilities, staffing, etc.
Utility Power Usage Effectiveness (PUE): Ratio of total energy used to energy delivered to air-conditioning and IT equipment (lower PUE = better efficiency).
6 Subscription Tier Ideas for a Fitness Gym
Here are six subscription tiers for a fitness gym, designed to meet the diverse needs of different members.
Weekly Starter
This is a budget-friendly option for those with a flexible schedule or who want to try the gym without a long-term commitment. It’s a great way to attract new members.
Pricing: Low weekly rate.
Access: Limited access to the gym, for example, access only from Monday to Friday during off-peak hours (e.g., 9 a.m. to 4 p.m.).
Benefits: Basic access to all gym equipment and locker room facilities.
Weekend Starter
This tier is ideal for busy professionals and students who can only make it to the gym on weekends. It caters to a specific, high-demand time slot without requiring a full membership.
Pricing: Low weekend-only rate.
Access: Full access to all gym facilities on Saturday and Sunday.
Benefits: Access to all gym equipment, locker rooms, and possibly weekend-only group fitness classes.
Standard Weekly
This tier is the most popular choice for regular gym-goers. It offers a balance of access and affordability.
Pricing: Standard weekly rate.
Access: Full 24/7 access to the gym.
Benefits: Access to all gym equipment, locker rooms, and a certain number of included group fitness classes per week (e.g., three classes).
Full Access Plus
This membership is for those who are serious about their fitness and want more than just equipment. It provides a significant boost in value beyond the standard membership.
Pricing: Higher weekly rate.
Access: Full 24/7 access to the gym.
Benefits: Unlimited access to all group fitness classes, and a complimentary monthly guest pass.
Coaching Plus
This premium tier is designed for members who want personalized guidance and support to reach their fitness goals faster.
Pricing: Premium weekly rate.
Access: Full 24/7 access to the gym.
Benefits: All “Full Access Plus” benefits, plus one one-on-one personal training session per week and a customized nutrition plan.
VIP Club
This is the ultimate membership for your most dedicated and loyal customers. It’s an exclusive tier that offers luxury and all-inclusive services.
Pricing: Elite weekly rate.
Access: Full 24/7 access to the gym.
Benefits: All “Coaching Plus” benefits, plus unlimited personal training sessions, dedicated premium lockers, access to an exclusive lounge with complimentary amenities, and priority booking for all classes and services.
Final Notes on the Financial Model
This 5-Year Fitness Gym Financial Model must focus on balancing capital expenditures with steady revenue growth from diversified subscription-based and walk-in services. By optimizing operational costs, and efficiency, and maximizing high-margin services, the model ensures sustainable profitability and cash flow stability.
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