Incorporating The Right Gym Business Model In Developing Your Business Plan

A good business plan will give you direction on how to generate revenue, manage your finances, and become profitable. It should include all factors involved in achieving your goals. Along with that, it requires a business model to meet the market demands efficiently and allow scalability.

The importance of a business model for any type of business or industry cannot be underestimated, especially when it comes to starting a gym. Starting a gym business is a huge undertaking and you need to ensure that you have all the necessary tools and equipment in place to successfully launch your business. One of the essential aspects of a business model for your gym business is that it should clearly define your goals and your mission statement. Having clear goals and mission statements will help customers and prospects understand exactly what your business is about, as well as helping you to make sure that all of the equipment that you buy matches your vision.

Another very important aspect of a business model is that it needs to be adaptable. You should be able to set your own goals, you should be able to operate and manage your business flexibly, and you should be able to increase and decrease your profits according to how fast your business is growing. It is also essential that you get the most for your money and that you provide your customers and clients with all the tools and equipment that they need. 

If you are going to choose the right business model for your gym, and make it an integral part of your business planning.

What is a Business Model? 

A business model refers to an organization’s strategy on how to produce, deliver, and capture value in different economic, cultural, political, or other contexts with the use of a tried and tested set of principles and techniques to create economic value. 

The process of business model development and implementation is called business strategy and forms part of a larger business plan. Companies that employ a specific model often exhibit greater competitive advantage, by making an explicit decision to apply certain business strategies across the varied context of their markets. For example, it may be fairly simple for a business operating from a single location to establish a global brand, as opposed to a company operating in various local markets that must adjust to the local rules of each location.

Business models are not static entities. In fact, business models can be constantly modified as a result of changes in market conditions, competitive pressures, and ethical and strategic priorities. Moreover, they may undergo several modification cycles during which the strategies adopted may be substantially altered, especially as a company becomes bigger and/or develops more complex and specialized activities. This is where the essence of a business plan comes into view. It provides the management teams with an initial framework in which to build and monitor the operations of the enterprise. The business plan thus enables the company to make strategic and practical decisions about its core business functions and related processes.

Business Strategies

Businesses that successfully adapt to the challenges of change-including the introduction of new products and services, major corporate reorganizations, disruptive innovations, and economic downturns-typically employ a variety of strategies to capture and create value. 

Some of the most common examples of strategies used by businesses in the face of change are innovation, crowdsourcing, joint venture, and affiliate marketing. In these instances, a particular strategy used depends on the nature of the problem at hand. For example, if there is a need to quickly test and implement new products and services, businesses will likely choose to implement innovative strategies such as crowdsourcing.

3 Common Types of Gym Business Models

Here are three of the most common types of business models used in the fitness industry.

Subscription Program or Membership Program Model

The subscription or membership business model is a good fit for most gym companies for several reasons. Memberships are often offered by fitness businesses for a cost-effective way to operate and to scale high profitability. Also, this type of model saves you from building a strategy from scratch.

Right Gym members model
people with dumbbells on step boards in gym

The biggest disadvantage associated with the membership model is the cost of maintaining the services included in the subscription. If you don’t have an existing sustainable membership base, you will have to find members to fill in the targeted quota equivalent to what makes your business profitable. 

Moreover, you must be able to manage your memberships accurately to meet your revenue projections. This can be problematic if you have a high turnover rate of members. You can end up covering particular costs just because so many members sign up every month.

Service Bundling Business Model

The advantage of a subscription-based membership is that you can tailor your services to gym members. For instance, some gyms offer discounts on various training programs, group classes, customized training, or fitness products, like shoes, T-shirts, and other types of workout apparel. 

Another advantage of this business model is that you can combine it with your subscription offer. Some fitness gyms have special events that are geared toward generating higher revenue, involving bundles programs, services, and products. 

Franchise Business Business Model

Some of the most popular business models used for gyms today are franchises. 

A gym franchise allows a franchisee to enter the marketplace and sell its products and services to consumers. The franchisor licenses the business model, including the know-how, procedures, and intellectual property to a franchisee by selling the rights to use the existing brand’s trademarks and standards.


If you want to start a gym and run it successfully, it is always good to have a scalable fitness business model in place. Fitness business plans should include realistic revenue projections by conducting market research, a mission statement that defines your products, services, and target audience, developing marketing strategies, and formulating financial forecasts. The more information that you have before opening your gym, the better prepared you will be to make wise decisions regarding your start-up costs, equipment, location options, and other factors involved in starting or running a fitness business. But remember, even with the most meticulous business plan, you need to have the determination to succeed as well. 

Discover how you can improve your gym services using a tool designed with profitability in mind. Jonas Fitness has developed specialized member management systems tailor-fit to your business needs in the fitness industry. Contact us today or visit here to request a free demo!