Financial Model for a Gym/Fitness Center Startup

When you plan on starting any business, it is really important to plan. A financial model is really useful in this case because there are so many moving parts in business cash flows. Specifically, a gym or fitness center is going to require a heavy investment and probably involve financing as well as a runway for ramping up. This excel template will forecast for up to 10 years and allow for an exit in any of those months.



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*After purchase, you will be sent to the template download page.

This template attempts to address all the major assumptions that you may want to tweak in order to see how much cash you need and when you will have various free cash flows. There could be expansion costs you want to account for, growing members, and additional hires / monthly expenses. 

It will also be important to test various price point combinations with various monthly costs to see worst / best case scenarios and what the cash flow of that looks like. The bank is also going to want to see what that looks like.

Having a financial plan gives you actionable steps to take and helps you at least know under what scenarios you will burn more cash than you have and as such what kind of assumptions you need to test for.

In the model, you will be able to enter over 70 fields of startup costs (like bench machines, bike machines, free weights, and all kinds of racks / quantities and the cost for each item. This gives you an idea of your initial cash outlay.

Once you begin operating, the gym might not by profitable right away. That means you have some net burn until you gain enough members to break even. This is all accounted for in the model and will alert you to the largest monthly deficit that your cash position will get to based on the assumptions.

In order to better plan for scale, you will have a fixed expense schedule that allows you to pick the month an expense item starts as well as the amount of that expense over the 10 years.

Financing can also be adjusted by amount, month it starts, and the rate/term.

The revenue is driven based on a starting member count, a planned amount of members added per month and lost per month, and the price you are going to charge over the 10 year period.

There is logic that allows you to define the exit value of the business based on either an EBITDA multiple or a % of top-line revenue. You can also account for any proceeds that may come from the sale of the building(s) if you bought instead of rented your space. If rented, you can easily set the assumptions up to account for that.

In order to give a clear picture of revenue and expenses, there is an executive summary. That will draw from the monthly and annual summaries, which populate based on all the assumptions you build into the model.

An IRR and Return on Equity figure will populate on the executive summary as well as the net cash position and net cash earned before taxes based on your total draw down.

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