Cheerleading is becoming a big business, and there are lots of ways to get involved. For one, you can choose to open a cheerleading gym, but you have to understand that being a cheerleading gym owner involves many jobs: coach, concierge, babysitter, maintenance, choreographer, manager, accountant, store owner, just to name a few.
You also have to draft a business plan and if you’ve never drafted a business plan before, the process can be daunting. However, with just a few tips, any willing entrepreneur can put together a detailed plan for any business.
As long as you can move past the complexity, you will understand that a business plan does more than just describe where your cheerleading gym business is headed. Note that a well-researched business plan will help you understand how you intend to get there. While there are many uses of a business plan, its most vital function is to guide your decision-making and strategic planning.
Steps on How to Write a Cheerleading Gym Business Plan
Table of Content
Streams of Roses is a full-scale cheerleading gym that will offer various programs for athletes eager to enter a cheerleading or gymnastics program. Our primary focus will be on making available professional, knowledgeable advice and training to all athletes who venture into our doors.
We will also strive to ensure that athletes understand the correct techniques to execute the skills they are learning. We believe this will help ensure that they suffer fewer bodily injuries throughout their career and they’ll have fewer issues as adults. Streams of Roses will be registered as a Limited Liability Partnership (LLP) with the state of Illinois.
a. Our Products and Services
At Streams of Roses, we will offer a vast range of gymnastics programs that include recreational classes, school field trips, cheerleading classes, and competitive teams. Note that all our classes will have different focus areas for the athletes.
Although the skills acquired will relatively be the same, the focus areas will be more on teaching the athletes the techniques of their particular sport. We believe that this will let the athletes obtain valuable knowledge in their sport that can be used in the future, whether they choose to continue their sport in high school or college.
b. Nature of the Business
Streams of Roses will offer private gymnastics instruction, group classes, drop-in sessions, cheerleading classes, and physical conditioning classes. We intend to succeed by offering our clients a safe, fun environment to learn gymnastics with close personalized attention from trained teachers.
c. The Industry
Streams of Roses is established to acquire a substantial share of the sports coaching industry.
d. Mission Statement
Our mission at Streams of Roses is to provide quality cheerleading and gymnastics instruction to children between the ages of 2 and 25. We will always strive to provide a fun, structured, and motivating atmosphere for athletes to thrive.
e. Vision Statement
Our vision at Streams of Roses is to create a conducive environment where people can learn gymnastics, meet new people, have fun, and feel comfortable. We will offer varied gymnastics and conditioning programs with price options for all levels of interest, but with greater emphasis on group classes.
f. Tagline or Slogan
Streams of Roses – Talents in Abundance
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Streams of Roses will be registered as a Limited Liability Partnership (LLP) with the state of Illinois. The partners/management team consists of Mark Flinch, Abraham Lurton, and Winner Grace. Note that this team boasts of a vast range of experience that will ensure that Streams of Roses achieves success in no time.
h. Organizational Structure
- Chief Executive Officer
- Facility Manager
- Marketing and Sales Officer
- Front Desk Officer
i. Ownership/Shareholder Structure and Board Members
Streams of Roses is a cheerleading gym jointly and equally owned by Mark Flinch, Abraham Lurton, and Winner Grace. Due to their vast range of knowledge and expertise, they will also jointly manage Streams of Roses.
- We offer programs that other local gyms don’t
- We are located near a major school system
- We have just 3 competitors in our city
- All our staff will be knowledgeable, reliable, organized, and fun
- USAG, USASF, and MHSAA certified programs
- New gyms can have a tough time getting established
- Little or no brand awareness
- We may have to alter some of our policies and procedures after experiencing certain situations
- Schools in our business area offer the chance for Streams of Roses to draw in a large number of kids
- Field trips can ensure we cultivate awareness and grow our customer base
- Our business location allows us to cater to a large number of people (over 47,308 people live in Glenview, Illinois)
i. How Big is the Industry?
Measured by revenue, the United States Sports Coaching industry is $10.3bn in 2022.
ii. Is the Industry Growing or Declining?
According to reports, the market size of the Sports Coaching industry in the US has grown 1.3% per year on average between 2017 and 2022. However, the industry is expected to increase 1.8% in 2022.
iii. What are the Future Trends in the Industry
Truth be told, the cheerleading market will always be unpredictable, and we’re sure to see a handful of surprises with every new season. However, if there’s one very certain thing, it’s that we’re going to see a whole lot of enticing moments.
One unique thing about cheerleading is that it’s based on creativity and you never know what to expect. Since cheerleading is always evolving at a rapid pace and new trends are always on the horizon, here are a few things we think will dominate the conversation in the future;
- Custom Uniforms and Logos
- Smaller Team Sizes
- Signature Voiceovers
iv. Are There Existing Niches in the Industry?
No, the cheerleading gym business is already a niche market under the sports coaching industry. However, you can choose to differentiate your business by targeting a specific age group.
v. Can You Sell a Franchise of your Business in the Future?
As our business grows and expands, we will start to build new locations and also inculcate a gym accessories retail shop into our locations. With the help and dedication of employees, we will always strive to offer high-quality service to Glenview, Illinois, and surrounding areas. Also with the help and loyalty from customers, we believe Streams of Roses can reach any objectives set each year.
- Two competitors offering services and programs that are not too similar
- People may not want to risk going to a new facility
- No concrete rapport built with the public
- Coaches may not want to work at Streams of Roses since it’s a new gym
i. Who are the Major Competitors?
- United Gymnastics Academy
- Xtreme Altitude Gymnastics
- Gym Starz
- Cheer Florida All-Stars
- All-Star One
- Cheer Central Suns
- CheerVille Athletics
- Indiana Ultimate
- Infinity Allstars
- ABC Shoreline Gymnastics
- Elite All-Stars
- Cheer Factor Gym
- Island Tumblers Gymnastics
ii. Is There a Franchise for Cheerleading Gym Business?
- Starz Program: $36,525
- N Zone Sports: $41,100 – $63,050
- The Little Gym: $181,450 – $431,500
- ZOO Allstar Gyms: $110,000-$150,000
- National Youth Sports: $52,700-$97,200
- High School Sports: $136,000-$305,000.
iii. Are There Policies, Regulations, or Zoning Laws Affecting Cheerleading Gym Business?
Yes, before you dive into opening a cheerleading gym, it is always imperative to make sure that the area is appropriately zoned. Aside from opening your gym in an area that is zoned for businesses, you’ll also want to make sure that you can operate a gym, specifically, in that area.
The license requirements for opening a cheerleading gym will also vary by state. Therefore, it is always necessary to do research specific to the state where you plan to do business. Local or city governments may have additional permitting you need to consider too.
a. Who is your target audience?
i. Age range
We plan to draw in customers/gymnasts from different areas of the population. However, a large portion of our clients will be parents between the ages of 25 and 55. The athletes that train at our facility will range from 2 to 18 years old.
ii. Level of Educational
The levels of education of the parents we intend to target include;
- High school graduate or less: 2%
- College or Associate degree: 28%
- Bachelor’s degree: 32%
- Postgraduate 38%
iii. Income Level
Most families will be middle class, but Streams of Roses will also see several upper-class families owing to our business location.
- White: 83.24%
- Black: 1.01%
- Asian: 12.46%
- Islander: 0.06%
- Hispanic (any race): 7.1%
There are no language barriers or restrictions at Streams of Roses
vi. Geographical Location
Glenview is situated at 42°4′46″N 87°48′56″W (42.079391, -87.815622). It has a total area of 13.992 square miles (36.24 km2), and about 13.95 square miles (36.13 km2) (or 99.7%) land, 0.042 square miles (0.11 km2) (or 0.3%) is water.
In terms of gender, Streams of Roses will mostly see females dropping and picking their kids from practices. It’s also possible that we will see some males at competitions. A good number of the athlete’s parents will be married with full-time jobs to afford the extracurricular activities.
b. Advertising and Promotion Strategies
- Develop a quality website
- Use social media to our advantage at Streams of Roses
- Leverage content marketing
- Advertise near transport hubs
- Host engaging events
- Strategically gift memberships
- Put together a detailed timeline for marketing.
i. Traditional Marketing Strategies
- Give Out Membership Perks
- Create a Health Insurance Program
- Provide Daycare Services
- Help our Members Succeed
- Host Events at Our Cheerleading Gym Facility
- Partner with Local Businesses
- Advertise Toward Working Moms
ii. Digital Marketing Strategies
- Pay-Per-Click Advertising
- Content Marketing
- Social Proof & Reputation Management
- Design a Website
- Search Engine Optimization
- Gym Listing Websites
- Create a Blog
iii. Social Media Marketing Plan
- Facebook ads, Twitter & LinkedIn followers
- In-app notifications (social media sharing buttons, newsletter subscription)
- Promotion in relevant communities
- Re-purpose content for different media (videos, podcasts, etc.)
- Ask question platforms (Quora, Reddit)
- Email list (Newsletter)
c. Pricing Strategy
At Streams of Roses, our prices will be broken down by the number of days the athlete will be training per week. Have it in mind that all fees will be processed monthly and guardians will have to ensure their athletes’ fees are paid by the 5th of each month, or the guardian is responsible for a $10 late fee. Field trip pricing is will most often be based on the class size of 30 children. If more children will be attending the trip, a custom price will be designed by the facility.
Sales and Distribution Plan
a. Sales Channels
At Streams of Roses, we will leverage a vast range of marketing techniques to effectively spread the word about the new facility. We also believe that the selling of merchandise will help Streams of Roses continue spreading the word without the task being placed with the employees. Also, the merchandise will help cover some of the start-up costs the gym will need.
b. Inventory Strategy
To manage our gym and inventory, we intend to use inventory management software that will help us increase engagement by improving internal communications among employees, creating and managing schedules, processing payments and invoices, generating and analyzing reports, storing member information, and other handy features, depending on the program.
We intend to use Zen Planner; which is a comprehensive software that enables easy scheduling, member self-service, generation of customized reports, and many other helpful features.
c. Payment Options for Customers
Below are the payment options we at Streams of Roses intend to make available to our clients
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Return Policy, Incentives, and Guarantees
At Streams of Roses, we will operate a no refund policy. This entails we will not provide compensation for services rendered at our facility. However, just as with licenses and permits, we will purchase adequate insurance to ensure we operate safely and lawfully.
e. Customer Support Strategy
Streams of Roses will attain success by offering our clients’ children a safe, enjoyable environment to learn gymnastics with personalized attention from trained teachers. We intend to achieve these goals by guaranteeing the following;
- Help parents feel comfortable and good about the environment in which they have registered their children and the physical and social benefits gained there.
- To ensure it is a safe, educational, and fun experience for the child.
Coaches working hours will be assigned based on the program they are associated with and how many classes or teams they’re coaching. Each class or team has different hour requirements. At Streams or Roses, we believe that if children are not taught the basics correctly in gymnastics, they will advance to higher levels sloppy with their skills. Owing to that, we would always strive to focus our programs on the beginning classes.
a. What Happens During a Typical Day at a Cheerleading Gym Business?
Just like a normal gym facility, a typical day for owners will start before 5 am and may end only after the sun has gone down. They will also have to work weekends, especially in the first few years when the business requires additional support.
Note that the main day-to-day activities will include opening the gym, cleaning up and prepping for the day, checking the register for any sales from the previous night that weren’t deposited, cleaning up and checking the equipment before opening, and managing members and employees. For new businesses, owners might also have to manage the accounting for the gym, which includes verifying that all membership dues are current and that all classes are paid in full.
b. Production Process
There are no production processes at Streams of Roses!
c. Service Procedure
- Ample and secure parking
- Easy access
- Target high traffic areas for maximum public exposure
- Design facilities to curb overcrowding
- Maintaining a reputable and untarnished reputation in the community
- Competitive pricing
- Flexible hours
- Seasoned management team
- Personalized relationships with customers
d. The Supply Chain
- The initial capitalization of the company to guarantee operations through year one
- Ensuring low overhead by employing multi-skilled workers
- Concrete customer base through aggressive marketing
- Strong community ties and involvement
- Do away with collection costs by creating cash/credit/debit-card-only facilities
e. Sources of Income
- USASF Cheerleading Classes
- MHSAA Cheerleading Classes
- USAG Cheerleading Classes
- Field Trips
- Recreational Gymnastics
- Recreational Cheerleading
a. Amount Needed to Start your Cheerleading Gym Business?
Since Streams of Roses will start as a medium-sized gym (10,000-15,999 sqft.), we need around $388,000 to start and run the business for the first 6 months.
b. What are the Cost Involved?
- Legal (Business registration, attorney fees, and business consultation): $12,000
- Stationery etc.: $2,400
- Insurance: $96,000
- Rent: $18,600
- Computer and office equipment: $6,300
- Gymnastics Equipment: $130,000
- Miscellaneous: $2,000
c. Do You Need to Build a Facility?
Yes, our facility is 10,370 square feet in Downtown Glenview, with ample space for the equipment required for the programs. We at Streams of Roses will be leasing the space until we have enough resources to purchase a more permanent location.
Note that our monthly payment will be $3,100, which is about $4.50 per square foot. In addition, the ceiling is 17 feet high and will ensure that equipment can be used properly by athletes. This facility also has its own parking lot with enough space for numerous customers to be at the gym at once.
This facility was built in 2014, so it may require a few upgrades at first, but it’s still relatively new. Nonetheless, no excessive renovation process will take place at the location and we believe it is the perfect location for the gym to open and for the coaches and programs to establish themselves.
d. What are the Ongoing Expenses for Running a Cheerleading Gym Business?
- Maintenance Cost
- Advertising and Marketing
e. What is the Average Salary of your Staff?
- Chief Executive Office: $76,890
- Facility Manager: $64,200
- Cashier: $51,700
- Marketing and Sales Officer: $49,000
- Instructor/Trainer: $46,660
- Front Desk Officer: $38,980
- Cleaners: $23,450
f. How Do You Get Funding to Start a Cheerleading Gym Business
Note that Streams of Roses will be started, managed, and fully funded by its 3 founding members. They won’t seek outside funding, instead will generate the startup capital to ensure that have full ownership of the business.
8. Financial Projection
a. How Much Should You Charge for your product/Service?
- USASF Cheerleading Classes: $200 (Three Classes)
- MHSAA Cheerleading Classes: $160 (Three Classes)
- USAG Cheerleading Classes: $175 – $300 (Level 1- 10)
- Field Trips: $300
- Recreational Gymnastics: $75 – $200 (One – Four Classes)
- Recreational Cheerleading: $70 – $240 (One – Four Classes)
b. Sales Forecast?
- First Fiscal Year (FY1): $560,000
- Second Fiscal Year (FY2): $890,000
- Third Fiscal Year (FY3): $1.670 million
c. Estimated Profit You Will Make a Year?
At Streams of Roses, we expect to make;
- First Fiscal Year (FY1): $252,000 (45% of revenue generated)
- Second Fiscal Year (FY2): $356,000 (40% of revenue generated)
- Third Fiscal Year (FY3): $918,500 (55% of revenue generated)
d. Profit Margin of a Cheerleading Gym Business
Revenue and profit vary by size, but according to industry reports, there is a median margin of 16.5% for all clubs; 15.5% for multipurpose clubs; and 20% for fitness-only clubs.
a. How do you intend to grow and expand?
Just as we noted earlier, as our business grows and expands, we at Streams of Roses will start to build new locations and also inculcate a gym accessories retail shop into our locations. With the help of our employees, we will always strive to offer high-quality service to Glenview, Illinois, and the surrounding areas. Also with the help and loyalty from customers, we believe Streams of Roses can reach any objectives set each year.
b. Where do you intend to expand to and why?
Since our customers at Streams of Roses are middle to high-income families who have additional money to spend on extracurricular activities for their children; and moms who value discipline, strength, and fun; we at Streams of Roses will expand to target such locations that offer us the platform to reach this audience. Our choice of location includes;
- Hayward, California
- Portland, Oregon
- Oakland, California
- Denver, Colorado
- Austin, Texas
- Kent, Washington
- Santa Rosa, California
At Streams of Roses, we envision IPO as our exit strategy because it will help us realize good profit from our investment. If successful, it creates large amounts of capital in a short period as buyers will increase the share value. It also creates an easy way for our founders to receive financial returns on their investment and sell their share of the startup to the public much more easily now that the shares are free-floating on the market.