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Sport Facility Feasibility Study - Is Investing in a Fitness Business Worth It?

If you're considering investing in a gym, fitness, or sport facility, it's important to conduct a feasibility study to assess the viability of your business idea. A feasibility study will help you determine if your fitness facility will be profitable and sustainable in the long run. In this guide, we'll discuss the key factors to consider in a gym/fitness/sport facility feasibility study, including market demand, competition, location, equipment, and more.

Market Demand: One of the most important factors to consider in a gym/fitness/sport facility feasibility study is the demand for fitness services in your area. Research the demographics of your target market and determine if there is a need for a fitness facility in your community. Analyze data on local health and fitness trends and consider the potential size of your customer base. It is crutial to conduct a deep market research, or to use third party data to determine demand for the proposed gym/fitness/sport facility within the proposed location.

Competition: Another crucial factor to consider is the level of competition in your area. Research other gyms, fitness centers, and sport facilities in your community and analyze their strengths and weaknesses. Consider how you can differentiate your facility from the competition and offer unique value to your customers.

Location: The location of your facility can have a significant impact on its success. Look for a location that is easily accessible to your target market, with ample parking and visibility. Consider the cost of rent and utilities in your chosen location and factor these expenses into your financial projections.

Equipment: The type and quality of equipment you offer can make a big difference in the success of your fitness facility. Research the latest fitness trends and invest in equipment that will appeal to your target market. Consider offering a variety of equipment options to cater to different fitness preferences.

Services and Programs: The services and programs you offer can also help differentiate your fitness facility from the competition. Research the latest fitness trends and consider offering a variety of services and programs to cater to different fitness preferences. These can include personal training, group fitness classes, nutrition counseling, and more.

Financial Projections: A gym/fitness/sport facility feasibility study should also include financial projections to help you determine the potential profitability of your business. Consider the costs of equipment, rent, utilities, staffing, marketing, and other expenses, as well as potential revenue streams such as memberships, personal training, retail sales, and sponsorships.

Conclusion: Conducting a gym/fitness/sport facility feasibility study is an essential step in determining if investing in a fitness business is worth it. By analyzing market demand, competition, location, equipment, services and programs, and financial projections, you can make an informed decision about whether or not to move forward with your fitness business idea. Remember to seek out expert advice from fitness industry professionals to help you navigate the process and set your facility up for success.


To measure the financial performance of a gym/fitness/sport facility, there are several key metrics that you can track and analyze. Here are some of the most important financial metrics to consider:


Revenue: This is the total amount of money your gym/fitness/sport facility generates from all sources, including membership fees, personal training sessions, retail sales, sponsorships, and more. Tracking your revenue over time can help you identify trends and determine the effectiveness of your marketing and sales efforts.


Cost of Goods Sold (COGS): This is the cost of producing or purchasing the products and services you sell, such as gym equipment, retail merchandise, and personal training sessions. Subtracting COGS from your revenue will give you your gross profit.

Gross Profit: This is the total revenue minus the cost of goods sold. Gross profit is an important metric because it indicates how efficiently your gym/fitness/sport facility is generating revenue and managing expenses.


Operating Expenses: These are the ongoing costs of running your gym/fitness/sport facility, such as rent, utilities, insurance, payroll, and marketing expenses. Tracking your operating expenses can help you identify areas where you can reduce costs and improve profitability.

Net Profit: This is the total revenue minus all expenses, including cost of goods sold and operating expenses. Net profit is the ultimate measure of your gym/fitness/sport facility's financial success and indicates whether or not you are generating a profit.


Return on Investment (ROI): This is the percentage of your initial investment that you have earned back as profit. To calculate ROI, divide your net profit by your initial investment and multiply by 100. A higher ROI indicates a more successful investment.


Member Retention Rate: This is the percentage of members who continue to renew their memberships over a set period of time. Member retention rate is an important metric because it indicates how satisfied your members are with your facility and can help you identify areas where you can improve the member experience.


By tracking these key financial metrics on a regular basis, you can gain a deeper understanding of the financial performance of your gym/fitness/sport facility and make data-driven decisions to improve profitability and overall success.


MMCG Invest LLC is a sports facility feasibility study company, providing feasibility studies to support your SBA or USDA loan or grant request. 


Feel free to contact us to provide a preliminary analysis of your project's financial performance free of charge.

sport facility feasibility study

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Have a particular challenge you're trying to deal with? Let's discuss your project and see what we can do for you.

166 Geary St Ste 1500

San Francisco,

California, 94108

+1 (628) 225-1110

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