Opening an Outdoor Fitness Center in Los Angeles

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Executive Summary

Opening a fitness club is a profitable chance to occupy a promising niche. Today, many residents of Los Angeles of all ages want to keep themselves in good shape, and therefore places where they can do this, are in demand and generate income. This type of business involves certain risks and will require serious investments. However, at the same time, the amount of profit will also be rather big. This report contains recommendations on how to open a fitness club in Los Angeles and what nuances should be taken into account. It will contain a description of the features of the business itself, the services provided and the location. Moreover, this report will present both long-term and short-term business goals. Next, a comparative analysis with competitors will be carried out and the financial side of the issue will be sanctified.

Business Description

Products and Services Provided

The fitness club will provide various sports services: various classes will be held in groups and individually with a coach. The list of classes will include aerobics, step aerobics, yoga, dancing, and strength or stretching training in the fitness room. Clients will be able to sign up for training over the phone or through the fitness club’s website. In the future, the range of services will expand; not only various types of group training but also other activities will be added to them. Moreover, sports nutrition (for example, protein bars or wholegrain bread sandwiches), drinks and equipment for phones (headphones, chargers) will be sold directly in the training hall.


In order to open and at the same time organize a profitable work of fitness club, it is necessary, first of all, to determine a favorable location. Small and medium-sized fitness clubs are best opened in residential areas, where their entire target audience is actually concentrated. In the residential areas of Los Angeles, the fitness club will mainly attract people, including housewives living close to it. The choice of such a location of center will be based on the fact that people, as a rule, attend fitness in residential areas, closer to home. Industrial and administrative zones of the city can be excluded in the search for suitable premises. A good option for renting a suitable room is in an area under construction, which should be implemented soon. The rental price will be low and there is an opportunity to be the first, ahead of the competition.

Business Objectives

Short-Term Goals

The main short-term goal is to open a fitness center in a residential area of Los Angeles to provide sports services and sell related products. Short-term goals also include the development of a permanent clientele and making a profit from the activity. Short-term financing, namely its ideas and options, occupies an important place in the list of short-term goals (Kwon et al., 2021). Moreover, short-term goals should include the selection and purchase of necessary equipment, recruitment and selection of suppliers of related sporting goods. It will also be important to launch an advertising campaign to promote fitness center services both online and offline.

Long-Term Goals

The long-term goal is to gradually expand the fitness center’s range of services and products. This category of goals also includes the expansion of business through the opening of new establishments. A significant goal will be a constant increase in profitability which is the revenue from the sale of goods and services, as well as covering the costs of delivery, advertising and staff work. The long-term goal will also be to maintain a high level of productivity, for which you will have to monitor the condition of the equipment and the skills of the staff (Riseth et al., 2019). High-quality service is able to retain customers and increase revenue, so increasing customer focus also refers to long-term goals. Moreover, the goal will be to monitor competitors, with the help of which the promotion strategy will be updated regularly.

Market Analysis


The fitness services market is a segment of the health services market which is now growing rapidly in the United States. At the same time, the rapid development of the sports and wellness services market was promoted by the fashion for health, a healthy lifestyle. Most of the fitness centers are concentrated in megacities, such as Los Angeles, and in the provinces, this niche is practically not occupied. According to market research, more than half of the American fitness services market has branches in Los Angeles (Fei, 2019). The greatest competition is observed among fitness centers with a gym, aerobics and shaping. In addition, due to the high profitability of fitness clubs in the premium segment, the highest level of competition is observed among the establishments of this price category in Los Angeles.


The features that differentiate this business from similar ones are primarily the range of services. This fitness center will have training sessions using bicycle and cardio equipment, for which there is fairly low competition. This may be due to the weak development of these types of services in fitness clubs. In addition, more than half of the turnover of the fitness market in Los Angeles is accounted for by clubs of the highest category. It is in this niche that most fitness networks work. However, this fitness center will belong to the economy price segment, in which there is quite a little competition.

Description of Products and Services

Additional Details of Products

The fitness room will sell drinks, sports nutrition and equipment for phones. Since most people prefer to play sports to music, headphones to replace suddenly out of order can be a marketable commodity. Moreover, when actively engaged in sports, thirst arises, which causes the sale of drinks. These will be both drinks from the refrigerator and at room temperature. The range of drinks will be wide: sparkling and still water, protein shakes, energy drinks, juices and coffee. Among sports snacks, bars and ready-made protein mixes for muscle growth will prevail. Special preparations will also be presented, such as fat burners, vitamins for joints and ligaments or vasodilatation. Healthy food in containers will also be presented, such as whole-grain bread sandwiches, steamed buckwheat and rice, and boiled chicken breast.

Additional Details of Services

Group classes will include up to 30 people, and personal classes will be held one-on-one with a coach. The aerobics training will be aimed at improving the functioning of the cardiovascular system and developing coordination. Cardio workouts will be conducted using a step platform. A strength program designed to increase the strength endurance of all major muscle groups will also be presented. Additional equipment will be used in the classes: dumbbells, shock absorbers, various weights, etc. Yoga and stretching programs will be soft and meditative workouts that effectively affect both the physical body and the psycho-emotional state of a person. As for dance classes, groups on oriental, Latin dances and strip plastic will be opened.

Financial Management

Breakdown of Costs

Monthly costs will be associated with the rental of premises, and one-time costs will be associated with the deposit and the drafting and signing of a lease agreement. Rent is the main expense item of the investment plan. Since the rented premises are located in a residential area, the rent will be half as much as in the center. It is more profitable to look for a room with a free layout: it is cheaper to build new walls than to redesign old ones. In order for customers to enjoy training, the equipment must be serviceable. Since the fitness center belongs to economy class, you can purchase used equipment, but monthly costs for its repair will be necessary. A separate inventory in the expense list is furniture, which includes lockers and benches for changing rooms, showers and mirrors.

Projected Revenues

Season tickets and individual training will bring the main earnings. It is also profitable to sell water and sports nutrition, for which there is a high margin. The sale of oxygen cocktails and special mixtures for increasing muscle mass will be a very good tool for making a profit. The ability to work almost around the clock and daily will allow earning income continuously. High demand and convenient location will ensure a constant flow of customers, and Bring a friend and get a discount promotion will expand the customer base. To pass the break-even point, it is necessary that about 7 people visit the fitness center every day (Scott, 2022). Income from other clients can be recorded in the profit item, as it will cover expenses.


Fei, L. (2019). Strategy, rights and industry: The institutional guarantee of the realization of national fitness. Canadian Social Science, 15(10), 74-82.

Kwon, J. Y., Kim, J. S., & Park, T. S. (2021). Analysis of crisis management of a Korean fitness center during the Covid-19 pandemic. Preprints, 15(4), 1-12.

Riseth, L., Nøst, T. H., Nilsen, T. I., & Steinsbekk, A. (2019). Long-term members’ use of fitness centers: A qualitative study. BMC Sports Science, Medicine and Rehabilitation, 11(2), 11-19.

Scott, C. J. (2022). Live cycle delight: An urban fitness boutique fights to stay alive. Entrepreneurship Education and Pedagogy, 1(7), 1-12.

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BusinessEssay. "Opening an Outdoor Fitness Center in Los Angeles." January 4, 2023.