Planning to Succeed: A Process for Fitness Facility Development

When it comes to building a fitness facility—for community, senior living or medical fitness centers—rigorous feasibility work is not a luxury. It is the foundation upon which successful facilities are built.

The fitness and wellness industry is experiencing rapid change. Developers today view wellness amenities as anchor destinations for mixed-use projects. Facilities may include clinical services, behavior-change programs, recovery and regeneration spaces, boutique-style training destinations and specialized offerings for youth, seniors and chronic disease populations.

Regardless of the vision that drives the scope, scale and creativity of your fitness facility project, feasibility planning discipline and diligence are essential for ensuring the concept succeeds in the real market with real consumers and real competition. Cooper Wellness Strategies offers a proprietary feasibility study process that helps ensure a fitness center’s programs and amenities deliver what the market truly needs.

Evidence Over Assumptions and Optimism

Answering a collection of fundamental questions establishes a foundation—not only for the fitness center plan, but for the feasibility study itself. Defining the pillars of that foundation provides guideposts that steer development toward successful achievement of the project’s objectives and away from distractions and biases that can result in significant off-target spending. It is essential senior stakeholders are in alignment with the definitions and purposes of these guideposts.

A critical guidepost throughout the project—from planning to opening and beyond—is the market itself. From the consumers who comprise the target audience to the size and geography of the market area to the competition—past, present and future—every element of the market must be thoroughly researched and deeply understood.

Numbers Don’t Lie—Know Them All

From market size and demographics to membership revenue modeling to program and amenity costs, every financial detail of a fitness center’s build and operation has the potential to tilt a project into the red. A feasibility study that holds up under pressure and change will include a comprehensive financial pro forma that projects revenue and profitability performance for several years. This helps set realistic timeframe expectations for membership stabilization and return on investment, enabling more informed decisions.

The Standard for Fitness Center Development

Organizations that embrace rigorous feasibility analysis and disciplined business planning create fitness centers that:

• Have sustainable operations

• Successfully compete in their defined market

• Deliver meaningful value to their communities and members

• Adapt to change in consumer expectations

While the fitness industry has no shortage of creativity or aspiration, the discipline to verify assumptions, pressure-test ideas and build facilities that are viable in the real market is necessary for success. A thoughtful, evidence-driven planning process is the surest path to developing successful fitness centers that stand the test of time.

For more details about Cooper Wellness Strategies’ feasibility planning process, download our Developing Successful Fitness Facilities position paper.

Article written by David Evans, Vice President of Cooper Wellness Strategies