Sports & Fitness

Financial models related to businesses in the sport and fitness sector

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The Sports and Fitness Industry of today


Health is a big issue where a lot of people pay attention to and are ready to spend money. To live comfortably and well for a long time, also to avoid unnecessary illnesses that could affect their day to day life. That is why there are many health enthusiasts that will do sports or go to fitness centers to be healthy. This, in turn, opened up the market for the Sports and Fitness Industry and created an attractive business opportunity.

Nowadays, living life healthily and going green is mainstream and trendy. Hence, the Sports and fitness Industry have continuously and consistently grown in demand in the market. As an aftereffect, there are many businessmen, entrepreneurs, and companies willing to invest or start a business in the sports and fitness sector.

 

Sports Industry


It is undeniable that the Sports Industry is one of the largest and most popular industries that existed as of date. Wherever there are sports being played, there are numerous businesses and people organizing, managing, providing services, broadcasting, officiating, building, facilitating, promoting, financing, and producing – all related to Sports. It is no wonder that the sports industry is booming everywhere. The major reason for its success is the people and their enthusiasm regarding sports. There are many ways that people engage in sports and in some ways are touched by sports whether intentional or not. For example, when watching tv, there will be times when you came upon the sports channel or news anything related to sports. Another reason is that many people like to participate in sports for fitness and health purposes. Either daily or weekly, no matter what kind of sports activities, this qualifies already as being a consumer or a participant of the sports industry.

Here is a list of a few segments of the Sports Business Industry:

  • Participant of Sport – e.g. joining or playing a sport

  • Sporting Goods Manufacturing and Retail – producing and selling apparels, footwear, accessories

  • Sports facilities – includes the design, construction, and management

  • Athlete Management Companies

  • Professional Sports

  • Sports-related Educational Facilities – schools built with sports as the main factor

  • Outdoor Sports

  • Sports Business Advertising

  • Sports Tourism and Travel

  • Sports Betting / Gambling

  • Sports Media – TV, internet, radio, mobile or pc devices, broadcasting

  • Sports Marketing and Advertising

  • Etc.


With all these segments in the Sports Industry, it is no wonder that it’s booming and is still continuously being patronized by a majority of the market. This also provides a wide range of choices for those who want to venture in the sports industry and not be swallowed by the large competition existing within it.

 

Fitness Industry


Compared to the sports industry, the fitness industry isn’t doing as well as it used to before. This is due to the latest trend in today’s generation. People are more conscious of spending extra expenses and at the same time, the mentality of open acceptance to everything has its downsides too. The need for fitness centers or facilities isn’t as much as important so, businesses in the fitness industry are doing their best to promote it again.

With today’s technology and the convenience of today’s ways of doing things, changed so many aspects that affected many industries. Not only in a good way but also in a bad way. But, for the fitness industry, it may not be as effective as the sports industry, it is nonetheless still booming. You might be wondering, why is the fitness industry booming when it is being constantly affected by the latest trends?

Here are a few reasons on why the fitness industry is booming:

  • Reduction of Health Insurance costs – The healthier you are, the lesser it will cost you to get health insurances. Nowadays, the employers and insurers raised a trend of trimming insurance costs for those who have a healthier lifestyle. With this as a solution for those who are aware of spending money for fitness, this is a great factor that raised the number of interested market in the fitness industry. An example is giving away fitness center memberships for good health to further promote the allure of health insurances. Thus, this actually helped the fitness industry to grow more.

  • Rising demand for Healthy Food or Produce – This is also a reason why the fitness industry isn’t doing as good as before. Due to people preferring to eat more healthy foods and produce to avoid being unhealthy, the need to go to fitness centers became minimal. But this trend is just one-sided, this actually became a catalyst for healthy people to be even more healthy. Once one started the road of having a healthy lifestyle, eating healthy foods won’t be enough and looking for other ways to be healthy is an opportunity that befell the fitness industry. This trend not only affects industrial-scale processed food but also the organic or natural food industry too, as well as restaurants and establishments that prepare it. So, this trend isn’t really completely a bad thing but is also a good thing that helped the fitness industry bloom.

  • Merchandising – May it be apparels, footwear, accessories, devices, etc., millions of consumers are utilizing these things as needed to further promote a healthy lifestyle. Just like how the trend of eating healthy foods affected the decisions of the consumers, the same can be said for providing merchandise exclusive for promoting fitness. For example, footwear or clothing for exercising, makes the consumer aware of the purpose of the merchandise, thus, affecting the user whether or not to enter a fitness center to make full use of the product. The trend towards paying more attention to one’s health to be incorporated in a daily basis is still going strong and no signs of changes of going away soon, so, the fitness industry is bound to keep on booming.

  • Streaming to promote Health and Fitness – With today’s technology, a lot of things made possible and that includes the streaming of exercise classes or videos promoting fitness exercises. The convenience of the internet gave way for consumers that were hesitant to spend time traveling or having to stick to a schedule when it comes to promoting health and fitness. Some people think that online classes are turning going to a center or facility for fitness and health not needed, but in fact, some people eventually transfer to a real gym or facility as they needed better equipment that isn’t available at home. Therefore, this became a factor as to why the fitness industry is still growing.

  • Budget-friendly Gyms / Facilities – This is the solution that the fitness industry came up with due to the rise of the trend of being aware of costs. Yes, it does hurt your business a little when you lower your desired price but this strategy is actually very effective in growing your business, especially for gym memberships. If you build a budget-friendly gym, you will be bound to get more people interested in applying for membership. This will also trigger a lasting relationship between you and the regulars or old-time customers. Once you managed to create a closer relationship and patronage, eventually in time, you will be able to raise the pricing again and your members won’t mind the changes, especially when they also know the economy changes.

  • Outdoor Events Promoting Health and Fitness – This is another strategic marketing, promoting your business by conducting outdoor events or partnering with event facilitators to encourage patronage and attracting potential customers. These kinds of events usually bring a huge crowd and very popular to the masses. Due to these events, the need to prepare is high, thus, resulting in going to fitness centers or gyms to train.


Though some trends can be a big downer to most industries, this doesn’t mean that one can take advantage of them to create more opportunities to grow and develop more ways as to help your business be successful. Just like in the Fitness Industry, it is growing faster than ever, thus there are many who are interesting in investing or starting a business of their own in the fitness industry.

 

The Importance of Financial Modelling for Sports and Fitness Businesses


Business models in the sport and fitness industry focus around membership plans and users while at the same time require significant capital expenditures in machines and training equipment. Therefore, it is paramount to carefully prepare a business plan to figure out the break-even point and the expected financial return of your business. This allows you to better evaluate the financial feasibility of the business and will help you decide if it’s a worthy investment.

It’s the same for those planning to start a business in the Sports and Fitness sector. It is also critical to plan ahead of time to prepare and strategize for circumstances that will affect your business and to have good management of your business flow. Or when in need of investors and more funding, creating a financial model for your business is a must to represent or act as proof of your business’s potential profitability and feasibility, ensuring that you will be able to attract potential investors, venture capitalists, and banks to get a loan for your business.

Just like in any business, businesses in the Sports and Fitness sector is not exempt in creating a financial model for their business or investments, unless they want to take risks that might end up into a loss or insolvency.

 

Download Sports and Fitness Excel Spreadsheets


The best thing about in the era of internet, everything is made simple and accessible. Even creating financial plans or business plans can be done really fast, making the task of creating a financial model in a very efficient way. By simply finding a platform to access, you will be able to download financial model templates in excel spreadsheets, specifically designed for businesses in the sports and fitness industry.

If you’re in need of these financial model templates or Sports and Fitness Excel spreadsheets, check our list above and let us help you save your time in creating a financial model for your potential business or investment.

The offered Sports and Fitness Excel spreadsheets come with easy to edit options, helping you to smoothly apply the values needed to be calculated and analyzed and to better visualize a proper view of a business’s current and potential value. Included in the business plan or financial model templates in excel are Cash Flow Projections, Analysis, Forecast, Valuation and many more that help with the accounting, budgeting, and management of the business specifically in the Sports and Fitness Industry.

If you are looking for a specific financial model template and couldn't find it in our inventory, feel free to comment here: Missing Financial Model Templates, so that our Vendors will pick up that project and will soon add in our still growing inventory.

If you found the template but need help with customization of your preference, we also offer financial modeling services which you can avail here: Custom Financial Modeling Service.

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