Business Plan for a Gym
Business Plan for a Gym
Executive Summary
The Mountain Fitness Gym is a thriving business-persons gym that focuses on the fitness of all the people from different areas. The gym is famous because it caters for the needs of all the people in the community. However, more than fifty percent of our clients are old people who aspire to be physically fit. The center also caters for the fitness needs of the young people. Currently, the gym has more than 1200 clients who have subscribed to be the gym members. For one to become a member of the gym, he or she should part with a membership fee of $ 1,000 yearly. For the next five years, the Mountain Fitness Gym aspires to add another 800 members from different backgrounds.
One of the key characteristics of the Mountain Fitness Gym is the ability to offer reasonably priced fitness services to all the clients. The gym has increased the size of its fitness center and currently, there are more fitness equipment. It is, therefore, able to cater for the needs of all the members who visit the gym. Many members who are not able to buy the fitness equipment in their homes can come to the center and with a small fee, they are in a position to achieve their fitness dreams (Thompson, 2010). For the parents who would want to see their children grow healthy and fit, they are advised to bring them to the Mountain Fitness Gym. The gym also values people's culture, and it is through this that we offer the fitness services that respects the cultural values of all the people. For the athletes, there are services that are geared towards their fitness, and this makes them to effective compete with their competitors. On the other hand, the gym also has specialized equipment that assists the footballers to exercise and be fit in the football pitch. Additionally, there are also equipment that gathers the needs of those who work in offices and would like to exercise during their free time. The gym is a health center that addresses the needs of both men and women at a personalized environment where they can pursue their fitness goals.
The center prepares the clients for success through the provision of the best weight-management program. Furthermore, the center also offers responsible, effective, weight-management program. This program is being offered by our staff confidently.
Mountain Fitness Gym in future will expand and create a large gym facility. Additionally, new equipment will be purchased for high-quality fitness services. Currently, the gym offers its services in an urban center but in future, it aims at providing the services to the rural people. All the expansions of the gym will be funded through the short-term loan.
Business History
After undertaking the feasibility study in the community, it was found out that most people require fitness exercise. The current emerging incurable diseases are associated with the lack of exercises by the people. Those who work in offices take a lot of time sitting, and this exposes them to unhealthy conditions. The feasibility study also found out the community where the gym is set did not have many gym centers that offered exercise and fitness facilities. It was thus important for the owners of the gym to come up with the gym to cater for the needs of members within and from outside that community. Initially the center started as an exercise field before the fitness idea came into our minds (McKeever, 2002). It had served the needs of many people who hail from the Mountain society before it was changed into the fitness center. The field where the Mountain Fitness Gym is set was once a football pitch. It is in this area that many football teams came to play as an exercise. It catered the needs of the footballers and in turn improve their fitness. Those who used to play in the field were health and fit, and they were successful in their endeavors. Through their success, many people wanted to exercise in that field. At one point in time, the area was also used by the athletes to conduct their exercises. Currently, the gym also provides many programs that are geared towards promoting the athletes. Initially, the center used to be an exercise center where it provided exercise and fitness programs only. After undertaking needs assessment program, the gym management found out that it is important for the gym to provide other programs such as training programs. The gym thus came up with the fitness training program where people are taught the importance of engaging in fitness exercises.
The mission of the gym is as follows:
Creates a fitness center that promotes confidence in the customers
Promotes the client success in meeting the fitness goals
Celebrates the success of the clients and also help them set their fitness goals and objectives
Objectives
The Mountain Fitness Gym aspires to grow and become the best business center that caters for the needs of all the clients regardless of their financial positions.
The center also aims to exceed 60% class capacity by the end of the first year after its inception and operation
It also aims at increasing its membership by more than 20% by the end of the second year of operation.
Company Summary
Mountain Fitness Gym is a fitness club that offers fitness classes, exercise equipment, and a weight reduction program. The program is significant in that it operates a general partnership business. John Abrahams will manage the daily operations of the gym while William Brook will oversee the accounting services.
Company Ownership
Mountain Fitness Gym will be co-owned by two people, but the shares will be open to all the people. Members can buy shares, and this will enable them to benefit from the dividend that will be offered yearly.
Start-up Summary
The start-up expenses for the gym will be sort from the financial institutions such as banks and other microfinance institutions. Furthermore, friends will also be approached to finance the start-up operations. The expenses will focus primarily on exercise and fitness equipment for all the classes within the gym. The start-up capital will amount to $ 150, 000. The two owners will each contribute a total of $ 50,000 while the rest will be financed obtained from the financial institutions and banks (Thompson, 2010).
Business Environment
The Mountain Fitness Gym is set in the urban environments. The urban environment is considered a potential a source of customers for the gym. It is in this environment that many workers who stay in their offices for seven days would want to improve their fitness. Majority of the people who work indoors after staying indoors for a length of time would want to exercise so as to reveal the pressure and stress of working or staying indoors. Furthermore, the urban center is a potential source of customers since this is where many rich people are found. The gym has the potential to grow as majority of the people will subscribe as members because they are endowed with financial resources (McKeever, 2002). After it's established, the gym has witnessed many customers. Therefore, the current membership is double the initial membership as more customers have subscribed due to their endowment in the financial resources. If the gym had been set in the rural areas, the members would be have been minimal since majority of the rural people do not understand the importance of engaging in the fitness exercises. Additionally, the rural people are not financially endowed like the urban people.
What is more, the gym is set in urban areas since it is accessible to many people from different geographical areas. The infrastructure in the Mountain community is well developed such that many people will be in a position to drive safely into the gym center. The gym has also integrated the technology such that the customers can book for their vacancy through online platforms. The training is also offered through online, and thus; it has been seen as an important opportunity for the members who are unable to physically reach the Mountain Fitness Gym. The environment of the gym is good and caters the needs of all the people. The gym environment is clean, and fresh air is available. The rooms are well ventilated, and this provides cool conditions within the gym. Furthermore, there are many trees in the compound, and this also boosts the fresh air in the compound. Additionally, there is a restaurant in the center where customers can buy food at affordable prices.
Products/ Services
The Mountain Fitness Gym mainly offers the fitness exercises and services. The services that are provided by the Mountain Fitness Gym are affordable to all the customers. These services are primarily geared towards achieving the fitness and health of the customers. The services offered by the center are swimming. The center has an expansive swimming pool where customers can engage in their swimming exercises. Water is treated and thus the customers should not worry about their health. Furthermore, in the case of an emergency, we have the response team who will attend the emergency cases. The gym is also different from other gyms since we provide swimming costumes to the customers. The center also provides tennis games which are geared towards providing fitness to the football and tennis ball players. Tennis is also important in that any customer who visits the gym can play regardless of their age. The center also offers the fitness area which is fitted with cardiovascular and weight training equipment. This center is important since all the customers can engage in fitness exercises.
Another service that is being offered by the center is the court sports which improves the fitness and health of the customers. We also have massage services which are the latest service developed by management. This service aims at improving the health and fitness of the old people and those who have physical problems (McKeever, 2002). Another services offered is the physical therapy that improves customer’s muscles and wellbeing. Mountain Fitness Gym also provides food and beverages as their main products to the customers. It is a center that provides services 24 hours, seven days a week and thus customers can receive their services.
Type-Incubator, accelerator, or boot strap
Before the actual establishment of the gym, it underwent several incubation programs. After hatching of the gym idea, a feasibility study was conducted. The feasibility study found out that there is need for the gym in the Mountain community. Since gym did not have experienced personnel, it had to sort incubation from outside experienced staff. The incubation program was significant in knowing the management strategies, how to finance the business and how to fully enter the market and gain market share. The incubation program was also important since it generated the challenges that could be faced and how those challenges could be addressed.
Evaluation of the Present Market
The Mountain city community population has grown for the last four years. The growth of population is significant to the Mountain Fitness Gym center as it indicates the growth of customers to the gym. The increase of population in the city is fueled by the improved development in the town as a result of a high number of emerging technology companies. The professionals who work in these companies and other companies within the city has increased the number of customers to the Mountain Fitness Gym. The Mountain Fitness Gym focuses majorly on the young urban professionals as its primary customers. Furthermore, it also targets to improve the health and fitness of the old people within and outside the city center. Out of the targeted customers, the current customers form 80% of the total targeted customers by the center. It shows that the center is gaining momentum, and shortly, it will have attained its target regarding the market.
Pitfalls of the Services/Products
The major pitfalls in the services being offered by the company is seen from those being offered by the competitors. The services being offered will face stiff competition from the competitors, and thus, it makes it difficult for the services to gain full market. When the company started, it was offering inferior services from those being offered by other gyms. Thus, the gaining of momentum by the company was difficult, and it had to strive hard to gain the current number of customers. The center is also facing financial challenges and thus it has not been possible for the company to provide competitive services like those being offered by other companies.
Back-up Plan for Failure
The Mountain Fitness Gym has strategies that enable it to address the problems that might arise. The center has set aside some money that is used to address the financial challenge. In case the center runs short of the financial resources for the smooth operations, it will be in a position to use the back-up money. The equipment used in the gym are electric operated. Many at times some centers offering the same services have been faced by blackouts. The Mountain Fitness Gym does not face the blackout issue since it has massive generators that are used as a back-up for the electricity. Therefore, in the case of electricity failure, the generation will supply the electricity and thus the daily operations smoothly run as usual.
Competition
In the past, the business has been facing steep competition. As soon as it was established, there were many gyms offering the same services, and thus, it made it difficult for the gym to beat the competition. Many customers in the past have been underrating the Mountain Fitness Gym citing that it provides poor quality services unlike those offered by other centers such Brook Fitness Center. After the center came up with strategies to improve the quality of its services, it has been in the competitive age for some time. The current competition is majorly seen from those companies that offer technological competitive services. However, the center can compete favorably with its competitors after improving its strategic plans.
Marketing Plan
The marketing strategy of the company is significant as it reflects the needs of its customers. It focuses on the commercialization of its products and services to many regions within and outside the city. The most important marketing strategy is that on every Sunday morning, the gym is open for anyone at no fee. Furthermore, on Friday evening, the center is open for children and couples who can exercise without paying any fee. Family fun day is provided by the center on every Sunday from morning to evening which becomes a marketing strategy for the center as well.
The business focuses on the sales of $ 60,000 to $ 80,000 monthly. The sales will be generated from the services which include the membership fee, the massage fee, physical therapy fee, swimming fee and also the food and beverages fee (Pinson, 2008).
Management and Organization
Since the center is a partnership company, its management will reflect the business management and organization. There will be a general manager and his or her assistant. The human resources will be headed by the human resource manager who will be supported by the human resource planning manager. There will also be the financial manager who will oversee the financial department and will be assisted by about four accountants. The information center will be manned by the technology and information manager. The gym will also have other subordinate staff and workers.
Business Resources
The resources of the gym are majorly the human resources. These will be the fitness specialists who will be conducting the fitness exercises. Furthermore, the equipment is also important resources to the center and will majorly constitute the gym equipment. All the resources will be manned by the general manager who will ensure that they are appropriately used. The resources of the company are necessary, and thus, all the employees of the company will have the responsibility of ensuring their safe use. Other infrastructure such as buildings will also form the resources of the center.
Financial Plan
The company will require about $ 150, 000 that will be used for daily operations and long-term planning. The owners of the center will contribute $ 50,000 each. The other remaining amount will be sort as short-term loans from financial institutions and other microfinance institutions (Pinson, 2008). The finances will be broken down as follows
Start-up expenses$ 70,000
Start-up assets to fund$ 55,000
Liabilities $ 10,000
Other Expenses$ 15,000
The center will sell its shares, and the fee from the shares will be used to fund emerging expenses. This will ensure that the center runs smoothly and offers quality services at affordable rates.
References
McKeever, M. P. (2002). How to write a business plan. Berkeley, CA: Nolo.
Pinson, L. (2008). Anatomy of a business plan: The step-by-step guide to building your business and securing your company's future. Tustin, CA: Out of Your Mind and Into the Marketplace.
Thompson, C. (2010). What a great idea! 2.0: Unlocking your creativity in business and in life. Keswick, VA? Creative Management Group.
