L-W-F Is a Full-Time Service Gym - Business Plan Example

BUSINESS PLAN ABOUT GYM Content: i Executive Summary 3 Introduction – History and background 4 2.Market Research 4 3. Product or service 6 4.Legal obligations 6 5.Marketing strategy 7 6. Sales activity plan 8 7.Pricing and production costs 8 8.SWOT analysis 9 9.Contingency plans 9 10.Staffing requirements – recruitment and training 10 11.Resource requirements 10 12.Sources of funding and investment 11 13. Personal survival statement 12 14. Conclusion/summary 12 15. Appendixes 12 Cash flow forecast and other financial statements 12 Management Summary 14 Financial Plan 16 General Assumption 17 Projected Cash Flow 17 Projected Profit & Loss and the Gross Margin 18 16. References 20 i Executive Summary L-W-F gym is a full time service Gym that is dedicated to provide superior services to the clients in a manner that will satisfy their needs. It works on the basis of constantly providing quality services that are satisfactory to the clients at affordable costs. Its aim is to render exceptional quality services and set an environment that is comfortable to the clients and even the staff members. L-W-F gym management and its staff work with the focus of creating a customer friendly environment by considering the diversity of people’s ideas, cultures and preferences. As the name almost suggests, L-W-F gym focuses on promoting environmental awareness in its service to the larger community and the preservation of nature. The Gym is set to benefit the local community by providing a 15-hour GYM service at affordable rates as well as expand the operations beyond the South Wales. Our Mission: The mission of L-W-F gym is to offer and supply products and services that will enhance the physical fitness and mental relaxation of the clients as this promotes positive living in the society. Our Motto: "The Trend Begins with L-W-F gym!" This venture has just been started at the right time and in the best location. After a relentless exploration of possible sites for eight months, it was established the Newport Road was the best location. The spirit of hard work and undying efforts of this noble idea was facilitated by the high demand from our customers at friendship level. Besides, the recruitment of highly qualified physical fitness professionals to support the venture made it a potential creation. To attain our goals, L-W-F gym seeks to source additional finances through loans. This loan will be repaid from the firm’s revenues and the collateral security for its acquisition will rely on the existing assets, personal guarantors of the business owners, the exceptional goal oriented and experienced staff. 1. Introduction – History and background The business will be called L-W-F. Gym workout and it would be located in Newport Road, Cardiff, CF23, South Wales. The company was set up on Mar 2014. The company will have 23 staff. One planning manager, one resources manager, one operations manager, four nurses, eight training staff, 2 cooker and six supervising trainers. The club spent £15000. The company has 23 staffs.One planning manager, one resources manager, one operations manager, one nurse, one training staff, 1 cooker and two trainers. We plan to have a Fax number as well as several email addresses with different email service providers. The emails through which our company can be accessed include: L-W-F. Gym workout @gmail.com, additionally, we will set up a company website in order to enhance our online marketing strategies as well as advertise any job opportunities that exist in our company (Clifford 33). The website will also be an appropriate tool to do e-procurement as well as build our company image among the potential clients and creditors. 2. Market Research Our market research was based on primary approach and secondary mix to identify the existing demand gap. According to the report given various sources of data about Wales shows that it has the biggest problem to do with physical health deficiency among the population hence the need of gym. Market research through observations, interviews and secondary data shows that 2/3 of people in Wales about early 40s are overweight or obese in 2013, Nov 7th. It is means that in Wales people need more physical activities in their life. In regard to Market Size and according to report, Obesity still remain Wales biggest problem, says latest Welsh Health Survey, in 2012,sep 20th , More than a third of people in Wales saying their day-to-day activities are limited by a disability or health problem.(Wales Online, 2012). Cardiff, population 348,493 (Local authority mid-year estimate 2012) so in 2013, nearly 2/3 population of Cardiff is almost 237,600 So , based on these surveys, the trend is increasing, the target market size is considerable, and according to data, there are more than 50 gyms in Cardiff. This formed the basis of our venture into this business as it will exploit this emerging market. A. Social Network Because social networks most of these are free for people, and rapid transfer information. We can use these to connect with our current and potential customers Five Advantages of Social Networking 1. Worldwide Connectivity 2. Commonality of Interest 3. Real-Time Information Sharing 4. Free Advertising 5. Increased News Cycle Speed B. Local media, newspapers Print Local newspaper advertising is often very effective. Weekly tabloid community newspapers typically have affordable advertising rates and target residents and visitors in a localized area. Classified advertising is most affordable, and text-only ads can be charged either by the word or by the "line" or space that they take up. If charged by the line, use abbreviations to keep cost to a minimum. Expect to pay about 10 to 20 cents per word for classified advertising. Display ads charge by the newspapers column width and ad height in inches. Column width varies from publication to publication, which may be between about 1-1/2 inches to 3 inches. Ad rates are charged by the "column inch," that is, 1 column wide by 1 inch tall. Rates may span from £5 to £9 per column inch for a weekly tabloid newspaper. The cost of an ad that is 2 columns wide by 2 inches tall, typically about the size of a standard business card, would be calculated by multiplying the cost for a column inch by 2 for the width and then again by 2 for the height. At £6 per column inch, this ad would run £26. Discounts are offered for multiple runs. Radio Many people listen to radio stations in their car and at work and tend to have a favorite local station to which they are loyal listeners. Budgeting £325 to £650 for local radio advertising can usually buy a lot of air time over the period of one or two months. Ads are sold by time, usually in 30- or 60-second spots, and price is determined by the "cost per thousand" of listeners. Radio prices can be very reasonable, as little as £1.20 per thousand or even less. With radio, you can also target your listeners, reaching specific audiences such as females, sports enthusiasts, teens or those interested in religious messages. Other Options There are dozens of ways to advertise your business locally. The phone books yellow pages are expensive, and a year commitment is required, but they can be effective for certain types of businesses and services. Church bulletins, school yearbooks and local chamber of commerce directories are inexpensive ways to not only promote your business, but to show your support of the organization. Billboard advertising ranges from about £455 to £1,625 a month, but offers 24 hours a day, seven days a week visibility to your ad. If you have a website, the Internet can also be used to market your business. To get a significant response locally you will need to use other forms of local advertising such as newspapers, radio and TV to entice people to visit it online. 3. Product or service The gym workout has the following activities: Fitness exercises with central emphasis on cardio classes that help to strengthen the heart and lungs. This will also help in burning calories fast, reduce stress, trim off fat, lower cholesterol, lessen risks of heart diseases and improve customers’ health. Nutritional meals services and dance classes are a great way to keep people’s body in perfect tone and revive ones activeness. While dancing, one can burn calories, enjoy the energy themed music, and keep fit at the same time. Yoga Classes can be a lot of fun as long as one chooses the right type of yoga for a specific age and fitness level. Gentle stretching and a little quiet meditation can really give customers a day a lift. Yoga classes are to be offered in three levels i.e. normal level, medium level, advanced level with admission of 12, 10 and 8 respectively after every 2hrs. 4. Legal obligations Reimburse the employees for work-related expenses incurred, e.g. buying some material for emergency use in the gym, using personal money to cover up for a client who feels late and may not go through the refund process. Ensure that there is a safe working environment by buying good and fitting trainer’s kits, fitting fire extinguishers and putting in place quality aeration in the gym facility. Abstain from acting in a way that would significantly damage an employees reputation or cause psychological distress Provide the government with relevant documents for honesty in taxation and avoid provision of false or reference that is misleading e.g. tax remittance certificate, duly signed business permit, annual books of accounts. Business Aims & Objectives The aims of this business will constitute; To provide the best quality service to customers on physical fitness and health at affordable cost that will ensure all persons of different social classes are taken care of. This will be achieved through skilled training and understanding the diverse physical needs of various age groups by putting them in different classes. To exploit the market gap that remains in the emerging campaign towards increased healthcare quality and physical exercise. This would be achieved through collecting customer feedback and offering what they missed from the existing gyms. To give the customers an experience of Yoga that is critical in boosting the quality of physical health across various age groups in the society. This would be done by consistent collective brainstorming on how to keep improving the techniques of the assigned trainers. 5. Marketing strategy The Gym will use the customers who profess satisfaction from services they are offered to market itself. When clients leave the premise with services that meets the desires and the result is observable within the community, people will enquire where the service or product was obtained and this will go a long way in selling our image and promoting our business. This simply means that L-W-F Gym will get clients who have been referred by others. From our market investigation, Physical health and fitness business doesn’t require a lot of promotional campaign but instead it requires well-structured oral advertisement of one on one. In support of this strategy L-W-F Gym will offer special services as a mode of marketing mix. Customers who are already served will be encouraged to refer others and get discounts as a reward. There will also be a lottery draw for a trip to the annual global physical health contest venue. In this case the client will be given cards to drop each time they come to be served ,to purchase or refer a new client and the higher the number of cards, the greater the chances of winning. This method will put the Gym ahead of others. Our firm intends to reach a wide audience through the social media, firm’s website and the newspapers. This is mainly because the social media is popular among a large portion of the population as compared to other advertising modes (Humphrey 35). Additionally, advertising our services through our official company website will provide extra elaborations into the kind of services we offer. Furthermore, it is less costly to use online advertising. There has three ways to promotion The special way to get costumers is sponsor activities At the beginning we can sponsor small-scale sports activities on communities Such as football, basketball among others. It can make influence in all the people of the communities. And we can develop the members in communities. And the cost will not be very high specific cost needs research. 6. Sales activity plan The sales strategy is weight loss services as critical attractive campaign. The focus will be centered towards people who need to lose weight and keep fit, through the membership system. This would be achieved in respect of a year, six months, and one month. There will also be a personal trainer services, but also accept individual. Different members of the services are different. Personal trainer members can enjoy special meals and cookbook. In every weekend we have big class to teach aerobics such as yoga. This will serve as a significant tool towards sales activity plan. 7. Pricing and production costs L-W-F Gym seeks to set a fair pricing policy that is considerate to the customers and its production cost. Effective achievement of this concept is made possible through; Setting a price line that is profitable to the firm and slightly lower than the prevailing market competitors so that the interests of both the firm and the customers are taken care of. This cost cutting strategy will be based on continuous innovation through dealing in factory-direct contract & importation of input factors like physical training equipment. Use of contract employees for non-major business activities so that the firm can transfer this in form of lower prices to the consumers.In regard to other gym clubs we will set a price that would strikingly be below the trending prices is £21.99 per week member, £115 half of the year member, £220 year member, £30 one hour for personal trainer and each time is £5.99. If people have a member friend who makes them come they can get discount when they come first time and has three times to try for free. 8. SWOT analysis As a gym company, we would be compelled to conduct regular SWOT analysis to help us strategies our marketing to explore new areas whose potential is still untapped. Strengths There are many different types of fitness equipment in our gym. Customers are also able to provide a healthy meal and a personal trainer. We have a reward system in every month. People who lose the highest weight one month will get a bonus and the winner who loss most weight in this year can get a free ticket to European. We have a perfect customer service staff and managers. A comparative case with other Gyms in the region doesn’t offer this and gives as a competitive edge as far as customer command is concerned. Weaknesses Establishing this company when our funds are limited poses significant amount of barrier towards entry into the industry. This includes inadequate money to buy high quality equipment that would boost their competitive. As the company is a new company, there is no established reputation, few people know our firm and customer acceptance is not high. With the internal problem like limited management experience and other business success aspects still need to improve as we compete against the already established gyms. Opportunities With economic development and improving consumer demand with many people paying more attention to health, to our company provides a lot of space which will attract significant market base. Fitness industry can help us continue to improve and expand market. With the increasing cases of obesity and old age related challenges, we will likely enjoy improved turnover. Threats In Wales there are a lot of gyms which poses significant barrier to entry or competitive threat. Some are cheap and poses pricing challenge while others offer comparatively high quality services. These are strong competitor for our company. 9. Contingency plans We will put in place safety measures like first aid room to help any of our clients that may be a victim of any accident while in our premises We plan to insure our registered members against health and fitness related issues Wales is an economically active region and will requires us to pursue strict legal adherence to keep us sustain and meet the set requirements and expectation of the customers. 10. Staffing requirements – recruitment and training To oversee its operations, a personnel planner (a receptionist) will be employed in order to receive customers and offer the guide on the range of products and services L-W-F gym offers. This enlists 2 human resource managers: One planning manager, one resources manager, one operations manager, four nurses, eight training staff, 2 cooker and six supervising trainers. Except the receptionist, the rest of the staff will be employed on contract, and given a sliding commission rate based on their personal performance. As the business grow, L-W-F gym plans to hire a Yoga technician in order to expand on the quality of the services it offers to its esteemed customers. The business will then expand its workforce as it continues to establish itself in the market. In the first year, part-time employees will be paid commissions which are estimated at £ 15,000. 11. Resource requirements Office Space: Newport Road, Cardiff, CF23 The offices are located on Newport Road, the price from £53.85 per week; we will rent it for one year. Total price of rent office is £2612unit from 10 to 500 sq ft. This centre offers serviced offices that are brand new, carpeted, centrally heated and complete with Biometric fingerprint locks. The centre can supply used desks, chairs, filing cabinets, telephones, ADSL modems, printers, and other office equipment at no charge. Office users benefit from free use of our high-tech conference room, and luxury kitchen with TV. There is even a free Internet customer lounge and waiting area. Amenities Car parking Videoconferencing Broadband Internet / T1 24-hour access ISDN Security system Meeting rooms IT support Modern building Disabled facilities (DDA/ASA compliant) Close to mainline train station Cat II lighting Reception services Clearer fee Two Pro Fitness Rowing Machine. £69.99*2 Pro Fitness Exercise Bike. £59.49*2 Pro Fitness Dumbbell Tree - 9kg. £19.99*1 Davina Aerobic Step. £16.19 *1 Adidas Adjustable Hurdle. £14.99*1 York Vinyl Kettlebell - 6kg. £14.99*2 Pro Fitness Vinyl Dumbbell Set - 15kg. £14.99*1 Pro Fitness Gym Ball - 65cm. £6.99*1 Maximuscle Leg Press Exercise Bench Attachment. £19.99*1 Davina Magnetic 2 in 1 Cross Trainer and Exercise Bike. £160.69*2 York Quest Rowing Machine. £113.89 *1 Pro Power Home Gym. £109.99*1 York Quest Magnetic Cross Trainer. £199.99*1 York Endeavour Treadmill. £329.99 *4 About £3000 12. Sources of funding and investment To attain our goals, L-W-F Gym seeks to source additional finances through loans on top of contribution from owners. This loan will be repaid from the firm’s revenues and the collateral security for its acquisition will rely on the existing assets, personal guarantors of the business owners, the exceptional goal oriented and experienced staff. 13. Personal survival statement The firm will focus on sustainable quality services at all times at the affordable prices in the spirit of service to humanity. 14. Conclusion/summary L-W-F Gym is headed to command greater market share as it expands its horizon beyond the city and will offer a comparatively cheaper option for those who seek physical health and fitness. Considering the elaborate outlay of the business plan, it is important to note that L-W-F Gym will be competitive and realize greater profits and better public image. 15. Appendixes Cash flow forecast and other financial statements Sales Forecast L-W-F gym projected revenues for a period of three years is provided in the charts and tables below. In summary, L-W-F gym expects a steady increase in the volume of projected revenues for the three year period. This would be possible as the business will continue to build a strong reputation and image among the public. In the second year of operation, the business plans to introduce new product and services as a way of increasing its revenue. These anticipated products and services over the second and third years would be essential in increasing the level of revenues and service delivery. NB: direct cost related to sales or services are not accounted for in this table but instead, only direct costs for products are included. Revenue Forecast (a 3-year plan) Revenue (£) Year 1 Year 2 Year 3 physical fitness 49,000 52,000 60,000 Physical health tests 45,000 50,000 58,000 Yoga class (normal level) 22,000 `23,500 27,000 Yoga class (medium level) 18,500 21,000 23,000 Yoga class (advanced level) 45,000 51,000 62,000 Massage 14,000 21,000 23,000 Gross revenue 193,500 195,000 253,000 Direct sales cost 11,000 9,500 14,000 Products’ costs 25,000 28,000 30,000 Net revenue 157,500 157,500 209,000 This figures show that the business will report a constant net revenues figured over the first two years. However, in the third year after establishing itself, L-W-F gym will post a massive increase in revenue volume, hence, more net profits. Milestones This is a sample charts and tables showing the details of the actual programs and activities which L-W-F gym plans to undertake in a given financial period. These programs are designed such that they are controlled and regulated by specific managers and with a restricted financial budget. Through the year, L-W-F gym will keep track of its implementation against the plans, and do the reporting upon completion of these planned activities. Milestones Duration (months) Budget (£) Manager Business plan 1 100 Owner Acquiring Financial Resources 2 200 Owner Grand opening 1 day 300 All the staff Marketing programs 1 1000 Marketing manager Plans vs. Reviews 1 0 Planner & owner Break-even 1 0 Financial manager Hiring staff 1 150 Human resource Business plan upgrading 1 week 100 All the staff Total £1,850 Management Summary L-W-F gym will be structured, managed, and organized in an innovative and creative fashion in order to generate higher levels of profitability index as well as satisfy the diverse need of its customer. Besides, the management will focus on creating a positive and conducive working environment to foster economic satisfaction of its staff and facilitate personal development among the staff. The employees will be trained on a regular basis to build their knowledge and skills on the range of products and services the business offers to its customers. L-W-F gym will consider offering employment packages and benefits including vacations, insurance cover, and healthcare to its staff, depending on the economic growth and other financial bearings. To enhance its competence and competitiveness, L-W-F gym will only employ those persons with at least two years’ experience and must have specialized in beauty therapy and solon management. Personnel plan Year 1 Year 2 Year 3 Owners 24,000 24,500 25,000 Receptionist 12,000 13,000 15,000 Yoga Tech 8,000 10,000 12,000 Nurses Part time 12,000 14,000 Massage Specialist Part time 15,000 15,000 Trainers Part-time 30,000 50,000 Total 44,000 104,500 131,000 Financial Plan This being a profit making entity, our core objection is to remain profitable from the onset to the end. However, over the first few months of its operations, L-W-F gym will not post high profitability index until it establish itself in the market. The business will generate its start-up capital from owner’s contribution, financial lending, family and friends’ contribution. Important Assumptions The financial operations of L-W-F gym are laid on the following assumptions: i. The annual growth rate for revenues is estimated at 15% from first to their quarter. In the last quarter of the year, the revenues will increase to 20%. ii. Provision for depreciation of the fixed assets will be accounted for in the financial records at 12% per annum. iii. The costs of goods sold are excluded in calculating the net sales. Other expenses are used in working the net sales figures for each accounting period. iv. Our products and services sales are estimated using the common low-ball approach to sales and hence provided for at £850 per month. v. The financial resources will be acquired at the effective market rate of interest. General Assumption Assumption Year 1 (%) Year 2 (%) Year 3 (%) Market rate of interest 15 16 12 Long-term rates 12 12 12 Tax rate 30 30 30 Projected Cash Flow The business is expected to generate excess revenue over the expenditures in order to remain profitable over the three years. Pro-Forma CF (£) Year 1 Year 2 Year 3 Cash-Inflows from operations 300,000 450,000 580,000 Additional Inflows 10,000 8,000 12,000 TOTAL CIF 310,000 458,000 592,000 Expenditures Operational Exp. 35,000 40,000 54,000 Cash Exp. 5,000 10,000 6,000 Bills 100,000 120,000 200,000 Fixed Asset Repayment 15,000 15,000 15,000 Sales tax, HST, VAT 0 0 0 TOTAL COF 155,000 185,000 275,000 NET C/F 155,000 273,000 317,000 Projected Profit & Loss and the Gross Margin This table shows the profitability and gross performance of L-W-F gym over the three year period. These figures include payments made to specialists and other contacted parties. Year 1 2 3 Gross Annual Margin (£) 120,000 140,000 145,000 Profitability Index Year 1 Year 2 Year 3 £7, 000 £21, 000 £28, 000 Projected Balance Sheet The net-worth of L-W-F gym is expected to be healthy for the three years as tabulated below in Sterling pounds: Item Year 1 Year 2 Year 3 Current assets (cash) 9,000 27,000 50,000 Long-term assets 59,000 59,000 59,000 Acc. Depreciation 8,000 16,000 24,000 TOTAL ASSETS 76,000 102,000 133,000 Current Liab. payables 9,000 10,000 12,000 Long-term Liab. 40,000 32,000 25,000 TOTAL LIAB. 49,000 42,000 37,000 NET WORTH 27,000 60,000 96,000 16. References Abrams, Rhonda M (2003). The Successful Business Plan: Secrets & Strategies. Palo Alto, Calif: The Planning Shop, pg.43-44. Print. Augenti, L. (2010). How to start a home-based personal trainer business. Guilford, Conn: Globe Pequot Press. Bangs, D. H., & Henricks, M. (2005). Business plans made easy. [Irvine, Calif.], Entrepreneur Press. Blackwell, E. (2011). How to prepare a business plan. 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Athlete Sara.a.athlete@vanderbilt.edu Current Address: Permanent Address: Vanderbilt University 123 Canebreak Blvd. VU Station B #351234 Baltimore, MD 12345 Nashville, TN 37235-1234 123-234-5678 615-421-1234 EDUCATION : Vanderbilt University Nashville, TN Bachelor of Arts May 2003 Economics and Spanish majors GPA: Economics 3.50/4.00, Spanish 3.00/4.00, Overall 3.20/4.00 JFK High School Baltimore, MD June 1999 Top 10% of class HONORS : Dean’s List-Spring 2002 Alpha Lambda Delta-Freshman Academic Honorary, 2000 ACTIVITIES : NCAA Division I Basketball-Team Captain, Lead members of team and insure that team works together harmoniously 2001-present. Member, Engage in teamwork and practice 20 hours a week, 1999-present. 2001 NCAA Tournament Elite 8 team. Vuceptor-Team Leader of academic orientation program to ensure successful transition to college of ten incoming students, 2002 Alternative Spring Break-Site Leader, Coordinated team of 12 students.Constructed wheelchair ramps for disabled veterans in Little Rock, AR, 2002; Participant, Built homes for flood victims in Costa Rica, 2001 Rho Rho Rho Sorority- Philanthropic Chair, Developed philanthropic events designed to improve Nashville area and Vanderbilt campus, 2001. Member, 2000 Present EXPERIENCE: MicroDell Computer Corporation Austin, TX Financial Analysis Intern, Summer 2002 Prepared cost-run analyses, weekly and monthly production reports. Issued product close-out evaluations. Performed internal audit functions. Vanderbilt University Recreation Center Nashville, TN Equipment Inventory Assistant, Summer 2000 Assisted with keeping track and maintaining equipment for various sports.Developed EXCEL database to help keep track of equipment. Boscos Pizza Kitchen Nashville, TN Host/Server, Summer 2000 Server, Summer, Fall 1999 Provided quality service to customers through both serving and hosting. Camp Pawapi Baltimore, MD Camp Counselor, Summers 1997 and 1998 Basketball instructor for girls ages 9-16. Gained leadership skills by mentoring seven 11 year-old girls as a cabin counselor. SKILLS & INTERESTS : Computer Experience: Comprehensive knowledge of Microsoft Word,Excel, and Powerpoint. Proficient in both written and spoken Spanish. Certified SCUBA. Read More