Market analysis and business plan for a gym

Market analysis and business plan for a gym Stayfit gym is a privately owned business which is positioned at 15 Menai Road, Menai. The estimated opening date is August 2010. The establishing business, Stayfit gym is dedicated to provide the best personal fitness service. The mission is to offer the general public with the willpower to set reachable goals and to reach ultimate health and fitness level. The business will take a holistic approach to lifestyle, health and fitness management and work around the clock to provide the public with practical and innovative fitness programs that flexibly put together into busy lifestyles. Stayfit gym will include of 1-20 employees making it to be a small business. Stayfit gym will be registered as a sole trader ownership (Maroutcha Hadwan) meaning it is an incorporated business with one owner. The owner is responsible for all decisions made within the business and is able to retain all profits. Funding for the business is through the owners equity and money and money borrowed from financial institutions. An advantage of a sole trader is that all profits go to the one person; unlike a partnership the profits made are split evenly between all partners in the business. The risks in opening this business as a sole trader are that the owner of the business is personally responsible for the debt incurred by the business (unlimited liability). In the event that the business is unable to meet its financial obligations, the owner must take responsibility for finding funds to pay off all debts, the owners personal assets are all at risk of the business does not succeed. Purpose of Plan Planning is important to guide the business, the purpose of this business plan of that it gives clear direction for the future of Stayfit gym, it also increases awareness of opportunities arising in further future growth. It helps the business prevent failure and to achieve goals. Stayfit gym holds many different goals such as: personal, social, and financial which consist of the following goals: Personal Goals: Upholding a good image Being a sole trader (being their own boss) Satisfaction from your work Social Goals: Helping the general public improve their fitness To help children over come obesity Financial Goals: Gaining maximum wealth Making a great profit Situation Analysis SWOT Analysis The SWOT analysis provides the business with an opportunity to examine the strengths and weaknesses Stayfit Gym must address. It also allows the business to examine the opportunities presented to Stayfit Gym as well as possible threats. Strengths Weakness Knowledgeable and friendly staff Top of the line equipment Flexible operating hours Complementary service Womens room Free parking for all gym members Childminding Newness Viable workers may leave the gym Membership fees High health care costs Poor brand image High staff turnover Opportunities Threats Opening more gyms in the future Growing population interested in fitness Buy out a competitor Growing economy Increasing high health conscious population New exercise trends New government health care regulations Decease in the number of competitors Declining economy Local competitors Change in government regulations Equipment shortage Decreasing local population Competitors Analysis The three main competitors for Stayfit Gym are: Fitness First Miranda Goodlife Gym Menai Contours Ilawong Fitness First As fitness first being a well known Gym nationwide, it then has the major influence on Stayfit Gym. As Fitness First being the main competitor because they can offer better prices and more services, product and have more capital behind them and are able to take more risks than a newly established Gym like Stayfit. An advantage for Stayfit Gym is that Fitness First doesnt not offer flexible contracts, like Stayfit Gym, as for example at Syatfit Gym we do not charge joining fees, as for fitness first do. Goodlife Gym Goodlife Gym is another competitor which also has an influence on Stayfit Gym for it being located nearby. It also influences Stayfit Gym as it is well known in the area, and has been open for a long period of time. This gives a reason why Stayfit Gym offers better and suitable pricing which will benefit those who are willing to lose weight for an affordable price. Contours Like any other competitor, Contours is also well known throughout Australia, as well as the local community. Unlike Fitness First, and Goodlife Gym, Contours is a circuit gym as well as an all ladies gym, this being one their weaknesses which benefits Stayfit Gym. Although, Contours offers those women who are not confident and comfortable working out in front of men the luxury and comfort to work out, this strength is a major disadvantage towards Stayfit Gym as the majority of women may prefer this environment. Market Analysis Stayfit offers everyone, no matter your age, anyone looking to loose weight; anyone looking to get fit, and anyone looking to stay fit! With Australia being the fattest nation on earth there is an ever more increasing need for easily accessible gyms with these facilities like Stayfit Gym who target and encourages people to exercise and get fit, as well as the opportunity to have fun. As the main aim of this business is to overcome obesity, Stayfit Gym mainly targets those who are overweight, obese, and morbidly obese. Statistics show that the main reason why Australias decided to join a gym and take over a healthy life style is to loose weight and this is shown in the table below. For further information visit the following website: http://www.executiveresults.com.au/health-and-fitness-statistics.cfm The Marketing Mix Product Price Stayfit Gym aims to provide top quality and safe equipment, which benefit members in weight loss. Stayfit Gym offers penetration and a discount pricing, as it is competing with other gyms who offer the same facilities and services as Stayfit Gym but for a better price. Discount pricing is offered for those who are students, and off-peak gym use, the prices reflect the quality of the equipment and service. Place Promotion The upcoming Gym will be located on 15 Menai Road, Menai. The population of this community has grown by 5% each year for the past three years, giving Stayfit Gym a better opportunity to gain more members of the public and customers to join and become apart of the Stayfit family. Stayfit Gym works to promote there services throughout advertising ads on local billboards, handing out flyers also by setting up stands in local centres. Stayfit also wishes to promote their gym through T.V commercials as well as radio broadcasting. Market Segmentation The market segmentations for Stayfit Gym customer consists of the following geographic, demographic and behavioural factors: Geographical The immediate target region of Stayfit Gym is Menai, Illawong, and Alfords Point. As the population of these areas continue to increase, this will have a positive impact towards Stayfit. Demographic Stayfit Gym targets both males and females from 15years and over. Income range of $35,000 $75,000. Behavioural Recognises that they need to improve their fitness Those who have recognised that they need to lose weight Those who are willing to enjoy extreme sport Marketing Strategies and Objectives Marketing Objective Marketing Strategy Overtake competitors Keep an update competitor profile Offer better pricing to the public (6months) Price level Maintain a price level lower than competitors as then it will be harder for the competitor (4months) Discounts Offer a range of discounts (9months) Online access to the gym To build up an online website of the gym which will be easy for the members to access and also helps promote the business. (2months) Equipment To provide the gym with more equipment, and to improve facilities(12months) Sales Force Employ telemarketing staff (13months) Product Analysis Stayfit Gym provides individuals with the opportunity to exceed their fitness expectations, which are delivered through expert coaching, high-quality equipment, convenient scheduling and great exercise programs. The equipment division of Stayfit Gym offer the largest range of quality fitness equipment from the worlds leading brands, including: Technogym Cybex Precor Zest Life Fitness Equipment Positives Negatives Cardio Treadmills Elliptical cross-trainers Exercise bikes Stair climbers Summit trainers Having a different range and variety of cardio equipment benefits Stayfit Gym, as having more facilities available for the public will then attract more people to join Stayfit. A negative of cardio equipment is that when equipment brakes or is miss used, also safety issues, for example: falling off equipment, this can give a bad reputation for Stayfit. Strength Chest press Biceps press Triceps press Shoulder press Bench press Lateral chest press Leg press Dumbbells Torso rotation Chin dip Iso glute Lateral chess press Vertical Ab trainer Rower Having a wide range of strengthening facilities will also have a great benefit on Stayfit as other Gyms may not have the same equipment available. A negative of strengthening facilities is that when one equipment brakes or is miss used, also safety issues, for example: falling off equipment, this can give a bad reputation for Stayfit. Objectives and strategies Stayfits primary goal is to create a community committed to best functional fitness. Objectives Strategies Our monthly objective is to generate at least 20 new members. This will be done through advertising Stayfit, also free weekly trials of the gym and Stayfit aims to open and run a facility at full capacity within the first year with 150-200 members. This will be carried out by providing new members better opportunities and pricing. Better membership deals by the second year of operations Offering on-peak and off-peak membership, this will be better for people who want to use the gym during hours when not busy. For example, during the day when school kids are at school. To franchise Stayfit in other areas towards the further future This will be done by upholding the right image and keep a good reputation for Stayfit. To make people fit and healthy! This will be done through providing the right exercises, staff and classes that will help the general public stay fit and healthy. To make profit and pay off all debts within 1st two years of opening This will be done by having more members entering the Gym, and with that money Stayfit will then be able to payoff debt More classes available by 6 months of operations (zumba, urban dance, and etc) By hiring staff that are able to carry out these classes. Provide the only fitness facility truly dedicated to solving the fitness needs of our customers This will be done through providing the highest quality equipment available, constantly keeping our staff up to date on certifications, providing a clean and crowd-free gym. Description of product/service At Stayfit Gym we provide you with comfortable surroundings, with the latest facilities and equipment to facilitate your training and exercise needs. Stayfit also aim ensure that the members receive a fantastic exercise experience. Stayfit aims to provide the following classes/sessions free weights, kickboxing, personal training, cardiovascular, and group cycling; we also offer professional instruction, well-balanced and enjoyable workouts which focus upon strength gain, aerobic conditioning, weight loss and increasing fitness levels. Stayfit Gym also provides a womens only room, including both cardio and strengthening equipment. Stayfit Gym also provides childminding, for those who have young children and want to achieve the ideal fitness levels. Our services are directed at maximizing your health and fitness levels in a safe, productive and exciting environment to give you a fantastic health and fitness experience. We also offer a range of drinks to freshen in between workouts, towels; also a wide range of protein shakes and supplements, Stayfit also offers free and convenient private parking for all members of the gym. Pricing NO joining fees or administration fees! Free weekly trial pass for new members! $590 12 Months up front $590 12 Months off peak $540 6 months $350 3mothns $220 1month $75 10 day gym pass $60 Casual Visit $10 10% Discount for students Under 18 years old Trading Hours Monday to Friday 5am 10pm Saturday 7am 7pm Sunday Public Holidays 8am 5pm Workout Timetable Monday Tuesday Wednesday Thursday Friday Saturday Sunday 6.00am Body Pump Body Balance Body Pump Fat Burner 7.00am Body Attack Body Combat Body Balance Spin 9.00am Spin 1.00pm Spin Body Combat Fat Burner Body Pump Body Attack 3.00pm Kick Boxing Kick Boxing 5.00pm Fat Burner Body Balance Body Attack 7.00pm Kick Boxing Body Pump Spin Session/Class timetable available for members and general public: Class Description Body Pump Non-impact class created to shape and tone the entire body, using weights and barbells. Body Attack High intensity strength, aerobics and stabilization exercises. Fat Burner Standard high energy aerobic exercise. Body Combat aerobics based on a variety of exercises, such as: Tai Chi, Karate, Boxing and Taekwondo. Spin Calorie and fat burner cycling exercise. Body Balance A class combining Yoga, Pilates and Tai Chi. Kick Boxing Circuit kick boxing, using high energy boxing techniques and stations. For those who are members of Stayfit Gym all classes are free, and for those who wish to take part of these classes pay $5 per class. Staffing Requirements The manager, who will also be the owner of Stayfit Gym (Maroutcha Hadwan), will be qualified to hold the following certificates: Certificate in Fitness Certificate in Personal Training First Aid Certificate Diploma in Fitness It is preferred that the manager has prior experience in field, as Stayfit Gym is dedicated to provide a diverse range of programs suitable for all people. Job Title Quantity Skills, Qualifications and Experiences Receptionist 1 Computer skills Communication skills Social skills First Aid Certificate Child minding 2 At least 2 years experience prior too Certificate in child care Certificate in First Aid Personal trainers 7 First Aid Certificate Communication skills Certificate in fitness Certificate in Personal Training Specialized in karate Specialized in boxing Specialized in aerobics Specialized in cycling Specialized in body building Must have at least a year experience prior to working at Stayfit Gym, as we are dedicated to provide the public with the best of our ability. Dieticians 2 First Aid Certificate Must have at least 1-2 years experience Certificate in dietician Spotters 9 First Aid Certificate Specialized in Yoga Specialized in Pilates Specialized in Tai Chi Specialized in cycling Certificate in fitness Social skills Must have at least a year experience Financial Forecasts Revenue Statement for Stayfit Gym Pty Ltd For the period ending 01/08/2011 Cash Flow Statements Cash Flow Statement for Stayfit Gym Pty Ltd From period ended 01/08/2012 Opening Cash Balance $415,000.00 This projected cash flow statement shows that this upcoming business will be Surplus, as of the period ended 2012 whereas the closing chase balance was a greater amount of money than the opening cash balance. Critically Review of the Plan and Process Throughout this business task I managed to meet all deadlines and make sure everything was up to date. My weaknesses throughout this assignment was the Market Analysis and Financial Forecast, where as I was unsure how to complete both sections. In relation to Market Analysis, I feel that I havent covered all sections in this heading. For financial forecast I first started of with balance sheet, but i was unable to complete this section as my balance sheet was not balanced so I then chose to complete the cash flow statement and revenue statement, I also struggled to completed these two finical records. Overall my progress within this assignment was satisfactory, and I am happy with my overall work, as I never knew I was capable to completing this task meeting the criteria. Index Description of Business Ownership 2 Purpose of Plan 3 Situation Analysis 4-9 Swot Analysis 4 Competitor Analysis 5 Market Analysis 6 -8 Product Analysis 9 Objectives and Strategies 10 Description of Product/Service 10 -11 Pricing 11 Trading Hours 11 Class Timetable 12 Staffing Requirements 13 Financial Forecasts 14 15 Revenue Statement 14 Cash Flow Statement 15 Critically Review of Plan and Process 16