Wednesday, June 5, 2019
Business Plan Gold Gym Marketing Essay
Business Plan money Gym Marketing canvassVenturing into outset a Franchise is traditionally assured to yield a guaranteed Return of Investment than venturing into a fresh startup entity. Although Franchise itself is a air, it is considered as a way of doing business.It is believed by more that Mr. Albert Singer who was the founder of the Singer sewing machine, was the inventor and founder of the concept franchising. He was oneness of the earliest psyche k flatn by most as being associated with the concept however, the franchising really began long time ahead and has its roots dating all the way linchpin to the Middle Ages (Blair Lafontaine 2005). As per the definition the work franchising is derived from ancient French which means holding a particular privilege or right.Over the years, franchising business models produce been evolved and proven to result in high harvesting businesses. Although there are unlike large business entities in UK that plead franchising opportu nities, only few business segments result in lucrative ROI. After analysing various business analysis reports and merchandise survey statistics, I puddle identified fitness and wellness healthcare segment as highly futuristic franchise opportunity considering various factors including my current financial capabilities and business goals.Proposed BusinessGold Gym Franchise acc apply and DescriptionAs a fitness franchise of Gold Gym, we testamenting provide an innovative health care, wellness and fitness services. The modern premise will be equipped with the state of the art fitness equipments and provide facilities such(prenominal) as steam bathing and locomote. The place of the business will be elect in the heart of the town to provide fitness services to local community, besides outb ingest the competition.Market Outline SummaryIn recent times mint are acquiring more and more health conscious as they are more educated about health hazards involved due to gangrenous lifes tyles, establishing a franchise business like Gold Gyms is in truth profitable as well as it can serve the local nodes who want to invalidate buying very expensive health equipments in their ho social functions. It can in contributing to the society as healthy lifestyle would ensure less(prenominal) ill flock. As per a recently conducted market survey and the report by the Fitness Industry Association (FIA) and accumulated by leisure fitness market analysts, the UKs fitness and wellness business is a 4 billion GBP tax income industry and is seeing the fastest growth of its 20 year history with many more members eager to avail such services facilities than ever before. The comprehensive audit and the market intelligence report published by FIA covers national overviews of both the public and private sectors.Currently, 15 % of the total UKs population are members of a health club or government-owned fitness services and there is an untapped market potential of around 60% and it s growing stably at 3 to 4 per cent an year. Besides this, the gatewayiond obesity risk levels are induce large number of people approach fitness and wellness centres. (Fitness freebie fitness, 2009)These factors clearly indicate that starting a fitness and wellness club or gym will yield a lucrative r plainue and guaranteed profits. However, starting a gym franchise is a better idea rather than starting a own gym because of the fol lowlying factorsStarting a own gym is very expensive and requires minimum of a million pounds investments because of increased equipment cost and the soaring rates of premises leasing.Building own brand (rather than running a franchise) requires higher(prenominal) upfront investment for marketting and brand building efforts that eventually impacts the customer acquisition rate.Employee prep and management orientation is easy in a franchise.Investing in a franchise business is usually safer than venturing into a on the whole new startup due to prove n business strategies.Business ModelThe primary source of revenue of the proposed business will be earned from the various types of memberships offered to the customers. Ideally the member ships will be offered at a predetermined price which would include certain benefits and services that the customer can avail. As the benefits increase the price of the membership would also increase. In the initial stages of the business, the proposed fitness franchise will earn revenues in the following streamsMembership Types1. Basic memberships (without trainers) Pricing will be mingled with 15 to 25 and will vary time to time because of special promotional offers. Initially, it is proposed to set at 15 per month. This would provide accesses to very basic facilities and services, ideally to attract the lower income group of people.2. Gold memberships (with special guidance from trainers) This special membership pricing will be set between 25 to 45 because of seasonal-special offers and initia lly will be set at 25 per month. This would include more number of facilities and services, more suitable for customers with a higher disposable income.Apart from the above mentioned standard monthly memberships, we will offer weekly and Pay as you go memberships as well which will stub people looking for flexible paying options.Membership DurationMembership pricing will be offered attractive based on the following durations1. periodic membership the payments would be taken on monthly hindquarters2. Weekly membership this will work on week on week basis3. Pay and Use membership would be a prepaid serviceTarget CustomersCustomers of varied types including individuals, groups and businesses will be targeted to acquire strong customer base. It is listed as below1. Individuals2. Family group memberships will be offered at reduced fee pricing.3. Corporate memberships will be offered at reduced pricing.The proposed membership fee structures and the revenue projections have been expo und in the Financials and Projections section in the later part of the text below.Competitive AdvantageThe proposed fitness business centre will offer variety of advantages to outbeat the competition in the market. We will provide special memberships for people undergoing obesity treatment and special price caps to attract different age groups such as 35 to 49 and 28 to 34. Moreover, the proposed fitness centre will be in the heart of each town and within reachable outdo from the nearby health services. Gym equipments in the mental quickness will be made up of state of the art technology and will have electronic sensors and displays to accurately measure and monitor physical and health parameters. (More details of the equipments have been described in the Equipments Provision section). Multiple number of steam bath facilities and swimming pool facilities will be provided. Free car parking facility will be provided for limited number of hours.CompetitionIn UK, at present, there are very few (less than 3) fitness chains are available in most places, apart from public facilities and many towns are yet to have a gym with sophisticated equipments and services delivery. Therefore, the competition for Golds Gym franchise is moderate and we have a clearly defined business model and schema to outbeat the competition.Premises and EquipmentThe proposed gym premises will house various fitness and wellness facilities. There are mainly two different types of equipments which will be available in the proposed gym, firstly free weights and secondly high-tech machines.Free weights are a simple form of bodybuilding equipment with no real use of technology. They are generally cheaper and more easily available. They consist normally of things like barbells, low-downs, bars, weight plates etc.In the proposed gym, we will facilitate and provide the following equipmentsThe finishbellWhich is a long iron bar that is around 4 and 7 feet long on which multiple weight plates can be placed as per the compulsory weight.Weight PlatesWeight plates mostly range from 500 gms to 75 kgs. They are usually made of iron as it is a heavy metal.Dum-bellsA dumbbell is a shorter form of a barbell, generally 10 15 inches in duration. Dumbbell exercises are performed with a dumbbell in each hand.Tricep BarAn oval-shaped shaped long bar which has 2 parallel placements for the hand. Although it is commonly called as a tricep bar, one can use it to workout opposite different part of the body besides the triceps.EZ Curl BarIt is ideally designed for building the biceps triceps. It is much shorter then a barbell and has angled placements for the hands. It is very useful for building ones muscles from a variety of angles and for reducing the levels of filtrate (caused by weight) which a straight barbell normally can place on ones wrists.BenchesThis most common piece of equipment which is seen in each gym. There are mainly 3 different types of benches that are pop flat one , an inclined, and decline. Some high-tech benches are adjustable. Some bespoke benches have the facility of racks on one end which hold a barbell, while some benches dont have any such racks.The Arm-BlasterIt is a 2 foot in length and 6 inch in width, very flat, curvy metal bar. It has a strap that goes from back of ones neck to grasp the metal bar is flat from tree to corner of your mid section. It works a lot like a preacher bench by eradicating any body momentum and allows the person using it to isolate the biceps.Stability Ball (Swiss Ball)All exercises that one would ideally do on a bench can also be done on the stability ball. The trainee can do a variety of exercises like bench press, shoulder press, dumbbell flies, lateral raises, pullovers, reverse crunches, so on and so forth. This is one of the best piece of equipment and is very popular with fitness conscious people.Abdominal BenchIs simply just a decline bench that is used for doing exercises that digest on the abdom en. It has rollers that a person can hook their feet into so that the person does not slide off the bench.Chin Up/pull up BarThe chin up or also known as a pull up bar is a iron bar that is either bolted on to a wall or any part of any exercise machine. Pull ups are good for working out the upper back, biceps, and forearms.Dip/ commove ups BarsThis is a set of two similar parallel bars. Dips is the best exercise for working the upper chest, shoulders, biceps and triceps.Leg Press MachineMost people believe that squats are the best overall exercise to build up the leg muscles. Most of the press machines are set on a 45 degree angle which provides excellent movement of legs. With the leg press the trainee can safely lift weights without having to worry about sliding or falling over. It gives less stress on the lower back which can help people with back problems and knees then squats.The Hack-Squat MachineThis is a innovative variation of the traditional and popular barbell squat that is commonly used. This is excellent and very useful for developing the outer muscles of the thighs and for toning up.Leg Extension MachineThis machine is ideally suitable for isolating the musculus quadriceps femoris muscles and focusing on leg muscles. Most trainees find this exercise useful for pre-exhausting their quadriceps or for warming up the knee joints (which are normally tight) before proceeding to do squats or leg press exercises.Calf MachinesThere are mainly 2 different types of calfskin machines, one is the standing calf raise and second is the seated calf raise. The former raise focuses the upper calf muscles (gastrocnemius) while the later is used to work out the lower calf muscles (soleus).Leg Curl MachineThis machine is ideal hamstring exercises which is very popular with athletes. Some gyms nowa daytimes may have a leg source and leg curl machine built in together into one machine, to maximise utilisation of spaceFinancials Capital Funds and Budget PlanThe nif ty investment and operational costs of the proposed business is as given below(1) Short term part-investment Angel investment of 25,000 towards franchise fee. This includes employee(includes training and management staff) training and management orientation. Brochures, documents and other books and manuals such as fitness and wellness guides, marketing materials such as standard pamphlets.(2) Short term part-investment posit loan of 30,000 towards premises rental and day to day maintenance for the first 12 months.(3) Short term Angel investment of 10,000 towards marketing and promotional expenses.(3) Short term Bank loan of 30,000 towards staff costs for first 12 months.Therefore, the capital cost of the business upon starting is 95,000. This is raised as a combined collective-capital as described above in parts of Angel Investment of 25,000 and 10,000 in addition to the 30,000 of bank loan.Financials Cash flow and Forecast (Projections)The cash flow for day to day operations for t he initial twelve months will be incurred from the capital investment as explained in the above section. As per the projections explained below, the break even point (of 95,000) is evaluate to cross in the month of nine from the starting day of the business. Upon achieving the break even the excessive funds (as in the figures below) will be used partly for the operational cost and the rest will be accumulated as retained profits, which is estimated to be approximately 25,000 (after achieving break even).The proposed membership fee will be between 5 and 49 for various services. The average monthly membership fee is proposed to be 15 to ensure competitive advantage over other fitness centres. As a conservative estimate, the membership is expected to grow at 140% in the initial stages at averagely 25 new members a day. Therefore, the projected earnings over the period of initial 9 months (15x25x9) is around 101,250 and the breakeven will be achieved in 7th month of starting the busi ness. In a modern estimate (if promoted with freely available internet and ecommerce services), membership base is expected to grow at 265% in the initial stages and break even can be achieved quickly and steady flow of revenue can be ensured.Financials Future Expansion PlansThe long term investment capital funds of 450,000 will be raised as mentioned below, to grow the business in steady pace for adding more number of gym equipments with advanced features. More facilities including 247 access to the gym will be offeredThe long term investment funds will be raised as given below,(1). Listing the business in AIM-Cash shell list in association with external fund raising companies (Projected to raise around 200,000).(2). Additional capital will be raised through low end venture capital firms to raise the capital of around 225,000.The total of 450,000 will be raised as explained above for expanding and ensuring the organic growth of the business.Marketing and Promotions StrategyIn the total of 10,000 allocated marketing budget the advertisement campaigns within the proposed budget will be carried out in co-operation with the parent Gold Gym entity with and estimated cost of 3400. The printed pamphlets will be circulated to local community with special-seasonal offers as well as special membership offers. Low cost advertisements will be published for the budget of 2500 in local community news magazines. Advertisement displays will be considered in the second phase of the business upon reaching breakeven point. resultFitness and wellness care is becoming essential part of life style. With fast life styles, stress full working conditions, growing competitions and unhealthy eating habits, many people have realised the importance of fitness and health to lead a quality life. More and more people are now keen to improve their fitness levels, some for feel good about themselves, some to look better and feel confident, and some to reduce mental stress levels. The brand o f the Gold Gym is a proven and time tested that could result in increased customer base. Over the time gold gym has seen growth and succeeded in providing excellent fitness and health services. The brand name backed by the reputation makes gold gym franchise a low risk business model. In a traditional estimate, the proposed Gold Gym franchise is expected to cross break even in around 7 months and yield steady profits from 8th month onwards. Further to the 8th mark growth opportunities can emerge with market conditions improving disposable income of individuals getting back to normal levels. After carefull evaluating all financial aspects and growth prospects we can conclude starting the Gold Gym franchise will be a lucrative and profitable business.