start-up business plan in us - fresh body fitness center in us

Paññāsāstra University of Cambodia

Fresh Body Fitness Center

Subject: Global Business ManagementLecturer: Dy ChhunsongGroup 8:

Moulsem Chormvirak Mong Pisey Hong Bunrong Long Songthai Long Sreyoun

Fresh Body Fitness Center

Executive Summary: Fresh Body Fitness will provide health care and body

workout service Fresh Body Fitness will offer very suitable cost service to

all segments of customers Owners are experienced and dedicated towards health

care service Health care is on the top concerned of US nowadays Heart disease and obesity are very serious for people

health

General Company Description

Company Overview Location: Coral Gables, Miami-Dade, Florida Land Size: 20m x 30m

Map

Map

Map

Map

Mission and Vision Vision: To be the best fitness center in US in building

awareness of healthy lifestyle. Mission: We’re all help you to live with best

healthy life.

Strengths and Core Competencies

Lowest cost of services in comparison to competitors

Certified trainers from top ranked health care institutions

Owner's commitment and dedication towards health care services.

Unique intimate facility that fasters close positive relationships.

Excellent location is the best place for people easier to get there and short time to go there.

Providing service with talent trainer.

Challenges

The barriers to entry these markets with our new company in Miami in Florida are: High capital costs High production costs High marketing costs

Services and Product Overview

Service:Fresh Body Fitness will provide following health related services: Aerobics

Services and Product Overview Cycling and Running

Services and Product Overview

Yoga:

Muscle Train:

Benefit & Features

Benefit Equipment variety Health, Safety and comfort Group exercise classes

Features State of the art facility latest equipment from quality

manufacturers. Low cost with monthly, quarterly and annual

subscription plans. Personal qualified trainers to help our member

achieving results without wasting much time.

Products Strong BCAA 2500

• Build strong body foundation

• Optimize health

• Help body function

• Pushing limit of training

Products• Build big muscle to particular

training

• Speed up gaining muscle

• Giving strength

Products

-FALL ASLEEP FASTER

-SLEEP DEEPER AND LONGER

-SUPPORTS MUSCLE GROWTH AND FAT LOSS

-SUPPORTS GETTING SIX PACK ABS

Marketing Plan & Market Analysis

Market Description In the United States, Over 54 million Americans paid gym

membership fees in 2015 The average member visited their club over 100 times, an all-time

high Fitness centers have grown rapidly in the last five years Individual usage of fitness and health care training equipment has

increased Body work out and exercise has become a daily life routine of US

citizen

Marketing Plan & Market Analysis Cyclical trend in Industry:

Fitness center is not affected by different seasons and keeps running smoothly throughout the year.

Market Opportunities: Health care club offers a huge lot of opportunities for

existing and potential investors. Marketing is growing for many reasons, some of them are following:

Almost 300 million people are affected worldwide with obesity. Almost 130 million Americans are overweight that includes more

than 61 million who obese. 15% children’s in US are overweight. Almost 18 million Americans with diabetes are suffering from high

blood pressure and heart disease. Treatment cost of obese patients is almost $100 billion, which is 9%

of total health care expenditure in USA.

Fitness Center in USAccording to IHRSA, there were 36,810 fitness centers in US, and continue to grow more and more.

2008 2009 2010 2011 2012 2013 2014 2015

30022 28750 29890 29960 30500 3215034460 36180Number of Fitness Center in US

Target Customers

Age: 18 – 35 years old Gender: Male & Female Location: Miami Dade Income level: $3000/month Social class: medium class and high class Education: High School, Bachelor and Master

Fitness Centre in Florida and Miami

5.80% Florida; 2098

94.52% Rest of USA; 34082

Number of Fitness Center in Florida

5.80% Florida 94.52% Rest of USA

3.6% Miami; 76

96.3% Rest of Florida;

2098

Number of Fitness Center in Miami

3.6% Miami 96.3% Rest of Florida

Population in Miami

2012 2013 2014 2015 2016 2.40 million

2.45 million

2.50 million

2.55 million

2.60 million

2.65 million

2.70 million

2.51 million2.55 million

2.57 million

2.63 million

2.68 million

Population in Miami

Income Level

2010 2011 2012 2013 2014 2015$36,500

$37,000

$37,500

$38,000

$38,500

$39,000

$39,500GDP per capita in Miami

Competition

Equinox Coral Gables Gym Calle Ocho (Miami Fitness Center) LA Fitness You fit Health Clubs Equinox South Beach 24 Hour Fitness Punch Boxing for Fitness Miami

Market Share

Equinox; 10.00%Gym Calle Ocho;

5.00%

La Fit-ness;

30.00%

Youfit Health Club; 5.00%

24 Hour Fitness; 20.00%

Punch Boxing for Fitness Miami;

5.00%

Fitness Together; 5.00%

M Cycle Gym; 5.00%

Body & Soul Miami; 5.00%

Other ; 10.00%

Market Share

Equinox; 9.50%

Gym Calle Ocho; 4.50%

La Fitness; 29.50%

Youfit Health Club; 4.50%

24 Hour Fit-ness; 19.50%

Punch Boxing for Fitness Miami;

4.50%

Fitness Together; 4.50%

M Cycle Gym; 4.50%

Body & Soul Miami; 4.50%

Other ; 9.50%Fresh Body; 5.00%

Fresh Body's Market Share

Marketing Strategy

Internet Marketing: Use website and social media tools. Create official website Setup a local listing with Google Posting events, promotions and educations program. Video tips for training

Marketing Strategy Internal Marketing:

Word of mouth: staff spread information to people they know throw verbal or chat.

Marketing Strategy External Marketing:

Advertising throws television, magazine, newspaper, radio and billboard.

Build network with customers, so they can spread the information about our business to their friends or family.

Hire famous persons to come to our fitness center.

Marketing Strategy

Public Relation: Create an article about health in newspaper Having broadcast interview Event Sponsorship

SWOT Analysis Strengths:

Lowest cost of service in the market Company will hire qualified and trained staff Highly profitable and revenue Fitness program is well-prepared according to the need

Weakness: Renting equipment can be high cost. Number of staffs is low in providing service to a large pool of members Short of marketing budget

SWOT Analysis Opportunities:

Fitness club market is rapidly growing People pay attention to exercise due to increasing heart and obesity disease. People are getting use to have gym in their daily routine of life. People’s income level is increasing. The number of fitness centers is low in the area

Threat Low cost fitness equipment availability for home exercise. Economic downturn can slow down the growth of fitness center Low cost offer from competitors.

Operational Plan Execution Timeline:

TaskExecution Period

Jan Feb Mar April May June July Aug Sep Oct Nov Dec

Choosing location                    Website

Development                  Hiring and

training staffs                  Advertising                  

Grand Opening                      

Personnel Number of employee: 17 initial staff members,

includes owners as well. Type of employees:

Operation Manager – 1 Supervisor – 1 Marketing Manager – 1 Assistant Marketing Manger – 1 Receptionists - 2 Personal Trainers - 4 Service Technicians – 2 Security Guard – 2 Cleaner – 3

Organization Structure

Insurances Property coverage Equipment coverage Worker compensation

Risk ManagementTypes Risks Impact Intervention

High

Number of

clients is very

less

Affect the

company income.

The company

cannot survive

Increase the budget in

marketing and promotion and

cut down some service and

staff

Medium

No qualified staff The quality of the

service is intent

to be low

Advertising for hiring the

staff and make partnership

with the other branding and

famous fitness center abroad

for transfer their coach for

training our staffs.

LowIncident such as

fire

  Install smoke alarm Fire extinguisher

Financial Planning

Source of capital We agree to share capital in USD 200 000 each So the beginning investment is USD 1 000 000

In order to process all the service we need a lot of equipment about the fitness center,

We plan to make a budget for paying in one month.

Start-up Expense Cost ( $ )

Legal framework  Legal form ( Business registration, Tax registration, Business license, Labor compliance, Location permit, Trademark/design/patents, Other permit )

4,500$

Rental 4,500$Building and Design 220,000$

Office Supplies 200$Gym furniture 4,000$Gym equipment 60,197$

Wage 37,423$

Utility 3,000$Website & Internet 250$Telephone 200$Marketing and advertising 1,500$Insurance 3,000$Total start-up cost $ 338,770

Sales forecast Fresh Body fitness

Year 1 Year 2 Year 3

Fresh Body Membership

27,706$ 57,865$ 85,278$

Aerobic 19,786$ 35,975$ 57,543$Cycling and running

22,432 42,793$ 51,267$

Yoga 17,134$ 32,795$ 53,657$Muscle building 23,876$ 37,268$ 54,981$Personal and VIP training

12,456$ 26,359$ 42,928$

Special service for health condition customers

7,916$ 21,976$ 37,783$

Total Revenue 131,306$ 255,031$ 383,437$

References http

://www.payscale.com/research/US/Industry=Fitness_Club/Hourly_Rate

https://www.amazon.com/s/ref=nb_sb_noss?url=node%3D3408271&field-keywords=cycling+&rh=n%3A3408271%2Ck%3Acycling+&ajr=2

http://www.ebay.com/sch/i.html?_from=R40&_trksid=p2050601.m570.l1313.TR0.TRC0.H0.XCardio+Training.TRS0&_nkw=Cardio+Training&_sacat=0

http://businesssolutions.brighthouse.com/services/internet/business-wifi.html

http://www.shopzilla.com/desktop-computers/computer+all+in+one/461/products

http://blog.projectionhub.com/a-powerful-financial-model-for-a-startup-gym/

https://www.google.com.kh/maps/@25.7230363,-80.2674674,3a,75y,136.41h,79.07t/data=!3m6!1e1!3m4!1sFZozqMM4TjTP9oI6WSsM6Q!2e0!7i13312!8i6656!6m1!1e1?hl=en

http://www.freshbody.ca/ http://www.mdc.edu/wolfsonfitness/ http://hiring.monster.com/hr/hr-best-practices/recruiting-h

iring-advice/job-descriptions/marketing-assistant-job-description-sample.aspx

http://www.indeed.com/q-Fitness-Center-Supervisor-jobs.html

http://www.postcardmania.com/designs/fitness-postcards

Thank You