Business Plan – Focus Fitness Centre

Business Plan – Focus Fitness Centre

Part A: Business Plan

Price Justification

Many people are willing to join the workout scene, but they are limited by the lack of crowded low-cost fitness centers. It is for this reason that Focus Fitness facility will focus on low-cost facilities. Although premium facilities offer excellent amenities and a luxurious feel, high prices, and lengthy contracts are not justifiable for those who just want to take the first move toward a healthy lifestyle. The minimal subscription charge paid by low-cost gyms is vital as it will cater to those new to the workout scene.

In comparison, several affordable gyms have improved their game by offering expansive and trendy fitness rooms, along with a variety of equipment, facilities, and classes. That has made it an exciting choice for regular gym-goers who might be searching for a cheaper alternative to what they already have.

Focus Fitness Centers seeks to serve low-income residents in the locality. The primary target audience will be teenagers and young adults. The center will also target the typical working class. These segments of the population do not have the luxury of money to spend on premium workout facilities. Besides, they do not have much time at their disposal; hence they can enroll and participate online if they so prefer.

Market Analysis/Demographics

Fitness Market Trends

According to the Nova Scotia Fitness Association (n.d.), high-intensity training is rising across the world. From 2018 onwards, we started to see an influx in high-intensity interval training (otherwise known as HIIT) and several new chains and gyms that focus their services around wearable technologies. In the future, this may not change much.

Owing to the dynamic nature of life in the city, attendees enjoy brief exercise sessions. Sixty minutes is now the standard (Nova Scotia Fitness Association, n.d.). People are low on time, but most also prefer 60-or 45-minute lessons over 30-minute exercise snacking services. As pleasant as the 30-minute classes are, they do not leave the attendees with the same feeling as the more extended models.

The market research also reveals that yoga is not going anywhere fast. While yoga has been a top practice for a very long time (thousands of years), it’s mostly something people find they need, not only to function and stretch sore muscles but to give them a mental break every week. There was, however, a movement in 2018 towards more experiential yoga classes to take part in unusual environments, outdoors in winter, with farm animals, times or sometimes at various iconic sites (Nova Scotia Fitness Association, n.d.). Lunchtime yoga lessons are also well attended. Fitness lovers try to pursue chances at any moment, everywhere.

There is also a rising trend of Using SMART Exercise Technologies to interact with people at varying fitness levels, which may be a task. By utilizing the wearable community technology, different participants will see their specific success in the classroom. Everyone is low on resources, which will guarantee that everyone performs at a perfect pace of exercise.

Another significant development is the change to accredited exercise practitioners. One might presume that all gyms are utilizing licensed instructors. That is not the case; instead, statistics suggest that more gyms find merit in the teaching and schooling of leaders every year and ensure that a national fitness organization accredits the employees they employ. Additionally, there is a growing preference for personal trainers. Personal trainers report equal weight loss and strength training targets. While safe eating is still on the trend heading into 2021, the two key factors that people attend them are always the same distribution of those seeking to lose weight and those looking to improve their strength.

Market Demand

Over time, the competition for fitness clubs is becoming more and more demanding. The following are the typical demands that have emerged in the recent past.

1. Customization: Individuals who either have a membership or can have one are interested in contributing to a personalized health care package as suggested by a medical professional.
2. Ease of Service: Customers search for workouts that are simple to take and done by expert trainers.
3. Effectiveness of exercise: Participants are very demanding regarding the outcomes of the workouts they conduct. A professional trainer may help set up a proper fitness schedule for participants to focus on it accordingly.

Factors Causing Market Demand

Per Capita Income Growth: 

During the last decade, the steady rise in per capita income has allowed people to invest more in their health-related problems, such as spending time in community care clubs and gyms. This rise in per capita revenue directly fuels health care spending. Furthermore, people consider workouts to be part of their healthcare plans. That explains the recent surge in the number of those willing to enroll for a gym membership.

Factors Contributing to the Booming Fitness Industry

There’s enough for all 

The days when gyms target just a tiny portion of the populace are over. Nowadays, due to the availability of options, gyms draw more participants. Members may select a low-budget gym and always get a nice sweat in it, or they might choose a cheaper, more advanced boutique studio to fulfill their unique exercise objectives. Plus, 24-hour wellness facilities are opening up nationwide to make getting to the gym a lot more comfortable for today’s customers.

A happy, balanced workforce

            More and more corporations understand the benefits of a balanced population when it comes to the bottom line. Most employers cover the expense of exercise facilities and studios (Canadian Franchise Association, 2019). It has been a significant source of increased income for the exercise industry at large, which is one of the factors why this market tends to flourish.

Benefits of a dues-based Business

Be it either bi-weekly or monthly, subscription dues or yearly contracts provide entrepreneurs with a means of regular income. That is complemented by non-due sales streams usually accessible at gyms, such as smoothie bars and activewear apparel. A fitness club may prove to be a very lucrative enterprise (Canadian Franchise Association, 2019).

Competitive Analysis

Low-cost chains are developing across the world. Today, the competition is mainly in the middle, and a low-cost approach with a large volume model is one form of winning (Nguyen, 2015). Another option is to raise the price and attain premium standards. Luxury clubs such as Equinox are flourishing by delivering advanced exercise.

Operations Plan

The table below represents the preliminary activities we plan to undertake before the official opening of the Focus Fitness Centre. These activities will take place in the months leading to the start of operations. We, however, presume that the center will have opened the moment we begin to locate the site.

Task	Jan	Feb	March	April	May	June	January
Location choice	✓
Web development		✓
Hiring Staff			✓
Advertising				✓	✓	✓
Opening							✓

Operations

Daily operations at Focus Fitness Center offer unique group sessions and personal training programs in a judgment-free, welcoming, and positive environment. We estimate that the fitness facility will require approximately 3000 square feet of land. We intend to use this space to ensure sufficient training rooms, administrative/office areas, and washrooms. On the other hand, t Focus Fitness Centre will hire staff based on their expertise in their specialty areas. The composition of our team will comprise personal trainers, marketing assistants, administrative assistants, and property maintenance personnel.

Management

To ensure that our company stands out, Focus will comprise experts with prior knowledge of the fitness industry. The management will also include 20 veterans with management experience in the fitness sector. Also, there will be a martial specialist, a certified personal trainer, and a black belt recipient. The management framework will be uniquely set to achieve long-term sustainability.

Risk/Opportunity

The most significant risks that face the fitness industry comprise market and execution risks. Due to the sensitivity present in the sector, the management will continuously analyze the need to be informed of the changing market trends. On the other hand, Focus stares at good opportunities that can potentially make it a significant player in the industry. Focus requires sufficient resources and strategic promotional and marketing strategies to offer personal and group training sessions efficiently.

Marketing Plan

Marketing Strategy 

Value proposition:

• State-of-the-art installations and state-of-the-art standard equipment
• Low cost for monthly, quarterly, and yearly membership systems. Starting at $10 for simple body conditioning activities.
• Trained staff coaches that help our members produce outcomes without waste of time.

Partnerships

The business will collaborate with another small exercise center in the region. Although there are many small alternative workout facilities such as fitness facilities, riding, running, competitive athletics, and personal trainers, Focus Fitness Centre does not have direct rivals. We would offer the advantages of private instruction at a lower rate than most participants in the gym market (Swaid, Khanfar & Loudon, 2019). The business will be accessible close to 24 hours to retain more of its clients who work during the day.

Branding

Focus Fitness will create an official website, create a logo and corporate presence in the industry, and include online subscriptions.

Promotional strategies 

Focus Fitness Center will begin with a low-revenue business segment. They will persuade them of the advantages and requirements of health Programmes. Aggressive communications and connections will do this with citizens in health awareness activities and distributing newsletters and emails via the website.

Focus Fitness will distinguish itself with result-oriented fitness strategies to stand out from the cutthroat competition in the industry. Also, client-focused training services in a superior-quality training facility will complement the differentiation strategy (Swaid, Khanfar & Loudon, 2019). Such techniques will enable the company to stand out from other players that target mass audiences with non-specific training services.

Focus Fitness Center will market itself both physically and over the internet. First, marketing staff will promote the company through Facebook and advertisements through flyers. That will help build the new company’s initial attraction. Focus Fitness coaches would still need to wear the Focus Fitness branded T-shirts for their workout hours to ideally draw fellow gym people to the centre. These low-cost marketing strategies significantly cut expenses while generating publicity for the new business.

Pricing

Focus Fitness Centre will apply competitive pricing. As mentioned earlier, ours are low-cost services. However, clients are aware that trainers undergo extensive training before they are fully qualified to train people. With these in mind, the rates have to be standard to avoid perceiving that the company offers low-quality services.

Marketing Objectives

All of Focus Fitness’s marketing campaigns will target achieving the following overall results;

• To attract the attention of the target audience
• Facilitate internal decision-making.
• Lower attrition rate.

Part B: The Financial Plan

Financial Overview

As a young organization, Focus Fitness Center needs a relatively significant amount of money to function correctly at the start. Notably, the company will offer two-fold services such as customized professional training and personal online training. Such services are associated with the online audiovisual contact of trainers with consumers. Therefore, a thoroughly fitted gym is required to employ at least two cabs for transporting trainers who perform face-to-face instruction and hire the offices and the app development agency to manage their websites, furniture, two machines, etc. Present spending covers payroll charges, trainers’ wages, fees to regular repair companies, etc.

Capital Requirements

To effectively set up and run in the first two years, Focus Fitness Center (FFC) will cost $50000. Focus Fitness Center (FFC) shall offer a group of investors or single investors an enticing package term for the above number and a compelling exit opportunity. In five years, the Focus Fitness Center (FFC) shall refund the entire sum with the chance to renegotiate any mutually advantageous arrangements with the financiers.

Startup Cost

Salaries	1000
Supplies (Equipment)	500
Special floor	100
Marketing	500
IT support and web design	1000
Rent	2000
Total startup expenses	5100

Ongoing Expenses List

The list below represents the ongoing monthly expenses the company will incur. These expenses may vary from month to month depending on market conditions, among other factors. Therefore, these are mere estimates that only seek to give a snippet of the company’s estimated monthly operational expenses.

Expense	Cost	Comment
Lease	$2000
Internet/communication	$900
Utilities (electricity etc.)	$100
Website Hosting	$10	This will depend on the website host
Yoga liability insurance	$10
Assets insurance	$20
Yoga studio software	$50
Repairs/maintenance	$100
Marketing	$500
Professional Fees	$200	Accountant, bookkeeper
Professional Training	$200
Cleaning services	$200	May trade yoga for cleaning services
miscellaneous	$200
Total Monthly Expenses	$4,490

References

Nova Scotia Fitness Association. (n.d.).. https://nsfitness.ca/resources/Documents/NFLA%20-%20Fitness%20Trends%202019%20PRESS%20RELEASE.pdf

Mai Nguyen. (2015, February 12). Charting the rise of discount gyms in Canada. Canadian Business.

Canadian Franchise Association. Admin. (2019, February 4). Why the health and fitness franchise industry is growing. https://www.cfa.ca/blog/new-year-new-franchise-opportunities-with-       franchise-canada-2/

Swaid, S. A., Khanfar, N. M., & Loudon, D. (2019, July). Developing a competitive marketing strategy: the case of a complete fitness gym. In Competition Forum (Vol. 17, No. 2, pp. 258-266). American Society for Competitiveness.

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Justify the pricing strategy you will employ. Perform a break-even analysis to determine how many customers you will need to make your business financially viable.
Defend your distribution strategy. Determine if there are additional channels you should pursue and why.
Justify your integrated marketing communications plan. Discuss the key themes of your campaign and link them to how your business, service, or product will satisfy your target market needs. Describe each element of the promotional mix in detail and explain how you will integrate the different elements of your promotional mix toward the target market using the key themes. This includes the following elements:
Advertising
Public relations
Sales promotion
Personal selling
Direct marketing
Interactive marketing
Defend an implementation schedule for your marketing plan. Outline the time frame for the different media campaigns and specify milestones. You should outline who will be responsible for each action item and how you will track the deadlines to ensure the plan stays on schedule.
Justify an evaluation process for the effectiveness of the marketing plan, including the use of a marketing dashboard that includes a sample dashboard.
In table format, synthesized estimates for the marketing budget.
Additionally, you have been asked to prepare a budget. The budget should include estimates of forecasted sales, direct cost of sales, and your marketing expense budget. (Create an Excel sheet with the budget estimates and then copy/paste them into your Word document.)