Growth Strategy for Fitness Business
The intended fitness business will adopt a strategic plan that will ensure growth across various dimensions, such as total revenue, profits, membership numbers, and class session numbers. Essentially, enhancing revenue and profit growth is done by increasing revenue generation or by reducing the number of expenses incurred (Osterwalder et al., 2020). For the fitness business, both approaches will be employed. As a strategy to improve revenues and profits, the business will engage in focused marketing activities. The business’s marketing plan will attract more clients to increase membership numbers and thus more profits. Also, the business will consider eliminating unnecessary processes, such as expensive snacks for clients that increase overall expenses. The following are the actual growth projections for the total revenue, profit, membership numbers, and class session numbers for the next three years. Get in touch with us at eminencepapers.com. We offer assignment help with high professionalism.
Total Revenue Projections
| Year | 1 | 2 | 3 |
| Revenue | $20,000 | $22,000 | $24,200 |
The revenue projected for the first three years is given above. They are projected to grow by 10% every year. The increase in revenue will result from enhanced marketing activities that, in turn, will attract new customers.
Profit Projections
| Year | 1 | 2 | 3 |
| Profits | $8,000 | $9,200 | $10,580 |
The profits for the fitness business are expected to grow at a rate of 15% annually. The growth will be occasioned by reduced operating expenses (Nutting, 2018). Also, the increased profits will be influenced by the increased revenues.
Membership Numbers
| Year | 1 | 2 | 3 |
| Membership numbers | 50 | 65 | 91 |
The fitness business will start at a membership of 50. In the second year, the membership will increase by 30%, and in the third year, the membership will increase by 40%. The increase in membership will be occasioned by increased enhanced marketing.
Class Sessions
| Year | 1 | 2 | 3 |
| Class sessions | 4 | 5 | 6 |
The number of sessions will increase as the membership grows from four in the first year to five and from five to six in the third year.
References
Nutting, M. A. (2018). The Business of Personal Training. Human Kinetics Publishers. https://online.vitalsource.com/books/9781492568117
Osterwalder, A., Pigneur, Y., Smith, A., & Etiemble, F. (2020). The invincible company: how to constantly reinvent your organization with inspiration from the world’s best business models (Vol. 4). John Wiley & Sons.
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Question 
PTR 375
This week’s assignment:
Develop a growth strategy for your fitness business. Include ideas for increasing income as well as decreasing expenses without impacting retention. Add actual growth projections for total revenue, profit, membership numbers, and class session numbers through the next 3 years. Be as complete and realistic as possible.
Requirements: answers must be in your own words, 250-word minimum.
Growth Strategy for Fitness Business
Nutting, M. A. (2018). The Business of Personal Training. Human Kinetics Publishers. https://online.vitalsource.com/books/9781492568117
Chapters: 15-16
Weblinks Week 5
This week’s lesson mentioned two important associations for fitness business owners. Consider joining one of them when you open your own business.
International Health, Racquet, & Sportsclub Association
https://www.ihrsa.org/ (Links to an external site.)
Association of Fitness Studios