Business Plan Example: The Limitless Fitness and Wellness Center

2021-07-13 23:18:29
6 pages
1420 words
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George Washington University
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Business plan
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1. Venture Idea and Need /Opportunity

Exercises and appropriate diet consideration are vital for a healthy living hence a requirement for all people. In every city, health centers or learning institutions, gymnasium and nutrition facilities exists separately limiting access which creates a gap.

Business description

The limitless fitness and wellness center is a service providing station IN Tampa Bay, Florida that offers: gymnasium, nutrition advice, RMT & relaxation massages, life coaching trainers services, basic nursing services included in membership, CoolScupting room services under ONE roof.

It has trained gym instructors to undertake clients through the entire fitness program. After the exercise is done, the nutritionists are to take charge prescribe the appropriate diet for those dealing with weight issues. They are to measure the weight and keep close follow up on the progress of the individuals.

The fact that services are offered under one roof, and a common management gives it a competitive advantage as more than 95% of the existing gymnasiums do not have all mentioned services under one roof.

Application to join can be made via the website and also the nutrition services and instruction may be obtained online upon subscription. The motive is to enhance access globally. Also an app is offered, tracking the personal's workout sessions, the nutrition meals prescribed.

Opportunities and requirements

The business is quite expensive as it requires gym equipment, a large room with partitions, nutrition facilities and much more. It, therefore, requires a large investment to stabilize and manage competition from other service providers.

The business collaborates with Stay Safe insurance company and with NutriMeal -Home delivery.

The market for the business is growing as it is a requirement in every institution. Its uniqueness, professionalism, and ease of access make it more preferred compared to the traditional style composed of separate fitness and nutrition centers. Notably, provided the capital is available, it suits any city, learning center and even community.

2. Value Proposition

It is essential for a business plan to state the value proposition which is a clear articulation of the reasons why the consumers need to subscribe to Limitless Fitness and Wellness Center over the competitors. In essence, value proposition makes clients choose a company, instead of the competitors and forms part of the marketing, operations, and strategy. It is simply the foundation for the competitive advantage (Emerson, 2003). What can be done to make a product or service valuable, useful, or supported by other services within the business that the competitors are unable to replicate. On the subscription, the clients will be able to make a comparison between the value propositions against other fitness centers and decide.

Limitless Fitness and Wellness Center aims at providing physical and mental support to the clients in a manner that allows them to live healthy and fulfilling lives by following nutrition advice and attending gymnasium. The business plan is outlined in a way that allows service providers to create a Centre focused on promoting healthy living, with gymnastics and nutrition being the core offering. Other services will be designed in such a way that they will add value to clients through strategic value offering. Through partnerships with Stay Safe insurance company and NutriMeal -Home delivery, the Center will create a suite of services where people can strengthen and live healthy while at the same time getting advice on nutrition.

At the same time, the business will focus on the following services to maintain their market share:

State of the art gym with modern equipment from quality manufacturers

Low cost with monthly, quarterly and annual subscription plans

Qualified trainers who will help the members achieve results within a short time and without wasting time

These services offered are expected to be designed in a way that consumers will be able to channel back into the core business and will differentiate offering compared to what exists in the health and fitness market (Afthinos, Theodorakis & Nassis, 2005).

3. Target Market and Unique Benefits

An ideal client for Limitless Fitness and Wellness Center is about 22-40 year old residing within the area, living or working within six miles. The clients believe in the idea of fitness and healthy eating but may find it difficult to motivate themselves for a solitary fitness activity like gymnasium, running or personal workout. For that reason, the facility will provide the best opportunity for such activities. The characteristics of the market include:

At least $50,000 annual personal income

Professional or white collar job

Lives or works within 6 miles from the Centre

Find difficulty in self-motivation exercise or simply prefer exercise with other

Believes in the importance of fitness to health

The remarkable benefit at Limitless Fitness and Wellness Center is the devotion to fitness as a social activity and their belief that clients are more likely to work out consistently when there are social aspects to exercise. At least all programs and services include some aspect of socialization. The exercise machines used at the facility are located across from another individual in a way that allows talking during the training sessions. The core message here is "Getting in shape and eating healthy together," putting an emphasis on the fitness goal through social means.

The services at Limitless Fitness and Wellness Center are unique from other fitness Centers such that they are positioned as social activities, and a social networking mobile application is used in helping clients meet, keep in touch with each other and also plan meeting with the trainers and training with other customers. The unique benefits include the following:

Many social groups at the Fitness Center

The exercise machines are placed strategically to allow social interaction rather than solitary exercise as compared to other fitness Centers

The mobile networking application mentioned above.

4. Competitive Analysis, Financial and Profitability

The health club industry has continuously increased the number of fitness centers. The United States, for instance, has witnessed a tremendous increase in the number of health clubs by 40 percent in the last five years (Ashford, Biddle & Goudas, 2014). Most fitness centers provide a variety of services aimed at addressing the needs and convenience of the consumers. Some of the services include personal trainers, state of the art facilities and programs that cater for the dynamic demography. The following is the SWOT analysis of Limitless Fitness and Wellness Center.

SWOT analysis

Strengths

The Centre commitment to result-oriented approach in attracting and maintaining clients in a competitive market

Health care, nutrition, and training program is well-though as per the need of layman

Low-cost service provision in the whole market and trained personnel

Excellent reputation

Weaknesses

Personal training services can be costly

There is inadequate marketing budget to attract larger business client

Opportunities

Market is rapidly growing

Increase cardiac diseases are causing people to pay importance to exercise and healthcare activities

People are getting used to gym and health clubs as their everyday routine of life

Large segment of the market is untapped, and low-income earners will be special focus which has been ignored by competitors

Threats

Economic meltdown can hinder the growth and development of health clubs

Low cost offers from the emerging competitors. However, this is a small level threat since the market is growing

Financial Plan

The start-up cost for Limitless Fitness and Wellness Center are summarized below:

Startup Expenses

Sources of Capital Investment requirement $1,000,000

_

Total $1,000,000

Startup Costs Fitness and wellness center development $346,000

Personnel $290,000

Capital Expenditures $150,000

Consulting Services $90,000

Promotion $5,000

Total startup cost $881,000

 

Profit and Loss Projection

Year 1 Year 2 Year 3

Sales Revenue Fitness and wellness center subscription $1,235,000 $4,950,000 $14,750,000

Sales of nutrition facilities ___ $45,000 $52,000

Total Sales Revenue $1,235,000 $4,995,000 $14,802,000

Operation Costs Fitness and wellness center development $346,000 ___ ___

Personnel $290,000 $560,500 945,800

Capital Expenditures $150,000 $130,000 $125,000

Consulting Services $90,000 $130,000 $150,000

Promotion $5,000 $6,000 $6,000

Total Operation Cost $881,000 $826,500 $1,226,800

Profits Before Taxes $354,000 $4,168,500 $13,575,200

Taxes (15%) $ 53,100 $ 625,275 $ 2,036,280

Net Profit $300,900 $3,543,225 $11,538,920

5. Conclusion

With the increasing need for exercise and appropriate diet, Limitless Fitness and Wellness Center can provide the best platform for youth and those in need of exercising. The center offers a gymnasium, nutrition advice, RMT & relaxation massages, life coaching trainers services, essential nursing services which are included in the membership subscription. The startup cost high due to the purchase of equipment, large room with partitions, and nutrition facilities. The center is expected to provide physical and mental support to customers and allow them to live healthy and fulfilling lives by following nutrition advice and attending gymnasium sessions. After implementing the infrastructural plan and operations strategy, the center is expected to achieve significant profit after three years.

 

References

Afthinos, Y., Theodorakis, N. D., & Nassis, P. (2005). Customers expectations of service in Greek fitness centers: Gender, age, type of sport center, and motivation differences. Managing Service Quality: An International Journal, 15(3), 245-258.

Ashford, B., Biddle, S., & Goudas, M. (2014). Participation in community sports centres: motives and predictors of enjoyment. Journal of Sports Sciences, 11(3), 249-256.

Emerson, J. (2003). The blended value proposition: Integrating social and financial returns. California management review, 45(4), 35-51.

 

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