Business Plan Gold Gym Marketing Essay

vexation Plan meretricious guerillaary school market EssayVenturing into get-go a Franchise is traditionally assured to yield a guaranteed Return of Investment than venturing into a unspoiled startup entity. Although Franchise itself is a vocation, it is considered as a way of doing business.It is thinkd by m any(prenominal) that Mr. Albert Singer who was the fall in of the Singer sewing machine, was the inventor and founder of the concept franchising. He was one of the earliest person cognise by to the highest degree as being associated with the concept howalways, the franchising really began long time before and has its root dating all the way digest to the Middle Ages (Blair Lafontaine 2005). As per the definition the work franchising is derived from ancient french which means holding a adjournicular privi peglege or right.Over the years, franchising business models have been evolved and proven to result in high crop businesses. Although there ar various me dium-large business entities in UK that offer franchising opportunities, only few business divisions result in lucrative ROI. After analysing various business analysis traces and market survey statistics, I have identified seaworthiness and wellness healthcare segment as highly futuristic immunity opportunity considering various factors including my current financial capabilities and business goals.Proposed trading aureate lycee FranchiseObjective and DescriptionAs a physical physical physical fitness franchise of Gold Gym, we volitioning provide an innovative health care, wellness and fitness function. The new-fashioned premises go away be equipped with the state of the art fitness equipments and provide facilities such as steam bathing and swimming. The manoeuver of the business leave alone be chosen in the heart of the town to provide fitness run to local community, besides outbeating the competition.Market Outline SummaryIn recent times multitude are getting more and more health conscious as they are more educated most health hazards involved due to un fit lifestyles, establishing a franchise business like Gold Gyms is very(prenominal) profitable as well as it can serve the local clients who want to avoid purchasing very expensive health equipments in their ho dos. It can in contributing to the society as healthy lifestyle would ensure less unwell people. 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 receipts industry and is seeing the fastest growth of its 20 year history with legion(predicate) more members eager to avail such services facilities than ever before. The comprehensive audit and the market intelligence report make by FIA covers national overviews of both the mankind and private sectors.Currently, 15 % of the total UKs population are members of a he alth club or government-owned fitness services and there is an untapped market potential of around 60% and its growing stably at 3 to 4 per cent an year. Besides this, the increased obesity guess levels are compelling large consider 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 revenue and guaranteed profits. However, starting a gym franchise is a better idea rather than starting a own gym because of the following factorsStarting a own gym is very expensive and requires minimal of a million pounds investments because of increased equipment costs and the soaring rates of premises leasing.Building own strike off (rather than running a franchise) requires higher upfront investment for marketting and punctuate building efforts that eventually impacts the customer erudition rate.Employee training and charge orientation is easy in a franchise.Inve sting in a franchise business is usually safer than venturing into a completely new startup due to proven 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 sign stages of the business, the proposed fitness franchise will earn revenues in the following streamsMembership Types1. Basic memberships (without trainers) Pricing will be between 15 to 25 and will vary time to time because of circumscribed promotional offers. Initially, it is proposed to suffice 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 initially will be set at 25 per month. This would include more weigh 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 hand as you go memberships as well which will target people looking for flexible paying options.Membership DurationMembership pricing will be offered prepossessing based on the following durations1. Monthly membership the payments would be taken on monthly rump2. 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 trim down fee pricing.3. Corporate memberships will be o ffered at reduced pricing.The proposed membership fee structures and the revenue projections have been described in the Financials and Projections section in the later part of the text below.Competitive AdvantageThe proposed fitness business centre will offer sort 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. more(prenominal)over, the proposed fitness centre will be in the heart of each town and within reachable distance from the nearby health services. Gym equipments in the facility 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). fourfold number of steam bath facilities and swimming pool facilities will be provid ed. Free car put 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 reality 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 strategy to outbeat the competition. exposit and EquipmentThe proposed gym premises will house various fitness and wellness facilities. There are in the main two different types of equipments which will be available in the proposed gym, firstly free weights and secondly high technology 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, dumbbells, bars, weight plates etc.In the proposed gym, we will facilitate and provide the follow ing equipmentsThe BarbellWhich is a long iron bar that is around 4 and 7 feet long on which multiple weight plates can be placed as per the required weight. weightiness PlatesWeight plates mostly range from 500 gms to 75 kgs. They are usually made of iron as it is a heavy alloy.Dum-bellsA dumbbell is a shorter form of a barbell, generally 10 15 inches in length. Dumbbell exercises are performed with a dumbbell in each hand.Tricep BarAn oval shaped long bar which has 2 couple placements for the hand. Although it is commonly called as a tricep bar, one can use it to workout other different parts of the body besides the triceps.EZ Curl BarIt is ideally knowing 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 emphasise (cause by weight) which a straight barbell normally can place on ones wrists.BenchesThis most common piece of equipment which is seen in every gym. There are mainly 3 different types of benches that are popular 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 quoin 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 stableness ball. The trainee can do a variety of exercises like bench run, shoulder press, dumbbell flies, lateral draw outs, pullovers, verso crunches, so on and so forth. This is one of the best piece of equipment and is very popular with fitness con scious people.Abdominal BenchIs simply just a decline bench that is used for doing exercises that focus on the abdomen. It has rollers that a person can hook their feet into so that the person does not slide off the bench.mentum 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 veracious for working(a) out the upper back, biceps, and forearms.Dip/Push 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 a nd 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 create the outer muscles of the thighs and for toning up.Leg Extension MachineThis machine is ideally suitable for isolating the quadriceps 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 calf 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 twenty-four hourss may have a leg extension and leg curl machine buil t in together into one machine, to maximise utilisation of spaceFinancials swell Funds and Budget PlanThe smashing investment and operating(a) costs of the proposed business is as precondition below(1) poor 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 Bank add 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 additi on to the 30,000 of bank loan.Financials Cash flow and Forecast (Projections)The cash flow for day to day operations for the initial twelve months will be incurred from the capital investment as explained in the above section. As per the projections explained below, the relegate even point (of 95,000) is expected to cross in the month of nine from the starting day of the business. Upon achieving the dislodge 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 business. In a modern estimate (if promoted through 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 case 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.ConclusionFitness 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 level s, some for feel good about themselves, some to look better and feel confident, and some to reduce mental stress levels. The carry of 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. farther 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.