Professional Documents
Culture Documents
OF
ENTREPRENEURSHIP
DEVELOPMENT
TOPIC: BUSINESS PLAN ON
HEALTH CLUB
Objectives
Target Market
For Youth- Gym, Aerobics, Spa etc.
The population has grown by 15% each year for the past three years. The current
population of Phagwara is 100,0000. Most importantly, the growth has been fueled by the
increased employment in the city's high-tech companies. This has attracted a type of
professional that is the target customer for the 24x7 Fitness Center.
The 24x7 Fitness Center will focus on the young urban professionals as its primary
customer base.
Market Analysis
2002 2003 2004 2005 2006
Potential
Growth CAGR
Customers
Young
10% 100,000 110,000 121,000 133,100 146,410 10.00%
Professionals
Other 0% 0 0 0 0 0 0.00%
Total 10.00% 100,000 110,000 121,000 133,100 146,410 10.00%
Strategy and Implementation Summary
24×7 Fitness Center will expand and create a larger childcare facility. In addition,
new equipment will be purchased for the childcare center. The new facility will be
able to entertain up to 75 children including 25 infaAnts.
Gym Plan
Simple Gym Plan
1 Day - Rs. 50
1 Week – Rs. 200
1 Month -Rs. 600
3 Month - Rs. 1600
1 year – Rs 6000
SWOT
Strength- Knowledgeable and Friendly staff
Financial Plan
Assets
Sales Forecast
2008 2009 2010
Sales
Memberships 364,000 480,000 620,000
Childcare 314,000 325,000 341,000
Massage 120,000 125,000 130,000
Physical Therapy 156,000 165,000 174,000
Fruit Bar Drinks 144,000 154,000 160,000
Total Sales 1,098,000 1,249,000 1,425,000
Direct Cost of
2008 2009 2010
Sales
Memberships 0 0 0
Childcare 0 0 0
Massage 60,000 62,500 65,000
Physical Therapy 84,000 92,000 98,000
Fruit Bar Drinks 24,000 27,000 30,000
Subtotal Direct
168,000 181,500 193,000
Cost of Sales
Personnel Plan
Personnel Plan
2008 2009 2010
Center
48,000 50,000 52,000
Manager
Assistant
36,000 38,000 40,000
Manager
Center Staff 240,000 270,000 300,000
Childcare 34,00
30,000 32,000
Manager 0
Childcare 170,00 200,00
147,000
Staff 0 0
34,00
Pool Manager 30,000 32,000
0
Tennis
30,000 32,000 34,000
Manager
Total People 23 28 32
Financial Plan
The following is the financial plan for 24x7
Break-even Analysis
The table and chart below show the monthly break-even point.
Break-even Analysis
Assumptions:
Average Percent Variable Cost 15%
Estimated Monthly Fixed Cost $60,763
Expenses
Payroll 561,000 624,000 694,000
Sales and Marketing and Other
48,000 55,000 60,000
Expenses
Depreciation 12,000 12,000 12,000
Leased Equipment 0 0 0
Utilities 12,000 12,000 12,000
Insurance 12,000 12,000 12,000
Rent 0 0 0
Payroll Taxes 84,150 93,600 104,100
Other 0 0 0
Current Assets
Cash 201,682 298,232 443,558
Accounts Receivable 54,592 62,099 70,850
Other Current Assets 122,000 162,000 192,000
Total Current Assets 378,273 522,332 706,408
Long-term Assets
Long-term Assets 200,000 250,000 300,000
Accumulated Depreciation 60,000 72,000 84,000
Total Long-term Assets 140,000 178,000 216,000
Total Assets 518,273 700,332 922,408
Current Liabilities
Accounts Payable 39,148 37,505 41,770
Current Borrowing 126,608 113,216 99,824
Other Current Liabilities 0 0 0
Subtotal Current Liabilities 165,756 150,721 141,594
Paid-in Capital 0 0 0
Retained Earnings 22,000 142,117 298,811
Earnings 120,117 156,694 210,804
Total Capital 142,117 298,811 509,615
Total Liabilities and Capital 518,273 700,332 922,408
(a) Each individual place of business of each health club shall obtain a license from the
Department of Consumer Protection prior to the sale of any health club contract.
Application for such license shall be made on forms provided by the Commissioner of
Consumer Protection and said commissioner shall require as a condition to the issuance
and renewal of any license obtained under this chapter (1) that the applicant provide for
and maintain on the premises of the health club sanitary facilities; (2) that the application
be accompanied by (A) a license or renewal fee of two hundred fifty dollars, (B) a list of
the equipment and each service which the applicant intends to have available for use by
buyers during the year of operations following licensure or renewal, and (C) two copies
of each health club contract which the applicant is currently using or intends to use; and
(3) compliance with the requirements of section 21a-226. Such licenses shall be renewed
annually. The commissioner may impose a civil penalty of not more than three hundred
dollars against any health club that continues to sell or offer for sale health club contracts
for any location but fails to submit a license renewal and license renewal fee for such
location not later than thirty days after such license's expiration date.
(b) No health club shall (1) engage in any act or practice which is in violation of or
contrary to the provisions of this chapter or any regulation adopted to carry out the
provisions of this chapter, including the use of contracts which do not conform to the
requirements of this chapter, or (2) engage in conduct of a character likely to mislead,
deceive or defraud the buyer, the public or the commissioner. The Commissioner of
Consumer Protection may refuse to grant or renew a license to, or may suspend or revoke
the license of, any health club which engages in any conduct prohibited by this chapter.
(c) If the commissioner refuses to grant or renew a license of any health club, the
commissioner shall notify the applicant or licensee of the refusal, and of his right to
request a hearing within ten days from the date of receipt of the notice of refusal. If the
applicant or licensee requests a hearing within ten days, the commissioner shall give
notice of the grounds for his refusal and shall conduct a hearing concerning such refusal
in accordance with the provisions of chapter 54 concerning contested matters.
(d) The Attorney General at the request of the Commissioner of Consumer Protection
is authorized to apply in the name of the state of Connecticut to the Superior Court for an
order temporarily or permanently restraining and enjoining any health club from
operating in violation of any provision of this chapter.
Salient features of the health club
Functional / Operational
Sum Tenant
Description Qty SF Total Tenant
Actual Usable
Tenant Occupiable Areas . Each SF USF
SF Factor
Front Lobby 80
Entry Lobby 1 80 80
Lockers 1,400
Male Lockers (70 lockers) 1 490 490
Male Toilets (3 stalls) 1 180 180
Male Showers (4 showers) 1 100 100
Female Lockers (50 lockers) 1 350 350
Female Toilets (3 stalls) 1 180 180
Female Showers (4 showers) 1 100 100
Exercise Facilities 4,320
Free Weight Room 1 960 960
Exercise Station Room 1 960 960
Aerobics Machine Room 1 1,200 1,200
Fitness Instruction 1 1,200 1,200
Support Spaces 320
Equipment Repair/Storage 1 200 200
Housekeeping 1 120 120
Plant Layout
Plant Inner Layout
Technological Plan
Machines
For Legs
For Lats (V-
Shape)
Weight stand 1
Bench Press 1
Upper Bench Press 1
Lat Machine 1
Lat Machine 2