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Smart Gym Business Plan
Transcript of Smart Gym Business Plan
we are the only fitness club in UAE that offers smart fitness: all fitness machines are equipped with smart applications that works as health coaches and provide each member with practical recommendations of his fitness routine that fit within his lifestyle. All the workouts data are tracked and can be accessed anytime by simply downloading the application on the member’s smart device.
Hours of operation:
The club facilities are open from 6:00 a.m. to 10:00 p.m. Saturday-Thursday, and from 6:00 a.m. to 12:00 a.m. on Friday
Smart Gym is a partnership owned by 5 shareholders:
Majdouline Ghouzlan (General Manager): with 14 years’ experience in business administration, development & project management.
Salma Ahmed (Marketing Manager):
with 8 years’ experience in customer care & relationships & market analytics.
Mohamed Louhassi (Business Manager): with 15 years’ experience in sales, communications & market research.
Bakhtiar Ahmed (Operations Manager): with 9 years’ experience in project management & operations.
Marius Gomez (Finance Manager): with 23 years’ experience in credit control, costing & business analysis.
Target market segmentation strategy
UAE is the most obese country, ranks as the fifth fattest nation in the world.
Health care, fitness club and gym industry has been changing its trends very quickly . Last five years have seen major changes in trends such as following:
1. Individual usage of fitness and health care training equipment has increased.
2. Body workout and exercise has become a daily life routine of many in the last decade.
3. Fitness memberships are increasingly getting popular in office environment of Dubai.
The Market Analysis for Gym and fitness training reflects the demographics and standard of living.
Smart Gym is located in The Dubai Mall, the world's largest shopping destination.
The popularity for health and fitness has spread out over all age groups
It is no surprise that location is a key factor when it comes to business but especially for fitness center.
This segment refers to the goal of losing weight. It is quite essential for smart gyms and fitness centers to specialize in weight loss programs and overweight people perceive that regular exercise is important for them to participate in.
The “taking shape” segment consists of consumers who are primarily interested in improving the look of their body, either way through bodybuilding and weight training, as well as forms of body sculpture.
Typically this segment is comprised of a younger demographic, but has an equal mix of males and females.
Consumers in the “peak performers” segment are highly disciplined and self-motivated individuals when it comes to their health and fitness. These consumers are attracted by flexible opening hours and a broad choice of equipment and facilities.
The last market segment in this example for those consumers who are heavily involved in sport, perhaps at competitive level, and use Smart Gym to help improve their strength and general fitness in order to participate in their chosen sport.
In this segmentation there is five different market segments have been constructed, as follows:
Consumers in this particular market segment attend a fitness center because they are trying to improve their health, strength, or because of “doctor’s orders”. These consumers can benefit from personal trainers and relationships with fitness center staff, which should increase their level of confidence.
As the obesity numbers continue to bloat, health organizations are looking for ways to reduce healthcare costs: Hence enter Smart Gym which are designed as ‘preventative’ care or they incentive certain behaviors like smoking abstinence, gym memberships, nutrition tips, sports fitness club etc.
Smart gym tends to target a market designated to group of customer who tend to follow quick, fast food unhealthy lifestyle.
Another target group is young mothers who are looking for a club that will fit their needs and keep their children close.
Large number of baby boomers have an interest in video games, heart rate monitors, and other technologies that can track expended calories, offer alternative workouts, and track fitness progress over time.
Since Smart Gym is equipped with Products having smart features ( E- series treadmill) this is likely to attract the customers who does not love to exercise on daily basis.
The UAE is ranked 16Th worldwide, with 19% of the UAE population living with diabetes.
These statistics indicate that the region has high risk factors for diabetes, mostly related to rising obesity rates and physical inactivity.
Consequently people are becoming more health conscious and turning towards healthy and diet foods.
Demand for health products increase as public awareness of healthier eating habits grows.
Recognize the need to have physical activity in their lives.
Increasing heart and obesity disease are causing people to pay importance to exercise and health care activities, increase in health concern/ awareness.
Marketing and Sales Strategy
SMART GYM has prepared the following financial statements for a three year projected period. Income Statement, Balance Sheet, Cash Flow Statement. Also included under the Financial Plan is a breakeven analysis.
SMART GYM requires AED: 2,000,000 to start up the business. The owners will invest AED: 1,000,000 while the remaining AED: 1,000,000 will be funded through a start up loan from a bank in UAE.
The breakeven point in the 18th month of operations is 762 members. The financial projections anticipated breakeven point will remain consistent.
Projections show the company will have a net earnings of AED: 2.6 mio at the end of its second year in operations. Earning projection for the third year are expected to be AED: 3.1 mio
SMART GYM anticipates a growth in sales with a relatively steady operating cost. Sales growth between the 1st & 2nd year of operation is 85% which is the result of the 1st year’s membership being spread over a period of 12 months. From the 2nd year of operation the company will have a minimum growth of 10%
Forecast of continuous growth in the fitness industry is the key to SMATR GYMs financial success.
SMART GYM will achieve its breakeven on completion of 18 months of operation
as per below chart:
Projected Profit and Loss
SMART GYM gross margin in the 1st year of operations will be 92%, however in the 2nd & 3rd year of operations it will improve and maintain a steady margin of 95%
Midway through the second year of operations the company will breakeven and will begin to maintain a healthy net profit margin in the range on 32 to 34 %
Assumptions & Sales Forecast:
• Fitness and weight loss has been growing in popularity in the UAE hence, market growth for the fitness industry is to maintain a minimum of 10% growth for the next 3 to 5 years
• By the end of the first year of operations the projected membership is expected to touch approx. 725 members and with a projected annual growth of 10%, by the end of the 3rd year of operation the total members are projected to touch approx. 880 members
• Sound social and economic condition in the UAE is a boost for the industry
• Simplified borrowing procedure with the banks and attractive interest rates in the UAE
Projected Cash Flow
In the second year of operations the company will be in a position to maintain a positive and healthy cash flow, which gives the company an option of investing into opening a second outlet in the third year of operations.
Projected Balance Sheet
Two Sales Representative at the Gym door distributing flyer for Dubai Mall Shoppers
Smart Gym Mobile application
Variety in classes such as Zumba, Yoga to avoid been Boring gym.
Using the social media
Hiring Gym attendance who really give clients ATTENTION
People wants to go to the Gym when they are able to, not when the Gym is opened.
Corporate offers for surrounding SME companies
Exit survey for the canceled members
Not To DO for a gym promotion
Daily deal website (Souq.com, Coupon and Groupon...ECT) might be a great way to increase gym sales, in the short-term, but if you’re looking for long-term way to sell more gym memberships, daily deal sites are not the answer as once we give someone 50% or 75% Off discount as a special deal, we will be facing hard time getting him to pay for the full price.
To DO for a Gym promotion:
Selectively giving the Mall Walking client FREE access to our smart Gym for one week. If they like, they will happily pay the full price of the membership fees once their free promotional offer expires.
How to improve sales for OUR Smart Gym
SMART GYM BUSINESS PLAN
Projected profit and loss
Projected Cash Flow
Spa, Sauna & Jacuzzi
Our Smart Gym will offer guests with the opportunity to be pampered and treated in its on-site luxury Spa. This Spa will be one of the most well attended Spa in Dubai, equipped with state of the art Sauna facilities as well as featuring a romantically lit Jacuzzi, perfect for a late night relaxation. Access to these top of the range Spa facilities provides added indulgence to workout sessions, being the perfect place to wind down after a long day of sightseeing or attending business meetings.
A Company can outperform rivals only if it can establish a difference that it can preserve.
Business development strategy
Smart Gym will follow this service execution model to enter in the health club market
Why smart products?
- Straight forward client communication & education
- Self-selection by customers
- Modular equipment design
- Limited customer service
- Gathering data & trend is much more simplified
- Assign personalized workout programs
- Allowing members to create their own workout programs
- Gets users involved in interactive and gratifying challenges via social media
- Supervise members' lifestyles wherever they are
- Turning time spent by members working out into marketing opportunities
- Keeping constant tabs on our equipment
Smart nutrition zone: A personal calorie management system
Plan and have total control over meals. An excellent guide to help our customers on their eating and weight control.
Key features include:
-BMI - Body Mass Index
-Daily recommendations (Protein – Carbs – Fat)
-Daily caloric expenditure average (Total and during the physical activities)
-Calories count (amount of calories you should ingest)
-Calories calculator via the app
-Weight and height history being maintained in the app
-Waist circumference index
Smart equipment, facilities & sessions in Smart Gym
Smart treadmills with integrated TV
Performance + Ergonomics + Biomechanics
Smart cycle with road bike sensation
The science of Yoga and meditation can fix most of these diseases, and possibly answer the deeper questions that become relevant as one evolves.
Smart skipping rope
A clever activity tracker within a high tech jumping rope. Smart data meets fitness. Track calories & sync your exercise in the phone. A fundamental fitness tool for centuries, the skipping rope exercises the whole body & is the ultimate cardio exercise.
We take the "work" out of workout
Smart app, smart cloud & smart fitness software system for iOS, android & windows devices
Key features include:
-Monitoring in real time of the test and training sessions
-Storage of test and training data
-Trend analysis of the training results and performance comparison
-Reporting system with graphics, evaluations and judgments
-Push notifications that acts as reminders
Functional training & stretching equipment
Exclusively for kids between 5 and 12, we in Smart gym want to cater to the needs of our youngest guests. The club offers a wide range of entertainment and educational activities such as PlayStation, climbing walls, toys, and arts and crafts. Our club also has a daily schedule of movies, storytelling, dance and music.
Under close supervision by our attendants the children will enjoy our fun-filled play area. They can participate in fitness activities, watch movies, color, play games, and read. All of our specially trained attendants are certified in CPR and First Aid and must pass a background check before they're hired.
Operations And Implementation
Smart Gym will charge Aed800 per month.
Add-on in annual subscription being a free month of session for a total of Aed9,600
Demandable, yet convincing against competitors considering day-care & spa.
We will provide a 7% discount to one who subscribes for a 6month plan, so instead of having to pay Aed4, 800 they would pay Aed4, 500.
A subscription fee of Aed500 per customer will be charged, which will help us in subscribing the customer with our database.
In return we will provide them with goodie bag consisting of gloves, bag, sippers, towels & all of which having our brand embarked in it.