Professional Documents
Culture Documents
Perillapaul Businessplanedited
Perillapaul Businessplanedited
Perillapaul Businessplanedited
Paul Perilla
Table of Contents
1
I.EXECUTIVESUMMARY
II.
DESCRIPTIONANDANALYSISOFTHEBUSINESSSITUATION
A.RationaleandMarketingResearch
B.Introduction
C.SelfAnalysis
D.
AnalysisoftheBusinessOpportunity,CustomerandLocation
E.ProposedOrganization
III.PROPOSEDMARKETING/PROMOTIONPLAN
A.ProposedProductorService
B.ProposedPricingPolicy
C.PersonalPromotion
D.NonPersonalPromotion
E.Place
IV.PROPOSEDFINANCINGPLAN
A.ProjectedIncome/CashFlowStatement
B.ProjectedThreeYearPlan
C.CapitalandRepaymentPlan
V.BIBLIOGRAPHY
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I.EXECUTIVESUMMARY
BitiousFitnessisunlikemostgyms.Wefocussolelyonourmembers,andonlyourmembers.With
ourprofessionaltrainerswhoobtainatleastadegreeinhealthsciences,humannutritionandexercise,or
kinesiology,weofferthebesttrainingexperienceinthewholeBayArea.Thecorporationheadquarterswill
belocatednearthemidstofthemainattractionsofSanFrancisco,whicharethepiersonTheEmbarcadero.
BitiousFitnessheadquarterswilltakeplaceonthesamelocationasthegymitself,whichisonthe8thfloor
ofthebuildingin100CaliforniaStreet.
ThecityofSanFranciscohasbeenboomingsincethelastU.S.recession.Despiteitshighcostof
living,peoplearemovingintoSanFranciscoingrowingnumbers.Inaddition,jobgrowthalsoaccelerated
sincetheeconomicrecoverybeganin2010,accordingtoUSAToday.Withtheperfectlocationtoopena
BitiousFitnessinthemiddleofgrowingcommunities,thebusinesswillbesuccessfulwiththeambitionthat
itwillprovide.Inordertosustainthebusiness,IestimatethatIwillneedaninvestmentof$500,000froma
smallbusinesstobepaidoffintenyearsorless,andanadditional$95,000fromanAngelinvestor,which
willbepaidoffin10years,withanadditional10%interestrate.
Ourmissionistogivetheyouthandadultsambitioninlifetobecomeconfidentinthemselvesand
becomesuccessfulthroughphysicalfitness.BitiousFitnessprovidesthebestqualitytrainingforthosewho
aspiretodogreatthingsandforthosewhoarealreadydoinggreatthingsinlife.
Inthe21stCentury,technologyisadvancingeveryyear.Thismeansthatpeoplearemovinglessand
less,becausethingsaregettingeasierandeasiertogetdonewithjustthetipsoftheirfingers.Childrennow
arespendingsevenandahalfhoursadayinfrontofascreen(e.g.TV,videogames,computers).Onlyone
andthreechildrenbeingphysicallyactiveeverydayandmorethan80%ofadultsnotmeetingtheguidelines
foraerobicsandmusclestrengtheningactivities.
Thetargetmarketareadultsandyoungchildrenwhowanttobemotivatedandpursuetheirambition
tofeelgreataboutthemselvesandtobecomesuccessfulinlifethroughgoodhealth.
PromotionalPlan:
PersonalTrainers
ObtainatleastadegreeinKinesiology,humannutritionandexercise,orhumansciences.
Atleast3yearsofexperienceasapersonaltrainer.
Facility
Highqualityequipment,sauna,tanningbeds,basketballcourt
Environmentallyfriendly
Media
Localnewspapers,radioads,socialmedia,sponsorshipsofcommunityevents,etc
FinancialPlan:
Tosustainthefacilityuntilthebreakevenpoint,aloanof$500,000fromsmallbusinesses
willbeneededinadditiontomy$80,000personalinvestmentfromfamilygiftsandmypersonalsavings
sincehighschool.Thisloanwillbeusedfortheconstructionofthe20,100squarefeetfacility($25square
feet/yr).Alltheequipmentneededwillalsobeincludedintheloan,plusmypersonalinvestmentof$80,000.
Tomeetmytotalstartupneeds,Iwillneed$95,000loanfromaninvestor.Iwillpaythisloanoffin3years
witha10%interest.
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II.DESCRIPTIONANDANALYSISOFTHEBUSINESSSITUATION
A.RationaleandMarketingResearch
Rationale:
Childrenandadultsdonothaveenoughmotivatorsinlifetotakecareoftheirphysicaland
mentalhealth.BitiousFitnessisawaytogivepeopleambitioninlifetobecomesomebody.Iwanttogive
themconfidencethroughgoodhealthinmentalandphysicalappearance.BitiousFitnesswillinclude
employeeswhohaveadegreeinkinesiology,humannutritionandexercise,orinhealthsciences.These
employeeswillshowprofessionalisminmybusiness.Mostpeoplewouldmakemoneyasthereasonto
eliminatethegymastheiroption,butBitiousFitnessofferlowcostmembershipsforlowincomepeople.
MarketResearch:
TheobesityplaguethatiscurrentlygoingonintheUnitedStates
hascausedthefitness
industrytogrowinpopularity.AccordingtoFranchiseHelp.com,over72millionAmericansareclinically
obesesomymarketisdefinitelyindemand.WiththeprofessionalsthatIoffer,allthosewhosufferwill
definitelyreceivethehelpandmotivationthattheyneed.Gymmemberswereconcentratedhighlyonthe
1835agegroup.However,withtheincreaseinolderagegroups,membersarespreadouttoallagegroups
nowadays.Theagingdemographicwillresultinawidermarketformybusiness.Also,withmostgymsthat
doesnotallowchildrenorteenagersundertheageof18,BitiousFitnesswillstandoutbygivingouryouth
thechancetoachievetheirgoalsatayoungage.
B.Introduction:
MyproposedbusinessisastartupcalledBitiousFitness.NearthemainattractionofFishermans
WharfinSanFrancisco.BitiousFitnesswillbelocatedononeofthebuildingsofSanFranciscoin
CaliforniaStreet.StepsawayfromtheEmbarcaderoBartStationandMunibusstops,BitiousFitnesswill
beeasilyreachedbyeveryoneinthecityandevenoutofthecity.Iwillbealimitedliabilitycorporation
typeofbusinessfortheadvantagesthatfollow.Myfitnesscenterisunlikeanyothergymslike24Hour
FitnessorBallysTotalFitness.Youdontjustcomeintoworkoutonyourowninstead,everysessionis
runbyapersonaltrainer.However,theamenitiesthatBitiousFitnessofferwillbeopentothosewiththe
committedplanmembership.BitiousFitnesswillbeoneofakindtoalltheothergymsacrosstheUnited
States,becauseoftheprofessionalsthatIwillsupplyandthevarietyofagegroupsthatarewelcomeat
BitiousFitness.Mypersonaltrainersareprofessionalswhocarryatleastadegreeinkinesiology,health
sciences,orhumannutritionandexercise.Peoplewhoaresufferingfromanorexiaorevenfrombeing
overweightwillbetheperfectmarketformybusiness.BitiousFitnesswillconsistofbootcamps,
transformationchallenges,andmanyotheractivitiesthatwouldresultingreaterconfidenceorselfesteem.
Myclothinglinewillalsobeincorporatedintomybusiness,whichwillretailinthefacility.Thisclothing
linewilladvertiseBitiousFitnesswhileitalsogivesmycustomerstheprideofbeingambitiousinlife
throughbeingphysicallyfit.
C.SelfAnalysis:
IknowthatIamwelloverqualifiedtorunthisbusinessformanyreasons.Firstofall,Ihavebeen
oneofthevictimsofbeinganorexic.However,nowIsufferfromhavingfastmetabolismwhichgivesme
thedisadvantagetogetthemuscularbodythatIdesire.Thisexperienceinlifegivesmetheambitiontodo
whateverIcantofinallyfeelconfidentwithmyownphysicalappearance.Inthiscase,Ihavetheambitionto
dowhateverIcantorunthisbusinesswiththebestofmyabilities.Second,Ihavetheexperienceofworking
atagymandalsotheexperienceofbecomingamemberatagym.Thisexperienceexposedthethingsthat
aremissingfromgymsthatmostpeoplewouldwanttohaveasmembers,whichIcouldincorporateintomy
business.Obtaininganinternshipatalocalgym,TheInnerAthletegavemetheknowledgeofrunninga
fitnessindustrybyworkingalongsidetheownerofthegym.Asanintern,Ialsogettoworkwith
professionaltrainers,whichwillgivemetheideaofmyidealtrainersinmyfacility.Partofmyjobasan
internatTheInnerAthleteistocreatemarketingmethods,whichhasactuallybeenusedmultipletimes
already.Thisjobexperiencewillamelioratemyknowledgetomarketmyownfitnessgym.Onthebusiness
side,theknowledgethatIobtainedfrombeingapartoftheBusinessAcademywillgivemetheadvantageto
runmybusiness.Havingwrittenmanybusinessplansalready,Iknowhowtooperateandmanagea
business.Formymarketingorsalesexperience,Icurrentlyworkasasalesassociateatashoestore.Thisjob
givesmemoreknowledgetomarketandputmybusinessoutthereinthepublicforpeopletosee.In
addition,asoneofthefoundersofmyschoolsveryownstoreIalsoobtainmoreknowledgeinthebusiness
industry,whichwillguidemetosuccesswithmyveryownfitnessgymbusiness.
D.AnalysisoftheBusinessOpportunity,CustomerandLocation:
SanFranciscoishometomorethan8hundredthousandpeople.Infact,itisthesecondmostdensely
populatedcityinAmerica.SanFranciscoisthefocalpointoftheBayArea.Whatbetterlocationtoputa
businessinthanSanFrancisco?SanFranciscowilloffermeaherdofcustomerseveryday.Ithasthehighest
percentageofresidentswhoobtainacollegedegree.Withamedianhouseholdincomeofalittleover
$80,000.Iwouldnothavemuchproblemswithlowincomemembersasaresult.However,Iwillgive
opportunitiestothosewhocantafforditbyprovidingalowercosttolowincomemembers.SanFrancisco
isoneofthebestcitiestobuildabusinessin,becauseofthehightrafficthatitprovides.Mycompetitorsin
thisbigcityareverylow,anddonotofferthesame,uniquequalitiesthatmybusinesshastooffer.
The8thfloorofthe100CaliforniaStreetbuildinginSanFrancisco.20,173squarefeetofspace.Roomsare
nottruetosizeonthepictureWeightsandcardioequipmentwillbeinthetrainingroom.
E.ProposedOrganization:
Iamalimitedliabilitycorporationtypeofbusiness.Throughacorporation,Icanexpandintoother
bigcitiesaroundtheUnitedStates.AnadvantagethatIhaveasacorporatebusinessisthatIwillhave
limitedliability.OneofthekeyfeaturesofmyuniquefitnessgymisthatIamincorporatingdaycarecenters
forthechildrenorsiblingsorevenpetsofmymembers.Thisisorganizedbyprovidingspaceforlocalsitters
torentthatspacetoruntheirbabysittingandpetsittingbusiness.Membershipplanswillbeadjustedifmy
membersneedasitterwhiletheyareworkingout,and15%ofthatmembershipcostwillgotothebaby/pet
sitter.BitiousFitnessemployeeswillonlyconsistofanumberofprofessionalpersonaltrainersandcoaches.
Professionalswhowilltrainandpushchildrenandadultstogetactive,ortogetwheretheydesire.Somy
memberswillbeorganizedbysigningupfortheirdesiredtraineruntiltheyarefull(upto5055membersfor
eachtrainer).SinceIwillbekeepingmydoorsopentomytrainerspersonalcustomers,Iwillalsoget
additionalincomefrommytrainers,becausetheywillpaymeforprovidingthemthefacilityandequipments
totraintheirpersonalcustomers(allpaymentswillbeusedtomaintainandmanagethefacility).Allof
Bitiousmembersandmytrainerspersonalcustomerswillberequiredtosignawaiversothateareless
liableforanyinjuriesorcatastrophesthatmighthappeninmyfacility.Andyes,eventhestudentsor
childrenwhoaremembersorclientsofmytrainerswillrequiretheirparentstosignawaiverandcontract,
regardinganyaccidentsthattendtohappeninthegym.Myfacilitywillbemaintainedbyme,theownerand
evenmypersonaltrainers.CleaningtheirworkspaceispartoftheirjobasthetrainersatBitiousFitness.I
willalsohaveunpaidinternswhowantstheexperienceofbeingaroundprofessionaltrainersandfirsthand
experienceofrunningafitnessgymlikemyself.Theseinternsorvolunteerswillrunthefrontdeskandclean
thefacility.
III.PROPOSEDMARKETING/PROMOTIONPLAN
A.ProposedProductorService:
BitiousFitnesswillmarketthroughsocialmedia,mails,emails,phonecalls,andevenbillboardsand
TVcommercialsonceafterweexpand.Myproductismyfacilityandwhatwehavetooffer.The
membershipwillcost$135tostartamembershipandwillbe$75dollarsmonthly,whichisnocommitment.
Nocommitmentmeansthattherearenocontracts,andtherearelessbenefits.Somebenefitscomewiththe
useofourbasketballgym,saunas,andtanningbeds.Thesewillberestrictedfromthosewhohavetheno
commitmentmembershipplan.Thegoldmembershipplanisusuallyforthosewithmidorhighincome
members.Thiswillcostthem$150tobecomeamemberand$90everymonth.Thiswillcomewithallthe
amenitiesthatwehavetooffer(basketballcourt,saunas,tanningbeds,etc).BitiousFitnesswillalsooffer
oneononepersonaltrainersifourmembersprefertoworkoutwithsomeonewhowillfocusonherselfor
himselfalonewiththepriceof$200permonth,3sessionsperweek.Physicaltherapistswillalsobepresent
toanyonewithanappointment.BitiousFitnesswillstandoutfromotherfitnessgyms,like24HourFitness
orBallysTotalFitness.Why?BecauseBitiousFitnessisallaboutgreatqualityexercises.Itisnotour
equipmentthatdoesthejob,butratherourtrainerswhowillpushourmemberstotheirlimitstogettowhere
theywanttoget.AnotheruniquefeaturetoBitiousFitnessisourdaycarecenterforourmemberspets
and/orchildren.Myfitnessgymwillprovideaspaceforpetstobewashed,groomed,exercised,andeven
fed,allwhilemymembersarebusyexercising.Inaddition,mymemberschildrenorlittlesiblingswillhave
playgrounds,exerciseplans,food,andmoretokeepthemoccupiedduringmymemberstimeatthegym.
Theseadditionstomyfitnessgymarenotemployedbymycompany.Theywillberentingaspacetorun
theirownbabysitting,andpetcarebusiness.Thisway,Iwouldbelessliableforanythingthatmayhappen.
Theseamenitieswillbeincludedinthemonthlypaymentoftheirmembershipplan.
B.ProposedPricingPolicy:
YourBusinessItem
PriceForItem
MembershipFee(NC)
$135
Monthlypayment(NC)
$75
GoldMembershipFee
$150
GoldMonthlyPayment
$90
PrivateSessions(Monthly)
$200
Apparel
$25
CompetitionItem
PriceForItem
Difference+/
MembershipFee(NC)
$200
$65
MonthlyMembership(NC)
$50
$25
MidMembershipPlanFee
$100.00
N/A
MidMonthlyMemberPlan
$60.00
N/A
FullBenefitMemberFee
$0
$150
FullBenefitMonthlyMember
$70
$20
(LessbenefitsthanBitiousFitness)
CompetitionItem
PriceForItem
Difference+/
MembershipFee(NC)
$100
$35
MonthlyMembership(NC)
$10
$65
PFBlackCardMemberFee
$40
$110
MonthlyPFBlackCardPlan
$20
$70
Competitionitem
PriceForItem
Difference+/
MonthlyMembership(NC)
$70
$5
MonthlyFullBenefitMembership
$90
$0
Nomembershipfees
$0
N/A
PersonalTrainers
$180
N/A
C.PersonalPromotion:
BitiousFitnessisallaboutthecommunityandtheirwellbeing.Inordertosucceedasabusiness,we
willinvolvethecommunitywithfuneventstoalsohelppromoteourgyminafunandcheapway.Havinga
strongpromotionalprogrammeansnothing,butsuccesstoourbusiness.Withourwelltrainedemployees,I
willmakesurethatourmemberswillstayenergeticwhiletheyfocusontheirworkouts.Theywillleavethe
gymwithasmileandthefeelingofagreatworkoutsessionastheyprogresseveryday.Otherpromotions
include:
Flyersinworkplaces,schools(elementary,middleschool,highschools,colleges),residentialmails,
andevenfastfoodrestaurants.
Couponswillbeofferedonlineforexclusivemembershipplans
Discountof20%offwillbeofferedtothosewholosesorinothercases,gains5poundsperweek.
Thediscountwillonlygotowardsonemonthofpayment.
Wewillbeinvolvedinschoolstohelpthemfundraiseforanyevents.
Wewillalsooffera15%discountoffoftheirmembershiptoeveryhighschoolersorbelow.
BringabuddyinforfreewillbeavailableeveryMonday.
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D.NonPersonalPromotion:
Instagram,Twitter,andFacebookwillbecreatedtoreachourmaintargetmarket,whichareyoung
adults.However,nowadaysthesocialmediagivesmeawidervarietyofagegroupstopromoteto
online.
Twitterwillbeusedtoletpeopleknowourschedulefortheday.Wecanalsoletthemknowwhich
trainerswillbeavailablethatday,andwhatspecialeventswilloccur.
Facebookaswellasourpersonalwebpagewillbeusedtoinquirepotentialemployeesorinterns.
Facebookwillalsogiveoutcouponsrandomly.
InstagramwilldorafflesandgiveawaystomemberswhoshoutoutourInstagrampage.
Dunk,3point,andskillchallengeswilltakeplaceannuallyaourbasketballcourtforpromotional
gatherings.
Createapersonalwebpagetoinformourmembersorpotentialmemberstheschedules,andspecial
eventsthatwilloccur.Ourcontactinformation,hours,andevenourpersonaltrainerswillbe
availableatthepageforsignups.
SpecialeventslikemarathonswillhelppromoteBitiousFitness.
BusinessCards
NameontheCaliforniaStreetBuilding.(Billboards)
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E.Place:
Ourchannelofdistributionwillbeothercorporatebusinesses,suchashospitals,sportingarenas,and
evenprofessionalathleteswhowesponsor.Thesedistributorswillleadustoourmaincustomers,whichare
thepeoplewhoareinneedofhelporpeoplewhowanttobecometheathletetheylookupto.Thecostsofall
thesedistributorsarealreadyincludedintomysignageand/orpromotionaloverheadcosts.AllAmerican
Fitnesswillbeourdistributorforequipmentsandaccessoriesusedbyourmembers.Wewillpartnerupwith
AllAmericanFitnesstogetdiscountpricesonallequipmentsneededtorunmybusiness.Allapparelwillbe
distributedbyalocalprintershopwhowilloffermeadiscountprice.Apparelwillbedesignedbymeorby
mycollaboratives.
IV.PROPOSEDFINANCINGPLAN
A.ProjectedIncome/CashFlowStatement:
Thepredictedrevenuefrommembershipmonthlypaymentsandapparelisestimatedat$1,314,000
forthefirstyear.Afterpayingforthecostsofgoodsold,almost$163,000andanestimatedcostof
$1,019,000fortheoverheadcosts,thenetincomewillbeapproximately$132,000.
Year1
Sales
$1,314,000
COGS
Apparel
$8,000
Equipment/Machines
$153,000
Licensing
$2,000
TOTAL:
$163,000
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OverheadCosts
Rent
$505,000
Utilities
$10,000
Insurance
$3,600
Wages
$250,000
OfficeSupplies
$3,000
Repair/Maintenance
$5,000
Interest
$18,200
LoanRepayment
$68,200
InvestorLoanRepayment
$37,000
1.5%Payroll+8.75%SalesTax
Payroll:$3,750+Sales:$114,975=~
$119,000
TOTAL:
$1,019,000
NETINCOME: $132,000
Otherfirstyearstartupcostsinclude:
Year1
BeginningInventory
$200,000
Publicity/Signage
$20,000
Construction
$300,000
Equipment
$155,000
TOTAL:
$675,000
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B.ProjectedThreeYearPlan:
AfterthefirstthreeyearsofBitiousFitnessbeingopened,Iexpecttohave200moremembers.This
meansthatIwillhaveanincreaseofatleast100membersforeachyearafterthefirstyear.Inthatcase,
BitiousFitnessisestimatedtoincreaseinmembershipsalesby13%overitsfirstthreeyearsopen.Bitious
Fitnesswillbecomepopularasourpublicityincreasesthroughournewinnovativepromotionsinthefuture.
Ourwageswillalsoincreaseby33%,becauseofthefactthatweareaddinganadditionaltrainereachyear
thatwegained100moremembers.
Year1
Sales
Year3
Year4
$1,314,000
$1,488,540
$1,665,060
Apparel
$8,000
$9,000
$10,000
Equipment/Machines
$153,000
$5,000
$5,000
Licensing
$2,000
$0
$0
COGS
TOTAL
:
OverheadCosts
$163,000
$14,000
$15,000
Rent
$505,000
$505,000
$505,000
Utilities
$10,000
$10,000
$10,000
Insurance
$3,600
$3,600
$3,600
Wages
$250,000
$333,000
$416,000
OfficeSupplies
$3,000
$3,000
$3,000
Repair/Maintenance
$5,000
$5,000
$5,000
Interest/LoanRepayment
$86,400
$86,400
$86,400
InvestorLoanRepayment
$37,000
$37,000
$37,000
Payroll+SalesTax
$119,000
$136,000
$152,000
TOTAL:
$1,019,000
$1,119,000
$1,218,000
NETINCOME:$132,000$355,540$432,060
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C.CapitalandRepaymentPlan:
Ihaveputinapersonalinvestmentof$80,000andborrowinganadditional$500,000fromasmall
business.MyinitialloanswillbemonitoredbytheSmallBusinessAdministration(SBA).Iwillalsoaskfor
a$95,000loanfromaninvestortobepaidoffin3years,includinga10%interest.Capitalexpendituresare
firstyear,initialinvestmentthatwasneededtoopenthedoorsoftheBitiousFitnessfacility.Iproject
making$1,314,000fromfirstyearsalesandwillacquire$1,182,000inoperatingexpensesinthefirstyear
with$132,000toconveyforwardintothenextyear.
Iplantohaveashorttermrepaymentplanof10years.The$500,000willberepaidintenyears
comingtonearly$68,200,whichIhaveincludedintheoverheadexpenses.
Growthinrevenueisgeneratedthroughourapparel,signage,andotherpromotions.Salesgrowthis
projectedat13%foryearstwoandthreeasBitiousFitnessbecomesmorepopular.
AnewFitnessgymattheheartofSanFranciscowillhaveapositiveimpactinthecommunity,forallage
groups,andallotherbusinessesaroundthearea.BitiousFitnesswillbringambitionasweworkforsuccess.
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V.BIBLIOGRAPHY
Information:
http://www.msfregosa.com/bizmgmt12th.html
https://42floors.com/us/ca/sanfrancisco/100californiast
http://www.deca.org/highschoolprograms/highschoolcompetitiveevents/
http://www.planetfitness.com/
http://fitnesssf.com/
http://www.allamericanfitness.com/
http://www.statisticbrain.com/gymmembershipstatistics/
https://www.franchisehelp.com/industryreports/fitnessindustryreport/
http://www.payscale.com/research/US/Job=Personal_Trainer/Hourly_Rate
http://www.amortizationcalc.com/
ExamplePapers:
http://www.deca.org/wpcontent/uploads/2014/08/HS_ENPI_Web_Sample.pdf
http://www.deca.org/wpcontent/uploads/2014/08/HS_ENPF_Web_Sample.pdf
Pictures:
http://fitnesssf.com/
http://www.planetfitness.com/
https://www.crunch.com/splash/
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