Professional Documents
Culture Documents
Gym
Gym
GYM/FITNESS CLUB
Content
4)Operational capacity
7) Marketing Strategy
Ethiopia is one of those places where awareness about health and importance of regular
exercise is becoming As Natural as eating or showering .commercial Health Club industry is
emerging as one of the good business venture in Addis Ababa, both males and females are
getting conscious and aware about their health and feel the importance of exercise in their busy
life .
The rise in these awareness is attributed to growing working middle class with high exposure
to health and fitness requirements through media, internet and accessibility of health and fitness
club in close proximity to their surroundings ,on top of health benefit gym can also be a great
Social Hub especially if a group of friends take part in group sessions given in the gym.Benefit
of exercise in gym is that it is done in a safe friendly and comfortable environment with fitness
experts giving a regular weight and exercise review to check progress towards whatever goal
initially set
For those reasons mentioned above the number of people joining the gym is rising
exponentially.Lemikura sub city Is the of the largest sub city in addis having large number of
people with middle class and higher middle class status and yet the number of fitness center to
accommodate those people is minimal due . I am planning to open the health and fitness club in
the subsidy specifically located at the new Mall of NOAh real estate Ayat .
The total proposed cost of the gym is estimated to be 15 million out of which 3 million will be
covered by the owner these costs include Capital Investments of 105 million And a sum of 3.5
Million as working capital
The proposed health and fitness club will provide indoor facilities of gymnasium and aerobic
exercise to all male and female members and will offer personal fitness training service for both
through qualified instructors and trainers. The club will be established in a rented premise
located at NOAH real estate having covered area of 350 sq m.It is Centrally located targeting a
residential Society estimated to be a minimum of 30,000 people in the nearby real estate
including NOAH,SUNSHINE , AYAT and WALMAS, in addition other real States and
condominium with a few minutes Drive include YERER REAL ESTATE, AYAT condominium
ETHIOPIAN AIRLINES employees village and many other private and commercial apartments
are residential sites targeted by the business. Future projects like PHISON,FLINTSTONE and
many other government owned AYAT condominiums and other Private and Commercial
Apartments are also considered targeted potential future customers for the gym
4)OPERATIONAL CAPACITY
The operational capacity of the Health and Fitness business mainly depends on the market size
and potential clients,At the initial States the gym will be engaging 02 instructions 02 Gm helpers
04 permanent Staff including manager. The gym will operate in two different sessions of 8 hours
each morning and evening on a daily basis.The total capacity of the club is assumed 300
members per day,at initial stage the club will be accommodating 150 members both male and
female per day, in the first year the club is expected to be operating with 75% capacity by
handling 225 members per day.
The maximum capacity utilization is assumed 95% members which will be attained during the
third year of operation while the ratio of male and female members is considered 60% male and
40% female.
The details is provided in the following table
DESCRIPTION DETAILS
Total capacity of Club (per day) 300 minimum
capacity during first year 225 members
Year to annual maximum capacity 3 year
Session of operation morning and evening
ratio of male and female member 60% male 40% female
D) giving up most priority to provide members our lifestyle that could encourage Fitness through
the safest and latest means product like heart rate monitor calorie expenditure display units Etc
E)maintaining clean hygiene and health environments
F)Market and promotion through various Channel example outdoor advertisement pamphlets
promotion through social media Etc
The increasing population and high concentration of educated working class in major
cosmopolitan cities like addis offers a very lucrative business opportunity for health and fitness
club the Target customers for the business are the large number of residents living in the
locations Near our gym ,the estimated number of potential residents is close to 50,000 .if only
1% these residents get to be our customers our member on average will be 500 members.
6)MARKETING STRATEGY.
In order to capitalize on potential customers ,the project will require an effective promotional
campaign.This will be accomplished through words of mouth ,posters on billboards ,pamphlets
social media ,as well as online advertisement of different websites.Improving the quality of our
service and offering fair but competitive price for our service will help attract new customers
and be able to compete with other competitors.
The proposed project is located in Addis Ababa City Administration,Lemikura Sub-City woreda
GYM EQUIPMENT
Aerobic Treadmill (4ea) 1,000,000 Birr
Elliptical training bike((3ea) 360,000 Birr
Seated leg extension(2ea) 130,000 Birr
Seated chest press(2ea) 120000 Birr
Sport bike (5 ea) 200000 Birr
Multi Functional strength trainer 320000 Birr
Seated shoulder press(2 ea) 100,000 Birr
Fly/rear deltoid 100,000 Birr
Tricep extension(2ea) 120,000 birr
Cross arm trainer 100,000 birr
Bicep curl(2ea) 100000 birr
Performance plus assisted chin/dip 320,000
Other miscellaneous 200000
TOTAL 3,170,000
STEAM AND SAUNA 2,400,000
ANNUAL GYM RENT 1,044,000
PRE OPERATING COST 1,000,000
WORKING CAPITAL 1, 500,000
TOTAL INVESTMENT COST 9,114,000
manager 1 30000
instructure 2 20000
cleaners 2 12000
10)REVENUE TO BE GENERATED
Following table provides assumption for revenue and cost during 1st year of operation