Fitness Center Gym Business Plan Company Introduction:

The name of the Fitness Center Gym Business Plan is “SK-27” is a private organization intended to be
situated on Baker Street, London, United Fitness Center Gym Business PlanKingdom. SK-27 is
committed to motivating young girls and ladies who feel they can’t train like their opposite sex to be
able to go through any workout. SK-27 also aims at employing innovation, conditioning, and strength
with the combination of the industry best practices to deliver matchless gym services using
sophisticated equipment, while ensuring girls, ladies, and women of London are maintained
physically and mentally, at the best cost. In addition, SK-27 intends to acquire the state of the art
equipment, special aerobic platforms (designed for the purpose of lessening strains and pains), and
highly professional, motivated, and keened caring female trainers and other team members to guide
our girls, ladies, and women to achieve their personal goals. SK-27 will also offer easy time and
schedules to ensure that customers can come for their workouts at their leisures. This is a gym
company designed uniquely for the feminine world to improve and maintain their fitness level with
great care and support of other great women in the premise. This company is created by a woman,
and specifically for the women.

1.1 Summary of Purpose

SK-27 is an organization that is specific to enhancing and improving the physical fitness of women in
the London area. The purpose of this organization is to instill greater confidence in young girls and
ladies who can’t perform physical fitness activities before their male counterparts. Thus, SK-27 is
saddled with the responsibility to achieve some amazing results for women. These include, losing
weight to make them feel better about their look and feel; increasing their strength to help them
burn more calories in the daily; increasing their energy to ensure they can keep up with their levels,
peer, children, even grand children (for older women) or the rest of their lives; providing vitality in
them for them to show to the world that they’ve got what it takes to live a freer and healthier life;
more flexibility to help them constantly move freely in their daily works and activities; to also keep
them younger all day long in order to be able to thread on any hills or mountains; and finally keep
them living longer, through losing some weight, increasing their lifelong expectancy, and helping
them enjoy the rest of their later years.

1.2 Mission and Vision

Mission: To continually provide innovative strategies and training programs amongst young girls,
ladies, and women in London area about their healthy lifestyle and confidence.

Vision: To become the best and most sort for female health training and gym centre in London
within the next five years.

1.3 Uniqueness of the Business

The uniqueness of this business is in the fact that it is proposed to be located in an environment
where there is only a very small gym. This implies that female gyms exist in London, but not in every
major areas in the city. Therefore, launching the Baker Street with one of the biggest gyms in London
specifically for young girls and ladies as well as women is a unique idea. Moreover, SK-27 intends to
add innovation and extra welfare of all its customers within the London environs and the entire
United Kingdom. In addition, SK-27 intends to integrate side attractions within the premise of the
gym to attract visitors within the country and city to benefit greatly from the innovation in this
sphere.

1.4 The Business

Strength training or gym is an important aspect of our lives. The gym business provides the
opportunity for young ladies to be confident about their fitness expectations. It is a business that
delivers physical fitness training through all-female expert coach, highly sophisticated equipment,
extraordinary exercise programs, in their convenient schedules.

The gym business has gained grounds lately, and people are getting more aware of its immeasurable
benefits, especially when they enrol in a gym around them. People now know that the gym helps
them stay healthy, enhancing their lifestyle, and helping them to live longer. People, who feel they
are obese or have some health issues now register in the gym to primarily shed some weight, train,
and increase their muscles.

Statistics have shown that the number of people enrolling for gyms is increasing steadily and
because of its closeness to their residents, it makes it easier for them to access. Thus, the increase in
the number of interests of individuals in gyms, the increase in income and revenue for the gym
business owners.

1.5 Products and Services

The gym centre as stated above will offer physical training and exercise to individuals in the
environment they live or off their residential area. People are being coached on achieving the best
fit they envision from going to the gym. The reality of SK-27 will help females exercise in a group, to
bring fun to them, while using daily functional movements

The following will be the services offered by SK-27:

Aerobics
Muscle Training with weight training equipments (Fitness with cardiovascular training)
Swimming pool
Diabetes and Obesity Control
Cycling
Spa
Tennis
Massage
Physical therapy
Court sports
1.6 Sales and Marketing Strategy and Activities

In order to build the brand recognition of this business and achieve early customer traction before
fully opening the whole facility, it is imperative to create an awareness through offering free training
program at a local park, this will spur and instigate the interest of the people, therein, there will be
illustrations of the kind of training available for the young girls, ladies, and women. There will also be
a very effective and mind-blowing web presence, in which an online blog will be designed to form a
community among individuals that make use of the group in order to also attract new members and
also retain them. Therefore, the target customers are females between the ages of 12 and 75.

1.7 Competitor Analysis

SK-27 is not just only a health club, just like the majority of its competitors in the London area. SK-27
is in the business that is targeted at health and physical fitness of young girls, ladies, and women in
London and outside of London. The major function is to ensure that a strong confidence is built
inside of those who cannot withstand training before men as well as those girls who wear hijab too.
In addition to this, SK-27 aims to work with other client companies to carry out other wellness
strategies. As much as customers benefit from this offer, the company’s employees would also
benefit from these strategies.

Other competitors in the London area include the South Kensington, London Bridge Gym, Nuffield
Health, Fitness First, Liverpool Street Station, Monument Gym, LAX by PureGym, The Gym Wembley,
St. Pauls, London Gym, Camden Gym, Angel Gym, Clapham, Soho Gyms Earls Court, Queen’s Park,
etc. Finally, SK-27 will take a cordial responsibility interest in the wellbeing of all its members, this is
unlike its competitors. The integral part of SK-27 is total follow-up and monitoring of all its members,
based on their wellbeing.

1.8 Operational Structure

The managing director will be the full controller and manager of SK-27. The Center head will be the
overall head in charge of the gym programs and reporter to the managing director for the needful of
the organization. The marketing head serves the right to ensure the name of the organization keeps
flying high and projecting to the marketplace with full force. The head trainer is the major instructor
to other younger trainers, while the accountant is in charge of the financing of the organization. The
common trainer and individual trainer to give personal training to customers and become
customers’ personal trainers. The entire staff of SK-27 will continually build the reputation of the
organization till it becomes the best and most sort for the Gym for females in the London area. The
figure below shows this organizational structure.

Fitness Center Gym Business PlanFigure 1. Operational and Organizational Chart

1.9 A Profit and Loss Summary

SK-27 expects a massive rate of growth from the start of its operations. The expected financial
statement for the next one year is shown below

SK-27 Sales Forecasts (Yearly)

Year 1
Lease Payment £3,249
Lease Deposit £3,249
Advertising and marketing £1,136
Accounting £500
Legal Costs £250
Starting inventory £4,350
Cash £2,000
Building Remodeling/Refurbishment £190,455
Insurance £250
Business Broadband £100
Fixtures and Gym Equipment £145,765
Swimming Pool expenses £4,030
Other sports equipment (table tennis, etc) £2,400
Unanticipated Expenses £15,000
Total Start-up Expenses £369,485
Table 1: Expected Start-up Expenses Statement

Source of Financing:

Personal = £92,000

Relatives = £12,040

Commercial loan = £265,445

Cash Flow Statement

SK-27
Year 1

September October November December January February March

April May June July August Total
Cash Receipts

Sales 2500 2500 2800 3000 3220 3350 3500 3800 3800
4000 4000 4200 40670
Personal Investment 92000
92000
Relative Investment 12040
12040
Commercial loan 265445
265445
Fixtures & Gym Expenses -704 -704 -704 -704 -704 -704 -704 -704 -
704 -704 -704 -704 -8448
Total cash Inflow 371281 1796 2096 2296 2516 2646 2796 3096
3096 3296 3296 3496 401707
Cash Cost of Sales

Inventory ** 2000 2200 2500 2560 2675 3000 3200

3200 3500 3500 3550 31885
Total Cost of Sales

Cash Expenditure

Staff Salaries 10500 10500 10500 10500 10500 10500 10500 10500 10500
10500 10500 10500 126000
Lease Payments ** 3249 3249 3249 3249 3249 3249 3249 3249
3249 3249 3249 35739
Advertising and marketing ** 1136 1136 1136 1136 1136 1136 1136
1136 1136 1136 1136 161739
Accounting ** 500 500 500 500 500 500 500 500
500 500 500 5500
Legal costs ** 250 250 250 250 250 250 250 250
250 250 250 2750
Business Broadband ** 100 100 100 100 100 100 100 100
100 100 100 1100
Insurance ** 250 250 250 250 250 250 250 250
250 250 250 2750
Interest on commercial loan 25 25 25 25 25 25 25 25 25
25 25 25 300
Miscellaneous 1000 1000
1000 3000
Total expenditure 10525 16010 16010 17010 16010 16010 16010 17010
16010 16010 16010 17010 338878
Cash Capital Payments

Investor Dividends 248 248 248 248 248 248 248 248 248
248 248 248 2976
Commercial loan 410 410 410 410 410 410 410 410 410
410 410 410 4920
Total Capital Payments 658 658 658 658 658 658 658 658 658 658
658 658 7896
Total cash Outflow 12499 16668 16668 17668 16668 16668 16668 17668
16668 16668 16668 17668 346774
Fitness Center Gym Business Plan

Part 2 – Funding Requirements

Equity sources

Some equity sources include personal savings, friends and relatives, venture capital, angel investor,
government grants, equity offerings, initial public offerings, initial public offerings, and warrants:

Personal Savings
This is usually the money or funds saved over a period of time to start up a business. This includes,
previously owned or currently operated job or employment, retirement, or cash value insurance
policies.

Advantages of Personal Savings

The business will be run in a better way so that the money is not lost
There is total control over the money and the business
Disadvantages of Personal Savings

There is risk of bankruptcy and personal debt

The money at hand may not be enough to start the business as planned
Friends and Relatives
Entrepreneurs may get to their parents and friends to help them source for funds to start up their
business.

Advantages of Funds from Friends and Relatives

The funds will be easier to get since they already know the entrepreneur
They will allow the entrepreneur to develop her vision into what everyone can recognize and value
Disadvantages

They may not want to add value to your business if they don’t understand
The entrepreneur will feel fully responsible if there are any losses incurred
Debt sources

Some debt finance sources include friends and relatives, banks and other commercial lenders, banks
and other commercial lenders, commercial finance companies, government programs, and bonds.

Banks and other commercial lenders

These are the major and popular sources of funds to start up a business.

Advantages

Loans obtained from this source offer long-term loans, usually between three and ten years, giving
entrepreneurs the privilege to pay back slowly as the business profits increases.
They also offer lower interest rates and very large sum of funds to cover up all the start-up costs
with just one loan.
Disadvantages

They require strict provision of personal financial history and if there’s any minor issue with it,
entrepreneur may not be eligible for the loan.
There is less personal autonomy with commercial loans. If the money is very large, there must be a
detailed accounting of how the money intends to be spent.
The Choice for SK-27

SK-27 will employ the Funding Circle organization with personal savings and relatives to source for
funds to start up the organization. This choice is made because the organization is set up to offer
new start-ups in the United Kingdom. They understand the differences in every business, thus, offer
consideration based on different factors such as on merit, with or without credit history, and
introduction to so many flexible business finance solution for the purpose of meeting individual
needs. In addition, they offer loans within the range of £5,000 and £1,000,000 which is payable
between six months and five years, without any early repayment charge.

The Investment Capital Use

The breakdown is shown below:

Equipment:
Weight machines
Resistance bands
Flexion machines
Wall bars
Pull-up bars
Weight training
Street Strider
Elliptical trainer
Exercise machine
Dumbbell
Kettle bell
Gym flooring
Fitness
Boxing gear
Treadmills
Medicine balls
Hojo undo
Pull-up bar
Employee uniform
Barbells
Notice boards
Cable attachmentsFiling cabinets
Benches
Wearable items such as hydration packs, foot-gear, and gloves.
Table tennis court
Swimming pool
Spa accessories
Marketing
Interior designs