entrepreneur term paper

8/8/2019 Entrepreneur Term Paper

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TERM PAPER

OF

ENTREPRENEURSHIP

DEVELOPMENT

TOPIC: BUSINESS PLAN ON

HEALTH CLUB

About The Fitness Club


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24x7 Fitness Club Is a Unisexual Club.

24x7 Fitness Club is fully Air-conditioner Club.

24x7 Fitness Club Provide Locker Facilities.

24x7 Fitness Club Also Having Steam bath Facilities.

24x7 Fitness Club Also Provide You Yoga and Meditation.

Objectives

To Provide Perfect Body Fitness

To give healthy Environment to City Phagwara

Aware The customer about the fitness

Activities and Services

Cardiovascular and Weight Training.

Physiotherapy

Yoga

Aerobics

Spa.

Meditation


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Features


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Marketing Plan

Market Analysis-

1. Standard of living.

2. More Numbers Of youth.

3. Old Age people for yoga, Cardiovascular and Meditation.

4. Also attract the working class people.

Target Market

For Youth- Gym, Aerobics, Spa etc.

Old age people - Yoga, Meditation, etc.

Market Analysis Summary

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.

4.1 Market Segmentation

The 24x7 Fitness Center will focus on the young urban professionals as its primary

customer base.

Market Analysis

2002 2003 2004 2005 2006

Potential

CustomersGrowth CAGR

Young

Professionals10% 100,000 110,000 121,000 133,100 146,410 10.00%

Other 0% 0 0 0 0 0 0.00%

Total 10.00% 100,000 110,000 121,000 133,100 146,410 10.00%


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Strategy and Implementation Summary

247 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. 16001 year Rs 6000

(*Rs 200 Extra For Registration)

Standard Plan (Gym +Steam Bath)

1 Day - Rs. 100

1 Week Rs. 500

1 Month -Rs. 1200

3 Month - Rs. 3000

1 year Rs 10,000

(*Rs 200 Extra For Registration)

For Yoga & Meditation


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Its Totally Free Of Cost, for all Members Of 24x7 Fitness club.

4Ps Of 24x7 Fitness Club

Product- The Product Quality fitness centre Is High In Quality Equipments,

Machinery, Convenient Scheduling And Exceptional exercise program.

Price- The Price Of the Fitness Centre Is Not Much As It Provides Services to the

Customer

Place- The Area where the Fitness Centre is located is Busy or crowded Area.

Gym Is not Congested and having proper gap between the machinery

Promotion- Its Promotion Strategy consists of word of mouth, local

Advertisement, E-mail and SMS promotion, Hoardings.

SWOT


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Strength- Knowledgeable and Friendly staff

Weakness-Although it is a New Fitness centre.

Opportunity-Growing market, Internet possibilities.

Threats - Declining Economy, Competitors, Copy Cat Training Services By Gym

and Independent Trainers

Financial Plan

Requirement The 24x7 fitness Centre requires land, machinery, Equipment,

workers.

Use Of Funds-The Fund will be used to lease a commercial space and Buy Necessary

Exercise Equipment. Marketing expenses and initially accounting software will also

be purchased with these funds. A Portion of the funds will be used for operating

expenses until profit are realized.

Assets

Land & Building -Rs 10,50,000

Plant & Machinery Rs 5,25,000

Furniture & Fittings Rs 1,50,000

Copyright & Trademark patents- Rs50,000

Brokerage- Rs 40,000

Advertisement expenses- Rs. 35,000

Payment In advance Rs 20,000


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Cash In Bank- Rs.80,000

Cash In Hand- Rs 20,000

Total =19,70,000

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

Sales2008 2009 2010

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

Cost of Sales

168,000 181,500 193,000

Personnel Plan

The personnel for the 24x7 Fitness Center are as follows:

Manager

Assistant manager


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Childcare manager

Tennis manager

Pool manager

Center staff (16)

Childcare staff (8)

Personnel Plan

2008 2009 2010

Center

Manager48,000 50,000 52,000

Assistant

Manager 36,000 38,000 40,000

Center Staff 240,000 270,000 300,000

Childcare

Manager30,000 32,000

34,00

0

Childcare

Staff147,000

170,00

0

200,00

0

Pool Manager 30,000 32,00034,00

0

Tennis

Manager30,000 32,000 34,000

Total People 23 28 32

Total Payroll 561,000 624,000 694,000

Financial Plan

The following is the financial plan for 24x7

Break-even Analysis

The table and chart below show the monthly break-even point.


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Break-even Analysis

Monthly Revenue Break-even 71,739

Assumptions:

Average Percent Variable Cost 15%

Estimated Monthly Fixed Cost $60,763

Projected Profit and Loss

The following table and charts highlight the projected profit and loss for three years.


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Pro Forma Profit and Loss2008 2009 2010

Sales 1,098,000 $1,249,000 $1,425,000

Direct Cost of Sales 168,000 $181,500 $193,000

Other Production Expenses 0 $0 $0

Total Cost of Sales 168,000 $181,500 $193,000


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Gross Margin 930,000 $1,067,500 $1,232,000

Gross Margin % 84.70% 85.47% 86.46%

Expenses

Payroll 561,000 624,000 694,000

Sales and Marketing and Other

Expenses48,000 55,000 60,000

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

Total Operating Expenses 729,150 808,600 894,100

Profit Before Interest and Taxes 200,850 258,900 337,900

EBITDA 212,850 270,900 349,900

Interest Expense 29,255 35,051 36,752

Taxes Incurred 51,479 67,155 90,344

Net Profit 120,117 156,694 210,804

Net Profit/Sales 10.94% 12.55% 14.79%

Projected Cash Flow

The following table and chart highlight the projected cash flow for three years.


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Pro Forma Cash Flow

2008 2009 2010

Cash Received

Cash from Operations

Cash Sales 823,500 936,750 1,068,750

Cash from Receivables 219,908 304,742 347,499

Subtotal Cash from Operations 1,043,408 1,241,492 1,416,249

Additional Cash Received

Sales Tax, VAT, HST/GST Received 0 0 0

New Current Borrowing 70,000 0 0

New Other Liabilities (interest-free) 0 0 0

New Long-term Liabilities 120,000 50,000 30,000

Sales of Other Current Assets 0 0 0

Sales of Long-term Assets 0 0 0

New Investment Received 0 0 0

Subtotal Cash Received 1,233,408 1,291,492 $1,446,249

Expenditures 2008 2009 2010

Expenditures from Operations

Cash Spending 561,000 624,000 694,000

Bill Payments 425,735 457,950 503,931


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Subtotal Spent on Operations 986,735 1,081,950 1,197,931

Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out 0 0 0

Principal Repayment of Current Borrowing13,392 13,392 13,392

Other Liabilities Principal Repayment 0 0 0

Long-term Liabilities Principal Repayment 9,600 9,600 9,600

Purchase Other Current Assets 72,000 40,000 30,000

Purchase Long-term Assets 0 50,000 50,000

Dividends 0 0 0

Subtotal Cash Spent 1,081,727 1,194,942 1,300,923

Net Cash Flow 151,682 96,551 145,326

Cash Balance 201,682 298,232 443,558

Projected Balance Sheet

The following table highlights the projected balance sheet for three years.

Pro Forma Balance Sheet

2008 2009 2010

Assets

Current AssetsCash 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

Liabilities and Capital 2008 2009 2010

Current Liabilities

Accounts Payable 39,148 37,505 41,770

Current Borrowing 126,608 113,216 99,824


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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.


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Salient features of the health club

Physical Fitness (Exercise Room)

The Physical Fitness (Exercise Room) space type is a space specifically designated for

exercise, fitness training, and physical wellness activities. Also included are toilets,

office, andgeneral storage normally found in a Physical Fitness (Exercise Room)

space to meet codes and regulations.

Fitness space types do not include: high bay court games (basketball, racquetball),

saunas, hot tubs, steam rooms, swimming pools, food preparation, and service or sporting

goods retail.

Space Attributes

The Physical Fitness (Exercise Room) space types provide a comprehensive, varied

program of physical activities to meet the individual training regimens of its occupants.

Indoor fitness programs can typically be divided into four categories of exercise: warm-

up/cool down, free weight, circuit training, and cardiovascular. Each area that houses a

particular exercise category should be designed around the requirements of the necessary

equipment, including spatial, utility, and HVAC requirements, as well as circulation and
http://www.wbdg.org/design/private_toilet.phphttp://www.wbdg.org/design/office_st.phphttp://www.wbdg.org/design/gen_storage.phphttp://www.wbdg.org/design/gen_storage.phphttp://www.wbdg.org/design/food_service.phphttp://www.wbdg.org/design/private_toilet.phphttp://www.wbdg.org/design/office_st.phphttp://www.wbdg.org/design/gen_storage.phphttp://www.wbdg.org/design/food_service.php


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control. Also important to the design of this space type is the durability of finishes,

flexibility of space, and acoustical control.

Functional / Operational

Spatial Requirements of Equipment and Exercise Activities: A minimum 12'

ceiling height is generally required in this space type to accommodate the

clearances needed for daily equipment usage. Special surfaces are also required

for many athletic activities such as cushioned training surfaces, mirror walls, or

impact-resistant walls. Anticipate circulation, in particular controlled circulation,

using a flow diagram at the beginning of the design process.

Durability of Structure and Finishes: Increased structural steel is typically

provided to reduce vibration transmission. Exercise and weight rooms, including

equipment storage rooms, should be designed for a 150 LB/SF live load. Finishes

should be durable and easy to maintain in anticipation of maximum use.

Acoustical Control: Reduce noise impact generated by physical activity, by

including sound baffles at all acoustically rated partitions, in particular exercise

and weight rooms and tenant demising partitions.

Occupancy: Occupancy Group Classification is Business Occupancy B, with

sprinklered protected construction and GSA Acoustical Class X space where

noisy operations are located.


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PHYSICAL FITNESS

Description

Tenant Occupiable Areas

Qty

.

SF

Each

Total

SF

Sum

Actual

SF

Tenant

Usable

Factor

Tenant

USF

Front Lobby 80

Entry Lobby 1 80 80

Lockers 1,400Male 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


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Housekeeping 1 120 120

Tenant Suite 6,120 6,120 1.16 7,076

Tenant Usable Areas 7,076

Plant Layout


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Plant Inner Layout

Technological Plan


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Machines

For Legs

For Lats (V-

Shape)


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Weight stand 1


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Bench Press 1


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Upper Bench Press 1


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Lat Machine 1


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Lat Machine 2


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