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Syed Arslan Haider Shahzad Rasheed Sara Ayyaz Amna Naeem Faisal Akbar Shafqat Manzoor Adnan Tariq 07010920-059 07010920-066 07010920-027 07010920-038 07010920-062 07011220-011 07010920-048
Ashiyana Yoga Centre
OWNERS: Shahzad, Arslan, Sara, Amna.
Business Name: Ashiyana Yoga Centre Address: Shadman Colony City: Gujrat, Zip code: 50700 Telephone: +923328388127 E-Mail: Shahzad20082009@yahoo.com Nature of the Business: Service and products Preparation date of plan: 20-01-2010
Table of Contents
Table of Contents........................................................................................................ 4 Executive Summary.....................................................................................................5 General Company Description.....................................................................................6 Products and Services...............................................................................................10 Marketing Plan...........................................................................................................12 Financial Plan ............................................................................................................19 Appendices................................................................................................................24
Hatha Yoga is an ancient discipline that explores, develops, and integrates the body, mind, and spirit. Yoga systematically stretches and strengthens muscles throughout the body, increases circulation to internal organs and glands, quiets the nervous system, and improves concentration. This ancient system of self-care brings vitality, health, deep relaxation, and peace of mind. The style of Hatha Yoga taught is the Anusara method. Anusara Yoga is a new style of yoga that is heart-oriented, spiritually inspiring, yet grounded in a deep knowledge of optimal body alignment in the poses. Instructors encourage students to listen to their body, respect its wisdom, and to progress at their own pace. Deep relaxation is taught in each class after completion of the postures. The Ashiyana Yoga Center offers 8 eight-week sessions of classes per year. Courses offered include Anusara-style Hatha Yoga plus workshops in related topics. The Yoga Center features well-trained, professional instructors, progressive teaching methods, a non-competitive and encouraging atmosphere, and a beautiful light-filled facility. The Ashyana Yoga Center also has a boutique that will sell workshop clothing and yoga training aides.
General Company Description
The mission of Ashiyana Yoga Center is to give the opportunity to practice Anusara. It is our intention to keep the teaching of Anusara as close to the way we have been taught as possible. It is incumbent for the teacher to always act responsibly and with the student's interest in mind. No matter what we learn or from whom we learn the real and only teacher is within. The focused activity of Anusara is said to:
• • • •
Lubricate the joints, muscles, tendons and ligaments Improve circulation and the activity of the nervous system Increase flexibility Release tension
Company Goals and Objectives:
The objectives of Ashiyana Yoga Center are the following:
• • • • • •
To increase welfare of society To improve the life style of society Acquire 1500 customers by the end of the first year of operation. Achieve sales in excess of Rs.60, 000 from the boutique. Increase customer base by 25% by the end of the second year of operation. Increase sales by 15% by the end of the second year of operation.
The most important thing in our business is to improve the welfare of society.
The Ashiyana Yoga Center offers Anusara-style Hatha Yoga plus workshops in related yoga topics. The Yoga Center features well-trained, professional instructors, progressive teaching methods, a non-competitive and encouraging atmosphere, and a beautiful light-filled facility. The Ashiyana Yoga Center will be located in the commercial downtown section of Gujrat.
Besides the training, the Ashiyana Yoga Center also has a boutique that will sell workshop clothing and yoga training aides. The Ashiyana Yoga Center will operate as partnership.
Our target market:
The Ashiyana Way Yoga Center will focus on two customer groups: a. Middle Income Urban Professionals b. Upper Income
The start-up expenses for the Ashiyana Yoga Center are focused primarily on workshop setup and equipment, and inventory for the boutique. We will invest 6, 00,000. In addition, we will secure an 8, 00,000 long-term loan.
Requirements Start-up Expenses Legal Stationery etc. Brochures Insurance Rent Expensed Equipment Total Start-up Expenses Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets Total Requirements
1,0000 1000 8,0000 1,0000 3,0000 20,0000 33,1000
66,9000 10,0000 0 30,0000 106,9000 140,0000
Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets 33,1000 106,9000 140,0000
40,0000 66,9000 0 66,9000 106,9000
Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Jill Gordon Other Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital
0 80,0000 0 0 80,0000
60,0000 0 0 60,0000 (33,1000) 26,9000
Total Capital and Liabilities Total Funding
Company locations and summary:
The Ashiyana Yoga Center is located in downtown Gujrat. The facility is quickly accessible to the urban professionals that Ashiyana Yoga Center considers potential members. With five workshop rooms, men and women's dressing rooms, and a boutique, it offers plenty of floor space for multiple classes being conducted simultaneously. In addition, parking is not a problem.
Products and Services
The Ashiyana Yoga Center's services and products are as follows:
Yoga 1/Beginner is an introductory class for students who are new to Yoga. This class focuses on poses to stretch and strengthen the legs, back, and shoulders. Emphasis is given to the basic alignment of the standing poses. Fundamentals of Vinyasa Yoga will prepare students for a vigorous flow style of yoga (Vinyasa) that synchronizes breath with movement. It will offer a balance of strength, flexibility, and endurance to challenge the fitness enthusiast. The course will begin with instruction on the alignment of the poses and move toward linking all the poses together in a continuous flow by the end of the session. Gentle Yoga is designed for those who prefer a class less vigorous than Yoga 1. It includes gentle stretches and breathing as well as simple movements designed to systematically increase the range of motion of every major joint and increase energy. This class is ideal for students with chronic symptoms such as muscle/joint pain, stiffness, weakness, or fatigue. Yoga 1-2/Continuing Beginner is a continuation class for Yoga 1. The emphasis of this course is on refining and building endurance in Yoga 1 and Yoga 2 standing poses. It does not include the shoulder stand. The basic Anusara Yoga principles of alignment are presented. This class is suitable for students who have practiced other styles of yoga, but it is not suitable for those who have never studied yoga before. Yoga 2/Intermediate focuses on refining the standing poses and learning basic sitting postures, simple back bending poses, and the shoulder stand using the Anusara Yoga principles of alignment. It is recommended that students complete both Yoga 1 and Yoga 1-2 before taking Yoga 2. Yoga 3/Advanced continues with refinements to poses studied in Yoga 2 and introduces full arm balance (handstand), headstand, and forearm balance. Additional back bend poses are also included. Regular yoga practice outside of class is strongly encouraged. Permission of the instructor is required.
• • •
Workshop Clothing: Shirts, shorts, athletic bras and pants. Workshop Equipment: Balancing balls, belts, weights, and mats. Yoga training aides: Video tapes, instructional manuals, inspirational books.
Market Analysis Summary:
Shadman has emerged as it position as the heart of the city. We believe that a yoga center can be very attractive to our customers if we create a program that fits the time constraints of their jobs home free time or exercise timing. Our location is within easy walking distance from most office buildings downtown. We plan to offer our members a program that will allow them to use their suitable morning/lunch hours/at evening, to attend workshop. Timing: 06:00 to 07:30 am 10:00 to 11:30am 05:00 to 6:30pm
Ashiyana will be a positive draw for those who have some experience with yoga instruction. The key to the success of Ashiyana yoga center will be attracting new people to yoga by creating awareness of people of their health.
The Ashiyana Yoga Center will focus on two customer groups:
Middle Income Urban Professionals: This group is the core segment of potential students
of Ashiyana Yoga center. Their demographic characteristics are the following:
• • • •
Ages: 26-40. Sex: 30% male, 70% female. Family Income: 30,000-50,000. Health/Lifestyle Issues: Active individuals that is focused on healthy food and dieting. Over 70% of this group is members of gyms.
Social Pattern: Will more likely attend as part of group. Center's selling point: Close to work. The session lowers stress. Can be attended with workmates as group activity.
Upper Income: The upper income customer is a secondary target group. Their demographic
characteristics are the following:
• • • •
Ages: 40-60. Sex: 30% male, 70% female. Family Income: 60,000+. Health/Lifestyle Issues: Active individuals those are focused on healthy food and dieting. Over 90% of these groups are members of gyms. Social Pattern: Will more likely attend alone. Center's selling point: Close to work. The session lowers stress.
Target Market Segment Strategy:
Everything ASHIYANA YOGA CENTER does must be adapted to work within the time constraints of the target customer. Yoga classes can be no longer than 90 minutes and must be scheduled to fit the free timing, break and rolling lunch schedules that exist in the downtown businesses. The focus of the instruction will also have to be adapted to a client that will be seeking maximum relief from the pressure of work and then returning to the workplace or home. If ASHIYANA YOGA CENTER can create a noticeable difference in the customers' sense of well-being, then the customer will come to depend on instruction as a escape during the day. These kinds of experiences will create a tremendous word of mouth and bring in more first time students.
Service Business Analysis:
Typically, yoga centers are located away from the city's commercial/business center. ASHIYANA YOGA CENTER are less focus on serving a large number of beginners and is more focused on obtaining long term students. Students are attracted to a specific type of yoga and the reputation and skills of ASHIYANA YOGA Center’s leader.
Competition and Buying Patterns:
Yoga is a growing trend. It was popular in the seventies and has come back full force into vogue in the 21st century. Movie stars such as Shilpa Shethi, Madonna, Meg Ryan, Julia Roberts and Sting are advocates of the discipline. As there is no real competitor of Ashiyana yoga center but gyms are some extend. It will be a price leader of the market as there is monopoly of yoga in Gujrat. The key to competition within the yoga business is the quality of the instructor. There are a number of instructors around Pakistan who are well respected, and Ashiyana Yoga center will strive to attract these teachers to its facility. The location, quality and absence of competitor of the facility are the real advantage for Ashiyana Yoga center. Because it has the best most attractive facility in country teachers will want to teach here. Ashiyana Yoga Center will focus of presenting ASHIYANA YOGA CENTER as the perfect place to learn yoga skills that will improve the student physically and reduce the daily stress of the work world. This will provide the comfort environment for relaxation and help out them to get rid from stress.
Marketing Strategy and Implementation Summary:
This Yoga Center will market through the numerous downtown fitness clubs, beauty salons and boutiques by displaying posters. The Ashyana Yoga Center will offer the free entry for beginners. In addition, we will give add on fm 105,106.6, Jazba newspaper. Also we will use billboards for advertisement.
The competitive advantage of Ashiyana Yoga Center is popularity of yoga, location and the quality.
The sales forecast outlines sales of instruction time as well as sales of products through the boutique located in the facility. Instructions are sold in the following three ways: 1. Private lessons;
2. Eight week courses; 3. Drop-in sessions. The boutique will sell clothing, books, posters, books, DVDs and videos, mats, and other props for yoga. In addition it will sell healthy pre-bottled drinks and healthy energy food in future. If this facility becomes more of a destination, we will perform research for adding a cafe. Our Yoga Center anticipates that sales will be slow for the first and second month of operation. After that point, sales will increase as membership grows. The following is the sales forecast for three years. Sales Forecast Year 1 Sales Yoga Instruction Boutique Sales Other Total Sales Direct Cost of Sales Yoga Instruction Boutique Sales Other Subtotal Direct Cost of Sales 152,0000 64,0000 0 216,0000 Year 1 0 20,1500 0 20,1500
Year 2 190,0000 85,0000 0 275,0000 Year 2 0 26,0000 0 26,0000
Year 3 240,0000 106,0000 0 346,0000 Year 3 0 32,0000 0 32,0000
Our business plan includes complete provisions for plan-vs.-actual analysis, and we will be holding follow-up meetings every month to discuss the variance and course corrections.
Combination of product, price, place and promotion and other activities needed to meet market objectives. Product: Best quality services with best quality yoga related products.
Brand name: “Ashiyana” Prices: Comparatively will be high than other fitness gyms. Discounts: Ashiyana yoga center will initiate a program that will give 25% session discount to members who successfully recruit new members to Ashiyana yoga center. Place: The heart of city “Shadman”. Near to the professionals and everyone easily access the yoga center. Promotion: We mainly concentrate on advertisement and other promotional activities for creating the health awareness, as it is the basic tool of our business growth. Mass Media: fm 105, fm106.6, Jazba newspaper, cable. Displays: Billboards, posters. Words of Mouth: We will offer the free entry for beginners also there are refreshing bottles for visitors.
Strengths: There is no real competitor, our teachers are highly qualified, we work for welfare of society. Weakness: new venture, risk involved, low awareness of people. Opportunities: we have high growth chances because there are no real competitors of our business. Threats: In our society the people are narrow minded, so first we have to create awareness between the people,we have a threat about the new entrant in the yoga market.
Shahzad, Amna, Sara, Arslan (doing BBA hons.) the founders of The Ashiyana Yoga Center, are those who wanted to work for welfare of society. They want to conduct workshops and teacher trainings nationally and internationally. In addition they get the productive set of instructions from honorable teachers like Ma’m Qurat-Ul-Ain. ASHIYANA YOGA CENTER started with 6 employee and 20 students. Within three years, ASHIYANA YOGA CENTER had a staff of 25 and over 1,000 students. The Ashiyana Yoga Center's personnel will be the following:
• • • • •
Arslan, director; Amna, Receptionist Shahzad, Marketing Manager Teachers (2); Sara, Boutique Manager
Personnel Plan director Teachers (2) Boutique manager Marketing Manager Receptionist Total Payroll Year 1 15,000 54,000 13,000 14,000 13,000 109,200 Year 2 16,000 65,000 13,500 15,000 13,500 123,000 Year 3 17,000 75,000 15,500 16,000 15,500 139,000
Monthly Revenue Break-even Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost
Projected Profit and Loss:
Pro Forma Profit and Loss Sales Direct Cost of Sales Other Production Expenses Total Cost of Sales Gross Margin Gross Margin % Year 1 Year 2 Year 3 216,0000 275,0000 346,0000 20,1500 26,0000 32,0000 0 0 0 20,1500 26,0000 32,0000 195,8500 90.67% 249,0000 90.55% 314,0000 90.75%
Expenses Payroll Sales and Marketing and Other Expenses Depreciation Utilities Insurance Payroll Taxes Other Total Operating Expenses
109,2000 24,0000 2,4000 3,3000 2,4000 16,3800 0 157,6800
123,0000 26,0000 2,4000 3,3000 2,4000 18,4500 0 175,5500
139,0000 28,0000 2,4000 3,3000 2,4000 20,8500 0 195,9500
Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales
38,1700 40,5700 7,7210 9,1350 21,3150 9.87%
73,4500 75,8500 7,2260 19,8670 46,3570 16.86%
118,0500 120,4500 6,7100 33,4020 77,9380 22.53%
Projected Cash Flow:
Pro Forma Cash Flow Year 1 Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Year 2 Year 3
0 0 0 0 0 0 0 216,0000 Year 1
0 0 0 0 0 0 0 275,0000 Year 2
0 0 0 0 0 0 0 346,0000 Year 3
109,2000 65,4900 174,6900
123,0000 105,8360 228,8360
139,0000 125,5540 264,5540
Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out 0 Principal Repayment of Current 0 Borrowing Other Liabilities Principal Repayment 0
0 0 0
0 0 0
Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent Net Cash Flow Cash Balance
5,1600 0 0 0 179,8500 36,1500 103,0500
5,1600 0 0 0 233,9960 41,0040 144,0540
5,1600 0 0 0 269,7140 76,2860 220,3400
Projected Balance Sheet:
Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Year 2 Year 3
103,0500 2,7500 0 105,8000
144,0540 3,5480 0 147,6030
220,3400 4,3670 0 224,7070
30,0000 2,4000 27,6000 133,4000 Year 1
30,0000 4,8000 25,2000 172,8030 Year 2
30,0000 7,2000 22,8000 247,5070 Year 3
10,3450 0 0 10,3450 74,8400 85,1850 60,0000
8,5510 0 0 8,5510 69,6800 78,2310 60,0000
10,4780 0 0 10,4780 64,5200 74,9980 60,0000
Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth
(33,1000) 21,3150 48,2150 133,4000 48,2150
(11,7850) 46,3570 94,5710 172,8030 94,5710
34,5710 77,9380 172,5090 247,5070 172,5090
Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7997, Membership Sport and Recreation Club, are shown for comparison. Ratio Analysis Year 1 Sales Growth Percent of Total Assets Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Sales Sales Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current 0.00% Year 2 27.31% Year 3 25.82% Industry Profile 15.20%
2.06% 0.00% 79.31% 20.69% 100.00% 7.76% 56.10% 63.86% 36.14%
2.05% 0.00% 85.42% 14.58% 100.00% 4.95% 40.32% 45.27% 54.73%
1.76% 0.00% 90.79% 9.21% 100.00% 4.23% 26.07% 30.30% 69.70%
4.00% 31.80% 40.90% 59.10% 100.00% 31.60% 28.00% 59.60% 40.40%
100.00% 100.00% 100.00% 100.00% 90.67% 90.55% 90.75% 0.00% 80.80% 2.78% 17.67% 73.69% 2.91% 26.71% 68.23% 2.89% 34.12% 72.30% 2.70% 2.60%
Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liab. to Liab. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout
9.96 63.86% 63.15% 22.83%
16.85 45.27% 70.03% 38.32%
21.03 30.30% 64.54% 44.98%
0.83 59.60% 2.80% 6.90%
Year 1 Year 2 Year 3 9.87% 16.86% 22.53% 44.21% 49.02% 45.18%
3.95 7.33 27 1.62
8.26 12.17 33 1.59
8.09 12.17 27 1.40
n.a n.a n.a n.a
139,0510 214,2290 10.16 17.59
0.62 8% 9.96 4.48 0.00
0.63 5% 16.85 2.91 0.00
0.72 4% 21.03 2.01 0.00
n.a n.a n.a n.a n.a
Map of Ashiyana yoga centre Market research questionnaire
• Pamphlets • Products and their prices
Market research questionnaire
Ashiyana Yoga Centre
Rural Middle income Age___________________________ Family income___________________ Profession ______________________
Urban Higher income
1. Do you feel a need for a yoga centre in Gujrat? a) Yes b) No
2. Do you prefer yoga centre on gym for exercise?
3. Are you health conscious? a) Yes b) No
4. What do you prefer after exercise? a) Water b) fresh juice
5. Do you feel that for mental relaxation yoga is a most suitable exercise?
Disagree 6. Do you think 1500 fee is reasonable fee for per month classes? a) Yes b) No
7. What is the time period of yoga class? a) Half hour hour
b) 45 min
8. What timings are suitable according to your opinion? a) 6am—7am c) 10am—11am e)4pm—5pm b) 7am—8am d)1pm—2pm f)6pm—7pm
9. What should be the time period of yoga session? a) 3 months throughout the year 10. a) GT road What location is most suitable for opening a yoga centre? Shadman b) Margazar c) Shadola d) b) 6 month c) continue
Is the yoga is good exercise for a pregnant women? a) Yes b) No
Do you think yoga can help in curing muscle pain and fatigue? a) Yes b) No
Ashiyana Yoga Centre
A yoga centre is now opening in your own city Gujrat in Shadman Colony. This yoga centre consists of 2 well lightened and well ventilated halls for yoga classes. The environment is soothing and refreshing. In Ashiyana yoga centre we practice the HATHA yoga in Anusara style. Which provide body fitness and mental relaxation and in addition it is also a cure for muscle pain. This yoga centre also provides products which help in practicing yoga and fresh juices are also available there. The fee is reasonable 1500 rupees/ Per month. Admissions are open. First 100 admissions are without admission fees. So join us immediately. For more details please contact us on number +923328388127.
Products and prices
Yoga DVD videos Yoga straps Yoga bricks 29
Price Rs: 1000
Price Rs: 500
Price Rs: 500
Price Rs: 1000
Price Rs: 2000
Price Rs: 200
High performance mat
Price Rs: 2000
Price Rs: 2000
Price Rs: 1500
Price Rs: 1000/each
Price Rs: 600/each
Price Rs: 300/pair
Yoga music & Audio
Yoga blasters & cushions
Price Rs: 300
Price Rs: 800
Price Rs: 1000
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