Laura Conaway

Business Plan
Executive Summary:

Business name
Around the Bend

Location
7150 Hamilton Blvd. Unit 133, Trexlertown, PA 18087

One sentence summary

Around the Bend exists to promote a fit, active, and healthy lifestyle through a relaxing and
restful atmosphere, encouraging nutritious eating, and bonding with community members.

Overview of problem your business will solve

There are no businesses providing restorative yoga and Pilates with an emphasis on the body’s
physical and nutritional aspects.

Brief explanation of how product or service solves that problem

By providing a workout program and managing stress through restorative yoga while
encouraging healthy eating habits, members will be able to stay fit and feel energized because of
the nutrients the body receives.

Honest acknowledgement of existing competitors and a short description of business

advantages
The Maxx Fitness gym and Barre 3 classes are located within ten minutes of Around the Bend.
These companies provide a place to workout, stay fit, and engage with the community with a
major focus on one’s physique that can be acquired through their classes and workout
equipment. Barre 3 focuses on Yoga and Pilates; however, it does not supply healthy organic
snacks post-class/workout. In addition, Maxx Fitness has a juice bar, but it is not organic and
does not provide additional nutritious snacks. There is also no emphasis on mindfulness and
restoring the body’s inner and mental well-being. Around the Bend combines these two crucial
components, restoring mindfulness through working out and nutritious eating into one
establishment.

Summary of management team and how their experience will drive success
The business will be run as a partnership including staff hired with training in the exercise
science and nutrition fields.

Development stage your business is currently in

It is a startup business, and the building has been leased and renovations are underway to design
the studio.

Industry Analysis:
The fitness and health industry has grown immensely in popularity over the past decade. People
are seeking ways to care for their bodies in a natural way through exercise and healthy eating.
Fresh snacking has become a trend recently and shoppers are seeking foods displayed around the
perimeter of the grocery store. As a company seeking to encourage healthy snacking and eating,
Laura Conaway
Business Plan
we will incorporate this idea of fresh food by providing organic, non-GMO snacks and
smoothies for purchase, of which can be frequently found on the outskirts of grocery stores. The
growth of organic products in general, such as household cleaning products, has become more
popular. By supplying these healthy alternatives, Around the Bend will promote the increase of
the organic initiative.

The Yoga and Pilates industry has grown tremendously as well in the past couple of years
because of studies showing it usefulness in decreasing stress and anxiety, improving flexibility,
strength, and mental health as well as targeting physical health, which is the main component
seen in regular exercise programs and gym memberships. Because there has been an increase in
mental illnesses, programs and initiatives for decreasing these statistics have risen. As a
company, we will strive to care for the mental and physical aspects of people by providing them
tools and resources for working out and producing mindfulness and tranquility throughout each
day. Offering an avenue for people to explore these trends that are increasing in the exercise field
will support the growth of the business because of the popularity presented.

Around the Bend will be successful because it will provide a combination of exercise programs
that target more than the physique and emphasize a well-rounded aspect of a healthy lifestyle. It
will target the mental component through the workouts and nutrition through the organic
smoothies and snacks offered at the café.

The gyms and yoga studios in the area are new, modern, and updated with state of the art
equipment and instructors for their programs, which is the goal of Around the Bend. As a
company, we want to provide a welcoming atmosphere. However, these other facilities place
emphasis on the physical state of individuals while Around the Bend strives to implement tactics
for the mental and emotional well-being too. These facilities also offer other amenities such as
showers, locker rooms, and childcare during programs, which Around the Bend will also provide
as a convenience for customers.

Strategically locating the studio in Trexlertown will increase business because this area of the
Lehigh Valley is growing quickly. A shopping center was recently added to the area, and there is
more traffic, which encourages individuals to stop by various establishments each day. Overall,
the location and health/exercise science business is growing, and Around the Bend will provide a
successful addition to this advancing industry.

Competitive Analysis:
Because the exercise science industry is growing, there will be competition close to Around the
Bend. In Trexlertown, there are two main studios: Maxx Fitness gym and the Barre studio, which
will be the main competition. Maxx Fitness just opened two months ago and offers a $10/month
gym membership with a facility that has new equipment and protein smoothies post-workout at
their juice bar. The Barre studio has memberships for $29/month but also has a sale for signing
up for a 10-class workout or doing package pricing. They also offer a clothing brand that people
can purchase items from. This type of branding is a good technique for bringing in revenue and
promoting the business. In addition, the studio provides showers, towels and toiletries, and a play
room for children while classes are in session.
Laura Conaway
Business Plan
This competition will encourage Around the Bend to plan strategically and market our services
and products so that customers choose our facility for their workout and health needs. However,
because this studio will offer a different type of service and added bonuses that the other two
places do not, it is expected to thrive and do well.

The one advantage of our location in comparison to our competition is the accessibility from a
main road. Although the store may be partially hidden from view, it is right by the road, and a
sign with our name will be placed on the shopping centers sign when people drive in. On the
contrary, Maxx Fitness is tucked into a small corner pushed back from the surrounding stores,
which makes it hard for individuals to find, even if they are already in the shopping plaza. The
Barre studio is also in a shopping center, but it off of a divided highway, which also makes it
challenging to get to and locate from the road. The Maxx Fitness has hours all day, normally
ranging from 5am to 10pm. Barre on the other hand requires sign-ups for classes that are taught
by instructors, and there is a $15 fee if a cancellation is made less than four hours before the
session starts. This restriction on sign-ups for classes may prevent customers from coming in.

Therefore, to meet the competition, Around the Bend will provide a room in the studio with
Pilates video tutorial workouts for those who do not want to participate in a class, want to get
their own workout in quickly, or are waiting for a class to open. However, the one downfall of
our studio is the set hours. After opening the studio, an assessment will be developed to see if
changing the hours and extending our business time will be beneficial for our customers or not.

Target Market:
In the Lehigh Valley, there is a plethora of people who reside in townships and boroughs and the
estimated population of the Trexlertown and Allentown area is 121,200 people. This is a large
population, and it is still growing into a metropolitan area with new developments and stores
being added.

Around the Bend has the opportunity of serving this community with their health and fitness
needs. However, Around the Bend will more specifically target and assist avid health and fitness
users in addition to those seeking to restore balance and stress free living to their daily routine.
Also, those who are seeking to eat healthy will find snacks and drinks that can be found in
grocery stores to help them stay fit physically through their nutritional habits.

Narrowing it down even further, this atmosphere will bring in the younger generation including
young adults because of the rise of Pilates and Yoga in this age group. There will also be women
of all ages, but especially moms involved, because of the childcare provided during classes and
seeking to stay fit during pregnancy and post-partum. There is not an anticipated major group of
males for these classes; however, they still can and will benefit from the workouts and organic
eating as well. Anyone over the age of sixteen will be permitted to join classes at Around the
Bend, but those under eighteen will need to have a waiver signed by their parent or legal
guardian.

There will be beginner classes as well as advanced instruction, which will encourage a target
market of people of all abilities and knowledge. Separating the classes into these groups will help
individuals feel welcomed and encourage them to participate and join the studio regardless of
Laura Conaway
Business Plan
their expertise in the exercise or nutrition fields. Overall, the general goal is for Around the Bend
to welcome and encourage anyone of any gender, race, ethnicity, or background to join the
studio and pursue an active and healthy lifestyle.

Product/Service Overview:
Around the Bend will provide a place for customers to workout, destress, and enjoy healthy,
nutritional, and organic snacks. There will be Yoga and Pilates classes provided with trained,
professional instructors during operation hours. In addition, an open Pilates room will be
provided as an independent workout option for customers through video instruction and the
option of choosing the workout of one’s style and time frame.

Yoga classes will focus on restorative yoga and meditation to promote a calm, relaxed state that
stretches one’s muscles and increases flexibility. The Pilates classes will range in intensity
focusing on cardio and various muscle groups from abs to arms to legs. The emphasis will also
be on using one’s body weight, but occasional use of light weights will be incorporated.

Locker rooms, showers, toiletries, and a childcare playroom will be included in membership to
the program for customers to use. Each class will be one hour in length and customers are
encouraged to get there ten minutes before the session starts to gather mats and any other
resources. Individuals sixteen years of age and older are welcome to join. Anyone under the age
of eighteen will need a parent to sign a waiver before beginning sessions.

There will also be a café with smoothies and organic snacks available for purchase. The goal of
the café is to encourage healthy eating and fueling the body with essential nutrients, especially
after working out. Smoothies such as protein based, green smoothies, berries and other fruit
options will be available. Snacks will include items such as protein bars, KIND granola bars,
almonds, walnuts, pecans, trailmix, Siggi’s and/or Chobani Greek Yogurt, crackers and hummus,
and more. Nutrition guides will be available for customers as well to help them in their daily life,
not only for when working out.

Marketing Strategies:
There will be multiple marketing techniques implemented through online and offline information
to promote and attract customers and the attention of the community to Around the Bend. Social
media such as Instagram, Facebook, and Twitter are specific tactics that will help promote our
organization by showcasing our facility, the classes we offer, and the café. This action will allow
customers to get a feel for the studio before taking any classes.

In addition, a blog will be created to discuss current trends in Yoga, Pilates, and organic eating in
addition to discussing practices that are being implemented in the classes at Around the Bend. A
website is also crucial because it will showcase the prices for classes, the café, and other
pertinent information such as waivers for children under eighteen and the rules for the play area.
Each of these online sites will create an interactive environment for customers and provide them
with information they may not have known previously about topics.

A social media employee will be in charge of this component. There will also be offline tactics
used such as advertisements on television, flyers sent out in the mail to neighborhoods, and a
Laura Conaway
Business Plan
grand opening day walk-through. These initiatives will help people in the community know that
this studio is available for them and give them a tour of the place so that they can see what is
offered and sign up. In addition to these strategies, to be successful amidst our competitors, we
will assess the possibility of developing a line of workout attire, yoga mats, and tumbler cups or
other gift items that can be used by customers that will promote our company.

Overall, both Barre and Maxx Fitness have strong social media and website presences so our
marketing strategies must be in competition with these facilities. Hopefully, as the business
grows and is promoted when it first opens, there will be less need for as much advertisement,
which will help save money in the future.

Human Capital Description:

Leadership
The person in leadership would need to have a degree in business and marketing. Problem-
solving, critical thinking, and communication skills would be vital for this position because they
would be helping to run the business. These qualifications would assist me because I do not have
background in either of these areas. Overall, they would be expected to help brainstorm and
execute ideas to further the business and its expansion, while working collaboratively with the
team.

Management
The person in this department would need a management/business and finance degree. They
would oversee the facility during the hours of operation in addition to hiring employees. They
would need to make sure workers are completing their tasks properly and behaving in a friendly
and professional manner among each other and customers. They would also handle any
complaints or discrepancies. Some of the characteristics they should display are organizational,
communication, and decision-making skills.

Personnel
The personnel would consist of instructors for the classes, a receptionist/hospitality team,
baristas for the café, and a facility/maintenance crew. The instructors would need to have an
exercise science degree with experience or knowledge in nutrition and health. They would need
to display strong interpersonal skills in addition to creative thinking and problem solving. The
receptionist/hospitality team would need a bachelor’s degree or three years’ experience working
in the field. They will also need to have interpersonal skills, communicate effectively, and show
effective organizational tactics. These two groups of personnel would be employees with a
yearly salary. The baristas and facility/maintenance crew would be hourly employees who have
at least a high school diploma or its equivalency. They would need to display communication
and problem-solving skills along with knowledge on customer service and maintaining a clean
and inviting facility.

Each employee would have a description of the tasks expected of them to complete. Instructors
will teach the classes. The receptionist will schedule people for classes, handle phone calls,
complaint letters and put together the hourly paid employees work schedule and make sure the
salary paid workers are coming in for 40hrs each week. The hourly employees would be
Laura Conaway
Business Plan
responsible for running the café by making drinks, selling snacks, and working the cash register.
The cleaning crew would clean bathrooms, windows, floors, and sanitize equipment.

Operations description:
Around the Bend will operate Monday through Saturday. The hours for Monday through Friday
will be 7am to 11am and then 4pm to 8pm. Saturday hours will be 8am to 5pm. The objective
behind these hours is to be open and offering classes when customers will not be at work, which
is the majority during the peak weekday hours of 9am to 5pm.

The location is on a main road in a shopping center where it is easily accessible and visible to
customers passing by. The negative side to it is that it’s in a large strip mall area with lots of
other store fronts so one must look for it to find it. To counteract this problem, a sign will be put
up on the display board at the entrance of the shopping center so that drivers passing by will see
Around the Bend listed as one of the stores.

The services provided will be Yoga and Pilates classes and a café with organic snacks and
smoothies. The demand for classes will determine how many instructors are hired, but to start,
we will hire two instructors who will teach four classes during the day: two in the morning and
two in the evening. We will hire five employees to run the café and four individuals to maintain
the facility.

Our products and inventory for the café will be locally sourced or from organic companies in the
U.S. such as Nature’s Promise Organics. The snacks will be paid for in bulk with monthly
shipments because these snacks will not expire as quickly, and we are anticipating a discount
with the bulk purchase. The fresh fruit, vegetables, and other perishables will be bought on a
weekly basis, and frozen organic fruit and vegetables will be purchased so that the shelf life is
longer.

Financial Analysis:
After computing the numbers for Around the Bend, there is a list of anticipated expenditures and
income for the company and how much is needed to be sold in the first year to make a profit.
Because the food service is a variable cost, the break-even point is only based on the members
who join.

The classes would be $30/month and based on the yearly cost of $360, the studio would need
1,457 members to join. Smoothies would cost $7 and snacks would range from $3 – $6. The
estimated smoothie and snack sale each day is one of each per person. Smoothie income is
anticipated to be $5,099 by taking half of the members who purchase them. Snacks are expected
to bring in $4,917 by taking 75% of the members and the median snack cost of $4.50.

For expenditures, the electricity, water, etc. will be $800/month, the phone bill will be
$200/month, and Internet at $200/month. Paying employees will differ between salary and
hourly. The instructor will receive $45,000/year, the receptionist will receive $30,000/year, and
the manager will receive $50,000/year. The anticipated nine hourly employees will receive
$12/hour. The food will cost approximately $400/week and advertising will be $300/month.
Laura Conaway
Business Plan
Leasing the building will be $3,000/month. The total expenditures will be around $524,486 for
an entire year, which includes interest payment at $49,502 for the first year.

Based upon these calculations, $10,000 will be invested into Around the Bend and making sure
there are enough resources for three months of lease and salary, a loan of $99,046 will need to be
borrowed. These are rough estimates and once the business is up and running, the numbers will
become more accurate as time goes on.

Works Cited

“Barre Workouts, barre3 Classes, Accessories & Apparel | barre3® Official Site.” Barre
Workouts, barre3 Classes, Accessories & Apparel | barre3® Official Site, barre3.com/.

Caramela, Sammi. “Startup Costs: How Much Cash Will You Need?” Business News Daily, 12
Apr. 2018, www.businessnewsdaily.com/5-small-business-start-up-costs-options.html.

“Juice Bar | Maxx Fitness.” Maxx Fitness Juice Bar Comments, maxxfitnessclubzz.com/juice-

bar/.

Lockwood, David. “'Fresh' Snacking Is on the Rise.” Mintel, 13 July 2018,

www.mintel.com/blog/food-market-news/fresh-snacking-is-on-the-rise.

“Natural and Organic Foods Market Growth.” Nutritional Products International Natural and
Organic Foods Market Growth Comments, 24 July 2017, nutricompany.com/news/natural-
organic-foods-market-growth/.

Walton, Alice G. “Yoga And Meditation Continue To Gain Popularity In The U.S.” Forbes,
Forbes Magazine, 13 Nov. 2018, www.forbes.com/sites/alicegwalton/2018/11/08/yoga-
and-meditation-continue-to-gain-popularity-in-the-u-s/#3b612bcf3782.

Wei, Marlynn. “New Survey Reveals the Rapid Rise of Yoga - and Why Some People Still
Haven't Tried It.” Harvard Health Blog, 15 June 2016, www.health.harvard.edu/blog/new-
survey-reveals-the-rapid-rise-of-yoga-and-why-some-people-still-havent-tried-it-
201603079179.