TABLE OF CONTENTS

1.0 ORGANIZATIONAL PROFILE …………………………........…..…………………..………………3

2.0 EXECUTIVE SUMMARY...................................................................................................................... 4

3.0 GENERAL COMPANY DESCRIPTION.............................................................................................. 8

3.1 COMPANY OVERVIEW.............................................................................................................. 5
3.2 MISSION AND VISION................................................................................................................ 5
3.3 STRENGTHS AND CORE COMPETENCIES............................................................................ 5
3.4 CHALLENGES.............................................................................................................................. 5

4.0 INDUSTRY ANALYSIS.......................................................................................................................... 6

4.1 Future Outlook, Trends and Forecast............................................................................................. 6
4.2 Analysis of Competitors................................................................................................................. 6
4.3 Market Segmentation/ Target Market.............................................................................................7

5.0 DESCRPTION OF VENTURE.............................................................................................................. 8

5.1 SERVICES:.....................................................................................................................................8
5.2 Size of Business.............................................................................................................................. 8
5.3 Office Equipment and Personnel.................................................................................................... 8
5.4 Background and Entrepreneurship….............................................................................................. 9

6.0 PRODUCTION PLAN......................................................................................................................... 10

6.1 Physical Plant................................................................................................................................ 10
6.2 Machinery and Equipment.............................................................................................................10

7.0 MARKET ANALYSIS........................................................................................................................... 11

7.1 Market Description....................................................................................................................... 11
7.2 Market Facts.................................................................................................................................. 12
7.3 Market Size................................................................................................................................... 12
7.4 Market Growth.............................................................................................................................. 12
7.5 Market Demand............................................................................................................................ 12
7.6 Market Mix .............................................................................................................................. 13

8.0 OPERATIONAL PLAN......................................................................................................................... 15

8.1 Service Execution Timeline.......................................................................................................... 15
8.2 Location........................................................................................................................................ 15
8.3 Legal Environment........................................................................................................................ 15
8.4 Personnel....................................................................................................................................... 15

9.0 Assessment of Risk……………………………………..…………………………...……..……………16

10.0 ORGAIZATIONAL PLAN.................................................................................................................. 17

11.0 FINANCIAL PLAN...............................................................................................................................18

11.1 Start-up expenses........................................................................................................................ 18
11.2 Revenue Forecast (3 - Year)....................................................................................................... 19

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 11.3 Profit and Loss Projection (3-Year)............................................................................................ 20
11.4 Pro forma Cash Flows (3-Year).................................................................................................. 21
11.5 Breakeven Analysis.................................................................................................................... 22

12.0 Conclusion…………………………………………………….……………………………………….23

13.0 Appendix……………………………………………………………………………………………….24

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 1.0 ORGANIZATIONAL PROFILE

IRON LODGE FITNESS STUDIO

218/1 New Elephant Road
PHONE: 01717893962
www.Ironlodgefitnessstudio.com

Owner: SAFIRUL KARIM

Description of business:

This business will give body human exercise services based on contract. Administrations
included minimal charge service, fixing from Heart related issues and body exercise
administrations. The agreement will be for one year and will have exclusive services and
booking after completion of service.

Financing:

11,00,000 taka loan to be paid off over one year and requested initially. This debt will cover the
basics from office space, office equipment and supplies, advertising and service providing costs.

This report is confidential and is the property of the Owners listed above. It is intended for use
only by persons to whom it is transmitted.

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 2.0 EXECUTIVE SUMMERY
1. Fitness Plus will provide health care and body workout services
2. Fitness Plus will offer low cost services to all segments of customer
3. Owners are experienced and dedicated towards health care services
4. Health care market is on the boom in BANGLADESH
5. Market volume is expected to reach Tk 69.8 billion by the year 2020
6. A large segment of market is still untapped
7. Heart disease and obesity are on record high causing increase in health club demand.
8. Low income market segment is ignored by key competitors
9. Health club market is competitive in Elephant road but provides equal growth opportunities
10. Increasing awareness, obesity and heart disease are the driving forces for market growth
11. Fitness Plus will have their own training facility with state of the art health care equipment
from quality manufacturers

3.0 General Company Description

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3.1 Company overview:

Iron Lodge Fitness Studio is situated in Elephant road, Dhaka. It will be formed by Safirul Karim
in December 2019. It will provide health and fitness services that are good in quality and low in
cost therefore affordable for all. The need is market driven as analysed from the local region and

3.2 Mission and Vision:

Vision: To create awareness about healthy lifestyle and its benefits to the people of Bangladesh

Mission: To provide strategies and training programs related to health care to our customers to
improve individual health concerns with positive impacts

3.3 Strengths and Core Competencies:

 Lowest cost of services in comparison to competitors

 No other major competitor operating near by focusing on customer needs
 Certified trainers from top ranked health care institutions
 Owner’s commitment and dedication towards health care services

3.4 Challenges:
Iron Lodge Fitness Studio will face a challenging situation in creating its brand image and
attracting customers towards their services due to presence of already established players in the
local market located near Dhanmondi affecting business near elephant road.

4.0 INDUSTRY ANALYSIS

4.1 Future Outlook, Trends and Forecast:

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A health club can be described as a service facility that is intended to provide physical health
care exercises with the help of specialized equipment. It normally serves both male and female
customers but in some cases females are provided special attention by providing them female
only health clubs in which all staff including trainers are also females or provide them with the
floor during odd hours when males are not participating during the exercise for example in the
morning or in the weekend afternoon hours. Normally, the environment is made casual to
provide customers comfortable experience that helps them performing bodybuilding and other
exercises with ease. According to a survey conducted in 2016, total number of health clubs in
BANGLADESH was 29,069 with over 41.3 million members. Almost 50% of those health clubs
were in Dhaka and were a likely we are going to see a rise in the trend for the need of physical
exercise and health awareness.

4.2 Analysis of Competitors:

Our business does not have a direct competitor with an upper hand of being situated at the heart
of elephant road however our near competitors are located as follows:

GYMS Location Price Brand Exposure Ratings

Gold’s Gym Bashundhara City High/Premium Busy mall - 5/5
High
Musclemania Dhanmondi 5 High - Moderate Well known 4.8/5
trainers - High
Automan Fitness Gym Dhanmondi 8 Moderate – Low Well known 4.2/5
trainers - High
Fitness Petrol Gym and Dhanmondi 4 Moderate – Low Moderate 4.6/5
Heath Club

4.3 Market Segmentation/Target Market:

AGE 0-10 11-20 21-30 31-40 41-50 51 &

Above
GENDER Male Female
OCCUPATIO Service Business Student Housewife Young Unskilled
N Holder man/women Professional Labour
INCOME 5 -10000 10000 30000+
-30000
SOCIAL Sec A Sec B Sec C Sec D Sec E

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 CLASS
LIFESTYLE Healthy Trendy Fun Adventurous Sporty
Loving
USER Current Competitors Potential
STATUS customer customer Customer

This is our current market profile, basically we are targeting Dhaka for our launch targeting the
working class applicable for both Male and Female.

Target Marketing Strategy will be for pursuing the niche marketing as we target the urban
region with the upper to middle socio economic class by only one marketing mix.

5.0 DESCRIPTION OF VENTURE

5.1 Services
Iron Lodge will provide following health related services:
 Aerobics
 Cycling
 Boxing
 Yoga
 Pilates
 Muscle Training
 Diabetes & Obesity Control

5.2 Size of Business

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Iron Lodge Fitness Studio will start its business on the main street area of elephant road, Dhaka.
The business will start with a total of 10 initial staff members that includes the owner as well.
We will rent 2200 square feet space to provide our service. We divided this floor into here parts.
1st part is for our office and waiting room for members. 2nd part is for locker and wash room.
3rd part is for providing our health care facilities. Initially we will serve around 100- 250 clints
in different time segments. We will increase our space based on our business growth and open
new branches in different region.

5.3 Office Equipment and Personnel

Office Equipment

 Desk and chair.

 Desktop.
 Printer.
 Office cabinet.
 Air conditioner.
 Fan.
 IPS.
Personnel
 Owner / Promoter
 One manager/ Accountant
 Four male trainer
 Two female trainer
 Two cleaners

5.4 Background and Entrepreneurship

Iron lodge Fitness Studio market in Dhaka has been serving to a high income segment of late.
Average income of a member is usually approximately around 50,000 – 75000 taka. This leaves
a large segment of the lower-income based potential customers with unmet needs and having no
attention at all. Iron lodge will primarily exist to provide health care facility focusing mostly on
to the lower income based class without compromising on quality of service that is not available

8
at all to them in the locality. In addition to the idea for the existence of the service is to educate
people as well and help them to be aware of the need of taking care of their health and body
which is not a luxury for the rich anymore but a necessity.

6.0 Production Plan

6.1 Physical Plant

We take rent a 2200square feet floor for five years. We divided this floor into here parts. 1st part
is for our office and waiting room for members. 2nd part is for locker and wash room. 3rd part is
for providing our health care facilities.

6.2 Machinery and equipment

 Treadmill
 Stair stepper
 Stationary bike
 BodyRev - The First Rotating Weight System. ...
 Boxing Equipment, Heavy bags at great deals! ...
 Dumbbells. ...
 Exercise Balls, Medicine Balls, Fitness Balls, Stability Balls and Swiss Balls. ...

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  Exercise mats. ...
 Fitness Bands. ...
 Flooring. ...
 Heart Rate Monitors.
 Pilates Reformer
 Trapeze Table
 Wunda Chair

7.0 MARKET ANALYSIS

7.1 Market Description According to a survey by The International Health Racquet & Sports
Club Association in year 2007, it was mentioned that there are 29,636 health clubs in Bangladesh
that house a total of 41.5 million3 members. Health clubs that are involved in commercial
business have a total membership of almost 20.4 million and 17.2 million members belonging to
not for profit health clubs.

7.1.1 Industry Life Cycle:

Health care and fitness industry in Bangladesh is still in the stage of growth, although it has been
more than two decades of active operations for the field to be active.

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7.1.2 Cyclical trends in Industry: Health club business is not affected by different seasons and
keeps running smoothly throughout the year.

7.2 Market Facts:

Health club market in BANGLADESH has grown rapidly in the last 10 years, following are the
key points related to health club members in Bangladesh.

 Out of the total members in BANGLADESH, 48% are male and 52% female
 Average annual income of health club member is 30,000 plus
 On average health club member attends 92 days per year in their club
 Most widely used health club program is personal training
 Top area of development in Bangladesh health clubs is cardiovascular equipment

7.3 Market Size: Total population in Dhaka is almost 20.628 million. The potential market size
in Dhaka is almost 1.5 million members. That’s makes almost attendance of all members in
health clubs. For positive reinforcements and reach it is said that on social platform one out of

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every three member of the population will have a reaction to the adverts posted either positive or
negative to the business when reached primarily that should be the first concern right now.

7.4 Market Growth:

Health care market in Bangladesh has grown at a very healthy rate in the last decade. As of 2007,
health club market reached 17.6 billion. It has doubled in size at almost 12.56% that was 7.8
billion in year 1995. It was a 24.1 million members market in the year 1995 which has grown at
almost 7.13% to reach 41.3 million in 2005.

7.5 Market Demand: Health care club market in Bangladesh is getting more and more
demanding with the passage of time. Following are the common demands that have arise in
recent past.

1. Customization: People who already have membership or those who are willing to have one,
are interested in subscribing to a customized health care plan according to their requirements or
as per the recommendation of medical expert.

2. Ease of Service: People are looking for exercises that are easy to adopt and are performed by
expert trainers.

3. Effectiveness of Exercise: Members are very demanding over results of the exercises which
they are performing. An expert trainer can be helpful in setting a proper exercise plan for the
members so they can work out accordingly.

Factor Causing Market Demand Per Capita Income Increase: Continuously increasing per
capita income in the last decade has enable people of Bangladesh to focus more on their health
related issues such as spending time in health care clubs and gyms.

7.6 Marketing Mix

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Iron Lodge Fitness Studio’s marketing mix is based on the following factors of product, cost,
distribution, advertising and publicity.

Product:

Health Care Services:

 Aerobics
 Cycling
 Boxing
 Yoga
 Pilates
 Muscle Training
 Diabetes & Obesity Control

Price:
 Penetration Pricing: Iron Lodge will face a challenging situation in a highly competitive
market of gyms in the local region. Therefore health club will offer quality exercise and
body work out services at a cost less than existing market standard which is maintained
by players such as Gold's Gym. They will offer basic body workout and exercise service
for only 100, in addition they will offer other services low in cost to compete with the
market. 5000 taka for yearly subscription can be charged for the first year.

Place:
 Direct Supply / Direct Sale: Iron Lodge Fitness Studio will have their health club
facility near the main street opposite to Bata showroom in Elephant road. They will not
involve in any kind of franchise or branch network other than the respective branch. For
further expansion we might plan on moving to Mirpur in the next year if the projected
numbers achieved for the first year.

Promotion:

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  Media Advertising: Iron lodge will use internet, newspapers, magazines, television and
radio as the medium of advertisement. In addition they will print 5,000 brochures for
creating awareness in the market about their health care services; they will be distributed
in major health care seminars and events where officials from Fitness Plus will
participate.

7.1 Benefits and Features:

 State of the art facility with latest equipment from quality manufacturers
 Low cost with monthly, quarterly and annual subscription plans
 Personal qualified trainers to help our members achieving results without wasting much
time

8.0 OPERATIONAL PLAN

8.1 Service Execution Timeline: Iron lodge will follow this service execution model to enter in
the health club market.

Task January February March April May June July

Choosing
location 

Website 
Development

14
 Hiring
training and 
admin staff

Advertising
  
Opening of
Health Club 
8.2 Location: Iron lodge Fitness Studio will start its business on the main street area of Elephant
road Dhaka located on the BATA signal for heavy exposure; there is presence of already
established health clubs/gyms such as Gold's Gym and MuscleMania in the nearby areas.

8.3 Legal Environment: There are no current legal obligations for Iron Lodge Fitness Studio.

8.4 Personnel: The business will start with a total of 10 initial staff members that includes the
owner as well.

9.0 ASSESSMENT OF RISK

9.1 Strengths:

 Management committed towards to a result orientated approach to attract and maintain

customers in a highly competitive market.
 Health care program is well-thought according to the need of layman.
 Lowest cost of service in the entire market of Coral Gables.
 Company will hire qualified and trained staff.

9.2 Weaknesses:

 Personal training services can be high in costs.

 Iron lodge is low in staff that can be problem in providing service to a large pool of
members.

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 Club is short of marketing budget to attract large business client.

9.3 Opportunities:

 Health care club market is rapidly growing.

 Increasing heart and obesity disease are causing people to pay importance to exercise
and health care activities.
 People are getting use to have gym and health clubs in their daily routine of life.
 A large segment of market is still untapped, low income area will be of special focus for
Iron lodge which is totally ignored by the rivals.

10.0 ORGANIZATIONAL PLAN

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 Owner
 One manager
 Four male trainer
 Two female trainer
 Two cleaners

17
 11.0 Financial Plan

11.1 Financial Plan

Startup Expenses

Iron Lodge Fitness Studio

Sources of Capital

Investment requirement Tk1,100,000 –

Total Investment Tk1,100,000

Startup Expenses

Health club development Tk 346,000

Personnel Tk 290,000
Capital Expenditures Tk 300,000
Consulting Services Tk 90,000
Promotion Tk 25,000

Total Start-up Expenses Tk 10,51,000

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11.2 Revenue Forecast (3 - Year):

Sales Forecast (3 Years)

Iron Lodge Fitness Studio

Year 1 Year 2 Year 3

Health Club memberships

1,250,000
Year 1: 250 members
4,900,000
Year 2: 980 members 14,700,000
Year 3: 2940 members

Others: Sales of training equipment (20% growth each year) 35,000 42,000

1,250,000 4,935,000 14,742,000

11.3 Profit and Loss Projection (3-Year)

Year 1 Year 2 Year 3

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Revenue (Sales)
1,250,000
Health club memberships
– 4,900,000 14,700,000
Sales of sports training equipment
1,250,000 35,000 42,000
Total Revenue (Sales)
4,935,000 14,742,000
Operating Expenses
346,000
Health club development
290,000 640,000
Personnel 700,000
300,000 348,200
Capital Expenditures 390,000
90,000 480,000
Consulting Services 480,000
25,000 6,000
Promotion 6,000
10,51,000
Total Operating Expenses
199,000 1,474,200
Profit 1,576,000
3,460,800 13,166,000

Net Profit 199,000 3,460,800 13,166,000

11.4 Pro forma Cash Flows (3-Year)

Pro forma Cash Flows

Fitness Plus

Year 1 Year 2 Year 3

Cash Received
Cash from Operations
Cash Sales 1,250,000 4,935,000 Tk14,742,000

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Cash from Receivables 0 Tk0 Tk0
Subtotal Cash from Operations 1,250,000 Tk4,935,000 Tk14,742,000

Additional Cash Received

New Borrowing 1,100,000 Tk0 Tk0

New Other Liabilities (interest-free) Tk0 Tk0 Tk0
New Long-term Liabilities Tk0 Tk0 Tk0
Sales of Other Current Assets Tk0 Tk0 Tk0
Sales of Long-term Assets Tk0 Tk0 Tk0
New Investment Received Tk0 Tk0 Tk0
Subtotal Cash Received Tk2,250,000 Tk4,935,000 Tk14,742,000

Expenditures

Expenditures from Operations

Personnel Tk290,000 Tk348200 Tk390,000

Consulting Services Tk90,000 Tk480,000 Tk480,000
Promotion Tk25,000 Tk0 Tk0
Subtotal Spent on Operations Tk405,000 Tk828200 Tk870,000

Additional Cash Spent

Taxes Tk0 Tk0 Tk0

Principal Repayment of Current Borrowing Tk0 Tk1100000 Tk0
Other Liabilities Principal Repayment Tk0 Tk0 Tk0
Long-term Liabilities Principal Repayment Tk0 Tk0 Tk0
Purchase Other Current Assets Tk0 Tk0 Tk0
Purchase Long-term Assets Tk646,000 Tk1120,000 Tk1,180,000
Dividends Tk0 Tk0 Tk0
Subtotal Cash Spent Tk1051000 Tk3048200 Tk1948200

Net Cash Flow 1199000 1886800 12793800

Cash Balance 1199000 1886800 14155630

11.5 Breakeven Analysis

Breakeven Analysis
IRON LODGE FITNESS STUDIO

Cost Description Fixed Costs Variable cost (%) Costs

Variable Costs
Personnel 10.00%
Consulting services 3.00%

Fixed Costs

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 Health club development Tk 346,000
Personnel Tk 290,000
Capital Expenditures Tk 300,000
Consulting Services Tk 90,000
Promotion Tk 25,000

Total Fixed Cost 1,051,000

Total Variable Cost 13%

Total sales level 1,208,046

Break even Calculation = 1,051,000 / (1 – 0.13) = 1,208,046.

12.0 Conclusion
Iron Lodge Fitness Studio is an all round attempt to help the common people with the real
problems that they are facing health issues. Staying fit is a something that is invaluable and
avoiding health risks has become a vital aspect as we all know “Health is wealth.” In order to
achieve that one has to take care of their mind as well as body as we are wired in that fashion
covering the basics and our motivation is just that to motivate our customers to stay healthy and
fit adopting to the individual requirement as everyone has their own priorities and different
solution to their problems.

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 13.0 Appendix
Bangladeshi health club market share is 5.21%

 Total 29,069 in Dhaka.

 Total 1,691 health clubs in State of Chittagong.

Bangladeshi health club growth rate is 9.59%.

 Dhaka has 14.5% of total 41.3 million (5.9 million)

Market Volume:
2010 market size is 17.6 billion

2000 market size was 7.8 billion

Members Growth:
2000 total members were 24.1 million

2010 total members are 41.3 million

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