Business plan for Rachel fitness

center

Prepared By: Rachel Aklilu

Table of Contents
1. EXECUTIVE SUMMARY.....................................................................................................................1
2. DESCRIPTION OF BUSINESS.............................................................................................................2
Mission Statement...................................................................................................................................2
Vision statement......................................................................................................................................2
Objectives................................................................................................................................................2
Business goals.........................................................................................................................................3
3. SERVICES:............................................................................................................................................3
Unique feature of AFC............................................................................................................................3
4. MARKET RESEARCH AND ANALYSIS.............................................................................................3
5. OPERATING PLAN...............................................................................................................................4
6. MARKETING PLAN..............................................................................................................................4
7. MANAGEMENT TEAM........................................................................................................................5
8. ORGANIZATION STRUCTURE/PLAN...............................................................................................5
SWOT ANALYSIS.................................................................................................................................5
9. FINANCIAL FORECAST/PLAN...........................................................................................................6
1. EXECUTIVE SUMMARY

This is the plan for a new business, Rahel fitness center, to be started locally at
MEKI town and then to be expanded to other towns.

Our specific purpose is to provide fitness programs to our members located in the
area. Rahel fitness center promotes long term lifestyle changes for our
communities through exercises, by offering access to fitness equipment, personal
training, and fitness assessments in a comfortable and welcoming environment.
With all of our unique features and services this company will be truly successful
generating growth, revenue, and independence for all its initial founders.

People mostly the young one will prefer to use this type of fitness center because
of its quick in layout and good service including shower, low prices of 500birr per
month and 20birr per day. The fitness center will be based on a 600 sq. ft floor
plan. It will be open 14hours starting from 12Am up to 2pm, with good security
system as well as the suitable fitness equipments.

Investment in machines, weights and other expenses including rental cost is

estimated at 650,000birr. The start-up cost for this venture is low at 650,000birr
and as such this would be an ideal investment.

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2. DESCRIPTION OF BUSINESS

The goal of this business plan is to address relevant aspects of the fitness center
industry and how our planned fitness center will fit within it.

Mission Statement
To create disciplined and healthy communities and also help shy, hesitant and
discouraged students of our college to achieve their fitness Goals. The goal is to
create an environment where the non‐athlete will feel comfortable. The AFC will
be an extension of the home: safety and familiarity are the most important
elements.

Vision statement
Three main components will characterize and drive the business: People, Service
and Partnerships.
 People: Create an environment where people want to work out rather than
need to.
 Service: Customer service leads success. Transactions make them come in.
People make them come back.
 Partnerships: Always push for a situation where all parties are happy.

Objectives
 To provide opportunities to advance and maintain the health and wellness of
community.
 To offer a variety of exercise programs to encourage AAMABC students to
make changes for a healthier lifestyle.
 To provide individual attention to members encouraging wellness through
fitness testing, evaluations, health screenings, exercise programming, and
personal training instruction.
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  To encourage the art and science of strength training and bodybuilding.

Business goals
 Break‐even within the first year of operations
3. SERVICES:

AFC will provide following health related services:

 Aerobics
 Cycling
 Muscle Training
 Obesity Control

Unique feature of AFC

 Customer guidance through the beginning phase of exercising.

 Low cost service
 Existence of the service
 Providing special care and support for female.

4. MARKET RESEARCH AND ANALYSIS

Ambessa Fitness center (AFC) will marketed to all people who needs this service
at batu leel, which is numbered at approximately more than 1000 peoples.
5. OPERATING PLAN

Our first tasks will be to hires a trainers and renting a house for the business in
batu. Also the company hires cleaners for fitness center and security.

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The company will recruit personal trainers by posting a flyer on the boards in the
batu town. Given that the company is interested in hiring those who are familiar
with this facility, free forms of advertising.

Proffecianals will show new trainers how the company works, teaching them the
procedure for training customers according to the company standards. Although
trainers may be given some standardize guidelines or suggestion for how to train
their customers, they are free to make their own decisions.

6. MARKETING PLAN

In order for AFC to succeed, the company will need to keep costs low and build a
reputation on batu. As a business that is only targeting members of the AFC
community, it’s essential that the company build a reputation as being one of the
best fitness centers.

AFC will be marketed physically. Initially the business will be marketed on-
campus advertising using flyers. AFC trainers and cleaners will also be required to
wear their AFC training shirts during their training/service giving session; these
inexpensive means of advertizing will minimize costs for the new company.

7. MANAGEMENT TEAM

I will be the partnership managers of the company. Although I have an education

in business management but have no business experience so, by communicating

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with other experienced person we will be qualified to launch and operate this
business.
Especially a crucial to a business that is service based and entirely dependent on
young people.

8. ORGANIZATION STRUCTURE/PLAN

The company will begin with two fitness trainers, cleaners of fitness center.
I will manage the business. As the company grows, it will hire more trainers.

SWOT ANALYSIS

Strength;

 Superior location; Ambessa business center will operate right on Batu

town, making it as convenient as possible for our communities.
 Unique business; this fitness center is the first business center in batu and
have low service price when we compare with other fitness center.
 Good profit maker; because Ambessa fitness center give service
throughout the year because of this its profit become high.

Weakness
 Lack of experience in business management system.
Opportunity
 There are no other fitness centers which give this type of service for
communities.
 Have high customer during all session

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THREAT
 Any physical activity carries with it a high risk of personal injury. Although
the company will be protected by waivers (claim) of liability, litigation
could still be costly.

9. FINANCIAL FORECAST/PLAN

Equipment Set Monthly Annual Total

cost/birr cost/birr cost/birr
Running machines 3 - - 200,000
Cycling machine 2 - - 20,000
Weights 3 - - 100,000
Dample 2 - - 40,000
Benches 3 - - 1,800
Decline abdominal bench 3 - - 1800
Iso-lateral wide chest 1 - - 10,000
Station multi tower 1 - - 25,000
Heavy duty adjustable bench 3 - - 1,800
Rope - - - 375
Push up material 4 - - 200
Aerobics box 50 - - 2,000
Mirror (15m2) - - - 5,000
HUMAN RESOURCE

Master/trainer 2 2500 30000 60,000

Supervisor 1 2000 24000 24,000
Cleaners 2 1000 12000 24,000
Security 1 1000 12000 12,000
Casher 1 1300 15600 15,600
House rent

30*20m2 1 5000 60000 60,000

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Operational cost - 1500 18000 18,000
Start up cost( for fulfilling - - 25,000
legal requirement and for other
things)

TOTAL COST 646,575

Revenue from No of Per month/birr Per year/birr Total

the AFC customers
Fixed 150 500 6000 900,000
customers
Temporary 100 20 240 24,000
customer

Total revenue 924,000

Therefore from the above financial forecasting our total cost is 646,575 and our
total revenue from the AFC is 924,000.
Total revenue - Total cost
=924,000-646,575
= 278,425, so if this business idea is acceptable Ambessa fitness center (AFC)
will be profitable in one year because total revenue is greater than total cost. Our
profit will be 278,425 in a year.