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Feasibility study report

on Liyu Fitness Center


BY ROBA EYI
Contents
Introduction
SWOT ANALYSIS
VISION ,MISSION ,OBJECTIVE AND VALUE
KEY STAKE HOLDERS
PROJECT BENEFIT
PROJECT FRAMEWORK
FINANCIAL PLAN(COST,PROFITABILTY AND SOURCE OF FINANCE)
FINANCIAL ANALYSIS
ACCEPTANCE PLAN
Introduction
The project feasibility study was prepared by Roba Eyi who is the founder and General
Manager of the center.
The main question that this business plan will answer is if there is market for running a fitness
center in shashamane
Opportunity on the market
Demand
Factors which considered are Economy, Competition and populations?
Fitness center will satisfy the thirst of those demanding a new and better fitness center in
shashamane
SWOT ANALYSIS
Strength Weakness

Good Location No spa

High level of service quality Unknown market demand

Multiple price packages Uncertainty in finance

Opportunities Threats

Have many stakeholders like YSO Seasonal demand

Branch expansion New comers on the market

Governmental funding Constantly new substitutes emerging


State Vision, Mission and Value Statements

Vision

To provide first class comprehensive fitness center to enhance its members health and
wellbeing.
Mission
Relocating to a large and more appropriate location facility after five years of operation.
To create comfortable fitness environment.
To increate membership satisfactions.
Values
Customer-centric: we will have no start and end time counter for our trainees.
Excellence: We are committed for quality and efficiency so that we are able to ensure excellent
customer experience.
Accountability: We carry out our activities with quality, latest technology, integrity, transparency
and honesty
Impartiality: We are committed to be impartial and serve without any bias.
Sharing: We always try in working together so as to accomplish the mission of our center and
value with time and resources.
Goals
To have a good market share in fitness center in shashamane
To introduce a profitable business sector in Oromia.
To set the standardized fitness center with in a short time.
Objective
To have qualified employees who create great customer value and have the opportunity of further
increasing their skill.
Provide large facility with quality equipment to meet high customer demands.
Create customer value through high quality service
Building up well-known brand.
To produce productive citizen.
Key stakeholders
Shashamane town youth and sport office for follow up.
Different government and non-government organization employees.
Any young people in Shashamane.
Project benefit

Our culture has moved from labor intense work over to sitting in front of computer screen barely
moving at all. This has lead us to not move enough at their jobs and have to seek out alternatives in
exercise like attending training at fitness centers.
Fitness Center market target is all of those that live in shashamane town from the age of 16 and
above.
Project framework
Project location selected based on
Availability of market
Availability of labor
Availability of transport
Availability of power and telecom infrastructure.
Project Cost(initial investment cost)
S/No` Lists of Materials Quantity Measured by Unit Price (ETB) Total Price (ETB) Remark

1 Dump Bell 15 Pieces 750 11250


2 Indoor Bike 2 Pieces 12,500 25,000
3 Spin Bike 1 Pieces 13,000 13,000
4 treadmills 1 Pieces 75,000 75,000
5 Bench Press 1 pieces 1,0000 10,000
6 Dipping Bar 1 Pieces 6,000 6,000
7 Leg extension Machine 1 Pieces 12,000 12,000
8 Vibration plate 1 Pieces 9500 9,500
9 Barbells 10 Pieces 1500 15,000
10 Hammer Strength 1 Pieces 12,000 12,000
11 Pull Down Machine 1 Pieces 11,500 11,500
12 Abdominal Bench 1 Pieces 8,000 8,000
14 Jump Rope 5 Pieces 30 150
15 Television 1 Inch 16500 43 Inch LG Television
16 Sticker Meter square 85birr/meter square 8,500
17 Office Supplies 15000
18 Clock 250
19 Locker 32 Pieces 5200
20 Speaker 1 28,000
10 meter square for reception
21
House rent 70 meter square 160 112,00 office
22 Other unforeseen Cost 15,000
23 Total 296,850
Cont...
1ST Year Income Estimation
1ST YEAR
Daily card Every Sunday 1 month Card 3month card 6 month card TOTAL
card card card card card INCOME IN
Month sold total Income sold total Income sold total Income sold total Income sold total Income A YEAR
October 5 250 15 300 10 4000
November 5 250 20 400 10 4000 30 32400
December 5 250 20 400 10 4000
15 32400
January 5 250 25 500 15 6000
February 5 250 20 400 10 4000 30 32400
March 5 250 20 400 10 4000
April 5 250 20 400 10 4000
May 5 250 20 400 10 4000 30 32400
June 5 250 20 400 20 8000
July 5 250 15 300 30 12000 20 43200
August 5 250 15 300 30 12000
100 108000
Septembe
r 10 500 20 400 10 4000
TOTAL 65 3250 230 4600 175 70000 190 205200 35 75600 358650
First Year Net Profit
First year Profit
Total Income 358,650 Remark

Employee Salary 126,000

House Rent 134,400

other utilities Expense 15,000

Total Expense 275,400.00

Total net profit 83,250.00


TOTAL NET PROFIT AND SOURCE OF FINANCE
year1 year2 Year3 Year 4 Year 5
total

Total Income 83,250 99,450 127,200 138,000 148,800


596,700

SOURCE OF FINANCE
Loan period 10 years
total cost of loan 300,000
total payback payment 446,348.40
yearly proportion Cost 44,634.84
Financial Analysis
Payback period=2.89 years

Net present Value=143,238.09Birr

Internal Rate of return=25.560%


Acceptance Plan
Cont.
THANK YOU!