Fitness Gym

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Kazakh-british technical university

Business school department of management

Business plan project report

Discipline: Business planning

Topic:

Fitness Gym

Тeam member 1: Adilya Yestay

Тeam member 2: Adina Marenova

Тeam member 3: Aitolkyn Kussaiyn

Тeam member 4: Abasbek Kydyraliyev

Almaty 2016

Business Overview

1.1 Description of the business

Gym business is gaining more grounds in recent times as it was in the 20th century. People are now more aware of the immeasurable benefits they stand to gain when they enroll in a gym. It is now obvious to a myriad of people that they can stay healthy, improve their lifestyle and live longer if they exercised regularly.

Statistics has it that there is a steady increase in the number of people that enroll in gyms and the fact that gym facilities is now closer to residential areas make this possible. In order words, with the increase in the number of people that enroll in gyms, comes the increase in the revenue generated by gyms.

Some people enroll in gyms not because they don't have the money to purchase some of the basic gym equipment, but because exercising regularly requires discipline and that is part of what they stand to get when they enroll in a gym with an instructor at hand.

Loads of factors are responsible for the springing up of gyms in various locations in Kazakhstan; chief amongst them is the rise in the number of obese people. Being obese is a risk to one's health, which is why obese people who thoroughly want to stay healthy and fit enroll in gyms that are close to them.

The gym industry is not going to go out of fashion anytime soon, but rather the number of people that enroll in gyms will continue to be on the increase and that of course will translate to more monies for gym owners.

1.2 Products&services

Industry Products

· Membership fees

· Guest admission sales

· Athletic instruction (excluding personal training services)

· Spa services

· Personal training services

· Merchandise sales

· Meals and beverages

Industry Services

· Operating fitness centers, health clubs and gyms

· Operating aerobic dance and exercise centers

· Operating body building studios for physical fitness

· Operating spas

· Operating swimming pools

· Sports for kids

1.3 Major players

Customers: Our gym house and fitness club will work towards providing services, facilities and environment that will help us reach out to our target market. These are the category of people that we intend marketing our gym and fitness club to;

· Corporate Executives

· Business People

· Celebrities

· Retirees

· Actors and Actresses

· Household

· Sportsmen and Sportswomen

· Students

· Young Couples

· Children

· Young adults

Suppliers:

1) Sport equipment and sportwear shop

2) Water suppliers

3) Sport food suppliers

4) Cleaning company

5) Medicine

6) Personal care products (shampoo, shower gel, creams, etc)

Pestel

Pestel analysis is the important thing for understanding the influence of external factors to the company. There are political, environmental, social, technological, economic and legal factors. Thus, the PESTEL analysis for the EurAsia Global Equipment looks like that:

Political factor is the factor where favorable political relations between countries are important, because the clubs are using products from different countries, and it is important that the situation in Kazakhstan and in the countries of suppliers remained favorable and peaceful relations between nations. Any conflict between Kazakhstan and other countries may lead to disruptions in the supply until the complete cessation of business relations. That would entail further search and replace supplier, and this requires additional costs. fitness development is not possible without the mutual exchange of knowledge and experiences between countries. Market leaders fitness services - the US and EU countries - set the fashion for various fitness trends. Having conquered the local market, health clubs these countries are shifting their attention to the unreached world space: open their chain of fitness clubs in other countries, conduct various workshops and master classes.

Social factor influence because of relation between society and job opportunities, where the stable social level in the country leads to flourish of the young generation's education and then it creates more professionals, who will be demanded for different companies needed to development and improvement in different departments.

As it has been mentioned earlier, the development of physical culture and sports in Kazakhstan contributed significantly to the implementation of the State program of development of physical culture and sports in the Republic of Kazakhstan for 2007-2011. In 2011, it adopted the "Sectoral Development Programme of Physical Culture and Sports in the Republic of Kazakhstan for 2011 - 2015", which is aimed at promoting a healthy way of life of the population, creation of conditions for physical culture and sports of all categories of citizens and groups, and one of target indicators is to "increase coverage of citizens engaged in physical culture and sports from 17.4% in 2010 to 25% in 2015."

Technological factor is one of the most important factors because today technologies are in everything and everywhere. So that, for this company new technologies are important for processes of delivering or some marketing concepts.

Economic factor always has the biggest influence for each company, and Fitness Equipment is not an exception. For this company, of course, the stability increasing of economy level is desirable way, and each economic leap could lead to negative situation.

The state pays much attention to the popularization of physical culture, since it is extremely important for the recovery of the population, to enhance its ability to work, improving the quality of human capital. Healthy capable population is the key to the country's economic well-being.

Legal factor is not so important for this company; however, some changes in the government's law will create the changes in the internal politics of the company.

To preserve existing and create new permanent jobs as well as sustainable and balanced growth of regional entrepreneurship in non-oil sectors of the economy of Kazakhstan, the Decree of the Government of the Republic of Kazakhstan from April 13, 2010 No 301 was adopted by the program "Business Road Map 2020". It is designed to implement the message of the President of the Republic of Kazakhstan N.A. Nazarbayev to people of Kazakhstan "New Decade - New Economic Growth - New Opportunities of Kazakhstan" and the Strategic Plan of Development of Kazakhstan till 2020. The program is one of the mechanisms of implementation of the State Program of Forced Industrial-Innovative Development of Kazakhstan for 2010-2014 years. The main objectives of "CST 2020" include: Support for new business initiatives; Improvement of the business sector; Reducing currency risk of entrepreneurs; Strengthening the entrepreneurial potential in Kazakhstan.

SWOT

One of the popular business analysis is SWOT. The SWOT analysis includes notions like strengths, weaknesses, opportunities and threats, which give the characteristics of the company's position in the contemporary business area. Where the strengths and weaknesses show the firm's analysis and the opportunities and threats are about the environmental analysis.

Strengths:

Pent-up demand and a lack of intense competition make it possible to keep prices at a fitness center on a fairly high level, which makes this type of business is attractive for development. business plan fitness gym

Most of the clients of fitness clubs prefer to engage in sufficiently large fitness center, equipped with high-quality equipment and providing a wide range of services that creates iconic background for business expansion. Given the fact that the fastest growing segment - premium clubs, a high probability of rapid return on investment in the project and to obtain high profits in the short term (3 years).

From premium to fitness for the masses.

Retrieved 04/02/2013 from http://www.zakon.kz/147610-perspektivy-razvitija- industrii-fitnesa.html

Fitness industry is a fast-developing field of activity. Investments in the health and beauty of the reach of hundreds of billions of dollars. People who used to regularly visit health clubs, even in times of crisis does not give up fitness centers, agreeing to save on other areas of expenditure.

The development of the fitness industry, by and large, can make a real contribution to the improvement of the nation, will direct the energy of children and adolescents in a peaceful course. In addition, the development of the fitness industry, the opening of new high-quality and affordable fitness centers, as the experience of foreign countries, is one of the most effective steps towards a healthier nation.

Weaknesses:

Recruitment issue is relevant for all market players, and the problem becomes doubly important, because it depends on number of employees.

Competitors:

The costs of fitness clubs in Almaty monthly.

Maximum is light green.

Minimum is dark green.

Money

1.4 Market trends

The requirement description of consumers to services

In recent years in Kazakhstan the tightened figure and well-groomed appearance became success signs for most of inhabitants. Demand for services of the Kazakhstan fitness clubs steadily advances offer. Even during the crisis period as show results of researches, many of those residents of Almaty who got used to visit regularly fitness clubs are rather agreed to save on other expenditure items.

For the modern citizen visit of fitness club is frequent not only a method of maintenance physical shape, but method of communication and self-expression. Many of admirers of fitness consider that visit of good club also emphasizes the status of the person and his active living position that is a positive factor in all spheres of life.

As practice witnesses, surges in fashion are characteristic of the fitness industry too on the separate directions, and according to urgent tendencies are created preferences consumers.

Due to the serious growth of popularity of group occupations recently modern the fitness centers aim to expand the list of these occupations, regularly implementing innovations in the schedule. Group bicycle trainings have still great success and outdoor-programs. Also popularity of power trainings and various grows dancing classes.

In addition specialists of the fitness industry note unprecedented demand for dancing aerobics which was at the peak of popularity in the 80th years. Besides, gain popularity the combined occupations combining elements of yoga, Pilates, the ballet, dances and even surfing. Are in the increasing demand of the yogi for children and the yogi for pregnant women.

Also some part of female population began to be keen on boxing. Moreover, appeared even such direction as "improving boxing" which doesn't exclude sparrings, but places emphasis on exercises with exercise machines, suspended sacks and imitating fights. One more new the feysbilding became the direction in fitness (the gymnastics of face muscles allowing to recover them tone).

Recently not individual, but collective personal enjoy popularity trainings in small groups (SGPT - small group personal training). Popularity growth reasons SGPT are simple. First, such form of work keeps all benefits of personal training. Secondly, the competitive aspect of group trainings in addition motivates the client on achievement of result. Thirdly, the cost of such occupations is significantly less

Special popularity was received by children's fitness and fitness for future mothers. In warm season the number of persons interested to visit water aerobics as these occupations, unlike traditional grows aerobics in the hall, allow to reduce load of a backbone and at the same time allow to achieve good results that who wants to lose excess weight or to tighten muscles. Now it is popular aquafitnes as many people have problems with a backbone.

1.5 Pricing and distribution

To sell the services fitness the club can perform as through system of subscriptions (which guarantee to regular customers of system of bonuses and discounts) and also through system of one-time tickets. Application of such two options will allow how to acquire regular customers, not to frighten off clients who can't go in for fitness constantly.

In this section of the business plan expenditure items, and also the income from opening of such institution are specified.

It is possible to bring the following in the expenditure item:

1. Room cost - from 5,225,660 tg.

2. Repair of the room and its registration - from 1,567,700 tg.

3. Equipment procurement - from 5,225,660 tg.

4. The salary to workers - from 20,693,600 tg per year.

5. Promotional costs - 522,566 tg.

Proceeding from these data, one may say, that for opening fitness of club the minimum and necessary amount constitutes 33 million tg.

What shakes the income, that opening fitness of club it is possible to gain quite big income:

Sale of club cards (min. 70 people) - 14 631 800 million tg a year.

The income from one-time visits - 7 838 490 million tg a year.

The income from provision of the accompanying services - 3 135 390 tg a year.

Total, after a year of work fitness of club it is possible to get profit 25 605 700 tg.

1.6 Implications or risk factors

As for risks, in case of implementation of their this project it isn't enough, but all of them are available. First of all, it is the commercial risk connected with unreliability of the income, problems with sale. In this case it consists in possible discrepancies to the predicted attendance of occupations. However, this risk is small as the environment and the market were rather studied, at the same time for calculations indicators not the best, and the most probable were taken. That the probability of this risk didn't increase further, it will be reasonable to conduct additional researches that in case of decline in demand to organize additional actions for its maintenance.

Other type of risk - production, directly connected with rendering services (for example, their low quality). In relation to these conditions this risk consists in a possibility of work of insufficiently qualified personnel (instructors). Among actions for decrease in this risk, first of all careful personnel recruitment and in case of need - their training and retraining.

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