Detailed Evaluation of a Personal Training Business Model in Alberta

This report presents a comprehensive business model evaluation for a personal training business, specifically focusing on a fitness center in Alberta, Canada. It begins by identifying the business owner model as the chosen structure and targets young individuals, athletes, and middle-aged citizens. The report details the proposed location, projected income based on session charges and clientele, and the anticipated expenses, including equipment, rent, salaries, and other operational costs. A financial analysis is provided, calculating the net income after expenses, and concludes with an assessment of whether the projected income meets the business's needs and expectations. The report incorporates references to support its findings and provides a detailed overview of the business's financial viability.

Running head: BUSINESS MODEL EVALUATION
Business Model Evaluation
Name of the Student:
Name of the University:
Authors Note:

BUSINESS MODEL EVALUATION
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Table of Contents
Introduction:...............................................................................................................................2
1. Indicating the type of business model used for the Personal Training Business:..................2
2. Indicating the type of clientele that will be targeted from the business model:.....................2
3. Identifying the location of the proposed business:.................................................................3
4. Detecting the amount of income that can be generated from the business model:................3
5. Indicating the charges per session that will be conducted in the business model:.................3
6. Indicating the proposed expenses of the business model:......................................................4
7. Detecting the new revenue after expenses that is obtained from the business model:..........5
8. Detecting whether the net income level of meet the needs and expectation of the business
model:.........................................................................................................................................6
Conclusion:................................................................................................................................6
References and Bibliography:....................................................................................................7

BUSINESS MODEL EVALUATION
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Introduction:
The assessment aims in opening a new business, which deal in Personal Training
sector, where a fitness centre will be opened in Alberta, Canada. The business aims in
selecting an adequate measure and operation, which can generate high level of income from
investment. The financial perspective such as income and expenses of the overall operations
are mainly evaluated to detect capability of the new business to generate high level of income
from investment.
1. Indicating the type of business model used for the Personal Training Business:
The personal business training model will mainly have a Business Owner type model,
where the different gyms will be opened in the region of Canada for aggressively targeting
the fitness industry in the region. The aim of the business is to maximise the overall revenue
from investment, which can effectively maximise the profits from operation. Furthermore, the
business owner model would eventually help in supporting the business idea and in turn raise
the level of income that is intended from the business. The start of the business will be
conducted by opening a fitness centre in the city, which can help in improving the level of
income from operations.
2. Indicating the type of clientele that will be targeted from the business model:
The business model mainly initiates the use of a fitness centre, which directly targets
young individuals, athletes and middle-aged citizens. The business model mainly needs high
end customers to ensure the continuity of the process, which will help in maintaining a
profitable endeavour. In addition, the number of customers targeted for the fitness centre are
150 individuals, who will be targeted for acquiring the required level of income for the
business. The young generation, and middle-aged individual are mainly targeted in the fitness

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centre, as Alberta has higher demographics of the targeted individuals. Hence, in later stages
the business model will target old generation persons, which can directly increase overall
profits of the business.
3. Identifying the location of the proposed business:
The main target population of the business model is Alberta, Canada, which is
considered to be one of the densely populated areas of the country. The selection of the place
is mainly based on high level of individual that are living in the area, which is necessary for
the business’s survival, as high individual listed as customer would raise the level of revenue
generated from operations.
4. Detecting the amount of income that can be generated from the business model:
Particulars Number Charges monthly Total
Young Individuals 40 $ 160 $ 6,400
Athletes 43 $ 180 $ 7,740
Middle-aged citizens 67 $ 216 $ 14,472
Total Revenue 150 $ 28,612
The above table directly indicates the overall income that will be generated from the
business model. In addition, the target of business is mainly the young individual, middle
aged citizen and athletes, who are charged on monthly basis. The total revenue anticipated
from the business model is mainly at the levels of $28,612, where the target customer for the
fitness centre is at the levels of 150.
5. Indicating the charges per session that will be conducted in the business model:
Particulars
Young
Individuals Athletes Middle-aged citizens
Charges per session $ 20 $ 15 $ 18
Number of sessions per week 2 3 3

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Hours expected to work 4 4 4
Total gross income generated $ 40 $ 45 $ 54
Total monthly income $ 160 $ 180 $ 216
The above table directly depicts the overall monthly income that will be generated
from the operations, where the charges per session, number of sessions per week and the
expected hours of work for the week is depicted. This directly helps in detecting the level of
income that has been generated operations. Hence, from the evaluation the monthly income
per young individual is at the levels of $160, while Athletes pay $180 and Middle aged
indicated pay $216.
6. Indicating the proposed expenses of the business model:
Particulars
Numb
er
Amou
nt
Amou
nt
AmStaff Fitness DF-3031 Leg Press / Hack Squat Machine 8
$
1,000
$
8,000
TB011F Preacher Arm Curl Attachment for Workout Bench 8
$
80
$
640
AmStaff Fitness DF-1323 Multifunctional Press Benc 4
$
200
$
800
AmStaff TR023 Power / Squat Rack with Lat Pull Down &
Cable Crossover 3
$
800
$
2,400
AmStaff Fitness DF2108 Functional Trainer 7
$
600
$
4,200
ProForm 400 Crosswalk Sport Treadmill 15
$
750
$
11,250
ProForm Hybrid Trainer 11
$
600
$
6,600
NordicTrack Rower RW 200 8
$
700
$
5,600
NordicTrack Rower RW 200 9
$
600
$
5,400
Total Equipment Cost
$
44,890
Particulars Values
Rent $ 2,800.00
Electricity charges $ 5,200.00

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Salary $ 10,000.00
Other expenses $ 1,400.00
Interest Expense $ 1,987.53
Total Expenses $ 21,387.53
The proposed expenses relevantly compose of constant and one-time cost, which
needs to be borne by the business to adequately complete the business operations. The overall
total expense that will be incurred by the business on monthly basis, which comprise of rent,
electricity charges, other expenses, salary and interest expenses. However, the list of assets
that will be required by the fitness centre is also listed in the above table, while relent amount
to $44,890, which will be acquired by business loan, where the month payment will be at the
$1,987.53.
7. Detecting the new revenue after expenses that is obtained from the business model:
Particulars Value
Revenue $ 28,612.00
Rent $ 2,800.00
Electricity charges $ 5,200.00
Salary $ 10,000.00
Other expenses $ 1,400.00
Interest Expense $ 1,987.53
Total Net Income $ 7,224.47
The net income that will be conducted after the overall expenses of the business
model is mainly at the levels of $7,224.47. The net income is mainly derived after the overall
monthly expenses have been detected from the session charges conducted to customers.

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8. Detecting whether the net income level of meet the needs and expectation of the
business model:
The net income that has been generated from the overall business model is mainly at
the levels of $7,724.47, which is mainly appropriate, as the overall expenses of the business
has been deducted. Hence, the income that has been generated from the overall operations of
the business is mainly considered adequate for one fitness centre in the region. Arovah (2016)
mentioned that with adequate income from business the business plan can flourish and
generate high income from business.
Conclusion:
The overall assessment directly depicts the overall income that has been generated by
the proposed business over the period of one month. In addition, the financial expenses,
income and other assets that is required for opening the business has adequality been
mentioned. Hence, from the positive profitability projection of the new fitness centre it can be
detected that the proposed business is adequate.

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References and Bibliography:
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