Profitable Fitness Classes: A Business Plan for YMCA Essex

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Business Plan
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Table of Contents
Executive Summary.........................................................................................................................3
Business Model................................................................................................................................4
Vision...........................................................................................................................................4
Mission.........................................................................................................................................4
Value............................................................................................................................................4
Working of Business model.........................................................................................................4
Value Proposition.........................................................................................................................5
Target Market...............................................................................................................................5
Marketing Plan.............................................................................................................................5
Key Resources and Activities......................................................................................................5
Financial Analysis...........................................................................................................................6
Cost and Profit Analysis..............................................................................................................6
Sales Scenario..............................................................................................................................6
Capital Spending..........................................................................................................................7
Operational Cost..........................................................................................................................7
Funding Requirements.................................................................................................................8
External Environment......................................................................................................................9
Economy......................................................................................................................................9
Market Analysis and Key Trends.................................................................................................9
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Competitor analysis......................................................................................................................9
Implementation of Roadmap.........................................................................................................10
Projects & Project Plans.............................................................................................................10
Risk Analysis.................................................................................................................................10
Limiting Factors and Obstacles..................................................................................................10
Critical Success Factors.............................................................................................................10
Risks in business and its Countermeasures................................................................................10
Conclusion.....................................................................................................................................12
References......................................................................................................................................13
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Executive Summary
This business plan will be framed to start a business related to the fitness classes for young
individuals in YMCA Essex. As it is very well known that fitness is an important element for the
society thus it will help young individuals to stay fit and adapt to a healthy lifestyle in the daily
routine. As most of the youngsters are facing the different health problems nowadays relating to
weight thus this plan will help to get the youngsters in perfect shape and thus avoid health issues
in the future. The business plan will be to offer free fitness classes at a local gym which will
provide free space and equipment for such helping cause. The gym will provide a free area for 6
days a week for 2 hours daily along with the equipment required for the fitness class. Also, the
trainer has agreed to volunteer the classes for free. In a business plan, it is expected that the
fitness class will have approx. 10-20 members other than individuals from YMCA Essex which
will pay £ 150 per session for 12 sessions. In this business, there will be certain expenses also
which relates to cars, fuel, bottles, etc. The overall aim of this business plan will be to provide
free fitness classes and also earn profit to run the family.
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Business Model
Vision
The overall vision of the plan is to provide a healthy environment in Essex and create awareness
among the young people relating to staying fit and the advantages of staying fit and avoiding
health problems. The fitness club will help young people to have a fit body and increase the
stamina level which in the long term would be beneficial for the individuals. Also, the plan will
focus on providing a healthy and learning environment for the individuals of Essex at the place
where such a facility of fitness classes is provided (Kusumaningrum & Hidayat, 2016). The
overall vision of the fitness classes is to train as many youngsters as possible in the minimum
amount of time.
Mission
The overall mission of the fitness classes is to provide fitness training to young people free of
cost and appoint the best trainers for training the people. Also, the mission of the business plan
will be to provide a healthy environment that will help to learn and develop an interest in the
fitness of the individual. The mission would be to provide the best possible experience for the
members of the fitness classes and provide the professional coaching of high quality. The
mission will include the provision of innovative fitness and lifestyle programs which will help in
enhancing the quality of life and increase the life expectancy of the individual. Also, the business
will aim at influencing young vulnerable and homeless people to live a healthy life.
Value
Value is an important element in any business and no business can work without setting values
for such business. Fitness classes will have to set strong values that will help in the development
of business and create awareness and accountability among the customers and staff. Fitness
classes should focus to value the people which are related to such fitness class including staff,
trainers, customers, etc. Also, the service provided to customers by such classes should be
properly valued. Fiscal integrity should be valued which states that free classes should be
provided to young people and others should not be charged excess amount for the membership.
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Also, the business plan made for fitness classes should value outside collaborations and
community partnerships with the gym and other organizations as well as individuals.
Working of Business model
The business model has been developed along with the business plan which will focus on
providing free fitness classes to the young people of YMCA Essex at a gym for 6 days a week
and 2 hours daily. Also, outsiders will be allowed in the classes for which it is proposed in the
business model that £ 150 will be charged per person per session for 12 sessions. Also, other
facilities would be provided like drinking water, equipment for classes, etc. Marathon would be
organized for raising funds which would help in providing healthy food and sports clothing to
the young people.
Value Proposition
This plan is expected to increase the awareness of fitness among the people of Essex and give
them a healthy lifestyle and environment. This would help in increasing the life expectancy of
the young people as if they stay fit it will help them in living longer. Also, individuals will get all
facilities free of cost which is necessary for fitness classes and the equipment required for the
same. Charges taken from other people are also very nominal which does not put additional
burden on an individual for making such payment for a fitness class. This will also influence
young homeless people to join such classes and lead a healthy life.
Target Market
The target market for the business plan is the young and underprivileged people of Essex which
are unfit and living an unhealthy life. Also, people having awareness of fitness and want to start
the classes are the target market for the business. Middle-age people can also be targeted by the
business as due to stress and tension the fitness cycle has been dislocated for such people. The
main focus is on underprivileged and poor young people who do not get enough nutrition and do
not have money to join fitness classes to stay fit.
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Marketing Plan
The marketing plan of the business is to inform all the underprivileged young people of Essex
about the free fitness classes which are starting in a short period. Also, the marketing plan will
focus on advertising the fitness classes so that other people gain knowledge of the classes and
join the same which will help in earning profits from the business. Once the business will start
the plan is to depend on the word of mouth of the customers who have already taken the classes
and reduce the advertising expense for the business (De Pelsmacker, et. al., 2018). The free first
session is proposed to be provided to the new customers so that they can get knowledge about
such fitness classes and learn about the areas which will help in staying fit.
Key Resources and Activities
For setting up fitness classes many resources would be needed for the business. The main
resource is the place where such a fitness class would be held and that has been decided as a gym
space which is let out free of cost for 6 days a week, 2 hours a day. Also, equipment required as a
resource for fitness class will be provided with the gym itself free of cost. Another resource
required will be an individual who would train the people of fitness class. Also, other facilities
and resources would be required like a car, drinking water, advertisement pamphlets, etc.
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Financial Analysis
Cost and Profit Analysis
Particulars Amount (£)
Revenue from Fees £ 27,000
Revenue From Marathon £ 15,000
Total Revenue £ 42,000
Less: Variable Cost
Car Maintenance Expenses -£ 500
Helper expenses -£ 4,000
Fuel Expenses -£ 1,000
Variable Marathon Expenses -£ 5,000
Sports Clothing -£ 3,000
Food and beverage Expense -£ 500
Flyers Expenses -£ 2,000
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Drinking water Bottles -£ 800
Electricity expenses -£ 3,000
Contribution £ 22,200
Less: Fixed Cost
Fixed Maintenance Expense -£ 4,000
Fixed marathon Expenses -£ 4,000
Fixed Advertising Expense -£ 6,000
Training Expenses -£ 8,000
Profit £ 200
The point where the business can cover its variable cost from the revenue is considered as the
breakeven point for any business (Anderson & Leese, 2016). The above table shows the
breakage of the fixed cost and variable cost which could be helpful in computing breakeven
point. Thus it can be seen from the above estimate of sales can cover the variable as well as a
fixed cost and still is earning a profit of £ 200 which is a positive sign for the business thus
business plan should proceed as planned.
Sales Scenario
Particulars Age 18-30 Age 18-30 Age 31-
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(Underprivileged) (Other) 60
Number of people 15 10 5
Number of Sessions taken 12 12 12
Fees for Each Session 0 150 150
Total Revenue from fees 0 18000 9000
Revenue from Marathon
Number of Participants 20 200 100
Charge per Participant 0 50 50
Total Revenue from
Marathon 0 10000 5000
Total Revenue 0 28000 14000
Various scenarios have been determined in the above table which states the range of sales and
the areas of revenue for the business. It should be noted that the business will provide fitness
classes free of cost to underprivileged young people thus it would not earn any revenue from the
same. The revenue is earned by the marathon and class fees collected from other category people
which ranges between the ages of 18 to 60 as stated in the above table. The revenue earned from
the range of Age 18-30 is £ 28000 and from the other range of 31-60 is £ 14000.
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Capital Spending
Particulars Amount
Capital Requirements
Construction Cost £ 6,000
Furniture & Fixtures £ 3,000
Annual Maintenance contract £ 2,000
Purchase of Car £ 20,000
Water Treatment Plant £ 1,000
Total Capital Spending £ 32,000
There are various capital requirements for the business on which the amount is to be invested. In
the above table summary of the capital spending made under the business has been stated. It can
be seen that the company will require an amount of £ 32000 as capital spending for setting up the
business.
Operational Cost
Particulars Amount (Per Session) Amount (Cumulative all sessions)
Car Maintenance Expenses £ £
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83 1,000
Helper expenses £ 333
£
4,000
Fuel Expenses
£
83
£
1,000
Electricity expenses £ 250
£
3,000
Total Operating
Expenses £ 750
£
9,000
Operating cost is the amount required in the business for managing daily working expenses of
the business. The above table states the general operating expenses which would be incurred if
such a business plan gets executed. The table has bifurcated expenses based on per session and
the overall amount incurred for the complete class of 12 sessions. These expenses can further be
divided into fixed and variable expenses.
Funding Requirements
Particulars Amount
Funds required for construction £ 6,000
Funds Required for purchase of Car £ 20,000
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