BUSINESS PLAN FOR

YABNA GYMNASIUM/FITNESS

CLUB

OWNER:W/O FIREHIWOT KEBEDE

DATE 14/02/2023
Contents
......
1) Introduction ............................................................................................................................ 1
....................................................................................................................... 3
1.1)Objectives of the business plan ....................................................................................... 4
.
1.2) Business philosophy
1.3) List.of key company principle ...............................................................................
2). Executive Summary ............................................................................................................... 5
2.1) Fundamental Objectives of the GYM
.......................................................................... 7
2.2)Company Vision
2.3)Opportunity on the market
3)Marketing analysis..................................................................... 8 .
3.1) Opportunity on the market
3.2)Marketing Strategy
3.3)Advertisement.................................................... .. ..
........................................................................................
4). Competitive Advantages of the Gym
4.1 ) Competitors market.
4.2)location Advantage.
4.3)Company strength.................................................................... ...................
5) Members' health improvement..........................................................................................
5,1).Fitness Assessment
5.2.Nutritional Supplements and Food...........................................................

6)FINANCIAL ANALYST
6.1))Break Even analysis
7) COMPANY STRUCTURE AND HUMAN RESOURCE POLICY

7.1 ) Gym membership

7.2) Employment
7.3)Job description of employee.
7.3.1)Managing director
7.3.2)personal trainer
7.3.3)Receptionist/Customer service
7.3.4) Cleaners
8) Conclusion
 1) INTRODUCTIO

1.1) OBJECTIVE OF THE BUSINESS PLAN

The objectives of this business plan are to make cost analysis and to show with numerical
conclusion if there is a market for running a fitness center at Lemikura subcity with considerable
profits. The objective is also to use this business plan to apply for funding from financial
institutes, such as banks and financial services and also potential investors, there is if the plan
pans out to be profitable

1,2) BUSINESS PHILOSOPHY

Many businesses are driven purely by profit and have a myopic perspective on financial
performance. This new gym will start with the customer and their respective needs. The adage
of the ‘customer is always right’ is what will drive business. Clients are more likely to return and
give referrals if treated properly, increasing their lifetime value to the business. Maximizing
customer lifetime value will be an important core philosophy. Rather than focus on transactions,
the focus will be on customer connections. For a small, independently owned business,
personal connections produce customer loyalty and repeat business. Perhaps more importantly,
personal connections have the ability to produce satisfied customers, which in turn reflects the
product and generates referrals. In addition to personal connections, the business will
emphasize innovation. Innovation will not only pertain to product/program offerings, but to
creative business solutions. Creative solutions to business issues (strategic partnerships,
creative marketing/advertising, database and payment management, etc.) help establish a tone
to the day‐to‐day operations as well as helping to establish a brand identity.
The life‐blood of any operation is its employees. The fitness center will need to employ
people with complimentary personalities and demeanors. This does not mean that the
employees should be homogeneous in disposition, but instead they must have a core
understanding and drive. This core element will unite them and create a consistent atmosphere.

1.3) LIST OF KEY COMPANY PRINCIPLE

The Customer leads business

Form connections don’t just produce transactions
Innovate whenever possible
Enjoyment through work
 2) EXECUTIVE SUMMARY

2.1)COMPANY BUSINESS AND THE FIELD INDUSTRY

With technological and social changes exercise is becoming less and less part of our day to
day activities. Our cultures have moved from physically intense work over to working mostly in
offices all day long. This has led people to seek out alternatives in exercises like attending
fitness courses or training at fitness centers. In these past years health consciousness has also
been increasing and awareness of the benefits of a healthy lifestyle have further increased the
demand from the society for more exercise options, like fitness center dance classes and
outdoor leisure

The main purpose of the GYM is to meet the needs of the inhabitants for a quality fitness
center which is customer driven with the goal to help those that are in bad physical to get
started in changing their life for the better and those that have substantial awareness to remain
fit ,it is a fitness center with all the latest equipment and one which will offer a high class training
session with qualified trainers for our members. What will make this company competitive on the
market is the combination of a fitness center and health awareness for its members . The gym
places rich emphasis on the fact that its staff members are highly qualified and fully capable to
take care of high demands of the customers.
The new gym will offer access to fitness equipment, personal training, and fitness
assessments in a comfortable and welcoming environment. Sharp design and a comforting
environment will set the gym apart from the competition. It will be a place where people want to
be rather than have to be.

2.2) FUNDAMENTAL OBJECTIVE OF THE GYM

1)To have qualified employees who create great customer value and have the opportunity of
further increasing their knowledge at GYM. -
2)Provide spacious facilities with quality equipment to meet high customer demands. -
3)Create customer value through high quality service.
4) Build up a strong brand name.
5) Create an element of uniqueness through a combination of Fitness- and CrossFit Center

2.3)COMPANY VISION
Four main components will characterize and drive the business: (People, Service,
Partnerships, and Productivity. )
1)People: Create an environment where people want to work out rather than need to.
2)Service: Customer service leads to success. Transactions make them come in. People make
them come back.
3)Partnerships: Always push for a situation where all parties are happy.
4)Productivity: Stay current and stay lean.

3) MARKETING ANALYSIS

3.1) OPPORTUNITY ON THE MARKET

With technological breakthroughs and social changes these past decades exercise has
become less and less of an unconscious activity of our day to day lives. Our culture has moved
from labor intensive work over to sitting in front of a computer screen barely moving at all. This
has lead citizens to not move enough at their jobs and have to seek out alternatives in exercise
like attending or training at fitness center GYM‟s target market has been increasing over the
past decade
. There has also been an increased awakening among the citizens about relation of bad
physical state and increased healthcare expenditure, YABNA GYM could use that as an
opportunity to try to get interest from the inhabitant by providing advice that those that are in a
bad physical state will end up leading a stressful and unhealthy lifestyle and help them get
started with the support of professionals. This would in the end lead members to decrease their
healthcare expenditure and start a very productive lifestyle .YABNA GYM fitness-center will
have an age limit of 16 years. Therefore the market size is all of those that live in the sub city
from the age of 16 and over.
The industry has a variety of potent market drivers. Every physician, health educator , health
journalist, school, university, indeed, every major Institution are concerned with health,they all
advise their staff, patients, students, and clients that regular exercise is vital to a healthy and
productive life. Whether managing stress, avoiding long‐term health problems to simply looking
and feeling one’s best.
Health and fitness is a growing concern to citizens, a concern that will continue to grow
sharply in the years ahead, despite general economic conditions

3.2) MARKETING STRATEGY

Our GYM‟s marketing strategy will be customer driven, the main focus is to delivering
more value to the customer than the competitors are doing and that is how GYM will
position itself “better-for-more”. YABNA GYM will offer their customers a more spacious facility
and better quality equipment, at a very considerable price. The trainers will help all of those that
want to get started by building an exercise program for them.
Main marketing strategy is summarized as
!)Increase sales both at the Fitness- and health Center.
2)Publish and promote the company and its services.
3)Increase demand for the service that the GYM provides.
3)Build up and establish the GYM as a brand name.
4)Help those that need to get in better physical condition.
 How will this be implemented?)
1)Through advertisement in the media,
2)Business-to-business marketing e.g.offering discount for members who are customers of
nearby business
3)Through public relations by encouraging the employees to be posting positive image writing
articles on social media to build up good company image.
4)Through cooperation with the private and government institutions in the sub city and/or the
government.

3.3) ADVERTISEMENT

In an effort to increase awareness of the gym prior to launch, an effective promotional

campaign will be employed. This will be accomplished through word of mouth ,posters on
billboards ,pamphlets and social media.In addition community outright initiative will follow
including but not limited to little league sponsorship, participation in and sponsorship of social
events and school sports teams. The goal is to integrate the gym into the community, to have
customer service drive business and to innovate and differentiate whenever possible.
Personal Training In addition to memberships, is a major source of revenue for the gym.
Trainers will be given a 20% commission for any client they sign up for a membership .Personal
Trainers will be paid on hourly and the training prices will range from 20-50 birr an hour

4) COMPETITIVE ADVANTAGE OF THE GYM

4.1)COMPETITORS

According to data from Statistic Lemikura sub city the population has been increasing these
past years which indicate that the market demand for fitness center is increasing.A
strong indicator of increased demand for fitness club is the fact that resident are using fitness
center as far as GAST MALL and some spend their weekend blocking road to do some
exercise
. This promotes the idea that there would be a demand in the subcity for a fitness center
Competitive rivalry in Lemikura sub city right now is quite low, there is one clear market leader
which is GUAST gym .YABNA GYM would create competitive advantages through the
combination of proximity to members,reduced membership fee and deliver more customer
satisfaction through qualified employees with customer driven attitude.
 4.2)LOCATION ADVANTAGE
There is no use in offering any kind of service if the customer is unable to reach it. Location
is important for businesses especially where clients have to come every day. A good location
is a great advertisement and curious encouragement.
The actual location of the gym is within a few minutes travel from residential Society
estimated to be a minimum of 200,000 inhabitant in the nearby real estates including
NOAH,SUNSHINE , AYAT and WALMAS, in addition other real States and condominium with a
few minutes Drive include YERER REAL ESTATE, AYAT condominium ETHIOPIAN AIRLINES
employees village and many other private and commercial apartments which are residential
sites targeted by the business. Furthermore, future projects like PHISON,FLINTSTONE and
many other government owned AYAT condominiums are considered potential markets.
The close proximity of the gym to these highly populated and well paid inhabitants makes the
location convenient for its members
4.3)GYMS STRENGTH
The primary strength is differentiation through impeccable customer service and unique
ambiance. In addition, the fitness center will offer quality products (equipment, facilities, etc) and
quality services (personal training, classes, etc.). Over the years, fitness centers have become a
commodity in that there are not many differentiating factors. This is why differentiation is key.

5)FINANCIAL ANALYST

The 250 square meter gym will require heavy startup capital for renovations and equipment
purchase. For the company to be able to get up and running it has to gather 15 million birr. The
fitness center requires 10 million birr for equipment and will be able to service around 35 –45
people at a time or around 450 people on weekdays given that each individual spends no more
than 1,5 hours at a time in the fitness center. The aerobic section is relatively cheaper in cost of
equipment or roughly 1000000 birr and will be able to service around 35 people at each
course.Other expenses which includes renovation,decoration, shower- and locker rooms and
other minor expenditures is estimated at 2,000,000 Birr
The facility needs to be able to meet minimum requirements of a fitness center at start up.
The financial funding will be acquired through a loan and investment from the owner.The GYM
expects to take 15 million loan from Tseday Bank for five year

5.2) BREAK EVEN ANALYSIS.

Break‐even within the first year of operations

Keep margins high by offering value and reducing costs
Maintain a year to year ROI of 15% within 3 years
Maintain a 60/40 debt to equity ratio
Offer a diverse product offering (classes, personal training, equipment, etc.
6) COMPANY STRUCTURE AND HUMAN RESOURCE POLICY

6.1) GYM membership

Most gyms run by the membership model whereby customers purchase a membership for a
given period of time, allowing them access and use of the facilities. Memberships will be
available at different price points corresponding to the specified time period. Group rates will be
offered to couples and organizations. Please see the membership table below for a
comprehensive listing of membership types and pricing.
Overall, our memberships will be flexible in order to accommodate the client as much as
possible.

Membership Duration Rate Note

Single Day Pass 250 BIRR with the purchase of day “bundles” (3/5/7/14 day packages)
Single 1 month 2300 BIRR
Single 12 months 200/month
Single (2) 24 months 1900/month
Single (3) 36 months 1800/mpnth
Group – 2+ 12 months 1900 birr, 10% off for each additional person
Group – 2+ 24 months 1800, 10% off for each additional person
Group – 2+ 36 months 1700 birr 10% off for each additional person

6.2) EMPLOYMENT

GYM‟s business is service oriented. Its employees, e.g. the receptionist and the
trainers are interacting with the customers and creating value. In hope of adding
as much customer value to the business as possible it is crucial that the employees are highly
qualified and get support from the company.“Successful service companies focus their attention
on both their customers and their employees.”

To do this YABNA GYM has to follow and understand the service-profit chain which consists
of five links:
1. Quality work environment – qualified employees with strong support from the
company which leads to
2. Happy and loyal employees which are more productive which leads to
3. More service value – more efficient value creation in service delivery which leads
to
4. Happier customers and happy customers stay loyal and keep buying the product
and recommend it to their friends which leads to
5. Steady and healthy profit increase and service performance

6.3. Job description of employee

6.3.1) Managing director.

YABNA GYM needs to be run by someone that has experience
in business, preferably someone with an education in business administration.
Former experience from running a similar business is required. The role of the
managing director is to supervise all factors of the business and observe if
Everything is running according to schedule. His role will also be to see that the
Customer satisfaction is met and goals for market size are sustained.

6.3.2)PERSONAL TRAINERS
The trainer must act as a teacher and motivator, and also as a therapist.They are obligated
to help clients to get started. Prepare for them an exercise program and show those who want
help around the facility and teach them how to work each equipment. This will hopefully help
YABNA GYM to be compatible on the market and encourage those that have been wondering
about getting started to get started in the hands of a professional’

Depending on the trainer’s experience and specialty Personal training can be a very intimate
service. The trainer must act as a teacher and motivator, and also as a therapist. The gym is an
intimidating place for many people because they are afraid of judgment. Furthermore, many
people who are either new to the gym environment or are overweight need emotional support
because their eating and exercise habits are often tied to psychological/emotional aspects. A
trainer must be able to help the client identify these issues and provide them with new strategies
for how to eat and exercise to promote a healthy lifestyle. For this reason, the trainers hired
must not only be personable, but must be sensitive. A variety of trainers will be available so
each client can be paired with the most conducive trainer in terms of style, personality,
experience and their fitness goals.
6.3.3) - Reception / customer service.

There will be four receptionists / customer service positions all working half a day. Or one
receptionist with a fulltime job and the other two have a part time job. Their main occupation will
be to answer the phone and help those that want to start membership with the GYM to sign up.
Their educational requirements are minimal but they need to have service motivation and
able to take initiative..

6.3.4) MAINTENANCE

The customers‟ demands that the equipment that he is intending to use will be working at its
optimal so it is important that there is someone that will be able to fix the equipment that needs
to be attended to on a regular basis .
 There is a possibility that there will not be a person in maintenance on payroll but instead hire
a contractor whenever something breaks. But will be included as staff
member in the income statement

6.3.5)Cleaners
.There has to be at least one cleaner of each gender per shift to be able to
clean the shower rooms. Cleaning will be written in their employment contract.

7)MEMBERS HEALTH IMPROVEMENT

7.1) FITNESS ASSESSMENT

The gym will offer various fitness assessments to the fitness enthusiast, beginner, or to those
who have been long removed from fitness. These assessments will help establish a baseline for
clients, provide numerical feedback about their health and allow them to benchmark their health
against the average. Assessments will be offered to both members and non‐members
(non‐members will incur an additional fee). Assessment Cost (Member) Cost (Nonmember)
Baseline Fitness Test vary from 300 to 600 birr

7.2) Nutritional Supplements and Food

Due to the high concentration of athletic and health‐oriented clientele, the gym is a great place
to offer nutritional supplements such as protein powders and shakes, creatine, and other amino
acids. In addition to supplements, health snacks such as nuts,fresh juice trail mix, and meal
replacement bars will be offered. All these will be available from our healthy mini cafe located in
the gym near the front desk.

8)SUMMARY

.When the information from this business plan is examined it is visible that everything
indicates
that there is a strong base for opening a Fitness center in the area.