elements of a simple business plan

In the preceding weeks of this course, you have developed elements of a simple business plan for your Course Project. This Course Project was designed to help you appreciate the importance of the information that is included in such a plan. But that is just the beginning. If you take the time to do the initial planning and then never refer back to what you have done, much of your effort will be wasted. Equally important to the initial development of the plan is establishing benchmarks and scheduling reviews of the original plan. As your business grows, it might be necessary to adapt the plan to changing conditions, but this plan will still be the compass that guides your course and keeps your vision alive.

For this final week, you will add two pieces to your business marketing plan. First, you will write a 1- to 2-paragraph executive summary that briefly summarizes the key points of your plan. The summary should be clear enough that someone unfamiliar with what you are doing would have an overall idea of what you are proposing.

You will also write a 1-page summary outlining how your company would use your plan to continually grow and market your venture. In the summary, evaluate the plan for its short- and long-term feasibility. Is it easily adaptable to changing conditions? The summary should also detail how you would measure success (both financial and non-financial measures).

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Week 1

Cardio gym

Idea one is for building a gym that specializes in 30 – 60 minute cardio classes centered around 3 fitness machines. The first machine is a Versaclimber, a vertical total body cardio machine that mimics the running or climbing motion. The machine can be used by people of all fitness levels and has the benefit of 0 impact on the joints. Studies have shown that using the Versaclimber requires that athlete to use more VO2 which means you burn more calories than running. The effectiveness of this machine means you can schedule classes that are only 30 minutes long, a benefit for people with busy lifestyles.

The second type of machine to be used in the gym is the Schwinn Airdyne, a stationary bike with a fan built into the front wheel area and arm levers that push and pull. With a typical stationary bike, you set the resistance level and start pedaling. With a fan bike, you jump on and begin pedaling. The faster you pedal; the more resistance is built by the fan while slower pedaling decreases the resistance. This is another machine that is full body and requires a high level of effort, making it an ideal piece of equipment for a 30-minute cardio class.

The last piece of machine is the Concept 2 rowing machine. A rowing machine is not as high intensity as the Versaclimber or Airdyne, but also provides a full body cardiovascular workout. Rowing classes would be 30-60 minutes in length and users can adjust the resistance making it accessible to all fitness levels. Classes could be designed to be high intensity or lower intensity which means the gym member could variation in the styles of classes they take throughout the week.

The three cardio machines can be found in some CrossFit classes and extremely expensive private gyms, but they are not found in your typical big box gym. The footprint of the Versaclimber and Airdyne are small, so you can build the gym in a smaller building and fit many people into one class. 30-minute classes also allow you to double the number of classes you can offer within a day.

Week 2 Assignment

In the Orange County, California region, there are around 5000 Yelp hits for gyms and over 6000 hits for tea. Both types of business have low barriers to entry with tea shops having lower capital requirements than a gym. Most tea shops are small mom and pop stores that typically focus on cold tea with different additions such as boba or jellies. There is not much product differentiation between the tea shops, so convenience plays a key factor in attracting and maintaining customers.

While there are also many gyms, there appear to be around 1000 cardio style fitness classes in Orange County Some of these are weight training classes and fitness bootcamps. There are only a handful of locations that offer cardio classes using rowing machines and even fewer gyms using the Versaclimber. There are a few Pilates studios that have recently incorporated Versaclimber cardio classes. They charge $199/month for a monthly membership. There are two fitness studios that offer Versaclimber only fitness classes. Rise Nation has 5 locations in the US and is solely equipped with Versaclimber. They charge $175/ month for 12 classes or a 10-class package for $200.00. Cardio Climb offers a Versaclimber only class as well. They are attached to a standard gym, but the cardio climb only classes are offered for $100.00/month. I’ve chosen to go with the Versaclimber only cardio gym because of the low startup costs, the small gym footprint required and the lack of supply availability in Orange County

The wall mounted Versaclimber SM with Bluetooth costs around $4500 per machine. In an 800sqft location, you can install 10 machines with room for stretching and a front desk area. The average rent for a commercial space is $2.00/sqft, which totals to $25,600 in rent annually. Liability insurance for the gym would cost on average $741/ year and Personal training insurance can cost around $150 to $500.

Week 4 product positioning

Rise Nation is the first and most well- known cardio climbing class in the industry. The first location was built in West Hollywood, CA by a celebrity fitness trainer. The inside of the gym looks like top Vegas nightclub where the lights on the ceiling change colors and match the loud music being played. Once the class is over, you exit to a second-floor balcony overlooking the city as you wind down and have a chance to commingle with your classmates. The Rise Nation Instagram profile is filled with beautiful models partaking in the classes and the web articles mention celebrities such as Lebron James attending class. Classes are expensive, starting at $26.00 for a drop-in class or $175.00 a month for 12 classes and a 3-month commitment.

The Cardio Gym is located in the Orange County and easily accessible from beach cities as well as cities more inland. The demographics will not be primarily fitness models but rather a more diverse range of body types and fitness levels. Rent will be cheaper than West Hollywood, but the inside of the studios will have loud music and fancy lighting. Pricing will be $125.00 for a 12 class a month package and a 3-month commitment, making it a premium gym for Orange County.

Perceptual Map for Gym Rise Nation 9 9 2 Cario Climb 5 3 2 Cardio Gym 7 7 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 Rise Nation 9 9 2 Cario Climb 5 3 2 Cardio Gym 7 7 2 2 2 2 2 2 2 2 2

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