Fitness center opening business plan, with financial model
DATE OF THE REPORT: 01/09/2020
SCOPE OF THE REPORT: 177 pages, contains 73 tables, 45 graphs and diagrams, 7 fig.
METHOD OF PROVIDING: in electronic form
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DETAILED DESCRIPTION OF THE BUSINESS PLAN
The business plan is a business case for opening a middle class fitness club. The implementation of the project is possible in any city of Russia; within the framework of this business plan, financial calculations are tied to the bedroom area of Moscow.
The business plan for opening a fitness center includes:
• analysis of the Russian market of fitness services;
• analysis of the equipment of fitness centers;
• analysis of assortment and pricing policy on the fitness services market;
• description of the project concept;
• calculation of financial indicators;
• project evaluation and risk analysis.
For more information on the capabilities of the financial model of Inventica, see the Demo file.The business plan was drawn up taking into account the requirements of UNIDO, has repeatedly passed the approval procedure in credit institutions of Russia.
The concept of the project presented in this business plan is a reflection of the most promising, from our point of view, strategy for entering the market and the subsequent development of a new fitness center.
If necessary, the concept can be easily adjusted, while all financial indicators of the project can be automatically recalculated using the attached model (see below "Features").
The essence of the project
Opening of a mid-price fitness center located in a residential area of Moscow. In addition to the main ones, the fitness center will also offer its clients additional services: massage room, sauna and fitness bar.
Location of the project : Moscow
Project start : ... 2020
Specificity: a fitness center of the middle price segment with one fitness room, a functional training area, a cardio area, a cycle room, a martial arts studio and two aerobics halls.
Leasable area : total - 1,300 sq.m, including halls area - 840 sq.m, administrative and auxiliary premises - 460 sq.m
Rental conditions : long term rental
Types of club cards and demand distribution :: Basic (12 months) - ...%; Family (12 months) - ...%, Corporate (12 months) - ...%.
Weighted average cost of club cards: Basic - 22 thousand rubles; Family - ... thousand rubles, Corporate - ... thousand rubles
Number of club members : ... pers.
Services:
• Gym and cardio room with professional trainers-instructors,
• More than 30 aerobic programs for adults (Dance Step, Sculpt, strength programs, yoga, qi-gong, etc.),
• Antigravity yoga,
• Martial arts studio,
• Children's programs (children's aerobics, dance program, karate, individual lessons),
• Saunas,
• Massage,
• Bar,
• Sale of specialized sporting goods.
Investment budget : ... mln rubles.
Credit : 50% of the investment budget, period - 2 years, rate - 15% / year, grace period for repayment of the principal debt - 6 months, penalty for late payments - 1%.
Staff :… people, it is planned to attract external masseurs and individual trainers
Opening hours : daily, from 7:00 to 24:00
Opening : ... 20201) The business plan for the fitness center was developed in close cooperation with the current leaders and experts of the fitness services market.
2) Financial calculations for the business plan were carried out using the Excel-model, which is a proprietary development of Inventica.
3) The financial model is 100% automated
• The values of the project parameters taken into account in this business plan can be changed.
• The total number of parameters entered into the financial model is more than 1000 (month of the start of the project, area of premises, specification of purchased equipment and furniture, staffing table, volume and structure of services, pricing, structure of visitors, etc.).
• Changing any of the project parameters leads to automatic recalculation of the model.
• The ability to quickly recalculate allows you to independently calculate various strategies and scenarios for the development of your business, even if you do not know the basics of financial modeling and investment management.
The financial model is attached to the business plan.Chapter 1. PROJECT SUMMARY 12
The essence of the project, description of activities 12
Main objectives of the project 13
Marketing Effort 13
Total project cost 14
Raised funds 15
Financial prospects and main indicators of the project 16
Chapter 2. LEGAL ISSUES 17
Organizational and legal form 17
Constituent documents of a legal entity 18
Lease agreement or certificate of ownership for premises 21
Registration of the lease 21
Redevelopment approval 23
Definition of the concept of room conversion 23
Project documentation 24
Authorized bodies and organizations 26
Inspection reports 27
Registration of sanitary documentation 27
Examination of the premises by Rospotrebnadzor 29
Registration of documents of the State Fire Inspection 29
Sign Permit 30
Other expenses 31
Contract with private security 31
Registration of cash register machine (KKM) 32
Entry into the register of small businesses 33
Budget for registration of permits 35
Chapter 3. MARKETING RESEARCH 37
Russian market of fitness services 37
The volume and development dynamics of the fitness services market 37
Frequency of sports and the proportion of people involved in fitness clubs 38
Dynamics of the number of fitness clubs 41
Market development factors in Russia 43
Market trends in Russia 43
Market trends abroad 47
Consumer preferences 54
Age of fitness consumers 54
Attending group classes 54
Time of attendance at the fitness club 55
Popularity of various activities 55
Sign up for classes 56
Market of fitness services in Moscow 56
Geographic segmentation of the Moscow market 56
Pricing policy of fitness centers in Moscow 58
Pricing System 58
Price segmentation of fitness centers 59
Structural changes in pricing policy 60
Average cost of adult club cards 63
Average cost of personal training 64
Equipping fitness centers in Moscow 67
Operating mode 67
Distribution of FC over the total area 67
FC distribution over the gym area 68
Distribution of FC by the number of simulators 68
Distribution of FC by the number of aerobics gyms 69
FC distribution by pool 70
Assortment policy of fitness centers in Moscow 71
Distribution of FC by the presence of a solarium 71
Distribution of FC by the availability of masseur services 72
Distribution of FC by the presence of a beauty salon 72
Distribution of FC by the presence of a bath and sauna complex 73
Distribution of FC by the availability of a children's room 74
Distribution of FC by availability of sports programs for children 74
TRX 79 functional training room
Chapter 4. PROJECT CONCEPT 82
The essence of the project 82
Physical parameters 82
Fitness center area 82
Seasonality of sales 83
Fitness Center Loading 83
Opening hours 84
Market parameters of the project concept 84
Location 84
Range of services 84
Basic services 85
Additional services 85
Aerobic programs 85
Pricing 86
Factors affecting the cost of a club card 86
External factors 86
Internal factors 87
Pricing Methods 88
New Fitness Center Pricing 90
Types of club cards 90
Club cards cost 90
Chapter 5. MARKETING STRATEGY 92
Marketing policy and marketing objectives of the project 92
Selecting a Location 93
Criteria for choosing a location for a fitness center 93
Property rights: lease or ownership rights 94
Advertising Policy 96
Main channels and methods of advertising and promotion 97
Outdoor advertising 97
Internet 98
Advertising and souvenir products 99
Investment Stage 100 Promotional Events
Operational Stage 101 Promotions
Chapter 6. INVESTMENT STAGE OF THE PROJECT 103
Project schedule 103
Getting a loan 105
Room selection 105
Design 105
Technological project 106
Design project 106
Supply of engineering communications 107
Repairs 109
Telecommunications 109
Video surveillance system 109
Security and fire alarm 109
Purchase of equipment for fitness 110
Gym equipment 110
Cardio equipment 119
Aerobics hall equipment 119
Antigravity yoga equipment 121
Other furniture and equipment for the gym 122
Equipment of additional premises 122
Furniture and equipment for massage parlor 122
Fitness bar furniture and equipment 123
Lobby furniture 123
Furniture and equipment for changing rooms 124
Sauna furniture and equipment 124
Wardrobe furniture 125
Dishes for a fitness bar 125
Cookware 125
Tableware 126
Service premises 126
Administration office 126
Staff changing room and recreation room 127
Storerooms 127
Plumbing equipment 127
Equipment for the production of plastic cards 128
Fitness center automation 128
Marketing expenses 129
Other expenses 129
Investment Phase Cost Budget 129
Chapter 7. OPERATIONAL STAGE OF THE PROJECT 132
Main items of expenses of the operational stage 132
Rental expenses 132
Community expenses 132
Electricity 132
Heating 133
Water supply 133
Dynamics of utility costs 134
Territory cleaning and garbage disposal 134
Wages fund 135
Staff selection and training costs 136
Maintenance of the complex 136
Retrofitting and maintenance 136
Administrative expenses 136
Advertising costs 136
Outdoor advertising 136
Website Maintenance and Internet Advertising 137
POS materials 138
Other advertising expenses 138
Marketing budget 138
Telecommunication expenses (installation of telephones, security and fire alarm systems) 139
Consumables 139
Production of plastic cards 139
Household expenses 139
Costs per client 139
Security 140
Washing 140
Fitness equipment insurance 140
Equipment repair costs 140
Purchase costs 140
Other expenses 141
Operating budget 141
Operating Phase Main Income 142
Fitness Center Revenues 142
Dynamics of sales of club cards 142
Average frequency of club attendance 143
Additional services 144
Income from external individual trainers and masseurs 144
Planned volume of services in kind 145
Revenue operating budget 149
Chapter 8. FINANCIAL PLAN 150
Conditions and assumptions 150
Inflation 150
Tax environment 150
Profit and Loss Statement 152
Cash flow statement 154
Forecasted balance 156
Tax payments budget 157
Chapter 9. PROJECT EVALUATION 158
Structure of operating expenses 158
Cost-benefit analysis 158
Project profitability 158
Net income 159
Discount rate calculation 159
NPV, payback period and IRR of the project 161
Project cost 162
Break-even point 162
Key investment and financial indicators of the project 164
Chapter 10. RISK ANALYSIS 165
Organizational risks 165
HR risks 167
Pricing risks 168
Technological risks 169
Financial risks 170
Economic and market risks 172
Circumstances of force majeure (force majeure) 174
INVENTICA INFORMATION 176
LIST OF TABLES
Table 1. Cost of club cards in the first year
Table 2. Schedule of expenses of the investment stage (in thousand RUR)
Table 3. Loan repayment schedule (in thousand RUR)
Table 4. Main investment and financial indicators of the project
Table 5. Investment budget for registration of permits and approvals for the project, thousand RUR
Table 6. The main types of club cards in Moscow fitness centers
Table 7. Determination of the boundaries of price segments for fitness establishments in Moscow, 2018
Table 8. Change in the cost of annual club cards in the upper price segment, 2019/13
Table 9. Types of equipment for a children's gym of sports programs
Table 10. An example of the minimum set of children's fitness programs for different age categories
Table 11. List and area of the fitness center
Table 12. Cost (in the first year of operation of the fitness center) and the structure of sales of club cards
Table 13. The budget of marketing activities of the investment stage
Table 14. Dependence of the commission of the real estate agency on the monthly rent
Table 15. Expenses for designing a fitness center
Table 16. Expenses for engineering communications
Table 17. Gym equipment
Table 18. Equipment for the cardio room
Table 19. Equipment for aerobics hall
Table 20. Other furniture and equipment for the gym
Table 21. Furniture and equipment of the massage room
Table 22. Furniture and equipment of the bar
Table 23. Lobby furniture
Table 24. Furniture and equipment for changing rooms
Table 25. Sauna equipment
Table 26. Wardrobe furniture
Table 27. Cookware
Table 28. Tableware
Table 29. Costs of equipping the staff administration office
Table 30. Equipment for changing rooms and rest rooms
Table 31. Expenses for equipping utility rooms
Table 32. Costs of equipping latrines
Table 33. Production of plastic cards (investment stage)
Table 34. Expenses for automation of a fitness center
Table 35. Budget of expenses of the investment stage, thousand rubles. (with VAT)
Table 36. Forecasted annual inflation of operating stage costs
Table 37. Calculation of energy consumption
Table 38. Parameters for calculating water consumption
Table 39. Utilities by year, thousand rubles.
Table 40. Expenses for garbage disposal by years, thousand rubles.
Table 41. Staffing of the fitness center
Table 42. Forecasted annual inflation of wage costs
Table 43. Parameters for calculating operating costs for POS materials
Table 44. The budget for advertising and sales promotion, thousand rubles. (without VAT)
Table 45. Parameters for calculating the cost of manufacturing plastic cards
Table 46. Parameters for calculating costs per client
Table 47. Margin for food, drinks and additional assortment
Table 48. Operating budget of expenses, thousand rubles.
Table 49. Distribution of customers by types of club cards
Table 50. Distribution of regular customers by frequency of classes per week
Table 51. Parameters for calculating income from additional services
Table 52. Planned volumes of sales of products and services in kind for the period from March 2020 to February 2022
Table 53. Planned volumes of sales of products and services in physical terms, starting from March 2022
Table 54. Operating budget of income by years, thousand rubles.
Table 55. Inflation rates
Table 56. Rates of main taxes
Table 57. Rates of contributions to state extra-budgetary funds
Table 58. Forecast of changes in marginal wages used in calculating the amount of insurance payments for the period 2020-2025, thousand rubles.
Table 59. Profit and loss statement (in thousand RUR)
Table 60. Statement of cash flows (in thousand RUR)
Table 61. Balance sheet, thousand RUR (at the end of the year)
Table 62. Budget of tax payments (in thousand rubles)
Table 63. Indicators of profitability
Table 64. Initial data for calculating the cost of equity
Table 65. Calculation of WACC
Table 66. NPV calculation
Table 67. Calculation of NPV + TV
Table 68. Main investment and financial indicators of the project
Table 69. Change in key indicators with an increase in the investment stage by 1 month
Table 70. Changes in key indicators in case of non-observance of sanitary-epidemiological and fire conditions of the fitness center
Table 71. Change in key indicators with a decrease in the cost of services by 1%
Table 72. Change in key indicators when the investment budget is exceeded by 1%
Table 73. Change in key indicators with a decrease in the planned sales volume
LIST OF CHARTS
Chart 1. Volume of the Russian market of fitness services (billion rubles), 2010-2018E
Chart 2. Comparison of key indicators of development of the Russian and foreign markets of fitness services, 2018
Chart 3. Relationship between the level of general physical activity and the proportion of residents involved in fitness clubs, 2015
Graph 4. Dependence between GDP and the share of residents working in fitness clubs, 2015
Schedule 5. Dynamics of the number of fitness clubs operating in the Russian market (pcs.), 2006-2017
Graph 6. Time that Muscovites would like to spend on expensive to a fitness center, 2016
Graph 7. Change in the share of price segments in the Moscow fitness market, 2011, 2013, 2019
Schedule 8. Cost of annual membership in Moscow fitness establishments of various price segments (thousand RUR), 2019
Schedule 9. Cost of personal training in Moscow FC of different price segments, 2013
Graph 10. Average area of fitness facilities in Moscow in various price segments, 2019
Chart 11. Average area of gyms in fitness centers in Moscow in various price segments, 2019
Chart 12. Average number of gyms for group programs in fitness centers in Moscow by price segment, 2019
Chart 13. Seasonality of fitness services
Chart 14. Dynamics of sales in the first months before and after the opening of the fitness center (as a percentage of the planned level)
Schedule 15. The size of the discount for the purchase of an annual club card at the investment stage of the project
Schedule 16. Income, expenses and net profit for the project
Schedule 17. Net profit for the project on an accrual basis
Figure 18. Cumulative cash flow and NPV
Chart 19. Sensitivity of NPV to changes in sales volume
Chart 20. Sensitivity of net profit to changes in sales volume
LIST OF DIAGRAMS
Chart 1. Reaction of consumers of fitness services to the crisis in the economy, 2018
Chart 2. Engagement of Russians in sports, 2018
Diagram 3. Places of sports for Russians, 2018
Diagram 4. The structure of cardholders of fitness clubs by constituent entities of the Russian Federation, beginning. Oct 2018
Chart 5. Regional structure of the fitness market, 2018
Chart 6. Age structure of consumers of fitness services
Diagram 7. Structure of visitors to group classes by gender
Diagram 8. Frequency of use of the fitness center mobile application
Chart 9. Price segmentation of Moscow fitness clubs, 2019
Chart 10. Share of fitness establishments operating 24/7, by type of establishment, 2019
Diagram 11. Segmentation of Moscow fitness centers by the number of exercise equipment in the gym
Diagram 12. The prevalence of pool equipment in fitness clubs in Moscow, depending on the price segment, 2019
Chart 13. The share of fitness centers equipped with certain aqua facilities, depending on the price segment, 2019
Diagram 14. Distribution of fitness centers in Moscow by the availability of a solarium, depending on the price positioning of the club, 2019
Diagram 15. Distribution of fitness centers in Moscow by the availability of a massage room depending on the price positioning of the club, 2019
Diagram 16. Distribution of fitness centers in Moscow by the availability of a beauty salon, depending on the price positioning of the club, 2019
Chart 17. Comparison of the average number of types of saunas and baths in thermal complexes at fitness centers of different price segments, 2019
Chart 18. Share of fitness centers equipped with different zones for children, depending on the price segment, 2019
Chart 19. Distribution of fitness centers in Moscow by the availability of sports programs for children, depending on the price positioning of the club, 2019
Diagram 20. Distribution of fitness centers in Moscow by the availability of the TRX hall depending on the price positioning of the club, 2019
Diagram 21. Distribution of fitness centers in Moscow by the availability of a hall for crossfit training, depending on the price positioning of the club, 2019
Chart 22. Distribution of fitness centers in Moscow by the availability of a professional hall for pilates depending on the price positioning of the club, 2019
Diagram 23. Distribution of fitness centers in Moscow by the availability of a hall for cycle, depending on the price positioning of the club, 2019
Diagram 24. Structure of investment costs
Diagram 25. Structure of operating expenses
LIST OF FIGURES
Figure 1. The proportion of visitors to the fitness center at different time intervals
Figure 2. Popularity of different types of activities
Figure 3. The popularity of different types of registration for group classes
Figure 4. Territorial distribution of fitness establishments by districts of Moscow, 2016
Figure 5. Structure of transition to another segment of fitness centers of the upper price segment, 2019/13
Figure 6. An example of the interior of the new Dr.Loder club in the upper segment
Figure 7. Investment stage schedule
