Business plan development

Submitted in partial fulfillment of the requirement of the degree of Master of Business Administration

Business Category:

Service

Business Plan:

Opening a Fitness studio

Developed by:
 Business plan

Business category

“CALCUTTA FITNESS STUDIO is located in Baghajatin south. The facility is quickly accessible to the potential members.
With a large workshop room, men and women’s dressing rooms.

CALCUTTA FITNES STUDIO offers plenty of floor space for multiple classes being conducted simultaneously. In
addition, parking is not a problem. Center is within easy to reach from metro station bus stop and local railway
station.

Reasons to choose

The basic importance of life is the health of our body. It is commonly said that ‘Health isn’t everything, but without
health everything is nothing’. In order to persevere in good health, there are physical exercises, relaxation, breathing
exercises etc. in this fitness studio we provide yoga and zumba classes also.

1. Yoga is an ancient discipline that explores, develops, and integrates the body, mind, and spirit.
2.It 's fun. The more you enjoy your exercise routine, the more likely you are to stick with it. Great for
weight loss. Tones your entire body. Boosts your heart health. Helps you de-stress. Improves coordination.
Makes you happy.

3.This ancient system of self-care brings vitality, health, deep relaxation, and peace of mind.

Yet the health benefits are very real. Yes, yoga Zumbz and gym can increase flexibility, improve balance, and
decrease cholesterol. one of the most important benefits of any yoga routine isn't physical — it's the quieting of
the mind. People will more likely to join yoga classes to get a better life.

Competition

Yoga is a growing trend.  It was popular .now small gyms are offering yoga activities. currently there is no relatively
new entrant in this local area.

● service offers
 As per offering service is concern those local gym is big competition as they are offering both gym and yoga
activity.

● Price points
The key to competition within the fitness studio business is the quality of the instructor.
Calcutta fitness studio comes with certified trainers. So in this case people will more attract to it’s facilities.

Market analysis

We believe that a fitness center can be very attractive to our customers if we create a program that fits the time
constraints of their jobs. Our studio is located in a good place. Easy to reach from anywhere. We plan to offer our
members a program that will allow them to use their lunch hours to attend workshop.

Current market size

local people from different age group and different profession. As there will be different time slots for
working, non working and old people so it is expected that they will join.
Focus will be mainly on two different segments according to their age group.

● Middle age people

Center's selling point:  The session lowers stress. Can be attended with workmates as group activity. 
Health/Lifestyle Issues: Active individuals that are focused on healthy food and dieting. 
● Old age people
Center's selling point: The session help to deal with various health issue.
Health/Lifestyle Issues: aged individuals dealing with various health problems.

A. Growth potential
It has a huge potential to grow in market as people are more health conscious now a days.

B. Opportunity of new markets

As per requirements branches may open soon. depending upon the number of members willing to join
fitness center as well as awareness being spread over time .

Goals

Short term basis

The mission of Calcutta fitness studio is to give the student, whether a beginner or advanced a place to practice yoga
zumba and do their work out . It is the intention to keep teaching of yoga zumbz and provide workout trainers as
close to the way we have been taught as possible. It is incumbent for the teacher to always act responsibly and with
 the student's interest in mind. No matter what the learning must be real and members must get benefits out of this
practice.

Long term basis

● Acquire 50 customers by the end of the first year of operation.

Increase customer base by 25% by the end of the second year of operation .Increase sales by 15% by the end of
the second year of operation.

The product – service

⮚ Yoga is an introductory class for students who are new to Yoga. This class focuses on poses to stretch and
strengthen the legs, back, and shoulders. Emphasis is given to the basic alignment of the standing poses.

⮚ Zumba It will offer a balance of strength, flexibility, and endurance to challenge the fitness enthusiast. The
course will begin with instruction on the alignment of the poses and move toward linking all the poses
together in a continuous flow by the end of the session.

Production plan
Equipment required
● 1. Machine-The chest press machine, The chest fly machine ,Shoulder press machine, Cable row machine , Biceps
curl bench, Triceps extension bar, The leg press machine, The leg extension machine
2. Workshop equipment - belts, mats.
3. Yoga training aides – instructional manual, video tapes, inspirational books.
4. Medication cushions.
5. Lighting system that allows for dimming.
6. Effective sound system.
7. Blocks.
8. Temperature control, fans.
9. AC
10. Chairs.
 11. Strong flooring.
12.Chime, bells, or gong

Marketing plans

Pricing
Pricing will be done on the basis of either membership plan that is yearly and half yearly or monthly basis for each
member.

▪ Monthly – Rs.500
▪ Half yearly membership – Rs.2500
▪ Yearly membership - Rs.5000

Promotional activity
1. Offer unique classes: There are some unique yoga like “CAT YOGA” or “GLOW YOGA” which are not practiced in
general. So this offer is going to create little difference.
2. Host exciting events: Attracting new members can be done by hosting public events in locality.
3. Connect with social media: Social media is a powerful marketing tool. not only it will help to spread awareness and
publicize yoga class’s name but it’s a fun way to keep in touch with members.
4. Support a good cause: CALCUTTA FITNESS STUDIO is powerful and positive FITNESS CENTER with a good cause
which giving back to the community. This initiative is shedding light on an important issue of the society. And by
offering a free annual meditation session for the community it will attract more people into this.
5. Create a rewards program: this is something can help studio flourish. Members will want to collect points in order
to redeem them later. This way they are more likely to become repeat customers in order to increase their points
bank. They will also feel like they are getting more value from studio and this will keep them eager for more.
6. Offer a loyalty program: people are more likely to trust and engage with a brand or a business that’s
recommended to them by a friend or by someone known. Word of mouth from existing customers can be game-
changing and one of the best ways of attracting.
7. launch a search engine optimized website: Customers expect a brand to provide relevant online content and
information on a digital platform

Organizational plan
CALCUTTA FITNESS STUDIO is owned by Debojyoti Ghosal and Raj Roy. Profit sharing ratio would be 50:50 as
well as investment.
Financials
a. capital requirement
The start-up expenses for the CALCUTTA FITNESS STUDIO are focused primarily on workshop setup and
equipment.

Start up requirements
Legal 5,000
Stationery 2,000
Brochures 1,000
Rent 5,000(1 month)
Security deposit 16,000
Equipments 10,000
Trainer appointment 3,000
 Start up assets
Cash requirement 30,000
Start-up inventory -
Other current assets -
Long-term assets 10,000
total 40,000

Financial Support

(1) Personal:
Cash asset of Rs.30000 by two equal owners Rs.15000 each
(2) Financial loan from father:
Cash loan of Rs. 20000

Income estimated first 3 years

Sales forecast:

Year 1 Year 2 Year3

Yoga instruction Total member 30 Expecting 15% Expecting 20%
monthly=2,40,00 increase from year 1 increase from year 1
(20*1000*12)
Half yearly=5,50,000
(5*5500*2)
Yearly= 55,000
(5*11000)
Total by the end of the year
3,50,000

● The only income source is yoga membership plan. So sales forecast basis on how many members are joining
classes.
● It is expected that over 2nd and 3rd year members will increase by 15% and 20%.

Expense estimate first 3 years

 Expense forecast:

Year 1 Year 2 Year 3

Fixed expenses 30,000 300 (depreciation) 300(depreciation)
Variable expenses 97,500 80,000 80,000
Misc. expenses 5,000 5,500 5,300

● Fixed expenses including equipments and stationeries etc which are one time expense. Over years
depreciation will be calculated @10%.
● Variable expenses are those which will change over period of time, expenses like electricity bill and trainer
fees etc.
● All other type of expenses comes under misc. expenses.

Risk assessment

1. Good business practice: besides having lots of enthusiasm, inspiration and genuine intention of offering service to
the community, if this is not harnessed by an understanding and application of good business practice, things can go
pear-shaped pretty fast.

2. The venue: According to venue size costs are bit high but in the initial stage if there is few members then bearing
the cost would be a difficult job.

3. cash-outflow verses cash-inflow: Fitness studio may not be a booming financial success right from the beginning. So
factor in the possibility that it may make a loss until then studio becomes more established. Awareness of all costs,
both hidden and unhidden is required. There is certainty of income initially so this is risk factor.

4. Maintaining and expanding the member base: Maintaining and expanding the member base is what attract them
towards the studio. What did the studio have that inspire them to stay or for new joiner. So keeping all these things in
mind it is really challenging to come up every time with new exciting ideas or sometimes to stay with the basic which
create attraction.

5. Trainee problem: The relationship between the trainee and the members are the key factor. So a lot of it depends
on the behavior of the trainee. Also after appointing some with proper certification if he is not enough professional
then this could be stand out as a big problem. Finding someone new certainly is not that easy.
Business impact:

All those above mentioned risk factors can impact the business format in several ways. But every risk factor will have
a backup plan that can help to get back in the market.

Like it is very important to come with new marketing ideas to attract new member, same old school ideas won’t help
to grow business and compete with others.

Initially for first few months there will no such profit. This loss need to carry forward.

Risk factors are huge with the trainee issues so impact of this to the business is also not the less.

Conclusion:

The key factor for opening fitness center is to make people understand how it is helpful for their mind and as well as
their body. If there will be enough data to make people believe about the wellness of zumba, yoga and other work
out. some events for free and some proper advertisement which can make people aware of the class will help the
business to grow.

Calcuta fitness studio is going to open with a good cause. Initially it will more of a like social awareness program
rather than profit making organization. Gradually by time with the help of popularity it will flourish.