7/24 Fitness Centre

7/24Fitness Centre

BusinessPlan

Operationsand Finances

Studentnumber

Spaceand Equipment

Afitness center requires many equipment and fittings that need a lotof money. However, the highest challenge is getting a suitable roomwhere the facility will be located. I do not have any relevantequipment except a table and some chairs. I will have to purchasemost of the required equipment. The house that will be used belongsto my dad. I have his permission to use it for free for three yearsas my business picks up. Therefore, the rent or lease fees will notbe included in my reports for the first three years. In case thebusiness picks up well and result in more profit, I will buy the roomfrom my father at the end of the third year. The following equipmentand furniture will be required for the operation of 7/24 FitnessCentre.

Anoperations office will need:

  1. A computer (Hp ProBook – $499.00)

  2. Hp Pavilion computer ($879.98)

  3. Hp all-in-one Printer ($99.99)

  4. Office phone (Panasonic Cordless Phone, 2 Handsets – $64.51)

  5. Office chair (Mid-Back Mesh Chair – $64.99)

  6. Front Desk (Altra Dakota L-Shaped Desk with Bookshelves – $82.38)

  7. Toiletries and cleaning supplies ($100 per month) (www.quill.com)

Thefitness area will need

  1. Hammer Strength Plate Loaded &amp MTS Equipment Package containing 65 Pieces (Pre-Owned – $49,995.00) (www.progymsupply.com)

  2. 150 lb. Dumbbell Set ($298)

  3. CAP Barbell 1” Grip Plate, 25 lb. ($30)

  4. CAP Barbell Dumbbell Handle ($8.56)

  5. Gym Bench ($88.99)

  6. Body Analyzer Scale ($39.98) (www.bestbuy.ca)

  7. Treadmill ($449.99)

  8. Blood Pressure Monitor ($39.99)

  9. Recumbent bike ($259.99) (www.bestbuy.ca.)

  10. Floor mat ($39.99)

  11. TV flat screen (Toshiba LED TV- $499

  12. Bose SoundTouch 10 Wireless Speaker ($249.99)

  13. CCTV cameras (Night Owl Wired 8 Channel 1TB Security System with 4 1080p Bullet Cameras – $399.99) 2 Cameras indoors.

Theoutdoor requirements include:

  1. Security entry system (ID Scanner – $799.99) (www.ebay.com)

  2. CCTV cameras (2 CCTV Cameras outdoors)

Otherequipment that we hope to have, but will only be added once thebusiness is established include:

  1. Pool table

  2. Equipment for indoor basketball and volleyball courts

FloorPlan

Thefloor plan of the fitness center is inspired by a 2014 design layoutby Eric Mion at Whole Building Design Guide (WBDG) for FitnessCenters.There will be one main entry, a loading entrance and an exit to thepool. The internal layouts are as shown in Figure 1. The customerswill be received at the reception where they will give their details,have a physical examination and make the payments. It is at thereception where they will also be provided with a membership cardafter signing the insurance policy. After a customer has become amember and their ID/Passports have been entered into the system, thereception is where their ID/Passport will be scanned to ensure thatonly members enter the fitness space. In case there will be anyproblems with registration or a member may have any health problems,the issue will be submitted to the support room, which is adjacent tothe reception. The fitness space will be located next to thereception. This is where all fitness activities are to be performed.There will be an admin space. This is where all administrationactivities will take place. Any supplies will arrive at the Supportarea. They will be transferred to the gym store which will act as thestore room. In case there are any repairs needed, they will be donein the support area. The locker room will be where the members keeptheir belongings like their training gear. It is also where they willchange clothes at the start of each session. Within the locker room,there will be showers and lavatories. There will be a room forclasses and group exercises next to the locker room. This will be aspace where training will be offered to the members and given groupexercises to perform. In the case there will be any in-housecompetitions, it will take place in the structured activities room.The gymnasium for indoor games will be located near the mainentrance. This is where all fitness games will be performed. In thecase of any public challenges like fashion shows, the games will beheld in the gymnasium. At the end of the gymnasium will be a gymstorage area where all the equipment and materials used are to bestored.

Theroom that will house the fitness center is in a good condition andwill not need many renovations. However, some partitions will have tobe demolished and new partitions put up. The demolishing will cost$400 and the fittings another $400. The partitions will be replacedwith VP6 Rolling Partition Walls costing $139.00 for every 10 feet.We will need 80 feet. The restrooms and the bathrooms will use FP63-Panel Privacy Screens which cost $199.00. We will use four of them,two for the restrooms and two for the bathrooms.

Figure1: Floor layout for the fitness center

Logistics

7/24Fitness Center will require a mechanism for coming up withinventories. My personal car will be used for supplies that are to befetched from the suppliers. Most of the supplies will, however, betransported to the business location by the suppliers. Thetransportation is offered free of charge as an after-sale service formost existing fitness centers. Office supplies like stationery,refreshments, cleaning supplies and toiletries will be purchased atthe supermarket where they are cheaper. I will collect them andtransport them in my car. In each trip to the supermarket, I estimatethat I will be using $80 worth of gas. The supplies will be stored inthe gym store. Telephone costs for making orders will be $10 everyweek.

Tohandle all transactions and tax payments, we will hire an accountant,who will fill the taxes and transactions in the business’ accounts.The accountant will be paid $13 per hour.

Methodsand Procedures

Themajor registration type will be on the spot where customers visit theoffice and register. Customers will also be given the opportunity toregister on the 7/24 Fitness Center’s social media pages which willbe managed on a 24-hour basis. Registrations through email will alsobe accepted. However, these customers will be asked to visit thecenter in person to finalize their membership registrations. Uponarrival at the center, the customer will be requested to producetheir ID/Passport. Those who have medical issues will be asked toproduce their medical certificates. They undergo physicalexaminations before their ID/Passport are entered into the system ofthe center. After this, the customer has to specify the method bywhich they intend to make the payment and whether they want to bepremium or regular members. After making the payment, they will begiven official receipts and given membership cards. With a membershipcard, the customer will be considered a member and will join othersin the fitness center to start training or workouts. At the end ofthe session, the customer will visit the support room to monitor hisor her progress. In case the customer has any complaints or feedback,he or she will explain it to the support staff on duty. In case theprogress is good, the customer can move to the next level oftraining. If there is poor progress, the customer will be asked torepeat the first training. Members with good progress willparticipate in contests and may choose to continue training or exitthe system.

Anycomplaints or feedback will be recorded by the support staff andsubmitted to the admin for review and appropriate action.

Systems

Theaccounts of the fitness center will be handled by the accountant, whowill prepare accounts records, balance sheets, income statements andtrial balances. However, at the start of the business, thereceptionist will handle these duties as a means of minimizingoverhead costs. Microsoft Office Excel will be used to handle theseactivities. Schedules will be managed by a calendar manager softwareon the computer, which comes free with the Windows Operating System.Client records will be stored in Microsoft Office Excel by theaccountant in coordination with the receptionist. The accountantwill also crosscheck payrolls and admin paperwork. Limited wasteswill be produced. Especially paper wastes since most of the data willbe stored electronically.

Toensure that the fitness center is not congested, the receptionistwill be responsible for monitoring registrations. He or she will keeptrack of the issuing of membership cards to ensure that the maximumnumber of members in any given day is 30 individuals. Any customerwho will register when the center is at full capacity will be askedto wait for a day when the center has a free slot. Microsoft OfficeHome &amp Business 2016 will be used in handling all accounts andrecords, which will cost $229.99 (products.office.com). The employeeswill include the accountant, the receptionist, the support staff andme. Our details will be easy to handle using Excel, which comes withthe Microsoft Office package. The software will be installed on thetwo computers. The desktop will be used by the receptionist while thelaptop will be used by the accountant and the manager. Payments willbe done in cash every end-month.

Organization

Inthe first year of operation, only three employees will be needed inthe company. The receptionist will also handle accounts. I will bethe manager and the trainer. The support staff will also act as anassistant trainer, and also handle the cleaning and maintenance ofthe facility. The three positions are as listed below.

Position

Nature

Salary

Duties

Manager/Owner

Full time

$15,000 (Year one)

$20,000 (Year two)

$30,000 (Year 3.)

Handling payroll, marketing, compliance, and policy implementation, responding to customer complaints, banking, managing other employees, handling supplies and inventories, and trainer

Receptionist

Full time

$10,000 (Year 1)

$15,000 (Year 2)

$20, 000 (Year 3…)

Monitoring online membership applications, receiving manual applications and processing them, carrying out physical examination, recording customer information, printing membership cards, handling accounts

Support staff

Full time

$15,000

Monitoring customer progress, assistant trainer, receiving customer complaints and feedback, maintenance and repairs, and cleaning

Accountant

Part-time

$13 (per hour worked)

Editing and verifying accounts. Correcting any errors with accounts.

Table1: Job descriptions

Thefollowing table presents the monthly payroll for payments made everytwo weeks.

Monthly Payroll

August 2016

&nbsp

&nbsp

&nbsp

Employee

Pay Period

Hours

Wage

Gross Pay

Manager

13-Aug

40

$15.63

$625.20

&nbsp

27-Aug

40

$15.63

$625.20

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Receptionist

13-Aug

40

$10.42

$416.80

&nbsp

27-Aug

40

$10.42

$416.80

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Support staff

13-Aug

40

$15.63

$625.20

&nbsp

27-Aug

40

$15.63

$625.20

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Accountant

15-Aug

12

$13.00

$156.00

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

&nbsp

Totals

&nbsp

$96.36

$3,490.40

Table2: Payroll details

Regulations

7/24will open a business bank account for the sake of liability and theissues that come with it. The process of account opening will take up$110. The business will be registered under the Network of Gym Ownersfor a monthly fee of $12. The network will help in promoting thefitness center and support in marketing. It will also handle themanagement and legal issues. For credibility, the facility will beregistered with the Better Business Bureau (BBB) so that it can be anaccredited business (BBB, 2016). This will help to attract theconfidence of customers. It will cost $350 every year. The businesswill have to be insured with Mitchell and Whale Insurance BrokersLtd. We will take the General Liability Insurance which will cost us$5000 per year. The business will also be paying an income tax of10.5% of all our income per year (taxtips.ca).

Finances

Ihave $90,000 in savings and expect to get $10,000 more fromwell-wishers and family members. This will act as the capital for thebusiness. There will be no bank loan or any other form of loanoutsourced unless the first month of operation proves fruitless andbrings in poor income. The table below presents the expected 7/24financial records for the first month of operation. As reflected inTable 3, I will be left with roughly $35,742 after the first month.This is sufficient enough to keep the business stable for the nexttwo months as the business struggles to rise and become competitive.The amount will also be used to fund marketing initiatives gearedtowards attracting more customers.

Item

Dr.

Cr.

Capital

&nbsp

$100,000

Fixed Assets

&nbsp

&nbsp

Computer

$499.00

&nbsp

Desktop

$879.98

&nbsp

Printer

$99.99

&nbsp

Office Phone

$64.51

&nbsp

Front Desk

$82.38

&nbsp

MTS Equipment Package

$49,995.00

&nbsp

Dumbbell Set

$298.00

&nbsp

CAP Barbell Grip Plate (20pcs)

$600.00

&nbsp

CAP Barbell Dumbbell Handle (5 pcs)

$42.80

&nbsp

Gym bench (2 pcs)

$177.98

&nbsp

Body Analyzer Scale

$39.98

&nbsp

Treadmill

$449.99

&nbsp

Blood pressure monitor

$39.99

&nbsp

Recumbent bikes (5 pcs)

$1,299.95

&nbsp

Floor mat (20pcs)

$799.80

&nbsp

TV flat screen

$499.00

&nbsp

Wireless Speakers

$249.99

&nbsp

CCTV cameras

$399.99

&nbsp

ID scanner

$799.99

&nbsp

Rolling Partition Walls

$1,112.00

&nbsp

Privacy Screens

$796.00

&nbsp

Microsoft Office

$229.99

&nbsp

Total fixed assets

$59,456.31

&nbsp

Expenses

&nbsp

&nbsp

Total salary

$3,490.40

&nbsp

Telephone costs

$40.00

&nbsp

Demolishing costs

$400.00

&nbsp

Fitting costs

$400.00

&nbsp

Gas

$320.00

&nbsp

Accounts opening

$110.00

&nbsp

Monthly fee for network membership

$12.00

&nbsp

Business Bureau registration

$29.17

&nbsp

Total Expenses

$4,801.57

&nbsp

Grand Totals

$64,257.88

$100,000

Bal.

$35,742.12

&nbsp

Table3: 7/24 first month financial records

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ProGym Supply | Global Leader in Remanufactured Gym Equipment.(2016). Progymsupply.com.Retrieved 4 July 2016, from http://www.progymsupply.com

RoomDividers, Portable Partitions, and more | Versare.com.(2016). Versare.Retrieved 4 July 2016, from http://www.versare.com

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Appendix