This business plan is prepared to provide details of the proposed business Generational Health and Fitness (GHF) which will operate in the fitness industry.
GHF will operate as an indoor cycling program provider to the local community. GHF will partner with the City of Seattle to operate out of Seattle Parks Recreation Centers. The objective of GHF is to increase fitness and health awareness and offer indoor cycling classes to individuals based on three different age groups including teenagers, adults, and older adults.
There are several companies offering similar indoor cycling programs in Seattle. It implies that there is intense competition in the market. The company will provide indoor cycling programs at a low price, which will be supervised by professional and trained instructors. Moreover, the company will focus on providing classes to teenagers and young adults.
The primary target customers are young individuals as GHF aims to provide an environment that will inspire them to have a love for exercise at an early age. GHF will also develop a mobile application that would allow members to record and monitor their progress in the program. This application will be available free of cost to all members.
The marketing plan will primarily focus on building partnerships with local businesses and organizations. GHF will distribute flyers and conduct open-day events to offer discounted memberships and free-trial classes. All these activities will be managed by the company’s sales and marketing team.
GHF will conduct its classes at Montlake Community Center (Seattle Parks and Recreation) on a rental basis. It will acquire 30 indoor Keiser M3 cycling bikes for adults, 30 indoor Keiser M3 cycling bikes for kids, bike mats, furniture, and equipment to conduct its operations. GHF will conduct eight shifts with two classes for different age groups in each shift.
GHF is expected to generate a profit in the second year after incurring a financial loss in the first year. It will require an initial fund of approximately $143,000. Moreover, the exit strategy is that if the company incurs a financial loss for consecutive three years, then it will cease its operations and sell the equipment to settle all financial obligations.