Business Plan Outline
Laura Davis
Cohort 16
Table of Contents
I. Executive Summary…………………..………………………………3
II. Company Description…………………………..…………………….4
III. Industry Analysis……………………………………….……………..6
IV. Target Market………………………………………………….……...9
V. Competition………………………………………………………….11
VI. Risk Assessment and Strategic Position………………………………13
VII. Marketing Strategy……………………………………………………14
VIII. Operations…………………….….…………………………………. 16
IX. Organization………………………………………………………….18
X. Development and Exit Plans……………………………………….....20
XI. Financials……………………………………………………………..21
XII. Appendix……………………………………………………………..25
I. Executive Summary
Dynamic
Consulting is a sole proprietorship operated by Laura Anne Davis that serves niche
fitness businesses in the San Francisco Bay Area. Dynamic Consulting provides
services in the areas of wellness programming, marketing and operations. Dynamic
Consulting helps fitness facilities and other related fitness businesses better
meet the needs of their clientele and improve overall efficiency.
Dynamic Consulting devotes itself to developing fitness
businesses for enhancing the wellness of their clientele.
Dynamic
Consulting operates in the health and fitness industry, a quickly expanding
segment of the sports and leisure industry that is full of opportunities for
Dynamic Consulting. In the Bay Area alone, there are hundreds of potential
clients for Dynamic Consulting and the demographics of the area support growth
in the industry.
Dynamic
Consulting differentiates itself from the competition with genuine concern for
clients and an individualized approach to each client business. The product at
Dynamic Consulting is of high quality and through consultation, Dynamic
Consulting develops partnerships with its client businesses to help them
achieve their goals. Research is thorough, relevant and reliable, promising
returns for client businesses through improved business practices.
The services at
Dynamic Consulting are backed by simple yet effective marketing strategies to
attract and retain clients. Dynamic Consulting reaches out to potential clients
through varying marketing tactics and keeps a presence on the Internet at www.dynamicfitnessbusiness.com.
Dynamic Consulting has plans for growing from a part time venture into a full
time business through consistent customer service and continued research and
development.
As a sole
proprietorship, all operations at Dynamic Consulting are carried out from the
home office of L. Davis, but supported by a talented and qualified advisory
committee and supplemented by consultants as needed. Financials at Dynamic
Consulting are kept simple, but adequately support the business and promise a
bright future for Dynamic Consulting.
II. Company Description
Dynamic
Consulting is a sole proprietorship under the ownership of Laura Anne Davis in
the
Product:
Dynamic
Consulting serves fitness businesses based on the concept that the future of
the health and fitness industry rests in the broader concept of wellness. From
the unique perspective of wellness, Dynamic Consulting helps fitness facilities
and other related fitness businesses to operate more efficiently through assessing
the operations and services of the businesses as well as the needs of their
clientele. Dynamic Consulting aids fitness businesses in streamlining their
operations and improving their performances while providing their clientele
with the most appropriate options for improving their overall wellness and their
satisfaction with the fitness businesses.
The consulting
services provided by Dynamic Consulting guide fitness businesses in three
areas: wellness programming, marketing and operations. Based on the clientele
and the capacity of each individual business, Dynamic Consulting helps fitness
businesses to develop the best possible programming for serving clientele while
remaining financially stable. Considering the goals and the mission of each of
each individual business, the competition it faces and the market in which it operates,
Dynamic Consulting aids fitness businesses in designing the most effective
marketing campaigns. Balancing the goals and the mission of each individual
business with the capacity of the business and the financial stability of the
business, Dynamic Consulting collaborates with fitness businesses to determine
the most efficient operating practices.
To attain the
information needed to most successfully counsel fitness businesses, Dynamic
Consulting compiles data from a wide variety of resources. Observations of, interviews
with and questionnaires for the clientele and the employees of fitness
businesses are used as a means to gather qualitative data. Reviewing current
marketing material of the fitness business and its competitors adds to the
qualitative data. Financial statements and operations plans are considered. Target
market and industry research is added from U.S. Census data as well as
publications from American Sports Data and the Lifestyle Market Analyst.
Information released from health and fitness authorities, such as ACSM, IHRSA,
IDEA and AFAA is also considered.
Dynamic
Consulting offers many options for fitness businesses dedicated to improving
their businesses. Fitness businesses may choose to render the services of
Dynamic Consulting in any one, two or all three of the areas that Dynamic
Consulting covers: wellness programming, marketing and operations. Fitness
businesses may also choose to obtain the services of Dynamic Consulting for any
length of time, be it a one-time consultation for only a day or more in depth
on-going services spanning the years. Clients can also choose to pay fees based
on an hourly rate, a project fee or a retainer fee.
With any commission
for the services of Dynamic Consulting, the client business receives a printed
document with the findings of the research done for the business and the
recommendations for improving the business. Client businesses also have the
option to extend the services they commissioned and receive continued support from
Dynamic Consulting at any time for any amount of time. Once businesses have
worked with Dynamic Consulting, they will receive a periodic newsletter with
updates about the fitness industry to keep them informed.
Dynamic Consulting devotes itself to developing fitness
businesses for enhancing the wellness of their clientele.
III. Industry Analysis
Dynamic
Consulting functions within the health and fitness industry, a part of the
larger sports and leisure industry. The industry is far reaching, but still
growing and trying to find a financial foothold.
Fitness Facilities
Data published by
the International Health, Racquet and Sportsclub Association (IHRSA) states
that nearly 18,000 fitness facilities existed in January of 2002, and the
number has been steadily rising every year. In its publications, American
Sports Data divides the fitness facility industry into three sectors:
commercial clubs, representing 46% of facilities; not-for-profit facilities,
representing 39% of facilities; and miscellaneous for-profit clubs, representing
14% of facilities. (See Appendix)
According to
IHRSA, the most common programs in fitness facilities are personal training,
fitness evaluation, group exercise and strength training. The most space is
allotted to free weights, cardiovascular equipment and group exercise studios. The
areas of the facilities that are the most quickly expanding are the same. According
to the Health Club Trend Report published by American Sports Data, the five
most commonly used pieces of fitness facility equipment in order of use are
resistance machines, treadmills, stationary bikes, stair-climbers and free
weights. (See Appendix)
Participation
Membership
statistics published by American Sports Data suggest that membership durations
at fitness facilities demonstrate an industry sensitive to trends: only about
one-quarter of fitness facility members have maintained their current
memberships for more than six years, another quarter for between three and five
years and another quarter for less than a year. The membership, however, is
represented largely by the highest household income bracket, more than $75,000
annually. (See Appendix)
The research done
by American Sports Data has also found some bad news for the fitness facility
industry, more than 60% of fitness participation does not take place in a
health club.
According to the
Lifestyle Market Analyst, however, people who engage in activities to improve
their health and in physical fitness and exercise also participate in other
activities such as reading and gardening, they concern themselves with their
nutrition, watch sports on television and own numerous high tech appliances.
Likewise, interests are the same for people who participate in specific
activities, such as running and jogging, walking for health and bicycling
frequently.
A 1998 study by
American Sports Data of sports participation found that popular activities
among the
Industry Trends
A number of
well-respected organizations research the effects of participation in physical
activity and the lack of physical activity. They also follow the trends in
physical activity and train fitness trainers and instructors to be effective
and safe. The
Reviewing the
information published by these organizations demonstrates support for the
concept of wellness, which encompasses more than just health and fitness. The
organizations report on traditional fitness activities, including strength
training, aerobics and cardiovascular exercise as well as other forms of
fitness, such as yoga, Pilates, interval training and sports participation. Other
topics important to the leading health and fitness organizations include nutrition,
weight loss, aging, injury prevention, body image, other health issues and even
issues such as worksite health promotion and the law enforcement of
industry-related regulations.
Without the
experts professing the importance of wellness, it is plain to see that health
and fitness have gone main-stream. Look at the magazine stand at any pharmacy
or grocery store and see a multitude of titles and headlines related to health
and fitness. Even the biggest celebrities, such as Madonna and Christy
Turlington, are talking about their fitness regimens. The health and fitness
industry is rapidly growing and showing no signs of slowing down as everyone
wants to take part in it.
Industry Financials
Although
participation is widespread, financially the industry does not seem to be
turning huge profits. Four publicly traded fitness companies demonstrate the
financial state of the industry.
- Bally Total Fitness Holding
Corporation (BFT) operates fitness facilities worldwide, and Bally stock
is traded on the New York Stock Exchange. As of
- The Sports Club Company (SCY)
operates high-end fitness facilities throughout the
- Cybex International (CYB) manufactures
and markets fitness equipment. As of
- The Nautilus Group, Inc. (NLS) also
manufactures and markets fitness equipment and is the most financially
impressive of the four. It is traded publicly on the New York Stock
Exchange at a price of $14.00 as of
Industry Peculiarities
Through experience
with a career in the health and fitness industry, it becomes evident that the
industry is somewhat sensitive to economic cycles because spending on fitness
facility memberships and equipment is considered leisure spending by many. The
industry also experiences seasonal ups and downs. Business is always best at
beginning of the year, it lessens during the summer and picks up again in
September. The industry is also impacted by technology in the form of new and
improved equipment offerings, which can be followed in the pages of the various
fitness industry trade publications, such as American Fitness, Club Industry,
and the many IDEA publications.
The health and
fitness industry is rapidly expanding although it cannot claim significant
financial stability, and fitness businesses are vying for a place among the
ranks of those businesses that can survive. The key to survival for most
fitness businesses will be in differentiating from the competition, which can
be achieved by keeping up with the trends in the industry, marketing
appropriately and operating with efficient business practices. While Dynamic
Consulting is among the businesses in the industry, it faces different types of
competition and approaches the industry with extensive background knowledge. Positioned
to make the most of the industry, Dynamic Consulting sees the industry as a
world of opportunity.
IV. Target Market
Dynamic
Consulting targets fitness facilities in the San Francisco Bay Area. The target
market for Dynamic Consulting therefore consists of the businesses, the patrons
for those businesses and potential new clientele for the businesses.
Fitness Facilities
Dynamic
Consulting targets fitness facilities in all three sectors of the fitness
industry as described by American Sports Data: commercial clubs, including both
multi-purpose and fitness only facilities; not-for-profit facilities ranging
from YMCA and JCC facilities to church, hospital and university affiliated
facilities as well as municipal, military and residential facilities; and
miscellaneous for-profit facilities, such as country clubs, corporate
facilities, hotel and resort or spa facilities and aerobics studios. The
primary market for Dynamic Consulting, however, is smaller niche businesses.
In comparison to the
rest of the country, the fitness industry in the
A recent study
conducted by Men’s Fitness magazine ranked cities from the fittest to the
fattest and backs up the information. It looked at the 50 largest cities based
on U.S. Census Bureau data and examined various aspects of life using data from
such organizations as the Centers for Disease Control, the Environmental
Protection Agency, the National Weather Service, the Places Rated Almanac and
the Yellow Pages. The study listed
Facility Members
In the American Sports
Data Study of Consumer Attitudes Toward Health Clubs and Physical Fitness, the average
satisfaction rating from health club members toward their fitness facilities
was only a 7.4 on a scale of 1-10. The statistics definitely suggest room for
improvement. Also based on American Sports Data information, the top three
lifestyles represented among health club members are “
According to the
demographic information published by the United States Census Bureau, nearly
two million households in the San Francisco Bay Area earn incomes of more than
$75,000 a year. Census data from 1999 on six counties in the Bay Area,
Census data also
reports that
Significance
Background information
on the target market for Dynamic Consulting supports the need for the services
of the business. With nearly 50% of the population in Santa Clara County
earning $75,000 annually and fitness facilities in the area receiving a grade
of only D- while the people in the area are on the “fit” list, a market exists
for the services of Dynamic Consulting. The research also supports the wide
reach of the target market area with demographics suggesting potential client
businesses in all six counties. Hundreds of fitness businesses, potential
clients for Dynamic Consulting, line the pages of the Yahoo! Yellow Pages for
V. Competition
In an industry
growing as quickly as the fitness industry, competition comes in many forms and
will continue to inspire Dynamic Consulting to distinguish itself. With a
unique competitive position in the industry, Dynamic Consulting enjoys a
positive perspective on the competition and its challenges.
Competition
Dynamic
Consulting competes for the fitness business owner’s precious dollar and
therefore, competition comes from various places:
- Other consultants, whether working
individually or in larger companies, compete directly for clients. Individual
consultants may offer services similar to that of Dynamic Consulting while
companies that employ many consultants can offer more varied and in-depth
services.
- Consultants of other sorts, such as
accountants and attorneys, who offer distinctly different services also
compete for clients, but more indirectly. If a fitness business owner with
a tight budget can afford to hire only limited council, all businesses
offering any such service become competitors with Dynamic Consulting.
- Dynamic Consulting may even receive
competition from fitness industry conferences, meetings and workshops as
well as industry publications and resources. Fitness business owners who look
for information elsewhere may not see the value in a second opinion on
their businesses and therefore turn to lectures and printed material.
- Updating or replacing fitness
equipment and making improvements on facilities may even become
competitors for Dynamic Consulting. When a fitness business owner must
decide where to spend limited funding to enhance the overall business,
competition may come from a variety of sources, human talent and
otherwise.
While Dynamic
Consulting competes with all of these things, the focus and the target market
differ for each consultant and the results vary by competitor. Dynamic
Consulting differentiates itself with a focus on wellness programming,
marketing and operations as well as targeting a market of small, local, niche
businesses in the fitness industry. Research on the competition reveals that
consultants offering services to fitness businesses do exist, but they are
spread throughout the country and their services range from focuses on sales to
maternity programming to communication skills to management development to
staff training and evaluation. Competing consulting businesses also generally
target larger facilities nationwide.
Barriers to Entry
Companies
providing services similar to that of Dynamic Consulting face two primary
barriers to entry that stem from the challenge of luring clients:
·
Without
significant expertise in any area of the fitness business, consultants find it
difficult to attain and retain clients. Expertise simply comes from experience
working in the industry and an education related to the area of expertise. If
clients can’t learn anything new and useful, they won’t hire the services of a
consultant.
·
Without
some sort of name recognition and a reputation to support it, consultants are
challenged to attract the attention of potential clients. Customer perceptions
about the product, its quality, benefits and costs, as well as perceptions
about the actual consultant and the relationship that may be formed with that
consultant, can stand in the way of a relationship ever being established.
As the fitness
industry grows and more individuals develop expertise in the field through
experience and education, competitors will continue to enter the market. Their
exact services will differ, but the competition for Dynamic Consulting will be
of the same mix that it is now. Dynamic Consulting will still receive
competition from similar businesses as well as very different council and
information that comes from other sources. Various options for improving the
physical assets of a business will also remain a threat as the equipment available
to fitness businesses becomes more diverse. The opportunity costs, the costs of
the next best alternative, will remain a deciding factor for fitness
businesses.
Competitive Position
The competitive
position of Dynamic Consulting extends from the current competition, the
barriers to entry and the future of the competition. Compared to the current
competition, Dynamic Consulting holds a place of its own because it
differentiates itself from those with which it competes in the focus of the
product, the target market and the location of the business. While larger
competing consulting firms have greater resources, they target widespread larger
facilities from different locations and offer different services. Not as many
individual consultants compete directly with Dynamic Consulting, but those that
do compliment Dynamic Consulting because of their different focuses. Dynamic
Consulting shares the industry with other consultants because of the
differentiation.
As far as
competition from other types of council, positioning is relative only to each
individual business and the return that the business needs from the investment.
The same can be implied for the improvement of physical assets for fitness
businesses. In terms of expertise, experience and education, Dynamic Consulting
lags behind the competition but makes up for it in the thoroughness and quality
of the product, as well as customer service for clients. Dynamic Consulting
also faces a challenge with name recognition and reputation, but marketing
efforts and happy clients are quickly changing customer perceptions. In the
future, Dynamic Consulting will be repositioned with its competitors more
solidly due to increased experience, expertise and name recognition.
VI. Risk Assessment and Strategic
Position
Assessing the
internal strengths and weaknesses of Dynamic Consulting in comparison to the
opportunities and threats of the industry provides a platform for examining the
strategic positioning of Dynamic Consulting.
SWOT Analysis
Dynamic
Consulting gets its strength from the sincerity behind which it operates.
Because of a genuine concern for the client, research is thorough and the
product of high quality and relevance for the client. Dynamic Consulting is
also a very well organized business with attention to detail and therefore
nothing ever slips through the cracks. Other positive aspects of the business
are customer service and an honest focus on each business individually. Dynamic
Consulting does not take a cookie cutter approach to its clients. While Dynamic
Consulting is knowledgeable on the topics about which it councils, the weaknesses
for the business is a relative lack of experience in consulting fitness
businesses.
In the fitness
industry overall, the opportunities overshadow the threats for Dynamic
Consulting. Hundreds of potential clients exist in the target market for
Dynamic Consulting and therefore the potential for great opportunities with the
businesses also exists. Additionally, the market is growing, and the
opportunities open to Dynamic Consulting are expanding. However, a weak economy
in general threatens the viability of many of the businesses in the target
market for Dynamic Consulting. Larger consulting companies also hinder the
possibilities for Dynamic Consulting because they have more resources to offer
the client.
Strategic Position
Dynamic
Consulting strategically positions itself as a partner for small, local, niche
fitness businesses, counseling from a perspective of genuine interest in each
business. The strengths for Dynamic Consulting also represent the strategic
position in that fitness businesses who employ the services build relationships
that foster growth for their businesses. Dynamic Consulting represents itself
as a leader in the area of relevant, reliable, critical research for fitness
businesses that keeps them in tune with their clientele and on top of the
industry trends and developments. Clients of Dynamic Consulting are the first
to know about changes in their market and relative opportunities from them.
Dynamic Consulting also positions itself as the best source for advice on
wellness programming, marketing and operations.
VII. Marketing Strategy
The marketing
strategy at Dynamic Consulting aims to create a need among fitness businesses
in the Bay Area and then present its services as the solution for filling it.
To create the need for consultation in the minds of fitness business owners,
marketing materials for Dynamic Consulting contain fitness industry and target
market statistics for the Bay Area that demonstrate the competition businesses face.
Through its marketing materials, Dynamic Consulting delivers its mission as the
message:
Dynamic Consulting devotes itself to developing fitness
businesses for enhancing the wellness of their clientele.
Dynamic
Consulting builds its brand through marketing techniques that establish it as a
responsible business with a genuine concern for the well being of both its
clients and their clientele. Sincere in the intent to provide individualized
consultation, Dynamic Consulting markets the thorough research and quality
solutions it provides as well as the high level of customer service and
convenience that clients receive when working with Dynamic Consulting. The
distinct service offered and the niche filled by Dynamic Consulting
differentiate it from the competitors and establish a distinct edge.
Through its
marketing efforts, Dynamic Consulting communicates the benefits of employing
its consulting services. In the aggressive health and fitness industry,
businesses need every competitive advantage that they can find. The services of
Dynamic Consulting give businesses an edge that is absolutely essential for
survival during rough economic times. By helping businesses identify their
target markets and keep pace with the trends in the industry, the services from
Dynamic Consulting are an investment that fitness businesses cannot afford to
overlook. The return resulting from improved business practices is
priceless.
Techniques
Dynamic
Consulting practices a variety of marketing techniques to deliver its message.
Tactics at Dynamic Consulting achieve two objectives: getting and keeping
clients. (See Appendix)
- After researching potential clients,
Dynamic Consulting uses a series of direct marketing tactics to reach
potential clients based on their unique businesses. A post card acts as
the initial introduction to Dynamic Consulting, and a letter including
information unique to the businesses follows. The letter is personally
signed by L. Davis and a Dynamic Consulting business card is included. After
the letter has been received, Dynamic Consulting makes a follow up phone
call to discuss the information and answer questions.
- In addition to direct marketing,
Dynamic Consulting maintains a website that acts as a primary information
center. The site includes information on the services offered as well as
logistical information and biographical information on L. Davis. Although
the website, at www.dynamicfitnessbusiness.com, is the main location for
company information, an information sheet is also available and mailed to
potential clients upon request. Along with business cards, the information
sheet is distributed at networking events, such as fitness industry
conferences and workshops.
- A public relations campaign works to secure
the inclusion of Dynamic Consulting in various fitness industry
publications as well as small business publications and Bay Area business
publications. Fitness industry trade publications also include Dynamic
Consulting in the classifieds listings on their websites and in their
publications. L. Davis represents Dynamic Consulting at industry trade
shows, conferences and workshops as both a presenter and an attendee,
discussing various topics from wellness programming to facility marketing
to business operations and managing a small business.
- Past Dynamic Consulting clients
receive a periodic newsletter that keeps Dynamic Consulting in the minds
of the fitness business owners. The newsletter includes fitness industry
information that effectively keeps businesses up-to-date on trends while
continuing to remind the businesses of their needs for Dynamic Consulting.
Past clients also receive follow up phone calls and post cards to maintain
communication while keeping Dynamic Consulting in mind.
VIII. Operations
Operations at
Dynamic Consulting are carried out by L. Davis. Dynamic Consulting operates
from the home office of L. Davis for day-to-day affairs and on site at fitness
businesses for the specific needs of consulting projects. Production of reports
generated for clients is done with the business computer of L. Davis and reports
are distributed in person by L. Davis to clients. Customer service and
communication is also handled by L. Davis on the business phone of Dynamic
Consulting, via email or in person with clients. Equipment and supplies for
Dynamic Consulting are purchased as needed from the local office supply store.
All matters requiring
technology are handled using small business and other software on the business computer
of L. Davis. Record keeping and database management are carried out
electronically on the business computer of L. Davis with some back-up in the
form of paper files and on compact discs also kept at the site of Dynamic
Consulting. Reports to be distributed to clients and presentations for clients are
prepared with desktop publishing on site at Dynamic Consulting. The Internet
presence for Dynamic Consulting is maintained from the site of the business, as
well.
Research and Development
Research and
development at Dynamic Consulting is of the utmost importance for meeting the
needs of clients and remaining competitive.
- To achieve this, the business
receives a number of publications monthly: American Fitness, IDEA Health
and Fitness Source, IDEA Personal Trainer, IDEA Fitness Manager, IDEA
Fitness Edge, ACSM Medicine &
Science in Sports & Exercise, ACSM Exercise and Sport Sciences Review,
ACSM Health and Fitness Journal, Club Industry, and others.
- Annually, Dynamic Consulting also
purchases the Lifestyle Market Analyst and reports as they are published
from American Sports Data.
- In addition to published materials,
Dynamic Consulting keeps up with the trends in the industry by attending
conferences annually, such as the ASCM Fitness Expo and
- As well as keeping up to date on the
fitness industry, Dynamic Consulting keeps informed on the developments in
small business by reviewing publications and attending workshops and
conferences.
Contingency Plan
As a safeguard
against any kind of disaster, Dynamic Consulting keeps a contingency plan. All
important operating data for Dynamic Consulting that is in electronic form, as
well as data on client businesses, is copied onto CDs and stored off site in a
safety deposit box at the bank where Dynamic Consulting keeps an account.
Important paper documents are also copied and kept in the same safety deposit
box off site. Insurance protects Dynamic Consulting, in the case of an
emergency, by financially backing up the business. Dynamic Consulting updates
the contingency plan on a monthly basis to ensure that no critical
documentation is ever lost.
For matters that
cannot be adequately handled by Dynamic Consulting, such as legal and financial
matters, consultants are hired. For financial matters, such as accounting issues
and taxes, an accountant is hired as needed to assist in the preparation and
review of documents. Similarly, for legal matters, such as document preparation
and contract drafting, the services of an attorney at law are acquired. Other
consultants are hired, as needed for the upkeep of operations at Dynamic
Consulting.
IX. Organization
As a sole
proprietorship, all aspects of business at Dynamic Consulting are carried out
by owner L. Davis, but a network of individuals with various specialties
supports L. Davis as the advisory committee for Dynamic Consulting.
Legal Advisor: Rosemary
LaPuma
In addition to
having her law degree, Rosemary LaPuma teaches law courses at three
universities in
Financial Advisor: Kent
Granger
Kent Granger, a
retired attorney, received his law degree from
Marketing Advisors: Alycen
McAuley, Matt Hughes
With a wide array
of experiences in sport marketing and a brilliant marketing mind, Alycen
McAuley offers a unique perspective to Dynamic Consulting. A. McAuley received
a master’s degree in sport management from the
Matt Hughes, a marketing
manager for the Lincoln Mercury division of the Ford Motor Company, offers a
different perspective for Dynamic Consulting. He received a marketing degree
from
Technology Advisors: Sarah
Granger, Dave Sherfessee
Sarah Granger, a
technology writer in
Dave Sherfessee,
a server engineer for Alexa, a subsidiary company of Amazon.com, compliments
the general technology knowledge of S. Granger for Dynamic Consulting. With an
undergraduate degree in physics from
Web Design Advisor: Amy
Huang
As a web
designer, Amy Huang is both technical and creative. She received her Bachelor’s
and Master’s degrees at
Graphic Design Advisor: Joe
Chacon
Joe Chacon, owner
of Chacon Design, a graphic design business that has been serving clients for
10 years, lends his amazing creative talent to Dynamic Consulting. J. Chacon received
his formal training at the Art Institute of Fort Lauderdale and has worked with
a diverse range of people on a range of projects over the years.
X. Development and Exit
Plans
Dynamic
Consulting strives to improve lives through fitness by helping fitness
businesses to be at their best. To establish itself as a leader in the guidance
of fitness businesses and accomplish its mission, Dynamic Consulting focuses
and refocuses to support each client and mold to the needs of the client as they
change with time. At Dynamic Consulting, the priority is to provide quality
service backed by research and thorough examination of client businesses. Also high
on the priority list, effective marketing reaches clients that can then be
attracted and served by the quality of Dynamic Consulting.
Milestones:
One year: After
one year in business, Dynamic Consulting will have established itself as a
viable part time business with a handful of steady clients. While anticipating
slow development as clients are initially attracted and sparked to take action,
Dynamic Consulting will remain a part time venture supported by other income from
L. Davis.
Five Years: After
five years in business, Dynamic Consulting will have become a full time
business enterprise with many established clients, many of whom are also repeat
clients. Dynamic Consulting will begin to completely support itself after the
first five years, and convert to the status of full time business.
Ten Years: After
ten years in business, Dynamic Consulting will still be operating as a full
time venture, serving many clients with ongoing consultation and will have
proven the need for quality service in fitness business consultation covering
the areas of wellness programming, marketing and operations. With growing
success as a full time business and having reached its capacity, Dynamic
Consulting will hire an office assistant to manage the business office.
Exit Plan:
When the time has
come for L. Davis to cease her leadership of Dynamic Consulting, the business
will take one of two directions. If an acceptable business partnership can be
established and a suitable successor trained to continue the services of
Dynamic Consulting without jeopardizing the mission, the business will be sold
to the successor and L. Davis will take a place on the advisory committee where
she can continue offering support to Dynamic Consulting as long as it is
needed. In the case that Dynamic Consulting lacks a partnership offering a
proper successor, the clients of Dynamic Consulting will be referred to other
consultants who can fill their needs and operations at Dynamic Consulting will
simply end.
XI. Financials
As a part time,
home-based sole proprietorship, Dynamic Consulting maintains relatively simple
financial reports, reflecting the nature of the business. By keeping the amount
of financial liability low, Dynamic Consulting lessens the administrative
duties required for operations and can focus on the client. With fewer
expenses, Dynamic Consulting also increases the potential for profit and lowers
the risk involved in business operations.
Assumptions
Financials are
based on the assumptions that a loan can be obtained from the Small Business
Administration to cover start up costs. The loan will be paid over five years
with a 7.5% interest rate. Costs are based on present market values, and taxes
are based on 40% of total income. Revenues are based on three pricing options:
- Hourly fees of $75 an hour
- Job contracts based on the specifics
of the job
- Retainer fees of $400 a month.
Start Up Costs
SBA LowDoc
Government Loan $15,000
Start Up Expenses
(as shown below) $17,850
Government
Registration Fees:………………………………………………$150
Business
Tax Registration Certificate with
Fictitious
Business Name Registration with
Zoning
Center location check by
Facilities:……………………………………………………………………..$1,200
Rent
and Utilities
Business
Phone Line
Equipment:…………………………………………………………………..$3,000
Furniture
Computer
Computer
software
Printer
& Copier
Telephone
& Fax machine
Office Supplies:………………………………………………………………$400
Notebooks
Paper
Pens
Pencils
Stapler
Staples
Staple
Remover
Paper
Clips
Stationary
Envelopes
Postage
Business
Cards
Resources:……………………………………………………………………$800
Lifestyle
Market Research
American
Sports Data Reports
Publication
Subscriptions:…………………………………………………….$400
American
Fitness
IDEA
Health and Fitness Source
IDEA
Personal Trainer
IDEA
Fitness Manager
IDEA
Fitness Edge
ACSM
Medicine & Science in Sports &
Exercise
ACSM Exercise and Sport Sciences Review
ACSM Health and Fitness Journal
Club
Industry
Trade Association
Membership Fees...:………………………………………$500
AFAA
ACSM
IDEA
Insurance:……………………………………………………………………$400
General
Liability
Auto
insurance
Property
insurance
Umbrella
insurance
Consultant
Services:………………………………………………………….$1,000
Attorney
Accountant
Cash reserves for
operating expenses:……………………………………….. $10,000
Income Statement
Monthly:
INCOME
Hourly
Fees $4,000
Contracts $8,000
Retainer
Fees $1,200
Total: $13,200
OPERATING
EXPENSES
Facilities: $1200
Office Supplies: $150
Consultant Services: $500
Insurance: $400
Travel: $250
Conferences: $200
Loan
Payments $275
Taxes
on Income: $5,280
Miscellaneous:
$500
Total: $8,755
NET INCOME $4,445
Annual:
INCOME
Hourly Fees: $48,000
Contracts: $96,000
Retainer Fees: $14,400
Total: $158,400
OPERATING
EXPENSES
Government Fees: $150
Equipment: $1,000
Resources: $800
Publication Subscriptions: $400
Trade Association Fees: $500
Facilities: $14,400
Office
Supplies: $1,800
Consultant Services: $6,000
Insurance: $4,800
Travel: $3,000
Conferences: $2,400
Loan Payments: $3,300
Taxes on Income: $63,360
Miscellaneous: $6,000
Total: $107,910
NET INCOME $50,490
XII. Appendix
A.
Marketing Materials…………………………………………………………………... 26
B.
IHRSA Industry Statistics…………………………………………………………….. 30
C.
American Sports Data Charts………………………………………………………… 32
D.
Demographics of the
E.
Fitness Facility Listings from the Yahoo! Yellow Pages………………………………. 35
F.
Resources……………………………………………………………………………... 40
A. Marketing
Materials
Business Card for L. Davis at Dynamic
Consulting
Dynamic Consulting
www.dynamicfitnessbusiness.com
(415) 346-6315
Letterhead for Dynamic Consulting
Dynamic Consulting
ABC Fitness Business
94123 98765
(415) 346-6315
www.dynamicfitnessbusiness.com
Postcard for Dynamic Consulting
Dynamic
Consulting
(415) 346-6315 –
Dynamic Consulting serves fitness businesses in the San
Francisco Bay Area.
Services include consultation on:
Wellness Programming
Marketing
Operations
Dynamic
Consulting promises thorough, relevant and reliable research
consisting of industry information, target market research
and personal
interviews with business personnel and clientele among other
things. Dynamic
Consulting helps fitness businesses meet the needs of their
clientele, reach
potential clientele and create more efficient business
practices.
With any commission for services, clients receive a printed
document with the
findings of the research and the recommendations. Client
businesses will also
receive ongoing support from Dynamic Consulting. Consultation
with Dynamic
Consulting is an investment in a partnership for the future
of any fitness business.
About Laura A. Davis
degree in Sports and Fitness Management from the
as well as an undergraduate degree in Journalism from the
She has also worked as a fitness director and full-time
fitness trainer and holds
certifications in a wide variety of fitness disciplines from
mind/body practices to
aerobics and strength training.
For more information, please contact
Laura A. Davis at
(415) 346-6315 or
laura@dynamicfitnessbusiness.com
Information Sheet for Dynamic Consulting
B. IHRSA Industry
Statistics
Health and
Fitness Club Programs*
|
Personal
Training |
91% |
Fitness
Evaluation |
89% |
|
Step/Bench
Aerobics |
87% |
Strength
Training |
84% |
|
Yoga |
67% |
Child Care |
67% |
|
Nutritional
Counseling |
66% |
Weight
Management |
63% |
|
Exercise
Prescription |
61% |
Massage |
59% |
|
Corporate
Programming |
56% |
Cross Training |
56% |
|
Health
Education Programming |
46% |
Group Cycling
Classes |
43% |
|
CPR Training
Courses |
42% |
Kickboxing |
42% |
|
Senior
Programming |
42% |
Aquatic
Exercise |
41% |
|
Vitamin/Supplement
Sales |
39% |
Summer |
36% |
|
Martial Arts |
36% |
Competitive
Sports |
35% |
|
Cardio
Kickboxing |
34% |
Junior
Programming |
34% |
|
Lo Impact
Aerobics |
33% |
Hi Impact
Aerobics |
30% |
|
Children’s
Programming |
30% |
Physical
Therapy |
28% |
|
Dance |
26% |
Group Strength
Training |
24% |
|
Wellness/Stress
Reduction |
23% |
Towel Service |
23% |
|
Volleyball |
22% |
Prenatal
Exercise |
21% |
|
Tai Chi |
21% |
Boxing |
20% |
|
Post |
19% |
Boot Camp
Classes |
19% |
|
Hospital
Affiliation |
18% |
Social Programs |
16% |
|
Pilates |
16% |
Self Defense |
16% |
|
Lower Back
Fitness |
15% |
Internet Access
for Members |
13% |
|
Walking Classes |
13% |
Wellness/Smoking
Cessation |
13% |
|
Arthritis
Programs |
12% |
Spa Treatment |
11% |
|
Disabled
Programming |
11% |
High Blood
Pressure Programs |
10% |
|
Cardiac Rehab |
10% |
Chiropractic
Services |
9% |
|
Subsidized
Membership |
8% |
Diabetes
Programs |
6% |
|
Basketball
Leagues |
6% |
Racquetball |
6% |
|
Soccer |
6% |
Gymnastics |
6% |
|
Treadmill
Classes |
5% |
Tennis Leagues |
5% |
|
Insurance
Affiliation |
4% |
Physician
Affiliation |
4% |
|
Osteoporosis |
4% |
Group Running
Classes |
3% |
|
Squash |
2% |
Group Rowing
Classes |
1% |
*Percentages
found in an IHRSA survey of 2,881 North American clubs.
Health and
Fitness Club Facilities*
|
Free Weight
Area |
95% |
Cardiovascular
Equipment |
86% |
|
Plate Loaded
Equipment |
34% |
Group Exercise
Studio |
85% |
|
Selectorized
Equipment |
32% |
Pro Shop |
68% |
|
Sauna |
64% |
Steam Room |
47% |
|
Nursery |
59% |
Whirlpool |
50% |
|
Tanning |
36% |
Snack/Juice Bar |
48% |
|
Vending
Machines |
42% |
Indoor Pool |
36% |
|
Basketball |
36% |
Racquetball |
37% |
|
Squash |
17% |
Meeting Rooms |
25% |
|
Gymnasium |
18% |
Outdoor Pool |
24% |
|
Bar/Lounge |
17% |
Restaurant |
16% |
|
Outdoor Tennis |
18% |
Women Only Area |
13% |
|
Indoor Tennis |
14% |
Indoor Track |
16% |
|
Children Only
Area |
8% |
Climbing Wall |
6% |
|
Outdoor Track |
6% |
Golf Course |
3% |
*Percentages
found in an IHRSA survey of 2,881 North American clubs.
Areas of Club
Expansion*
|
Cardiovascular
Equipment Area |
Resistance
Equipment Area |
|
Group Exercise
Space |
Free Weight
Area |
|
Office Space |
Locker Rooms |
|
Pro Shop |
Child Care |
|
Front Desk |
Food and
Beverage |
|
Physical
Therapy/Rehab |
Meeting Rooms |
|
Children’s Area |
Indoor Pool |
|
Lounges |
Gymnasium |
*IHRSA Industry
Data Survey
C. American
Sports Data Charts
American Sports Data, Health
Club Trend Report
American Sports Data,
Health Club Trend Report
American Sports Data,
Health Club Trend Report
American Sports Data,
A Study of Consumer Attitudes
D. Demographics
of the
Demographics as
reported in 1999 by the United States Census Bureau
|
COUNTY |
Population |
Median Income |
Income>$75,000 |
|
|
1,124,967 |
$55,946 |
35.7% |
|
Contra Costa |
724,451 |
$63,675 |
41.6% |
|
Marin |
202,668 |
$71,306 |
48% |
|
|
676,376 |
$55,221 |
36.7% |
|
|
562,287 |
$70,819 |
47.1% |
|
|
1,308,666 |
$74,335 |
49.6% |
|
Total: |
4,599,415 |
|
|
E. Fitness
Facility Listings from the Yahoo! Yellow Pages
Fitness
Facilities – San Francisco
|
(415) 351-2797 |
2797 |
|
|
|
Alex’s Gym |
(415) 239-9340 |
|
|
|
Apex Health and
Fitness |
(415) 781-2739 |
|
|
|
Applied |
(415) 621-1650 |
|
|
|
Back to Sports |
(415) 345-1669 |
|
|
|
Bay Club |
(415) 362-7800 |
555 |
|
|
Bay Club |
(415) 433-2200 |
150 |
|
|
Bikram Yoga |
(415) 346-9493 |
2425 Chestnut |
|
|
Body By Baton |
(415) 346-7751 |
2806 |
|
|
Body By Sue |
(415) 305-6865 |
|
|
|
Body Kinetics |
(415) 931-9922 |
2399 |
|
|
Body Management
Company |
(415) 681-6141 |
|
|
|
Body Tonic |
(415) 440-1800 |
1300 Sutter |
|
|
Brownies Skin
Care |
(415) 775-3815 |
1735 Union #B |
|
|
|
(415) 346-3868 |
1333 Gough |
|
|
Club West |
(415) 433-9378 |
|
|
|
Clubsource |
(415) 986-2582 |
|
|
|
|
(415) 665-3300 |
|
|
|
Dynamic Balance |
(415) 346-1691 |
3214 Fillmore |
|
|
|
(415) 974-1062 |
|
|
|
Get Fit |
(415) 550-1796 |
|
|
|
|
(415) 441-6985 |
|
|
|
Golden Gateway
Tennis & Swim |
(415) 616-8800 |
370 Drumm |
|
|
Gorilla Sports |
(415) 292-5444 |
|
|
|
Gorilla Sports |
(415) 474-2699 |
|
|
|
Gorilla Sports |
(415) 292-8470 |
|
|
|
Granelli’s |
(415) 551-2691 |
221 |
|
|
Green Door |
(415) 397-4181 |
|
|
|
Guarentee
Fitness |
(415) 563-6399 |
|
|
|
Health Club at
Hotel Nikko |
(415) 394-1153 |
|
|
|
Hockey Work Out |
(415) 863-9114 |
|
|
|
Inform A
Pilates Evolved Studio |
(415) 431-3676 |
|
|
|
Ki Realm |
(415) 474-4933 |
2001 Van |
|
|
La Fontaine
Private Fitness |
(415) 543-5432 |
|
|
|
Latin American
Workout Service |
(415) 821-0188 |
|
|
|
Marina
Gyrotonic |
(415) 561-0746 |
|
|
|
|
(415) 753-5177 |
|
|
|
|
(415) 564-4343 |
|
|
|
Millberry
Fitness Center UCSF |
(415) 476-1115 |
|
|
|
|
(415) 550-0515 |
|
|
|
Muscle System |
(415) 863-4700 |
|
|
|
Nautilus Health
Club |
(415) 543-7808 |
303 @nd St. |
|
|
Navarro’s Kenpo
Karate & Gym |
(415) 550-1694 |
3470 |
|
|
Nob Hill Spa –
Huntington Hotel |
(415) 345-2888 |
|
|
|
One Health
& Fitness |
(415) 731-9988 |
|
|
|
|
(415) 563-6694 |
|
|
|
Peak
Performance |
(415) 392-9662 |
|
|
|
Personalized
Athletic Care |
(415) 441-8858 |
|
|
|
Pinnacle
Fitness |
(415) 781-6400 |
|
|
|
Pinnacle
Fitness |
(415) 543-1110 |
61 New |
|
|
Pinnacle
Fitness |
(415) 495-1939 |
|
|
|
Purely Physical
Fitness |
(415) 282-1329 |
|
|
|
Rainbow Spa |
(415) 788-8887 |
|
|
|
Refresh a Day
Spa |
(415) 563-2316 |
|
|
|
Renew Body
& Face |
(415) 551-2639 |
1101 Brannan |
|
|
San Francisco
Fitness Company |
(415) 235-6205 |
1169 Market
#241 |
|
|
|
(415) 777-9000 |
|
|
|
Science-Fitness
Training |
(415) 265-7638 |
|
|
|
Sports Club LA |
(415) 633-3900 |
|
|
|
Strong Heart
Strong Body |
(415) 353-5616 |
|
|
|
|
(415) 788-7288 |
|
|
|
Synergy Fitness
Studio |
(415) 474-6443 |
|
|
|
|
(415) 664-0074 |
|
|
|
|
(415) 876-1122 |
601 Clement St. |
|
|
|
(415) 626-8360 |
333 |
|
|
Well Call Inc. |
(415) 621-1606 |
548 Castro |
|
|
World Gym
Fitness Centers |
(415) 703-9650 |
|
|
|
Yoga Haven |
(415) 775-9642 |
3303 Buchanan |
|
Fitness Facilities –
|
Angel’s |
(510) 482-0202 |
|
|
|
Bio-Logic Inc. |
(510) 339-6227 |
|
|
|
Beach |
(510) 268-4765 |
900 |
|
|
Courthouse
Athletic Club |
(510) 895-1010 |
|
|
|
Diego’s Power
Alley Gym |
(510) 632-7673 |
|
|
|
Emerson Sport
Training |
(510) 653-8246 |
|
|
|
Gym Masters |
(510) 530-1046 |
|
|
|
Inside Out |
(510) 655-8308 |
|
|
|
Kelly’s Gym |
(510) 601-5432 |
|
|
|
King’s Boxing
Gym |
(510) 261-2199 |
|
|
|
Marks &
Marks |
(510) 452-3755 |
|
|
|
Mind-Body
Connection |
(510) 420-0444 |
|
|
|
|
(510) 530-4000 |
|
|
|
|
(510) 339-2500 |
|
|
|
New Angle
Fitness |
(510) 594-0806 |
|
|
|
Oakland Hills
Tennis Club |
(510) 531-3300 |
|
|
|
|
(510) 655-2655 |
|
|
|
Phytness
Connection |
(510) 339-6546 |
|
|
Fitness Facilities – San Jose
|
|
(408) 267-4032 |
|
|
|
Capital Club
Athletics |
(408) 292-1281 |
|
|
|
|
(408) 366-8320 |
|
|
|
Martial Arts |
(408) 531-1001 |
1783 East
Capital Expressway |
|
|
Mc Call Gym
Group |
(408) 279-6441 |
|
|
|
Nautilus Health
Club |
(408) 723-2639 |
|
|
|
Nautilus Health
Club |
(408) 923-2639 |
|
|
|
Optimum Results |
(408) 927-6387 |
6928 Almaden
Expy |
|
|
Power Bodies
Personal Fitness |
(408) 984-0777 |
|
|
|
Right Stuff
Health Clubs |
(408) 973-1088 |
|
|
|
Right Stuff
Health Clubs |
(408) 445-3310 |
|
|
|
Royal Court
Club Fitness |
(408) 259-1010 |
|
|
|
|
(408) 297-0067 |
|
|
|
Schoeber’s
Athletic Club |
(408) 629-3333 |
|
|
|
Shape Up |
(408) 528-1811 |
|
|
|
Star Boxing Gym |
(408) 923-9737 |
|
|
|
Studio Fit |
(408) 265-0348 |
|
|
|
Unleash Your
Power |
(408) 569-8809 |
|
|
F. Resources:
Abrams, R.
(2000). The Successful Business Plan: Secrets and Strategies.
Running
‘R’ Media.
Aerobics and
Fitness Association of
American Sports
Data, Inc. IHRSA/ASD Health Club Trend Report (1987-1998).
American Sports
Data, Inc. A Study of Consumer Attitudes Toward Health Clubs and
Physical
Fitness.
City of
The Cooper
Institute. <http://www.cooperinst.org>
Covello, J. &
Hazelgren, B. (1998). You First Business Plan. Edition.
Sourcebooks,
Inc.
Howell, Jeremy.
Personal Interview.
IDEA Health and
Fitness. <http://www.ideafit.com>
iHRSA. Industry
Statistics. <http://www.ihrsa.org>
Lesonsky, R.
(2001). Start Your Own Business: The Only Start-Up Book You’ll Ever Need.
Men’s Fitness
Online. <http://www.mensfitness.com>
SRDS. The
Lifestyle Market Analyst 2001.
Small Business
Administration. <http://www.sba.gov/>
Yahoo.com. Yellow
Pages. < http://yp.yahoo.com>
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