Gym Proposal

Thank you very much for the meeting yesterday. We are extremely excited to open up yet another branch of XYZ Fitness Gym on 54^th Avenue, Northern Chicago, and looking forward to your company financially assisting us to set it up. We have prepared this proposal for you, with all the details. We would like your company to have a look at the entire opportunity and share your assistance to support our business idea.

Executive Summary

We would like to open another branch on 54th^th Avenue, next to the ABC Gas station in the northern region of Chicago, Illinois. We have already signed a 5-year lease plan for the basement of ABC plaza. XYZ will be a membership gym, providing amenities like the pool, cardio equipment, yoga sessions, and personal training. As ABC is a top Venture capital firm and you support small businesses, we would like you to provide us the necessary finances to start up our new branch of the XYZ Fitness Gym.

Introduction

The XYZ fitness gym is one of the famous and high-ranked fitness gyms in West Chicago. Our aim is to provide a safe, clean and friendly environment for our clients as soon as they step inside. Our professional and qualified trainers are always ready to help, educate and support. We offer a dynamic blend of training equipment and space to accommodate all our customers. Our skilled, professional, and certified personal trainers provide expert guidance for individuals to achieve their personal goals, whether it is to reduce weight, gain muscles, and tone the body, or just a guideline to lead a happy and healthy lifestyle.

Services

Our fitness centers provide the following services:

Tailored personal training programs
Pilates
Zumba
Yoga
Boot camps

Business Summary

Hours of operation:

Monday -Sunday: 6:00am -9:00pm

Location:

54^th Avenue, Chicago

Objective:

Provide fitness services

Workers:

5 workers will be hired, including trainers, managers, and consultants.

Location

54^th Avenue is a very lively place, nearby a lot of offices, and malls. We have selected the basement of ABC plaza, which is a 5,500 square feet area. We are going to have to do some remodeling to make it look like a state-of-the-art gym. This place has a very decent footfall and attracts hundreds of people. We think that opening up a gym at this spot will be a great opportunity for our business.

Target Market

Our target market is the fitness-conscious young generation and people with high disposable income, who can afford all-inclusive gym memberships.

Ages: 35-50

20 and younger

Market Analysis

Gyms and fitness centers are becoming more and more popular because of increased health-consciousness in common people. Location plays a very important part in the success of any fitness center. Our market research shows that the students and people working in nearby offices will be the most likely customers. XYZ will strive to build loyal customers by providing them high standards of fitness and a friendly environment.

Competitive Analysis

We did our research and found out that there are currently no other gyms or fitness centers working within the radius of 5 km of 54^th Avenue. We saw this as an opportunity to start the XYZ gym branch in this area.

Marketing

We will be promoting our gym through digital marketing. We will send our offers and promotions through social media, SMS, and emails.
We will offer a free Training Day on our website, where people will be able to either visit our existing branch on the Main Boulevard or the new branch, for a 1-day free session. This way we will get some new potential customer information and we can send them promotions and offers to sign them up for the membership of the XYZ gym.
We will print ads in all the local community newspapers and drop flyers in the nearby malls and offices.
Also, we will use our current website to run banners and ads about the new branch.

Start-up Cost

The estimated start-up cost is:

Names	Cost
Legal paperwork	$998
Marketing	$876
Basement Renovation & Construction	$3400
Basement rent (2-year advance)	$310
Insurance	$345
Facilities	$234
Exercising Equipment	$567
Stationary	$567
Inventory	$784
Miscellaneous	$590
Total	$[X]

Running Cost

The estimated running cost is:

Names	Cost/month	Cost /year
Monthly Salaries	$234	$657
Utility Bills	$456	$234
Maintenance	$456	$564
Total	$[x]	$[X]

Sales Forecasts

This XYZ Gym will surely attract a large number of consumers and we are very optimistic and certain that we will break even within the first couple of years and start generating a profit by the end of the third year. Below are the sales forecast for the fiscal years, based on information collected in the field and our already existing business.

First 6 months: $30,000
First fiscal year: $80,000
Second fiscal year: $180,000

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