Fdi in Mexico

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15 Calle Nueva, México, Estado de México, 53370

Interior

We chose an industrial warehouse because as a gym we require minimum renovations. The bare minimum interiors of the warehouse provide the space and clearance we need for the fitness equipment and other weight machines. Of course there will be an office furnished and finished. Air conditioning and other amenities, of course will be installed. Premium Wi-Fi and TV/Radio services like any other gym will also be provided.

The property in question will cost roughly $5,000 USD in rent each month. It is a 12,376 square feet property with roughly 2800 square feet of it already furnished for offices and other administrative duties. The clearance of the property is roughly 6-8 meters; more than high enough for the gym equipment, air conditioning, and ventilation. With over 9,500 square feet for gym machines, weights and activity rooms, it will be large enough to accommodate many gym goers at once.

Hours of Operation

Our hours of operation will be convenient to our customers. We understand the hard hours that they have to work and how they do not have the convenience of choosing what time they are free. With regards to that, our hours of operation will be from 4AM to 12PM daily, Monday through Sunday. Holiday hours are to be determined but we are confident we can still be open for at least a short time on those days.

Products and Services

As previously iterated, we are proud to be able to provide a first world gym experience to the low income families of Mexico without a first world price. Mexico is one of the leading obesity countries in the world. The reasons of such an alarming rate of obesity has mostly been due to modernization. Before the 21st century, the only dietary problems Mexico was under or malnutrition; a complete 180 from the problem we are facing today. Lack of access to healthy foods, fitness education, and healthy lifestyles for the low income families have been the largest barrier for them to become active and healthy. That is why maximoFitness is here to provide a gym membership for a low subsidized price. Like any other gym we will have the full suite of amenities including showers, saunas, tower service and personal training. You can spend as much or as little as you want to tailor to your needs and still be able to get fit.

We chose Mexico based on three main profit driving factors.

- Low labour costs. Mexico has some of the lowest labour costs. As of January 2015, they are at an all-time low. 87.80 index points.

- The Mexican Social Security Institute has decided to subsidize gym memberships for any Mexican citizen look to join. This not only affords us lower costs, but we in turn pass on the savings to the customers, generating further volume with price leadership.

- As previously stated, there is an obesity problem here in Mexico, we can exploit that and feed the demand with our own brand of supply; doing it better, at a lower cost.

Suppliers

Nautilus will be our main partner to supplying gym equipment to our first Mexico gym. Proudly Canadian and a reputable manufacturer, we want to provide only the best the first world has to offer. We found that gym equipment from local sources were of inferior brands and did not adhere to the higher standards we are used to in Canada. We want to provide an experience unequaled by “just your local gym”. Administrative supplies and renovations will be sourced locally.

Service

Our labour will consist of locals and also management from Canada. We intend to train all of employees to standards that would even be outstanding in Canada. We want our personal trainers, personal training programs, instructors for extra classes to be top class no matter where you are from. We will train them to give outstanding service that goes beyond making a sale. We will have a sales team dedicated to signing up new customers. They will work closely with the IMSS to recruit new and willing members to join our gym. We will a have general manager there to oversee the operations. He or she will be assisted by managers that are not only going to supervise the personal trainers, but will also personally train the local labour for the job. The ideal managers must also have personal training experience. Our hiring process will begin here for young adults willing to relocate and pass on their expertise.

Management

As majority stakeholder, of course I will be overseeing operations as said General Manager. I will be overseeing all operating and financial management duties. Under me will be a three or more service managers. Two, will be personal training managers. They will in be charge of hiring (with my final approval), training of local labour in various positions. They will also be in charge of scheduling hours with personal trainers and other staff. The ideal personal training managers must have experience in personal training and be willing to relocate. An administrative manager will also assist me in handling day-to-day tasks including but not limited to overseeing the sales team in signing up new members. They will work closely with IMSS and myself to help in decision making. The ideal administrative manager will have background in sales and business management. He or she must also be local as he will be the cultural lubricant to doing business in Mexico. What we lack from Canada is experience in running a business Mexico. A local will have access to cheaper local suppliers, services and will have experience with the local jurisdiction and cover for other cultural differences we may be unaware of.

Financial Management

Our gym will operate like any other gym. Aside from great service from foreign training and an extremely low price from IMSS subsidies, our gym will be just as complete as any of our rivals. The average price for a gym membership in Mexico is $73USD monthly. Our prices will be significantly lower due to a 60% subsidy from the IMSS and the savings our location affords us. At $30 a month, our gym will be easily affordable by the lower earning families. With incentives for sign up for longer, the monthly membership cost can go as low as $25.99 monthly. Full details of our start-up and operating costs are located in the appendix but below is a brief summary accounting of our financials.

- Start-up costs: Gym equipment and supplies, renovations,