Business Plan in Tianjin China

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Suppliers& Manufacturing -wk2

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We are carefully selected to buy the best fitness equipment. Our supplier is also the famous fitness equipment production company. We will buy equipment from the best fitness equipment company with in top 500, and the best survive we will provide.

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Management-wk2

4.1 Management

Our fitness center will be managed by a modern-style fitness center manager with over 5 years’ experience in other center or club. Thus she/he will be responsible for all management, marketing and training. It will be professional to run the center

4.2 Organization Chart

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Financial Management-wk3

We will spend a lot of money in first years, because there are too many staff should be bought and some bills should be paid. In that case, we only keep balance in first year, no lose too much money. In the second years, with the fame of our company separate to students, we may start to earn more money with the cost increase slowly. So does in the third year.

Q: Where did you get your capital from?

A: Our capital is from the investment from Selina and Kopite and some other investors. We also have the fund of government.

Q: How much will you spend on start up expenses？

A: We will spend 380,000 RMB on start up expenses.

Q: What are your expectations for cash flow and profitability?

A: We should prepare perfectly at first, in order to avoid lacking money in the later. So we should get ready to enough startup capital, make advertisement in time and change the price according to the development of market.

Q: What are your break even points for your main products?

A: We will making the price which is suitable for students in our school, and the staff’s salary should be reasonable.

Marketing-wk2

Market Summary

S.K. fitness center is main fitness place in TUST. There are not many fitness in this area ,but a large flow of people need a nice place to do exercise and build their bodies. However, there is huge potential for growth in the area.

Most people when deciding to do some sports will choose to go to gym or a fitness center. Furthermore there is custom of going out home for exercise in the evening or after meal. Once meals are finished people have a tendency to do some sports rather than just stay at home.

However in recent times we have seen with the opening up of TEDA and an exchange in cultures and ideas, along with the growth of information technology, a demand for change in the social structure. This is mainly being driven by young successful professionals and the mid to highly wealthy. Thus now people are looking for more choices and different activities in which they can meet people from outside of their normal circles and environments to share social experiences.

Market Analysis

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Our target customers are college students in this campus, whose aged is 18 – 22 years old. Those people who love to do sports or want to be healthier. All in all, those boys who want to be strong and handsome or girls who want be more vigorous and graceful also we aimed at. According to the data, there are more than 10000 students in this campus, which means our potential customers is nearly 2000, with the expansion of campus, our potential customers is increasing. Based on current situation, we are stay in a growing market. Most of fitness center is located in downtown, suburb is lacking of this kinds of facilities, especially at this area which have great demand. In this case ,if we put enough money into this project we can get 50% market in 3 years, go up to 75% in five years

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Market Segmentation

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We separate our market in different part: we have different kinds for our V.I.P. card. For the golden card member, we provide free mineral water and towel and 20% discount ; for silver card member we have the free water and 15% discount; for common card we provide 10% discount .we predict nearly half of our member (55%) will choose the golden card ,25% will have silver card and 20% will select common card . Besides, for TUST students we have 10% discount with their student card. In that case ,we hope we can reach 25% of market in our first year(2015) and reach 50% in 3 years (2018)

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Competition

Pricing

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This is our fitness center’s price chart

- 35RMB/once

- 650RMB/months

- 5200RMB/year

- 12000RMB/650 times

We will offer a discount for long time members. Although our price is much higher than our competitor (Daxuecheng fitness club), we can provide a much better place to do exercise and relax yourselves. All the facilities are new and the environment inside is very clean.

Advertising and Promotion

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We will advertise through poster, network website (online website & we-chat), advertise on newspaper and support the sponsored. We will sponsor some school or student’s activities when our business start to advertise ourselves, and distributed pamphlets or brochures to public. Besides we will give some discount by we chat to publish and attract more students. We are not a big company, so we will not advertising in a big way.

Strategy and Implementation

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First of all, we have to plan in the prophase. Capital allocation problem is very important. Our indoor environment must be clean and neat, with fashionable breath,