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Executive Summary

Overview: There should be a space where women can exercise without having to worry about men’s actions. Ladies Only Fitness caters to the busy metropolitan professional lady who has limited time to exercise. We also cater to young moms in need of a fitness atmosphere that caters to their specific requirements. The atmosphere that is developed in the facility gives Ladies Only Fitness a competitive edge. In a program that is entirely focused on women, women feel calmer and at ease. Furthermore, the childcare facility has been constructed to be visible from the main training floor. While working out, a young mother can keep an eye on her youngster in the center.

Mission:Ladies Only Fitness will cater to people of all ages and genders. Fitness equipment, workout sessions, personal training programs, yoga, and nutrition will all be available.”

Vision: “Ladies Only Fitness will become the leading fitness establishment by only offering the highest-quality backed by superior services.”

Industry Overview:

The worldwide fitness club industry is estimated to be worth $87 billion. There are over 200,000 health and fitness clubs worldwide. The United States, Germany, and the United Kingdom are the countries with the most fitness club memberships. All studies concur that hiring a personal trainer leads to better outcomes in all fitness categories, regardless of user discipline. The top fitness trends for 2019 include activity trackers, HIIT, group training, fitness programs for seniors, and bodyweight training. (calisthenics).

Financial Overview:

Financial Highlights:

Liquidity2020A2021A2022F2023F2024F
Current ratio612233242
Quick ratio611223140
DSO88888
Solvency     
Interest coverage ratio  8.211.114.2
Debt to asset ratio0.010.010.20.180.16
Profitability     
Gross profit margin51%51%53%53%53%
EBITDA margin12%14%21%22%22%
Return on asset5%6%13%14%14%
Return on equity5%6%16%17%17%

Fund Usage:

Industry Analysis:

Overview: The number of health club memberships has increased over time, indicating that more people consider fitness to be an important part of their overall health plan. In addition, population expansion has boosted demand for health club subscriptions, particularly among those aged 20 to 64, who make up the largest gym-going cohort. Annual revenue has increased from $2.4 billion to $2.6 billion over the last five years on a national level. In the first three months of the year, demand for health club memberships is often the highest. For example, according to estimates, 30.0 percent of all new members joined their gym or fitness club in the first few months of the year, owing to New Year’s resolutions, which may motivate customers to adopt healthier lifestyles. Many gyms have provided discounts and monthly subscriptions to increase the number of new memberships during other months, but January continues to account for the majority of membership purchases. With this in mind, the Company plans to begin operations. After home exercise equipment, health clubs are the second most popular market for fitness equipment (of a lower grade and price point relative to commercial equipment). Between 1997 and 1999, the number of persons who joined a health club increased by 76 percent, or 30.6 million.

Health clubs have seen a shift in their client demographics, in addition to large membership rises.

There are major demographic shifts. Fitness clubs used to be largely occupied by bodybuilders between the ages of 18 and 34. Americans are increasingly making the cognitive link between fitness and health as a result of their paradigm shift. As a result, fitness club memberships are held by a far larger percentage of the population. This is demonstrated by the significant increase in club membership among over 55-year-olds, who are instinctively more concerned with general health than with fitness and strength.

Market Segmentation:

Fitness equipment is sold through wholesalers or directly from the manufacturer or importer in the United States. Distributors account for the vast majority of sales. The vast number of distributors in the United States is because distributors normally carry one (or two) vendors for each type of equipment (strength, cardiovascular, and so on). Typically, manufacturers will provide each distributor an

exclusive geographic region to sell their products in.

Large corporations (fitness clubs, franchises, corporations, etc.) with substantial purchasing power can typically buy directly from the manufacturer, bypassing the distributor layer of the distribution route. Circuit Fitness Importing’s target clients will include both wholesalers and end-users.

Market Analysis
Potential CustomersGrowth     CAGR
Distributors3%1,2001,2361,2731,3111,3502.99%
Health clubs5%12,54513,17213,83114,52315,2495.00%
Vertical markets6%30,00031,80033,70835,73037,8746.00%
Total5.64%43,74546,20848,81251,56454,4735.64%

Marketing Plan:

Social Media : To advertise our business, we should use the internet and social media platforms such as Instagram, Facebook, Twitter, YouTube, Google+, and others.

List Circuit Workout in local phone books and directories.

Advertise Circuit Workout on our official website and use marketing methods to

drive visitors to it. Advertise our company in Health magazines and on the internet.

Local Organization and Events: Circuit Workout will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, homeowner associations, or sporting events.

Commute Advertising: By employing individuals to display signs alongside [route or highway], we will draw attention to Company Workout. We can reach a significant number of working people with disposable income by advertising on heavily frequented commute routes.

Referral Marketing: Encourage people to use word-of-mouth marketing (referrals), Participate in direct marketing.

Customer Loyalty Program: Workout in Circuits. will develop a successful customer loyalty program to keep its most loyal customers coming back for more. When our pros and other personnel are not actively offering services to consumers in the Gym, they will make occasional, routine phone calls to customers. These phone calls will (a) ensure that consumers are satisfied with their memberships/services, and (b) remind them that they may desire a new class or session after a particular period has elapsed. Customers who have been with the company for a long time will be eligible for the loyalty program, and referrals will be recognized as well.

Organogram:

Financial Plan:

Earnings:

Break-Even Analysis :

Income Statement:

2020A2021A2022F2023F2024F
ANNUAL REVENUE     
Item 19,21759,117175,410415,277781,357
Item 234,701222,558660,3681,563,3942,941,580
Item 34,06719,56146,43278,519114,905
Total annual revenue47,985301,236882,2112,057,1893,837,842
% increase 528%193%133%87%
COST of REVENUE     
Item 13602,2596,61715,42928,784
Item 24803,0128,82220,57238,378
Item 352,00065,00078,00091,000104,000
Item 47203,6158,82216,45823,027
Item 5140,000336,000560,000840,0001,120,000
Item 660,000144,000240,000360,000480,000
Item 732,00061,33385,533112,153141,435
2020A2021A2022F2023F2024F
ANNUAL REVENUE     
Item 19,21759,117175,410415,277781,357
Item 234,701222,558660,3681,563,3942,941,580
Item 34,06719,56146,43278,519114,905
Total annual revenue47,985301,236882,2112,057,1893,837,842
% increase 528%193%133%87%
COST of REVENUE     
Item 13602,2596,61715,42928,784
Item 24803,0128,82220,57238,378
Item 352,00065,00078,00091,000104,000
Item 47203,6158,82216,45823,027
Item 5140,000336,000560,000840,0001,120,000
Item 660,000144,000240,000360,000480,000
Item 732,00061,33385,533112,153141,435
Total Cost of Revenue285,560615,220987,7941,455,6121,935,625
as % of revenue595%204%112%71%50%
Gross Profit-237,575-313,984-105,583601,5781,902,218
SELLING & ADMIN EXPENSES     
Item 128,00096,800154,880175,692193,261
Item 275,000105,000120,000120,000120,000
Item 336,00096,000108,000120,000120,000
Item 48,00012,00012,00012,00012,000
Item 53,83918,07444,11161,716115,135
Item 63,35912,04926,46641,14476,757
Item 75,60010,00012,90415,03417,376
Item 86,66714,00022,06730,94040,701
Total selling & admin expenses166,464363,924500,428576,525695,230
as % of revenue347%121%57%28%18%
Net profit-404,039-677,907-606,01125,0521,206,987
Accumulated net profit-404,039-1,081,947-1,687,957-1,662,905-455,918

Cash Flow Statement:

2020A2021A2022F2023F2024F
CASH FLOW from OPERATING ACTIVITIES     
Net profit before tax-$404,039-$677,907-$606,011$25,052$1,206,987
Depreciation$44,267$85,333$120,504$158,127$199,512
Payables     
Item 1$4,333$5,417$6,500$7,583$8,667
Item 2$11,667$28,000$46,667$70,000$93,333
Item 3$6,250$8,750$10,000$10,000$10,000
Item 4$3,000$8,000$9,000$10,000$10,000
Item 5$667$1,000$1,000$1,000$1,000
Total payables$25,917$51,167$73,167$98,583$123,000
change in payables$25,917$25,250$22,000$25,417$24,417
Receivables     
Item 1$320$1,506$3,676$5,143$9,595
Item 2$360$1,807$4,411$8,229$11,514
Total receivables$680$3,314$8,087$13,372$21,108
change in receivables-$680-$2,634-$4,773-$5,285-$7,736
Net cash flow from operating activities-$334,536-$569,958-$468,280$203,311$1,423,180
      
CASH FLOW from INVESTING ACTIVITIES     
Item 1$16,000$13,200$14,520$15,972$17,569
Item 2$20,000$22,000$24,200$26,620$29,282
Item 3$28,000$22,000$14,520$10,648$11,713
Item 4$96,000$88,000$72,600$79,860$87,846
Item 5$20,000$22,000$24,200$26,620$29,282
Net cash flow/ (outflow) from investing activities-$180,000-$167,200-$150,040-$159,720-$175,692
      
CASH FLOW from FINANCING ACTIVITIES     
Equity$400,000$440,000$484,000$532,400$585,640
Net cash flow from financing activities$400,000$440,000$484,000$532,400$585,640
Net (decrease)/ increase in cash/ cash equivalents-$114,536-$297,158-$134,320$575,991$1,833,128
Cash and cash equivalents at the beginning of the year-$114,536-$411,693-$546,014$29,978
Cash & cash equivalents at the end of the year-$114,536-$411,693-$546,014$29,978$1,863,105

Balance Sheet:

2020A2021A2022F2023F2024F
NON-CURRENT ASSETS     
Item 1$16,000$29,200$43,720$59,692$77,261
Item 2$20,000$42,000$66,200$92,820$122,102
Item 3$28,000$50,000$64,520$75,168$86,881
Item 4$96,000$184,000$256,600$336,460$424,306
Item 5$20,000$42,000$66,200$92,820$122,102
Total$180,000$347,200$497,240$656,960$832,652
Accumulated depreciation$44,267$129,600$250,104$408,231$607,743
Net non-current assets$135,733$217,600$247,136$248,729$224,909
      
CURRENT ASSETS     
Cash-$114,536-$411,693-$546,014$29,978$1,863,105
Accounts receivables$680$3,314$8,087$13,372$21,108
Total current assets-$113,856-$408,380-$537,927$43,349$1,884,214
Total Assets$21,878-$190,780-$290,791$292,078$2,109,122
      
LIABILITIES     
Account payables$25,917$51,167$73,167$98,583$123,000
Total liabilities$25,917$51,167$73,167$98,583$123,000
      
EQUITIES     
Owner’s equity$400,000$840,000$1,324,000$1,856,400$2,442,040
Accumulated net profit-$404,039-$1,081,947-$1,687,957-$1,662,905-$455,918
Total equities-$4,039-$241,947-$363,957$193,495$1,986,122
Total liabilities & equities$21,878-$190,780-$290,791$292,078$2,109,122