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Joy Norris

Business Plan
REC 4330

1. Business Strategy
a. I am in the business of fitness and sport centers.
b. I am starting a for-profit all-inclusive bouldering gym named Rock Solid Gym.
The gym will offer monthly memberships, bouldering equipment, and classes.
The gym is open to individuals who enjoy free climbing and training towards
more advanced outdoor climbing. The gym will be fully accessible for all people
of any ability level.
c. It is the mission of Rock Solid Bouldering to provide a quality experience, safety
and inclusiveness to the San Marcos community. We will promote growth,
provide learning opportunities, and accessibility for all who choose our services.
Rock Solid Bouldering will provide an atmosphere of perseverance,
determination, and freedom.
d. The services that will be offered at Rock Solid Gym will be accessible
bouldering, yoga, and a weight room. The gym will hold climbing clinics and
classes geared toward learning more about specific types of climbing. We will
have a supply and apparel store for participants to buy all their climbing gear.
We will not offer guided climbing trips or rent gear out for outdoor climbing
ventures.
e. What makes Rock Solid Bouldering stand apart is its goal to be accessible to
people of all abilities. This gym may look different from others for this reason.
The equipment will be different for those individuals, but the gym is for the
whole community to enjoy. We will promote and cultivate an atmosphere of
inclusiveness for everyone. The goal will be to have our own community and
support system within the gym.
f. Sole proprietorship is the form I will use for my business. It is the most cost
effective and direct way for an individual to successfully start. This legal form
gives all rights and decisions solely to the one owner. The owner is responsible
for all the profit, marketing, growth, and documentation. The owner must rely on
their own resources and they have complete authority over the whole business.
2. Marketing
a. My business’s competitive advantages are in the accessibility and experience we
offer to the community. We will provide hands on assistance and we will provide
a quality experience to all individuals through our climbing, classes, and yoga.
b. The target market is the San Marcos, Texas community. As of 2016 the United
States Census Bureau recorded San Marcos’s total population of 61,980. That was
Joy Norris

a 37.3% increase from a 2010 census. Education levels for high school 85% and
Bachelor’s degree or higher were 30.9%. The average household income was
$28,923. Persons in poverty 37.0%. People with a disability under the age of 65
was 8.9%. There were 2,080 veterans and foreign-born persons 6.3%.
c. There are competitors in the surrounding area. Crux Climbing Center, Austin
Bouldering Project, and North Austin Rock Gym. Crux Climbing Center offers
$17 day passes and $80 per month memberships. Austin Bouldering Project offers
$16-dollar day pass and $68 per monthly memberships. North Austin Rock Gym
offers a $10-day pass and $50 per month memberships. Their advantages over my
business are that they have been running for more than a year, they are bigger,
and are more experienced.
d. Rock Solid Gym’s market is aimed at people with discretionary income. The
customer profile for climbing is very diverse with interest coming from children
and adults. The average age for consistent users range from 18-40s. People from
every demographic are drawn to climbing as a recreational activity because it
requires no previous experience to be able to participate. According to IBIS
world, “Disposable income levels increased, and unemployment decreased over
the past five years and customers returned to making discretionary expenditures,
replacing relatively low-cost recreational activities, such as hiking, with indoor
wall climbing and indoor rock climbing. Over the five years to 2022, the industry
is expected to continue benefiting from rising disposable income and falling
unemployment.” This reveals the market is full of a variety of people with
discretionary income ready to enhance their recreational activities.
e. I will use the going Going-Rate Pricing strategy. I will be matching or
undercutting my competitors pricing, but I will be offering different and better
nonprice variables to draw more customers. This will work for my business,
because of the classes and accessibility we offer to the community. By offering
better amenities, customer service, and an all-inclusive atmosphere this pricing
strategy will benefit the business.
f. My business is in the Introduction Stage of the Product Life Cycle. The business
does not yet have a store front, and will be the first and only bouldering gym in
San Marcos.
g. My gym will offer great customer services from trained professionals. All my
employees will be certified and trained specifically for accessible climbing. Each
customer will be treated equally and given individual attention by the staff. We
will offer yoga classes, climbing classes, and a weight room with climbing
specific machines and exercises. All these services are offered in our $50 per
month membership.
h. I will market the gym through social media platforms such as Facebook,
Instagram, and Twitter. Other forms of advertisement will be the website. To
Joy Norris

spread word of mouth I will hand out fliers, water bottles with our logo during
farmers’ market on Saturdays; I will set up a booth during seasonal events such
as, Sights and Sounds, Turkey Run, and Trail of Lights. I will hire a social media
manager to develop and run the platforms. Total cost for advertising is $750. $500
for the website maintenance, $50 for Facebook post, $50 for Instagram, $150
monthly fee for social media manager. Each platform will upload two posts per
week, advertising our bouldering walls, yoga classes, etc.
3. Operations
a. Rock Solid Gym will be located in San Marcos, Texas on Hunter road. My
business is an exclusive distribution of services, because we are in one location.
The building will be 20,000 square feet with two 12,00 square foot parking lots on
either side of the building. Each parking lot will have no less than 10 accessible
parking spaces with ADA approved on ramps and railing within 10 feet of the
accessible parking. We will be on the San Marcos bus route. As of July 2017, the
unemployment rate was 3.7%. I will only be hiring 3 employees’ who are
certified and have experience in this field. The closest fire department is 4.6 miles
from the gym on East Hutchison street.
b. I will be renting my facility. This will cut down my startup expenses dramatically
because it will be a pre-established bouldering gym with all the right walls and
space to conduct all the extra classes. By renting I can focus on building my
customer base and market the gym more effectively.
c. The City of San Marcos requires businesses to complete a Permit Requirement
Determination Application form. Signage for my business will require a On-
Premise, Attached Sign Permit Application form. My business will need a Right-
of-Way permit to have access to city pavement and transportation. My business
will be in a business commercial zone. The trading area affecting my business is
outside of San Marcos, the closest conflicting business is in South Austin.

4. Financials
a. MONTHLY overhead:
I. Rent: $7,000
II. Utilities: $500
III. Payroll: $6,000 = 3 full time staff breaks down to a monthly salary of
$2000.
IV. Overhead Expenses: 11,500 (overhead is the same as your operating
expenses for the line item budget for one month).
b. Identify and list your start-up costs
I. Fixtures: $5,000
II. Equipment/supplies: $30,000
III. Inventory: $3000
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IV. office supplies: $1500


V. Utility deposits: $1000
VI. legal fees: 10,000
VII. license/permit fees: $500 building permit, $75 instructor license
VIII. Advertising: $750
IX. Operating cash for one year: $189,975
c. Determine the “Per Unit Cost”: $189,975(operating expenses for one year)/500
customers=$379.95 per customer, per year.
d. I will be using $37,995 as my 20% of personal funding. I will obtain SBA 7(a)
loan from RFBCU with a 15-year term. The loan will be a fixed maturity loan
with an interest rate of 5.25% for $151,980.
e. First twelve months of income and expenses
Months Income Expenses
January 28,000 11,500
February 27,000 11,500
March 26,000 11,500
April 25,000 11,500
May 25,000 11,500
June 25,000 11,500
July 25,000 11,500
August 25,000 11,500
September 24,500 11,500
October 24,000 11,500
November 23,000 11,500
December 22,000 11,500

f. Capital Budget:
Separate capital budget (see budget page 3)

5. Summary & References


a. My business would be viable with the SBA 7(a) loan from RFBCU. From the
demand and growing market this gym would have a fast start up. According to the
Climbing Business Journal, “In the last 15 years or so, a business model that
includes full-service climbing, yoga, and fitness has come to dominate the indoor
climbing industry, and this model is a huge part of what is driving the growth of
climbing gyms to near double digit levels each year. These facilities serve hard-
core climbers looking for places to train, young professionals looking for a new
type of workout, yogis and (perhaps most significantly), families and youth.”
Joy Norris

With the growing demand and diversity of the recreation service my gym should
be received well in the San Marcos community.

b. References and Citations.

 QuickFacts. (n.d.). Retrieved November 07, 2017, from


https://www.census.gov/quickfacts/fact/table/sanmarcoscitytexas/PST045
216

 Indoor Climbing Walls Market Research | IBISWorld. (2017, June 1).


Retrieved November 4, 2017, from
https://www.bing.com/cr?IG=F7B37DE51E1643C88A4A1E53A3A9CD9
3&CID=3250B00F7C9E61BA2812BB3F7D9860AF&rd=1&h=H57A376
z5biq2yr8Jtqy68reqWLmJDdscZt1ojZNMGE&v=1&r=https%3a%2f%2f
www.ibisworld.com%2findustry-trends%2fspecialized-market-research-
reports%2fconsumer-goods-services%2fsports-recreation%2findoor-
99climbing-walls.html&p=DevEx,5037.1

 SBA Loans. (n.d.). Retrieved November 07, 2017, from


https://www.rbfcu.org/business/business-lending/sba-loans

 Marketing Your Climbing Gym. (2016, February 15). Retrieved


November 08, 2017, from
http://www.climbingbusinessjournal.com/marketing-your-climbing-gym/

 (n.d.). Retrieved November 29, 2017, from


https://library.municode.com/tx/san_marcos/ordinances/code_of_ordinanc
es?nodeId=2017
Joy Norris

Summery

Category
Gross Profit $299,150.00
Total Operating Expenses $189,975.00
Net Profit/Loss $109,175.00
Capital Expenditures $ 51,075.00
Fy17 $51,075.00
Fy18 $8,500.00
Fy19 $8,000.00
Fy20 $9,575.00
FY21 $7,500.00
Total Capital Expenditures $84,650.00
ROI on Capital Expenditures 29%
Joy Norris

Line Item Budget

Rock Solid Gym


2017 Line Item Budget
January February March April May June July August September October November December TOTALS
Revenues Membership $ 26,600 $ 25,650 $ 24,700 $ 23,750 $ 23,750 $ 23,750 $ 23,750 $
20,900 $ 284,525 23,750 $ 23,275 $ 22,800 $ 21,850 $
Apparel Store $ 1,400 $ 1,350 $ 1,300 $ 1,250 $ 1,250 $ 1,250 $ 1,250 $
1,100 $ 14,975 1,250 $ 1,225 $ 1,200 $ 1,150 $
$ -
$ -
$ -
$ -
Total Revenues $ 28,000 $ 27,000 $ 26,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 25,000 $ 24,500 $ 24,000 $ 23,000 $ 22,000 $ 299,500

Cost of Sales Membership System Fee 30 30 30 30 30 30 30 30 30 20 30 30 $ 350


$ -
Total Cost of Sales $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 30 $ 20 $ 30 $ 30 $ 350

Gross Profit $ 27,970 $ 26,970 $ 25,970 $ 24,970 $ 24,970 $ 24,970 $ 24,970 $ 24,970 $ 24,470 $ 23,980 $ 22,970 $ 21,970 $ 299,150

Operating Expenses
Salaries & Wages Salaried $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 72,000
Hourly $ -
Total Salaries & Wages $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 72,000
Other Expenses Rent $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 7,000 $ 84,000
Utilities $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 500 $ 6,000
Advertising $ 83 $ 83 $ 83 $ 83 $ 83 $ 83 $ 83 $ 83 $ 83 $ 83 $ 83 $ 83 $ 996
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Total Other Expenses $ 7,583 $ 7,583 $ 7,583 $ 7,583 $ 7,583 $ 7,583 $ 7,583 $ 7,583 $ 7,583 $ 7,583 $ 7,583 $ 7,583 $ 90,996
Total Operating Expenses $ 13,583 $ 13,583 $ 13,583 $ 13,583 $ 13,583 $ 13,583 $ 13,583 $ 13,583 $ 13,583 $ 13,583 $ 13,583 $ 13,583 $ 162,996

Net Profit/Loss $ 14,387 $ 13,387 $ 12,387 $ 11,387 $ 11,387 $ 11,387 $ 11,387 $ 11,387 $ 10,887 $ 10,397 $ 9,387 $ 8,387 $ 136,154
Joy Norris

Capital Budget

Rock Solid Gym


Capital Budget
FY17 FY18 FY19 FY20 FY21
Item Description Totals
Fixtures 5000 0 0 0 0 $ 5,000.00
Equipment/supplies 30000 2500 2000 3000 1500 $ 39,000.00
Inventory 3000 500 500 500 500 $ 5,000.00
Office Supplies 1500 500 500 500 500 $ 3,500.00
Utility Deposits 1000 1000 1000 1000 1000 $ 5,000.00
Legal Fees 10000 4000 4000 4000 4000 $ 26,000.00
License/Permit Fees 575 0 0 575 0 $ 1,150.00
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Total Expenses $ 51,075.00 $ 8,500.00 $ 8,000.00 $ 9,575.00 $ 7,500.00 $ 84,650.00
Joy Norris

Product Price Calculation

Rock Solid Gym


Monthly Product Price Calculation
Estimated
Number Desired
Fixed Costs Profit Per Sold Monthly
Item Description Per Month Variable Costs Item Monthly Product Cost Sale Price Profit
Membership $11,500.00 $0.00 $18.34 500 $31.66 $50.00 $25,000.00
Apparel $0.00 $0.00 $15.00 100 $15.00 $30.00 $1,500.00

Totals $ 11,500.00 $ - $ 33.34 600 $ 46.66 $ 80.00 #########

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