Steven’s Gym is a startup locally owned gym located in El Paso, Texas. Steven’s Gym will include strength training equipment, free weights, aerobic equipment, and plenty of cardio equipment. The gym will also offer HIIT group classes, spin classes, strength training instruction, and personal training.
Located in an up and coming, newly developed, and highly trafficked area of town, Steven’s Gym will attract both men and women ages 16 to 75+. There is something for everyone at Steven’s Gym, whether someone is just beginning their fitness journey or is a seasoned athlete and gymrat. The gym will have a welcoming atmosphere, experienced personal trainers, friendly staff, and frequently cleaned equipment and restrooms.
The membership options are affordable and will be offered on a month-to-month basis, a 6 or 12 month contract, or the ability to pay for an entire year upfront. Discounts will be offered to military, teachers, and healthcare workers.
The following are the services that Steven’s Gym will provide:
- Strength training equipment
- Cardio equipment
- Free weights/dumbbells
- Aerobic equipment
- HIIT group classes
- Strength training instruction
- Personal training sessions upon request
Steven’s Gym will target all men and women ages 16 – 75+ who are interested in achieving and maintaining a healthy and active lifestyle. El Paso is a very diverse city that includes men and women from all walks of life. There are numerous blue collar individuals, white collar individuals, government employees, and military members as the local Army base is one of the largest in the country. Since Steven’s Gym will be very affordable, it will be able to attract people from all walks of life.
Steven will manage the day-to-day tasks of running the gym, while overseeing the staff, scheduling the group HIIT classes, and making sure all equipment is working properly and safely. He will also be in charge of ordering any new and replacement equipment and cleaning products and supplies. Steven will hire a gym manager to manage all new member sign-ups, placing them on a recurring payment schedule, and handle all member issues. There will be three personal trainers that will be available to personally train any member that requests training. They will also take turns running the group HIIT classes. Steven will outsource a local CPA to handle payroll, accounting, and tax payments. He will also outsource a local advertising company to develop the gym’s logo, branding, photography, social media accounts, website, and billboard design.
Steven’s Gym will be able to achieve success by offering the following competitive advantages:
- Large, clean, and spacious facility that has all the necessary equipment for their fitness routine.
- Knowledgeable and friendly staff of personal trainers.
- Best value for membership pricing. The membership pricing options are affordable and offer military, teacher, and healthcare employee discounts.
- Convenient hours of operation.
Steven’s Gym is seeking $300,000 in debt financing to begin operations of the business. The funding will be dedicated towards securing the warehouse space, gym build-out, and purchase of the gym equipment. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and working capital. The breakout of the funding is below:
- Securing warehouse space, gym build-out, and design: $25,000 to $125,000
- Gym equipment purchase: $50,000 to $100,000
- Three months of overhead expenses (payroll, rent, utilities): $15,000 to $55,000
- Marketing & advertising: $15,000
- Working capital: $10,000
The following graph below outlines the pro forma financial projections for Steven’s Gym.