Business Analysis for Elite Personal Training
Elite Personal Training
This report adheres to the Academic Honesty Statement the professor has on file for all group members.
Critical Issues
Failing to generate enough money to startup the business
Not having enough clients to remain in business
Situational Analysis
Martin Menard and Mirella Craciun currently work as personal trainers out of Body Worx, a personal training facility in London, Ontario. Menard and Craciun are interested in leaving Body Worx and opening their own facility – Elite Personal Training (Elite). Both trainers are certified by the Canadian Association of Fitness Professionals which will allow them to charge a higher price, as some competing trainers do not have this qualification. They estimate between them, they can bring 20-26 of their loyal clients with them to the new facility, but understand the need to attract new clients.
In order to open Elite, Menard and Craciun need to raise $55,396 in start-up money (Exhibit 1). Due to $14,000 in equity and a $24,000 bank loan, they must find alternate ways to raise $17,396 or decrease start-up costs (Exhibit 1).
Monthly costs for the business will be roughly $9,937 (Exhibit 8) with each client generating $540 per month in revenue (Exhibit 7). Taken together, Elite must have a minimum of 18 clients per month to remain in business (Exhibit 8).
In order to draw in new clients, the Elite building is within walking distance of multiple businesses, giving easy access to business professionals as a target market. As most competitors focus on women, focusing on professionals might allow Elite to grow a niche market.
Decision Criteria
Attain the required startup costs of $17,396 by October 1, 2005
Retain a minimum of 18 customers each year to break-even
Option 1: Asking Members to Pay Prior to Official Opening
Since there is a shortage of cash required to start the business, which is about $17,396, Elite must find a way to finance their company to get through the
This report adheres to the Academic Honesty Statement the professor has on file for all group members.
Critical Issues
Failing to generate enough money to startup the business
Not having enough clients to remain in business
Situational Analysis
Martin Menard and Mirella Craciun currently work as personal trainers out of Body Worx, a personal training facility in London, Ontario. Menard and Craciun are interested in leaving Body Worx and opening their own facility – Elite Personal Training (Elite). Both trainers are certified by the Canadian Association of Fitness Professionals which will allow them to charge a higher price, as some competing trainers do not have this qualification. They estimate between them, they can bring 20-26 of their loyal clients with them to the new facility, but understand the need to attract new clients.
In order to open Elite, Menard and Craciun need to raise $55,396 in start-up money (Exhibit 1). Due to $14,000 in equity and a $24,000 bank loan, they must find alternate ways to raise $17,396 or decrease start-up costs (Exhibit 1).
Monthly costs for the business will be roughly $9,937 (Exhibit 8) with each client generating $540 per month in revenue (Exhibit 7). Taken together, Elite must have a minimum of 18 clients per month to remain in business (Exhibit 8).
In order to draw in new clients, the Elite building is within walking distance of multiple businesses, giving easy access to business professionals as a target market. As most competitors focus on women, focusing on professionals might allow Elite to grow a niche market.
Decision Criteria
Attain the required startup costs of $17,396 by October 1, 2005
Retain a minimum of 18 customers each year to break-even
Option 1: Asking Members to Pay Prior to Official Opening
Since there is a shortage of cash required to start the business, which is about $17,396, Elite must find a way to finance their company to get through the
References: Fitnation. (2015). StrongHouse Unit #111 14620 64 ave, Surrey, British Columbia. Flexi Commercial. (2015). Lease gym and fitness equipment - FlexiCommercial. Retrieved from Flexi Commercial: https://www.flexicommercial.com.au/industry-focus/fitness Muscleforlife.com, (2015). Custom Meal Plans | Muscle For Life. Retrieved 13 July 2015, from https://www.muscleforlife.com/services/custom-meal-plans/ Financing Options. (n.d.). Retrieved July 12, 2015, from http://shop.fitnessdepot.ca/Services.aspx?section=financingoptions