Business Plan Summary 3l4j40

Business Plan Of KO GYM And MMA House

Submitted By:Bidhan Chandra Lohani

Submitted To : Sashi Raj Bajracharya

Shirish Khanal Aakash parajuli Prabin gyawali Sushant Datta Mishra

Financial plan Proposal summary KO GYM and MMA house will be funded by the partners who agree upon themselves to start a business . each partner will contribute to 25 lacs and the rest of the amount needed to run the Centre will be obtained from the bank. The amount invested will be used to buy the assets the centre require to run the business and as well as buy the inventories too. It will be difficult to pay the employee salary and expenses from the first month income. So we will use the cash contributed by the 5 to pay the salary of Trainers and the other staffs as well. And we will be taking a land on lease for 25 years by forming a contract with the owners and agreeing upon to no increment in rent of land for next 10 years and we will be constructing Hall of our own requirement on that land, where we agreed to return the land along with the Hall to the owners of it after the end of 25 years . With the amount invested in the Business we are hoping to achieve the profit margin of above 42 % in the next 3 year through our sales.

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1. Table of content Table of Contents 1.

Table of content .................................................................................................................................... 3

2.

Executive Summary ............................................................................................................................... 5 2.1 Mission ................................................................................................................................................ 5 2.2 Objectives............................................................................................................................................ 5

3

Business Description ............................................................................................................................. 6 3.1 Firm Identification .............................................................................................................................. 6

4.

3.2

Business history ............................................................................................................................ 6

3.3

Management And Key People ..................................................................................................... 6

3.4

Products and services ................................................................................................................... 6

Operating Plan ...................................................................................................................................... 7 4.1

Firm location ................................................................................................................................. 7

4.1.1

Location of customer ............................................................................................................ 7

4.1.2 Location of the supplier ............................................................................................................... 7 4.1.3 Access to transportation ............................................................................................................... 7 4.1.4

Community features ............................................................................................................. 7

4.2

Facility Requirement ..................................................................................................................... 7

4.3

Layout ........................................................................................................................................... 8

5 Inventory management and control. ........................................................................................................ 9 6 Quality control and customer service ........................................................................................................ 9 6.1

Improve quality ............................................................................................................................ 9

6.2 Effective TQM Program ............................................................................................................... 10 6.3 Tools of TQM ............................................................................................................................... 10 6.4 TQM in knockout MMA center .................................................................................................... 11 7

Organizational plan ............................................................................................................................. 11 7.1 Legal form of Ownership .................................................................................................................. 11 7.2 Management Philosophy ................................................................................................................... 12 7.3 Organization Structure ...................................................................................................................... 12 7.4 Key people Assessment/Job description ........................................................................................... 12

9.

Industry Analysis ................................................................................................................................ 13

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9.1 Industry Description.......................................................................................................................... 13 9.2 Industry Competition ........................................................................................................................ 13 9.3 Industry Growth and Sales Projection .............................................................................................. 13 10. Market Analysis ..................................................................................................................................... 15 10.1 Target customer .............................................................................................................................. 15 10.2 SWOT ANALYSIS ............................................................................................................................. 15 11 Financial Plan ......................................................................................................................................... 18 11.1 Pro Forma Income Statement ......................................................................................................... 18 11.2 Pro Forma Balance sheet ................................................................................................................ 19 11.3 Ratio Analysis ................................................................................................................................. 20 12 Sample of Questionnaire for survey ..................................................................................................... 21

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2. Executive Summary The KO GYM And MMA Center is a thriving business but is also one of the only Full MMA focused clubs inside the valley . Most of our will be under the age of 30 and have young children and old peoples as well . The center will try to enroll 400 in its 1st year . A center hip is Rs.2000 a year for GYM. Rs1500 a year for Jumba and Rs 5000 a year for the MMA. The KO GYM and MMA Center wants to add an additional 300 with over the next 5 years year. And this will be achieved through the following means: 

Creating an Ultra safe environment with properly trained staff.



Making Gym And MMA group more friendly.



Providing the new member with the instructions and care.



Ensuring the health and safety of the .



Ensuring the Fun factor is high in order to generate strong word of mouth marketing.

More and more Nepalese are looking to pay for experiences rather than just products. Ko Gym and MMA will focus on providing each customer with an experience that will make them want to come back for more. KO Gym and MMA will be a Limited Liability Company, with start-up funding provided in its entirety by the owners.

2.1 Mission KO’s mission is to provide patrons of all ages a fun, safe environment in which to exercise, socialize, and gain new mixed martial arts skills. By focusing on these fundamental qualities, the friendly and knowledgeable staff will create an environment that is welcoming to wanting to try MMA for the first time.

2.2 Objectives KO plans on achieving three objectives:

1. Sales in the first 12 months of over Rs 4000000 . 2. Sales growth of at least 5% in the second and third years of operation. 3. Become the primary center for GYM and MMA in the valley.

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3 Business Description 3.1 Firm Identification Knockout MMA centre specializes on providing a Mixed Martial classes for the adults as well as for the kids. Our firm mainly focuses on providing a service rather than providing a Product. So our firm falls under the category of Service providing industry. Our KO MMA and gym house also focuses on providing the regular weight loss training, regular boxing classes to the adults as well as for the kids and zumba classes for the ladies as well. 3.2 Business history There are few MMA Centre inside the valley. But these are only providing the Judo classes in the name of providing MMA to the peoples. And our Knock Out MMA centre doesn’t only provide Judo training but other many as well such as: Maui Thai and Brazilian Jui Jutsu. So it is plausible to say that our Ko MMA is the Only One MMA Centre which provides Real MMA training to the people. 3.3 Management And Key People Key people for this firm will be the stakeholders of this firm such as the suppliers of various equipment for this firm, trainers, health inspectors, one who look over the finance of this firm , inventory control and management head, receptionist who handles the of the people and look for the incoming and outgoing of the people from the firm. 3.4 Products and services As it is a MMA center, so we will be heavily focused on providing service to the customer instead of product. And our service includes:

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

Three months weight loss program.



Strength building program



Regular MMA classes for adult and kids separately.

4. Operating Plan 4.1 Firm location Bhaisipati is the location of the firm that has been selected for the training people with

the

peaceful surrounding and environment. And the rent in the area is relatively low other places. And the rent expenses amount to around Rs.500000 in that place. 4.1.1 Location of customer Customer will be the people mainly from Lalitpur area but the interested people

around the

city can the gym. 4.1.2 Location of the supplier Location of the supplier is not fixed at all suppliers chosen for providing equipment will be on preference basis. For e.g.:- supplier who provide dumbbell for much lower cost will be our leading supplier for that particular equipment. 4.1.3 Access to transportation Location that we have selected approximately one K.M outside the ring road area. And there are plenty of vehicle, be it private or public, found around that location. So there is good access of transportation facility. 4.1.4 Community features Bhaisipati is a peaceful residential area. And mostly people of upper middle class and higher class reside in that area. 4.2 Facility Requirement The facility that we are going to have needs a hall in order to train strength building and for regular MMA class. We are going to provide locker facility for each and every member of MMA classes. So, that they can put their personal material inside it. We also need a power backup. So, inverter for light. And for refreshment to member we are going to put Music system and T.V inside the facility.

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4.3 Layout Our main focus will be on MMA classes and so will be using half 1st floor mainly for MMA classes. And for the ground floor we will be using it as weight loss and strength building activities, and we are going to have our offices divided into 3 part: one for the Finance department other for the Inventory management Control Department and last is the Receptionist Office.

Ground Floor

Weight loss Classes Zumba classes

Finance

Reception

Inventory Control Room

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Boxing Classes

1St Floor

Zudo

Muyay thai

Brazillian Jiu Jutsu

Ring

Ring

5 Inventory management and control. To manage inventory , one requires the great deal of time and money. And in Our KO MMA and GYM house managing inventory is not a difficult task. There are mainly 2 inventories : one related with the machines and equipment of GYM and other is the protein shakes and other material related with the consumption of people inside the GYM house. The protein shakes and steroids ,that people inside the gym house consumes on daily basis, there are items in inventory for 15 days that can lasts. And re –order point for such items are 4 days prior the ending of the inventory. And inventory management related with that of GYM equipment is not a great deal of task, Gym equipment can lasts in inventory for a very much long time but the problem of rusting can be a serious problem. So the maximum use of oil and grease on such equipment should be done so that they do not get jammed or rust easily

6 Quality control and customer service 6.1 Improve quality By being faster in delivering the services as well as by giving response to the customer we can increase our quality. And by providing services virtually, that is providing a

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queries teaching

technique of MMA to the people through may also help in the improving the

quality of the

firm or center as well. And as it is for the upper middle classes and higher classes of people. So basically changing higher prices initiates, the better quality if the service. And also by having experience at reputed trainers, we can improve our center reputation, which in term help increasing our quality as well, in hence increases our productivity.

6.2 Effective TQM Program Our knockout MMA center is a service center rather than the manufacturing center. And to use PDCA cycle as an approach to change an problem solving is very much at the

heart of Knock

out MMA center PDCA include four phases:

Plan: - Identifying and analyzing problem.



Do: - Developing and testing potential solution.



Check:- Measuring how effective the test solution was



Act: - Implementing the improved solution fully.

6.3 Tools of TQM To solve the problem, first we will use Ishikawa diagram to find out the potential causes of the problem, and then we will move on solve the problem for e.g.

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Method Too many trainings in a day Improper handling of equipment

Man Lack of trainee Attention Improper Counselling by Trainer

Trainee Injuries Problem In KO MMA Dumbells Weight Improper Grip of the Material Rusty Pulley Wheels and bearings

Material

Machine

6.4 TQM in knockout MMA center Our MMA center mainly, is a service center, and we will be using highly trained official to provide training almost zero percentage chance of error from the trainers side we will have different shift for adult, old and as well as for kids too. Classes will be run regularly, and our management team and trainer will show proper courtesy towards the people and any quires a people will handled properly in no time.

7

Organizational plan

7.1 Legal form of Ownership It’s a partnership firm created with mutual consent of various partners.

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7.2 Management Philosophy As our company is service oriented we largely focus on our customers. Their happiness and satisfaction are our major concern. The success of our firm is based on our customers. We've seen a lot of change in the fitness industry over the years, but our philosophy has remained the same: to offer the best equipment, range of classes, knowledgeable staff and professional advice in a welcoming environment, that helps keep our motivated. 7.3 Organization Structure

Manager

Receptionist

Inventory Control management

Finance Department

Trainers

Staffs

Health inspector

MUay Thai

Brazillian Jiu jutsu

Judo

Boxing

Jumba

7.4 Key people Assessment/Job description We will have total of 16 people working for us of which we will have to pay 13 people working at the KO GYM and MMA house. Receptionist will look towards the inflow and outflow of people at the GYM and MMA centre and she/he will also be responsible for collecting the from the people about the Centre. To control over the inventory we will have our very own founder of the GYM house, he will look toward the inflow and outflow of the gym equipment and the protein shakes and the steroids. There is one health inspector: and as a health inspectors we have assigned Physiotherapist whose main duty is to look toward the injuries people obtain at the MMA and GYM centre. To control the finance we have one of our Founder member, who looks towards the inflow and outflow of cash from the centre. There are total 9 trainers: 3 for the MMA , 3 for the JUmba and the remaining 3 for the weight loss and strength building classes. There are 2 staffs, one will be the cleaner and the other will be providing the necessary equipment and refreshment for the other key personnel

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Payroll Expenses Of KO MMA AND GYM House (Assuming 10% Annual increment) Section

No Of personnel

Monthly

2016

2017

2018

MMA

3

20000 each

Rs.720000

Rs.792000

Rs.871200

JUmba

3

15000 each

Rs.540000

Rs.594000

Rs.653400

GYM

3

15000 each

Rs.540000

Rs.594000

Rs.653400

Health inspector

1

25000 each

Rs.300000

Rs.330000

Rs.330000

Receptionist

1

14000 each

Rs.168000

Rs.184800

Rs.184800

Staffs

2

10000 each

Rs.240000

Rs.264000

Rs.264000

9.

Industry Analysis

9.1 Industry Description We are service oriented organization. Our main strength is how service is provided to our customers. The type of service we are providing is different than others or we may call it a totally new concept of industry in Nepal. Our organization is a combo of gym house, fitness center and mix martial arts training house. 9.2 Industry Competition We do not have any competitors who can directly impact our business as we are providing new type of service experiences to the customers. Although gym houses, and fitness service centers can somewhat affect our business. We have listed Patan Gym, Rage Fitness Center and Hardik Fitness as our counterparts. They do not provide the same service as of ours but somewhat similar services like gym house, yoga, Zumba etc. which may affect our business. 9.3 Industry Growth and Sales Projection We have immense scope in this sector because nowadays people are becoming more fitness conscious. There’s an emerging market of fitness service and extra-curricular activities for both health and security reasons. As our targeted customers are middle class and upper classes who 13 | P a g e

also can afford our services and are interested towards it. The growth in this sector is not increasing at a rapid pace but it’s increasing at certain rate. It’s slow but it is in increasing trend. Every year there is increase of certain rate which is very promising for to start business in this sector. We conducted a small survey at Hardik Fitness where we find: 1. full time (who has subscribed various packages and are committed) 2. Partial (who visits occasionally) 3. who visits at certain intervals Every year there is 5 to 6% increase in the full time customers. Sales is also dependent on the location i.e. where the service is being provided. As we have decided to provide our service in Bhaisepati, Lalitpur which is a VIP area. The residents of there are mostly upper class and middle class who suits our business. To increase the flow of customers we should provide various service packages, offers, gift hampers etc. all at suitable price range.

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10. Market Analysis 10.1 Target customer The market for KO GYM and MMA reflects the demographics and standard of living in much the same way that the major gyms and personal training facilities are segmented. Below are listed market segments based on the usual demographics seen in today's fitness industry: 

Age Range 20-60: It is known that in the fitness community, those clients looking for personal training and willing to spend the money for it, are between the ages of 30-60.



Yearly income of greater than RS,2400000: Most clients are more willing to pay a for one-onone coaching when they make more than RS.2400000.



% of population with gym hips: The latest study shows that 15% of the population has a gym hip. KO GYM and MMA tend to capture 1-3% of the population.



General population within a 5-mile radius of the facility: To run a successful facility, we need at least 50,000 residents to generate a sufficient number of for a profitable franchise.



Athletic males: KO GYM and MMA attracts active male athletes.



All females: Conversely, KO GYM and MMA attracts all types of females. Females are more willing to try new things and are less worried about failing

10.2 SWOT ANALYSIS The SWOT analysis provides us with an opportunity to examine the strengths and weaknesses BuffUp Lake Oswego must address. It also allows us to examine the opportunities presented to BuffUp Lake Oswego as well as potential threats.

Strengths: 

Knowledgeable and friendly staff: Our staff consists of professionally trained personnel that have a true ion for helping the community and caring for the needs of its . This becomes apparent when you look at our staff's professional background. We have proven that we are willing to go above and beyond to suit the needs of our customers.



Top of the line equipment: Our customers will enjoy the finest in fitness equipment. 15 | P a g e



Online presence: Each member will have access to shop, schedule and track fitness progress online. All scheduling will be automated for fast and efficient communication with our .



Fun, family ambiance: When you walk into our facility, you will feel the family atmosphere. Our will feel comfortable and eager to cheer each other on. Our facility will give the athlete an old school feeling, making them feel as if they are a part of an early "Rocky" movie. No machines no mirrors just bumper weights, mixed martial arts and many Olympic exercises and other Jumba classes .



Clear vision of the market need: Ko GYM and MMA knows what our customers have been missing at their current gyms. We know what exercises work and we know what keeps people motivated. In return, we know we will create very loyal, ionate .

Weaknesses: 

Newness: Although KO GYM and MMA has built a loyal following, But our brand is not yet a household name.



High hip fees relative to traditional gyms: Our services may not appeal to potential customers with a limited budget. Of course, our services are more affordable than personal trainers, but we will need to identify an engage the large mid-range customers.

Opportunities: 

The growing population interested in group fitness: In the last couple of years, we've found that there is a huge population of individuals that are more interested in group workouts than going to the gym alone.



Social bonds fostered by group workouts: Our exercise programs are building personal bonds and friendships. These bonds have led to an internet-based fitness community covering more than 720 facilities. It has become a viral marketing phenomenon, and are sharing this excitement with new people every day.



Growing market: KO GYM and MMA is a relatively new brand in the marketplace. We have a foundation and a reputation within the diehard fitness community, but a significant percentage of our target market has still not been introduced to our services.



Internet possibilities: We plan to create an online store and build our internet fitness community.

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Threats: 

Declining economy: Many people are becoming increasingly conservative with how their money is being spent.



Copycat training services by gyms and independent trainers: Certainly other services will try to mimic the success of KO GYM and MMA, but we are confident that our proprietary programs and national reputation will limit the impact of copycats on our bottom line.

.

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11 Financial Plan 11.1 Pro Forma Income Statement Pro forma Income Statement of KO GYM AND MMA CENTRE 2016

2017

2018

Sales

6120000

6426000

6747300

Installation Cost

15000

10000

0

Gross Margin

6105000

6416000

6747300

Payroll Expenses

2400000

2520000

2646000

Advertising and Marketing

150000

100000

100000

Depreciation

57500

62500

62500

Rent

500000

500000

500000

Utilities

36000

38000

40000

Total Operating Expenses

3143500

3220500

3348500

Profit Before Interest and Tax 2961500

3195500

3398800

Expenses

(2.5%)

Tax (13%)

384995

Net income

2576505

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415415 2780085

441844 2956956

11.2 Pro Forma Balance sheet Pro Forma balance Sheet Of KO GYM AND MMA CENTRE

Assets

2016

2017

2018

Current Assets Cash

4120000

4926000

5081300

Prepaid expenses

899000

689500

700000

Total Current Assets

5019000

5615500

5781300

Fixed Assets

2300000

2500000

2500000

Building

6000000

6000000

6000000

Accumulated Depreciation

(57500)

(120000)

(182500)

Total Long-Term Assets

8242500

8380000

8317500

Assets Total

13261500

13995500

14098800

payable

2000000

2300000

2200000

Income tax payable

384995

415415

441844

Retained earning

2576505

2780085

2956956

Capital

8300000

8500000

8500000

Total Liabilities and Capital

13261500

13995500

Long-term Assets

Liabilities and Capital Current liabilites

Owners Equity

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14098800

11.3 Ratio Analysis Ratio analysis Of KO GYM And MMA 2015

2016

2017

Profit margin

42%

43%

43.82%

Return on Assets

19.42%

19.86%

20.97%

Current Ratio

2.10

2.06

2.188

Quick ratio

1.72

1.81

1.899

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12 Sample of Questionnaire for survey

SURVEY QUESTIONNAIR FOR GYM AND MMA Name(optional)………………………………………… Gender Age group

1. Male 18-20

20-24

2. Female 25-29

30-35

36-40

40+

Questions:1.

How much are you interested in fitness and martial arts? i. Not interested ii. Interested

iii. Highly interested.

2.

Are you clear about the concept (advantages) of gym/MMA? i. Yes ii. NO

3.

How much distance you willing to travel from home to gym house? i. 500m ii. 1km iii. 1.5km iv.2km

4.

How much are you willing to spend for fitness purpose?(In Rs. per month) i. 1000 ii. 1500 ii.2000 iv.2000+ 5. Have you ever been hip of any fitness club? i. Yes ii. No 6. How long do you spend in gym house in an average visit? i. 0-30 min ii. 31-60min iii. 61-90min iv. 90+ 7. Does your fitness club provides a personal trainer? i. Yes, included with hip fee. ii. Yes, with additional charge. iii. No. 8. How satisfied are you with the value for money offered by the hip of your health club? i. Excellent. ii. Good.

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iii. iv. v.

Average. Bad Very Bad

9. Will you change your current health club if you get another fitness center with more facility and good environment? i. Sure, I am searching for that. ii. No, I am satisfied with my current health club. 10. Do you want to give any personal suggestion for the new fitness center that is going to be started?

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