Sample Business Plan for Gymnastics Organization in Vaughan, ON.

Table of Contents

Executive Summary.................................................................... 4

Key Milestones.............................................................................. 4

Mission......................................................................................... 5

Objective...................................................................................... 5

Company Summary..................................................................... 6

Company Ownership...................................................................... 6

Start-up Summary......................................................................... 6

Start-up Requirements................................................................. 6

Services........................................................................................ 7

Private Lessons............................................................................ 7

Parent and Tot Gymnastics.......................................................... 7

Preschool..................................................................................... 8

All on my OWN............................................................................. 8

Tiny Little Tots............................................................................. 8

Junior Tots................................................................................... 8

CheerStarnastics......................................................................... 9

Star Gymnasts............................................................................ 9

Boys Tumbling............................................................................. 9

Teen Cheer Star Gymnasts........................................................ 10

Birthday Parties......................................................................... 10

Field Trips................................................................................... 10

Market Analysis Summary.................................................... 10

Market Segmentation................................................................. 11

Urgency....................................................................................... 13

Strategy and Implementation............................................. 13

Competitive Edge........................................................................ 13

Sales Forecast........................................................................... 14

Milestones.................................................................................. 15

Schedule for Milestones............................................................ 16

Management............................................................................... 16

Financial Plan.......................................................................... 17

Financial Assumptions............................................................... 17

Break-Even Analysis................................................................... 17

Projected Profit and Loss......................................................... 17

Projected Cash Flow.................................................................. 17

Projected Balance Sheet............................................................ 17

Executive Summary

Vaughan Superstar Gymnastics will serve children and teens from the Greater Toronto Area, specifically targeting locals from the Vaughan area. Our services will help build stars, disciplined and focused individuals with a greater chance of health improvement than the general public.

Vaughan Superstar Gymnastics will prepare each student with the core techniques and foundations of gymnastics, followed by total body conditioning and leading into more difficult and challenging tasks. Creative teaching methods are what sets us apart from the competition. We believe in creating stars of children as they become rigorously dedicated to their own success physically and mentally. We believe in them, in our children because they prove day after day that are teaching techniques are solid and successful.

Our teachers are at the core of our success. They will be trained with unique and personalized methods in order to transfer the knowledge acquisition onto their students. They will be provided with intense training, core techniques, and unique styles of training in order to succeed with each and every child on a physical but also mental level.

Owners Chastity and Selena Jackson have been long-term, professional competitive gymnasts. We have a long history with gymnastics, starting from childhood and ultimately ending in this plan today to open one of the biggest, most successful gyms in the GTA as of 2014. Together, there are over 25 years of experience; we understand what our customers want from their training and what their parents want for their money. We understand that sometimes it is best to follow your instincts and teach each child, as they are demanding it. Each child is different and learning also varies, therefore, it is important that we adjust to each child’s needs. There is a definite market and we are convinced that we will match them to a ‘T’.

Key Milestones

Our main keys to success include:

Maintaining a reputation that is untamed within the community.
Always have competitive pricing, offering less than any other competitor in the area.
Always maintaining flexible hours of operations.
Offer secure and ample parking options.
Targeting traffic areas with maximum exposure.
Designing the facilities to handle large audiences and curb any overcrowding.
Personalize all relationships with customers to keep them for the long-term.

We will minimize certain risk factors by:

Initial funding of the company will be able to sustain the first year of operations.
There will be a low overhead by using multi-skilled personnel.
Strong customer service and marketing techniques.
Eliminate any extra expenses and collection costs by offering all types of payment methods available include online transfers and Pay Pal.

Mission

Vaughan Superstar Gymnastics will offer a place where people can learn gymnastics, meet new people and have fun in a secure and confortable environment. At the core of our instruction is the children and teen’s physical and mental conditioning. Our instructors have access to the most up-to-date and continual training techniques and tricks. Vaughan Superstar Gymnastics will offer diversity in all and maintain a non-smoking and alcohol/drug free environment.

Objective

The objectives at Vaughan Superstar Gymnastics are:

Exceed at least 60% of the gym’s capacity within the first year of operations.
Acquire at least 300+ long-term customers.
Increase membership by at least 20% by the end of the second year.
Provide gymnastics training at all levels including competitively.
Provide constant training, benefit packages and incentives for staff and customers alike with the goal at having long-term commitment.

Company Summary

Vaughan Superstar Gymnastics to be located on 1701 Creditstone Road located in Vaughan, Ontario as of January 20, 2014 will provide a confortable, friendly environment where learning will be priority and all levels of gymnastics will be taught. It will offer private gymnastics instruction, group classes, birthday parties, sleepovers, drop-in sessions, cheerleading classes and physical conditioning classes. Gymnastics will be the main sport exercised under this facility as it has become one of the most popular sports worldwide with public exposure in the Summer Olympics. As a result of this, the gym can expect to have a large number of children enrolled as soon as the Olympics are done. Vaughan Superstar Gymnastics will appeal mainly to those between the ages of 1 and 18 years old, all types of gymnastics and/or sport backgrounds, children and parents looking to train their children for success. With creativity at the core of our lessons, each child will benefit from coming to one of our classes.

Company Ownership

The company will be located in Vaughan, Ontario in Canada. It will be owned in partnership between Chastity and Selena Jackson. It will be incorporated and with limited liability for each of the primary owners.

Start-up Summary

The start-up expenses are focused on the equipment and padded floors required for the gym. We are buying about $40,000 worth of merchandise and long-term assets as well as $30,000 for equipment, which will need to be replaced every three to four years.

Start-up Requirements

Expenses:

Legal @ $1,000

Stationary @ $500

Insurance @ $1,000

Rent @ $2,000

Computer @ $100

Equipment @30,000

Other @ $2,000

Total Start Up Expenses: $36,600

Assets:

Cash Required @ $10,000

Long-Term Assets @ $40,000

Total Assets: $50,000

Total Requirements: $86,600

Services

Vaughan Superstar Gymnastics will offer both Recreational and Competitive Gymnastics. However, the latter is per invitation only depending on the skills of the student.

Private Lessons

This option will offer any and all students the possibility of training one-on-one with one of the best instructors in our facility. They will be given all of the attention and skill building will be the main goal. Although it is not guaranteed, students who have more private and individual classes are more likely to enter the competitive arena at our company as they will be more dedicated, more technique-oriented than students in group classes.

Parent and Tot Gymnastics

This class is a wonderful way for parents to experience the world of gymnastics through the eyes of their toddler. Children take part in a variety of fun activities along with mom and dad. Toddlers will begin building independence, developing gross motor skills and improving balance all while creating fun memories!

Schedule

Monday 10:00 - 10:45 / 4:15 - 5:00

Wednesday 9:30 - 10:15 / 5:45 – 6:30

Thursday 10:30 – 11:15

Saturday 9:00 - 9:45

Sunday 9:15 – 10:00

Preschool

All on my OWN

This class is designed for our little members who have participated in our Parent and Tot classes before. Parents who are interested in this class should be confident that children will participate without as parent in the gym and are able to follow basic instructions and circuits.

Schedule

Monday 10:50 - 11:35

Thursday 4:15 - 5:00 / 6:05 - 6:50

Saturday 10:50 - 11:35

Tiny Little Tots

Children will begin to learn the basic fundamentals of gymnastics. They will explore the different apparatus while developing muscle awareness and balance. This is a great introductory class to the world of gymnastics.

Schedule

Monday 10:00 - 10:45 / 5:00 - 5:45

Wednesday 10:30 - 11:15 / 6:30 - 7:15

Thursday 9:30 – 10:15 / 4:15 - 5:00 / 5:05 - 5:50

Saturday 9:50 - 10:35 / 10:50 - 11:35

Sunday 10:15 - 11:00

Junior Tots

Children begin to develop confidence and coordination as they become familiar with the basic positions and skills involved in gymnastics. They will participate in activities on all the gymnastics apparatus. This is the perfect age to get involved in the sport of gymnastics!

Schedule

Monday 10:50 - 11:45 / 5:00 - 5:55

Tuesday 4:45 - 5:40

Wednesday 4:45 - 5:40

Thursday 9:30 - 10:25 / 5:05 - 6:00 / 6:05 - 7:00

Saturday 9:50 - 10:45 / 11:45 - 12:40

Sunday 9:15 - 10:10

CheerStarnastics

Star Gymnasts

Each gymnast will begin to move through a level system specific to his or her abilities. Children will learn specific skills on all apparatus and build their self-esteem as they accomplish new things. This is a wonderful way to promote fitness and fun in our youth!

Schedule

Monday 6:00 - 7:30

Tuesday 5:45 - 7:15

Wednesday 4:15 - 5:45

Thursday 7:00 - 8:30

Saturday 11:45 - 1:15

Sunday 11:05 - 12:35

Boys Tumbling

This class incorporates skills and positions specific to men’s gymnastics while building strength and fitness. It is an excellent way to build self-confidence while developing muscle control and skills. This class allows the “boys to be boys”.

Schedule

Thursday 7:00 - 8:30 p.m.

Teen Cheer Star Gymnasts

This class is a wonderful way for teens to meet new friends and keep in shape. Teens will learn about body awareness and gain self-esteem as they work to achieve new skills.

Schedule

Tuesday 7:15 - 8:45 p.m.

Birthday Parties

This is an excellent way to get everyone involved with other children. The parties are about an hour long and will include all the equipment in the facilities including the trampoline and the games. There will be food and refreshments provided as well as a cake and gifts for the birthday girl or boy. There is a maximum of 20 children allowed in the facility at once for birthdays.

Field Trips

These trips will be based on gymnastics concepts. From Olympic dreams to gymnasts who were injured or retired, these trips will look into museums, schools, direct interviews with people, and more in order to infuse the idea, values, concepts, techniques, and customs of the gymnastics world, its history and etiquette.

Market Analysis Summary

Vaughan Superstar Gymnastics is a business that becomes necessary in today’s fast-spaced lifestyles. All children need to learn the art of exercising, become used to it, and understand the intricate needs and techniques behind physical conditioning. However, as a business it is imperative that we target a specific population, target their needs and demands and satisfy them. We have produced the necessary tools to acquire customers from all over the province of Ontario. We have acquired a website, a domain is ours as of now, we have a running and very much liked Facebook and Twitter Accounts (500 likes in total), and we have created amazing marketing resources that not only impress our clients but work in getting them to like our concept of gymnastics without even having set it up yet. We have customers already interested in our idea, concept, courses, and facilities as of now, without a structural infrastructure, thus the reason why this company is in so much pressure to retain that and start operations by January 20, 2014.

Market Segmentation

According to Statistics Canada, as of 2011, there is a small percentage within the population (13.7%) that is considered over 65 years of age. That would imply that the rest of the population (< 75%) is potentially our customer[1]. This will include a parent, a child, spouse, friend, aunt, uncle, sister, cousin, brother, godmother/father, and so forth. All of these segments will either refer someone to our services or will personally use our services.

Our business is one of the most profitable businesses yet. This has been realized because of the amount of families living in Ontario and Canada in general. Please take a look at the following graph, it explains that approximately 41.1% of the population in Canada as of 2001 was made of family units, that means married couples with children at home. These are our customers, the children at home that need to spend their energy on a fulfilling task: gymnastics. There are also adults that would like to join an exercise regime without having to attend an ordinary gymnasium. Our facilities will provide the exercise, the environment and the fulfillment they are looking for. The is a 29% chance of this happening as this represents the amount of people that represent young adults, married but without children at home.

The Ministry of Finance of Ontario completed a study that projected the possible populations in Canada as of 2036[2]. Interestingly, this study exposed many pros for our company and industry in general. There is a proposal presented in the study that predicts the population of Canada to continue rising, for more families to live in the country from now until 2036. Approximately some 5 million more people will live in the Province of Ontario alone by 2036. This helps us to determine that there is little to no possibility of coming short of clients as the population will continue to grow and so will the industry of gymnastics.

As this next graph will show, the study predicted that the increase in population will raise the number of clients under the age of 18 and over the age of 18 interested in joining the gymnastics experience. Please note that this is a prediction abut coming from such a reliable source, there is no doubt that this is what Canada is preparing for.

Urgency

Almost a whole third of Canadians are overweight, specifically in the population between the ages of 5 and 17. This is exactly why our main target audience are these individuals because they are the most at risk of becoming physically unmotivated, obese and therefore, unhealthy. In fact, there are approximately 31% of individuals within this population range – or 1.6 million Canadians - are medically considered obese in Canada. This is alarming and therefore deserves outmost attention. As of 2011, among children from ages 5 to 11, 19.5% were considered obsess and girls were three times more likely to be obese than their male counterparts.

According to Dr. Karl Kabasele, child obesity can be fulled by many of today’s convenient foods[3]. For instance, McDonalds, Popeyes, etc. all offer the nutritional values in their stores and so they continue to be legal. But their foods are certain to cause obesity and its consequential diseases (i.e., stroke, diabetes, etc.). Although there is acknowledgement of this, legislature will not give in because of the immense demand for it. There is certainly no culture turnaround when it comes to these foods and therefore our population will continue to either a) continue exercising; or b) continue growing obese. These seem to be the only two plausible outcomes.

Strategy and Implementation

Vaughan Superstar Gymnastics is looking into offering children the best environment and adults the most confortable exercise facility. We will personalize all of the attention to each and every one of our customers. We will enjoy through chats on Twitter and post a variety of offers through Facebook. However, the two main strategic techniques that will be used are:

Helping parents feel confortable with the environment in which they are leaving their children and with faith that our instructors are helping them to the outmost of their abilities.
To make it an educational environment where students learn of physical conditioning but also mental and emotional balance and confidence.

Competitive Edge

Our friendly staff, low prices and dedication to gymnastics will be the main edges we will hold as a company in this vast industry. The attention will be on keeping the low overhead with multi-professional instructors, keeping the facility rent low with a good infrastructure to protect all students and having one of the best instructional curriculums in the city. Strong classes focusing on technique teaching will set us apart. Unlike most private gyms where the focus is on highly competitive students, we will focus on all ranges of demands and needs as per the clients’ capabilities.

Sales Forecast

The sales forecast shows that there will be an income of approximately $211,603 and a cost of sales that range within the $64,809 to $70,000 range. Our sales include the number of sales made by a private gym for which we worked in the years prior. It is the understanding that for the first three years, the business will submit to constant growth in the number of students and this will vary per year. The first year in the forecast is based on about half of the potential for our facility. I believe our numbers will exceed those than in the private gym where we worked before. I see no reason why this data would be accurate.

Our cost of sales includes the hourly salaries that will be paid to staff. This rate will vary depending on the number of children that will be attending each of the classes. The costs also include the teaching hours put in by the owners, which is about 50% of the class fee. There will also be a receptionist but her salary is calculated separately from the instructors’.

Sales

Parent & Tot

$6386

$8818

$11250

Preschool

64,289

89,515

114,200

Girls

58,131

80,266

102,400

Boys

11,637

16,059

20,480

Tumbling & Adults

26,113

36,057

46,000

BDay Parties and FTrips

7,806

10,778

13,750

Cheers

14,192

19,596

25,000

Advanced/Competitive

22,509

39,255

56,000

Total in Sales

$211603

$300,344

$389,080

Cost of Sales

Preschool Instructors

$21,365

$29,500

$50,180

Beginner Instructors

28,764

39,715

50,664

Advanced/Competitive

14,680

23,540

32,400

Sub-Total Cost of Sales

$64,809

$92,755

$133,244

Milestones

We understand that to be successful there is a need to be focused, dedicated, persevering and always organized. Hence, we have made sure that throughout the entire beginning stages, there are milestones clearly noted and delegated to specific experts in order to achieve them all one by one. First, we are focusing on the opening of the facilities, which would include rent, deposits, utilities, equipment, furniture and so forth. There is also the registration process of classes with invoices and fees created to match market standards. There is also the need to train our staff prior to commencing any classes or operations in the facility as we are focused on starting successfully in order to never end operations at this location but in fact, franchise and spread throughout the province of Ontario and the country of Canada. There is a need to set-up all equipment, make sure all permits are assured and that all planning is done with the right strategies in mind such as demand on schedules, best time for class and other activities and so forth.

Schedule for Milestones

Milestone

Start

End

Budget

Manager

Department

Lease Negotiation

1.20.14

1.25.14

Both

TBA

Planning Classes

1.25.14

1.27.14

$1,000

Both

TBA

Purchase Equipment[4]

3.20.14

3.28.14

$70,000

Both

TBA

City Permit

3.25.14

3.27.14

$200

Chastity J.

TBA

Legal

3.25.14

3.15.14

Selena J.

TBA

Set-up Equipment

3.28.14

3.31.14

Both

TBA

Train Staff

4.01.14

5.01.14

$4,000

Both

TBA

5.01.14

6.01.14

Both

TBA

Opening

7.01.14

7.01.2014

$2,000

Both

TBA

Total

$77,200

Management

Selena and Chastity Jackson will be the two main managers in charge of the operations at Vaughan Superstar Gymnastics. This will be of benefit to the company since it will:

Bring in Clients that are looking for expertise and excellence.
Bring in Clients with whom we have worked before.

We both have great sales experience as well as a complete marketing team working for us as well as the use of private and public spheres of our community. We also have an extensive record working in management positions, finances, administration and gymnastic instructors. Each of us will teach approximately 20 classes per week and handle most of the managerial, accounting, bookkeeping and administrative duties of the company. There will also be a receptionist. It is expected that the company will invest in instructional personnel in the future, after the first three years of operations.