1 . The Executive Summary (2-3 pages) 

a. Quantum Strength, Dallas TX, (214) QUA-NTUM (214) 782-6886

b. Gabrielle Hunt (Dallas, TX 469-335-3709) 

ii. Omar Sepeda (Dallas, TX 214-555-5555) 

ii. Saeed Beyan (Dallas TX, 214-575-8738) 

ii. Sana Akkad (Dallas, TX,

ii. Kritik Thapa (Dallas TX,

c. A modern gym that includes a variety of fitness equipment and social areas to eat and chat after your everyday workouts. Our gym includes charging stations within our equipment, healthy food and drink options, along with therapy rooms (pools and mini jacuzzis) Our competitive advantage is a comprehensive range of services, backed by proven scientific methodology.

d. The fitness industry is expected to grow about 3.+1% per year and projected revenues to top  $434.74 billion in 2028. Roughly 39% of Americans hold gym memberships. Texas alone has a total of 7039 gyms and is expected to grow at a 3.3% rate a year. 

e. The location of our gym, our business plan, promotion, investments, qualified staff members, staying in connection within the community (christmas drives, attending sports games, and leverage technology will result in a successful company

f.
Omar– (owner) designing and constructing the floor plan as well as where the gym is located. He also manages and motivates the team in order to keep a great positive relationship with one another. Lastly Omar oversees the marketing and financial aspects of the business.
Gabrielle (front desk) helps promote our judgment zone by incorporating our core values.
Sana (Member services representative) is responsible for creating a positive member experience by providing a superior level of customer service to our members and guests.
Saeed (Maintenance technician) taking responsibility for all of the manufacturer  equipment to maintain the physical conditions of fitness and the overall appearance of our fitness center.
Aaron (General manager) is in charge of our recruitment process. 

2. Vision and Mission (1/2-1 page)

a. Entrepreneur’s vision for the company-we hope to be able to provide a comfortable and modern environment for our members and grow to one day be in larger and more updated facilities across Dallas

b. “What business are we in?”- health improvement

c. Values and principles on which the business stands- being inclusive, clean, and organized

d. What makes the business unique? What is the source of its competitive advantage?- we offer fitness improvement to everyone, while also providing food and refreshments and training to members. The company will be networking and advertising within the community to spread awareness of the brand and what we offer.

Company History (1/2 page)

a. Company founding. (You met in class, formed a team, explored options,

conducted research, and wrote the BP)

Our team met in a business planning course at the University of North Texas. We discussed how getting the motivation to go to the gym is very hard for us as commuting students who have part-time jobs. We wanted to develop a gym where customers want to go and start their day on the right foot. We wanted to include a coffee shop where customers can come in, do their workout, get their coffee, and get on with their day. Our team had many more ideas but decided to start of with that idea. Eventually, we plan to grow and provide more services in our facili

b. Future financial and operating highlights

c. Significant achievements

4. Company Products and Services (2-3 pages)

a. Description

1. Product or service features

2. Customer benefits

3. Warranties and guarantees

4. Unique sell proposition (USP)

b. Patent or trademark protection

c. Description of production process (if applicable)

1. Raw materials

2. Costs

3. Key suppliers

4. Lead times

d. Future product or service offerings

5. Industry Profile and Overview (6-8 pages)

a. Industry analysis 

1. (Industry background and overview) Health and fitness date back to ancient civilizations, where physical fitness was highly valued and necessary. Modern fitness took a turn in the mid-20th century when bodybuilding and nutrition became more important due to the rise of processed meats/fast-food, personal computers, media have all led to a decline in physical activity. Obesity as a result has become increasingly prevalent, cardiovascular disease, and childhood obesity are on the rise. Thus the medical industry has found that aerobic exercise will reduce the likelihood of heart attack and many other diseases. In the 1980’s, gyms became abundantly popular with companies such as Gold gym, 24 Hour Fitness, and LA fitness gaining traction under the subscription model. Through the 90’s and early 2000’s, group fitness became popular which led to the in-home workout routine. In 2020 the pandemic sparked a feeding frenzy, during lockdowns social media influencers backed by large corporate clothing/gyms working out has become a lifestyle. Social media has supercharged the fitness trend, causing gyms to pop up with relative ease and fall just as quickly. During lockdowns thousands of gyms were forced to close their doors permanently, now the level of fitness clubs have returned to those seen before social media gained traction with an estimated 25% decline from 41,000 in 2019 to 31,000. ((

https://www.statista.com/statistics/244922/us-fitness-centers-und-health-clubs/
 

https://www.cdc.gov/nccdphp/sgr/intro2.htm
)

)

2. Significant trends: The main trend that has been significant in fitness is Biohacking which is the process of improving your body and mental facilities using diet, exercise, and mindfulness practice. This was further accelerated by the coming out of all the new technology like the Apple watch that motivates users to stay active throughout the day.

3. Growth rate: 

4. Porter’s Five Forces

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Threat of substitution: When discussing Porter’s threat of substitution, it is important to consider what the benefits are for other goods or services outside of one’s business. For a gym, there are multiple substitutes that people consider before actually committing to a daily, weekly, or monthly membership. Exercise in general can be a task that can be completed anywhere. For example, people can exercise outside, at home, in sports, in school and in many other places. The threat that many gyms face is the possibility that people do not need to specifically exercise or improve their physical health at their establishment. Today, a growing number of people commit to home workouts with their own gym equipment and have even introduced VR workouts into their daily exercise. This virtual reality technology allows for at home exercise while interacting in a game and making it more fun for people to work out at home. Other forms of substitution like health and wealthness apps can help guide and inform users with training exercises and goals to be met without actually going to a gym. Even housing developments, apartments, and hotels offer fitness centers that people can choose to go to instead of an actual gym establishment. Some of these centers do not require a membership or any form of payment as long as you are either living or staying in the location. These examples illustrate that the fitness industry is evolving, and gyms face competition from various alternatives that cater to different preferences and lifestyles. Overall, the threat of substituting daily workouts in a gym versus other forms can mean total success or failure for a company that specializes in fitness.

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Threat of new entry: 

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Buyer Power: Buyers in the fitness industry have higher bargaining power due to the market saturation, and plenty of substitutions. Buyers can be easily influenced by multiple factors, in recent years health and safety have taken priority when shopping for a membership. Low cost gyms that offer flexible options, with customer friendly cancellation policies that have enhanced the competitiveness in urban environments. Alternatively, there are gyms that are made for professional athletes, whose memberships are in the thousands of dollars with inhouse kitchens and physicians, though their market is specific. The choice of gym type depends on an individual’s fitness goals, preferences, and budget. Luckily for the buyer, there is a gym for every goal, lifestyle, and budget. Traditional gyms offer a wide variety of equipment and supplemental classes and amenities. Online and virtual platforms provide a comfortable self paced, low cost alternative workout lifestyle. Some corporate gyms provide an ultra low cost, judgment free zone for light to moderate gym goers. The abundance of options has forced gyms to become more customer centric in their policies and practices. Forcing gyms to have better facilities, atmosphere, amenities, flexible plans, state of the art equipment, sound systems and friendlier staff. A trend has begun in women-only gym areas and entire gyms tailored specifically for women. Boutique-like studios offering group workouts, yoga, pilates, and other options that appeal to the female gym goer. The buyer has never had more power in the health and fitness market.

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Supplier Power: First and foremost, power in the industry is mostly held by equipment providers. Gym equipment is a specialist good made to satisfy the specific requirements of fitness centers. The supplier power is consequently rated as moderate to high. These sophisticated gadgets are heavily utilized by fitness facilities to provide a variety of workouts to their patrons. Gyms frequently diversify their supplier base, negotiate contracts in their favor, and look into alternate equipment options that fit within their operational budget and business strategy to reduce this supplier power. Providers of software and technology are an important component of supplier power. Technology is becoming more and more important in the modern gym environment, helping with member management, workout tracking, and interactive fitness experiences. But because there are several software vendors and gyms can select based on their individual demands and financial concerns, the supplier power in this market is typically rated as moderate. By carefully choosing the software that best fits their business model and member needs, gyms can manage this power. Supplier influence is also exercised by businesses that provide gym-goers with clothing and equipment. Due to their widespread brand recognition and devoted consumer bases, well-known brands in the fitness gear industry may have a moderate amount of influence. However, the availability of various suppliers and gyms’ capacity to bargain for favorable terms and diversify their supply chains work against supplier power. A moderate level of supplier power is seen in the world of health foods and nutritional supplements. These goods are widely used by gyms to improve their member offerings. Despite the fact that suppliers do have some influence, the market’s variety of options allows gyms to bargain rates, diversify their supplier base, and make educated decisions based on things like product quality and cost. Providers of fitness education and training represent a market with low to moderate supplier power. The alternatives for certification and recognized programs for fitness professionals are numerous. Gyms can select from a wide range of products, bargain for costs, and even create custom training plans to meet their unique needs. The provider power is greatly diminished by the availability of options. Last but not least, cleaning and maintenance companies have a fair amount of sway in the business. To ensure that their members are working out in a clean and secure atmosphere, gyms need to use certain cleaning and maintenance supplies and services. Gyms can control and lessen this supplier dominance by negotiating contracts, evaluating prices, and maintaining connections with multiple vendors. Conclusion: Although suppliers in the modern gym sector do have some influence, gyms are still able to successfully navigate and negotiate because of the industry’s structure and practices. Gyms must use a variety of techniques, including diversification, strategic alliances, and negotiation tactics, to control supplier power and maintain a healthy level of competition in the fitness industry. 

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Competition Rivalry: With the barriers to entry being low for this industry, there is a plethora of active competition. In the article “Is the fitness industry competitive?” the author Zippia Team explains how the fitness industry is very competitive and rewarding for new entrants,Large, all-inclusive clubs are competing against smaller boutique studios. Boutique studios currently take up 42% of all gym memberships. Some of those include Plant Fitness and Gold’s Gym which are two major gyms in their own rights, and the way that we plan on competing with them is by maintaining consistency with our cleansness and efficiency to ensure that our customers come back each time. 

Planet Fitness and Gold’s Gym already have brand recognition and customer loyalty so we will need to have consistent social media marketing and management to get our name out there then build upon that by promoting our unique selling proposition. Of course when we start we won’t be competing with the big names with the equipment but we can definitely stay ahead by running an external analysis to have a clear understanding of the competitive structure and finding potential opportunities. 

For example: When it comes to pricing Planet Fitness is considered the best value for money and is the reason for their success, with that being said Planet Fitness doesn’t put enough emphasis on personal training services making the experience impersonal for those who need guidance. The low-cost model that is used by Plant Fitness will be the perfect opportunity for us to attract more customers by making our gym feel personal with all the aid and personal training available. Golden gym on the other hand has a different approach that primarily focuses on personal growth, in a SWOT analysis done on Golden gym by Hitesh Bhasin, he explains how this approach tends to backfire, “hey are extremely strict about customers following their fitness regime with the result that customers often feel drained out with the fitness focus”. To take advantage of these weaknesses from these big name gyms we will find a balance between the two extremes to create an environment that all customers can feel at home. 

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Drivers of Change: 

6. Barriers to entry or exit – The barrier to entry is relatively low. Depending on health and building codes a gym can be started under an awning with some weights and some music. Barriers to entry have a significant impact on competitiveness, due to capital requirements to fully position the brand where it needs to be. Economies of scale may flourish due to having brand recognition therefore acquiring customers may be a challenge. The market is saturated because the barrier can be too low. Alternatively, a firm with plenty of capital can start with the best location, marketing, amenities and equipment. This allows for a better positioning of the firm to compete against established rivals.  Lease agreements pose an issue when exiting: equipment and real estate are contractual agreements that may not have a buyer, exiting a lease may raise the barrier to exit. Similarly contractual agreements with both customers and employees may have to be honored regardless of the firm’s status, further increasing the pain of exit because severance packages must be offered and memberships honored. External factors such as a recession, may hinder the ability of a firm to liquidate quickly and or at all once ‘exiting’ procedures have begun. Investors, consumers and suppliers in poor economic conditions will not be interested in gym equipment, buildings and memberships thus creating a less than desirable position to exit in. Lastly, any debt and financial obligations will further complicate exit, as typically loans remain active. In conclusion, entry is easier than exit because fitness is a niche industry and equipment favors the buyer.

7. Key success factors – several different key factors contribute to success, a solid balance and mixture is required to remain competitive.They are listed as follows, in no specific order: Convenient location,favorable image, low cost/ overall cost control, form of customer service, quality control. An appealing, easily accessible location with a sufficient gym going population will maximize success chances. Brand recognition is important for member attraction, reputation management, customer loyalty, identity and differentiation due to the high threat of rivals. Keeping low operating costs such as employees, real estate, equipment and marketing can positively affect the chances of success. Low costs ultimately will lead to more liquid capital that can be used for economic downturn and or growth. Professional training on customer service is of utmost importance because trained staff can aid the customer experience, build reputation and loyalty. In lieu of the recent pandemic, health and safety of gyms are now taken into consideration by consumers. As a result gyms must implement policies and procedures that correspond with local, state, and federal laws and guidelines. Not only does this add to the importance of properly trained staff but will ultimately affect the operating costs as more training and cleaning supplies will have to be purchased regularly. Gym atmosphere including building and equipment maintenance plays a role in quality control.  Qualified and properly trained professionals must be hired to help customers with questions, they must also be prepared for emergency situations should any arise. Internal control systems, like a member feedback audit, should be put into place to ensure that customer ratings are high and SOP/SOG are being maintained. 

b. Outlook for the future – Post pandemic recovery is still active, as a result over the span of 3 years roughly 10,000 gyms have shut their doors. Down from the 42,000 pre pandemic high, ending the consistent growth that began around the time Iphones and Instagram were created. However, the massive exit of a quarter of the gyms has left potential memberships in limbo, thus established gyms are absorbing the memberships. Post pandemic physical fitness has pivoted from the traditional model to a virtual, hybrid, in-home, and alternative programs like group biking. This byproduct has created a new market servicing the modern fitness enthusiasts. While this is not good news for traditional models, they are challenges that will force the gyms to become more flexible, and adaptive to the new landscape post pandemic. Projections predict an average growth rate of about 12% from 2023 to 2028. Social media has influenced a push towards healthy lifestyles especially in the United States, more people on average have gym memberships than any other country. Despite multiple economic downturns since the turn of the century, gyms have been able to thrive in such a competitive, fast paced landscape. (https://www.mordorintelligence.com/industry-reports/health-and-fitness-club-market)

c. Stage of growth (start-up, growth, mature industry?) 

Quantums Strength is the gym name and

7. Business Strategy (2-3 pages)

a. Desired image and position in market

b. Company goals and objectives

1. Operational

2. Financial

3. Other

c. Business Model (Canvas)

d. SWOT analysis on firm (With matrix)

1. Strengths

2. Weaknesses

3. Opportunities

4. Threats (Including Governmental actions)

e. Competitive Strategy (Use Porter’s Generic Model of Competition and pick

a box. Where are you?)

1. Cost leadership

2. Differentiation

3. Focus