Successful entrepreneurs have a vision of what they wish to accomplish that is so clear and exciting that it guides all their actions and decisions within an organization. By building on this vision,

BUSI 4003 Week 2 Assignment

In the Orange County, California region, there are around 5000 Yelp hits for gyms and over 6000 hits for tea. Both types of business have low barriers to entry with tea shops having lower capital requirements than a gym. Most tea shops are small mom and pop stores that typically focus on cold tea with different additions such as boba or jellies. There is not much product differentiation between the tea shops, so convenience plays a key factor in attracting and maintaining customers.

While there are also many gyms, there appear to be around 1000 cardio style fitness classes in Orange County Some of these are weight training classes and fitness bootcamps. There are only a handful of locations that offer cardio classes using rowing machines and even fewer gyms using the Versaclimber. There are a few Pilates studios that have recently incorporated Versaclimber cardio classes. They charge $199/month for a monthly membership. There are two fitness studios that offer Versaclimber only fitness classes. Rise Nation has 5 locations in the US and is solely equipped with Versaclimber. They charge $175/ month for 12 classes or a 10-class package for $200.00. Cardio Climb offers a Versaclimber only class as well. They are attached to a standard gym, but the cardio climb only classes are offered for $100.00/month. I’ve chosen to go with the Versaclimber only cardio gym because of the low startup costs, the small gym footprint required and the lack of supply availability in Orange County

The wall mounted Versaclimber SM with Bluetooth costs around $4500 per machine. In an 800sqft location, you can install 10 machines with room for stretching and a front desk area. The average rent for a commercial space is $2.00/sqft, which totals to $25,600 in rent annually. Liability insurance for the gym would cost on average $741/ year and Personal training insurance can cost around $150 to $500. Trainers would be hired at $25/hour as independent contractors while the owner can manage the front desk and billing. $5000 would be budgeted for developing a logo and a website that was SEO optimized. The website would allow users to sign up for a free trial or register for a class. I would also look into bartering Social Media work with a college age student who could help post content to Facebook, Instagram and Twitter. Lastly, I would run a Groupon offer unlimited classes for 2 weeks for $20 to get new customers to try out the class.

Cardio Climb in Chino Hills charges $100/month for 12 classes while Rise Nation charges $275/month for 30 classes a month and a 3-month commitment. Chino Hills median household income is $99,324 a year while Lake Forest, a city in Orange County, has a median household income of $100,557. I would charge $99/month for unlimited classes with a 6-month commitment. I would also offer a cheaper package of 8 classes a month for $79 or 4 classes a month for $59 per month. If someone wanted to drop in for a single class, I would offer the class for $20.

References

Cardio climb — the right fit. (n.d.). Retrieved from http://www.therightfitchino.com/cardio-climb/

Chino hills, california (ca 91709) profile: Population, maps, real estate, averages, homes, statistics, relocation, travel, jobs, hospitals, schools, crime, moving, houses, news, sex offenders. (n.d.). Retrieved from http://www.city-data.com/city/Chino-Hills-Californ ia.html

How to create a marketing budget and plan for your startup (5 steps). (n.d.). Retrieved from https://www.figmints.com/blog/how-to-create-a-mark eting-budget-for-your-startup/

How much does general liability insurance cost? | insureon. (n.d.). Retrieved from https://www.insureon.com/small-business-insurance/ general-liability/cost

Lake forest, california (ca 92630) profile: Population, maps, real estate, averages, homes, statistics, relocation, travel, jobs, hospitals, schools, crime, moving, houses, news, sex offenders. (n.d.). Retrieved from http://www.city-data.com/city/Lake-Forest-Californ ia.html

Modzelewski, E. (n.d.). Packages (weho). Retrieved from https://www.rise-nation.com/packages-weho/