Sample Business Plan on Spinning Studio Business Plan
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EXECUTIVE SUMMARY
The Business Concept
GET CYCLYING, LLC (GET CYCLYING, or the Company) is a specialized training destination for road cyclists. It will be appealing during the off season and on those brutal winter or unbearably hot summer days. The Company will be located in Warwick, Rumford or Bristol, Rhode Island.
GET CYCLYING, is a specialized fitness training facility. To use the word “gym” would be an injustice. As a specialized training facility for cyclists, approximately 50% of the coaching at GET CYCLYING, is done “off the bike”. Coaching “off the bike” allows for easier correction of a cyclist’s form. It also allows for more “1 on 1” coaching between the cycling coach and the trainee. There are no free weights or Nautilus equipment, and none of the trappings of the typical modern gym.
The Company doesn’t sell memberships. It provides a service, and for that service it collects a fee. Along with personalized indoor cycling classes, GET CYCLYING, offers flexible open training time for more experienced riders.
Comparison to Other Training
The Company’s main competition is Spin classes that are usually taught by fitness experts who incorporate the 40-minute Spin class into their personal weekly cardio calendar. Most Spin instructors never leave their bikes to assist a customer. Hence, it’s the customer who often suffers. Many Spin customers either work too hard, mainly due to practicing inefficient techniques, or too little, choosing safety in numbers, and opting to hide discreetly amongst the others in the class. GET CYCLYING, is dedicated to righting this wrong and encouraging all customers to work as hard and effectively as they can.
GET CYCLYING, does not discriminate against the typical “Spin” enthusiast. Instead, GET CYCLYING, actually encourages “Spinners” to get away from the principles taught through Spin, and practice practical movements of road cycling (body positioning, breathing, and training methods) with the eventual aim of getting them out of the gym and back out onto the road.
The Company prides itself on “inclusion”, and all customers are treated equally, whether it is the ambitious club cyclist, or the mother/daughter tandem training at GET CYCLYING, for the first time. A facility designed with this type of coexistence in mind has not yet been introduced, making the Company unique in the fitness marketplace. Once it proves its concept with the first facility, the Company believes it can create an indoor cycling franchise based on one of the most exciting aspects of cycling.
Excellent Market Opportunity
In the US, the sport of cycling continues to grow year after year. There are hundreds of thousands of road cyclists in the US. The number of people who regularly take indoor cycling classes (mostly Spin), are many times that. While Spin has grown tremendously popular over the last 15 years, they have done an amazing job alienating the American road cyclist.
Cycling has been on the rise in the US since the early 1980’s, when Jonathan Boyer (future Team 7-Eleven star, and Race Across America winner) became the first American (racing for a European team), to take part in the Tour de France. Since then, American interest in cycling has hit two popularity peaks. The first was in 1989 and 1990, when Nevada native Greg LeMond won his 2nd and 3rd Tour de France consecutively. LeMond was the Sports Illustrated 1989 “Sportsman of the Year”, and he brought cycling into the average American household via Sports Illustrated and Sunday coverage of the Tour on major affiliate networks (CBS and ABC). LeMond is also the first American to have his own brand of bicycle. His 1990 Tour de France winning team “Z” rode LeMond bicycles in the 1990 Tour.
Ten years later, almost to the date, the US was to enter its second and strongest love affair with the sport of cycling. 1993 World Champion (and cancer survivor) Lance Armstrong and his US Postal Service team were getting ready to defend his Tour de France title won the previously year at the 1999 Tour de France. As a cancer survivor trying to win the toughest bicycle race in the world for a second time, Lance Armstrong captured the hearts and minds of millions of Americans. Over the next several years, Armstrong would go on to win 7 consecutive Tour de France and Americans all went along for the ride.
After a three year retirement, Lance Armstrong is back racing professionally, this time for Astana, a Kazak funded team, also employing the current no. 1 US cyclist Levi Leipheimer, and 2007 Tour de France winner, Alberto Contador. All three cyclists are scheduled to appear for Astana, in the upcoming 2009 Tour de France.
The Company predicts a third boom in the interest of the Tour de France, chiefly due to Lance’s participation in the race. This will trickle down to American road cycling in general. The sport is poised for unprecedented growth, and with an increase in cycling, comes an increase in cycling training. GET CYCLYING, will be right there, on the crest of the wave
Profitable Growth
GET CYCLYING, expects to gain a profitable market share within a very short period of time. Determinations have been made for the size of the market, amounts of budgeted advertising and promotional dollars, the number and kinds of distribution channels and the competitive landscape.
Projections call for the Company to generate revenues of $100,000 in its first twelve months. GET CYCLYING, will achieve strong growth over the next several years, reaching $140,000 in revenues and more than $23,000 of net income by the fifth year.
The Opportunity
Health and Fitness Industry
The United States Department of Labor states that despite our current economic crisis, the fitness industry has grown substantially. Through 2016 employment in this sector is predicted to grow at an astounding 27%.
According to the department’s report, job opportunities in the fitness industry will be “greater than the average for all professions.” Reasons cited for this expansion is America’s concern about health and longevity. Becoming or staying in good physical condition crosses all demographic lines. Research shows people are willing to spend time and money to keep healthy, both for themselves and their families. 1
Clearly, the fitness industry is growing. Total revenues from the 2006 U.S. health club industry reached $17.6 billion; total fitness equipment sales in 2007 were approximately $4.7 billion, combined these sectors totaled $22.3 billion. 12
Research reflects exercise and fitness programs improve health and reduce risk of disease. Individuals recognize the importance of exercise, as well as businesses. Some firms include health and wellness promotions programs in