BITIOUS FITNESS

San Leandro DECA Chapter

Paul Perilla

San Leandro High School

2200 Bancroft Ave.
San Leandro, CA 94577
December 1, 2014

Table of Contents
1

I.EXECUTIVESUMMARY

II.
DESCRIPTIONANDANALYSISOFTHEBUSINESSSITUATION

A.RationaleandMarketingResearch
B.Introduction
C.SelfAnalysis
D.
AnalysisoftheBusinessOpportunity,CustomerandLocation
E.ProposedOrganization

III.PROPOSEDMARKETING/PROMOTIONPLAN

A.ProposedProductorService
B.ProposedPricingPolicy
C.PersonalPromotion
D.NonPersonalPromotion
E.Place

IV.PROPOSEDFINANCINGPLAN

A.ProjectedIncome/CashFlowStatement
B.ProjectedThreeYearPlan
C.CapitalandRepaymentPlan

V.BIBLIOGRAPHY

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I.EXECUTIVESUMMARY
BitiousFitnessisunlikemostgyms.Wefocussolelyonourmembers,andonlyourmembers.With
ourprofessionaltrainerswhoobtainatleastadegreeinhealthsciences,humannutritionandexercise,or
kinesiology,weofferthebesttrainingexperienceinthewholeBayArea.Thecorporationheadquarterswill
belocatednearthemidstofthemainattractionsofSanFrancisco,whicharethepiersonTheEmbarcadero.
BitiousFitnessheadquarterswilltakeplaceonthesamelocationasthegymitself,whichisonthe8thfloor
ofthebuildingin100CaliforniaStreet.
ThecityofSanFranciscohasbeenboomingsincethelastU.S.recession.Despiteitshighcostof
living,peoplearemovingintoSanFranciscoingrowingnumbers.Inaddition,jobgrowthalsoaccelerated
sincetheeconomicrecoverybeganin2010,accordingtoUSAToday.Withtheperfectlocationtoopena
BitiousFitnessinthemiddleofgrowingcommunities,thebusinesswillbesuccessfulwiththeambitionthat
itwillprovide.Inordertosustainthebusiness,IestimatethatIwillneedaninvestmentof$500,000froma
smallbusinesstobepaidoffintenyearsorless,andanadditional$95,000fromanAngelinvestor,which
willbepaidoffin10years,withanadditional10%interestrate.

Ourmissionistogivetheyouthandadultsambitioninlifetobecomeconfidentinthemselvesand
becomesuccessfulthroughphysicalfitness.BitiousFitnessprovidesthebestqualitytrainingforthosewho
aspiretodogreatthingsandforthosewhoarealreadydoinggreatthingsinlife.
Inthe21stCentury,technologyisadvancingeveryyear.Thismeansthatpeoplearemovinglessand
less,becausethingsaregettingeasierandeasiertogetdonewithjustthetipsoftheirfingers.Childrennow
arespendingsevenandahalfhoursadayinfrontofascreen(e.g.TV,videogames,computers).Onlyone
andthreechildrenbeingphysicallyactiveeverydayandmorethan80%ofadultsnotmeetingtheguidelines
foraerobicsandmusclestrengtheningactivities.
Thetargetmarketareadultsandyoungchildrenwhowanttobemotivatedandpursuetheirambition
tofeelgreataboutthemselvesandtobecomesuccessfulinlifethroughgoodhealth.

PromotionalPlan:
PersonalTrainers
ObtainatleastadegreeinKinesiology,humannutritionandexercise,orhumansciences.
Atleast3yearsofexperienceasapersonaltrainer.
Facility
Highqualityequipment,sauna,tanningbeds,basketballcourt
Environmentallyfriendly
Media
Localnewspapers,radioads,socialmedia,sponsorshipsofcommunityevents,etc

FinancialPlan:
Tosustainthefacilityuntilthebreakevenpoint,aloanof$500,000fromsmallbusinesses
willbeneededinadditiontomy$80,000personalinvestmentfromfamilygiftsandmypersonalsavings
sincehighschool.Thisloanwillbeusedfortheconstructionofthe20,100squarefeetfacility($25square
feet/yr).Alltheequipmentneededwillalsobeincludedintheloan,plusmypersonalinvestmentof$80,000.
Tomeetmytotalstartupneeds,Iwillneed$95,000loanfromaninvestor.Iwillpaythisloanoffin3years
witha10%interest.
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II.DESCRIPTIONANDANALYSISOFTHEBUSINESSSITUATION

A.RationaleandMarketingResearch

Rationale:
Childrenandadultsdonothaveenoughmotivatorsinlifetotakecareoftheirphysicaland
mentalhealth.BitiousFitnessisawaytogivepeopleambitioninlifetobecomesomebody.Iwanttogive
themconfidencethroughgoodhealthinmentalandphysicalappearance.BitiousFitnesswillinclude
employeeswhohaveadegreeinkinesiology,humannutritionandexercise,orinhealthsciences.These
employeeswillshowprofessionalisminmybusiness.Mostpeoplewouldmakemoneyasthereasonto
eliminatethegymastheiroption,butBitiousFitnessofferlowcostmembershipsforlowincomepeople.
MarketResearch:
TheobesityplaguethatiscurrentlygoingonintheUnitedStates

hascausedthefitness
industrytogrowinpopularity.AccordingtoFranchiseHelp.com,over72millionAmericansareclinically
obesesomymarketisdefinitelyindemand.WiththeprofessionalsthatIoffer,allthosewhosufferwill
definitelyreceivethehelpandmotivationthattheyneed.Gymmemberswereconcentratedhighlyonthe
1835agegroup.However,withtheincreaseinolderagegroups,membersarespreadouttoallagegroups
nowadays.Theagingdemographicwillresultinawidermarketformybusiness.Also,withmostgymsthat
doesnotallowchildrenorteenagersundertheageof18,BitiousFitnesswillstandoutbygivingouryouth
thechancetoachievetheirgoalsatayoungage.

B.Introduction:

MyproposedbusinessisastartupcalledBitiousFitness.NearthemainattractionofFishermans
WharfinSanFrancisco.BitiousFitnesswillbelocatedononeofthebuildingsofSanFranciscoin
CaliforniaStreet.StepsawayfromtheEmbarcaderoBartStationandMunibusstops,BitiousFitnesswill
beeasilyreachedbyeveryoneinthecityandevenoutofthecity.Iwillbealimitedliabilitycorporation
typeofbusinessfortheadvantagesthatfollow.Myfitnesscenterisunlikeanyothergymslike24Hour
FitnessorBallysTotalFitness.Youdontjustcomeintoworkoutonyourowninstead,everysessionis

runbyapersonaltrainer.However,theamenitiesthatBitiousFitnessofferwillbeopentothosewiththe
committedplanmembership.BitiousFitnesswillbeoneofakindtoalltheothergymsacrosstheUnited
States,becauseoftheprofessionalsthatIwillsupplyandthevarietyofagegroupsthatarewelcomeat
BitiousFitness.Mypersonaltrainersareprofessionalswhocarryatleastadegreeinkinesiology,health
sciences,orhumannutritionandexercise.Peoplewhoaresufferingfromanorexiaorevenfrombeing
overweightwillbetheperfectmarketformybusiness.BitiousFitnesswillconsistofbootcamps,
transformationchallenges,andmanyotheractivitiesthatwouldresultingreaterconfidenceorselfesteem.
Myclothinglinewillalsobeincorporatedintomybusiness,whichwillretailinthefacility.Thisclothing
linewilladvertiseBitiousFitnesswhileitalsogivesmycustomerstheprideofbeingambitiousinlife
throughbeingphysicallyfit.

C.SelfAnalysis:
IknowthatIamwelloverqualifiedtorunthisbusinessformanyreasons.Firstofall,Ihavebeen
oneofthevictimsofbeinganorexic.However,nowIsufferfromhavingfastmetabolismwhichgivesme
thedisadvantagetogetthemuscularbodythatIdesire.Thisexperienceinlifegivesmetheambitiontodo
whateverIcantofinallyfeelconfidentwithmyownphysicalappearance.Inthiscase,Ihavetheambitionto
dowhateverIcantorunthisbusinesswiththebestofmyabilities.Second,Ihavetheexperienceofworking
atagymandalsotheexperienceofbecomingamemberatagym.Thisexperienceexposedthethingsthat
aremissingfromgymsthatmostpeoplewouldwanttohaveasmembers,whichIcouldincorporateintomy
business.Obtaininganinternshipatalocalgym,TheInnerAthletegavemetheknowledgeofrunninga
fitnessindustrybyworkingalongsidetheownerofthegym.Asanintern,Ialsogettoworkwith
professionaltrainers,whichwillgivemetheideaofmyidealtrainersinmyfacility.Partofmyjobasan
internatTheInnerAthleteistocreatemarketingmethods,whichhasactuallybeenusedmultipletimes
already.Thisjobexperiencewillamelioratemyknowledgetomarketmyownfitnessgym.Onthebusiness

side,theknowledgethatIobtainedfrombeingapartoftheBusinessAcademywillgivemetheadvantageto
runmybusiness.Havingwrittenmanybusinessplansalready,Iknowhowtooperateandmanagea
business.Formymarketingorsalesexperience,Icurrentlyworkasasalesassociateatashoestore.Thisjob
givesmemoreknowledgetomarketandputmybusinessoutthereinthepublicforpeopletosee.In
addition,asoneofthefoundersofmyschoolsveryownstoreIalsoobtainmoreknowledgeinthebusiness
industry,whichwillguidemetosuccesswithmyveryownfitnessgymbusiness.

D.AnalysisoftheBusinessOpportunity,CustomerandLocation:

SanFranciscoishometomorethan8hundredthousandpeople.Infact,itisthesecondmostdensely
populatedcityinAmerica.SanFranciscoisthefocalpointoftheBayArea.Whatbetterlocationtoputa
businessinthanSanFrancisco?SanFranciscowilloffermeaherdofcustomerseveryday.Ithasthehighest
percentageofresidentswhoobtainacollegedegree.Withamedianhouseholdincomeofalittleover
$80,000.Iwouldnothavemuchproblemswithlowincomemembersasaresult.However,Iwillgive
opportunitiestothosewhocantafforditbyprovidingalowercosttolowincomemembers.SanFrancisco
isoneofthebestcitiestobuildabusinessin,becauseofthehightrafficthatitprovides.Mycompetitorsin
thisbigcityareverylow,anddonotofferthesame,uniquequalitiesthatmybusinesshastooffer.

The8thfloorofthe100CaliforniaStreetbuildinginSanFrancisco.20,173squarefeetofspace.Roomsare
nottruetosizeonthepictureWeightsandcardioequipmentwillbeinthetrainingroom.

E.ProposedOrganization:

Iamalimitedliabilitycorporationtypeofbusiness.Throughacorporation,Icanexpandintoother
bigcitiesaroundtheUnitedStates.AnadvantagethatIhaveasacorporatebusinessisthatIwillhave
limitedliability.OneofthekeyfeaturesofmyuniquefitnessgymisthatIamincorporatingdaycarecenters
forthechildrenorsiblingsorevenpetsofmymembers.Thisisorganizedbyprovidingspaceforlocalsitters
torentthatspacetoruntheirbabysittingandpetsittingbusiness.Membershipplanswillbeadjustedifmy
membersneedasitterwhiletheyareworkingout,and15%ofthatmembershipcostwillgotothebaby/pet
sitter.BitiousFitnessemployeeswillonlyconsistofanumberofprofessionalpersonaltrainersandcoaches.
Professionalswhowilltrainandpushchildrenandadultstogetactive,ortogetwheretheydesire.Somy
memberswillbeorganizedbysigningupfortheirdesiredtraineruntiltheyarefull(upto5055membersfor
eachtrainer).SinceIwillbekeepingmydoorsopentomytrainerspersonalcustomers,Iwillalsoget
additionalincomefrommytrainers,becausetheywillpaymeforprovidingthemthefacilityandequipments
totraintheirpersonalcustomers(allpaymentswillbeusedtomaintainandmanagethefacility).Allof
Bitiousmembersandmytrainerspersonalcustomerswillberequiredtosignawaiversothateareless
liableforanyinjuriesorcatastrophesthatmighthappeninmyfacility.Andyes,eventhestudentsor
childrenwhoaremembersorclientsofmytrainerswillrequiretheirparentstosignawaiverandcontract,
regardinganyaccidentsthattendtohappeninthegym.Myfacilitywillbemaintainedbyme,theownerand
evenmypersonaltrainers.CleaningtheirworkspaceispartoftheirjobasthetrainersatBitiousFitness.I
willalsohaveunpaidinternswhowantstheexperienceofbeingaroundprofessionaltrainersandfirsthand
experienceofrunningafitnessgymlikemyself.Theseinternsorvolunteerswillrunthefrontdeskandclean
thefacility.

III.PROPOSEDMARKETING/PROMOTIONPLAN

A.ProposedProductorService:

BitiousFitnesswillmarketthroughsocialmedia,mails,emails,phonecalls,andevenbillboardsand
TVcommercialsonceafterweexpand.Myproductismyfacilityandwhatwehavetooffer.The
membershipwillcost$135tostartamembershipandwillbe$75dollarsmonthly,whichisnocommitment.
Nocommitmentmeansthattherearenocontracts,andtherearelessbenefits.Somebenefitscomewiththe
useofourbasketballgym,saunas,andtanningbeds.Thesewillberestrictedfromthosewhohavetheno
commitmentmembershipplan.Thegoldmembershipplanisusuallyforthosewithmidorhighincome
members.Thiswillcostthem$150tobecomeamemberand$90everymonth.Thiswillcomewithallthe
amenitiesthatwehavetooffer(basketballcourt,saunas,tanningbeds,etc).BitiousFitnesswillalsooffer
oneononepersonaltrainersifourmembersprefertoworkoutwithsomeonewhowillfocusonherselfor
himselfalonewiththepriceof$200permonth,3sessionsperweek.Physicaltherapistswillalsobepresent
toanyonewithanappointment.BitiousFitnesswillstandoutfromotherfitnessgyms,like24HourFitness
orBallysTotalFitness.Why?BecauseBitiousFitnessisallaboutgreatqualityexercises.Itisnotour
equipmentthatdoesthejob,butratherourtrainerswhowillpushourmemberstotheirlimitstogettowhere
theywanttoget.AnotheruniquefeaturetoBitiousFitnessisourdaycarecenterforourmemberspets
and/orchildren.Myfitnessgymwillprovideaspaceforpetstobewashed,groomed,exercised,andeven
fed,allwhilemymembersarebusyexercising.Inaddition,mymemberschildrenorlittlesiblingswillhave
playgrounds,exerciseplans,food,andmoretokeepthemoccupiedduringmymemberstimeatthegym.
Theseadditionstomyfitnessgymarenotemployedbymycompany.Theywillberentingaspacetorun
theirownbabysitting,andpetcarebusiness.Thisway,Iwouldbelessliableforanythingthatmayhappen.
Theseamenitieswillbeincludedinthemonthlypaymentoftheirmembershipplan.

B.ProposedPricingPolicy:

YourBusinessItem

PriceForItem

MembershipFee(NC)

$135

Monthlypayment(NC)

$75

GoldMembershipFee

$150

GoldMonthlyPayment

$90

PrivateSessions(Monthly)

$200

Apparel

$25

CompetitionItem

PriceForItem

Difference+/

MembershipFee(NC)

$200

$65

MonthlyMembership(NC)

$50

$25

MidMembershipPlanFee

$100.00

N/A

MidMonthlyMemberPlan

$60.00

N/A

FullBenefitMemberFee

$0

$150

FullBenefitMonthlyMember

$70

$20

(LessbenefitsthanBitiousFitness)

CompetitionItem

PriceForItem

Difference+/

MembershipFee(NC)

$100

$35

MonthlyMembership(NC)

$10

$65

PFBlackCardMemberFee

$40

$110

MonthlyPFBlackCardPlan

$20

$70


Competitionitem

PriceForItem

Difference+/

MonthlyMembership(NC)

$70

$5

MonthlyFullBenefitMembership

$90

$0

Nomembershipfees

$0

N/A

PersonalTrainers

$180

N/A

C.PersonalPromotion:

BitiousFitnessisallaboutthecommunityandtheirwellbeing.Inordertosucceedasabusiness,we
willinvolvethecommunitywithfuneventstoalsohelppromoteourgyminafunandcheapway.Havinga
strongpromotionalprogrammeansnothing,butsuccesstoourbusiness.Withourwelltrainedemployees,I
willmakesurethatourmemberswillstayenergeticwhiletheyfocusontheirworkouts.Theywillleavethe
gymwithasmileandthefeelingofagreatworkoutsessionastheyprogresseveryday.Otherpromotions
include:
Flyersinworkplaces,schools(elementary,middleschool,highschools,colleges),residentialmails,
andevenfastfoodrestaurants.
Couponswillbeofferedonlineforexclusivemembershipplans
Discountof20%offwillbeofferedtothosewholosesorinothercases,gains5poundsperweek.
Thediscountwillonlygotowardsonemonthofpayment.
Wewillbeinvolvedinschoolstohelpthemfundraiseforanyevents.
Wewillalsooffera15%discountoffoftheirmembershiptoeveryhighschoolersorbelow.
BringabuddyinforfreewillbeavailableeveryMonday.

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D.NonPersonalPromotion:

Instagram,Twitter,andFacebookwillbecreatedtoreachourmaintargetmarket,whichareyoung
adults.However,nowadaysthesocialmediagivesmeawidervarietyofagegroupstopromoteto
online.
Twitterwillbeusedtoletpeopleknowourschedulefortheday.Wecanalsoletthemknowwhich
trainerswillbeavailablethatday,andwhatspecialeventswilloccur.
Facebookaswellasourpersonalwebpagewillbeusedtoinquirepotentialemployeesorinterns.
Facebookwillalsogiveoutcouponsrandomly.
InstagramwilldorafflesandgiveawaystomemberswhoshoutoutourInstagrampage.
Dunk,3point,andskillchallengeswilltakeplaceannuallyaourbasketballcourtforpromotional
gatherings.
Createapersonalwebpagetoinformourmembersorpotentialmemberstheschedules,andspecial
eventsthatwilloccur.Ourcontactinformation,hours,andevenourpersonaltrainerswillbe
availableatthepageforsignups.
SpecialeventslikemarathonswillhelppromoteBitiousFitness.
BusinessCards
NameontheCaliforniaStreetBuilding.(Billboards)

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E.Place:
Ourchannelofdistributionwillbeothercorporatebusinesses,suchashospitals,sportingarenas,and
evenprofessionalathleteswhowesponsor.Thesedistributorswillleadustoourmaincustomers,whichare
thepeoplewhoareinneedofhelporpeoplewhowanttobecometheathletetheylookupto.Thecostsofall
thesedistributorsarealreadyincludedintomysignageand/orpromotionaloverheadcosts.AllAmerican
Fitnesswillbeourdistributorforequipmentsandaccessoriesusedbyourmembers.Wewillpartnerupwith
AllAmericanFitnesstogetdiscountpricesonallequipmentsneededtorunmybusiness.Allapparelwillbe
distributedbyalocalprintershopwhowilloffermeadiscountprice.Apparelwillbedesignedbymeorby
mycollaboratives.

IV.PROPOSEDFINANCINGPLAN

A.ProjectedIncome/CashFlowStatement:

Thepredictedrevenuefrommembershipmonthlypaymentsandapparelisestimatedat$1,314,000
forthefirstyear.Afterpayingforthecostsofgoodsold,almost$163,000andanestimatedcostof
$1,019,000fortheoverheadcosts,thenetincomewillbeapproximately$132,000.
Year1
Sales

$1,314,000

COGS
Apparel

$8,000

Equipment/Machines

$153,000

Licensing

$2,000

TOTAL:

$163,000

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OverheadCosts
Rent

$505,000

Utilities

$10,000

Insurance

$3,600

Wages

$250,000

OfficeSupplies

$3,000

Repair/Maintenance

$5,000

Interest

$18,200

LoanRepayment

$68,200

InvestorLoanRepayment

$37,000

1.5%Payroll+8.75%SalesTax

Payroll:$3,750+Sales:$114,975=~
$119,000

TOTAL:

$1,019,000

NETINCOME: $132,000

Otherfirstyearstartupcostsinclude:
Year1
BeginningInventory

$200,000

Publicity/Signage

$20,000

Construction

$300,000

Equipment

$155,000

TOTAL:

$675,000

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B.ProjectedThreeYearPlan:

AfterthefirstthreeyearsofBitiousFitnessbeingopened,Iexpecttohave200moremembers.This
meansthatIwillhaveanincreaseofatleast100membersforeachyearafterthefirstyear.Inthatcase,
BitiousFitnessisestimatedtoincreaseinmembershipsalesby13%overitsfirstthreeyearsopen.Bitious
Fitnesswillbecomepopularasourpublicityincreasesthroughournewinnovativepromotionsinthefuture.
Ourwageswillalsoincreaseby33%,becauseofthefactthatweareaddinganadditionaltrainereachyear
thatwegained100moremembers.
Year1
Sales

Year3

Year4

$1,314,000

$1,488,540

$1,665,060

Apparel

$8,000

$9,000

$10,000

Equipment/Machines

$153,000

$5,000

$5,000

Licensing

$2,000

$0

$0

COGS

TOTAL
:
OverheadCosts

$163,000

$14,000

$15,000

Rent

$505,000

$505,000

$505,000

Utilities

$10,000

$10,000

$10,000

Insurance

$3,600

$3,600

$3,600

Wages

$250,000

$333,000

$416,000

OfficeSupplies

$3,000

$3,000

$3,000

Repair/Maintenance

$5,000

$5,000

$5,000

Interest/LoanRepayment

$86,400

$86,400

$86,400

InvestorLoanRepayment

$37,000

$37,000

$37,000

Payroll+SalesTax

$119,000

$136,000

$152,000

TOTAL:

$1,019,000

$1,119,000

$1,218,000

NETINCOME:$132,000$355,540$432,060

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C.CapitalandRepaymentPlan:

Ihaveputinapersonalinvestmentof$80,000andborrowinganadditional$500,000fromasmall
business.MyinitialloanswillbemonitoredbytheSmallBusinessAdministration(SBA).Iwillalsoaskfor
a$95,000loanfromaninvestortobepaidoffin3years,includinga10%interest.Capitalexpendituresare
firstyear,initialinvestmentthatwasneededtoopenthedoorsoftheBitiousFitnessfacility.Iproject
making$1,314,000fromfirstyearsalesandwillacquire$1,182,000inoperatingexpensesinthefirstyear
with$132,000toconveyforwardintothenextyear.
Iplantohaveashorttermrepaymentplanof10years.The$500,000willberepaidintenyears
comingtonearly$68,200,whichIhaveincludedintheoverheadexpenses.
Growthinrevenueisgeneratedthroughourapparel,signage,andotherpromotions.Salesgrowthis
projectedat13%foryearstwoandthreeasBitiousFitnessbecomesmorepopular.

AnewFitnessgymattheheartofSanFranciscowillhaveapositiveimpactinthecommunity,forallage
groups,andallotherbusinessesaroundthearea.BitiousFitnesswillbringambitionasweworkforsuccess.

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V.BIBLIOGRAPHY

Information:
http://www.msfregosa.com/bizmgmt12th.html
https://42floors.com/us/ca/sanfrancisco/100californiast
http://www.deca.org/highschoolprograms/highschoolcompetitiveevents/
http://www.planetfitness.com/
http://fitnesssf.com/
http://www.allamericanfitness.com/
http://www.statisticbrain.com/gymmembershipstatistics/
https://www.franchisehelp.com/industryreports/fitnessindustryreport/
http://www.payscale.com/research/US/Job=Personal_Trainer/Hourly_Rate
http://www.amortizationcalc.com/

ExamplePapers:
http://www.deca.org/wpcontent/uploads/2014/08/HS_ENPI_Web_Sample.pdf
http://www.deca.org/wpcontent/uploads/2014/08/HS_ENPF_Web_Sample.pdf

Pictures:

http://fitnesssf.com/
http://www.planetfitness.com/
https://www.crunch.com/splash/

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