MAXIMUS GYM & WELLNESS CENTER
18 MONTH PROFORMA SUMMARY
Executive Summary
Company Overview:
MAXIMUS GYM, and Wellness Center is a premier health and wellness facility located in the rapidly growing City of Bandera, Texas. Our mission is to inspire and empower individuals to achieve their ultimate fitness goals through offering the most well-thought-out equipment, innovative fitness programs, and a supportive community/family environment. With a focus on balanced health/fitness, we offer a comprehensive range of services including personal training, group fitness classes, nutritional counseling, wellness workshops, partnerships with health centers, physical therapists (and other outlets) to complete the dynamic of true “total health and longevity.”
Market Opportunity:
The demand for fitness services continues to grow as more people prioritize their health and wellness, especially post Covid. MAXIMUS GYM, within the heart of Bandera, its inner-city population of nearly 1,000 and the nearby county population of 23,000+ (2024 census). MAXIMUS GYM and Wellness Center aims to stand out by offering a large variety of services, fitness for all levels and sports, all with a community/family focus.
Services and Programs:
- Traditional Weight Machines: Life Fitness weight machines offer the best range of motion, are the simplest to operate and stand the test of time with their construction and durability.
- Cardiovascular Health: A wide variety of cardio machines so that each person can enjoy their time while improving their endurance and lung capacity.
- Cross Fit/ Heavy lifting: MAXIMUS will offer an area just for that genre who want to really push the limits, Cross Fit traditional machines and implements, including push sled and tires to flip.
- Group Fitness Classes: A diverse schedule of classes including yoga, Pilates, HIIT, spin, martial arts, and strength training.
- Nutrition Counseling: Expert guidance on diet and nutrition to complement overall wellness and superior health/fitness goals.
- Wellness Workshops: Education sessions on topics such as stress management, injury prevention, injury recovery, muscle focus and creating an overall balanced body.
- Personal Training: Customized workout plans and one-on-one sessions with state certified personal trainers.
- MAX Kids : MAXIMUS will offer a children’s-care area, full of activities to keep the waiting kiddos busy and happy.
- MOM/ME - POP/ME: MAXIMUS will allow children as young as 8yrs old to workout with their parent’s supervision (membership necessary). Kids 8-12yrs old must workout at their parent’s side, kids 12-15yrs old parents must at least be in the gym, 16+yrs old, teens, may workout on their own (parent must sign membership form).
Competitive Advantage:
MAXIMUS GYM and Wellness Center distinguishes itself through:
- Expert Staff: A team of highly qualified trainers and wellness professionals committed to providing personalized attention.
- Community Focus: A welcoming environment that fosters a strong sense of community and support among members, that family “feel”. Family Fosters Fitness !
- Experienced Owners: The owners of MAXIMUS have been in the fitness/health industry for over 38 yrs, to include sports-specific personal training, in-depth health nutrition programs, senior fitness instruction, home-based fitness programs, managed various smaller fitness facilities, successfully owned and managed a large fitness facility for 10 yrs.
- Continued Growth: MAXIMUS will not rest on its laurels for growth. MAXIMUS plans to offer as much of everything to everyone, in the areas of fitness and health, to stand up to local competition. MAXIMUS welcomes competition because there is a place for every need.
- Wounded Warriors Project: MAXIMUS will be offering programs for Wounded Warriors, and will work hard to support these First Responders in their recovery. MAXIMUS will work with Warrior’s Heart in any way they need and want.
- First Responders Program: We all love our first responders, they are who are there for us come rain or shine, hell or high water. MAXIMUS will offer discounts on memberships for all qualified, commissioned firsts responders.
- School Fitness Programs: Schools can only be open so many hours, so MAXIMUS will be the go-to for school athletes, of any age. Summer, spring and winter break programs to keep the kids “off the streets”.
Financial Projections:
In our first year, we project gross sales of $250,000 with an expected growth rate of 20% annually after that. Our revenue streams include membership fees, personal training sessions, group class packages, and retail sales of fitness-related products. Operating costs are estimated at $XXXXXXXXXXX, encompassing facility maintenance, staff salaries, and marketing expenses.
Strategic Goals and Steps:
- Member Growth: Achieve a membership base of 850 within the first year.
- Program Expansion: Introduce new classes and wellness programs based on member feedback and market trends.
- Community Engagement: Increase local partnerships and outreach efforts to enhance community involvement and brand visibility.
- Offer 24/7 Access: Add a door lock system, fob for entry, allowing more locals to become members, expanding the hours of access to 24/7. Consider the members who perform shift-work, needing the facility to be available at any time. Installing this program will also greatly reduce the hours of staff needed, which reduces payroll.
- Marketing: Our marketing program will be expansive and entail utilizing all genres of Social media, attending events, visual marketing with an attractive sign, paint the Maximus logo on the building, coupons to each resident within 10 miles (utilizing demographics), offer temp memberships for attendees of local events.
IDEAS TO ATTRACT MEMBERS AND GENERATE REVENUE
1. Door Lock System, for 24 hour access
2. Add lighting exponentially ! the gym should be as bright as daylight
3. Music ! members can also use individual headsets for personal choices
4. Paint colors that inspire, wall art, gym genre graffiti for the heavy lift area
5. Have cardio equipment facing windows….windows inspire movement
6. Huge tv’s, which would be playing Ninja Warrior and/or Strong Man shows
7. Signage and flags….sign at front of driveway and huge logo on the building
8. Create huge poster showing what things are coming
9. Add chalkboards
Revenue Projections
Membership Fees
- Initial Membership sign up Fee: $99
- Monthly Membership Fee: $39-75.00, type dependent
- Expected New Members per Month: 50+
- Churn Rate: 5% per month (members leaving)
Additional Revenue Streams
- Personal Training Sessions: $59 per session
- Group Fitness Classes: $19 per class
- Merchandise Sales: $1,000 per month
- Other Services: $1,000 per month
2. Expense Projections
Fixed Costs
- Rent: $XXXX per month
- Utilities: $600 per month
- Insurance: $420 per month
- Salaries:
- Manager: $2,000-3,000 per month (myself)
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- Various front desk: $2,500 per month (3 people, all part time)
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- Maintenance: $500 per month
- Marketing & Advertising: $100 per month
- Other Fixed Costs: $500 per month
Variable Costs
- Supplies: $1,000 per month
- Equipment Repair & Replacement: $200 per month
3. Cash Flow
Initial Investment
- Equipment Purchase : Life Fitness cable machines, free weights, Hammer Strength, weight racks (see attached for longer list), $150,000, providing that most of the equipment is used (but in excellent condition), and treadmills are leased
- Facility Renovation: $100,000 – $150,000
- Marketing & Promotion: $5,000 (signage, lighting and paint)
- Working Capital: $10,000
Monthly Cash Flow Calculation
- Total Revenue: Membership Fees + Additional Revenue
- Total Expenses: Fixed Costs + Variable Costs
- Net Profit/Loss: Total Revenue - Total Expenses
4. Profit & Loss Statement (Example for First 6 Months)
Month 1
- Revenue
- Membership Fees: 50 members * $39.00 - $75 = $3,750
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- Personal Training: 50 sessions * $60 = $3,000
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- Group Classes: 40 classes * $20 = $800
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- Expenses
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- Net Profit/Loss: $9,300 - $30,000 = -$20,700
Month 2
- Revenue (assuming a 10% increase in memberships):
- Membership Fees: 55 members * $39.00 - $75 = $3750
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- Personal Training: 55 sessions * $60 = $3,300
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- Group Classes: 42 classes * $20 = $840
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- Expenses: Same as Month 1, assuming no major changes.
- Net Profit/Loss:
Continue this process for the next months, adjusting for membership growth and other factors.
NEED ESTIMATES FOR A FULL BUILD-OUT ON THE BUILDING IN QUESTION. REFURBISH BATHROOMS, INSTALL FLOORING, ALL EQUIPMENT, LIGHTING, PROPER HVAC.
5. Break-Even Analysis
Calculate how long it will take to cover the initial investment and start generating a profit based on monthly net profit or loss.
Formula: Break-Even Point (Months)=Initial InvestmentMonthly Net Profit\text{Break-Even Point (Months)} = \frac{\text{Initial Investment}}{\text{Monthly Net Profit}}Break-Even Point (Months)=Monthly Net ProfitInitial Investment
6. 18-Month Summary
At the end of the 18 months, summarize:
- Total Revenue
- Total Expenses
- Net Profit/Loss
Key Points to Adjust:
- Membership growth rate
- Cost adjustments
- New revenue streams
Additional Considerations
- Seasonality: Fitness centers might experience seasonal variations in membership and usage.
- Market Trends: Keep an eye on industry trends to adjust your revenue streams and marketing strategies.
- Member Retention: Invest in programs to keep members engaged and reduce churn.
Conclusion:
MAXIMUS GYM and Wellness Center is poised to make a significant impact in the Castroville fitness market by delivering exceptional value through personalized fitness solutions and a supportive community/family, fun atmosphere. With a strong business model, dedicated experienced team and a strategic growth plan, we are very confident in our ability to achieve, and then surpass, our goals to become the leading fitness destination in the region.
MEMBER RETENTION !!
1. Personalization and Customization
- Personalized Fitness Plans: Offer tailored workout plans based on individual goals and fitness levels.
- Member Profiles: Use member data to customize communications and recommendations.
2. Exceptional Customer Service
- Welcoming Atmosphere: Ensure staff is friendly, knowledgeable, and attentive.
- Member Feedback: Regularly seek feedback and act on it to improve services.
3. Engaging Programs and Classes
- Variety of Classes: Offer a wide range of classes (yoga, spin, martial arts, kids classes HIIT, etc.) to cater to different interests.
- Innovative Formats: Introduce new and trending classes or fitness challenges to keep the program fresh.
4. Community Building
- Social Events: Host events like fitness challenges, group hikes, or social mixers to build a sense of community.
- Online Groups: Create social media groups or forums where members can connect and support each other.
5. Reward Systems
- Loyalty Programs: Implement rewards for milestones like membership anniversaries or attendance streaks.
- Referral Bonuses: Offer incentives for members who refer friends or family.
6. Regular Communication
- Newsletters: Send regular updates on classes, events, and special offers.
- Personal Check-ins: Have staff or trainers check in with members periodically to track progress and offer support.
- Gym/Member app for phones
7. Member-Exclusive Benefits
- Discounts: Offer discounts on personal training, merchandise, or other services for members.
- Early Access: Give members early access to new classes, equipment, or facilities.
8. Facilities and Equipment Maintenance
- Cleanliness: Keep the facility clean and well-maintained.
- Up-to-Date Equipment: Regularly update and maintain equipment to ensure a top-notch experience.
9. Flexible Membership Options
- Variety of Plans: Offer different membership levels or plans to accommodate varying needs and budgets.
- Pausing Options: Allow members to freeze their membership during vacations or injury recovery.
10. Effective Onboarding
- Introductory Sessions: Provide new members with an orientation session to familiarize them with the facility and services.
- Goal Setting: Help new members set realistic goals and create a plan to achieve them.
11. Motivational Support
- Personal Training: Offer complimentary or discounted personal training sessions for new members.
- Progress Tracking: Provide tools or services to help members track their progress and celebrate achievements.
12. Health and Wellness Integration
- Holistic Approach: Incorporate wellness services like nutrition counseling, mental health support, or massage therapy.
- Workshops and Seminars: Host educational workshops on health, fitness, and wellness topics.
13. Regular Events and Challenges
- Fitness Challenges: Organize challenges that encourage members to stay committed and engage with the community.
- Special Events: Plan events like fitness competitions or charity fundraisers to keep members excited and involved.
14. Technology Integration
- Mobile App: Develop a mobile app for easy booking of classes, tracking workouts, and accessing member benefits.
- Online Classes: Offer virtual classes or on-demand content for flexibility and convenience.
15. Personal Touches
- Celebration of Milestones: Recognize and celebrate member milestones such as birthdays or fitness achievements.
- Personalized Communication: Use members' names and acknowledge their personal fitness journeys in communications.
16. Feedback and Improvement
- Surveys: Regularly survey members to understand their needs and preferences.
- Actionable Changes: Act on feedback to make meaningful improvements to the facility and services.