Small group personal training

1. Open Air Fitness
Personal Training in a
Small Group Setting
Teresa Griffith

2. Business Concept
• The Problem:
– People would like to exercise and get into shape but do not want to commit to
an expensive annual contract at a gym.
– After committing to a membership it can be difficult to stay motivated.
– Personal trainers help keep motivation high, but come at a high cost.
• The solution
– A company of group personal trainers offering classes on a non-committal basis
without an annual commitment, and the flexibility of utilizing a “block” of
sessions as desired.
• The sessions would be held outside in a public park or open community area, with
convenient access to all participants.
• Start up costs
– Minimal to none. The personal trainers would be paid a percentage of each
customer’s fee ($15 a session, trainer receives $10, company receives $5).
– The customer could purchase vouchers to be used as desired, no requirement to
attend continuously per month.
– The sessions will be held outside in parks or public areas, if the weather was bad
a back-up facility could be arranged. If necessary could purchase some exercise
bands or similar items, but not really necessary. The sessions would be similar to
a boot camp experience.
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3. • Strengths:
SWOT
– Exercise in the open air
– No gym/club memberships or contract commitments
– Sessions are conducted in small groups with certified personal trainer
– Group session helps keep clients motivated and encouraged to continue a healthy lifestyle
• Weaknesses:
– Weather (Summer heat and rain)
– Customers may not believe they are getting personalized attention in a small group setting.
– Some attendees may be more advanced than others, and not experience a challenged workout.
• Opportunity
– Undeveloped market
– More flexible exercise experience (exercise fits within your schedule)
– Market for personal training is predicted to increase 29 percent over the years of 2008-2018 (Bureau of
Labor Statistics, 2010)
– The baby boomer generation is aging and a segment of the population that is becoming more
concerned about health and physical fitness
• Threats
– Local clubs may offer similar programs indoors
– Potential participants may feel a public place is less safe than a club or gym
– No way to control how many people visit the open location: crowed on weekends.
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4. Value Proposition
• Provide economical group personal training services in a motivational, fun
atmosphere to assist clients in reaching their fitness goals.
– Low cost small group personal training as an under developed market.
– The demand for personal training services is expected to increase 29% over the
next ten years (Labor of Bureau Statistics, 2010).
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– Value lies in the lack of group personal training options, the affordability of such
services and the increased interest in health and fitness (Bureau of Labor
Statistics, 2010).
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5. Income Statement
Year 1 Year 2 Year 3
Sales 401,760 442,080 486,000
Cost of Sales 500 500 700
-------------- -------------- --------------
Gross Profit 401,260 441,580 485,300
Wages Expense 267,840 294,720 324,000
Selling & Admin. Expenses 300 400 500
Depreciation 0 0 0
Other
-------------- -------------- --------------
Total Expenses 268,140 295,120 324,500
-------------- -------------- --------------
Net Income Before Interest & Taxes 133,120 146,460 160,800
Interest Expense 0 0 0
Taxes 35% 46,592 51,261 56,280
-------------- -------------- --------------
Net Income After Taxes 86,528 95,199 103,800
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