FITNES

S CLUB

PROJECT

REPORT

Health & Fitness Club

PURPOSE OF THE DOCUMENT
This particular pre-feasibility is regarding Health and
fitness club comes under service sector. The objective
of the pre-feasibility is primarily to facilitate potential
entrepreneurs in project identification for investment
and in order to serve this objective; the document
covers various aspects of the project concept
development, startup, marketing, and finance and
business management

PROJECT PROFILE

Introduction and Importance of Physical Fitness

India is one of those countries where awareness about health and importance
of regular exercise is minimal. Statistics show that inactivity combined with poor
diet is second only to tobacco use in causing preventable deaths in the world. The
answer to protect from the fatal diseases is not to have treatment, rather to adopt
preventive measures through exercise and movement. The evidence in this case is
indisputable; Lifelong participation in physical activity has a significant, positive
impact on the health and well being of individuals.
The sedentary lifestyle is a major underlying cause of death, disease and
disability. About 2 million deaths every year are attributable to physical inactivity. A
WHO study on risk factors suggested that sedentary life style was one of the 10
leading causes of death and disability in the world. The inactivity also increases the
risk of colon and breast cancer, high blood pressure, lipid disorders, osteoporosis,
depression and anxiety. Recent studies have shown that children around the world
are also becoming increasingly sedentary especially in poor urban areas. Time and
resources devoted to physical education are being cut and computer games and
televisions are replacing physically active pastime ignoring the fact that the
inadequate physical activity in children could have lifelong health consequence.
Regular physical activity or exercise with good eating habits, avoiding smoking,
monitoring a reasonable body weight and avoiding stress could improve one's
health and help prevent from many diseases.
Most of the newspapers have no regular columns on health, besides very few
programs on physical activity are carried out by the radio and television. Moreover
the health sector is also not involved in the promotion of physical exercise. So there
is great need to promote activities regarding exercise and fitness. Good health
habits are very important at any age and it is never too late to change habits in
ways that will improve health. One of the key factors for increasing health is
exercise.
A regular program of exercise can:
Aid in weight management
Lower risk of heart disease and certain types of cancer
Increase life span and quality of life
Helps control hypertension and diabetes
Increase and maintain flexibility

 Reduces muscles tension

Promotes increased circulation
Aids in relaxation, stress reduction
Develops body awareness

Opportunity Rationale

The factor that leads to the development of this pre-feasibility study is the fact that
currently limited people have access to health and fitness clubs under qualified
instructors/trainers. Great scope for these types of clubs exist in India especially in
urban areas where life is busy and people have less physical activity.

Project Brief
A health and fitness club provides services to its members to improve their physical
condition or appearance through exercise. The proposed health and fitness club will
provide indoor facilities of Gymnasium, Exercise halls, and a Gym shop & Cafe to
male and female members and will offer services of personal training by qualified
instructors. Project should be centrally located within a residential town to provide
easy access to the inhabitants.

Project Capacity and Rationale

The proposed health club will have an area of 2000 sq ft hall having indoor
facilities. The club will operate in different sessions of the day like morning,
afternoon, evening and night. The club will have a capacity to cater 700 members,
spread over in the following different sessions of the day:

Operational session
Time Slots

Duration

Gym
6:00 am to 10:30 am ( Males
only)
11:00 am to 5:00 pm ( Females
only)
5:30 am to 10:oo pm (Males
only)

4.5 Hours
6 Hours
5 Hours

Fee package
The fee package will range from Rs. 500 for exercise session . In addition to these
monthly fees each member will pay Rs. 200 a non-refundable registration fee.
Membership
Fees
Silver
Membership
Fees
Golden
Membership

Fees
Platinum
Membership

Fees

1 years
5000.0
0

2 years
9000.0
0

3 years
13000.
00

4 years
17000.
00

5 Years
21000.0
0

12000.
00

23000.
00

34000.
00

45000.
00

55000.0
0

18000.
00

24000.
00

35000.
00

46000.
00

52000.
00

70000.
00

69000.
00

90000.
00

85000.0
0

110000.
00

Features
Gym

Cardio + Gym

Cardio+
Gym+Personal
training+ Body
massage in a month

Cardio +Gym+
Personal training+
Steammer+ 2 times
body massage in
months

Products mix

Gymna
sia

Body
massag
e

Gy
m
Cardio

Gym
Shop

Proposed Location
Health club should be centrally located within a developed/developing residential
society in any of the big cosmopolitan cities to provide easy access to inhabitants.
The rates should be set according to the affordability of people who live in these
neighborhoods.

Key success factors / Practical Tips for success

To obtain a good average of profits it is necessary to provide state of art facilities
to members.
The proprietor should himself has technical know how of all the services being
offered.
The services of qualified instructors and physician should be hired as supervised
workouts improve
results.
Utmost priority should be to provide members a lifestyle that encourages fitness
through the safest
and latest means. Products like heart-rate monitors, calorie expenditure display
units etc should be
used to enhance client motivation.
Strategic Recommendations
Marketing
At the initial stage heavy marketing would be required to attract members. After
establishing a clientele it is advisable to continue marketing the club services to
ensure its sustainability. The important marketing channels in this case would be
flyer distribution and Cable TV.

People normally consider the following factors while selecting a health club:
Convenience
For new fitness clubs to be a success, it has to be conveniently located. People are
more likely to use a facility if it is close to home or work. Also the fitness facility
should have hours and class times that work within clients busy schedule.
Type of Facility
There are many different types of fitness facilities, each being the perfect
motivational tool for a specific type of person.
Pricing
Price levels should be set at affordable levels considering income brackets of
people who live in the vicinity and also after considering the competitors price
levels.

SECTOR AND INDUSTRY ANALYSIS

National Analysis
Commercial Health club industry is emerging as one of the good business ventures
in India. People are getting conscious and aware about their health and feel the
importance of exercise in the busy life. Currently health club industry is segmented
and unorganized excluding few health clubs. There is neither an association of
these clubs which is working actively for the development of this industry nor
government or health department/ministry has collected any data about the
quantity and quality of these clubs. Neither have the authorities set any quality
standards for such clubs like in developed countries. A lot of people are venturing
into this trade, as it is a flourishing business. Competition is healthy but these gyms
do not cater to health needs that can be a risk. A lot of people after discontinue the
gyms after having complaints of joint pain and other related health issues.
This industry has gone through many technological developments. Some clubs use
products like heart-rate monitors, calorie expenditure display units etc, to enhance
client motivation. They have a complete lifestyle evaluation, which includes blood
pressure measurement, resting pulse rate measurement, and body fat assessment
before they recruit the new member into the program. Their instructors are certified
to give first aid and CPR (cardio pulmonary resuscitation), so members safety is
ensured.

Legal issues regarding industry

No approval from any provincial government or health department is required in
India for operating a health and fitness club. Health Clubs like any other business
activity must be registered with Services tax, income tax department and sales tax
department.
MARKET INFORMATION
Market potential The market for health clubs in India has been developing steadily
over the last decade and a mushroom growth of Gym and clubs is being observed
in all the cities. But still a good potential exists for quality health clubs. India is
emerging as a newly health conscious society. Location and amenities are some of
the most vital factors in the success of a health club.
Customers usually conduct research before choosing a fitness facility because
choosing a fitness facility that is right for them is crucial to their success. Fitness
facilities can vary greatly not only in price but also in size, amenities and programs
offered, hours, convenience and most importantly, motivational atmosphere. Many
join a fitness facility with the greatest of intentions but end up discouraged and
unmotivated due to bad management by the clubs.

Target customers
The target customers for health clubs are the population of big cities having age
group of 18 to 50 years. Population of urban areas of India is 33% of total
population out of which 50% falls in the targeted customers age group.

EXERCISE EQUIPMENT REQUIREMENT

The success of this project is depended on the quality of machines so selection of
machinery is the most important aspect of this project. The exercise equipment is
available in various varieties. Both local and imported equipment is available in the
market. Existing clubs in the market are using a blend of imported (which is locally
available) and local equipment. Following is the detail of machinery required for this
project.

quotation

Machine maintenance
Generally these machines require less maintenance except regular oiling and
occasional replacement of broken wires and bent rods. All parts are easily available.
LAND AND BUILDING REQUIREMENT
Land Requirement
The proposed health and fitness club requires an area of approximate 4,000 sq ft. It
is recommended to start the club in rented premises instead of owned premises to
avoid huge investment.
Covered area

Construction cost
Current construction cost of club is approx Rs. 1,000 per sq.ft. Total construction
cost of 4000 sq.ft. Area will be Rs. 40,00,000. To minimize the cost of the project it
has been assumed that the building for the health and fitness club will be taken on
rental basis.

Rent cost
The building required for the project will be of commercial nature. The rent of the
building will depend on not only the vicinity of the club as well as the floor on which
it would be located. The club can also be established in an independent house unit
that can be used for commercial purposes For this particular pre-feasibility the rent
amount has been taken at Rs1,21,500 per month (calculated at the nominal
commercial rate of Rs. 15 per sq.ft.)

Utilities requirement
The necessary utilities are electricity, telephone and water. A three-phase
commercial electricity connection is required. Current rate of electricity for these
connections is Rs 6.00 per kilowatt-hour.

HUMAN RESOURCE REQUIREMENT

The total human resource requirement of the health and fitness club is 17. Skilled
instructors are easily available at competitive salaries. Number of workers required
for each department is as follows

Employees salary

CRUCIAL FACTORS & STEPS IN DECISION MAKING FOR INVESTMENT

SWOT Analysis
A SWOT Analysis is a strategic planning tool used to evaluate the Strengths,
Weaknesses, Opportunities, and Threats involved in a project or business venture.
Strengths and weaknesses are internal to the company whereas the opportunities
and threats originate from the external environment. A SWOT analysis is usually
performed early in the project development process, and helps organizations
evaluate the environmental factors and internal situation facing a project.
Strengths and opportunities
Easy availibility of resources/equipment

 Easy availibility of instructors

Growing population
Expanding cities
Growing health conciousness and awareness
Weaknesses and threats
Heavy taxes in the form of sales tax and income tax
High fees of the clubs make it difficult to afford by middlle and low income group
Availibility of portable machines that one can easily use at home without an
instructor
Costly imported equipment

FINANCIAL ANALYSIS
Project Cost
Capital investment for purchase of equipment is the major component of total
project cost of a Health and Fitness club. Following table shows the detail of the
Project cost: