Endurance Fitness Business Plan 2019
Endurance Fitness
123 Second Street, Melbourne, VIC, 3000
ABN: 101 112 134
Business Plan 2019
Contents
Business details 3
Business premises: 3
Organisational structure 4
Staff Profiles: 4
Product profile 6
Operations 7
S.W.O.T. analysis 11
Vision statement 11
Mission statement 11
Strategic goals – 2020 to 2021 12
Growth strategy 12
2019 Profit and Loss 14
Business details
Endurance Fitness is a chain of gyms with three locations in and around Melbourne city, offering functional fitness programs and personal training in gymnasium settings.
Business name: Endurance Fitness Pty Ltd.
Trading name: Endurance Fitness
Date registered: 1st March 2015
Date of commencing operations: 1st February 2016
Location: 123 Second Street, Melbourne, VIC, 3000
Business structure: Pty. Ltd.
ABN: 101 112 134
GST: Registered for GST.
Domain names: endurance.com.au
Business premises:
Endurance Fitness has three gyms, at the following locations:
- Endurance Fitness Melbourne CBD – 123 Second Street, Melbourne, VIC, 3000
- Endurance Fitness Port Melbourne – 1 Sample Street, Port Melbourne, VIC, 3207
- Endurance Fitness Airport West – 2 Any Street, Airport West, VIC, 3042
Organisational structure
Staff Profiles:
Vanessa Choi
Vanessa is a co-owner of Endurance Fitness.
Vanessa has more than 20 years of experience in strength training coaching and 15 years of experience as a personal trainer, and gym management. Vanessa has been a functional fitness coach for six years and decided to turn her passion for functional fitness into a business in 2016, in partnership with Arvin Krishnan.
Vanessa manages the class programming and operations management functions in the business.
In addition, Vanessa also coaches classes at the Melbourne CBD location of Endurance Fitness .
Qualifications and certifications:
- Diploma of Fitness
- Functional fitness certificate course
Arvin Krishnan
Arvin is a co-owner of Endurance Fitness , along with Vanessa Choi. Arvin has more than 10 years of experience in the fitness industry in Australia and overseas. Arvin started his career as a personal trainer, and quickly moved on to management roles in renowned fitness centre chains. Arvin has a thorough understanding of the operational and financial requirements of a fitness centre chain.
Arvin manages the finance functions in the business.
In addition, Arvin also coaches classes at the Port Melbourne location of Endurance Fitness .
Qualifications:
- Certificate IV in Fitness
- Bachelor of Business (Marketing)
Maria Lorenzo
Maria is the head coach and centre manager at the Airport West location of Endurance Fitness .
Maria has had five years of experience working as a functional fitness trainer, including two years as gym manager.
Maria has the following qualifications and certifications:
- Functional fitness certificate course
- Certificate IV in Fitness
Marketing Manager
The Marketing Manager works closely with the the business owners to create and implement marketing strategies and plans. The Marketing Manager also manages the website and social media accounts of Endurance Fitness .
Minimum qualifications:
- Bachelor of Business (Marketing)
Coaches
All coaches have a minimum of one year’s experience as functional fitness trainers/ coaches or personal trainers.
In addition, all coaches have the following certifications:
- Functional fitness certificate course
Recruitment:
All positions are recruited through word of mouth or advertising on job search platforms such as Seek.com.
Position descriptions with required qualifications, experience and Key Selection Criteria are prepared for all positions, and maintained in staff files.
Product profile
Endurance Fitness gyms are a safe space for adults of all ages and fitness levels to engage in constantly varied high-intensity functional movement training, and build health and fitness skills for a better life.
Training is conducted in two modes – group classes and personal training (PT).
Training is conducted in specially fitted out functional fitness gyms, which have various weights, rowers and bikes, Olympic lifting platforms and gymnastic rigs.
Unique selling position:
Many functional fitness gyms are very strongly oriented towards serving experienced athletes and gym-goers. This is reflected in the coaches they have, the marketing messaging, and the ambience of the gyms.
However, Endurance Fitness fosters a strong spirit of community and inclusivity, making it a safe space for people who are not athelets or are just starting out on their fitness journey to begin training.
The company hires coaches who are approachable and have proven abilities to adapt programs for clients of all fitness levels.
Each day’s workout is split into three modes – from beginner, intermediate and advanced. In each group there is a mix of fitness levels, and coaches actively encourage experienced and inexperienced clients to train together to build respect and acceptance of all abilities.
There are many members with physical and intellectual disabilities who train regularly in group classes.
Services such as child minding and children’s functional fitness classes are available on weekends to encourage families to participate in training.
Marketing messaging is focused on encouraging everyone of all fitness levels to participate in improving their health and fitness.
Operations
Income streams:
The primary source of income for the company is membership and client attendance at Endurance Fitness .
However, 3% – 4% of the company’s revenue comes from merchandise and retail sales, including food, drink and supplments, as well as Endurance Fitness t-shirts and hoodies.
Key costs:
Rent and staffing are the biggest ongoing costs to the organisation.
Functional fitness gyms typically require large floor spaces, and these are more expensive to rent in inner city locations of Melbourne CBD and Port Melbourne.
Endurance Fitness has a low coach turnover rate as coaches are paid competitively. Coaches are paid at $70 per hour. In addition, Endurance Fitness will also cover certification fees for certain coaches, to upgrade their qualifications. These fees are typically $1000 per person.
Classes:
All locations of Endurance Fitness run the following sessions per week:
Table 1: Endurance Fitness weekly staffing requirements
| Session type | Duration | Staffing requirement | Class size | No. of sessions per week |
| Weekday class | 1 hour | 1 coach | Max. 15 | 30 |
| Weekend class (Airport West) | 1 hour | 1 coach | Max. 25 | 4 |
| Weekend class (Melbourne CBD and Airport West) | 1 hour | 1 coach | Max. 15 | 4 |
| Open gym – unsupervised workout | 1 hour | Head coach at reception | Max. 10 | 20 |
| Personal training | 1 hour | 1 coach | Max. 2 | 4 – 6 |
Pricing:
Functional fitness programs are typically priced higher than traditional gyms because of the guaranteed individual attention and personalised feedback that each member receives during the class session. As such, it is a blend of personal training and group training modes.
Table 2: Endurance Fitness membership prices FY2019
| Membership/ use type | Contract type | Contract duration | Price |
| Full membership – access to all classes | Fixed contract | 12 months | $190 per month |
| Full membership – access to all classes | Fixed contract | 6 months | $210 per month |
| Full membership – access to all classes | Fixed contract | 3 months | $225 per month |
| Month to month – 3 classes per week | No contract | Unlimited | $179 per month |
| Month to month – access to all classes | No contract | Unlimited | $239 per month |
| 10 class pass | No contract | 3 months | $210 |
| Weekly drop in/ visitor | No contract | Unlimited | $65 per week |
| Daily drop in/ visitor | No contract | Unlimited | $25 per day |
| 3 X Personal training sessions | No contract | Unlimited | $150 |
Staffing:
Coaches are rostered depending on availability.
Centre managers, who are also the head coaches at each location, work full time.
At each location, some coaches work on a casual contract basis, while some coaches work on a part-time basis.
Centre managers are responsible for recruiting, training and rostering coaches.
Programming:
Programming of workouts in classes is decided in 12-week cycles. Programming is done by the CEO, the Operations Manager and the head coaches collaboratively, using video conferencing.
Programming is based on trends from across the functional fitness community, as well as on needs of key client cohorts at each location.
Member management:
Bookings and memberships are managed through Wodify, a widely used gym management software.
The software allows centre managers to identify income, seasonality and trends, popularity of classes, and progress of clients.
Suppliers:
Centre managers have the autonomy to select suppliers for retail products such as energy drinks, protein snacks and dietary supplements, to sell at the reception of each centre.
It is the responsibility of managers to select suppliers based on company policies.
Centre managers provide quarterly sales reports to the head office.
Target market:
While Endurance Fitness welcomes adults at every age and fitness level, the target market for functional fitness programs is adults between 25 and 34 years.
At this age, adults are generally starting “grown up” lives and establishing good self care habits. The older end of this spectrum also is like to engage in a regime that maintains youthfulness and energy.
Demographic split:
Endurance Fitness ’s clientelle consists of the following demographic split:
- Under 18: 4%
- 18 – 24 : 23%
- 25 – 34 : 45%
- 35 – 44 : 18%
- 45 – 54 : 9%
- 55 – 64 : 1%
Marketing strategy:
There is a website developed with inputs from an SEO consultant, and a listing on Google Maps.
The company also uses social media such as Instagram and Facebook, to promote member profiles and tips on health, fitness and nutrition, in order to give potential customers a glimpse of the culture at Endurance Fitness .
Operational snapshot:
As of 30th June 2019, Endurance Fitness has the following full time/ long term membership numbers:
Table 3: Endurance Fitness membership numbers FY2019
| Membership type | Melbourne CBD | Port Melbourne | Airport West | Total |
| Full membership – 12 months | 70 | 60 | 100 | 230 |
| Full membership – 6 months | 20 | 10 | 5 | 35 |
| Month to month – 3 classes per week | 27 | 13 | 6 | 46 |
| Month to month – all classes | 15 | 5 | 2 | 22 |
| Personal training | 4 | 2 | 3 | 9 |
| Total | 136 | 90 | 116 | 342 |
Below is a quarterly breakdown of short term/ casual membership and attendance for all centres in the previous financial year (2019).
Melbourne CBD
Table 4: Endurance Fitness Melbourne CBD membership numbers FY2019
| Membership/ attendance type | Q1 | Q2 | Q3 | Q4 | Total |
| Full membership – 3 months | 3 | 6 | 2 | 4 | 15 |
| 10 class pass | 4 | 1 | 4 | 1 | 10 |
| Weekly drop in/ visitor | 3 | 7 | 4 | 3 | 17 |
| Daily drop in/ visitor | 35 | 21 | 25 | 19 | 100 |
| Total | 45 | 35 | 35 | 27 | |
| Total for 2019 | 142 |
Port Melbourne
Table 5: Endurance Fitness Port Melbourne membership numbers FY2019
| Membership type | Q1 | Q2 | Q3 | Q4 | Total |
| Full membership – 3 months | 6 | 1 | 2 | 4 | 13 |
| 10 class pass | 3 | 2 | 7 | 3 | 15 |
| Weekly drop in/ visitor | 6 | 0 | 3 | 2 | 11 |
| Daily drop in/ visitor | 17 | 2 | 6 | 7 | 32 |
| Total | 32 | 5 | 18 | 16 | |
| Total for 2019 | 71 |
Airport West
Table 6: Endurance Fitness Airport West membership numbers FY2019
| Membership type | Q1 | Q2 | Q3 | Q4 | Total |
| Full membership – 3 months | 1 | 1 | 3 | 0 | 5 |
| 10 class pass | 0 | 0 | 5 | 0 | 5 |
| Weekly drop in/ visitor | 0 | 0 | 1 | 0 | 1 |
| Daily drop in/ visitor | 0 | 0 | 0 | 0 | 0 |
| Total | 1 | 1 | 9 | 0 | |
| Total for 2019 | 11 |
S.W.O.T. analysis
| Strengths | Weaknesses |
|---|---|
| Low staff turnover High client participation in scheduled classes and special events Strong community and culture of acceptance and inclusivity Highly experienced and dedicated staff | High costs associated with customised, personal service Staff resistant to change |
| Opportunities | Threats |
| Development of broader range of programs for diverse clientele, diverging from functional fitness , such as: yoga functional fitness for older adults Development of new programs and clientele in Airport West | Rise of cheaper training options such as yoga or F45 |
Vision statement
To establish Endurance Fitness as a highly reputed chain of functional fitness gyms in Victoria.
Mission statement
To provide the highest quality fitness experience in the following ways:
- ensure coaches have functional fitness coaching skills as well as strong communication skills
- ensure that all members receive both individual attention and a sense of community in a group setting to maximise motivation
- ensure that equipment and programming is on par with standards in the functional fitness industry
Strategic goals – 2020 to 2021
By the end of financial year 2021, Endurance Fitness aims to:
- achieve a minimum of 550 long term members in total across three locations of Endurance Fitness (long term members include all members with full and month-to-month memberships)
- achieve a profit margin of 30%
Growth strategy
In order to achieve its strategic goals, Endurance Fitness must focus on growing the client base in Airport West.
Melbourne CBD and Port Melbourne gyms have smaller capacities for expansion, due to smaller premises and steeper costs associated with running these facilities.
However, there is further scope in Airport West to accommodate 100 more members in various new types of programs.
Market demand
Research indicates that the demand for functional training will continue to increase through to 2021.
However, there is likely to be a greater focus on holistic training for long term wellbeing of body and mind, particularly among older adults and baby boomers.
For example, even within a functional fitness setting, some cohorts will prefer to train functional movements with lower intensity, to build flexibility and good form, not just strength and stamina.
This is also supported by the continued increase in the popularity of yoga and mindfulness based training modalities that focus on form and muscular alignment, rather than reps, rounds, or weight lifted.
At the same time, functional fitness programs in Australia are priced very competitively, with new competitors constantly entering the market, offering new programs with steep discounts to clients who pay up front. Moreover, exercise options such as yoga or boxing are cheaper than functional fitness, and continue to remain popular.
Therefore, there is scope within Endurance Fitness to offer different kinds of programs to a wider market, such as adults in age groups 50 years and older.
Demographics
18 – 34 year olds represent the largest demographic group in Endurance Fitness ’s clientele, and the population of suburbs is largely composed of adults aged 30+ with families.
Individuals with family responsibilities residing in suburbs may have different training needs than singles or individual residing in CBD or inner city areas.
Obstacles to change
Influenced by the global culture of functional fitness , the culture at Endurance Fitness has also been one of “high octane” performance. Even though workouts are scaled to suit individual ability, all members are encouraged to push themselves during workouts, and track performance using metrics such as rounds, times and weights for various movements.
All the coaches are equally as passionate about functional fitness as the owners of the company are.
Moreover, coaches have consciously made a career move towards specialising in functional fitness.
Therefore, there may be a resistance from coaches to diversify the product offering and include programs other than functional fitness, such as yoga, which have different metrics for progress, and different training goals.
Opportunities for growth
In 2020 and 2021, Endurance Fitness will develop a program called Mindfully Fit to be offered in addition to existing programs. The program will consist of:
- Low intensity frequently varied functional training for adults with special needs, combining strength, mobility training, yoga and mindfulness.
This program will be actively marketed to the target groups to build awareness and increase membership.
