ABC fitness center and CBD sidney analysis

The business outlined in this proposal is a fitness centre that will offer a variety of exercise techniques, which target the female office workers, students, and tourists. This market is profitable and has the possibility of bringing in over $1.2 billion annually (Australian Bureau of Statistics, 2011, 4). Reports suggest that the memberships of private clubs have increased yearly.

ABC Fitness Center seeks to offer its members and patrons quality benefits and services, which are rivalled by no other fitness center. The investments will be used wisely in order to have sports facility that caters for the needs of the customers. It has been identified that the top three profitable services are massage therapy, personal training, and health foods and beverages. The ABC Fitness Center will provide these top three services thus increasing productivity.

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Through our knowledge of Sidney CBD area and the existing willingness to take risks, the ABC Fitness Center will be a to-go-to fitness center leading to productivity. The Sidney CBD where the fitness center will be located has a large population of female office workers and students. The location is also a high traffic area for tourists. This therefore means that the clientele pool is large and the target clients have the socioeconomic status that will be required to maintain our service.

The fitness center will be coordinated among four employees including the owner to create “the ultimate sport’s fitness.”


The objectives of the ABC Fitness Center are the following:

  1. To exceed 75% class capacity by the end of the first year of operation
  2. To enroll 350+ memberships by the end of the second year of operation
  3. Increase the number of new members by the 15% by the end of the third year.

Mission Statement

The mission of the ABC Fitness Center is the following:

  1. To create a quality client focused fitness environment that seeks to meet the fitness goals and promote confidence in the clientele.


Target market

The target market is the office female workers who are interested in an active lifestyle, students from the various colleges and universities who may not be able to afford the expensive memberships, and the tourists. The target market is good since there is a large volume of people in the category who are able to access the ABC Fitness Center.




Location of ABC Fitness Center is one of the most important aspect of the proposed business. This will decide on the number of the target market who will be able to access the fitness center. The Sidney CBD where the fitness center will be located has a large population of female office workers and students. The location is also a high traffic area for tourists. The identified rental space is conveniently located between the junction of Bathurst and Elizabeth Streets. It has a total floor space of about 10,000 square feet. It is not only ideal because it has sufficient parking area, but also because of the spacious area that allows for the hosting of several facilities. Additionally, it is easily accessible and it is located in a high traffic area. To lease the property, ABC would have to pay $2 per square foot monthly. It therefore means that the fitness center will pay $ 20,000 every month.


Owner- C.E.O

Personnel plan









Owner- C.E.O

The owner will not draw any salary from the business for the first six months of operation. Thereafter, he will be paid $40 per hour.

Job description: To carry out the day-to-day management of the fitness center and to meet with the prospective clients, and financiers

Finance and marketing officer

Available position: one

The finance and marketing officer will be employed on a permanent basis. S/he will be paid $ 25 per hour.

Job description: come up and outline the marketing strategies that the fitness center will implement. Responsible for the maintaining the books of account of the fitness center


Available positions: three

The trainers will be working on commission basis and they will be paid according to the number of clients that they meet with. They will be paid $12 per hour.

Job description: the trainers will train the individuals to use the facilities in the fitness center safely to achieve maximum benefits.


Available positions: one

The cleaner will receive $ 5.80 per hour and will be a part-time employee.

Job description: ensure that all the fitness center’s facilities are clean. Pick up the luggage left behind by the members and mop the floors



SWOT Analysis

Below is a list of Strength, Weaknesses, Opportunities, and Threats (SWOT) for ABC Fitness Center. The fitness center will use the list to maximize its strengths and opportunities while at the same time minimize its weakness and threats.

Internal factors strengths weakness
product Clean and stylish  Members don not have the option of group training
  No long term commitment No on-site extras such as spa and steam room
  Payment is staggered over a period of a month  
  Personal trainer  
price The low monthly membership fee The annual fee is payable regardless of the use of the members use of the facility
  Low annual membership fee as compared to the competitors  
Promotion Many channels are available for reaching the customer Some advertisements options are expensive.
External factors opportunities threats
place Located in a high traffic area A small facility that will eventually lead to a cap on the number of members
competition Membership for the existing fitness centres are higher Most of the target market are already members of the existing fitness centres
Socioeconomic There is an increasing trend in getting fit Seasonal customers may not be willing to pay for the annual membership



Industry Analysis

A fitness centre is a service facility that provides physical health care and exercises to its members with the help of specialized equipment. The fitness centre environment is casual to provide customers with a comfortable experience. The health and wellness industry is highly competitive. Each fitness centre seeks means of competing effectively within the industry. The high returns and the growing trend of the multitude of people to seek health and fitness centres attract new entrants into the industry. There are no significant barriers to entry of new firms. The threat of substitutes in the health care and exercise industry is negligible (Michael, Nicholas, and McGahan, 1998, 44). Physical health requires the use of special equipment and personalized guidance from a trainer: can only access in a fitness centre. The industry is customer-oriented. Due to the cutthroat competition, the customers have a wide variety of offerings (Porter, E. 2008, 12-15)



Plans and Strategies to gain competitive advantages (strategic management process)

ABC Fitness Center will provide an employee value proposition. It will ensure it acquires state of the art facilities fitted with the latest equipment from quality manufacturers. Additionally, it will employ low monthly and annual subscription plans. The members who sign up will enjoy personalized attention from the qualified trainers so that they achieve the results they want (Stauffer, D. 2003, 56-58).




The proposed start-up capital for ABC Fitness Center is $300,000. The investor has put down half of the amount ($150,000) as part of the starting capital. There is however a deficit of $150,000. The investor proposes to apply for a loan from the XYZ Bank to cover the deficit. ABC Fitness Center has a unique opportunity to tap into a large number of people who are becoming health conscious. The target market of the employed women, students, and tourists will ensure there is the required cash flow to repay the loan.



ABS (Australian Bureau of Statistics), 201. Perspectives on Sport. Commonwealth of Australia, Canberra.

Michael, P., Nicholas, A., Anita, M., 1998. An Interview with Michael Porter.The Academy of Management Executive16:2:44.

Porter, E. (2008) The Five Competitive Forces That Shape Strategy, Harvard Business Review.

Stauffer, D., 2003. The Power of Competitive Intelligence. Cambridge: Harvard Business School Publishing,


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