Familyfit: a Unique Crossfit Facility

FamilyFit: A Unique CrossFit FacilityJuly 7, 2017

Executive Summary

This business plan will go through the Operations Plan, Human Resources Plan, Marketing Plan and Financial Plan for FamilyFit. FamilyFit is a unique CrossFit experience, with a focus on family and kids’ fitness, as well as individual athletes.

This plan will show in the Operations Plan that there is very low start up costs, as well as few expenses. It will also show the breakdown of debt and equity.

The Human Resources Plan will break down the staff requirements and class schedule. The plan focuses on retaining the right kind of staff and creating the community atmosphere that FamiyFit wants to be known for.

The Marketing Plan outlines an aggressive online and social media marketing plan, and plans to include word ofmouth advertising. This plan outlines the need to get, maintain and grow the membership numbers, as this is the only critical element to the success of this business.

Finally, the Financial Plan will outline the Capital and Financing Budget, Dividend Policy, Profitability, Cash Balance, Risk and Sensitivity Analysis, Breakeven Analysis and Owners Compensation. The Financial Plan shows that, even with loses in the first few years, FamilyFit’s projections show increases growth which leads to an increase in owners’ compensation in years 5 and onward.

A complete Financial Model is attached.

Table of Contents

Executive Summary

Introduction

Operations Plan

What is CrossFit?

Who We Are and What We Do

The Schedule

Group Classes

Family Classes

Kids Classes

Floor Plan

Day to Day Operations

Capital Budget

Operating Budget

Human Resources Plan

The Organization Chart

Year 1&2 Staff Requirements:

Year 3-5 Staff Requirements:

Staffing Job Descriptions

Owner/Manager

Job Description – Main Coach

Job Description – Assistant Coach

Job Description – Administrative Assistant/Bookkeeper

Salaries and Wages Expenses

Staff Training and Retention

Marketing Plan

Positioning Statement

Value Proposition

Product

Place

Location

Target Segment

Membership Growth

Price

Promotion

Website

Social Media Advertising

Word of Mouth Advertising

Marketing Expenses

Financial Plan

Capital Budget and Financing Budget

Dividend Policy

Profitability

Cash Balance

Risk & Sensitivity Analysis

Break Even Analysis and Cushion

Owners Compensation

Tables and Appendices

Table 1 – Membership Prices

Table 2 - Class and Coaching Schedule

Table 3 – Capital Budget

Table 4 - Financing Budget

Table 5 - Operating Expenses

Table 6 - Salaries and Wages Expenses

Table 7 - Membership Growth and Revenues

Table 8 - Net Income

Table 9 - Cash Balance with Financing Activities

Table 10 - Risk & Sensitivity Analysis

Table 11 - Breakeven Analysis

Table 12 - Owners’ Compensation

Appendix 1 – Floor Plan

Appendix 2 - Organizational Chart

Introduction

FamilyFit is a unique CrossFit facility that incorporates regular CrossFit fitness with a family friendly atmosphere. This unique facility caters to busy family’s who want to both work out together and have a high standard for fitness. FamilyFit is for everyone, any skill level, and any fitness level. FamilyFit offers a unique and fun community atmosphere and expert coaching.

Community is at the heart of what this facility does. It offers a unique family fitness atmosphere, great programming and competitive pricing, and tonnes of fun through community events, a great workout atmosphere, and inclusion in the bigger CrossFit community events, such as the Open and the CrossFit games.

Operations Plan

What is CrossFit?

CrossFit is described by CrossFit Inc as “constantly varied functional movements performed at high intensity. All CrossFit workouts are based on functional movements, and these movements reflect the best aspects of gymnastics, weightlifting, running, rowing and more. These are the core movements of life. They have the largest loads the longest distances, so they are ideal for maximizing the amount of work done in the shortest time”. Yet CrossFit is more than just movements by the body. It is a movement of like minded people that have come together the share in the work, the defeat, the wins, the pain and the achievements that all come with doing CrossFit workouts. CrossFit is a community, and this community is the reason that CrossFit is as effective as it is.

Who We Are and What We Do

Community is at the heart of who we are and what we do. FamilyFit offers a unique community and family workout environment, inclusive of all age groups, fitness levels, skills and abilities. We do great workouts, with great coaches and great people, and we have fun doing it! In addition to unique and dynamic group classes, the facility also offers family classes and a dedicated kids area for kid’s classes. The kids’ area is viewable from the main gym area, and will be equipped with gymnastic equipment, barbells (for kids), weights, kettlebells and a fun zone! The kid’s classes will be geared towards having fun and learning functional movements, along with the basics of weightlifting. All coaches will be equipped to work with the kid’s classes.

The business is set up as a sole proprietorship, with myself, Janyce Yuzbasheva, as the sole owner and manager of the facility.

The Schedule

The group classes, kids’ classes and family classes schedule is outlined in Table 2. This will be anticipated class and coaching schedule for the fist year. It is anticipated that this schedule will have changes with the ebb and flow of the business, as some days and times become more active or less active, and with the increase of memberships. This schedule also serves as the anticipated coaching schedule fore the first year, with the anticipated number of hours required for each coach.

All classes are one hour in duration. A description of the classes are as follows:

Group Classes

These consist of regular member classes. These classes offer warm up, in class movement coaching and group workout.

Family Classes

These consist of regular members and their families. Family members include anyone who is a member who is an immediate family members – parents, kids, grandparents, aunts and uncles. These classes will be specially targeted to families, scalable, and aimed for great family fun while working on CrossFit and fitness skills.

Kids Classes

These consist of kids ages 6-11. These classes target basic movement skills, including weightlifting, gymnastic and functional movements. Games will be played, with a focus on fun!

It is important to note that CrossFit class schedules are often fluid, and are dependant on the times members are available and willing to attend. The schedule above reflects a full working schedule, that will adjust with the fluidity of the membership and community.

Floor Plan

The floor plan can be found on Appendix 1. The facility is a 2000 square foot warehouse-style facility, in Saskatoon’s north end. The facility will need minimal leasehold improvements the make it ready for members use. There will be some building required to make sure the bathroom and warehouse areas are acceptable, as well as including an office and staffroom space. Most of the 2000 square feet will be dedicated to a main workout area, kid’s area, gymnastic area and open equipment storage. There would also be some dedicated rubber gym flooring that will be laid. There is no special ceiling or painting that will be required.

The layout of the facility will include a main training area, with a detached rig that allows for members use on either side. The main workout area will also have the standard overhead door that can be found in most CrossFit gyms. There is a dedicated kid’s training area, complete with a kid’s rig, gymnastic equipment, and kids training equipment. This will be separated by a chain link fence. There will also be a kid’s play space, for those times when they aren’t training.

The bathrooms/change rooms, staff area, offices and reception area will be renovated with appropriate flooring and furniture. The costs of all this is included in the leasehold improvements show on the Capital Budget in Table 3.

Day to Day Operations

The facility will be open from 6am – 9pm Monday to Friday, and from 10am to 1pm Saturday and Sunday. This schedule allows for 8 group classes, as well as some down time between the busier periods of the day.

During class time, the class will be coached by whoever isscheduled for that day. Other daily operations will be tended to in the off hours of the day. This will include any office related tasks, bookkeeping, administration, marketing and advertising, and anything else that could arise. All the office related tasks will be looked after by the Owner/Manager, until year 3, when it is anticipated the facility will be busy enough to hire an administrative assistant/bookkeeper. The owner/manager will also assist in coaching duties as required.

Walk-ins will be welcome at the facility, and will be tended to on an as needed basis by whoever is scheduled to work that day.

Capital Budget

The Capital Budget is broken down into leasehold improvements and equipment and flooring. There is $40/square foot for the 2000 square foot facility, for a total of $80,000, as well as $31,000 for equipment and flooring. Roughly $8000 is allowed for the special flooring and the rest is an equipment package that can be purchased through Rogue Fitness Canada. It is anticipated that will minimal leasehold improvements needed, that $80,000 will be more than enough to cover all requires expenses for bathrooms and changerooms, staff room, office and reception area. A complete Capital Budget can be found in Table 3.

Operating Budget

5 years of Operating Expenses are outlines in Table 5. The expenses are standard, and include the accounting and legal, advertising, utility costs, lease and occupancy costs, insurance, salaries for the owner/manager, main coach and assistant coaches, capital costs and debt interest. The one additional costs that will be a recurring $3000 fee year after year is the CrossFit affiliate fees. These fees are paid to CrossFit headquarters, and allow the facility to register itself as a licenced CrossFit gym.

Human Resources Plan

The Organization Chart

The organization chart can be found in Appendix2. The organizational chart illustrates the positions of the various staff members, as well as the year of their anticipated employment. These are anticipated based on projected increases in memberships over a 5-year period.

The Owner/Manager position will be myself. I will oversee and operate the day-to-day operations of the facility. Additional staffing requirements are anticipated to be as follows:

Year 1&2 Staff Requirements:

Owner/Manager
Main Coach (Coach 1)
Assistant Coaches – 2 required (Coach 2 & 3)

Year 3-5 Staff Requirements:

Owner/Manager
Main Coach (Coach 1)
Assistant Coaches – 2 required (Coach 2 & 3)
Assistant Coaches –Added in Year 3 (Coach 4)
Assistant Coaches - Added in Year 4 (Coach 5)
Administrative Assistant/bookkeeper – added in Year 3

It’s important to note here that class and coaching schedule will change over a 5-year period based on changes in membership numbers, need for additional classes, and the need for additional services for members. These changes could happen sooner or later than the plan indicates, as the needs of the community change.

Staffing Job Descriptions

Various levels of coaches will be required to cover all the class times offered. As indicated above there will be one main coach, and up to 4 additional assistant coaches anticipated over the next 5 years. One administrative/bookkeep position is also anticipated in the third year. Descriptions of their positions and what will be required are as follows:

Owner/Manager

This position will be filled by Janyce Yuzbasheva, the sole owner of this business. All the day-to-day operations of the business will fall within this job description, including all the bookkeeping, marketing and memberships and human resources. She has a Bachelors Degree in English and Russian (Double Honors), and an MBA (being completed summer 2017), both obtained from the University of Saskatchewan. She is also an owner/shareholder and director at Lambert Distributing since 2007. She has held multiple positions within various non-profit organizations since obtaining her undergraduate degree in 2005. She also sits on her daycare Board of Directors, and holds the position of Vice-President.

Job Description – Main Coach

The FamilyFit Experience:

FamilyFit is a unique CrossFit community that wants to continue the tradition started at CrossFit headquarters. The goal of this facility is to carry the tradition of CrossFitting in to a family dynamic, providing the whole family with a unique shared family fitness experience. FamilyFit is the right fit for every active family, and for newly active families to come together, to learn about fitness and functional movement using multiple modalities. This facility will provide coached classes that integrate weightlifting, functional movement, powerlifting movements, gymnastics, endurance, stability enhancing movements, and fun!

This family centered facility offers group classes, kids classes, and combined family classes. There is a dedicated kid’s area, viewable from the main gym area, equipped with gymnastic equipment, barbells, weights, kettlebells, and a fun zone! The main gym area is fully equipped for adults to WOD. Family classes with combine fun with a great CrossFit workout scaled to all levels of the family.

Community is center of our facility. It is the reason we CrossFit. Fitness is the result of doing something you love in a community you love.

Coaching Position Requirements:

Must be able to work with multiple levels of fitness. A background in weightlifting, gymnastics, and multiple fitness modalities an asset, but can be taught. A passion for leading and motivating required. Must be able to work in a team, and foster a team atmosphere. Must have a passion for mentoring new and veteran CrossFitters, and come with a family focused mindset.

Coaches will be required to coach scheduled classes, providing top notch assistance to members on scaling’s, movements, and direction on the movements themselves.

Flexibility will be available.

Required Experience:

CrossFit Level 1 certification. A background in Kinesiology is required, but not essential. A background in fitness coaching required, and other skills can be taught. A passion for fitness and working in a community oriented gym required.

Hours required: up to 80 hours per month, with the opportunity for advancement as the community grows. The hours will be shared with the assistant coaches and determined by the weekly class schedule.

Wage: $26.00/hour Main Training Coach

Job Description – Assistant Coach

The FamilyFit Experience:

Community is center of our facility. It is the reason we CrossFit. Fitness is the result of doing something you love in a community you love.

Coaching Position Requirements:

Coaches will be required to coach scheduled classes, providing top notch assistance to members on scaling’s, movements, and direction on the movements themselves.

Flexibility will be available.

Required Experience:

Hours required: up to 48 hours per month, with the opportunity for advancement as the community grows. The hours will be shared with other coaches and determined by the weekly class schedule.

Wage: $24.00/hour Assistant Coaches

Job Description – Administrative Assistant/Bookkeeper

The FamilyFit Experience: