Feasibility Study

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NEW ERA UNIVERSITY

COLLEGE OF BUSINESS ADMINISTRATION

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I. INTRODUCTION

The word “gym” is a contraction of “gymnasium” – derived from the ancient Greek word gymnasion. The root word gymnos means “naked” – Greek athletes performed in the nude. The ancient Greek gymnasiums were places where athletes trained for public games such as the Olympics.

After the ancient Greeks, gyms disappeared for centuries. Medieval and Renaissance life was physically arduous enough, and ordinary people got all the exercise they needed working on the land and carrying out chores.

By the 19th century, though, schools and colleges were building gymnasiums (and even today, the word “gym” means “school gym class” to many people). The YMCA also built a number of gyms for physical exercise and social sports and games. During the mid 19th Page 2 of 173

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century, the Turnvereine (gymnastics unions) movement led to the founding of Turners, German-American gymnastics clubs. These had a political as well as an athletic element.

A form of gym known as the “boxing gym” began to appear in the 1930s, with the founding of Cus D’Amanto’s Gramercy Gym in Manhattan in 1939.These gyms were to train fighters and boxers – not places for general exercise. Gold’s gym chain, still going to day, was founded by Joe Gold in 1965 in Venice, California, which became a landmark for bodybuilders (despite the dirty state of its equipment). Joe Gold founded the World Gym chain in 1977.

More and more gym chains were founded during the 1980s, including 24 Hour Fitness (1983) and LA Fitness (1984). The trend of corporate gyms began in the 1980s, too, as employers began to take on a greater responsibility for employee’s health.

Today, lots of people are or have been gym members, people who would never call themselves “bodybuilders”, “fighters” or even especially sporty. New gym chains have sprung up over the past couple of decades; Lifetime Fitness in 1990, Equinox Fitness in 1991, and Virgin Active in 1999.

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History of Business GLOBAL

The word “gym” is a contraction of “gymnasium” – derived from the ancient Greek word gymnasion. The root word gymnos means “naked” – Greek athletes performed in the nude. The ancient Greek gymnasiums were places where athletes trained for public games such as the Olympics.

After the ancient Greeks, gyms disappeared for centuries. Medieval and Renaissance life was physically arduous enough, and

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ordinary people got all the exercise they needed working on the land and carrying out chores.

By the 19th century, though, schools and colleges were building gymnasiums (and even today, the word “gym” means “school gym class” to many people). The YMCA also built a number of gyms for physical exercise and social sports and games. During the mid 19th century, the Turnvereine (gymnastics unions) movement led to the founding of Turners, German-American gymnastics clubs. These had a political as well as an athletic element.

A form of gym known as the “boxing gym” began to appear in the 1930s, with the founding of Cus D’Amanto’s Gramercy Gym in Manhattan in 1939.These gyms were to train fighters and boxers – not places for general exercise. Gold’s gym chain, still going to day, was founded by Joe Gold in 1965 in Venice, California, which became a landmark for bodybuilders (despite the dirty state of its equipment). Joe Gold founded the World Gym chain in 1977.

More and more gym chains were founded during the 1980s, including 24 Hour Fitness (1983) and LA Fitness (1984). The trend of

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corporate gyms began in the 1980s, too, as employers began to take on a greater responsibility for employee’s health.

Today, lots of people are or have been gym members, people who would never call themselves “bodybuilders”, “fighters” or even especially sporty. New gym chains have sprung up over the past couple of decades; Lifetime Fitness in 1990, Equinox Fitness in 1991, and Virgin Active in 1999.

In 2000, the company acquired the then largest health club chain in Atlanta and eventually replaced its 25 units with 14 larger prototype clubs. The company continued to build clubs in the Atlanta area and currently has 26 clubs in Georgia.

In 2007, the company expanded outside of the United States by way of an acquisition of six fitness clubs, in Toronto, Canada. Also of notable size, in 2010 the company acquired ten locations in Phoenix from Pure Fitness Arizona. Within a year, all but one of the former Pure Fitness clubs were closed.

On November 30, 2011, the company completed the acquisition of 171 clubs for $153M from Bally Total Fitness. After the closing, LA

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Fitness began closing some former Bally Fitness clubs near existing LA Fitness facilities, closed due to remodeling.

On July 2, 2012, the company completed the acquisition of all 33 Lifestyle Family Fitness Clubs in Florida. According to Lifestyle CEO, Stuart Lasher, "we evaluated our option to remain an independent company or to sell to a larger organization. After careful consideration, the board of directors has made the decision to sell all of the Lifestyle Family Fitness clubs in Florida to LA Fitness."

On December 23rd, 2013 LA Fitness announced the acquisition of The Buffalo and Rochester Athletic Clubs in Western New York. The Press release read as followed: The Buffalo and Rochester Athletic Clubs and LA Fitness announced today that they have completed a transaction whereby LA Fitness has purchased substantially all the assets of the four Buffalo and two Rochester co-ed clubs. The BAC/RAC for Women clubs in both cities and the CrossFit BAC Extreme Training facility on Union Road in Cheektowaga will continue to be operated under the BAC/RAC umbrella.

On December 30, 2013, they completed the acquisition of all 10 Vision Quest Sport and Fitness clubs in the greater Seattle area.

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LA Fitness remains a privately owned company, with major ownership interests held by private equity firms Seidler Equity Partners, CIVC Partners, and Madison Dearborn Partners.

(Ali Luke Strength Training, Bodybuilding, Gym)

http://www.diet-blog.com/09/the_rise_of_the_gym_through_history.php

LOCAL

The Little Gym® is a US-franchised fitness and development center for children aged 4 months to 12 years, offering skilled instruction in motor skills development, gymnastics, sports skills development and beginner karate. Strength, flexibility, balance, rhythm, motor skills, and muscle tone, as well as good listening, cognitive, and socialization skills are all aspects of a child's development objectives at The Little Gym®. There are now three The Little Gym locations in the Philippines: Makati, Pasig-Mandaluyong, and Alabang.

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Since 1976, The Little Gym® has provided that foundation in our non-competitive programs, all taught in a fun, safe and nurturing environment. We encourage children to develop at their own pace, building the self-esteem they need for fulfilling and successful lives.

In the Philippines, Fitness First started in October 2001, with its first center at the Robinsons Summit Center in Makati City. Currently, there are 15 Fitness First clubs and three Fitness First Platinum clubs across the country.

Established in 2002 Gold’s Gym has expanded its fitness profile to offer all of the best equipment and services including, Jukari Fit to Flex workout, Zumba, Les Mills Body Combat personal training, spinning, sports conditioning, kid’s fitness, Pilates and yoga, while maintaining its core weight lifting tradition. It is also the preferred gym of amateur and pro athletes, fitness and beauty contests, entertainment industry professionals, and every day people committed to their health and the quality of their lives. With more than 3 million members in 30 countries worldwide, Gold’s Gym’s unmatched experience and expertise continues to change lives by helping people from all walks of life.

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Tara Gym Started Teaching in November 2011 Tara Okhovatian graduated from Yoga Power Teacher Training from The Shanti Enrichment Yoga Series. With her 200 hour Registered Yoga Teacher Certification, Tara has been trained in a multitude of different yoga styles. Her structured practicum focused on an infusion of yoga and belly dance with a concentration on exercises for the hips, abdominal and lower back.

Since graduation, Tara has been teaching yoga and belly dance at local gyms and studios in the Ormond and Daytona Beach area. Her classes offer a range of modified yoga, belly dance, and Pilates that tailor the needs of her students. Tara's unique fusion of these three fitness styles will surely strengthen your mind and body and soul, while uplifting your spirit.

http://www.thelittlegym.com.ph/

http://en.wikipilipinas.org/index.php/Top_10_Fitness_Gym_in_the_Philipp ines_(2011)

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Company Profile

The Titan Fitness all starts with a certain desire. That desire is for me and my friends to attain a body that so fit, that men shall be envy and will make the women drool, a body of a TITAN. And then, the Feasibility subject came upon us, giving us the chance to study and research further what we can do about our dreams. So we decided to put up a gym of our own where we can make our dreams come true. We all decided to make the name of our gym TITAN FITNESS because it’s our fantasy body, A TITAN BODY; and we know that this can bring forth a great impact for the customers. This gym aims to develop a system wherein customers will benefit if they have their friends with them, working out together and training at the same time. This promotes friendship and social relations, wherein this is the main source of our business; Friendship.

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Company Name and Location

The authors derived the name of the business to the word TITAN, where in Greek Mythology; they were a primeval race of powerful deities that ruled during the legendary Golden Age. They were immortal giants of incredible strength and were also the first pantheon of Greek gods and goddesses. They derived this from the word because the authors once had a dream, to possess a titan-like body where men and women would envy.

The location of the gym is located at Quirino Avenue., Novaliches Quezon City in front of Hypermarket Kalye Uno. The place is near condominiums, schools, and shopping areas where most population in the area comes into. The location where the building is supposed to be built has a nice environment because the surrounding area is clean and green.

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Company Logo and Tagline

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The red font color of the name symbolizes sexuality and passion which are the characteristics of a titan. The logo pictures a Titan

hauling an enormous rock. This was also derived from the Greek mythology where Atlas, a titan, hauls the whole Earth as his punishment.

“STICK TO YOUR RESOLUTION”

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We choose this tagline because we want to encourage our customers to fulfill their decision for a change. To help the people of our community to make themselves better by improving their physical body and live towards a healthy lifestyle.

Nature of Service Being Offered

The company is a fitness center that offers a wide variety of body building, fat burning and exercising machines and equipments. High quality equipments and facilities that is sufficient enough for the estimated number of customers are provided. Inspected every day, we ensure that our equipments and facilities are all in good condition for the benefit of our dear customers.

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Assisting the customers are trainers specialized in different forms of martial arts like boxing, muay thai, and taekwondo. Our employees are trained specialists and will guide you all throughout in achieving your goals and resolutions regarding your health, physical body, and a fit lifestyle. Customers are expected to pay different amount of money depending on the services they availed.

Size and Growth Trend of the Market

Personal fitness training today is becoming an industry which is growing fast, attracting people in large numbers. This is occurring due to the high pressure life styles that we have and the stress it puts on our bodies and brains. These fast paced times require us to be fit both

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mentally and physically. When you don’t take care of yourself, it leads to issues related to the heart and diabetes. These problems occur because people are overweight. This is why professional fitness trainers come into action.

Fitness clubs and retirement communities stand to benefit from health and fitness programs that cater to the older adult. The number-two prediction notes the baby boom generation is growing older and living longer, and their physicians are recommending they remain active. One down trend maybe observed in this industry, is the tendency away from the commercial gym. As consumers continue to invest in their health needsm most will be looking for an environment that provides individualization and an old-fashioned level of customer service.

People nowadays chose the most convenient option for food consumption which is fast food, which leads to obesity. For the first time in history children of this generation may not live as long as their parents or grandparents because of the diseases and the impairments associated with childhood obesity. With the cutbacks in physical education in schools and an increase in sedentary lifestyle( TV, Page 17 of 173

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videogames, computers), there is a need for fitness professionals to provide their services to this population to help fight the obesity epidemic.

Typically, a fitness center offers the same equipment functionality but differs only in brands. Major fitness centers have treadmill, stationary bike, dumbbell, sit-up bench, and cardio equipment. These gyms charge their customers from Php 600 to Php 3,000 for monthly membership fee. This excludes add-on services such as physical trainor assistance, usage of shower rooms and massage. Local fitness centers charge Php 300 per PT session while first-class gyms offer the same services for a minimum of Php 700. Annual membership fee also varies across fitness centers. Some may waive this for promotional purposes, valued between P500 to P5,000. Overall, a ac ustomer should annually pay at a minimum of Php 11,000 to Php 45,000 inclusive of unlimited visits, at least 10 PT sessions, usage of shower rooms, and annual membership.

The trend for 2014 will be the collaboration between government and commercial organizations and health and fitness groups to get the word out about health and fitness. This trend isn’t that surprising, Page 18 of 173

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considering that some experts predict that 75%of adults will be overweight by 2015 and 41% will be obese. 2009 brought us an amazing influx of new exercise training tools and 2014 will continue that trend with even more great mobile fitness apps, exergames and GPS tracking devices. The use of tracking and online training and scheduling tools will increase in the coming year with more people looking to better gauge their progress by accessing and monitoring details of their fitness programs. Along these lines, we’ll also see more interest in living a healthy lifestyle. While we’ll stay focused in our weight, Filipinos will definitely recognize a healthier lifestyle.

Financing Requirements and Sources

The investing capital of these products was divided equally from each partners of the partnership.

Proposed Used of Funds

The funds will be used in the following: 1. Salaries and wages

2. Employee's Benefits

3. Office Supplies 4.Permits & Licenses

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COLLEGE OF BUSINESS ADMINISTRATION 5.Repairs and Maintenance

6. Depreciation

7. Rent Expense

Background of the Management Team

Make up and Background of Management Team

The company is composed of the following personnel: Manager Assistant Manager Trainers ( 10) Cashier (2)  Maintenance (2)  Medics (2)  Page 20 of 173

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

  Proposed Exit Strategy

 Our second choice of business if we fail to continue the fitness gym will be to redesign it to become a Salon.

 We chose salon because it is the most fitted type of business we can do after fitness center. Redesigning the interior will be easy since large sizes of mirrors are already present. Secondly, the platform of the gym is plain and easy to decorate for it to become that view of a salon. Lastly, we won’t need to reform or renew the placement of the materials and no need for another room construction since we have all extra rooms that we could use. We won’t have that much difficulty renewing our business.

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  

II. Business description

OUR VISION: To facilitate the process of helping people make themselves better by improving the holistic, physical, and emotional qualities of life.

OUR MISSION: To maintain a state of the art gym fitness facility

that offers the clientele diverse, productive, affordable and

accessible means of exercise and fitness that is supervised by a well trained staff.

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Company’s Form of Organization

 The proponents choose a partnership as the company’s form of organization because it is easy to allocate capital and start a business. It can also enhance the decision making skills of the managerial department of the business.

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    

Proposed Entry Strategy

Pre-Opening

 Distribution of flyers will be used to inform the people or the public about the opening of the business. The flyers contain information such as the location and the services offered by the business. Placing a life-sized image of the business logo around commercial areas will also be conducted.

Grand Opening

 On the grand opening of the business, music will be played with large speakers that will be placed in front of the entrance to attract the attention of the public. There will also be a Grand Promo for the first month and for the first time customers by providing them free training assistance by the gym instructors.

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        Timeline of Events

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                  Activitie s   J  J  A  S  O  N  D  Ja n  Planning          Allocatio n of Funds          Location          Permit & Licenses          Construc tion          Acquisiti on of material s & equipme nts          Hiring/Tr aining          Promo Ads           Start of Operatio n         Ja n u ar y 1, 2 0 1 5

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

Description of the Initial Services/Competitive Advantage

 Titan Fitness Center offers well-maintained gym equipments for the customers. There will also be equipments for combat sports training like punching bags, double end bags, and punching dummies. There will also be a boxing ring, snack bars, member lounges, shower and locker rooms. All of these facilities will be provided for the outmost convenience and comfort of the customers. We will also provide computer access self-service system for our customer for them to choose freely their desired gym instructors, programs and mode of payments.

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Service Research and Development

 For our service development, we would want to improve the services that we offer to the customers. The aerobic exercise will be improve to a dance fitness program called “zumba”. From the combat category, Boxing and muay thai will be improve to kickboxing, titan fitness will offer group session instead of individuals.

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 Zumba- involves dance and aerobic elements, with a choreography of 6 different dances including: hip-hop, soca, samba, salsa, merengue and mambo.

 Kickboxing- is developed from boxing and muay thai. This training is for self-defense, fitness and contact sports.

 III. MARKETING PLAN AND ANALYSIS



  Description of the Industry

 We have recently seen an immense increase in profitability of the fitness industry. This also means that there is an attractive prospect in terms of jobs and businesses in the industry. The Bureau of Labor and Employment Statistics suggests that the number of jobs within this industry is expected to increase by more than 23% over the next 10 years. The bureau also said that the number of jobs available under “fitness and recreational sports centers” even went up to 484,200 in 2010.

 Economists justify this prediction by looking at how businesses and corporations are offering health club memberships to their employees as incentives. Besides this, baby boomers are being

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encouraged to exercise regularly, so that they can stay healthy and fight the effects of aging. Let’s look at the current situation of fitness centers and jobs in the fitness industry:

 Number of Health Clubs, Gyms, and Training Studios

 According to the annual surveys conducted by the International Health, Racquet, and Sportsclub Association (IHRSA), there has been a significant increase in the number of health clubs, gyms, and other fitness centers. From the list found in the Yellow Pages, there are 30,500 fitness centers in the country as of January 2012. Back in 2005, this number was just around 26,830 and gradually increased over the years.

 The number of people deciding to join a fitness center has also risen to a significant amount. According to the IHRSA statistics, the number of health club or gym memberships has increased from 41.3 million in 2005 to 50.2 million in 2012. The most current reports show number of people who have at least used a health club in 2012 increased those with memberships by 8 million in the same year. This means that as of January 2013, there are approximately 58.5 million

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people who are utilizing fitness center via membership or other type of status.

 Number of personal trainers

 With these statistics, it might be safe to say that there are attractive prospects for jobs in the fitness industry. The number of personal trainers has also risen incredibly over the past few years. According to the Department of Labor and Employment, there were 231,500 personal trainers in Philippines of 2011. This is a 44% increase in the numbers from 2001. That’s why you find so many people who are trying to turn their passion for fitness into a successful career.

 Economists from the Bureau of Labor Statistics suggest that occupations like fitness instructors and personal trainers are the driving force in the success of the fitness industry. According to their calculations, the number of people in these occupations is expected to increase by 31.7% by 2020.

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 The IHRSA also reported that the total revenue in the fitness

industry reached P21.8 billion in 2012. This is a significant increase from the P20.3 billion made in 2010 by the industry. Since 2008, health club memberships rose by 10%, while the number of non-member patrons also increased by 5%. This particular number went up from 7.7 million patrons in 2008 to 8.3 in 2012.

 The Physical Activity Council Top line Report revealed that over 60% of people regularly participate in fitness sports as of 2012. This is the fifth consecutive year in which these numbers have remained stable at 60% or more. This goes to show that the fitness trend is not going away soon in Philippines and the fitness industry is only going to grow stronger each year.

  http://blog.gyminsight.com/2013/05/most-current-fitness-industry-statistics/     Targeted Market

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      

  Competition and Competitive Advantage

 The main competitors of our fitness center would be Fitness Fury Gym, Muscle Fitness, and Millenium Gym, VRA Gym & Fitness Center and Elorde Boxing Gym. All of these gyms are located within 5 km. of the proposed location site. The competitive advantage that we have will be the martial arts training that we offer and the member’s lounge that we have for the regular members of our fitness center.

 

 Target Market  Primary  Secondary

 Services  Fitness Conscious  Combat Sports athletes  Age  16 – 25 years old  26-35 years old

 Location  Passing and

residing in the area

 Outside the area of Sangandaan

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  Competitor’s Profile  Competitor's Profile   A  B  C  D  E  Company Name  Milleni um Gym  Fitness Fury Gym  Muscle Fitness

 VRA Gym & Fitness Center  Elorde Boxing Gym  Owner/Manag er  Mr. Almari o Umali  Mr. Richard Gallarde  Mr. Elmer C. Rafael  Mr. Vincent Aquino  Mr. Gabriel Elorde  Year Started  2012  2012  2010  2012  2013  No. of years in business  2  2  4  2  1  No. Of employees  4  3  4  2  6  No. of customers/da y  75  70  75  60  85  Annual Sales  4,856,2 50  3,675,00 0  3,937,5 00  3,150,000  7,437,50 0     Barriers to Entry

 1. Inexperience – the lack of knowledge in the part of the owner to run the business. How can he manage the business if he lacks knowledge to manage it.

 2. Lack of Resources – No business will ever succeed if it lacks resources.

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 3. Natural Calamities – These events can devastate your business in seconds. This includes fire, floods, and earthquakes.

 4. Few Equipments – This type of business have to acquire enough equipments to accumulate the needs of a customer.

 5. Technology – the business also have to cope up to the fast changing technologies to ensure the business continuance.

 6. Promotion to customers – as a new entrant, you have to convince the market about your business.

 7. Frequency of customers to workout – most customers workout just once a week.



  Estimated Market Share and Sales

 Demand and Supply Analysis  DEMAND ANALYSIS  YEAR  DEMAND  2010  574,480  2011  588,490  2012  602,865  2013  617,610  2014  639,555  Formula:

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 2014 - 2010 = 65, 075 

 65,075/5 years= 13, 015

 Projected increase of demand yearly is 13,015

  Projected Demand  YEAR  DEMAND  2015  652,570  2016  665,585  2017  678,600  2018  691,615  2019  704,630   SUPPLY ANALYSIS  YEAR  SUPPLY  2010  119,000  2011  117,250  2012  122,500  2013  127,750  2014  129,500  Formula:  2014 – 2010 = 19,950   19,950 / 5 years= 2,100

 Projected increase in supply is 2,100



 Projected Supply

 YEAR  SUPPLY

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 2016  133,700  2017  135,800  2018  137,900  2019  140,000   HISTORICAL  Y E A R S  DE MA ND  S U P PL Y  DEMAND-SUPPLY GAP  % Satis fied  % Unsatis fied  2 0 1 0  574 ,48 0  11 9, 00 0  455,480  21%  79%  2 0 1 1  588 ,49 0  11 7, 25 0  471,240  20%  80%  2 0 1 2  602 ,86 5  12 2, 50 0  480,365  20%  80%  2 0 1 3  617 ,61 0  12 7, 75 0  489,860  21%  79%  2 0 1 4  639 ,55 5  12 9, 50 0  510,055  20%  80%  

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 Target market share is projected at 4% in the first year of operation and will increase by 1% in the succeeding years

  PROJECTED  Y E A R S  D E M A N D  SUP PLY  DEM AND-SUP PLY GAP  % S a ti s fi e d  % Un sat isfi ed  Tar get Ma rke t Sh are  Total Expe cted custo mer  2 0 1 5  6 5 2, 5 7 0  131, 600  520,9 70  2 0 %  80 %  4%  20,83 9  2 0 1 6  6 6 5, 5 8 5  133, 700  531,8 85  2 0 %  80 %  5%  26,59 4  2 0 1 7  6 7 8, 6 0 0  135, 800  542,8 00  2 0 %  80 %  6%  32,56 8  2 0 1 8  6 9 1, 6 1 5  137, 900  553,7 15  2 0 %  80 %  7%  38,76 0

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 2 0 1 9  7 0 4, 6 3 0  140, 000  564,6 30  2 0 %  80 %  8%  45,17 0      YEAR customer perEstimated

year  Estimated customer per day  Tot al Sal es  YEAR 1  20,839  60  5,209, 700  YEAR 2  26,594  76  6,6 48, 563  YEAR 3  32,568  93  8,142, 000  YEAR 4  38,760  111  9,690, 013  YEAR 5  45,170  129  11, 292 ,60 0   

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  

  Marketing Strategy

 Service

 Titan Fitness Center offers well-maintained gym equipments for the customers. There will also be equipments for combat sports training like punching bags, double end bags, and punching dummies. Boxing ring, snack bars, member lounges, and shower room will also be provided. All of these facilities will be provided for the outmost convenience and comfort of the customers.

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  

Pricing

Card Holder Member – 2,000 Php / month Walk in – 250 Php / day

Combat Sports:

 BOXING MUAY THAI TAEKWONDO

 Walk-ins:  1 personal session: Addtn’l Php 200  Members:  1 personal session: Addtn’l Php 100  1 week personal session: Addtn’l Php 500  1 month personal session: Addtn’l 1,700    Walk-ins:  1 personal session: Addtn’l Php 250  Members  1 personal session:

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Addtn’l Php 150  1 week personal session: Addtn’l Php 750  1 month personal session: Addtn’l 2,000    Walk-ins:  1 personal session: Addtn’l Php 150  Members  1 personal session: Addtn’l Php 75  1 week personal session: Addtn’l Php 300  1 month personal session: Addtn’l 1,000   Positioning

 “STICK TO YOUR RESOLUTION”

 We choose this tagline because we want to encourage our customers to fulfill their decision for a change. To help the people of our community to make themselves better by improving their physical body and live towards a healthy lifestyle.

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 We would like to advertise through the use of posters and tarpaulins that will be placed within 5 kilometers of the location. Though may not attract as many customers as T.V. and radio advertisements would do, we are trying to focus on those living or working within the area of the specific branch. One of the reasons that gym goers stays with their gym is because of the convenient location, thus, even if the advertisements attract audience but the audience is not willing to be a customer, this will result to a great loss for the company.

 We are also planning to make promotions every 15th_{day of}

the month. There will be a 20% discount in membership fee. This is to attract newly earned office workers to try and be a member of Fitness First. There will also be promotional programs that will be released every new year’s eve. A raffle draw, only one member will be given a 6 months free membership. This is to strengthen the customer relationship and to preserve the loyalty of the members. We would also create a Facebook page wherein the customer can find information about our business.

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 EVEN T  ACTIO N TAKE N  DU RA TI ON  MECH

ANICS  PROJECT COST

 T ot al C o st  One (1) mont h befor e  Distrib ution of Flyers  De ce mb er 20 14  -Giving flyers and leaflets  -Flyers and leaflets (P2,000)  P 2, 0 0 0  Openi ng day  Ribbon cutting  Jan uar y 20 15  -Ribbon cutting of the owners -Display of Balloon s and banner s  -Ribbon (P100) -Banners (P3,000) -Balloons (P1,000)  P 4, 1 0 0   Umbrel la give away for the first 50 costu mer  Jan uar y 1-7, 20 15 (1 we ek)  -Free Umbrel la will be given to the first 50 custom ers of Titan Fitness center  -50 Umbrellas (P150/each)  P 7, 5 0 0  EVEN T  ACTIO N TAKE N  DU RA TI ON  MECH

ANICS  PROJECT COST

 T ot al C o st

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 1st Anni versa ry  Titan’s Shapes hifters  Jan uar y to Ma rch 20 16  -contest for the custom ers with excitin g prices.

 -cash price winner (P10,000) -Banners (P3,000) -Balloons (P1,000) -Guest’s token (P50,000)  P 6 4, 0 0 0  Sum mer fitnes s prom otion  Titan Summ er Advent ures  Ma rch 20 16  -Trip fitness trekkin g to Daraita n, Rizal with the Titan’s profess ional mount aineers .  -Banner (P3,000) -Bus rental fee

(P36,000)  P 3 9, 0 0 0  Back to schoo l  Barkad a Promo  Jun e to Jul y 20 16  -Studen ts with a group of 5 people will get a discou nt of 40%  (P3,000)-Banner  P 3, 0 0 0

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 Year end prom otion  Raffle promot ions  De ce mb er 20 16  -Gold memb ers of the titan fitness will get a chance to win as much as P10,00 0 worth of prizes  -Banner (P3,000) -Customized Compression shirts (P10,000)  P 1 3, 0 0 0  2nd Anni versa ry  Introdu ction of the Gold memb ership card  Jan uar y 20 17  -new promot ion (Gold Membe rship)  -Banners (P3,000) -Ballons (P1,000) -Gold membership system upgrade (P20,000) -Gold cards (P5,000)  P 2 9, 0 0 0  Sum mer fitnes s Promo  Titan Summ er Advent ure part II  Ma rch 20 17  -Trip fitness Treckin g and Hiking at Mt. Makilin g  -Banners (P3,000) -Bus rental fee

(P36,000)  P 3 9, 0 0 0

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 Back to schoo l  Barkad a promo  Au gu st 20 17  -Studen ts with a group of 5 people will get a discou nt of 40%  -Banner (P3,000)  P 3, 0 0 0  Year end prom otion  Gift Give aways  De ce mb er 20 17  -2018 Fitness lifestyl e planne r to all memb ers that have registe red within the month of decem ber  -Banner (P3,000) -80pcs of Titan Planner (P20,000)  P 2 3, 0 0 0  3rd Anni versa ry  Clash of the Titans  Jan uar y to Fe bu ary 20 18  -Titan fitness center will conduc t a mix martial art tourna ment.  -Banners (P3,000) -Balloons (P1,000) -Cash Price winner

(P60,000)  P 6 3, 0 0 0

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 Sum mer fitnes s Promo  Titan Summ er Advent ure part III  Ma rch 20 18  -Trip fitness treckin g and hiking to Mt. Batula o  -Banners (P3,000) -Bus rental fee

(P36,000)  P 6 3, 0 0 0  Back to schoo l  Barkad a promo  Au gu st 20 18  -Studen ts with a group of 5 people will get a discou nt of 40%  -Banner (P3,000)  P 3, 0 0 0  Year end Speci al  Raffle promot ions  De ce mb er 20 18  -Gold memb ers of the titan fitness will get a chance to win as much as P10,00 0 worth of prizes  -Banner (P3,000) -Customized Compression shirts (P10,000)  P 1 3, 0 0 0

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 4th Anni versa ry  Fitness fun run  Jan uar y 20 19  -Titan fitness center will conduc t a fun run to promot e health and wellne ss lifestyl e  -Banner (P3,000) -Balloons (P1,000) -Titan Fun run

shirts (P150)  P 4, 0 0 0  Sum mer fitnes s prom o  Titan Summ er Advent ure part IV  Ma rch 20 19  -Trip fitness treckin g and hiking to Mt. Cristob al  -Banner (P3,000) - Bus rental fee

(P36,000)  P 3 9, 0 0 0  Back to schoo l  Barkad a promo  Au gu st 20 19  -Studen ts with a group of 5 people will get a discou nt of 40%  (P3,000)-Banner  P 3, 0 0 0

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 Year end prom otions  Gift Give aways  De ce mb er 20 19  -2020 Fitness lifestyl e planne r to all memb ers that have registe red within the month of decem ber  -Banner (P3,000) -80pcs of Titan Planner (P20,000)  P 2 3, 0 0 0  5th Anni versa ry  Free Shirts and Titan tattoos  Jan uar y 20 20  -Giving Free Titan shirts to the custom ers -Free titan tattoo and hena tattoo  -Banner (P3,000) -Balloons (P1,000) -500 Shirts (P200) -tattoo Inks (5,000)  P 1 0 9, 0 0 0  Sum mer fitnes s prom o  Titan Summ er Advent ure part V  Ma rch 20 20  -Trip fitness treckin g and hiking to Mt. Manal mon  -Banner (P3,000) - Bus rental fee

(P36,000)  P 3 9, 0 0 0  Back to schoo l  Barkad a promo  Au gu st 20  -Studen ts with a  -Banner (P3,000)  P 3, 0 0

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20 group of 5 people will get a discou nt of 40% 0  Year end prom otions  Gift Give aways  De ce mb er 20 20  -2021 Fitness lifestyl e planne r to all memb ers that have registe red within the month of decem ber  -Banner (P3,000) -80pcs of Titan Planner (P20,000)  P 2 3, 0 0 0      1st Anniversary

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 -This will be a 3 month contest where the contestants must train, loose/gain weight, form or build a body figure in a 3 month period. The one with the sexiest and excellent body figure will win the challenge. The body figures will be judged by a group of 3 professionals: professional gym instructor, general physician, and a celebrity.

 Mechanics to join:  Men and women

 Register at the titan fitness center gym, registration will start on sept. 1st

 Registration fee: P500

 Maximum number of contestants: 15 men and 15 women

 Challenge/contest will start on October 1, 2014

 Prices for the winners

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 50% discount on the next month of membership

 P5,000 cash

 Titan fitness compression shirts

 Water tumbler

 2nd Anniversary

 Gold membership card

 -If you avail a membership card, you can train in the gym anytime and any day you want in a period of 1 month. The gold membership card has the same 1 month duration, but with the new gold membership card, you can now earn points every time you enter the gym. You can spend your earned points in redeeming another 1 month extend or redeeming training/gym functional items.

 You will avail the gold membership card once, and the card last a lifetime or you can earn points a lifetime, but the duration of using the gym is still 1 month.

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 Gold membership card P4,000

 Succeeding 1month extend membership discount P1,800

 5points/day of training

 1month extended membership/300points.

 Points can buy gym/training items.

 

 3rd Anniversary

 Clash of the titans

 -On the 3rd year anniversary, titan fitness center will conduct a mix martial arts tournament. Any form of martial arts, and fighters can register on the tournament. The tournament will have 3 divisions. The lightweight, the middle weight,and the heavy weight division. Each division contender maximum limit is 10.The registration fee is P1,000.

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 Each division champion will receive a price of the ff:  20,000php

 Free 2 month membership

 Gold membership card

 500points      4th_Anniversary

 Titan Fun run

 -On the 4th_{year anniversary, Titan Fitness Center will conduct a}

fun run to promote health, wellness and fitness to the people. The starting line will be at the Commonwealth tandang sora intersection and the finish line will be at the Titan Fitness gym at

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sangandaan. This is a 5.5km run that covers the whole tandang sora avenue.

 Mechanics and requirements to participate:  P100 registration fee

 Men and Women

 Costumer and non-costumer of Titan Fitness Center  16-years old and above

       5th_Anniversary

 Free shirts and Titan tattoos

 -On the 5th_{year anniversary, Titan Fitness Center will be giving}

away Costumized design T-shirts for our beloved costumers and Free Titan tatoos by our professional tattoo artists.

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 Sales Tactics

 Our sales tactics is through advertising, giving of leaflets, flyers, and tarpaulins within the area and through the internet. This is to ensure that the name of our fitness center will be recognized by potential customers.

 Sales Force

 The company will provide persons who will go from places to places to advertise our fitness center.

  

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 IV. MANAGEMENT PLAN



  Background and Primary Responsibilities of the Management Team

 Job Description

 JOB TITLE  JOB

SPECIFICATION  JOB DESCRIPTION            Operations Manager and Assistant Manager    Male or Female  25-30yrs. Old  Experience  Experience at least 1 year in management works.  Educational attainment  Must have Baccalaureate Degree.  Masters in Business or Marketing preferred  Must be a graduate of any business related course.  Required skills, knowledge and Characteristics  Strong effective communicator  Highly Developed, demonstrated teamwork skills  Computer literate   

 Responsible for overall control of business affairs  Assist individual employees

in solving problems which affects their general moral and efficiency.

 Attends to government and public relation.

 Contributes to team effort by accomplishing related results as needed.

 Establishes strategic goals by gathering pertinent business, financial, service, and operations information; identifying and evaluating trends and options;

choosing a course of

action; defining objectives; evaluating outcomes.  Accomplishes staff results

by communicating job expectations; planning, monitoring, and appraising job results; coaching, counseling, and disciplining employees; developing, coordinating, and enforcing systems, policies,

procedures, and

productivity standards. 

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

 Maintains quality service by enforcing quality and customer service

standards; analyzing and resolving quality and

customer service problems; identifying trends; recommending system improvements.           Trainers/Gym Coaches  Male / Female  At least 21 years old   Experience  Proven experience of dealing with customers.  Computer literate  Experienced in gym supervision, induction of customers and fitness programming.  Fitness Industry Experience.  Knowledge of

health and safety requirements in a gym environment.  Educational Attainment  Personal Training Qualification.  Recognized gym instructors qualification  Required skills, knowledge and Characteristics  Ability to prioritize and manage  

 Prepare exercises plan for clients

 Assist clients/customer in doing exercises using gym

equipments.

 Give further instruction to clients on their physical exercise and how to maintain it.

 Promote and give wellness advices

 Give diet plans

 Maintain and secure the functions of gym equipments to avoid accidents

 Maintain the cleanliness in the gym

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workload  Ability to provide a welcoming environment  Skilled and confident in customer service and communication  Ability to deal with

customers, enquiries,

/concerns with tact and sensitivity  Ability to apply set procedures    Cashier  Female

 At least 20 yrs old  At least High

school Graduate  Trust worthy and

with good moral character.

 Responsible in handling payments of the costumer  Checks the day to day

transaction of the business  Maintaining complete,

accurate and timely reports of all transaction.



Maintenance

 Male

 At least 20 yrs old  At least High

school Graduate  Trust worthy and

with good moral character

 Responsible for cleaning before and after the business hours.

 Responsible for arranging the equipments    Medic     Female

 At least 20 yrs old  BS nursing

graduate with license

 Must have first aid and CPR

certifications  With a pleasing

personality



 Must be able to give first aid treatments and proper medication to employees and customers

 Must be able to do train workers in basic life support techniques and increase awareness of potential safety hazards.  Must be able to aid

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  physician during emergency situations.                Organizational Structure

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M

A N

A G

E

R

A S S T .

M

A N A G

E

R

T r a i n o r s

( 1 0 )

C a s h i e r

( 2 )

M

a i n t e n a n

c e ( 2 )

M

e d i

c ( 2 )

 

 A Line staff organization will be used by the business because it is simple, highly efficient, versatile and fast in terms of decision making. It is also the best type of organization chart to use because the business has few numbers of personnel.

       

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 Ownership

The proponents choose a partnership as the company’s form of organization because it is easy to allocate capital and start a business. It can also enhance the decision making skills of the managerial department of the business.

            

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

  Personnel

 Th e

company is composed of the following personnel: Manager Assistant Manager Trainers (10) Cashier (2) Maintenance (2)  Medic(2)

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              Signni      Application

 All applicants resume will be screened by the hiring manager. Upon Screening, the manager/HR should base on the skills,

Failed Failed Failed Exit Applicatio n Passed Initial Interview Exit Passed Exit Orientation Pre-Hiring Assessment Final Interview Signing of Contract Start

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educational background and work experience of the applicant to know if he/she passed the standards of the company.

 Initial Interview

 The selected applicants will undergo initial interview so the Interviewer will have a background and pre-information about the applicant. The Interviewer should ask questions that test the psychological and mental ability of the applicants.

 If the applicant failed the interview, he/she will exit and try to find another company.

 Final Interview

 The interviewer/ Manager should take the charge for the final interview. The Interviewer can repeat the questions based on his/her answers during the initial interview to test the consistency and honesty of the applicants. Also, the interviewer should test the psychological behavior of the applicant not just his/her mental or physical abilities/skills.

 If the applicant failed the interview, he/she will exit and try to find another company.

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 Pre-Hiring Assessment

Upon PHA (optional), the applicants will undergo observation before regularization so the employer can test if he/she can do the expected responsibilities and tasks to him/her. They will be under PROBATIONARY PERIOD.

 Orientation

 During orientation, the HR/assigned person should explain the history or background of the business. They should be informed about the Do’s and Don’ts, regulation and punishments on any violation.

 Signing of Contract

 The Applicant should be reminded and should be informed about his/her wage/salary, benefits, deduction, and how long will he/she be with the team, and what would happen if he/she does not finish his/her contract.

 

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 Start

 The applicant will now start/begin to do his /her tasks and duties base on the Key Result Area given to him/her and should show she/he is willing to learn. His/ Her first day is now considered as paid.   Compensation Package  Managerial position  Position  Total compens ation  mon thly pay  monthly pay as % of total  Time in positio n   1st_level manage r    228,000. 00php   19,0 00.0 0php   8.3%   6 month s    2nd_level manage r    312,000. 00php   26,0 00.0 0php   8.3%   6 month s

 Note: The 2nd_{level manager, after 6 months of working}

should renew its contract.



 SALARIES AND WAGES

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Salary kly hly al  Manager  833.33  3.31583  2499 9.9  29999 8.8  Asst. Manager  600  4200  1800 0  21600 0  Trainer/Gym Instructors  500  3500  1500 0  18000 0  Medic  450  3150  1350 0  16200 0  Cashier  380  2660  1140 0  13680 0  Maintenance  300  2100  9000  108000  

 SOCIAL SECURITY SYSTEM

 Position  Base Contrib ution  Weekly Contribu tion  Monthly Contribut ion  Annual Contribu tion  Manager  100  700  3000  36000  Asst. Manager  80  560  2400  28800  Trainer/Gy m Instructors  60  420  1800  21600  Medic  50  350  1500  18000  Cashier  45  315  1350  16200  Maintenanc e  40  280  1200  14400   PAGIBIG  Position  Base Contrib ution  Weekly Contribu tion  Monthly Contribut ion  Annual Contribu tion  Manager  50  350  1500  18000

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 Asst. Manager  50  350  1500  18000  Trainer/Gy m Instructors  30  210  900  10800  Medic  25  175  750  9000  Cashier  20  140  600  7200  Maintenanc e  15  105  450  5400   PHILHEALTH  Position  Base Contrib ution  Weekly Contribu tion  Monthly Contribut ion  Annual Contribu tion  Manager  50  350  1500  18000  Asst. Manager  50  350  1500  18000  Trainer/Gy m Instructors  30  210  900  10800  Medic  25  175  750  9000  Cashier  25  175  750  9000  Maintenanc e  15  105  450  5400    13th Month Pay

 Position  Annual Contribution

 Manager  24999.9  Asst. Manager  18000  Trainer/Gym Instructors  15000  Medic  13500  Cashier  11400  Maintenance  9000 

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 Overall Employee Benefits  Position  Number of Employee s  13th mont h pay  S S S  P A GI BI G  Phil hea lth  Gra nd Tota l  Manager  1  24999.9  3 0 0 0  15 00  150 0  3099 9.9  Asst. Manager  1  18000  2 4 0 0  15 00  150 0  2340 0  Trainer/Gym Instructors  10  15000  1 8 0 0  90 0  900  18600  Medic  2  13500  1 5 0 0  75 0  750  16500  Cashier  2  11400  1 3 5 0  60 0  750  14100  Maintenanc e  2  9000  1 2 0 0  45 0  450  11100  Total   91899.9  1 1 2 5 0  5 7 0 0  585 0  114 699. 9  *12    1 3 5 0 0 0  6 8 4 0 0  702 00  137 639 8.8  

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       Managerial position  1st_{level manager}  P19, 000.00/month  P1, 000 meal allowance  P75.00/hr x 8hrs = P600.00/day  2nd_{level manager}  P26, 000.00/month  P1, 000 meal allowance  P104.16/hr x 8hrs = P833.33/day  Trainer/Gym instructors  P16, 000/month  P1, 000 meal allowance  P62.5/hr x 8hrs= P500/day   Medic  P14, 500  P1, 000 meal allowance  P56.25/hr x 8hrs=P450/day  Cashier  12, 400/month  P1,000 meal allowance

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 P47.5/hr x 8 hrs=380/day  Maintenance  P10, 000/month  P1, 000 meal allowance  P37.5/hr x 8hrs= P300/day 

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 

Employment Rights, Restrictions, and Policies

 HOURS OF WORK

 Art. 82. Coverage. The provisions of this Title shall

apply to employees in all establishments and undertakings whether for profit or not, but not to government employees, managerial employees, field personnel, members of the family of the employer who are dependent on him for support, domestic helpers, persons in the personal service of another, and workers who are paid by results as determined by the Secretary of Labor in appropriate regulations.

 As used herein, "managerial employees" refer to those whose primary duty consists of the management of the establishment in which they are employed or of a department or subdivision thereof, and to other officers or members of the managerial staff.

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 "Field personnel" shall refer to non-agricultural employees who regularly perform their duties away from the principal place of business or branch office of the employer and whose actual hours of work in the field cannot be determined with reasonable certainty.

 Art. 83. Normal hours of work. The normal hours of

work of any employee shall not exceed eight (8) hours a day.

 Health personnel in cities and municipalities with a population of at least one million (1,000,000) or in hospitals and clinics with a bed capacity of at least one hundred (100) shall hold regular office hours for eight (8) hours a day, for five (5) days a week, exclusive of time for meals, except where the exigencies of the service require that such personnel work for six (6) days or forty-eight (48) hours, in which case, they shall be entitled to an additional compensation of at least thirty percent (30%) of their regular wage for work on the sixth day. For

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purposes of this Article, "health personnel" shall include resident physicians, nurses, nutritionists, dietitians, pharmacists, social workers, laboratory technicians, paramedical technicians, psychologists, midwives, attendants and all other hospital or clinic personnel.

 Art. 84. Hours worked. Hours worked shall include (a)

all time during which an employee is required to be on duty or to be at a prescribed workplace; and (b) all time during which an employee is suffered or permitted to work.

 Rest periods of short duration during working hours shall be counted as hours worked.

 Art. 85. Meal periods. Subject to such regulations as

the Secretary of Labor may prescribe, it shall be the duty of every employer to give his employees not less than sixty (60) minutes time-off for their regular meals.

 Art. 86. Night shift differential. Every employee shall

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percent (10%) of his regular wage for each hour of work performed between ten o’clock in the evening and six o’clock in the morning.

 Art. 87. Overtime work. Work may be performed

beyond eight (8) hours a day provided that the employee is paid for the overtime work, an additional compensation equivalent to his regular wage plus at least twenty-five percent (25%) thereof. Work performed beyond eight hours on a holiday or rest day shall be paid an additional compensation equivalent to the rate of the first eight hours on a holiday or rest day plus at least thirty percent (30%) thereof.

 Art. 88. Undertime not offset by overtime. Undertime work on any particular day shall

not be offset by overtime work on any other day. Permission given to the employee to go on leave on some other day of the week shall not exempt the employer from paying the additional compensation required in this Chapter.

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 Art. 89. Emergency overtime work. Any employee

may be required by the employer to perform overtime work in any of the following cases:

1. When the country is at war or when any other national or local emergency has been declared by the National Assembly or the Chief Executive;

2. When it is necessary to prevent loss of life or property or in case of imminent danger to public safety due to an actual or impending emergency in the locality caused by serious accidents, fire, flood, typhoon, earthquake, epidemic, or other disaster or calamity;

3. When there is urgent work to be performed on machines, installations, or equipment, in order to

avoid serious loss or damage to the employer or some other cause of similar nature;

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4. When the work is necessary to prevent loss or damage

to perishable goods; and

5. Where the completion or continuation of the work started before the eighth hour is necessary to prevent serious obstruction or prejudice to the business or operations of the employer.

 Art. 90. Computation of additional compensation. For purposes of computing overtime

and other additional remuneration as required by this Chapter, the "regular wage" of an employee shall include the cash wage only, without deduction on account of facilities provided by the employer

 

 WEEKLY REST PERIODS

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1. It shall be the duty of every employer, whether operating for profit or not, to provide each of his employees a rest period of not less than twenty-four (24) consecutive hours after every six (6) consecutive normal work days.

2. The employer shall determine and schedule the weekly rest day of his employees subject to collective bargaining agreement and to such rules and regulations as the Secretary of Labor and Employment may provide. However, the employer shall respect the preference of employees as to their weekly rest day when such preference is based on religious grounds.

 Art. 92. When employer may require work on a rest day. The employer may require his employees to

work on any day:

1. In case of actual or impending emergencies caused by serious accident, fire, flood, typhoon, earthquake, epidemic or other disaster or calamity to prevent loss

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of life and property, or imminent danger to public safety;

2. In cases of urgent work to be performed on the machinery, equipment, or installation, to avoid serious loss which the employer would otherwise suffer;

3. In the event of abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be expected to resort to other measures;

4. To prevent loss or damage to perishable goods;

5. Where the nature of the work requires continuous operations and the stoppage of work may result in irreparable injury or loss to the employer; and

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6. Under other circumstances analogous or similar to the foregoing as determined by the Secretary of Labor and Employment.

 Art. 93. Compensation for rest day, Sunday or holiday work.



1. Where an employee is made or permitted to work on his scheduled rest day, he shall be paid an additional compensation of at least thirty percent (30%) of his regular wage. An employee shall be entitled to such additional compensation for work performed on Sunday only when it is his established rest day.

2. When the nature of the work of the employee is such that he has no regular workdays and no regular rest days can be scheduled, he shall be paid an additional compensation of at least thirty percent (30%) of his regular wage for work performed on Sundays and holidays.

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3. Work performed on any special holiday shall be paid an additional compensation of at least thirty percent (30%) of the regular wage of the employee. Where such holiday work falls on the employee’s scheduled rest day, he shall be entitled to an additional compensation of at least fifty per cent (50%) of his regular wage.

4. Where the collective bargaining agreement or other applicable employment contract stipulates the payment of a higher premium pay than that prescribed under this Article, the employer shall pay such higher rate.



 HOLIDAYS, SERVICE INCENTIVE LEAVES AND SERVICE CHARGES

 Art. 94. Right to holiday pay.

1. Every worker shall be paid his regular daily wage during regular holidays, except in retail and service

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establishments regularly employing less than ten (10) workers;

2. The employer may require an employee to work on any holiday but such employee shall be paid a compensation equivalent to twice his regular rate; and

3. As used in this Article, "holiday" includes: New Year’s Day, Maundy Thursday, Good Friday, the ninth of April, the first of May, the twelfth of June, the fourth of July, the thirtieth of November, the twenty-fifth and thirtieth of December and the day designated by law for holding a general election.



 Art. 95. Right to service incentive leave.

1. Every employee who has rendered at least one year of service shall be entitled to a yearly service incentive