Project

Royal Health Club

14

Executive summary:
The purpose of our Health Club is to provide our area with a Health Club and garden
center that is stylish, respected, and consistent, and which is intelligently staffed with
caring and well-informed employees. The atmosphere is friendly and open. The Health
Club displays a new attitude. It treats customers like first-class citizens and tries to
make them feel like they are at home. On the premises will also be a caf to help our
customers extend and enhance their visit to our premises. We offer a variety of related
items such as specialty decorations. The services are offered at a competitive price and
pricing will be reviewed periodically. We also provide health care service by a
professional doctors and nurseries.
The Health Club is normally opened all the week, from 11:00 A.M. through 11:00 P.M.,
and 1:00 P.M. to 12:00 AM on Friday. The caf hours are 11:00 A.M. to 11:00 P.M.,
except on Friday from 1:00 pM to 12:00 AM
Mission:
we are aiming to be a high tech Health Club that will dominate the market by 2015
opening branches in alex , cairo , sharm and hurghada to achieve 30% market share
Vision:
Health Club is not Just fitness its health and enjoyment
Objectives:
1. To provide a high quality service so that customers will perceive great value and
give them the opportunity to interact with our professional staff.
2. To service a huge number of customers in the first year and increase within 3
years.
3. To repay the entire loan amount .
4. We plan to closely monitor changing technology to be certain that our Health
Club is using the latest and most cost effective equipment.

To obtain the first two sets of goals we will try to maximize sales with an extensive
campaign to promote our services. We will utilize the radio stations and newspaper
along with brochures, media advertising, pamphlets, use of coupons, referrals, and a
variety of other advertising and marketing tools to reach the customer. We expect to
flood the market with advertising until consumers become aware of us and more
comfortable with our Health Club. To become the premier Health Club we will offer
outstanding quality, good hours, exceptional service, and reasonable pricing. We will
listen to our customers and conduct surveys.

Marketing department :
The product/ services description:
Royal Health Club is providing an intimate homely setting, offering a warm friendly
environment for our customer. You want to be certain highly qualified and motivated staff will
look after them. We promise a warm, and welcoming friendly environment, well defined
programmed activities that can suite all the customers we have , accompanied with professional
doctors that can provide their service to the customers from nutrition , diet programs and the
general health of the customer and we have our caf that you will enjoy staying in it taking
organic juices and healthy meals before or after training with internet service and wi fi that the
customer can use it while having a brake

The product/ services industry:

The main idea of the Health Club is fitness and healthy life , because they are very important for
evry person . We are should get a stuff with a good trainers and coach to be easy understanding
the need of our customers not just the sport and fitness machines we have .

The market:
When you come to open a new small business, you should understand the market and to know
who the other companies make a competition with you in the same area you work on it.
The Egyptian market is characterized by a lot of competitors that provide this service and still
the market can accept more competitors as it didnt reach the saturation as that market still
attracting people to open this business in addition to the economic factors as the economic
system in Egypt is capitalism and the government encourage the people to start business in egypt

The target customer

The market areas we will concentrate on are el tagmo3 el khames, Cairo, Egypt. These areas
have been growing rapidly for the past several years and should continue for the foreseeable
future. Once the concept catches on locally, we feel the potential is unlimited.
Also the economy is very important to make a greater interest nursery. When we have a good
economy, we can make a more than we want and we can grow it.
Also the experience is very important when we open a new project because there are many
competitions in the market so we should have a good experience at the teachers, on the plan, and
in choosing the location.
The characteristic of our customers
Age : 18 -45
Gender : both
Social class : medium + high

Sales plan:
For every business, there has to be some encouraging offers, to attract customers to try or even
buy their product. Throughout the year at "Royal Health Club" we will offer periodic discounts
and lots of offers. One is example is the discount for relatives and friends who come to the
Health Club by our customer we will offer 5% discount for each person our customer will
persuade to join our Health Club and have a membership up to 50% if he get 10 other people to
register for membership in our center. Another offer is for whoever pays early payments of 6
months to a year in advance, will get a 40% discount in overall. For our first year we won't be
starting by too many customers but we are planning to increase our customers year after year.

Competitive advantage:
Our competitive advantage that we will be the Health Club that is not only providing fitness
and hi tech sport machine but also we will have a caf that provide the customer with healthy
food , fresh organic juices in addition to the internet service that at the end the customer will find
himself staying all the day at the Health Club as he can find all what he need there in addition to
high professional doctors
We are ready to receive an average number of 100 customers at any given time providing them
all with our best services.

Competition:

There are no competitors in the fifth settlement or anywhere near it such as the rehab city. But if
we count the competitors that are present in all of Cairo there are World Health Club in Masr el
gedida Maryland garden

Competitive plan:
It locates in tgmoaa el khames in a place in which you can easy reach,. it offers a moderate price
rather than the other Health Clubs which is 750 per month for each Customer and this includes
using all the sport machines , sauna , Jacuzzi , it provides discounts for the brothers 50%.it has a
well trained staff that know well how to deal with all type of customers .

Organization:
Legal:
Our business will take the form of general partnership We are 7 partners, we shared
the cost equally each one paid 214,285.717 LE, taxes, risk, and responsibility of
being in business. Each one of us takes a share of profit, and shares in the decision
making. We get our licenses from Health Office,

Branches:
Our first branch will be in cairo but later on when the business achive its goals e
will open branches in other places in Egypt like sharm sheikh , hurgada , luxor
Coming to the LOCATION of the Health Club we decided it going to be
in the Fifth Avenue in Cairo and we will not rent the place we will be the owners
of it. Our decision for picking that place because it a growing area
Of course when opening Champion Health Club it will not be a we wished it to
be we want it to be the best among all ,but we will make improvements as soon
as there is profit. And when this business start to grow up we thought about
opening a new branch in somewhere else.

Growth plan:
we will take new land beside the Health Club to make expansion , then this land will

be Health Club also for people who like to do their exercises in fresh air . We will
take another place in new location to increase our market share and to attract more
and more customers

Human Resources :
After identifying our mission, vision, product, service, competitive advantage ,It is now
the time to sell the most important single element in the business plan which is our
Health Club, Champions Health Club

And talking about key personnel here is a small brief background on the stuff:
Manger : who is a well experienced person in management and a very creative and
innovative to develop our Health Club from a small one to a huge center .
Coachs:is a core member of the team, and has been for many years. he has particular
expertise in Health Club and there is no-one better for settling in the youngest of our new
starters who are naturally nervous and a little timid on the first few taking reports from the
trainers about the progress of the customers in their fitness and edit their fitness plan or show
them new plan for fitness for new customers
Trainers: Another highly qualified, highly motivated and dedicated member of our long-serving
staff, they apply the plans that is approved by the coach and work it out with our customers to
improve their fitness and provide them with sessions till they reach the standard they are
looking for
Caf Manager : is responsible for the Health Clubs caf to which provide the customers with
fresh organic juice , and healthy food .
Doctor : and importand core employee responsible for the health of the customers make the
initial check on the new members and make a report and send it to the coach to be able to
design the suitable fitness program for the new member to make him feel comfort and not tired

Critical risk:

 Study the place to know if there is any Health Club there and
know what is the extent of people need to this Health Club in
this area.
Difficulties that youll face during getting licenses from
government agencies to open a Health Club.
Be ready for the appearance of any competitors in your area.

How we will purchase our needs from machines and other

stuff ?
Management in any company must understand the art of obtaining products and
services. The procurement cycle follows specific steps for identifying a requirement or
need of the company through the final step of the award of the product or contract.
Responsible management of public and corporate funds is vital when handling this
necessary process, whether in strong or weak economic markets. Following a proven
step-by-step technique will help management successfully achieve its goals.

Step 1: Need Recognition

The business must know it needs a new product, whether from internal or external
sources. The product may be one that needs to be reordered, or it may be a new item
for the company.

Step 2: Specific Need

The right product is critical for the company. Some industries have standards to help
determine specifications. Part numbers help identify these for some businesses. Other
industries have no point of reference. The company may have ordered the product in
the past. If not, then the business must specify the necessary product by using
identifiers such as color or weight.

Step 3: Source Options

The business needs to determine where to obtain the product. The company might
have an approved vendor list. If not, the business will need to search for a supplier
using purchase orders or research a variety of other sources such as magazines, the

Internet or sales representatives. The company will qualify the suppliers to determine
the best product for the business.

Step 4: Price and Terms

The business will investigate all relevant information to determine the best price and
terms for the product. This will depend on if the company needs commodities (readily
available products) or specialized materials. Usually the business will look into three
suppliers before it makes a final decision.

Step 5: Purchase Order

The purchase order is used to buy materials between a buyer and seller. It specifically
defines the price, specifications and terms and conditions of the product or service and
any additional obligations.

Step 6: Delivery
The purchase order must be delivered, usually by fax, mail, personally, email or other
electronic means. Sometimes the specific delivery method is specified in the purchasing
documents. The recipient then acknowledges receipt of the purchase order. Both
parties keep a copy on file.

Step 7: Expediting
Expedition of the purchase order addresses the timeliness of the service or materials
delivered. It becomes especially important if there are any delays. The issues most
often noted include payment dates, delivery times and work completion.

Step 8: Receipt and Inspection of Purchases

Once the sending company delivers the product, the recipient accepts or rejects the
items. Acceptance of the items obligates the company to pay for them.

Step 9: Invoice Approval and Payment

Three documents must match when an invoice requests payment the invoice itself,
the receiving document and the original purchase order. The agreement of these
documents provides confirmation from both the receiver and supplier. Any
discrepancies must be resolved before the recipient pays the bill. Usually, payment is

made in the form of cash, check, bank transfers, credit letters or other types of
electronic transfers.

Step 10: Record Maintenance

In the case of audits, the company must maintain proper records. These include
purchase records to verify any tax information and purchase orders to confirm warranty
information. Purchase records reference future purchases as well.

The deal:
Our budget for the business is 1500000, and we need
420,140 for start up expenses like equipment of Health Club,
equipment of the medical clinic, & equipment of caf. we
calculate our expenses during those two years we get that it
costs 873,600 we need this amount to pay our expenses like
the rent of place , salaries of employees &and other fees
that be pay monthly , so the total amount of all expenses is
1,293,740 , so the rest of our amount is 2062,60 .

Income statement:
Sales
COGS
Dep.
Net income

145,000
31,000
3,501
110,499

EXPENSES START UP
*The equipment of Health Club:
Machines

90,000

 Decorations
5 air condition(3,500)

10,000
17,500

The Total

117,500

*The equipment of the medical clinic:

Pressure device
Temperature device
Bed & parvenu
Medicine wheel
2 office & 2 chair
Balance weight
Medical instruments
Total

100
100
300
400
1,500
700
1000
4,100

*The equipment of the caf:

- Out side
6 tables(160)
24 chairs(70)

960
1,680

-In kitchen
Microwave
2 steel tables
Cooker

2000
1000
2000

Electric oven
Mixer
Pepsi machine
Electric kettle
Juice machine
Coffee machine
Fridge
Deep freezer
Cooking tools
Hood smokes

3000
700
1000
200
600
600
2000
1,500
1000
300

Total

18,540

The total of startup business is 420,140

*Employees:
7 trainers *1000= 7,000
3coach*3000= 9,000
4 security*700=2,500
2 doctors*1,500=3,000
2nurses*700=1,300
3 chefs*800=2,400
3waiters*600=1,800
Total salaries

29,000

Expenses during 2 year

The fees of electricity for 2years (5000 monthly*24)=120,000

The fees of water for 2years (400monthly*24)=9,600
The fees of gas for 2years (500monthly*24)=12,000
The fees of caf foods& drinks(4000monthly*24)=96,000
The fees of medicine (1000monthly*24)=24,000

 The rent of place (1000monthly*24)=240,000

The fees of maintenance(1000monthly*24)=24,000
The salaries of employees for 1 year (29000monthly*12)=348,000
Total expenses

Total of all expenses

873,600

1,293,740

The capital is 1500000

The rest of amount is 206260

The expenses per month

Salaries of employees 29,000

Rent the place
10,000
Fees of electricity
5000
Fees of water
400
Fees of gas
500
Fees of caf
4000
Fees of medicine
800
Fees of transportation
1000
Fees of maintenance
1000

Total expenses per month

51,700

The deprecation is the number of the start up equipment

420,140/ 10*2= 84,028/24=3,501

Owner's equity
Health Club, capital, date, beginning

1,500,000 L.E.

+
Net Income

110,499 L.E.

Total

1,610,499 L.E.

Drawing

420,140 L.E.

Health Club, Capital, end

Current Assets
Cash
A/R
N/R
Prepaid insurance
Total current assets
Property, plant & equipments
Land
Buildings
Less Acc/Dep
Total
Equipment & furniture
Buses

200,000 L.E
150,000 L.E
50,000 L.E
200,000 L.E
600,000 L.E
250,000L.E
300,000L.E
(100,000)L.E
450,000 L.E
75,000 L.E
150,000L.E

1,190,359 L.E
Current liabilities
A/P
N/P
Salaries payable
Unearned rental bus
Total
Long-term liabilities
Owners equity
Total

150,000L.E
75,000L.E
60,000L.E
450,000L.E
735,000L.E
200,000 L.E
400,000L.E
600,000L.E

Tools
Total p./ plant equ.
Total assets

60,000L.E
285,000L.E
1,335,000 L.E

Total liabilities &OWNERS

Thank You

1,335,000L.E