Feasibility Studies

Services > Starting a Fitness Business

A feasibility study is an objective assessment of how practical a proposed business is while rationally uncovering the strengths and weaknesses of an existing or proposed venue. We conclude a project is a viable venture if it can withstand risks, generate sufficient cash flow and prove to be sustainable over time.

Simply stated, we prove or disprove how feasible the proposed business would be by answering several important questions:

Is there a market for the entity you want to create within the area you want to put it in?
What is the competition you would face?
What specific activities will create revenue?
Do you have the tools and resources necessary to attain the projected ROI you expect?

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Feasibility Analysis Services

Our process has several key steps that are implemented:

Preliminary analysis:

This initial step involves defining parameters for the study. We will determine what services and programs will be offered, who will be targeted as an end user, define the demographics and fitness tendencies of the potential customers and specify the market size for the proposed entity.

During this key first phase, we will determine if the proposed area is an underserved market — where the demand is potentially greater than the supply — and whether proposed offerings and services will have an advantage to create sustainability. Additionally, we’ll also look at potential challenges to overcome, such as affordability to build or rent space.

Engage in an extensive market study:

The essence of feasibility is projecting the clearest picture of any revenues you can expect from developing your entity. We’ll take into account geographic influences on the market, look at ideal customer demographics, analyze competitors and what they offer, and evaluate the market and what your potential share will be if it is open to expansion.

As you’ll see by our example, each study is conducted with significant detail, taking into account the age and income of potential users, traffic flow, parking, drive time metric and social influences.

Deep dive into the business climate and industry/market trends

Our team has an inordinate amount of experience assessing and projecting trends in the health and fitness space and will identify challenges that could impact the proposed entity moving forward.

We’ll inject regional and national industry standards into the study as well as identify unique and specific influences to regions that may impact the long-term success of the proposed entity.

Review of operating requirements to effectively and successfully create a viable entity in the proposed area:

The development of an organizational chart that clearly defines the structure needed to successfully operate the proposed entity is essential.

Prepare an opening day balance sheet:

Translating our extensive research into five-year projections will determine your choice of action moving forward. We will develop pricing methodology, fine-tune offerings, project membership growth and develop definitive profit and loss, cash flow and balance sheet projections that will objectively determine the feasibility of the proposed entity.

Once the study is complete, our experts will review it with you to determine if it is truly feasible for the proposed entity to move forward.

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