Ecogym - Rethinking Energy

2013[pic 5][pic 6][pic 7][pic 8][pic 9]

ECOGYM

Entrepreneurship and Business Planning

Professor: Mário Valente

RETHINKING ENERGY…

Cláudia Gonçalves (152112342), Margarida Vieira (152112311), Sofia Fresco (152112310) & Victor Chia (152412040)

INDEX

1. EXECUTIVE SUMMARY        _5[pic 10]

1. BUSINESS DESCRIPTION _        

1. Problem        7
2. Solution        7

1. INDUSTRY ANALYSIS _        

1. Macro-level: Porter’s Five Forces Analysis        7
2. Micro-level: Competitive Advantage        10
3. SWOT Analysis        12
4. Competition Analysis        14

1. MARKET ANALYSIS _        

1. Market Size        15
2. Market Trends: Survey Analysis        16
3. EcoGym’s Potential Demand        17

1. STRATEGY _        

1. General Strategy        18
2. Team        18
3. Mission, Vision and Values        18
4. Brand, Logo and Slogan        19
5. Canvas Business Model        19

1. Market Segmentation        22
2. Product        22
3. Promotion        23
4. Placement        24
5. Price        25
6. People        25
7. Processes        26
8. Physical Evidence        26
9. Sales planning        26

1. Space Regulations        27
2. Insurance Regulations        27
3. Music Copyrights        27
4. Internal Rules        28

1. HUMAN RESOURCES MANAGEMENT        29[pic 11]
2. CASH STATEMENT _        

1. Start-up needs        30
2. Revenues        31
4. Advertisement Costs        32
5. Other Costs        32
6. Taxes        33
7. Working Capital        33
8. Cash Flow Statement Summary        33

1. FINANCIALS _        

1. Financial Plan        34
3. Balance Sheet        35
4. Economic Feasibility        36
5. Ratios        36
6. Break-Even Point Analysis        38
7. Sensitivity Analysis        40
8. Financial Needs

1. LEGAL ENVIRONMENT _        

1. Company Ownership        40
2. Shareholders’ Agreement        41

1. EXIT STRATEGY        43[pic 12]
2. APPENDIX _        

1. Estimation of Demand        44
2. Human Resources Composition        44
3. Cash Flow Statement        45
4. Profit & Loss Statement        46
5. Balance Sheet        47
6. Net Present Value        47

1. REFERENCES        48[pic 13]

1. EXECUTIVE SUMMARY

EcoGym is a Portuguese chain of gyms which provides a space fully equipped with experienced teachers and coaches who aim to make exercise fun and a rewarding activity. Being a self sustainable gym, EcoGym gives the opportunity to its customers to make exercise and benefit in economic terms with its effort and sweat.

The company wants to differentiate itself from the competition being self sustainable, environmentally friendly while saving on energy costs, which are a major source of cost for a normal gym. Currently, there is no other gyms in the marketplace that provides this type of service and benefits to its customers that the company has developed. This service has been developed in order to use kinetic energy generated by the typical workout to satisfy gyms’ energy needs.

Given the large supply of gyms on the market, EcoGym is mainly directed to people aged between 15-64, that are active and enjoy doing physical exercise and live in Lisbon or commute to Lisbon. Additionally, the uniqueness of Ecogym, thanks to  its  differentiation factor, makes it possible to meet the needs of a niche market composed by two specific targets of consumers: the “greens”, who have a great environmental consciousness and are interested in the sustainability and green sources of energy of the gym, and the “heavy users”, who give great importance to physical exercise and their health and body and attend the gym several times a week. These users would be interested in the kinetic energy, because they could see it like a challenge to pay less through burning more calories at the gym.

The gyms will be advertised through its on website, outdoors (mupis) and flyers. Additionally, we will also have sporadic events to promote our brand and space to the public.

The potential market for EcoGym is very promising and given the average capacity of a normal gym and the number of residents in each of the cities where the gyms will be placed, we estimate to achieve in the first year 919 members, 1182 members in the second year and 1800 by the end of the third year in the three gyms.

The financial projections for first year shows a net income of € - 319.633,36. In the second year is projected a net income of € 49.323,75. For the last year of projections, the third year is demonstrated a net income of € 240.547,81€.

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