Are you about starting a boxing gym? If YES, here’s a complete sample boxing gym business plan template & feasibility report you can use for FREE to raise money. Okay, so we have considered all the requirements for starting a boxing gym business.
We also took it further by analyzing and drafting a sample boxing gym marketing plan template backed up by actionable guerrilla marketing ideas for boxing gyms. So let’s proceed to the business planning section.
Why Start a Boxing Gym Business?
Boxing is an international sport hence it is practiced all over the globe; it is also one of the major medal events in the Olympics, this is the reason why you can hardly find a country or city without an active boxing gym or boxing club.
Different people enroll in a boxing gym for various reasons; some for fitness purposes, some for the fun of it, while others enroll to pursue their goal of participating in boxing events in the Olympics and perhaps to become professional boxers.
It is a fact that boxing requires some skills and constant practice, that is why it is necessary to take time out to practice before going out to compete in a boxing event/competition even at the local level. Of course, no individual will just step out to go compete in a boxing event/competition without adequate preparations.
If you are interested in the fitness industry and you are looking for a business to do in the industry, you can consider starting your own boxing gym in your community. Starting a boxing gym house business can be capital intensive, but you can be rest assured that you will breakeven within few years of starting it if you are in a location where people fancy boxing.
So, if you have decided to start your own boxing gym business, then you should ensure that you carry out thorough feasibility studies and also market survey. This will enable you to properly locate the business in a good location and then hit the ground running. Business plan is yet another very important business document that you should not take for granted while launching your own boxing gym business.
Below is a sample boxing gym business plan template that can help you to successfully write your own with little or no difficulty.
A Sample Boxing Gym Business Plan Template
Table of Content
- 1. Industry Overview
- 2. Executive Summary
- 3. Our Products and Services
- 4. Our Mission and Vision Statement
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 8. Our Target Market
- 9. SALES AND MARKETING STRATEGY
- 10. Sales Forecast
- 11. Publicity and Advertising Strategy
- 12. Our Pricing Strategy
- 13. Startup Expenditure (Budget)
- 14. Sustainability and Expansion Strategy
1. Industry Overview
The boxing gyms and club industry is made up of companies that provide instruction on the sport of boxing, the practice of fist fighting with padded gloves within a roped square ring. It is important to state that this industry does not include boxing event promoters or organizers.
If you are conversant with the boxing gym and club industry in the united states of America, you will notice that the industry slipped during the period of recession when consumers tightened spending on industry memberships, instruction and merchandise.
The industry is turning around due to increasing disposable income and the growing prominence of professional boxing. Publicity for the sport is driving new gyms and clubs to specialize in boxing and is helping such businesses increase profitability. Furthermore, several boxing gyms and clubs are aggressively seeking new franchisees to expand their market reach.
Going forward, the industry is expected to continue benefiting from rising disposable income and falling unemployment. One of the largest impediments to growth and profitability for the industry was the perceived risk of injury while participating in boxing training especially for amateurs.
The Gym, Health and Fitness Club industry of which boxing gym line of business is subset of is indeed a very large industry and pretty much thriving in all parts of the world especially in countries such as Cuba, Russia, Bulgaria, United States of America, Romania, United Kingdom, Germany, Australia and France et al.
Statistics has it that in the United States of America alone, there are about 103,077 licensed and registered standard gym facilities including those who are into franchising responsible for employing about 735,498 persons and the industry rakes in a whooping sum of $30 billion annually with an annual growth rate projected at 2.1 percent. No player in this industry can boast of having a giant market share in this industry but Fitness International, LLC seems to be ahead of others.
A recent report released by IBISWorld shows that the Boxing Gym and Club industry has been stagnant over the five years through 2012-17. Boxing gyms and clubs have traditionally been tied to competitive sports, with many running competitive sparring tournaments. The report further stated that over the past five years, revenue has struggled to remain afloat as boxing and other forms of martial arts have become less popular as competitive sports.
According to IBISWorld industry analyst Ryan Lin, “this is largely due to the time commitment involved in organized participation and competitive boxing, which is creating a significant hurdle for participation by time-conscious consumers”. The fear of injury has exacerbated this trend, with consumers fearing time off work or study to recover. As a result, industry revenue is expected to decrease at an annualized 1.0 percent.
Over and above, starting a boxing gym facility business in the United States of America can be somewhat stressful, it requires enough cash to acquire land large enough to accommodate the kind of indoor boxing gym facility that can comfortably attract boxing enthusiasts and also cash required to equip the indoor boxing gym facility to meet the standard expected by potential users.
2. Executive Summary
Ray Holyfield® Boxing Gym, Inc. is a standard and well equipped international boxing gym facility cum club that will be located in a growing community in Chicago – Illinois. Our basic aim of setting up the business is to contribute our quota in ensuring that the United States of America continues to produce some of the best boxers in the world; boxers that will dominate the Olympics and world boxing competitions.
We have been able to secure a standard indoor facility in a central and easy to locate location in Chicago – Illinois. We will be involved in spotting and grooming potential boxers to become Olympic gold medalists and world heavy weight champs.
We are going to carry out services such as providing private boxing classes, providing group boxing classes, other related martial arts training services, boxing and sports merchandise and apparel and other related indoor gym facility operations.
Prior to launching the business, we conducted a thorough market research and feasibility studies and we were able to come to the conclusion that Chicago – Illinois community is the right place to open our boxing gym cum club facility. Our boxing gym facility is specifically designed and built to take care of children as well as parents, we have active childcare services for toddlers and we have membership packages that are highly discounted for families that enroll in our boxing gym facility or schools and boxing clubs who would want to regularly make use of boxing gym facility.
Ray Holyfield® Boxing Gym, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a business, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely. We will cultivate a working environment that provides a human, sustainable approach to earning a living for our partners, employees and for our clients.
Ray Holyfield® Boxing Gym, Inc. is a business that is owned and managed by Ray Holyfield and his immediate family members. Mr. Ray Holyfield is a retired professional boxer who has robust experience in the boxing gym and club industry and he has a B.Ed. in Physical and Health Education, with Olympic medals and belts to show for it. He is a licensed professional boxing instructor.
3. Our Products and Services
Ray Holyfield® Boxing Gym, Inc. is in the boxing gym and club industry to provide standard boxing gym facility cum boxing training for residents of Chicago – Illinois which is why we have been able to put up a boxing gym facility that can help us achieve the goal. We are optimistic that everyone who makes use of our boxing gym facility will definitely derive maximum fun and of course get good value for their money and time.
We are in this line of business to make profit, and we will ensure that we do all that is allowed by the law of the United States of America to achieve our business goals and objectives. These are the services and amenities that will be made available to our clients in our boxing gym facility;
- Providing private boxing classes
- Providing group boxing classes
- Other related martial arts training services
- Boxing and sports merchandise and apparel
- Other related indoor gym facility operations
4. Our Mission and Vision Statement
- Our Vision is to build a world – class boxing gym facility and also to contribute our quota in encouraging people in Chicago – Illinois to actively engage in boxing and other fitness activities.
- Our mission for establishing Ray Holyfield® Boxing Gym, Inc. is to create a movement in the community that supports total engagement in boxing and other fitness activities. We want to contribute our quota towards ensuring that Chicago – Illinois community produces some of the best boxers in the whole of the United States of America.
Our Business Structure
Ray Holyfield® Boxing Gym, Inc. is in business to become the leading boxing gym facility cum boxing club in the whole of Chicago – Illinois and we will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers). As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more.
Our business will not be built only for the purpose of giving our members/customers value for their money and time, but also we will ensure that we make our work environment highly conducive for all our employees. We will provide them with employee packages that will help them stay motivated and deliver on their various tasks and goals.
In view of that, we have made provisions for the following positions to be occupied by highly qualified and experienced staff;
- Chief Executive Office – CEO
- Boxing Gym Facility Manager
- Marketing and Sales Officer
- Boxing and Safety Instructor/Assistant (5)
- Customer Care Executive/Front Desk Officer
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Carries out staff induction for new team members
Boxing Gym Facility Manager
- Responsible for operating and managing the boxing gym facility cum boxing club
- Ensures that the boxing gym facility is in tip top position at all times
- Responsible for managing food and beverage services
- Manages membership and registration services
- Handles equipment rentals and sales services
- Handles other relevant boxing gym facility operations
Boxing and Safety Instructors/Assistant (5)
- Ensures that members follow laid down safety measures when they make use of our boxing gym facility and other fitness facilities available in our boxing gym
- Responsible for handling services such as providing private boxing classes, providing group boxing classes, other related martial arts training services, boxing and sports merchandise and apparel and other related indoor gym facility operations
- Handles registration for boxing and sports tournaments and matches
- Responsible for handling and giving instruction for services such as meals and beverages, jogging and other related boxing trainings
Marketing and Sales Officer (2)
- Identifies, prioritizes, and reaches out to new clients, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of projects.
- Writes winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies for clients
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Represents Ray Holyfield® Boxing Gym, Inc. in strategic meetings
- Helps to increase sales and growth for Ray Holyfield® Boxing Gym, Inc.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions
- Responsible for financial forecasting and risks analysis
- Performs cash management, general ledger accounting, and financial reporting for the organization
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for Ray Holyfield® Boxing Gym, Inc.
- Serves as internal auditor for Ray Holyfield® Boxing Gym, Inc.
Client Service Executive
- Welcomes members and potential members/clients by greeting them in person or on the telephone; answering or directing inquiries
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the organization’s products and services
- Manages administrative duties assigned by the management in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
- Responsible for cleaning in and around the boxing gym facility
- Cleans up after customers and clean workout area
- Washes glassware and utensils after each use
- Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required
- Ensures that toiletries and supplies don’t run out of stock
- Handles any other duty as assigned by the boxing gym facility center manager
6. SWOT Analysis
Ray Holyfield® Boxing Gym, Inc. is in business to provide boxing gym facility and boxing club for residents of Chicago – Illinois and also help our clients achieve their fitness cum fun – filled activities and at the same time to make profits. We are aware that there are competitions in the boxing gym and club industry which is why we took out time to conduct an effective SWOT Analysis before investing our hard – earned money into the business.
We know that if we get things right before starting our boxing gym facility, we will not have to struggle to attract loyal clients and build our membership base to a level where we can easily breakeven in record time.
We are quite aware that there are several large, medium and small scale boxing gym facilities all over Chicago – Illinois and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be well equipped to confront our threats.
Ray Holyfield® Boxing Gym, Inc. employed the services of an expert HR and Business Analyst with bias in the boxing gym and club industry to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.
Here is a summary from the result of the SWOT analysis that was conducted on behalf of Ray Holyfield® Boxing Gym, Inc.;
One of the apparent strengths that will definitely stand as a plus for Ray Holyfield® Boxing Gym, Inc. is the fact that our boxing gym facility is centrally located in a densely populated – residential area in Chicago – Illinois; our location is in fact one of our major strength.
We equally have a team of highly qualified and experienced professionals who will work with all our clients to achieve their aims making use of our boxing gym facility and lastly our gate fee/membership package is going to be one of the best that anybody living in Chicago – Illinois can get; it is cheap and affordable.
Before setting up this business, we critically looked into our business model and we were able to identify two major weakness. One is the fact that we are a new business and the second is the fact that we may not have the financial resources required to match up with existing boxing gym facilities cum boxing clubs, gym and fitness facilities and even government owned sports facilities in Chicago – Illinois when it comes to acquiring latest boxing and fitness equipment and also in generating the needed hypes that can drive traffic towards our boxing gym facility.
Part of the advantages we have is that we are centrally located in one of the busiest and densely populated areas with the right demographic composition in Chicago – Illinois and we are open to all the available opportunities that the city has to offer.
Just like any other business operating in the boxing gym and club industry, some of the threats that are likely going to confront Ray Holyfield® Boxing Gym, Inc. are unfavorable government policies, demographic/social factors, downturn in the economy which is likely going to affect consumers spending and lastly, the emergence of new competitors within the same location where our boxing gym facility is located.
7. MARKET ANALYSIS
- Market Trends
The boxing gym and club industry is part of the industry that has benefited from recent marketing campaigns which is targeted towards encouraging people (children inclusive) to participate in recreation activities and sports, as well as consumer trends toward healthy living.
Going forward, many people who are part of the baby boomers’ generation are expected to sign up their children for health and fitness club memberships or encourage their children to make use of available boxing gym and club facilities in their communities. However, patrons of boxing gym facilities are anticipated to increasingly pick up membership from less expensive facilities as against expensive all – inclusive clubs.
The trend in the gym industry of which boxing gym facility line of business is a subset of is such that if a facility is well – equipped and positioned in a residential area with the right demographic composition or a place where people can easily access without much stress, there is the likelihood that the boxing gym facility will enjoy high patronage.
Just like in other business ventures, the owners of boxing gym facilities are always looking for ways to increase their market share; they go as far as signing deals with high schools and also boxing clubs et al to make use of their facility.
It is a common trend that as boxing gym facilities grow, it becomes necessary for them to develop new service offerings or install new facilities that will help them attract more people. Little wonder some boxing gym facilities now have other facilities targeted towards attracting children. In order words, it is very important for boxing gym facilities to continue to improvise if they want to grow their business and generate their target revenue.
8. Our Target Market
The target market for our boxing gym facility and boxing club cuts across children and adults from different backgrounds. The fact that people visit or register in boxing gym facilities and boxing clubs for various reasons makes marketing the business interesting. The target market for boxing gym facility can be categorized into three groups.
The first group are individuals who are looking towards becoming professional boxers and perhaps represent their state or country in boxing competitions. The other group of people are schools who would want an ideal place to take their students/children to during boxing practice/training or excursions. The last groups of people are boxing lovers who just want to engage in boxing training to stay fit and for the fun of it.
Ray Holyfield® Boxing Gym, Inc. will work towards providing services, facilities and environment that will help us reach out to our target market. These are the category of people that we intend marketing our boxing gym and club to;
- Households and families who love boxing in an around Chicago – Illinois
- Professionals boxers looking for a boxing gym to train regularly
- Schools with boxing clubs
- Boxing clubs without standard boxing gym
Our competitive advantage
The boxing gym and club industry is indeed a prolific and highly competitive industry. Clients will only make use of your boxing gym facility if they know that you can successfully help them achieve their goals or provide the enabling environment and facility for their children to learn boxing.
Ray Holyfield® Boxing Gym, Inc. is centrally located in a densely populated – residential area with the right demographic composition (a good number of boxing enthusiasts) in Chicago – Illinois; this is obviously going to give us an edge amongst our competitors.
We equally have a team of highly qualified professionals who will work with all our clients to achieve their aims of making use of our boxing gym facility and lastly our gate fee cum membership package is going to be one of the best that anybody living in Chicago – Illinois can get; it is cheap and affordable.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups boxing gym and boxing club facility businesses in the United States) in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Ray Holyfield® Boxing Gym, Inc. is established with the aim of maximizing profits in the boxing gym and boxing club facility line of business and we are going to go all the way to ensure that we do all it takes to attract both individual clients (families) and corporate clients on a regular basis.
Ray Holyfield® Boxing Gym, Inc. will generate income by offering the following services;
- Providing private boxing classes
- Providing group boxing classes
- Other related martial arts training services
- Boxing and sports merchandise and apparel
- Other related indoor gym facility operations
10. Sales Forecast
It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field.
It would be hard to create a sales forecast with a newly opened business like boxing gym facility and boxing club. This is because the statistics that will be provided will be on a short – term basis. Experts say that usually a business should be in operation for at least one year before they can generate the statistics that will be needed in accurate forecasting; statistics should be at least one year old in order to show the trends and pattern in consumer spending.
We expect to welcome a minimum of 1,200 professional and amateur boxers i.e. one hundred boxers per month within our first year of operation and then in subsequent years we will grow by 25 percent on more. Below are the sales projection for Ray Holyfield® Boxing Gym, Inc., it is based on the location of our boxing gym facility and the services and products that we will be offering to our clients (members);
- First Fiscal Year-: $200,000
- Second Fiscal Year-: $450,000
- Third Fiscal Year-: $750,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major competitor offering same services as we do within 4.5 miles’ radius from our boxing gym facility and boxing club. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Our marketing strategies will be directed towards achieving specific objectives that support the strategic goals of the organization. The truth is that all we do will be geared towards creating new market channels, increasing sales and our market share. We will leverage on improving our services to ensure that we win new clients and retain old members.
At Ray Holyfield® Boxing Gym, Inc., our marketing strategies will be consistent throughout the marketing mix and we will take into consideration product improvement, promotion and price.
As part of our sales and marketing strategies, we will pay attention to the promotion of our boxing gym and club facility so as to attract families, individuals and boxing clubs to enroll and become members of our boxing gym facility.
Our unique selling proposition is that we are well positioned and people can easily access our facility, our prices are affordable and we have a complete package for families, schools and boxing clubs. Part of the marketing and sales strategies that we will adopt are;
- Open our boxing gym facility with a big party for people that reside in and around Chicago – Illinois
- Advertise Ray Holyfield® Boxing Gym, Inc. on national dailies, local TV and radio stations
- Promote our boxing gym facility online via our official website and all available social media platforms
- Introduce our boxing gym facility by sending introductory letters alongside our brochure to boxing clubs, schools, corporate organizations, households and key stake holders in Chicago – Illinois
- Print out fliers and business cards and strategically drop them in sport centers, stadiums, offices, libraries, public facilities, train stations et al.
- Deliver consistent customer experience to all our members; making first impressions count positively to those making use of our boxing gym facility for the first time
- Make use of attractive hand bills to create awareness and also to give direction to our boxing gym facility
- Adopt direct mailing coupon marketing approach
- Position our signage/flexi banners at strategic places in and around Chicago – Illinois
- Create a loyalty plan that will enable us reward our consistent members especially those that registered as family or groups
- Engage in roadshows within our neighborhood to create awareness for our boxing gym facility and boxing club
11. Publicity and Advertising Strategy
We have been able to work with our branding and publicity consultants to help us map out publicity and advertising strategies that will help us work our way into the heart of our target market. We are set to become the number one choice for both corporate and individual clients in the whole of Chicago – Illinois which is why we have made provisions for effective publicity and advertisement of our boxing gym facility and boxing club.
Below are the platforms we intend to leverage on to promote and advertise Ray Holyfield® Boxing Gym, Inc.;
- Place adverts on both print (community based newspapers and magazines) and electronic media platforms
- Sponsor relevant community based sport events and competitions
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
- Install our billboards in strategic locations all around Chicago – Illinois
- Engage in roadshows from time to time in targeted neighborhoods
- Distribute our fliers and handbills in target areas
- Contact Families, corporate organizations, boxing clubs and schools by calling them up and informing them of Ray Holyfield® Boxing Gym, Inc. and the services we offer
- List Ray Holyfield® Boxing Gym, Inc. on local directories/yellow pages
- Advertise our boxing gym facility in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our official vehicles are branded with our corporate logo.
12. Our Pricing Strategy
Our pricing system is going to be based on what is obtainable in the industry, we don’t intend to charge more (except for premium and customized services) and we don’t intend to charge less than what our competitors are charging as gate fees or membership fee in Chicago – Illinois.
Be that as it may, we have put plans in place to offer discount services once in a while and also to reward our loyal customers especially when they refer clients to us or when they register as a family or a boxing club, organization or schools. The prices of our services will be the same as what is obtainable in the United States’ open market.
- Payment Options
The payment policy adopted by Ray Holyfield® Boxing Gym, Inc. is all inclusive because we are aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulations of the United States of America.
Here are the payment options that Ray Holyfield® Boxing Gym, Inc. will make available to her clients;
- Payment by via bank transfer
- Payment via online bank transfer
- Payment via check
- Payment via bank draft
- Payment via mobile money
- Payment with cash
In view of the above, we have chosen banking platforms that will enable our clients pay us without any difficulty. Our bank account numbers will be made available on our website and promotional materials so that it will be easier for members to pay their membership fees (renew their membership).
13. Startup Expenditure (Budget)
When it comes to setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.
The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a boxing gym facility; it might differ in other countries due to the value of their money.
However, this is what it would cost us to set up Ray Holyfield® Boxing Gym, Inc. in the United of America. These are the key areas where we will spend our start-up capital;
- The total fee for registering the business in the United States of America – $750
- Legal expenses for obtaining licenses and permits – $1,500
- Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of $10,000
- The cost for hiring business consultant – $5,000
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800
- The cost of accounting software, CRM software and Payroll Software – $3,000
- The cost for leasing facility for the boxing gym facility – $250,000
- The cost for facility remodeling and equipping the facility with the required boxing and fitness equipment and machines – $150,000
- Other start-up expenses including stationery – $1000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
- The cost for start-up inventory – $15,000
- The cost for acquiring various boxing and fitness training equipment, machines and supplies – $150,000
- The cost for the purchase of furniture and gadgets – $10,000
- The cost of launching a Website – $600
- The cost for our grand opening party – $15,000
- Miscellaneous – $15,000
We would need an estimate of $750,000 to successfully launch a standard and well – equipped boxing gym facility in Chicago – Illinois.
It is important to state that the testing and evaluating expenses would be high because of the large amount of equipment needed to start up a boxing gym facility and also the sophistication of the technology used in modern day boxing trainings.
Generating Funds/Startup Capital for Ray Holyfield® Boxing Gym, Inc.
No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a business such as boxing gym and boxing club business. No doubt raising start – up capital for a business might not come cheap, but it is a task that an entrepreneur must go through.
Ray Holyfield® Boxing Gym, Inc. is a business that will be owned and managed by Mr. Ray Holyfield and his immediate family members. They are the sole financiers of the business which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.
These are the areas we intend generating our start – up capital;
- From personal savings and sale of his stocks
- From friends and other extended family members
- From the bank (loan facility)
N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business closes shop.
One of our major goals of starting Ray Holyfield® Boxing Gym, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over to pick up membership in our boxing gym facility is to equip our facility with state of the art boxing gym fitness and training equipment et al and make our services affordable.
Ray Holyfield® Boxing Gym, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry and they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Acquiring indoor gym facility and remodeling the facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging, Marketing/Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the needed boxing and fitness gym and fitness equipment, electronic appliances, office appliances and suppliers: In progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress.
- Establishing business relationship with vendors and key players in the industry (boxing merchandize suppliers, boxing regulating bodies and boxing clubs): Completed