Bounce Fitness, led by Margaret House, leverages her extensive experience in personal training and life

coaching to provide high-quality fitness services in several Australian cities. Initially reliant on advertising
and tenders, the business now primarily sustains itself through memberships and supplements its
income with add-on services. The company aims to tap into the rapidly growing personal training, life
coaching, and health enhancement industry. Bounce Fitness differentiates itself with competitive pricing,
unique classes, and a comprehensive health enhancement approach, positioning it as an industry leader
in a flourishing market, with projected annual revenue exceeding $2.5 million in 2XX1. Bounce Fitness
sets itself apart by offering a holistic approach, developed by Ms. House. This approach includes
personalized client support, staff attentiveness, engaging new classes, and innovative concepts. By
incorporating life coaching, remedial massage, and additional health services, Bounce Fitness not only
enhances the client experience but also boosts the utilization of its centers while providing added
convenience for clients.

Staff

Margaret House (Owner and CEO of Bounce Fitness):

Margaret House serves as the owner and Chief Executive Officer of Bounce Fitness.

She has a significant background in remedial therapy and training instruction, with eight years of
experience before transitioning to a managerial role 15 years ago.

She holds a degree in sports physiotherapy, a Graduate Diploma in Management, and a Trainer
Certificate in Life Coaching.

Margaret House has played a pivotal role in establishing Bounce Fitness and developing comprehensive
life coaching programs.

She's known for her innovative approach, combining personal fitness, health care, and advanced life skill
training in the company's training programs.

With a technical background, she is a valuable asset as CEO and frequently advises her staff on complex
issues, contributing to day-to-day operations.

Staff Members:

The staff at Bounce Fitness, including personal instructors, consult with Margaret House, drawing upon
her expertise when handling complex issues.

Margaret's experience has proven valuable in supporting daily operations and addressing various
challenges.
Marketing Strategies

Competitive Pricing and Quality Emphasis:

Market Bounce Fitness as a provider of high-quality personal training and holistic services at a more
affordable price point compared to larger competitors.

Advertising in Lifestyle Magazines:

Advertise in lifestyle magazines to reach a broad audience.

Initially, run half-page ads in both weekly and monthly editions for $250 per month, per Centre.

After six months, consider running full-page ads for $350 per month, per Centre.

Word-of-Mouth Marketing:

Emphasize word-of-mouth marketing by holding information seminars at Chamber of Commerce

luncheons, service groups, and schools within a 30-mile radius.

Write articles for a national lifestyle publication and approach Human Resources managers in larger
businesses for personal promotion.

Targeted Outreach to Specific Sectors:

Continue with the tender processes to secure contracts.

Approach medical centers and aged care centers to offer specialized health improvement programs,
heavily subsidized as a community service.

No Reliance on Sales Force:

Avoid relying on a dedicated sales force to generate business, indicating a different approach to client
acquisition.

Pricing strategy

Bounce Fitness offers cost-effective services compared to larger competitors due to lower overhead and
a smaller workforce. A survey indicates that similar firms charge an average of $220 more per person for
a year-long membership. Additionally, Bounce Fitness provides customized pricing for corporate
partners, special interest groups, and community initiatives.
ACTION PLANS

PERSONNEL

Bounce Fitness intends to maintain low wage and salary expenses by employing personal trainers on a
salary basis instead of contracting their services. The plan is for these trainers to volunteer their services
to schools, hospitals, and community initiatives when they are not conducting classes or providing
personal training. This strategy aims to raise the company's visibility and community involvement.

FEE COLLECTION

Bounce Fitness provides flexible payment options for membership services, offering reduced costs for
full annual payments. Members can also choose to pay monthly or quarterly at slightly higher rates, with
payment methods including cash, EFTPOS, or credit cards. Casual class payments are priced higher, while
other services align with industry standards in the same locality. Additionally, corporate clients with 10
or more employees taking corporate memberships receive a 25% discount and deferred monthly billing.
Due to the small expected revenue and low risk of non-payment from this segment, accounts receivable
and bad debt expenses are not a concern.

EXPENSES

Rent, salaries and the cost of equipment leases are the largest expenses that Bounce Fitness faces

RESISTANCE EQUIPMENT

Bounce Fitness has chosen to lease equipment after a thorough analysis due to several factors. Firstly,
purchased equipment may quickly become outdated, and the initial cash outlay is substantial. Estimates
for purchasing resistance equipment averaged $2,699 per machine, totaling $46,855 per Centre. Renting
the same equipment would cost approximately $8,450 per month, while leasing it for 36 months with an
11% annual interest rate would amount to $5,000 less per month than the rental alternative. This
decision ensures modern and sophisticated equipment while managing costs.

FITNESS FACILITIES

Bounce Fitness explored service options but decided against purchasing a training facility due to
capital constraints. Instead, they negotiated a favorable lease agreement with a property
management firm for all locations. The lease spans three years with an additional three-year
renewal option. Monthly rent starts at $1,500 in the first year, increasing to $1,700 in the second
year and $1,900 in the third year. During the renewal period, rent rises by 5% annually. This lease
covers water, waste removal, and maintenance costs.

FINANCIAL PROJECTIONS

The percentage of clients choosing single classes or memberships is based on data from the National
Fitness study and a report from The Journal of Fitness. These reports indicate that those with previous
memberships are more likely to pursue additional memberships for greater health benefits. Using this
data, Bounce Fitness expects gross revenue of over $2,500,000 for the year, exceeding $5,000 per center
per month.

The financial goals for each Centre for the coming year are:

 Return on investment of at least 15%

 Increase net earnings by at least 10%
 Achieve a market share of 15% in each area
 Increase sales 5% by June 30 through marketing initiatives
 10% new memberships

Knowledge Management

Bounce Fitness employs a secure and custom-designed Information and Knowledge Management
System called "Bounce IT." This holistic system encompasses various aspects of the business, collecting
data related to finance, client databases (internal and external), stock control, and client membership
activity. It records client details, fitness goals, personal training sessions, transactions, and more.
Managers use it for income tracking and stock control, the owner for payroll and financial management,
and employees for sales and client record-keeping. Bounce IT ensures compliance with legal and privacy
standards, safeguarding client safety and information.

MEMBERSHIP BUILDING MARKETIN ACTIVITY PLAN

 Advertising: Advertise on free websites by team member, in 5 sites per month

 Promotions – recommend a friend: All team members should be encouraging their clients to
recommend a friend. One free fitness test and plan for anyone who recommends a friend who
enrols, 20 per month
 Local businesses; Acquire contact details, make appointments and visits, follow up with material
regularly. By manager for 40 people per month
 Local high school: acquire contact details, make appointments and visit, follow up with material
regularly. By manager 10 people per week
 Tourist Industry (Hotels, restaurants, places of interest): Acquire contact details, make
appointmentsand visits and follow up with material regularly, by manager 60 people per month