Fitness Equipment Business Plan

Circuit Fitness Importing is an Oregon registered LLC formed to be the exclusive importer of Wega Corporation’s innovative Esercitazione Diritta fitness equipment. This patented equipment is already popular in Europe and Circuit Fitness Importing is poised to obtain the exclusive license to sell it in the U.S.A.

The Market

The American fitness market, a subset of the sporting goods industry, has $5.8 billion in sales. Over the past decade, there has been a significant increase in membership and usage of fitness equipment. As a society, Americans are realizing the impact of unhealthy eating habits and lack of physical activity on their lives, resulting in a booming fitness participation. Circuit Fitness Importing has identified three attractive customer segments:

  • Distributors – 60% of fitness equipment sales are to independent fitness clubs.
  • Health Clubs – Estimated $565 million in sales for Year 1.
  • Vertical Markets – Over 30,000 non-fitness industry facilities.

The Product

Esercitazione Diritta is Wega Corporation’s flagship fitness equipment, featuring patented technology applicable to strength fitness equipment. Unlike other manufacturers, Esercitazione Diritta has users perform exercises in a standing position, strengthening lower body muscles and central motor skills needed for weight lifting. The patented technology provides Circuit Fitness Importing with a competitive edge. Additionally, the equipment is built on casters, allowing for easy movement.

Management

Circuit Fitness Importing will be led by Max Peruggio, who possesses a strong skill set to execute the business model:

  • Project manager for civilian and military projects over $100 million.
  • Sales manager, increasing sales of a design firm tenfold in two years.
  • Fluent in Italian and English.
  • Successful importer of Italian goods into the U.S.A.
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The exceptional product, exclusive licensing agreement, and experienced sales and project manager will enable Circuit Fitness Importing to quickly gain market share. Revenue projections for years two and three are $1.0 million and $1.2 million respectively, with a net profit of 6.0% and 6.98%.

Fitness Equipment Business Plan Example

Circuit Fitness Importing’s mission is to offer innovative fitness equipment to the U.S.A. market, exceeding customer expectations with the highest quality products and premium support. They strive to become the premier fitness equipment importer. The keys to their success are providing value with innovative products, developing strong distributor relationships, and ensuring profitability through strict financial controls. Their objectives include becoming the sole U.S. importer of the Esercitazione Diritta exercise system, generating $1 million in revenue within two years, and achieving profitability within the first year. Circuit Fitness Importing, an Oregon LLC founded by Max Peruggio, imports fitness equipment from Italy into the U.S. They are in the process of opening an office in Portland to secure an exclusive importing contract with Wega for the Esercitazione Diritta exercise equipment. The office requires three computer workstations with Microsoft Office licenses, a broadband Internet connection, two laser printers, and Peachtree Accounting.

Fitness Equipment Business Plan Example

Start-up Funding

– Start-up Expenses: $17,900

– Start-up Assets: $182,100

– Total Funding Required: $200,000

Assets

– Non-cash Assets: $15,000

– Cash Requirements: $167,100

– Additional Cash Raised: $0

– Cash Balance on Starting Date: $167,100

– Total Assets: $182,100

Liabilities and Capital

– Liabilities: None

– Current Borrowing: $0

– Long-term Liabilities: $85,000

– Accounts Payable: $0

– Other Current Liabilities: $0

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– Total Liabilities: $85,000

Capital

– Planned Investment: None

– Max Perrugio: $40,000

– Family and Friends: $75,000

– Other: $0

– Additional Investment Requirement: $0

– Total Planned Investment: $115,000

– Loss at Start-up: ($17,900)

– Total Capital: $97,100

Total Capital and Liabilities: $182,100

Total Funding: $200,000

2.2 Company Ownership

Max Peruggio is the sole owner of Circuit Fitness Importing. He has invested $40,000 in the business and received funding from friends, family, and bank debt.

Products

Esercitazione Diritta is a new type of strength training fitness equipment. Unlike traditional equipment, Esercitazione Diritta has the user stand while exercising. This standing posture offers several advantages:

– Develops equilibrium with the central nervous system as the user exerts force while maintaining a standing posture.

– Strengthens the lower body in addition to working the specific muscle group.

– Replicates natural movements used in daily life.

– Incorporates cardio into the workout by requiring the user to stand while performing the exercises.

All Esercitazione Diritta machines are commercial quality and made in Italy with high-grade steels. They are designed for constant use and can be easily moved within the club. The machines target a wide variety of body zones and muscle groups, including chest, tractions, shoulders, legs, gluteus, rowing, triceps, and arm curl exercises.

Esercitazione Diritta is organized into a circuit of machines, allowing users to efficiently use all machines in a 45-minute workout. The equipment has received multiple international patents and Wega, the manufacturer, is interested in distributing it in the U.S. fitness market. Max Peruggio, founder of Circuit Fitness Importing, has been requested by Wega to submit a proposal for the exclusive U.S. importation of Esercitazione Diritta.

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Market Analysis Summary

Circuit Fitness Importing has identified three customer segments for their fitness equipment:

– Distributors: Sell the majority of fitness equipment in the U.S.

– Fitness Clubs: The second largest market for fitness equipment, with a significant increase in membership.

– Vertical Markets: Non-health club environments such as hotels, hospitals, apartment complexes, corporations, universities, and senior citizen centers.

Distributors typically carry exclusive vendor contracts for each type of equipment. Health clubs have seen a shift in customer demographics, with a greater cross-section of the population joining. Vertical markets, including hotels, senior living communities, apartment complexes, corporate wellness programs, and hospital fitness centers, are experiencing rapid growth as consumers value convenient access to exercise facilities. Corporate wellness programs have shown significant financial gains for companies, with reduced healthcare costs and increased productivity.

Fitness Equipment Business Plan Example

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