This is why it will give just a limited perspective on things.
Elite Personal Training
The business proposal and idea that Menard and Craciun are proposing definitely has its strong points. First of all, there is clearly a niche out on the market for this type of luxury gym facilities. The motivation is not necessarily given by the fact that people want or need specific luxury conditions, but by the fact that, as some of the potential clients have pointed out, sometimes they do not enjoy being in the same large gym with more experienced and trained individuals.
At the same time, it is also a matter of the personal attention that the partners is willing to award to each of the clients, as well as the fact that these will work with individual trainers. With these in mind, it is clear that the partners are moving away from the simple gym idea to include a much more pointed and imaginative idea.
The fact that the trainers already have their own clients at the gym where they work is a good way of starting the clientele basis, assuming that these individuals will likely move on to the newly formed company in order to continue to benefit from their trainers' experience. This could further encourage word of mouth, a most efficient method of marketing, especially when the company does not have that much money allocated to marketing projects.
One of the potential...
First of all, London, Ontario is not a large city. With 356,000 individuals, this does not leave a large amount of individuals which will have all the necessary qualities to be included in the company's potential clients (younger age, predisposition to sports and training, medium to high income etc.). Further, the average income of the city is not very high either: with $27,000, one can wonder how these potential clients will also be able to afford a luxury gym.
There are also quite a lot of training facilities and gyms on what we have already described as a reasonably small market. Some of them already have an established group of targeted consumers and it would be hard to take away these clients, especially since the business is planned to use minimal marketing funds.
Some of the financial burdens of the operation also could pose some problems in the initial stages of development. As we have seen, the starting capital amounts to $38,000, and this will probably be enough to purchase the equipment (although not really the best, which makes one wonder how this fits with the idea that this is a luxury training facility) and complete the initial start-up funds. However, if the company does not generate sufficient funds in the initial operating months, given the fact that the bank was reticent to loan more than $24,000,…
