Openning a Gym in Barcelona

Abstract

The purpose of this project is to analyze the viability and profitability of building a gym in the outskirts of Barcelona, starting from the detection of a need in the market; the lack of spacious gyms in the city center (where most gyms are, apart from small, crowded during peak hours) and the need of bringing the American style of training to Spain. In order to do this, an analysis of competition has been developed, followed by a marketing, operations and human resources plan together with their corresponding budgets. These budgets have been later used to develop a financial plan forecasted 3 years, from where it can be concluded that revenues coming from memberships are not enough to cover the investment in machinery and facilities rent. To see what could have been done different to make this business profitable, an optimistic scenario has been designed by multiplying by 2 the membership revenues, which has shown that, if a bit less than the double of members were achieved, the company would start being profitable from the quarter 2 on.