Question

Pretend you are a Shark Tank advisor. Two business partners have come to you for advice for a business they own and operate. This assignment requires you to create a one-page executive summary (not including backup tables of your analysis) of your advice for this business.

Topic/Question - Read the following scenario then address the recommendation/advice section of this assignment.

Tired of hiring themselves out and abiding by corporate rules and various personality issues with management of fitness facilities, two fully certified personal trainers opened a fitness facility. Each trainer was certified in indoor cycle (aka Spinning), personal training, strength, high-intensity training, and TRX. The facility was housed in the finished basement of one owner’s personal residence. They invested $3000 that covers startup equipment costs. Startup equipment included spin bikes, fans, weights, step benches, and mats. Over time they upgraded the spin bikes and added more features such as resistance bands, ropes, TRX equipment, kettlebells and other items for approximately $1000. Based on periodic feedback from clientele, they added some yoga classes and another instructor to teach additional spin classes. The owners taught 90% of the classes themselves and did not take a salary from the business. The yoga classes fully funded the yoga instructor. The additional spin instructor cost approximately $150/month. Costs included $500 monthly for insurance, $200 monthly for utilities, $80 for music licensing. Clientele paid $10 per class unless they purchased a package of 20 classes for $85 or 10 classes for $65. They ran approximately 26 classes a week. Unless there were 2 clients in a class, the class was cancelled. The business averaged 4 clients per class and averaged cancelling 3 classes per week. They also had personal training clients who paid 20 per session. The business averaged 8 personal training sessions per week. Tax rate is 20%. Depreciation on the equipment is 20% a year. Efficiency of the business is compromised from time to time based on clientele – since this is a boutique business that runs classes of 5-6 individuals, personalities and drama sometimes require the business owner’s significant management time in the form of communications with clientele.

Between the two of them, they could earn $800/month by contracting themselves out to other facilities. Additionally, without the business, the trainers could conduct personal training sessions in the basement facility using the equipment they already have and would incur insurance costs of $60/month, no music licensing fees and $100 utilities.

Answer 1

This situation is a potential instance of two youthful fan who plainly recognize what they needed/need to do expertly throughout everyday life.

How about we put the proposal in pointers for simple appreciation…

1) Knowledge: For any business to support it is basic that the included individuals know the fundamental and most convoluted arrangement of realities identified with the running of the business. These two people are confirmed coach and know their Job.

2) Customer Base: They can make an interpretation of the open door into cash (with dropped meetings – that is OK!) and have set of client to help their expert interest

3) Running Expenses: The present set-up has some fixed costs that can be met if the wheel of activity run easily (even with current arrangement of limitations) and the quantity of dropping meeting don't increment. It is the region of slippage additionally so should be under cautious checking for supporting benefits.

4) Tax and Depreciation isn't possible away – so acquire more to ward them off at a hands separation.

5) Inclusion of Yoga classes is brilliant move. As more individuals are turning out to be wellbeing cognizant and are not slanted to oxygen consuming or weight preparing it is a decent enhancement with superb future possibilities.

6) Upskilling: The last suggestion will be to keep their aptitudes continually updating with the goal that they can alleviate any new business challenge and receive to evolving pattern.