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3. Company: Strength Central
Mission Statement
Strength Central wants to be the first choice for all powerlifters in Taiwan. Dedicated to having the best team members, equipment, know-how, training, and competitions.
We believe the core to success in strength training comes from doing it right, following a proven plan, and learning from the best.
We are a gym that is owned by the people that walk in the door. The gym is a place where people can feel like it is their own.
3.1. What is the company
Powerlifting is at the root of the gym. This is a niche of exercise that aims at creating the strongest lifts, that are seen in the Olympics and strongman competitions. These lifts are usually: squat, bench press, deadlift, overhead press, snatch, and clean & jerk. They require an incredible amount of training in order to be done well, safely, and at maximal power. The gym will be designed with equipment geared towards those lifts.
Gym offers:
- New gym equipment with focus on simplicity, hence no machines.
- Large assortment of bars, weights, and racks.
- Powerlifting classes that teach fundamentals.
- Competitions to fuel goals.
- Opportunities to train alongside fellow powerlifters and future Olympians.
- Gym that feels like your own.
- Cross fit classes.
- New member training on how to use a gym.
- Affordable personal trainer.
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3.2. Location
Location is the most important factor in how people select a gym. Obviously, there are different types of gyms available but most people choose one that is closer to their home and accessible. I too have to agree with this. Every time I moved, I had to find a new gym. In some cases, it was the same company, but different location. Nonetheless, I always chose a gym that was easy to get me in the door. I didn’t want to struggle with parking or have to drive too far.
Strength Central is easy to get to. The gym will be within a 3-minute walk of Xinpu MRT Station in Banqiao. Banqiao has shown a lot of promise in infrastructure, and the lack of direct competition in gyms makes it even more ripe with opportunity.
Not only is the first mover on our side, but also the area is very accessible by scooter or bus.
At the same time, it isn’t as congested as Banqiao MRT Station. Members can easily find a parking spot for their scooter within sight of our doors. Also, buses are plentiful.
Highway 3 passes thru Xinpu MRT Station and continues into Taipei city, so motorists living in Taipei have easy access to the location via car. Xinpu Station is also at an intersection of Highway 3 and Expressway 64. Thus gym-goers coming from west of Taipei and southeast of Xinpu have quick and easy access to the gym. Additionally, four public parking lots are within a 5-minute walk of the gym, as well as street parking which is available at random.
In the next year or two a new MRT line will pass through Banqiao MRT creating even more traffic in Banqiao. At that point, people living in Yonghe, Zhonghe, and Xindian will have easy access to Banqiao via MRT. And Xinpu is only one stop away from Banqiao Station, so if people are coming by MRT they only need to make one more stop. Last, Banqiao Station has many trains, non MRT routes, that bring people into the city; much like Taipei Main Station. This could serve to bring in more people that may view Banqiao as too far away or inaccessible.
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3.2.1. New Taipei City vs Taipei
Having a business in New Taipei instead of Taipei has one big advantage, lower property costs; hence, lower rent. Having lower rent in our business model will help to turn a profit faster and allow for future expansion.
Data from Sinyi Realty in 2016, property values (nt/ping): (Liu) - New Taipei City: $358,000
- Taipei: $546,000
Further example of a region in each city:
- Jiangzicui (rezoned, next to Xinpu): $475,000
- Zhongshan (Taipei): $724,000
Overall, by spending less in rent, when compared to in Taipei, the decision to choose a larger location was concluded. A 50 ping property, in Banqiao, near Xinpu MRT Station was found.
And the lower costs allows us to provide more space.
3.3. Gym Size & Space Usage
One of the tougher choices was to decide on an acceptable size that the gym would need to be. Based on the number of expected clients, and the limit, it was concluded that the gym would need to be 45-50 ping.
Industry standards, (“5 Basic Rules”), dictates that a gym needs 10-12sq feet per member, for the workout area. That translates to about 3.3 people per ping. And assuming 100 members, that works out to 30.3ping. But there must also be adequate room for showers, changing rooms, front desk, and office. So, 45-50 ping is a safer bet. Luckily a space was found with 50ping.
On site there is no dedicated office room as all space is open and used by gym-goers except for the front desk area. And there will be male and female changing rooms.
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With a total size of 50ping, 35ping will be devoted to powerlifting stations with space in the middle for walking. A total of 20 stations can be used at one time. A typical weightlifting bar is 2.2m long, and extra space is needed to add weights. So, an average station must be at least 3m wide, and 2.2m long. Extra space is then devoted to space to place weights and a lane in the middle to do walking exercises.
The men’s and women’s changing rooms will be relatively small, only 10ping. It is enough to accommodate 5 people, in each, at a time.
The remaining 5 ping is dedicated to the front desk and entrance area. Since the rental space is very open, no excess pillars, the 5ping space will feel adequate.
3.4. Stage One Products & Services
Membership: All new businesses need customers. So, priority one will be in advertising and growing the member base. The members will be allowed to have access to all of the
equipment at the gym. They will pay a monthly fee or a 3-month fee in advance. What they get:
- Unlimited use of the facilities
- Able to join a class once a week that teaches a powerlifting movement
- The membership has two levels. Those that pay monthly will be charged $2500nt/month.
And those that pay every 3-months will be charged $2200nt/month
Short-term Membership: More expensive but for members that want to try the gym out without feeling commitment. Also, for people that may have a short time in Taiwan and want to train. Most gyms charge a high one-time fee. Take World Gym, the gym charges
$360nt/day or $3500nt/month, for non-contract members. Strength Central will be priced slightly higher, at $400nt/day; and will offer one month (no contract) at $4000nt/month.
Personal Trainers: People are motivated for different reasons, and the popularity of personal trainers helps to keep people returning to gyms. On staff there will be personal trainers that have qualifications beyond a piece of paper. They will be people that have and do train for
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powerlifting competitions. At Strength Central, we feel it is best that the teachers have a lot of personal experience. So, they can teach the novice or intermediate lifters what to do, how to eat, how to avoid injuries, and keep them abreast of new training techniques and programs.
Cost per hour will be $1000nt/hour. That is far below the prices at most gyms. (Prices are usually starting at $1500nt/hour, or $1000nt/hour if you buy 10 sessions at World Gym) Why so much lower? To get more people using trainers, and be more frequent; hence, improve retention.
Powerlifting Plans: A simple excel document and booklet can be created to guide lifters through what a typical plan entails. Details will be mostly based on a collaboration of similar products on the market but made in a simple format and sold at a low price. It’s more of a one size fits all starting point. They are sold for $200nt.
Competitions: This is where we hope to get the most buzz for our business. We want to stand out as a name people recognize. The gym can exist as a name that everyone in the exercise community knows in Taiwan without being a chain gym, like World Gym. By having competitions that are open to the public we plan on attracting new members while gaining reputation.
- Where: at our location on weekends.
- When: once a month.
- Who: for members and nonmembers. Members get priority. Age and weight groups.
- What: Each competitor will choose 3 lifts.
- Why: grow awareness of gym and allow members to challenge themselves.
By advertising and offering competitions we plan to increase the number of bodies that come in our door. The hope is that new people will get to see and experience the environment, while interacting with a small community of like-minded individuals. Friends and family can come and watch for free.
Cross fit group classes: Famous power lifting gyms around the world have created a culture that can sustain itself. As for Strength Central, we want to speed up the progress and offer cross fit classes which are extremely popular with Millennials in order to grow our members.
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By having classes specifically for cross fit, we hope to bridge the gap between those that want to work out and those that train powerlifting. By learning proper form and techniques, we believe people will grow more interested in the powerlifting community. Although these classes will be limited. The focus is not on cross fit, rather it is something provided to add value to the powerlifting environment. Classes will cost $300nt per session.
3.5. Stage Two Products & Services
Merchandising: Established gyms are able to brand and sell their products through reputation and given the fact they are known name in the fitness industry. We intend to do the same given enough time.
- Clothes: t-shirts, shorts, and towels.
These products can be embroidered with our name.
- Powerlifting equipment:
- weight belts, to protect back in heavy lifts
- straps for wrists, greater support in pushing movements - chalk, to improve grip and prevent slipping.
- bands, which can be used for warmup.
Large events: These are to be held in gymnasiums or other outside venues. By leveraging the gym name with events, we can expand and have events in a larger space. Fees to join will be the source of revenue. As well, as renting space to other fitness companies to sell their products alongside our event.
Workout plans: This kind of product is popular when the source has a highly respected reputation. Typically, these plans are said products of famous power lifters. Take for example a woman in the U.S., Stefi Cohen. She holds many records for her weight class and she sells programs that she has designed. Strength Central can sell programs created by local power lifters, including Olympians.
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3.6. Short Term Goals
- Raise awareness: Hand out flyers in the local community and at sporting events. Create street signs advertising early bird special. Discount for early adopters.
- Grow member base: Quickly and efficiently get new members into the gym. Have a free trial week.
- Increase traffic on website and interactions on social media: To evaluate and improve upon our website and social media platforms. After the business has opened doors, shortly after the consultant will analyze our outreach goals and find ways for us to increase the reach of our platforms. Engagement will be very important to keep our social media healthy.
- Local advertising: Establish relationships with businesses in the area to help advertise our gym. Mainly, to find places where we can distribute our flyers.
- Company discounts: Find local businesses that are interested and willing to have employees train at our facility at a group discounted rate.
- Member reward program: The gym is meant to be a gym that is designed by the
members and a place where member input makes changes. Too many gyms do not care or listen to members’ input. For a non-chain gym, that is shortsighted. We intend to have members create artwork and have access to the music in the gym.
- Attract and retain high quality members: Since collaborations is on the roadmap, we will find individuals that have talents in our area and offer free membership in return for helping the business grow, whether it be promotions or leading classes. Our hope is that by having highly talented lifters around it will help to lift the drive of members in our gym.
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- Hire our first employee: Managing the daily operations may consume more time than thought, so having a dedicated employee to be the meet and greet person that will function as a salesman and member is a must. This person has to show dedication to the gym culture and be someone that is a powerlifter.
- Crowdfunding events: Look into the possibility of using crowdfunding as source of income to put on events. In return donators will receive personal training on site or ability to compete in competition, like a registration fee.
For a new business the most important goal is to make a profit and get out of the red. The initial investment will build the infrastructure that will bring people/members through the door. And to carry on growth, leveraging social media and networking will help to collect quality members.
The first year of operations will be focused on getting the number of members beyond the breakeven point such that monthly expenses will be less than revenue by the end of the first year. Most of the first-year revenue will come from fees and memberships. Price tiers and programs will be setup to find ways to meet the need of the diverse members.
Additionally, classes will be created to attract the Millennial cross fit crowd and other group minded individuals.
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3.7. Long Term Goals
- Sponsor charity events: Sponsoring events will help to promote our brand, while in the short term the venture may not seem financially sound. But given the goal of long-term view, it will make sense.
- Improve financial health: In order to expand to a new location or create other locations the company must be generating a healthy stream of income that can be ongoing. The financial health will rely on finding novel ways to keep members coming back and giving us a high retention rate.
- Increase market share: Collaborating with an outside marketing team to find new ways to grow the brand and expand to a second location.
- Create employee incentive program: Finding new ways to keep employees/members motivated and willing to help the business without necessarily financial compensation.
Possibly look into investor opportunities for members.
- Schedule a break: Leading the new company, expectations are that the company will be daily life. However, at some point a trip will be in store to prevent burning out.
- Scale up the number of employees, especially personal trainers.
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