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Rock Climbing Gym Business Plan

Igneous Rock Gym

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About this business plan

Igneous Rock Gym will take advantage of a growing interest in rock climbing by opening the first climbing gym in the area. The owners, including an experienced climbing instructor, will fund the start-up costs for the business. By focusing on children, Igneous Rock Gym will create a family-friendly atmosphere and a multi-generational customer base.

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Executive Summary

In recent years, rock climbing has gone from extreme to mainstream. Every year, more and more people are trying this fun, adventurous sport. Igneous Rock Gym plans to take advantage of this rapid growth by being the first and only climbing gym in Igneous.

According to census.gov, the greater Igneous metropolitan area has a population in excess of 350,000 people. People in nearly all demographics can and do climb; therefore, it is realistic to use this figure as a starting point for the potential climbing customer market. The key to Igneous Rock Gym's success will be to make indoor climbing appealing to the largest cross section of population. This will be achieved through the following means:

Creating an ultra-safe environment with properly trained staff.
Making the gym group friendly.
Providing the new climber with instruction and encouragement.
Ensuring that the 'fun factor' is high in order to generate strong word of mouth marketing.

More and more Americans are looking to pay for experiences rather than just products. Igneous Rock Gym will focus on providing each customer with an experience that will make them want to come back for more.

Igneous Rock Gym will be a Limited Liability Company, with start-up funding provided in its entirety by the owners, Micah Quartz and Cole Granite. Quartz and Granite bring unique skills to the company with expertise in building design and construction, and over ten years in the climbing gym industry.

Climbing gyms have high start-up costs; however, once built, they enjoy extremely low cost of sales. These high margins will allow Igneous Rock Gym to generate strong profits during its first 12 months of operation. Sales for the first year will be just over $250,000, with a very solid net profit to sales ratio. During the next two fiscal years, profits are projected to increase. A modest yearly growth in sales is used for these projections. If the fitness gym industry's growth rate of 10% were used, the profits would be even higher.

1.1 Objectives

Igneous Rock Gym plans on achieving three objectives:

Sales in the first 12 months of over $250,000.
Sales growth of at least 8% in the second and third years of operation.
Become the primary center for indoor climbing in the greater Igneous metropolitan area.

1.2 Mission

Igneous Rock Gym's mission is to provide patrons of all ages a fun, safe environment in which to exercise, socialize, and gain new climbing skills. By focusing on these fundamental qualities, the friendly and knowledgeable staff will create an environment that is welcoming to wanting to try climbing for the first time as well as the experienced climber.

1.3 Keys to Success

The success of any climbing gym depends on four key factors:

A happy, friendly staff who create an inclusive environment.
Skilled route setters that take pride in their creations.
Positive word of mouth.
Ability to draw in groups.

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