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Project of Entrepreneurship
Submitted to:
Mam Qurat-ul-Ain
Submitted by:
Syed Arslan Haider 07010920-059
Shahzad Rasheed 07010920-066
Sara Ayyaz 07010920-027
Amna Naeem 07010920-038
Faisal Akbar 07010920-062
Shafqat Manzoor 07011220-011
1
Adnan Tariq 07010920-048
Ashiyana Yoga Centre
Business Plan
OWNERS: Shahzad, Arslan, Sara, Amna.
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Business Name: Ashiyana Yoga Centre
Address: Shadman Colony
City: Gujrat,
Zip code: 50700
Telephone: +923328388127
E-Mail: [email protected]
Nature of the Business: Service and products
Preparation date of plan: 20-01-2010
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I. Table of Contents
I. Table of Contents 4
II. Executive Summary 5
III. General Company Description 6
IV. Products and Services 10
V. Marketing Plan 12
VI. Financial Plan 19
VII. Appendices 25
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II. Executive Summary
Hatha Yoga is an ancient discipline that explores, develops, and integrates the body, mind, and
spirit. Yoga systematically stretches and strengthens muscles throughout the body, increases
circulation to internal organs and glands, quiets the nervous system, and improves concentration.
This ancient system of self-care brings vitality, health, deep relaxation, and peace of mind.
The style of Hatha Yoga taught is the Anusara method. Anusara Yoga is a new style of yoga that
is heart-oriented, spiritually inspiring, yet grounded in a deep knowledge of optimal body
alignment in the poses. Instructors encourage students to listen to their body, respect its wisdom,
and to progress at their own pace.
Deep relaxation is taught in each class after completion of the postures. The Ashiyana Yoga
Center offers 8 eight-week sessions of classes per year. Courses offered include Anusara-style
Hatha Yoga plus workshops in related topics. The Yoga Center features well-trained,
professional instructors, progressive teaching methods, a non-competitive and encouraging
atmosphere, and a beautiful light-filled facility.
The Ashyana Yoga Center also has a boutique that will sell workshop clothing and yoga training
aides.
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III. General Company Description
Mission Statement:
The mission of Ashiyana Yoga Center is to give the opportunity to practice Anusara. It is our intention to keep the teaching of Anusara as close to the way we have been taught as possible. It is incumbent for the teacher to always act responsibly and with the student's interest in mind. No matter what we learn or from whom we learn the real and only teacher is within.
The focused activity of Anusara is said to:
Lubricate the joints, muscles, tendons and ligaments Improve circulation and the activity of the nervous system
Increase flexibility
Release tension
Company Goals and Objectives:
The objectives of Ashiyana Yoga Center are the following:
To increase welfare of society To improve the life style of society Acquire 1500 customers by the end of the first year of operation. Achieve sales in excess of Rs.60, 000 from the boutique. Increase customer base by 25% by the end of the second year of operation. Increase sales by 15% by the end of the second year of operation.
Business Philosophy:
The most important thing in our business is to improve the welfare of society.
Company Summary:
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The Ashiyana Yoga Center offers Anusara-style Hatha Yoga plus workshops in related yoga topics. The Yoga Center features well-trained, professional instructors, progressive teaching methods, a non-competitive and encouraging atmosphere, and a beautiful light-filled facility.
The Ashiyana Yoga Center will be located in the commercial downtown section of Gujrat.
Besides the training, the Ashiyana Yoga Center also has a boutique that will sell workshop clothing and yoga training aides.
The Ashiyana Yoga Center will operate as partnership.
Our target market:
The Ashiyana Way Yoga Center will focus on two customer groups:
a. Middle Income Urban Professionals
b. Upper Income
Start-up summary:
The start-up expenses for the Ashiyana Yoga Center are focused primarily on workshop setup
and equipment, and inventory for the boutique. We will invest 6, 00,000. In addition, we will
secure an 8, 00,000 long-term loan.
Start-up
Requirements
Start-up ExpensesLegal 1,0000Stationery etc. 1000Brochures 8,0000Insurance 1,0000Rent 3,0000Expensed Equipment 20,0000Total Start-up Expenses 33,1000
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Start-up AssetsCash Required 66,9000Start-up Inventory 10,0000Other Current Assets 0 Long-term Assets 30,0000Total Assets 106,9000
Total Requirements 140,0000
Start-up Funding
Start-up Expenses to Fund 33,1000Start-up Assets to Fund 106,9000 Total Funding Required 140,0000
Assets Non-cash Assets from Start-up 40,0000Cash Requirements from Start-up 66,9000Additional Cash Raised 0 Cash Balance on Starting Date 66,9000Total Assets 106,9000
Liabilities and Capital
LiabilitiesCurrent Borrowing 0 Long-term Liabilities 80,0000Accounts Payable (Outstanding Bills) 0 Other Current Liabilities (interest-free) 0 Total Liabilities 80,0000
Capital
Planned InvestmentJill Gordon 60,0000
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Other 0 Additional Investment Requirement 0 Total Planned Investment 60,0000
Loss at Start-up (Start-up Expenses) (33,1000)Total Capital 26,9000
Total Capital and Liabilities 106,9000
Total Funding 140,0000
Company locations and summary:
The Ashiyana Yoga Center is located in downtown Gujrat. The facility is quickly accessible to
the urban professionals that Ashiyana Yoga Center considers potential members.
With five workshop rooms, men and women's dressing rooms, and a boutique, it offers plenty of
floor space for multiple classes being conducted simultaneously. In addition, parking is not a
problem.
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IV. Products and Services
The Ashiyana Yoga Center's services and products are as follows:
Yoga 1/Beginner is an introductory class for students who are new to Yoga. This class
focuses on poses to stretch and strengthen the legs, back, and shoulders. Emphasis is
given to the basic alignment of the standing poses.
Fundamentals of Vinyasa Yoga will prepare students for a vigorous flow style of yoga
(Vinyasa) that synchronizes breath with movement. It will offer a balance of strength,
flexibility, and endurance to challenge the fitness enthusiast. The course will begin with
instruction on the alignment of the poses and move toward linking all the poses together
in a continuous flow by the end of the session.
Gentle Yoga is designed for those who prefer a class less vigorous than Yoga 1. It
includes gentle stretches and breathing as well as simple movements designed to
systematically increase the range of motion of every major joint and increase energy.
This class is ideal for students with chronic symptoms such as muscle/joint pain,
stiffness, weakness, or fatigue.
Yoga 1-2/Continuing Beginner is a continuation class for Yoga 1. The emphasis of this
course is on refining and building endurance in Yoga 1 and Yoga 2 standing poses. It
does not include the shoulder stand. The basic Anusara Yoga principles of alignment are
presented. This class is suitable for students who have practiced other styles of yoga, but
it is not suitable for those who have never studied yoga before.
Yoga 2/Intermediate focuses on refining the standing poses and learning basic sitting
postures, simple back bending poses, and the shoulder stand using the Anusara Yoga
principles of alignment. It is recommended that students complete both Yoga 1 and Yoga
1-2 before taking Yoga 2.
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Yoga 3/Advanced continues with refinements to poses studied in Yoga 2 and introduces
full arm balance (handstand), headstand, and forearm balance. Additional back bend
poses are also included. Regular yoga practice outside of class is strongly encouraged.
Permission of the instructor is required.
Products
Workshop Clothing: Shirts, shorts, athletic bras and pants.
Workshop Equipment: Balancing balls, belts, weights, and mats.
Yoga training aides: Video tapes, instructional manuals, inspirational books.
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V. Marketing Plan
Market Analysis Summary:
Shadman has emerged as it position as the heart of the city. We believe that a yoga center can be
very attractive to our customers if we create a program that fits the time constraints of their jobs
home free time or exercise timing. Our location is within easy walking distance from most office
buildings downtown. We plan to offer our members a program that will allow them to use their
suitable morning/lunch hours/at evening, to attend workshop.
Timing: 06:00 to 07:30 am
10:00 to 11:30am
05:00 to 6:30pm
Ashiyana will be a positive draw for those who have some experience with yoga instruction. The
key to the success of Ashiyana yoga center will be attracting new people to yoga by creating
awareness of people of their health.
Market Segmentation:The Ashiyana Yoga Center will focus on two customer groups:
Middle Income Urban Professionals: This group is the core segment of potential
students of Ashiyana Yoga center. Their demographic characteristics are the following:
Ages: 26-40.
Sex: 30% male, 70% female.
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Family Income: 30,000-50,000.
Health/Lifestyle Issues: Active individuals that is focused on healthy food and dieting.
Over 70% of this group is members of gyms.
Social Pattern: Will more likely attend as part of group.
Center's selling point: Close to work. The session lowers stress. Can be attended with
workmates as group activity.
Upper Income: The upper income customer is a secondary target group. Their demographic
characteristics are the following:
Ages: 40-60.
Sex: 30% male, 70% female.
Family Income: 60,000+.
Health/Lifestyle Issues: Active individuals those are focused on healthy food and
dieting. Over 90% of these groups are members of gyms.
Social Pattern: Will more likely attend alone.
Center's selling point: Close to work. The session lowers stress.
Target Market Segment Strategy:
Everything ASHIYANA YOGA CENTER does must be adapted to work within the time
constraints of the target customer. Yoga classes can be no longer than 90 minutes and must
be scheduled to fit the free timing, break and rolling lunch schedules that exist in the
downtown businesses. The focus of the instruction will also have to be adapted to a client
that will be seeking maximum relief from the pressure of work and then returning to the
workplace or home. If ASHIYANA YOGA CENTER can create a noticeable difference in
the customers' sense of well-being, then the customer will come to depend on instruction as a
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escape during the day. These kinds of experiences will create a tremendous word of mouth
and bring in more first time students.
Service Business Analysis:
Typically, yoga centers are located away from the city's commercial/business
center. ASHIYANA YOGA CENTER are less focus on serving a large number of beginners
and is more focused on obtaining long term students. Students are attracted to a specific type
of yoga and the reputation and skills of ASHIYANA YOGA Center’s leader.
Competition and Buying Patterns:
Yoga is a growing trend. It was popular in the seventies and has come back full force into
vogue in the 21st century. Movie stars such as Shilpa Shethi, Madonna, Meg Ryan, Julia
Roberts and Sting are advocates of the discipline.
As there is no real competitor of Ashiyana yoga center but gyms are some extend. It will be a
price leader of the market as there is monopoly of yoga in Gujrat.
The key to competition within the yoga business is the quality of the instructor. There are a
number of instructors around Pakistan who are well respected, and Ashiyana Yoga center
will strive to attract these teachers to its facility. The location, quality and absence of
competitor of the facility are the real advantage for Ashiyana Yoga center. Because it has the
best most attractive facility in country teachers will want to teach here. Ashiyana Yoga
Center will focus of presenting ASHIYANA YOGA CENTER as the perfect place to learn
yoga skills that will improve the student physically and reduce the daily stress of the work
world.
This will provide the comfort environment for relaxation and help out them to get rid from
stress.
Marketing Strategy and Implementation Summary:
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This Yoga Center will market through the numerous downtown fitness clubs, beauty salons
and boutiques by displaying posters. The Ashyana Yoga Center will offer the free entry for
beginners. In addition, we will give add on fm 105,106.6, Jazba newspaper. Also we will use
billboards for advertisement.
Competitive Edge:
The competitive advantage of Ashiyana Yoga Center is popularity of yoga, location and the
quality.
Sales Forecast:
The sales forecast outlines sales of instruction time as well as sales of products through the
boutique located in the facility. Instructions are sold in the following three ways:
1. Private lessons;
2. Eight week courses;
3. Drop-in sessions.
The boutique will sell clothing, books, posters, books, DVDs and videos, mats, and other
props for yoga. In addition it will sell healthy pre-bottled drinks and healthy energy food in
future. If this facility becomes more of a destination, we will perform research for adding a
cafe.
Our Yoga Center anticipates that sales will be slow for the first and second month of
operation. After that point, sales will increase as membership grows.
The following is the sales forecast for three years.
Sales ForecastYear 1 Year 2 Year 3
SalesYoga Instruction 152,0000 190,0000 240,0000
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Boutique Sales 64,0000 85,0000 106,0000Other 0 0 0Total Sales 216,0000 275,0000 346,0000
Direct Cost of Sales Year 1 Year 2 Year 3Yoga Instruction 0 0 0Boutique Sales 20,1500 26,0000 32,0000Other 0 0 0Subtotal Direct Cost of Sales 20,1500 26,0000 32,0000
Our business plan includes complete provisions for plan-vs.-actual analysis, and we will be
holding follow-up meetings every month to discuss the variance and course corrections.
Marketing Mix
Combination of product, price, place and promotion and other activities needed to meet
market objectives.
Product:
Best quality services with best quality yoga related products.
Brand name: “Ashiyana”
Prices:
Comparatively will be high than other fitness gyms.
Discounts: Ashiyana yoga center will initiate a program that will give 25% session discount
to members who successfully recruit new members to Ashiyana yoga center.
Place:
The heart of city “Shadman”. Near to the professionals and everyone easily access the yoga
center.
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Promotion:
We mainly concentrate on advertisement and other promotional activities for creating the
health awareness, as it is the basic tool of our business growth.
Mass Media: fm 105, fm106.6, Jazba newspaper, cable.
Displays: Billboards, posters.
Words of Mouth: We will offer the free entry for beginners also there are refreshing bottles
for visitors.
SWOT Analysis
Strengths: There is no real competitor, our teachers are highly qualified, we work for
welfare of society.
Weakness: new venture, risk involved, low awareness of people.
Opportunities: we have high growth chances because there are no real competitors
of our business.
Threats: In our society the people are narrow minded, so first we have to create
awareness between the people,we have a threat about the new entrant in the yoga
market.
Personnel Plan
Shahzad, Amna, Sara, Arslan (doing BBA hons.) the founders of The Ashiyana Yoga
Center, are those who wanted to work for welfare of society. They want to conduct
workshops and teacher trainings nationally and internationally.
In addition they get the productive set of instructions from honorable teachers like Ma’m
Qurat-Ul-Ain.
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ASHIYANA YOGA CENTER started with 6 employee and 20 students. Within three years,
ASHIYANA YOGA CENTER had a staff of 25 and over 1,000 students.
The Ashiyana Yoga Center's personnel will be the following:
Arslan, director;
Amna, Receptionist
Shahzad, Marketing Manager
Teachers (2);
Sara, Boutique Manager
Personnel PlanYear 1 Year 2 Year 3
director 15,000 16,000 17,000 Teachers (2) 54,000 65,000 75,000 Boutique manager 13,000 13,500 15,500Marketing Manager 14,000 15,000 16,000Receptionist 13,000 13,500 15,500Total Payroll 109,200 123,000 139,000
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VI. Financial Plan
Break-even Analysis:
Break-even Analysis
Monthly Revenue Break-even 14,4920
Assumptions:Average Percent Variable Cost 9% Estimated Monthly Fixed Cost 13,1400
Projected Profit and Loss:
Pro Forma Profit and LossYear 1 Year 2 Year 3
Sales 216,0000 275,0000 346,0000 Direct Cost of Sales 20,1500 26,0000 32,0000 Other Production Expenses 0 0 0 Total Cost of Sales 20,1500 26,0000 32,0000
Gross Margin 195,8500 249,0000 314,0000 Gross Margin % 90.67% 90.55% 90.75%
ExpensesPayroll 109,2000 123,0000 139,0000 Sales and Marketing and Other Expenses
24,0000 26,0000 28,0000
Depreciation 2,4000 2,4000 2,4000 Utilities 3,3000 3,3000 3,3000 Insurance 2,4000 2,4000 2,4000
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Payroll Taxes 16,3800 18,4500 20,8500 Other 0 0 0
Total Operating Expenses 157,6800 175,5500 195,9500
Profit Before Interest and Taxes 38,1700 73,4500 118,0500 EBITDA 40,5700 75,8500 120,4500 Interest Expense 7,7210 7,2260 6,7100 Taxes Incurred 9,1350 19,8670 33,4020
Net Profit 21,3150 46,3570 77,9380 Net Profit/Sales 9.87% 16.86% 22.53%
Projected Cash Flow:
Pro Forma Cash FlowYear 1 Year 2 Year 3
Cash Received
Cash from OperationsCash Sales 216,0000 275,0000 346,0000 Subtotal Cash from Operations 216,0000 275,0000 346,0000
Additional Cash ReceivedSales Tax, VAT, HST/GST Received 0 0 0 New Current Borrowing 0 0 0 New Other Liabilities (interest-free) 0 0 0 New Long-term Liabilities 0 0 0 Sales of Other Current Assets 0 0 0 Sales of Long-term Assets 0 0 0 New Investment Received 0 0 0 Subtotal Cash Received 216,0000 275,0000 346,0000
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations20
Cash Spending 109,2000 123,0000 139,0000 Bill Payments 65,4900 105,8360 125,5540 Subtotal Spent on Operations 174,6900 228,8360 264,5540
Additional Cash SpentSales Tax, VAT, HST/GST Paid Out 0 0 0 Principal Repayment of Current Borrowing
0 0 0
Other Liabilities Principal Repayment 0 0 0 Long-term Liabilities Principal Repayment
5,1600 5,1600 5,1600
Purchase Other Current Assets 0 0 0 Purchase Long-term Assets 0 0 0 Dividends 0 0 0 Subtotal Cash Spent 179,8500 233,9960 269,7140
Net Cash Flow 36,1500 41,0040 76,2860 Cash Balance 103,0500 144,0540 220,3400
Projected Balance Sheet:
Pro Forma Balance SheetYear 1 Year 2 Year 3
Assets
Current AssetsCash 103,0500 144,0540 220,3400 Inventory 2,7500 3,5480 4,3670 Other Current Assets 0 0 0 Total Current Assets 105,8000 147,6030 224,7070
Long-term AssetsLong-term Assets 30,0000 30,0000 30,0000 Accumulated Depreciation 2,4000 4,8000 7,2000 Total Long-term Assets 27,6000 25,2000 22,8000 Total Assets 133,4000 172,8030 247,5070
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Liabilities and Capital Year 1 Year 2 Year 3
Current LiabilitiesAccounts Payable 10,3450 8,5510 10,4780 Current Borrowing 0 0 0 Other Current Liabilities 0 0 0 Subtotal Current Liabilities 10,3450 8,5510 10,4780
Long-term Liabilities 74,8400 69,6800 64,5200 Total Liabilities 85,1850 78,2310 74,9980
Paid-in Capital 60,0000 60,0000 60,0000 Retained Earnings (33,1000) (11,7850) 34,5710 Earnings 21,3150 46,3570 77,9380 Total Capital 48,2150 94,5710 172,5090 Total Liabilities and Capital 133,4000 172,8030 247,5070
Net Worth 48,2150 94,5710 172,5090
Business Ratios:
Business ratios for the years of this plan are shown below. Industry profile ratios based on the
Standard Industrial Classification (SIC) code 7997, Membership Sport and Recreation Club, are
shown for comparison.
Ratio Analysis
Year 1 Year 2 Year 3Industry
ProfileSales Growth 0.00% 27.31% 25.82% 15.20%
Percent of Total AssetsInventory 2.06% 2.05% 1.76% 4.00% Other Current Assets 0.00% 0.00% 0.00% 31.80% Total Current Assets 79.31% 85.42% 90.79% 40.90%
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Long-term Assets 20.69% 14.58% 9.21% 59.10% Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 7.76% 4.95% 4.23% 31.60% Long-term Liabilities 56.10% 40.32% 26.07% 28.00% Total Liabilities 63.86% 45.27% 30.30% 59.60% Net Worth 36.14% 54.73% 69.70% 40.40%
Percent of SalesSales 100.00% 100.00% 100.00% 100.00% Gross Margin 90.67% 90.55% 90.75% 0.00% Selling, General & Administrative Expenses
80.80% 73.69% 68.23% 72.30%
Advertising Expenses 2.78% 2.91% 2.89% 2.70% Profit Before Interest and Taxes 17.67% 26.71% 34.12% 2.60%
Main RatiosCurrent 10.23 17.26 21.45 1.23 Quick 9.96 16.85 21.03 0.83 Total Debt to Total Assets 63.86% 45.27% 30.30% 59.60% Pre-tax Return on Net Worth 63.15% 70.03% 64.54% 2.80% Pre-tax Return on Assets 22.83% 38.32% 44.98% 6.90%
Additional Ratios Year 1 Year 2 Year 3Net Profit Margin 9.87% 16.86% 22.53% n.aReturn on Equity 44.21% 49.02% 45.18% n.a
Activity RatiosInventory Turnover 3.95 8.26 8.09 n.aAccounts Payable Turnover 7.33 12.17 12.17 n.aPayment Days 27 33 27 n.aTotal Asset Turnover 1.62 1.59 1.40 n.a
Debt RatiosDebt to Net Worth 1.77 0.83 0.43 n.aCurrent Liab. to Liab. 0.12 0.11 0.14 n.a
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Liquidity RatiosNet Working Capital 95,4550 139,0510 214,2290 n.aInterest Coverage 4.94 10.16 17.59 n.a
Additional RatiosAssets to Sales 0.62 0.63 0.72 n.aCurrent Debt/Total Assets 8% 5% 4% n.aAcid Test 9.96 16.85 21.03 n.aSales/Net Worth 4.48 2.91 2.01 n.aDividend Payout 0.00 0.00 0.00 n.a
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VII. Appendices
Map of Ashiyana yoga centre
Market research questionnaire
Pamphlets
Products and their prices
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Maps
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3d Map
Market research questionnaire
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Ashiyana Yoga Centre
Male Female
Rural Urban
Middle income Higher income
Age___________________________
Family income___________________
Profession ______________________
1. Do you feel a need for a yoga centre in Gujrat?
a) Yes b) No
2. Do you prefer yoga centre on gym for exercise?a) Yes b) No
3. Are you health conscious?a) Yes b) No
4. What do you prefer after exercise?a) Water b) fresh juice
5. Do you feel that for mental relaxation yoga is a most suitable exercise?a) Agree b) Neutral c) Disagree
6. Do you think 1500 fee is reasonable fee for per month classes?
a) Yes b) No
7. What is the time period of yoga class?
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a) Half hour b) 45 min c)
1 hour
8. What timings are suitable according to your opinion?
a) 6am—7am b) 7am—8am
c) 10am—11am d)1pm—2pm
e)4pm—5pm f)6pm—7pm
9. What should be the time period of yoga session?
a) 3 months b) 6 month c) continue
throughout the year
10. What location is most suitable for opening a yoga centre?
a) Shadman b) Margazar c) Shadola
d) GT road
11. Is the yoga is good exercise for a pregnant women?
a) Yes b) No
12. Do you think yoga can help in curing muscle pain and fatigue?
a) Yes b) No
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Pamphlets
Ashiyana Yoga Centre
A yoga centre is now opening in your own city Gujrat in Shadman
Colony.
This yoga centre consists of 2 well lightened and well ventilated
halls for yoga classes. The environment is soothing and
refreshing. In Ashiyana yoga centre we practice the HATHA yoga
in Anusara style. Which provide body fitness and mental
relaxation and in addition it is also a cure for muscle pain.
This yoga centre also provides products which help in practicing
yoga and fresh juices are also available there.
The fee is reasonable 1500 rupees/ Per month.
Admissions are open. First 100 admissions are without admission fees. So join us immediately. For more details please contact us on number +923328388127.
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Products and pricesYoga DVD videos Yoga straps Yoga bricks
Price Rs: 1000 Price Rs: 500 Price Rs:
500
Yoga Books Exercise bench Water bottle
Price Rs: 1000 Price Rs: 2000 Price Rs: 200
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Bella bags High performance mat Urban mat
Price Rs: 2000 Price Rs: 2000 Price Rs: 1500
Premium Mats Premium Blankets Foot wears
Price Rs: 1000/each Price Rs: 600/each Price Rs: 300/pair
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Balancing balls Yoga music & Audio Yoga blasters &
cushions
Price Rs: 300 Price Rs: 800 Price Rs: 1000
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