Chapter 2: The Business Plan: Road Map to Success

I believe it is safe to assume that almost every entrepreneur has had to develop a business plan before starting his/her new venture. A business plan is a document or "book" that includes the elements that will support the success of your venture. It is a broad over-look of all of the key components of a business and they include: Marketing strategy and plan, management and operations plan, financial analysis and projections, and the ever-important funding request and exit strategy.

For this chapter, I thought it would be appropriate to talk to a good friend of mine. His name is Steven Heard and he is the owner of Anytime Fitness in Germantown. Steven (who I will call Steve because "Steven" is weird to me being as that's what he really goes by) is an alumni of the University of Memphis and he holds a degree in marketing. I asked Steve a few questions pertaining to this chapter and his own experiences in formulating a business plan. Assuming that most new entrepreneurs have never developed a business plan before, I asked Steve about how he went about creating his own. I did not know rather or not Anytime corporate provided a template, or if they let the franchisee do it on their own. His answer follows:

"Anytime you are asking for money you better have one.  The franchise has a template for us to use that includes things like national market data that are applicable across the board.  I was responsible to get all of my individual numbers.  AF has connections with several financial institutions that it has worked with in the past that are familiar with our business model and our success.  AF also has a financial aid dept. that basically helps make sure we have everything in order then they help broker the deal with a lending institution."

Steve is in a very good location. He is in a brand new, high-end shopping center smack-dab in the center of Germantown. For a business like his, location is very important and is something that would be a key detail to include in a business plan. So I asked Steve why he chose the location he is in and if he would have done anything differently. Steve responded:

"Location, location, location.  Germantown is the wealthiest city in East TN.  We chose this shopping center because it was new and thought that would help create excitement.  If I could do it again I would want my gym right on Poplar as opposed to being in the corner."

Finally, I was wondering what a franchise like Anytime Fitness would use as a marketing plan. According to Steve, he only runs promos when he knows it is gym "season." His busiest months are in January, March (for bikini season), and October (when people get in shape for the holidays).  Also, he markets by using print direct mail. He has had the best results from that, even though it is the most expensive.