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The paper discusses the type of leasing plans available for the lease of the gym equipment for a new women's gym, LadyZone, and explains how the gym will utilize a marketing plan to attract the target market. The paper relates that the value chain for this business will be in the services and environment offered and identifies the key skills the management will foster in the staff. The paper also focuses on the role of services in the value chain, the issues surrounding employee motivation and the makeup of the entrepreneurial team. The paper discusses the four major components of the business model and concludes by explaining how this business plans to attract and retain customers at a high enough rate to meet its fixed cost obligations.
From the Paper:"The type of leasing plan is of utmost importance. There are many aspects to consider when negotiating the lease. One is the cost of exiting the lease early. Another is the way in which the lease will affect the tax position of the partnership. The types of lease available are the Fair Market Value lease (FMV), which offers the lowest monthly payment and can be written off 100% as an expense. Another is the one-dollar buyout lease, which can be utilized if the club plans to purchase the equipment at the end of the lease. There is also the 10% purchase option, which has a lower monthly payment than the $1 buyout but a more expensive purchase at the end of the lease. A 10% security deposit plan is a variation on this theme, yielding low monthly payments but a more expensive purchase. It is important also to build in exit terms in case the business needs to be unwound. Otherwise, the partners will be personally liable for the lease payments (Club Management, 2006)."
Sample of Sources Used:
- No author. (2006). Fitness Equipment Leasing: Sorting out the Details. Club Management. Retrieved March 20, 2009 from http://www.allbusiness.com/arts-entertainment-recreation/3932053-1.html
- Van Wagner, Kendra. (2009). Hierarchy of Needs. About.com. Retrieved March 20, 2009 from http://psychology.about.com/od/theoriesofpersonality/a/hierarchyneeds.htm
Cite this Business Plan:
Operations Plan for LadyZone Gym (2011, January 09) Retrieved May 23, 2022, from https://www.academon.com/business-plan/operations-plan-for-ladyzone-gym-146641/
"Operations Plan for LadyZone Gym" 09 January 2011. Web. 23 May. 2022. <https://www.academon.com/business-plan/operations-plan-for-ladyzone-gym-146641/>