Running Of The "Century Lotus" Gymnasium Business Plan

This essay is the business plan for the running and financing project of FS City's Century Lotus gymnasium. This essay synthetically applied the theory of strategy management, marketing management and finance management etc. to conduct a detailed analysis and followed with the relevant plan, basing on the factors of organizational structure,business environment, marketing project planning, finance budget and investment return etc. It aims to acquire the investment capital CNY 5 million from the bank, at the meantime, to establish a stronger management system to support the marketing project and promote the customer service. It also serves as a guide for the future running of the plan and verifies the practicality of the proposal.This is the very timing for promoting this project as the sports industry is rapidly growing in China. Under this general circumstance, the project has a large potential and is extremely attractive to the investors. While in the sports service industry, the unique resources and conditions of the gymnasiums help itself to establish the competing advantages. In the project plan, it explains how to win the consumers'appreciation since the management personnel improve the organizational structure and functions of the departments, create an incentive system, and adopt the effective marketing strategies to promote the project by the means of providing the high-quality performance services with competitive price while keeping the existing operation network.The gross investment amount of this project is CNY 9.6 million. It totals its initial investment, 5 million of which is bank loans and the rest 4.6 million is self-financing of the corporation. The project heads a remaining debt of CNY 688.09 million, and the government is planned to provide a financial assistance of CNY six hundred and sixty five million (665 million).According to CAPM ( Capital Asset Price Model), the discount rate is confirmed to be 5.09% and the dynamic recycle period is 9.04 years, the Net Present Value is CNY thirty million forty thousand and nine hundred, the IRR (Internal Rate of Return) is 19%. The risk capital can be selected the way of stock transferring or withdrawing. Applying some effective methods can prevent or lessen the affects of the risks though the project is risky.