Project Title Jimmy Gym Fitness will be the McFit (Europe’s largest fitness chain) of Southeast Asia. The first true high quality low cost fitness chain in this region.
Current Status Concept / Business Plan
Amount Invested A lot of time
Funding Required RM2,000,001 to RM3,000,000
Description The Jimmy Gym’s concept is a clone of Germany’s McFit. Europe’s largest fitness chain with more than 1.7 Million members and a revenue of 450 Million USD. Jimmy Gym will be Malaysia’s first high-quality fitness studio chain that opens 24/7. Jimmy Gym Fitness will prove that an affordable Gym in Malaysia doesn’t have to look cheap with old equipment and an untidy atmosphere. The founder has a German work ethic and implements German quality standards into this concept. The main features of a typical Jimmy Gym studio will be new modern Equipment, round the clock opening hours, modern and stylish Gym atmosphere and a membership enables access to all Jimmy Gym Fitness studios. This all for an unbeatable monthly membership fee of only 50 RM. Everything is transparent and everyone will have the opportunity to get a free trial without any obligations. The quality will speak for itself. Jimmy Gym wants to give every Southeastasian the opportunity to workout and live a healthier and better-looking life.
Business Opportunity If you want to workout in a fitness studio in Malaysia and Southeast Asia you have the choice between an expensive fancy fitness studio with high-quality equipment and other amenities that are not necessary for workouts like a pool or a sauna or you can go to a cheap and small Gym where the equipment is often rundown in a smelly atmosphere. Fitness chains like McFit in Europe or Planet Fitness in the USA and many other chains in these parts of the world have shown that stylish and well maintained large fitness studios don’t have to be expensive. There is nothing like those chains in Malaysia. Jimmy Gym Fitness will change this. The Asian fitness market is very small in comparison to its western counterparts. But with rising development membership in sport and fitness clubs rise as well in direct correlation with the development status of a country. Therefore the Malaysian and ASEAN markets offer great potential for fitness chains, especially in the low-cost sector. Jimmy Gym Fitness will offer the best value for money ratio and will be a through and through a positive product.
Revenue / Business Model There are two main revenue streams. The first stream will be the memberships income. There will be a transparent membership model which consist of two pillars. A 12 Months membership will cost 50 RM/month and a 6 months membership will cost 65 RM/month. The second stream will come from the vending machines in the studios that sell refreshment drinks and workout supplements.
It is clear that the lower the membership fee the more members are needed to turn a profit. Experiences from the western chains have shown that many people are willing to pay for the opportunity to visit a fitness studio without actually going there. Because of the low membership fees and the fact that it is widely recognised that a membership in a fitness club is a positive thing people always want to have the chance to go to workout. On average McFit in Europe has more than 7000 members per studio with a membership fee of 20 €/month. Jimmy Gym calculates with around 1500-1700 members per studio to break-even.
Management Team One Man Show.
The founder (German/Malaysian) has a master’s degree in Asian studies, a German Fitness Trainer B-Licence and a German Project Manager certificate.
Company Background The founder (a long-term member of McFit) noticed on a family vacation in Johor Bahru a few years ago that there is no similar fitness chain like McFit in Malaysia he also noticed that many studios in Malaysia are managed poorly and that there is a lot of room for improvements. Since then the idea for Jimmy Gym Fitness was born to lift the Malaysian and Southeastasian fitness market to a new level. Unfortunately, a fitness studio of this scope is not funded with a few Dollars and the founder has no rich relatives who could fund this concept. All he has is his brain, German work ethic and knowledge about fitness to realise this project. With the right partner, this can grow to a billion Ringgit company.
Funding Milestone Seed Investment (500k -800k USD) is needed depending on the location and the equipment to build the first studio and to proof the concept.
Series A (500k-800k USD) will fund the second studio.
Series B (1 Million – 1.6 Million USD) will fund studio 3 and 4.
Further expansion will be financed with loans and cash flow.
Because it is impossible to patent a concept like this, fast expansion is needed to establish Jimmy Gym Fitness as the original and the gold standard of low-cost fitness studios in Southeast Asia. 200 to 300 Studios in the Southeast Asia and the Asia-Pacific region in 20 years is the long-term goal for Jimmy Gym Fitness.
% Equity Allocation 15%
Risks and Mitigation The Key to success is to reach the magic membership number to break even. Because a single customer in a fitness studio produces very little costs every membership sold on top of the breakeven number is almost pure profit. A fitness studio is a product that the ordinary person knows and understands. Marketing is therefore the key to let the people know that an affordable Gym is finally available to everyone. To fight off competitors who will occur once Jimmy Gym proved that this concept is profitable Jimmy Gym Fitness will always maintain high German quality standards with its equipment, staff and service. Offering high quality at an affordable price will always be a good selling point and reduces therefore the risk of a business failing.
Exit Strategies The founder is open to all kinds of proposals from investors for their exit strategy. These have to be discussed further.
Company Name Jimmy Gym Fitness
Business Address No. 20, Jln. Padi Malinja 4, Bandar Baru Uda, 81200 Johor Bahru, Malaysia
Contact Person Sebastian Shamsudin Kirsch
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