A former European Champion in Mixed Martial Arts was planning to open a martial arts school near Düsseldorf. We helped him develop his business model.
First, we conducted a very thorough analysis of the competitive environment; this showed that there was good demand potential at the intended location with moderate competition intensity.
We then analysed the profit parameters and found out that – in order to run a martial arts school economically successfully – about 350 to 400 members are needed who pay monthly fees of 40 EUR on average.
It takes about two years to build up this number of members. The goal is to have 500+ members after three years and to be profitable from the third year on.
In this case, an investment of 200,000 EUR in equipment was necessary at the beginning. And about 100,000 EUR were needed to compensate for the start-up losses in the first 24 months. In total, the entrepreneur needed EUR 300,000 for his project (not including reserves).
Our business plan helped to present the project coherently to the financing bank and to present the opportunities and risks appropriately.