There is a growing interest among Nigerian middle class folks in living healthy. They realize the need to eat healthy diets, live in habitable surroundings and participate in exercise all in a bid to be healthy and live longer. While the average life expectancy of Nigeria is 48 years for men and 52 for women respectively among the middle class who make up over 23% - nearly 42 million strong - of the population these figures are much higher.
The middle class is more educated, earns more and are exposed to greater lifestyle opportunities than the low income earners hence why setting up a wellness and fitness club to cater to their need to live healthy is a workable idea once you can locate an ideal venue, have a good marketing plan in place and reliable health services to go with.
This business works well with a subscription model in which people sign up for the service and have access to various services provided they continue paying their subscription fees. Ideally it should be run from a recreational center in a well populated middle class neighbourhood but sometimes they are run from sport centers/stadium or even from local community centers.
The other way to make money from this business is to sell packaged products and services. If you’re charging fees we are looking at the subscription model on the other hand you can sell weight loss programs, self-defense courses or products like exercise gear and sports ware to name a few.
Opportunities for wellness and fitness club in Nigeria
- Diabetes and other expensive lifestyle diseases are responsible for increase in people registering for exercise and weight loss programs
- Health benefits are well known to this target market
- Rapidly changing middle class influenced by western lifestyles
- The ideal target market locations; Lagos, Abuja and Port Harcourt have sizeable middle class populations
- The few health focused centers are not properly managed and have poor marketing plans
What are the Challenges of running a wellness and fitness club in Nigeria?
- Despite the growing interest in health consciousness, the lifestyle is still relatively new but evolving this means the target market size is not sizeable but there are still good prospects
- Many people are reluctant to pay for wellness and fitness services since they believe it requires minimal supervision and there is plenty of do it yourself resources available on the internet
What is the potential target market size in Nigeria?
This assumption is limited to the three trendiest cities in Nigeria namely; Lagos, Abuja and Port Harcourt which have high middle class populations. Using the following assumptions we can arrive at target market size for this business as follows;
- 6 persons per family
- Top 3 cities with middle class populations; Lagos, Abuja and Port Harcourt
- Proportionate population of middle class families per city: 750,000+ for Lagos, 133,000+ for Abuja and 440,000+
- Average disposable income per household 5% for leisure = N15,000
- 15,000 X 1,324,000 = N19,860,000,000
Who are the potential customers for wellness and fitness clubs in Nigeria?
- People looking for self-defense lessons – especially young (early twenties to late thirties) educated folks working corporate jobs.
- Overweight people
- Health conscious people – especially young middle class parents in their early thirties to late forties
- Diabetic and elderly people who can afford it know the importance of exercise and often require professional help with their exercise programs
What are the potential products and services?
- Yoga Classes
- Pilates Classes
- Dance Classes
- Weight loss programs
- Stamina and Strength building (boxing, aerobics, weight lifting,
- Self- defense classes (mixed martial arts, kick boxing and karate)
- Martial Arts Classes (Aikido, Taekwando, Karate and Judo)
- Range of health focused products such as; exercise gear, health supplements, energy drinks, sports wares,
Setup expenses and requirements a health focused gym/wellness center
- Define your area of specialty (is it weight loss, self-defense or fitness training?)
- Register the business
- Prepare an effective marketing plan
- Secure a venue
- Rent: N600,000
- Stationery, furniture, equipment, sportswear: N780,000
- Other expenses: N120,000
- Working Capital: N300,000
- Furnish, equip and decorate venue
- Commence operations
- Start marketing your service
Financial Projections and Income Statement
Assuming you are providing weight loss training at monthly fee of N7,500 to an average of 60 clients per month
- Annual income: 5,400,000
- Direct costs: 1,260,000
- Operating expenses: 1,980,000
- Net Profit before tax: 2,160,000
- Taxation: 720,000
- Net Profit after tax: 1,440,000
- Return on Investment = Net Profit after Tax/Total Investment X 100 = 80%
- Projected breakeven revenue = 3,240,000 and breakeven should be in the 7th month
- Payback period (when you recoup your investment) should be by the 15th month
Are you looking to start a business in Nigeria or already running one and need a professionally written bankable business plan for it? Give me a call: 0803 206 4106 or email me: firstname.lastname@example.org