What do you think?

[Argyle]

Hi Guys,

As the most informed group of gentlemen on the net I thought I would ask your opinion on a new venuture I have in mind as I am not the most commercially minded individual (I have generally worked in the charitable sector). 

Basically my background is in sport, fitness and leisure with a specialism in disability.  I have managed large scale projects that promote inclusion.  One of the things that people always recommend to any leisure provided in the UK is that their staff receive disability equality training.  One of two things happen at that point - they enquire and the training providers want anywhere from £650-£1000 per course and they get put off as the staff turnover rate is so high.  Or they buy one course and that is it and soon enough all the skills have left the organisation. 

My idea is to develop a simple, leisure industry specialised course and target the 5,000 health clubs we have in the UK. 

Real simple business model:
- If you buy a one off course £500.00
- If you buy an annual course £350.00 with a tie in term of 3 years
- If you buy six monthly or more frequently £250.00 per course with tie in of 3 years

The theory being that by achieving volume I create efficiencies that no other trainers seem to do - they only sell one offs.  This guarantees an income over a period and buys time to identify new clients over a period of time.  I need to gross about £36,000 to equal my current salary which ought to be achievable. 

The other thing I should mention is that I am known to most of these companies already having managed a successful project that most of them came into contact with. 

What are your thoughts?  Am I being too idealistic? 

[D.A.L.U.I.]

Well, that's a pretty good idea, but I'm not a numbers man and you don't show overhead and whether it is a fully burdened rate--all your travel, facility, etc.  But, how do you grow the business, can you bring on other trainers and make money on their work at that rate--that's what lawyers do?  What are the licensing and warranty issues--if you miss a new law, whatever? 

[Pshrynk]

I'd be concerned your margins might be too tight -- the market is what it is for a reason.   Is your efficiency counting all possible costs in?  Another big issue might be copyright/licensing.    Do you have the ability to develop a new course from scratch or would you have to buy licenses for everything?