Financial Model for a Tech-Enabled Fitness Venture

How we built a complete business plan for a tech-enabled fitness venture ahead of the FIFA World Cup.


Highlights

118,180 QAR

3.3 Months

36,000 QAR



The Challenge

A Qatari entrepreneur wanted to launch an innovative, tech-enabled “GymPod” business in Qatar. The goal was to capitalize on the massive influx of visitors and media attention for the upcoming FIFA World Cup, requiring a rapid and comprehensive business plan to assess viability and guide a time-sensitive launch.

The Solution

The founder of MESC Advisory, Moustafa Hassan, was tasked with building the complete business and financial model for this new venture. His work included creating a detailed Initial Plan for the business launch and a sophisticated Pricing strategy. A core part of the project was a granular Cost Analysis, which broke down all projected expenses, including detailed models for a Large Pod, a Small Pod, and the Team. Finally, we designed the initial Team Structure and defined the core Team KPIs to measure success post-launch.

Key Results & Impact

The financial model provided a clear, quantitative view of the venture’s potential, allowing for data-driven decision-making.

Financial Modeling & Viability

  • Established a detailed unit startup cost of 118,180 QAR for a Small Pod and 197,410 QAR for a Large Pod, allowing for precise capital planning.
  • Projected a clear path to profitability with a rapid break-even point of just 3.3 months per pod.
  • Forecasted a total monthly revenue of 36,000 QAR per pod, based on a defined utilization and pricing model.
  • Outlined a comprehensive first-month fixed cost of 815,528 QAR, covering all initial setup including app development and visa fees.

Operational Planning

  • Designed an operational model based on a target of 8 daily active hours per pod, totaling 240 active hours per month for revenue generation.
  • Created a detailed team structure for the initial launch phase, outlining key roles and responsibilities to ensure smooth day-one operations.
  • Established a framework for performance management by defining specific team KPIs to monitor success and drive efficiency post-launch.

Go-to-Market Strategy

  • Set a clear user acquisition target of approximately 158 active users per pod required to meet the financial goals.
  • Defined an average pricing of 150 QAR per session as the cornerstone of the revenue model.

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