This page contains a Flash digital edition of a book.
COMPANY PROFILE PROMOTION


What are the key steps in the feasibility process? To begin with, it’s very important to use an independent party. We commission this process out to leading leisure consultants such as FMG, Max Associates, Robin Thompson, and the Sports and Leisure Group. It’s important that the feasibility is totally impartial in order that all decision makers, as well as Alliance’s funders, can be confident in its robustness. It’s a complex analysis made up of


different parts. It starts with going to the site and physically looking at the local area. If you’re planning to build a play centre, it’s no good just looking on paper, seeing there’s a big play centre just down the road and deciding there’s too much competition. That existing play centre may be scruffy, overpriced and not really serving its customers. That’s why it’s so important to pay


a mystery shopper visit. We believe, where there’s competition, there can often be opportunity.


How long does feasibility take and what are the challenges? An average feasibility report takes around five weeks. On the cost savings side, some benefits are easy to show because we can relate back to existing data – so for example, the savings to be made in the areas of utilities, staff, cleaning services, etc – as these are evidence-based.


November/December 2013 © Cybertrek 2013


It’s hard to predict future competition, so Alliance develops complementary facilities to avoid reliance on one revenue stream


The future potential benefi ts are


harder to quantify because there are so many variables, and it will depend on how that facility is run in future. We can’t predict, for example, if a budget gym might open down the road from a newly developed fi tness facility. That’s why we generally develop a range of new complementary facilities which protect our clients, so they become less dependent on any one revenue stream. However, as Alliance Leisure has


now completed over 100 projects, we have the experience of many successful models to draw upon, providing a type of evidence base that may be referred to for future projects.


What else does Alliance offer at the viability/feasibility stage? As well as commissioning external reports, such as latent demand reports, we also proactively commission independent market reports so we can better advise our clients at this stage. For example, while the market for


local authority spas is growing rapidly, there is very little data available on these developments. So we’ve just commissioned our own report from Leisure-net Solutions to look at the


public sector spa market. This data will prove invaluable for our clients considering this type of development.


Do clients need to pay out a lot of money at this stage? No, not really. The process can be funded by either party or a shared process – sometimes it’s shared 50:50, depending on the scheme and situation. The initial headline figures are provided by Alliance for free, which help shape the early thoughts and inform the decision to proceed to full feasibility. It’s important to note that this is the


stage where the fi nancial success of a new facility or an add-on facility is really secured. It could save clients a huge amount in the long term. For example, do you keep a squash


court that generates £8–12k a year, or do you turn the space into a toning table facility? Toning tables may be for a niche, older market, but they’re relatively cheap to install, and even with a small membership of 250 people paying £25– £30 a month, that same space could potentially generate £70–80k a year. As we said before, it’s all about


the money for the space, and being realistic about revenues. We’d never lead a client to believe they could make £1m when we know quite clearly from the feasibility that it will be closer to £300k.


Read Health Club Management online at healthclubmanagement.co.uk/digital 47


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100