Critical Issues:

1) In order for Elite Personal Training to succeed, they need to address how to cover the high overhead costs so that they can be viable enough to start the operations.

2) In order to succeed, EPT needs to address its positioning strategy and price point competitively, so that they accumulate enough revenue to cover their cost and earn profit.

3) Large amount of competition and several substitutes: In order for Elite Personal Training to succeed they need to ensure an advertising method to attract new consumers

Analysis:

Elite Personal Training is paying for most of their equipment on delivery which accumulate to a relatively high overhead cost. Exhibit 4, states that overhead cost are outweighing the initial capital of the owners. Due to the lack of generated funds, the owners cannot begin operations until said issue is resolved. Every company need working capital to begin as no company can open with an empty bank. A company needs some sort of cash, in the bank or on hand, to cover the annual operating expenses.

In order for Elite Personal Training to succeed, a well thought out pricing strategy needs to be put into place that can determine the right price points compared to their competition. Should the owners charge a less expensive price to attract more clients or charge a higher price to cover costs? In addition, when deciding on a price point the owners should consider their stated goals. Looking at Exhibit 1&2, it details the quarterly costs and revenue for the whole year (using the assumption of clients attending EPT, 4 times a week for a total of 16 sessions per month).

Elite Personal training is also facing a large competition in their proposed market. BodyWorx, TrueStar Health, Velocity, and independent personal trainers are all substitutes of EPT. EPT is entering a dangerous market where clientele