Gym valuation methods

Venture Capital Valuation Methods" Please respond to the following:
Determine the most likely valuation method a venture capitalist would use to value your business venture from Assignment 1. Provide a rationale for your response.
From the e-Activity, assess the effectiveness of ESOPs to incentivize key employees and whether or not this would be a viable option for your venture. Provide an example to support your response.1 Running head: BUSINESS VENTURE Business Venture Khiminyah Chavies FIN 317 Haroon Baqai October 14, 2019 2 BUSINESS VENTURE Opening a gym club next to or within one of the dispensaries in Colorado is a lucrative idea. This is because many health conditions have one thing in common; fitness (Howard et al, 2017). Thus, the gym club will be within the heath industry to help those whose physicians recommend fitness as part of the solutions to their problems. The target market of the gym club will be those within the dispensary’s proximity, particularly individuals with medical conditions. Fitness has become a common norm in the contemporary society. Therefore, it is easy to find gym clubs at every corner of a town including workplaces. Hence, competition for this business venture will be enormous ranging from fitness clubs to free workplace gyms. However, more people want to become fit every day and not all work at organizations with gyms. This type of business is of great interest due to the ease of market penetration it provides. For instance, the gym could partner with the dispensary’s administration for customer referrals after their diagnoses. At the same time, since the gym will be offering its services to people with medical conditions only, it will have specialized machinery for different conditions in lieu of general work out machines (García-Fernández et al, 2018). This will probably increase the revenue of the venture given that other gym clubs provide services for the general public without considering those who need special services. With specialized machinery for special health diagnoses that require fitness as part of the treatment, there is a high probability for the success of this gym business (Polyakova & Mirza, 2016). Consequently, being located close to or within a dispensary offers an assurance of customer in-flow due to referrals since people get diagnoses all the time. Therefore, establishing a gym club within the health industry with special gym equipment for special health conditions is a promising business venture as opposed to owning a normal or general gym club.