Workout Gym Business Plan - Assignment Example

Workout Gym Business Plan Company The work out gym services are aimed at providing services that will enable and the staff to exercise effectively. The services offered to customers will include physical therapy, baby care services for parents who wish to care for their young ones while exercising, getting a massage or taking drinks. Human beings have over the years been affected by various challenges concerning their fitness and health. There are several diseases such as diabetes and heart diseases that are as a result of inadequate exercise. Workout gym will enable university students as well as the general public to exercise effectively in order to reduce the risk of contacting lifestyle diseases. Today’s active lifestyle, stress which is as a result of work and family duties affect the lifestyle we live. Sleeping hours are usually reduced due to the several commitments in which people engage in. Lack of adequate sleep leads to restlessness, decreased reaction time, as well as lowering levels of energy. The effects of inadequate sleep as so dangerous to the body, they lead to low immunity system leaving the body vulnerable to diseases and illnesses. Work out gym is a potential business market; it will enable people to work on their cardio (Meddis, 1977). Canterbury Christ Church University is a university on the move. There is a steady increase in population growth every year. The current population ant the university is high. The growth in population has been necessitated by the number of students being admitted as well as the population neighboring the university. This has attracted the need to set up a workout gym that will target the customers around as well as within the university. The work out gym will target the students, and the population around the university. Industry analysis and trends Entrepreneurs willing to venture into the leisure market especially work out gyms have got the opportunity to invest in this very appealing business. The leisure industry especially investing in gym services to the customers is in good condition and there are several customers wiling to pay for the services offered. Consumers who are employed have got money to spend in the work out gyms due to the nature and hours they take at work, leisure is crucial to any human being. Health concerns remain the main concern why people will have to seek the services of a work out gym. Further, flexible working hours as well as long weekends will enable consumers to exercise effectively in this facility. Success in the leisure industry especially in the work out gym depends on the analysis of porter’s five forces to business. Porte’s forces enable the entrepreneur to come up with a competitive strategy that will enable the business to compete favorably with other competitors. Competition Competition is one of porter’s five forces to a business (Mankiw. 2011). At the Canterbury University, there is no any other work out gym. Due to the lack of exercise facilities such as a gym, the establishment of one facility will be to the benefit of customers. Canterbury University is the right environment because there are no other competitors that can pose challenges in the process of trying to win customers tastes and preferences. Other forces, according to porter, that have to be analyzed by the entrepreneur include threat of entry such as high costs of operation and taxation, customer’s power to use the service offered by the entrepreneur, and the suppliers power to constantly supply quality services to the customers (Stopford, 1991). Competition can help in improving the success of the work out gym as well as ensuring its viability. Target market The work out gym will target the students as well as customers neighboring the university. These customers are likely to be in active employment or spend most of their time studying (Froberg, 1997). After work or after study leisure is necessary for a healthy living students and the workers can exercise so as to reduce their chances of contracting diseases and illnesses such as heart disease, obesity and diabetes (Wener and Hoeger, 2009). Strategic position Strategic positioning involves the \decision on where to be and what to do (Temporal, 2000). The work out gym will be strategically positioned at the Canterbury University and will be concerned with the provision of fitness services to students, staff, children and the general public. Strategic position analysis ensures that entrepreneurs do not place their businesses in areas far from customers; convenience to customers should be considered (McLaughlin, 2006). Marketing plan The work out gym services will have to be advertised to the customers. The most effective way of reaching and persuading the customers to use the service is by advertising (Luther. 2011). The media will also help in informing the customers of the services. Television, radio and the social media will be used to ensure that several customers are reached. Marketing strategies through the social media is the current and most effective way used by organization in marketing their products and services. To succeed in marketing, the marketing personnel will have to market the service being offered at the right place and at the right time (Westwood, 2002). Customers must be aware of the product. Competitive market has also been taken into consideration w hen coming up with the marketing plan of the workout gym, for example, is it harder of easier to capture the market? Company structure Human resources at the workout gym will require those individuals with experience and expertise I managing leisure and recreational facilities. These kinds of personnel will be obtained through job recruitment drives placed al over the country. The minimum requirements will be a bachelor’s degree in management and the relevant experience in the field of leisure management, especially in gym management. The gym services will be commercialized under the governments’ legal requirements. Licenses required to operate the business will be obtained from the relevant government agencies . The stakeholders have already set a side the funds to be used in acquiring the licenses and the registration of the company. Technical as well as financial partners and sponsors to the business include friend, the government, external stakeholders, banks and the shareholders. They will be in charge of contributing and looking for possible sources of funds to the business. These partners and sponsors are also committed in ensuring that the business begins its operations and is profitable. Risks Risk Measures to counteract the risk Competition Offer quality services to customers Inflation Determination to succeed even in hard economic times customers Persuade customers Government policies Complying with the policies SWOT Analysis SWOT analysis is often used by businesses in identifying strengths, weaknesses, opportunities as well as threats to the business such as competition from other potential businesses (Canwell and Sutherland, 2003). Work out gym’s strengths includes its ability to provide quality services to the customers to enable them exercise effectively. In addition, the qualified and experienced staff to be recruited will be an added advantage to the gym. Some of the projected weaknesses to the business will be in persuading the students and the university staff as well as the general public in using the gym’s facilities as opposed to engaging in other sports such as football, rugby, basketball and hockey that can also keep them fit. The only treat to the business will be competition from other neighboring gyms. Thorough market analysis will have to be done to ensure that the business competes favorably with other businesses offering similar services. Benchmarking with other businesses will be the only way in comparing the services offered and the workout gym. Community involvement and social responsibility In achieving social responsibility, the workout gym will engage in services aimed at helping those members in the community who are experiencing various challenges such lack of school fees, payment of medical bills, tree planting, and educating members of the community on the need to exercise (Sunita, 2005). These social responsibility actions will be aimed at helping the less fortunate members of the society such as the poor. Immoral decisions such as price increase will have to be avoided by the business. Any activity that can affect the business relations with customers will be avoided (Hopkins, 2007). The experienced and highly qualified will have to honor the needs of customers as well as engage in fruitful communication. The board of directors will have to decide on the best way to help the community according to the profit base of the business. Community participation projects such as cleanliness and garbage collection will also form party of the social responsibility strategies. Business sustainability The work out gym is sustainable to both the environment as well as to human beings. The gym will ensure that there are no activities being carried out that can affect the habitat to both plants and animals. Further, it will ensure that services offered are of use to human beings and do not pose danger to the lives of the customers. This will be achieved through acquisition of advanced equipments. Sources of income Planned membership numbers/hours of opening The planned membership of the workout gym stands at 500 before the opening of the work out gym center. The work out gym will operate on a 24 hour basis, seven days a week. The work out gym management plans to add additional 200 members over the next three years after its opening. Fee structure Projected sales 2013 2014 2015 SALES memberships 364000,00 480 000 620 000 child care 314000,00 325 000 341 000 physical therapy 156000,00 165 000 174 000 fruit bar drinks 144000,00 154 000 160 000 massage 120000,00 125 000 130 000 TOTAL SALES 1098000,00 1249000,00 1425000,00 The projected sales will be achieved through cooperation from employees and the management. Effective communication and cooperation between the management and the employees is necessary in achieving common objectives and goals of the business. Advertising in various media will be used in informing the customers of the services to be offered at the work out gym. Management and organization The manager Assistant manager Child care manager Massage manager Physical therapy manager Fruit bar drinks manager Child care staff (16) Center staff (20) Employment costs of staff direct costs 2013 2014 2015 memberships 0,00 0 0 childcare 0,00 0 0 massage 60000,00 62 500 65 000 physical fitness 84000,00 92 000 98 000 drinks 24000,00 27 000 30 000 TOTAL COSTS 170013,00 183514,00 195015,00 Cash flow forecast Break even point http://www.bplans.com/workout_gym_business_plan/financial_plan_fc.php Break-even Analysis cost monthly revenue break-even 70 729 Assumptions: Average percent variable cost 15% estimated monthly fixed cost 60763 Break even analysis refers to the point at which the work out with either make profit or loss (Covello and Hazelgren, 2006). Further, it can also be referred to as the point where sales precisely balance out operating cost. This is important to an industrialist because he or she will be able to determine whether the business is profitable or is operating at a loss. Below the break even point means that there is loss being witnessed in the business while being above the break even point means that the business is making gain in terms of profit. Overall profit situation for three years References Business plans, retrieved on 20th April, 2012 from http://www.bplans.com/workout_gym_business_plan/financial_plan_fc.php Canwell. D and Sutherland. J (2003). Leisure and tourism Gcse. New York, Nelson Thornes, Pp176-177. Covello. J and Hazelgren. B (2006). The complete book of business plans: simple steps to writing powerful business plans. New York, Sourcebooks. Froberg K (1997). Exercise and fitness-benefits and risks: children and exercise. London, European group of pediatric work. Hopkins. M (2007). Corporate Social Responsibility and International Development: is the business the solution? London, Earthscan. 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