Business and Management Plan for Bounce Fitness Company

This report focuses on the business expansion of Bounce Fitness Company, providing health and fitness services to people above 50 years. It includes determining resource requirements, financial resources, projected income statement, cash flow statement, KPIs, and operation plan.

RUNNNING HEAD: Business and management plan 1
Name of the student
Topic-Business and management plan
University name-

Business and management plan 2
Introduction
This report has focused on the business expansion of the Bounce fitness company.
This company is indulged in providing health and fitness services to public through its
innovative and creative means.
Present description of the company
The Bounce Fitness Company is running its business on international level. The main
focus of company is to grasp the potential target market of people having age more than 50
years.
The main product and services of Bounce Fitness
Bounce fitness needs to introduce its new fitness cycle to motivate people to live
healthy life style. It will include diet chart, body check-up and consistent training and
motivation program (Crespin Abraham and Rothman, 2016).
Part-A Determine the resources requirements and develop the operational plan
It is observed that the operation plan of the bounce Fitness should be supported by the
proper consultation process which are given as below
Focus on the issues and problems- This process is related with the identifying the
problems areas such as People’s health and problems which peoples and employees are
facing. The operation plan will consider the required diet chart, body check-up and consistent
training and motivation program to encounter all the associated health issues
Insight- The main insight is required to develop by the management for implementing
proper promotional plans. The management needs to implement proper data collection
process. The main insight of bounce Fitness is related to keep people healthy and providing

Business and management plan 3
them the right way to follow the proper diet (White, Hartley and Ozminkowski, 2015).
Action- The management of Bounce Fitness needs to implement proper action plan
such as results presentation and implementing cyber computing system in business and
installing new machines (Batorsky, et al. 2016).
2. Determine the Requirement of resources
Requirement of resources
There are following resources required to implement new busienss.
Physical resources requirement
Particular Cost (NZ$)
Setting up new office infrastructure 40K
Hiring new trainers and experts
Experts Salary= 1K* 13 employees=13K
Trainer= 7K
Supervisors salary= 5k*2 =10K
30K

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New Operational plan charges 20K
Marketing plan expenses 10k
Legal charges and expenses 5K1
Tending cost filling 1K
Licensing cost and expenses 1K
Hiring new space 10K
Project escalation cost 5K
Total cost 122K

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Financial resources
Bounce fitness could raise finance from several sources which are given as below.
Debt funding- It is the debt funding which could be used to raise funds at the fixed
interest rate from the public
Private funding- It is the funding process in which promoters of bounce fitness will
invest their funds to expand the business.
There will be following financial resources required to run the business effectively.
Bounce Fitness company
Particulars (Amount in Million) 2019 2020 2021 2022
AUD$ AUD$ AUD$
AUD
$
EBIT 5 7 9 10
Net profit 4 4.5 5 8
Total Assets 10 11 9 14.00
Total Liabilities 1 1 1 0
Shareholders' Equity 9 10 8 14.00
This above given financial resources reflects that Bounce fitness consistently needs to
increase the overall financial resources in business.

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Human resources
Bounce fitness needs to change its value chain activities by hiring new staff members and
making more advanced business system. It will help
Number of staff- Bounce fitness needs to hire at least 30 experts’ trainers who could
organize a camp for the office employees and people having age more than 50 years. These
employees will help people to learn new things and promising training programs for the
betterment of people.
Job Title- This new busienss expansion program will change the busienss structure of the
bounce fitness. Total 5 employees will be indulged in front desk employees, 20 train experts
will be indulged on floor training and rest in the other activities (Mazzuca, et al. 2017).

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3. Develop a projected income statement of company
Develop a projected income statement of company
Profit &
Loss
Statemen
t
Month
Jan
18
Fe
b
18
M
ar
18
Ap
r
18
M
ay
18
Ju
n
18
Ju
l
18
Au
g
18
Se
p
18
Oc
t
18
No
v
18
De
c
18
Income
Total
Sales
(AUD $
million) 150
15
5
17
0
18
7
19
0
20
4
21
5
22
6
23
8
24
9
26
0
27
1
Less Total
Disc/Com
m 15 20 14 20 25 25 27 29 31 33 35 37
Total Net
Income 135
13
5
15
6
16
7
16
5
17
9
18
8
19
8
20
7
21
6
22
5
23
4
Less Total
Cost of
Goods
Sold 95
10
0
11
0
11
5
11
5
12
0
12
5
12
5
13
0
13
5
14
0
14
5

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Gross
Profit 40 35 46 52 50 59 63 73 77 81 85 89
Expenses
General &
Administra
tive 3 3 3 3 34 4 4 4 45 5 6 6
Marketing
&
Promotion
al 5 7 6 7 8 9 9 9 9 9 10 0
Operating
Expenses 4 5 8 9 10 15 18 20 25 29 30 35
trainers
Expenses 5 5 10 15 15 15 20 20 20 25 25 25
Website
Expenses 5 5 5 5 10 10 15 15 15 20 25 25
Total
Employme
nt
Expenses 2 2 2 3 4 5 5 5 5 5 5 5
Occupancy
Costs 2 2 2 3 3 3 3 4 4 4 5 5

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Other
Expenses 1 1 1 2 2 2 2 2 3 3 3 3
Total Expenses 27 30 37 47 86 63 76 79
12
6
10
0
10
9
10
4
Monthly
Net
Profit /
(Loss) 2 3 3 4 7 5 6 7 11 8 9 9
Profit and Loss Ratios
Gross Margin
(Gross Profit / Net
Income)
0.29
629
629
6
0.2
59
25
9
0.2
94
87
2
0.3
11
37
7
0.3
03
03
0.3
30
35
7
0.3
36
51
8
0.3
67
40
9
0.3
71
37
3
0.3
75
0.3
78
33
0.3
81
39
9
Net Margin
(Net Profit / Net
Income)
0.01
666
666
7
0.0
18
51
9
0.0
19
76
5
0.0
23
45
3
0.0
43
43
4
0.0
29
29
7
0.0
33
61
6
0.0
33
31
6
0.0
50
77
4
0.0
38
58
0.0
40
33
5
0.0
36
97
4
Mark Up
((Net Income Less Cost
of Goods Sold) / (Cost
of Goods Sold)) x 100
0.42
105
263
2
0.3
5
0.4
18
18
2
0.4
52
17
4
0.4
34
78
3
0.4
93
33
3
0.5
07
2
0.5
80
8
0.5
90
76
9 0.6
0.6
08
57
1
0.6
16
55
2
Break Even
( Expenses/((1-(Cost of
91.1 11
5.7
12
5.4
15
0.9
28 19
0.7
22
5.8
21
5.0
33
9.2
26
6.6
28
8.1
27
2.6

Business and management plan 10
Goods Sold/ Net
Income)) 25
14
3
78
3
42
3 3.8
02
7
42
3
19
3
81
3
66
7 08
80
1
(Kilpatrick, et al. 2015).
4. Develop a Cash flow statement
Develop a Cash flow statement
Cash Flow Statement of Bounce and fitness
Cash flows from Operations
Cash receipts from customers
(enter positive amounts) Cash Sales (AUD $ Million)
$
55.00
Cash collected from customers
(debtors)
$
45.00
Funding from Creditors
Stock purchased, not yet paid
$
25.00
Cash paid for
(enter negative amounts) Total Expenses
$
15.00

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Inventory (stock)purchases
$
10.00
Funding to Debtors
Sales made not yet collected
$
-
Net Cash Flow from Operations
$
150.00
Investing Activities
Cash receipts from
(enter positive amounts) Sale of property and equipment
$
20.00
Matured Investments
$
20.00
Cash paid for
(enter negative amounts) Purchase of property and equipment
$
15.00
Purchase of investments
$
15.00

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Net Cash Flow from Investing
Activities
$
70.00
Financing Activities
Cash receipts from
(enter positive amounts) Increase in short term debt
$
15.00
Increase in long term debt
$
25.00
Increase in equity (proceeds from
owners)
$
17.00
Cash paid for
(enter negative amounts) Repayment of loans
$
15.00
Dividends
$
17.00
Net Cash Flow from Financing
Activities
$
14.00
Net Increase in Cash
$
13.00

Business and management plan 13
Cash at End of Year
$
33.00
5. Development of key performance indicator
Development of key performance indicator
Key performance indicator Comment
Total turnover There needs to be increment in the sales by
20% each year.
Net profit The net profit of company should be
increased by 15% each year.
Employee turnover Zero employee turnover and increase in the
number of employees.
6. Develop a process to monitor the project using KPI
Identification of gap- It is found that Bounce fitness could increase its overall
turnover by 20% if it undertakes the new gym fitness program for office going employees.
Assessment of problems and issues- It is observed that Bounce Fitness Company
needs to hire more efficient employees to train office going employees for the betterment of
their health.
Key performance indicator Outcomes
Total turnover 20% higher each year

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Net profit 15% increment each years
Employee turnover Reducing to zero
7. Determine the Significant area of risk
Significant area of risk
Busienss risk- The main risk would be related to loss of business value which will
arise at the time when the cost of capital invested is less than the amount of return of
company (Carpenter and Gilleland, 2016).
Contingency plan
In this case, Bounce Fitness Company could use capital budgeting tools and other
heading funding to mitigate the associated risk of the business.
8. Outline the System to provide fitness coaching to employees
There are following process which needs to be followed in order to provide fitness
coaching to employees
Determining the time and area- This will be determined at the time when the office
time will be over. The area would be the garden where everyone could gather. NO heavy
machines would be used during the fitness working program.
Consistent body check- All employee will undergone through the body check-up
program BCC, BMI test and other body test program.
Assessment of their body improvement- In this part, all the trainer will assess the
possible impairment and drawbacks which needs to be covered up by the gym hitting
employees.

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Diet plan- All the employees who are indulged in this program will need to change
their diet plan accordingly.

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10. Develop and document operation plan
Develop and document operation plan
Scope of the project- The newly introduced project of Bounce fitness will help office
going employees to be fit and eventually increase the market share and brand image of
company.
Resources requirement
All the resources required for this operation plan would be bifurcated on the basis of
human, financial and physical resources given above
Cash flow forecast- The below given table reflects the cash flow forecast.
Years
Cash flow forecast (AUD $
million)
2018 33
2019 35
2020 37
2021 39
2022 40
2023 42
2024 44

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2025 45
2026 50
2027 48
2028 50
2029 55
2030 59
2031 65
KPI”S
Key performance indicator Outcomes
Total turnover 20% higher each year
Net profit 15% increment each years
Employee turnover Reducing to zero
Monitoring process
Bounce fitness Company needs to implement proper cyber computing system to assess and
monitor the implemented fitness activities.

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Contingency plan
All the fitness session will be saved by the back-up trainers who will act as trainers
for the members in the absence of main trainers.
Part-B Prepare the appropriate communication strategy
11. Communication strategy
The main communication strategy to convey the required information for the relevant
stakeholders would be use of power point presentation. This presentation would be
accompanied with the required information such as healthy life style benefits and fitness
programs.
 Identification of the problems and issues in healthy life style of office going persons.
 Assessment of the problem
 Development of key strategic plans and program
 Implementation of the new program and fitness activities
 Follow up the program
12. Prepare communication strategy
The communication strategy for the implementation of the development program will
start from the power point presentation and implementation of the program. After that, all the
employees will be shown the entire bounce fitness activities program through the PPT format.
This will be done in different sessions and implementation of the new programs. In the end,
proper outcomes and assessment of the details will be done by using the proper working
process (Wicker, Coates and Breuer, 2016).
13. Power point presentation
Slide-1

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Slide-2
Slid-3

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Slide-4
Slide-5

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References
Batorsky, B., Taylor, E., Huang, C., Liu, H. and Mattke, S., 2016. Understanding the
relationship between incentive design and participation in US workplace wellness
programs. American Journal of Health Promotion, 30(3), pp.198-203.
Carpenter, R. and Gilleland, D., 2016. Impact of an exercise program on adherence and
fitness indicators. Applied Nursing Research, 30, pp.184-186.
Crespin, D.J., Abraham, J.M. and Rothman, A.J., 2016. The effect of participation in an
incentive-based wellness program on self-reported exercise. Preventive medicine, 82, pp.92-
98.
Kilpatrick, M., Blizzard, L., Sanderson, K., Teale, B. and Venn, A., 2015. Factors associated
with availability of, and employee participation in, comprehensive workplace health
promotion in a large and diverse Australian Public Sector setting: a cross-sectional
survey. Journal of occupational and environmental medicine, 57(11), pp.1197-1206.
Mazzuca, P., Montesi, L., Mazzoni, G., Grazzi, G., Micheli, M.M., Piergiovanni, S., Pazzini,
V., Forlani, G., Latessa, P.M. and Marchesini, G., 2017. Supervised vs. self-selected physical
activity for individuals with diabetes and obesity: the lifestyle gym program. Internal and
emergency medicine, 12(1), pp.45-52.
White, J.C., Hartley, S. and Ozminkowski, R.J., 2015. Association between corporate
wellness program participation and changes in health risks. Journal of occupational and
environmental medicine, 57(10), pp.1119-1126.
Wicker, P., Coates, D. and Breuer, C., 2016. Utilizing a Short-term Fitness Program to
Address Time Constraints among Fitness Participants. International Journal of Sports
Science, 6(3), pp.100-105.

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