Business Finance Plan: Gym Startup

The assignment presents a comprehensive financial plan for launching a new gym venture. It explores both internal and external financing options, such as utilizing personal savings and securing bank loans. The plan emphasizes the importance of balancing these sources to create a stable financial structure. Additionally, it highlights government initiatives that support entrepreneurial endeavors, particularly in industries contributing to economic growth.

Business Plan
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Table of Contents
Title: ''Fitness for Women Only''..........................................................................................................3
Business idea....................................................................................................................................3
Rationale of the concept .................................................................................................................3
Vision and Mission .........................................................................................................................3
Aims and objectives ........................................................................................................................3
Description of product or services...................................................................................................4
Marketing research and identification of potential growth or opportunities ..................................5
Marketing strategies and plan .........................................................................................................6
Staff management............................................................................................................................8
Gap analysis ....................................................................................................................................8
Competitor analysis.........................................................................................................................9
Operational structure .....................................................................................................................10
Financial or feasibility analysis.....................................................................................................11
Sources of finance..........................................................................................................................13
References..........................................................................................................................................15
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TITLE: ''FITNESS FOR WOMEN ONLY''
Business idea
Entrepreneur is developed an idea about opening a gym in the most popular area of the
Muslim community. In the present era, awareness towards the good health is increasing with the
very high pace. Now, people are highly health concious in nature and prefers to follow health diet
plan for being healthy. Besides this, people of Muslim community are highly conservative in nature
(Kulmala, 2016). Thus, women of Muslim community prefers to go to the gym where people of the
same gender and community are come. In this, entrepreneur has been identified the gap and take
decision to convert its idea into reality. By considering this aspect, entrepreneur has decided to
open gym named as The Shapes. In this gym, specific exercise and other equipments will be
established by the business entity by taking into account the religious aspects of women. Further,
gym will be established by the entrepreneur exclusively for women. Along with this, separate payer
room will also be made by the business entity to satisfy the religious aspect of the women. In this,
by offering the high-tech exercise equipments business entity will provide effectual services to the
women. Hence, by joining such gym women are become able to maintain their body more
effectively and efficiently.
Rationale of the concept
The main reason behind this concept is to offer opportunity to the women of Muslim
community to make flexible and fit their body. Moreover, men of Muslim community restrict their
wives to go to the fitness centre. In this, by opening the exclusive Muslim gym entrepreneur would
become to attain success in the highly competitive business environment.
Vision and Mission
Entrepreneur will set vision which will provide direction to him in relation to performing
the business activities. Vision of ''The Shapes'' is to become a leading fitness centre of London by
offering gym facility exclusively to Muslim women.
Besides this, mission of the firm includes to capture the large market share of Muslim
community by offering high quality to the women. Hence, by offering the luxurious facilities to the
Muslim women entrepreneur can fulfil its aim and objectives.
Aims and objectives
Aim of the entrepreneur behind this business plan is to offer high quality gym facility to the
Muslim women. For fulfilling such aims business entity will carry out the following objectives:
 To open gym in the most popular area of the Muslim community for offering convenience to
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women.
 To provide women with high tech exercise machines and equipments.
 To provide opportunity to the Muslim women to fit their body and wealth.
Description of product or services
High quality and luxurious facilities will be offered by gym which will offer opportunity to
the ladies of Muslim community to make fit their body. In this, ''The Shapes'' will make focus on
including dumbbells, barbells, cardio and other exercise machines. Moreover, exercise machines are
one of the main elements which help ladies in making slim their body. It enables them to live a
healthier and happy life. For this purpose, business entity will establish different types of machines
within the Gym in accordance with the age group of ladies. Moreover, handling power of the
women highly vary according to their age. Along with this, entrepreneur will also make focus on
organizing aerobics and yoga classes for the women of Muslim community.
In addition to this, The Shapes will also appoint trainer who will provide guidance to the
ladies in relation to the ways of handling machines. Moreover, in gym customers do not have an
idea about to deal with the machines. In this, by appointing female trainer The Shapes will deliver
high quality yoga services to the customers. Usually, people of Muslim community are highly
conservative in nature. In this, by hiring female trainer gym will offer high quality services to the
users. Along with this, business entity will also make arrangements in relation to the separate prayer
room. On the basis of cultural aspects, people of Muslim community read their religious book every
day. In this, by establishing separate prayer room religious aspects of Muslim people would be
satisfied to the large extent. Hence, all these products or services will be offered by The Shapes
which offers unique experience to them.
Analyzing feasibility of the products or services
In the present era, people become more concious in relation to their health aspects. Now,
people want slim body which make them to look more beautiful. Moreover, Muslim women place
high level of emphasis on beauty aspects. Further, men of Muslim do not want to provide more
freedom to their wife. In this, by opening exclusive women gym business entity can get the desired
level of outcome or success. Moreover, it will offer opportunity to the women to satisfy their beauty
needs. Along with this, men will also allow their wives to go to the health centre which is made
exclusively for women. In this, women of Muslim community will like to go to the gym.
Market / industry analysis: From secondary analysis, it has been found that spending of UK people
on health aspects are increasing with the very pace approximately by 44%. In the recent time, due to
the highly conciousness aspect people want to join gym which helps them in making their body
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highly flexible. Further, it also has been analyzed that most of the debit and credit card holders
spend money on the products or services which is associated with the gym. This aspect shows that
spending of UK people is continuously increasing in relation to the products or services which are
offered by health club. However, from analysis it has been found that most of the gym's which are
situated in UK are male oriented. On the other hand, there are other Gym's which is common for the
user of male and women. In this, business entity found opportunity in relation to the opening of
exclusive women gym for the ladies of Muslim community. In this, by taking benefits from this
business entity can get success in his new venture.
Marketing research and identification of potential growth or opportunities
There are several opportunities which have been identified by the business entity which
encourages him to open gym for the women of Muslim community. In the present era, health issues
such as obesity etc. are increasing with the very high pace. Unhealthy diet plan or chart is one of the
main aspects due to which Muslim women of UK suffers from the problem of obesity. Along with
this, absence of yoga and any other health related activities may also cause of many health
problems. Besides this, housewives also feel tired after the specific age group such as 30-35. In this,
business can attract the Muslim housewives by highlighting the aspect gym activities will develop
activeness son them (Van Auken, and Horton, 2015).
Further, gym will also offer opportunity to the people to overcome the problem of obesity by
using the machines such as treadmill, group cycling bike etc. In this, people can reduce their loss
and make their body highly flexible. In this, by grabing all such opportunities business entity can
start his new venture more successfully. Usually, it has been seen that there are more restriction on
Muslim women's in relation to become more fit and fine. As per this aspect, entrepreneur can
encourage the women of Muslim community to become more active by joining the gym which is
exclusively made for them. According to the Sport report of England, before five years from 30%
only 12% percent Muslim's women took part in the sports activities. Now, this graph has inclined
from 12% to 18% which is good indicator for the business entity. Hence, entrepreneur can attain
success by opening exclusive women gym in UK.
Along with the opportunities, there are several risks are present in the market which may
hamper the growth and success of new venture. Perception of Muslim people towards gym activities: It is one of the main factors which will
place high level of impact on the growth and profit margin of business entity. Moreover,
Muslim people are highly conservative in nature and they restrict their daughters, wives to
go outside home. In this, marketing activities do not place more impact on the mindset of
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people. Thus, perception level is the biggest threat which will closely influence the business
aspects or practices of firm (Zhang, 2016). Tradition: Cultural aspects of Muslim people may also impose threat in front of the
entrepreneur. Moreover, Islamic people carry ''Burqa'' which also affects the practices of
gym. Moreover, for performing the gym related activities it is highly required for the women
to carry out highly flexible outfits. In this, entrepreneur requires to appoint the cross trainer
who has ability to give training to the women of Muslim community. Exclusiveness: In this, entrepreneur is planning to open gym only for women of Muslim
community. Thus, it might be one factor which will affect the productivity and profitability
of business organization. Moreover, entrepreneur is planning to attract only Muslim women
for their gym services. On the other hand, only 5.02%Muslim people live in UK out of the
total population. In this, if entrepreneur fails to attract more women then it may result into
loss of productivity. Further, age is also one of the main factors which have high level of
influence on decision making of women in relation to joining the gym. Moreover, after the
specific age group it is not possible for the women to carry out their gym related activities.
Hence, all these factors may affect the performance aspect of the firm.
 Competition: Now, more gym are present in UK which may also affect the growth of
business organization. Hence, high level of competition is one of the main factors which will
closely influence the existence of business organization. However, there is very less number
of women gym which are available in UK. In this, by opening women gym in UK for
Muslim women business entity can fulfil his aims and objectives.
Marketing strategies and plan
Marketing research:
Target market and segmentation: Usually, it is not possible for the business organization to offer its
product or services to the whole market. In this, entrepreneur can fulfil his aims and objectives only
when they segment their customer base (Ghezzi and et.al., 2015). It will enable business entity to
focus their marketing efforts on the specific segment of people which helps them in build or sustain
competitive edge over others. In this, segmentation and targeting strategies of The Shapes are
enumerated below:
Segmentation: Business entity will segment its customer base on the basis of age and gender
aspects. Entrepreneur will make focus on young and middle age group women of Muslim
community. Thus, by making focus on female segment of Muslim community The Shapes will can
build its significant presence in the market (Simón and Revuelto, 2016).
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Targeting strategy: Business entity will employ concentrated marketing strategy which will
help them in reaching to the population more successfully. Hence, target people of The Shapes will
be young and middle age group women. Moreover, nowadays young and working women give
more preference to health aspect rather than other aspects. Thus, by making focus on young Muslim
women business entity can enhance his customer base. Further, housewives will be the target people
on which business entity makes focus on. Moreover, when women take responsibility in relation to
managing their home then they are feeling more stressed and inactive. In this, gym activities
provide chance them to reduce their stress level to the large extent. In addition to this, exercise
related also develop activeness of the person. Thus, by placing more emphasis on housewives
business can accomplish his goal. Along with this, in old age people can fit only when they do
exercise and Yoga on a regular basis. In this, by making focus on such people business entity can
achieve his mission.
Positioning: In order to create distinct image in the mind of target market it is vital for the
firm to undertake positioning as a tool. Through this, business entity can encourage more customers
and thereby enjoys high level of productivity and profitability. Business entity will primarily make
focus on price factor while marketing the services of '' The Shapes''. Low pricing is one of the main
factors which will help business entity in attracting the more women of Muslim community.
Moreover, usually people specially women are highly price concious in nature. In this, by making
focus on low pricing aspects business entity will encourage Muslim women in relation to joining
the gym. Further, in the promotional campaign business entity will make focus on its exclusiveness.
Entrepreneur can also build effective image in mind of Muslim people that it is exclusively made
for the ladies of their community. In this, by making focus on these aspects business entity can
attract more customers for getting membership in ''The Shapes''.
Marketing strategies Product: Gym comes in service industry which will offer fit body and healthy life to the
Muslim women. In gym, business entity will provide women with the high tech exercise
equipments and cardio machines which help them in maintaining their health aspects more
effectually and efficiently. Price: Business entity will employ penetration pricing strategy with the aim to encourage
large number of customers. In this, initially lower price will be set by the business entity to
attract number of Muslim women towards gym. Place: Gym services will be offered by the business entrepreneur through opening gym in
Southern UK. Promotion: In order to promote the services business entity will make focus on social media
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marketing for providing information to the women of Muslim community (Parker and et.al.,
2016). Along with this, traditional means of promotion will also be undertaken by the
business entity such as television, newspaper etc. for reaching to wide customer segment.
 People: ''The Shapes'' will recruit and select best personnel who provide training to the
Muslim women. In this, business entity will make focus on appointing the personnel who
have bachelor and master degree in this field or area. In this way, with the help of highly
skilled and competent workforce entrepreneur would become able to deliver quality
services. Process: For the better functioning, high-tech and latest equipments will be undertaken by
the entrepreneur (Ghezzi and et.al., 2015). Through this, business entity would become able
to offer better services to the customers.
 Physical evidence: Business entity will design interior and exterior by taking into account
the cultural faiths and belief of the people of Muslim community. Moreover, both these are
also most significant factors which have high level of influence on the decision making
aspect of service users. Hence, interior will be designed by the business entity in a highly
innovative manner.
Staff management
For the effectual management of staff business entity will make focus on raising their
satisfaction and motivational aspect. In order to achieve this objective, entrepreneur will place high
level of emphasis on organizing picnic and other activities which keep their morale high. Along
with this, business entity will also include his employees to take part in decision making by giving
their most valuable suggestions. This aspect also evolves high level of satisfaction among the
personnel to the large extent. Further, all the personnel will directly give report to the business
entity about their working aspects. Hence, in flatter business unit all the activities will be monitored
by the entrepreneur.
Gap analysis
By making analysis of books and scholars it has been found that Muslim women do not have
much freedom in comparison to Britishers and people of other community. Moreover, Muslim
people permit their daughter, wife to actively take part in the religious activities. However, they do
not allow females of their family members to take part in other curriculum activities. Further, now
a nowadays health issues in Muslim women are continuously increasing due to Burqa. Moreover,
outfits of Muslim women covered most of the portion their body. In this, deficiency of vitamin D
arises in the body of Muslim women which may cause of serious health problems. Moreover,
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vitamin D is highly required for the smooth and healthy functioning of body. Along with this, from
internet it has been identified that awareness in relation to health among working women is
increasing with the significant rate. In this, by starting this new venture entrepreneur can attain
capture the large market share. Moreover, in this business entity will make emphasis on women
which will develop security in the mind of Muslim people. Further, it will also offer opportunity to
Muslim women to make their body more fit and fine by taking into account exercise practices on a
daily basis. Hence, business entity can reduce such gap by starting the exclusive Gym for the
Muslim women. Hence, by serving the target market entrepreneur can get success to the great
extent.
Competitor analysis
Basis of
difference
The Shapes KX Corinthia Hotel The Third
Space
Pricing
strategies
Business entity will
employ penetration
pricing strategy for
setting the suitable
prices for the
services.
High pricing policies
have been set by KX
for the gym
facilities. Moreover,
it mainly makes
focus on
businessman who
are ready to pay high
for the luxurious
facilities and
services (Van Auken,
and Horton, 2015).
Competitive pricing
strategies are
adopted by the firm
to offer facilities to
the customers.
The Third
space
employs
competitive
pricing
strategy for
attracting the
large number
of customers.
Prices The Shapes will
charge £1000 from
the women of
Musklim
community.
It charges £6000 for
offering one year
gym facilities (Top
ten gym in UK.
2016).
£1500 is charged by
Corinthia Hotel for
providing facilities
in relation to the
exercise of gym.
The Third
Space
charges
£1390 for the
gym
facilities
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which are
offered by it.
Exclusivity This gym will offer
exclusive facility to
the women of
Muslim community.
It is one of the main
uniqueness which
make it different
from other health
centres .
It offers gym facility
to both men and
women of all the
communities.
Exclusively it is
perfect for the
businessman rather
than others (Van
Auken, and Horton,
2015).
Corinthia Hotel
makes focus on men
and women whether
they are
professionals or not.
It is highly
suited to the
sportsman.
The third
Space offers
exclusive
exercise
facility to the
sportsman as
compared to
others.
Operational structure
It includes the personnel who will make contribution in the functioning of business
organization. Moreover, it is not possible for the business entity to solely run their business
activities. In this, by preparing suitable operational structure entrepreneur can ensure effective
functioning at workplace. In this, operational structure of The Shapes include the following are: Owner: Entrepreneur will be authorized for monitoring all the functioning of business
aspects. Owner will frame strategic business and policy framework for carry out the
business activities more effectively and efficiently. Employees: Two trainers will be hired by the business entity for providing training to the
women. Moreover, in gym people require high level of supervision and guidance while
operating the machine or equipments related to the exercise. Moreover, any carelessness will
directly affect the health aspect of personnel. In this, 2 highly professional and experienced
personnel will be hired by business entity for providing guidance to the women. Along with
this, one person who has qualified with yoga and meditation will also be appointed by the
entrepreneur for offering the effectual yoga and aerobics facility to the Muslim women.
Moreover, only skilled and trained professional has ability to guide the women in relation to
doing yoga and other practices. Further, one person will also be hired in the management
team who will frame marketing and other management strategies with the mutual discussion
of owner of the gym.
 Worker: Company will also appoint one personnel for the cleaning and maintenance of gym.
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Moreover, cleanliness and hygiene is the most important factor which have direct impact on
the decision making aspect of the customers.
Operations Illustration
Location of business Southern UK
Management Team 1 people
Staff structure 2 cross trainers
1 yoga and meditation employee
1 domestic staff (Cleaning and dis-washing)
Equipment Exercise equipments
Financial or feasibility analysis
Financial analysis comprises estimation or projection of cash inflows, outflows, revenues
and expenditures during the budgeted period. It can be done by preparing projected income
statement and cash flow statement. In this respect, income statement comprises estimated revenues
and expenditures for the future period. It provide assistance to The Shape to identify their net
profitability by subtracting total expenditures from the revenue generated. While, projected cash
flow statement take into account forecasted cash inflows and outflows in various operating,
financing and investing activities. It helps to determine the potential net cash position in the end of
the budgeted period.
Assumptions: Financial projection is based on the following assumptions, outlined below:
 The Shape will require an initial investment of £230000, out of which, bank loan worth
£150000 will be taken from Barclays Bank at an interest rate of 6% per annum and £80000
will be invested from personal savings. Annual instalments of the loan will be fixed to
£20000.
 Initial investment in equipments and other gym machinery will be worth £80000.
 Initial market research to acquire information about the consumer Pneeds, desires and
demand will require fund worth £2000.
 In the beginning period, The Shape will incur a cost of £4000 as legal help and permits.
While, the initial cost of promotion and advertisement to aware public about the gym centre
will require a cost of £10000.
 In the initial year, sales has been estimated upon the average customers who demand fitness
packages for different duration and the average prices, given below:
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Sales Forecast
Number of
customers Average price
Total
revenue
Average package for 3 month 30 500 15000
Average package for 6 month 42 675 28350
Average package for 12 month 50 850 42500
85850
 It has been assumed that every year, sales will be increase at uniform rate of 20% to take
into account the impact of price inflation and rising in customers demand.
 Cost of goods sold will be assumed at 20% of the sales revenue generated by “The Shape”.
 The Shape will require working capital of £30000 in the pre-operating year. While,
thereafter, it has been estimated to 10% of total potential sales revenue.
 Gym centre will take premises on rent hence, the cost of rent has been estimated to £1500
per annum.
 Machinery insurance has been forecasted to £10000 every year.
 It has been estimated that total salary will be increase at a rate of 10% per year while, the
initial period salary has been forecasted here as under:
Salary structure Quantity Amount/ Month
Total
revenue
2 Gym trainer 2 1200 2400
1 Yoga trainer 1 1000 1000
Worker 1 700 700
Administrator 1 800 800
Total 4900
 Corporation tax rate has been assumed at 25% on the business return.
 Miscellaneous expenses for the pre-operating year has been assumed at £10000 while, for
the first year, it has been estimated to £4000 and thereafter, increased at 8.5% per annum.
 Initial cost of utility for the consumption of light, electricity, water, telephone will be worth
£2500 and thereafter, it will be increase by 5% every year.
 In the first year, promotional and advertisement expenditures has been estimated to £5000.
However, after this, The Shape will incur the cost of £4500 and £4000 in the 2nd and 3rd
year respectively.
 Annual insurance charges for the machinery will be £8000 each year.
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Income or profit statement
Particulars Year 1 Year 2 Year 3
Particulars
Revenue
Sales from Products and services 85850 103020 123624
Less: COGS (35%) 17170 20604 24724.8
Gross Profit 68680 82416 98899.2
Operating Expenses
Utilities (Electricity/water/telephone) 2500 2625 2756.25
Promotion and advertisement 5000 4500 4000
Working Capital 8585 10302 12362.4
Rent on premises 30360 30360 30360
Insurance 8000 8000 8000
Salary 4900 5390 5929
Miscellaneous Expenses 1800 1950 2589.895
Depreciation 8000 8000 8000
Less: total operating expenses 69145 71127 73997.545
Operating Profit -465 11289 24901.655
Less: Interest 9000 9000 9000
PBT -9465 2289 15901.655
Less: Taxation (25%) -2366.25 572.25
3975.4137
5
Net earnings -7098.75 1716.75
11926.241
25
Cash flow statement
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Cash flow statement Pre-Operating year (£)
Year 1
(£)
Year 2
(£)
Year 3
(£)
Opening Balance 94000
88058.1
2
97941.8
7
Cash Sales 85850 103020 123624
Owner's capital 80000
Bank Loan 150000
Total Cash Inflow 230000 179850
191078.
12
221565.
87
Cash Outflow
Fixed Assets 80000
Market Research 2000
Utilities (Electricity/water/telephone) 2500 2625 2756.25
Legal help and permits 4000
Promotion and advertisement 10000 5000 4500 4000
Working Capital 30000 8585 10302 12362.4
Rent on premises 30360 30360 30360
Interest 9000 9000 9000
Insurance 8000 8000 8000
Tax 1246.88 572.25
3975.41
375
Salary 4900 5390 5929
Miscellaneous Expenses 10000 2200 2387
2589.89
5
Loan Repayment 20000 20000 20000
Total Cash Outflow 136000 91791.8 93136.2 98972.9
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8 5 5875
Closing Balance 94000
88058.1
2
97941.8
7
122592.
91125
Sources of finance
Finance is the most crucial element on which the success of business organization is highly
dependent. At initial level, business entity requires huge amount to invest in the business operations
and functions. For opening the Muslim women gym in London entrepreneur requires £230000 for
it. In this, business entity will make use of both its personal saving and bank loan for meeting the
financial needs or requirements. Personal saving is the most effectual source which will assist
business entity in starting the new venture at low cost. Moreover, in personal saving business entity
is not obliged to give any interest to others. However, it has opportunity cost for the entrepreneur in
terms of interest which he will get from such capital. Thus, owned capital helps business entity in
getting the financial benefits to the significant level. Moreover, in this entrepreneur is free from the
regular financial burden. By taking into consideration this aspect business entity will make use of
£80000 for initializing the business.
In addition to this, entrepreneur will also apply to bank for getting the financial assistance.
Moreover, banks are ready to offer financial assistance or support to venturer according to the
instructions of government. Now, government places more emphasis on encouraging the new ideas
of entrepreneur which makes contribution in the growth and development of economy. Thus, by
taking loan of £130000 from Barclays bank from business entity will meet his financial
requirement. This is also the most effectual source which provides tax benefits to the business
entity. Further, in this, business entity is not entitled to repay the whole amount at one time. Under
bank loan, entrepreneur has to repay the loam amount in the periodical instalments which reduces
the financial burden of him. Hence, business entity will undertake both internal and external sources
for raising finance. It will also help him in making balance in the financial structure of firm.
15

REFERENCES
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Parker, D. W. and et.al., 2016. Writing a business plan: Start-up in Grand Cayman: Teaching Note.
PHYSICAL FITNESS IN MIDDLE AND OLD AGE. European Journal of Mental Health.
Simón, M. V. and Revuelto, T. L., 2016. Revising the predictive capability of business plan quality
for new firm survival using qualitative comparative analysis. Journal of Business Research.
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