Providing Fitness Service with the Help of Online Platform

In this document we will discuss about Providing Fitness Service with the Help of Online Platform and below are the summary points of this document:- Heavy competition limits individual's time for fitness Report focuses on offering online fitness service for corporate individuals Online platform saves money and time External business environment in Australia indicates excellent opportunity for this idea Financial feasibility is good Market exploration includes five force model and suggestions to control influence of these forces

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SB fitness Club
Entrepreneurship Venture Capital
Report
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Executive summary
Due to heavy competition, the individual has to spend most of its time in gain or learning a new
technology which has limited their control on fitness. This report is focused on offering fitness
service with the help of the online platform. This online platform will help in saving a lot of
money as well time for these corporate individuals. This report also describes the external
business environment in Australia related to health fitness which is indicating excellent
opportunity for this business idea. In this report it can be said that financial feasibility of this idea
is good. It also includes market exploration in terms of five force model along and possible
suggestion to control influence of these forces.

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Table of Contents
Industry Analysis.........................................................................................................................................5
Five force model......................................................................................................................................6
Financial feasibility.....................................................................................................................................7
Key people and skills.................................................................................................................................10
Conclusion.................................................................................................................................................11

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Idea Pitch
Australia is currently having a total population of 25 million which are growing day by day. This
population consists of sections like young, adult and old age people. But it has been seen that all
the population are very inclined towards fitness and are also well aware of the benefits of
remaining fit (Eime et al., 2015). As per study, it has been seen that individual who is in their
fifties participant more in fitness activities in Australia as compared to young one. Also, it has
been found out that half of the population in Australia is fitness lover but due to busy
professional life they are not able to give proper time to their fitness. Fitness industries are
currently emerging as one of the most profitable business in Australia with an estimated value of
around $195 million. Governments of Australia are also promoting fitness in the country because
more than the third portion of the budget is being expended on health-related matters in the
country which is boost for this unique idea (Vergeer et al., 2017).
(Sources: Australia fitness statics, 2018)
Almost 30% segment of the Australian population belongs to the corporate section which
provides a better opportunity for this idea in terms of entry and growth prospect. This 30 % of
the Australian population will be considered as main target of this business idea.
Problem identification

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As per study, it has been found out that around 30% of the Australian populations are not able to
participant in any fitness program due to their busy schedule. As a result, this section of the
population is continuously under the risk of health-related issues and are in immediate need of
some kind of fitness service which are cost effective as well as time effective (Wilder,
Raubenheimer and Simpson, 2016).
Hence, online fitness service will be one of the best solutions for these requirements and will
promote a healthy life for the Australian citizen. In addition, this idea will also help in generating
some portion of employment in this fitness industry.
External environment analysis
Political: In order to keep the business idea flowing it is very important to offer them a stable
political environment. Especially when the government is also working in the same direction, it
can be said that government is truly focusing on the health aspect of their citizens in terms of
motivating citizens to adopt a healthy lifestyle (Higgins, Milne and Van Gramberg, 2015). This
aspect truly provides great opportunity to SB online fitness club service to enter the fitness
market.
Economical: At present Australia is having a GDP of AUD $ 1.69 trillion in which 61.1 %
comes from service and rest from other industry. Also, the government is investing a good
amount of money in the fitness industry in order to promote healthy living (Revolvy, 2016). As
per study GDP per Capita is near about 57 thousand AUD which means purchasing power of
Australian citizens are better Which offers a better opportunity for SB online Fitness club in
targeting this section of the population.
Social: Australian population consists of people from all the countries with different believes
and cultural values but one context which combines is their moral duties related to society. Here
SB fitness club can take this as a better opportunity because its idea linked with fitness benefit of
the Australian citizens.
Technology: Technology improvement is considered as significant aspects in terms of
development and is being supported by all the members of the society especially when it is
connected with the health benefit (Yazdani Mehr and Wilkinson, 2018). Technology

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advancement will act as one of the best opportunity in terms of promoting this online fitness
service.
Environmental: Australia country has put lot of effort in promoting go green in their all
business sectors and has emerged as one of the global leaders in terms of green technology. As
SB fitness club is an online fitness service so this idea is already providing some portion of
support in go green program (Jeffreys, Graves and Roth, 2018).
Legal:
In Australia, rules related to health safety are very strict especially in terms of quality of the
products and the related in order to offer a safe environment to the individuals associated with
this section (Leong et al., 2018). In this case, a unique image can be created by SB fitness club
by offering quality service along with safety aspects.
Customer analysis
As this idea is unique and is related to the fitness so this idea will naturally appeal this 30%
section of Australia which is in need of solution related to their fitness problem. Also, the cost
and time effectiveness of this fitness club will add on more benefit in terms of purchasing this
service from the potential customer point of view (Abedin, 2016). As this service has not to issue
relate to climate change hence it will help this idea to form a stable position in this competitive
business world.
Industry Analysis
The fitness industry has emerged as one of the business segment of Australia and support of
government is adding more benefits to this industry in terms of expansion. The main reason
behind this support is that government are interested to reduce the cost of health expense of the
country which can be only possible by bringing improvement in the health of the Australian
citizen (Moore and Allan, 2016). This is offering challenging environment for this idea and will
need some exclusive approach in order to compete with those clubs which are already providing

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related kind of services to the Australian population. Hence, the company must apply such
strategy which will be difficult for other competitors to copy.
Competition
Fitness service providers like gym, yoga classes, and gymnastics will not be only competitors for
this business idea but also those businesses who are offering applications connected to health
fitness. There is no doubt at all that these fitness applications will display possible threats related
to this business idea because these businesses are able to capture a good portion of fitness market
which resulted in a decline in the profit margin sharing among the companies (Howat and
Assaker, 2016). Therefore it will not be relaxed to arrive in this type of marketplace and has to
aspect numerous challenges connected to the stability of the process.
Target market
SB fitness club will attempt to target 30% section of the Australia which is suffering from lack of
time in order to remain fit. Working professionals will be the key potential customers, especially
which are in the age of 35- 40 years and are truly in need of help in their health aspect. This
online facility will become USP for this SB fitness club which will help in forming a special
position in the minds of the potential customers. Various fitness clubs are offering discounts in
their services in order to gain major market share related to fitness (Sekendiz, Ammon and
Connaughton, 2016). By proposing online fitness it will to possible to provide solution related to
the time management problems related to health fitness.
Five force model
When this idea will enter the market it will have to face forces from five different segments in
the process of challenges which are already present in the market. Negotiation from the buyer
acts as another competitive force and is associated with the manipulation of price from
customer's ends in the directive to utilize this facility (Melnick, Fonkych and Zwanziger, 2018).
Negotiation from the supplier acts as another competitive force and is connected with price
influence by technology providers in a directive to subordinate with this corporation. This idea
will also handle competitive force from somebody who can copy their approach and can develop
a novel danger by arriving in the same market (Gnjidić, 2018). Another competitive force that

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will impact this idea will be the present sports clubs which are in the business of offering fitness
services.
Financial feasibility
When some business is started, it becomes very significant to think for financial stability.
Breakeven point must be computed in order to understand the limit of investment in this idea. At
some point, a specific parameter must be there which will help in understand the amount of cash
inflow related to the investment. Therefore SB fitness club essential should conduct financial
feasibility in command to comprehend the quantity of currency that will be capitalized in the
strategy along with its reoccurrence (Christian Amos, Rahman and Mwangi Gathenya, 2016). It
can be projected that this capitalized currency will attain its breakeven point at end of this year.
In numerous events it was explored that uncertainty can extremely influence the consequence of
the procedure, hence it will be better if SB fitness club will take their business decision related to
result of this analysis.
Platform Reach Frequency Budget
Socialmedia (Facebook,
twitter, Instagram,
Snapchat, You tube)
70%, of the Targeted
population has to be
covered
Everyday 5 Posts AUD10,000
Marketing through
events(Sponsership)
50-60% of
population has to be
covered
7 Events in 7 months AUD15,000
Digital promotion
(Affiliate Marketing)
80% Reach Each day, ads
displayed on
different websites on
2% Commission basis

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the web
Newspaper Cover 30% of
population
Two times in a
month (Monday &
Saturday)
AUD 50,000
Equipment’s purchased
Fitness walker 30000
Laptops and allied tools 15000
others 5000
SB online fitness Service
Cash Flow Statement
2019
Cash Flow from
Operating Activities
Cash sales- fee collected 1,600,000.00
Realization from Debtors -
Payment to Creditors (960,000.00)
Expenses paid (160,000.00)
Total 480,000.00
Cash Flow from
Investing Activities
Machinery Purchased (1,000,000.00)
Equipment Purchased (150,000.00)
Total (1,150,000.00)

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Cash Flow from
Financing Activities
Equity capital 1,000,000.00
Borrowings 250,000.00
Total 1,250,000.00
Cash surplus/ deficit 580,000.00
Opening balance -
Closing balance 580,000.00
Budgeted income statement for year-1
Budgeted no of customers 200
Average no of hours per customer 365
Budgeted customer hours 73,000
Service charges per hour $ 5.00
Budgeted revenues $ 365,000.00
Less: Expense
Cost of service $ 100,000.00
Advertisement cost $ 7,5000.00
Utilities $ 5,000.00
Salaries of staff $ 5,0000.00
Other expenses $ 10,000.00
Total $ 125,000.00
Profit/ Loss $ 766,500.00

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Key people and skills
Every organization requires people which possess high-quality skills to bring effectiveness in the
operation of the organization. In this case, SB fitness club will employ a group of individuals that
are highly skilled and are dedicated to noble issues related to the community. This group will
consist of a person that understands the difference between liability and responsibility along with
good knowledge of advanced information technology (Barnett et al., 2016). Professional fitness
trainers, yoga master, and dietitians will be the part of core team because in present world there
is huge demand of activities which can eliminate the high pressure and tension in their daily
routine professional life. It has been found out that the main reason behind the addition related to
drugs and alcohol is this pressure which is being developed in every job. These tensions are
known as home for various health-related diseases and can even impact on the behaviour of the
individuals. In this group, the individual which will work in technical support must have
experience related to cloud base technology so that the information related to the customer can
be protected so that any kind of manipulation will not be entertained in the operation (Hardy et
al., 2015). This will help in removing unnecessary fear in the minds of potential customers. An
additional feature will be added in which if the concerned person is not available, a keen auto
recorder software will be applied with the system that will not only record the routine program
along with all activities but also will utilize preceding stored information to forecast precisely the
anticipation of the clients in command to retain the client gratitude. Cluster will be like
individuals who are knowledgeable in technology, knowledgeable in fitness events like yoga,
gym, and associated sports action. This group will also involve cluster of all the stake holders in
the form of supplier, customers and investors in order to make the process more transparent (Lu
and De Lisio, 2017). In addition, health physician will be included in SB fitness club in
command to offer fitness connected instructions like food diets, workouts etc. An internal
marketing consultant will also hire which will aid this SB fitness club in endorsing the facility
offers to entire spectators along with attempt to create a robust mediator team in command to
uphold the relation of facility associated to the cost of the customer as well as the supplier.

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Conclusion
Due to globalization, every business is under continuous pressure and it has created an
environment which is full of stress. Current situation of a common man is like, individual is not
even able to manage their personal life related to their professional life which has actually even
dragged the families in this stressful environment. In order to solve this problem, SB fitness club
is one of the best options available in the fitness market. This club is capable enough to provide
online fitness service with the help of a highly skilled team. The main purpose of this team is to
remove the stress and pressure from the life of the individual with the help of fitness related
programs and some tips on food diets. In addition, this club is offering flexible timing for their
services which is an additional benefit for this idea. Believe behind this SB fitness club is that
only sound mind can produce a sound body.

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