Read the detailed business plan for FitnessPro, a fitness application that offers personalized workout plans, activity tracking, nutrition guidance, and more. Learn about the management structure, target market, marketing strategies, operations, costs, and financial projections.
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The Pitch Project 1
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Contents Introduction......................................................................................................................................3 Main Body.......................................................................................................................................3 Business Plan Application form..................................................................................................3 Conclusion.......................................................................................................................................8 References........................................................................................................................................9 Appendix........................................................................................................................................10 Business Plan Template.............................................................................................................10 2
Introduction Planning is essential to a systematic execution of a project. Business plan helps an entrepreneur to develop an outline of the activities that are required to be carried out to have a smooth business operation(Tipu, 2019). There are 3 scenarios given for the project and for this report, Scenario B is chosen in which, a new start-up idea has been developed and will be pitched to government for obtaining a loan of£40,000. This amount will be used as capital along with £2,000 each capital contribution by partners. In the below mentioned report, a fitness application is proposed to be developed. Details of business plan and all of its required components are mentioned below. In appendix, summarised business plan is attached. Main Body Business Plan Application form For digital fitness start-up, detailed plan is below mentioned: Section 1: Business overview Due to fast paced lifestyle, unhealthy eating and living style, diseases and obesity have increased in children and others. This has been an eye opener for people and there is increasing trend towards doing exercises and taking healthy diets. Decreased immunity has also made people susceptible to infections like the one presented by Covid-19 and, this Covid-19 induced lockdown has made them realise importance of keeping their fitness level high all the more. People today are more friendly with their phones and spends more time with their phones than they do with their family and friends. With increasing trend towards keeping fitness and health level high among the public and usage of the mobile phone, presents a good opportunity to develop this as a business model(Genadinik, 2015). Thisprojectisapitchfordevelopingandlaunchingfitnessapplicationnamed FitnessPro. This app will have profile of the user where recommended exercise plan would be suggested based on height, weight and fitness goals. It would have multiple features like free customised workout plans like weight management exercises, cardio section, core strengthening section, stretching section, etc. in which there will be animated videos of the exercises and voice over would be given for participant to do it with application, weight tracking, daily activity tracking like number of steps taken or any other physical activity done. Other features will be chargeable like demonstration of exercises and others precautions by fitness experts via recorded 3
videos and daily timely live streaming, recommended nutrition and diet plan and calorie tracking, suggested dietician, physiotherapist or personal trainers near-by for some areas of UK, etc.Suggestedlinksforusefularticles,booksandothercontentwillalsobeprovided. Subscription would vary from activity based to time based and the subscription cost would be priced nominal initially. Section 2: Management Structure Management structure refers to the way business organises its hierarchy(Moro Visconti, 2019). Proposed business is a digital business which runs on capital-light and asset-light approach.Business is supposed to be adopting flat structure of operation.This venture isa partnership between Ms. Julian King, Ms. Kelly Shelby and Mr. Nicholas Fig. Ms King is an IT and animation expert, Ms Shelby is a fitness expert and Mr. Fig is a marketing expert. All the three are active partners and will be handling their specialisation in the business operation. To help and support them, there will be a requirement of around 5-10 staff. There will be different teams headed by different partners. These teams would be management,technology,marketingandsponsorships,finance,HR,etc.Forhandling management, operations and HR activities one manager and 2 subordinates would be hired. They are required to have excellent administration skills, communication skills, negotiation skills, problem solving skills, decision making skills, etc. Marketing would be handled by Mr. Fig and to assist him, 2 employees would be hired who are required to have a good market knowledge, excellent sales skills, networking building skills, etc. All activities related to app development and digital process management would be handled by Ms. King and two help her, 2 IT experts would be hired, one of which needs to be expert in animation designing and others needs to be expert in web designing and internet related processes. All the related services and products that need to be put on-board and developed would be handled by Ms. Shelby and to assist her, 2 assistants would be hired who needs to be well versed with fitness industry and shall be expert in innovative and creative design thinking(Galai, Hillel and Wiener, 2016). Business would be hiring for staff in December. 4
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Recruitment advert for job position of Manager in FitnessPro is mentioned below: HIRING There is a vacancy for the post of administration manager at FitnessPro. It is a digital application-based business and the hired candidate would be required to handle management, operations and HR activities of the business. Candidate must possess excellent communication, management, team handling skills and shall have administration experience of more than 5 years. Interested candidates can apply atFitnessPro_recruitment@gmail.comon or before December 10, 2020. Section 3: Market Target Market –This segment includes the specific groups among population which are targeted by the business. Target market for the FitnessPro is not restricted to an age group or geographical boundaries. However, initially geographical boundaries would be there for near-by expert and physiotherapist contact details, which would gradually increase coverage area as business would expand across UK. Target customers would be those people who are on the lookout for some advice related to the gaining/losing weight, correct activity/exercise schedule, etc. Usually, such people are user for only till the time, either their goal is not achieved or they have not found a better service and they switch. Therefore, business shall aim to keep them hooked for longest time(Watson, McGowan and Smith, 2015). Competitive advantage/USP– There are so many fitness app in the market and what makes FitnessPro different from them to users, is that it is one-stop solution for all their requirement. Application would be developed with so-user friendly interface that customers of any age group would be able to navigate properly either through reading/hearing instructions or by watching pictures. This will also be one of the salient features of the app that everything would be having clear image/audio instructions so that even hearing or visual impaired users can be able to enjoy it. However, initially the instructions would be available in English only and different language additions will be made later as business progresses. Application will be updated regularly with special focus towards data privacy and security. 5
Section 4: Marketing Market Research– Business shall conduct both primary and secondary marketing research(Blackwell, 2017). For secondary research, business can refer government data, other research reports, news articles, etc. and for primary research, marketing department can publish an online questionnaire like the one mentioned below: Questionnaire for Fitness Pro QuestionsChoices (choose multiple) 1. What features should be a must in fitness application? A.Different workouts B.Activity trackers C.Suggestions like diet-plan 2. Do you think Fitness Pro would be able to carve out a niche for itself? A.Yes B.No C.Maybe Competitor analysis– All the similar fitness app are competitors of the business. Most of them have one or two related services but none of them offers one-stop solution like this proposed business. Therefore, business needs to focus on its USP to take existing and potential competitors(Hofer, 2016). Marketing strategies– Company is a digital business and therefore should direct all its promotions through digital media only while keeping content marketing as basis. Special mention needs to be given to social media platforms like Facebook, Twitter, Instagram, etc. where not only business would promote itself but word of mouth publicity would act as marketing tool for the application. Business can also collaborate with social media influencers on Instagram, Youtube, etc. to promote its products and services. Also, business includes tie-ups with fitness experts, dieticians and physiotherapist and they will also help promote business 6
amongst their clients. Another interesting technology like chatbot, gamification, etc. can be used for promoting the business. Section 5: Operations and logistics App features:A fitness app shall necessarily include features like easy registration and log-in, accessibility(bothdesktopandmobileversion),pushnotifications,easyinterface,social integration (options like share progress and interact with friends, etc.), goal setting, activity and progress tracking, etc. Set up costs– Initial set up cost would include costs of business development phase and application development phase(Ladley, 2019). For business development, costs of hiring and developing an office space, cost of recruitment, cost of tie-ups, etc. would include while during application development phase, cost of developing and taking application on internet, cost of designing and voice animation, cost of features’ adding like security and payment modes, etc. includes. Fixed Cost –Fitness Pro is an asset light business, which helps it having less cost in its structure. Although, it still incurs few fixed expenditures like rental cost, salary and wages expenditure, other office expenses, application management cost like costs of domain hosting and email, cost of licensing and permits, etc., interest cost, marketing and promotional expenses, tie-up costs, insurance cost, etc. Section 6: Costs and pricing Monetising App– Fitness Pro is in digital sphere and offers free contents to the users and they need not necessarily opt for subscribing packages. Therefore, it is very important for business to generate other revenue sources that can help it sustain. These monetising options other than one-time or monthly fees and paid features are advertisements, sponsorships and affiliate sales. Mark up and margins–Business is expected to keep penetration pricing strategy in the business to gain a foothold and customer base in the industry(Fairchild, 2017). And, later always, it is expected to keep competitive pricing policy. Business would initially keep cost plus maximum 8% mark-up as margin in consideration while deciding for subscription options and prices. 7
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Section 7: Financials Projected cash flow- Projected Cash Flow Statement Fitness Pro (for year ending at 31stDecember, 2021) ParticularsAmount (in£) Opening Cash0 Cash from operation Add: Receipt from subscription9250 Add: Receipt from Ads, sponsorships and affiliate sales7500 Less: Salaries and wages-20000 Less: Selling and promotional expenses-10000 Less: Rent paid-550 Less: Other office expenses-500 Less: Insurance-175 Less: Expenses for application management-475 Less: Tax-120-15070 Cash from Investing Activities Cash paid for office equipment-5000 Cash from financing activities Add: Loan40000 Add: Capital6000 Less: Interest on loan (@6%)-240043600 Closing Balance23530 Plus 3-years forecast- 3 years Forecast Fitness Pro Particulars202120222023 Estimated receipts167502250030000 Estimated office expenses337453506537615 Estimated application expenses475525580 Cash flow235302791032805 Profit/(Loss)(17640)(12090)(5195) Conclusion From the above business plan, it can be concluded that a well-developed business plan not only provides a direction to the execution of the plan but also enables the entrepreneurs in ascertaining whether the proposed project is exactly thought of. It also helps in streamlining all activities related to business development and operations execution. It also helps company understand its business market and direct its efforts in correct direction. 8
References Books and Journal Blackwell, E., 2017.How to prepare a business plan: your guide to creating an excellent strategy, forecasting your finances and producing a persuasive plan. Kogan Page Publishers. Fairchild, J., 2017. DEVELOPING A BUSINESS PLAN.Handbook of Private Practice: Keys to Success for Mental Health Practitioners. Galai, D., Hillel, L. and Wiener, D., 2016.How to create a successful business plan: for entrepreneurs, scientists, managers and students. World Scientific. Genadinik, A., 2015. Business plan template and example: how to write a business plan: Business planning made simple.New York: Semantic Valley LLC. Hofer, C., 2016. The Evolution of Business Plans in International Business Plan Competitions. InModels of Start-up Thinking and Action: Theoretical, Empirical and Pedagogical Approaches. Emerald Group Publishing Limited. Ladley, J., 2019.Data governance: How to design, deploy, and sustain an effective data governance program. Academic Press. Moro Visconti, R., 2019. How to prepare a business plan with excel.Available at SSRN 2039748. Tipu, S.A.A., 2019. Business plan competitions in developed and emerging economies.Journal of Entrepreneurship in Emerging Economies. Watson, K., McGowan, P. and Smith, P., 2015. Leveraging effectual means through business plan competition participation.Industry and Higher Education.29(6). pp.481-492. 9
Appendix Business Plan Template Business NameFitness Pro AddressMercury House, London Email address:fitnesspro_official@gmail.com Company Details:Vision– Let’s make health of everyone better together Mission– Make maximum people aware of fitness benefits Values– quality, availability, customer-centric, user-friendly Goal– To reach user count of 5,000 in one-year -Target revenue of £20,000 in one-year Target market– All digital technology users across UK irrespective of age and location Industry– Digital fitness industry Legal structure– Limited liability partnership between Ms. Julian King, Ms. Kelly Shelby and Mr. Nicholas Fig Product Details:Products–Servicebundlesofexercises,diet-plans,activities, trackers, etc. Unique feature –One-stop solution for all fitness related queries – suggested activity plans, exercises, diet plans, expert advices, activity and calorie tracker, expert appointment referrals, etc. Marketing Plan:Market research –Primaryand secondary market research methods to be used. Barriers to entry –App development and placing over internet, high marketing cost to attract customers towards differentiated product. Placeofpromotion–Digitalmediaespeciallysocialmedia, influencers shout-out, word-of-mouth, referrals, etc. Promotional budget -£5000 pre-launch and 8-10% of revenue every year. SWOT:Strength –Wide variety of products and services directly handled by field experts 10
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Weakness –Wide portfolio of business and services can lead to confusion in operations handling. Opportunities–Covid-19inducedlock-downincreaseddigital presenceandfitnessnecessity,presentsagreatopportunityfor business to exploit. Threats –Multiple applications present and users of such apps are not loyal and can switch anytime Competition:All existing and potential fitness and wellness applications present in digital space of UK Positioning:Mass positioning – initially targeting customers of all age range across UK over the internet Pricing:Initially, penetration pricing to capture the market and as the business grows, competitive pricing policy will be adopted and skim pricing at certain places, where business can gain maximum profit. Distribution channel:Digital distribution medium and intermediary services Sales forecast:Based on best case:£ 20,000 Based on worst case:£ 15,000 Organisational structureFlat structure Operational Plan:Production– Products and services bundle, animated videos Legalcompliances–Alllicensesandregulatorycompliances applicable to digital fitness business. Staff –Team of 10 to 15 staff including help staff Inventory –No physical inventory required Suppliers –Of office equipment and application development Credit Policies:Fortnightly payment policy to both debtors and creditors Start-up ExpensesSeed capital–Loan -£40,000 + Partners’ capital -£6,000= £46,000 Rent Charges -£200 App development charges -£250 Office equipment charges -£5000 11