Business Plan for FitnessPro

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.

The Pitch Project
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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
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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).
This project is a pitch for developing and launching fitness application named
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
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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. Suggested links for useful articles, books and other content will also be provided.
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 is a
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, marketing and sponsorships, finance, HR, etc. For handling
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.
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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 at [e-mail] on 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.
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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
Questions Choices
(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
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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 (both desktop and mobile version), push notifications, easy interface, 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.
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Section 7: Financials
Projected cash flow -
Projected Cash Flow Statement
Fitness Pro
(for year ending at 31st December, 2021)
Particulars Amount (in £)
Opening Cash 0
Cash from operation
Add: Receipt from subscription 9250
Add: Receipt from Ads, sponsorships and affiliate sales 7500
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: Loan 40000
Add: Capital 6000
Less: Interest on loan (@6%) -2400 43600
Closing Balance 23530
Plus 3-years forecast -
3 years Forecast
Fitness Pro
Particulars 2021 2022 2023
Estimated receipts 16750 22500 30000
Estimated office expenses 33745 35065 37615
Estimated application expenses 475 525 580
Cash flow 23530 27910 32805
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.
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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.
In Models 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.
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Appendix
Business Plan Template
Business Name Fitness Pro
Address Mercury House, London
Email address: [e-mail]
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 – Service bundles of exercises, 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 – Primary and 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.
Place of promotion – Digital media especially social media,
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
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Weakness – Wide portfolio of business and services can lead to
confusion in operations handling.
Opportunities – Covid-19 induced lock-down increased digital
presence and fitness necessity, presents a great opportunity for
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 structure Flat structure
Operational Plan: Production – Products and services bundle, animated videos
Legal compliances – All licenses and regulatory compliances
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 Expenses Seed capital – Loan - £40,000
+ Partners’ capital - £6,000 = £46,000
Rent Charges - £200
App development charges - £250
Office equipment charges - £5000
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Promotional expenses - £3500
Financial Plan Expected profit/loss – 1st year: (17,640)
2nd year: (12,090)
3rd year: (5,195)
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