Starting a New Business: A Gym for Women in Hampshire

The assignment is about starting a ladies' only gym in Hampshire, focusing on female-centric services and facilities. The owner will manage the venture, financed through bank loans and personal savings, with a team of trainers, childcare staff, and receptionists. Key activities include offering a range of fitness classes and equipment designed for women's bodies, as well as providing a comfortable and relaxing environment. The value proposition lies in catering to the specific needs of professional women in Hampshire, with a focus on flexibility, quality, and affordability. Customer relationship is key, with personalized attention, feedback, and improvement opportunities. Key resources include location, infrastructure, and skilled trainers. Marketing channels will be aggressive, including print media, billboards, e-business, radio, discounts, and social media marketing. Pestle analysis highlights government initiatives, economic recession, growth of unemployment, slow population growth, technological advancements, legal issues, and environmental concerns. Five forces analysis reveals low supplier power, high buyer power, high competitive rivalry, high threat of substitution, and high threat of new entry. The owner must navigate these factors to successfully launch and sustain the venture.

BUSINESS
PLAN
The GYM - THE HEALTH PLANET

TABLE OF CONTENTS
Business Concept.............................................................................................................................1
Rational of the concept....................................................................................................................1
Business Location............................................................................................................................1
Physical outlook...............................................................................................................................2
Product and services........................................................................................................................2
Aim and objectives..........................................................................................................................3
Market Analysis...............................................................................................................................3
Market Segmentation and target customers.....................................................................................4
Competitor analysis.........................................................................................................................4
Marketing strategy...........................................................................................................................4
Personnel Plan.................................................................................................................................5
Company ownership........................................................................................................................5
Business details................................................................................................................................5
SWOT Analysis...............................................................................................................................6
Marketing mix of the GYM.............................................................................................................7
Business Model for the GYM..........................................................................................................8
References......................................................................................................................................11

Business Concept
The GYM is a women-only health club which offers a great environment for the ladies to
achieve their respective fitness objectives. The club will have the best health equipment’s and
machines which can maintain a healthy life standard for the women (Allio and Randall, 2010). It
offers exceptional healthy living options at very competitive prices. Along with that The GYM
also offers a variety of aerobic steps and yoga classes for the women.
Rational of the concept
The main idea behind introducing this business concept is to make people aware about
the healthy lifestyle. It has been generally seen that males are highly conscious about their health
but on the side females are seen less concerned about all these things (Bangs, 2002). Further it
has been noticed that urban professional women are busy with their active life and they have
very little time to spend on fitness. However they are conscious about maintaining a healthy life
standards. Hence in this manner this sound a great opportunity for the new venture the GYM.
Business Location
The GYM is placed in Hampshire which is a county on the Southern coast of England in
UK. It is the most populous ceremonial county in the United Kingdom. It is somewhat an
affluent county with a strong Gross Domestic Product and per capita income. Hampshire has a
very lower level of unemployment as compared to the national average. There many places for
tourist attractions also (Berry, 2008). The demographic conditions of the county are also
favourable. Hampshire also holds a milder climate as compared to the other areas of British Isles.
Hence it can be said that females in Hampshire are capable of paying the fees for health fitness at
the GYM. By seeing all the above conditions, it can be concluded that this business location is
appropriate for the new business.
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Physical outlook
The club is centred on a 5500 square foot location. It has three exercise rooms, one
primary equipment room and one room for child care. The place can accumulate 110 people at
one point of time.
Product and services
The GYM offers wide range of fitness tools which are specially designed for female’s
body in bio-mechanical manner. These are as follows:
 Step-mills
 Steppers
 Treadmills
 Upright and recumbent bikes (Bowhill, 2008)
 Stairmaster
 Rower
 Cross aerobic trainers
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Figure 1 Sample design for the GYM –Health Planet

 Stairmaster
Services related to aerobic steps, yoga classes, muscle conditioning etc, will also be given
to the ladies. Professional trainers will be hired so that they can teach effective fitness lessons to
the clients. All the health machines will be of high quality and durability. After the completion of
training a certificate will be given to the club members.
Aim and objectives
The major aim of this venture is to open a highly flexible health club for the females in
Hampshire. The mission of the GYM can be described in the following manner:
 To create an workout environment for ladies which an promote confidence in them
 To help the females in achieving their respective fitness goals
 To improve their health standard which can help them in leading an stressful and
enjoyable life
There are financial objectives of the GYM:
 To gain 60% of the capacity by the end of first year of business operations
 To acquire 200+ membership by the end of first year of business operations
 To increase the membership by 20% by the end of second year of functioning
Market Analysis
According to the State of the UK Fitness Industry Reports 2015, UK health and fitness
industry is in good shape. It is having more clubs, more members and greater market value than
ever before. It has been noticed that 1 in every 8 people in the nation are members of a GYM.
The industry has experienced another year of positive growth along with increase of 5.4% in the
value, 3.3% in the number of fitness services and 5.8% increase in the number of members (The
UK Fitness Industry Report, 2014). The growth in the sector has been noticed from the rapidly
growing low cost market in the private sector. At present the total market value is projected at
£4.3 billion that is up to 5.4%. There are now 6312 fitness club in UK and the figure has
increased from the last year that is 6312.
Taking into consideration the market of Hampshire, it can be said that county is on the
move. Currently the population is around 1644249 and most importantly the growth has been
driven by the increased employment in the county. It is the major reason for the presence of
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urban professional women in the county who is among the target customers (Health & fitness
industry guide, 2015).
Market Segmentation and target customers
The GYM will focus on two customer groups
 Young urban professional women – These are professional working females who are
concerned about their health and fitness (Brunsman, DeVore and Houston, 2011). They
prefer to remain in a good shape body due to certain requirements of professional life and
in order to avoid the work stress.
 Young mothers with children – This target segment can be working or non-working.
They also expect to lead a healthy lifestyle. However the ratio of this target segment will
be low for the GYM.
Competitor analysis
Following are the major competitors for The GYM in Hampshire:
 The Curves Women Gym
 Meridian Fitness Club
 Gymophobics women only gym
 Downtown Fitness
The competition level for the GYM is high but not extreme. It is really important for the new
venture to have some competitive edges to achieve differentiation in terms of services (Collis
and Montgomery 2005). The competitive advantage here will be the environment which is
created for the females. They will feel more relaxed and comfortable in a gym that is solely
focused on them. Another competitive edge for The GYM, is the childcare center which is
visible from the workout floor. It means the young mother will be able to see their kids while
doing exercise. In this way the new business will be different from those of its competitors.
Marketing strategy
The GYM club will be marketed by using several mediums such as beauty salons,
boutiques, tanning salons located in Hampshire (Jones, 2009). In order to attract large group of
members, business will offer the first month membership for free. Print media as well as
broadcast media will be used to promote the name. At present the latest sensation within the
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market is social media. The people will be able to see the advertisements and detail related to
The GYM on different types of social media platforms such as Facebook, Twitter, etc (Kraten,
2010).
Personnel Plan
Following people will be involved in the new business venture:
 LEAD TRAINER – A lead trainer will be appointed who will look after all the personal
trainers about their training style, coaching, health advice, diet advice etc (Martin, 2002)
 PERSONAL TRAINERS – Personal trainers will be given to the members on being
demand. These trainers will provide knowledge and expertise to the ladies. Each trainer is
AFLCA certified and highly experienced
 CHILDCARE STAFF – These people will be appointed to serve clients who are unable
to work out if they cannot find a baby sitter.
 RECEPTIONIST – A receptionist will be appointed who will look after the incoming
visitors to the club. She will also be handling the office and administration work (Morato,
2013).
Company ownership
The gym is a women only fitness club that offers fitness classes, exercise equipment, a
weight reduction program, and a childcare center. There is no partnership, the business is opened
under the format of Sole proprietorship. The total investment of the project is 7 lak out of which
5 lak is arranged through bank loan and rest 2 lak is arranged through personal savings.
Business details
 Location - The business is located in southern part of Hampshire. The environment
surrounding the location is very fresh and peaceful. It can be said that location is very
favourable for the club and it is expected that customers can come in large numbers
(Reading, 2004)
 Hours – Very flexible timings have been given for the ladies. The GYM will open at 8am
in the morning and will close at 9pm at night.
 Staff – One Lead Trainer, 2 Personal Trainers, 2 childcare staff and 1 receptionist will be
appointed. All the trainers will be certified and expertized.
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 Equipment – Following equipment will be provided for the ladies which includes, Step-
mills, Steppers, Treadmills, Upright and recumbent bikes, Stairmaster, Rower, Cross
aerobic trainers , Stairmaster etc. These machines are specially designed for the female
bodies (Allio and Randall, 2010)
 Fee – The membership fee is 40 £ per month and the personal trainer fees is 5 £ per hour.
SWOT Analysis
Strengths Weaknesses
 Excellent Fitness services for ladies
 A very relaxed and comfortable
environment at the club
 Additional service of Child care center
 First mover advantage
 Highly urbanized business location
 Mission and vision is in accordance
with the new venture
 Highly certified health trainers
 Presence of other fitness clubs
 High operational costs
 Lack of awareness among the people
 Inability to maintain liquid cash
 Lack of brand image
Opportunities Threats
 Requirement of hard-core promotion
and advertising
 Excellent customer services
 Establishing brand image on the basis
of quality services
 Increasing health concerns among the
people
 Female’s desire for fit and healthy body
 Competition from other fitness clubs
 Economic impact of recession,
financial crisis etc
 Decreasing purchasing power of
customers
 Customer dissatisfaction
 Issus related to cash management
 High investment costs
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Marketing mix of the GYM
 Product Mix – It is related with the services which are to be marketed towards the
customers. The GYM offer health and fitness services especially for women along with
the services of aerobic steps, yoga classes etc. The gym machines are specially designed
for a female body.
 Price Mix – This element of marketing generates sales and profits for the business. The
GYM will follow combination of competitive and premium pricing approaches. The
membership fee is 40 £ per month and the personal trainer fees is 5 £ per hour (Bowhill,
2008)
 Place mix - It describes how the products and services are distributed to the customers.
The new business is positioned southern parts of Hampshire. The GYM will open at 8am
in the morning and will close at 9pm at night.
 People mix – The most essential element in the marketing mix is the use of efficient and
skilled people. The staff at The GYM is highly professional and skilled. The members
will be given personal trainers for the services (Brunsman, DeVore and Houston, 2011).
 Process Mix - It is related with systems and processes which are used to deliver the
services. , Step-mills, Steppers, Treadmills, Upright and recumbent bikes, Stairmaster,
Rower etc, are some machines which are specially designed for the female bodies.
 Promotion Mix – The product or service which is designed needs to be marketed. For the
GYM, an aggressive promotion campaign will be adopted. Traditional as well as modern
methods of marketing will be adopted. Approaches such as print media, billboards, e-
business, radio, discount on membership etc will be adopted for the purpose of promotion
(Collis and Montgomery 2005). Social media marketing will also be used to connect with
large number of customers
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 Physical evidence – It is an element of service mix on the basis of which consumer start
making judgements related to the services. The GYM will have a great infrastructure,
high quality fitness machines, professional environment and an amazing atmosphere
(Kraten, 2010).
Business Model for the GYM
New Business
Drivers
Core
Customers
Superior Value Proposition Channels Key Activities Value Chain Based
ResourcesCompetition / Competitive
Strategy
Relationship and Network
Alliances
Business
Structure
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Figure 2 Physical Evidence of the GYM

Costs and Cost Budget Revenue Streams & Cash flow
 Business drivers – These are regarded as the group of people who come jointly in order to
start a new business. Here the GYM is started under a sole proprietorship business. The
owner will be responsible for managing and handling all the liabilities and
responsibilities. The finance is arranged through bank loan and through personal savings.
Along with the owner there will be lead trainer, personal trainers, child care staff and a
receptionist (The UK Fitness Industry Report, 2014).
 Key Activities – The major aim of this venture is to open a highly flexible health club for
the females in Hampshire. The GYM offers wide range of fitness machines which are
specially designed for female’s body in bio-mechanical manner. Services related to
aerobic steps, yoga classes, muscle conditioning etc, will also be given to them
(Brunsman, DeVore and Houston, 2011). Professional trainers will be employed so that
they can teach effective fitness lessons to the clients.
 Value proposition – The club is for ladies only. They will be getting comfortable and
relaxing fitness environment. All the equipment and tools will be of high quality and
durability. The infrastructure will be amazing and the first month membership to the
people will be given for free (Collis and Montgomery 2005)
 Customer relationship – All the members in the club will be given personal attention.
Their feedbacks and queries will also be obtained in order to bring improvements in the
services at constant intervals. Child care center has been established for the females who
are unable to work out if they cannot find a baby sitter.
 Key Resources – Location, infrastructure and manpower are the key resources for every
business. The location of Hampshire is very favourable and there is a presence of urban
professional women in the county. All the trainers will be certified and highly skilled.
 Channels – Aggressive form of marketing will be used for the promotion. Approaches
like print media, billboards, e-business, radio, discount on membership etc will be
adopted for promotion (Health & fitness industry guide, 2015). Social media marketing
will also be used to connect with large number of customers.
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Pestle Analysis
Political - Economic
 Government free initiatives and
subsidised admissions (Health &
fitness industry guide, 2015).
 Budgets for health clubs, spas etc are
being cut for fulfilling other objectives
 Programs for promoting healthy eating
and exercise.
 Economic recession
 Growth of unemployment
 Slow growth and ageing of the
population
Technological Legal
 Modern and sophisticated gym
equipment (Kraten, 2010)
 New methods of promoting business
 Vast customer information
 Health and safety issues for customers
 Access for the disabled
Environmental Social and cultural factors
 Green sustainability  UK population is facing issues of
overweight and obesity (The UK
Fitness Industry Report, 2014)
 Growing requirement among people to
maintain physical and mental health
 Opportunity to reduce health issues
associated with obesity and inactive
lifestyle
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Five Forces Analysis
 Supplier power - It is easy for the suppliers in the fitness industry to drive up the prices
for this kind of services. It is because the product in this industry is unique and valuable.
The cost of switching from one option to another is high.
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 Buyer power – The bargaining power of buyers is very low in the industry. The service
providers cannot compromise on prices on a high level (Health & fitness industry guide,
2015).
 Competitive rivalry – The competition rivalry is high in the industry as many fitness
clubs have been opened and are giving services to the clients. In presence of high
competition, equally attractive products and services are available for the users.
 Threat of substitution - There are some substitutions for fitness clubs such as online
yoga classes, private health trainers etc. Hence it can be said that threat of substitution is
high for the GYM (The UK Fitness Industry Report, 2014)
 Threat of new entry – Fitness market has free entry and free exit. There are no barriers to
entry hence new clubs can n enter easily.
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References
Allio, J. R. and Randall, M. R., 2010. Kiechel's history of corporate strategy. Strategy &
Leadership. 38(3). pp.29 – 34.
Bangs, D., 2002. Business Planning Guide. Kaplan publishing.
Berry, T., 2008. The Plan-as-You-Go Business Plan. Entrepreneur Press.
Bowhill, B., 2008. Business Planning and Control: Integrating Accounting, Strategy, and
People. John Wiley and Sons.
Brunsman, B., DeVore, S. and Houston, A., 2011. The corporate strategy function: improving its
value and effectiveness. Journal of Business Strategy. 32(5). pp.43 – 50.
Collis, J. D. and Montgomery C., 2005. Corporate Strategy. McGraw Hill Professional.
Health & fitness industry guide, 2015. [PDF] Available through:<
ww.bl.uk/bipc/pdfs/Health_and_Fitness_Industry_Guide.pdf>. [Accessed On 7th
December 2015]
Jones, R., 2009. Business Planning Pocketbook 3/e. Pocketbooks.
Kraten, M., 2010. Business Planning and Entrepreneurship: An Accounting Approach. Business
Expert.
Martin, J., 2002. The Straightforward Business Plan. Straightforward Co. Ltd.
Morato, A. E., 2013. Business Decision Making. eBookIt.com
Reading, C., 2004. Strategic Business Planning: A Dynamic System for Improving Performance
& Competitive Advantage. Kogan Page Publishing.
The UK Fitness Industry Report, 2014 [Online] Available through:<
http://www.futurefit.co.uk/future-fit-training/news/2013/10/02/uk-fitness-industry-
report/>. [Accessed On 7th December 2015]
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