Keep Active Fitness Gym: Entrepreneurial Portfolio and Execution

This assignment presents a comprehensive business plan for "Keep Active Fitness Gym," a virtual reality-based fitness center. The report begins with a pre-plan outlining the gym's concept, target market, and services. The main body details the execution phase, applying theoretical and conceptual elements such as the Four Stage Model and Porter's Generic Strategies. It then explores the application of marketing tools (social media, 4Ps), finance tools (journal entries, cash flow statements), strategy tools (SWOT, PESTLE), and human resource management techniques. The plan also examines various growth strategies, including market penetration, to ensure the gym's expansion and success. The report includes an introduction, main body, conclusion, and references, providing a detailed analysis of the business idea and its potential for growth. The gym will offer a range of services, including virtual reality equipment, personal training, and specialized studios, aiming to attract a diverse clientele and achieve a competitive advantage.

Keep Active Fitness Gym

Table of Contents
INTRODUCTION.........................................................................................................................3
MAIN BODY..................................................................................................................................3
Pre-plan........................................................................................................................................3
Plan: Execution............................................................................................................................4
Application of Appropriate Marketing, Finance, Strategy and Human Resource Management
Tools.............................................................................................................................................6
Examination of Growth Strategies...............................................................................................8
Report Presentation......................................................................................................................9
CONCLUSION............................................................................................................................11
REFERENCES............................................................................................................................12

INTRODUCTION
Today, a lot of people are considering to start their own business which can be beneficial
as the business can make profits ad generate revenue. The business idea chosen for this report is
opening a new gym named “Keep Active Fitness Gym”. The gym will target customers of all age
groups and also provide extensive training in order to keep them fit and healthy. The report
comprises of a pre-plan that explains and justifies the same (Chan and Li, 2017). The execution
of the idea is explained with the help of different theoretical and conceptual elements. Different
Marketing, Finance, Strategy as well as Human Resource Management tools, techniques and
models are also applied to the start-up business idea. Lastly, different strategies of growth are
also explained that will ensure that the business is growing as well as profitable.
MAIN BODY
Pre-plan
The business idea that is selected for this report is that of opening a new gym with the
name “Keep Active Fitness Gym”, which will be based on Virtual Reality. The gym will target
people of all age groups and will ensure that a seamless experience is provided to them. The gym
will consist of the equipment that will run on the latest technology. It will be located in an area
where there are a lot of people instead of a place where there is no human movement. The
workforce or the staff will comprise of highly skilled and trained gym trainers and professionals
who will guide the customers in their exercises. Other staff including the receptionist as well as a
nutritionist will also be needed to help the customers sign-up for their membership at the gym.
The gym will require a marketing plan in order to generate awareness about the same
among people (Deligianni and et. al., 2016). For this, the gym will make use of different
strategies like digital marketing, local advertising etc. The services that will be provided at the
gym will be customer friendly like yoga, low-impact aerobics, intense cardiac workouts etc. All
the equipment that will be installed in the gym, will be based on the safety and security
standards. The different risks will be assessed and analyzed so that there is no problem in the
future. The gym going experience of the customers will be made more entertaining by
incorporating various techniques. There will be various promotions that will be carried out like
the customers will be offered with loyalty cards and other kinds of discounts.

The gym will be open and function for six a week during which various activities will be
allocated to the different days. Yoga classes will be held every morning and evening whereas
aerobic and Zumba dance sessions will be held thrice in a week. In order to be successful and
attract more competitors as compared to the competitors, they design of the gym will be made
creative and attractive by using various colors and other attractive things. The cleanliness of the
gym as well as the equipment will be maintained at all times. Any kind of damage will be
repaired at the earliest so that the customers do not face any problem (What Qualities Make a
Gym Great?, 2020). The gym will only hire professionals including yoga, boxing and
weightlifting professionals. They will be certified and specialized in their fields. The funding for
the gym will be acquired from various sources like bank loans, friends and family, angel
investors etc.
Also, the staff will be available at all times and will walk around to offer help in case
anyone needs help with the equipment. Also, the gym will have a functional training area,
personal training, steam and sauna rooms as well as a corner for healthy shakes and snacks.
There will also be a women’s only studio, with highly trained and skilled female professionals
who will provide training to the female customers (DiVito and Bohnsack, 2017). This idea will
attract lot of women as many times they feel uncomfortable and shy since there are many people
in the gym. Also, since this is a new start-up gym, a women’s only corner will help the
customers to get comfortable and familiarize themselves regarding what the gym is all about.
This way, they will be able to work-out confidently as well as attain their personal goals.
Plan: Execution
Application of Theoretical and Conceptual Elements
The application of various theoretical as well as conceptual elements in context to Keep
Active Fitness Gym are explained below –
Four Stage Model
Concept Generation: The concept chosen for this report is that of opening a new gym
that will be based on the idea of virtual reality. The gym will provide various facilities to the
customers including personal training, steam and sauna rooms, women’s only gym etc. Certified

and highly trained professionals and trainers will be hired to help the customers with their
training as well as equipment.
Project Assessment and Selection: The idea will be assessed properly and the different
ways in which it can be implemented will be selected. Like, for example- in order to raise capital
and funds for the gym, various sources like angel investors, bank loans, friends and family can
be used (Engel and et. al., 2017). Also, different facilities that should be included in the gym,
including the staff and equipment will also be analyzed effectively.
Product Development: In this stage, the gym will be set up with a staff that is trained
effectively and certified. Also, all the equipment will be set in place and receptionists as well as
other staff members of the gym will help the customers in signing up for the membership at the
gym. Various promotional activities will also be carried out in order to attract more customers.
Product Commercialization: This stage will particularly involve developing a marketing
campaign, creating plans about how will the gym be advertised in the market, a sales plan as well
as developing pricing strategy. This will make the overall process of setting up the gym and
carrying out various activities in a structured manner without any problems or confusion. The
suppliers of the equipment will also be contacted regarding any further requirement of anything.
Porter’s Generic strategies
Porter’s generic strategies were developed by Michael Porter that can be used by
organizations to determine strategies. There are three strategies in this model that are described
below in context to Keep Active Fitness Gym.
Cost Leadership: In this strategy, a company targets a big market and gains a competitive
edge by offering the lowest price possible to the customers (Porter’s Generic Strategies, 2020).
A company can do this by either offering lowest price in the market or ensure that it has a large
share in the market along with average prices. In both these cases, the main idea of the company
is to keep its prices as low as possible so that a large number of customers are attracted.
Differentiation: In this strategy, the company seeks to be different from and unique from
others in the market (Johnson, 2016). The company selects either one or more attributes that the
customers think are valuable and important. It then positions itself in a unique and different way

so that the buyers are attracted. If the company wants to succeed using this strategy, it should
have strong research and development.
Focus: Organizations that choose this strategy select a segment of customers within the
market and tailor their strategies in such a way so as to set themselves apart from the
competitors. This strategy has two variants including cost focus, in which the firm gains a cost
advantage and differentiation focus, wherein it seeks to be different from its competitors in the
market.
Therefore, for Keep Active Fitness Gym to be successful in the market, it will have to
adopt both differentiation as well as cost leadership strategies.
Application of Appropriate Marketing, Finance, Strategy and Human Resource Management
Tools
The different tools, models and techniques relating to the different functional areas of the
gym are explained below as follows –
Marketing Models and Tools
The gym can make use of various marketing tools as well as models, social media being
one of them (Kristinsson, Candi and Sæmundsson, 2016). In order to attract large numbers of
customers, it can advertise on various social media platforms like Facebook, Instagram, Twitter
etc. It can also market itself by offering various discounts as well as loyalty cards. The 4Ps
framework can also be applied to enhance the revenues-
Product: The gym will provide all new equipment that will run on the latest technology.
Various other facilities will also be provided to the customers like steam and sauna rooms,
women’s only gym etc.
Price: The prices of the memberships will be based on the time duration for which a
customer buys the same (Lovan, Murray and Shaffer, 2017). It will also depend on the price of
equipment used in the gym.
Place: The gym will be set up near the residential area so that it is easy for the customers
to visit the gym any time of the day.

Promotion: Various promotional activities will be carried out like social media
advertising, advertising through billboards and magazines etc.
Finance Tools
In order to be successful financially and keep a track of profits as well as revenues, the
respective gym can prepare and maintain journal entries, ledgers etc. It can also maintain various
cash statements like cash-flow statement in order to keep a track of cash inflows and outflows
from the system (Packard, Clark and Klein, 2017). The financial statements can be analyzed and
interpreted in order to monitor if the gym is generating profits or running in loss.
Strategy Tools
In order to develop strategies that are effective, the gym can use various strategic tools
and frameworks like SWOT, PESTLE, Porter’s Five Forces Model etc. in order to understand its
strengths, weaknesses as well as the various opportunities and potential threats that can impact
its overall performance.
Strengths: One of the major strengths of the Keep Active Fitness Gym is that it will be
based on virtual reality, apart from providing traditional training to the customers.
Weaknesses: The gym does not have enough space to offer a lot of activities to the
customers like other gyms.
Opportunities: The gym has an opportunity to use the available space in such a way so as
to offer as much activities and facilities to the customers as possible. Also, it can offer the
membership at a low price.
Threats: The major threat that will be faced by the gym is competition from already well-
established gyms in the locality that already have loyal customer.
Human Resource Management Tools and Techniques
In order to manage its staff effectively, the management of the gym should recognize the
efforts of the staff and provide them various benefits and rewards so that they are loyal to it and
engaged in their jobs (Reymen and et. al., 2017). New hires should be provided with effective
coaching and mentoring and provided training so that they acquire new skills and knowledge
about the different equipment in the gym. This will help the gym in running its operations

smoothly without any kind of problem. Lastly, only trained and highly skilled professionals
should be hired to provide personal training to the customers.
Examination of Growth Strategies
Growth strategies help an organization in expanding and growing its business in different
untapped markets. They also assist in achieving long-term goals and objectives. Some major
growth strategies in context to Keep Active Fitness Gym are explained below.
Market Penetration - In this strategy, a company markets its products within the market
that it has already been operating it. If Keep Active Fitness Gym decides to implement this
strategy, it will have to open the gym within an already existing market. The main idea of a
company behind implementing this strategy is to increase its overall share in the market using
existing or current products or services (Rönkkö and Lepistö, 2016). The strategy can be
implemented by reducing the price of products and services or by increasing the amount of
marketing activities in order to attract customers away from the competitors. This strategy helps
in enhancing the brand awareness as well as creating a positive image in the minds of customers
because there is aggressive pricing in the market.
Product Development - This growth strategy involves developing new products and
offering them to the customers within the existing market. In order to grow its business,
respective gym can develop new activities or services and offer the same to customers of existing
market. New products or services provide value to the customers and also improve the levels of
their satisfaction with the brand previously. A company can enhance its business activities as
well as grow its business by implementing this strategy. This will lead to more customers getting
attracted and purchasing its products and services. The company can also enhance its business by
improving its products or introduce new features in the products. The products can then be
marketed through various channels.
Market Development – This strategy is also known as market expansion wherein a
company sells its existing products in a new market (Schaper, 2016). This strategy can either be
opted due to immense competition and no chances of growth in the existing market or if it does
not find any new market for its products. This strategy can be used by respective gym if it wants
to expand its operations in a new market. Different distribution channels can be used by
changing the content of advertisements and promotions. Implementation of this strategy can

provide the company access to different opportunities of growth. It can attract an increased
number of customers and thus improve its profits as well as revenues. Also, if it is implemented
in a proper manner, the company can gain a competitive edge against competitors.
Diversification – This is another strategy for growth that can be used by organizations in
order to grow their businesses. This strategy involves developing new products and serving or
marketing them in a completely different market. The risk involved in this strategy is high as
compared to any other strategy because it is not certain. There is a possibility of the product not
being getting accepted by the customers of the new market (Schneckenberg and et. al., 2017).
Therefore, since Keep Active Fitness Gym is a new business idea, it should avoid implementing
this strategy to grow it business as it may impact its performance as well as profitability
adversely. But if the gym still decides to opt this strategy, it should plan the implementation
effectively and should use market research as a tool.
Report Presentation
Business Plan
A Business Plan can be defined as written document that describes the nature of the
business, its financial background, strategies for marketing and sales, statements about its profits
and loss. It is an important tool that can be used by organizations across different industries in
order to carry out their operations effectively and make effective decisions.
Executive Summary
The business plan is based on opening of aa new gym named, “Keep Active Fitness
Gym” that will be based on virtual reality (Storey, 2016). The gym will promote itself through
various channels like social media, advertising through billboards and magazines etc. so that a
large number of customers are attracted. Funding which will be obtained through various sources
will be used to set up and install all the equipment. It will be maintained and controlled so that
there is no damage caused to the same.
Company Description
Keep Active Fitness Gym is a gym that is basically based on Virtual Reality with various
activities like dance, yoga and aerobics. The gym will also provide various other facilities like

women’s only gym, personal training etc. The gym will comprise of a highly skilled and trained
staff and the trainers will have proper certifications. The equipment which will be installed in the
gym will be based on the latest technology.
Market Analysis
The gym might face competition from competitor gyms that are already well established
and have a loyal customer base (Stroe, Parida and Wincent, 2018). A research can be conducted
for the competitors so that the management of respective gym will get an idea about the
competitors’ strategies and therefore it can develop effective plans to overcome the same. The
market research will also help in developing a better understanding about the target customers
and what are the aspects they consider as valuable and important.
Marketing and Sales
Respective gym will opt for different ways in order to market and promote itself among
the customers. It can use different channels, various social media platforms being one of them,
magazines, blogs, billboards etc. The gym can also offer various discounts and other benefits to
the customers who buy memberships from it. This will help in attracting a large number of
customers and the gym will also be able to retain the loyal ones.
Funding
The gym can gain funding for its business from different sources like angel investors,
bank loans etc. Bank loans are comparatively easier to get. On the other hand, the owners of the
gym can also put in money from their savings or can take help from family as well as friends.
Funds that are obtained will be used to purchase equipment, provide training to the staff and
installing virtual reality systems in the gym.
Evaluation and Control
This is the last but one of the most important stages in a business plan (Yang and
Gabrielsson, 2017). Before the implementation of the plan, it will be carefully and properly
evaluated by professionals and if any kind of mistakes or errors are identified, they will be
rectified so that they do not lead to any kind of problems in the future.

CONCLUSION
From the above report, it can be concluded that when a new business idea is developed
and presented inn the market, there are various considerations that should be taken in to account
for it to be successful. Various theoretical concepts can be implemented so as to justify the idea.
Apart from this, the business can implement various strategies like market development, market
penetration, diversification etc. of growth in order to expand its operations in the existing market
or in a completely new market. Thus, if these strategies are implemented effectively, they can
help the company in increasing its revenue as well as profits.

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