Dream Fitness: Business Plan Report - Business Fundamentals Analysis

The report details the business plan for Dream Fitness, a startup women's-only fitness club. It provides an executive summary, company overview, product/service plan, marketing and sales plan, and financial plan. The company aims to provide a supportive environment for women to achieve their fitness goals, including childcare services for mothers. The report includes a SWOT analysis, market analysis of the gym and fitness industry, and financial projections. The business plan outlines the company's vision, mission, legal structure, management, and employees. The marketing plan covers promotion, sales strategies, segmentation, targeting, positioning, internet presence, and pricing. The financial plan includes start-up costs, sales projections, and income projections. The report concludes with an action plan, timeline, and references, offering a comprehensive analysis of Dream Fitness's potential for success.

12/14/2019
Running head: BUSINESS FUNDAMENTALS
Business Fundamentals
Dream Fitness

BUSINESS FUNDAMENTALS 1
Executive Summary
The aim of this report is to present a business plan of Dream Fitness which is a start-
up business that is offering a good environment for women to focus on their health and
fitness. The business plan of Dream Fitness includes different aspects such as overview of
business, marketing and sales information, financial projections, management and employees,
products and services, internal analysis, sales strategy, and many more. The business plan has
highlighted that Dream Fitness is a fitness club that focus on professional, housewife, and
young mothers who dream of living a healthy lifestyle but due to some responsibilities they
are unable to do so. The report has revealed that the company has setup a child care center
where young mothers can handover their child and focus on their fitness. Further, the gym
and fitness industry is growing at fast pace because people started giving importance to their
health and fitness after encountering with different health issues. This leads to offering
opportunity for Dream Fitness in the market to successfully operate in the market. Further,
the report has presented how business has divided its target audience in order to get a ideal
audience whom it can target its marketing efforts. In the end, the report has presented the
financial projections for the entire business plan, which reveals that the profit of the business
that is Dream Fitness will increase slowly with time.

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Table of Contents
Executive Summary...............................................................................................................................1
Company Overview...............................................................................................................................3
Introduction of the Dream Fitness.....................................................................................................3
Name and Location............................................................................................................................3
Vision and Mission.............................................................................................................................3
Legal Form of Business Ownership....................................................................................................4
Management and Employees............................................................................................................4
Product/Service Plan.............................................................................................................................4
Purpose of Dream Fitness..................................................................................................................4
Features and Benefits........................................................................................................................5
Value Proposition..............................................................................................................................5
Suppliers............................................................................................................................................6
Internal Analysis....................................................................................................................................6
SWOT Analysis...................................................................................................................................6
Strength.........................................................................................................................................6
Weakness......................................................................................................................................7
Opportunities................................................................................................................................7
Threats...........................................................................................................................................7
Market Analysis of Gym and Fitness Industry....................................................................................8
Marketing and Sales Plan......................................................................................................................8
Promotion..........................................................................................................................................8
Sales Strategy..................................................................................................................................10
Segmentation..............................................................................................................................10
Targeting......................................................................................................................................11
Positioning...................................................................................................................................11
Internet............................................................................................................................................12
Pricing Strategy................................................................................................................................12
Financial Plan.......................................................................................................................................13
Start-up Cost....................................................................................................................................13
Sales Projections..............................................................................................................................13
Income Projections..........................................................................................................................13
Action Plan and Timeline.....................................................................................................................14
Conclusion...........................................................................................................................................15
References...........................................................................................................................................16

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BUSINESS FUNDAMENTALS 4
Company Overview
Introduction of the Dream Fitness
Dream Fitness is a health club only for women that work on delivering a personalized
environment for women to follow their goals of fitness. Dream Business make use of best
equipment and best program of training in this ground. The focus of the business is to prepare
its clients for the success by making use of best programs of weight-management. This
program is effective and encourage women to follow a positive lifestyle. The focus of Dream
Fitness is on the urban professional woman who are involved in the active life and get less
time to invest look at their fitness. This business also looks after young mothers who are in
search of a fitness environment that focuses on their unique needs.
Name and Location
The name given to this fitness club is majorly considering those women who always
dream for fitness but due to their professional and personal responsibilities they are unable to
do so. Therefore, the name of the business has been registered as Dream Fitness. The
business is established in the Delta city of Canada. It is placed in the affluent area where there
are different health clubs but none of them serve only women. Delta is placed at the 29th rank
as the rickets community of Canada with average household new worth of $1,263,460
(Naraghi, 2019). Dream Fitness the health club is located in the Tsawwassen Mills which is
one of the famous and affluent shopping malls in Delta.
Vision and Mission
The vision and mission of Dream Fitness is to offer a workout environment focusing
on women that boost their confidence. The business also promotes the success of its
customers in fulfilling their goals of fitness. Besides this, celebrating their success and
support them in setting new goals of fitness.

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Legal Form of Business Ownership
Dream Fitness is operating as a partnership business between Joan George and
Michael Marry. Joan George is accountable to manage the day to day operations of Dream
Fitness and Michael Marry is managing the responsibilities of accounting in the business. In
all it is being said that the business is co-owned by both of them.
Management and Employees
Joan George is the operations head and the manager and also the lead trainer for the
Dream Fitness. She holds the experience of around ten years in the gym and fitness industry
which motivated her to bring a concept of women fitness where women are inspired to focus
on their health and fitness. She used to work as a manager in one of the country’s reputed
fitness consultation and therefore she has also earned a reputation of effective workforce
supervision. Michael Marry was a financial analyst in a firm of Canada and holds the
experience of twelve years in the accounts and finance industry.
The other employees plan that is followed by the Dream Fitness are one lead trainer,
two childcare staff for those women who are young mothers, two personal trainers, and one
receptionist.
Product/Service Plan
Purpose of Dream Fitness
The purpose of this business is to motivate women who have lost their confidence due to
gaining weight whose main reason is their professional and personal life. In order to do so,
the lead trainer not just provide proper schedule and routine of exercising and diet but she is
also providing them consultation regarding grooming their confidence. In addition to this,
other purpose of Dream Fitness is discussed below:
 Acquiring more and more memberships every year.
 Exceeding the capacity of the class on monthly basis.

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Features and Benefits
The main features of Dream Fitness business are it offers professional personal trainer
who are expertise in providing knowledge and holds the expertise in creating and executing
the fitness program. The trainer hired by the company are certified and holds standard first
aid knowledge. Besides this, all the trainer holds the specific qualification and training that
allows them to offer each customer with individually created program.
In addition to this, the club also offer child care center for those young mothers who are
unable to work out due to their responsibility of caring their child if they are unable to find a
babysitter. Here, at Dream Fitness they get chance to work out and forget their stress of
watching over children.
The benefits that are delivered by Dream Fitness to its clients are relaxing and
comfortable environment with the programs that only focus on women. Besides this, the
business has created a childcare center which is a benefit service for young mothers. This
childcare center is visible from main floor of workout such that mother can also look after its
child while working out and guide the care taker about other necessary things for her child.
In addition to this, this fitness center not just help women in working out or other diet
plans, but also provide consultation services to those who have lost their confidence due to
gaining weight.
Value Proposition
A value proposition is said to be a promise of value that is delivered, communicated,
and acknowledged by a business. It is also said as a belief from the client regarding how the
value by the business will be carried, experienced and acquired (Morgan, 2011). A value
proposition could be applied to the complete business or any specific part, or product or
service, or customer accounts. Designing a value proposition is one of the major parts of the
strategy of a business. Value proposition is also a statement that highlights, clear,

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demonstrable, and measurable benefits that consumers can get after availing the specific
product or service in the market. This must convince consumers that specific product or
service is superior in comparison to other available products or services in the market
(Camlek, 2010). This proposition can support business in attaining competitive advantage
when customers purchase that specific service or product over competitor’s product because
they get higher value. The value proposition for Dream Fitness is “There is high need not for
women to commit to a sole gym or a fitness club that understands them well”.
Suppliers
Suppliers are the one who provide the availability of raw material or other finished
products that are required to successfully operate the business in the market. Dream Fitness
has contacted with two main suppliers who are accountable to provide high quality
equipment and tools required for the gym and necessary products that are recommended
women to consume for their health, fitness, and also for the health of their child.
Internal Analysis
SWOT Analysis
SWOT Analysis is a planning method that us used by the marketer of the company to
identify its strength, weakness, opportunity, and threat related to the business. It is focused on
specifying the goals of the business venture or project and classifying the external as well as
internal factors that are favourable to attaining those goals (Gürel & Tat, 2017).
Strength
The key strength of Dream Fitness business is its business concept that holds the
power to attract maximum number of people. Offering a place where only women can
workout and maintain their fitness is yet not been highly explored in the market, that is the
main plan of Dream Fitness. Focusing of professional as well as housewife in helping them in
maintaining their health and fitness is the major strength of the company. In addition to this,

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the knowledge and expertise owned by the top management and the owner of the business is
the strength of the company as it helps it in giving importance to the client which makes it a
customer centric business.
Weakness
The major weakness of Dream Fitness business is only offering fitness services to
women. This can limit the sales and revenue of the business in the market. In the market,
there are different gym and fitness club that focuses on both men and women which gives
then additional advantage of increasing their sales. In addition to this, in the initial days of the
business, the management of the company has hired limited number of employees to offer
services, which can be challenging at the time of increasing number of memberships. In
addition to this, the company has planned to focus on premium pricing strategy where which
it will hire high amount from its clients in exchange of its services.
Opportunities
The opportunities available for Dream Fitness business in the market are expanding
business operations across Canada, increasing number of services being offered to the client,
operating another fitness club for men, etc. The company can expand its business in different
cities of Canada, in search of more fitness conscious women. Besides this, the business can
also work on increasing the number of services it is providing in the market such as cardio,
dance, Zumba, etc. Further, Dream Fitness can even expand its business by opening its one
more branch in Delta that can offer services to men.
Threats
The major threat for Dream Fitness in the gym and fitness industry is competition. It
has been analysed that today people are with time becoming more health and fitness
conscious due to which there are increasing number of people who are joining gym or fitness
club. This has resulted in increasing the competition in the market.

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Market Analysis of Gym and Fitness Industry
The industry of health, gym, and fitness blubs industry of Canada has developed over
last five years to 2019 as an outcome of the consumer trends and the explosion of campaigns
of public health. With the increasing rate of obesity among adult population during the
period, the Public Health Agency of Canada (PHAC) has stressed obedience to choices
related to fitness and healthy lifestyle. As per the Public Health Agency of Canada and the
Canadian Institute for Health Information, obesity is anticipated to take place over $5.0
billion in costs yearly, which should be protected by the system of healthcare (IBIS World,
2019). In response, numerous companies of health insurance have focused on the fitness by
reducing the prices of health club memberships. This market analysis of the fitness and gym
industry of Canada reveals that there is huge scope for Dream Fitness business to operate as it
can support the Public Health agency of Canada and other responsible authorities in
increasing awareness regarding obesity among young people.
The reasons why gym and fitness industry of Canada is growing is because the
citizens are taking the charge of taking care of their health. As per the Stats Canada, around
16.2 million people of Canada that in the age group of 12 and more are stated to be taking
part in around 150 minutes of moderate to energetic intensity aerobic physical activity on
weekly basis (Canadian Franchise Association, 2019). A fitness and health franchise not just
vigorously encounter this demand, but also offer its franchisee with the reward of supporting
people to live a fit and healthy lifestyle and meet their goals of fitness.
Marketing and Sales Plan
Promotion
In marketing, Promotion is a kind of marketing communication that is used by the
businesses for informing or encouraging the target customer of the relative merits of a brand,
product, or issue. The purpose of promotion is to augment the awareness, generate sales, and

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create interest of the customers for a specific product or service (Yannopoulos, 2011). It is
one of the main parts of the marketing mix, which is comprised of other three parts too that is
place, product, and price. It is also one of the main elements of the promotional mix or
promotional plan. It is comprised of exhibitions, advertising, event marketing, direct
marketing, digital marketing, personal selling, public relation, and sales promotion.
Promotion is comprised of the communication methods that are used by the marketer for
offering information related to its product (Whiting, Kendall & Wills, 2012).
The promotion strategies that Dream Fitness business is using for the promotion of its
business are advertising, public relation, personal selling, etc.
Advertising – Advertising is one of the ways of marketing communication that use an
openly sponsored, non-personal messages for the promotion or selling a service, idea, or
product. Advertising sponsors are classically businesses that wish for promoting their
services (Powell, Hardy, Hawkin & Macrury, 2013). Advertising is communicated with the
use of diverse mass media and the traditional and modern media that is used by Dream
Fitness Business is comprised of magazines, outdoor advertising, websites, newspapers, text
messages, social media, television, radio, direct mail, and blogs. Making use of advertising
helps Dream Fitness to target maximum number of customers, increasing business
recognition about target audience, and increase business awareness. Besides this, in the future
also the business will continue to use it has a promotional strategy for increasing its
customers in number.
Personal Selling – Personal selling takes place when a sales representative of a
company meets a potential customer with the aim of transacting a sale (Ferrell, Gonzalez-
Padron & Ferrell, 2010). There are numerous sales representatives who depend on the
consecutive sales procedure that characteristically comprises nine steps. Few of the sales

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representatives create scripts for every or specific part of the procedure of sales. The
procedure of sales could be utilized in the face to face encounters and in telemarketing
(Donoho, Heinze & Kondo, 2012). Dream Fitness is making use of personal selling in order
to increase the promotion of the business through face to face contact. Under this method of
promotion, the staff of the Dream Fitness is involved in promoting the business with the use
of a pamphlet and a brochure that has been designed in a way that can attract clients. The
personal selling of the business is done within and also at the outer area of Tsawwassen Mills
Shopping Mall for targeting the customers.
Sales Promotion – Sales Promotion is another main promotional mix element. It
makes use of both non-media and media marketing communications for increasing the
demand among customer, rouse market demand or enhance the availability of the product
(Mittal & Sethi, 2011). Some of the examples are premiums, rebates, contests, product
samples, coupons, and loss leaders (Chakrabortty, Hossain, Azad & Islam, 2013). Dream
Fitness is making use of sales promotion under which it organizes different types of contest
where it provides free membership of the Dream Fitness to the winner. Besides this, the
company provide coupons to its regular customers to increase their loyalty.
Sales Strategy
Segmentation
Market segmentation is one of the marketing or sales activities that is performed by
the business in which it divides the broad customer group or market, comprised of existing
and potential customers, into sub groups depending on some kind of common characteristics.
While dividing the market, the marketers of the company search for the similar
characteristics, similar lifestyles, and similar demographic profiles (Dibb & Simkin, 2013).
There are four segmentation categories depending on which the management of Dream
Fitness has segmented its market:

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Demographic segmentation – Under this category, the business has selected age,
gender, and income for dividing the market.
Behavioural segmentation – In this category of segmentation, the business has divided
the market on the basis of decision-making pattern, usage, and behaviour of the people.
Psychographic segmentation – Under this, Dream Fitness consider the people’s
lifestyle, interest, opinions, and activities for defining the market segment.
Geographic Segmentation – Presently, Dream Fitness is only covering the Delta
market of Canada, but in the future, it is planning to expand across the country and even in
different countries with the motive to encourage women to also think about their fitness apart
from their professional and personal responsibilities.
Targeting
A target market is a group of business potential customers to whom the marketer
desires to sell its services and products (Ouimet, 2012). This group of customers comprised
of specific customers to whom the efforts of marketing of the company are targeted.
Recognizing the target market is considered to be an important step for every business in the
development of marketing plan or business plan (Weinstein, 2014). The target market of
Dream Fitness business are women who are involved in their professional and/or personal life
and does not get chance to invest in their fitness. The company also focus on young mothers
who have somehow lost their body fitness and demand for a professional women-based
environment where they do not have to worry about looking after their child. The company is
offering a child care center where those young mothers can handover their child.
Positioning
Positioning is the place that is occupied by the product in the market and in the mind
of the customers. An effective position of the product in the market makes it unique and

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allow the customer to consider to availing distinct benefit (Kwak & Kim, 2013). The
positioning that Dream Fitness is desiring to achieve is becoming the leading fitness club of
Canada by expanding business in different states of the country and offer best services to the
clients.
Internet
Internet marketing or digital marketing is said to be the marketing of the products or
services with the use of digital technologies over internet, through mobile phone Apps,
display advertising, and any other digital mediums. The channels of digital marketing are
dependent on the Internet that can make, accelerate, and transmit the value of the product
from producer to the terminal of customer, via digital networks (Royle & Laing, 2014). In
order to grow in the coming time, Dream Fitness Business has to focus on its digital
marketing strategies. As it is known that today people have moved from traditional means of
communication to modern means of communication which focus on targeting mass
customers through internet. The company needs to focus on smartly making use of digital
marketing such as social media marketing, etc. This will help company in increasing its brand
awareness, brand recognition, and also customer loyalty.
Pricing Strategy
Pricing is said to be the procedure where a business plans to set the price of its service
or product at which they are sold and becomes the part of the marketing plan. In setting the
prices, the company consider the price at which it can get the goods, the cost of production,
the market place, market situation, product quality, and competition (Wu & Banker, 2010).
The pricing strategy that company has decided for execute the business and sell the products
is premium pricing strategy. According to premium pricing strategy, the business set the price
of its service higher in comparison to other similar products (Abrate, Fraquelli & Viglia,
2012).

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Financial Plan
Start-up Cost
Start-up Funding Amount in $
Start-up Expenses to Fund 95,300
Start-up Assets to Fund 66900
Total Funding Required 1,62,200
Start-up Cost
Expenses
Marketing 2000
Child Care Setup 10000
Legal Requirement 600
Rent/Lease 2500
Salary 15000
Stationary 300
Insurance 600
Machinery and Equipment 80000
Total Start-up Expenses 111000
Start-up Asset
Cash 66900
Total Assets 66900
Total Requirement 177900
Assumptions: All figures are GST exclusive
Sales Projections
Sales Year 1 Year 2 Year 3
Membership 200000 220000 240000
Personal Trainer Service 145000 170000 190000
Total Sales 345000 390000 430000
Income Projections
Profit & Loss Statement
Particulars Amount ($)
Year 1 Year 2 Year 3
Sales (Membership and personal trainer) 345000 390000 430000
Miscellaneous income 17250 19500 21500
A. Total 362250 409500 451500

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B. Cost of Sales 224250 253500 279500
C. Gross Profit (A-B) 138000 156000 172000
D. Operating Expenses
Office rent 2500 2750 3080
Legal fees 600 0 0
Insurance 600 660 726
Salaries 15000 16500 18150
Child Care Setup 10000 0 0
Stationery 300 330 363
Machinery and Equipment 80000 0 0
Marketing 2000 2200 2420
Depreciation 3000 3000 3000
Total 114000 25440 27739
Operating profit 24000 130560 144261
Less: Interest 10000 10000 10000
Profit before tax 14000 120560 134261
Less: Tax @ 30% 4200 36168 40278.3
Net Profit AT 9800 84392 93982.7
Assumptions: It is assumed that the expenses, sales and other essential elements are
expected to increase in the coming year.
Action Plan and Timeline
Action Time Period Responsible Department
Market Research Half Year Research and Development
Department
Planning and business
development
One year Top Management
Hiring Employees Two weeks Human Resource
Department
Marketing of Business Four weeks Marketing Department
Evaluation of Results Continue Process Top Management
Monitoring and Controlling Continue Process Top Management

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Conclusion
The above report has presented a detailed business plan of a business named as Dream
Fitness that is focusing on only women who are professional and housewife and searching for
a place where they can maintain their health and fitness. The report has provided the detailed
information of the business and it has been identified that Dream Fitness can attain
competitive advantage in this fitness industry through its new and innovative concept.
Besides this, the market analysis of the fitness industry of Canada reveals that this particular
industry is growing from last five years due to increasing knowledge and awareness among
people regarding health and fitness and its benefits. In addition to this, the report has
highlighted Dream Fitness not just help women in grooming their health or fitness but also
provide a child care centre for young mothers where they can handover their child and enjoy
their workout and other activities. However, the analysis has also revealed that business has
yet not covered the entire market and there is huge scope through grabbing the opportunities
of expanding business in different city of Canada, enlarging product portfolio, and opening
one more brand of Dream Fitness for men. The marketing and sales section of the report has
revealed that company is majorly making use of traditional means of communication for the
promotion of the business, but it is recommended that it must also focus on modern means of
communication that is digital marketing. Further, the company has planned to opt for
premium pricing strategy under which it charges high prices because majorly the target
audience of the company will be sub-urban and affluent class women.

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