Detailed Business Plan: Fox Fitness Company - Local Gym
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AI Summary
This business plan outlines the strategy for establishing Fox Fitness Company, a local gym in Edgeworthtown, offering health and fitness services, including personal training and various classes for diverse age groups. The plan details the company's mission, objectives, and critical success factors, emphasizing its unique selling proposition of catering to a previously underserved market. It includes a comprehensive market analysis, competitive analysis, and marketing strategies, with a focus on creating a strong competitive advantage through excellent service and continuous innovation. The operational section covers staffing, organizational structure, and financial projections, including funding requirements, start-up costs, and anticipated profitability over three years. The plan also addresses key aspects of people, operations, and financial forecasting, demonstrating the potential for growth and profitability. The business plan highlights the strategic importance of location, high-quality equipment, and qualified staff to ensure customer satisfaction and long-term success.
A BUSINESS PLAN- LOCAL GYM 1
A Business Plan- local gym
Name
Institution
Submission date
A Business Plan- local gym
Name
Institution
Submission date
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A BUSINESS PLAN- LOCAL GYM 2
Table of Contents
1. EXECUTIVE SUMMARY......................................................................................................2
1.1. Importance of a business plan...............................................................................................2
1.2. Advantages of our services...................................................................................................3
1.3. Key aspects of people and operations...................................................................................4
2. Company description...................................................................................................................5
2.1 product or service..................................................................................................................5
2.2. Mission and objectives.........................................................................................................5
2.2.1. Mission statements.........................................................................................................5
2.2.2 Milestones.......................................................................................................................5
2.3 critical success factors...........................................................................................................6
2.4 Unique Selling Proposition (USP).........................................................................................6
2.5 SWOT Analysis.....................................................................................................................6
2.5.1 Strengths of fox Fitness Company..................................................................................6
2.5.2. Weaknesses....................................................................................................................7
2.5.3. Opportunities.................................................................................................................8
2.5.4. Threats...........................................................................................................................8
3. MARKET ANALYSIS................................................................................................................9
3.1. Research Methods Overview................................................................................................9
3.1.1. Observation:...................................................................................................................9
3.2. Industry Overview..............................................................................................................10
3.3. Target Market.....................................................................................................................10
2. COMPETITION ANALYSIS................................................................................................11
4.1 key competitors....................................................................................................................11
4.1.1. Key competing products and services.........................................................................11
4.1.2. Profile of the key competitor.......................................................................................11
4.1.3. Advantages and disadvantages of the competitors’ offerings.....................................11
4.1.4. The threat of substitute services..................................................................................12
4.2. COMPETITIVE ADVANTAGE........................................................................................12
4.2.1 Ability to offer and sustain excellent services..............................................................12
4.2.2. Creative expert staff and an ability to consistently innovate their services.................12
4.2.3. Creating a culture of continuous improvement...........................................................12
4.2.4. Access a unique supplier.............................................................................................13
Table of Contents
1. EXECUTIVE SUMMARY......................................................................................................2
1.1. Importance of a business plan...............................................................................................2
1.2. Advantages of our services...................................................................................................3
1.3. Key aspects of people and operations...................................................................................4
2. Company description...................................................................................................................5
2.1 product or service..................................................................................................................5
2.2. Mission and objectives.........................................................................................................5
2.2.1. Mission statements.........................................................................................................5
2.2.2 Milestones.......................................................................................................................5
2.3 critical success factors...........................................................................................................6
2.4 Unique Selling Proposition (USP).........................................................................................6
2.5 SWOT Analysis.....................................................................................................................6
2.5.1 Strengths of fox Fitness Company..................................................................................6
2.5.2. Weaknesses....................................................................................................................7
2.5.3. Opportunities.................................................................................................................8
2.5.4. Threats...........................................................................................................................8
3. MARKET ANALYSIS................................................................................................................9
3.1. Research Methods Overview................................................................................................9
3.1.1. Observation:...................................................................................................................9
3.2. Industry Overview..............................................................................................................10
3.3. Target Market.....................................................................................................................10
2. COMPETITION ANALYSIS................................................................................................11
4.1 key competitors....................................................................................................................11
4.1.1. Key competing products and services.........................................................................11
4.1.2. Profile of the key competitor.......................................................................................11
4.1.3. Advantages and disadvantages of the competitors’ offerings.....................................11
4.1.4. The threat of substitute services..................................................................................12
4.2. COMPETITIVE ADVANTAGE........................................................................................12
4.2.1 Ability to offer and sustain excellent services..............................................................12
4.2.2. Creative expert staff and an ability to consistently innovate their services.................12
4.2.3. Creating a culture of continuous improvement...........................................................12
4.2.4. Access a unique supplier.............................................................................................13
A BUSINESS PLAN- LOCAL GYM 3
4.2.4. New technologies or systems.......................................................................................13
3. Marketing and communication strategy.................................................................................13
3.1. Marketing strategies.........................................................................................................13
5.1.1. Various levels of our services......................................................................................14
5.1.2. Positioning statement...................................................................................................14
5.2 Pricing...............................................................................................................................15
5.3 sales forecast........................................................................................................................15
5.4. Sales strategy......................................................................................................................17
5.5. Communication strategy.....................................................................................................17
5. Staffing and operations...........................................................................................................19
6.1. Organizational chart............................................................................................................19
6.2. Staffing...............................................................................................................................19
6.3. Operations...........................................................................................................................20
FINANCIAL PROJECTIONS AND KEY ASSUMPTIONS.......................................................21
7.1. Sources of funding..............................................................................................................21
7.2. Start-up costs......................................................................................................................21
7.3. Loan repayment..................................................................................................................21
7.4. Cash flow............................................................................................................................21
7.5. Income statements (profit and loss)....................................................................................21
Appendices....................................................................................................................................22
Cash flow...................................................................................................................................22
PROFIT AND LOSS ACCOUNT.............................................................................................22
4.2.4. New technologies or systems.......................................................................................13
3. Marketing and communication strategy.................................................................................13
3.1. Marketing strategies.........................................................................................................13
5.1.1. Various levels of our services......................................................................................14
5.1.2. Positioning statement...................................................................................................14
5.2 Pricing...............................................................................................................................15
5.3 sales forecast........................................................................................................................15
5.4. Sales strategy......................................................................................................................17
5.5. Communication strategy.....................................................................................................17
5. Staffing and operations...........................................................................................................19
6.1. Organizational chart............................................................................................................19
6.2. Staffing...............................................................................................................................19
6.3. Operations...........................................................................................................................20
FINANCIAL PROJECTIONS AND KEY ASSUMPTIONS.......................................................21
7.1. Sources of funding..............................................................................................................21
7.2. Start-up costs......................................................................................................................21
7.3. Loan repayment..................................................................................................................21
7.4. Cash flow............................................................................................................................21
7.5. Income statements (profit and loss)....................................................................................21
Appendices....................................................................................................................................22
Cash flow...................................................................................................................................22
PROFIT AND LOSS ACCOUNT.............................................................................................22
A BUSINESS PLAN- LOCAL GYM 4
1. EXECUTIVE SUMMARY
Our business will be called fox Fitness Company, it will be located at Edgeworthtown. This
business will be offering health and fitness, training classes. Clients will opt to subscribe to
individual training or classes. Payment method will be monthly, quarterly, semi-annually and
annual subscription. We have decided to prepare a business plan before commencing the
business because of the following reasons;
1.1. Importance of a business plan
1. To raise money for the business
One of the major reasons is to raise money to start the business by attracting potential investors
and lenders. The business plan shows the entire planned financial plan and the business activities
to be undertaken. The discussions show the likelihood of success of the business.
2. To make the right decisions
A business without a business plan leads to failure. A plan gives a sense of direction as it
outlines what is supposed to be done. This business plan will help to focus on the outlined ideas
and strategies. A business plan discusses every operation and strategies needed to perform the
business; this includes management, financial matters, technology, etc
3. A business plan help identify potential weaknesses of the planned business
By analyzing the business and the target market it will be easy to identify potential weaknesses
of the business idea discussing the idea with professionals and experts will help identify any
loophole in the idea and may be lucky to get important information and advice.
4. it’s a communication tool
A business plan can communicate to shareholders that the business has a potential of secure
investment of capital from lenders. It can also be used to attract potential customers and secure
credit from suppliers.
5. It helps to set specific goals and objectives for management
A business plan outlines the managers and staff giving their roles and specifics of what they are
supposed to do in the business to keep it going. Without a business plan then the company will
be surviving by grace which should not be the case in the area of business.
6. Business plans help to decide whether the business needs to purchase or assets.
Depending on how long the business is planned to live will help the management decide whether
to buy new pieces of equipment or just lease the assets for the period of operation. The
management should also discuss on the number of assets required
1. EXECUTIVE SUMMARY
Our business will be called fox Fitness Company, it will be located at Edgeworthtown. This
business will be offering health and fitness, training classes. Clients will opt to subscribe to
individual training or classes. Payment method will be monthly, quarterly, semi-annually and
annual subscription. We have decided to prepare a business plan before commencing the
business because of the following reasons;
1.1. Importance of a business plan
1. To raise money for the business
One of the major reasons is to raise money to start the business by attracting potential investors
and lenders. The business plan shows the entire planned financial plan and the business activities
to be undertaken. The discussions show the likelihood of success of the business.
2. To make the right decisions
A business without a business plan leads to failure. A plan gives a sense of direction as it
outlines what is supposed to be done. This business plan will help to focus on the outlined ideas
and strategies. A business plan discusses every operation and strategies needed to perform the
business; this includes management, financial matters, technology, etc
3. A business plan help identify potential weaknesses of the planned business
By analyzing the business and the target market it will be easy to identify potential weaknesses
of the business idea discussing the idea with professionals and experts will help identify any
loophole in the idea and may be lucky to get important information and advice.
4. it’s a communication tool
A business plan can communicate to shareholders that the business has a potential of secure
investment of capital from lenders. It can also be used to attract potential customers and secure
credit from suppliers.
5. It helps to set specific goals and objectives for management
A business plan outlines the managers and staff giving their roles and specifics of what they are
supposed to do in the business to keep it going. Without a business plan then the company will
be surviving by grace which should not be the case in the area of business.
6. Business plans help to decide whether the business needs to purchase or assets.
Depending on how long the business is planned to live will help the management decide whether
to buy new pieces of equipment or just lease the assets for the period of operation. The
management should also discuss on the number of assets required
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A BUSINESS PLAN- LOCAL GYM 5
Fox Fitness Company will offer health and fitness services to its customers and also offer
nutritional advice to clients.
7. A business plan shares information about the business objectives to the management of
the company, the employees and new employees to be hired.
Makes the owners know on which portions to train their employees on.
8. It helps to come up with business alliances
The set targets for developing alliances and chosen portions of a business plan communicate with
other alliances
1.2. Advantages of our services
Regular exercise makes the brain stay active and also the body to remain healthy
Exercise helps to reduce the risk of suffering from chronic diseases
It increases the levels of energy
Leads to a healthy skin
Helps to reduce excess weight
Exercise makes one feel happy
Leads to strong bones
Market opportunity
The target location is a very good market opportunity because there is no fitness facility in the
town of Edgeworthtown. The nearest fitness facility is located at Longford which is fifteen
kilometers away from Edgeworthtown. This is a good market opportunity for our business. In
addition, there is no other business which offers fitness services to children as young as eight
years and teenagers. Fox Fitness Company will offer services to children, teenagers, and adults.
This is a unique idea for the fox fitness company and also a good competitive advantage over
other fitness companies.
Management team
The managers of the company will be the two owners of the company that’s Mr. Frank and Mr.
Tom, the other management team will consist of an accountant, a procurement officer, human
resources officer, receptionist, security guards, health and training experts and IT officer.
Management plays an important role to the success of a business because they lead all the
business operations. Our management has been selected brilliantly by checking experts in each
are specified above. The management is believed to take the business to very high levels.
Fox Fitness Company will offer health and fitness services to its customers and also offer
nutritional advice to clients.
7. A business plan shares information about the business objectives to the management of
the company, the employees and new employees to be hired.
Makes the owners know on which portions to train their employees on.
8. It helps to come up with business alliances
The set targets for developing alliances and chosen portions of a business plan communicate with
other alliances
1.2. Advantages of our services
Regular exercise makes the brain stay active and also the body to remain healthy
Exercise helps to reduce the risk of suffering from chronic diseases
It increases the levels of energy
Leads to a healthy skin
Helps to reduce excess weight
Exercise makes one feel happy
Leads to strong bones
Market opportunity
The target location is a very good market opportunity because there is no fitness facility in the
town of Edgeworthtown. The nearest fitness facility is located at Longford which is fifteen
kilometers away from Edgeworthtown. This is a good market opportunity for our business. In
addition, there is no other business which offers fitness services to children as young as eight
years and teenagers. Fox Fitness Company will offer services to children, teenagers, and adults.
This is a unique idea for the fox fitness company and also a good competitive advantage over
other fitness companies.
Management team
The managers of the company will be the two owners of the company that’s Mr. Frank and Mr.
Tom, the other management team will consist of an accountant, a procurement officer, human
resources officer, receptionist, security guards, health and training experts and IT officer.
Management plays an important role to the success of a business because they lead all the
business operations. Our management has been selected brilliantly by checking experts in each
are specified above. The management is believed to take the business to very high levels.
A BUSINESS PLAN- LOCAL GYM 6
1.3. Key aspects of people and operations
The business is planning to higher experts of health and fitness to ensure high-quality services
are offered to customers. The staff to be hired should have a good relation with the customers
and also to the rest of the location in order to help market this new company to the public.
Quality operations are to be performed to ensure clients satisfaction or even exceed customers’
expectations. When the clients' expectations are exceeded they are more than happy and that fact
can help maintain our customers.
Financial forecasting has been done on statement of cash flow and statement of profit and loss
account. The forecasted data show that fox fitness company will be profitable in the next three
years according to the analysis which has been done. This is a good forecast result for a
beginning company
The target location has strategically been chosen because there is no other facility like that in that
town. Therefore, our facility is going to save the inhabitants of this area from traveling to all the
way to Longford to get fitness services.
The layout of facilities has been done strategically and in good order to ensure that the workflow
is smooth. Good suppliers will be chosen to ensure that the machines are of the highest quality
hence quality services.
1.4. Financial projections
2019 2020 2021
income 400,000 500,000 550,000
Expenses 26,260 26,260 26,260
Net profit after tax 313,941.60 397,941.60 439,941.60
Market share % 26% 27% 28%
Employment 10% 15% 16%
1.3. Key aspects of people and operations
The business is planning to higher experts of health and fitness to ensure high-quality services
are offered to customers. The staff to be hired should have a good relation with the customers
and also to the rest of the location in order to help market this new company to the public.
Quality operations are to be performed to ensure clients satisfaction or even exceed customers’
expectations. When the clients' expectations are exceeded they are more than happy and that fact
can help maintain our customers.
Financial forecasting has been done on statement of cash flow and statement of profit and loss
account. The forecasted data show that fox fitness company will be profitable in the next three
years according to the analysis which has been done. This is a good forecast result for a
beginning company
The target location has strategically been chosen because there is no other facility like that in that
town. Therefore, our facility is going to save the inhabitants of this area from traveling to all the
way to Longford to get fitness services.
The layout of facilities has been done strategically and in good order to ensure that the workflow
is smooth. Good suppliers will be chosen to ensure that the machines are of the highest quality
hence quality services.
1.4. Financial projections
2019 2020 2021
income 400,000 500,000 550,000
Expenses 26,260 26,260 26,260
Net profit after tax 313,941.60 397,941.60 439,941.60
Market share % 26% 27% 28%
Employment 10% 15% 16%
A BUSINESS PLAN- LOCAL GYM 7
1.5. Funding requirements
The company is in need of starting capital from lenders or financial institutions. Currently, the
company has planned to borrow a bank loan of $300, 000; potential investors are all welcomed
to invest in our company with an assurance of secure investments with the fox fitness company
2. Company description
2.1 product or service
Fox fitness factory is a fitness firm offering personal training to potential customers who are able
to do their sessions without guidance and also will offer fitness classes, for example, weights,
resistance training, Pilates among others. Clients will be given options of payments which will be
annual, half a year, quarterly, monthly, weekly and also daily payment method will be allocated.
This method of payment will help accommodate all our clients. Training will be in groups but
clients can also book individual classes. Clients in need of individual classes will opt to subscribe
for one, two, three or four months plan. Potential clients will receive full training and appropriate
nutrition plan for their personal importance. Our firm will also offer fitness classes to children
eight years to sixteen years which is making fox fitness factory very unique. All customers will
be offered a free trial training class.
It is planned that Fox Fitness Company will be located in Edgeworthstown. According to the
recent figures from the central statistics office, this location has a population of 2070. Currently,
382 children from a local school, St John’s are registered. For now,, the nearest gym from the
town is about 15km away so people living in this location should travel all that way to access the
facility. Providing these services at Edgeworthstown will be beneficial to inhabitants of this town
and surrounding. Fox fitness will help both physical and mental health to the clients which
include young and old.
2.2. Mission and objectives
2.2.1. Mission statements
fox fitness company’s mission is to offer satisfying services to its customers while providing
enjoyable, challenging, rewarding and individually tailored fitness experience which will cater
for children and old inhabitants of this location and the surrounding. It's our mission to ensure
that all clients who will visit us will feel that there is no other place like fox fitness.
2.2.2 Milestones
Develop a range of sportswear with the fox fitness factory logo by partnering with a
sportswear supplier. This will increase the popularity of the company while making
training sportswear readily available to our customers.
1.5. Funding requirements
The company is in need of starting capital from lenders or financial institutions. Currently, the
company has planned to borrow a bank loan of $300, 000; potential investors are all welcomed
to invest in our company with an assurance of secure investments with the fox fitness company
2. Company description
2.1 product or service
Fox fitness factory is a fitness firm offering personal training to potential customers who are able
to do their sessions without guidance and also will offer fitness classes, for example, weights,
resistance training, Pilates among others. Clients will be given options of payments which will be
annual, half a year, quarterly, monthly, weekly and also daily payment method will be allocated.
This method of payment will help accommodate all our clients. Training will be in groups but
clients can also book individual classes. Clients in need of individual classes will opt to subscribe
for one, two, three or four months plan. Potential clients will receive full training and appropriate
nutrition plan for their personal importance. Our firm will also offer fitness classes to children
eight years to sixteen years which is making fox fitness factory very unique. All customers will
be offered a free trial training class.
It is planned that Fox Fitness Company will be located in Edgeworthstown. According to the
recent figures from the central statistics office, this location has a population of 2070. Currently,
382 children from a local school, St John’s are registered. For now,, the nearest gym from the
town is about 15km away so people living in this location should travel all that way to access the
facility. Providing these services at Edgeworthstown will be beneficial to inhabitants of this town
and surrounding. Fox fitness will help both physical and mental health to the clients which
include young and old.
2.2. Mission and objectives
2.2.1. Mission statements
fox fitness company’s mission is to offer satisfying services to its customers while providing
enjoyable, challenging, rewarding and individually tailored fitness experience which will cater
for children and old inhabitants of this location and the surrounding. It's our mission to ensure
that all clients who will visit us will feel that there is no other place like fox fitness.
2.2.2 Milestones
Develop a range of sportswear with the fox fitness factory logo by partnering with a
sportswear supplier. This will increase the popularity of the company while making
training sportswear readily available to our customers.
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A BUSINESS PLAN- LOCAL GYM 8
Grow client base by a minimum of 5% every year starting from the second year
based on membership figures by the end of the first year. Fox fitness is planned to
grow as the number of customers increase.
Conduct an annual review in order to use the customers’ feedback for the purpose of
adapting in line with the needs of our clients, for example, adding alternative training
classes, and providing additional training classes. Customers are our priority, their
needs will be taken of great importance to the company for us to be able to know what
to change and what to improve.
2.3 critical success factors
A loan from a bank will be needed to purchase business pieces of equipment, for
example, weights, machines, etc. it will also be used to pay the first employees salaries
and pay rent of the premises. The factory expectations is that money generated from the
business will cover salaries and rent and also help to clear the loan acquired while
starting the business.
It’s very important for fox fitness to identify the right supplier. The pieces of
equipment should be of high quality and also should come with a guarantee for repairs
and replacement in case of a break done among others. To get a good supplier can be a
bit expensive. Quality is expensive but worth it in the long run.
It’s very critical to succeed in recruiting the qualified and right staff for the business.
Staff with experience of working with both young and old will be required. Employees
should be able to work with all the clients either group or individual training. Regular
training will also be provided to ensure continuous professional development of
employees and also as a way of motivating employees making them feel good at their
job and well valued by the firm.
It’s vital for the firm to develop a fair price matching it to the potential market,
competitors prices should be considered to ensure that the firm is neither overcharging
nor undercharging its customers. The price should also be affordable by the target
market and profitable to the company.
2.4 Unique Selling Proposition (USP)
Fox Fitness Factory’s unique selling proposition of their services is that it caters for the needs of
the young people aged between the ages of eight years to sixteen years. This age bracket has both
children and teenagers. Research shows that there is no other fitness factory in Co. Longford and
surroundings currently catering for fitness training for younger members of the community aged
to as young as eight years. This will be a unique proposition in the market which will make our
company outstand.
Grow client base by a minimum of 5% every year starting from the second year
based on membership figures by the end of the first year. Fox fitness is planned to
grow as the number of customers increase.
Conduct an annual review in order to use the customers’ feedback for the purpose of
adapting in line with the needs of our clients, for example, adding alternative training
classes, and providing additional training classes. Customers are our priority, their
needs will be taken of great importance to the company for us to be able to know what
to change and what to improve.
2.3 critical success factors
A loan from a bank will be needed to purchase business pieces of equipment, for
example, weights, machines, etc. it will also be used to pay the first employees salaries
and pay rent of the premises. The factory expectations is that money generated from the
business will cover salaries and rent and also help to clear the loan acquired while
starting the business.
It’s very important for fox fitness to identify the right supplier. The pieces of
equipment should be of high quality and also should come with a guarantee for repairs
and replacement in case of a break done among others. To get a good supplier can be a
bit expensive. Quality is expensive but worth it in the long run.
It’s very critical to succeed in recruiting the qualified and right staff for the business.
Staff with experience of working with both young and old will be required. Employees
should be able to work with all the clients either group or individual training. Regular
training will also be provided to ensure continuous professional development of
employees and also as a way of motivating employees making them feel good at their
job and well valued by the firm.
It’s vital for the firm to develop a fair price matching it to the potential market,
competitors prices should be considered to ensure that the firm is neither overcharging
nor undercharging its customers. The price should also be affordable by the target
market and profitable to the company.
2.4 Unique Selling Proposition (USP)
Fox Fitness Factory’s unique selling proposition of their services is that it caters for the needs of
the young people aged between the ages of eight years to sixteen years. This age bracket has both
children and teenagers. Research shows that there is no other fitness factory in Co. Longford and
surroundings currently catering for fitness training for younger members of the community aged
to as young as eight years. This will be a unique proposition in the market which will make our
company outstand.
A BUSINESS PLAN- LOCAL GYM 9
2.5 SWOT Analysis
2.5.1 The Strengths of fox Fitness Company
1. It offers both fitness classes and personal training.
This can encourage those who have never tried fitness sessions or those who are not comfortable
with group training to book personal training sessions. By having a variety of services to offer
fox fitness will attract many potential customers.
2. Varying payment depending on membership options.
Clients have the options of subscribing to fitness classes or personal training depending on their
needs and wants. Payment methods are also categorized to monthly, quarterly, half a year or
annually whereby a client gets services all throughout the year. This will give clients a wide
number of options to choose according to what they will like
3. Caters for children, teenagers, and adults
Fox fitness caters the fitness needs of almost all ages starting from the age of eight years which is
very unique for this firm. Teenagers who have a lot of energy and active at their age will help
them grow health by exercising.
4. The fitness industry is expanding year on year
fitness industry is expanding rapidly day after day by improving the fitness machines and also
coming up with better fitness machines which can be used by young people like children and the
old too. This will encourage the fox to meet the needs of its clients by adopting the latest
technology.
5. Will be first of its kind in the proposed location
Fox fitness being the first modern gym in the proposed location, it will be an added advantage
because clients will get better services by visiting fox fitness which will be taken to their
location. This will attract many customers from the town and the surrounding
2.5.2. Weaknesses
May be difficult to attract newcomers
People are naturally resistant to changes .it may be difficult for people to stop using their current
facilities for a new company. People may be afraid that they wouldn’t be satisfied with the new
2.5 SWOT Analysis
2.5.1 The Strengths of fox Fitness Company
1. It offers both fitness classes and personal training.
This can encourage those who have never tried fitness sessions or those who are not comfortable
with group training to book personal training sessions. By having a variety of services to offer
fox fitness will attract many potential customers.
2. Varying payment depending on membership options.
Clients have the options of subscribing to fitness classes or personal training depending on their
needs and wants. Payment methods are also categorized to monthly, quarterly, half a year or
annually whereby a client gets services all throughout the year. This will give clients a wide
number of options to choose according to what they will like
3. Caters for children, teenagers, and adults
Fox fitness caters the fitness needs of almost all ages starting from the age of eight years which is
very unique for this firm. Teenagers who have a lot of energy and active at their age will help
them grow health by exercising.
4. The fitness industry is expanding year on year
fitness industry is expanding rapidly day after day by improving the fitness machines and also
coming up with better fitness machines which can be used by young people like children and the
old too. This will encourage the fox to meet the needs of its clients by adopting the latest
technology.
5. Will be first of its kind in the proposed location
Fox fitness being the first modern gym in the proposed location, it will be an added advantage
because clients will get better services by visiting fox fitness which will be taken to their
location. This will attract many customers from the town and the surrounding
2.5.2. Weaknesses
May be difficult to attract newcomers
People are naturally resistant to changes .it may be difficult for people to stop using their current
facilities for a new company. People may be afraid that they wouldn’t be satisfied with the new
A BUSINESS PLAN- LOCAL GYM 10
facilities; therefore it may be challenging to attract new customers in the location for the first
time. Winning peoples trust may take a while.
Small and unknown business/brand name
Fox fitness being a starting business is unknown to the market and also small this can make it
unpopular hence few clients because people are unaware of the brand name or even the existence
of the business facilities. People may also ignore a small company compared to the developed
facilities that they are currently using.
2.5.3. Opportunities
Attract newcomers to the fitness industry by being the first fitness studio in
Edgeworthstown.
It’s a great opportunity for a fitness company to be the first in this town because people who
have been traveling to Longford which is fifteen kilometers away from the town will be attracted
by the new firm in their town making it convenient for everyone living in that location. It will
also cut down their traveling expenses by reaching the facilities just near them.
Attract potential clients currently traveling a distance to attend fitness classes
This firm has the opportunity of attracting clients who have to travel fifteen kilometers to access
fitness facilities. The clients from that town may consider cutting down the expenses of traveling
and also save time while accessing fitness facilities. This will be a great chance for fox fitness to
get new clients.
Expand and open the second branch of Fox Fitness Factory in another area currently not
being serviced by a fitness studio the unique special services available at fox fitness of
accommodating as young as eight years can also be established in another area without a gym
studio because it has the opportunity of attracting many potential clients. Since the fox have a
unique idea it can use it to identify a similar location which does not have a fitness company to
start a branch of their company
2.5.4. Threats
Location of Longford town just 15km away containing a number of fitness studios
Clients may have developed trust and confidence with the fitness facility at Longford hence
making it hard for them to change from using their common facilities. Fox being a starting
company may not have as many facilities as the nearby fitness center which is already
facilities; therefore it may be challenging to attract new customers in the location for the first
time. Winning peoples trust may take a while.
Small and unknown business/brand name
Fox fitness being a starting business is unknown to the market and also small this can make it
unpopular hence few clients because people are unaware of the brand name or even the existence
of the business facilities. People may also ignore a small company compared to the developed
facilities that they are currently using.
2.5.3. Opportunities
Attract newcomers to the fitness industry by being the first fitness studio in
Edgeworthstown.
It’s a great opportunity for a fitness company to be the first in this town because people who
have been traveling to Longford which is fifteen kilometers away from the town will be attracted
by the new firm in their town making it convenient for everyone living in that location. It will
also cut down their traveling expenses by reaching the facilities just near them.
Attract potential clients currently traveling a distance to attend fitness classes
This firm has the opportunity of attracting clients who have to travel fifteen kilometers to access
fitness facilities. The clients from that town may consider cutting down the expenses of traveling
and also save time while accessing fitness facilities. This will be a great chance for fox fitness to
get new clients.
Expand and open the second branch of Fox Fitness Factory in another area currently not
being serviced by a fitness studio the unique special services available at fox fitness of
accommodating as young as eight years can also be established in another area without a gym
studio because it has the opportunity of attracting many potential clients. Since the fox have a
unique idea it can use it to identify a similar location which does not have a fitness company to
start a branch of their company
2.5.4. Threats
Location of Longford town just 15km away containing a number of fitness studios
Clients may have developed trust and confidence with the fitness facility at Longford hence
making it hard for them to change from using their common facilities. Fox being a starting
company may not have as many facilities as the nearby fitness center which is already
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A BUSINESS PLAN- LOCAL GYM 11
developed. This may discourage potential clients to continue using the old facility. This is a big
threat to this starting fitness company,
Opportunity for potential clients to access fitness classes through online portals
The current situation of the target location of staying without a fitness firm within the town may
have encouraged the inhabitants to start using online portals to access fitness classes. It will be
difficult to make this kind of people to start using the farms’ facilities. This will make the firm
lose potential customers.
Opportunity for potential clients to undertake home-based training
Some people may have already bought fitness facilities at home hence don’t have to access the
firm. Some people may have decided to purchase their own home facilities this is a threat to fox
company which is to be located in this area because this can lead to loss of potential clients.
3. MARKET ANALYSIS
3.1. Research Methods Overview
3.1.1. Observation:
3.1.1.1. Primary research already did
According to the primary research already taken, there is currently no fitness studio located in
Edgeworthtown. The nearest fitness studio is located at Longford which is fifteen kilometers
away from this town. From the observation made Edgeworthtown is the real deal for the fox
fitness company to shine. According to primary research, in order to determine the likely interest
of adults living in the area, a survey was sent home to the parents of 382 children in the local
primary school and was completed by 304 participants out of 382 who are mothers and
fathers.128 out of 167 are female participants which is 77% and 98 out of 137 are male
participant which is 72% showed their interest to attend a free training class which gives a strong
indication that there is a high level of interest in fitness classes among adults and children in this
area.
3.1.1.2. Primary research to be done
Teenagers, aged between 13 and 16 years who are attending the varying secondary schools in
Co.longford requested to be issued with questionnaires to establish their levels of interest.
Questionnaires also to be sent to all the foreign nationals living in the area to determine their
levels of interest in the proposed business.
Meetings to be held with leading members of local committees, organizations, sports groups, etc
e.g. local GAA club, local soccer club, Community Games, etc
developed. This may discourage potential clients to continue using the old facility. This is a big
threat to this starting fitness company,
Opportunity for potential clients to access fitness classes through online portals
The current situation of the target location of staying without a fitness firm within the town may
have encouraged the inhabitants to start using online portals to access fitness classes. It will be
difficult to make this kind of people to start using the farms’ facilities. This will make the firm
lose potential customers.
Opportunity for potential clients to undertake home-based training
Some people may have already bought fitness facilities at home hence don’t have to access the
firm. Some people may have decided to purchase their own home facilities this is a threat to fox
company which is to be located in this area because this can lead to loss of potential clients.
3. MARKET ANALYSIS
3.1. Research Methods Overview
3.1.1. Observation:
3.1.1.1. Primary research already did
According to the primary research already taken, there is currently no fitness studio located in
Edgeworthtown. The nearest fitness studio is located at Longford which is fifteen kilometers
away from this town. From the observation made Edgeworthtown is the real deal for the fox
fitness company to shine. According to primary research, in order to determine the likely interest
of adults living in the area, a survey was sent home to the parents of 382 children in the local
primary school and was completed by 304 participants out of 382 who are mothers and
fathers.128 out of 167 are female participants which is 77% and 98 out of 137 are male
participant which is 72% showed their interest to attend a free training class which gives a strong
indication that there is a high level of interest in fitness classes among adults and children in this
area.
3.1.1.2. Primary research to be done
Teenagers, aged between 13 and 16 years who are attending the varying secondary schools in
Co.longford requested to be issued with questionnaires to establish their levels of interest.
Questionnaires also to be sent to all the foreign nationals living in the area to determine their
levels of interest in the proposed business.
Meetings to be held with leading members of local committees, organizations, sports groups, etc
e.g. local GAA club, local soccer club, Community Games, etc
A BUSINESS PLAN- LOCAL GYM 12
3.1.1.3. Secondary Research already was undertaken
Figures released by the Central Statistics Office from the 2016 census were accessed in order to
establish that Edgeworthstown currently has a population of 2070, of which 660are foreign
nationals. This is a good number of target populations.
Local primary school, St. John’s contacted enrolment figures. The school currently has an
enrolment of 382 children to fox Fitness Company
According to the data collected by Health and Fitness Market (2018), 50% of the Irish
population is currently physically active, many of these in own independent home fitness
facilities.
According Mintel, the Exercise and Fitness Ireland estimated consumer spending on gyms,
fitness centers, and sports club memberships was forecast to rise by 10% between 2015 and
2018.
3.2. Industry Overview
health and fitness industry is growing year after year. According to the data collected in 2018,
15% of Irish populations are currently physically active and fit, many of these owned facilities
by that time.
According to exercise and fitness Ireland , estimated consumer spending gyms, fitness centers,
and sports club memberships was forecasted to rise by 10% between 2017 and 2019
3.3. Target Market
Due to the nature of the proposed business, the target market for this business is both males and
females, young and old, who are interested in either taking up or maintaining their existing
fitness practices. Market segmentation will be based largely on the demographics of the potential
customers of this business.
• Adults - All gyms or fitness studios focus on both males and females over the age of 16. It will
be imperative that Fox Fitness Factory takes a stranglehold on this market segment by attracting
potential clients currently traveling elsewhere for their fitness classes, gym memberships, etc
while the business must also Endeavour to attract newcomers from this key market segment. It is
envisaged that Fox Fitness Factory will run men only, women only and mixed classes to cater to
the varying needs of this group.
• Teenagers - Teenagers between the age of 13 and 16 are at quite a vulnerable age. Exercise is
not always the number 1 priority among this age group and gyms and fitness studios in the
surrounding area currently make no provisions for this group. A large focus will be placed on
attracting and retaining those boys and girls between the ages of 13 and 16 for specially designed
and tailored classes with the emphasis on fun.
• Children - According to the Children’s Sport Participation and Physical Activity Study (2010),
85% of children are currently not active enough and therefore in an era dominated by smart
phones and games consoles, a big emphasis will be placed on attracting children to the specially
3.1.1.3. Secondary Research already was undertaken
Figures released by the Central Statistics Office from the 2016 census were accessed in order to
establish that Edgeworthstown currently has a population of 2070, of which 660are foreign
nationals. This is a good number of target populations.
Local primary school, St. John’s contacted enrolment figures. The school currently has an
enrolment of 382 children to fox Fitness Company
According to the data collected by Health and Fitness Market (2018), 50% of the Irish
population is currently physically active, many of these in own independent home fitness
facilities.
According Mintel, the Exercise and Fitness Ireland estimated consumer spending on gyms,
fitness centers, and sports club memberships was forecast to rise by 10% between 2015 and
2018.
3.2. Industry Overview
health and fitness industry is growing year after year. According to the data collected in 2018,
15% of Irish populations are currently physically active and fit, many of these owned facilities
by that time.
According to exercise and fitness Ireland , estimated consumer spending gyms, fitness centers,
and sports club memberships was forecasted to rise by 10% between 2017 and 2019
3.3. Target Market
Due to the nature of the proposed business, the target market for this business is both males and
females, young and old, who are interested in either taking up or maintaining their existing
fitness practices. Market segmentation will be based largely on the demographics of the potential
customers of this business.
• Adults - All gyms or fitness studios focus on both males and females over the age of 16. It will
be imperative that Fox Fitness Factory takes a stranglehold on this market segment by attracting
potential clients currently traveling elsewhere for their fitness classes, gym memberships, etc
while the business must also Endeavour to attract newcomers from this key market segment. It is
envisaged that Fox Fitness Factory will run men only, women only and mixed classes to cater to
the varying needs of this group.
• Teenagers - Teenagers between the age of 13 and 16 are at quite a vulnerable age. Exercise is
not always the number 1 priority among this age group and gyms and fitness studios in the
surrounding area currently make no provisions for this group. A large focus will be placed on
attracting and retaining those boys and girls between the ages of 13 and 16 for specially designed
and tailored classes with the emphasis on fun.
• Children - According to the Children’s Sport Participation and Physical Activity Study (2010),
85% of children are currently not active enough and therefore in an era dominated by smart
phones and games consoles, a big emphasis will be placed on attracting children to the specially
A BUSINESS PLAN- LOCAL GYM 13
designed classes. As none of the potential businesses competitors offer any such classes, this is
seen as an area for huge expansion and it would be hoped that in future, these classes would not
only attract children from Edgeworthstown, but also from the surrounding towns and villages.
• Foreign-nationals-Huge emphasis will be placed on attempting to attract customers from the
significant foreign-national population living in Edgeworthstown. This potential client base is
one which tends to keep to itself and does not engage in many community groups or
organizations and therefore it will be vital to entice them to join the ‘Fox Fitness Factory’.
2. COMPETITION ANALYSIS
4.1 key competitors
4.1.1. Key competing products and services
Our key competitor is the fitness facility which is located at Longford which is fifteen kilometers
from the planned location. The competing services are nutritional counseling, individual and
personal training and use of similar pieces of equipment. All the services to be offered by fox
Fitness Company are available at the nearest facility except for the idea of making fitness
services available to children and teenagers and also the terms of payment. Longford only offers,
daily, weekly and monthly subscription options.
4.1.2. Profile of the key competitor
Our competitor is a well-developed company which is big in size and has almost all the facilities
needed in health and fitness firm. It has a high turnover of clients. Being the only fitness center
available in this area it has a good turnover of clients because all people living in the surrounding
depends only on that facility. According to research, the company is highly profitable with a
market share of 25%.
4.1.3. Advantages and disadvantages of the competitors’ offerings
4.1.3.1. Advantages of competitors’ offering
The fitness company at Longford has several facilities which are well developed. Compared to
fox fitness company which is a starting company with fewer facilities and undeveloped, the
competitor is a well-established firm with several facilities for its clients. It also already has its
customers who may be hard to walk away.
The competitor is offering free nutrition classes for its entire clients regardless of whether the
clients have subscribed for fitness classes or not. As at fox fitness company clients will have to
subscribe to access nutritional classes for their own personal needs. This may be an encouraging
factor for clients to continue using that company
designed classes. As none of the potential businesses competitors offer any such classes, this is
seen as an area for huge expansion and it would be hoped that in future, these classes would not
only attract children from Edgeworthstown, but also from the surrounding towns and villages.
• Foreign-nationals-Huge emphasis will be placed on attempting to attract customers from the
significant foreign-national population living in Edgeworthstown. This potential client base is
one which tends to keep to itself and does not engage in many community groups or
organizations and therefore it will be vital to entice them to join the ‘Fox Fitness Factory’.
2. COMPETITION ANALYSIS
4.1 key competitors
4.1.1. Key competing products and services
Our key competitor is the fitness facility which is located at Longford which is fifteen kilometers
from the planned location. The competing services are nutritional counseling, individual and
personal training and use of similar pieces of equipment. All the services to be offered by fox
Fitness Company are available at the nearest facility except for the idea of making fitness
services available to children and teenagers and also the terms of payment. Longford only offers,
daily, weekly and monthly subscription options.
4.1.2. Profile of the key competitor
Our competitor is a well-developed company which is big in size and has almost all the facilities
needed in health and fitness firm. It has a high turnover of clients. Being the only fitness center
available in this area it has a good turnover of clients because all people living in the surrounding
depends only on that facility. According to research, the company is highly profitable with a
market share of 25%.
4.1.3. Advantages and disadvantages of the competitors’ offerings
4.1.3.1. Advantages of competitors’ offering
The fitness company at Longford has several facilities which are well developed. Compared to
fox fitness company which is a starting company with fewer facilities and undeveloped, the
competitor is a well-established firm with several facilities for its clients. It also already has its
customers who may be hard to walk away.
The competitor is offering free nutrition classes for its entire clients regardless of whether the
clients have subscribed for fitness classes or not. As at fox fitness company clients will have to
subscribe to access nutritional classes for their own personal needs. This may be an encouraging
factor for clients to continue using that company
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A BUSINESS PLAN- LOCAL GYM 14
The competitor’s offerings are well known to the location which is an advantage to them as
compared to the new starting company which is unknown and a new brand name. It may take a
while for the starting new company to become popular in this new area.
The services have potential customers who have already subscribed for fitness services and trust
the facility. It may not be easy to lose these clients to the starting fox fitness company at
Edgeworthtown.
4.1.3.2. Disadvantages of competitor’s offerings
The fitness studio at Longford offers fitness services and training to adults only .there is no
facilities allocated for children and teenagers. This will be a great chance for Fox to offer
services to children as young as eight years and also for teenagers.
The fitness facility at Longford does not seem to be responsive to the new technology because it
is still using very outdated machines to offer services or maybe it has been dormant because of
the monopoly of offering these services.
4.1.4. The threat of substitute services
There is a threat of potential customers who are using home facilities for fitness. This will lead to
a loss of customers who should be using our facility. Since this location does not have a fitness
firm within the town, several people may have opted for purchasing their own home facilities.
This will lead to a loss of potential customers.
Potential clients may be accessing fitness classes through internet portals. This category of
inhabitants in the location may not be interested in subscribing for training classes because they
are able to access it through the internet at a cheaper cost or even free.
4.2. COMPETITIVE ADVANTAGE
4.2.1 Ability to offer and sustain excellent services
Clients usually need quality services the fox fitness company is planning to offer and sustain
quality services to its clients in order to maintain its customers by making their fitness needs
satisfied. Winning the trust of its potential customers will help them survive the competition in
the market. Quality services will be sustained by adopting the newest technology as soon as it is
available.
4.2.2. Creative expert staff and an ability to consistently innovate their services
Fox Fitness Company is planning to recruit experts in health and fitness services for quality
services to the clients. Employees will also be regularly trained to nature their professionalism
and also as an element of motivation to the staff which will make them feel valued by the
company hence will encourage them to provide quality services to the company’s customers
which will be a competitive advantage to the fox fitness company.
The competitor’s offerings are well known to the location which is an advantage to them as
compared to the new starting company which is unknown and a new brand name. It may take a
while for the starting new company to become popular in this new area.
The services have potential customers who have already subscribed for fitness services and trust
the facility. It may not be easy to lose these clients to the starting fox fitness company at
Edgeworthtown.
4.1.3.2. Disadvantages of competitor’s offerings
The fitness studio at Longford offers fitness services and training to adults only .there is no
facilities allocated for children and teenagers. This will be a great chance for Fox to offer
services to children as young as eight years and also for teenagers.
The fitness facility at Longford does not seem to be responsive to the new technology because it
is still using very outdated machines to offer services or maybe it has been dormant because of
the monopoly of offering these services.
4.1.4. The threat of substitute services
There is a threat of potential customers who are using home facilities for fitness. This will lead to
a loss of customers who should be using our facility. Since this location does not have a fitness
firm within the town, several people may have opted for purchasing their own home facilities.
This will lead to a loss of potential customers.
Potential clients may be accessing fitness classes through internet portals. This category of
inhabitants in the location may not be interested in subscribing for training classes because they
are able to access it through the internet at a cheaper cost or even free.
4.2. COMPETITIVE ADVANTAGE
4.2.1 Ability to offer and sustain excellent services
Clients usually need quality services the fox fitness company is planning to offer and sustain
quality services to its clients in order to maintain its customers by making their fitness needs
satisfied. Winning the trust of its potential customers will help them survive the competition in
the market. Quality services will be sustained by adopting the newest technology as soon as it is
available.
4.2.2. Creative expert staff and an ability to consistently innovate their services
Fox Fitness Company is planning to recruit experts in health and fitness services for quality
services to the clients. Employees will also be regularly trained to nature their professionalism
and also as an element of motivation to the staff which will make them feel valued by the
company hence will encourage them to provide quality services to the company’s customers
which will be a competitive advantage to the fox fitness company.
A BUSINESS PLAN- LOCAL GYM 15
4.2.3. Creating a culture of continuous improvement
The culture of continuous improvement in the firm from the start will be a competitive advantage
to the fox fitness company. Training employees and those in charge to always have the objective
of continuous improvement of services offered to the clients. And always improving every
element in the firm will lead to the growth of fox fitness in structure and size. It will also help to
maintain its clients and also attract potential clients from other facilities. This will assist the fox
to survive the competition.
4.2.4. Access a unique supplier
By having a unique supplier of equipment will differentiate the fox fitness from the other fitness
companies. Although a unique supplier may not be the cheapest it will be worth it. Customers
need quality products for quality services. Unique machines will attract and maintain potential
clients. This will be a good competitive advantage for the fox fitness company to remain in the
competitive market.
4.2.4. New technologies or systems
Adopting the latest technology and using the latest systems is the real deal. Clients will be
excited to be able to access every latest technology in machines, training, etc newest technology
goes hand in hand with better satisfaction of the customers. This means maintaining all potential
clients and attracting new clients to the facility. New technology will help enhance the quality of
the services being offered therefore enhanced the satisfaction of the customers. This will enable
the fox fitness to survive in the market and maintain its customers.
3. Marketing and communication strategy
3.1. Marketing strategies
Create a marketing website
A big number of people are using the internet every day looking for a business. This will be a
good strategy of reaching many people who are unreachable by word of mouth. By making the
website friendly, simple to understand, available in search engines and descriptive about the
studio location, available facilities and working hours. This strategy will help attract online
clients who may be interested in your services. Once the website is completely new and existing
clients will be encouraged to sign up, subscribe and book individual training, classes or facilities.
Creating a website may be costly but it's rewarding.
Using a local search strategy
There will be the use of phrases like fitness center at Edgeworthtown, gym 24 seven, etc. this
strategy is free but can have great returns. These phrases will be accompanied by our business
name, address, and phone number.
Google my business
4.2.3. Creating a culture of continuous improvement
The culture of continuous improvement in the firm from the start will be a competitive advantage
to the fox fitness company. Training employees and those in charge to always have the objective
of continuous improvement of services offered to the clients. And always improving every
element in the firm will lead to the growth of fox fitness in structure and size. It will also help to
maintain its clients and also attract potential clients from other facilities. This will assist the fox
to survive the competition.
4.2.4. Access a unique supplier
By having a unique supplier of equipment will differentiate the fox fitness from the other fitness
companies. Although a unique supplier may not be the cheapest it will be worth it. Customers
need quality products for quality services. Unique machines will attract and maintain potential
clients. This will be a good competitive advantage for the fox fitness company to remain in the
competitive market.
4.2.4. New technologies or systems
Adopting the latest technology and using the latest systems is the real deal. Clients will be
excited to be able to access every latest technology in machines, training, etc newest technology
goes hand in hand with better satisfaction of the customers. This means maintaining all potential
clients and attracting new clients to the facility. New technology will help enhance the quality of
the services being offered therefore enhanced the satisfaction of the customers. This will enable
the fox fitness to survive in the market and maintain its customers.
3. Marketing and communication strategy
3.1. Marketing strategies
Create a marketing website
A big number of people are using the internet every day looking for a business. This will be a
good strategy of reaching many people who are unreachable by word of mouth. By making the
website friendly, simple to understand, available in search engines and descriptive about the
studio location, available facilities and working hours. This strategy will help attract online
clients who may be interested in your services. Once the website is completely new and existing
clients will be encouraged to sign up, subscribe and book individual training, classes or facilities.
Creating a website may be costly but it's rewarding.
Using a local search strategy
There will be the use of phrases like fitness center at Edgeworthtown, gym 24 seven, etc. this
strategy is free but can have great returns. These phrases will be accompanied by our business
name, address, and phone number.
Google my business
A BUSINESS PLAN- LOCAL GYM 16
Google is widely used worldwide; creating a page with Google will help your business appear in
the search panel. Using unique keywords will help differentiate the business from other similar
businesses. People always search with Google and this will enable many people to reach our
contact, address, and location. Clients will be able to see the facilities by images. This will
promote the company's new brand name
Posting in social media
A big population today is using social media, therefore posting the business in commonly used
social sites will increase its popularity, for example, Facebook, Twitter, yep, yellow pages, etc by
making our location, address and available facilities available in social media, it will help reach
many people. The more the number of people it reaches the higher the number of potential
clients
Tracking the marketing campaigns
High levels of client’s acquisition occur online. It’s important to monitor the success of each
marketing operation used. This may require a specialist to develop the program of tracking each
campaign every minute. This operation will require funds but it’s worth knowing how the
marketing of the business is doing. In order to know which strategy is working best and which
one is not working.
5.1.1. Various levels of our services
The core level
Services at core level refer to benefits that the clients will get from fox Fitness Company. The
firm is convenient for people living in Egeworthtown who have to travel to Longford which is
fifteen kilometers away. Fox fitness is within the town and inhabitants don’t need to travel to
access fitness services. This will be cheaper and timesaving. It will be also of great importance to
the customers to get good health and development of the brain among the rest of the importance
of regular exercising.
Actual service
Actual service is one which is delivered after a decision has been taken on what the core service
is going to be. In our case at Fox Fitness Company, our service is a convenient service, therefore
providing the service will be on the basis of value for money. Actual services will be of high
quality. These services will include advice on nutrition for personal needs and also training on
fitness.
Augmented service
The augmented service will be the customer service support offered by the fox fitness company
after offering its services. The augmented product is a very important method to tailor the core
and actual services to the needs of an individual customer. A case of customers who are not used
to training often, there will be adding of fun elements to make the sessions fun for the first times
which can really be tough. This will encourage those are using fitness facilities for the first time
to find it fun and use it regularly.
Google is widely used worldwide; creating a page with Google will help your business appear in
the search panel. Using unique keywords will help differentiate the business from other similar
businesses. People always search with Google and this will enable many people to reach our
contact, address, and location. Clients will be able to see the facilities by images. This will
promote the company's new brand name
Posting in social media
A big population today is using social media, therefore posting the business in commonly used
social sites will increase its popularity, for example, Facebook, Twitter, yep, yellow pages, etc by
making our location, address and available facilities available in social media, it will help reach
many people. The more the number of people it reaches the higher the number of potential
clients
Tracking the marketing campaigns
High levels of client’s acquisition occur online. It’s important to monitor the success of each
marketing operation used. This may require a specialist to develop the program of tracking each
campaign every minute. This operation will require funds but it’s worth knowing how the
marketing of the business is doing. In order to know which strategy is working best and which
one is not working.
5.1.1. Various levels of our services
The core level
Services at core level refer to benefits that the clients will get from fox Fitness Company. The
firm is convenient for people living in Egeworthtown who have to travel to Longford which is
fifteen kilometers away. Fox fitness is within the town and inhabitants don’t need to travel to
access fitness services. This will be cheaper and timesaving. It will be also of great importance to
the customers to get good health and development of the brain among the rest of the importance
of regular exercising.
Actual service
Actual service is one which is delivered after a decision has been taken on what the core service
is going to be. In our case at Fox Fitness Company, our service is a convenient service, therefore
providing the service will be on the basis of value for money. Actual services will be of high
quality. These services will include advice on nutrition for personal needs and also training on
fitness.
Augmented service
The augmented service will be the customer service support offered by the fox fitness company
after offering its services. The augmented product is a very important method to tailor the core
and actual services to the needs of an individual customer. A case of customers who are not used
to training often, there will be adding of fun elements to make the sessions fun for the first times
which can really be tough. This will encourage those are using fitness facilities for the first time
to find it fun and use it regularly.
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A BUSINESS PLAN- LOCAL GYM 17
5.1.2. Positioning statement
The fox fitness company will be a modernized fitness studio which will make sure to adopt any
latest technology on health and fitness to ensure that it serves maximum satisfaction to its
customers. This company will stand to have unique brands which will distinguish it from other
similar businesses; consistent marketing will make the fox fitness shine over its competitors.
Efforts will be done to ensure that the popularity of the company is wide not only at this location
but also at other places.
5.2 Pricing
Fox fitness company will use premium pricing method of pricing for the target market of
Edgeworthtown. Premium pricing will be suitable in this business because once you have a client
subscribe for a certain period it’s very hard to lose them because they have subscribed. This will
also make clients consistent in getting the company’s services hence get to know the difference
between services offered at fox fitness as compared to other fitness centers.
Pricing table
Persona
l
training
Classes Semi-
persona
l and
classes
monthly quarterly annuall
y
monthly quarterly annually monthly quarterly Annually
Competitor
price.
Company at
Longford
$600 $900 $1200 $500 $800 $1100 $800 $1100 $1400
The fox
fitness
company
price
$600 $900 $1150 $500 $800 $1050 $750 $1050 $1350
5.3 sales forecast
Our forecast anticipates that sales will be slow for the first month with high number of clients
due to the free trial first classes that are to be offered and the high number of visiting clients will
be due to the urge of knowing what this new company has to offer, and then sales will start
increasing apparently when new clients will start subscribing for membership.
.
5.1.2. Positioning statement
The fox fitness company will be a modernized fitness studio which will make sure to adopt any
latest technology on health and fitness to ensure that it serves maximum satisfaction to its
customers. This company will stand to have unique brands which will distinguish it from other
similar businesses; consistent marketing will make the fox fitness shine over its competitors.
Efforts will be done to ensure that the popularity of the company is wide not only at this location
but also at other places.
5.2 Pricing
Fox fitness company will use premium pricing method of pricing for the target market of
Edgeworthtown. Premium pricing will be suitable in this business because once you have a client
subscribe for a certain period it’s very hard to lose them because they have subscribed. This will
also make clients consistent in getting the company’s services hence get to know the difference
between services offered at fox fitness as compared to other fitness centers.
Pricing table
Persona
l
training
Classes Semi-
persona
l and
classes
monthly quarterly annuall
y
monthly quarterly annually monthly quarterly Annually
Competitor
price.
Company at
Longford
$600 $900 $1200 $500 $800 $1100 $800 $1100 $1400
The fox
fitness
company
price
$600 $900 $1150 $500 $800 $1050 $750 $1050 $1350
5.3 sales forecast
Our forecast anticipates that sales will be slow for the first month with high number of clients
due to the free trial first classes that are to be offered and the high number of visiting clients will
be due to the urge of knowing what this new company has to offer, and then sales will start
increasing apparently when new clients will start subscribing for membership.
.
A BUSINESS PLAN- LOCAL GYM 18
Sales forecast table for the first year of operations 2019
Months 1 2 3 4 5 6 7 8 9 10 11 12 totals
Sales
Membership
Personal
training
0 2000 3000 4500 500 650 6500 7000 8000 820
0
8300 9000 139800
0 1000 15000 3000 5000 600 6200 6500 7000 750
0
8000 8500 260200
Sales forecast table for the year 2020
Months
1 2 3 4 5 6 7 8 9 10 11 12 totals
Sales
membershi
p
30000
3050 4000 4500 5000 5600 5700 6000 6500 7000 80000 850 260000
Personal
training
2000 2500 3000 3500 4000 4500 5000 5500 5600 6000 6500 700
0 240000
Sales forecast for the year 2021
Personal
training
4000 6500 4500 8000 7500 8900 7100 8520 6520 8500 680
0
4200 350000
Months 1 2 3 4 5 6 7 8 9 10 11 12 totals
Sales
membership
500
0
4000 8000 1000 9000 5000 400
0
9000 8000 1000 6000 8000 360,000
Sales forecast table for the first year of operations 2019
Months 1 2 3 4 5 6 7 8 9 10 11 12 totals
Sales
Membership
Personal
training
0 2000 3000 4500 500 650 6500 7000 8000 820
0
8300 9000 139800
0 1000 15000 3000 5000 600 6200 6500 7000 750
0
8000 8500 260200
Sales forecast table for the year 2020
Months
1 2 3 4 5 6 7 8 9 10 11 12 totals
Sales
membershi
p
30000
3050 4000 4500 5000 5600 5700 6000 6500 7000 80000 850 260000
Personal
training
2000 2500 3000 3500 4000 4500 5000 5500 5600 6000 6500 700
0 240000
Sales forecast for the year 2021
Personal
training
4000 6500 4500 8000 7500 8900 7100 8520 6520 8500 680
0
4200 350000
Months 1 2 3 4 5 6 7 8 9 10 11 12 totals
Sales
membership
500
0
4000 8000 1000 9000 5000 400
0
9000 8000 1000 6000 8000 360,000
A BUSINESS PLAN- LOCAL GYM 19
5.4. Sales strategy
Direct
Fox Fitness Company is planning to sell its services directly to the consumers. For clients to
receive services they have to visit the company’s facilities. The company does not have agents of
the business so interested clients will be required to visit the company services. Its very cheap for
the business to use direct sales strategy for the services of the company.
Advantages of direct strategies
It is convenient because clients will be able to access all the facilities and staff available
in the firm.
Direct selling strategy is less costly because there is no need of paying brokers or second,
third person to market our business
Using a website
The company details and services will be advertised at the company’s website and will also be
available at Google search engine. Developing a website may require the help of an expert which
may be expensive but it’s rewarding. This will make sure the information reaches the target
market efficiently. This method of marketing sale is the best as it will reach very many people
and the people are reached the more the number of potential customers. This will help in
positioning of this new company and making it popular in many areas.
Advantages
By using a website, a wide range of people will be reached because the current generation
is mostly using the internet to enquire business information. This will be a strategic
method of selling and marketing our services
It’s easy to use and reliable because information must reach the target population.
5.5. Communication strategy
To promote our services at the market place and communicate to our customers, the following
tools will be used;
Advertising
Our company will be advertised on televisions, radio stations and newspapers immediately after
establishing the company to ensure that we reach a wide range of people, advertisement will
proceed until its reputation is well know and its brand is well known to the target population.
Advertising on televisions will not be done regularly because its expensive, in order to cut
expenses we will opt for other options like using radios newspapers and also by making posters
and post them at various places in the surrounding towns.
Public relations
By having good public relations to the existing and new clients, the surrounding location and
everyone who comes by fox Fitness Company. This will build the reputation of the firm because
the people you relate well with must talk to someone else about the company. This strategy will
5.4. Sales strategy
Direct
Fox Fitness Company is planning to sell its services directly to the consumers. For clients to
receive services they have to visit the company’s facilities. The company does not have agents of
the business so interested clients will be required to visit the company services. Its very cheap for
the business to use direct sales strategy for the services of the company.
Advantages of direct strategies
It is convenient because clients will be able to access all the facilities and staff available
in the firm.
Direct selling strategy is less costly because there is no need of paying brokers or second,
third person to market our business
Using a website
The company details and services will be advertised at the company’s website and will also be
available at Google search engine. Developing a website may require the help of an expert which
may be expensive but it’s rewarding. This will make sure the information reaches the target
market efficiently. This method of marketing sale is the best as it will reach very many people
and the people are reached the more the number of potential customers. This will help in
positioning of this new company and making it popular in many areas.
Advantages
By using a website, a wide range of people will be reached because the current generation
is mostly using the internet to enquire business information. This will be a strategic
method of selling and marketing our services
It’s easy to use and reliable because information must reach the target population.
5.5. Communication strategy
To promote our services at the market place and communicate to our customers, the following
tools will be used;
Advertising
Our company will be advertised on televisions, radio stations and newspapers immediately after
establishing the company to ensure that we reach a wide range of people, advertisement will
proceed until its reputation is well know and its brand is well known to the target population.
Advertising on televisions will not be done regularly because its expensive, in order to cut
expenses we will opt for other options like using radios newspapers and also by making posters
and post them at various places in the surrounding towns.
Public relations
By having good public relations to the existing and new clients, the surrounding location and
everyone who comes by fox Fitness Company. This will build the reputation of the firm because
the people you relate well with must talk to someone else about the company. This strategy will
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A BUSINESS PLAN- LOCAL GYM 20
assist in increasing the popularity of the firm slowly day by day and it has the potential of
ranking the company high in the market. People with good relations to the public can be given
hired to help in marketing the company. This method is suitable for this starting company
because it’s cheap and can work miracles in making the company popular
Direct marketing
Direct marketing is also a good communication strategy whereby the staff and company
management explain to the public about the services offered by the firm. This strategy is the
cheapest to do because it requires very little money to use this strategy because it is usually done
by the company staff that may do it as part of their job.
Exhibitions
By participating in exhibitions, a bigger population will get to know about the firm because so
many people watch exhibitions. This will help raise the popularity of the firm hence placing it at
a higher position in the market. Exhibitions may be a bit expensive so exhibitions will only be
done irregularly in order to reduce expenses.
Word of mouth
Word of mouth can be very powerful. Communication about the firm can also be done by word
of mouth where by staff and management can talk to the public about their company and
encourage them to try their services. Clients can also be used by the company to talk to other
potential clients to encourage them start using our facility. This strategy does not need any
allocation of funds.
Internet and social media marketing
The company will register with Google search engine which is widely used in all countries.
According to the current research, about 80% of total population in each country visits Google
search engine at least four days in a week. By registering our business with Google search engine
will make it possible for many people to know it. Using Google search engine is cheap and
affordable. This method will ensure that fewer resources are used to reach so many people. The
company will be required to come up with key words which are unique to avoid confusing the
business with other similar businesses
A table of Communication strategies table forecast cost of three years
Costs 2019 Costs 2020 Costs year 2021
Advertising 1000 800
600
Public relations 50 50 50
Direct marketing 100 100 100
Exhibitions 250 250 250
Internet and
social media
marketing
20 20 20
assist in increasing the popularity of the firm slowly day by day and it has the potential of
ranking the company high in the market. People with good relations to the public can be given
hired to help in marketing the company. This method is suitable for this starting company
because it’s cheap and can work miracles in making the company popular
Direct marketing
Direct marketing is also a good communication strategy whereby the staff and company
management explain to the public about the services offered by the firm. This strategy is the
cheapest to do because it requires very little money to use this strategy because it is usually done
by the company staff that may do it as part of their job.
Exhibitions
By participating in exhibitions, a bigger population will get to know about the firm because so
many people watch exhibitions. This will help raise the popularity of the firm hence placing it at
a higher position in the market. Exhibitions may be a bit expensive so exhibitions will only be
done irregularly in order to reduce expenses.
Word of mouth
Word of mouth can be very powerful. Communication about the firm can also be done by word
of mouth where by staff and management can talk to the public about their company and
encourage them to try their services. Clients can also be used by the company to talk to other
potential clients to encourage them start using our facility. This strategy does not need any
allocation of funds.
Internet and social media marketing
The company will register with Google search engine which is widely used in all countries.
According to the current research, about 80% of total population in each country visits Google
search engine at least four days in a week. By registering our business with Google search engine
will make it possible for many people to know it. Using Google search engine is cheap and
affordable. This method will ensure that fewer resources are used to reach so many people. The
company will be required to come up with key words which are unique to avoid confusing the
business with other similar businesses
A table of Communication strategies table forecast cost of three years
Costs 2019 Costs 2020 Costs year 2021
Advertising 1000 800
600
Public relations 50 50 50
Direct marketing 100 100 100
Exhibitions 250 250 250
Internet and
social media
marketing
20 20 20
A BUSINESS PLAN- LOCAL GYM 21
Internet and social media
Common Social media users will be the deal, for example, facebook, twitter, yellow pages
among others. Currently, so many people are using social sites over the world. This will be a
good platform to market the fox fitness company. It’s sure that the information will reach
potential clients .through social media, our firm will gain popularity hence the opportunity of
expanding the number of our clients. Key performance indicators should be monitored to make
sure that the strategy is working well. It should be monitored by checking the comments being
written and also checking the number of people subscribing from the link posted on social media.
6. Staffing and operations
6.1. Organizational chart
The hierarchies of management at Fox Fitness Company starting from the top management
Managers
Professionals - accountant, procurement officer, human resource officer
Training experts & receptionists
Subordinate staff
6.2. Staffing
Health and fitness business requires experts. This is to ensure correct teaching; proper guidelines
on training and the right choice of training machine for a customer, apart from training staff the
company will need specialized staff in accounting, procurement, human resource, receptionists,
IT, marketing and security officers.
Training staff’s work type will be part time. The payment rate will be $ 10 per hour working
three hours per day, therefore, three employees will be required in a day for each group
Receptionists will be working full –time, their monthly salary will be $100
Security officers will be working full time; their monthly salary will be $ 150
Accounting officer, procurement officer, and human resource officer will be working on a full-
time basis their salary of $ 300 per month each.
IT and marketing officers will be hired when the need arises. Their payment will be based on the
job available when they are contacted.
Managers of the business will be the two partners who are the owners of the business; they will
be sharing profits equally on a monthly basis.
6.3. Operations
The business will require several items in order to carry out its operations for example,
Internet and social media
Common Social media users will be the deal, for example, facebook, twitter, yellow pages
among others. Currently, so many people are using social sites over the world. This will be a
good platform to market the fox fitness company. It’s sure that the information will reach
potential clients .through social media, our firm will gain popularity hence the opportunity of
expanding the number of our clients. Key performance indicators should be monitored to make
sure that the strategy is working well. It should be monitored by checking the comments being
written and also checking the number of people subscribing from the link posted on social media.
6. Staffing and operations
6.1. Organizational chart
The hierarchies of management at Fox Fitness Company starting from the top management
Managers
Professionals - accountant, procurement officer, human resource officer
Training experts & receptionists
Subordinate staff
6.2. Staffing
Health and fitness business requires experts. This is to ensure correct teaching; proper guidelines
on training and the right choice of training machine for a customer, apart from training staff the
company will need specialized staff in accounting, procurement, human resource, receptionists,
IT, marketing and security officers.
Training staff’s work type will be part time. The payment rate will be $ 10 per hour working
three hours per day, therefore, three employees will be required in a day for each group
Receptionists will be working full –time, their monthly salary will be $100
Security officers will be working full time; their monthly salary will be $ 150
Accounting officer, procurement officer, and human resource officer will be working on a full-
time basis their salary of $ 300 per month each.
IT and marketing officers will be hired when the need arises. Their payment will be based on the
job available when they are contacted.
Managers of the business will be the two partners who are the owners of the business; they will
be sharing profits equally on a monthly basis.
6.3. Operations
The business will require several items in order to carry out its operations for example,
A BUSINESS PLAN- LOCAL GYM 22
Premises – since the business is just starting its planned that it will use a rented premise to carry
out its operation. The rent of the premises is guaranteed to remain constant within the first 3
years. A bigger premise will be considered when the company grows which will be determined
by the number of clients the company will have
Opening hours – within the first year the business will be opened 12 hours a day until the
business is stable and have many clients .its planed that from the second year the business will be
opened 24 hours a day in 7 days
Equipment - the equipment starts depreciating from the fourth after three years of clear service.
Provision for depreciation will be calculated using a straight line method at 20%
License fee – the amount of license fee payable will remain constant throughout. It is a constant
fee unless changes are made.
Insurance - the insurance premiums will remain constant within the first three years. Then the
number of premiums will increase because the company will also be grown.
Miscellaneous -this will include; light, water, heat, etc. these expenses will remain constant for
the first one year and start increasing due to change of opening hours of the business.
A table of forecasted expenses for three years
cost Year 1 Year2 Year 3
salaries 13800 13800 13800
wages 1440 1440 1440
premises 2400 2400 2400
License fee 2400 2400 2400
Suppliers - the suppliers will remain constant as long as the supplied products are proved to be of
the required quality. Maintaining the same supplier will make business products unique. it will
also ensure the reliability of our supplies.
FINANCIAL PROJECTIONS AND KEY ASSUMPTIONS
7.1. Sources of funding
Fox Fitness Company will acquire a loan $300,000 from a bank for the start of business. The
money will be used to pay rent for the premises, pay salaries and wages for the first month
Pay license for the first month, buy pieces of equipment
7.2. Start-up costs
Rent for premises 200
Salaries 1150
Premises – since the business is just starting its planned that it will use a rented premise to carry
out its operation. The rent of the premises is guaranteed to remain constant within the first 3
years. A bigger premise will be considered when the company grows which will be determined
by the number of clients the company will have
Opening hours – within the first year the business will be opened 12 hours a day until the
business is stable and have many clients .its planed that from the second year the business will be
opened 24 hours a day in 7 days
Equipment - the equipment starts depreciating from the fourth after three years of clear service.
Provision for depreciation will be calculated using a straight line method at 20%
License fee – the amount of license fee payable will remain constant throughout. It is a constant
fee unless changes are made.
Insurance - the insurance premiums will remain constant within the first three years. Then the
number of premiums will increase because the company will also be grown.
Miscellaneous -this will include; light, water, heat, etc. these expenses will remain constant for
the first one year and start increasing due to change of opening hours of the business.
A table of forecasted expenses for three years
cost Year 1 Year2 Year 3
salaries 13800 13800 13800
wages 1440 1440 1440
premises 2400 2400 2400
License fee 2400 2400 2400
Suppliers - the suppliers will remain constant as long as the supplied products are proved to be of
the required quality. Maintaining the same supplier will make business products unique. it will
also ensure the reliability of our supplies.
FINANCIAL PROJECTIONS AND KEY ASSUMPTIONS
7.1. Sources of funding
Fox Fitness Company will acquire a loan $300,000 from a bank for the start of business. The
money will be used to pay rent for the premises, pay salaries and wages for the first month
Pay license for the first month, buy pieces of equipment
7.2. Start-up costs
Rent for premises 200
Salaries 1150
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A BUSINESS PLAN- LOCAL GYM 23
Purchase equipment 100,000
Pay license fee 200
Wages 120
Insurance 300
Miscellaneous 100
Advertising 1000
Public relations 50
Exhibitions 250
Direct marketing 100
Internet and social media 20
Total expenses 403,190
7.3. Loan repayment
The loan is payable from the second month of the business operations at monthly installments of
$50 .the loan will be paid within 7 months. It's planned to pay the loan within the specified
period to avoid extra charges over the charged interest.
The remaining money after all the expenses and operations of the business will be shared equally
among the partners.
7.4. Cash flow
The Cash flow statement shows the cash position of a firm it’s important to monitor the cash
position in order to know whether the company is profitable or not, a cash flow helps to know
whether the business is able to pay for its own expenses by comparing the amount of income and
total operational expenses. A cash flow chart will help determine whether the business is
generating cash. Forecasted cash flows for three years are shown by appendices 8.1.
7.5. Income statements (profit and loss)
Income statements for three years forecast are shown by appendices 8.2.
Appendices
Cash flow
FOX FITNESS COMPANY
FORECASTED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2019 TO 2021
Cash Flow from Operating Activities: 2019 2020 2021
Purchase equipment 100,000
Pay license fee 200
Wages 120
Insurance 300
Miscellaneous 100
Advertising 1000
Public relations 50
Exhibitions 250
Direct marketing 100
Internet and social media 20
Total expenses 403,190
7.3. Loan repayment
The loan is payable from the second month of the business operations at monthly installments of
$50 .the loan will be paid within 7 months. It's planned to pay the loan within the specified
period to avoid extra charges over the charged interest.
The remaining money after all the expenses and operations of the business will be shared equally
among the partners.
7.4. Cash flow
The Cash flow statement shows the cash position of a firm it’s important to monitor the cash
position in order to know whether the company is profitable or not, a cash flow helps to know
whether the business is able to pay for its own expenses by comparing the amount of income and
total operational expenses. A cash flow chart will help determine whether the business is
generating cash. Forecasted cash flows for three years are shown by appendices 8.1.
7.5. Income statements (profit and loss)
Income statements for three years forecast are shown by appendices 8.2.
Appendices
Cash flow
FOX FITNESS COMPANY
FORECASTED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 2019 TO 2021
Cash Flow from Operating Activities: 2019 2020 2021
A BUSINESS PLAN- LOCAL GYM 24
Cash received from customers $ 400,000 500,000 550,000
Cash paid for expenses (26,260) (26,260) (26,260)
Cash paid to suppliers (100,00) (50,000) (25,000)
273,740 423,740 498,740
Cash Flow from Investing Activities:
Cash paid to get additional equipment (20,300) (10,000)
Cash received from individual investments
Cash received from bank loan 300,000 - -
Cash paid for bank loan (350,000) - -
Cash paid to owner – withdrawal (20,000) (50,000) (50,000)
Net Increase (Decrease) in Cash for the Year 203,740 353,440 438,740
Add: Cash – at the start of the year - 203,740 120,000
Cash – December 31st 2021
$558,740
PROFIT AND LOSS ACCOUNT
FOX FITTNESS COMPANY
FORECASTED STATEMENT OF PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDING 31ST DECEMBER 2019 to 2021
2019 2020 2021
Particulars $ $ $
Total revenue 400,000 500,000 550,000
Less; expenses
Advertising 1000 1000 1000
Public relations 50 50 50
Exhibitions 250 250 250
Direct marketing 100 100 100
Internet and social media 20 20 20
Salaries 13800 13800 13800
Wages 1440 1440 1440
Rent 2400 2400 2400
License 2400 2400 2400
Insurance 3600 3600 3600
Miscellaneous 1200 3600 3600
Total (26,260) (26,260) (26,260)
Gross profit before tax 373740 473,740 523,740
Cash received from customers $ 400,000 500,000 550,000
Cash paid for expenses (26,260) (26,260) (26,260)
Cash paid to suppliers (100,00) (50,000) (25,000)
273,740 423,740 498,740
Cash Flow from Investing Activities:
Cash paid to get additional equipment (20,300) (10,000)
Cash received from individual investments
Cash received from bank loan 300,000 - -
Cash paid for bank loan (350,000) - -
Cash paid to owner – withdrawal (20,000) (50,000) (50,000)
Net Increase (Decrease) in Cash for the Year 203,740 353,440 438,740
Add: Cash – at the start of the year - 203,740 120,000
Cash – December 31st 2021
$558,740
PROFIT AND LOSS ACCOUNT
FOX FITTNESS COMPANY
FORECASTED STATEMENT OF PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDING 31ST DECEMBER 2019 to 2021
2019 2020 2021
Particulars $ $ $
Total revenue 400,000 500,000 550,000
Less; expenses
Advertising 1000 1000 1000
Public relations 50 50 50
Exhibitions 250 250 250
Direct marketing 100 100 100
Internet and social media 20 20 20
Salaries 13800 13800 13800
Wages 1440 1440 1440
Rent 2400 2400 2400
License 2400 2400 2400
Insurance 3600 3600 3600
Miscellaneous 1200 3600 3600
Total (26,260) (26,260) (26,260)
Gross profit before tax 373740 473,740 523,740
A BUSINESS PLAN- LOCAL GYM 25
Corporate tax 16% 59798.40 75798.40 83798.40
Gross profit after tax 313,941.60 397,941.60 439,941.60
References
Bayot, R. and Templeton, D.J., 2009. Aerobic Rice: Benefits without going to the Gym? (No.
420-2016-26641).
García-Fernández, J., Gómez-Millán, M.R.B. and García, A.J., 2017. Customer 360° Method:
Assessment of Customers in Fitness Centres. In Sports Management as an Emerging Economic
Activity (pp. 57-72). Springer, Cham.
Corporate tax 16% 59798.40 75798.40 83798.40
Gross profit after tax 313,941.60 397,941.60 439,941.60
References
Bayot, R. and Templeton, D.J., 2009. Aerobic Rice: Benefits without going to the Gym? (No.
420-2016-26641).
García-Fernández, J., Gómez-Millán, M.R.B. and García, A.J., 2017. Customer 360° Method:
Assessment of Customers in Fitness Centres. In Sports Management as an Emerging Economic
Activity (pp. 57-72). Springer, Cham.
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A BUSINESS PLAN- LOCAL GYM 26
Gardon, T.A., Rutledge, C., Heinlein, T. and Diaz, A., 2011. FIT Fitness Innovation Tools: The
All-In-One Digital Fitness Tool.
Gorla, N., Somers, T.M. and Wong, B., 2010. Organizational impact of system quality,
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Kawula, M., THE SELECTED ASPECTS OF MOTIVATION AS AN ELEMENT OF HUMAN
RESOURCES MANAGEMENT.
Laddha, S., CONSUMER BEHAVIOR AND PURCHASE INTENTIONS FOR HOME
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Leeman, Octavia, and Jaime S. Ong. "Lost and Found Again: Subjective Norm in Gym
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Rong, C., 2009. Study on the Theoretical Imagination of the Development and Operation of
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Gardon, T.A., Rutledge, C., Heinlein, T. and Diaz, A., 2011. FIT Fitness Innovation Tools: The
All-In-One Digital Fitness Tool.
Gorla, N., Somers, T.M. and Wong, B., 2010. Organizational impact of system quality,
information quality, and service quality. The Journal of Strategic Information Systems, 19(3),
pp.207-228.
Henneberg, S.C., Mouzas, S. and Naudé, P., 2009. Going beyond customers–a business
segmentation approach using network pictures to identify network segments. Journal of Business
Market Management, 3(2), pp.91-113.
Kawula, M., THE SELECTED ASPECTS OF MOTIVATION AS AN ELEMENT OF HUMAN
RESOURCES MANAGEMENT.
Laddha, S., CONSUMER BEHAVIOR AND PURCHASE INTENTIONS FOR HOME
FITNESS EQUIPMENT.
Leeman, Octavia, and Jaime S. Ong. "Lost and Found Again: Subjective Norm in Gym
Membership." DLSU Business & Economics Review 18, no. 1 (2008).
Nurkkala, V.M., Kalermo, J. and Jarvilehto, T., 2014. Development of exergaming simulator for
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A case of commercial fitness centers in Malaysia. Journal of Global Scholars of Marketing
Science, 25(2), pp.109-121.
Teik, O.D.L., 2014. Needs analysis of fitness members and bundling for profile segmentation of
the fitness industry(Doctoral dissertation, Multimedia University (Malaysia))
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the sports university. In Proceedings 2011 International Conference on Human Health and
Biomedical Engineering (pp. 754-757). IEEE.
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of Loudi Teachers College, 6, pp.85-88.
Zolotukhina, A. and Palekhova, L., 2014. ASSESSMENT OF THE OPPORTUNITIES AND
THREATS IN THE FITNESS MARKET. Majesty of Marketing, p.194.
Zolotukhina, A. and Palekhova, L., 2014. ASSESSMENT OF THE OPPORTUNITIES AND
THREATS IN THE FITNESS MARKET. Majesty of Marketing, p.194.
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