GYMFIT: A Business Plan for Entrepreneurship LCBB5001 Report

This report presents a business plan for GYMFIT, a new gym venture in East London that combines exercise facilities with a healthy food restaurant. The plan includes a business description outlining the mission and vision of GYMFIT, which focuses on providing high-quality gym equipment and promoting healthy eating habits. The industry analysis uses Porter's Five Forces to assess the competitive landscape, identifying key competitors and differentiation strategies. The operations section details the business processes, supply chain, and equipment requirements, while the marketing plan covers product offerings, pricing strategies, and promotional activities. The financial plan provides a revenue projection and cost analysis. The report emphasizes the importance of innovation in food products and the growing demand for health and fitness services post-pandemic, highlighting GYMFIT's potential for success in the UK market. This business plan is designed to attract investors and guide the management team in establishing and growing the GYMFIT business.

Entrepreneurship

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Business Description...................................................................................................................3
Industry Analysis........................................................................................................................4
Operations...................................................................................................................................7
Marketing Plan............................................................................................................................9
Financial Plan..............................................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
The term entrepreneurship is explained as an ability and readiness for develop, establish
and organise an enterprise or business with understand of its uncertainties in order to maximise
the number of profits. In simple terms, entrepreneurship is a process of starting the new business
venture by administrating and succeeding the start-up along with monitoring the risk factors to
earn sufficient profits. This report helps to understand importance of business plan for an
organisation. The select business idea is to open a gym with mini-healthy restaurant for offer
exercise services and diet products at a same place (Algar, 2021). Moreover, this report
highlights on business description to demonstrate mission statement, description of product and
vision of organisation. Business industry in terms of size, growth rate and sale projections will
also be included in this report. In the last, operation and management team which outline the
business steps to run gym operations will also highlight in this report.
MAIN BODY
Business Description
Healthy or fit individual is able to perform their work with more efficiency and gym is a
place which make a person fit as well as healthy. In simple terms, gym is an inside area which
provide the exercise equipment to the individual for perform physical exercise activities.
GYMFIT is a new venture which is established in East area of London and the main motive of

this Gym is to offer high quality of gym equipments to individuals and also to operate or regulate
a healthy food restaurant at the same place.
Mission- The mission of GYMFIT is to offer appropriate diet plan along with various equipment
which can help people to get better health to all those individuals who are engaged in physical
activities.
Vision- To open and manage the healthy food restaurants for fulfil need of safe and good quality
foods within the market along with focusing on the physical fitness.
Majority of the current gym offer only exercise equipments to the individuals but the gym
without proper diet is not useful (Andreasson and Johansson, 2016). Therefore, concept of
GYMFIT nation is to offer good quality of food by operating a healthy food restaurant so by
engage of all food items this is easy for the GYM authorities to attract more number of
individuals by adding their unique and healthy food services after or before gym. Innovation
among the food-products is one of the most important element for GYMFIT manager to increase
the number of participates or members with in the organisation. Moreover, the scope of GYM is
also broader because within pandemic conditions majority of people is focused towards improve
their health. Vertical structure is followed by the GYMFIT authorities to induce new strategies
and decision-making within the business.
Industry Analysis
Health industry is one of the major growing sections or part of the UK economy. The
current size of the fitness club industry of UK is approximately two billion British pounds. With
forecast of pandemic conditions this is identified that value of industry will fall because of
change in the rules and regulations of fitness industry. Further, UK health & fitness industry has
an approximate £3.6 billion and more than 11% of UK population are registered as active
members in the UK health or fitness industry (Number of gyms and fitness centres in the United
Kingdom (UK) from 2011 to 2021 (2021)). Porter's five-force model in context of GYMFIT are
mention as follow:

Threat of new entrants
The barrier of new entrants are very high and this is because the main development of
private gymnasium and leisure centres within country that are well-known and rich in capital
generate challenges for smaller companies to enter in the market. This refers that the power of
new entrants is low and it create problems like capturing market with better effect, making good
impression to attract more customers for GYMFIT to enter in UK market.
Bargaining power of supplier
Supplier also have low power in the health and fitness industry and this is because the
brand power and distribution capabilities of companies is more powerful. On the other side, due
to the fragmented supplying industry this is more difficult for suppliers to sustain in market for
longer period. GYMFIT introduce healthy food restaurant to engage new initiatives which helps
to enter in moderate position of health industry.
Bargaining power of buyers
Buyer is at dominant positions and this refers that the bargaining power of buyer is more
and this is because buyer has more choices. Most of the organisation sale same facilities and at
same price so this is easy for individuals to switch towards another business (Brighton, Wellard
and Clark, 2020). Further, gym companies offer services within minimum time-period maximum
in one day a buyer has option to consume or purchase other services.
Threat of Substitute products
Health and fitness centre within health industry work as the alternative for individuals but
Gym and training centre both are different so threat of substitutes has moderate power and this is

because in future GYMFIT also expand their format. This help organisation to attract more
individuals for participate in GYM facilities and activities.
Competitive-rivalry within an industry
The power of competition rivalry is intense or high also, industry factors and market
activities is more concentrated towards top companies (Guerrero and Urbano, 2019). On the
other side, industry rivalry is centred and focus towards the limitation strategy which generate
price war among the organisation.
Name of competitor Differentiation
David Lloyd The first competitor is well-known for their chain of sports, leisure and
health clubs and with pay sufficient amount all facilities are consumed
by member. In order to differentiate from it's competitor management of
GYMFIT offer cheap-membership plans of all facilities package. This
consists persons for become the member of new Gym facilities.
The Great Outdoor
Gym Company
One of the best method to workout is to perform physical exercise in an
open environment. Outdoor gym company operate their gym in more
than 1500 locations. Further, to differentiate it, GYMFIT management
considered towards engage of better and healthy food offering facilities
in the gym. This helps persons or members for make proper routine of
exercise and diet which work as an advantage of great outdoor gym-
members.
DW Fitness First The current activities of DW fitness first are more in variety and this
helps to perform work with variety of classes, gym-facilities and yoga
session. So GYMFIT differentiate it by engage of all those sections
which are in trend of health and fitness industry. Along with this it helps
to engage the physical activities as per customer trend.

Operations
After the pandemic conditions this is identified that majority of UK individuals is
engaged or interested to perform physical activities (Harvey, Vachhani and Williams, 2014). In
this section gym process is understand that helps GYMFIT for formulate an effective structure
for business.
The main vision of organisation is to engage both exercise equipments and food at the same
place. So the major focus of company process is to improve exercise and physical activities
factors to maximise immunity and improve health of individuals.
The supplies of products is based on all those sections that relates with physical factors and also
this is used for engage good quality raw-materials, healthy food-products, engage innovation in
food-products to improve the health. Also, the equipments are arranged by management through
implement of those factors which is used to outline and engage of activities that helps to
overview all sections in an appropriate manner by engage of gym sections.
Trade-mill, Cycles, Iron-rods, etc. and many more gym equipments are required by the
individuals to perform physical activities in an organised manner. On the other side, potential
investor are engaged in business for complete work with equal approach.
In order to the transport all equipments truck is required by the GYMFIT and this helps to
complete work with engage of those factors that make realistic activities for raise capital and
participate of all activities in a confidential manner.

On the other side, to engage more number of customers management is focused towards
implement of all those actions that aids individuals for invest in GYMFIT to become a member.
In context of GYMFIT, Food-products related activities to manage the restaurant are also
engaged and this make a change in food industry because now individuals order their healthy
food after completion of exercise.
Methods to earn revenue
Sell more, increase in price and reduction in cost are the three main methods which is
used for maximise and improve the company profitability (Naranjo-Valencia and et. al., 2018).
Some of the effective methods adopted by GYMFIT to increase revenue are mention as follow:
 Increase in the number of customers- With bring more individuals or by increase the
number of members for GYMFIT this is easy for management to enhance or boost
revenue for business. Moreover, by operate healthy food restaurant this is easy for
GYMFIT to increase the number of revenue through offer more products.
 Increase average transactions size- The main focus of management is to increase
number of products which are sold by organisation to customers. From the perspective of
GYMFIT this is understand that the number of business transactions is maximised
through engage of exercise equipments and food-products so this both are consume by
purchase by members (Tsouramanis, 2018). It works as effective approach because the
more number of customer, increase number of spend and this leads to generate more
revenue.
 Maximising the productivity- With offer different rewards to the skilled individuals this
is easy for GYM-FIT authorities to recognise and understand which individuals are more
productive.
MANAGEMENT TEAM
Name Skill Importance for business
Founder Motivator Entrepreneur is an individual who
motivate all the persons to improve
their performance. With use of
motivating skill GYMFIT founder
increase efficiency of persons to do
physical activities in a proper

manner.
Trainer Organiser The current market factors consists
all those actions and activities
through which individuals is able to
train the members for perform all
exercises and action in a proper
manner.
Marketing Plan
Products- The fitness centre or gym have a wide range of exercise related equipments such as
strength training, cardiovascular equipments, etc. which help the clients. Along with this
organisation also offer personal and certified trainers who act as a guide in the specialised
programmes. Exercises classes such as aerobics, Pilates, group cycling, etc. are also consider as
product for organisation.
Price- From the perspective of GYMFIT this is identified that management engage high-quality
equipments as well as training programmes but they are new in market so competitive pricing
strategy is implemented by management. Also, professional trainer are engaged by management
to trained the members so some extra amount of money is spend by the person who work as
member for organisation.
Place- The operations are started in East London and than slowly organisation enhance their
market size. Moreover, the respective organisation selected those place from where this is easy
for individuals to reach towards gym (Yan and Yan, 2016). Like, gym is opened at those places
where public transport is easily available and also members park their vehicles safely.
Promotion- Most of the members perform as a active participant for their promotional strategies
as they are the main source that recognise company image and marketing activities. Moreover,
famous personalities are engaged by GYMFIT to promote and also both print as well as digital
media is used to promote company.
Financial Plan
USE OF FUND
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Revenue (from £ 5,000 £4,500 £ 6,000 £ 5,000 £5,500 £ 4,000

operations and
marketing
section)
Fixed Costs
(List of fixed
cost)
£ 1500 £ 1500 £ 1500 £ 1500 £ 1500 £ 1500
Variable Costs
(List of
variable cost)
£ 1,100 £ 1,300 £ 1,400 £ 1,500 £ 1,600 £ 1,200
Profit £ 2,000 £ 4,000 £ 2,700 £ 3,700 £ 4,200 £ 6,200
CONCLUSION
With the analysis of above report, this is concluded that entrepreneur perform an
important role to introduce new business operations and functions. The current health industry
has wide scope and with engage of innovation methods as well as high-quality equipments Gym
are offering better services to its members. Also, with the analysis of industry through use of
Porter's five-force model management is focused for introduce and establish healthy restaurant in

business. In the last, by formulate of marketing and operational plan this is easy for business to
manage company actions and project with proper steps and strategies.

REFERENCES
Books and Journals
Algar, R., 2021. The Fitness Industry in the United Kingdom. In The Global Private Health &
Fitness Business: A Marketing Perspective. Emerald Publishing Limited.
Andreasson, J. and Johansson, T., 2016. ‘Doing for group exercise what McDonald's did for
hamburgers’: Les Mills, and the fitness professional as global traveller. Sport,
Education and Society, 21(2), pp.148-165.
Brighton, J., Wellard, I. and Clark, A., 2020. A history of gyms and the evolvement of
contemporary fitness. In Gym Bodies (pp. 37-52). Routledge.
Guerrero, M. and Urbano, D., 2019. A research agenda for entrepreneurship and innovation: the
role of entrepreneurial universities. In A research agenda for entrepreneurship and
innovation. Edward Elgar Publishing.
Harvey, G., Vachhani, S.J. and Williams, K., 2014. Working out: aesthetic labour, affect and the
fitness industry personal trainer. Leisure studies, 33(5), pp.454-470.
Naranjo-Valencia, J.C and et. al., 2018. Entrepreneurship and innovation: Evidence in colombian
SMEs. In Handbook of Research on Intrapreneurship and Organizational Sustainability
in SMEs (pp. 294-316). IGI Global.
Tsouramanis, D., 2018. The use of social media in marketing within the health and fitness gym
wear industry, focusing on the utilisation of Instagram to shape and preserve consumer
relationships (Doctoral dissertation, University of Chichester).
Yan, J. and Yan, L., 2016. Individual entrepreneurship, collective entrepreneurship and
innovation in small business: an empirical study. International Entrepreneurship and
Management Journal, 12(4), pp.1053-1077.
Online
Number of gyms and fitness centres in the United Kingdom (UK) from 2011 to 2021, (2021)
[Online] Available through <https://www.statista.com/statistics/1194837/gyms-fitness-centres-
uk/>