Enterprise and Entrepreneurship: Gym Business Plan for London

This report outlines a comprehensive business plan for a gym, focusing on its proposed services, target customers, and competitive landscape. The gym will offer a unique group dynamic concept, patenting its business idea. The report analyzes the target market (youth and adults), identifies competitors (large gyms, dance classes, and yoga centers), and highlights the gym's differentiating factors. It includes a skill analysis, emphasizing communication and addressing skill gaps through training. A detailed profit and loss account and break-even analysis are provided, along with funding sources (bank loans and business angels) and plans for acquiring resources. Furthermore, it discusses the management information system and outlines the vision of the business.

ENTERPRISE AND
ENTREPRENEURSHIP

TABLE OF CONTENTS
MAIN BODY...................................................................................................................................3
Proposed future business.............................................................................................................3
Customers....................................................................................................................................3
Competitors ................................................................................................................................3
Skill analysis...............................................................................................................................4
Profit and loss account................................................................................................................4
Sources of funding......................................................................................................................4
Plans for acquiring resources......................................................................................................5
Management information system................................................................................................5
Vision..........................................................................................................................................5
REFERENCES................................................................................................................................7

MAIN BODY
Proposed future business
The main service which the company is gong to launch is gym for the people. This gym
will be mainly opened in the residential complex of London and thus will encompass the
different equipment along with world-class services. This gym will offer the friendly
environment and thus will consist of all kinds of equipment. This gym is not only about the
regular fitness class built is beyond that. Here the gym has bought a highly innovative concept
for the people which is group dynamic (Chambers and Humble, 2017). This group dynamic will
be highly beneficial for the people where the main idea is that the group mainly energizes their
members and thus pushes them. The main IP which will be used for protecting the business idea
is patent. Company will protect its business idea of gym by acquiring the patent over it. This will
provide the legal rights to gym to sue other competitor who will use this idea.
Customers
This gym service will mainly target the B2C customers that is business to customers.
Here the main ed users will be youth between the age group of 18 to 30 as well as adults between
the age group of 31 to 40. Majorly the gym service will be targets to both males and females
belonging to this age group & will mainly target the upper class individuals along with people
living in residential complex (McKeever, 2016). The major USP of this service is to provide the
expert advice from the major experts on transforming the body shape as well as changing the
health behavior of large number of people to lead a healthy life. The major customer needs
which this gym will focus is providing the healthy life to people. Nowadays, health has become
one of the major concern thus in this modern era, this innovative gym will prove to be an
effective way and it will provide all the mixture of facilities in a single gym.
Competitors
The major competitors of this gym are the big gyms providing variety of services like
basketball courts, polls etc. Besides this, other competitors of the gym are the large dance classes
as well as yoga centers which are highly dedicated towards the providing a healthier life to the
people through numerous means like Zumba, aerobics, dance etc. These all competitors mainly
provides the similar services which are directed towards changing the health behaviour of
people. These competitors due to their high brand name and brand awareness captures a great
market share (Burns and Dewhurst, 2016). The large gym having various services and products

mainly acquires around 30% of the market share while the big yoga centers have a market grasp
of nearly 21.4%. On the other hand, the local dance classes does not have much share in the
market as these are not promoted on the wide platform. Although these competitors have large
market share and great brand in the market, but the main rationale which makes this gym
different from the other ones is the blend of all services in a single room. Most of the well-
known gyms and yoga centers focuses on the single service like either they provide
cardiovascular activities or they address exercises for mental health. This gym is a single room of
variety of activities where customers will get all the services ranging from Zumba to cardio
training. Not only this, gym will have a series of expert which will guide on various dietary
requirements according to their health, age,etc. Customers will encounter free dietary charts and
can have free checkups. The mixture of all the services at single place makes this gym different
from others.
Skill analysis
The major skills which the organization have in order to take this business idea of gym to
another reveal is communication skills. This is one of the most important skill which is required
which is required for engaging the customers as well as attracting them. This effective
communication skill will help to interact with people and entice them. The major skills which are
not well-developed and needs to be developed are time management as well as problem solving
skills. Due to the lack of time management skills, there remains the lack of proper management
of the activities as well as tasks (Ekanem, 2017). Due to lack of problem solving skill, it will
become difficult to analyze the issues which this business idea might face from various
perspectives. In order to address this skill gap, the most effective way is to attain the various
training programs and seek the help of technology. Where on one hand, the training sessions will
help to know that how to manage time and prioritize the work on the other hand, use of online
resources like problem solving quiz etc will help to evaluate issues from different ways and
generate feasible solution.

Profit and loss account
Cash flow
Year 1
Particul
ars
Jan
uar
y
Feb
rua
ry
Ma
rch
Apr
il
Ma
y
Jun
e
Jul
y
Aug
ust
Sept
emb
er
Oct
obe
r
Nove
mbe
r
Dece
mbe
r
Cash
inflows
Opening
cash
inflow
400
0
410
0
546
2
688
6.44
837
3.73
7
992
4.28
2
115
38.4
4
132
16.5
5
1495
8.92
167
65.8
1
1863
7.47
2057
4.1
Sales
revenue
600
0
612
0
624
2.4
636
7
649
5
662
4
675
6.97
5
689
2.11
4 7030
717
1 7314 7460
Other
income
150
0
150
0
150
0
150
0
150
0
150
0
150
0
150
0 1500
150
0 1500 1500
Total
cash
inflows
115
00
117
20
132
04.
4
147
53.6
9
163
68.3
3
180
48.7
7
197
95.4
2
216
08.6
6
2348
8.87
254
36.3
7
2745
1.44
2953
4.34
Cash
outflows
Material
210
0 918
936
.36
955.
087
2
974.
188
9
993.
672
7
101
3.54
6
103
3.81
7
1054
.493
107
5.58
3
1097
.095
1119
.037
Labour
180
0
180
0
180
0
180
0
180
0
180
0
180
0
180
0 1800
180
0 1800 1800
Other
expenses
100
0
104
0
108
2
112
5
117
0
121
7
126
5.31
9
131
6 1369
142
3 1480 1539
Administ
ration
expenses
250
0
250
0
250
0
250
0
250
0
250
0
250
0
250
0 2500
250
0 2500 2500
Total
cash
outflows
740
0
625
8
631
7.9
6
637
9.95
1
644
4.04
8
651
0.32
6
657
8.86
5
664
9.74
9
6723
.062
679
8.89
5
6877
.339
6958
.491
Cash
deficit /
surplus
or
410
0
546
2
688
6
837
4
992
4
115
38
132
16.5
5
149
59
1676
6
186
37
2057
4
2257
6

closing
cash
balance
Year 2
Particul
ars
Jan
uar
y
Feb
rua
ry
Ma
rch
Apr
il
Ma
y
Jun
e
Jul
y
Aug
ust
Sept
emb
er
Oct
obe
r
Nove
mbe
r
Dece
mbe
r
Cash
inflows
Opening
cash
inflow
500
0
430
0
510
9
597
6.98
690
3.87
2
788
9.55
5
893
3.85
7
100
36.5
4
1119
7.33
124
15.8
5
1369
1.68
1502
4.33
Sales
revenue
700
0
714
0
728
2.8
742
8
757
7
772
9
788
3.13
7
804
0.8 8202
836
6 8533 8704
Other
income
180
0
180
0
180
0
180
0
180
0
180
0
180
0
180
0 1800
180
0 1800 1800
Total
cash
inflows
138
00
132
40
141
91.
8
152
05.4
4
162
80.9
174
18.1
2
186
16.9
9
198
77.3
4
2119
8.94
225
81.4
9
2402
4.64
2552
7.95
Cash
outflows
Material
250
0
107
1
109
2.4
2
111
4.26
8
113
6.55
4
115
9.28
5
118
2.47
1
120
6.12
1230
.242
125
4.84
7
1279
.944
1305
.543
Labour
250
0
250
0
250
0
250
0
250
0
250
0
250
0
250
0 2500
250
0 2500 2500
Other
expenses
150
0
156
0
162
2
168
7
175
5
182
5
189
7.97
9
197
4 2053
213
5 2220 2309
Adminis
tration
expenses
300
0
300
0
300
0
300
0
300
0
300
0
300
0
300
0 3000
300
0 3000 3000
Total
cash
outflows
950
0
813
1
821
4.8
2
830
1.56
4
839
1.34
2
848
4.26
4
858
0.44
9
868
0.01
8
8783
.096
888
9.81
5
9000
.311
9114
.724
Cash 430 510 597 690 789 893 100 111 1241 136 1502 1641

deficit /
surplus
or
closing
cash
balance 0 9 7 4 0 4
36.5
4 97 6 92 4 3
P&L
Year 1 Year 2
Particulars
Cash inflows
Opening cash inflow 134437.744 106478.989
Sales revenue 80472.5384 93884.6281
Other income 18000 21600
Total cash inflows 232910.282 221963.617
Cash outflows
Material 13270.8808 15532.6942
Labour 21600 30000
Other expenses 15025.8055 22538.7082
Administration expenses 30000 36000
Total expenses 79896.6862 104071.402
P/L 153013.596 117892.215
Breakeven
Break-Even analysis
Particulars Formula Figures
Selling price per unit 10
Variable cost per unit 6
Contribution per unit
Selling price per unit -
variable cost per unit 4
Fixed cost 25000

BEP (in units)
Fixed cost / contribution per
unit 6250
BEP (in value or monetary terms)
BEP (in units) * selling price
per unit 62500
Units need to sell for
attaining desired profit
margin
Particulars Formula Figures
Fixed cost or expenses 25000
Desired profit 4000
Contribution per unit 4
Number of units required to sell
Fixed cost + desired profit
margin / contribution per
unit 7250
Sources of funding
The most suitable source of funding which will be used for making this business idea a
successful will be bank loan and business angels. The main rationale behind seeking the support
of bank loans for growing the business opportunity is that the interest rates are generally low as
compared to the sources which also becomes its one of the greatest advantage. Besides this,
another source of funding which will help to grow the business as well as will help to take the
brand to wider audience are the business angels (Berbegal-Mirabent, Gil-Doménech and Alegre,
2016). Besides seeking the help of banks for loans, the major objective of selecting business
angels as the main entity in flourishing business idea is that there is no need for any collateral
which are the personal assets in case of business angels. Without keeping the personal asset as
collateral, loan is approved and thus there is no interest changed in this.
Plans for acquiring resources
The various tangible resource like equipment, machineries, inventory for the business,
gym will be obtained through various means. The first will be taking the loan from bank. In
order to acquire these resources, the bank loans will be helpful for the current year. In order to
acquire these for the upcoming years various other financial institutions will be reached. The

major objective of taking help of financial institution for upcoming years is that it will be re-
payed within the given period of time in form of installments to them (Grit, 2019). Apart from
this, the another source which will go for acquiring these tangible as well as intangible resources
for the extended period of time will be contract from the other organizations. As contract
generally exists for the long term thus in order to make use of the various tangible and intangible
resources for upcoming 2 years, contract with the organizations and agencies will be made for
supplying these in exchange of money.
Management information system
The most important management information system which will be required for
effectively controlling the operations as well as activities of organization are database
management system and decisions support system. The database management system mainly
helps to store all the information about customers and thus helps to retrieve the data. This
database management system will be used in the gym in order to track the detains of customers
and hence store their overall data like their name, date of joining gym, their health status etc.
Besides this, the decisions support system will also be used in gym which will help to effectively
take the proper decisions (Blackwell, 2017). Through the tons of data as well as information
about customers, this system will help the management of gym to take effective decisions. Apart
from this, this system by gathering the various information like customer trend, competitors,
market trend will help to generate the comprehensive report and thus will help in reliable
decision-making.
Vision
The vision of this business idea is to provide a high quality experience to the customers
by working towards the interest of customers and thus transforming their health through healthy
products. This business idea will help the organization to achieve competitive advantage through
their innovative services and products. Besides this, as this gym is the integration of natural as
well as technological facets thus in future this will help the gym to expand their business in
wider geographies (Chambers and Humble, 2017).

REFERENCES
Books & Journals
Berbegal-Mirabent, J., Gil-Doménech, D. and Alegre, I., 2016. Improving business plan
development and entrepreneurial skills through a project-based activity. Journal of
Entrepreneurship Education.19(2). p.89.
Blackwell, E., 2017. How to prepare a business plan: your guide to creating an excellent
strategy, forecasting your finances and producing a persuasive plan. Kogan Page
Publishers.
Burns, P. and Dewhurst, J. eds., 2016. Small business and entrepreneurship. Macmillan
International Higher Education.
Chambers, I. and Humble, J., 2017. Developing a Plan for the Planet: A Business Plan for
Sustainable Living. Routledge.
Ekanem, I., 2017. Writing a business plan: a practical guide. Routledge.
Grit, R., 2019. Making a Business Plan. Routledge.
McKeever, M., 2016. How to write a business plan. Nolo.