Pump Zone Gym & Cafe: Start-up Business Plan, Market Analysis

This report presents a comprehensive business plan for a gym and cafe start-up named "Pump Zone." It explores the fitness industry's growth, the importance of customer experience, and the role of marketing and online presence. The report also discusses the partnership business structure, highlighting its advantages in terms of investment, risk sharing, and operational efficiency. Internal factors such as human resources and external factors like political and economic conditions are considered. Business models like PESTLE and Porter's Five Forces are used to analyze market dynamics, competition, and potential threats. The plan emphasizes a focus on customer experience, strategic marketing, and technological integration to ensure the business's success and sustainability.

Individual Report

Table of Contents
INTRODUCTION...........................................................................................................................2
TASKS............................................................................................................................................2
1. Start-up business ....................................................................................................................2
2. Ways to make business functional..........................................................................................3
3.Type of business.......................................................................................................................3
4.Internal and external information for the purpose of planning, decision making and control
of resources.................................................................................................................................4
5.Business Models and theories such as PESTLE and Porter's Five forces to analyse the key
factors..........................................................................................................................................5
Porter's Five forces......................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
1

INTRODUCTION
Start-up is the setup of new venture which can be established by one or more group of
people with a unique idea for the sales of products or services in the market. The main goal is to
bring new ideas with the innovations. The report will demonstrate the type of business and
further elaborate about the internal and external factors which are required for planning,
decision-making and the control purpose in the future. Under this report, different business
models are used to analyse the main factors which affect the business decisions. A new business
set up will be a gym with cafe in the name of Pump Zone.
TASKS
1. Start-up business
The start-up business idea which is used for the business is the idea of opening a gym with cafe.
As the fitness industry has developed in recent years as the people are getting aware about their
health, fitness and issues like obesity. Nowadays, young people are taking initiative for their
well-being and ready to pay the prices for the improvement of their health. The services which
will be offered at the gym will be personal training, steam rooms, massage, classes of yoga,
pilates,aerobic classes, spa, physiotherapy and many others. Our gym will provide variety of
classes with different level of intensity on the basis of intensity. Diet chart will also be provided
along with the first meal of the day. There will be a medical department of the gym in case any
client faces any health issue during the gym then they will be provided physical therapy and
various medical services to help the clients to manage and recover. A special department will
also be made for the mental health of the customers by providing them therapy that can be done
by online, phone, video conferencing or in person. The cafe of the gym area will be a social
atmosphere, soft seating and music which brings the people back to the same gym due to its
services. The menu will be full of healthy food options which are prepared fresh with organic
food. Amenities will be must to attract the people by music videos, TV, shows, news or market
updates. The market research is also required for the new setup idea to find out the key areas and
behaviour of the customers. Moreover, the best staff is required to train the people with the
proper training and with latest fitness technology (Barrow, Barrow and Brown, 2018)
.
2

2. Ways to make business functional
Since the pandemic, people are getting aware about their complete physical and mental health.
Being healthy should be the part of life in order to stay fit and prevent from the long-term
diseases. There are several ways to make business functional which are as follows-
 Focus on customer experience as making a positive impact on the customers is important
to make the new setup more successful in the customer journey. Customer experience
allows to bring the long term loyal customers that will surely increase the revenue of the
setup. As the customers, nowadays prefer speedy,convenient and great customer
experience from the operations and management of the company.
 In order to make the business functional proper system of marketing is required in the
setup business to represent the ideas in front of customers to attain the mission of the
business. First step is to define the brand by conducting the campaigns for the marketing
purpose (Blank, and Dorf, 2020). With the help of market research new set up can target the market and all the
opportunities to deal with the customers. Moreover, it allows the new company to get the
information about the political, social and economical factors.
 Website can be used for the online presence of the new setup A good website can be an
important aspect in the business and for the purpose of online marketing strategy. A well
made website can be the medium to maintain good client relationships with making the
new customers so that they can be retained in the future.
 Launch of mobile phone application for contactless approach in the gym and cafe which
results in increasing efficiency and effective as it reduces time and efforts. These
initiative efforts will facilitates in attracting more people in the gym. Furthermore, these
initiatives will result in building strong social networks and promotes healthy relationship
among other providers of facilities (Orozco, 2021).
3.Type of business
The growth of business also depend upon the type of business and the way it is being operated. If
the business perform well then , it can collaborate with different brands of the market to enhance
the awareness of the brand such as by email marketing, promotions, sponsorship, advertising,
promotions from websites and many others. The type of business which will be used that is
3

partnership because under this two or more people come together to execute the plan to share
the income and losses together. The gym set up with cafe requires a good investment.
 Partnership is easier to form a business setup with less formalities for the new business
setup. The main thing is required to have a written document among the partners.
 The level of risk is low as all the members in the partnership agree to share the losses
equally. If the business is sole proprietorship then the burden will be on the single owner
that lead to less profitability.
 The work of the company will be distributed among all the members as per their level
of knowledge which will help in generating the higher profits.
 If the business can not perform well then it can dissolve the start-up without the legal
procedure. It is easy and cheap to dissolve the partnership setup (Pereira, 2019).
4.Internal and external information for the purpose of planning, decision making and control of
resources
Internal Factors
The new set up is affected by the various internal factors such as finance, human resource and
modern technology.
Human resource
Human resource is the essential factor of the internal part of the environment. This factor is
connected with the people of the business as the business is operated with the help of people
such as employees or the management they play an important in decision making of the business
such as policy making and setting the budgets.
External Factors
The new set up is affected by the various external factors such as political factors, economic,
technological or social.
Political Factors
The factors such as tax policy or political stability of the countries can affect the operations of
the business. High political stability allows a business to predict the various trends of the market.
Frequent changes in the policies of the country can affect the performance of the new business
(Neumeyer and Santos, 2018).
4

5.Business Models and theories such as PESTLE and Porter's Five forces to analyse the key
factors
There are various business models which are required to analyse all the factors of the market in
order to make profit to sell the products or services in the target market. Some of the models and
theories are explained below-
PESTEL Analysis
It is a framework which is used to analyse the external forces of the company where PESTEL
stands for political, economical, social, technological, environmental and legal factors (Boone,
Kurtz and Berston, 2019).
Various Factors Explantation
Political Factors The political environment of the different
countries affect the operations of the business.
High political stability allows a business to
predict the various trends of the market.
Frequent changes in the policies of the country
can affect the performance of the new
business.
Economical Factors The new setup can make use of economical
factors such as saving rate or inflation rate to
predict the growth of the setup in the market.
Social Factors Pump zone can understand the customers of
the targeted market on the basis of social
factors such as gender, preferences, attitude,
leisure interest or consciousness.
Technological Factors Pump zone can do the market research to
ascertain the various technologies which are
used by the competitors because technology
industry has been transforming over the years
(Gitman , McDaniel and Shah, 2018).
Environmental Factors Before entering into a new market with a new
5

business idea it is essential to evaluate the
environmental factors such as law related to
the pollution and waste management.
Legal Factors Legal factors such as consumer
protection ,health and safety law. The new
setup can not enter market without having
knowledge of laws (Cooley and Prescott 2021).
Porter's Five forces
Porter's Five forces is the popular strategic tool to determine the sources of competition available
in the market. This model was developed in 1979 by Michael E Porter of Harvard Business
School as simple framework for evaluating the competitive strength and position of a business
organisation. The five forces that depicts the points of competitive rivalry are as follows-
 Competitive rivalry- The new setup can tackle the existing competitors in fitness
industry by building a sustainable differentiation and by building scale so that it can
compete better with the competitors (Moro Visconti, 2019).
 Supplier Power- The new setup can tackle the bargaining power of suppliers by
experimenting with product designs using different materials so that if the prices go up of
one raw material than company can shift to another for the better options.
 Buyer power- The new setup can tackle the bargaining power of buyers by rapidly
innovating new products and bringing new services in the market.
 Threat of substitution- The new setup can tackle the threat of substitute products or
services by increasing the switching cost for the customers and by understanding the core
need of the consumer rather than what the customer is buying and by being service
oriented rather than just product oriented.
 Threat of new entrants- The new set up can tackle the threats of new entrants by
innovating new products and services . New products not only brings new customers to
the fold but also give old customer a reason to buy products or avail the services
(Euchner, 2019).
6

CONCLUSION
It can be concluded that in order to execute the new business setup it is required to consider the
various internal and external factors. The above report concluded that the partnership type of
business for the new set up will be easier to form and with more flexibility. The business models
are also used in the above report to understand the market better.
7

REFERENCES
Books and Journals
Barrow, C., Barrow, P. and Brown, R., 2018. The Business Plan Workbook: A Step-by-step
Guide to Creating and Developing a Successful Business. Kogan Page Publishers.
Blank, S. and Dorf, B., 2020. The startup owner's manual: The step-by-step guide for building a
great company. John Wiley & Sons.
Boone, L.E., Kurtz, D.L. and Berston, S., 2019. Contemporary business. John Wiley & Sons.
Cooley, T.F. and Prescott, E.C., 2021. 1. Economic Growth and Business Cycles. In Frontiers of
business cycle research (pp. 1-38). Princeton University Press.
Euchner, J., 2019. Yes… and: Making lean startup work in large organizations. Research-
Technology Management, 62(6), pp.36-43.
Gitman, L.J., McDaniel, C. and Shah, A., 2018. Introduction to business. Rice University.
Moro Visconti, R., 2019. How to prepare a business plan with excel. Available at SSRN
2039748.
Neumeyer, X. and Santos, S.C., 2018. Sustainable business models, venture typologies, and
entrepreneurial ecosystems: A social network perspective. Journal of cleaner
production, 172, pp.4565-4579.
Pereira, E., Loureiro, I., Ribeiro, P., Costa, S., Costa, N. and Arezes, P.M., 2019. Sustainable
business strategies: what you think is what you do?. In Occupational and environmental
safety and health (pp. 747-755). Springer, Cham.
Orozco, M., 2021. The salience of ethnic identity in entrepreneurship: An ethnic strategies of
business action framework. Small Business Economics, pp.1-26.
8