Entrepreneurship in Fitness Industry Business Plan

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Introduction Of Entrepreneurship: Business Plan On Fitness Industry 

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This assessment discusses new business ideas in the fitness industry. The selected business plan seeks to establish a healthy community by providing customers with a personalized fitness schedule. This business plan has been named Fitness Vision, which will provide such services to the customers through weekly, monthly, plans.

Doing business in the fitness industry requires focusing more on certain components, all of which are interrelated. The proper use of components for selected organizations is reviewed. This assessment will shed light on the fact that it wants to establish itself as a small business organization in a medium-sized market, so it may face a variety of problems. It also needs to analyze its financial needs, including the required capital, sales, break-even points, etc. In addition, the internal and external factors of this business plan have been analyzed based on a specific business model. This will allow them to assess their strengths and weaknesses.

1. Justify a viable business idea.

This healthcare service will run its business in the fitness industry. This business idea has been dubbed Fitness Vision. The goal is to help customers who have not felt safe to go out and exercise since the covid 19 pandemic, to help them stay healthy by providing a personalized indoor fitness schedule. Along with this, the vision of the business plan is to create a healthy and normal community.

There are many physical alternatives to the service marketed by this business plan, such as gym clubs and fitness centers. But in the current situation, consumers are very much aware of hygiene and are reluctant to use physical alternatives. In this case, the Fitness Vision Business Plan will provide customers with personalized workout schedules and diet charts through weekly, monthly, and yearly plans. These schedules and diet charts will be flexible enough to be followed at any time. So that customers can keep themselves healthy and fit by doing the workout at the time they want. In this case, customers will not need to set aside time for workouts separately, it will be possible to achieve a specific schedule even in leisure time, as a result, customers will be able to utilize their entire time, increasing productivity in their workplace.

2. Critically analyze the main components of a business and how they inter-relate.

Creating and implementing an entrepreneurial business plan requires pre-planning with a focus on a number of issues. According to et al, (2020), building an executive summary and business concept is a preliminary step, some other issues related to the organization's business strategy, legal status, operations, marketing, and financial management. Based on these issues, a total of five components are discussed in the business context. It focuses on the need for a clear idea of the services provided by the organization, the basic concept of financial structure construction, and more. At the same time, the interrelationships between these issues and the implementation of the Fitness Vision Idea are being discussed.

Providing a clear idea about the product or service:

According to Sjödinet al, (2020), since an entrepreneur brings a new product or service to the market for marketing purposes, it is especially important to inform the customers about that product or service. In addition, it is important to determine the appropriate price for a service based on an analysis of the cost of producing and marketing the service. According to Gandhiet al, (2018), it is possible to promote a product or service in different ways, but before that, the decision must be made by observing the media through the target customers choose to know and trust the product or service.

Presence of clarity regarding operating plan:

An entrepreneur enters the business market with a new idea. In this case, the production and marketing of the entrepreneur's product or service also require proper planning for the proper use of human resources and employment. According to Mansooriet al, (2020), these include selecting the departments required for the operation of the organization, hiring the appropriately skilled staff to perform the functions of that department, identifying the necessary technical assistance, and developing specific and flexible strategies for the overall operation.

Presence of ideas about cash flow projections:

Starting any business requires a specific financial plan, here is a preliminary idea of how a certain amount of profit can be achieved by spending a certain amount of money due to the operations of the organization. However, it applies to any business organization imitating any business presence in the market. According to Moro-Visconti et al, (2020), in the case of entrepreneurial business, when an entrepreneur comes to the target market with a new service, they have no information in the market about the financial cost related to the production of that service and the marketed profit. According to Zaheeret al, (2019), in this case, the entrepreneur has to determine the production cost of the services provided by him and the financial amount required for running the business.

Strategy building by market analysis:

Before implementing a business idea, one has to analyze the demand market, stability, etc. of the target market. But in the case of entrepreneurial business, these issues are quite new, because there is no market information available about the demand for services and market stability produced by the entrepreneur. According to Srinivasan et al, (2018), the entrepreneur has to adopt specific marketing strategies by evaluating the target market by observing its geographical location, economic structure, presence and popularity of social media platforms, customer economy status, customer pReferences, the standard of living and so on in such cases.

Market Competition Analysis:

In any business market competition is required, but in the case of entrepreneurial business, market competition is more difficult. Entrepreneurs bring new types of services to market that are relatively advanced versions of the services available in the market. According to AchmadDaengs et al, (2020), this will allow the entrepreneur to show customers the uniqueness of the service he provides from similar old systems in the market, only then will it be able to survive in the competition. Otherwise, customers will prefer to take the old service as per their habit.

2.1Evidence of critical analysis of the main components of Fitness Vision

The components discussed above provide strength and logic to the implementation of a business plan. This section discusses the ways, Fitness Business has made proper use of those components to implement its business idea.

Here Fitness Vision is pursuing multiple marketing strategies to inform customers about the service it produces. The company is immediately informing the customers about the service through channel marketing through social media, official websites, TV advertisements, and so on. According to Berman et al, (2018), this multi-channel marketing strategy is called Omnichannel marketing. In addition to this, the company wants to attract the target customers through personalized emails, social media posts, offers, advertisements, etc. Thus, in today's digital age, it is possible to make a wide range of customers aware and interested in the service through online media.It has also evaluated all the topics like, choosing appropriate strategies and identifying related skilled staff and technologies to operate the overall business.

As a result, the organization has been able to understand the theoretical concept of a flexible strategy due to the number of employees and departments, the skills required by the department according to the specific eligibility of the employees, and the overall operation.The company has been able to evaluate theoretical concepts through a cost sheet of the production costs and marketing costs required to provide the selected service. In addition to this, the amount of an estimated state based on the estimated annual profit in terms of this assessment is also determined by it. Based on all of these functions, Fitness Vision has been able to build an idea of the extent of its potential financial needs.

Along with that, it has developed a specific marketing strategy by analyzing the customer's behavior, social media and technology usage, preferences, market economic situation, etc. in its target market. Fitness Vision has started offering advertisements and offers of personalized services to reach its customers and inform them about marketing information, through email marketing, online marketing, and social media marketing. Besides that, in order to cope with market competition, Fitness Vision has made arrangements to provide personalized services to its customers, which are not provided by any other organization in the market. As a result, it is natural that customers will be more attracted to personalized services than to the universally provided services available in the market.

3. Demonstrate effective small business planning and performance.

According to Cantele et al, (2018), small businesses can analyze some factors to evaluate their strategies that can help improve their goal selection, performance appraisal, and, above all, net income. In this case, the main goal is to determine the performance of the organization by focusing on the analysis of the significance of the plan. To meet this goal, Fitness Vision as a small business organization can take initial steps to improve a number of issues, those issues are discussed below.

Significance:

According to Smith (2020), most small business organizations are negligent about their planning function due to lack of time. But without strategic planning, it is not possible to measure the performance and productivity of the organization, nor is it possible for the organization to predict the success of meeting its objectives. Therefore, it is important to analyze the significance of the use of planning before implementing selected business strategies to achieve high performance and foresight.

Function:

According to Angus et al, (2019), for running any business, its strategic planning carries enough complex features. But among these complex features are the clarity, brevity, and rationality of the plan. The presence of all these positive functions of a plan makes the implementation of the plan much easier. In addition, these functions allow the organization to conduct further research on the improvement of its plans and provide the necessary accurate information. All of these positive effects of strategic planning functions allow chaotic business organizations to think of improvements and to be able implement relatively new strategies.

Potential: T

he main goal of small business organizations is to increase their performance; it increases the productivity of the organization. In the case of business, the targeting of small companies differs from the environment of large companies. Larger organizations provide financial incentives to employees of certain departments to meet their performance-enhancing goals. But small establishments utilize human resources as much as possible to achieve this same goal, in which case the entrepreneur encourages all the employees working under it to work equally towards achieving this same goal. According to Schneider et al, (2018), this type of employee aggregation targeting method is similarly effective in improving sales, marketing, profitability, and so on.

Time Frame:

As mentioned earlier, the measure of performance of a small business depends on the success of its plan. The plan includes the organization's goals, strategies, and processes. According to Elmograbi (2019), an organization can evaluate future profits and costs, based on its results, by performing its tasks within a specified period through a specific therefore frame of maintenance. Even if the organization fails to implement that time frame, it helps the organization learn important information, such as updating its plans and instructing changes.

Impact:

From the analysis discussed, it is understood that the significance of the organization's plan is determined by the analysis, indicating the health of the organization. The performance of an organization can be determined without any direction or definition by manipulating it with some method like bootstrap fashion. According to Ahmad et al, (2019), organizations that determine performance based on business plan evaluations are relatively more aware of the quality of the services they produce, market competition, strategy success, and goal attainment conditions. This has a positive effect on the improvement of net income and profit.

3.1 Cost analysis of Fitness Vision

Here, an effective business concept is being presented for the implementation of the business plan of the discussed organization, Fitness Vision Business Plan. This business concept includes determining its estimated break-even point based on the potential cash flow of the organization, amount of capital invested, expenses, project sales, and potential profit over the next three years. These issues are analyzed in the table below.

Components

Amount (in Pounds)

Investment

2025000

Advertising cost

55000

Office equipment cost

100000

Cost of admin

30000

Research expenses

75000

Prime cost

260000

Depreciation of 5 years

10%

Per year

Fund sources

Company’s fund

75000

Loan terms

65000

Total

140000

Year 2022

Year 2023

Year 2024

Year 2025

Year 2026

Revenue and cost

Sales

1500

2000

3000

4000

4250

Cost of sales @30%

450

600

900

1200

1275

Gross profit @20%

300

400

600

800

850

Fixed overhead costs

10000

10000

10000

10000

10000

Interest payment

11.5

9

6

7

5

Net cost before tax

3000

5000

9000

13000

14000

Tax

0

0

0

0

0

Cash generation

3000

5000

9000

13000

14000

Cost of the sales

Office equipment

4500

Employee salary

2500

Other costs

3000

Total

10000

Fixed overhead costs

Admin cost

4000

Research expenses

1500

Total

5500

4. Critically evaluate the potential issues arising that may impact the success of small business management through entrepreneurship

As soon as a startup business plan comes on the market, it faces many problems. Depending on the field discussed, the Fitness Vision business plan, that is intended to do business in the fitness industry, may face certain potential issues and risks. The four possible risks and their effects are discussed below.

Time Management:

According to Avlijaš (2019), time is an invaluable resource to any organization, so it must be fully utilized. New business organizations have a lot of problems managing the right work at the right time. Lack of proper leadership style and management strategy in case of the selected business plan can lead to all these problems. As a result, the organization may not have the information it needs to plan ahead for its future goals which may hinder its progress.

Leadership:

An appropriate leadership helps manage a well-organized human resource. In the absence of ideal leadership in the selected organization, it is not possible to provide proper management and direction to the employees, the management system of the organization may collapse and even productivity may be damaged.

Funding Securities:

New entities often fail to secure their capital funds. In this case, the irregular cost of the selected organization, unprofessional cash flow management, and unnecessary spending of money may lead to a financial crisis. According to Bonini et al, (2019), it can be a long-term obstacle for the organization to meet customer needs and improve the organization.

Disability of marketing plan:

Since entrepreneurs are brand new in the business market, they do not have much practical knowledge about marketing strategy and plans. For the same reason, the selected organization may be unable to evaluate the reliability and effectiveness of its marketing plan, and may not be aware of improvements or changes in marketing strategy. In this case, the company may fall behind in the market competition and may have a negative impact on its reputation.

4.1Analyzation of Internal and external factors and their impact on business through SWOT

Any organization has its own strengths and weaknesses. According to Fauziet al, (2022), these strengths and weaknesses can be analyzed with the help of two sections, Internal and External Factors respectively. This part of the assessment seeks to understand the internal and external factors of the Fitness Vision organization through SWOT analysis.

Strength: The strength of the company is the demand of the customers. Given the current situation, the selected business plan is showing the way to keep the customers healthy and fit through freehand exercises at home instead of going out to work out or the gym.

Opportunity: Consumers are now more aware of hygiene and will be more inclined to take advantage of these benefits at home instead of going out for fitness training.

Weakness: The company will not be able to provide equal customer support services to more than one person at a time due to its technical disability. As a result, the amount of customer satisfaction may decrease and the popularity of the company may also decrease.

Threats: In the current situation, there is a demand for these services at home, but a large number of consumers are not yet aware of the use of such online services. This can lead to problems such as declining customer circles.

Conclusion

By observing all of the above, it can be concluded that to conduct business in the fitness industry, it is necessary to provide personalized services to the customers as it will help the new venture to survive in the competitive market. Proper use of business components helps the organization to move forward towards improvement and reduces the risk of the organization.

Before starting a new business, it is especially important to monitor all the components as well as make a financial plan. Financial planning includes estimating break-even points based on estimated capital required, building a cost sheet based on global sales, production costs, office costs, etc., and estimating profits for at least the next three years. In addition, by analyzing the internal and external factors of the organization, it is possible to find out the risks and issues related to its investment.

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