A business plan is a document that highlights the expectations of a business owner who intends to make a profit, as well as ensure that the venture is sustainable in the long-term. It means that there should be an adequate atmosphere for growth and development. The common notion is that failure to plan is tantamount to planning to fail. This implicates that the lack of adequate preparation before indulging in a certain venture directly affects its progress. That is why it is critical to draft a business plan that focuses on explaining how the venture will flow from the starting point to and past the break-even point. Consequently, a business plan is a document that contains the projections and proposals of a certain enterprise before commencing the actual implementation process (Ward, 2016). In this light, this document presents the future projections of a physical wellness and fitness center, while focusing on how it will be sustainable in the long term. The capital to be invested is $ 100, 000, with an employee base of five members of staff. While one of the objectives include the establishment of a high worker and customer retention, the underlying goal is to ensure a high sustainability level for the business. This analysis seeks to analyze the effectiveness of a business plan for a gym firm, titled NTY Fitness and Wellness Center. The underlying idea is to demonstrate the fact that a good business idea goes a long way in commanding the success of a venture.
AI-Written & Human-Edited Essay for only $7 per page!
Expert Editing Included
The business in question is a physical exercise center titled “NTY Fitness and Wellness Center.” Aside from providing normal gym services, it seeks to come up with a unique set of services and products that ensure the customers are receiving the best value for their money. The management of the company is interested in coming up with a unique business that bears some differences in terms of the quality of services and satisfaction that customers get. The owner intends to invest a total of $ 1, 000, 000 to set up the state-of-the-art physical fitness and wellness center that will reflect the current diverse preferences and complexity of the current complex society. The idea will be relatively unique from the existing ones since it will have extraordinary features, such as a waiting room with modern ventilation facilities that are roof free. There are five employees who will form the pool of the human resource and they will fill all the business departments, including finance, marketing, human resource, sales, and any other critical cooperate function that is needed by start-ups.
Business Objectives and Goals
There is the need to accompany this business plan with respective goals and objectives that will help to measure the extent and level of success. According to Jennings (2014), a business evaluates its progress by determining the number of deliverables attained within a given period. The first goal is to break-even within the first two months of operation. It involves the examination and calculation of the margin of safety with regards to an entity’s revenue capacity. It is beneficial when it comes to determining the level of production that can be supported by a given sales and marketing mix (Ward, 2016).
Second, the business is expected to show adequate levels of sustainability within two years. The first year of operation will be a crucial stage as it will solely be concerned with establishing the platform for growth and development. Sustainability is defined as the process of managing the three most important elements in an enterprise, including social, financial, environmental, and other responsibilities and obligations (Ward, 2016). These directly affect the profits and human resource effectiveness and thus, should be pursued within the shortest time possible.
The other important business objective is to establish a system that favors high customer and employee retention rates. These two are the most important stakeholders who ensure that the business is performing smoothly and according to expectations. As such, retaining the five members of staff (including motivating them) would go a long way towards making the business more efficient and profitable. This also applies to the human resource, who acts as the backbone of the organization.
Marketing mix includes the cluster of ideas, knowledge, and decisions that a business adopts in the process of exploiting the target market. It includes the 4ps of marketing, which are price, place, promotion, and product. The price level for the wellness and fitness center services will be 5% lower than the industry’s level. This is an entry mode strategy that will seek to acquire customers from other players (Jennings, 2014). Second, the positioning of the business will focus on a high traffic area such as a busy street/city center. The promotion strategy will include billboards, the print and electronic media, word of mouth, and the various social media sites. The management also intends to offer free services during the first week of operation to enhance brand visibility and awareness in the target market. Lastly, the gym will purchase the state-of-the-art equipment to ensure that clients’ experience is maximized. Care should be taken to increase the satisfaction of customers so that they will appreciate the degree of value for their money.
One of the underlying ideas that informed this business venture is the low presence of similar players in the target market. There is a considerable demand level in the external environment that makes it possible more new players to thrive. Specifically, there are not more than six players in a market region that is characterized by a high level of population. All in all, to be highly competent calls for the adoption of measures that ensures one’s business is unique and head and shoulder above the rest. This is why the wellness and fitness center will have a virtual room that will make it possible for the customers attend different thread mill and bike classes. The availability of a sunroof is also designed to make the business stand out by ensuring customers are enjoying the afternoon California sun rays while exercising.
The venture will operate as a sole proprietorship, whereby I will contribute the entire startup capital as well as other funding that will be needed for daily operation of the business. The decision to adopt this entity structure is informed by the fact that in a sole proprietorship, the owner has a complete control over all the course of action and thus, it is easier to manage to pull resources together to achieve the set goals (Parks, Olson, & Bokor, 2015). In this regard, I will be in a position to streamline operations and this will nurture a cordial working relationship, which is vital in optimizing profit margins. According to Neubauer & Lank (2016), a sole proprietorship is an easier and less capital intensive structure to formulate as compared to other legal entities such as corporation and partnership, which involves complex tax preparation procedures. The decision to work alone was also informed by the amount of money I have accumulated (1 Million dollars) since I consider the capital quite sufficient to execute the task at hand.
The first and foremost step is to seek a business permit and other relevant licenses that govern the conduct and operations of this business. It is crucial to guarantee the support of government and other relevant authorities to prevent disruptions that emanate from the lack of conformity. The business will be registered with the state government of California and all taxes and fees will be paid on the same date of registration. Afterward, job placement advertisements will be placed in the newspaper so that competent staff members could apply for the jobs.