Fitness For All – Business Plan Summary

Business name:

[Fitness For All]

Business structure:

[Sole trader]

ABN:

[Registered Australian business number] 543 7875 874

ACN:

[Registered Australian company number if applicable]154 5421 214

Business location

[Newcastle]

Date established

[14^th March 2018 proposed day of starting trading]

Business owner/s

[List all of the business owners.]

Relevant owner experience

[Competent trainer worked at several clubs in Australia

Products/ services

[Products include training sessions at the gym

anticipated demand for sessions will be 1 purchase every 2 weeks]

Target market

[Whom are you selling to?

Why would they buy your products/services over others?]

 [Customers of the Company will include men, women and children, who wants to achieve fitness levels. There will be an exercise plan given to them along with gym trainer assisting them in their programs.

The primary reason customers will prefer this gym’s products over others is that it will offer products at affordable rates. The rates at which products will be marketed will include a complete package such that customers do not have to go anywhere else.  ]

Marketing strategy

[How do you plan to enter the market? Market entry strategy will be by providing cheap sessional products with high quality levels.

How do you intend to attract customers? Customers will be attracted by means of advertisements

How and why will this work?] Other gymnasiums are providing much more costlier sessions hence the strategy will work.

[What is your business’s vision statement? To  generate well-being and high fitness levels in clients.

It should briefly outline your future plan for the business and include your overall goals.] Future plans of the business is to open more branches for the gym and also offer online sessions to worldwide customer base. 

[What is your business’s mission statement? I.e. How will you achieve your vision?] Business mission statement is to attract maximum possible customers in the region. 

• What are yourgoals?  Write down your short, medium, and long-term goals.

Short term goal is to market the session to area based customer groups within 6 months period.

Medium term goal to renew maximum possible client’s membership.

Long term goal is to become the most profitable gym in the area.   

• What contingencies are in place for when targets are not being met? I.e. if you don’t reach your short term goal by destined date, what is your plan B?

Contingency planning for short term is to continue marketing efforts till end of the year.

• Is there a succession plan?

Succession planning has not yet been developed

• What activities will you undertake to meet your goals]

Rigorous marketing activities including traditional and social media marketing will be carried out.

Goals

Short

Medium

Long term

1. Short term goal is to market the session to area based customer groups within 6 months period.

2. To attain profitability within 6 months

1. Medium term goal to renew maximum possible client’s membership.

2. Appoint one trainer for 5 persons to develop better training schedules

1. Long term goal is to become the most profitable gym in the area.  

2. Become one of the most reputable and popular gym in the area

Milestone

Date of expected completion

Person responsible

[What are the business milestones that you need to complete starting from today?]

[When do you expect to complete them?]

[Who is responsible for delivering this milestone?]

Setting up gym and purchasing equipment

6 months

Owner

Appointing trainers

3 months

Owner

Maintain equipment

1 year

Manager

Product/ services

[What products/services are you selling? If you have more than one product/service, describe each one separately.

The gym will be selling sessions and individual training programs.

What is the anticipated demand for your products/services?]

High in the region due to increase in obesity levels. Owner expects to sell 2 sessions per week.

For example, how many sessions will a client buy in 6 months or 12 months]

Business name

[Enter your business name as registered in your state/territory.  If you have not registered your business name, add your proposed business name.] Fitness for All

Trading name/ names

[Registered trading name/s]/ If business name varies from the name you intend to trade under  Fitness for All

Date registered

[Proposed registration date- this will be before you commence trading  14^th March 2018

Location registered

[State/s you are registered in] /[proposing to be registered in] Darling, Newcastle, Australia

Business structure

[Sole trader, partnership, trust, company. Sole trader

Why have you chosen this structure for your business?  What are the benefits?

• Risk management reasons

Not easily manageable as it has to be done singlehandedly.

• Tax requirements

Lowest from all other types of business forms

• Cost to set up

$40,390

• Legal requirements]

$10,000 for registering the business and getting compliances done

ABN

[Registered Australian business number] or fictitious ABN] 543 7875 874

ACN

[Registered Australian company number if applicable] 154 5421 214

GST

[If registered for Goods and Services Tax, date registered]

Will you be registered for Goods and Services Tax? If you run a business, you must register for GST if your GST turnover is at, or above the GST turnover threshold, that is, it is $75,000 or more. N/A

Domain names

[Registered domain names, Will you start a website? If so you will need to purchase a domain name.] www.fitness4all.au

Licenses and permits

[List all the licences or permits you have registered. E.g.:

• Business name registrations: Yes

• Association licence/s: Yes

• Music licences: No

• Program licences: Yes

• Working with children: Yes permit

• Franchisee licences: No

• Council approvals] : Yes

Business location

[Describe the location and space occupied/required.  

• What is the size of the space you occupy/require?

800 square foot of space

•   Which city or town?

Newcastle

•   Home, Studio, Gym, Outdoors/mobile/ Collaborative work space?

Gym

•   Where in relation to landmarks/main areas?

At Darlings

•   If you have a retail business, where are you in relation to other shops?

N/A

•   What is the retail traffic like?]

Average to Good

Lease type

?

1. The business premises will be leased on a 3 year lease for $40,000 per annum. The lease provides for an initial 2 month free rental period whilst you get the business off the ground.

2. The business will be run from a small shop currently owned by the business owner. The shop was previously used as an investment and is fully owned.

?

3. The business will operate outdoors, and there will be no costs for leasing.

Name/s of owner/s

[List all of the business owners.]

Details of management and ownership

WILL YOU?

¨ Be an owner of the business, and employ a manager and staff.

¨ Be an owner, and manager, and employ staff,

¨ Be an owner, manager, and trainer within your business (most small business start off these way and progress upwards)

Business owner employing manager and staffs

Other  _____________________________

Experience

[• What experience do the business owner/s have?

5 years

• How many years have you owned or run a business if applicable?

N/A

• List any previous businesses owned/managed  if applicable

N/A

• List any major achievements/awards in any relevant industries or areas.  

N/A

.  • What other relevant experience do you have?]

Training experience across many gyms in the cit y

Job title

Name

Skills or strengths

[e.g. Marketing/ Sales Manager]

Henry

[Relevant qualifications in Sales/Marketing.  At least 5 years’ experience in the industry.  Award in marketing excellence 2007.]

E.g. Personal Trainer

Tom

Working one on one with clients, running group circuits and outdoor sessions.

E.g. Gym Instructor

Roma

Supervising client’s performance at the gym

Add

Job title

Quantity

Expected staff turn-over

Skills necessary

Date required

[e.g. Office Manager]

[1]

[2-3 years]

[Relevant qualifications in Office Management.  Min. 2 years’ experience]

[Dec 09]

Trainer

[1]

[2-3 years]

[Relevant qualifications in training.  Min. 2 years’ experience]

[March 20]

Gym Instructor  

[1]

[2-3 years]

[Relevant qualifications as gym instructor.  Min. 5 years’ experience]

[March 30]

[• How do you intend on obtaining your required staff or contractors?

• Advertising in the local paper, online advertising, and/or training current staff members?]

Through Online advertisements.

[• Are there any training programs you will be organising in the event you cannot find the required skills?

No

• Are these in-house training programs or programs run by external providers?

Yes, on special request by customers

• What training will you as the business owner/manager undertake to keep your skills current?]

Physical trainign at the gym

[• What procedural documentation will you provide to ensure the skills of staff are maintained?

Accommodating KPI(Key Performance In dicator) and then measuring outcomes

• Do you have an appropriate allocation of responsibilities?

Yes

• How are responsibilities documented and communicated to staff?

In employee responsibility manual.

• What internal processes will you implement to regularly check that the current skills of staff members are still appropriate for the business?]

Constant monitoring and evaluation.

Product/ service

Description

Price

[Personal Training]

[One on One training 30 minute weight loss program]

[$80.00 including GST if applicable]

Gym based training

[One on One training 30 minute fitness program]

[$60.00 including GST if applicable]

Free hand training

[One on One training 30 minute flexibility based program]

[$50.00 including GST if applicable]

[• Where do your products/services belong in the market?

– Are they high-end, competitive or budget? Budget products amongst market available products

– How does this compare to your competitors?]Products are high in quality but affordable at best possible rates

[• How will your products/services succeed in the market? Quality Sessions at affordable rates

• What gives your products/services the edge compared to your competitors?] High quality trainers providing personal guidance

[• What is the anticipated quantity of products/services your customers are likely to purchase?

•   For example, how many sessions will a client buy in 6 months or 12 months?]

Expected to sell approximately 10 sessions a month.

[• Do you have a particular pricing strategy? i.e. entry price, middle of the range price and high end?

Entry pricing strategy

• Why have you chosen this strategy?]

To attract maximum customers and expand the business fast.

Example: High cost because you get what you pay for, Value for money or Competitive price – No Frills.

• Are they a necessity, luxury or something in between?]

In between products that can provide high levels of fitness

[• What is the anticipated percentage growth of the product in thenext 12 months and beyond?

20%

• What will drive this growth?]

Knowledge of the high quality product.

[Which R&D activities from the list below will you implement to encourage innovation in your business? Surveys and Google

• Surveys

• Interviews

• Existing data

• Council websites

• Industry consultations

• Cold calling, mystery calls

• Google

• Google keyword planner searches

[• How do you plan to protect your innovations? N/A

• List any current trademarks, patents, designs you have registered.  If this does not apply to your business explain why. N/A

• Do you have confidentiality agreements in place?] N/A

Worker’s compensation

[Provide details if you have workers compensation insurance (hint you should have this). This is mandatory if you have employees.]

Workers compensation insurance is purchased for the Company and all workers are protected by it.

Public liability insurance

[Provide details if you will have public liability insurance (hint you should have this)? This covers any third party death or injury. It can be sourced through registration with Fitness Australia or Physical Activities Australia

Public Liability Insurance for covering third party injury or death is taken for the firm.

Professional indemnity

[Provide details if you will have professional indemnity insurance (hint- you should have this)? This covers any legal action taken out as a result of your professional advice. It can be sourced through registration with Fitness Australia or Physical Activities Australia.]

Professional indemnity insurance is purchased for providing legitimate training sessions through Fitness Australia.

Business assets

Provide details if you will insure your business assets in the event of a fire, burglary, or damage? For example: building, contents, motor vehicles. This may be required as part of any business loan.]

Business assets as gym equipment is covered using fire, damage or burglary.  

Business revenue

[Provide details if you will insure your business in the event of business interruption where you cannot trade because of a particular event and are unable to make money

N/A

Describe the Risk

Rate the Likelihood

Impact

Strategy

[Description of the risk and the potential impact to your business]

[Highly Unlikely, Unlikely,Likely,

Highly Likely]

[High, Medium, Low]

[What actions will you take to minimise/mitigate the potential risk to your business?]

Eg. Old electrical cable.

Death due to electrocution

Highly Unlikely

High

Equipment electrically safety tested, and cords checked in weekly equipment check

EG. Work becomes stressful and staff has panic attack relating is time off work over more than 7 days.

likely

Medium

• Ensure staff sticks to employed hours.

• Staff have monthly meetings for debriefing.

• Most staff are outsourced.

Injury in customer due to some gym instructions causing accident

Highly Likely

High

· Include Professional Indemnity Insurance

· Provide first-aid to client

Add

Act/LAW

Relevant to business

Why?

Privacy Act

Yes

Maintaining client and staff records. Will ensure client and staff privacy is maintained securely and not provided to third parties. Will not source information from clients or staff not relevant to their dealings with the business.

Competition and Consumer Act 2010

Yes

 Personal Training will not engage in misleading conduct. Marketing materials will not include any deceptive or misleading information. Contracts will be fair.

Australian Contract Legislation

Yes

Valid contracts will be made with members. All terms and conditions will be provided to the member in the contract. Personal training will fulfil all services to a satisfactory standard as specified in the contract.

Workplace Health and Safety Act

Yes

Maintain worker’s health and safety related procedures by keeping a record book. Providing training to workers regarding procedures to operate in gym.

Disability Discrimination Act 1992

Yes

In order to prevent any form of discrimination against any staffs or client, who has certain disability. This will prevent personal litigation

Human Rights and Equal Opportunity Commission Act 1986.

Yes

For the purpose of protecting rights of every worker, employee and providing them with opportunities.

List others if relevant.

Yes

[• What is the process involved in producing your products or services?  This process will vary depending on your product or service.  

Consulting online or over the phone or face to face with multiple leading trainers from the industry prior to designing the product.

• Here are some examples of questions you may consider:

• Is there a manufacturing process?  Who is involved in the process?  Are there any third parties involved?

Yes third parties are involved in making of the sessions.

• What is involved in delivering the service to your customers from initial enquiry to the business with the way through to the delivery and payment of the service?  Are you the only point of contact, or are there others?]

Manager is the point of contact for customers. Once customers contacts managers over the phone then they are asked to visit the gym where they are given personal assistance for drawing training programs. Customers can either pay online or through their debit or credit cards.

[• Who are your main/preferred suppliers?

Fitness chains who have been traditionally manufacturing gym equipment will be preferred suppliers.      

For example a sole trader may purchase  their fitness equipment from a supplier

•   What do they supply/sell to your business?

For example:  Hart sport supplies fitness equipment to the sole trader to use during boot camp sessions.

Supplier sells fit ness equipment to the Company through personal tie-ip.

•   How will you maintain a good relationship with them?]The service to your customers?  Are you the only point of contact, or are there others?]

The owner already has existing relation with them from last five years.

Equipment

Purchase date

Purchase price

Running cost

Treadmill

 01/09/2016

$5,245.00

$100 PA

Functional Trainer

 01/09/2016

$2,290.00

$100 PA

Computer

01/02/2018

$1,500.00

$50 PA

Card Swiping Machine

01/03/2018

$2,050.00

$50 PA

Add

[• What technology do you require?

• For example: website, point of sale software, or accounting package?

Accounting package and customer related package

• What will be the main purpose for each?

Accounting package to include information of transactions

Customer package to maintain record of customers

• Will they be off-the-shelf or purpose built?

Off-the-shelf

• What is the estimated cost of each technology solution?]

$2,500 per package

What are your trading hours?

7-8 hours

What are your expected peak trading times?

12:00-14:00 hours

Which times do you expect to be more profitable?

During peak hours

How will this change over different times of the year, and how will you accommodate these changes?]

During  holiday seasons it will be evening hours and other times it can be morning hours.

[• How can your customers get in contact with you?

• These channels may include: telephone (landline/mobile), post box, shopfront, email, fax and/or Internet blog/social networking website.]

Phone, website and  email

[• What payment types will you accept?

• Cash, credit, cheque, gift cards, PayPal, etc.]

Cash, Credit cards, PayPal

[What is your credit policy for clients?

Half payment before starting the sessions and next payment within next 15 days.

How long is the credit period, e.g. 7, 14, 30 days?

14 days maximum

What are your collection strategies/procedures?]

Personal contact which manager will make to collect payment.

[What period of time will you give clients to cancel a session (eg. 24 hours before). If they do cancel after this time what will be the terms (eg. The client can reschedule the session within the week or they will lose their session as they did not give the required notice. )]

Maximum 48 hours will be allowed to cancel a session.

In case they fail to provide intimation then they will stand to lose  the session.

[What is your business’s refund/exchange policy? According to Competition and Consumer Act 2010, this is a mandatory consideration and must have a policy designed]

The business will refund in case client  has attended no more than 2 sessions and is not satisfied with it.

[Describe your quality control process.  

•   What checks or balances do you have in place to ensure the product or service you offer is produced to the same standard of quality?

Monitor and control procedures

•   What steps do you take to meet product safety standards?]

Applying of safety rules of  the gym.

Memberships and affiliations:

•   [Is your business a member of any particular industry association or club?

N/A

•   Do you have any business affiliations with any other organisation? For example, a gym in another state?]

N/A

[Describe the impact your business could potentially have on the environment. What can you put in place to limit your businesses impact on the environment?] E.g. Whether particular training sessions could contribute negatively on the local water supply.]

Post training customers can take a hot water bath where many customer waste water. This is the negative impact of the business on the environment.

[• How does your business affect the local community?

Yes

• How can you engage the community in minimising your impact?]

The Company has generated jobs for the local community creating positive impact to minimise impact from negative impacts

[List any risks/constraints to your business resulting from this environmental impact.]

Increased cost from environmental regulations.

[•   What strategies will you implement to minimise/mitigate your environmental impact and any other risks to your business?

Accommodate environment manage strategies and apply for ISO certifications.

•   What environmental audit will you conduct?

As per ISO certification environmental audit has to be conducted.

•   Outline your environmental management system?]

Environmental management system will include regular monitoring and evaluation of potential impact strategies.

Question.

Answer.

Who uses the products?
Describe who your niche market are.

Customers of age group 19 years to 55 years. Both male and female of middle income group

Who decided on the purchase?
The decision maker; Husband, wife, mother, father.

Individually

Who buys from me?
Identify the characteristics of your current market? (If no current clients just leave blank)

Customers from Newcastle area who wants to maintain fitness levels

Where do customers seek information?
Online/ Offline/ Newspapers etc.

Online sources

Where are potential customers?
Are your customers residential or working? Where do they hang out?

Customers are either college going or working

What benefits do they seek?
What are their goals, and obstacles?

Increasing fitness levels

What price are they willing to pay?
What are their incomes, what is affordable? (Great way to find this information is interviewing your target market, for the assignment you can just estimate)

Affordable

What is the demand for your product/ service?
Is your target market a large niche? Are there many businesses currently servicing your niche?

Large amongst target customer group

What is unique about your product/ service?
Why should your market buy from you?

Affordable quality services

[•   How will you maintain a good relationship with your customers?

Regular contact

•   How will you keep your customers coming back?

Discounts and more offers

•   Have you introduced customer service standards? Why, why not?

Yes by reducing customer wait period

•   What particular code of practice will you follow for your business within the Fitness Industry?

Code of practice will revolve around catering to highest possible levels of customer satisfaction rates.

Strengths

Weaknesses

1. Good team

2. Quality employees

3. Affordable rates

4. Conveniently located

5. Add

How will you develop your strengths? How will you expose your competitor’s weaknesses?

1. Not so computer savvy

2. Small business

3. Unknown standards

4. No past record

5. Add

How will you improve and prevent your weaknesses?

Opportunities

Threats

1. The community needs a fresh face in the business

2. Operate in an affluent suburb

3. Affordable costs that might escalate

4. Increase product diversification

5. Add

How will you explore and undertake opportunities?

1. Competitors are next door

2. Council licensing fees

3. Environmental regulation  standards

4. Add

5. Add

How will you prevent threats?

[• How do you rate against your competitors for value for money, customer service, convenience and quality?

High quality at affordable rates

• How can your business improve on what your competitors offer? Why/why not?

More value for money

• Who else is selling this product/service or one similar in your area?  Who is your competitor?

Anytime Fitness Newcastle West is competitor offering similar products in the area

• What price is your competitor’s product/service?

Double the prices of our products

• How similar is your competitor’s product/service to your offering? Why?

Almost similar

• Where are your competitor’s gaps? How could they be servicing their customers better?

Customer waiting periods

• Concerning your product/service, how is it/will it be different?  How can you do it better?  What is your unique selling point?

Affordable products

• Is your value in offering greater than your competitor’s?  How can you add more value without it increasing your costs?]

Yes, it might be possible to add more value without increasing cost

Competitor

Est. date

Size

Value to customers

Strengths

Weaknesses

[Competitor name]

[When were they established?]

[Number of staff and/or turnover]

[Unique value to customers.  E.g. convenience, quality, price or service?]

[What are your competitor’s main strengths?]

Eg. strong brand name

[What are your competitor’s main weaknesses?]

Eg. Competitor  is highly priced which excluded some of the market for the service

Anytime Fitness Newcastle West

2016

30

Quality

Timing throughout the day

Pricing

Add

Planned promotion/ advertising type

Expected business improvement

Cost ($)

Target date

Print media advertising, online advertising, mail-out, giveaway, media release or event.]

How do you expect it will improve your business success

What will this promotion/advertising campaign cost?

[

How long will this promotion/advertising campaign run for

Add in local school newsletter

  increase in sales and brand awareness to families

$50

November for 4 weeks

Social media

  increase in brand awareness

$50pm

March for 8 weeks

Add

Add

Add

Channel type

Products/services

Percentage of sales (%)

Advantages

Disadvantages

[e.g. Shopfront, Internet, direct mail, export, or wholesale]

[List all the products/services sold via this channel.]

[What percentage of overall sales do you expect to sell via this channel?]

[What advantages are there of using this channel for these products?]

[What challenges do you expect to face using this channel? How will you overcome them?]

Example: website

Gym memberships

10%

Can reach a large audience, 24 hour presence online

Marketing and development expenses are ongoing.  Will need to schedule regular website maintenance and review competitors online offerings regularly

Shop

Training Sessions

10%

Reaching target audience

Maintaining customer inflow

Add

Add

Financial objectives

[Briefly outline how much profit you intend on making in a particular timeframe.  

How much money will you need upfront?

$40,390

Where will you obtain these funds?

Self finance

What portion will you be seeking from other sources?

None

How much of your own money are you contributing towards the business?]

Whole

[List your financial considerations.  These can include seasonal adjustments/down time, drought, interest rates, growth or holidays, etc.]