Executive summary-Business description and ownership


The small business I have chosen to write a small business plan for is a gym, called 'Pump Some Iron Gym'. The legal structure of the business is sole trader. This private sector business is located at 223 King Georges Rd Roselands NSW 2196, which is at a main road intersection. The industry sector of the business is the tertiary sector. It is not an international or transnational business. The business is in the establishment phase of the business life cycle. A SWOT analysis allows the business to establish its current position.

The business assesses customer's fitness, it seeks to help the client with dieting, putting on weight or losing weight, or simply staying healthy and fit. The owner of the business is Mr. Amjad Taouk. The aim of the business is to generate profit and help people keep fit and healthy, and secure future in the workforce. The entrepreneur is motivated by being their own boss and serving the community.

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The business owner is a man of a Lebanese cultural background. Due to this he has certain characteristics attributed to his cultural heritage. These include perseverance and negotiation skills. As he is from a Lebanese background Mr. Amjad Taouk is credited with knowing two languages: English and Arabic. This allows customers with Non-English speaking backgrounds from the Arab society to be able to communicate more effectively with him.

The ownership of 'Pump Some Iron Gym' has given the entrepreneur the opportunity to take control of the business and make the decisions, and serve the community. However, Mr. Amjad Taouk puts increased risk on his personal assets by having unlimited liability.

The mission statement of 'Pump Some Iron Gym' is: 'Our mission is to provide you with the foundation and determination and with your will reach your set goals and see results.'

The vision statement of 'Pump Some Iron Gym' is: 'Our Vision is to help everyone stay fit and healthy, motivate people to make the write decisions and to spread around the country to different communities to help everyone'.

Business life cycle

The life cycle of a business is made up of four separate stages, establishment, growth, maturity and post maturity. There is no fixed time limit for any stage of the life cycle. Some businesses with experience, the establishment and growth phase are a short period of time and move into maturity in a short-period, were as other businesses in the establishment phase may take a extended period of time, such as 'Pump Some Iron Gym' as the entrepreneur is inexperienced.

Business life cycle





- business first enters market

- finance needed to start business

- slow growth in sales

- difficulty obtaining revenue to cover expenses

- business owner needs to identify; location, staff, products, equipment, advertising, legal structure

- high costs

- obtaining finances

- difficulty obtaining revenue to cover expenses

-abiding by government laws and regulations


- consumer awareness

- increased sales

- increased profits, revenue and market share

- more opportunities

- more employees

- liquid (able to pay the business short-term debts)

-develop budgets to maintain financial position

- change to staffing managers taking on more responsibilities, and hiring of new staff

- better meet needs of customers

- better adhere to government regulations

- having sufficient money for day to day operations

- effective stock control management

- JIT ( just-in-time) inventory control

-management and organization of support services


- market share and growth begin to slow

- more competition

- strategies to maintain customer loyalty

- motivating employees and management

- financial position

- be aware of the external environment to see change in customer pattern/trends


-steady state; maintain customers and business

- decline; falling sales and decline in market share

- renewal; growth in sales, market share increases

- be aware of legal responsibilities

- motivate employees and staff

- maintain an active interest in the business

'Pump Some Iron Gym' is in the establishment phase still and is facing the challenges and characteristics of this phase.

Key business functions

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The key business functions are: operations, employment relations, accounting and finance, and marketing. All four business functions interrelate with each other. Each of the four departments must know situations the other departments are going through and are interdependent for information. It is the responsibility of functional departments that the business functions tasks are properly completed. All functional departments cooperate together and contribute input to the final product through a process of steps called the value chain. This involves the production and distribution of the final product. Each of the steps in the value chain is expected to increase the value of the product, and can be anticipated with a good manage. It is the role of management to ensure maximum value of the product by overlooking the production process and making sure there is efficient use of resources. The communication between functional departments must be clear, effective and complete. Each department must understand their importance for the other departments and that they are constituent of a larger unit- the business. [1] 

Individual functional departments are set up to make sure of the successful operation of a business by meeting the business's goals. They provide each other with information that help the business create short-term plans to concentrate on the steps that are smaller, so eventually the overall long-term goals can be met. A long-term plan of action (strategic) indicates overall business strategy to accomplish set business goals and the direction of the business expected in the future. [2] 


the operations function of 'Pump Some Iron Gym' is supplying people with the service of weight training, boxing, one on one personal training, nutritional advice, approach to lifestyle, health and fitness management, and cardio training. Its prime function is to provide people with complete fitness services.

Employment relations

There are four stages in the human resource cycle acquisition, development, maintenance and separation.

Acquisition is the first stage in the human resource cycle that involves:

-identifying staffing needs, it can be simple as training existing staff to make them more able to cope with changes such as equipment or technology, or if not then new employees are needed, then the specific job needs to be identified and analysed. This should result in a job description, job specification and remuneration figure attached.

- recruitment through internal or external; internal recruitment can be promoting existing staff; external recruitment is recruiting people from agencies, through interviews, online career sites, and it can be advertised in newspapers.

-selection, which is a screening process. The information gathered about job applicants is reviewed and the most appropriate applicant is chosen. The process may involve application forms, interviews, assessments, written tests and computer interviewing. [3] 

'Pump Some Iron Gym' will use this to select their staff and recruit, as they must meet there staffing requirements and expectations.

Development is the second stage and involves:

- training new staff with such matters as staff requirements, code of conduct, rostering, positions, work systems, techniques, and equipments. It can also include training existing staff to improve skills, and knowledge. Training methods are on the job training such as apprenticeships and job rotation, and off the job training such as tafe, or university courses and seminars.

- performance appraisals, formal assessments of how well a person is working, it provides a basis for future training needs, pay rises, promotions and possible further development. [4] 

This will help the business improve employee's knowledge and performance in the business.

The maintenance is the third stage and involves:

-keeping employees loyal and committed workers, this will increase productivity, improve communication between management and workers, reduce the level of absenteeism, decrease cost through lower staff turnover, as the business will provide the working conditions and work environment that motivate staff.

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- providing monetary benefits which may be paid as a bonuses to hard working employees. Also non-monetary benefits may include greater job variety, more flexible working hours, also non-monetary benefits such as intrinsic reward, which is a feeling of satisfaction that comes with doing a job well.

Maintenance helps keep the employee's loyal to the business, motivate staff and increase productivity therefore making the business more effective and efficient to achieving its goals.

This is the last step of the human resource cycle, but this cycle is an ongoing cycle, this stage involves:

- voluntary separation due to retirement, resignation or voluntary redundancy.

- involuntary separation due to involuntary redundancy, or dismissal.

This is the stage were the employee's separate from the business either through voluntary or involuntary and the business must go back to the first step of the human resource cycle to fill in the missing position.


It involves market research and finding out what potential customers need and want. This can then be connected to aiding the services of the business being better than its competitors. Marketing strategies 'Pump Some Iron Gym' uses include: a brand name that is simple and is catchy; cheap prices for gym membership; prices are lower then competitors; located on a main road with good advertising.

Accounting and finance

The accounting and finance function, will be carried out by an accountant, as it is their business function to deal with financial information of the business, they will aid the business in making practical and effective decisions.

Purpose of plan and situation analysis

'A business does not plan to fail, it fails to plan' this is a very well used saying in business.

A business plan is a detailed handbook for running a business, it contains the goals and objectives of the business.

A well devised business plan will provide the firm with:

- a clear direction, or path, for the future

- a forecast of future performance

- increased awareness of opportunities arising for future growth

- ability to identify the strengths that may five the firm a competitive advantage

- greater awareness of threats

- ability to identify weaknesses that need to be overcome

- a clear idea of the priorities set for the firm for managers and staff to follow

- a framework for decision making

overall the business plan provides the working plan, or blueprint and sets targets for the business. [5] 

'Pump Some Iron Gym' has plans for the future that are insightful. The planning process includes establishing long term (strategic) goals, establishing a set of strategies to achieve these goals, and establishing procedures for evaluation and standards being set to measure the progress of the business in achieving its goals, and why/why not the goals have been achieved. Mr. Amjad Taouk has strategic goals to expand the business by establishing another gym in a different location. The tactical planning of 'Pump Some Iron Gym' is to first increase customer awareness of the service in order to increase customers, therefore increasing profits, recruit more staff and put the latest equipment, and best quality equipment in the gym. The operational planning of 'Pump Some Iron Gym' is to help clients to get to their aims/results.

Evaluation procedures of the set goals are put forth using controls and are assessed by comparing the final results with the original plans. 'SMARTER' can be used to make the plans. Goals may need to be changed if they are found to be unrealistic. Controls used to monitor progress include sales and budgets. The business functions rely on, and affect, each other to give a final result that adheres to the planning process.

The owner must make a business plan so that the business has short and long term goals, strategies, and measures of performance. Mr. Amjad Taouk makes the decisions on what avenues the business will take in order to have a greater market share. The business is advertised through banners and brochures. The location of 'Pump Some Iron Gym' has made it well recognized by the public as it is at a main road intersection. A SWOT analysis is a situational analysis that looks at both the external and internal environments of a business in order to identify certain factors that impact on the business directly, and those that are under the control of the business. A SWOT analysis impacts on the business by affecting the ability of the firm to achieve its goals, evaluate just how effective the original business goals are. Its aids the firm in identifying what position it is in and it helps in enabling the business to make an analysis of influences in its environment. It is the task of management, in this case Mr. Amjad Taouk, to identify as many influential factors to the business as possible. It is not merely enough to solely concentrate on the SWOT analysis when identifying the strengths of the business. The ability of the competition must also be considered and compared to.


The internal factors of a SWOT analysis are strengths and weaknesses. Strengths contribute to business success, while weaknesses contribute to business failure. The following are internal factors of a SWOT analysis of 'Pump Some Iron Gym':


- Good business name

- Good ability to gather information about the client

- Giving customer's good attention

- Good location

- Provides more then just weights

- All profits go to the owner

- Excellent quality products


-Sole trader

- Unlimited liability

- Owner is responsible for all decisions

- Entrepreneur is inexperienced with owning a business.

The external factors of a SWOT analysis are opportunities and threats. Political/ legal systems regulate how the business can be run. They can create laws which are beneficial to the success of the business. Economic conditions can increase or decrease competition through upswings and downswings. Society's looks on health can increase clients. The following are external factors of a SWOT analysis of 'Pump Some Iron Gym':


- Located next to a swimming pool

- societies look on health is changing as many people are becoming obese

- located on a main road with good parking, which makes the business advertised good to the public

- no gyms next to the business in the area


- sole trader, so debt finance increasing and if the business is not successful bankruptcy is possible

- entrepreneur has never opened up a business before

- ease of entry for competitors

Objectives and relevant strategies

The business has 5 objectives, these objectives are all strategic goals of the business and are all long term goals (5-10 years), they are placed under three headings financial, social and personal goals.

Financial goals/objectives of the business are:

- To expand the business by establishing another gym in a different location.

- Profitability, as is it essential for the businesses long term survival.

Social goals/objectives of the business are:

- Provide financial support to local sporting teams.

Personal goals/objectives of the business are:

- Support the community and inform young kids about health and how to be healthy.

These objectives/goals, which are long term (strategic), can be achieved through using tactical (short term plans) and operational planning (day to day running of the business).

The tactical planning of 'Pump Some Iron Gym' is to first increase customer awareness of the service in order to increase customers, therefore increasing profits, recruit more staff and put the latest equipment, and best quality equipment in the gym.

The operational planning of 'Pump Some Iron Gym' is to help clients to get to their aims/results in the gym.

Relevant strategies which will be used to help achieve these objectives are:

- Research the market to identify business opportunities in a growing market.

- Manage cash flow and decrease outflow

- Leasing the latest equipment instead of buying assets and prepaying expenses, to have a competitive advantage.

- increase sales and market share

Operations -Description of the product/service

The business prime function is to provide people with complete fitness services. The prime function specifically deals with operations function as its main source of profit for the business is from providing people with fitness results and helping them in their needs to achieve their goals. The gym is a place for people to improve their well-being whether it will be fitness, putting on size, improving overall health or making friends and socializing. The business provides services in/and specializes in: - taking a holistic approach to lifestyle, health and fitness management - providing customers with practical and innovative fitness programs that flexibly integrate into busy lifestyles - weight training - boxing - giving advice for nutritious diets - one on one personal training. The products the business provides are products such as protein shakes and training straps. Products provided are weight training products, cardio products such as treadmills and exercise bikes, boxing room with boxing equipment such as boxing bag. All equipments are made from 'York' Canada.

Staffing requirements

Number of staff required:

The business will require 5 personal trainers, and 2 boxing instructors. The business will ensure employees understand what their job involves and what is expected of them. It will establish a reward system to maintain and motivate workers. Also ensure a safe and healthy working environment.

Qualifications needed for personal trainers needed are at least:

- certificate in first aid

- Certificate III and certificate IV in fitness.

Experience needed for personal trainers:

- minimum 2 years experience in the gym

- knowledge of dieting and nutritional advice

Skills required is at least:

- knowledge in weight loss and weight gain

- weight training

- body building

- fitness

Qualifications needed for boxing instructor:

-certificate in first aid

- thump boxing trainer minimum level 1

Experience needed for boxing instructor:

- minimum 3 years experience in boxing

Skills required:

- group fitness classes/ training

- fitness training

Marketing -Market analysis and strategies

Market analysis includes a study of customers, market size and trends, competition/competitor analysis and product analysis.


- The target market of the gym is all ages, and both male and females

- The gym will also target schools in the local area to send there students for sport there during the week as a health program

- Population statics show the population of the area is rising [6] 

Market size and trends:

- it is expected that adolescence and young adults will be the largest percentage of customers/ total market

-the business may enlarge the targeted group, adolescence and young adults, by providing additional products, and forecast future trends, to improve services or products, to increase the size targeted market.

Competition/competitor analysis:

- the business is located at King Georges Rd Roselands NSW 2196, the main competitor within the district is hurstville fitness centre, its competitive advantage is it has a pool within the centre, but 'Pump Some Iron Gym' has a swimming pool two minutes away by foot.

- it owns most of the market share within the area, but its prices are high, 'Pump Some Iron Gym' will have lower prices than hurstville fitness centre to attract more customers

- hurstville fitness centre doesn't provide products such as protein shakes and gloves, while 'Pump Some Iron Gym' does provide these.

-hurstville fitness centre has up to date produce, 'Pump Some Iron Gym' will also have the most newest fitness equipment to have a competitive advantage.

- All 'Pump Some Iron Gym' equipment is high quality made from Canada (York), while hurstville fitness centre doesn't have all equipment as high quality.

- hurstville fitness centre's entry fees are high, at $19.00 for casual entry [7] , while 'Pump Some Iron Gym' has a low $12.00 for casual entry

-both gyms are located off the same road, king georges road

- hurstville fitness centre is owned by the hurstville city council

Marketing strategies:

- increase sales

- increase market share

- increase profits

- managing cash flow and decreasing outflow

Product analysis:

'Pump Some Iron Gym' equipment will be from the brand name 'York', which is a brand with very good reputation, which makes customers feel they are using top quality equipment, and luxurious item.

Protein shakes that are being sold will be two different brands of protein, 'Whey protein' and 'Mass gainer protein'; these are both well known brands around Australia and are not very expensive. 'Pump Some Iron Gym' also provides 300 ml protein shakes from these two brands, if customers do not have protein with them.

It also provides gloves for training and boxing, and training straps. 'Pump Some Iron Gym' supplies top quality products for cheap prices.

Finance - Finance

The finance section of the business plan outlines the funds available and those needed to support the business plan. [8] It includes financial requirements, forecasts, records and controls.

Financial requirements

The business will need to have a clear idea of the amount of funds they will need. The finance for this business will be from:

- owners funds/equity

- debt finance from financial institutions

A breakdown of how these initial funds or additional funds will be used. Funds will be spent on:

- start up cost

- purchase of new equipment

- funds available after the business has begun

'Pump Some Iron Gym' will need $ 60000 to cover start up cost and cost of equipment, the business will not need more money as the land is already bought and built and is passed down from family. The owner of the business Mr. Amjad Taouk will be providing $20000 from owner's fund, leaving $40000 borrowed from a financial institution and is debt finance.

Financial forecasts

Planning is a prime function and it will tell the owner if they can actually afford to produce the product or provide the service. Financial forecasts for this business will be made through a break even analysis and forecasted cash flow statement.

A break even analysis is a financial planning tool that can be used to forecast how much of a product has to be produced and sold in order to cover costs. It helps determine how much profit may be made at different levels of sales. A break even analysis shows the relationship that exists between the revenue from sales and all the costs of producing the goods and the level of resulting profit or loss. It will establish a break even point where the total revenue equals the total costs. [9] 

Forecasted cash flow statements show how much money is needed, where it will come from and when it is needed. It is reflected in time frames such as weekly, monthly, or quarterly. It will be affected by sales turnover time periods and the time it takes to recover accounts receivable. Expensive, high profit luxury products with term payment conditions will present a different set of results than low priced items with high levels of turnover in cash sales. [10] 

Financial records

The business needs to keep accurate financial records for all transactions. The business must have a:

- revenue statements

-cash flow statements

- balance sheets

- funds statement

- budgets

A revenue statement is a summary of all the revenues that are generated for the business and all the expenses that are incurred to gain the revenue. The summary is taken over a specific period of time, such as a financial year.

A cash flow statement summaries cash transactions that have occurred over a period of time. Its purpose is to provide information about the flow of cash receipts and cash payments within the accounting period and provide management with necessary details for budgeting.

A balance sheet is a summary statement providing a financial picture of a business at a particular date. It provides a view of the stability of financial state of the business. The balance sheet is a statement of the business's assets, liabilities and owners equity at a set time, usually end of financial year.

A fund statement summarizes transactions that increased the work capital, such as net income or used up cash, such as purchases of machinery and equipment, payments of dividends, repayment of debts and payment of taxes.

A budget is a plan based on numbers, it is a statement that sets out a plan for achieving set outcomes and is based on forecasted figures or expectations of future operations. They specify the finance needed for the resources that are required to operate plans such as strategic, tactical and operational.

Financial controls

The business plan will need to have controls in place to ensure the business stays on track. In the business controls need to be set up to provide standards to which the firm can compare itself. Controls allow for corrective action to be taken to keep the business on a successful path. [11] 

A budget can be used as planning and financial control tools. They enable the firm to asses the degree of its financial success. [12] 

Sales report can be used as a planning and financial control, it provides managers with statistical and financial information, to allow them to monitor total sales

By: Amjad Taouk