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The business's name is SADAKA'S GYM. It is a sole trader with up to 20 employees. This is a risk because with sole trader there is unlimited liability which means that the business if under any depts, the owner may have to sell personal assets. The business is a small business.
To maintain a successful business, a mission statement is useful for long-term future decisions. The main aim of the business includes:
Providing safe environment
Expand in awareness
Producing an amount of profit
SADAKA'S GYM will be located at Gardenia Avenue Bankstown. This location has been chosen because in this particular street and surrounding area there is no gym facilities so therefore the business will be successful in a way that a lot of customers will attend.
Chosen business: Gym
Identify your business and devise a plan of approach
Business description and ownership
Purpose of plan Situation analysis: SWOT
Business Objectives and Strategies
Description of the good and service
Progress: Gather and process relevant data/information
Marketing Analysis and Marketing Strategies
Critically review the plan and process
Complete final report
SADAKA'S GYM located in Gardenia Avenue Bankstown is a new based organisation with the legal structure of a sole trader. The business aims to providing a safe environment, expand in awareness and produce a great amount of profit. Looking at both the internal and external environment of the business, there is a great amount of positives - Internal; good management skills and provides safe facilities, External; good economic conditions. One of the goals of the business is to have a good relationship between managers and employees. SADAKA'S GYM has facilities, equipment and the latest technology of all ranges to offer which will help customers achieve the best result possible.
Business description and ownership
The trading name of the business is SADAKA'S GYM. This business is a new based organisation with the legal structure of a sole trader. The disadvantage of a business being a sole trader is of the following;
The owner of the business has unlimited liability
Personal assets will be sold if the business is at debt
The owner is responsible for all the debt incurred by the business
The business is located at Gardenia Avenue, Bankstown. This particular area has been chosen because in this located area there are no use of gyms and fitness facilities, therefore SADAKA'S GYM will have a great advantage as it will seek customers to the gym which will increase the businesses reputation. The sector with which the business is associated is the Quinary sector. The prime function of the business is providing a safe environment; expand in awareness, producing a great amount of profit. Some additional products that are an inclusion to the business are; protein shakes and supplements, sporting drinks, necessary gym equipment such as towels and water bottles. These products will help maintain a healthy environment for gym members and visitors also accompany healthy training routines.
Purpose of plan situation analysis: SWOT
Good name and reputation
Provides safe facilities
Good management skills
Good economic conditions
Competitors with newer products and services
Cheaper prices in other locations
Business objectives and strategies
The business plans to achieve the following;
Provide safe environment
Expand in awareness
To produce an amount of profit
Increase market share
The goals of the business is to have good relationship between managers and employees, to expand the business in size, provide a greater demand for consumers, provide more facilities for consumers and to update all gym products. To achieve the goals mentioned the following strategies must be taken; leadership by the business owner which will maintain a good sense of connection between managers and employees, organising sponsorships to support the provision of all gym needs and applying the right amount of funding from profits to expanding the business size, consumer demands, more facilities and the updating of gym products. By achieving the above goals, the business is sure to be on the right path to success.
Description of the good and service
SADAKA'S GYM has facilities, equipment and the latest technology of all ranges to offer, that are especially safe for the consumers. Below describes what the business has to offer in more detail.
The facilities available include:
On the first floor there is the cardio area where all cardio exercise machines are available such as the treadmills. This area also supplies drinks, towels and other equipment for sale.
On the second floor Locker room area for both women and men. In the locker rooms there are showers, bathrooms, lockers, a spa, sauna room, steam room and seating sections.
Also on the second floor is the Workout area. In the workout area there is the availability of both machine and free weights, and other accessories such as the medicine balls.
The available equipment in SADAKA'S GYM includes the following;
Two types of weights - machine weights and free weights for all muscle groups including; Traps, Shoulders, Chest, Biceps, Abs, Quads, Calves, Back, Triceps, Forearms, Gluteus maximums and Hamstrings
Cardio exercise machines - treadmills and stationary bikes
Medicine balls, gym mats and exercise ball
The business includes machinery technology as mentioned above. The machinery technology covers all muscle groups in weight workouts as well as covering cardio workouts. The supplying of machinery technology not only gives a range of options in workouts but also gives an advantage to both beginners and professionals to specify the workout to a particular muscle group.
SADAKA'S GYM will be recruiting 1-20 employees as it is a small business. As the establishment phase of the business, 10 employees will be recruited as personal trainers and 10 employee's will be recruited to conduct the other aspects of the business such as; promotion of the business and day to day operations of the business.
The 10 recruited employees' that are personal trainers should be qualified with a university degree proving their abilities to be successful in their job. As for the other 10 employee's recruited they need to also be qualified with a university degree to take part in managing and promoting the business successfully. All 20 employees recruited in SADAKA'S GYM will need to have experience through other business in the same industry.
SADAKA'S GYM will ensure that all 20 employees recruited have a good knowledge of what is expected from them. This includes:
People skill - good communication with customers and other employees
Completion of their specific jobs - finishing all work that need to be done at high qualities
The employees recruited will need to understand what their job involves and this might include adapting to new technology such as machine systems or computers used.
In return, for all success that employees bring to the business a reward will be given. This will be either a pay rise of free membership at SADAKA'S GYM depending on the situation. This will defiantly help motivate the employees which then will help maintain a successful streak for the business.
Marketing Analysis and Marketing Strategies
SADAKA'S GYM is targeting people from any age that are interesting in managing or maintaining their standards of health. The business targets those that want to lose weight and those who are ashamed of their body appearance. The business wants to help motivate people to a change of lifestyle if necessary; that is a more efficient and positive lifestyle. As well as to help motivate people in getting active because being physically activate is vital for being part of a healthy lifestyle.
SADAKA'S GYM is part of a large market. The competitors that the business is involved with are other gyms in the market such as Fitness First and World Gym. These two specific gyms are big competitors for the business as they are located in more than one area so their promotion of the business is large. Therefore for SADAKA'S GYM to be successful, the pricings, management and promotion of the business need to be at competitive state.
As mentioned above SADAKA'S GYM has two main competitors - Fitness First and Word Gym. The following will explain how SADAKA'S GYM is a better quality gym then others.
Has a new member offer that states: get full access to our fantastic facilities for 7 days for only $10, this month only.
Their personal training price states: triple pack for $79.95
The products at fitness first are all of the same quality and have not being updated
For membership sign up there is no monthly deals only on a 2 year period.
Equipment pricing are expensive; such as the T-shirts for $35
There are no special offers referring to products sold; such as supplements
The membership sign up is $160 a month
To compare SADAKA'S GYM with the above two competitors, SADAKA'S GYM is proven better in the following ways:
The business has a new member offer and it states: all new members get full access to SADAKA'S GYM facilities for a month for only $30 plus a free kit bag will be given which includes a towel, bottle, sweat bands and a membership card chain. After a month a new membership sign up will be required if the customer was satisfied with the gym.
Personal training prices are $15 a session. Each session is as long as required.
All gym facilities are the latest quality and brand names; such as Hammer, Life fitness and Intek Strength.
Membership sign up will be $30 a month and 300$ a year.
All equipment prices will differ; such as t-shirts $15 and supplements starting from $10 until 100$ depending on the brand.
In that case SADAKA'S GYM has been proven cheaper than the other two competitors and providing better quality service, deals, facilities and equipment.
The marketing strategies to promote/advertise the presence of SADAKA'S GYM is a website that will be put together which will include all information that needs to known about the gym such as; pricing, time schedules, membership information, staffing information, gym facilities, the location of the gym and much more. On top of that pamphlets will be sent around to as many homes as possible so that SADAKA'S GYM will be able to get as much of a chance to be successful like other gyms and if not better. The pamphlets will include all necessary information in summarized detail with the website of the business which is www.SADAKASGYM.com.au for all people to have a better understand of what the business has to offer. The business will also aim:
To increase its market share by discounting its products to gain new customers and therefore cut its own profit levels.
To Increase sales by improved product quality; expansion into other geographic areas; or even higher prices set for an innovated version of an existing product. It may be better to sell a few items at a high price then many at a low price.
Financial Forecasts: BALANCE SHEET
Cash at bank
Total current assets
Total non-current assets
Total current liabilities
Total non-current liabilities
Total owners equity
TOTAL LIABILITES AND OWNERS EQUITY
Cost of goods sold (COGS)
(COGS = Opening Stock + Purchases - Closing Stock)
(Sales Revenue - COGS = Gross Profit)
(Gross Profit - Expenses = Net Profit)
Salaries and wages
Net profit= 65 000 - 35 000
Critical review the plan and process
The above business plan, I believe that I have done to the best of my ability by honestly managing my time according to the timetable I put together. Personally I can say that the business plan was not easy but I managed to complete it well enough with some parts lacking effort.
I have managed my time according to the timetable I put together. All information that needs to be found I gathered before the date I had put down to complete the task. For example; the section for the business description and owner ship I gathered all information about the business and completed that section on time as said in the timetable. The business plan covers many aspects such as identify, gather, describe and review; with the assistance of the internet and book resources I was able to complete all tasks on their set dates.
For the timetable to work efficiently I had to set the dates so that I had time in between each task to complete. For instance; part two included five sections so to make the process easier for me, I gave myself two to three days in between to finish. By doing this I was able to put together a good business plan so that I could earn the best marks possible.
The business plan was not easy but I did manage to complete it well enough with some parts lacking effort. The majority of the business plan was really good such as part one where I was given full marks. I had managed to answer all questions and meet the criteria. For part one I clearly indicated the nature of the business and I provided a timetable setting out when each step of the business plan will be completed. Also in part two, I indicated that I was meeting the deadlines according to the timetable. So in that case I have successfully put together a good business plan but not perfect.
The business plan isn't perfect because I didn't meet the criteria fully. For example; I didn't mention in part two the sources I had used to complete the tasks so I was given nine out of ten. It was the little details that I left out that made me lose a mark thus it isn't perfect. Considering that I never mentioned 'research' in my timetable let me down because it would of being clear to me that I had to add sources. The use of sources simply indicates where information has being gathered from and the fact that I did most of my research from the school text book doesn't give me many sources to add in the business plan.
Overall I personally think my business plan is sufficient and has covered all measures of a business. The use of a timetable was really helpful in ways that I was able to manage my time and organize what should be done next. On top of that there's always room for improvement, so with a little adjustment in part two by including the sources I have used, my business plan will be good enough to be shown to others.