SADAKAS GYM a sole trader with up to 20 employees

Published:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

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

Task

Due Date

Identify your business and devise a plan of approach

19/7/10

Business description and ownership

23/7/10

Legal Structure

23/7/10

Purpose of plan Situation analysis: SWOT

24/7/10

Business Objectives and Strategies

24/7/10

Description of the good and service

25/7/10

Progress: Gather and process relevant data/information

26/7/10

Staffing Requirements

29/7/10

Marketing Analysis and Marketing Strategies

1/8/10

Financial Forecasts

1/8/10

Critically review the plan and process

4/8/10

Complete final report

4/8/10

Executive summary

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

Internal

Strengths:

Good name and reputation

Provides safe facilities

Good location

Good management skills

Weakness:

Small business

limited budget

limited resources

External

Opportunities:

Good economic conditions

Social interests

Threats:

Competition

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 sales

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.

Staffing Requirements

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.

Fitness First

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.

World Gym

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

$

$

CURRENT ASSETS

Cash at bank

10 500

Amounts receivable

15 000

Stock

30 000

Total current assets

55 500

NON-CURRENT ASSETS

Equipment

100 000

Total non-current assets

100 000

TOTAL ASSETS

155 500

CURRENT LIABLIITIES

Bank overdraft

15 000

Accounts payable

17 500

Total current liabilities

32 500

NON-CURRENT LIABILITES

Loan

65 000

Total non-current liabilities

60 000

TOTAL LIABILITIES

97 500

OWNERS EQUITY

Capital

25 000

Retained profit

33 000

Total owners equity

58 000

TOTAL LIABILITES AND OWNERS EQUITY

155 500

REVENUE STATEMENT

$

$

Sales Revenue

100 000

Cost of goods sold (COGS)

(COGS = Opening Stock + Purchases - Closing Stock)

Opening stock

20 000

Purchases

20 000

Closing stock

5 000

TOTAL

35 000

Gross Profit

(Sales Revenue - COGS = Gross Profit)

65 000

Net Profit

(Gross Profit - Expenses = Net Profit)

EXPENSES

Advertising

6 000

Insurance

3 000

Salaries and wages

23 000

Telephone

3 000

TOTAL

35 000

Net profit= 65 000 - 35 000

30 000

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.

Writing Services

Essay Writing
Service

Find out how the very best essay writing service can help you accomplish more and achieve higher marks today.

Assignment Writing Service

From complicated assignments to tricky tasks, our experts can tackle virtually any question thrown at them.

Dissertation Writing Service

A dissertation (also known as a thesis or research project) is probably the most important piece of work for any student! From full dissertations to individual chapters, we’re on hand to support you.

Coursework Writing Service

Our expert qualified writers can help you get your coursework right first time, every time.

Dissertation Proposal Service

The first step to completing a dissertation is to create a proposal that talks about what you wish to do. Our experts can design suitable methodologies - perfect to help you get started with a dissertation.

Report Writing
Service

Reports for any audience. Perfectly structured, professionally written, and tailored to suit your exact requirements.

Essay Skeleton Answer Service

If you’re just looking for some help to get started on an essay, our outline service provides you with a perfect essay plan.

Marking & Proofreading Service

Not sure if your work is hitting the mark? Struggling to get feedback from your lecturer? Our premium marking service was created just for you - get the feedback you deserve now.

Exam Revision
Service

Exams can be one of the most stressful experiences you’ll ever have! Revision is key, and we’re here to help. With custom created revision notes and exam answers, you’ll never feel underprepared again.