Business Analysis of Bonzy Fitness Centre - Case Study Example

Business Proposal Name Institution Course Lecturer Date EXECUTIVE SUMMARY The Bonzy fitness Centreis a business formed to provide fitness services. The business is aiming to contribute towards the health and well-being of the citizen. Due to the increasing demands in the country for the fitness services, the business is set to ensure that the customers get the maximum satisfaction. Bonzy fitness centre offers excellent customers services with competent and highly skilled team of personnel. The business provides services to all people of different age groups including children. This will done through use of high specialised equipment which guarantees maximum satisfaction to the clients. The Bonzy fitness centre will be located in Sidney central business district. I am the founder of the business and establishing it in the city is the ideal place due to proximity to the clients. This in accordance to surveys that over 90 % of the fitness services clients are in metropolitan areas. Due to the increasing need of the fitness services in the country, the business is expected to grow very fast and plans to venture into the international markets. Contents EXECUTIVE SUMMARY 2 3 Contents 3 INFORMATION OF THE BUSINESS 4 MISSION STATEMENT 4 VISION STATEMENT 4 VALUES 4 BUSINESS STRUCTURE 4 OBJECTIVES 5 LOCATION 5 WORKING HOURS 5 BUSINESS GOALS 5 LEGAL 5 CURRENT PROPOSAL 6 SERVICES 6 EQUIPMENT 6 MANAGEMENT PLAN 6 MANAGEMENT 6 PERSONNEL PLAN 7 INDUSTRY ANALYSIS 7 MARKETING ANALYSIS 7 MARKETING STRATEGY 8 FINANCIAL INFORMATION 8 SOURCE START UP FINANCE 8 COSTING 9 REVENUES AND ACCOUNTING 9 S.W.O.T ANALYSIS 9 REFERENCES 11 APPENDICES 12 NAME OF BUSINESS Bonzy Fitness Centre INFORMATION OF THE BUSINESS MISSION STATEMENT The Bonzy Fitness centre offers; high quality services to the clients. Customers must know that choosing Bonzy fitness centre will offer them excellent practical experience and confidentiality. Customers must know that in Bonzy, there is professionalism thus a less risky place to be in. Bonzy business will have to charge great value for the services provided and deliver a much higher value in order to realize the financial balance. The ongoing emphasis of the business will be development of international markets especially in Asia due to the ever increasing visitor from the region. VISION STATEMENT Bonzy fitness centre offers a holistic contribution to the fitness services to augment the health and well-being of the clients around the globe. VALUES Bonzy fitness centre is focused to provide excellent customer service. The business is concentrating on offering high quality services that are affordable and sustainable. The business will seek to embrace innovation in order to expand the market and to reach the niche market. BUSINESS STRUCTURE The Bonzy fitness centre will be under sole proprietorship. I will be the owner of the business but in due time I will integrate a team of principal administrators after consultation with the legal advisors. OBJECTIVES The intention of the Bonzy fitness centre will be development of lasting relationship with customers. The business therefore aims at offering the best services to the customers in order to achieve maximum customer satisfaction. The business aims to accomplish statutory legal requirement. It is also the goal of the business to uphold environmental concerns and to be the leading fitness service provider in the region. Furthermore, the business seeks to attract clients globally, to welcome them, serve and encouraging them to be back again. LOCATION The Bonzy fitness centre will be located at the Sydney central business district in Australia. WORKING HOURS The business will be in operation throughout the week: Monday – Friday 8 am- 7 pm Saturday – Sunday 9 am- 5 pm BUSINESS GOALS The business will seek to offer and maintain high standard services to customers. The business to have large number of permanent staff in operation. The business aims at guaranteeing achievement of fitness and health outcomes.To develop initiatives which will target precise niches for new clients with unique needs. In addition, the business aim is to ensure members retention and facilitating the business longevity. LEGAL The business will have to comply with the rules and regulations that are in operation within the city. Some of the legal fulfilment to observe include; the business will need to have an application from the Integrated Development Assessment System (IDAS), this is to facilitate the use of the rental premise to a fitness centre. There will be another application to the Integrated Development Assessment System to allow for the renovation of the premises to take place. CURRENT PROPOSAL Due to the growing need for the people health and well-being in the country the operation of the Bonzy fitness centre has to be. I have managed to source $ 100, 000 to invest in this project. In order to make this project a reality I need an additional $ 150,000 to finance the project SERVICES EQUIPMENT The equipment required include the cardio machines such as treadmill, recumbent bike, upright bike, total body elliptical, stretch trainer and cross trainer elliptical among others. There will also be machines such as the leg press, cable cross over, lat pull, seated row, chest press, tricep press, functional trainer, preacher biceps curl which constitute the strength training machines. The free weight machines will comprise of the squat rack, portable adjustable bench, airex balance pad, stability balls, abs training bench among others. The fitness centre will also feature fixed resistance machines (Rahl 2010).  Additional facilities in offer will include things like personal training area where individual will be training alone. There will be stretch area for group training. Other facilities in offer will include outdoor training area, cross fit area, boxing area and spa. (Thompson 2011 p.12). MANAGEMENT PLAN MANAGEMENT The business will require high level of know-how, competency and expertise in order to deliver quality services to the clients. Those in management will strictly adhere to the main business proposition by ensuring that quality is delivered. The initial management team will comprise of 1 co-principal whom I will work with. There will also be two consultants, one marketing manager, one operations manager and a secretary. I will be in charge of the overall operations of the Bonzy Fitness centre while my co-principal will be responsible for the administration of the business. My co- principal will take care of employees’ selection and custody but funds expenditure will be jointly shared. PERSONNEL PLAN The overall Fitness manager The operations Coordinator Fitness trainers Receptionist Marketing team Sales consultant INDUSTRY ANALYSIS Fitness industry is majorly composed of the medium and small sized businesses. Apart from walking the fitness activities is the second most popular recreational action. Reports have shown that over four million people take part in the fitness activities (Potts 2011). The majority of users are mostly women especially those who are in the age bracket of 45 – 54 years. The fitness industry generated a revenue of about $ 1.2 billion in the year 2012 with the income expected to grow in the following years. The industry is a source of employment to many with the workforce projected to increase yearly. The increasing health concerns will contribute to vast growth of the industry as well as the technological impact.(Hoeger, &Hoeger 2013) MARKETING ANALYSIS There are about four million people in Australia involved in fitness activities according to researches. The reports indicates that clients visits the fitness centre twice per week on average and majority are in the age bracket of 18 – 35 years (Heyward & Gibson 2014).  The reports further states that more than half of those who attended fitness centre were females. More than 90 % of the fitness services clients are from metropolitan and to establish the business in the city will be an ideal decision.(Macdonald2013) MARKETING STRATEGY PROMOTION - Bonzy fitness centre will be majorly promoted through the local media. There will also be use of the social media such as the face book and twitter. Newsletter and business notice board will also be in use despite the decline in their popularity according to the surveys conducted. After the start of the business operation face to face communication will begin along with the newsletters. ADVERTISING- the advertising will be done through the local media. Social media and brochures will also be used as advertising methods. Nevertheless, the advertising campaign will be commenced one month before the official opening of the business (Laing et al 2010) FINANCIAL INFORMATION The Bonzy fitness centre financial prognoses will be centred on monthly proceeds of about $ 15, 000 in the first month of operation. However, the revenue Is expected to increase by the end of the first six month to $ 20, 000. SOURCE START UP FINANCE The funding to start the fitness centre will partly be provided from my personal savings which I have been accumulating over the years. The savings though not enough will help me to purchase several basic equipment. COSTING The pricing of the services will be majorly determined by the competitors pricing. This translates that prices will be slightly lower than of the competitors in the initial stages. However, pricing strategy will change soon after the business settles. REVENUES AND ACCOUNTING Revenues will be produced when the business provides the services to its customers in the city. This will be facilitated through provision of high quality standards services to the customers who will in turn pay for the value.The accounting details and records will be fully retained by the business administration. The business will have an accountant who will take care of the business financial matters such as preparation of the business financial statement. S.W.O.T ANALYSIS The analysis for the Bonzy Fitness centre Strength Commitment High quality service provision Development of eminence framework that’s guarantees maximum customer satisfaction Working closely with relevant stakeholders in the sector in achieving health objectives. Competent trainers and qualified staffs Calm atmosphere with high standard hygiene observance Contract fulfilment Weaknesses Completion from other services providers in the market Start up business Opportunities To offer knowledgeable services to the customers To target the retiring ‘baby boomers’ population. Threats Completion from the firms who operates with underqualified personnel Increasing costs of rent and insurance services. The upcoming programs that are promoting and facilitating the at-home workouts. REFERENCES Heyward, V H, & Gibson, A 2014 Advanced Fitness Assessment and Exercise Prescription 7th Edition Human kinetics. Hoeger, W, &Hoeger, S 2013 Principles and labs for fitness and wellnessCengage Learning Laing, J, Wray, M, Brown, G, Howat, G, Weiler, B, &Trembath, R 2010Health tourism in Australia: Supply, demand and opportunities CRC for Sustainable Tourism. Macdonald, C 2013 Strong, Beautiful, and Modern: National Fitness in Britain, New Zealand, Australia, and Canada, 1935-1960 UBC Press. Potts, J 2011 Creative industries and economic evolution Edward Elgar Publishingnd conditions from 57 authoritative sources Human Kinetics. Rahl, R 2010 Physical activity and health guidelines: recommendations for various ages, fitness levels, Thompson, W R 2011 Worldwide survey of fitness trends for 2012 ACSM's Health & Fitness Journal, 156, 9-18. APPENDICES Sources and Uses of Funds Sources Personal savings $ 30,000 Family support $ 40, 000 Friends $ 30,000 Expected loans $ 150, 000 Total $ 250, 000 Uses Rent $ 10,000 Purchase equipment $ 120,000 renovations $ 10,000 Working capital $ 40,000 Cash reserve $ 70,000 Total $ 250,000 Read More