Executive Summary
The paper represents the business plan of an innovative idea that is to introduce training facility center in Florida. There is high scope in the market due to the availability of a large number of cops. The training center will provide all the related facilities to the individuals that can be availed in the training centers. It is the new concept to provide a platform to the trainees for their self-practice. Effective marketing strategies are required to attract customers towards this new center. Sales strategy is prepared that is to provide membership by paying off a subscription fee once. The project is attractive that will encourage a large number of people as there are other centers in the area that are centrally owned but this is a private training center that will provide facilities to those trainees. The expansion plan is also prepared to open new centers in the decentralized areas. It will ultimately increase the profitability of the business in the long run, and the-the brand will create its position in the highly competitive market. However, investment is required for the purchase of non-current assets and first-year expenses. The capital improvement amount will be borrowed from bank, but owners will manage the operations improvement.
Business Description and Vision
The innovative business idea relates to providing training services or facilities to the trainees. The indoor facilities will be provided to the trainees who need such type of platform to execute their physical training. All the facilities of Gym, simulators, and classrooms will be available to the trainers. Advanced machinery and equipment are provided in the facility center where every individual can maintain his physical health. The selected location for the center is in between Broward County and Miami-Dade. The aim of the business is to provide such facilities to all irrespective of their training or development. The command of the training center will be under the supervision of Police Department as the trainees belong to officers and other federal government officials. The vision of Leo Training Facility is to provide a place for trainees to do their physical exercise and the machinery and equipment available for training.
Market Analysis
Florida is also known as Sunshine State due to its beautiful and attractive beaches. The population of the state is 19.89 million in 2014. A large number of officers and policeman are located in this locality, and many people come from the different state to complete their career training to this state. However, there is training center including National Training Center in the state, but there is a need for a private training center where officers can do physical exercises to remain fit and fine. It is noticed that there are competitors, but there are not private owners that are why there is a need of private training center that can provide high-quality facilities to the trainees. The market is highly competitive due to the services providers in this location, but it is also true that there is no barrier for new entrants, and it can grow in future due to the attraction of police officers and other trainees towards this concept. Trainees are willing to find such platform that can allow them to perform their respective routine activities as they cannot do this in their professional centers due to variety of reasons.
Products and Services Description
The products of the training center are related to the training and routine exercise that are widely practiced by the trainees in their respective training. The products and services in the training center are.
Pool
The pool of fifty yards is available in the training center that can be used by the members of the center. The pool has a capacity of seven people at a time, and more than 50 participants can practice in an hour. The swimming pool is available for all so that trainees can maintain their weight and remain healthy in their entire career.
Shooting Simulators
Shooting stimulators are essential for police and army training. They are provided to train participants who belong to such type of security based organization. The main objective of the organization is to facilitate trainees who are willing to practice at the center and sharp their skills and abilities. The membership for the simulators is also required to restricted all to have easy access to it.
Classrooms
Classrooms are provided to the individuals who are intended to get education and knowledge in their respective fields. The classes will be scheduled according to the requirements of courses and capacity of trainees who will come there for learning and education.
Indoor track
As this is a big project, an indoor track of 220 yards is also available for the trainees. They will be allowed to run on the track for strengthening their muscles and stamina that are mandatory for the training and development in such type of career. It is available for all individual as this is a common practice that each needs to practice for maintaining their physical health.
Indoor Gym
The gym is an essential requirement of any training center as trainees need a free environment to do exercises with the use of equipment. It is the core area of business that will attract large number of trainees to the customers so it will be ensured that there are guiders and trainers who can provide assistance to the trainees.
Organization and Management
The structure of LEO Training Facility is simple as it is run by four partners who had contributed equally to the long-term project. The command of the organization will be in the hands of leaders of the organization who will make decision makings. The departments of the organization are divided according to the functions or operations of the center. Also, the managers of each department will have responsibilities and duties to do their assigned tasks. The managers are responsible and entitled to get the work from their subordinates and design suitable directions for them. Moreover, all the employees have equal right to report any problems, give suggestions and view, provide recommendations on the critical issues. They are entitled to communicate to their departmental managers regarding any critical situation come forwards while performing their duties. Also the structure of the organization is from top to bottom and bottom to top that is the arguments, claims, and matters of employees will be brought to the upper management to find a reasonable solution to issue or challenge.
Potential Control
The upper management of the organization is control and managed by the leaders who are experienced and professionals in running such type of centers. They are entitled to take risks along with the profit of the organization. The overall command and authority will be in the hands of a general manager who is entitled to assess the performance of respective managers. The responsibilities are delegated to the respective department managers, but the control and command will be in the hands of upper management. The administration will manage the administrative and operational activities of the organization. The checks and balances are the duty of the upper management that will assist the performance of managers and make a decision in different situations. The authority is delegated to the department managers who will further delegate it to the supervisors and managers. Also, LEO Training Facility will appoint and hire five bouncers that can control any critical situation within the organization. It is unusual for the training center, but the authorities and leaders have decided to do it for the sake of security. Although the management will be in the hands of upper management extensively, they can ask bouncers for help in case of any unusual situation.
Marketing and Sales Strategy
Marketing
Marketing is the tool to attract customers towards the new or existing business. Businesses practice and adopt strategies to market their products and services in the existing and new markets. The attention and attraction of customers are mandatory for new business. Customers should have proper knowledge of the products and services provided by the organization (Ramaswamy).
Target Customers
LEO Training Facility is the service organization, so it is preferable to select a target audience for the marketing strategy. The electronic and printed media will be used to target police districts, public police department, and local and state law enforcement agencies. The targeted market will be approached through printed media as it is observed that most of the government and state officers read newspapers, magazines, and daily updates to get information of the outer world (Ramaswamy).
Marketing Strategy of LEO
The marketing strategy of LEO Training Facility is prepared that include making the list of government and state offices and send letters via email or by hand so that they take an interest in getting attached to the organization. Customers will be attracted through effective marketing tool that is presenting the facilities that are available to them. They should have a catalog or broacher to have clear pictures of the available facilities. Customers will be attracted by providing high-quality services as they can have it in their official training center. The marketing message should be prepared to enable customers that Leo Training Facility is the unique service provider in the city that has an effective plan to facilitate a large number of people. The message should not be emotional as the target audiences possess tough behavior. However, the security is also necessary for such type of facilitating centers so there should be a security plan that will be communicated to people (Spotts).
Media
The selection of media is also significance in marketing. Nowadays, social media is widely chosen by large to engage more customers towards their products and services. However, the target audience of Leo Training Facility is police and other trainees that may not prefer to use social website extensively, so electronic and printed media is suitable for the advertisement and promotion. Mostly, officers and professionals use to read newspapers, so the effective solution is to give an ad in the newspaper. It is the most appropriate way to allow target audience focus on the offerings of the training center and make efforts to reach their desired products and services (Pride and Ferrell).
Sales strategy
Sales strategy is a plan that is prepared to allow customers of the product to buy it. Products and services are introduced through marketing, but sales strategy is prepared to explain who the product will be sold or distributed to a large number of customers. The services available at LEO are old but the idea for personal and professional training center is new, so subscription is required to allow membership to all. All the members can enjoy the facilities by entering into the training center showing their id cards issued by the administration. The training center is somehow different from other as there is no time limitation for availing the facility. The amount of subscription fee is low as compared to other training center but the facilities provided are of high quality (Maynard).
Competitive Price
Sales Strategy relates to the pricing strategy. As the market is highly competitive and there are substitutes available in the region, it is essential to set prices that are affordable as well as profitable. It is immaterial to segregated prices for all the facilities provided to the trainees, but there should be one amount subscription fee to become the member of the Center. The pricing strategy is simple and easy to understand by the trainees as there are no monthly charges for the trainees (Ferrell and Hartline). The fees of this training center will be lower than others due to the newly opened business however it is expected to increase with the increasing demand and members of Leo Training Facility.
Expansion Strategy
Expansion plan or strategy is essential if a company is willing to increase its operational activities within the same geographical location or another area. The expansion strategy of LEO Training Facility is simple that will be executed after two years of business. The project expansion plan includes the opening of various training centers in the decentralized locations. Although planning is not sufficient for the expansion, a strategy is prepared to increase the training centers in the city to attract more customers. The expansion plan depends on the effective services provided by the management so it is decided that the assessment of operational activities will be done to satisfy customers at large (Ferrell and Hartline).
Financial Management
Financial management is the effective management of funds or cash of a company to fulfill its planned goal and objective . The financial management of Leo Training Facility is in the hands of upper management who are decision makers of the business. The financial management of the center can be divided into categories according to their nature but they both are important for the success of business in future.
Capital Improvement
Capital improvement refers to the addition of the existing assets of a company that can increase the value of that business or increase its useful life. Capital expenditures are also known as capital improvements (Weil, Schipper and Francis). The management has estimated the amount of each Capital expenditure that would be required for starting a new business. These expenditures are known as capital costs that are required to establish a new business. It comprises of machinery and equipment that can be imported from other countries. The high cost is allocated to the building as this center comprises of different geographical sections that will acquire a large area of the center. Center requires various accessories to facilitate customers, so the fewer amount is allocated to the purchase it. Moreover, there are other costs that may arise in future such as legal documents, but they will be included after their confirmation. It should be noted that the entire amount of the capital improvement will be borrowed from bank.
Operation Improvement
Operation Improvement refers to the efforts of business to strengthen their overall process and improved products and services to increase the volume of sales. The management of operation improvement is also mandatory as it ensures high satisfaction and loyalty to customers and they will attract towards the organization (Maynard). The main thing in this center is to attract customers or members via potential and result-oriented strategies. Marketing and promotion are the only technique to attract a large number of the audience towards the products or services of a company. Leo Training Facility has an effective marketing and sales team that can increase the volume of sales in few years. The salaries of staff are high as there are skilled and experienced employees and in large number. It is obvious that the administration incurs some expenses for controlling and managing their cash flows and other financials. The administration does the collection of the membership fee, checks, and balances on accounts, and remembrance of renewing date of membership, so the fund is needed. Revenue expenditures that are expected in the first year also referred as initial costs that should be determined before starting a new business. The owners will arrange the entire amount of operations improvement as the contribution of their capital in this business. It should be noted that the start-up costs of the project are the sum of capital improvement and operations improvement.
Conclusion
The business plan demonstrates all the details of products and services, operations, and financial management of Leo Training Center. As a new business idea, high growth is expected in it, and the market analysis of Florida also shows that market is highly competitive, and newcomers can capture a wide range of the market. The estimations, expectations, and predictions are on one side wherever it is also essential to assess that the project is feasible or not that can be revealed by preparing Performa income statement of three years. It shows a growth of approximately 20 percent in the coming years. The rate of inflation can put a direct impact on the revenue expenditures, but the expected increase in income is higher than the change in expenses. It can be concluded that the project is feasible due to its attractive location, products and services, and efficient management. It is also expected that the project will provide high return in the short and long run with low risks.
Works Cited
Ferrell, O. C. and Michael Hartline. Marketing Strategy. Mason: Cengage Learning, 2010. Print.
Maynard, Jennifer. Financial Accounting, Reporting, and Analysis. Oxford: Oxford University Press, 2013. Print.
McDonald, Malcolm. Marketing Plans: How to Prepare Them, how to Use Them. Pennsylvania: Elsevier, 2009. Print.
Pride, William M. and O. C. Ferrell. Marketing 2016. Mason: Cengage Learning, 2015. Print.
Ramaswamy. Marketing Management. London: Tata McGraw-Hill Education, 2013. Print.
Spotts, Harlan E. Marketing, Technology and Customer Commitment in the New Economy: Proceedings of the 2005 Academy of Marketing Science (AMS) Annual Conference. New York: Springer, 2014. Print.
Weil, Roman, Katherine Schipper and Jennifer Francis. Financial Accounting: An Introduction to Concepts, Methods and Uses. Mason: Cengage Learning, 2012. Print.
Appendices
