IFTC entrepreneurship plan
Changing lifestyles present an immense opportunity for Instructional Fitness & Training Center (ITFC) to grow its bottom line. Changing lifestyles are increasingly geared towards healthy living, which is illustrated by the increased focus on health issues such as obesity (Fitness Industry Analysis, 2016). Introducing a line of business dealing in sports nutrition and diet products is therefore an innovative idea. This is because it not only provides a complementary product but also ties in well with the goal of most of the business’ clients, who are primarily fitness enthusiasts to maintain a healthy lifestyle as exemplified by their dedication to ITFC’s training services. It is only natural that clients who focus on fitness would also be interested in sports nutrition and diet products. The idea of introducing this new line of business is also innovative since it offers an opportunity for the company to diversify from its main product offering. Secondly, a majority of ITFC’s competitors do not offer such a complementary product hence by introducing it in ITFC, the business will become a market leader.
If implemented, the idea will offer a high return on investment for the business. This is because sports nutrition and diet products have the ability to attract a premium price as opposed to traditional fitness and training products whose prices have come under pressure due to an increase in the number of centers such as ITFC and loyalty programs that mandate huge price discounts. Sports nutrition and diet products are considered specialty products and for that reason, its margins are considerably higher. Secondly, very few fitness and wellness centers offer such complementary products, which will enable ITFC to exploit a niche in the market (Fitness Industry Analysis, 2016). As a result, it will create a one-stop shop for fitness enthusiasts who will be able to access both training and sports nutrition as well as diet products. It will therefore attract a huge number of new clients to the business which would in turn translate to more revenue and profit hence a high return on investment.
Plan
Vision
With the successful implementation of the idea, the vision is to create a one-stop shop for fitness, wellness, and health fitness products. That will enable ITFC to maintain its existing clients while at the same time creating a holistic business that can respond to market dynamics as well as people’s changing tastes and preferences. The aim is to ensure that ITFC rides the wave of increasing health awareness and adoption of healthy lifestyles in order to oversee the growth of the business into one of the largest and most important players in the industry over the next few years. By incorporating fitness training, sports nutrition, and diet products, IFTC will become the place to be to a wider category of clients especially the youth, who are the largest demography of the organization’s target market. The idea is also meant to perpetuate the organization’s existence by adopting a new product offering that responds to client demands in recognition of the falling margins and increasing competition in the traditional fitness and wellness business.
Resources
Sports nutrition and diet products are specialty products hence tend to attract high prices. Similarly, the cost of acquiring such products from manufacturers is significantly high. As a result, there will be a need for a vast amount of finances to act as the seed capital for the business idea. Secondly, financial resources will also be necessary to ensure that there is a complete overhaul of the ITFC center to not only ensure that it can accommodate the new product offering but also to create an environment within the center that ignites a feel good factor. Such a measure is meant to ensure that the center’s environment acts as a marketing tool. Financial resources are also required for marketing purposes (Drucker, 2007). The resources will be employed in conducting an advertising campaign for the new product, which will run alongside a sales and promotion campaign in order to create awareness and create a sense of excitement around the new product. However, more importantly, the campaign will involve disseminating information on the benefits of the new product to the clients, which will be tailored to tie in with their training and fitness at the center. Such initiatives require financial resources. Financial resources will also be required to ensure that the members of staff hired are adequately trained.
Human resources will also be necessary in order to ensure that the business idea comes into fruition. Skilled personnel will be required. This is because the new product line not only involves the selling of the sports nutrition and diet products to clients but also offering advice on how the effectiveness of such products can be maximized. Therefore, there will be a need to train such personnel not just on the important concepts of the product but also on customer care and interaction. Other members of staff should also be hired to be in carry out duties at the logistics center.
Logistics will play a critical role in ensuring the success of the idea. Effective logistics resources are necessary in order to ensure that there is consistency in the provision of the products to the clients. It is especially the case considering that all the sports nutrition and diet products will be outsourced from reputable manufacturers. Logistics such as transport will therefore be necessary in order to move the products from the manufacturers to ITFC’s logistics center before onward distribution to ITFC center. The logistics center will act as the point through which the products are received and dispatched as well as a storage unit.
Inter-organizational and Interdepartmental Relationships
The new product line for ITFC will necessitate the need for formation of strategic partnerships with manufacturers of sports nutrition and diet products which call for inter-organizational relationships (Drucker, 2007). Such a relationship will be critical for ITFC as it will create a sufficient body of knowledge on the products which can then be passed on to the clients. By having a close relationship with the producers, it is possible for the business to benefit from economies of scale which can be exemplified through discounted prices for the goods bought on a wholesale basis. Interdepartmental relationships will also be necessary. This is especially the case considering that the new product line will have to rely on ITFC’s existing structures, especially in marketing and finance. Secondly, the aim of the business idea is not to create a distinct operation from the primary business but one that can integrate and act to complement the existing business. It is therefore inevitable that most of the resources will have to be shared among the various product and service offerings which create the need for interdepartmental relationships.
Potential Timeline
Once the finances for the business idea have been availed, it is expected that it will take approximately one month in order to get the necessary approvals to add the new product line. Once the approvals have been granted, overhauling the ITFC center, setting up structures (including hiring of employees) as well as the shipping of the first consignment of the products is expected to take two months. Therefore, the aggregate period required for the business idea to be fully implemented is three months.
References
Drucker, P, F (2007). The Practice of Management. London: Routledge
Fitness Industry Analysis (2016). Cost & Trends. (n.d.). Retrieved August 4, 2016 from https://www.franchisehelp.com/industry-reports/fitness-industry-report/
