Executive Summary
The motive for starting this kind of business is based on the fact that many people in the recent times are facing health problems resulting from body unfitness. These health problems include obesity and problems associated with being overweight. The objective of the business is to provide advice and instruction from professional trainers regarding proper exercises and healthy living. The market for the company is segmented in terms of demography. The demography segmentation consists of gender, income, age, language and social classes. The business will offer services that are categorized either as being private or public. The services that Fitness Bringer Ltd aims to provide are realistic. This is because they are the basic services that health experts usually recommend to patients who have health problems associated with obesity and being overweight. Fitness Bringer Ltd will enjoy a good and extensive market in the local market. It is estimated that 12.1% of the UK population are registered as members of a fitness club or public fitness facilities in 2012 contrasting with 11.9% in 2011. The value of this market was worth £3.86 billion in the year 2012 which was an increase by 1.4% from the valued figure in 2011. The location of the business is in Westfield Stratford London (East London). The location is accessible through available and good transportation network and availability of parking space for the customers. The pricing of Fitness Bringer Ltd is determined by the type of service the customer wants. The type of service is categorized as being normal gym, private service or a mixture of the two. The start-up capital and running expenses for one year is budgeted at £5,208,000. Each investment shareholder will be required to contribute a total of £868,000. The fitness activity is a green service and is, therefore, environmental friendly. This ensures that the company is constantly in good terms with the environmental regulators.
Chapter 1
1.1-Introduction
Fitness Bringer Ltd is a private limited company that deals with provision of the physical body fitness services to its clients. The rationale for starting this kind of business is supported many ideas. One of the ideas is that many people in the current are facing health problems based resulting from body unfitness. These health problems include obesity and problems associated with being overweight. It is estimated that, by 2020, 41% of men aged 20 to 40 will be obese, and a further 40% will be overweight, and 36% of women will be obese, and 32% will be overweight. Among those aged 40 to 65, 44% of men and 38% of women will be obese while 40% of men and 32% of women will be overweight. (McPherson, 2010)
1.2-Aims and objectives of the business
The aim of the business is provision of fitness services through the establishment of a gym. One of the objectives of the business is to provide exercise programs that differ with the various health problems. Another objective of the business is to provide advice and instruction from professional trainers regarding proper exercises and healthy living. The business will offer services that are categorized either as being private or public. Public services refer to the general provision of advice and instruction from professional trainers regarding gym exercises. The private services refer those that are provided personally to the interest in having a personal trainer who will track the customer’s health conditions and progress. The objective of private services is to guarantees for customers’ goals and Cater for customers’ nationalities by arranging international trainers. The gym will contain modern equipment and facilities that will allow customers to exercise in various types of exercise. For fitness exercises, the customer will require various equipment, which caters for the different types of clients. The gym facilities will range from those required by children to the one required by adults. The services that Fitness Bringer Ltd aims to provide are realistic. This is because they are the basic services that health experts usually recommend to patients who have health complications regarding obesity and being overweight.
2.0 Chapter 2
2.1-The business Environment
Fitness Bringer Ltd will enjoy a good and extensive market in the local market. It is estimated that 12.1% of the UK population are registered as members of a fitness club or public fitness facilities in 2012 contrasting with 11.9% in 2011. The value of this market was worth £3.86 billion in the year 2012 which was an increase by 1.4% from the valued figure in 2011. This shows that the market available for Fitness Bringer Ltd is growing in a high rate. This will ensure that the company will be a going concern since it will have growing and unlimited demand for fitness services. The political state in UK is stable and will ensure that customers are attracted to the business since they will not fear of their security. The economy is also stable and growing ensuring the efficient thriving of the fitness business. The high technology has led to the invention of appropriate gym equipment that will provide customized services to the customers. The fitness activity is a green service and is, therefore, environmental friendly. This ensures that the company is constantly in good terms with the environmental regulators. 2.2-The product/service description
The products that Fitness Bringer Ltd will be providing ranges from general services to private services. Some of the general services are provision of modern equipment and facilities for exercise, provision of lockers for changing rooms and provision of advice and instruction from professional trainers. The private services include making appropriate plans made by personal trainers’ tracking customers’ health conditions, making guarantees for customers’ goals and catering for customers’ nationalities by arranging international trainers. The pricing of Fitness Bringer Ltd is determined by the service the customer wants. The type of service is categorized as being normal gym, private service or a mixture of the two. The prices for normal services are £40 per month, £200 for six months and £390 for annual payments. The prices for private services are £150 for six times a month, £800 for 38 times per six months and £1,400 annually covering 80 times. Pricing for the mixture of the two services ranges between £125 per month and £1000 annually. The location of the business is in Westfield Stratford London (East London). The location is accessible through available and good transportation network and availability of parking space for the customers. Transportation can be through Tubes: Jubilee Line & Central Line, Buses 97, 241, 339, D8 and use of personal cars. The good thing about this location is that customers can exercise and enjoy shopping facilities available in the building. The customers can also have a massage before and after exercising at Massage Angels sets on the same floor as the gym. Promotion of the business will be done through the provision of membership cards, creation of an official website, posters, TV and Youtube advertisements.
2.3-The marketing Area (Segmentation/USP)
The market is segmented in terms demography. The demography segmentation consists of gender, income, age, language and social classes. The age of potential customers ranges between the ages of 16 to 55 years old. The income level of the targeted customers ranges from £400 to £10,000 per month. This range of income the customers receive per month allows them to afford the friendly prices that the company charges. The company is targeting a market whose social class consists of lower middle class, skilled working class, middle class and upper class of the society. The company will provide fitness services to different language speaking customers. The customers might speak English, Pakistani, Chinese, and Indian languages.
Chapter 3
3.1-The Financial Area
The start-up capital and running expenses for one year is budgeted at £5,208,000. Each investment shareholder will be required to contribute a total of £868,000. The number of customer that are expected to visit the fitness company for the next 3 years is a total 29,300 for normal gyms, 16300 for private services and 13500 for the mixed services. This expected number of customers will earn the company an estimated profit of £1,113,700.
Conclusion
The company has a good start-up and operation structures which will ensure it succeed in the future. The shareholders have agreed on profit and loss sharing ratio to be equal amounts. The company will make necessary changes as the operation of the business continue.
References
AMA Research (2012), Health And Fitness Market Report - Focus On Clubs And Equipment- UK2012-2016Analysis, Available at: http://www.amaresearch.co.uk/health_and_fitness_12s.html (Accessed 5 May, 2013)
Bouchard. C (2006). Physical Activity and Health. Leeds, Human Kinetics
FitnessIndustryBackinGrowth,(2013),Availableathttp://www.theleisuredatabase.com/news/news-archive/fitness-industry-back-in-growth (Accessed 5 May, 2013)
Ingram, S. (2005). Want Fries With That?: Obesity And The Supersizing Of America. Danbury: Children's Press (CT) (September 1, 2005).
McPherson. K, (2010), “By 2020, 80% of men will be overweight, study shows”, the guardian, 16 February, Available at: http://www.guardian.co.uk/society/2010/feb/16/adult-obesity-rises (Accessed 5 May, 2013)
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Appendix
Appendix I: Membership systems and prices
Appendix II: Capital
