Business Proposal for Gym in Retail Sector Essay Example

weaknesses and collaborate to transform them into strengths. Additionally, the aim is to enhance existing strengths further. Another objective is to seize every opportunity for business growth while proactively addressing potential threats.

Improving the owner's financial prosperity and establishing a positive community reputation are also aims for the gym. Achieving these objectives requires teamwork between employees and the owner. Employees can assist each other with weaknesses while building upon individual strengths.

Furthermore, it is necessary for the owner to invest funds in business improvements like renovations, sponsorships, and purchasing additional inventory to achieve these goals. The gym will utilize modern technology by providing large televisions near treadmills and cardiovascular equipment for exercisers' entertainment.
The front counter and main office will utilize computer systems for membership sign-ups, cash transactions, and general business operations. These systems will consist of eftpos installations, printers, and cash registers connected to computers. It is ideal for all three computing machines to be linked together in order to enable ranking and reclamation features as well as display current members, thereby improving convenience at work. The required equipment and materials will vary depending on the gym's size and rate of growth. Essential equipment includes medicine balls, accessories, boxing gear, gym shocks, barbells, cable attachments, weight plates, benches, dumbbells along with filing cabinets for paperwork organization. Communication noticeboards should be available while paper supplies are necessary for administrative tasks. Cabinets are needed for storage purposes while shop fittings like pens and electric refrigerators contribute to efficient operations within the facility. Office furniture such as chairs is also a requirement. Supplies needed include addendums such as gym singlets along with membership packages that can be offered to customers

or potential members. Gym equipment like sports drinks (bag towel bottle) should also be readily available during workouts if desired by customers or staff members alike along with uniforms specifically designed for staff identification.To effectively track staff schedules, a timetable or roster should be created and distributed to employees every Saturday. This is especially important for those with weekend shifts or lack access to physical rosters, as it ensures they are informed about their working hours and eliminates any excuses related to unawareness of when they need to show up at work.

The gym may incur high expenses for testing and evaluating, primarily due to the significant amount of equipment needed and the necessity of educating staff on technology. Additionally, there may be challenges in maintaining supplies due to constant demand.

For smooth operations and convenience for gym-goers, it is recommended that staff members specialize in specific areas such as front counter duties, computer operation, or cardio and strength exercises. It is crucial to hire certified personal trainers who have qualifications in weight loss, strength training, and overall fitness (certification III and certificate IV) in order to prevent unqualified individuals from falsely claiming to be trainers.

Ongoing training should be provided to both new and existing staff members on new technologies and proper usage of exercise machines/equipment for safety reasons. Employees should also be aware of their responsibilities in assisting gym-goers and mentoring new or younger staff members.

Maintaining professionalism at the gym is essential; employees should be punctual and respectful towards others. It is important for employees to stay motivated and maintain a high level of work quality.Implementing a wage system that rewards employees for exceeding expectations or

working longer hours is one approach to achieving this. This would motivate employees to maintain high standards and ensure customer satisfaction, thereby encouraging repeat visits to the gym. It is also crucial to provide a safe and healthy work environment where employees can feel at ease and perform their best. This may involve offering designated office spaces during break times and cabinets for personal belongings. By prioritizing employee well-being and striving for excellence, employers demonstrate their commitment to creating optimal working conditions.

To evaluate employee performance, there are three main channels that can be utilized. Colleagues who directly work with the employee can provide feedback on their performance. Additionally, customers have the option of voluntarily completing rating sheets after training sessions with the employee as another source of feedback. Lastly, managers or bosses can engage in conversations with employees to gather their thoughts and suggestions for improving various aspects of the gym.

Throughout the operations component, several challenges may arise. One challenge pertains to the high costs associated with establishing a gym, particularly within limited space constraints. Furthermore, there may be slow periods with low customer traffic during the initial phases of operation.Finding qualified employees who are already employed or close to completing their studies as personal trainers is a challenge. This can be costly as it may require offering higher wages or better benefits to attract them. Additionally, training these employees to effectively work in a gym can be time-consuming due to the need for strong interpersonal skills and confidence in client interaction.

The gym's target market encompasses a diverse range of groups. One group consists of individuals seeking exercise and guidance for weight loss purposes. Another

target market includes those interested in building muscle size and strength. Lastly, women, men, and teenagers looking for effective cardio sessions with a certified trainer form another potential customer group.

To cater to these varying needs, the gym should offer a variety of workout options such as light weights, treadmills, and exercise bikes. Providing suitable facilities and creating a positive environment is crucial for individuals participating in these activities.

To attract more people as the gym expands its reach, one strategy could involve collaborating with local schools to request their sports clips and organizing cardio or weight training sessions based on majority preferences. Initially, these activities should be free of charge but subsequent sessions may have a nominal fee attached.This strategy aims to encourage teenagers to become members and promote others to join as well, leading to rapid growth and positive experiences for newcomers. Competitors play a significant role in the success of the business as they impact membership fees, visitor fees, and prices for merchandise like shirts and supplements. Therefore, it is essential not only to have competitive prices but also exceptional quality products and services that customers are willing to pay slightly more for knowing they are receiving top-notch quality. If your prices and product/service quality surpass those of your competitors, you ultimately achieve a competitive advantage over them.

Gross sales forecasting involves examining sales figures based on various factors such as individual products, sales representatives, geographic locations, seasonal or annual sales trends, cash or credit card sales. These statistics are utilized to predict future profits for a business. However, accurately predicting sales for a newly established business is challenging due to the lack of long-term

data. Statistics should be at least one year old in order to indicate consumer spending patterns.

One notable statistic that can signal a potential increase in gym business is the winter season when more individuals tend to join gyms to get fit for the summer. Another consistent figure is the sale of supplements since they are always in demand.Furthermore, the gym also utilizes the sale of these supplies as a means to gather important data for their business operations. By monitoring the sales of towels, bottles, drinks, shirts, and vests, the gym can gain insights into when they need to reorder supplies, hire additional staff members, or prepare for periods of slower business activity. This information is crucial for making informed decisions and avoiding excessive hiring as stated in Cambridge Preliminary Business Studies (page 276). Effective marketing strategies are also essential in achieving specific objectives that align with the overall strategic goals of a business. These objectives may include increasing sales, market share, entering new markets, diversifying products, and boosting profits (Surveys - page 278). To ensure consistency across all aspects of marketing such as product selection, promotion tactics, pricing strategies,and placement methods,it is vital for these strategies to be unified. The gym offers a variety of products and services including gym attire,bags,bottles,and towels which are all manufactured by Skins USA known for their high quality. Each item comes packaged according to stringent standards in sealed plastic bags that are practical and suitable sizes - not too big or too small.The extended warranty period accompanying each product indicates its durability as well as the manufacturer's confidence.If a customer experiences any issues due to misuse or abuse,the

gym willingly replaces the product ensuring customer satisfaction.The gym offers a range of services at affordable rates, with monthly fees of $70 for adults and $55 for individuals under 18. Upon registration, members receive a complimentary gym bag, towel, and bottle, making the offer $10 cheaper than competitors. Merchandise prices include $20 for a bag, $10 for a towel, and $5 for a bottle. Collaborating with suppliers who provide affordable goods without compromising on quality enables these competitive prices.

Effective promotion is vital in attracting new members to the gym. One strategy employed is offering free sessions to schools in order to encourage students and teachers to become members themselves. Advertising in local newspapers serves as an inexpensive and efficient method to attract people to the gym by promoting new membership offers and providing vouchers for free or discounted entry.

Moreover, sponsoring local sports clubs not only brings individuals of all ages to the gym but also enhances its reputation as a supporter of young people. Our exclusive products will be stored within storage rooms located within the premises, likely in the office area.Cambridge Preliminary Business Finance involves understanding the financial requirements of new businesses. These needs can be met through debt funding, equity from owners, or potential partners. To determine the necessary amount of financing, a comprehensive business plan should outline how these funds will be used.

Start-up costs for a gym can be significant and include acquiring and renovating space, purchasing equipment, and hiring staff. While this may pose challenges for a sole trader, proper financial management is crucial to ensure smooth operations and avoid excessive debt accumulation. Once established and during the growth phase, it

is important for gyms to become self-sustaining to prevent liquidity issues.

Gym owners must carefully manage cash flow by minimizing unnecessary expenses and saving for slower periods. Earnings should be reinvested in the business to support equipment maintenance and procurement of new products for members, promoting steady growth.

In business planning, fiscal forecasts play a critical role as they determine if a business can afford to produce goods or offer services. These projections rely on market research and product research and can be created using various methods such as forecasted cash flow statements, projected profit and loss statements, recent profit or loss statements (for established businesses), projected balance sheets, and break-even analysis.The forecasted cash flow statements provide details on the amount and timing of necessary funds, typically in weekly, monthly, or quarterly intervals. This type of statement is particularly useful for businesses in their establishment or growth stages. However, newly started businesses may find it more appropriate to create a personal balance sheet instead. By doing so, owners can manage personal commitments while ensuring sufficient income for their families.

The gym's balance sheet showcases its financial status by displaying income, expenses, worker payments, supply purchases, and overall stability. Potential buyers or investors utilize this information to evaluate associated risks. For small businesses like gyms, maintaining accurate financial records that encompass gross statements, cash flow statements, balance sheets fund statements,and budgets is crucial.

In the case of this gym's new business venture,the owners have chosen a balance sheet as it is easier and more convenient for them. The projected balance sheet for July 1st , 2011 includes current assets such as cash at bank accounts receivable and stock.Non-current assets consist

of equipment and motor vehicles with an additional intangible asset for goodwill.The total assets amount to $1,182 ,500.

Current liabilities include a bank overdraft and accounts payable totaling $150 ,400.Non-current liabilities are made up of a long-term loan worth $350 ,000 . Overall liabilities amount to $510 ,400Owners' equity is comprised of capital, undistributed net incomes, and drawings worth $414,800. The total value of liabilities and proprietors' equity together amounts to C938 266. Gym Liquidity can be determined by dividing current assets ($192,500) by current liabilities ($150,400), yielding a ratio of 1.28. This indicates that there is $1.28 available for every dollar of short-term debt repayment. Ideally, this ratio should be 2:1 to ensure manageable debt payments. Gym Solvency, which measures entire liabilities divided by owners' equity entirely, equals $510,400 divided by $414,800. This results in a ratio of 1.23, indicating that for every dollar of equity held, there is $1.23 in debt (Cambridge Preliminary Business Studies - page 283). Financial controls are vital in any business as they establish standards for comparison and evaluate the company's success. These controls provide a framework for corrective action and maintain the business on a successful trajectory. Implementing standards serves as the basis for improvement; one criterion could be maintaining or increasing the number of members once it reaches satisfactory levels while another focuses on staff providing quality service to gym users through respectful treatment and assistance when needed. Setting a budget acts as the primary control strategy employed by the gym.According to Cambridge Preliminary Business Studies (page 283), the gym owner establishes control by considering the income and expenses of the gym. The budget should enable growth without

incurring substantial debt, while also adapting to meet customer demands. On average, the weekly budget is approximately $5000.