University Of The Poonch Rawalakot

Faculty Of Engineering & Technology

Department Of Electrical Engineering

Course Title : Entrepreneurship

Course Code: MS-355
Semester: 5th
Session: 2017-21
Submitted By: Shahzaib Latif
Roll No: 17-EE-40
Submitted To: Ms. Aiman

Dated 6 April 2020

Table of Contents

1. Introduction

2. Executive Summary

3. Company description

4. Product and Services

5. Marketing Plan

6. Operational Plan

7. Management and Organization

8. Financial Plan
 1. Introduction

Humans have always been keen to be fit and strong in order to progress and live a healthy life right

from the outset. Throughout the human history, man has adapted different techniques and

approaches to improve physical fitness and gain more strength.

A gym or physical fitness center is a modern concept that has been developed in recent past and is

a key towards a healthy lifestyle.

Physical Fitness Center (Gym)

A health physical fitness center or a gym) is a place which houses exercise equipment for

the purpose of physical exercise.

Why is there a need for a physical fitness center?

 Physical fitness is one of the most important aspects of life.

 It is said that “A sound body has a sound mind”.

 A physical fitness center provides people an opportunity to spend some time

shaping their bodies in a proper healthy way with care and caution.

In the following business plan I am going to discuss in details establishing a physical fitness

center named “ Modern Gymkhana Services” in the locality of Rawalakot city.

 2. Executive summary

The location of the gym will be on a main road with good parking facilities. This will help the gym

grow with members as it attracts people because of the location and give people advantages to join

the gym with ample parking. There isn’t much history about the gym because it is a band new

business but the idea came to me about 5 months ago when I wasn’t satisfied with what other gyms

offered to customers.

The business is situated in the retail sector because it provides gym equipment to people who don’t

have room at their houses or they cannot afford all the equipment themselves. The Prime function

of the business is to provide gym equipment to people as well as help them achieve their fitness

goals. The gym offers a wide range of products and equipment starting from bags, drinks and

clothing to dumbells, treadmills and benches.

The goals of the gym would be social, financial and environmental goals. The social goals that the

gym would like to achieve would be good service to patrons that use the facilities, helping the

community through sponsorships of local sporting clubs and helping out schools through

conducting sport lessons in the gym.

Financial goals that the gym would like achieve would be to increase the owner’s wealth through

increased market share, increased level of cash flow and increased level of liquidity. But increasing

wealth is one of the objectives. The other financial objective would be to minimise the wastage of

money on items or products that will not help the gym grow and not falling into heavy debt.

Environmental goals that the gym would like to achieve would be to use electricity efficiently,

install energy efficient appliances, minimize waste and disposing of the waste.
 3. Company description

Modern Gymkhana services would be a physical fitness center that is keen on providing services

and products to people around Rawalakot city particularly Housing Scheme and adjacent areas.

The gym will encompass an area of 5000 square feet.

The focus of Modern Gymkhana services will be to involve the people of all concerned ages in

various fitness related activities and expose them to the variety of activities and services the center

offers. The gym center will include families too and there will be a childcare center inside the

premises that will keep members’ children happy and entertained while members take part in any

of the center's activities and services.

The gym will also offer fitness equipment outside gym on lease.

The gym center will be owned by Mr. Shahzaib Latif along with co-owner Mr. M. Salman.

There is no previous history of gym center and it is an upcoming business plan which is going to

start in 2020. The thing that inspires this business plan is the idea that this is not only going to be

a profitable project in upcoming time but also it gives me a satisfaction that I am contributing my

part towards a healthy and physically fit society.

Mission: Our mission is to provide an Entertaining, Educational, Friendly and Inviting, Functional

and Innovative experience of uncompromising quality that meets the health and fitness needs of

the entire family.

Vision: To be the best gym in the state.

Target market: The client members range from the age 15 to 60.

The gym activities will be conducted and supervised by trained staff.

 4. Product and Services

The services that will be provided by Modern Gymkhana services based on location, space and

funds are following:

i. Gym equipment

First priority is to purchase basic gym equipment. This includes dumbbell, barbell, treadmills,

rowing machines, and many others. Some equipment can be provided e.g. to schools outside gym

on lease.

It is good to include all the necessary gym equipment for customer satisfaction.

ii. Food or drink products

Some space for refreshment services will be created. This includes a refrigerator to store and sell

some energy drinks, health foods, and water.

Clients need some care and providing these products , will build loyalty and membership retention.

iii. Personal training

Personal training services will be provided. Some clients are comfortable training alone while

others may want a personal trainer to take them through the training session.

iv. Training Classes

This a very important program that generates a lot of money for your gym. Most clients especially,

those who want to lose belly fats and weight loss prefer training classes.
 v. Lockers

.By offering lockers to members can help them keep their items safe.

vi. Childcare services

Another important service that will be offered in the gym is childcare. Including childcare in your

gym will create a sense of caring and loyalty.

vii. Swimming pool

After the gym, some clients may need to refresh their bodies by swimming. Furthermore, some

clients like swimming, therefore, they can come only for swimming and pay for it.

viii. Physiotherapy

Offering physiotherapy services to the client is a greater deal. At a time, a gym member may

dislocate his or her body part, in which case it will help.

5. Marketing Plan

The marketing plan for “Modern Gymkhana services” is designed according to target market.

This includes the use of various platforms for advertising the business mostly through social

media. Social media is one of the most powerful platforms currently to advertise a business

or product.

Promotion Strategy

Following initial promotional activity through advertisements in newspapers, magazines, and

on television and radio, Corporate Fitness will significantly reduce its promotional efforts in

the hope that word-of-mouth will attract potential clients. Promotional activity will still be

utilized through these media outlets, but only minimally.

Logo

Logo is designed with dominant black color in order to make the gym distinct The fitness

center is new and marketing plan will start as to launch a brand new product in the market.

First of all a web designer will be hired to design a website for gym.

Person to Person advertisement

Brushers and written content about startup will be distributed to people around locality

initially to make people know about gym. This will develop a person to person awareness

about gym.
Website

The website includes all details regarding gym at www.modern.gymkhana.com.

It includes all information from tools and equipment to getting membership online and know

details about staff and training.

Social Media

Social networking sites such as facebook, Instagram, Youtube, LinkedIn and Google Display

Network will be used for advertising. Paid content for advertising will be given to popular

channels and relevant sites.

TV Ads

After the business will grow to a good effect, the advertisement will also carried out on

through TV ads and commercials via local cable operators.

 6. Operational Plan

We have clearly defined our target markets and have differentiated ourselves by offering a
unique solution to our customers' needs. The primary focus of our marketing strategy must be to
attract customers and make business profitable quickly.

Modern Gymkhana services’ strategy is based on raising worker productivity and lowering
overall costs for businesses. The most logical way to approach these factors is through a healthy
work force. Companies that implement wellness programs with Corporate Fitness will be
encouraged to look at the "big picture" regarding the effects of its wellness programs. Thus, one
marketing goal is to persuade more traditionally managed companies that wellness can work for
them.

By tailoring services and developing customized programs for companies and individual
employees, Corporate Fitness will develop a reputation for quality and customer service.

Competitive Edge

The competitive edges we have are summarized as follows.

 Cost: The price of our services is less than the existing fitness clubs.

 Latest tools and equipment: We offer tools and equipment which are responsive to current
customer trends.

 Electricity Generation Mechanism: We have designed a mechanism through which the

mechanical energy for example from pedaling and running machines will be converted into
electrical energy. This energy will be sufficient to recharge mobile phones and other devices
inside the gym premises.
 7. Management and Organization

Management

Company Organization

Modern Gymkhana Services will establish an agile organization that recognizes the need for

smooth flow of ideas and implementation between sales, marketing and customer service.

Management Structure and Style

The management structure at Modern Gymkhana Services will be uniquely formulated to establish

long term growth and sustainability. The day to day operations of Modern Gymkhana Services

will be managed by operational manager.

Organizational Chart

The organization will be structured very lean, with most of the functional job activities being

assumed by a limited number of staff members and outsourced where needed. As a startup

organization, overhead costs will be kept to a minimum while allocating most of the financial

resources in the areas of operations, sales and marketing.

The sales and marketing functions will be performed by a “Sales Administrator” who will be

responsible for increasing memberships and other sales functions.

The day to day office and administration functions will be conducted by an “Office Administrator”

with a number of responsibilities and a number of office duties including; greeting clients,

answering telephone calls, customer database management, ordering office supplies, accounting,

payroll etc.
 8. Financial Plan

Start-up Funds

Modern Gymkhana Services will require Rs. 20,00,000 for the necessary expenses needed to

launch the business, according to the plan outlined. Such expenses will include the preparation of

the facility, promotional marketing, equipment, one year full rent, and various miscellaneous

expenses.

The sources of the fund required will include a long-term loan or grant, as well as a personal loan

of Rs. 500,000 from the co-owner Mr. M Salman.

Facility Fit Up Rs. 400,000

Marketing Setup Rs. 700,000

Brochures and Collateral Rs. 100,000

Rent Rs. 500,000

Special floor Rs. 100,000

Miscellaneous Rs. 200,000

Total Start-up expenses Rs. 20,00,000

Assumptions

 Increasing the client base by 100 members within the first year of operation and increasing

total membership base by 500 members within 5 years.

 Receiving the required financial start-funds from a commercial loan/grant and private

investors.