Business plan

Businessplan

Themain aim of this paper is to present a plan of a business that dealwith fitness equipment. The business will be involved in involved inserving the local communities. The company operates in area where Istay, but I will make plans of expanding the business to otherdifferent locations in the future. The company will be dealingexclusively with fitness equipment. Through the sale of fitnessequipment, the company will be able to promote long-term change inlifestyle for the people. Since the company will offer uniqueequipment, it will generate high growth and high revenue. In thiscase, I believe that with a US$100,000 loan, the company will gainhigh market share in the nation. To achieve high competitiveadvantages in the market, the company will provide high quality andpremium fitness equipment, which are not available in the market. Inaddition, the company will also address the issues of features,value, pricing, and affordability.

Descriptionof the business

Thecompany needs a US$75,000 loan to buy the relevant equipment in orderto provide wellbeing people in the society. In this case, the companywill provide high quality and affordable equipment in order toenhance long-term health promotion and exercise related activitiesthat are aimed at providing positive lifestyle changes (Colakoglu &ampCaligiuri, 2008). Through this loan, the company will have afinancial growth and an exciting chance to engage in this investmentopportunity. Therefore, expansion and further development of thebusiness will be possible in order to meet the rising demand offitness equipment in the nation. I decided to engage in this businesssince I have a passion of doing exercises. I have a great passion ofvisiting businesses that provide fitness services in order to enhancemy wellbeing. In this case, I would like to extend my passion toother people in order to change their lifestyle. Therefore, the mainmission and vision of this business is to enhance the wellbeing ofpeople. Through this report, it is apparent that the business willprovide fitness professionals and the public with advanced andquality fitness equipment. In addition, the company will achieve itssuccess through providing value to customers with high quality andinnovative fitness products. Since the company will focus onexpanding to other locations, the business will have high marketshare.

Product,service, and general staffing plan

Thisbusiness is anticipated as fitness equipment facilities that intendto provide specialized and high quality equipment to its customers.The company will have a liability that aims at providing customerswith a state of art fitness, thus, satisfying the desires and needsof every member. In addition, the company will offer universalequipment with features that ensure high quality workout to thecustomers at an affordable price. The US$75,000 loan will play agreat role in improving various sections of the business in order toincrease it competitive advantages. In this case, the company willimprove its structures and marketing structures that will help inboosting its operations (Abrahamson&amp Fairchild, 2009).

Theamount will also be used in hiring high quality professional in orderto enhance effective running of the business.Aneffective team will be provided in order to achieve the objectivesand goals of the business. In addition, an effective team will ensurecustomers are provided with the best services. In this case, a teamwill be used to develop the new system of the business in order toensure customers are served in the right manner. This will also helpin the effective running of the business making it attain itssuccess. Therefore, a fewshift supervisors, about 25 fitness professionals, and 5 IT staffwill be required in the business.

Hierarchicallevels will be well structured to ensure every team of workers hasits defined roles and duties. The supervisors will have the role ofoverseeing all the activities taking place in the company. They willbe involved in observing how customers are served in the company. Onthe other hand, the fitness professional will have the role ofproviding instructions to the customers. This is mainly on the usageof fitness equipment in order to facilitate their wellbeing. Inaddition, the It staff will be involved in advertising the businessthrough the internet (Wenger&amp Snyder, 2009).They will also be involved in serving customers through the internetmarketing platform. The teams will work together towards enhancinggrowth and success of the business.

Formof your business

Thebusiness will be commercial and aims at improving the welfare ofpeople and making profit. In this case, it will employ strategiesthat provide competitive advantages in the market against otherrivals. The company will make deals with various manufactures offitness equipment to supply them with facilities at a constant flow.This will allow the company to maintain high profit despite thedynamics of the market. It will also allow the company to stay aheadof stiff competition arising in the market (Johnson, 2007). Toenhance effective supply management, the company will make a hugeinvestment that will allow it to offer quality fitness services. Inaddition, the company also intends to expand its ventures into otherlocations in the nation. In this case, the company will have highprofit margin since it will reach a vast number of customers.

Achart of accounts

Expenditure

Projected

Revenue

Budget Item

Amount

Total

Item

Total

Human resource

Products

$150,000

15 fitness professionals

$800/month

$12,000

Services

$120,000

2 supervisors

$1,000

$2,000

5IT supervisors

$900

$4,500

Total expenses

$18,500

Direct expenses

Purchase of fitness equipment

$35,000

Purchase of computers

$10,000

Other stationaries

$500

Total direct expenses

$50,000

Marketing cost

$2,000

Transport cost

$1,000

Advertisement

$3,000

Total expenditure

$74,500

Total revenue

$270,000

Projected Profit

$195,500

RequiredAccounting methods

Therequired accounting method in this business will be the GenerallyAccepted Accounting Principles (GAAP). This method will be requiredsince it has an implicitknowledge will be employed as knowledge management system. This isthe knowledge that is set out in an intangible form but can beconverted into tangible. Information such as the number of customers,equipment, and services offered will be stored in the knowledgemanagement system. This information is essential to the businesssince it help in supporting capture, creation, and dissemination ofinformation. In addition, the information helps in promoting anintegrated approach of retrieving, evaluating, and sharinginformation assets of the enterprise. These assets will includedocuments, databases, procedures, and policies governing thebusiness. It is also apparent that knowledge management will enabledata and information of the business available to members of thebusiness and customers (Moss,Newman &amp DeSanto, 2005).This is mainly through the portals that are user friendly andspontaneous.

Thisbusiness requires GenerallyAccepted Accounting Principles (GAAP) inorder to ensure customer services are executed effectively. Thesesystems can be integrated through content management, which allow allsystems to remain useful. In this case, all the systems need to bekept relevant through revising, updating, organization, andfiltering. Adoption of this accounting method will help in enhancingcollaboration of systems in this business. In addition, managementwill champion the systems in all levels in order to facilitateintegration.

Apro forma balance sheet and income statement

FINANCIAL ANALYSIS

Projected Revenues and Profits

First Fiscal Year Begins April 2014

Month

Year 2014/2015

July

Aug

Sept

Oct

Nov

Dec

Artic Supreme sold

75000

76875

78797

80767

82786

84856

Unit Price $

15.5

15.5

15.5

15.5

15.5

15.5

Total Revenue (TR) $

1162500

1191562.5

1221353.5

1251888.5

1283183

1315268

Costs

Fixed Costs

75,000

75,000

75,000

75,000

75,000

75,000

variable Costs

35%

Total Costs

75,000

75,000

75,000

75,000

75,000

75,000

Break Even

NPV Analysis

ROI

20%

TR yr 2014/2015

16037323

TC yr 2014/2015

4,364,049

PV calculator (1+0.2)^-1

1

PVTR

13364435.3

PVTC

3636707.042

NPV

9727728.257

Twospecific internal controls of protecting company’s assets andresources

Variousexternal controls need to be implemented in order to protect theassets and resources of the company. One of the major internalcontrols is through having a trustworthy ITmanager. This will allow them to create an environment in whichemployees are encouraged to take chances. In this case, they willencourage their employees to take risks. It is also apparent that ITmanagers should help their employees in defining boundaries in thebest way in case a failure happens.

Anotherinternal control approach of protecting assets and resources isthrough having strategic thinkers in the management staff. This isessential in managing the information system of the business. Themanagement needs to see things in a bigger picture in order toenhance success of the business. This can be enhanced through makingtimely and quality decisions that allow the business to gain highcompetitive advantages in the market compared to other rivalcompanies.

Internalcontrol recommendations

Basedon the external control identified, I would implement strongmarketing campaign in my business environment. To create a strongmarketing campaign for the business, social networks will be used.These include social blogs, internet forums, and social sites. Thebusiness will open websites in order to be used in marketing. Here,the business will bring to light its new and innovative fitnessequipment (Fue &amp Huang, 2009). This will allow people to knowthat they can get information and order equipment through thewebsite. Advertising using this method will give the business a realtime feedback from customers. In this case, the business will knowtheir customers perception on their equipment and services. In thiscase, the business will know what improvements they can do to satisfycustomers in a better way. This method is also ideal to the businesssince it will target a wider market (Johnson, 2007). The businessenvironment will be enhanced through complying with Sarbanes-OxleyAct (SOX) in 2002 in order to create ethical and moral environment ofoperations. In this case, the company will comply with indirect anddirect cost required by the act. This will allow the business to runin an effective manner.

References

Abrahamson,E. &amp Fairchild, G. (2009). Management fashion: lifecycles,triggers, and collective learning processes. AdministrativeScience Quarterly,44, 708-740.

Bratu,S., Georgescu, M., Ghencea, F. L., &amp Voicu, A. (2011). TheImportance of Creativity in Advertising, Digital Technology, andSocial Networking. Economics,Management &amp Financial Markets, 6(2), 449-458.

Colakoglu,S., &amp Caligiuri, P. (2008). Cultural distance, expatriatestaffing and subsidiary performance: The case of US subsidiaries ofmultinational corporations. The InternationalJournal of Human Resource Management, 19(2), 223-239.

Johnson,D. I. (2007). Politeness Theory and Conversational Refusals:Associations between Various Types of Face Threat and PerceivedCompetence. WesternJournal of Communication, 71(3), 196–215.

Moss,D., Newman, A., &amp DeSanto, B. (2005). What do CommunicationManagers do? defining and refining the Core Elementsof Management andpublic Relations/Corporate Communication Context. Journalismand Mass Communication Quarterly, 82(4), 873-890.

Wenger,Etienne C. &amp Snyder, W. M. (2009). Communities of practice: Theorganizational frontier. Harvard Business Review, 78(1), 139-145.