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Gym Application Analysis

Paper type: Analysis
Pages: 13 (3068 words)
Downloads: 10
Views: 400

Ideation of any business establishing is the key point for success. Our idea came from health and environmental point of view. To be more clarified that in fact:

From health POV:

The obesity worldwide has been increased by an approximate factor of 3 from 1975s.

41 million children less than 5 years age were obese during 2014s.

Around 340 million people aged between 5 to 19 were overweight in 2016s.

Obesity is preventable.

From environmental POV:

Transport is responsible for nearly 30% of the EU’s total CO2 emissions, of which 72% comes from road transportation.

As part of efforts to reduce CO2 emissions, the EU has set a goal of reducing emissions from transport by 60% by 2050 compared to 1990 levels.

Taking all the points above into consideration, it can be observed that there is a need for GYM that serve what people wonder. Moreover, our business has two branches, will have the capability to give customers a technical GYM at his/her location using served truck including high-level instrumentation, and serve established GYM to rent our truck to their own customers.

Besides, using hybrid trucks that may help the environment and human resources. By these methods of serving customers we may can eliminate excuses for not training.



Our aim is to eliminate excuses for the society to hesitate and neglect the health part of the human being

Our vision is to make things simpler by delivering the gym to the customerєs location using a mobile application, so thatєs may negate self-induction to neglect health part of human being. Also, by using a hybrid car we are helping the environment by gradually reducing CO2 emission.


We are totally responsible to provide our customers fully moving GYM with a professional instrumentation that hit every single muscle in the body as well as type of exercise

There are several populations in need indeed to train and do exercises but they donєt know when the right time and places is. For that reason, our mission to take their burden and guide them to the correct path of building and being healthy.

SOWT Analysis


  • This service helps society to stop hesitating their training.
  • The Simplicity of using the moving GYM.
  • Big market as we discussed facts in the executive summery.
  • Since this is the only moving gym, there are few competitors to reach and influence how business cash flow.
  • Planting in society minds the idea of sustainability by green trucks that serve our customers.
  • Saving the human resources because of not using petrol cars.
  • We are the only part will monitor the profit margin.


This company can serve all types of construction projects widely.

Since our clients can pay in installment that gives us the opportunity to be chosen.

This business might be sponsored by the government since it helps in solving actual issues (stated in the summery), so that gives us the opportunity to be famous in real.


Part of people is contracting with GYMs for free because of their work or any other reason, so that may literally shrink our income.

It can be kind of suffer in the beginning of business since it is not will known idea.

Need of big amount in capital.


Line of return is hard and will break the company financially.

It is most likely that other investors and GYMs will steal the idea and doing it apart.

Key Success Factor

The back-bond of businesses success worldwide have a key success factors related to it; our business is relaxed on three essential factors that judge our mission.

First and foremost, meet people needs, this factor might be the most important factor to hit a successful business because all of our income is related to the amount of satisfaction on our work so that can help us to expand the moving gym worldwide and reimburse our expenses with a considerable profit margin.

Second fiddle, advertising, a famous wisdom said  if you have 10$, expend 1$ in the products cost and give 9$ in advertisements, nowadays media is reasonably a useful method for publishing a new business, so the way of social media must be exploited in order to encourage people on the advantages of our work and the simplicity of usage.

Tertiary, built on science, god preferred human being on animals by minds so by making our work built on the fundamentals of science will result on persuading people’s minds on the necessity of our work. In other words, their self will be encouraged to register for our moving GYM because they know that trainings and exercises are officially accredited from the competent authorities in the country.


  • The central objectives of our business are:
  • To build a new generation instituted on athlete thoughts.
  • To minimize the percent of obesity and overweighting.
  • To help environment by decreasing CO2 emission.

Operational Plan:

The aim of putting an Operational Plan is to emphasize strengths and drop weakness, in contrary, exploit opportunities to be a fortunate work. For further clarification, this can be achieved by recognizing business scope for breaking it down into smaller, simpler, and more manageable work packages activities then outlining all the required procedure to hit the objectives contained in the strategic plan.

There is a main office for a purpose of managing the project from all sides needed also there are some parking spots to park the moving GYM  trucks  while we are at non-working hours. Besides, there are 20 rented trucks and drivers for them.

To be more precise, there are two types of membership. First type is that customers should reserve the truck for a specific period and days weekly so that the moving GYM cannot be used during the reservation. In contrast for second type, the customer has the flexibility for time reservation so that he should reserve only before a time equal to the duration for his/her location.

In addition, there will be an application that serve customers as you can seen in the application prototype. Also, we will have an official page on Facebook, Instagram and YouTube, so Facebook and Instagram can be used for recording customers feedback while YouTube is recording type instruments and facilities we provide.


The moving GYM business is divided into 4 organizations:

Our capable team contains:

Qualifications of CEO. Mohammed Sadek:

  • Graduated from university of Sharjah 2019s with a Bachler degree of science in civil and environmental engineering excellent with honor.
  • Had an experience in Ground + 1 floor villa by scheduling the project from the starting until end point under supervisor Dr. Saleh Abu Dabous.
  • Took 2 months course in the fundamentals of innovation and entrepreneurship.
  • Has the leadership spirit that influence the success of the moving GYM business.

Qualifications of CEO. Mohamed Alhalabi:

  • Graduated from university of Sharjah 2019s with a Bachler degree of science in civil and environmental engineering excellent with honor.
  • Had professional expertise in estimating cost and how to embed the profit and contingency margin.
  • Had an experience in Ground + 1 floor villa by taking part of analysis concerning cost estimating under supervisor Dr. Saleh Abu Dabous.
  • Has the capabilities in mathematics and accountancy.

Qualifications of CMO. MHD Aous Alsarayji:

  • Graduated from University of Sharjah 2019s with a Bachler degree of science in business administration excellent with honor.
  • Has the communication skills to be used in our business by convincing customers.
  • Knows how to promote a business or to put it on market in a successful way of integrity.
  • Took 4 months course to learn how to market businesses.

Qualifications of COO. Ahmed Raed:

  • Graduated from university of Sharjah 2019s with a Bachler degree of science in Business admenstration excellent with honors CGPA= 4.0.
  • Had an internship as university compulsiveness in operating real projects on ground.
  • Knows how to communicate with the team members.
  • Has the capabilities to manage doing work and duties in field

With accurate time of schedules.


Basically, our business The moving GYM is built on a type of partnership. To be more specific, 20% of the profit will executed for the reimbursement of loan and 80% will be divided the main four members: Mohammed Sadek with 30%, Ahmed Raed 10%, Mohamed Alhalabi 20%, and MHD Aous Alsarayji 20%. So, by this segmentation we are all participants in the profit and loss. After all, ADIB and parents loan is finished, the profit division is: Mohammed Sadek with 35%, Ahmed Raed 15%, Mohamed Alhalabi 25%, MHD Aous Alsarayji 25%.


Source of budget

The amount of money needed for such a new business is relatively large, so to cover this need we decided to have the total amount of budget needed divided into two equal divisions, one is to be a help from our parents, so each one of us will get a loan from his father, and the second part of the money is to be a loan from ADIB (Abu Dhabi Islamic Bank).

We tried not to loan the whole amount so we reduce the amount being loaned from a stranger party, because if anything happened to us, our parents can tolerate, but the bank does not!.

Initial Expenses

  • Source of Expense Expense (AED)
  • Equipment for 20 Trucks 160,000
  • Office-Rental first payment 100,000
  • Office Furniture 5,000
  • Company License 3,000
  • Total 268,000
  • Monthly Expenses
  • Source of Expense Expense (AED/Month)
  • 20 Trucks Rental 10,000
  • 20 Truck Drivers 30,000
  • Trucks Maintenance 2,000
  • Gasoline for 20 Trucks 15,000
  • Office Monthly Rental 6,000
  • Monthly Bills (Elec.&Water) 2,000
  • Personal Trainer (5) 10,000
  • Marketing (Advertisement) 5,000
  • Total 80,000
  • Decision due to Cost Estimate
  • The Total Budget needed to start this business is 358,000 AED.


  • 250,000 AED to be a debt from our parents
  • 250,000 AED to be loaned from ADIB (Abu Dhabi Islamic Bank).
  • More Than needed to cover starting losses.
  • Detailed Monthly Expenses Estimate
  • Those are detailed expense estimation, that shows the cost per unit for each resource, in the above table it was calculated as the total, here we illustrate each resource unit cost.
  • Resource or Employee Cost or Salary/Month
  • Truck Rental 500 AED
  • Truck Driver 1500 AED
  • Truck Maintenance 100 AED
  • Gasoline for one Truck 750 AED
  • Office Rental 6000 AED
  • Monthly Bills 2000 AED
  • Personal Trainer 2000 AED
  • Marketing 5000 AED
  • Expected No. of Memberships (Sales).
  • After hard work of estimation and surveys we now have a clue about the No. of memberships we will be offering each month for the very first year of this project.

Month Regular Membership Golden Membership

  • August/2019 30 20
  • September/2019 40 20
  • October/2019 50 30
  • November/2019 60 30
  • December/2019 80 40
  • January/2020 100 50
  • February/2020 100 50
  • March/2020 100 50
  • April/2020 100 50
  • May/2020 120 50
  • June/2020 120 50
  • July/2020 140 60

Monthly Income From Memberships

  • After the estimation of the first year Memberships we can now estimate our revenue and then calculate the net Profit.
  • Knowing that the Membership prices is as following:
  • 400 AED/Month for Regular Membership
  • 650 AED/Month for Golden Membership

Month Regular Membership Income Golden Membership Income Total Income

  • August/2019 30 12000 20 13000 25000
  • September/2019 40 16000 20 13000 29000
  • October/2019 50 20000 30 19500 39500
  • November/2019 60 24000 30 19500 43500
  • December/2019 80 32000 40 26000 58000
  • January/2020 100 40000 50 32500 72500
  • February/2020 100 40000 50 32500 72500
  • March/2020 100 40000 50 32500 72500
  • April/2020 100 40000 50 32500 72500
  • May/2020 120 48000 50 32500 80500
  • June/2020 120 48000 50 32500 80500
  • July/2020 140 56000 60 39000 95000

Monthly Income From leasing other GYMs

We have an idea which is not to depend only on memberships that are assigned to our GYM, but also we are planning to lease different GYMs our trucks so we provide them with ready and facilitated trucks, and they provide this service to their own clients, by this we increase out income.

Max. trucks to be leased is 8, so we can provide the service to our own members using the remaining trucks. Moreover, the cost of leasing one truck per month is 5,000 AED/Month

Month Expected No. of leased Trucks Income

  • August/2019 1 5000
  • September/2019 1 5000
  • October/2019 3 15000
  • November/2019 3 15000
  • December/2019 3 15000
  • January/2020 4 20000
  • February/2020 5 25000
  • March/2020 5 25000
  • April/2020 5 25000
  • May/2020 6 30000
  • June/2020 6 30000
  • July/2020 6 30000
  • Income Bar-Chart
  • Profit Calculation

Month Expense Income Profit

  • August/2019 80000 30000 -50000
  • September/2019 80000 34000 -46000
  • October/2019 80000 54500 -25500
  • November/2019 80000 58500 -21500
  • December/2019 80000 73000 -7000
  • January/2020 80000 92500 12500
  • February/2020 80000 97500 17500
  • March/2020 80000 97500 17500
  • April/2020 80000 97500 17500
  • May/2020 80000 110500 30500
  • June/2020 80000 110500 30500
  • July/2020 80000 125000 45000

Profit Bar-Chart

As illustrated in this bar chart, the first 5 months we will experience some losses instead of getting profit, and this is okay in a new business.

We will reach our breakeven cash flow approximately in the 5th to 6th month as observed from the chart above, and at the month after we will start making money out of our new business as expected.

The noticeably high profit will begin at the 10th month after starting this enterprise.

No doubt that we hate to lose money, but as observed from the chart we will cover up all the losses in the 2nd year, because we are estimating a successful ending of the current year, so this will reflect on having high profit in the year after.

Equipment List

Equipment Purchase Price

  • 4,000 AED
  • 400 AED
  • 100 AED

Equipment Purchase Price

  • 80 AED
  • 800 AED
  • 3000 AED

Company Market share

No Shares will be given to investors, only us will be the owner of this enterprise, because we would love to make money only to our self, and also, it’s more comfortable to deal with each other when all owners are friends rather than strangers.

So, all the business Market Share will be distributed only between us

(4 Members) as discussed earlier in this plan.

Contingency Plan

There’s no situation in the business world that you find an enterprise that has no risks at all, whenever any business man/woman take the first step in developing a new business, tens of risks show up, those risks can really kill the business at its early beginning.

Successful business planners take into consideration all risks that their new business might face, they do analysis and research to find out each risk and then take caution of it.

By developing the ‘Contingency Plan’ each risk will be discussed, and a solution shall be offered.

Business didn’t impress people

What if after opening the business and start marketing it, the targeted clients refused the idea?

It can happen, and in such a case a very quick reaction must be taken, such as closing the business immediately to avoid losing our capital.

This solution looks like a negative reaction to a problem, but in business this is the right decision to take, after doing the right job in marketing and people don’t like the idea, they will never like it, so we are not going to fight in case of people refuse.

Loses extended for more time than expected

In such a case we will study the losses behavior, in other meaning we will look after the changes in losses, so for example if the losses extended for more time that we expect, but it’s decreasing incrementally, we will fight till we start making a positive cash flow.

The big losses due to this situation can be covered by a small loan from any bank.

Traffic Jam which leads to late arrival to our clients

Our business depends strongly about the traffic situation in the streets, we are expecting that in specific period of the year the traffic will be congested due to holiday or whatever.

To account for this issue, whenever we realize that our truck are being late to the clients due to traffic jam, we will do a change on the departure time of the truck, so if the truck at normal situation departs 20 min before the appointment, in case of traffic jam the truck will depart 30 min (or more) earlier, depends on the traffic condition.

Equipment Failure

It’s very expected that on any occasion, the GYM equipment in any truck may be damaged and fail due to any cause while the client is actually having his/her workout session, in such a case we will have a second driver to deliver a new equipment from any other truck to the location of the damaged one, and then the damaged equipment will be taken to the maintenance shop to be repaired, but we are planning to never consider a client to urgently end his workout session due to any damage in the equipment, so a very fast reaction to be taken.

Demand Increase

Sometimes a business in its very beginning, it succeeds more than expected, so it could happen that we will have more demand than we are expecting for the first year, in this case we are going to consider increasing the no. of trucks we have.

At the beginning we are having 20 trucks, this number can be increased up to no limit in the case of demand increase, and this is what are looking up to.

Parking Issue

Our idea depends fundamentally on the parking lots available at the location of the client, so what if one time we couldn’t find any parking lot at the location of the customer?

Our main plan to avoid having the client upset and frustrated is to give him the option to either get a refund equal to the weight of this day that he/she will miss working out on, or to be patient and move with us in same truck to a nearby location where we can find a place to park the truck.

Application shutdown

We are assuming that one day we will face a shutdown in our app, so to deal with this situation we are planning to post this problem as a status on all our social media accounts and we will ask the clients to contact us by phone calls and to avoid using the application for this day, and the app problem will be solved as fast as we can.

Personal Trainer is absent

Our GYM provides the clients with a personal trainer if they ask for, if such a personal trainer is absent, another one will fit his place and will get extra funds of doing this.

Cite this essay

Gym Application Analysis. (2019, Nov 27). Retrieved from https://studymoose.com/gym-application-analysis-essay

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