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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:
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.
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“ She followed all my directions. It was really easy to contact her and respond very fast as well. ”
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.
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.
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 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:
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%.
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!.
So,
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
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.
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.
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.
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.
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.
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.
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.
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.
Gym Application Analysis. (2019, Nov 27). Retrieved from https://studymoose.com/gym-application-analysis-essay
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