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Workout Gym Business Plan

Furthermore, the business plan aims at determining whether the fitness and crossfit services provided by the GYM would be enough for generating profit. The belief in the existence of the promising market in the university is based mainly on the saturation of the local fitness center, which makes students wait in long queues for their turn to use the facilities and equipment. In developing the business plan, certain business concepts, such as Porter's five forces analysis, for example, were used with the view to defining the competitive forces in the market. Meanwhile, the SWOT analysis was employed for determining the strengths, weaknesses, and opportunities of both the business at hand and its competitors. The cost of starting a GYM business has been estimated to be 7 million AED, which is to be raised by taking bank loans and investing personal savings.

Social and technological changes have contributed to the reduction in doing exercise as a part of the day-to-day activities (Karp, 2011). The modern culture has shifted from the intense physical work to spending the whole day in the office. The aspect has caused the development of a popular trend. Today, most people, including office workers students, among others, look for various alternatives such as attending crossfit lessons or fitness centers for training. An increase in the health consciousness and awareness of the benefits that are brought by leading a healthy lifestyle has increased the demand for more exercise options in the society. The central question that the business plan at hand comprehensively answers is whether there is a market for running a GYM or fitness business in the UAE educational institution and the projection on the country, as a whole. In order to answer the major question, various sub-questions were developed: business opportunities that the size of the market demand offers, evaluation of the SWOT and Porter's five forces analyses, and a detailed consideration of the market environment. Other aspects include the startup cost and the estimated return for the business after a given period of operation. The business plan will further be used to apply for funding from various financial institution and investors within the United Arab Emirates with the view to raising a part of the capital that is required for establishing a GYM at the American University in the Emirates.


Objectives of the Business Plan

The primary objective of this business plan is to conduct both a market and cost analysis in order to demonstrate comprehensively whether there is a good market that can support a fitness center in the United Arab Emirates educational institution and the country, in general. The objective is also to use the business plan further when applying for funding from various financial institutions within the UAE such as the Global Investment House DIFC Limited, Standard Chartered Bank, and Abu Dhabi Islamic Bank. On the same note, Armstrong Gym could use the same business plan to seek support from the UAE government since the company would immediately engage in the competition with various local fitness clubs that are mostly financed by grants provided by the UAE municipal. Therefore, the business plan comprises the core business functions that cover such broad areas as marketing, general operations, and financial planning.

Business Overview

Business Name

The proposed name for the business to be established is ARMSTRONG GYM CENTER. The main reason for choosing the name is because usually, the students' main aim of attending a gym is to have strong arms with huge biceps. Therefore, the business decided to launch a brand that emphasizes the desire of students, who are supposed to form the majority of its customers.

Business Location

The primary factor influencing the location of the business is visibility and good accessibility for customers, as well as the cost of establishing the business and renting in the desired area. According to Cohen (2000), a business that is situated in a good location will create a constant reminder for the target clientele about its presence. Thus, it will be an effective advertisement tool. The planned location for the business is the American University in the Emirates.

Mission and Vision

Armstrong GYM as a business will have its well-developed mission and vision.

Vision. The main mission of the GYM business is to create a general awareness of the importance and benefits of leading a healthy lifestyle be engaging in body fitness programs.

Mission. The main mission of the business is to provide strategies and various training programs that would enhance the healthy lifestyle in the society.

The Business Idea

Armstrong GYM will satisfy the need of students who are yearning for a new spacious and better fitness center from various institutions of the higher learning in the UAE. The main idea Armstrong GYM is combining some features of fitness and crossfit training. In such a manner, the company strives to take the best out of two and offer its clients a unique service. The fitness center will be fully equipped and will be able to serve 60 students at the same time. Crossfit instructors will be working at the GYM in order to offer help and advice to all customers and the starters, in particular. The crossfit center will be fairly equipped with the view to serving at least ten students at once since it is still in its experimental stage. There will be a minimum of one instructor to coach those interested in the classes.

Fundamental Objectives of Armstrong GYM

Armstrong GYM's policy is to hire employees that are qualified and are able to create a high customer value. At the same time, they are to be willing to use any opportunity to increase their knowledge. The other policy is to provide a facility that is spacious and possesses quality equipment that is required to meet high demands of students and other clients, create customer value by the provision of quality services, and build a strong brand name in the market. Finally, it aims at ensuring the uniqueness through combining fitness with crossfit centers.

Uniqueness of Armstrong GYM

The following factors will contribute to the uniqueness of Armstrong GYM in the market. They include combining fitness and crossfit centers in a single GYM, provision of monthly subscription cards for members, and personalized customer guidance on various exercising plans by highly qualified instructors.

Market Analysis

It is the most important chapter in a business plan since it presents crucial information on how to satisfy business interests. The most important objective of this part is to provide a further explanation of how the company can react to changing market conditions. It is important to note that a good business performance will depend on how the marketing plan is executed in the existing market.

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Market Demand

According to Coobmbs (2001), market demand is a specific number of products that customers need. As mentioned before, a rapid breakthrough in the technology and associated social changes in the past decade have led to people engaging in less exercise. The trend has become popular in the day-to-day life. The global culture has shifted drastically, as well; people that used to get down to the intense physical labor are now sitting and working on a computer. Today, most humans being barely move at all. These issues have created a high demand for alternative exercise possibilities such as fitness and crossfit centers. On the other hand, long study hours of students and the high demands of the education process limit student in time for engaging in any exercise activities. Moreover, they have to waste that little time for attending local fitness centers in long queues while waiting for the ability to use the equipment. A high need to have a fitness training facility as close as possible with the view to meeting student's educational desires has created a great market demand for the establishment of a GYM at the school and in the UAE, in general. The rise in the spread of certain health issues such as obesity and overweight has largely influenced the demand for opening a fitness training facility. According to a report by the Gulf Newspaper, 47% of people in the United Arab Emirates is overweight while 31% of the total populations is obese (Malik & Bakir, 2007).

Fluctuation in Demand

The fitness industry just like many other industries in the market is bound to face the issue of the seasonal market demand. In such a manner, there is a boom in the number of those who enroll in the GYM with the aim of losing the weight that they have gained over the holidays. At this time, many students both male and females are likely to attend the GYM in groups, and new members will join with time. However, in the summer, the demand seems to fall due to the majority of the customer engaging in the outdoor activities such as basketball, football, and bicycling, for example. Another boom comes in September; it is slowly decreasing when students, as well as most people, make off for long holidays until they come back again in January.

Market Opportunities

The fitness industry tends to offer lots of opportunities for both potential and existing investors globally. The market is rapidly growing due to various reasons. Some of these contributing issues include the high number of people that are affected by obesity worldwide, the high number of overweight people and, the high cost of treating related diseases, including heart diseases and cancer, which can be avoided with the help of regular exercising. Many countries have managed to generate huge revenues out of the demand for fitness. Globally, market opportunities within the health and fitness industry have earned such countries as South Africa and the UAE high revenues as compared to other sectors of the economy. The graph below demonstrates the revenue generated out of the opportunities that are offered by the health and fitness industry of different countries in Africa and the Middle East.

Market Trend

Recently, the fitness industry has experienced a change in leading trends. They include an increase in the usage of fitness training equipment by individuals all over the world. In addition, body workout is gaining popularity; it has already become a routine in the UAE. Finally, the fitness membership in the nation has increased with many people enrolling at various fitness training centers.

Market Niche

Armstrong GYM will enter the fitness market to serve students in an institution of higher learning, and that comprise the highest percentage in those involved in the fitness activity. In the early stages of its operation, the business will mainly provide services at low prices with the view to attracting more students and other interested parties before eventually setting the cost up to a competitive rate.

Market Growth Potential

The health and fitness industry in the UAE has a lot of the growth potential in the future. Currently, it is reporting a 15% growth in annual revenues due to the high tourism demand and other leisure projects (mckechnie, Grant, Golawala, & Ganesh, 2006). The market is further projected to reach 60 million members by 2020.The market volume in the UAE, which was approximated to be $17.6 billion in 2015, is expected to reach $31.8 billion in the same year (mckechnie et al., 2006).

The Market Environment

Armstrong GYM employees will have to be aware of the business environment, which is constantly altering. The fitness industry is characterized by ever-changing trends that are shaped by the new technological breakthrough and better understating of the human body. Armstrong GYM staff will be in a position to provide its customers with all available information and exercises they might need. In this respect, employees of the GYM will have to be aware of various existing and emerging trends and have a good ability to adapt to new fitness methods and strategies quickly. The business will be able to manage the changes in the market environment by going to various expos across the UAE and keeping a keen observation of the new fitness routines that seem to become popular, especially with students.

Porter's Five Forces Analysis

Porter's five forces analysis will be used in order to ensure that the issue of the competition is neither underestimated nor defined too narrowly.

The tool gives a comprehensive understanding of various competitive forces and the aspects that shape them. It further reveals current profitability roots of the industry. At the same time, it develops a suitable framework for influencing and anticipating the competition over a given period. Therefore, it will be important to define competitive forces and shape them in the favor of the business while creating the most appropriate strategy.

Threat of new entrants. The possible threat of new entrants will often come up in the case there is a possibility of the business making a profit. However, the fixed cost and the start-up funding are often very high for a GYM. The factors that could have an effect on the income of new entrants include the cost of entering the fitness industry being too high, the requirements in terms of capital, and economies of scale low switching cost for customers, as well as easy access to distributors of the fitness equipment.

Power of Suppliers. In the fitness industry, the power of supplies is deemed to be relatively low. It is so because there exist many suppliers that offer comparable products; therefore, it is hard for a single supplier to increase the prices and for the buyer to switch the brand name easily. The fitness industry does not depend much on suppliers since a single big order for equipment is often made at the beginning. The supplier that offers the best equipment in terms of quality and price gets the rest. Other factors that Armstrong GYM Center will consider include the aspect that there are similar quality products in the market, and it is easy and cheap to choose another product at any time. Moreover, there exist much fitness equipment around the country, and it is very easy to substitute a product with another one.

Power of Buyers. In the fitness industry, the power of buyers is an aspect that cannot be underestimated. The issue is crucial because the industry has many small buyers but still they can cause considerable dissatisfaction, which is difficult to be handled. Once a customer enrolls, Armstrong GYM will strive to create the customer satisfaction by the use of the value chain.

Availability of substitutes. It is important to note that the health industry in the UAE does not depend on crossfit and fitness centers. There are many other substitutes for the services that Armstrong GYM will offer to its customers. The business will be aware that various substitute activities exist at the American University in the Emirates such as football and basketball teams that students can choose to join as a part of their exercising.

Competitive rivalry. Competitive rivalry is vital for creating a competitive environment for the business and encouraging a company to work better in terms of customer satisfaction (Fleisher & Bensoussan, 2003). There is a low competitive rivalry in the fitness industry, but there exist some local fitness centers such as SMART Fitness Training Centre, which still engage a certain part of the student's population. Other factors that Armstrong GYM will have to consider in terms of the competitive include low switching cost and few competitors.

SWOT Analysis

SWOT analysis mostly analyzes the external and internal environment of a given business in order to define its strength, weaknesses, opportunities, and threats (Valentin, 2001). Therefore, when selecting a business strategy, a business should strive to take advantage of own strengths and opportunities while trying to minimize the weaknesses and threats. Armstrong GYM has various strengths and opportunities; at the same time, it will face certain threats and has its weakness.

Table 1

SWOT Analysis

Strength Weakness
Combining crossfit and fitness centers Lack of proper knowledge about the market demand
Suitable location at the University Financial uncertainty
Quality services Little coverage area
Modern technological equipment High cost of such equipment
Opportunities Threats
Summer services to non-students Seasonal demand
Expansion with the increase in demand High capital investment
Funding from the government New entrants
Formation of a working cooperation with other fitness centers Threats of substitute goods

Competitor's Advantage and Analysis

Every business needs competition in order to stay healthy as it provides the entity with the necessary challenge to perform better (Brandts, Riedl, & Winden, 2009). The competition makes companies follow the obligation to perform to their best in providing customer satisfaction through the provision of excellent services and quality products (Fleisher & Bensoussan, 2003). According to Kotler (2008), the aspect of gaining a competitive advantage requires a business to allocate more value and satisfaction to its targets than its customers.

Direct Competition

Direct competition will mainly come from SMART Fitness Training Centre and ORIGINAL Fitness Center. However, the last only serves a small family niche and cannot be considered a serious direct threat. It, however, possess one strength of having a strong client base since it is mainly preferred by corporate families who choose private facilities that are not overcrowded.

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SMART Fitness Training Centre runs almost all sports-related activities in the area. Therefore, it can be termed as the present market leader. The company runs two fitness centers that are well situated near the university. The center is well equipped with such utilities as an indoor football field, basketball court, hot tub, swimming pool, and a gym. The company requires clients to purchase membership cards to access the gym and swimming pool. The SWOT analysis for SMART Fitness Training Centre indicates its strengths, weaknesses, opportunities, and threats.

Table 2

SWOT Analysis

Strengths Weaknesses
Market leader Facility saturation/overload
Government grants Employees with low customer handling skills
Strong market position -
Opportunities Threats
Easily adapt to new sports trends New entrants
Can easily expand Substitute products

Indirect Competition

Any sports activity, in which a student engages as a form of exercising in the American University of the Emirates, will be considered an indirect competition. Such activities include basketball, football, and badminton.

Advantages of Armstrong GYM

The main advantage of the business is the ability to be fully located in one facility and to customize its target market needs. Crossfit courses are projected to increase due to the rising popularity of the activity in the United Arab Emirates. Moreover, they are likely to meet the expectations of more students than those received at boot camps. The combination of the crossfit and fitness centers will further provide a sense of uniqueness. On the other hand, the business will introduce the practice of offering customer monthly, quarterly, and annual subscription. Such an option is not available in other fitness centers across the UAE. Armstrong GYM will also provide a free-of-charge startup program to its customers and an instructor to guide them on how to use equipment located in the facility.

Marketing Strategy

With the help of planning, the business can predict some issues and develop quick reactions towards any abrupt changes in the marketplace. According to Kotler (2008), a company that fails to plan is planning to fail.

Objectives and Issues

The primary objective and target of Armstrong GYM is its market segment. The market segment will mainly be reached through the use of the social media, advertisement at the university notice boards, and publications at local restaurants and on the Internet. A comprehensive market research will be conducted before the GYM goes into the business since in most cases, effective management is all about adopting decisions, which are of high risks and full of uncertainty. In such a manner, conducting a market research will help minimize the risk and uncertainties that the business will face to a certain degree. The market research will be neither complicated nor expensive and would be conducted in the form of a questionnaire. The questionnaire will be randomly passed to the target consumers via emails or brochures, which will be placed at a convenient location, from which students will be able to pick them up, fill in, and submit. With the help of the market research, it then will be easy to determine the exact needs and expectations of both students and other customers that are likely to come to the GYM, as well as possible market opportunities. Furthermore, the business will conduct another market research once the GYM is open and running with the view to establishing any improvements that the clients might desire in terms of the services provided. Moreover, it will allow determining whether the business can effectively handle changes in the customer demand.

Fitness Center Market Objectives

Even though the market objective is overtaking the sales percentages, which are possessed by its main competitor, SMART Fitness Training Centre, it does not imply that Armstrong GYM will focus only on stealing customers, mainly students, from the rival. Contrary, the GYM will also try to develop other aspects that will attract customers. For example, the company will target members of the local community in a bad physical shape. Moreover, it will encourage people to attend the GYM as a part of the business-to-business marketing.

Objective for the first year of operation. Armstrong GYM will strive to cut SMART Fitness Training Centre market share by 8% by the end of its first year of operation.

Objective for the second and third years of operation. Armstrong GYM fitness center will strive to increase its market share to 12% of that of SMART Fitness Training Centre during the second year of its operation and reach 15% of SMART Fitness Training Centre's total sales in 2017.

Objective for the fourth and fifth years of operation. At the end of the five-year plan of Armstrong GYM fitness center, the main target objective is to reach 19% of SMART Fitness Training Centre's sales in 2016.The trend follows a 15% market share cut during the third year of operation, a 17.5% market share during the fourth year, and the subsequent 19% cut of the competitors market share during the fifth year.

Crossfit Center Market Objectives

Since SMART Fitness Training Centre does not offer crossfit training services, most of the approximation from the conducted market research will be made based on the share of the maximum practitioners.

Objective of the first year of operation. Armstrong GYM crossfit market objective for the first year of operation will be to have 13% of its maximum practitioners. From a comprehensive market research, it is already estimated that single charges for joining the courses are at 7% of the maximum practitioners. The given estimation, therefore, indicates that at least 65% of students, who will attend crossfit courses at Armstrong GYM, will join the introductory stages of the course.

Objectives for the second and third years of operation. The crossfit center section of Armstrong GYM will strive to increase its sales to 14% of its maximum practitioners during the second year of operation and 18% during the third year of operation. Estimations made on the single sold ticket have been approximated to increase from 7% to 11% during the second year of operation and from 11% to 14% during the third year of operation.

Objectives for the fourth and fifth years of operation. The objective of Armstrong GYM at the end of its five-year plan is to acquire 20% of its maximum practitioners.


The objective of this aspect is to appeal the business to as many people as possible. In the reality of dividing the fitness market into various segments, it is more efficient for a business to customize its marketing strategy towards the chosen segments. In the first instance, Armstrong GYM will give a discount on membership cards to students, who attend the GYM. Moreover, the discount will be much higher rate than that of SMART Fitness Training Centre. Thus, university students will be the main segment of the market since they are the main customer target for the business at hand. The second segment will comprise the locals, who will mainly be encouraged during summers to either attend the GYM for their physical fitness or enroll their children. At the same time, Armstrong GYM will target students, who are in a bad physical shape but either does not know how to handle their situation or need guidance on how to start their fitness program.


Armstrong gyms marketing strategy will mainly be customer-driven, and the main focus will be delivering the better value to its customer than that of its competitors. The company will further provide and offer its clients a more spacious facility with the quality equipment at a moderate price. The instructor responsible for crossfit will assist every customer who wants to enroll for crossfit courses by developing exclusive exercise programs for them. The marketing strategy will mainly be implemented by utilizing advertisement, as well as engaging in business-to-business marketing and different public relation programs.

Public Relations

The strategy of using public relations often has an upper edge of causing a strong influence in terms of shaping the public awareness at a cost, which is much lower than the advertising price. With the help of this strategy, Armstrong will encourage its employees and staff members to write and publish articles in the University magazine, business websites, and social media platforms about the healthy lifestyle and exercises. The process will be conducted in hope that it will increase the popularity of Armstrong GYM at a much lower cost than if another media is used.

Value Preposition

Armstrong GYM's main value proposition will be to prove the state of art facility with the best innovations received from manufacturers that supply quality materials and equipment. At the same time, the business will provide services at low cost and offer its regular custom the members monthly, quarterly, and annual subscription plans. Finally, well-qualified trainers and instructors will work at the GYM in order to help customers achieve the desired result without spending too much time.

Innovative Thinking

Armstrong GYM will apply the strategy of coming up with brand-new ideas (innovative thinking) with the view to addressing any shortfalls. For example, the fluctuation of demand is high in the summer when most institutions of higher learning are not in the session. In order to cover this shortfall in demand, Armstrong will try to increase its sale and provision of membership cards by encouraging and motivating neighboring families and community members to visit Armstrong GYM on their own or bring their children.

Marketing Mix

Every business requires the use of the marketing mix with the view to defining strategic market elements, which would help them in the effective positioning of their offer (Constantinides, 2006). The marketing mix of Armstrong GYM will mainly consider such issues as the product, price, promotion, and place.

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In terms of the product, Armstrong GYM will provide its customers with various services such as muscle training, crossfit training, and lessons in Aerobics training.


The pricing strategy will mainly follow the penetration pricing strategy matrix.

Armstrong GYM will face a number of challenges especially from the direct and indirect competition in the university and its surroundings. Therefore, the business will offer quality body work fitness and quality exercise services at the price that will be far much lower than the standard cost in the existing market, which is dominated by the major competitor, Smart Fitness Training Center. In such a manner, the GYM will offer its services at a charge of 100 AED to students of the America University in the Emirates with a membership card while any other client, who is not a student, will have to pay the services fee of 150 AED. However, the crossfit lessons and training will go at the same price in the earlier stage and will increase depending on the number of people who will enroll for them.


As stated earlier, Armstrong GYM will have its facility at the American University in the Emirates and will not involve any branch network in the first five years of operation.


The promotion aspect will cover various ways and means that will be used for create the public awareness of the GYM such as the use of the advertisement and deciding how and where to place various ads with the view to accessing broad customer markets.

In order to create an effective awareness, the business will apply the advertisement and other promotional tools with the aim of attracting more customers to the GYM.


The business will use various advertisement channels in order to create the public awareness. For instance, in terms of the environmental promotion, the company will place most of its advert in popular resting spots within the university and all over the city, including theaters and restaurants. The other advertisement channel that the business will explore is the Internet. In this area, Armstrong GYM will launch its web page that will provide all the required information concerning the business and special offers that are available at the time. At the same time, fitness and crossfit instructors will have a convenient and effective platform for posting different articles and other health-related materials. Eventually, they will offer to implement these programs in practice by attending Armstrong GYM.

On the other hand, over the years, the use of social media as a means of marketing has been increasing at a rapid pace. Social media provides a platform, with the help of which any business can engage in direct interaction with its customers. In their turn, customers can easily share their opinion about a product and service, as well as make an inquiry on a particular concern. Therefore, Armstrong GYM intends to create a Facebook page and an Instagram account, which it will be able to use with the view to reaching more students. The business will then use these accounts for posting any information that can be easily accessed by a large number of students that are using the platforms. The main reason for choosing this type of channel over placing ads on Google, which is also accessed by many people, is associated mainly with the required cost, which ranges from $54 per click to $55 per click.

Estimations for the Planner

The business will undertake various expenditures during its establishment; therefore, it is important to provide estimates for a number of fixed costs that the company will face. The following estimates will be forwarded to the planner for the budgeting purpose.

Rent. It will cost the business 5000 AED per month to rent the premise at the American University in the Emirates.

Maintenance appliances and products. The estimation of the cost of the maintenance appliances and products used to cleaning the GYM is at 8000 AED. The estimation includes the cost of maintaining the worn-out equipment and purchasing such cleaning as soaps.

Wages. The wages for the entire staff personnel working at Armstrong are estimated at 180,000 AED and will be paid on a monthly basis.

Marketing and advertisement. In the first year of operation, when the aspect of creating the public awareness is important, the business will allocate much money on the advertisement. The amount to be spent on achieving the goal is estimated at 10,000 AED; it includes the cost of printing brochures and publishing ads in the university newsletter, for example.

Unforeseen expenses. The business is going to use 2% of the income it generates in its operations to be allocated for any unpredictable expenses.

Budgeting and Planning

For Armstrong GYM to get up running, it will require 7million AED, which will be spent for providing the equipment and facilities for both the fitness and crossfit center, as well as covering other expenses. Therefore, the company will need to get the following resources or equipment with the view to running the business effectively.

Equipment Price
Total Fitness equipment 4000000
Total crossfit equipment 2000000
Licensing 5000
Furnishing 200000
Office supplies 65000
Other expenses 10000
Total Start-Up funding 6280000


The funds for financing the business startup will be acquired mainly through personal savings and bank loans. The saving accounts currently have 300,000 AED, which will be used for funding other aspects such as obtaining a license for the business, furnishing the office part, and purchasing office supplies to be utilized in the management of the GYM. The other 6 million AED for the fitness and crossfit center will be acquired through the bank loan from the Standard Chartered Bank. The sum is to be returned at the rate of 5% a year during ten years. Other sources of funding will also come from personal contributions and goodwill of friends and relatives.

Operations Plan

In order to run the business successfully in the two months without turning bankrupt, certain aspects are to be considered, and some sacrifices are to be made. First of all, the equipment that is the most demanded by customers will be given the priority when purchasing. The number of other fitness machines that are not common to clients will be retained for the future as the businesses plan suggests to acquire only necessary items for producing the first revenue.

Timeline of Activities

The business will perform the activities provided below in a defined sequence within the timeline that was developed by the company with the view to starting and running the business smoothly.

Legal Requirements

According to the United Arabs Emirates laws that regulate the business environment, Armstrong GYM will fall under a private business category since it will be owned by a private citizen of the country. In terms of taxation and customs duty, there will be a 4% customs charge on any equipment that the company intends to buy outside the country. In addition, the GYM will be charged a set amount for acquiring a trade license and renewal.


The patency of the business will be protected by applying for and purchasing a patent right from the local government ministry. The patent right will provide the company with the sole right to use the name Armstrong GYM in any transactions.


The business will require employees for conducting the day-to-day operations. In the establishment stage, the GYM staff will be limited to a few members. However, more will be hired depending on the demand and number of clients attending the GYM. The business will employ eight members of the staff in the beginning, including a managing director, two fitness and crossfit instructors, one receptionist and four maintenance personnel. One of the most important things that will be considered when employing people is their past experience in handling similar demanding businesses and the commitment towards achieving set goals. Personal responsibilities and corporate strategy will be clearly communicated to the staff

Staff Responsibilities

Managing director. The company is to be run by an individual with the business administration experience. Therefore, the managing director will be responsible for the overall supervision; he or she will check whether every operational aspect is performed up to the schedule or not. Moreover, the managing director will ensure that the aspect of customer satisfaction is met to the full.

Fitness and crossfit instructors. The business will have one fitness instructor and one crossfit instructor. The main responsibility of the two will be advising customers on how to use equipment and providing guidance for those who want to get started. Moreover, instructors will develop exercise programs for regular customers.

Receptionist. The main receptionist's responsibility will be providing different customer service. They will help in handling phone calls, guiding clients in the subscription processes, and helping any external body that wants to do business with the GYM.

Maintenance personnel. Since there will be a lot of equipment to be handled in the GYM, there will be four maintenance personnel. These workers will be responsible for lubricating movable parts of the equipment and inform the manager of any equipment that needs fixing or replacement.

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Financial Plan

Startup Expenses

The start-up expenses for the business are shown in the table below.

Table 5

Startup Expenses

Equipment Price
Total Fitness equipment 4000000
Total crossfit equipment 2000000
Licensing 5000
Furnishing 200000
Office supplies 65000
Other expenses 10000
Total startup funding 6280000

The graphical representation is provided in the table below.

Table 6


Revenue Forecast for the Next Three Years

The following is the predicted amount of that the GYM is likely to earn as returns in the first three years. The forecast is mainly based on the estimated number of customers that might attend the GYM in a year and the cost of each membership subscription.

Table 7

Revenue Forecast

Revenue Forecast for the Next Three Years
Armstrong GYM
  Year 1 Year 2 Year 3
Membership Attendance      
Year 1:1500 members 150000    
Year 2:2800 members   280000  
Year 3:4000 members     400000
Total Revenue 150000 280000 400000


In conclusion, today, the demand for fitness services is gradually increasing in the global perspective. The rise in demand has been caused by several factors that are affecting modern people, including concerns of being overweight, having little time to do regular exercises due to the working mode and duties, and some diseases, for example, obesity. The report on the UAE asserts that 47% of the population is overweight, and 37% is obese; in line, it explains the rise of the demand for fitness services in the country. These problems have become a great concern to the country's government. Therefore, Armstrong GYM should avail of the opportunity at hand to initiate a relationship with the government and apply for grants for the development of the business in exchange for convincing more obese and overweight students to enroll at the gym.

Today, the competitive rivalry seems to be low in the market; nevertheless, the company will have to face the competition from the local fitness center, Smart Fitness Training Centre, which seems to have an upper edge due to having been in the business for a while already. However, Armstrong GYM is likely to create a competitive advantage by employing a strategy of operating a crossfit and Fitness Center in one facility. The business will require an investment of 7 million AED as the startup cost for purchasing all necessary equipment for both centers. The plan further estimates that the amount will mainly be raised by acquiring loans from the standard charted bank due to the good rates on loans. The revenue forecast further indicates that the business will experience an increase in the revenue as the students' enrollment increases.

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