Business Essentials Assignment Level 4 & 5-Small Gym Business

Answer :


The essay incorporates a new business plan which will target young generations including students and fitness freaks. The business will be a small gym owned and operated by a sole person or proprietor. The TOWN CLUB, a newly opened gym located in the Holborn district of London catering to fulfil the needs of people suffering from obesity.


Part A – Town Club Business Plan

Business Idea

Business idea is to start a gym with modern equipment and facilities which will cater to the needs of people focusing on their fitness through atomistic development of health by physical exercises as well as mental relaxation through meditation and yoga. The idea behind opening a gym is all about providing a fitness studio for people who require to maintain a healthy living irrespective of losing or gaining weight.

Business Type and Location

Town Club is the name of the Gym and since it is a newly opened business, it is based on private ownership owned by Steve Mackinson (Kotler, 2010). The business will be a limited liability company with 35,000 pounds of investment done initially. The other employees and staff will be hired on salary basis. The Gym will emphasize on sound health and body of their customers. The location of Town Club is prepared to be launched in Holborn London at the centre of the city as it has the major footfall as well as this is easily accessible at any time. The gym will operate for 24 hours every day in the guidance of gym trainers.

Competitors and their strategies


Plan of Action

Fee structure per session


Goal driven training


1 Rebel

Quick results


Embody Fitness

12 weeks body transformation


Thus, the perfect idea behind opening a gym in the city centre having tough competition from the above three strong gymnasium is that the Town Club has a focus on providing a healthy and sound body rather than fit body. The USP of Town club as it will position itself as gaining a healthy body both physically and mentally to attract customers to join the gym. The fees per session will be minimum as the gym needs to grab customers and will account to £67 per session.  

Part B – Objectives of the new business

Goals and Objectives of Town Club

  • Positioning itself as a gym focusing on development of sound health thereby gaining or reducing weight as required by the customer.
  • The gym will operate for 24 hours every day rendering assistance services by trainers and instructors (Fitzroy and Hulbert, 2015).
  • The location is centre of Holborn as it has the major footfall of people and is easily ac
  • The vision is to be the best fitness studio and the mission is to fulfil the needs of people in a span of one year thereby having around a set of 300 customers.
  • To have a revenue of around 110,000 British Pounds for the first year which will have an average increase of 16 % per year afterwards.
  • The aim is to recover total expenditure incurred on the commencement of business in a span of 3.5 years from the profits and revenue earned.
  • Another motive is to settle all the running costs and overheads in the initial year itself.
  • The goal is to multiply the fitness studio in other cities and areas in the coming 10 years.

Structure of Town club


Steve Mackinson

Personal Trainers 

Goldy Smith

David Mckinsy

Rodger Karl

Michelle Brick

Diana Zoria

Gym Instructor

Stacy Brown

Benjamin Smith

Legal entity & ownership

The Town Club is registered with the State Secretary and is a private company with limited liability owned and operated by Steve Mackinson (Zaltman, 2013). The business so setup is a small business with little investment and capital which will focus on earning profits initially by positioning themselves in a different way to attract customers. The company has focused on advertising through radio, television, newspapers as well as magazines with fitness column.


PESTLE Analysis of Town Club

Political - The political environment of Holborn is stable and entry as well as establishment of new business is easy. The UK trade restrictions and taxes are generally low for fitness based organizations. The government programs and campaigns are also focused on influencing people to have a fit and healthy life so as to improve standard of living. Thus, such acts motivate the customers and people of society to enrol in gym membership; thereby opening doors for new gymnasium studios.

Technological - It plays a vital role in gymnasium business as new equipment attract customers and fantasize them to join such fitness studios with the latest technology. The 'Town Club' has focused on incorporating newer machines and fitness equipment for providing an exotic experience to their customers and thus, satisfying their needs. The management has plans to provide various other facilities such as chargers for all type of smart phones and music system services to their customers.

Economic - The gym business caters to the luxury needs of customers and the impact of inflation and interest rates affects its profits as the total number of customers may reduce as their spending power decreases. The current economic conditions are normal and customers are now becoming fitness conscious. The Town Club is entering the industry at the right time where the economic situation of the country after the financial crises of 2008 is stable and progressive as well as the government policies are seemingly productive.

Legal - The legal environment of UK is fair as well as strict in some forms. The healthcare and fitness legislations have restricting norms which business firms need to undertake and incorporate them generously. Every company needs to comply with the safety requirements of their customers by giving proper attention to specific treatment and exercises rendered to their customers. All trainers and instructors need to be suitably qualified which will add to the cost of the gym business at Town Club. The company should have provisions of insurance as well as necessary employment laws needs to be adhere properly.

Social - The social analysis point towards having a healthy and fit life which will increase the rate of living of a person with less prone to diseases. A healthier life style and fitness is the need of today's generation. The Town Club, has focused on providing their customers healthy and fit body both physically and mentally through daily exercises and meditation. The demographics such as age range and wealth impacts the gymnasium business. The Town Club has focused on 15-40 age group people.

Environmental - The environmental concerns are high in London and the company should focus on environment friendly equipments and machineries. Energy efficient machines and equipments needs to be used thereby saving electricity. Town Club has planted a solar panel for generating electric power for their machines and uses organic and natural products for treatments. It has influences a lot of customers thereby brining in more money to the small business.


Part A - Defining Launch Event of Town Club

Every new business needs to launch an event in order to make the business or product profitable. Every gym has something different to offer and thus, a new gym business plan should be launched in such a way which not only gathers customers as well as influences others to join this gym rather than their previous fitness studio. The management at Town Club is engaged in planning of the launch event which will inculcate the venue, food catering department, promotional activities and inviting a guest or celebrity for the ribbon cutting ceremony etc. (Homburg and et al., 2009) The objectives to kept in mind while preparing for the launch event are:

  • The decoration of the site which is The Town Club studio itself needs to be bright and colourful with full of balloons and decoration items so as to make a colourful atmosphere.
  • The management should keep a visitors record book at the doorstep to get the name, email and phone number of people visiting the fitness studio.
  • The launch event being a two day event will provide free demo and workout sessions to people visiting the Town Club studio.
  • Each and every instructor and trainers needs to be present at the venue for providing fitness classes and influencing people to become customers.
  • The event will be promoted through newspaper, radio, television etc. a week before its actual date.
  • The food served will be healthy and organic which cater to the main objectives of the gym.  
  • The celebrity invited is a gymnastic or a fitness personality so as to enhance customer experience.

Part B- Producing a budget for the event

The budget needs to be produced for the launch event in order to meet the various expenses.



Decoration cost


Health Drinks and organic food


Printed images of equipment on walls


T-shirts with logo (free samples)


Celebrity cost





Marketing objectives - The marketing objective of Town Club is to position itself in such a way and between the competitors by providing people a different message that is enhancing health and fitness through exercises and yoga and not just using equipments to gain or loose weight.  Such an objective or goal will definitely enhance the profit of the newly opened small gym business. Another vital objective of marketing is that the gym will operate for 24 hours every day rendering assistance services by trainers and instructors. The Town Club aim to open and run a facility at full capacity within the first two years with 150 to 200 members.  

Target Markets - The target market will focus on people who wants a healthy lifestyle and not just a healthy body encompassing the age range from 15-40 as well as the business has plans for people with age between 40 -60.  Many customers are ready to pay premium amount in order to receive premium services is the major target of the gym by providing exceptional services of personal trainers and instructors for 24 hours a day (Lunenberg, 2012). Thus target market would be people suffering from overweight in young age and old ages.

Marketing strategies - The marketing strategy which has been incorporated by Town Club is especially for teenagers and youngsters suffering from obesity. The user of internet medium and blogging will be undertaken. Emails though received at the launch party will be used for advertising and promotion. Free park exercises will be incorporated for promoting and creating awareness.

Marketing Mix - The marketing mix 





The price set by the gym is £67 per session which is according to the market demand and supply research. The price will rise at the end of the year according to the owner.

Many fitness conscious would not like to pay such a high amount for a newly opened gym as there are many competitors who have an renowned reputation in the gymnasium business with a bit higher price.


The services rendered at Town Club includes exercises, yoga, personal health development program, meditation sessions and personal training provided by exceptional trainers.

All these services are provided by other competitors as well thus it needs to be done in an exclusive manner so as to enhance customer satisfaction.


Town Club is located at the Holborn city centre as it is easily accessible and sees a major footfall of people for usual shopping and social gathering. This is the right place for the gym so as to attract health conscious people.

The gym at the city centre will cost company a huge rent impacting its overall profitability as rent is a fixed expense company needs to bear (Lishchenko, Shieh and Chen, 2011).


The gym has been engaged in extensive promotion through TV ads, radio, newspaper articles, magazine columns etc. for attracting people to visit and buy membership.

Extensive promotional techniques needs to be used so as to grab competitors clients as well. Various t-shirt needs to be distributed as free samples with the company logo.


  • Fitzroy, P. T. and Hulbert, J M., 2015. Strategic management, creating value in a turbulent world. Wiley, Chichester. pp 90-109.
  • Homburg, C. and et al., 2009. Marketing Management – A Contemporary Perspective  London, Routledge.
  • Kotler, P., 2010. Marketing defined. Principles of marketing (5th ed.). p. 7 Routledge
  • Lishchenko, T., Shieh, M. D. and Chen, K.H., 2011. International Marketing Strategy of Design-Driven Companies, 2011 International Conference on Financial Management and Economics, vol.11 p.87
  • Lunenberg, F.C., 2012, Organizational Structure: Mintzberg’s Framework, International Journal of Scholarly, Academic, Intellectual Diversity, vol.14, no.1
  • Zaltman, G., 2013. How Customers Think: Essential Insights Into the Mind of  the Market. Cambridge, MA: Harvard Business Press.
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