Writing a business plan is your map to how you are going to operate. Regardless of whether you are interested in taking over an existing business or starting a new one; they both have challenges that you will need to overcome in order to succeed. Discuss one of the challenges in starting a new business and how you may be able to address that challenge with a well-designed business plan. Your challenge can be unique to either a start-up or on-going business or both.
Post by classmate
I wanted to look at what challenges a gym might have to consider as they were building a business plan. I live in a town of approximately 3,000 people and our county has about 92,000 people that live in it. One of my concerns as I was building a business plan is do we have enough prospective clients in the area to support another gym. Currently there are two gyms in the town one being a small hometown gym and the other being a name brand gym. To verify if we were in a city that had the personnel to support a third gym I would use a mixture of qualitative and quantitative methods. Investopedia states that “Qualitative analysis uses subjective judgement” (Smith, 2021). Gym use and percentage of people going to a gym can change based on the state, class level and overall desire to go to a gym driving more subjective data. We then would need to look at the world today to see what people’s comfort level of going to the gym is. With COVID numerous people started buying their own gym equipment because gyms were not open. Will this factor be an issue trying to open a gym? We would need to look at overall percentages of people that go to a gym to determine if we even have the population to support those numbers. To gather this info I would need to use multiple different judgement models to gather this information. I could use historical data to determine the average number of gym members and then survey data to determine out of those members how many have built their own gyms or are no longer going to a gym. These baseline numbers should give me an idea if we have the population to support our business.
Smith, T. (2021, April 22). Qualitative Analysis. Retrieved from Investopedia: https://www.investopedia.com/terms/q/qualitativeanalysis.asp