Many people fail to prosper in their new ventures because they lack a proper plan and a concrete research about the venture in the area they are planning to start. The individuals must have knowledge about the factors that could affect the new venture and have strategies to deal with the effects that come along with the possible factors. Brilliant platform on the business strategies such as marketing, financing sources, resources required to start the new venture and the location for the ventures are very essential. For the entrepreneurs to acquire the financial sponsorship from the government, financial institutions, or even individuals they have to convince them the way their ideas would work and possible benefits from the venture once established. For instance, the idea of cross fit box in Riyadh, Saudi Arabia would work well because there is no such venture in the region. The potential behind the possible success of the business is because of the fitness related heath related problems facing many people across the country, and the living standards of individuals in the country is also an encouraging factor.
Before physical establishment of a new venture, the entrepreneurs should prepare financial plans. A financial plan will help the entrepreneur to accomplish long-term and short-term goals through proper financial management of available resources (Financial Planning Association, 2013). Comparison of different sources of funds is vital depending on the terms of sponsorship of the sources and the entrepreneur should select the source of capital that best favor the business. The sponsors could banks, microfinance, government funds, or individuals. The financial plan of cross fit box should have a target group in the society such as young and middle aged men and women, and the expected monthly and annual income from the clients. The entrepreneur should ensure that the financial factors such as inflation in Saudi Arabia are properly understood. The financial situation requires periodic re-evaluation due to economic changes, and this is experienced when inflation rates among others change. The re-evaluation will enhance the entrepreneur to project the future progress of the business.
As the entrepreneur gets closer to owning a cross fit business an operational plan must be put in place. All the employees must be allocated their duties to avoid waste of time through confusions as they execute wrong roles that could be risky to the venture. The venture should in an open place where the customers can easily locate, and the place should be secure. The cross fix center could hire the services of one of the security firms at a reasonable cost to protect the clients who turn up at the center. A training program of different services should be in place running twenty-four hours a day to host clients at any time with different trainers allocated a specific period. A daily cost of running the business should be available for enabling the entrepreneur to estimate the period the business can run out of liquid capital. The entrepreneur should the terms and conditions of registering a cross fit business in Saudi Arabia prior to the due date set for registration to avoid mishaps (Fitness Texter, 2012).
On the other hand, marketing strategy would be instrumental in knowing a good location for the cross fit box in Riyadh. The location will depend on the rate of inflow of the customers, and the best places are near recreation sites where people go to relax. The entrepreneur should analyze the way the surrounding people spend and their lifestyles with reference to the new venture (Entrepreneur Media, 2014). The entrepreneur should explore the other ventures that offer similar services in the area such as gyms, martial arts centers, and nutrition centers to compare with the type of service the new venture would offer. The analysis of potential strengths, limitations, opportunities, and fears of starting cross fit box in Riyadh are important. Similarly, the services to be offered have to be analyzed too in ensuring that the clients acquire the right services. The entrepreneur should start to outsource for the customers through advertisements and invitations. The entrepreneur could use social media sites to invite friends to experience the services of the new venture. The entrepreneur should make the analysis of the customers that attend the premises to access the services and evaluate the growth rate of the clients. Moreover, the individual should set clear communication channel with the target customers to advertise about the benefits of the services offered at the gym (Smarta Enterprises Ltd, 2013).
A proper strategic planning of the venture is a requirement when the business starts to run, and its purpose is to avoid unpredicted risks in the future. The plan would assist in allocating time to access various services at the cross fit center so as to avoid under-utilization of some services hence making the venture to maintain a competitive edge against the rival businesses with similar products. In addition, planning would enable the entrepreneur to allocate labor efficiently according to the demand in different services (Fitness Texter, 2012). Through strategic planning, allocation of finances to different resources is eased, and possible accounts of losses during the process are minimum. Allocation of financial resources occurs when the resources available for the services become overwhelmed due to exceeded maximum limits that they can handle at a single moment (Q-PorkChains, n.d).
The entrepreneur has to make reasonable prices for different services offered depending on the prevailing market conditions to avoid losing clients and the same time to avoid incurring losses (Rouse, 2013). Therefore, proper strategic plan would boost the earnings of the cross fit center if properly implemented and evaluated with time. The resources that the entrepreneurs in cross fit box require include the human labor. The business could start with around 10 employees. The facilities to be needed should be put into consideration such as the buildings, electricity to operate the machines among others. The entrepreneurs should have an estimated value of their ventures, for example, the startup cost of cross fit box in Saudi Arabia could be $ 90, 0000. The daily running cost of the business could be $ 1000 due to wages and facilities maintenance.
The entrepreneur should understand how to earn profit in the cross fit business, and they could be achieved through earnings collected during registration, training sessions, when collecting certificates after full training of certain sports such as swimming among others. Registration cost per client could be held at $ 240 to make them full members and annual renewal fee of $ 100. Any form of training could be charged at $ 500 per client is who is a member of the venture and $ 750 per head for non-members. In the areas that need certificates all clients should pay a flat fee of $100. There should monthly financial, goals achieved through luring new set of clients to use the service. Additionally, the entrepreneur should have an estimated time when the cross fit business would turn profitable since it started running. The annual profit could be estimated at around $ 100, 000 per year as the business starts to pick. When starting the cross fit box, the entrepreneur should have an approximate figure of the amount needed (Galoozis, 2010). Additionally, the entrepreneurs should come up with a strategy to pay up the people who sponsored their businesses. For instance, they sponsored should be allocated around 10 % of the total profits earned. They could also pay made as co-business partners where they could be allocated the shares depending on the amount contributed.
In conclusion, for the individuals to benefit from their business ideas they should conduct a proper survey of the location they plan to start the new venture. A survey includes the operational, financial, marketing, and strategic plans. A research on various factors that affect the business venture is vital, and this includes analysis of the whole business and the products or services offered. An example of a new venture is the establishment of cross fit box in Saudi Arabia where search a venture does not exist. Therefore, for a new venture to prosper a comprehensive planning is instrumental.
Financial Planning Association. (2013). How To Make Financial Planning Work For You. Retrieved from http://www.financialplanningdays.org/content/howtomakefinancialplanningworkf oryou.aspx>.
Galoozis. (2010). Starting a Business: Factors to Consider When Choosing Your Industry. Retrieved from: < http://www.nfib.com/article/starting-a-business-factors-to-consider- when-choosing-your-industry-55027/>.
Smarta Enterprises Ltd. (2013). Smarta. Retrieved from: < http://www.smarta.com/advice/sales- and-marketing/advertising-and-marketing/how-to-develop-a-marketing-strategy/>.
Q-PorkChains. (n.d). Strategic Planning Process within Business Units. Retrieved from: < http://qpc.adm.slu.se/SNPD_ver2/page_10.htm>.
Rouse, M. (2013). Strategic Planning. Retrieved from: <http://searchcio.techtarget.com/definition/strategic-planning>.
Entrepreneur Media, inc. (2014). How to Create a Marketing Plan.
Fitness Texter. (2012). A Cross Fit Box Affiliate Business Model Template. Retrieved from: <http://boostfitnessmarketing.com/free-fitness-marketing-tools/crossfit-box-business- model-template/>.