Business Case / Project Proposal
The main purpose of this project proposal is to develop an effective business plan for opening a yoga center in Australia. This paper also discusses the benefits to community or society will be achieved by the firm while starting up a new business in Australia. In addition to this, this paper also highlights market opportunities and situation which company may face while opening a business in Australia. In like manner, there are different risk are also identified that will be helpful for company to understand the market and open a new business efficiently in Australia. At last, investment appraisal will be done in efficient manner so it may determine that defined estimated project cost and time duration is accurate and reliable.
The main aim of this project proposal is to open a new yoga center in Australia. Yoga is best effective way to explore, integrate and develop the body, spirit and mind in order to develop discipline in the mind and life of people. In concern to this, business plan is developed to provide people with best yoga classes so that people feel relax and stress free by doing the mediation. On the other hand, the main purpose is to open a yoga center in Australia so that it will help in meeting the problem related to the obesity, health problem and stress which Australian people are facing mostly now days (Better Health Channel, 2014). Further, this project plan will also identify the benefits to community and risks which are involved with the establishment of new yoga institute in Australia. In similar manner, time duration, project cost and market opportunities will also be outlined in order to determine that how much time and cost will be required for successful start up.
This part of business plan discusses benefits which community will get from the Yoga classes through services provided to its customers. There are various benefits which company will provide to community people with its services such as reducing fat, stay fit, eliminating obesity problem and also help in managing mental problem (Internicola, 2013). These are some benefits which Yoga institute will provide to its customers by targeting them for their benefits motive. The main motive to open this small business, to make the people healthy and wise by encouraging them to stay fit and active and also by helping them to reduce their overweight and mental issues. In concern to this, Ratini (2014) stated that yoga is best way to stay healthy i.e., both physically and mentally as this help people to feel free from stress and depression. In all over the world, Yoga is promoted to a large extent as doctor also prescribes their patients to do yoga in their daily routine on a regular basis to avoid health and mental issues. The benefits of yoga on human health is improve in balance, strength and their develop flexibility which ultimately reduces the stress. On the other side, yoga will also provide relaxation session to people where their body and mind will have connection and also yoga help on emphasizing on breathing technique. Thus, these all benefit to community people will encourage in developing and growing a business in highly competitive market environment.
In this part of business plan, additional business options will be stated which company may start as its business get set up properly and get started successfully. The additional business option will be Gym classes, Aerobics sessions and many more which company may think to start as yoga classes get success and attract large number of customers towards institute. The both business option are also highly demanded in Australia as there are students or youngsters who would like to do gym as well as mainly girls likes to do aerobics to stay fit and active. These both business options are also effective and efficient as they both help in targeting the large market segment easily. According to the research study of Burns (2010), it has been clearly stated that aerobics and Gym is modern form of staying fit and healthy as aerobics helps in reducing fat whereas Gym also help in reducing fat but also helps in increasing stamina and power in the individual. In short, these both also help in eliminating the obesity to a large extent. Thus, Gym and Aerobics are other best business option which will help the company to achieve their target customers and develop & grow their business.
Current situation and market opportunity
The current market situation and market opportunity for Yoga institute is high as nowadays people are becoming more concern about their health problem and want to become fit so that they feel good and relaxed. While analyzing the market of Australia, it is identified that Yoga is rapidly growing fitness activity as it help in eliminating the mental health issues such as stress, depression, anxiety and many more. In Australia, the proportion of women is more becoming concern about their health and fitness and this increase in concern result into high demand for yoga classes in Australia (McCartney, 2011). The market trend of Yoga is high competitive so it is necessary to make the yoga classes attractive and easily adaptable by people so that they get encourages to practice yoga for long time in order to meet their health issues.
The target market for Yoga institute is broad and encompassing as large number of people are moving towards the yoga classes (mainly boys, girls and women) where wide range of services are provided to trainee by trainer. The major target market will be students, women and kids who faces problem related to obesity, increase in health problem, mental stress, etc (Finch, 2013). In this plan, it will also clearly state that customer will reach to company through social media promotions or advertisements which will provide defined details about the services and Yoga benefits. On the other hand, the prices and promotion of yoga services will be made on the basis of customer demand and wants and promotion of yoga session will be done with the help of different marketing tools like online and offline advertisement.
The estimated cost which this business plan required to open a yoga institute in Australia is $46000 because for establishing a yoga institute a particular well-centered place is required where large number of customers can easily be targeted. In this, project cost will be divided into different segments like taking land and building, renovation, furniture and fixture, equipments and well- professionalized trainers and so on. The overall cost for the project will be estimated by determining the cost which will be charged for establishing a proper business i.e., cost for renovation of building according to yoga classes, trainers salary and equipments which are necessary for proper and different forms of yoga classes. The below table shows the estimated cost which will incur while establishing yoga institute:
|Furniture and Fixtures||$ 6000|
|Trainer salary||$ 15000|
Identify major risk
There are large numbers of risk which are associated with this business project plan includes lack of skill in trainer, high competition, financial support, market risk and so on. These all risk creates or develops problem on the way of establishing a successful yoga business in Australia. Like, lack of skilled trainer will affect directly on the business growth and development as if trainer is not well- professional and skilled in yoga forms then this may affect the health on people adversely (Parry & Tyson, 2013). So this is major risk for company to establish and develop their business.
At the same time, yoga business may also face problem to attract and target large market segment due to high competition in Yoga industry. The high competitive risk creates barriers for new entrants to target the particular market segment as there are existing competitors who are providing similar services to customers. This risk will create negative impact on the business development and growth and may result into loss to business.
On the other hand, financial support is another risk which develops obstacles on the way to start a business in efficient manner. For establishing a business in Australia, there will be requirement for some investment in order to start business at small scale but if investor is not satisfy with the business plan then it will be resulting into high risk (Gido & Clements, 2014). Moreover, the other risk will be market risk which occurs when business may not properly marketed or grow as expected in the market. This risk affects the business to grow smoothly as there are always a chance that market takes long time to expect a new business and this impact on investment as company is waiting for new customers to start a business.
The time duration to make this business plan successful is complete one year so that company can achieve long term profit from this business. The time duration to target the customer will highly depend on the development and growth of business and its services in market. Within 2 -3 years, company will able to attract large number of customer i.e., estimated increase will be 25%. This increase in customer also helps in depicting the actual demand and satisfaction level of customer from the services in one year by determining the increase in the profit in comparison to expenditure made (Ferrell & Hartline, 2010). In concern to it, the time duration sets some milestones while development of business like time to target the market segment, time to achieve success and profit and so on.
Investment appraisal will be the major parts of this business i.e. open the Yoga centre in Australia. It is because in order to sustain in the market there will be a need of investment for the firm. So, in this investment, firm will identify that in which firm can do the investment like on new machinery, equipment, etc. As well as, in this investment, firm will also analyse the major sources such as equity or retained earnings, debt to get the capital (Cravens, 2011). It will help the firm to increase the value of the firm among the customers and in the market also. It will also assist the firm to overcome the possibilities of shut new business. In addition to this, the investment appraisal will also help the firm to expand the business in Australia and to garb the market opportunities. As, there are already different firms related to Yoga and there is also a need of this types of meditation and the work for the Australian people due to highly affected from different diseases like Obesity, sugar, etc (Yoga alliance, 2014). Because of this, focus on the interments appraisal will be quite advantageous for the firm in terms of business success and to develop a good customer base in Australia.
The above stated discussion help in concluding that stated business plan is best and effective as opening a yoga center in Australia will help in targeting a large number of people and achieve position in the highly competitive market. This plan will provide actual idea about the benefits to community people by services which company will provide to its customers as well as how company will target its customers with its products and services. In this study, pre-determined budget is also set by the firm in which estimated cost and time is determined appropriately. Further, this project plan report also stated that there will be some risk which will develop barriers and difficulties for the company which will be faced effectively for establishing business successfully. But at the same time, investment appraisal will also help the company to identify the actual benefits which company will achieve after starting up a yoga business.
Better Health Channel (2014). Pilates and yoga – health benefits. [Retrieved from] https://www.betterhealth.vic.gov.au/health/conditionsandtreatments/pilates-and-yoga-health-benefits
Burns, P. (2010). Entrepreneurship and Small Business. USA: Palgrave Macmillan.
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Finch, B. (2013). How to Write a Business Plan. UK: Kogan Page Publishers.
Gido, J. & Clements, J. (2014). Successful Project Management. USA: Cengage Learning.
Internicola, D. (2013). ‘Some like it hot, but does it matter in yoga?’, Reuters. [Retrieved from] http://in.reuters.com/article/2013/08/05/fitness-hotyoga-idINDEE97407920130805
McCartney, S. (2011). 100 Great Branding Ideas: From leading companies around the world. USA: Marshall Cavendish International.
Parry, E. & Tyson, S. (2013). Managing People in a Contemporary Context. UK: Routledge.
Ratini M. Do. (2014). ‘Which style of yoga is best for you?’, WebMD. [Retrieved from] http://www.webmd.com/balance/guide/which-style-of-yoga-is-best-for-you
Yoga alliance (2014). Styles of Yoga. [Retrieved from] http://www.yogaalliance.com.au/styles-of-yoga.html