Executive Summary
Miami Sports Medicine is a business initiative that seeks to offer training services to the residents of Miami. The firm will be based within the city of Miami. It will target the locals and tourists who need physical training for various reasons. The targeted market is expanding rapidly because of the increasing population of the middle class within this city. The management has financed 65 percent of the project and is now seeking for the remaining 35 percent from the lending institutions so that it may start operation.
Company Description
Miami Sports Medicine is athletic training and sports rehab center that narrowly focuses on the members of the society who are not engaged in physical sports because of the nature of their work. This is a business venture that seeks to ensure that members of this society are able to get into the center, engage in physical exercise under the direction of a qualified athletic therapist, and maintain a healthy lifestyle despite their tight schedule at work. Miami is one of the cities in this country with very many people of the middle-class status.
The company seeks to offer a unique product that is designed to meet the needs of the middle class who are working under a tight schedule. This firm has a team of Certified Athletic Trainers who have medical backgrounds. These trainers will work closely with the clients to understand their individualistic needs before prescribing the nature of the training they will be taking.
We will look at our clients’ medical history to understand any complications relevant to our training, and the time availability so that we give them the best service. The firm will also offer specialized services to clients with specific instructions from their doctors.
Patients seeking rehab services because of their broken bones, obesity, or any other related problems can be attended to at this facility by a team of dedicated professionals in this field. Currently, the firm has already received a request for registration from 109 clients who stay within this community as soon as the news about our market entry became public.
The customer base is expected to expand very fast as society becomes conscious of their physical well-being. Some are coming to this facility because of the desire to maintain lean bodies, while others seek to fight lifestyle diseases.
The massive interest from the public and the limited number of similar facilities in this region offer the biggest opportunity that this firm will capitalize on as it expands its market share. With the right financial support, we believe that Miami Sports Medicine will become the largest athletic training and sports rehab center in this city. The figure below shows some of the equipment that will be used in the center.
Figure 1: The Equipment at the Training Center
Source (Bouchard and Blair 119)
Market Analysis
According to (Jackson 47), in order to understand this market, it is necessary to use a PESTEL Model.
Figure 2: PESTEL Model of Market Analysis
Source (Burgess 39)
The political environment in Miami is very conducive for this business venture. The state government has been supportive of such business ventures. Given the fact that this facility will reduce the pressure at our medical laboratories, we expect support from the political leaders in this region. The state also has a good history where the political leaders avoid interfering with business operations as long as they follow the set regulations.
The economic environment in Miami is very promising. Since the end of the 2008 economic recession, the state has experienced economic prosperity (Moore 29). Tourism is booming in this region, and the rate of unemployment has gone down. This means that the purchasing power of the residents within the city has improved.
The social factors in this city are very favorable. Physical training is gaining popularity among the middle class as they seek to lead a healthy lifestyle and maintain an athletic body. Most of these people consider getting membership into sports clubs as a sign of their social class (Pulizzi 30). They want to be associated with some of the best clubs in town, and this is what Miami Sports Medicine seeks to be in this city.
Technological environment has been changing to the benefit of this industry. Instead of taking field trips, the clients can jog right within the training facility using some of the modern machines. Some of the equipment currently used in such centers is computerized. Although some of them are very costly, they will enable the firm to provide superior services to clients in a very safe environment. Environmental issues may not be of big concern to this business entity.
The government is carving into the pressure from non-governmental organizations to address the issue of environmental pollution, especially the emission of greenhouse gases (Milne and McDonald 115). The machines at this facility will be powered by electricity, and they have no emissions. The facility is very conscious of the need to protect the environment. It has put in place measures that will ensure that plastic wastes or any other used materials are properly disposed of.
The legal environment in this state seeks to ensure that there is a positive relationship between firms and their clients (Blick 81). The laws are meant to protect the business entities, consumers, and the government from fraud. The government stands to benefit from these laws.
Organization and Management
Miami Sports Medicine is yet to start its operations in the market. However, the management has put up an organizational structure that will define the operations of the firm once the operations begin. The structure below will define how this firm will be managed once it starts its operations.
Figure 3: Organizational Structure
Currently, the chief executive is the owner of the company. Once the firm gets operational, a legal advisor will be hired on a part-time basis to act as the secretary. He or she will be responsible for all the legal issues within the firm. The marketing officer will be responsible for all the activities involving publicizing the firm’s brand and its services to the target market. The medical officer will be in charge of handling any medical issues of the clients.
He or she will subject all the clients to medical checkups before they are registered to ensure that they have the capacity to engage in specific exercises that they are subscribing for at this firm. The head of the physical training will be in charge of the physical exercises within the firm. He or she will coordinate with the medical officer in order to know how the clients should be grouped.
Service or Product Line
According to Kaminsky (82), it is very important to define a product line for a new business venture before starting the operations. Not only does this make it possible to plan for the operational activities, but it also enables the marketing unit to conduct effective research (Lobo 127). At Miami Sports Medicine, we will offer physical training services to clients of varying needs.
The first group of clients will be people who want to maintain physical fitness specifically to stay away from lifestyle diseases. The next group will be those who are concerned about their physical image. The last group has people who are seeking physical exercises as per the direction given by medical doctors because of their medical backgrounds. The following chart shows the number of prospective clients in the groups who have already expressed their interests at this facility.
Figure 4: Prospective Clients
The number is expected to rise significantly once the facility gets operational. The product line may be expanded based on the requests from the clients. However, the expansion will be limited to athletic training sports.
Marketing and Sales
According to Jackson (57), marketing is one of the most important aspects of business units in the current society. The days when a business unit presented products to the market and expected customers to buy them are long gone (Sant 69). Competition is forcing firms to come up with unique ways of marketing their products in order to attract customers (Murray 117). At Miami Sports Medicine, the office of marketing officer has been created to facilitate promotional campaigns.
The primary target customers in the three segments described above will be the residents of this city. Currently, there are plans to hire billboards at strategic locations within the city to attract these targeted clients. We also have plans to form partnerships with some of the major healthcare centers within the entire state of Florida so that we can take care of their patients who live within this city.
The marketing manager will visit the management of these hospitals and explain to them the services we offer and their relevance to some of their clients. Such referrals are always very important in this industry (Ford and Pruitt 120).
Social media has become one of the most popular marketing platforms in the current society (Larsen 49). Young adults, who form a significant percentage of the targeted customers, are very active on sites such as Facebook, Tweeter, and YouTube (Zarrella 34). The marketing team will use these sites to reach out to the targeted audience with the message about the brand and products offered by this firm.
The social media will act as a perfect platform to inform our clients about the changes in the product offering so that they may appreciate the effort made by the firm to ensure that the products offered are of very high quality (Finch 94). Miami is a tourists’ hub. Some of the tourists may also be interested in our services for the duration they will be staying in the city. We intend to use tourists’ agencies to reach out to the tourists who may be interested in our services.
Funding Request
The biggest challenge that Miami Sports Medicine is currently facing is the limited funds to finance some of the activities and expensive items needed for the business. The stock of equipment needed for this facility is not complete. We need $ 69,500 to help in various areas so that we may start the operation immediately. The following are the specific areas where this money will be spent.
Figure 5: Planned Expenses that Needs Extra Funding
The management of this firm has been able to finance over 65 percent of the total costs needed in this project. We are now seeking for an additional 35 percent, which is remaining in order to complete the project. We want a loan, which will be cleared within a period of one year.
The management believes that the firm has the capacity to pay back this loan within the first four months. However, some eventualities may occur that may slow the rate of income for the firm within these four months. It is because of this that the management is going for a loan that is payable within one year. The terms of the loan should be friendly given the fact that Miami Sports Medicine is a new firm that is just starting its operation. The management is confident that the loan shall be repaid within the first eight months of operation.
Financial Projections
Miami Sports Medicine is getting into an industry that is yet to be saturated. In this region, the firm is not facing serious competition, and the management of this firm expects to capitalize on this advantage. At first, the firm will be reinvesting most of the profits earned from the operations soon after clearing the loan. However, the firm expects to experience a massive financial projection, especially after the first year of the operation. The following graph shows the financial projections for the first eight years of operation.
Figure 6: Estimated Profits
As shown in the figure above, it is expected that this business entity will make a profit of about 95,500 dollars in its first year of operation. That is why the management believes that the debt can be cleared within the first year. In the fifth year, we expect to make a profit of over 310,000 dollars from our services.
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