Business Plan-Development of an online fitness service Essay

Business Plan-Development of an online fitness service - Essay Example A bigger percentage of their personal contribution is invested in conducting market research. An effective market research informs the business, it is through these researches that the investors identify viable business opportunities and the best ways of operating the facilities (ALBRECHT, 2011). They however, opt not to include the amount used in conducting the market research since the amount is not directly invested in the business. Its contribution to the profitability of the business is therefore indirectly related to the actual operations of the business. The ten thousand pounds is used to secure a business premise. This is an online gym and do not therefore require a big actual space. Despite this understanding, the business still requires a premise in which the actual operations will take place. The investors will require a space to set up their computers and an actual gym in which they will produce their training tutorials. Online gym implies that the business invests in vending exercise tutorials over the internet. In this, the business requires the production of high quality, effective and timely exercise units that thereby give relevance to the actual space for which the investors apportion five thousand pounds. They purchase the space, which makes the building a fixed asset for the investors. The investors apportion an additional four thousand pounds in the purchase of equipment. This includes the gym facilities and computers. Some of this equipment eventually wear and tear down but a majority of these such as the all-important computers and the training facilities. The equipment will possibly be used for more than a single financial year; this therefore makes it insensitive to place such assets as current. However, the usability of these facilities rely heavily on the safety mechanism that the investors sets up for their business. In case of a