Lifestyle Fitness Gymnasium - Accounting System and Activity, Human Resource Management - Business Plan Example

1.0 Business Location The expected location is: Bourke, NSW 2840 Australia (See administration appendix 1) Lifestyle Fitness is a gymnasium that aims to guarantee its customers easy access for them to realise their fitness goals. Therefore, the proposed location for the gymnasium is in Bourke, New South Wales. The area is chosen primarily because it is a good tourist destination. The location of the gymnasium allows for easy access for patrons who may possibly not have a car. Even though it is located far from Sydney City, Bourke can be easily accessed by train, road, and air. In addition, the surrounding area has an appealing natural scenery. The green grass and several trees make the area quite conducive for jogging and running. The blowing winds and resulting breeze help cool down temperatures. This is supported by the nearing Darling River. The field offers an outside area to conduct several outdoor activities such as Pilates with the free flowing music from the gymnasium building. 1.1 Rental Agreement The site for the Lifestyle Fitness gymnasium covers quite a vast area. The prices for commercial property developments are quite high; the average cost of purchasing such a property calls for a colossal sum of money ranging between 2 million Australian dollars and 5 million Australian dollars. Given the above conditions, we prefer to lease the premises along with the surrounding fields so as to trim down the initial investment costs. The average annual lease for the area is A$ 30,000 including GST and outgoings and can vary from year-to-year. At present, the property is owned by Ray White Commercial Agency. The property will be reviewed according to the legal requirements so as to strike a satisfying tenant-landlord agreement, then the property will be developed accordingly. See administration appendix 2 1.2 Local Council Zonings and Regulations The Bourke Shire Council has developed local laws to be observed in developments in the area. The council has provided numerous forms to be filled in respect to the developments. See administration appendix 3 1.3 Street Advertising Advertising aims at communicating to potential customers of our product and service offerings. In general, Bourke has various bus stops and an airstrip. The first option of advertising is placing posters at the bus stops and at the airstrip. We also shall partner with various buses offering transport services to Bourke to place posters on the outside and inside of these buses. The two common target buses are the NSW Trainlink and Bourke Shuttle Bus Coach The surrounding schools and colleges shall also provide an advertisement point by placing posters on the notice boards. The target customers are tourists, local residents, and students from the neighbouring schools and colleges. 2.0 Utilities The property where Lifestyle Fitness gymnasium will be located will be leased. It is therefore expected that the landlord will cater of some utilities such as council land rates, environmental charges, land-subdivision fees and land taxes, among others. We will be responsible for other utility charges such as water bills, electricity bills, and garbage collection. See administration appendix 4 3.0 IT Information technology has revolutionised the manner in which business is conducted. Today, patrons can pay for membership fees online and manage their schedules by the click of the button. We will design a website to cater for online services to enable easy access and management, particularly by visiting tourists and the technology savvy generation x students. The website shall be accessible through various platforms including the mobile version given the rising ownership of smartphones. 4.0 Equipment and Fittings Required and Costs The equipment required in the gymnasium is quite vast. However, there are elementary equipment required for basic exercise services. The following is a list of the basic categories of equipment that is considered obligatory in the first year of operation: Exercise bikes Rowing machines Athletic supports Treadmills Cross and elliptical trainers Weights and strength training Pilates and yoga Fitness technology Other small fitness equipment Entertainment system Other equipment will be acquired based on the market demand. These equipment require to be fitted. The following table presents a summary of necessary fittings and the charges: Air conditioning installation Electrical installations Equipment installations Hot and cold water installations Paintings Interior design and décor Entertainment system fixing See administration appendix 5 5.0 Staff At first we are not sure of the turnout to the gymnasium. However, considering the basic services to be offered, in the first year of operation Lifestyle Fitness will require a staff of 5 people; 2 will be fitness instructors, 1 nutrition and health instructor, 1 cleaner and 1 person in charge of accounting. Generally, the staff are required to be competent and have some experience in their respective area. However, the general requirements are; Knowledge of current fitness industry developments Effective communication with guests of all ages Work independently under own initiative Work well in a team and maintain good working relationships Approachable and welcoming The table below summarises the type, number, roles and duties, special skills or qualifications requirements of the staff: Type Number Roles and Duties Skills and Qualification Fitness instructors 2 Gym supervision to ensure safety Induction classes for new members and users Offer personal training services Conduct various classes for members Attend trainings Promote professionalism Help to promote gymnasium to increase membership Gym instructor qualification Music qualification First aid certificate qualification GCSE standard education Customer service experience Nutrition and health instructor (wife to owner) 1 Plan and advise members of lifestyle programs, prescribe lifestyle changes Develop a health and fitness development plan for members Attend training on current issues Comply with all legislation relating with health Help to promote gymnasium to increase membership Health qualification First aid certificate qualification GCSE standard education Customer service experience Cleaner 1 Empty waste bins and collect material to collection point Mop floors Dust, wipe, polish necessary areas such as windows and the equipment Replenish consumable items Clean toilets, hand basins, showers Be able to distinguish colours Cleaner qualification Basic education Accountant (owner) Data entry Manage petty cash Keep accounting records CPA qualification Ability to use Microsoft excel Ethical 5.1 Salaries, Tax and Superannuation The table below indicates the salaries for the employees Employee Category Salary (A$ per hour) Fitness instructor 19 Cleaner 16 The employer is required to deduct tax from an employee’s pay. The tax amount is sent to the Australian Tax Office (ATO). The superannuation is a mandatory pension savings scheme. The Australian government superannuation policy applies to each and every one employee either employed in full-time, part-time or casual. The employees are allowed to select the fund they wish to contribute their funds to. The employer is mandated to ensure that the employees qualify for superannuation. Employees are allowed a period of up to 28 days to choose a fund. If they do not choose one, the employer is required to nominate a fund to contribute to. The current minimum superannuation fund contribution is 9.5 per cent for wages and salaries of A$ 450 or more per month (ATO, 2014). See administration appendix 6 6.0 Human Resource Management Policies 6.1 Organisational Health and Safety Australia requires that workers should lead healthy, and stress free lives. Work is not supposed to make workers be of poor health and if a worker is injured provisions must be in to place to help out the worker in returning to fitness and the labour market too. The government has established legislation to make available a healthy and safe workplace in order to shrink the number of workplace related health and safety issues that have occurred in the past. Unsafe workplaces or work practices can have a huge cost to any worker; human cost, finance cost and social cost. Organisational Health and Safety is very much important in a gymnasium not only for the employees but also the patrons. Various injuries can occur such as Lifestyle Fitness seeks to guarantee worker health and safety through various ways including; Providing workers with appropriate Personal Protective Equipment, where necessary Giving instructions or training on how workers are required to work safely Making sure that the machinery or plant that workers use meet safety standards or requirements Confirming that workers have the appropriate qualifications to execute their duties Ensuring that the gymnasium is safe and without risks to health, including safe entrances and exits On the other hand, workers, too, have a duty to take reasonable care for their individual health and safety along with the health and safety of other workers by; Making sure that they do not affect the health and safety of others Following the reasonable Work Health and Safety Laws directions provided by the organisation Cooperating with the reasonable work health and safety policies and procedures of the organisation Not messing about with or misusing things provided for the health and safety of persons at work Not frustrating attempts to give aid or to avert a serious risk to the health and safety of a person at work Not to disrupt the workplace by creating health or safety fears Not refusing a sensible call to assist in giving aid or preventing a risk to health and safety 6.2 Disability Regulations The Disabilities Acts indicate that no business is supposed to discriminate against people with disabilities. The owner of the business is required to make sure that the disabled are well catered for and can access the business with no difficulties. This is to guarantee equal access and opportunity (Disability Act, 2006, Disability Regulations, 2007). Lifestyle Fitness is a crucial facility for the disabled. They too need to exercise and tone up their bodies and the gymnasium will definitely attract some. We will make sure that special facilities for disabled are provided and they can be able to access and use them. 6.3 Worker Compensation Requirements The aim for worker compensation in Australia is to make available monetary along with worker compensation for injuries at work or illness arising from the area of work. Worker compensation is statutory. The employer is mandated to take out worker compensation insurance (Worker Compensation Regulation, 2010). 6.3 Staff Training Work in a gymnasium requires adequate level of knowledge and skill. We shall seek employees with qualifications in their relevant work areas. We shall offer an induction and orientation program for the employees so that they get acquainted with their new working area. The induction will entail the running of the gymnasium, what is expected of them, ethical requirements, communication skills and interpersonal-relational skills. This is a service-based business and we care the way our members and customers are handled. In addition we shall make sure that apart from employing competent individuals, we also offer them continuous training given that the industry is evolving with changes in technology. Employers are obligated provide information and training as regards work hazards and safe work practices that give consideration to these vulnerable groups and other workers as well. We will ensure that the employees are aware of the workplace health and safety regulations. 6.5 Staff Presentation Appropriate clothing and presentation is key in relaying the image of an organisation. We shall be considerate of the colours that sell our image. The workers will be provided with appropriate uniforms with the logo of Lifestyle Fitness gymnasium. Apart from the uniforms, other work-related clothing be provided including protective clothing, tracksuits, costumes, footwear, and cloves. 7.0 Advertising and Promotion and Costs Our target market is the employed individuals aged between 18 to 50 years who intend to realise a healthier lifestyle. Such people represent a generation that is technology savvy. They also can afford to pay money for a magazine or newspaper. In promoting our gymnasium, effective communication is a must so as to boost our customer base. There are several ways to achieve this; Website: specifying the general information about our fitness centre such as product range, service, location, business name and objective Printing advertisement; Local newspaper, health and fitness magazines, pamphlets, brochures, posters and business cards Word of mouth; the advantage of this is that it creates brand awareness and it is very effective because it focuses on our target market. Radio advertisement: to inform the target market on their commute to and from work The table below indicates the advertising and promotion costs Product/Service Cost (A$) Web design 105 Newspaper advertisement 50 Magazine advertisement 60 Pamphlets and brochures – 250 250 Posters and business cards – 250 250 Total 715 8.0 Accounting System The Corporations Act requires all businesses to maintain appropriate accounting records. The records are supposed to capture and explain financial transactions of the business entity. The primary financial records detailed include; Receipts Cheques Lease agreements Bank statements. 8.1 Chart of Accounts Assets Current assets 1100 – Cash account 1101 – Bank account 1102 – Petty cash Non-current assets 1200 – Equipment 1201 – Accumulated depreciation Liabilities 2100 – PAYG payable 2101 – GST payable 2102 – Superannuation payable 2103 – Wages and salaries payable Non-current liabilities 2200 – Loans Incomes 3300 - Membership subscription 3301 – Weekly payments 3302 – Daily payments Expenses 4400 – Repair and maintenance 4401 – Wages and salaries 4402 – Advertising 4403 – Depreciation 4404 – Workers compensation 4405 – Miscellaneous 4406 – Superannuation 4407 – Electricity 4408 – Water 4409 – Rent/Lease 4410 – Waste removal 4411 - Insurance 8.2 Business Activity Statement (BAS) Our business entity is registered for GST, therefore, we are required to indicate our GST obligations and entitlements on a Business Activity Statement (BAS) at the end of each tax period. Our BAS will be stayed with the ATO on a quarterly basis as indicated below; August quarter (June, July, and August). Due 27th September November quarter (September, October, and November). Due 27th January February quarter (December, January, and February). Due 27th March May quarter (March, April, and May). Due 27th June The minute the summary section is completed, the amount owing or refundable is computed. Once the BAS is completed, any amount due to the ATO is paid. There are a number of ways through which payment can be made, that is, post office payments, mail payments or BPay (internet or telephone). The BAS will be lodged on time to avoid penalties that may be imposed. 8.3 Petty Cash Some of our members may desire to pay their fees on a daily on weekly basis. In light of this, the accountant will maintain a petty cash of A$100 to cater for change. Given that our target market group involves employed people such an amount is good to ensure that in case they come with big currency notes the change will be readily available. 8.4 Internal Controls In essence, these are procedures put in place to cut down fraudulent activities, protect our assets through detecting such unethical business actions. Given our small scale this will not be much of a trouble, but it is still necessary in maintaining the accuracy and integrity of accounting data and promote efficiency. Internal controls of our activities includes: Keeping a record of assets in the assets register. Updating all assets in the asset subsidiary ledger or all acquisition. Updating periodic depreciation for all depreciable assets using the appropriate base, dates, useful lives, and method. Reviewing the assets subsidiary ledger and depreciation schedule for mathematical accruing and agreement with authorised documentation. Physical controls in areas where assets are held. Reviewing assets to certify that repairs and maintenance expenses are not capitalised in the subsidiary ledger. Internal control over computer records and physical controls in record storage areas Appendices Appendix 1: Business Location Bourke NSW 2840 Appendix 2: Rental agreement The terms and conditions of lease should be met by both the landlord (lessor) and the tenant (lessee). As a lessee, it is imperative to make the most out of the terms and conditions prior to signing a commercial lease; for instance, the landlord agrees to pay council rates, and land taxes. According to fair trading, the minimum condition of retail property lease is supposed to be taken for a period of five years. A shorter period can be agreed upon given that the landlord is notified within six months of the time you sign the lease. If it is agreed that the premises is to be leased for five years, as a tenant, it is your duty to pay a rental agreement for the entire five year periods of lease even if the premises are not used. That’s why the landlord possibly will ask you to put down a security payment just in case these requirements are not met, mainly depending on your ability to pay for the five years lease of the commercial property, in a form of bond. You can pay these bonds in forms of either cash to your landlord or have a third party guarantee is also acceptable. If you decide to pay the security in a form of cash, for whatever amount, you will get it back by the end of the lease term i.e. after five year. Appendix 3: Local zonings and regulations https://78462f86-a-92a3827c-s sites.googlegroups.com/a/bourke.nsw.gov.au/www/planning-and-environment/forms/Development%20Application%20form.pdf?attachauth=ANoY7criNBHsCRhpFFbpqy5w8-GwmCIsebV7GIPa3prkqKGMLYcKgCtnxd7ngp0MWZ8zoy_ixwd_wxzsJLifiz970yE5dVt1fRjhIM-BgY6WuPWDm_WbDdOwca9xZvswXxjEfUaojs0x5BL4zbizMiXlJT7eQPTssp7ISekhNfAMdAq0JdPNhoqAmsiLxVb5PYIedPnAjXUl_9W-J9GYiD2e_cVfyjU10R2zKfVtUFwTy71wvJgMkxqykzSXYfFjODG4dVrRtgL8FFi9tYraAH4QcuEN_HfXrw%3D%3D&attredirects=0 Other information can be accessed from: http://www.bourke.nsw.gov.au/ Appendix 4: Utilities, Charges Applications for permanent service of water, sewage, electricity, telephone, and cable must be arranged for separately. It is recommended that you should apply for the following companies for the following services: Service Company Water and sewerage Sydney water Electricity Energy Australia Telephone and cable Telstra Appendix 5: Equipment and Fittings and Costs Category Equipment Cost ($) Exercise Bikes Pro Fitness Folding Magnetic 82 Roger Black Programmable 205 Roger Black Manual Aerobic 152 Rowing Machines Pro Fitness Gym and Rowing 82 Elevation Fitness Programmable 261 Roger Black Air Rowing 152 Athletic Supports Nike Pro Cobat Knee Sleeve 16 Adjustable weight vest 120 Shock Doctor Knee Stabiliser 45 Cross and Elliptical Trainers Reebok ZR10 470 Elevation Fitness EF1 Magnetic 310 Proform Ellipse 4.0 355 Training Gloves Matt Roberts 11 Reebok Cyan 14 Reebok Magenta 15 Yoga and Pilates Thane Fitness 310 Soltura Pilates 15 Reebok Yoga Strap 10 2625 Maintenance of equipment Month Servicing (A$) June July August 200 September October November 200 December January February 200 March April May 200 Total 800 Appendix 6: Wages and Superannuation Fitness instructors (A$) Health and fitness instructor (A$) Cleaner (A$) Accountant (A$) Weekly wage 300 300 200 350 Weekly PAYG 10 10 7 12 Weekly superannuation 28.5 28.5 17 32.25 Annual wage 15600 15600 10400 18200 Annual PAYG 520 520 364 624 Annual superannuation 1482 1482 884 1677 Total Annual wage 59800 Annual PAYG 2028 Annual superannuation 61828 Total 123656 References Australian Human Rights Commission, 2014, Access to premise, viewed 9 October, 2014 Australian Tax Office, 2009, PAYG Withholding: Guide for Employers and Businesses, viewed 5th October 2010 Australian Tax Office, 2010a, Schedule 2: Weekly Tax Tables, viewed 5th October 2010 Australian Tax Office, 2010b, Activity Statements, viewed 1st October 2010 Education Australia, 2014, Worker’s Compensation, Viewed, 11, October, 2014, Harris, J., Hargovan, A. and Adams, M. (2008), Australian Corporate Law, LexisNexis Butterworths, Australia Industrial Relations, 2014, Award Wage, Viewed, 11, October, 2014, NSW Legislation, 2014a, Occupational Health and Safety Act 2000, viewed on 9, October, 2010 NSW Legislation, 2014b, Workers Compensations, viewed on 9, October, 2010 SafeworkAustralia, 2014, Organisation Health and Safety, Viewed, 10, October, 2014, Victoria government, 2014a, Disability Act, Viewed, 10, October, 2014, Victoria government, 2014b, Disability Regulations, Viewed, 10, October, 2014, Victoria government, 2014c, Working and Employment. Viewed, 10, October, 2014, Read More