Case Study : A New Fitness Center

1851 WordsDec 5, 20148 Pages
There are many factors potential entrepreneurs must consider to be effective in any venture. A strong understanding of the industry and market, opportunities that may exist within the market, potential risks to a venture 's success and the funding and conditions that the business needs to thrive. This entrepreneurial mindset requires knowledge, proactive strategies and the ability to obtain funding for the venture as well as skill and know-how to get others to invest in the idea. An entrepreneur needs to take a proactive approach to the venture by employ key strategies to understand the market and expose opportunities that the business can profit from. First, it is important to understand the industry the venture is entering. Though popularity of certain aspects of the industry, growth rates and size have some weight, these items alone only scratch the surface. Examining aspects that indicate if the industry is fragmented or concentrated can indicate barriers that would prohibit a business venture from being successful. For example, if the venture is to open a new fitness center similar to Planet Fitness, if the market area is saturated with similar business (L.A. Fitness, YMCA, etc.) the differentials needed to make the business survive become limited because the concentration is high whereas a defragment industry may provide a isolated target market. Also, understanding the industry related to business sizes, age and demographic of population in the market, area

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