A Business Case for a New Economic Opportunity - Essay Sample

Introduction

Numerous people are suffering from different illnesses that demand constant care from a health professional. The rising cost of healthcare has seen patients preferring home care treatment to aid their recovery. The field of home care nursing provides numerous economic activities that can be harnessed to improve the quality. These opportunities can be used to generate income at the same time enhancing care and promoting better health within the community. Opening fitness centers in residential areas offer a lucrative economic opportunity that can offer additional income to home care nurses. These center can be expanded to provide other services that can enhance the quality of care. It is through this business opportunity that patients can make visits to get help on that can improve their health and recovery. Besides, these centers can carry out tests and recommend to patients concerning their health status.

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Risk and Mitigation Analysis

Opportunities and Risks

The fitness center can provide some opportunities, but there are some risks associated with running such a business. The economic activity provides an opportunity of accessing a larger market. Some individuals suffer from health conditions that demand regular exercises. These individuals might lack the right facilities within their homes, and the center can offer these facilities at an affordable cost (Cantor, 2015). The business can tap this market to make revenue and also help to improve the health of these patients. The other opportunity is the chance to expand to other markets. When the activity is launched in one residential area, it can prove to be a significant contributor to improve quality of care. The demand in the market can push the owners to expand to newer markets, therefore, benefiting from access to a larger market. The risk associated with this kind of economic activity is an injury to patients and additional costs that could lower profit margins. The patients who will be visiting this fitness center could be suffering from other ailments which will demand that they are guided by a professional through the various fitness exercises (Sharkey & Gaskill, 2018). These exercises might be health but risk causing injuries to these patients. The management could be held liable for the injuries sustained by these patients. The profit margins from the business could further be affected by additional costs of running the center. The facility could end up providing transport services to its clients. Besides, the center could be forced to hire more staff to help prevent accidents and injuries to clients.

Ethical and Culturally Sensitive Solutions

The risks identified should be addressed to ensure that there is continuity of business operations. The risk of injuries should be addressed by drafting a policy that exempts the center from any liability arising from the use of its facilities. Besides, the patients can be encouraged to hire private trainers who will guide and protect them from injuries. The facility can further identify the risks associated with every customer and develop a customized package that ensures that safety is provided (Cantor, 2015). The risk of increased risk should be shared with the client. Even if the business has good intentions of helping the patients, it must structure its costs to ensure that it meets operational costs and also provides a reasonable profit margin. The facility should continuously apprise its business to identify gaps and fill them to ensure that the activity is sustainable in the long-run.

Cost-Benefit Analysis

Costs and Benefits

The proposed economic activity is costly at the initial stages of setting it up. The major costs that will be incurred will include the purchases of training equipment, leasing a building and hiring training staff to provide services to the customers. These costs must be met while starting the facility and the owners must raise enough capital to be able to meet the requirements of running a fitness center (Sharkey & Gaskill, 2018). The costs will reduce drastically within the five years. The benefits of the activity will be felt progressively within five years. The main benefit is the returns from the investment. As the facility operates, it will continue to attract more which will expand the market. The business can also think of expansion plans to tap on the expanding market in need of fitness services.

Ways to Keep Costs Under Control

The rising cost of operating this fitness center should be managed to ensure that the business operates optimally. The founders of the center can decide to run it on their own thus doing away with the need to hire staff to provide the required services. The move will eliminate the costs of paying wages and salaries to staff. The center can partner with other service providers to provide transport solutions to the patients visiting the center. The mode of raising capital should be reviewed to ensure that only critical equipment is purchased (Cutler, 2014). The process of controlling costs is continuous, and the business can consider new technologies that can revolutionize the fitness center business. Eventually, the costs will reduce, and the business will rep from its massive investment.

References

Cantor, M. N. (2015). Health Care Quality: A question of Supply and Demand [PDF]. American Journal of Medical Quality, 30(5), 491-492.

Cutler, D. (2014). The Quality Cure: How Focusing on Health Care Quality Can Save Your Life and Lower Spending Too. Berkeley, CA: University of California Press.

Sharkey, B. J., & Gaskill, S. E. (2018). Fitness & health. Human Kinetics. https://books.google.co.ke/books?hl=en&lr=&id=0O56DwAAQBAJ&oi=fnd&pg=PR1&dq=The+costs,+risks+and+benefits+of+running+a+fitness+center&ots=bsdjegXg4Z&sig=CTcxSE-7EkBbszQRa56GN7bv_mk&redir_esc=y#v=onepage&q&f=false