Prepared by:Prepared by:Michael MacleodMichael MacleodCourtney QuinnCourtney QuinnAmanda RoemerAmanda RoemerSheena DeVriesSheena DeVries

Executive SummaryExecutive Summary

Fitness FacilityFitness Facility Four full-time, one part-time employeeFour full-time, one part-time employee Free weights, circuit training, yoga, and Free weights, circuit training, yoga, and

specialty classesspecialty classes E3- closureE3- closure Committed to functional training vs. Committed to functional training vs.

traditionaltraditional

Management TeamManagement Team

Michael MacleodMichael Macleod – Finance – Finance

Courtney QuinnCourtney Quinn – Accounting – Accounting

Amanda RoemerAmanda Roemer - Kinesiology - Kinesiology

Sheena DeVriesSheena DeVries - Marketing - Marketing

Business ObjectivesBusiness Objectives

Growth Growth SalesSalesExpansionExpansion

Start up costsStart up costs

Marketing: ProductMarketing: Product

Dutch Dumbbells is a comprehensive Dutch Dumbbells is a comprehensive fitness facilityfitness facility

Our small business offers both equipment and Our small business offers both equipment and customer assistancecustomer assistance

Classes for every level of fitnessClasses for every level of fitness

Overall health conscious environmentOverall health conscious environment

PromotionPromotion

Three main focuses:Three main focuses:RadioRadio

Country 95.5 and The River 107.7Country 95.5 and The River 107.7

NewspaperNewspaperLethbridge Herald and the ShopperLethbridge Herald and the Shopper

Coupons and Give-Away’sCoupons and Give-Away’sGold Mine Coupon BookGold Mine Coupon Book

And of course word of mouthAnd of course word of mouth

PlacementPlacement

Dutch Dumbbells will be located in the Dutch Dumbbells will be located in the vacant building where E3 Salon occupied. vacant building where E3 Salon occupied.

Our small business realizes the danger of Our small business realizes the danger of comparisons between the fitness facilitiescomparisons between the fitness facilities

Commitment to healthCommitment to health

PricePrice

Dutch Dumbbells is dedicated to providing Dutch Dumbbells is dedicated to providing our customers with the lowest cost our customers with the lowest cost possiblepossiblePer month fees are:Per month fees are:

$35 membership fee to fitness facility$35 membership fee to fitness facility

$15 optional classes fee$15 optional classes fee

Drop-in fees are:Drop-in fees are:$10 for fitness facility$10 for fitness facility

$8 per class$8 per class

Customer AnalysisCustomer Analysis

Our target demographic is a person who is Our target demographic is a person who is dedicated to physical activity and healthdedicated to physical activity and health

Demographic:Demographic:Males and FemalesMales and FemalesAges 23-45Ages 23-45Average Income approximately $35,000 +Average Income approximately $35,000 +Dissatisfied with current fitness facilities and Dissatisfied with current fitness facilities and

looking for a comprehensive alternativelooking for a comprehensive alternative

CompetitorsCompetitors

Our foremost competitors are the U of L Our foremost competitors are the U of L fitness centre and the Right Pace only fitness centre and the Right Pace only women’s centre. women’s centre.

Our distinctive separator is our Our distinctive separator is our comprehensive programs. Not only do we comprehensive programs. Not only do we allow individual use of machines and allow individual use of machines and services but also provide consultation services but also provide consultation when needed.when needed.

Physical FacilitiesPhysical Facilities

Floor PlanFloor Plan - 6600sq.ft. - 6600sq.ft. 3 main areas: fitness, classes, extra space3 main areas: fitness, classes, extra spaceRent out 3 massage rooms for $500/moRent out 3 massage rooms for $500/moContract out 1 daycare room for $350/moContract out 1 daycare room for $350/mo

Building start-up costsBuilding start-up costs = $51,097.50 = $51,097.50

Minimizing risksMinimizing risks

FinancingFinancing

Market Potential Market Potential $841,685$841,685

Market ShareMarket Share43.7% 43.7%

Potential RevenuesPotential Revenues$367,816$367,816

Income StatementIncome Statement

20052005 20062006 20072007 20082008 20092009

RevenuesRevenues $367,816.00$367,816.00 $404,597.60$404,597.60 $445,057.36$445,057.36 $489,563.10$489,563.10 $514,041.25$514,041.25

Child Care RentalChild Care Rental $4,200.00$4,200.00 $4,200.00$4,200.00 $4,200.00$4,200.00 $4,200.00$4,200.00 $4,200.00$4,200.00

Massage Therapist Massage Therapist RentalRental $18,000.00$18,000.00 $18,000.00$18,000.00 $18,000.00$18,000.00 $18,000.00$18,000.00 $18,000.00$18,000.00

Total RevenuesTotal Revenues $390,016.00$390,016.00 $426,797.60$426,797.60 $467,257.36$467,257.36 $511,763.10$511,763.10 $536,241.25$536,241.25

ExpensesExpenses $391,351.98$391,351.98 $333,304.48$333,304.48 $333,304.48$333,304.48 $333,304.48$333,304.48 $333,304.48$333,304.48

Net IncomeNet Income -$1,335.98-$1,335.98 $93,493.12$93,493.12 $133,952.88$133,952.88 $178,458.62$178,458.62 $202,936.77$202,936.77

Break Even AnalysisBreak Even AnalysisDataData

  

Fixed costFixed cost 285754.48285754.48

Variable costVariable cost 00

RevenueRevenue 3535

     

ResultsResults

Breakeven pointsBreakeven points   

UnitsUnits 81648164

DollarsDollars$285,754.4$285,754.4

8 8

     

Volume Analysis @Volume Analysis @ 00

CostsCosts$285,754.4$285,754.4

8 8

Cost-volume analysis

0

200000

400000

600000

800000

0 5000 10000 15000 20000

Units

$

Costs Revenue

Cash flow StatementCash flow Statement

20052005 20062006 20072007 20082008 20092009

Cash In FlowsCash In Flows $5,664.02$5,664.02 $161,343.28$161,343.28 $160,031.68$160,031.68 $203,225.82$203,225.82 $209,936.77$209,936.77

Equity InvestmentEquity Investment $550,000.00$550,000.00 $150,000.00$150,000.00 $150,000.00$150,000.00 $25,000.00$25,000.00 $25,000.00$25,000.00

Total Cash In FlowsTotal Cash In Flows $555,664.02$555,664.02 $311,343.28$311,343.28 $310,031.68$310,031.68 $228,225.82$228,225.82 $234,936.77$234,936.77

Cash Out FlowsCash Out Flows $494,813.86$494,813.86 $292,264.48$292,264.48 $292,264.48$292,264.48 $292,264.48$292,264.48 $292,264.48$292,264.48

Net Cash FlowsNet Cash Flows $60,850.16$60,850.16 $19,078.80$19,078.80 $17,767.20$17,767.20 -$64,038.66-$64,038.66 -$57,327.71-$57,327.71

PersonnelPersonnel

Administrative StructureAdministrative Structure

Employee Recruitment/TrainingEmployee Recruitment/Training

Personnel PoliciesPersonnel Policies

Legal StructureLegal Structure(Incorporated)(Incorporated)

Advantages Formalities

Limited Liability Existence Capital Tax Advantages Credibility and

Prestige

Higher start-up Costs Maintaining Records Double Taxation

http://www.corporationcentre.ca/docen/home/faq.asp?id=inc#q5

Legal RequirementsLegal Requirements

Dutch Dumbbells Inc.Dutch Dumbbells Inc.

We will only operate in AlbertaWe will only operate in Alberta

Licenses and permits = $221.98Licenses and permits = $221.98

Insurance is $2000 per monthInsurance is $2000 per month

LocationLocation

Specific Site: #880 Heritage Heights Plaza WestAccessibility

Proximity To Other BusinessesPhysical CharacteristicsSite Costs: (rent, utilities, licenses etc.)

$15,350.37/month or $184,204.48/year

LocationLocation

Competition:Competition:

The University of LethbridgeThe University of Lethbridge

7500sq.ft. 7500sq.ft.

The Right PaceThe Right Pace

1000sq.ft.1000sq.ft.

LocationLocation

Attitude of the Trading Area: Attitude of the Trading Area:

Chiropractic ClinicChiropractic ClinicNeed for a fitness centerNeed for a fitness centerLandowner/Landlord open-mindedLandowner/Landlord open-mindedPrevious Owners/ManagementPrevious Owners/Management

http://www.corporationcentre.ca/docen/home/faq.asp?id=inc#q5

Any Questions?Any Questions?