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Presented by:
Boldt Consulting Ltd.Stephanie Boldt William Lackton Lindsey Reilkoff Michael Pack Kaitie Cluff
Ashish Khulbe
AGENDA•Introduction
•The Marketing Plan
•Operations
•Human Resources
•Financial Outlook
•Conclusion
123456
INTRODUCTION - BACKGROUND
INFORMATION
The client
Sarah Feldman
Majority shareholder
Business diploma and several
years of experience working as a
general manager for a small
business in Saskatoon
Recently certified as a Personal
Trainer Specialist in the hopes of
starting Venus Fitness
INTRODUCTION – INDUSTRY OVERVIEW
The Conference Board of Canada: Saskatoon’s real domestic product growth at 4.9 per cent, surpassing the country’s previous top performer, Calgary
Alan Migneault, chief executive officer of the Saskatoon Regional Economic Development Authority Inc. (SREDA) has stated “We believe that Saskatoon’s economy will continue to grow and exceed expectations on a national level.”
Saskatoon has been ranked most competitive among western Canadian locations in the 2008 edition of the Competitive Alternatives: KPMG’s Guide to International Business Locations (considers both cost and non-cost factors)
Source: www.sreda.com
INTRODUCTION – CAPITALIZING ON OPPORTUNITY
Promising Business Opportunity
No fitness facilities
specializing in Pre and Postnatal women’s
health
Society’s focus on
Healthy and Active
Lifestyles
Saskatoon’s Economic
Boom
INTRODUCTION – MISSION, VISION, & CORE VALUES
Vision“Promoting balanced, healthy, active lifestyles
among the women of today to achieve a state of
well-being in all stages of life”
Mission“To facilitate fun and fitness for life for the
women of Saskatoon”
Core Values Well-being in all aspects in life Facilitating your physical, mental, emotional and nutritional needs Healthy mom and healthy baby Supportive & encouraging environment
INTRODUCTION – CRITICAL SUCCESS FACTORS
Sales Volume
Internal Expertise
Specialty Program Offerings
Quality and Variety of Equipment
THE MARKETING PLAN – PRODUCT
“Promotion of a healthy lifestyle for all women”
Full-access to professional fitness training
staff Support in setting fitness goals Tailored training programs designed for
clientele’s specific goals and needs Nutrition counseling
THE MARKETING PLAN – PRODUCT
Specialty Programs Pre and Postnatal fitness programs
In partnership with the Saskatoon Health
RegionPersonal Fitness TrainingYoga and PilatesMental well-being seminarsStep Ahead Dance Classes
THE MARKETING PLAN – PRODUCT
On-site child care services Accredited child care workers
Care for young children and infants
to support post-natal program
Children activities designed around
the healthy lifestyle philosophy
THE MARKETING PLAN – PLACE
Located in the Lakewood area of Saskatoon
Affluent new
development
Other affluent
neighboring developments
include:
Lakeridge
Lakeview
Briarwood
Stoneridge
Total population of area
and neighboring areas of
17,110 people
Located in strip mall next to Jugo Juice and in vicinity of:
Shoppers Drug Mart
Hair and tanning salons
Medical and dental clinics
Extra Foods
Blockbuster Video
Lakewood
Venus Fitness
THE MARKETING PLAN – PRICE
Priced at to offer value through unique specialized programs, quality equipment, and high levels of personalized service included in membership fees
Offer “Trial Memberships” for 4 sessions
Adult$75
Seniors
(65+)
$50
Student
(15-19)
$50
Day
Pass
$10
Prices shown are per month except the day pass
THE MARKETING PLAN – PROMOTION
Marketing will be performed through five different channels
Partnership with the Saskatoon Health Region Partnership with Lululemon Athletica Banner advertising in Saskatoon malls Door-to-door in neighboring areas Website
Total marketing budget of $10,000
THE MARKETING PLAN – COMPETITIVE ANALYSIS
Five fitness centres in Saskatoon specializing in women’s fitness
Curves for Women – 30 minute circuit workout Flex Appeal Fitness for Her – Not a circuit gym Ladies Workout Express – 30 minute circuit workout Ladies California Fitness - Group classes and babysitting
services First Step Fitness Women’s Centre – 30 minute circuit
workout
Differentiating factors for Venus Fitness: Specialized pre and post natal programs designed by
medical professionals Support network services such ranging from nutrition classes
to career networking
OPERATIONS – ORGANIZATIONAL CHART
Fitness Centre Manager/Personal Trainer
Child ServicesSupervisor
Child ServicesStaff
Fitness Supervisor/Personal Trainer
FitnessStaff
OPERATIONS - START-UP PROJECT PLAN Operating hours
Monday to Friday 6 am – 9 pm
Saturday and Sunday 9 am – 5 pm
Tasks to be completed prior to opening in January
2009 Develop commercial space (5000 sq ft)
Acquire leased equipment
Hire fitness and child services staff
Install computer system and network
OPERATIONS – SPECIALTY PROGRAM
OFFERINGS
OPERATIONS - START-UP PROJECT PLAN Weekly Schedule for Multi-Purpose Room - January - April 2009
OPERATIONS – CAPITAL BUDGET (CONTINUED)
Description 2009 2010 2011 2012 2013 Totals
Land and Building N/A N/A N/A N/A N/A N/A
Fitness equipment 140,408 62,540 36,384 47,866 47,866 335,063
Other equipment 110,000 - - 12,000 - 122,000
Totals $ 250,408
$ 62,540
$ 36,384
$ 59,866
$ 47,866
$ 457,063
OPERATIONS – OPERATING EXPENSES
Operating expenses 2009 2010 2011 2012 2013
Lease rental costs 67,500
67,500
67,500
67,500
67,500
Lease operating costs 47,500
49,875
52,369
54,987
57,737
Insurance 3,000
3,090
3,183
3,278
3,377
Payroll 223,590
254,591
285,591
316,591
347,592
Sub - contractors 39,000
53,560
55,167
56,822
58,526
Marketing and promotion 7,500
7,500
5,000
5,250
5,513
Legal and Accounting 1,500
1,545
1,591
1,639
1,688
Professional development and training
2,000
2,060
2,122
2,185
2,251
Bank charges 650
670
690
710
732
Interest on long term debt 11,656
9,796
7,793
5,633
3,306
Telephone, internet and supplies
2,500
2,575
2,652
2,732
2,814
Expendable equipment 1,700
1,751
1,804
1,858
1,913
Repairs and maintenance 2,808
6,088
13,712
14,123
14,547
Janitorial 5,000
5,150
5,305
5,464
5,628
Depreciation 44,182
51,073
51,355
53,877
55,895
TOTALS $ 460,086
$ 516,824
$ 555,832
$ 592,650
$ 629,017
OPERATIONS – WORKING CAPITAL
Cash based operations Operating line of $100,000 Minimal Accounts receivable and accounts payable
Working Capital Significant capital required for start up of operations Range from a low of -$105,700 in 2012 to a high of
$693,500 by 2019
OPERATIONS – QUALITY CONTROL
Expertise, ongoing development and training
Strategic Partnerships
Safety control
Monitoring of customer satisfaction
Review of performance
HUMAN RESOURCES – JOB DESCRIPTIONS
Fitness Centre Manager/Personal Trainer Sarah Feldman
Fitness Supervisor/Personal Trainer Angela Ringwald
Group Fitness Instructors Sub-Contracted
Fitness Staff
Child Service Supervisor
Child Service Staff
HUMAN RESOURCES – TRAINING
Training of fitness staff Up to two weeks of internal training
Professional Development $500 annually for Personal Trainers
HUMAN RESOURCES – LABOUR COSTS
Start-Up Approximately $225,000
At Full Capacity Approximately $300,000 $350,000 at 2013 adjusted for 3%
inflation
HUMAN RESOURCES – STAFFING DIAGRAM – START-UP
HUMAN RESOURCES – STAFFING DIAGRAM – FULL CAPACITY
HUMAN RESOURCES – HUMAN RESOURCES STRATEGY
An environment of support
Development of staff personal fitness
programs
Opportunities to attend classes and
seminars
Child care for staff members
FINANCIAL OUTLOOK – FINANCIAL GOALS
To earn a 20% return from Venus Fitness Centre1To retire all long term debt within 5 years2To earn a profit in the second year of operations3
FINANCIAL OUTLOOK – FINANCIAL HIGHLIGHTS
FINANCIAL OUTLOOK – RATIO ANALYSIS
2009 2010 2011 2012 2013Investment Utilization Ratio
Total Asset Turnover 1.19 2.04 2.43 2.82 3.56
Solvency Ratio
Debt to Equity 0.65 0.92 2.37 1.99 0.14
Profitability Ratios Return on Assets -36% -29% -26% 4% 42%Return on Equity -60% -56% -88% 11% 49%
FINANCIAL OUTLOOK – OTHER CONSIDERATIONS
Under the worst case scenario there will be additional cash requirements of $100,000 If this amount can not be injected to the business it will
not survive past 2011 You can finance equipment additions past the first year;
this is not in line with your goal to eliminate debt in 5 years
No additional cash requirements will be necessary under the base and best scenarios.
FINANCIAL OUTLOOK – CONCLUSIONS
The business is not likely to generate the desired returns
Very heavy cash drain May not be going concern under worst scenario
We recommend that you do not pursue the venture under the current plan
RECOMMENDATIONS Scale down initial operations to decrease
cash outlays Limit fitness staff at initial start-up Extra charge for special programs Charge for childcare services Explore eligibility for Government grants
CONCLUSION - RESPONDING TO CRITICAL SUCCESS FACTORS
Sales Volume• Partnership with Saskatoon Health Region • Partnership with Lululemon Athletica• Advertisement in local malls• Door-to-door brochure distribution• Website• Word-of-mouth
Internal Expertise• Sarah Feldman Fitness Centre Manager & Personal trainer •Anna Ringwald Fitness supervisor & Personal trainer• Qualified Child Services Manager Early Childhood Development Diploma• Training Programs
Specialty Program Offerings• Wide variety of classes including: - physical activity classes - mental well-being classes - emotional support classes - nutritional education classes - motherhood support classes
Quality & Variety of Equipment• Professional top-of-the line equipment• Wide variety of equipment from cardio to circuit machines to free weights and much more• Scheduled capital replacement schedule to ensure constant upkeep
CONCLUSION
We welcome any questions you may have