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Pinnacle Fitness & Rehab Business Plan

Members: Barker, Gorman, Hudzik, Jiwanmall, Jones, Kostos, Rafter

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Executive Summary

ObjectivesMission StatementKeys to Success

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Objectives• Become one of the premier centers for physical

fitness• Trainers and physical therapist with specialized

skills• Provide setting that offers Stress Relief• Offer special needs programs• Achieve long-term success through good

management discipline & financial results• Exceed customer expectations

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Mission Statement• Outperform all other health & fitness centers with

unique offering• Offer tiered pricing to fit target markets

affordability• Differentiated facility do to partnerships• Diverse attraction to all types of customers• Coaching and counseling from experts

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Keys to Success• Attract & retain more upscale

clients• Retain & attract highly trained

personnel• Solidify & retain partnerships• Grow partnerships in targeted

areas• Restore the health & well-being of

clients

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Keys To Success-Cont’d

• Outperform competition-focus on clients• Demonstrate management expertise• Demonstrate clear profit• Business model outperforms industry• Attract interest of Venture Capitalists

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Company Summary

OwnershipStart up Summary

Location and Facilities

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Ownership

• Owned & operated by seven founders

• Limited Liability partnership• Capital all self-funded

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Start-up Summary

• Pooled Capital• Significant upside potential to

outperform traditional centers• Per capita income extremely high• Differentiated services• Lack of local competition

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Location & Facilities

• Ideal location and upscale market• Affordable rates on real estate• Easy access public transportation• State-of-the-art facilities and apparatus• Appealing Aesthetics

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Products & Services

Cardiovascular TrainingWeight Training

Rehabilitation Services

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Cardio Theatre

TreadmillsElliptical Machines

Stair ClimbersStationary Bikes

                                        

     

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Weight Training

Free Weight RoomCybex Circuit

Training

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Fitness ClassesSpinning

Step AerobicsTae BoYoga

Pilates

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Certified Personal Trainers

Weight ManagementStrength TrainingSports Training

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Rehabilitation Services

Physical TherapyOccupational Therapy

Sports Injury Rehabilitation

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• Neck /Back Pain • Headaches

• Fibromyalgia

• Temporomandibular Joint Disorders (TMJ)

• Post Surgical Rehabilitation • Home Health

• Neurological/ Neuromuscular Rehabilitation

• Wound care

Physical Therapy

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• Hand Therapy • Heart Disease & Diabetes • Work Injury Management • Driver Assessment • Burn Rehabilitation • Neurological Rehabilitation • Pediatric Rehabilitation

• Edema Management • Carpal Tunnel Syndrome

Occupational Therapy

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• Advanced Strengthening/ Conditioning • Motion Analysis • On-site Game Coverage • Training Level Assessments

Sports Injury Services

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• Clean locker room with private showers

• “Child Learning Center” - babysitting services

• Juice Bar and Energy Supplements– Water, Gatorade, Designer Whey Protein Shakes

– Clif, Powerbar, EAS, and Designer Whey energy and protein bars

Other Services

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Demographic Analysis

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Camden County Population Growth

• 5.0% population increase since 2000• Current population over 445,000

people• Population projected to exceed

500,000 by 2010

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Voorhees Residential Development Plan

• 6 year, $42.5 million budget for building and development

• increase in disposable income

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Close Proximity/ Convenience

• less than 30 minute drive from Philadelphia

• less than 20 minutes form other affluent South Jersey towns

• expect some clientele from surrounding areas such as Jersey Shore, Northern Delaware, Philadelphia, Trenton/Princeton metro areas

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Income Statistics

• Current HUD median income is $68,800 for Camden County

• Previous Gym establishments (Bally’s, World Gym) shown profit increase when located in high median income areas.

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N

CAMDEN COUNTY37 Municipalities

Size: 222.3 sq. milesPopulation: 506,420Households: 178,758

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•MARKET RESEARCHDemographics Camden County Greater Philadelphia +

So. NJCaucasian 76.6% 73.3%African American 16.2% 19.2%Hispanic 7.2% 4.4%Other 7.1% 3.1%

Male 48.1% 48%Female 52.3% 52%

IncomePer Capita personal income $23,745 $23,948Median Household Income $ 68,800 n/a

EducationBachelor’s Degree 21% 27.6%*Graduate Degree 7% ---

*number is inclusive of graduate degrees

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COMPETITION

•Planet Fitness•Cherry Hill Health and Racquet•Philadelphia Sports Clubs•World Gym•Fit Quest•Curves for Women

• Lucille Roberts Health Club• The Firm• Fit 21• Velocity Sports Performance• Super Fitness

• LA Fitness Sports Clubs

* Competition within a ten mile radius of Voorhees Town Center

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MARKETING GOALSThe objective of the marketing plan for the business is to generate awareness of,

and drive membership enrollments to, Pinnacle Fitness & Rehab.

Taking that into consideration, our goals are thus:

– Enroll “X number” of people (combination of individual memberships, couples and families) pre-opening

– Enroll “X number” of people within the first three months of full-time operation and “X number” of people in our first 12-months of operation

– Have an enrollment base of “X number” of people at the end of year 1– Maintain a membership turnover rate of less then or equal to the national average of

25%– increase brand awareness, and become known as the experts, when the consumer

thinks about establishing and following a healthy lifestyle which includes exercise and healthy nutritional habits

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TARGET MARKET•The core target market for Pinnacle Fitness & Rehab can be defined as:

– Primary -- • Adults 35-55

– This group is made up of fitness enthusiasts, specifically those who have exercised or are currently exercising as part of their lifestyles; they are predominantly married, college educated and nearly all well established financially

– Secondary --• Adults 25-34

•The core target audience will be based in Camden County and predominantly within a 10-15 mile driving radius of the facility, thus ensuring that they can drive, from home, within 15-20 minutes maximum.

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PROGRAM COMMUNICATION PLATFORM• Building the bridge between the needs/wants/desires of the consumer and the

features, attributes and benefits of the brand (Brand Essence)

Consumer

Needs/Wants/Desires

•Exceptional service•Quality programs meeting their

health needs•Big gym attributes with small gym

feel and service•Family•Friends

•Positive Experiences

Brand/Property

Features/Attributes/Benefits/Value

•Specialists in exercise physiology•Multiple membership plans and

benefits•Industry and market leader

•Proactive in developing better service models to benefit the

consumer•Family, Service, and Community

Oriented•True partners with members

•Cutting Edge Technology/Programming

Communication Platform

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“Putting You First”

Sponsorships/

Partnerships

Direct to consumer

Television Internet Print

Charitable Endeavors Spokespeop

le

Branding

Radio

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MEDIA/PROMOTIONAL CAMPAIGN HIGHLIGHTS•PRE-OPENING

– Sign-Up Special:• $0 Down Enrollment Fee• Charter Memberships

•DIRECT MAIL CAMPAIGN– A targeted brochure will be created which will serve two purposes:

• Create greater awareness of the facility• Serve as a way for consumers to join early• A comprehensive group of lists will used in the direct mail campaign. A

sampling of possible lists could include, but is not limited to:– Men’s Health Magazine– GQ Magazine– Comcast Cable Subscribers (Comcast providing cable to facility TV’s)– Men’s Fitness Magazine– Shape Magazine

• Through a partnership with University Hospital Pinnacle will distribute over 150,000 pieces of mail through direct mail insertions

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MEDIA/PROMOTIONAL CAMPAIGN•LOCAL PRINT -- four weeks prior to opening

The Courier-Post The Philadelphia InquirerPhiladelphia Daily News Philadelphia Business JournalPhiladelphia On-Line Philadelphia WeeklyBurlington Country Times Philadelphia Magazine

•RADIO – One week prior, and first week of operationAM StationsWIP – 610 (Sports) KYW – 1060 (News/Talk)

FM StationsWXPN – 88.5 (UPenn) WMMR – 93.3 (Rock)WYSP – 94.1 (Active Rock) WPLY – 100.3 (Alternative Rock)WBEB – 101.1 (Soft AC) WIOZ – 102 (Top 40)

WMGK – 102.9 (Classic Rock) WJJZ – 106.1 (Jazz)

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MEDIA/PROMOTIONAL CAMPAIGN•LOCAL TELEVISION -- two weeks prior to opening

– A targeted television campaign may be initiated using a variety of Philadelphia area outlets including, but not limited to:

• over-air broadcast affiliates such as ABC, NBC, and CBS• cable based stations showing a strength in key

demographics, i.e. – CNN, Headline News, ESPN, History Channel, A&E, HGTV, Discovery, and CNBC

•OUTDOOR ADVERTISING -- one month prior to opening– A targeted outdoor advertising campaign will be

initiated using a variety of area companies and locations in and around the Camden County area

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MEDIA/PROMOTIONAL CAMPAIGN

•Pre-Opening Grassroots– Using an extensive series of lists we will distribute collateral pieces

throughout Camden County:• Facility Brochures -- to be displayed locally with retail partners:

– Sporting Goods retailers– Health food retailers– Supermarkets– Select area schools – middle and high school levels

• Counter Cards -- coupled with the brochures, counter cards will be distributed to local businesses throughout the Camden County area (see above)

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Post-Opening Grassroots– Internet

• Pinnacle Fitness & Rehab will aggressively pursue any and all internet based opportunities, i.e.-- look to partner with participating media outlets to receive additional placement on their existing web sites

• Pinnacle Fitness & Rehab will also develop the Official Pinnacle Fitness & Rehab site. The site will serve as the “Official” site for the facility and provide all key information regarding the facility, including membership costs, fitness classes, nutritional information, etc.

• Pinnacle Fitness & Rehab will also investigate the possibility of developing an internet based promotion geared towards consumers during the first month of opening

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Management Overview

• Management Summary• Motto and Motives• Board of Directors• Responsibilities

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Organizational Structure

• General Manager

• Core Fitness Manager

• Rehab Manager• Trainers• Other Staff

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Future Products and ServicesVentures to be explored post 2011:

• Racquet Ball Courts• State of the are basketball courts for youth

basketball league games• Establishment of a sauna• Completely self provided rehabilitation services ,

(introduction of Pinnacle’s own rehabilitation trainers)

• Addition of a swimming pool to Pinnacle’s rehabilitation facilities

• Expansion of the building including a café

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S.W.O.T.

Strengths, Weaknesses, Opportunities, and Threats

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Strengths

• differentiation from other gyms & health clubs

• use of physical therapists and rehabilitation center

• highly trained fitness specialist• highly qualified rehabilitation specialists• all in a safe suburban location

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Weaknesses

• name is unknown to the local clientele

• more expensive than competition• currently not equipped with pool or

court facilities

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Opportunities

• take advantage of need for facility with rehabilitation health program

• increasing population• county budget put aside for residential

development• high per-capita income• attract people who work in the area but do

not necessarily live there

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Threats

• other accessible gyms in area• new to area, no established brand

equity• the economy

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Financials

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Milestones Date

Begin Lease Payments 1/1/2006

Begin Payment of Management 1/1/2006

Begin Marketing Campaign 1/1/2006

Open Doors for Business 3/1/2006

Reach Positive Cash Flow 8/1/2006

Begin Loan Repayment 1/1/2007

Pay Off Loan Principle 12/31/2013

   

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Projected MembershipMembers Per Month

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Discussion