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

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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