Ladies Only Fitness
Executive Summary
Opportunity
Problem
There should be a place where women can work out without worrying about behavior of men. Women know why.
Solution
Ladies Only Fitness’ focus is the urban professional woman who has a very active life and very little time to spend on fitness. We also focus on young mothers who are looking for a fitness environment that is focused on their unique needs.
Market
Mapleton is a city on the move. The population has grown by 10% each year for the past three years. The current population of Mapleton is 600,000.
Most importantly, the growth has been fueled by the increased employment in the city’s high-tech companies. This has attracted a type of professional that is the target customer for the Ladies Only Fitness. The women we are targeting are looking for a different type of fitness club experience. At Ladies Only Fitness, they will be the total focus of our staff.
Another target group is young mothers who are looking for a club that will fit their needs and keep their children close. Ladies Only Fitness has designed the facility so that the child care center can be seen by anyone working in the main exercise room. We believe that changes like that will be seen as welcome extras that will bring new members.
Competition
The key differentiator for us is the women-only plus childcare facilities on site. We compete against several gyms in the area, including franchises of 24-hour-fitness and the local downtown gym.
Why Us?
The competitive advantage of Ladies Only Fitness is the environment that is created in the facility. Women feel more relaxed and comfortable in a program that is focused solely on them. In addition, we have designed the childcare center to be visible from the main workout floor. A young mother can watch her child play in the center while working out.
Expectations
Forecast
As the highlights chart below shows, we believe we can launch successfully and pass the $1 million annual sales milestone by our third year.
Financial Highlights by Year
Financing Needed
Estimated Startup Expenses: $95,000
- Legal $1,500
- Website $1,000
- Insurance $500
- Rent $2,000
- Child Care Setup $10,000
- Leased Equipment $80,000
Assets: $65,000 in startup cash
Total financing: $160,000.
Funding plan: $100,000 in owner funding and a $60,000 business loan.
Opportunity
Problem & Solution
Problem Worth Solving
Many women want a gym for women only. And young mothers need that plus childcare.
Our Solution
Ladies Only Fitness is a women-only health club that creates a personalized environment for women to pursue their fitness goals. We have the best equipment and the best training program in this arena. We prepare our clients for success! We have the best weight-management program. Positive Lifestyle Systems is a truly responsible, effective, weight-management program. We offer this program with confidence. It is unbeatable.
Target Market
Market Size & Segments
Ladies Only Fitness will focus on two customer groups:
- Young urban professional women
- Young mothers with children (ages new born to three years of age).
Another target group is young mothers who are looking for a club that will fit their needs and keep their children close. Ladies Only Fitness has designed the facility so that the child care center can be seen by anyone working in the main exercise room. We believe that changes like that will be seen as welcome extras that will bring new members.
Competition
Current Alternatives
We have our gym offerings around town: Snap Fitness, 24-hour-Fitness, Crossfit, and so on. Memberships and features run in standard ranges.
Our Advantages
The competitive advantage of Ladies Only Fitness is the environment that is created in the facility. Women feel more relaxed and comfortable in a program that is focused solely on them. In addition, we have designed the childcare center to be visible from the main workout floor. A young mother can watch her child play in the center while working out.
Execution
Marketing & Sales
Marketing Plan
Mapleton is a city on the move. The population has grown by 10% each year for the past three years. The current population of Mapleton is 600,000.
Most importantly, the growth has been fueled by the increased employment in the city’s high-tech companies. This has attracted a type of professional that is the target customer for the Ladies Only Fitness. The women we are targeting are looking for a different type of fitness club experience. At Ladies Only Fitness, they will be the total focus of our staff.
Another target group is young mothers who are looking for a club that will fit their needs and keep their children close. Ladies Only Fitness has designed the facility so that the child care center can be seen by anyone working in the main exercise room. We believe that changes like that will be seen as welcome extras that will bring new members.
Market Segmentation
Ladies Only Fitness will focus on two customer groups:
- 12,000 Young urban professional women;
- 5,000 Young mothers with children (ages new born to three years of age).
Sales Plan
Ladies Only Fitness anticipates that sales will be slow for the first and second month of operation, due to our "first month free" promotion. After that point, sales will increase as new members pay for their membership fees.
Operations
Locations & Facilities
Ladies Only Fitness is located in the Southtowne Center in southwest Mapleton. The club occupies a 5,500 square foot storefront. The facility has one primary equipment room adjacent to the child care center. The club also has three exercise rooms. The facility can accommodate 110 people.
Milestones & Metrics
Milestones Table
| Milestone | Due Date | |
|---|---|---|
|
Initial launch
|
Jan 04, 2020 | |
|
Spring promotion
|
Mar 06, 2020 | |
|
Plan vs. actual review
|
Apr 19, 2020 | |
|
Summer promotion
|
June 05, 2020 |
Key Metrics
- Paying members
- Free trial members
- Conversion from free trial to paying %
- Facebook likes
- Visits per month per member
- Visits per month per free trial members
Company
Overview
Ownership & Structure
LLC
Ladies Only Fitness is co-owned by Joan Sullivan and Marge Williamson.
The start-up expenses for the Ladies Only Fitness is focused primarily on equipment and exercise surfaces for the classes. Joan Sullivan will invest $30,000. Marge Williamson will invest $70,000. In addition, club will secure a $60,000 long-term loan.
Team
Management Team
Joan Sullivan will be the operations manager and lead trainer for Ladies Only Fitness. Joan has been a fixture in the Mapleton fitness community for the past fifteen years. She has been the manager of both the Mapleton Athletic Club (three years) and the Maximum Fitness Club (four years).
Her reputation as an effective staff supervisor is excellent. At both the Athletic Club and Maximum, membership increased by 15% each year under Joan’s supervision.
Marge Williamson is a CPA with the firm of Smith, Jones, and Lawrence. Her primary responsibility will be to oversee accounts receivable and operational costs.
Personnel Table
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Lead Trainer | $48,000 | $48,960 | $49,939 |
| Childcare Staff (2.67) | $72,000 | $110,160 | $112,362 |
| Personal Trainers (3) | $76,800 | $117,504 | $159,804 |
| Receptionist | $33,600 | $34,272 | $34,957 |
| Totals | $230,400 | $310,896 | $357,062 |
Financial Plan
Forecast
Key Assumptions
We’re assuming the need will generate most of the sales and marketing power. And of course we are assuming nobody decides to compete directly against us in the local market.
Revenue by Month
Expenses by Month
Net Profit (or Loss) by Year
Financing
Use of Funds
Estimated Startup Expenses: $95,000
- Legal $1,500
- Website $1,000
- Insurance $500
- Rent $2,000
- Child Care Setup $10,000
- Leased Equipment $80,000
Assets: $65,000 in startup cash
Sources of Funds
Total financing: $160,000.
Funding plan: $100,000 in owner funding and a $60,000 business loan.
Statements
Projected Profit & Loss
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Revenue | $468,600 | $616,000 | $761,000 |
| Direct Costs | $37,488 | $49,280 | $60,880 |
| Gross Margin | $431,112 | $566,720 | $700,120 |
| Gross Margin % | 92% | 92% | 92% |
| Operating Expenses | |||
| Salaries & Wages | $230,400 | $310,896 | $357,062 |
| Employee Related Expenses | $46,080 | $62,179 | $71,413 |
| Marketing | $6,000 | $6,000 | $6,000 |
| Insurance | $2,760 | $2,760 | $2,760 |
| Utilities | $4,800 | $4,800 | $4,800 |
| Rent | $31,200 | $31,200 | $31,200 |
| Leased equipment | $18,000 | $18,000 | $18,000 |
| Total Operating Expenses | $339,240 | $435,835 | $491,235 |
| Operating Income | $91,872 | $130,885 | $208,885 |
| Interest Incurred | $2,754 | $2,200 | $1,618 |
| Depreciation and Amortization | |||
| Gain or Loss from Sale of Assets | |||
| Income Taxes | $0 | $0 | $0 |
| Total Expenses | $379,482 | $487,315 | $553,732 |
| Net Profit | $89,118 | $128,685 | $207,268 |
| Net Profit/Sales | 19% | 21% | 27% |
Projected Balance Sheet
| Starting Balances | 2020 | 2021 | 2022 | |
|---|---|---|---|---|
| Cash | $65,000 | $143,288 | $260,589 | $455,890 |
| Accounts Receivable | $0 | $0 | $0 | |
| Inventory | ||||
| Other Current Assets | ||||
| Total Current Assets | $65,000 | $143,288 | $260,589 | $455,890 |
| Long-Term Assets | ||||
| Accumulated Depreciation | ||||
| Total Long-Term Assets | ||||
| Total Assets | $65,000 | $143,288 | $260,589 | $455,890 |
| Accounts Payable | $0 | $0 | $0 | |
| Income Taxes Payable | $0 | $0 | $0 | |
| Sales Taxes Payable | $0 | $0 | $0 | |
| Short-Term Debt | $10,830 | $11,384 | $11,966 | $12,579 |
| Prepaid Revenue | ||||
| Total Current Liabilities | $10,830 | $11,384 | $11,966 | $12,579 |
| Long-Term Debt | $49,170 | $37,786 | $25,820 | $13,241 |
| Long-Term Liabilities | $49,170 | $37,786 | $25,820 | $13,241 |
| Total Liabilities | $60,000 | $49,170 | $37,786 | $25,820 |
| Paid-In Capital | $100,000 | $100,000 | $100,000 | $100,000 |
| Retained Earnings | ($95,000) | ($95,000) | ($5,882) | $122,803 |
| Earnings | $89,118 | $128,685 | $207,268 | |
| Total Owner’s Equity | $5,000 | $94,118 | $222,803 | $430,071 |
| Total Liabilities & Equity | $65,000 | $143,288 | $260,589 | $455,890 |
Projected Cash Flow Statement
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| Net Cash Flow from Operations | |||
| Net Profit | $89,118 | $128,685 | $207,268 |
| Depreciation & Amortization | |||
| Change in Accounts Receivable | $0 | $0 | $0 |
| Change in Inventory | |||
| Change in Accounts Payable | $0 | $0 | $0 |
| Change in Income Tax Payable | $0 | $0 | $0 |
| Change in Sales Tax Payable | $0 | $0 | $0 |
| Change in Prepaid Revenue | |||
| Net Cash Flow from Operations | $89,118 | $128,685 | $207,268 |
| Investing & Financing | |||
| Assets Purchased or Sold | |||
| Net Cash from Investing | |||
| Investments Received | |||
| Dividends & Distributions | |||
| Change in Short-Term Debt | $554 | $582 | $612 |
| Change in Long-Term Debt | ($11,384) | ($11,966) | ($12,579) |
| Net Cash from Financing | ($10,830) | ($11,384) | ($11,966) |
| Cash at Beginning of Period | $65,000 | $143,288 | $260,589 |
| Net Change in Cash | $78,288 | $117,301 | $195,302 |
| Cash at End of Period | $143,288 | $260,589 | $455,890 |
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