Prepared by:
Michael Macleod
Courtney Quinn
Amanda Roemer
Sheena DeVries
Executive Summary
 Fitness Facility
 Four full-time, one part-time employee
 Free weights, circuit training, yoga, and
specialty classes
 E3- closure
 Committed to functional training vs.
traditional
Management Team
 Michael Macleod – Finance
 Courtney Quinn – Accounting
 Amanda Roemer - Kinesiology
 Sheena DeVries - Marketing
Business Objectives
 Growth
Sales
Expansion
 Start up costs
Marketing: Product
 Dutch Dumbbells is a comprehensive
fitness facility
Our small business offers both equipment and
customer assistance
Classes for every level of fitness
Overall health conscious environment
Promotion
 Three main focuses:
Radio
Country 95.5 and The River 107.7
Newspaper
Lethbridge Herald and the Shopper
Coupons and Give-Away’s
Gold Mine Coupon Book
 And of course word of mouth
Placement
 Dutch Dumbbells will be located in the
vacant building where E3 Salon occupied.
 Our small business realizes the danger of
comparisons between the fitness facilities
 Commitment to health
Price
 Dutch Dumbbells is dedicated to providing
our customers with the lowest cost
possible
Per month fees are:
$35 membership fee to fitness facility
$15 optional classes fee
Drop-in fees are:
$10 for fitness facility
$8 per class
Customer Analysis
 Our target demographic is a person who is
dedicated to physical activity and health
 Demographic:
Males and Females
Ages 23-45
Average Income approximately $35,000 +
Dissatisfied with current fitness facilities and
looking for a comprehensive alternative
Competitors
 Our foremost competitors are the U of L
fitness centre and the Right Pace only
women’s centre.
 Our distinctive separator is our
comprehensive programs. Not only do we
allow individual use of machines and
services but also provide consultation
when needed.
Physical Facilities
 Floor Plan - 6600sq.ft.
3 main areas: fitness, classes, extra space
Rent out 3 massage rooms for $500/mo
Contract out 1 daycare room for $350/mo
 Building start-up costs = $51,097.50
 Minimizing risks
Financing
 Market Potential
$841,685
 Market Share
43.7%
 Potential Revenues
$367,816
Income Statement
2005
Revenues
2006
2007
2008
2009
$367,816.00
$404,597.60
$445,057.36
$489,563.10
$514,041.25
Child Care Rental
$4,200.00
$4,200.00
$4,200.00
$4,200.00
$4,200.00
Massage Therapist
Rental
$18,000.00
$18,000.00
$18,000.00
$18,000.00
$18,000.00
$390,016.00
$426,797.60
$467,257.36
$511,763.10
$536,241.25
Total Revenues
Expenses
Net Income
$391,351.98
-$1,335.98
$333,304.48
$93,493.12
$333,304.48
$333,304.48
$333,304.48
$133,952.88
$178,458.62
$202,936.77
Break Even Analysis
Data
Fixed cost
285754.48
Variable cost
Cost-volume analysis
0
Revenue
800000
35
$
600000
400000
200000
0
Results
0
Breakeven points
Volume Analysis @
Costs
5000 10000 15000 20000
Units
Units
8164
Dollars
$285,754.48
0
$285,754.48
Costs
Revenue
Cash flow Statement
2005
2006
2007
2008
2009
$5,664.02
$161,343.28
$160,031.68
$203,225.82
$209,936.77
Equity Investment
$550,000.00
$150,000.00
$150,000.00
$25,000.00
$25,000.00
Total Cash In Flows
$555,664.02
$311,343.28
$310,031.68
$228,225.82
$234,936.77
Cash Out Flows
$494,813.86
$292,264.48
$292,264.48
$292,264.48
$292,264.48
Net Cash Flows
$60,850.16
$19,078.80
$17,767.20
-$64,038.66
-$57,327.71
Cash In Flows
Personnel
 Administrative Structure
 Employee Recruitment/Training
 Personnel Policies
Legal Structure
(Incorporated)
Advantages
 Limited Liability
 Existence
 Capital
 Tax Advantages
 Credibility and
Prestige
Formalities
 Higher start-up Costs
 Maintaining Records
 Double Taxation
http://www.corporationcentre.ca/docen/home/faq.asp?id=inc#q5
Legal Requirements
 Dutch Dumbbells Inc.
 We will only operate in Alberta
 Licenses and permits = $221.98
 Insurance is $2000 per month
Location
 Specific Site:
#880 Heritage Heights Plaza West
Accessibility
 Proximity To Other Businesses
 Physical Characteristics
 Site Costs: (rent, utilities, licenses etc.)
$15,350.37/month or $184,204.48/year
Location
 Competition:
The University of Lethbridge
7500sq.ft.
The Right Pace
1000sq.ft.
Location
 Attitude of the Trading Area:
Chiropractic Clinic
Need for a fitness center
Landowner/Landlord open-minded
Previous Owners/Management
http://www.corporationcentre.ca/docen/home/faq.asp?id=inc#q5
Any Questions?