Chad Sexington’s Health &
Fitness Center
Prepared by: Lorraine Harty
Clarisse Fan
Jesse Varner
Chris Harker
Mark Markovik
Jim Craven
2016-07-17
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Agenda
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Executive Summary
Management Team
Business Objective
Selection of Location
Physical Facilities
Financing
Personnel
Marketing Approach
Conclusion
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Executive Summary
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New Health and Fitness Center
Located in South Lethbridge
Employing 20 Full/ Part employees
Will be managed by Chad Sexington
Provide a friendly weight loss environment
Targeting families, non-traditional gym users,
and the over-weight
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Management Team
Before
2016-07-17
• Chad Sexington
– was overweight as a
child
– has an MBA from
Berkley
– would like to help
others who are like he
once was
– independently
wealthy
– moved to Lethbridge
because of his wife
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After
4
Agenda
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Executive Summary
Management Team
Business Objective
Selection of Location
Physical Facilities
Financing
Personnel
Marketing Approach
Conclusion
2016-07-17
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Business Objective
• Short-term goal (1-2 yrs)
– determine method of financing
– obtain a maximum of 600 members
• Medium-term goal (3-5 yrs)
– increase market share
– obtain positive returns on investment (ROI)
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Business Objective, Cont’d
• Long-term goal (5-10 yrs)
– achieve at least 10% ROI
– future expansion
– 1,000 -1,500 members
• Long-term Real Estate investment
– appreciable land
– prime location
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Location - Trading Area and
Population for Lethbridge and Area
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http://www.ecdevlethbridge.com/lifestyle/recreation.asp
Location - City of Lethbridge
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Specific Site Location - Fairmont Blvd. S./
Mayor Magrath Dr.
N
W
E
S
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Accessibility
• Accessible from Fairmont Blvd off of
Mayor Magrath Drive
• High traffic flow
– Wal-Mart
– Costco
– Safeway
– Wholesale Sports
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Proximity to Other
Businesses
• Closest gym located is Gold’s Gym
– Competitive Bodybuilders
– Professional weight lifters
– Younger clientele
 Outward appearance concerns
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Physical Characteristics of the Site
• The gym will require:
– 1 acre (43,560 square feet) of
undeveloped land (Fairmont Business Park)
– Opening onto Fairway St. South
– Large parking lot
– Equipment
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Cost of Land & Building
Cost Per
Sq/Ft.
Square
Feet
Total
Cost
Cost of Land
$15
43,560
$653,400.00
Cost of Building
$175
8,000
$1,400,000.00
Building Needs
$2,053,400.00
Total Cost
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Cost of Equipment
Equipment Needs:
Units
Price
Total
Treadmills
8.00
$
2,500.00
$
20,000.00
Elipticals
8.00
$
2,500.00
$
20,000.00
Bikes
10.00
$
1,200.00
$
12,000.00
Stair Climbers
8.00
$
1,200.00
$
9,600.00
Benches
10.00
$
500.00
$
5,000.00
Hammer Strength
10.00
$
2,500.00
$
25,000.00
Universal Cable
2.00
$
5,000.00
$
10,000.00
Dumbbells
2.00
$
5,000.00
$
10,000.00
Weight
5,000.00
$
1.50
$
7,500.00
Cages
3.00
$
1,500.00
$
4,500.00
$
8,000.00
Barbells
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Cost of Equipment (cont.)
Equipment Needs:
Units
Washing Machine
1.00
$
5,000.00
$
5,000.00
Dryer
1.00
$
5,000.00
$
5,000.00
Linen
$
5,000.00
Office Equipment
$
8,500.00
Miscellaneous
$
45,000.00
Total Equipment Needed
$
200,100.00
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Price
Total
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Initial Cost Requirements
• Initial cost requirements for a Gold's
Gym:
– $500,000 to $2,400,000 USD
– $25,000 USD Franchising fee
 the facility size
 area of the market
 pre-opening expenses
 inventory
 fitness equipment
 signage
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(www.goldsgym.com)
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Physical Facilities (outside) W
S
Property Layout – Parking Lot and Building
43,560 sq. ft.
N
E
360 ft.
ENTRANCE
80 ft.
121 ft.
NAME OF
GYM
PARKING
LOT
100 ft.
SIDEWALK
2016-07-17
250 ft.
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Physical Facilities
(inside – level 1)
W
S
N
E
Building Layout – 8000 sq. ft.
100 ft.
Strength
Cardiovascular
Equipment
Equipment
Specialist
Stairway
Showers
Men’s
Change
Rooms
Lady's
Change
Rooms
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Sauna
Training
Room #1
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Sauna
Training
Room #2
Training
Room #4
80 ft.
Entrance
Help Desk
Stretching Area
Maintenance/
Janitorial
Room
Supplement
and
Specialty
Store
Storage
and
Laundry
Training
Room #3
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Physical Facilities
(inside – level 2)
Building Layout – 8000 sq. ft.
Lunchroom
Offices
S
N
E
100 ft.
Massage
Therapy/
Acupuncture
Physical
Therapy
80 ft.
Stairway
Hallway
Nutritionist/
Dietician
Day Care
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W
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Specialist
Medical
Assessments
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Agenda
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Executive Summary
Management Team
Business Objective
Selection of Location
Physical Facilities
Financing
Personnel
Marketing Approach
Conclusion
2016-07-17
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Financing
• Pro-Forma Income Projection
– 2006 – 2010 sensitivity analysis
– Pro-forma projections
• Pro-Forma Cash Flow Projection
– 2006 – 2010 sensitivity analysis
– Pro-Forma projections
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Financing
• Market Potential
= $ 6,014,721.00
• Market Share
= 10.57%
• We chose to incorporate primarily:
– Insulate ourselves from liabilities
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Personnel
• Organizational Chart
Mr. Sexington
Book Keeper
Membership
Coordinators
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Trainers and
Instructors
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Counter
Representatives
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Personnel
• Administrative Structure
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10 part-time trainers/fitness instructors
5 part-time front desk employees
3 part-time membership coordinators
1 full-time bookkeeper
1 general manager
• Operating Hours
– 6:00 a.m. ~ 11:00 p.m. daily
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Agenda
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•
•
•
Executive Summary
Management Team
Business Objective
Selection of Location
Physical Facilities
Financing
Personnel
Marketing Approach
Conclusion
2016-07-17
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Market Product Focus
• Target
Market
– overweight or obese people
– people who have not used gyms before
– had negative experience with gyms in the past
– family oriented
• Geographic
Segmentation
– Lethbridge and surrounding trade areas
• Demographic
Segmentation
– any gender at any age
– postsecondary or above educated people
– mainly those in the middle to high income bracket
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Market Product Focus
• Psychographic Segmentation
– Sedentary lifestyle
– Personality
• achievement-oriented
• not active
• Behavioural Segmentation
– Benefit Sought
• friendly, non-threatening and professional atmosphere
– User Status
• first time user and regular user
– Loyalty
• strong
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Market Product Focus
• Purchase Characteristics
– what:
• quality of programs, facilities and staff
– when:
• before summer or after Christmas time
– why:
• looking for fun and enjoyable weight loss
environment as part of maintaining a healthy
lifestyle
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SWOT Analysis
Strengths
Weaknesses
• unique, professional and high
quality family-orientated fitness
center
• qualified instructors offering a
variety of group classes
• medical assessment
• lack of reputation
• market saturation
• uncertainty of the target
market
• difficult to find a
profitability model
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SWOT Analysis
Opportunities
Threats
• new exciting fitness center
• little or no competition
• provide new equipment and
educated staff and instructors
• new market attract new
competitors
• technology changes
rapidly
• consumers refuse to
change
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Marketing Mix
Price
Place
•$55/month per person •Our Own Space
•South End of Lethbridge
•$7/use per person
•Lease Space Out
Product/Service
Promotion
•Fitness Center
•Offer variety of services and
equipment in one convenient
location
•Advertising
•Partnership with healthy
weight loss centers and senior
centers
•School Workshops
•Word of Mouth
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Conclusion
• Not just a gym – whole family fitness
• Long term real estate investment
• Expected profit after 3 years
• Chad’s passion and Lethbridge’s
need for all encompassing, one stop
health center will ensure the success
of this venture
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