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
INTRODUCTION - B
ACKGROUND 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 – I
NDUSTRY
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 noncost factors)
Source: www.sreda.com
INTRODUCTION – C
Society’s focus
on Healthy and
Active
Lifestyles
APITALIZING ON
OPPORTUNITY
Saskatoon’s
Economic
Boom
No fitness
facilities
specializing in
Pre and
Postnatal
women’s health
Promising Business Opportunity
INTRODUCTION – M
Mission
ISSION, VISION, &
CORE VALUES
“To facilitate fun and fitness for life for the women of
Saskatoon”
Vision
“Promoting balanced, healthy, active lifestyles among the
women of today to achieve a state of well-being in all
stages of life”
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 – C
RITICAL SUCCESS FACTORS
Sales
Volume
Internal
Expertise
Specialty
Program
Offerings
Quality
and
Variety of
Equipment
THE MARKETING PLAN – P
RODUCT
“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 – P
RODUCT
 Specialty Programs
 Pre and Postnatal fitness programs
 In partnership with the Saskatoon Health Region
Personal Fitness Training
Yoga and Pilates
Mental well-being seminars
Step Ahead Dance Classes
THE MARKETING PLAN – P
 On-site
RODUCT
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 – P
LACE
Located

Locatedin
instrip
the Lakewood
mall next to
area
of Saskatoon
Jugo
Juice and in vicinity of:
 Shoppers
 Affluent
Drug Mart
new development
 Hair
 and
Other
tanning
affluent
salons
neighboring
 Medical
developments
and dental
include:
clinics
 Extra Foods
 Lakeridge
 Blockbuster
 Lakeview
Video
 Briarwood
 Stoneridge
 Total population of area and
Lakewood
neighboring areas of 17,110
people
Venus
Fitness
THE MARKETING PLAN – P
RICE
 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
Prices shown are per month except the day pass
THE MARKETING PLAN – P
ROMOTION
 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 – C
OMPETITIVE
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 – O
RGANIZATIONAL
CHART
Fitness Centre
Manager/
Personal Trainer
Child Services
Supervisor
Fitness Supervisor/
Personal Trainer
Child Services
Staff
Fitness
Staff
OPERATIONS - S
TART-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 – S
PECIALTY
PROGRAM OFFERINGS
OPERATIONS - S
TART-UP PROJECT
PLAN
Weekly Schedule for Multi-Purpose Room - January - April 2009
OPERATIONS – C
APITAL 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
Totals
$ 250,408 $
-
62,540 $
-
36,384
12,000
$
59,866
-
$
47,866
122,000
$
457,063
OPERATIONS – O
Operating expenses
PERATING 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
3,000
3,090
3,183
3,278
3,377
223,590
254,591
285,591
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
650
670
690
710
732
11,656
9,796
7,793
5,633
3,306
Insurance
Payroll
Sub - contractors
Bank charges
Interest on long term debt
316,591
347,592
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
44,182
51,073
51,355
53,877
55,895
Depreciation
TOTALS
$
460,086 $
516,824
$
555,832
$
592,650
$
629,017
OPERATIONS – W

ORKING 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 – Q
UALITY
CONTROL

Expertise, ongoing
development and training

Strategic Partnerships

Safety control

Monitoring of customer
satisfaction

Review of performance
HUMAN RESOURCES – J
OB
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 – T
RAINING
 Training of fitness staff
 Up to two weeks of internal training
 Professional Development
 $500 annually for Personal Trainers
HUMAN RESOURCES – L
ABOUR COSTS
 Start-Up
 Approximately $225,000
 At Full Capacity
 Approximately $300,000
 $350,000 at 2013 adjusted for 3% inflation
HUMAN RESOURCES – S
TAFFING DIAGRAM – START-UP
HUMAN RESOURCES – S
TAFFING DIAGRAM – FULL CAPACITY
HUMAN RESOURCES – H
UMAN
 An environment of support
 Development of staff personal fitness programs
 Opportunities to attend classes and seminars
 Child care for staff members
RESOURCES STRATEGY
FINANCIAL OUTLOOK – F
INANCIAL
GOALS
To earn a 20% return from Venus Fitness Centre
To retire all long term debt within 5 years
To earn a profit in the second year of operations
FINANCIAL OUTLOOK – F
INANCIAL HIGHLIGHTS
FINANCIAL OUTLOOK – R
ATIO
ANALYSIS
2009
2010
2011
2012
2013
1.19
2.04
2.43
2.82
3.56
0.65
0.92
2.37
1.99
0.14
Return on Assets
-36%
-29%
-26%
4%
42%
Return on Equity
-60%
-56%
-88%
11%
49%
Investment Utilization Ratio
Total Asset
Turnover
Solvency Ratio
Debt to Equity
Profitability Ratios
FINANCIAL OUTLOOK – O

THER
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 – C
ONCLUSIONS
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 - R
ESPONDING TO
CRITICAL SUCCESS FACTORS
Sales Volume
Internal Expertise
• Partnership with Saskatoon Health Region
• Partnership with Lululemon Athletica
• Advertisement in local malls
• Door-to-door brochure distribution
• Website
• Word-of-mouth
• 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
Quality & Variety of Equipment
• Wide variety of classes including:
- physical activity classes
- mental well-being classes
- emotional support classes
- nutritional education classes
- motherhood support classes
• 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