December
Prepared for Smart Fitness
Prepared by: Louis Thevenot and Rayleine Seymour
COMM 447
5
Table of Contents
EXECUTIVE SUMMARY ...................................................................................................................... I
1.0 INTRODUCTION ............................................................................................................................. 1
1.1 MISSION STATEMENT .......................................................................................................................................1
1.2 GOALS AND OBJECTIVES...................................................................................................................................1
1.3 VISION .................................................................................................................................................................1
1.4 INDUSTRY OVERVIEW ......................................................................................................................................2
2.0 OPERATIONS PLAN .......................................................................................................................... 2
2.1 SITE PLAN ..........................................................................................................................................................2
2.2 BUILDING AND FLOOR PLAN ...........................................................................................................................3
2.3 AVERAGE DAY OPERATIONS ...........................................................................................................................3
2.4 SERVICE PROVIDERS .........................................................................................................................................4
2.5 CAPITAL BUDGET ..............................................................................................................................................4
2.6 OPERATING EXPENSES .....................................................................................................................................5
3.0 HUMAN RESOURCE PLAN............................................................................................................... 6
3.1 ORGANIZATIONAL STRUCTURE.......................................................................................................................6
3.2 JOB DESCRIPTIONS AND SALARY COSTS ........................................................................................................6
3.2.1 Manager .......................................................................................................................................................... 6
3.2.2 Physiotherapist ............................................................................................................................................ 8
3.2.3 Fitness Center Staff..................................................................................................................................... 9
3.2.4 Salary & Wage Costs ................................................................................................................................10
4.0 MARKETING PLAN ......................................................................................................................... 10
4.1 MARKETING MIX ............................................................................................................................................ 10
4.1.1 Services ..........................................................................................................................................................10
4.1.2 Place ................................................................................................................................................................11
4.1.3 Price.................................................................................................................................................................11
4.1.4 Promotion .....................................................................................................................................................13
4.2 MARKETING EXPENSES ................................................................................................................................. 15
5.0 FINANCIAL PLAN ............................................................................................................................ 16
5.1 INCOME STATEMENT ..................................................................................................................................... 16
5.2 BALANCE SHEET............................................................................................................................................. 16
5.3 FINANCIAL ANALYSIS .................................................................................................................................... 17
5.3.1 Internal Rate of Return ..........................................................................................................................17
5.3.2 Critical Variables .......................................................................................................................................17
5.3.3 Break Even Analysis .................................................................................................................................17
5.4 DIVIDEND POLICY .......................................................................................................................................... 18
5.4.1 Owner Compensation ..............................................................................................................................18
5.4.2 Investment Payback .................................................................................................................................19
6.0 SUMMARY ......................................................................................................................................... 19
WORKS CITED ........................................................................................................................................ 19
Executive Summary
Our goal is to raise the required debt and personal equity to open up Smart Fitness. This
facility will be located in Delisle, Saskatchewan where we will provide a full service
gym, dry sauna, and physiotherapist services. This location is consistently growing and
will attract many different customers from surrounding communities. A 3000 square foot
gym will financed and set up to accommodate a managers office, physiotherapist office,
infrared sauna, washrooms and showers, exercising room, cardio machines, weight
training and free weights.
This location will be right along highway number 7, getting great highway frontage. The
gyms operating hours are 24/7 and a physiotherapist is available Monday through Friday,
except for statutory holidays. When looking at Smart Fitness’s memberships and
physiotherapist sessions, they are all competitively priced compared to their competitors
as outlined in the report.
The key critical success factors for Smart Fitness in Saskatoon are:

Convenience/Location

Sales volumes, specifically physiotherapist sessions

Quality service and variety of services
This location will have three shareholders, including the manager, physiotherapist and a
silent partner. Of these three individual, the manager and physiotherapist will be working
fulltime hours, creating a supportive experience for our clients.
Financial results are highlighted by the following:

The base case estimates a 49.1% internal rate of return (IRR).

Positive working capital and positive net income throughout our 5 year projection.
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1.0 Introduction
With the increasing desire to be fit, healthy and stay in shape, capitalizing on Smart
Fitness in Delisle, SK, is vital. Smart Fitness offers a variety of services including
physiotherapist sessions, a full service gym and a dry sauna. Having a variety of
services is crucial to success, especially in a smaller, yet growing community like
Delisle. There will be three shareholders acting on behalf of Smart Fitness, including
the manager, physiotherapist and a silent partner. Each shareholder will be included
in the shareholder agreement and contribute a third of the required equity to start
up the company.
1.1 Mission Statement
Smart Fitness, considers it our mission to enhance the quality of life through
physical fitness, by providing facilities, programs and instruction to individuals to
help build a routine, recover and relax.
1.2 Goals and Objectives
The goals and objectives of Smart Fitness include the following:
Short term:

To be recognized as a convenient location, which enhances your life in a
friendly, knowledgeable environment.
Medium term:

Achieve a 20% ROI within the couple first year of operations.
Long-term:

Obtain 100+ gym members by the end of year 3.

Supply physiotherapy services to 3,900 customers per year, by year 4.
1.3 Vision
Our vision is to be a proactive team with a positive attitude to deal with varying
issues in a timely and competent manner.
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1.4 Industry Overview
When looking at the level of physical activity in Canada, 54% were active, a 2%
increase from 2005 (Employment and Social Development Canada, 2014). Showing
there is a need for more gym facilities. Currently there is no gym, physiotherapist, or
infrared sauna within 40kms of Delisle. Therefore opening up a new market to
target the 3600 individuals in Delisle and the surrounding area (City Data, 2014).
The potential hurdle that Smart Fitness faces is capturing enough individuals to
ensure the business is successful. Even though Saskatoon is over 40km away, some
individuals continue to work in Saskatoon and may go to the gym, physiotherapist,
or sauna, before or after work at the same locations they have always gone to.
However, with our one stop location - with three services under one roof that is
close to home, we intend to change their mindset.
2.0 Operations Plan
2.1 Site Plan
Smart Fitness will be located in Delisle, Saskatchewan, where there are currently no
other well-being centers within 40kms. The exact location is 302 2nd St E Delisle, SK
along highway number seven. This location has great highway frontage, is on .76
acres of land, and the building will be 3000 square feet. Figure 2.1 shows the exact
location of Smart Fitness in Delisle. This is a growing community and the .76 acres of
land is plenty of space for Smart Fitness.
Figure 2.1
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2.2 Building and Floor Plan
The floor plan below (figure 2.2) shows how smart fitness will be laid out. There will
be 3000 square feet across one level, with two offices, two change rooms with
lockers and bathrooms attaching to the infrared sauna. The two offices are for the
manager’s office/ staff meeting area and then the physiotherapist office. Smart
Fitness also has an exercising room, where you can stretch or join in on the team
exercising.
Figure 2.2
2.3 Average Day Operations
Smart Fitness is a twenty-four hour gym, however, has staffed hours Monday
through Friday 8am - 6pm and is open 9am-6pm on Saturdays. Smart Fitness will
not be staffed on Statutory Holidays but members will still have access to the facility
with their 24/7 gym pass. There are no direct competitors in Delisle, allowing
Smart Fitness to create their own hours, not basing it on competitors to match.
All first time members will receive a free two-week membership, then they will be
obligated to sign a one year contract. With signing the contract, classes, infrared
sauna and a 10% discount on physiotherapist sessions will be included.
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2.4 Service Providers
Smart Fitness will use Flaman Fitness to provide any major servicing, repairs, or
supply parts for any major breakdowns of fitness equipment. The owners/staff of
Smart Fitness will do any minor repairs to equipment.
2.5 Capital Budget
Since Smart Fitness does not have the option of using an existing structure in the
town of Delisle, the startup costs are higher because land must be purchased and a
building must be built.
The building costs were estimated by talking with a business owner who recently
(within the last two years) had a similar style and size building constructed in an
industrial area of Saskatoon. Con-Tech General Contractors in Saskatoon also
confirmed this cost estimate to be accurate.
In an effort to cut down some startup costs, Smart Fitness will purchase most of its
equipment used. This does not mean that the quality of equipment will be sub-par,
only great condition, mechanically sound units will be purchased after being
inspected and tested by Smart Fitness management. The equipment will be sourced
through Kijiji, contacting other gyms that are replacing their units, and through
Flaman Fitness.
The signage will be made and installed by Seventy-Seven Signs based out of
Saskatoon.
Table 2.5
Capital Budget
2015
Land
$239,000
Building
$500,000
Landscaping
10,000
4
Equipment
22,000
Signage
5,000
Total
$776,000
To hedge against any unforeseen costs and to create a small cash cushion, $800,000
dollars will be raised through a mixture of debt and equity to cover the startup costs
for this venture.
2.6 Operating Expenses
Operating expenses are quite stable over the five-year projection of the base case.
The only changes will be to accommodate for inflation and capital cost allowances
and debt interest. For a more detailed breakdown of operating expenses see table
2.6.
Table 2.6
Operating Expenses
2015
Accounting & Legal
2,000
Advertising
1,000
General Supplies
2,400
Insurance
2,500
Property Taxes
3,000
Utilities
12,000
Repair & Maintenance
2,400
Salary & Wages
118,854
Employee Benefits
16,592
Misc. Variable Cost % Sales
1,116
Capital Cost Allowance
15,400
Debt Interest
35,000
Total Operating Expenses
212,262
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3.0 Human Resource Plan
3.1 Organizational Structure
When analyzing Smart Fitness, it is suggested to only have two employees, as the
company is just starting up and there is enough, but not too much work to handle
for two people. The two employee needed are the manager and the physiotherapist
both working fulltime hours. On top of this, the company will have a silent
shareholder. There will be three shareholder representing Smart Fitness, the
manager, physiotherapist and the silent partner, each contributing $100,000 each.
Our strategy for attracting employees is free monthly gym memberships, as well as a
yearly bonus. The size of this bonus will be calculated as a percentage of the year’s
retained earnings, given that the retained earnings are above a yet to be specified
level, and will be based on seniority and performance.
3.2 Job Descriptions and Salary Costs
3.2.1 Manager
The manager will be in charge of many challenging, but fun job duties while
overseeing operations at Smart Fitness. The suitable candidate should have a
Bachelor of Commerce Degree and be a Certified Personal Trainer. The primary
responsibilities are listed below:
Daily Responsibilities (9am-6pm; Wednesday, Friday and Saturday and 12pm-8pm;
Tuesday and Thursday):

Overseeing general operations.

Signing up individuals for memberships, giving them a tour and brief
information sessions on the equipment.

Being a team player, and motivational to the team and clients.

Analyzing and recording transactions.

Teaching two exercising classes a day, alternating what types of classes,
including a zumba, sculpt, yoga, core and a less intense work out designed for
beginners to start. Classes are likely to change to match demand and trends
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in the fitness world. Figure 3.2.1 below lists what a typical workout schedule
for classes may look like.
Figure 3.2.1
Tuesday
Wednesday Thursday
Friday
Saturday
12pm-1pm:
9am10am:
12pm-1pm:
9am-10am:
12pm-1pm:
Yoga
Beginner
Core
Beginner
Zumba
Workout
Workout
7pm-8pm:
5pm-6pm:
7pm-8pm:
5pm-6pm:
5pm-6pm:
Sculpt
Yoga
Zumba
Sculpt
Core

The manager is responsible for enforcing rules and providing CPR and basic
first aid if needed.

Making sure equipment is cleaned and put away at the end of the day.

Cleaning the floors, change rooms and bathrooms.
Primary Monthly Responsibilities:

Organizing the books and bank reconciliations.

Updating the Facebook, Twitter, Instagram and Linkedin pages.

Organizing the “weigh in book” and measuring members who would like to
track their progress and record their results.
Primary Yearly Responsibilities:

Organizing all of the company’s financials.

Preparing and filing of tax returns (T2/T4s/T5s).
Recruiting:

Analyzing the businesses current situation to see if the business is growing,
requiring additional staff. The manager is then required to hire, train and fire
employees.
Training and Development:

The manager is responsible for making sure employees have completed the
required courses.
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
There is a need to recognize and monitor employee’s performance through
coaching.

The manager also has to attend seminars, keeping updated on the best
management strategies and personal training techniques.

The manager is required to attend a First Aid and CPR course every three
years, costing $73.99, which Smart Fitness will pay for. (First Aid Regina,
2013)
The manager of Smart Fitness will be paid $48,000 dollars, which is above average
according to PayScale Canada (PayScale, 2014). On top of this they will receive
dividends when there is excess funds, being they are one of the three shareholders.
3.2.2 Physiotherapist
When searching for a physiotherapist to bring on as a partner, they must have a
degree in Physiotherapy and have passed the national Physiotherapy Competency
Examination, which is a requirement to work as a physiotherapist (Canadian
Physiotherapy Association , 2012). There are a couple of ideal options for our
potential candidates. The first type of candidate is to look for a recent grad from the
University of Saskatchewan, preferably someone from Delisle or surrounding area.
Another option for a candidate may also be someone with a few (5-10) years of
experience in the industry. This may be the more likely option, as they will be more
likely to have extra cash flow to invest as a shareholder in the company. The
primary responsibilities of the physiotherapist are listed below:
Primary daily responsibilities (8am – 5pm; Monday- Friday):

To help patients recover from accident, illness or injury.

Advising patients what to do and educating them on how to improve their
health.

Creating physical exercising sessions and setting up personal exercise
programs.
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
Making sure equipment is cleaned and put away at the end of the day.

Cleaning the floors, change rooms and bathrooms.
Primary monthly responsibilities:

Ensuring that patients are recovering.

Writing reports on current clients and how they are recover.

Working with other professionals, for instance, doctors and nurses;
providing education and advice about exercise and movement.

Marketing their services to the general public, getting clients into Smart
Fitness.
Primary yearly responsibilities:

Tracking progress with clients
The physiotherapist will be paid $70,800 dollars, and also receive dividends when
there are excess funds. $70,800 is also above average according to PayScale, enticing
candidates to apply.
3.2.3 Fitness Center Staff
Additional staff will only be hired part-time once we reach approximately 15
physiotherapy customers per day and 104 gym memberships, which is estimated to
be in year 3. They will report to the manager, and the manager will be in charge of
training, motivating and recruiting new staff. The primary responsibilities of the
fitness center staff are listed below:
Primary Daily Responsibilities

Will set up memberships, give members tours and brief information sessions
on how to use the equipment.

Staff members are responsible for enforcing rules and providing CPR if
needed and basic first.

Make sure equipment is cleaned and put away at the end of the day.

Cleaning the floors, change rooms and bathrooms
Monthly Daily Responsibilities
9

Organizing the “weigh in book” and measuring members who would like to
track their progress and record their results.
3.2.4 Salary & Wage Costs
Salary & wage costs are the single largest category for our operating expenses.
Luckily, there is still a low number of staff needed for the facility to operate
efficiently and the majority of the salary cost is paying owners of the business.
Table 3.2.4
Salary Costs
2015
2016
2017
2018
2019
Manager
$48,000
$49,200
$50,430
$51,691
$52,983
Physiotherapist $70,854
$72,625
$74,441
$76,302
$78,210
Part-time
-
-
$1,286
$2,538
$4,128
Total Cost
$118,854
$121,825
$126,157
$130,530
$135,320
4.0 Marketing plan
4.1 Marketing Mix
4.1.1 Services
Smart Fitness offers physiotherapy sessions and yearly gym memberships,
providing full access to lockers, showers, and an infrared sauna. We especially are
focusing on building a routine, recovering from injuries and relaxing. By focusing on
building routines and creating healthy lifestyles, our certified professionals will
motivate clients to exercise regularly and develop plans to help achieve their goals.
Our physiotherapist will also enable individuals to recover from their injuries and
get back into tiptop shape. Our gym facilities are quality used equipment, and will be
replaced over five years. Our service provider for the equipment will be Flaman
Fitness.
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There is a main gym area, as well as a private room for exercising classes and
stretching. The exercising classes provided include a beginners, yoga, sculpt, core
and zumba class, all of which is included in the yearly membership. If individuals
would rather just partake in the exercising classes or drop in and use the gym
without a membership, it will be $10 per day. Finally, we have created an
environment where you can come relax, de-stress from your busy day at work and
take advantage of our sauna.
4.1.2 Place
Smart fitness will be located on 302 2nd St E Delisle, SK. The building is strategically
placed along highway number 7, on .76 acres of land. This location is ideal because
of the highway frontage, easy access and great parking. There is lots of gym space
with the 3000 square feet, making it an ideal gym facility. This will also be a great
location for individuals in the surrounding communities, as they will not have to
drive as far to the locations in Saskatoon. Delisle is also a very sport and fitness
orientated community, making it a great location to have a gym. It especially targets
the older generation in Delisle, as it’s so close to home and they do not have to rely
on other people to take them to physiotherapy of drive them to the gym. In Delisle,
the majority of people are in there thirties, as well as from fifty to sixty years old
(City Data, 2014). The later group, fifty to sixty-five year olds is our target market, as
they have more free time and its necessary they stay healthy.
4.1.3 Price
Smart Fitness’s pricing strategy is based on its competitors in Saskatoon. The
closest, most relevant gym competitors are Motion Fitness - being $19.99-$29.99 biweekly, Fitness Focus - being $16.00-27.45 bi-weekly, Freedom Functional Fitness being $39.00-80.0 per month and Fit4Less - being $10-$20 a month. All these
locations are located on the west side of Saskatoon. The competitive price Smart
Fitness has designed will be $40 per month. Smart Fitness also has drop in rates,
starting at $10 each time, which is slightly lower than competitors. The competitor
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map below, in figure 4.1.3, indicates where we believe our services fit compared to
our competitors.
Figure 4.1.3
We have differentiated our location by having physiotherapy services and an
infrared sauna available, as well we are targeting an entirely different area. Smart
Fitness is also has competitively priced physiotherapy services. The following table
4.1.3 lists the main competitors, where they are located, and their prices.
Figure 4.1.3
Name of
Physiotherapy
Competitors
Descriptions/ Image
Smithwick’s
Physiotherapy
The compassionate staff at
Smithwick's Physiotherapy
provide individualized,
medical services designed
to meet the needs of each
patient. Their dedicated
health professionals
provide careful assistance
and quality care,
personalized to meet the
needs of each patient
Location
Suite C202 22nd
St W
Saskatoon,
SK
Price
Range
N/A
12
McInnes
Physiotherapy
Pro Sport Rehab
&Fitness
Bourassa &
Associates
Rehabilitation
Centre
Our goal at McInnes
Physiotherapy is to restore
and maintain; mobility,
pain free function, and
strength. This goal will be
accomplished through
appropriate assessment,
manual hands on care,
education, and
individualized exercise
prescription
Pro Sport Rehab is a
multidisciplinary
rehabilitation clinic that
applies a sport rehab
approach to all injuries.
Bourassa and Associates is
fully credentialed and
equipped to provide
treatment services across
the full span of tissue
healing. Utilizing skills from
the Physical Therapy,
Occupational Therapy,
Exercise Therapy,
Psychology and Medical
specialist professions,
treatment programs are
tailored to meet the client’s
needs.
3 - 616
10th
Street East
Saskatoon,
SK
Assessment: $75
Follow up: $55
#6 - 2345
Millar Ave
Saskatoon,
SK
Assessment: $70
Follow up: $55
113 3rd
Ave West
Biggar, SK
Assessment: $75
Follow up: $50
And
109 - 294
Venture
Cres.
Saskatoon,
SK
http://www.fsnhospitals.com/profiles/smithwicks-physiotherapy, http://www.mcinnesphysio.ca/,
http://www.prosportrehab.com/rates/\
https://bourassarehab.com
4.1.4 Promotion
Smart Fitness will use multiple ways to promote the company to make it publicly
known in Delisle and the surrounding communities. For starters, Smart Fitness will
be actively involved in online social media, including Facebook, Twitter, Instagram
and the RM review. These pages will be created months before the grand opening,
to advertise the services, the hours, what classes are offered, pictures, videos and
what makes Smart Fitness different. Google Analytics is recommended to measure
13
of the success of the social media, to see what is working and not working. Google
Analytics is a service offered by Google that allows organizations to receive detailed
statistics on the traffic to their website and social media accounts. Google Analytics
is able to track visitors from search engines, social networks, and direct visits
(Google, 2014). This basic service is free, and after conducting research we have
determined Smart Fitness will only require the free service. The company will also
send out flyers, and brochures as well as situate posters in surrounding
communities. In these flyers and brochures, Smart Fitness will advertise the two
free weeks of gym services, during staffed hours, to see if Smart Fitness is right for
you. A sample brochure is pictured below.
Figure 4.1.4
Along with these brochures, posters will be hung at coffee shops, local stores, the
school, the rink, senior homes and various venues in other towns. The location is
just off of the highway, giving Smart Fitness fantastic visibility. To take advantage of
the highway frontage, there will be a sign put up during the construction process
that reads, “Smart Fitness: Routine, Recover, and Relax – COMING SOON.” The
physiotherapist will also actively market his/her services through the old folks
home and the medical center. Specifically, the physiotherapist will go to these two
locations and have information sessions and talk to the nurses/administrators in
14
charge to set up appointments. The picture below is the proposed signage and
design of the building that will be home to Smart Fitness’ operations.
Figure 4.1.4.1
4.2 Marketing Expenses
In order to attract people to Smart Fitness, the marketing plan is very important. In
the marketing plan it will layout why people should go to Smart Fitness and allow
them to become aware of the services offered. The promotional campaign includes
the sign attached to the building, newspaper ads, posters, and flyers. The social
media will be free to use, however it requires employees time while at work. The
following break down of all the marketing expenses is seen in figure 4.2.
Figure 4.2
Type of Advertising
2015
Signage
$5,000
RM Review – Business Directory
$50
RM Review – Advertisements
$240
Flyers
$390
Posters
$299.80
Facebook
Free
Instagram
Free
Twitter
Free
Total
$5979.80
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5.0 Financial Plan
5.1 Income Statement
Despite high capital costs at startup, net income for Smart Fitness is positive in the
first year and continues to grow every year afterwards.
Table 5.1
250,000
200,412
181,655
200,000
Net income
215,782
150,000
94,088
100,000
50,000
9,516
2015
2016
2017
2018
2019
Year
For a more detailed look at the income statement, see Appendix A
5.2 Balance Sheet
Table 5.2
Current
Assets
Noncurrent
Assets
Total
Assets
Total
Liabilities
Total
Equity
Total Liab.
& Equity
2015
$30,019
2016
$126,762
2017
$221,172
2018
$236,891
2019
$249,281
$760,600
$736,680
$714,408
$693,580
$674,027
$790,619
$863,442
$935,580
$930,471
$923,308
$481,103
$459,838
$437,083
$412,734
$386,680
$309,516
$403,604
$498,497
$517,737
$536,628
$790,619
$863,442
$935,580
$930,471
$923,308
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For a more detailed look at the balance sheet, see Appendix A
5.3 Financial Analysis
5.3.1 Internal Rate of Return
We started our investment decision by proposing that we not invest in any scenario
that does not meet or exceed at 20% return on investment (ROI). Our base case
estimates a 49.1% internal rate of return (IRR), which more than satisfies our initial
requirement.
5.3.2 Critical Variables
The number of physiotherapy customers per day is our largest and most sensitive
critical variable, as shown in the breakeven analysis below.
5.3.3 Break Even Analysis
The breakeven analysis for Smart Fitness’s gym memberships reveals that gym
memberships are the less volatile variable in the equation. There is a relatively large
spread between the base case projections and the breakeven point.
Table 5.3.3
Number of Memberships
per Year
Gym Membership Breakeven
120
60
109
54
53
52
75
71
61
40
20
107
90
100
80
104
Average 5 year Net
Income = $140,291
IRR = 49.1%
0
1
2
NPV = $412,521
3
Year
4
5
17
The breakeven analysis for physiotherapy customers shows quite a bit less of a
spread, which is why the number of physiotherapy customers is the most critical
variable. Though this may be seen as a weakness, it can also be seen as a strength. If
physiotherapy customers go up by 25%, which is only starting at 10 customers per
day in year one, the average profit over the first 5 years increases by $71,597 and
IRR increases from 49.1% to 68.1%
Figure 5.3.3.1
Number of Customers
per Day
Physiotherapy Breakeven
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
15.6
16.1
16.4
12.0
8.0
7.5
7.5
7.0
6.8
6.6
1
2
3
4
5
Year
5.4 Dividend Policy
5.4.1 Owner Compensation
The three owners of Smart Fitness will receive dividends as well as their salary as
set out in table 5.4.1 The estimated dividend payouts, according to the base case, are
shown in the table below. Individual Compensation is calculated by dividing the
dividend equally between the three shareholders.
Table 5.4.1
2015
2016
2017
2018
2019
Dividends
0
0
$86,762
$181,172
$196,891
Individual
0
0
$28,921
$60,391
$65,630
Compensation
Total Indiv.
$154,942
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Compensation
5.4.2 Investment Payback
Smart Fitness will start paying out dividends in year three of operations to ensure
that the business’ cashflow is not depleted too much. With dividend payouts starting
in year three, the individual investments of $100,000 will be paid back with extra by
the end of the fifth year.
6.0 Summary
Smart Fitness, considers it our mission to enhance the quality of life through
physical fitness, by providing facilities, programs and instruction to individuals to
help build a routine, recover and relax. This will be achieved through our gym
memberships, physiotherapist services and lastly our infrared sauna. Sales volumes,
specifically physiotherapist sessions are critical to Smart Fitness’s success, so it is
essential to provide excellent service to help the clients recover. This strong business
model that has been designed, along with a concrete financial position will ensure the
success of Smart Fitness in the future.
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Works Cited
Canadian Physiotherapy Association . (2012). Physiotherapy Education. Retrieved
from http://www.physiotherapy.ca/About-Physiotherapy/Careers-inPhysiotherapy
City Data. (2014). Delisle - Town, Saskatchewan, Canada. Retrieved from
http://www.city-data.com/canada/Delisle-Town.html#ixzz3DJQUpUNn
Employment and Social Development Canada. (2014, 11 24). Health - Physical
Activity. Retrieved from http://www4.hrsdc.gc.ca/.3ndic.1t.4r@-eng.jsp?iid=8
First Aid Regina. (2013). CPR Courses . Retrieved from
http://www.firstaidregina.ca/cpr-courses/
Google. (2014). Get started with Analytics. From
https://support.google.com/analytics/answer/1008015?hl=enhttps://support.goo
gle.com/analytics/answer/1008015?hl=en
PayScale. (2014). Fitness Manager Salary. Retrieved from
http://www.payscale.com/research/CA/Job=Fitness_Manager/Salary
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