Business Plan for
Client: Sarah Feldman
July 16, 2008
Boldt Consulting
Ashish Khulbe
Stephanie Boldt
Lindsey Reilkoff
Kaitlin Cluff
Michael Pack
Will Lackton
Business Plan for Venus Fitness Center (Client: Sarah Feldman)
Table of Contents
1.0
Executive summary
1
2.0
Introduction to Venus Fitness Center
2
3.0
The Marketing Plan
3
4.0
The Operations Plan
10
5.0
The Human Resources Plan
16
6.0
The Financial Plan & Recommendations
18
Appendices
Appendix 1 – SWOT Analysis for Venus Fitness Center
22
Appendix 2 – Marketing Research Survey
23
Appendix 3 – Location Map and Picture in Saskatoon, Saskatchewan
24
Appendix 4 – Organizational Structure
26
Appendix 5 – Venus Fitness Center Floor plan
27
Appendix 6 – Weekly Schedule for Multi-Purpose Room
28
Appendix 7 – Venus Fitness Center Staffing Diagrams
29
Appendix 7.1 - Adjustments to Operations to Increase Return
30
Appendices 8 – 11
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Refer to Attached Excel Spreadsheet
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
1.0 Executive Summary
Sarah Feldman’s goal is to raise the required debt and equity financing to open a new women’s
fitness facility in Saskatoon, Saskatchewan. Named after the goddess of love and beauty, the
Venus Fitness Center will serve as the premium health and wellness solution for all women age
15 and over in the Saskatoon area. There will be a particular focus on the needs of pre- and
postnatal women.
The Venus Fitness Center will occupy a leased space in the Lakewood area of Saskatoon in a
newly developed retail area (right beside a Jugo Juice store). The 5,000 square foot facility will
include high quality exercise equipment, a multi-purpose room to accommodate various group
fitness classes, and a childcare facility. The facility will start operations on January 1, 2009.
Venus Fitness aims to offer a differentiated product by offering specialized physical fitness
programs. Fitness center management will consist of Sarah Feldman as Fitness Center
Manager and her associate, Angela Ringwald, as Fitness Supervisor. Both of these individuals
are certified personal trainers; the Fitness Supervisor is certified as a pre- and postnatal fitness
specialist. Additional expertise will be added to the program offering of Venus Fitness by
collaborating with the Saskatoon Health Region to offer information seminars to expectant and
new mothers on various health and wellness topics. The price for an adult membership will be
$75/month (payable by pre-authorized debit or cash); students and seniors will pay a reduced
price of $50/month. Promotional activities range from a partnership with Saskatoon Lululemon
Athletica to visiting potential clients door-to-door in the local area around the fitness center.
There are four critical success factors for Venus Fitness Center:
 Membership volume
 Staff expertise
 Specialized fitness programming
 Quality and variety of fitness equipment
Much of the success of Venus Fitness is dependent on the ensuring client’s receive quality
service. Quality service will require quality staff. Fitness center staff will receive necessary
training. The fitness supervisor will be certified as a Pre- and Postnatal Specialist. The child
service manager will have an Early Childhood Development diploma.
The financial projections for Venus Fitness assume that 7% of the target population will become
members in 2009 (or approximately 431 members). Expected growth projections are that the
center will reach capacity of close to 1,000 members shortly after the 5th year of operation. The
financial goal of Sarah Feldman is to earn a 20% return. The financial projections indicate that
this desired return may be attainable with the current business plan designed to fulfill Sarah
Feldman’s goals and objectives.
Recommendations to improve the overall return of Venus Fitness Center include decreasing
costs (scale down initial operations to decrease cash outlays & limit fitness staff at initial startup) and increasing revenues (charge extra for special programs, charge for childcare services,
& explore eligibility for government grants).
Venus Fitness Center will hopefully exist to ‘facilitate the fun and fitness for life for the women of
Saskatoon’.
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
2.0 Introduction to Venus Fitness Center
Background on Client & Business Concept
Sarah Feldman is an individual with a business diploma and an entrepreneurial spirit that has
recognized the need for more direction for young mothers trying to stay or get back in shape.
With $200,000 of inheritance money, Sarah has decided that she would like tap into the niche
market of women in Saskatoon looking for a high quality fitness facility with vast health and
fitness knowledge. The result is Venus Fitness Centre Inc., incorporated in the province of
Saskatchewan, which will be a women’s only gym facility specializing in pre- and postnatal
fitness. The suggested location is 418 Harold Court in a Saskatoon developing community
called Lakewood. The target is women of all ages, and in particular, pre- and postnatal women
looking for direction in their continual quest to maintain a healthy, balanced lifestyle. Staff at
Venus Fitness will have expert knowledge in fitness training and other contract workers from the
Saskatoon Health Region will be hired to increase the variety of resources available to members
in order to provide the best possible services.
The company will start operations on January 1, 2009, making its year end December 31.
Based on the following plan, the recommended structure includes having Sarah Feldman be the
majority shareholder (with 66% ownership) and manager of the gym. This leaves an additional
34% equity financing expected to be provided through angel investors.
Vision:
Promoting balanced, healthy, active lifestyles among the women of today
to achieve a state of well-being in all stages of life.
Mission:
To facilitate fun and fitness for life for the women of Saskatoon.
Core Values:
o Well-being in all aspects in life
o Facilitating your physical, mental, emotional and nutritional needs
o Healthy mom and healthy baby
o Supportive & encouraging environment
Objectives:
Venus Fitness will strive to complete the following short-term and long-term strategic objectives:
1. Short-term Objective No. 1: To have a 95% satisfaction rate for the clientele of Venus
Fitness.
 As measured through a comprehensive annual survey submitted to Venus
Fitness members, and also through continual monitoring of the customer service
provided by our organization through customer surveys available at the front
desk
2. Short-term Objective No. 2: To continue to develop community contacts within
Saskatoon that will be beneficial to the patrons of Venus Fitness.
 Venus Fitness aims to develop two more contracts with various community
experts or programs by the end of Year 3 while continuing to maintain the current
contracts with the Saskatoon Health Region in place.
3. Long-term Objective No. 1: To have 923 Venus Fitness members by the end of Year 5.
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
3.0 The Marketing Plan – Paving the Path to Success
Industry Overview
Operating a business in the flourishing city of Saskatoon has never looked more promising.
“The Conference Board of Canada’s outlook pegged Saskatoon’s real domestic product growth
at 4.9 per cent, surpassing the country’s previous top performer, Calgary” 1. 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.” In addition to the phenomenal growth expected in Saskatoon,
the advantages of running a business in Saskatoon have been acknowledged on an
international 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. The Competitive Alternatives study looks at both cost and non-cost factors
that would be considered when choosing a location to do business”2.
Consider today’s mounting focus on healthy and active lifestyles, coupled with the fact that there
are currently no women fitness facilities in Saskatoon offering a focus on prenatal and postnatal
women and community ties grounded in mental and physical health, and a promising business
opportunity arises. We propose capitalizing on this opportunity through the opening of the
Venus Fitness Center. In order to gain a well-rounded view of this proposed business
opportunity, a SWOT (Strengths-Weaknesses-Opportunities-Threats) analysis has been
prepared – refer to Appendix 1. We strongly believe that the identified market opportunities and
strengths of Venus Fitness will mitigate the threats of the current and future market and any
weaknesses of the business.
Marketing Research
Market research was conducted in order to gain insight on the anticipated market reaction to a
women’s fitness facility specializing in prenatal and postnatal services for women. A survey was
disbursed around the targeted areas of Saskatoon which are within a reasonable proximity to
the intended location of Venus fitness. A self-addressed, postage paid envelope was included
with the survey to encourage response to the survey. A booth was also set up outside of the
nearby Extra Foods, in which Boldt Consulting personally requested female individuals to fill out
the survey.. Please refer to Appendix 2, for the market research survey circulated. With a
response rate of 59%, results received were encouraging. Participants were very responsive to
the ideas presented, including individuals both with and without a current gym membership. The
response to the prenatal and postnatal focus and to the well-being focus were very
encouraging, with an 87% “yes” response rate. The most commonly selected price range was
$70 - $80 per month.
Based upon this marketing research, we have defined our market segmentation to include the
women of Saskatoon. Of this market segment, Venus Fitness is specifically targeting women in
the neighborhoods of Lakeview, Lakeridge, Briarwood and Lakewood which are located in the
South-eastern area of Saskatoon. Even more specifically, the business will be targeting
pregnant women in these areas with a focus on retaining them through all stages of life. The
1
2
http://www.sreda.com/common/uploads/WI_B50B51.pdf
http://www.sreda.com/resources/pdfs/SREDAupdateApr22.pdf
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
details of how we will successfully engage the identified target market are provided below in a
comprehensive evaluation of our proposed product, price structure, place of operation and
promotional plans.
Product
Our product is the promotion of a healthy lifestyle for all women through specialized physical
fitness programs. The Venus Fitness Center will offer its clientele a full range of professional
grade exercise equipment that would normally be found in a high-end gym, including treadmills,
elliptical machines, stationary bicycles, step machines, rowing machines, circuit training
machines, and a full line of free weights.
Although Venus Fitness Centers will cater to all women in general, specialized pre- and
postnatal fitness programs will also be available. Through a partnership with the Saskatoon
Health Region, specialized physical fitness programs will be available which will offer expecting
mothers several benefits including:










Resistance to fatigue
Improved posture
Smaller gain of body fat
Stress relief
Improved sleep and management of insomnia
Preparation for the physical demands of labour
Faster return to pre-pregnancy fitness and healthy weight
Faster recuperation after labour
Increased ability to cope with physical and mental demands of motherhood
Stronger back muscles, which will help manage back pain and strain as the mother’s
belly grows3
Specialized training programs will be developed in consultation with professional doctors of the
Saskatoon Health Region, as well as with the professional fitness staff at Venus Fitness
Centers. Specialized pre- and postnatal programs will include walking, yoga, stretching,
dancing, pilates, and cycling, all of which are recommended exercises for expecting and new
mothers.
Aside from offering physical fitness services to promote a healthy lifestyle for women, Venus
Fitness Center also focuses on mental health. Venus Fitness Center will provide women with a
forum for emotional support through various support groups ranging from pre and postnatal to
retirement. As well, networking sessions will also be held at Venus Fitness Center to help
expecting and new mothers maintain contact with other working professionals, allowing them to
continue to develop their careers while on maternity leave. Venus Fitness Center will provide
each user group with meeting space in a comfortable informal setting.
Venus Fitness Center will also offer its clientele childcare services by its accredited childcare
workers. Childcare services will act as a complimentary service to the postnatal specialized
3
(http://www.betterhealth.vic.gov.au/BHCV2/bhcArticles.nsf/pages/Pregnancy_and_exercise?OpenDocument)
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
training programs offered by Venus Fitness Center. The child services supervisor will be
required to have completed an early childhood development diploma before working at Venus
Fitness Center in order to ensure the highest quality child care services to our clientele. As well,
the promotion of healthy lifestyles will also be the basis for all children’s activities.
Venus Fitness will offer a wide variety of well-being classes, including the following:
Personal Fitness Training: Have a professional personal trainer design a fitness
program to meet your personal goals. The fitness staff at Venus Fitness Center will
meet with you and tailor a program to meet your fitness goals rather than just provide a
cookie-cutter program like other gyms. Add a custom element to your fitness routine!
Yoga and Pilates: Discover your inner power as you build mental and physical strength
with the movements of Yoga and Pilates with the help of our encouraging instructors.
Mental well-being sessions: Attend one of the many sessions hosted by Venus
Fitness on a variety of mental health topics. At Venus Fitness, we realize that
overall well-being is comprised of not only physical health, but also mental and
nutritional well-being. Our sessions are hosted by topic experts from the community and
facilitate an open and encouraging environment. Topics include motherhood preparation,
how to deal with feeling overwhelmed, postpartum adjustment, and many more.
Step Ahead Dance Classes: Come try out this 60 minute dance fitness class where you
will boogie your way into shape! This class incorporates dance movements from a
variety of dance styles from salsa, swing, latin, hip-hop and more! Getting into shape
has never been more fun!
Pre and Postnatal Fitness Classes: Your baby’s health is just as important to us as it is
you. Our specialized pre and postnatal fitness classes have been designed by a team of
medical doctors and professional personal trainers to ensure both a healthy mother and
baby. Programs are designed to be flexible as you progress through the stages of
pregnancy and then post-pregnancy in order to return to your pre-pregnancy healthy
weight and shape.
Price
The Lakewood area and surrounding neighborhoods are newer areas in southeastern
Saskatoon and are comprised mostly of young families. The average household income is
roughly $90,000. We intend to attract women mainly in the age ranges of 20 to 50 years old;
however our total target is women aged 15 and older. We expect that this age group of women
in the selected area will be willing to pay a premium for top of the line exercise equipment, a
wide variety of well-being classes and on-site quality childcare services. Additionally, we expect
the added services focusing on pre- and postnatal classes and services will be well received in
this particular area. Our aim is to build a strong client base with these unique services and
retain these customers for life through quality equipment and programs as well as a high level of
service.
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
The estimated populations of our target market areas in Saskatoon4 are as follows:
Lakeview
7,748
Lakeridge
3,879
Lakewood
1,516
Briarwood
3,967
Total
17,110
Monthly prices for memberships and other services are as follows:
Adult
Seniors (65+)
Student (15-19)
Day Pass
$
$
$
$
75.00
50.00
50.00
10.00
Note that membership prices include the right to participate in the wide variety of classes and
seminars offered.
As a promotional tool, Venus Fitness will offer free “Trial Memberships” allowing interested
parties access to all facilities for 4 sessions or 1 month whichever comes first.
Place
As the April 2008 edition of Western Investor indicated, “Saskatoon became Western Canada’s
fastest growing metropolitan area in 2007”5. The growth in Saskatoon over the past year has
been phenomenal. New communities in Saskatoon, such as Lakewood and Stonebridge,
continue to grow. In light of this growth, the intended location of Venus Fitness is in the
community of Lakewood. More specifically, the targeted leased space is a commercial complex
located at 418 Herold Court. Refer to Appendix 3 for a map and picture of the proposed
location.
We have chosen this specific location for a variety of compelling factors. There are currently no
fitness facilities in the immediate district. The surrounding areas are comprised of families of
moderate to high incomes who will have the disposable income to invest in a fitness
membership. The intended lease space is a prime location given that it is located in a strip mall
with many desirable amenities, including a Shopper’s Drug Mart, hair and tanning salons, a
medical and dental clinic, a Blockbuster Video and a Jugo Juice. Immediately across the road
from the strip mall is an Extra Foods, thus adding even more convenience to the location.
There is plenty of parking space available for Venus Fitness patrons.
The intended lease space for Venus Fitness is directly beside Jugo Juice. Upon discussions
with the management of Jugo Juice, we have reached an agreement to have indoor access
between Venus Fitness and Jugo Juice; thus, providing the clientele of Venus Fitness with
direct access to a health food bar.
4
5
as per Wikipedia
www.westerninvestor.com
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
It should also be noted that by locating in the City of Saskatoon, we will have access to students
and graduates from the University of Saskatchewan with experience in the departments of
Kinesiology and Education. This may prove to be an asset when hiring Venus Fitness
Employees for the positions of fitness instructors, personal trainers and childcare employees.
The Competitive Scene
There are approximately five fitness centers currently in Saskatoon that are strictly for women.
These fitness facilities and their emphasized services are as follows:
Competitor
Curves for Women
Location
3010 Arlington
Avenue*
23-2605 Broadway
Avenue
30 2105 8th St. East*
2414A 8th St. East*
Services
Price
Circuit Training – the 30 minute
$55/month
workout
Flex Appeal Fitness for Her
Cardio, free-weights, circuit,
$60/ month
smoothie bar
Ladies Workout Express
30 minutes interval circuit training
$50/ month
Ladies California Fitness
Cardio, systemic training, circuits,
$60/ month
free weights, group fitness classes,
babysitting
First Step Fitness Women’s 1003 8th St. East*
30 minute full body workout, extra
$75/ month
Centre
cardio equipment, free weights
*This outfit has multiple locations; presented is the location closest to the intended location of
Venus Fitness
As the above chart indicates, three of these five competitors, specifically Curves, Ladies
Workout Express and First Step Fitness, highlight their thirty minute circuit workout as their
differentiating strategy. These fitness centers attempt to appeal to the busy woman by
emphasizing that she only needs to invest thirty minutes of her day at the gym. Thus, at these
gyms, women can hurry and finish their workout and leave. Flex Appeal Fitness attempts to
differentiate itself by claiming to be the only ladies fitness centre in Saskatoon that is not a
circuit gym. However, upon our research, we have found that some of the circuit gyms do offer
additional exercise equipment. Ladies California Fitness is also not a circuit gym. Ladies
California Fitness offers a variety of equipment and weights, group fitness classes and
babysitting services.
Despite the fact that there are competitors in the female fitness facility business in Saskatoon,
we feel that Venus Fitness has a defined competitive advantage that differentiates itself from its
competitors. Firstly, Venus Fitness is much more than a thirty minute fitness fix. Rather, we
facilitate both physical and mental health, with a specific emphasis on prenatal and postnatal
women. Venus Fitness offers its members a chance for interaction with women who are going
through or have undergone similar life experiences. This emphasis on catering to the mothers
of Saskatoon also differentiates Venus Fitness from the non-circuit Ladies gyms. Venus Fitness
will retain its clientele who choose our fitness facility for its focus on prenatal and postnatal
mothers by providing continual exceptional service. As an added bonus, for those patrons who
would like to enjoy a nutritional smoothie after a workout, a Jugo Juice is conveniently located
next to our fitness facility.
In response to Ladies California Fitness also offering group fitness classes, Venus Fitness
offers a much more diverse offering of classes – for both physical and mental health. Venus
Fitness prides itself on its connections with various health experts in the community that provide
sessions at the Venus Fitness facility on a wide range of topics. Diverse classes are offered to
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
Venus Fitness clientele specifically for expectant and new mothers. Venus Fitness also offers
networking events for mothers who are on maternity leave but still want to maintain their
competitive career edge. Ladies California Fitness also has babysitting services; however, they
do not indicate or advertise the training or caliber of their childcare staff. As indicated
previously, Venus Fitness the childcare services manager has an early childhood development
diploma, thus ensuring only the highest quality of care for our clientele’s children.
Venus Fitness is also located in a high convenience location, which includes a nearby tanning
salon, hair salon, Shoppers’ Drug Mart and Extra Foods.
In response to the opening of Venus Fitness, competitors may begin to also offer more
specialized prenatal and postnatal classes for women. However, we do not believe this will
have an adverse affect on our operations as Venus Fitness will have already established its
name as the premier fitness facility for Saskatoon’s mothers. Venus Fitness will also already
have established numerous contacts with health care professionals and groups within the city,
and have established agreements for their services.
Promotion
Venus Fitness Centers will promote its product through five channels of marketing in order to
reach its target market customers. The first marketing channel involves promotion of Venus
Fitness through a partnership with the Saskatoon Health Region and the professional doctors in
the Saskatoon hospitals. In this campaign, medical doctors and nursing staff will be provided
with brochures and information packages on the services and specialized programs offered by
Venus Fitness that are designed specifically to meet their female patients needs. Particularly,
such a campaign will be directed at expecting women and new mothers who are interested in
maintaining a healthy lifestyle during and after pregnancy. Using this marketing channel,
expecting and new mothers will be informed of our services by reputable professionals who
helped design our programs, which will help build trust in the specialized programs Venus
Fitness offers.
The second marketing channel will be through another partnership, except this time with the
local Saskatoon Lululemon Athlethica store that specializes in trendy and comfortable athletic
wear for women. Lululemon Athletica shares a similar culture as Venus Fitness in promoting a
healthy lifestyle for all women. In exchange for promoting Venus Fitness Centers through in
store brochures and information packages, Venus Fitness Centers will use Lululemon clothing
branded with Venus Fitness Center logos as clothing for its staff. As well, as part of our referral
program, existing Venus Fitness Center members will be provided with free Lululemon Athletica
wear for every new referral that signs a one year contract, courtesy of Venus Fitness. Using
this marketing channel Venus Fitness Centers will reach part of the target market of young,
affluent women who are health conscious.
The third marketing channel involves advertising in local Saskatoon malls. By advertising in
malls, Venus Fitness will reach all of its target audience at once, as well as serve as the primary
source in reaching the senior women who participate in mall walking clubs. Advertising in malls
will be done through hanging banners and advertising posters.
Fourth, Venus Fitness will go door-to-door in the local area where the fitness center will be
located. Going door-to-door, Venus Fitness representatives will distribute brochures and meet
with local residents to answer any questions them may have regarding services offered.
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
Finally, the Venus Fitness Center website will provide potential clientele a place to explore all
the services offered by Venus Fitness. As well, the website will allow existing members to sign
up for classes, obtain healthy eating tips and menus, and blog with other members about health
related issues.
Marketing Expenses
Marketing expenses will comprise of mall advertising fees and costs related to the printing of
brochures and promotional materials that will be provided to the Saskatoon Health Region
hospitals, Lululemon, and delivered door-to-door in the neighborhoods around the Venus
Fitness Centre. Outlined below are the budgeted costs associated with each marketing
channel.
Brochures and Promotional Materials
Mall Advertisements
Website
Total Budgeted Marketing Costs
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Budgeted Cost
$2,500
$5,000
$2,500
$10,000
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
4.0 The Operations Plan
Legal Structure
Venus Fitness will be incorporated in order to allow for the equity investments of the business
partners and investing family members. A Board of Advisors will be established that will consist
of the Fitness Center Manager, who will be the majority shareholder, the Fitness Supervisor, the
company Accountant and the company lawyer.
Organizational Structure – Refer to Appendix 4
 It is anticipated that the Fitness Center Manager position will be filled by the client, Sarah
Feldman.
 The position of Fitness Supervisor/ Personal Trainer will be filled by her associate
Angela Ringwald.
Floor plan – Refer to Appendix 5
 The floor plan has been designed to provide women with a comfortable workout facility
which encourages variety, interaction and safety. There is a large variety of equipment
which will allow for customers to change up their work out plans on a regular basis.
 The floor plan for the Venus Fitness Center provides for the following functionality within
5000 square feet of commercial space:
o Reception and lounge area - an inviting atmosphere is established by having
seating areas for clientele near the front reception desk. In particular, the sitting
room behind the reception desk allows for informal networking to take place
between mothers and other clients.
o Three enclosed offices – these three offices neighbor the reception area.
 They are used to provide office space for the Fitness Centre Manager
and Fitness Supervisor to conduct administrative duties. Two of the
offices will be equipped with computers; the reception desk will also have
a computer that is connected to the local computer network.
 As well, the offices are used for meeting with clients one on one for
personal training meetings and individual program development.
o Children’s Playroom/Infant Room – mothers are able to drop their children off in
the childcare services area on their way to the locker room. There are two
separate areas (children vs. infant) to be able to segregate the children according
to the developmental environment they require (‘younger’ toys and activities will
take place in the Infant room; crafts and ‘older’ activities will be conducted in the
children’s playroom). Note that there are windows between the child services
area and the workout area, thus, moms are able to observe how their children
are doing while they work out.
o Change Rooms – There will be free lockers available for use. The locker rooms
are equipped with seven showers to allow for customers to work out, shower and
be ready for their next appointment of the day. For young mothers, it is
convenient to be able to shower at the fitness center while their children are
being watched.
o Multi-Purpose room – This room will serve as the group fitness room (complete
with spin bikes and yoga balls). It will be equipped with a sound system (with
microphones) that assist group fitness instructors conduct their classes. This
room will also be used for the information session and support group meetings
being sponsored by Venus Fitness.
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
o
Workout area – it is segregated by activity:
 Cardio area – includes 8 stationary bikes, 10 treadmills, 10 ellipticals, 4
step machines, 2 rowing machines
 Weight area – includes 4 abs machines, 6 workout benches against a
mirrored wall.
 Circuit training – includes 25 machines
 Stretching area – includes stretching mats and weight balls
 Televisions will be installed for clients to view while working out
Regulations
As the child care provided in the fitness centre is provided while the mothers are present, the
child care services are not subject to the Saskatchewan Day Care Act.
Operating Hours of Venus Fitness Center
 As the fitness center is to cater to all women the hours of operations will be 6:00 am to
9:00 pm on the weekdays and 9:00 am to 5:00 pm on Saturdays and Sundays. This will
allow women with careers to come to the center before or after work, while those with a
more flexible schedule to come throughout the day (those with more flexible schedules
would include shift workers, stay at home moms, retired women and students)
 Different fitness group classes would be offered throughout the day.
 Child Care Services will be offered 9:00 am to 4:00pm on weekdays only
Service providers
 Venus Fitness will be contracting out the Group Fitness instruction to certified local
group fitness instructors.
 Venus Fitness will provide information sessions regarding Prenatal and Postnatal
Wellbeing. These sessions will be facilitated by either the Fitness Supervisor (who is a
certified Pre & Post Natal Specialist) or other experts within the health community.
Refer to Appendix 6 for a sample weekly program guide for these group fitness instruction and
information sessions.
Capital Budget
Land and Building
After performing an analysis on the land space available and the Saskatoon market, it has been
determined that the best option for the location of the gym would be in Lakewood community at
418 Herold Court. There is a space at this location for lease and would provide Venus Fitness
with a great location to help capture its market. Leasing will help to keep start up costs lower
than would be if development was required. In addition, the lease will include an additional
payment covering such items as utilities and security, helping to keep things simple. Further
cost details are discussed with other major operating expenses.
Fitness Equipment
In starting up, the largest start up costs will be the purchase of the necessary equipment to build
Venus Fitness to be the leading women’s fitness facility in Saskatoon. The details of the capital
budget have been outlined in Appendix 8. As shown, it is recommended that the equipment be
purchased over the first three years of operations as the membership numbers grow. This will
help to reduce initial start up costs to only what is necessary in the first year. As a result, the
capital budget for year one is $140,400; $62,500 in year two, and $36,400 in year three, for a
total equipment value of approximately $240,000. Subsequent to year three, the capital budget
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
has been estimated at 20% of the total fitness equipment cost, which is $47,866 per year. This
budget is for the replacement requirements of the equipment on an annual basis. With the
strategy of providing a top quality facility, equipment will need to be replaced approximately
every five years, as necessary. The replacement cost has been estimated for years four and
five in order to be conservative and cover any equipment that may need to be replaced within
the first five years.
In order to ensure Venus Fitness can help meet its goals of providing high quality services and
experiences to the women of Saskatoon, only top quality suppliers have been chosen. The
suppliers of each type of equipment have been specified in the capital budget. Each has been
chosen based on their reputation and standing within the industry. It is expected that
management will continuously evaluate the performance of equipment and make changes to
suppliers as necessary to ensure only the best equipment for the clients of Venus Fitness.
Other Equipment
Other capital expenditures required in the first year of operations have also been summarized in
Appendix 8. Such equipment includes:
 A card reader system to ensure access to the gym is only available to members, track
club traffic at all times, as well as track members’ gym use patterns.
 Another capital expenditure in the first year is the computers and computer network
required for management and the front desk to meet day to day operations. Included in
the cost of the computers and network system is the software to run the computers.
More specifically, it includes the cost of the recommended accounting software. In order
to efficiently track sales, operating costs and review pertinent reports on a regular basis,
Venus Fitness will purchase “Simply Accounting” by Sage Premium software for $449.
This software is meant for use in small business, and is user friendly, allowing
management to learn how to maximize use of it to meet the daily accounting needs.
 Another important capital expenditure in the first year is the purchase of televisions and
sound system to help improve the work out experience.
 Leasehold improvements includes the construction that will be required to ensure the
space chosen is set up so as to provide customers with the best layout possible, with the
most efficient use of the available space. Such costs include the construction of the
locker rooms, fitness class room, offices, childcare rooms, as well as facilitate a
community area for clients to relax and chat with other members. The leasehold
improvements represent the largest capital expenditure other than equipment at
$75,000. This is to ensure that all set up is designed to meet the top quality standards of
the gym. A contract has been drafted with Classic Construction Inc. to begin work on
August 1, 2008, subject to approval from management.
 The furniture and fixtures, estimated at $13,000 will be used to purchase tables, chairs
and sofas for a seating area for members to sit, relax and interact with other members or
staff. The budget also includes expenditures for the childcare rooms including a play
structure, some child tables, as well as mats and basinets for the infant room.
 Capital expenditures after the first year of operations relate to the replacement of
computers and related technology systems, which will need to be replaced every four
years. In addition any furniture and fixtures will be replaced every six years.
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
Financing
The financing for the above capital expenditures is recommended as follows:
 The fitness equipment purchased in the first year, representing the highest capital cost
at $140,400 will be financed through the vendors. Agreements have been drawn up with
these vendors, allowing for repayment terms of 5 years at a rate of 7.5%.
 All other capital equipment purchased will be financed through equity financing, as
further explained within the financing plan. It should be noted however that the lessor
will not cover any of the costs associated with the leasehold improvements as Venus
Fitness is viewed as a risky business venture. As a result, the company will be required
to fund the full amount. As with other equipment this will be financed through equity.
Overall, capital expenditures within the first 3 years of operations represent the majority of
expenses. To be successful, Venus Fitness will need to stay within the provided budget, and
use the recommended service providers and financing structure.
Operating expenses
A five year projection of the expected operating costs for the club has been prepared in
Appendix 9. Expected annual operating costs are $460,000 and $630,000 adjusted each year
for inflation estimated at 3%. The major expenses are as follows:
 Lease costs: One of the major annual expenditures for the company will be the leasing
costs, which includes the rental payment of $13.50/square foot per year and the
operating costs at $9.50/square foot per year.
 Payroll and subcontractors: The staff at Venus Fitness is essential to providing
customers with the quality service and expertise that is advertised. As a result, the cost
of payroll and subcontractors will be significant.
 Marketing and promotion: Volume is a key success factor for Venus Fitness. As such
the appropriate marketing plan is essential to ensure that the Center is able to meet its
volume goals. As such, marketing costs have been estimated at $10,000 in the first year
and slightly lower in subsequent years recognizing that the most significant costs will be
establishing the Venus Fitness name within the market.
 Interest on long term debt: The debt service costs, while not the most significant costs,
operations are essential to the ongoing operations, as the bank will require timely
interest payments and thus, cash management must ensure that there is always enough
cash to cover interest costs. The interest rate for the equipment financing has been
negotiated at 7.5% annually, while the banking agreement drawn up states interest rate
for the line of credit as prime plus 3%.
 Amortization: Amortization policies are as follows –
o All capital assets will be amortized using the straight line method; this is
appropriate policy for determining the need for replacement of the assets and
most relevant in terms of the useful lives.
o Fitness equipment and furniture and fixtures will be amortized over 5 years, while
computer equipment will be amortized over 3 years.
Working Capital
Venus Fitness members pay monthly fees by either preauthorized payments from their bank
accounts or credit cards or upfront payments using cash, debit or credit card. Therefore, the
receivables balance will be minimal and limited to the 1 to 5 days of transaction processing of
credit cards.
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
Accounts Payable will be minimal as most operating costs will be paid at the beginning of the
month such as leasing and insurance costs. The other significant costs are payroll and subcontracting which will be paid semi-monthly. The accounts payable will consist of payroll
withholding remittances and some promotional expenses or repairs and maintenance of
equipment. Therefore, Venus Fitness operates basically on a cash basis with minimal working
capital.
Quality Control
Venus Fitness plans to differentiate itself from other women’s gyms in the Saskatoon area
through its high quality service to all women, paying special attention to their needs and more
specifically, the needs of pre- and postnatal women. In order to maintain the high quality
service required to achieve continued loyalty from customers, it is essential that there be
significant quality controls within the organization. The following are the major controls that will
be in place to ensure the best service to all clients:



Expertise, ongoing development and training:
o In hiring, careful attention has been made to who will be in the top management
positions. As described in the Human Resource Plan, individuals hired for the
fitness supervisor/personal training position and the child service manager
position have expertise in the relevant field. It is expected that these individuals
will have the knowledge required to help satisfy the individual customer needs.
In order to achieve this, Venus Fitness believes that learning is an ongoing quest,
and thus encourages professional development through subsidization of such
courses for these employees. It is specifically noted that the fitness supervisor
has a specialization in pre- and postnatal fitness, which will help to target women
in this category.
o With regards to staff members holding the lower level positions, hiring practices
will ensure that only staff that meets the organization’s culture and goals will be
hired. While no specific fitness education is required, a background is beneficial
and significant training will help to ensure that all staff has the necessary fitness
knowledge to meet client needs.
Partnerships: In marketing the services it provides, Venus Fitness will form strategic
partnerships with organizations with established names, such as Lululemon, Jugo Juice,
and Saskatchewan Health Region, which have the same focus on health and wellness.
Through such partnerships, Venus Fitness will be able to promote its brand as a
promoter of lifelong health and fitness. In order to ensure high quality, the company will
review its partnerships at least on an annual basis to ensure that they are effective and
evaluate other potential partnerships that would be beneficial, providing benefits to
customers in all health aspects of their life.
Safety: An essential factor in providing quality service is to provide a safe environment
for customers.
o The first aspect to safety is the comfort level of customers. In being a women’s
only gym, the hope is to provide an environment for women to work out together
without being self conscious, particularly pre- and postnatal women who are
known to be conscious of their bodies. The floor plan is reflective of this providing
open environment but allowing customers their space without being too crowded,
even in the busiest hours.
o The second aspect to safety is the physical safety of the customers. This has
been addressed through the purchase of high quality equipment that has safety
guards to ensure proper posture. The location of all equipment has been
carefully planned and will be continuously monitored to ensure it is most efficient.
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
o


To further assure the safety of all customers, fitness staff (who have first aid
training) will be walking around the facility monitoring the use of equipment, and
be available for any questions. The fitness staff are there to ensure customers
are provided with a high quality, safe experience.
Continuous monitoring of customer satisfaction: In order to ensure the quality of the
services provided and to ensure that the customer’s needs are being met, staff at Venus
Fitness will continuously interact with customers. This will occur in a number of ways.
o First there will be a customer satisfaction survey available at the front desk which
all customers are encouraged to fill out.
o Second, as part of their job, fitness staff will be required to develop relationships
with customers, interacting with them when they come in and meet with at
minimum two customers a week to assess the customer satisfaction and what
improvements can be made. It is essential to understand who the customers are
and how Venus Fitness can provide the most supportive and encouraging
environment possible to help these customers meet their personal goals. These
meetings will be tracked in the computer system, to ensure staff are meeting their
requirements. Any suggestions made will be recorded in the computer system
for review by the Fitness Center Manager. Monthly staff meetings will help to
ensure that everyone is on the same page and made aware of suggestions being
made.
Review of performance: In order to strive for continuous improvement and meeting the
needs of customers, it is necessary to monitor how the company is doing. The following
performance review strategies will be implemented:
o Customers: Through continuous communication with customers, Venus Fitness
will be able to track the customer success as well as customer traffic through the
gym. This in addition to the tracking of gym traffic through the card reader
system will allow for review of performance of customers. Customer satisfaction
is linked to the ability of customers to meet their goals, and thus the number of
success stories will indicate whether or not customers are receiving the services
they need. Traffic information will allow management to assess how often
members are using the facilities, thus assessing whether members are making
use of their membership and the services offered.
o Financial: Quarterly review of the financial statements and maintenance of an
ongoing budget with the help of a bookkeeper will allow for monitoring of the
center’s financial performance. This will allow management to identify whether
or not targets are being met and where adjustments need to be made to achieve
greater efficiencies, which is essential to the financial success of this business.
o Competitors: In order to ensure customer loyalty through continual improvement
in quality, variety, and specialty programs provided, management will be
monitoring the latest actions taken by competitors and respond to them. In
regular quarterly management meetings, action plans to ensure Venus Fitness
remains competitive in the industry will be developed and implemented.
o Goals and objectives: Venus fitness has established several goals and
objectives over the next five years in order to monitor success of the company.
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
5.0 The Human Resources Plan
Job Descriptions
Fitness Centre Manager/Personal Trainer
 The manager must have the ability to manage a team of approximately 10-15 people as
well as effectively running the day-to-day operations of the fitness centre. The person
will have an understanding of basic accounting, as they will be expected to keep up the
financial records of the business as well as perform payroll functions.
 The manager will also be responsible for the hiring and termination of employees.
 The manager will also be a certified Personal Trainer Specialist with Can-Fit-Pro or
equivalent and will be responsible for creating programs for clients with the Supervisor
and training fitness staff. As a personal trainer, the manager will meet with clients and
set up personalized exercise programs.
This position would be filled by Sarah Feldman, who is the majority shareholder. Sarah has a
business diploma and several years of experience working as a general manager for a small
business in Saskatoon. Sarah recently was certified as a Personal Trainer Specialist in the
hopes or starting Venus Fitness with her associate Angela Ringwald.
Fitness Supervisor/Personal Trainer
 The supervisor must have a combined Kinesiology & Leisure Degree and be a certified
Personal Trainer Specialist as well as a Pre- & Postnatal Specialist certification with
Can-Fit-Pro or equivalent.
 The supervisor would be responsible for creating programs for clients along with the
manager, training fitness staff and meeting with clients and setting up personalized
exercise programs.
 The job would also include organizing group fitness and information sessions and
contracting instructors.
This position will be filled by Angela Ringwald, an associate of Sarah Feldman, who graduated
from the University of Saskatchewan with a combined Kinesiology & Leisure Degree. She has
been working at a civic leisure centre and is looking for a new challenge and has been certified
as a Personal Trainer Specialist and Pre & Post Natal Specialist.
Fitness Center Staff
 Staff members are responsible for selling the services to clients and therefore must have
good customer service and communication skills.
 Staff members would meet with new clients, provide instructions for the use of the
exercise equipment, assist in setting up basic exercise programs and coaching of
clients.
 Staff members also would be responsible for taking care of reception duties, ensuring
that the facility is kept tidy throughout the day, ensuring that clients are looked after and
are using the equipment appropriately.
 Staff members will be hired on either a part-time or a full-time basis
Child Service Manager
 The Child Service Manager would be responsible for running the day-to-day operations
of the childcare centre as well as managing child service staff.
 An Early Childhood Development diploma would be required as well as a clean criminal
check and current first aid training.
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
Child Service Staff
 Child Service Staff members would be responsible for the caring of the children.
 All staff would have to have clean criminal checks as well as current first aid training.
 Staff members will be hired on a part-time basis
Training
Training Programs for Fitness Staff – Fitness staff will be required to go through up to two
weeks of training, depending on their experience in the exercise industry. Training will include
understanding the programs offered and how to set up a basic program, proper use of
machines, first aid, and the administration requirements for signing up new clients, and
collecting payments. Training will be done primarily by the Fitness Supervisor and the Fitness
Centre Manager.
Training Programs for Management - Professional development will also be required for the
Manager and the Supervisor. Up to $500 will be reimbursed annually by Venus Fitness for
business related training for those two positions.
Labor Costs
Labor Costs are detailed in Appendix 10. At the start-up of Venus Fitness, labor costs are
expected to be approximately $225,000. Refer to Appendix 7 for staffing diagrams at start up
and at full capacity. Once the fitness Centre reaches capacity, the labor costs are expected to
increase to slightly above $300,000.
Human Resources Strategy
Venus Fitness wants to create an environment of support not only for the women of Saskatoon
but also for their staff.
 Staff members will be encouraged to make use of the facilities and have opportunities to
attend the different group fitness classes and information sessions offered at Venus
Fitness.
 Each staff member will go through the process of developing a personal fitness program
for themselves and be expected to maintain that program during the duration of their
employment in order to maintain personal health as well as better serve the client.
The lines of authority for employees are as outlined in the organizational structure. Fitness staff
will report directly to the Fitness Supervisor and Child Service Staff will report directly to the
Child Service Supervisor. Both the Fitness Supervisor and the Child Service Supervisor will
report to the Fitness Center Manager.
Shareholder Agreement
A shareholder agreement will be drafted by Venus Fitness Center’s lawyer and will indicate that
Sarah Feldman is to have control over the corporation. In the event that shareholders wish to
sell their shares, Sarah will have the first option to buy the shares from the shareholders before
any arrangements can be made with third parties. In the event of a share sale, the sale price
will be based on the value of the corporation at that time; the value of the business will be
determined according to the professional opinion of a certified business valuator. In the event of
a liquidation of the assets, after creditors and preferred shareholders have been paid, the
remaining amount will be divided proportionately among the common shareholders based on
their percentage ownership of common shares.
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
6.0 The Financial Plan
Financial Goals for Venus Fitness:
1. To earn a 20% return from Venus Fitness Center
2. To eliminate long term debt within 5 years
3. To earn a profit in second year of operations
Ten year projected financial statements are attached in Appendix 11.
Note that revenues are based on an estimate of memberships that are likely to be earned from
the Lakeview, Lakeridge, Lakewood and Briarwood areas of Saskatoon. With a total population
of 17,1106 we estimate that roughly 6,160 (36%) make up our target market of females aged 15
and older. We further broke down this group into:
Adult
Senior (65+)
Student (15-19)
4,312
616
1,232
Our expectation is that we can earn memberships from 7% of the population from each category
in 2009. We expect modest growth of 2% in each year and have conducted a sensitivity
analysis that also accounts for only 1% growth and 3% growth. The business can facilitate up to
1,000 members under the proposed space.
For detailed information on the operating and capital budgets, refer to the Operations Plan
(Section 4.0). In summary, we expect initial cash outlays to be as follows:
Equipment
Legal & Acct
Working Capital
Leasehold
Electronics
Promotions
Insurance
Misc.
Computer+
104,408
5,000
75,000
75,000
10,000
10,000
3,000
5,000
12,000
299,408
For detailed information on wages, salaries and benefits, refer to the Human Resources Plan
(Section 5.0). Total salaries, wages and benefits for 2009 are expected to be $223,590.
Salaries are expected to grow as business matures at a rate greater than inflation; see
projected income statements for figures.
Working capital requirements will be made up of lease and operating costs as well as salary and
monthly debt repayments. These amounts are estimated to be roughly $25,000. There will be
6
as per Wikipedia
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
no inventories and minimal Accounts Receivable and Accounts Payable. Accounts Receivable
is estimated at 1% of 1 month’s revenues. Accounts Payable is expected to be 15% of 1
month’s salaries which represent withholdings to be remitted to the Receiver General. Venus
Fitness intends to have an operating line of credit (secured by personal assets of the principal
shareholder) with a limit of $100,000.
Capital expenditures are expected to be as follows:
2009
250,408
2010
62,540
2011
36,384
2012
59,866
2013
47,866
Note: For years following there will be fitness equipment replacement costs annually of
approximately $47,866 (plus inflation) and computer equipment replacement costs of $12,000
(plus inflation) every three years.
Fitness equipment will be classified as CCA class 8 with a 20% rate. Computer equipment will
be classified in CCA class 45 with a 45% rate. Leasehold improvements will be classified as
CCA class 13 straight line over 10 years (1 lease period plus one renewal period). Note that all
Proprty, Plant, Equipment is amortized straight line over 3, 5 or 10 years.
Financing Mix/ Capital Structure:
Debt
Eq. Vendor
Op Line/Bank
Equity
Angel Investors
Sarah Feldman
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104,408
100,000
204,408
41%
100,000
200,000
300,000
59%
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
Ratio Analysis:
Ratio Analysis
2009
2010
2011
2012
2013
Investment
Utilization
Total Asset Turnover
1.19
2.04
2.43
2.82
3.56
Solvency
Debt to Equity
0.65
0.92
2.37
1.99
0.14
Profitability
Return on Assets
Return on Equity
-36%
-60%
-29%
-56%
-26%
-88%
4%
11%
42%
49%
Conclusion:
Goal # 1 (To earn a 20% return from Venus Fitness Center)
Worst
-9.74%
Base
9.83%
Best
20.19%
Goal
20%
Given the current business plan, the goal of a 20% return is just achievable in the best case.
Under each scenario (worst, expected, best) analyzed the enterprise will be profitable over the
long run. However, the cash flows generated are not sufficient to allow for the required return on
investment in the worst and base. It will experience negative returns on investment and be a
heavy cash burden on the ownership. Any venturer planning on pursuing this opportunity must
be committed and prepared to invest over a long run in order to be able to see significant
returns on investment.
Goal # 2 (To eliminate long term debt within 5 years)
All scenarios eliminate LTD by the end of 2013 (fifth year)
Goal # 3
2010
(To earn a profit in second year of operations)
Worst
Base
Best
(95,703)
(64,140)
(12,702)
Profits in the second year of operations are not realistic and unlikely even under the best
circumstances.
Conclusion
Significant changes need to be made to the business plan and Sarah Feldman’s initial vision of
the company in order to realize the desired 20% rate of return on equity. Suggestions to
accomplish this are as follows (See Appendix 7.1):
 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
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
References
California Fitness. Retrieved July 7, 2008. Website: www.californiafitness.ca
Curves. Retrieved July 7, 2008. Website: www.curves.com
Daycare regulations in Saskatoon. Phone conversation with Child Day Care Regional Office
(Saskatoon; ph (306) 933-6071), July 9, 2008. Website:
http://www.city.saskatoon.sk.ca/org/development/services/zoning_requirements/daycare_ce
ntres.asp
Dell Canada. Retrieved July 9, 2008. Website: www.Dell.ca
Gympost. Retrieved July 9, 2008. Website:
http://www.gympost.com/gymsearch/Canada/Saskatchewan/SK/Saskatoon/1/
Hammer Strength/Life Fitness. Retrieved July 10, 2008, Website:
http://us.commercial.lifefitness.com/content.cfm/hammerstrength
Intek Strength. Retrieved July 11, 2008. Website: http://intekstrength.com/
Ladies Workout Express. Retrieved July 2, 2008. Website: www.ladiesworkoutexpress.com
Occupational Profile. (n.d.). Retrieved July 8, 2008, from Saskatchewan Ministry of Advanced
Education, Employment and Labour. Web sites:
http://saskjobfutures.ca/profiles/profile.cfm?noc=647
http://saskjobfutures.ca/profiles/profile.cfm?noc=525
http://saskjobfutures.ca/profiles/profile.cfm?noc=0513
Power Systems. Retrieved July 10, 2008, Website: http://www.power-systems.com/
Pre & Post Natal Fitness Specialist (PFS). (n.d.). Can-Fit-Pro certification. Retrieved July 6,
2008, from Can-Fit-Pro Web site: http://www.canfitpro.com/eng/PFS.asp
Precor/Precor AMT. Retrieved July 10, 2008, Website: http://www.precor.com/
Schwinn Fitness. Retrieved July 11, 2008, Website: http://www.schwinnfitness.com
Spa Lady - the Fitness Leader. (n.d.). Retrieved July 5, 2008, from Spa Lady Web site:
http://www.spalady.ca/
Western Investor – April 2008. Retrieved July 8, 2008. Websites:
http://www.sreda.com/common/uploads/WI_B50B51.pdf
www.westerninvestor.com\
SREDA Update – Spring 2008. Retrieved July 8, 2008, from Saskatoon Regional Economic
Development Authority (SREDA). Web site:
http://www.sreda.com/resources/pdfs/SREDAupdateApr22.pdf
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
Appendix 1 - SWOT Analysis for Venus Fitness Center
Strengths
Weaknesses
- Offer specialized services for pregnant
- Several fitness facilities already
women and new mothers – not offered
located in the Saskatoon area with
by other fitness centers in the
established clientele
Saskatoon area
- Large start-up costs for equipment,
- Childcare services offered with
leasehold improvements, and leases
accredited child care workers
due to large building required
-
Jugo Juice juice bar offered next to the
facility to provide healthy food options
-
Comfortable lounge area located on-site
in order to facilitate social and support
groups for women and expectant and
new mothers
-
Partnerships with the Saskatoon Health
Region and Lululemon Athletica offer
access to the target market through
organizations that share similar goals
and philosophies
-
Fitness programs offered by Venus
Fitness Centers, such as Yoga, Pilates,
spin classes, and dance have been
increasing in popularity in recent years
Opportunities
- Recent rise in demand for specialized
women’s fitness facilities
-
-
-
Growing Saskatoon population and
located in a new affluent neighborhood
in the Saskatoon area
-
Threats
- Recession in Saskatoon economy
could shrink target market of women
with annual incomes > $60,000 per
year
-
Women joining for specialized
services (ie. pre and postnatal
services) may not remain members
after specialized courses finish
-
Women may not view Venus Fitness
staff as being qualified to provide pre
and post natal services without
medical doctors or nursing staff on
site and/or women may not see the
value in the price of the monthly
membership fee for the services
provided
Changes to tax regulations offer
incentives for individuals to become
physically active
Social pressures for individuals to
become more physically fit have
developed in recent years due to the
obesity epidemic
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Products can be easily imitated by
competitors by offering similar
services, however the partnerships
developed with the Saskatoon Health
Region and Lululemon Athletica will
help mitigate this risk making
exploiting such services difficult for
competitors
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
Appendix 2
Marketing Research Survey – Women Fitness Facilities in Saskatoon
(Note: For females only)
1. Do you currently attend a fitness facility in Saskatoon?
a. Yes
b. No
2. If yes, which one? _______________________________________
3. If no, why not? _________________________________________
4. Do you prefer to work out in a female only environment?
a. Yes
b. No
5. If no, why not? __________________________________________
6. Are you interested in a fitness facility that offers services beyond fitness equipment?
a. Yes
b. No
7. Would you be interested in a gym that specializes in programs offered for prenatal and
postnatal women?
a. Yes
b. No
8. Would you be interested in a gym that offers a supporting and encouraging environment
for expecting mothers, new mothers, and mothers in general?
a. Yes
b. No
9. Would you be in a gym that specializes in facilitating physical, nutritional and mental
well-being through a variety of sessions, programs and seminars?
a. Yes
b. No
10. Do you have children that are in the age range requiring daycare services?
a. Yes
b. No
11. Would you be interested in a fitness facility that offers professional childcare services?
a. Yes
b. No
12. What monthly fee would you be willing to pay for a fitness facility that caters to the
women of Saskatoon with a emphasis on prenatal and postnatal mothers that offers a
variety of professionally designed physical and mental health classes coupled with a
premium daycare service?
a. $40 - $50
b. $50 - $60
c. $60 - $70
d. $70 - $80
Other comments?
Thank-you very much for your time and help!!!
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
Appendix 3
Location in Saskatoon, Saskatchewan
Lakewood
Venus Fitness
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Stonebridge
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
Appendix 3 (con’t)
418 Herold Court, Saskatoon, SK
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
Appendix 4 – Organizational Structure
Fitness Center
Manager
Child Services
Supervisor
Child Services
Staff
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Fitness Supervisor/
Personal Trainer
Fitness Center
Staff
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
Appendix 5 – Venus Fitness Center Floor plan for 418 Herold Court location
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Business Plan for Venus Fitness Center (Client: Sarah Feldman)
Appendix 6
Weekly Schedule for Multi-Purpose Room - January - April 2009
6:00
Monday
Tuesday
Spin
Spin
6:00
Wednesday
Thursday
Friday
Spin
Spin
Spin
Saturday
6:00
7:00
7:00
7:00
8:00
8:00
8:00
9:00
Preggi Power
(Pre-Natal)
Post-Natal
Fitness
10:00
11:00
9:00
Strollerobics
12:00
1:00
Strollerobics
Strollerobics
Step Ahead
Dance
12:00
3:00
4:00
6:00
Mom & Baby
Pilates
3:00
2:00
3:00
4:00
Yo Momma
Yoga
Mom & Baby
Pilates
Networking
Night
Yo Momma
Yoga
6:00
5:00
6:00
7:00
Post-Natal
info session
7:00
Pre-Natal Info
session
8:00
Cardio Mixup
8:00
Cardio Mixup
Boldt Consulting
Preggi Power
(Pre-Natal)
1:00
Well Being
Seminar
(External
Health Expert)
2:00
5:00
Strollerobics
11:00
12:00
4:00
Yo Momma
Yoga
9:00
10:00
1:00
Well Being
Seminar
(External
Health Expert)
2:00
5:00
Preggi Power
(Pre-Natal)
Post-Natal
Fitness
10:00
11:00
Step Ahead
Dance
Preggi Power
(Pre-Natal)
7:00
Cardio Mixup
28
8:00
Post-Natal
Fitness
Sunday
Business Plan for Venus Fitness Center (Client: Sarah Feldman)
Appendix 7 – Venus Fitness Center Staffing Diagrams
Boldt Consulting
29
Business Plan for Venus Fitness Center (Client: Sarah Feldman)
Appendix 7.1 – Adjustments to Operations to Increase Returns
In order to recognize a 20% rate of return on Venus Fitness, there has to be some
adjustments made to decrease operating expenses. However, any adjustment is going to
come at the cost of the non-financial values such as quality.
The following adjustments were done with the results highlighted below:
 Salaries of fitness staff was adjusted to $12.50/hour from $14.50/hour
 Fitness staffing levels at the start-up were decreased to 1.75 full-time equivalent
positions
 Capital replacement costs were reduced to 10% of equipment per year, noting that
weight and circuit machines would likely not have to be replaced every five years if
they are properly maintained.
Results
NPV
IRR
Boldt Consulting
Worse Case
(373,603)
3.29%
Base Case
(89,079)
16.41%
Best Case
126,950
25.35%
30