The HKH health and fitness center

1. The HKH health and fitness center Hanna Hanson, Kiana Coffey, and Harleigh LeBarge

2. Management Team • Hanna Hansen- Marketing Management • Harleigh LeBarge- Operations Management • Kiana Coffey- Accounting/Financial Management

3. Preliminary Requirements • State and Federal Tax ID numbers to enable us to process payroll • St. Lawrence County Business Permit • Legal services to become a corporation – cost of $5,000 to $10,000

4. We will cater to the needs of people looking for fitness opportunities who work not only traditional working hours, but non-traditional (military personal, stay at home parents, retirees, and students). • Our overall goal is to address the needs of all individuals who due to the relative isolation of northern New York are prohibited from having easy access to fitness facilities.

5. We will generate revenue from offering a wide range of fitness services, with numerous fee options including weekly, monthly, annual memberships, and introductory membership discounts.

6. Our business concept is unique to Northern New York due to the wide range of services that we will offer including physical therapy, personal training, Zumba, body pump, and RPM. • We feel that there are no other businesses in our target area that offer all of these fitness services. Additionally, we will offer limited child care services and a limited snack bar.

7. Place - location • 27 West Main Street Gouverneur New York 13642 –Route 11 • Phone number 315-287-1234 • Monthly lease of $1,200

8. Our Hours • Monday through Friday our hours are 7 am - 9 pm • Saturday and Sunday 8 am – 12 am

9. Target Market We will seek a target market of approximately a 40 to 50 mile radius including the towns of Gouverneur, Canton, Potsdam, Ogdensburg, Hermon, DeKalb, Morristown, Hammond, Antwerp, Edwards, Fowler, Russell and possibly Philadelphia, and overall, southern and western St. Lawrence and northern Jefferson Counties. We will direct our marketing efforts at males and females ages 17 – 70 who are seeking fitness opportunities and physical therapy services.

10. We feel that our business is very unique to Northern New York. There is not a business that currently exists that offers the wide spectrum of services that HKH will provide to its customers.

11. Equipment • Our facilities provide services that use treadmills, elliptical machine, bars and benches, weight balls, yoga balls, weights, stair master, etc.

12. Memberships • Monthly memberships will be $50 each month • Annual memberships will be $420 for one year • Daily rates of $12 • Physical Therapy $75 an hour with a 40 hour week

13. Instructed Classes • Instructors that teach classes like Zumba, yoga, body pump and RPM • So our classes will be updated every three months and that will keep our customers coming. With new music, new classes and new moves our customers don’t have a chance to get bored. We will also supply yoga mats for the customers who don’t have any.

14. Child Care Services • We will offer limited child care services while the parents/guardian is working out. • Our babysitters and our daycare facility are licensed by the NY State Department of Health.

15. Snack bar • We will provide a snack bar that will offer product such as water, sports-drinks, protein and energy bars. In addition to that we will offer nutrition supplements and protein powder. • We are licensed by the NY State Department of Health, Food service establishment, to hold the Snack Bar.

16. Extras • We will provide TV, internet, and phone services to our clients. The TVs located near the fitness equipment so it can be used while they workout, and wireless Internet for laptops, tablets, and cell phones.

17. Price/Budgeting • General Fitness Membership Sales Projections: 500 monthly memberships @ $50/each for 12 months = $300,000, • 400 annual memberships @ $420 = $168,000, • Daily Rates of $12 (for marketing-encouraging growth in membership) projected to generate revenue of $400

18. Physical Therapy Sales Projections: 40 hours of services per week @ $75/hour (52 weeks) = $2,948 • Supplies and Snack Bar Sales Projections: Projected daily sales of $400/day for 363 days = $145,200

19. Price/Budgeting • Populations of Targeted areas • Total population of St. Lawrence County 111,919 • Canton town 10,995 • De Kalb town 2,434 • De Peyster town 998 • Edwards town 1,156 • Fowler town 2,202 • Gouverneur town 7,085

20. Hammond town 1,191 • Hermon town 1,108 • Lisbon town 4,102 • Macomb town 906 • Morristown town 1,974 • Ogdensburg city 11,128 • Oswegatchie town 4,397 • Parishville town 2,153 • Potsdam town 16,041 • Rossie town 877 • Russell town 1,856

21. Canton village 6,314 • Edwards village 439 • Gouverneur village 3,949 • Hammond village 280 • Hermon village 422 • Heuvelton village 714 • Morristown village 395 • Ogdensburg city 11,128 • Potsdam village 9,428 • Rensselaer Falls village 332 • Richville village 323

22. Summary Target Population Info • Additionally, the populations of Potsdam and Canton increase by over 13,000 (8,000 for Potsdam and 5,000 for Canton) when college is in session. • Given this data, a total of 104,327, or 117,000 considering the colleges, we are confident that are Target Market Population is sufficient to meet our income estimations!

23. Summary Target Population Info • As is true for national chains such as Planet Fitness, our membership will be dynamic and subject to constant change.

24. Projected Annual Expense Budget

25. Projected Total Revenue: $616,548 • Projected Total Expenditures: $475,000 • Projected Net Profit: $141,548

26. The next series of slides will offer a budget analysis of our critical budget areas (related to our start up costs)

27. Cardio Equipment • We will plan to spend within a budget $40,000.

28. Weights We will budget $90,000 for the purchase and maintenance of weight systems.

29. Towel service • We will have hand towels and available for everyone. Each dozen of hand towels that we get will cost us 26 cents. The rental service picks up the dirty towels at the end of each week and delivers us clean ones. We will need 40 dozen hand towels. Which will cost us 10.40$ a week. We will also get shower towels which will cost us 30 cents a dozen and we will need 20 dozen shower towels. That will cost us 6.00$ a week.

30. Staff • Certified Physical Therapist (1) • Licensed Instructors (1) • Personal Trainers (2) • Licensed Babysitters (1) • Receptionist (.5) • Cleaning staff (.5)

31. Beginning Loan • We will take out a loan for $600,000 that will help with the equipment and rent for a year . The loan will also provide funding for our initial payrolls. • This business plan will act as a tool for us to utilize when working with the banks. • The building that we will be leasing will need some renovation, at an estimated cost of $200,000.

32. Renovation • The building that we will be leasing will need some renovation, at an estimated cost of $200,000, as follows: • General Construction (removing and changing walls, floors, etc.-est., $40,000) • Electrical (changes for TV, Internet, equipment, est. $25,000) • Construction and Plumbing (for shower rooms and bathrooms, est. $135,000) • Future plans will included enhancements for all of the above

33. Federal Funding • Since the HKH Health And Fitness Center has a Physical therapist we will be able to help the people who are in need of a place to go to get professional and affordable help for their rehab. Our customers who need that help will be recommended by their doctors. With the recommendations from the doctors we will be able to have the government support pay the paycheck of the physical therapist, but the costumers who go to see the physical therapist will get a discount when they come.

34. Promotion • Our promotion will be on the Internet, local Watertown Television stations, social networking, newspapers (Watertown, Ogdensburg, Gouverneur, and Massena/Potsdam) and local radio stations. We also hope to have promotion by word of mouth and by distributing business cards. We will also sell our own custom t-shirts to our customers. These will be available at the Snack Bar.

35. Promotion • Our slogan will be, “You got some extra pounds?! Come shed them off at the HKH Health and Fitness Center!!”

36. Competitors • Our business is very unique in Northern New York. • There is no business that currently offers the wide spectrum of services that the HKH does.

37. Targeted Competitors • SUNY Canton • Clarkson University • Planet Fitness- Watertown • Curves-Watertown – Ogdensburg- Potsdam • YMCA- Watertown • Jazzercise- Potsdam • 5 Star Fitness Center for Women- Gouverneur • Fitness Works – Ogdensburg • Reflections- Heuvelton • Sports Physical Therapy- Watertown • Canton- Potsdam Hospital

38. Insurance • Our insurance plan will be Progressive Commercial, and we will be covered for our building, equipment, liability and expert training. When we’re insured and property is damaged, we are protected for loss of business income. Progressive insures our net income and continuing normal operations expenses, including payroll, for up to 12 months with no present amount.

39. Microeconomics • As the quantity of services that we supply to our target market increases we may be able to increase our prices. • For Example, if demand requires that we offer more classes, it is also likely that we can raise the prices for the classes over time. • However, initially we may need to decrease prices to develop a solid customer base, and overtime as the demand for our services will eventually increase and then we can slowly raise our prices to realize our profit expectations.

40. Unwritten Rules • The customer is always right no matter what. • “buyer beware or for our business”, this would involve the requirement that once we provided appropriate training to our clients, we will assume the risk that clients would use the equipment properly. • With that said, we would have first aid kits/services and an AED available in the case of emergencies.

41. Marketing Strategy • We will have our customers pay ahead of time that way we would be able to give a discount. • With this plan our business will have money throughout the whole month and there will be no worries.

42. Future plans • If our business is successful for the next couple of years we will then be able to pay off all of the loans we had to take out. Then eventually we will be putting in a pool. • We realize that our business plan is ambitious – if our 6 month balance sheet and income statement data does not meet our projected profit margin, we will consider scaling back services offered, reducing staff to the three co-owners.

43. Product Life Cycle • Time and the demand for the product correspond with each other. Over time the demand for the product usually decreases. But with our business, the product demand will remain the same over time. With our wide range of services that we offer, it is projected that the demand for our business will not decrease.

44. In Summary, HKH Health and Fitness Center will offer monthly and annual memberships for the following services: • RPM • Body pump • Zumba • Yoga • Cardio exercise • Weight lifting • Physical therapy • Free limited child care • Snack bar-offering nutritionally sound beverages and snacks

45. Summary Continued • Its hours of operation will be Monday-Friday, 7am – 9pm, Saturday and Sunday, 8am – 12am. • Our website can be found at: http://www.ekcsk12.org/faculty/tremington/hkh%20fitness.mht

46. QUESTIONS?