Business ProPosal
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Mission StatementBusiness PhilosophyMarketing PlanLimited Liability CorporationBurn to Earn ProgramProducts & ServicesCustomersCompetitionCompetitive AnalysisLocationsGym Floor PlanEquipment CostsGrid-Tie Inverter SystemPersonnel & Work ScheduleHours of OperationLegal EnvironmentStart-up CostsFinancialsGrowth StrategyMembershipSummaryStationeryWebsite
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Table of Contents
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wind
hydro
solar
human
Mission Statement
We intend to provide residents of Louisville a
workout facility with a small, community-based
atmosphere, while emphasizing our environ-
mentally friendly corporate philosophy. We will
differentiate our product by way of the sustain-
able innovations that we will promote with
our energy producing machinery and various
marketing strategies.
Business Philosophy
There are many problems in the world today.
We at Self Propel feel that we have successfully
found a means of addressing two of them at
once—an overweight population, and a depen-
dence on fossil fuels as a means of producing
energy. This idea won’t make us a fortune, nor
will it, in and of itself, change the world. These
aren’t our goals though. Our main focus is to
make people more environmentally conscious.
We want them to realize that when they turn
their TV or microwave on, the energy they are
using is a precious commodity and one that
shouldn’t be taken for granted. In essence, we
want to plant a seed that could potentially grow
into an environmental revolution.
Of course as a gym, our main goal is to
facilitate the fitness of our members. Our gym
design is conducive to getting some serious work
done in a small community-based environment.
We have weight-machines to target every muscle
group, as well as several cardio work-stations.
We will educate our members in the importance
of a good diet and a regular workout regimen
in a supportive way, which encourages our
members to keep at it. But it is about more than
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just getting a workout. For years, when people
exercised, they were essentially “throwing away”
the energy they produced. It is our goal, as well
as our duty, to design a facility which integrates
an energy collection, reintroduction, as well
as a broad-based education in environmental
responsibility with the stellar workout and
personal training we will provide at Self Propel.
There are several ways that Self Propel
will promote environmental responsibility, the
machines are only being a small part of our
“green” philosophy. Every decision we make
and each action we execute will be in lieu of
minimizing our environmental footprint. From
the light bulbs we use, to the toilets we install,
to the orientation of the initial construction of
our gym, we will take every advantage to teach
people about ways to better the world we live in.
Even if we can’t change the world by ourselves,
in cooperation with the local media, we fully
intend to be a frontrunner in the revolution.
Marketing Plan
Self Propel Fitness is an environmentally friendly
health club that creates a personalized environ-
ment for men and women to pursue their fitness
goals. We have eco-friendly equipment and the
best training program in this area. We prepare
our clients for success!
Self Propel Fitness is going to have three
different locations, one in Middletown, Dutch-
man’s Lane, and Chamberlain Point. The areas
are all upscale and affluent and although they
already have a few health clubs, none offer
our unique “green experience.” These shop-
ping centers are all conveniently located across
Louisville, with easy access off the main road as
well as plenty of parking.
From the selection of different workout
machines to the unique rewards system for
burning calories, we are confident that Self
Propel Fitness will create a supportive experi-
ence that will bring in new members by word of
mouth throughout the community.
Limited Liability Corporation (LLC)
For all intents and purposes, Self Propel will
operate as an LLC or Limited Liability Corpo-
ration. An LLC is a hybrid entity combining
characteristics of a Corporation with those of a
Partnership. There are some distinct advantages
to operating as an LLC, as well as some disad-
vantages, which are both to be discussed below.
The primary advantages of operating as an
LLC are protection from personal liability and
f lexibility of taxation. As a Limited Liability
Company, the members (owners) of Self Propel
will be protected from personal liability above
and beyond their respective capital allocations.
This essentially means that if someone were
injured in the gym, parking lot, etc. or if there
were some other civil suit brought upon the
company, the liability would be limited to the
business. For example, if someone dropped a
dumbbell on their face requiring surgery and
suing for punitive damages, their entitlement
would be limited to the company’s assets and
they couldn’t attack the members (owners) and
seek our own personal assets.
As aforementioned, the LLC entity allows
for significant flexibility in terms of taxation.
Although you are allowed to file as a C-corpo-
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ration or an S-Corporation, Self Propel will
take advantage of the pass-through taxation,
similar to that of a Partnership. This means
that the income generated by Self Propel will
be distributed according to the equity positions
(equally in our case) of its members. The tax
rates will then be determined by the rates appli-
cable to the respective individuals. Using the
LLC entity, Self Propel members will effectively
avoid the double-taxation which is encountered
by Corporations.
The main disadvantage with operating as
an LLC is that it can be difficult to raise capital.
Corporations use stock as their equity portion,
so when more is needed, they can issue more
shares. That isn’t an option with LLC’s. Also,
as an investor, it may be more desirable to invest
in a company who you can more easily research
and since LLC’s aren’t required to do financial
reporting, the information isn’t readily available
to the public. Self Propel doesn’t have to worry
about this however, because the entire capital
portion of the financing is through its members.
Our growth strategy is built around our retained
earnings; therefore we needn’t worry about
raising additional capital.
After doing careful analysis of all the issues,
as well as other feasible business entities, it was
with unanimous agreement that we, at Self
Propel, decided to operate as a Limited Liability
Company. We believe it will be well worth the
minute costs of administration and charter to
protect ourselves from financial liability, as well
as establish ourselves as a well recognized, well
trusted entity.
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“Burn to Earn” Program
There are two main objectives within our B2E,
or “Burn To Earn” Program. The f irst is to
advertise to the public at a low cost. The second
is to motivate our members by rewarding them
periodically commensurately to the work they
have done.
Although the B2E Program isn’t entirely
self-suff icient, it is partially covered by the
energy savings that the members generate. Our
advertising budget is $250 per month. $150
of that will be spent on direct advertising and
marketing, while the other $100 will be going
to offset the cost of our purchasing the apparel.
We will be selling t-shirts and duffel bags in
our gym every day. Eventually, we will take
the profit we earn for those sales and use it to
subsidize the cost of the earned t-shirts from the
B2E Program. We classified the program as an
advertising expense because members will wear
these shirts and carry these duffle bags within
the community and people will take notice.
This will ignite our word-of-mouth advertising
strategy and help initiate the interest of our
target demographic.
The average person can burn 400 calories
in a thirty minute session. We decided to use
averages because every person is different, and
keeping track of individual calories would be
extremely complex and expensive. We decided
that 1 calorie burned equals 1 point. Therefore,
after 50 hours of work, the average person should
reach the 40,000 point club. The member may
cash in their points at this time to receive a
special shirt that reads “Self Propel 40,000 point
club!”, giving them something sentimental in
value for what they have accomplished. If the
member decides not to cash in their points, he or
she may continue on to the 80,000 point club.
Here they will be able to exchange their points
for a duffle bag (which would cost us twice as
much to buy).
We wanted to make the first tier a mile-
stone. It will be extremely rewarding for the
member, knowing that they burned 40,000
calories by working out. Also, every time they
reach a higher tier, their name will be placed
on our “Self Propel Club” wall of achievement,
under the appropriate point category. We feel
that the harder you work, the more meaningful
your goals are when you reach them. “B2E” will
also keep our members coming back because
they will have invested their energy into the
program. They can now visualize their progress
through the total number of calories burned.
Self Propel members will be working out for a
purpose, rather than simply going through the
motions. This creative way of advertising will be
fun for everyone, and it will help to attract and
keep members.
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Products and Services
We will offer a variety of products for people to
purchase in our gift shop or earn through our
‘Burn to Earn’ program. We will have water
bottles, T-shirts, and duffel bags that display our
logo (which will essentially act as advertising).
Our friendly and knowledgeable staff as well as
our exciting new form of energy production will
set us apart from our competition. Self Propel
gyms will include an energy grid that transfers
human energy into electricity, tinted windows
for natural lighting and energy conservation,
fans rather than air conditioning (at various
times of the year), laptops instead of desktops,
LCD TV’s versus Plasma TV’s, Inkjet printers
which are more efficient than laser printers, and
special water fountains. We will also be sure to
unplug at the end of everyday and we will offer
recycling bins throughout our facility.
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sorts are finally taking notice of their negative
contributions to the environment, and they
are changing the way things are done. At Self
Propel, we fully intend to do our part to locally
contribute to the global solution.
We are proposing an environmentally
friendly gym that will be targeted toward a
demographic that is interested in getting into
shape, while helping the environment. Self
Propel Fitness Center is introducing an entirely
new form of energy production, and that is
human power. Our gym will focus on creating a
positive atmosphere for promoting healthy life-
styles for our members as well as improving the
environment. It is time that there is an option
for people to put their energy to good use. Our
promotional budget is $250.00 a month and
this is further detailed in the financial state-
ments within this proposal.
Locations
For our gym we are proposing three Louisville
area locations. All the locations will be centered
towards the east end of Louisville. The east end
provides us with a large concentration of high
Customers
Most gyms in Louisville service between
5,000-10,000 members. Our 600 member gym
has a small community feel that will help build
relationships between members and staff.
Competition
Curves is our main competition; with a compa-
rable target demographic. We want a gym that is
on the smaller side, and provides a community
feel to our members. We are targeting women
ages 20 and older to mainly use our facility,
while at the same time inspiring their spouses to
reach their healthy goals along with them. The
inclusion of men sets us apart from the ‘women
only’ aspect of Curves. Our innovative equip-
ment will support the modern age’s theme of
sustainability. It has been engineered to transfer
human energy into energy that will help power
our facility.
Louisville Athletic Club, Urban Active,
and Gold’s Gym are three Louisville area large
gyms. While they are not our main competition,
we will still be competing with them. These
gyms are built on a much larger scale than Self
Propel. We will be offering much of the same
equipment as they do, but we will be providing
better and more personal service.
Competitive Analysis
In the fast-paced modern era in which we live,
humans have taken increasingly negligent steps
to fuel our growing necessity for technology and
power. This energy consumption has burned
up the Earth’s fossil fuels and destroyed our
atmosphere. Businesses around the world, of all
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income families that we will be targeting. All
three of our locations offer the 3,500 sq. ft. that
our floor plan requires. Each location is priced
around $16 per sq. ft., which is a very affordable
price in the east end of Louisville.
Location #1: 9706 Brownsboro Road
For our f irst location we wanted to tap into
the large Springhurst and Brownsboro market.
Springhurst is home to seven medium sized
neighborhoods and each neighborhood is only a
7-20 minute drive from our St. Matthews loca-
tion. Chamberlin Point is directly across from
the Summit Shopping Center and in proximity
to the Tinseltown movie theater. We picked this
location due to its high volume of traffic. LAC
and Snap Fitness are nearby, but we feel that the
market is not overly saturated and that we will
provide a unique service not yet provided by the
other two gyms. Our location is just down the
road from Kentucky Country Day. We hope to
attract nonworking mothers before and after
they drop their kids off at school.
Location #2: 6403 Dutchman’s Parkway
Our second location is just off Dutchman’s Lane
by the hospitals. This is a high traffic area filled
with retail spaces and restaurants. We felt like
this would be a good location for our business
#2
#1
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since there are no other gyms located in this area.
It offers the Bardstown Road, Taylorsville Road,
and Poplar Level Road area without the high
priced rent. This location also provides better
parking. Dutchman’s Lane is a ten minute drive
from the back half of St. Matthews (located
directly behind the malls) that will offer us a
large population as well.
Location #3: 11803 Shelbyville Road
Our third location is in Middletown near the
new Target, Wal-Mart, and Kroger. We feel
that this location will provide us with a high
traff ic volume due to its central location in
the area. Middletown is home to some of the
largest neighborhoods in Louisville. It includes
Lake Forest, Polo Fields, and Douglas Hills.
All three of these neighborhoods are in a high
income area, and are within ten minutes driving
distance. We also chose this location because it
is near Christian Academy. We again, hope to
attract nonworking mothers who are in need
of a convenient workout facility after dropping
their kids off at school.
Gym Floor PlanSelf Propel gyms will be 3,500 square feet
of area. Each gym will include a men’s and
women’s locker room, storage room, fitness class
room, cycling room, machine and free weights
section, two front offices, a small dinning area,
and a check-in counter.
#3
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0 ft 10 ft 20 ft 30 ft 40 ft 50 ft
70 ft
60 ft
50 ft
40 ft
30 ft
20 ft
10 ft
0 ft
ShoulderPress
ChestIncline
Chest Press
Fitness Classes27’ 6” x 15’
10’ x 7’ 6”
10’ x 7’ 6”
Tred Tred Tred TredElliptical
Elliptical
Elliptical
Elliptical
Elliptical
Elliptical
Leg Press Calf PressBack
Extension
DipMachine
Leg Curl Chest FlyMachine
Tricep Extensionss
CurlMachine
LegExtension
Shower
Shower
Shower
Shower
Benc
hBe
nch
Bench
Bench
Storage6’ 3” x 6’ 3”
Bike Bike Bike
InstructorBike
Bike
Bike Bike Bike
Cycling ClassesCyclin asses27’ 6 “ x 13’ 9”27’ 6 3’ 9”
Bike
Bike
Bike
Check-In16’ 3” x 7’ 6”
Benc
hBe
nch
Women’someLockerock
16’ 3” x 20’3” x
Men’sMenLockerock
16’ 3” x 15’3” x
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Equipment Costs
Machine Name Units Unit Price Total Price
CTS 350 SB Spinning Exercise Bike 13 $ 621 $ 7,751
CTS 375 EL Elliptical Cross Trainer 6 1,676 9,654
CTS 200 EX Commercial Tredmill 4 2,719 10,441
PS 230 Leg Press/Hack Squat 1 2,880 2,765
PS 233 Prone Leg Curl 1 1,770 1,699
PS 231 Leg Extension 1 1,831 1,758
PS Chin/Dip Assist 1 1,909 1,832
PS Calf Extension 1 1,764 1,694
PS 206 Bicep Curl 1 1,665 1,598
PS 205 Shoulder Press 1 2,042 1,960
PS 211 Triceps Extension 1 1,737 1,667
PS 208 Low Row 1 1,637 1,571
PS Pec Fly 1 1,776 1,705
PS 204 Incline Press 1 2,042 1,960
PS 200 Chest Press 1 2,048 1,966
PS 275 4-Station Jungle Gym 1 3,845 3,691
RID 345 Multi-purpose Bench 2 288 553
PF 2650 2-Tier, 12-Pair Saddle DB Rack 1 671 644
Total Cost $ 54,910
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Grid-Tie Inverter System
One of our highest concerns is minimizing our
dependence on the power grid. Human power is
captured using 48-volt DC generators mounted
to select workout equipment. The power from
each device is channeled through diodes to
prevent energy losses from reverse flow. From
the diodes, the power is used to charge batteries
in a 48V battery rack (to buffer the power
system). This battery rack powers a Grid-Tie
inverter, with battery tending equipment
to maintain the batteries when the workout
equipment is not being used. Dependent on
the location, different inverters are available to
tie into single-phase 120/240V power systems,
or three phase 207/240/277V power systems.
Single-phase power is the same as in most
households, and three phase is an industrial
style power system, popular because of its
higher efficiencies. Power generation is depen-
dent on workout load. An estimate of $10,000
for grid tie equipment is reasonable. We feel
that the system will be well worth the cost in
both value to the earth and our members.
*Grid-Tie information was provided by a graduate
student of mechanical engineering at the Univer-
sity of Louisville.
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Personnel & Work Schedule
Location 1: Marlena & Matt
Location 2: Maggie & Zack
Location 3: Kyle & Anthony
Hours of Operation
Monday-Friday: 7am-8pm
Sat: 10am-3pm
Sun: Closed
Legal Environment
Equal Employment Opportunity Statement:
Self Propel provides equal employment oppor-
tunities to all applicants without regard to
color, race, religion, gender, sexual orientation,
national origin, disability, or age. All three of
our Self Propel locations comply with all state
and local laws dealing with non-discrimination
in employment. This policy applies to all terms
and conditions of employment, including, but
not limited to, hiring, placement, promotion,
termination, layoff, recall, transfer, leaves of
absence, compensation, and training.
Self Propel prohibits any form of unlawful
employee harassment based on color, race, reli-
gion, gender, sexual orientation, national origin,
disability, or age. Improper interference with
the ability of Self Propel’s employees to perform
their job duties is not tolerated in any way.
Our business does not qualify for the
need of an OSHA inspection. However, our
individual branches will be knowledgeable on
our safety regulations for Self Propel. These
regulations will be strictly upheld to ensure a
safe work, as well as workout, environment for
our employees and members. A copy of our gym
code of conduct and safety regulations will be
posted at all locations to make our members
aware of these policies.
Self Propel and its logo are registered
trademarks with the United States Govern-
ment to differentiate our gym over time and to
guard against property right infringement. Our
website maintains the rights to its domain name
www.selfpropel.com. Patents are currently
pending on our special equipment that harnesses
human power and converts it into energy using
our advanced grid system.
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Startup Costs for All Three Locations
Loan $ 315,000 Purchase Equipment $ 180,000
Contributed Capital $ 120,000 Equipment Retrofit $ 30,000
Remobel $ 75,000
Total Cash $ 435,000 Total Startup Cost $ 285,000
Cash Slush Fund $ 150,000
Startup Costs
Since we will be opening three locations, we
need a large amount of initial capital. Each
member of our group has agreed to contribute
$20,000 from our personal savings to start Self
Propel. We feel that it is important for each of us
to personally have a stake in the business. The
capital will also help to lower our loan value,
saving us thousands in interest expense. We
have secured a 15 year, $315,000 loan, at a 5%
annual interest rate. The table provided above
is a breakdown of our startup expenses for all
three locations combine.
We will be spending $60,000 at each
location on a variety of athletic equipment.
Another $10,000 will be spent on retrofitting
elliptical machines, treadmills, and spin bikes
to be patched into the electrical system of the
building. At each location, $25,000 will be spent
on computers, TV’s, signs, fans, lights, carpet,
paint, and any other remodeling expenses. In
total, the startup cost for each location is esti-
mated to be $95,000. That will leave $50,000
for each location as a slush fund to cover the first
year’s operating loss.
Financials
The following pages contain our projected
financial statements, including income state-
ments, and balance sheets. We chose to exclude
a statement of cash flow due to the variability
of payments from customers. All the following
statements are based on f inancial numbers
provided by local area gyms. We feel like our
estimates are as accurate as can be expected for a
project like this. The first income statement and
balance sheet are for the first month of opera-
tion for one location.
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Self Propel (Location #1) Income Statement First Month of Operation
Sales Memberships $ 8,000
Initiation Fees 1,250
Gross Profit $ 9,250
Operating Expenses Interest Expense $ (302)
Insurance Expense (175)
Office Expense (133)
Rent Expense (4,670)
Repairs Expense (83)
Supplies Expense (333)
Taxes Expense (190)
Wages Expense (480)
Advertising Expense (250)
Utilities Expense (350)
Water Expense (100)
Credit Card Fee Expense (50)
Depreciation (896)
Salary Expense (5,000)
Total Operations Expenses $ (13,012)
Net Income $ (3,762)
As a startup company dealing in a relatively new
business venture, there is always the chance that
some of our estimates will not come to fruition.
There is also the chance that we overlooked
potential expenses; that is the purpose of the
slush fund. We always plan to keep extra cash on
hand in the case that a large unexpected expense
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Self Propel (All Locations) Income Statement First Month of Operation
Sales Memberships $ 288,000
Initiation Fees 45,000
Gross Profit $ 333,000
Operating Expenses Interest Expense $ (10,872)
Insurance Expense (6,300)
Office Expense (4,788)
Rent Expense (168,120)
Repairs Expense (2,988)
Supplies Expense (12,000)
Taxes Expense (6,840)
Wages Expense (17,280)
Advertising Expense (9,000)
Utilities Expense (12,600)
Water Expense (3,600)
Credit Card Fee Expense (1,800)
Depreciation (32,256)
Salary Expense (180,000)
Total Operations Expenses $ (468,444)
Net Income $ (135,444)
arises. Overall, we are extremely happy with the
outlook for Self Propel, we are very confident in
our predictions!
As seen in the income statements for the
first month and year of operation, each location
will be losing money for the first year. This is
exceptionally common, and expected for almost
any first year business.
The net income loss experienced for the
f irst year of operation, totaling $135,000,
includes the non cash deprecation expense, so
the actual amount of cash loss for the first year
of operation is $124,212. While this number
may seem large, it is not unusual for a startup
company. As stated before, in our startup costs,
we have $150,000 (between all three locations)
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Self PropelIncome Statement Fourth+ of Operation
Sales Memberships $ 864,000
Initiation Fees 13,500
Gross Profit $ 877,500
Operating Expenses Interest Expense $ (10,872)
Insurance Expense (6,300)
Office Expense (4,788)
Rent Expense (168,120)
Repairs Expense (2,988)
Supplies Expense (12,000)
Taxes Expense (6,840)
Wages Expense (30,240)
Advertising Expense (9,000)
Utilities Expense (12,600)
Water Expense (3,600)
Credit Card Fee Expense (1,800)
Depreciation (32,256)
Salary Expense (330,000)
Total Operations Expenses $ (631,404)
Net Income $ 246,096
reserved for expected losses, so these losses will
not have a negative effect on the long-term
development of our business.
By the fourth year of operation we expect
a net income of $246,096 and $708,723 in
cash. After year five, the depreciation expense
displayed above will drop by $11,250 since half
of the remodeling depreciation will be fully
expensed. We expect our company to display
similar records up to year ten when equipment
will most likely need to be replaced and the full
depreciation expense will be reinstated.
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Growth Strategy
At Self Propel, our main objective is to
contribute to the community and to society by
offering them a place to better themselves physi-
cally and emotionally, while knowing they are
also contributing to the betterment of the envi-
ronment. It was in the need for environmental
reform that the idea of our business was born,
and we intend to remain true to this objective
in the long run.
In order to do this successfully for the long
run, the main objective for Self Propel, as for all
businesses, is to foster perpetuity. In order to do
this, we had to realize a few different ideas about
changing our business. First, we have realized
the need to pay ourselves first. As you can derive
from our Income Statements, for the first three
years of operations we only allowed ourselves
a $30,000 salary. As with all small businesses,
we will pay our dues and accept the low pay
and long hours for the first few years. When
considering we are averaging just over 50 hour
workweeks, that doesn’t boil down to much
more than a decent living.
The first adjustment to this would be at
year four, depending on the success of our loca-
tions. Based on our initial forecasts, we should
have reached target capacity of 600 members at
each of our locations by the end of year three,
generating a signif icantly higher amount of
revenue each year. At year four, we will increase
our annual salaries to $55,000, which is a
number we collectively decided would be most
commensurate to the work we are doing and
the benefit we are providing, while still making
a huge contribution to our cash account and
retained earnings.
Our expansion is of course contingent
upon the degree of success and accuracy of our
forecasting, but assuming that our numbers
are correct, we should have a cash balance of
$708,000+ after year four. At this point, our
plan going forward involves us each playing a
bit different of a role. We will begin the opening
of three new locations, each of us acting solely
as a manager. Starting at the beginning of year
five, we will hire out all the operational work
at our existing locations, and begin the opening
of three more, for a total of six. This would
have each of us responsible for managing one
location per person, though most decisions
would be made collectively regarding all six.
As you can see in the growth projections, this
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will increase our wages expense significantly
on a per-location basis. It will also free up time
for us, allowing us to not only make sure that
the expansion runs smoothly, but also possibly
create some new managerial efficiencies for the
existing locations.
The new locations would be entirely
financed with cash that we had raised from our
previous four years of operation, eliminating
the need for debt financing. This would in turn
exclude the loan payment from our expenses,
leading to less hassle and significantly higher
profitability. Based on our initial forecasts, after
financing $315,000 for the three new locations,
the new cash balance at the beginning of year five
would be approximately $394,000. The loca-
tions for the new facilities won’t be considered
until the time draws nearer, as the geographic
dispersion of our target demographic is likely to
evolve between now and then.
As with our first three locations, we won’t
expect to turn a real profit right away. However
you can note in our growth projections that the
operations from our existing locations will more
than offset the deficit in cash flows that our new
locations will create. In year five, for instance,
our combined net cash f low is approximately
$128,000. Before continuing on through the
projections, let me clear up where all the money
will go. Our main financial goal is to maintain a
$600,000 cash account balance (or $100,000 per
location). We won’t return the account balance
to that number in year five, but according to
our forecasts we should in year six. We feel that
this will provide more than sufficient liquidity
for operations, as well as serve as a safety net in
case of an emergency. The rest of the cash we
generate will then be paid out to us as salaries.
There will be several changes in any given
year to accommodate for non-recurring events,
such as the replacement of equipment, but since
these events aren’t able to be accurately fore-
casted, we haven’t included them in our projec-
tions. When these situations arise, we will cover
the expenses as cuts in our salary for that given
year. Given the fact that we are devoting our
time to exemplary managerial pursuits, however,
we intend and expect to limit the frequency and
magnitude of such events to a great extent.
We don’t intend to limit the expansion of
Self Propel to a certain number, or a certain
area. We aren’t at all opposed to opening an
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indefinite amount of locations in the future;
some likely even outside of the Louisville area, or
even considering a franchise program. However,
at this time we feel that we would be wasting
resources trying to forecast a growth strategy
that far into the future. If and when this oppor-
tunity arises, we will consider the financing and
other specifics. Until then, we intend to focus
on executing the plans that we have drawn up
thus far.
Our growth strategy, as presented up
to now, has placed a focus on the f inancial
aspects of the business. However, as previously
mentioned, our primary motives for every deci-
sion made within the business are to better the
environment, as well as the members of our
facilities. Notice that none of our growth plans
involve growing the size of any one facility,
but rather opening more. By doing this, we
will be able to reach more people, while still
maintaining our small, community-based
atmosphere, and giving each member the time
and attention that they deserve. The profit that
we will turn is entirely a by-product of the true
value we intend to create, a better world to live
in. This value can’t be forecasted, as it cannot
be measured. It will, however greatly exceed
the amount of money that is ever generated by
our business, and will mean much more to the
founding owners of Self Propel than the cash
flows ever could.
Membership
We believe that our gym is competitively priced.
Curves, our main competition, is priced at $50
per month with a year contract and $60 for
a month-to-month basis. Self Propel will be
offering two membership pricing options. The
f irst is a payment of $420 ($35 per month)
along with a one year contract and a one time
$75 payment do at signing. The second option
is on a month-to-month basis with a payment
of $45 every month. They will have $45 due at
signing along with the $75 initiation fee.
Providing our clients with two options is
not only beneficial to them, but to our busi-
ness as well. The month-to-month basis offers
our members f lexibility, letting them drop a
month here or there if they are too busy, while
25
still offering an affordable price. We hope that
this will draw in more first time gym members.
It will provide them with a chance to test the
waters without being committed to the gym for
an entire year. The yearly contract provides the
members with a lower price, and gives our busi-
ness a larger cash flow.
Self Propel will also be offering a one time
guest pass. The guest pass will allow interested
customers to try out our gym for one week
free of charge. During that seven day period,
prospective clients will have full use of our
facilities, providing them with the experience
they need to help them decide if Self Propel is
the right place for them.
Summary
We have a diverse management team, with a
plethora of knowledge in different disci-
plines. In working together, we feel that
we have developed a sustainable business
model capable of producing long term,
outsized prof its. More importantly,
we have an idea that could potentially
open the world’s eyes to better utilizing an
otherwise totally wasted resource; human
energy. We have long term growth strategies,
but unlike most companies, opening more loca-
tions and gaining more members is actually
IMPROVING the environment. We foresee
an opportunity to expand margins and grow
our bottom line, but we also see a chance to
raise sustainability standards and awareness for
companies of all types.
After reading this proposal, we hope that
you not only feel safe providing us with the
funding we need to start up our business, but
that you have realized you are making an envi-
ronmentally responsible move that could change
the way businesses operate forever. We wish you
the best of luck in your financing endeavors,
and hope to hear from you after reviewing this
proposal. You can contact us at (502) 555-9873.
26
Marlena UsherDirector of Advertising
cell: (502) 555-2525email: [email protected]
Self Propel Fitness Center1234 Taylorsville RdLouisville, KY 45454www.selfpropel.com
Matt WoodChief Marketing Officer
cell: (502) 645-3948email: [email protected]
Self Propel Fitness Center1234 Taylorsville RdLouisville, KY 45454www.selfpropel.com
Maggie GrootChief Executive Officer
cell: (502) 555-2424email: [email protected]
Self Propel Fitness Center1234 Taylorsville RdLouisville, KY 45454www.selfpropel.com
Kyle KuricPublic Relations
cell: (502) 555-2727email: [email protected]
Self Propel Fitness Center1234 Taylorsville RdLouisville, KY 45454www.selfpropel.com
Anthony DicarloChief Operating Officer
cell: (502) 555-2626email: [email protected]
Self Propel Fitness Center1234 Taylorsville RdLouisville, KY 45454www.selfpropel.com
Zack ClarkChief Financial Officer
cell: (502) 555-2323email: [email protected]
Self Propel Fitness Center1234 Taylorsville RdLouisville, KY 45454www.selfpropel.com
27
April 22, 2011
Mrs. Denise Tanner
Classroom Loan Corporation
1234 Givus Cash Road
Louisville, KY 40231
Dear Mrs. Tanner:
Subject: Proposal for an Eco-Friendly Fitness Club
In the fast-paced modern era in which we live, humans have taken progressively negligent steps to fuel our increasing necessity for technology and power. This energy consumption has burned up the Earth’s fossil fuels and destroyed our atmosphere. Businesses around the world, of all sorts, are finally taking notice of their effects on the environment, and they are changing the way things are done. At Self Propel, we want to do our part locally to contribute to the global solution.
We are proposing an environmentally friendly gym that will be targeted toward a demographic that is interested in getting in shape, while helping the environment. Self Propel Fitness Club is introducing an entirely new form of energy production, and that is human power. Our gym will focus on creating a positive atmosphere for promoting healthy lifestyles for our members as well as improving the environment. It is time that there is an option for people to put their energy to good use.
Thus, I propose that you sponsor our efforts to supply various local communities with a wonderful opportunity to improve their physical well-being, along with the general well-being of generations to come.
We hope that you not only feel safe providing us with the funding we need to start up our business, but that you have realized you are making an environmentally respon-sible move that could change the way businesses operate forever. We wish you the best of luck in your financing endeavors, and hope to hear from you after reviewing this proposal. You can contact us at (502) 555-9873.
Sincerely, The Self Propel Staff
Matt Wood
1234 Taylorsville Rd
Louisville, KY 45454
(502) 555-9873
www.selfpropel.com
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Self Propel Fitness Center
1234 Taylorsville Rd
Louisville, KY 45454
(502) 555-9873
29
1234 Taylorsville rdlouisville, Ky 45454
(502) 555-9873www.selfpropel.com