Prepared by: Michael Macleod Courtney Quinn Amanda Roemer Sheena DeVries

Executive Summary  Fitness Facility  Four full-time, one part-time employee  Free weights, circuit training, yoga, and specialty classes  E3- closure  Committed to functional training vs. traditional

Management Team  Michael Macleod – Finance  Courtney Quinn – Accounting  Amanda Roemer - Kinesiology  Sheena DeVries - Marketing

Business Objectives  Growth  Sales  Expansion  Start up costs

Marketing: Product  Dutch Dumbbells is a comprehensive fitness facility  Our small business offers both equipment and customer assistance  Classes for every level of fitness  Overall health conscious environment

Promotion  Three main focuses:  Radio Country 95.5 and The River  Newspaper Lethbridge Herald and the Shopper  Coupons and Give-Away’s Gold Mine Coupon Book  And of course word of mouth

Placement  Dutch Dumbbells will be located in the vacant building where E3 Salon occupied.  Our small business realizes the danger of comparisons between the fitness facilities  Commitment to health

Price  Dutch Dumbbells is dedicated to providing our customers with the lowest cost possible  Per month fees are: $35 membership fee to fitness facility $15 optional classes fee  Drop-in fees are: $10 for fitness facility $8 per class

Customer Analysis  Our target demographic is a person who is dedicated to physical activity and health  Demographic:  Males and Females  Ages  Average Income approximately $35,000 +  Dissatisfied with current fitness facilities and looking for a comprehensive alternative

Competitors  Our foremost competitors are the U of L fitness centre and the Right Pace only women’s centre.  Our distinctive separator is our comprehensive programs. Not only do we allow individual use of machines and services but also provide consultation when needed.

Physical Facilities  Floor Plan sq.ft.  3 main areas: fitness, classes, extra space  Rent out 3 massage rooms for $500/mo  Contract out 1 daycare room for $350/mo  Building start-up costs = $51,  Minimizing risks

Financing  Market Potential  $841,685  Market Share  43.7%  Potential Revenues  $367,816

Income Statement Revenues$367,816.00$404,597.60$445,057.36$489,563.10$514, Child Care Rental $4,200.00$4,200.00$4,200.00$4,200.00$4, Massage Therapist Rental $18,000.00$18,000.00$18,000.00$18,000.00$18, Total Revenues $390,016.00$426,797.60$467,257.36$511,763.10$536, Expenses$391,351.98$333,304.48$333,304.48$333,304.48$333, Net Income -$1,335.98$93,493.12$133,952.88$178,458.62$202,936.77

Break Even Analysis Data Fixed cost Variable cost 0 Revenue35 Results Breakeven points Units8164 Dollars$285, Volume 0 Costs$285,754.48

Cash flow Statement Cash In Flows $5,664.02$161,343.28$160,031.68$203,225.82$209, Equity Investment $550,000.00$150,000.00$150,000.00$25,000.00$25, Total Cash In Flows $555,664.02$311,343.28$310,031.68$228,225.82$234, Cash Out Flows $494,813.86$292,264.48$292,264.48$292,264.48$292, Net Cash Flows $60,850.16$19,078.80$17, $64, $57,327.71

Personnel  Administrative Structure  Employee Recruitment/Training  Personnel Policies

Legal Structure (Incorporated) Advantages Formalities  Limited Liability  Existence  Capital  Tax Advantages  Credibility and Prestige  Higher start-up Costs  Maintaining Records  Double Taxation

Legal Requirements  Dutch Dumbbells Inc.  We will only operate in Alberta  Licenses and permits = $  Insurance is $2000 per month

Location   Specific Site:   #880 Heritage Heights Plaza West   Accessibility   Proximity To Other Businesses   Physical Characteristics   Site Costs: (rent, utilities, licenses etc.) $15,350.37/month or $184,204.48/year

Location  Competition:  The University of Lethbridge 7500sq.ft.  The Right Pace 1000sq.ft.

Location  Attitude of the Trading Area:  Chiropractic Clinic  Need for a fitness center  Landowner/Landlord open-minded  Previous Owners/Management

Any Questions?