Business Proposal
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Table of Contents 4. Mission Statement Business Philosophy 5. Marketing Plan Limited Liability Corporation 7. Burn to Earn Program 8. Products & Services 10. Customers Competition Competitive Analysis Locations 12. Gym Floor Plan 14. Equipment Costs 16. Grid-Tie Inverter System 17. Personnel & Work Schedule Hours of Operation Legal Environment 18. Start-up Costs Financials 22. Growth Strategy 24. Membership 25. Summary 26. Stationery 29. Website
Mission Statement
We intend to provide residents of Louisville a workout facility with a small, community-based atmosphere, while emphasizing our environmentally friendly corporate philosophy. We will differentiate our product by way of the sustainable innovations that we will promote with our energy producing machinery and various marketing strategies.
solar
hydro
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 dependence 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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wind
human
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 environment 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, Dutchman’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 shopping 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 experience 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 Corporation. 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 disadvantages, which are both to be discussed below. The primary advantages of operating as an LLC are protection from personal liability and flexibility 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 applicable 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
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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.
“Burn to Earn” Program
There are two main objectives within our B2E, or “Burn To Earn” Program. The first 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-sufficient, 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 milestone. 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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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 comparable 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 equipment 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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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 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. Our promotional budget is $250.00 a month and this is further detailed in the financial statements 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
#1 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 first 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 location. 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
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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.
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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 traffic 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 Plan Self 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.
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70 ft
Bench
Storage 6’ 3” x 6’ 3” Fitness Classes 27’ 6” x 15’
Men Men’s Locker ock 16’ 3” x 15’
60 ft
Shower
Shower
Shower
Bike
Bike
Bike Bench
Bike
50 ft Bike
Cyclin Classes Cycling asses 27’ 6 “ x 13’ 3’ 9” Bike
Bike
Instructor Bike
Shower
Women’s ome Locker ock 16’ 3” x 20’
Bike
Bench
Bike
Bike
40 ft Elliptical Tred
Tred
Tred
Tred
Bench
Elliptical
30 ft Elliptical
Leg Press
Calf Press
Back Extension
Leg Curl
Curl Machine
Chest Fly Machine
Leg Extension
Shoulder Press
Chest Incline
Dip Machine
Tricep Extensionss
Chest Press
Elliptical
Elliptical
Elliptical
Bench
20 ft
10’ x 7’ 6”
10 ft
Bench
Check-In 16’ 3” x 7’ 6”
10’ x 7’ 6”
0 ft 0 ft
10 ft
20 ft
30 ft
40 ft
50 ft
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Equipment Costs Machine Name
Units
Unit Price
Total Price
CTS 350 SB Spinning Exercise Bike
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$ 621
$ 7,751
CTS 375 EL Elliptical Cross Trainer
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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
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$ 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
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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 dependent 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 University of Louisville.
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 opportunities 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, religion, 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 Government 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
$
Total Startup Cost
$ 285,000
Total Cash
$ 435,000
Cash Slush Fund
$ 150,000
75,000
Startup Costs
Financials
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 estimated to be $95,000. That will leave $50,000 for each location as a slush fund to cover the first year’s operating loss.
The following pages contain our projected financial statements, including income statements, 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 financial 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 operation for one location.
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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
Self Propel (Location #1) Income Statement First Month of Operation Sales
Memberships Initiation Fees
Gross Profit Operating Expenses
$ 8,000 1,250 $ 9,250
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 Depreciation Salary Expense
(50) (896) (5,000)
Total Operations Expenses
$ (13,012)
Net Income
$ (3,762)
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Self Propel (All Locations) Income Statement First Month of Operation Sales
Memberships Initiation Fees
Gross Profit Operating Expenses
$ 288,000 45,000 $ 333,000
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 Utilities Expense
(9,000) (12,600)
Water Expense
(3,600)
Credit Card Fee Expense
(1,800)
Depreciation Salary Expense
(32,256) (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.
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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)
Self Propel Income Statement Fourth+ of Operation Sales
Memberships Initiation Fees
Gross Profit Operating Expenses
$ 864,000 13,500 $ 877,500
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 Utilities Expense
(9,000) (12,600)
Water Expense
(3,600)
Credit Card Fee Expense
(1,800)
Depreciation Salary Expense
(32,256) (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 physically and emotionally, while knowing they are also contributing to the betterment of the environment. 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 locations. 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 significantly 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
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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
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 locations 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 flow 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 forecasted, we haven’t included them in our projections. 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 opportunity 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 financial aspects of the business. However, as previously mentioned, our primary motives for every decision 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.
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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 first 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 business 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
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 business 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 disciplines. 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 locations 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 environmentally 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.
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Matt Wood
Marlena Usher
Maggie Groot
Chief Marketing Officer
Director of Advertising
Chief Executive Officer
cell: (502) 645-3948 email: mwood@selfpropel.com
cell: (502) 555-2525 email: musher@selfpropel.com
cell: (502) 555-2424 email: mgroot@selfpropel.com
Self Propel Fitness Center 1234 Taylorsville Rd Louisville, KY 45454 www.selfpropel.com
Self Propel Fitness Center 1234 Taylorsville Rd Louisville, KY 45454 www.selfpropel.com
Self Propel Fitness Center 1234 Taylorsville Rd Louisville, KY 45454 www.selfpropel.com
Zack Clark
Anthony Dicarlo
Kyle Kuric
Chief Financial Officer
Chief Operating Officer
Public Relations
cell: (502) 555-2323 email: zclark@selfpropel.com
cell: (502) 555-2626 email: adicarlo@selfpropel.com
cell: (502) 555-2727 email: kkuric@selfpropel.com
Self Propel Fitness Center 1234 Taylorsville Rd Louisville, KY 45454 www.selfpropel.com
Self Propel Fitness Center 1234 Taylorsville Rd Louisville, KY 45454 www.selfpropel.com
Self Propel Fitness Center 1234 Taylorsville Rd Louisville, KY 45454 www.selfpropel.com
1234 Taylorsville Rd Louisville, KY 45454 (502) 555-9873 www.selfpropel.com
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 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.
Sincerely, The Self Propel Staff
Matt Wood
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r ente ess C Fitn Rd l e Prop rsville Sel f ylo 454 4 Ta , K Y 45 123 ville 873 s i u Lo 5-9 ) 55 (502
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1234 Taylorsville Rd Louisville, KY 45454 (502) 555-9873 www.selfpropel.com