Professional Documents
Culture Documents
Executive Summary
meetings every other week as well as a registered nurse twice per week to
answer any questions related to their health and well-being.
This program will use best practice to develop individualized programs
for each client that takes part in the one on one sessions. Expert supervision
in a top-notch facility will be available to individuals who wish to just take
part in the facility membership. Two full-time registered clinical exercise
physiologists, two full-time certified exercise specialists, one part-time
registered nurse, one part time dietician, and one full-time front desk worker
will be hired to staff the facility. Initial start-up cost in the first year for the
facility totals to be $517,770.11 with the first year income forecasted to be
$527,000.00 creating a first year profit of $9,230.89. By year three our
expenses are expected to be $350,672.50 with an income of $885,000.00 for
a profit of $534,327.50. In order to break even the first year we will need 100
facility members, 50 caregiver members, 75 one on one clients, and full days
sessions with the dietician the entire year.
Services
Mind and Body Rehab will partner with outpatient physical therapy
programs around southeastern Wisconsin, to develop a referral base. The
goal of the program is to deliver services focused on increasing the ability to
perform activities of daily living and therefore increase the day-to-day quality
of life for all neurological patients. Mind and Body Rehab is an exercise
facility that is has been developed to meet the needs from anyone that has a
neurological disorder from Parkinsons to a major stroke. Patients that attend
Mind and Body Rehab will have multiple options when joining the gym with
either participating in one on one exercise training or becoming a member of
the gym and having an exercise professional help with set up and moving
around the gym.
One on One exercise training
One on one exercise training will be provided to any patient that is
suffering from a neurological injury/disease. Program will include a complete
assessment of physical and behavioral health habits of patients using
exercise tracking bands and various assessment tools (i.e. surveys, dietary
logs). Exercise testing and goal assessment performed to develop
individualized patient exercise prescriptions to achieve goals will be
performed following initial intake session. At home exercise prescriptions are
developed to increase patient outcomes. Anyone participating in one on one
exercise training will receive patient centered education that will aid in
improving behavioral health habits and increase probability of reaching
goals. Re-evaluation of the patients will occur on a patient-to-patient basis.
Training sessions will include aerobic, resistance, and balance training for a
well-rounded training approach to reach all patient goals. Payment for the
SWOT Analysis
TABLE 1. SWOT Analysis
Strengths
-Individualized care
-Comfortable environment
-Payment options
-Specialized equipment
-RCEPs not personal trainers
Opportunities
-Potential room for growth
-Minimal competition
-Highly needed service
-Brand new service
Weaknesses
-Lack of experience
-Lack of funds
-Capitol requirements
-Marketing
Threats
-Other exercise facilities in the
area
-Referrals from physicians to other
facilities
-Transportation for patients
-Education of patients
-Patient loyalty to current facility
Strengths
There are many strengths to the development of Mind and Body Rehab
that will benefit the objective to provide affordable exercise to neurologically
impaired individuals. Individualized care is important to the progression of
patients that come into our facility. Each patients diagnosis is unique and
requires tailored programs and education to achieve the greatest outcomes
possible. Through the use of best practice and staying current on research
we will develop specific programs for each patient. Having a comfortable
environment will allow each patient to feel they are at a facility that is meant
for them. A large barrier to exercise for neurologically impaired individuals is
not wanting to go to a gym where healthy individuals go to exercise. Here
there will be other patients with similar issues and they can feel comfortable
with where they are exercising. Specialized equipment will be provided at
this facility to achieve the best outcomes from exercise of each patient. This
equipment is designed for exercising individuals with neurologic impairment
and the function of each machine will assist in achieving best outcomes.
Utilizing RCEP trainers rather than personal trainers creates a staff that is
educated and prepared to work with individuals with neurologic impairment.
Regular personal trainers do not have the education to properly design and
supervise exercise programs for this population of people. We eliminate that
risk by employing knowledgeable RCEPs. Finally, payment options allow
patients to decide how much they would like to spend on exercise each
month. Many patients cannot afford the care they receive after insurance
covered sessions are finished. Our payment options allow each patient to
4
decide what they can spend each month and design a plan from month to
month on what services they would like out of our facility.
Weaknesses
Lack of experience is the number one weakness of our facility as a
whole. Every facility wants to have years of experience when considering
potential employees for hire. Our lack of experience is partially countered by
our advanced education on how to work with special populations. Training in
determining best practice from current research is how we will design each
program for our patients. There are few, if any, opportunities to gain
experience in this line of work because there are no facilities like Mind and
Body Rehab. We will design our programs based on best practices and gather
our experience in the years to come. Starting a fitness facility for special
populations is a very expensive task. Given we are two recent college
graduates, money is scarce. Through the use of loans, investments from
family, and money saved from the time we graduate to the day we open we
will acquire the money needed to open our facility. Capitol expenses are the
main funding issue we run into because each piece of equipment is
specialized for neuro patients and the expense is often greater. Start up cost
of our facility is greater than the start up of a regular fitness facility and
requires us to acquire more funding. Marketing will be a small weakness for
us due to our lack of experience in recruiting clients for a facility. The already
large expenses required to start up our facility seems daunting and minimal
funds will be spent on marketing.
Opportunities
This service is new in the fitness industry and there are no other
facilities like it. The development of this facility is unique in every way and
will draw clients who wish to better themselves physically. With this being a
brand new service there is no competition that could potentially take away
from our client base. With no competition at the current time there is the
potential for a very large initial client base that could show rapid growth as
word gets spread about this facility. With the expected client increases there
will be room for growth as the facility progresses. The most important factor
is the great need for this facility. There are no other facilities to match our
services, but this population of individuals greatly needs the physical activity.
Our facility will be providing a vital service to this population of individuals
that will allow them to lead healthier happier lives.
Threats
The greatest threat to us is the other facilities in the area that allow
neurologically impaired individuals to work one on one with personal trainers.
This service is out of the personal trainers scope of practice, but not
everyone will know that. The loyalty of clients may prevent them from joining
our gym in the future. Education of patients on the benefits of exercise may
5
Equipment for the gym includes a selection that has been designed
and utilized by neurological patients in other facilities and by physical
therapists. Equipment was selected with patient care in mind and so that all
aspects of increasing quality of life can be trained. Choices include
equipment that focuses on aerobic, balance, and resistance training,
equipment selections can be viewed in the appendix in Tables 2, 3 and 4.
Other equipment that will be used to enhance the patient experience, safety,
and to provide accurate exercise prescriptions both in the facility and at
home can be viewed in Table 5. Technology is and will be an important
aspect in improving the patient experience while exercising at Mind and
Body Rehab and the price for the technology and programs that can be used
is shown in Table 6.
Besides the price of the aerobic equipment, rent and utilities will be the
highest operational cost for the facility. After researching the area of
Brookfield, WI, on average to rent a facility would cost $15 per square foot.
With renting at least a 5,000 square foot facility, the price to rent would be
an estimated $69,405.
TABLE 2. Estimated Total Costs
Expense
Total
Aerobic
$73,836.46
Balance
$1,898.42
Resistance
$10,250.74
Miscellaneous
$14,441.32
Tech-Office
Furniture-flooring
Maintenance-Cleaning
Rent-utilities
Total:
$9,393.07
$27,291.61
$1,353.49
$70,305.00
$208,770.11
Operating Budget
Salaries
Salaries for all employee positions are generated based on average
salaries for the state of Wisconsin. The RCEP salaries will be set at $50,000
per year, which will be for the two owners of the fitness facility. Two CES
8
salaries will be set at $41,600 for a total of $83,200 per year. The RN will
have a set salary of $31,200 for two 10-hour days per week. The dietician
will be paid hourly based on national average at a rate of $27 per hour, for a
total yearly salary of $6,480. A dietitian will be present on the facility every
other Wednesday for 10 hours. A full time front desk worker will be paid $10
per hour, which is calculated to $20,800 for the year.
TABLE 3. Estimated Employee Salary
Position
Quantit
Cost year 1
y
RCEP (full time)
2
$50,000
CES (full time)
2
$41,600
Nurse (part time)
1
$31,200
Front Desk (full time)
1
$20,800
Dietitian (part time)
1
$6,480
Benefits (33%)
5
Total Cost
Total salary
$100,000
$83,200
$31,200
$20,800
$6,480
$67,320
$309,000
Sales Forecast
Projected income for the first three years was based on starting with
what is required to break even. Projections for the first year were based on
being able to achieve 10% of the target population in southeastern
Wisconsin. Prices for each program are listed in the Table 12. Steady
increases in clients are projected each year based on word of mouth and
improved marketing strategies. It is projected that we will be able to achieve
a target population of 100 clients to purchase a membership to our facility
and 75 clients to purchase 1:1 sessions, some of which may also have a
membership.
TABLE 4. Year 1 Projected Income
Year One
Pric
Service
e
1:1 Sessions
General Monthly Membership
CT Monthly Membership
Dietician
Total Revenue
$55
$50
$20
$20
Clien
ts
75
100
50
260
Total
$429,00
0
$60,000
$12,000
$26,000
$527,00
0
Clien
ts
$55
$50
$20
$20
100
150
75
260
Clien
ts
Total Revenue
1:1 Sessions
$55
125
$50
$20
$20
200
100
260
Total Revenue
Total
$572,00
0
$90,000
$18,000
$26,000
$706,00
0
Total
$715,00
0
$120,00
0
$24,000
$26,000
$885,00
0
Projected Revenue
The projected revenue for the first three years of full operation of the
facility is shown in Table 15. With increases in participation in the program,
we can expect to see increases in income with each year. Most of the
expense in the first year will be for start up cost of equipment, technology,
and furniture. Cost of the facility was kept at a constant cost for rent, but
could increase depending on discretion of the leaser. Most of future expenses
will be for maintenance of the facility, marketing of the facility, and towards
employee salaries. Aggressive marketing strategies will be implemented for
the first 3 years, with variance of cost depending on the effectiveness of
marketing plan.
Marketing
10
The budget for marketing in the first year will be set at $12,000 to
cover expenses and have some extra spending money in order to increase
successful advertisements. The primary focus of marketing will be in public
speaking at events such as support groups, seminars, etc. There will be a
budget of $500 set toward printing handouts, business cards, and surveys for
potential clients to fill out. Price of travel will come out of pocket and will not
come form the marketing budget. With these public events we will spread
the word of our company by mouth and obtain an email list for anyone who
is interested in joining a facility like Mind and Body Rehab.
Facebook advertising will be utilized to reach out to one of the most
popular websites in the world. A budget of $5,000 will be submitted to
Facebook to produce an advertisement at 50 cents per click. This will allow
our advertisement 10,000 clicks prior to closing. The advertisement will take
viewers directly to our homepage will be produced for $1,500 and
maintained by staff members after completion.
Finally, a newspaper advertisement will be sent out to the West region
of the Milwaukee Journal Sentinel (Wauwatosa and Brookfield). The price of
the advertising will be $93.00 per mili (thousand) to print 50,000 copies for a
front page ad. The final price of this advertisement will total $4,650.00.
Following the first year, our budget will decrease to $8,000 per year
where we can refine our advertising to reach the greatest population of
potential clients. Successful advertisements (330 hits in first year) will be
kept and potentially increased. Unsuccessful advertisements (less than 330
hits) will be replaced by other advertising opportunities. Our marketing goal
is to obtain 1,000 hits in the first year. A hit is considered a view that could
result in a potential membership (caretaker, family member, neurologically
impaired individual, healthcare professional). Of the 1,000 hits, our goal is to
have 50 memberships result from our advertising totaling $33,000 and a
profit of $21,000 after advertising cost
Strategy
Public speaking
Facebook
Newspaper
Total
Cost
$500
$5,000
$4,650
$10,150
Year 2
Year 3
$706,000
$885,000
$5.000.00
$3,000.00
$5.000.00
$3,000.00
11
Technology
Furniture
Maintenance
Facility rent
Marketing
Salaries
Total expenses
Income before
taxes
Taxes (33%)
Net Income
$9,393.07
$27,291.61
$1,353.49
$70,305.00
$12,000.00
$309,000.00
$529,780.11
$-2,780.11
$5,000.00
$2,000.00
$3,000.00
$70,305.00
$8,000.00
$328,488.72
$424,793.72
$281,206.28
$5,000.00
$2,000.00
$3,000.00
$70,305.00
$8,000.00
$334,988.48
$431,293.48
$453,706.52
$917.44
$-3,697.55
$92,798.07
$188,408.21
$149,723.15
$303,983.37
Conclusion
In the first year of operation, the business does not have a great
projected net income due to start up cost. With continued development of
the program to achieve high patient outcomes and with improved marketing
strategies, a larger income can be witnessed in the following years. An
analysis of the market and what can be done differently to increase patient
satisfaction will aid in the retention of clients and the addition of new clients
each year. With the continued development of this business venture will lead
to greater outcomes with neurological patients around southeastern
Wisconsin.
Appendix A. Equipment list
TABLE 2. Aerobic Equipment
Equipment (Brand/Model)
Price
Quantity
Total
$3,000.00
$6,000.00
$3,795.00
$15,180.0
0
$4,450.00
$8,900.00
$3,695.00
$7,390.00
$4,595.00
$9,190.00
$808.46
$808.46
$5,368.00
$5,368.00
$21,000.0
0
$21,000.0
0
15
$73,836.4
Total:
12
Price
Quantity
Total
$972.50
$972.50
$52.49
$104.98
$295.00
$295.00
$18.39
$18.39
Bosu Ball
$130.00
$260.00
$152.99
$152.99
$94.56
$94.56
$1,898.42
13
Price
Quantity
Total
$205.00
$205.00
$250.00
$250.00
$646.66
$1,293.32
$465.00
$465.00
$172.19
$344.38
$259.25
$259.25
$51.56
$51.56
$26.99
$53.98
14
$47.25
$47.25
$3,282.00
$3,282.00
$3,999.00
$3,999.00
14
$10,250.7
4
Total:
Price
Quantity
Total
$42.85
$171.40
$25.14
$25.14
$816.92
$816.92
$68.00
$136.00
$50.50
$50.50
$6.95
$6.95
$66.58
$133.16
$3,032.31
$3,032.31
$345.00
$345.00
15
$192.58
$770.32
$39.99
$159.96
$179.99
$359.98
Wireless ECG
$2,400.00
$4,800.00
Gait Trainer
$1,200.00
$1,200.00
AED
$500.00
$500.00
$199.95
$399.90
$49.49
$148.47
$161.98
$647.92
$14.98
$89.88
$53.98
$107.96
$199.00
$199.00
$12.99
$12.99
$0.00
$110.00
$110.00
$97.00
$194.00
Latex gloves
$0.00
Alcohol pads
$5.89
Total:
TABLE 6. Technology/Office
Item (Brand/Model)
Price
$23.56
37
$14,441.32
Quantity
Total
$1,300.00
$1,300.00
$1,000.00
$4,000.00
$500.00
$1,500.00
$133.96
$133.96
$20.00
$20.00
$260.00
$520.00
$54.29
$54.29
16
$63.99
$127.98
$12.50
$75.00
$250.00
$250.00
$99.98
$199.96
$6.00
$12.00
$12.49
$24.98
$4.19
$16.76
$8.79
$8.79
$8.99
$8.99
$22.79
$45.58
$39.99
10
$399.90
$20.00
$40.00
$9.49
$9.49
$11.99
$23.98
$4.99
$9.98
$239.99
$239.99
Magazine Subscriptions
$371.44
$371.44
Total:
TABLE 7. Furniture/Flooring
Item (Brand/Model)
Reception Desk (marque double
reception station)
$9,393.07
Price
$1,895.00
Quantity
1
Total
$1,895.00
17
$695.00
$1,390.00
$279.00
$558.00
$192.58
$770.32
$479.00
$958.00
$879.00
$1,758.00
$539.00
$539.00
$36.95
$147.80
$499.99
$499.99
$249.00
$249.00
$66.00
$264.00
$3.50
4700
$16,450.0
0
Flooring- restrooms
$5.25
100
$525.00
$6.50
75
$487.50
$8.00
100
$800.00
Total:
$27,291.6
1
TABLE 8. Maintenance/Cleaning
18
Item (Brand/Model)
Toilet paper (Scott/ standard roll)
Price
Quantity
Total
$74.99
$74.99
$102.99
$102.99
$2.37
$4.74
$3.93
$7.86
$36.99
$110.97
$17.75
$53.25
$2.96
$2.96
$5.96
$11.92
$379.99
$379.99
$379.99
$379.99
Equipment cleaner
Hand sanitizer (Purell/ 8 oz bottle)
$0.00
$32.28
$32.28
$2.59
$20.72
$7.99
$15.98
$2.94
$5.88
$68.99
$68.99
$39.99
$79.98
Total:
$1,353.49
19
TABLE 9. Rent/Utilities
Item(Brand/Model)
Rent
Cable/Internet
Total:
Price
Quantity
Total
$69,405.0
0
$69,405.0
0
$75.00
12
$900.00
$70,305.0
0
20
RCEP (2)
CES (1 & 2)
Maintenance/calibration
of equipment
-Assists with marketing
strategies
-Public relations
Dietitian
-Public relation
-Assists with marketing
strategies
Nurse
-Public relation
-Assists with marketing
strategies
Front Desk
-Scheduling
-Assists with marketing
-Business cards
-Public relation
-Data management
(guests, birthdays,
surveys, appt
reminders)
-Assists with referrals
21