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Ability Facility, LLC

Business Plan

May 4, 2004

Steve J. DiMichele

© Ability Facility, LLC, 2004

Table of Contents
Executive Summary……………………………………………………………...3

Vision, Mission & Goals…………………………………………………………6

Product Strategy……………………………………………………………........8

Service Strategy…………………………………………………………………..9

Market Analysis………………………………………………………………...11

Segmentation……………………………………………………………11

Industry………………………………………………………………….11

Competitor………………………………………………………………13

Economy…………………………………………………………………15

Marketing Plan…………………………………………….................................

16

Overall Strategy……………………………………………………….....16

Sales Strategy………………………………………………………….....17

Advertising & Promotions……………………………………………….19

Public Relations………………………………………………………….20

Financial Plan…………………………………………………………………...21

© Ability Facility, LLC, 2004

Our services are not only a support system. Ability Facility will expand into an Olympic training center for amateurs and professional athletes alike. The Ability Facility provides elite services to our customers in a personal atmosphere where their safety and happiness is most important to us. As far as technology goes. we explain proper techniques.Physical Trainer • Joe DiMichele . There will also be dormitories to live in while training in five years. so that is where exercise fits in. 3 Executive Summary Company Direction The Ability Facility will offer one-on-one physical training services for anyone requiring them. Ability Facility believes the US as a country is the most obese in the world.Wrestling Technician Product/Services Strategy The purpose is to promote a combination of exercise with dieting.CEO • Ability Facility. We may need © Ability Facility. but also. we handle all invoices on a database of customers. With our ideal location in place. LLC. yet dieting alone is just not enough. DiMichele . In five years. Ability Facilities’ ideal location is in Southern New York. we expect to be profitable by the beginning of our third fiscal year. Company Overview • Steve J. Fitness and Recreational Sports Centers • Current Status: Start-up • Ed DiMichele . Limited Liability Company (LLC) • Industry: NAICS Code = 71394. 2004 .

however. Vermont. 2004 . Maine. The public announcements will promote at surrounding college matches. We differentiate ourselves through having wrestling mats for instance to train on. The customers may need a workout plan made up or just assistance on proper technique. Besides Ability Facility applies personal interaction with strong and meaningful relationships that competitors. LLC. male and female workers. The customer exercises at all different hours of the day but primarily before work or after work hours. Start-up costs are high. New York. Market Analysis My market is the amateur or Olympic wrestler who lives in the geographic North-East Region of the United States. The opportunities are endless due to differentiating yourself in a way that makes it a core-competency. Rhode Island. The size of my customer base includes Ohio. a high volume of customers will help tremendously with operations cash flow. Our sales promotion strategy is to allow them to try out the facility free for their first visit then sell them through one of the many plans we offer. Once we have built up a significant base then word of © Ability Facility. Massachusetts and Delaware. Pennsylvania. Marketing Plan We will use gorilla-marketing techniques to promote the Olympic training facility at Amateur wrestling events through public announcements that are free. middle-class. 4 to purchase new nautilus equipment if innovations erupt. My target age range would the 18 to 24 year-old. New Hampshire. We will advertise in various wrestling magazines. white-collar. We use rubber weights because they are safer. such as Bally’s Total Fitness cannot compete.

5 mouth will continue to increase our customers.000. I am assuming my home is worth $100. the profit is used to pay on the principal and any interest accrued. I plan to bring in past and current Olympians to run wrestling camps when the training season is not at its peak. Lastly. The purpose of this money is for the building and equipment expenses. Friends and family are contributing another $50.000. © Ability Facility. 2004 . which is 80% of its net worth.000. Financial Plan I currently own a home of which I am going to use as collateral for building the fitness center. On a monthly basis. The pro forma income statement shows a gross profit margin of 12%. I am taking out a bank note for $250. which is being backed by the SBA. LLC.

) Open for business by May 2005 © Ability Facility. Our motto is. Mission Statement The Ability Facility. by the last week in May 2004 4.) Have statistics on our target markets by March 2004 2. LLC provides elite services to all customers in a personal atmosphere where their safety and happiness is most important to us.) To have the Ability Facilities' ideal location selected in the North-East Region of the U.000 to help fund the equipment 5. We will provide a nutritionist. LLC. 6 Vision. LLC will offer one-on-one physical training sessions for amateur and Olympic athletes requiring them. “An effort today gives results your way. Mission and Goals Vision Statement Ability Facility.) To obtain a start-up note for $250. We will be a full service living facility within 5 years while in the training season for all athletes.” Goals & Objectives 1. whom will write nutrition plans set for the wrestlers but also for anyone wanting the service. Our customers will use all state of the art equipment from nautilus equipment to free weights. Within 5 years. We will help amateurs and excellent athletes attain their peak performance goals as we provide these services.S.) Have a feasibility study done by the end of April 2004 3. Wrestling campers will occupy dorm rooms a few weeks throughout the summer months. 2004 . Ability Facility will expand into an Olympic training facility.

2004 . 8.) The installation of dorm style rooms will accompany the expansion of the Olympic training facility by 2010 © Ability Facility.) There will be nutritionists on staff by the winter of 2009 7. 7 6. LLC.) Ability Facility will be profitable by the end of the second fiscal year.

leg press. leg curl. which with new designs allows more targeting on the different muscle groups. four five pound barbells and four ten pound barbells. There are four power clean stations as well as military press benches. weighted dip machine. Safety is as important as the customers’ satisfaction. The machines have had many hours of R & D. calf raise machine. These sets include a bench. muscular functions and development. Exercising on a regular basis gives a person © Ability Facility. pull-up and chin-up bars and much more. All free weights are rubber so that they may be dropped. There are eight bench press sets. neck machines. LLC. two twenty-five pound barbells. The machines are ergonomically designed to eliminate extra strain that past machines have caused. The features are state of the art innovations in machine development. During non-peak hours of business the equipment will be inspected and if there are any problems we will fix them that day. The benefits of our products are the equipment promotes health. two thirty-five pound barbells and two forty-five pound barbells. leg extension. an Olympic style bar and barbells weighing anywhere from two and a half pounds all the way up to forty-five pounds. There are ten curling bars. The dumbbells start at three pounds and go up to one-hundred and thirty pounds. peck deck machine. 8 Product/Service Strategies Product Strategy Our products are free weights and nautilus equipment. Also. cable crossovers. 2004 . The nautilus equipment includes curling machines. One set has four two and a half pound barbells.

The most significant service is the wrestling technique and training camps offered. The price to have a physical trainer does not cost extra and is included in © Ability Facility. They will help you help yourself in the battle against weight loss. If customers require a physical trainer then they would need to plan out their schedule through one of them. The market includes both amateurs and excellent athletes. Currently the product is still undergoing R & D but will be in the introductory phase as the start-up gets underway. The camps will be designed for adolescents (ages 8-12). An additional service offered is nutrition plans created by nutrition specialists. enhances circulation and strengthens the heart too. 9 more energy throughout the day. An all day pass is $7. If you would like they will make workout plans for you and guide you to your fitness goals. LLC. The price to use our product depends on the plan you choose. A three month membership is $120. They will answer any questions you may have along with showing you proper form for exercises. The whole year costs $480 and we are given two free months for a year membership so the real cost is $400. There is also a problem with obesity in our country so the need is to live healthier lives. teens (ages 13-17) and adults (ages 18 and up). You will learn from past Olympians. Our customers include anyone with the desire to exercise. The need is for athletes to be successful in their given sports especially wrestling. Service Strategy One service we offer is 24-hour access to the facility. A half-year is $250. 2004 . We compete with large fitness chains including Bally’s Total Fitness and Gold’s Gym.

The facility is opened seven days a week. 10 your membership. The features are having one-on-one sessions with your physical trainer. Access to the facility during non-business hours can only occur with valid swipe identification (ID) card. This allows for more relationship based interaction. The wrestling camps are still being researched and planned for in the up and coming years. LLC. © Ability Facility. Plus once the dorms are open they will be able to live connected to the training center. There are going to be dorms for housing and living while our Olympic athletes are training. 2004 . We treat each customer as if they were family. This benefits many athletes because they no longer have to travel across the US for an Olympic training center. The next service is having a nutritionist which is rear in most workout facilities and I believe it is one of the keys differentiating us from our competitors. The best feature Ability Facility has is the location of the workout center. The extra services such as having a nutritionist will cost you extra as well as the wrestling camps. twenty-four hours per day and three-hundred and sixty days per year.

West Virginia & Virginia.000. Maryland. Massachusetts. The geographic location of Ability Facility is in Southern New York because the distance from the targeted surrounding states is more accessible based on distance traveled. Connecticut. New Hampshire. Vermont. Industry The industry size of Olympic training facility’s is four all across the United States. The target education level includes both high school graduates as well as college graduates. Delaware. The average athlete’s workout plan is three to seven days per week. Broke down into states. Pennsylvania. but the more educated is better. 11 Market Analysis Segmentation The target age range is 18 to 24 but ideal is a 24 year-old male.000 and the ideal income is $30. they include: Indiana. Tennessee. New York. The target regions from which the athletes are coming from are the Midwest and the North-East Region of the United States. Rhode Island. New Jersey.000 and $40. 2004 . The target lifestyles are people that are health conscious and work late. The exact location is in a suburb of Albany. Ohio. The behavior mindset of the target is focused around wrestling as well as other Olympic sports. The target income level is between $24. The ideal gender targeted is males but females are a segment as well. The closest is near Duquesne University and the © Ability Facility. New York. These athletes have an impeccable work ethic to achieve success in their chosen sport. Maine. LLC. The reason for this income range is because statistics show more people as being middle class.

how can you prove it? There are no real significant government regulations on the exercise side of training facilities. The meaning of ambiguity is that companies often try to cover loop holes in the contract. The barriers to entry are high start up costs but generally low variable costs when referring to equipment. Differentiation of these products is not profound enough to cause facilities to change from the existing nautilus equipment. More today than ever before companies are subject to being sued by their members for injuries incurred in their workout facilities. Western states and Midwestern states. Each location was selected based on someone’s idea to target the Northern states. the Food and Drug Administration (FDA) controls the distribution of supplements on the nutrition side. The available market includes athletes and non-athletes that are obviously health conscious. The trends do need to be monitored from time to time and change is something that will happen but only in time. 12 others are in South Carolina. California and Oklahoma. Most if not all training facilities are legally limited liability companies (LLC) because of the growing concerns with insurance. © Ability Facility. LLC. 2004 . It raises the question was it done on purpose? If this is the case. The other big issue has to do with contract law in that many companies are ambiguous. The assumption in this industry is that people choose to exercise as a daily regiment. however. Technology in the fitness industry is constantly improving on already existing products. We provide services for the majority of the athletes and all the Olympic athletes within the geographic segment.

Ability Facility is unique and differentiated from its competitors that create curiosity. dietitian or a combination of a nutrition plan and workout plan that would guide you towards your fitness goals. Some gaps include not having enough of a particular machine to meet customer’s availability needs and wants. but Ability Facility does. 13 Competitors The competition offers relatively the same products. By personable. The physical trainers go out of their way to help you achieve your exercise goals. from the types of nautilus equipment to free weights. Competitors are Bally’s Total Fitness. Not only does Ability Facility differentiate itself by having wrestling mats. Gold’s Gym. LLC. but also. All of the other three competitors offer different messages and targets which betters their strategy in their direct segments. These are luxuries that most competitors do not offer. The determinants of price include the services of a personal trainer. The chart below this paragraph lists Ability Facility’s message relative to their major competitors along with whom the target audience is and then explains why their strategy is superior. © Ability Facility. they provide a personable service. Fit Works and other large fitness chains all across Ability Facilities’ geographic segment. This chart shows that the competition is indirect. 2004 . Ability Facility looks to create long lasting relationships with their clientele. This means the time factor as well as being able to exercise a certain muscle group in a particular way with a certain machine. Direct competition is not a major factor because geographic location is a significant player in achieving market saturation.

Lastly. during lunch or even after work. 14 Company Names Message Target Strategy is better Ability Facility Differentiation Athletes No one else offers wrestling mats. The weakness for the competitor is that every once in awhile. they are going to need to update. The buying power is held in the customer’s hands. The capacity at any given point as far as the number of © Ability Facility. The last relationship is the market vs. 2004 . competitor outlook strength is that customers are able to choose which fitness center or training facility to workout at. the strength of the competitors at this point is name recognition. The weakness is that customers show loyalty to those brands they know and trust which means the experience of the chain stores will be hard to overcome. The customer vs. LLC. The strength for the competitor relative to the market is once you have incurred the start-up costs the variable costs per month are not extraordinarily large. caters to the power lifting and bodybuilding markets. maintain and process the nautilus equipment. concise segment Competitors such as Bally’s Total Fitness have the image as the low cost convenience center that gives the opportunity to have a personal trainer. As for Fit Works. In the competitor vs. Gold’s Gym. the competitor. they have the image of the place to get cardio fitness that caters to those people who squeeze in a quick workout before work. The weakness of my competitors is that they do not differentiate themselves virtually at all. extras Competitors Bally's low-cost solution to fitness non-athlete The best route without luxury Fit Works Cardio the quick way Workforce Convenient time frame Gold's Gym Competitiveness Power lifters Clear. competitor outlook.

2004 . This statistically measures how optimistic a consumer is about the economy as a whole and measures their spending and saving habits around the number. These are the major business risks that are taken into account most often when making decisions. Gross Domestic Product (GDP) and the various consumer indexes. The area of Southern New York is not near any high risk natural disaster areas. however. The most detrimental measure is the consumer confidence index. few consumers are that picky when it comes to wants which in their minds is something they need. © Ability Facility. The consumer confidence index is based on current conditions and future outlook. When interest rates are high people spend less on their wants and that may include joining a gym in the worst possible scenario. LLC. Statistics on places where natural disasters occur are also an important factor to consider. whereas. 15 people in Bally’s for instance is 200. The facts on industry numbers show that exercise is a high priority in many people’s lives so regardless of fluctuations they will still pay for the use of our equipment. GDP measures all the tangible products produced so the lower GDP the higher businesses must charge given a lower demand for products. accessories and the service we provide. Ability Facility’s capacity will be near 300. When interest rates are down people generally spend more of their disposable income. The only concern that may exist is that of zoning requirements. The higher the GDP is the better for the consumers because businesses can afford to run sales and increase purchase volume even more. Economy Business is affected by interest rates.

The price of personal trainer services is included in our membership fee whereas for a majority if not all competitors charge an additional fee. Later considerably close to the time of the Olympic Games. The computer software has a query tracking system which determines the twenty percent of customers which are most profitable. With all the stress training brings. We will also promote through various publications including magazines and newspapers. so we have a membership identification card that can be swiped for entry 24 hours a day. we plan on getting sponsors to run press releases. . track and field events and of coarse wrestling tournaments in the geographic area that we are segmenting to. Marketing Plan Overall Strategy The Ability Facility distinguishes itself in entering a market that we can offer a wide range of fitness activities in. Our customer service is raised above everyone else because of the Total Quality Management (TQM) strategy initiated. Olympic training facilities are limited to their targets based on location. we want to provide the most convenience. What is common is that the lifestyle of the target markets is all health conscious people. and Ability Facility is no different. The quality of are workout equipment is not so much improved compared to everyone else but rather differentiated in the extras we offer. We plan to advertise and promote the Ability Facility through sporting venues such as gymnastics meets. Some of the extras we offer include wrestling mats and gymnast equipment to name a few things.

This extra mile refers to how the physical trainers work with your time commitments allowing you to choose the time that is most convenient to you. LLC. However. The pricing strategy that Ability Facility will use is market share pricing. Another way to get name recognition out in the industry is through trade shows and possible strategic alliances. the pricing is not that sensitive. The company image that Ability Facility holds dear is the extra mile is within the reach of customer service. 17 Within our geographic location. therefore. Sales Strategies The Ability Facility’s position in the market is not apparent as it is a new start-up with a focus around building Olympic athletes for the United States. The reality is that luxury does not exist without a cost. Many people feel the need to exercise on a daily basis so they will generally pay a little more. The non-conventional amenities include the wrestling mats and gymnast equipment that competition lacks. The marketing mix we have allows us to gain name recognition as well. Uniqueness that catches the customer’s eye will bring people out of curiosity. we plan on gaining and then keeping loyal customers through the extras we offer along with great customer service. Once they have their first initial experience they will be hooked into all that is available to them. Logically the statistical results show greater sales near the time when the Olympics begin. A significant and logical determinant is cost. Ability Facility wants to be seen as differentiated from any other fitness center because they add non-conventional methods of getting and staying fit to all the conventional ways. there are always going to be some customers that will leave because © Ability Facility. Also. 2004 .

The other pricing option used is segmented for a concentrated market. Being that Ability Facility offers luxury service. the customer would receive free day passes to invite friends in an effort to increase the customer base. 18 they have a limit in the price that they are willing to pay. The reasoning behind this is that customers see the value added with the services we offer. The clothing lines offered are manufactured through Cliff Keen athletics. whom of which have been strong supporters of wrestling for many years. When the time is right even the segment of people that do not want to pay more will eventually see the price decrease into their price range. The future holds possible personal trainer services outside the recreational center. That market is the geographic segment that lives in the dorms and trains year round. Typically they would receive two free months. the likelihood of losing customers due to price increases is limited. Added benefits are given to customers who pay their membership up front in full. The position of price is also important and the best method would be price skimming. Also. Where a personal trainer would actually come and show exercises that you can do without weight or few weights from your home. The sales strategies are going to be direct sales. The membership is $40 per month but if paid in full the two free months is a value of $80 they would save. The ease of entering and exiting Ability Facility is really convenient in that the file system is all electronic. The Ability Facility is a single retail unit currently but there is always a possibility to expand depending on growth in sales and further market analysis. LLC. The customer has twenty-four hour access with a membership swipe card. The © Ability Facility. 2004 .

19 merchandise is sold as retail in the lobby of the facility. The computer software allows Ability Facility to be paperless. The sales reps accounting for the most sales will deal with the cold calling while the other representatives will work with the hot leads. The advertising budget is 10% of quarterly sales. This will show what customers purchase goods as well as which customers use the facility the most. Anyone in between will be mixed into the contacts database. 2004 . Other companies we teamed up with include Pepsi who now owns Gatorade. The greatest cost to Ability Facility will occur around the months preceding the Olympic Games. Gymnast Today and Runner. The results for Ability Facility are that they differentiated themselves in a niche within the larger whole of the fitness market. This is to build positive relationships with prospective clientele while tracking demographics. it makes tracking customers easy by placing them in a database. We plan on purchasing leads from key magazines that we run advertisements in including Wrestling USA. also. LLC. The leads we create will contain both hot and cold leads which are determined by responses to a survey that is filled out after their one free trial visit. Knowing this information we can give them discounts for every new member they can recruit by word of mouth. We are a retailer that has teamed up with General Nutrition Centers (GNC) to offer supplements and both low carbohydrate and protein bars. We will purchase lead lists as well as create them. Advertising and Promotion The Ability Facility advertises in many sporting magazines where their profiled targets would be reached. Other promotional areas are offering a free trial visit. The higher sales will © Ability Facility.

so why not you to. gymnastics competitions and track and field events within the geographic segment. work and win]. “Quench your effort today by staying hydrated your way…Drink Gatorade.” © Ability Facility. The best time to due this again is during the preceding months when the public initially begins thinking about the Olympic Games yet to come.” Then Gatorade adds to the motto by saying. To limit costs near the time of the Olympics. The publications Ability Facility will reach include sports focused magazines such as Wrestling USA. Public Relations The Ability Facility’s public image in the eyes of the media is an Olympic training facility where the “average Joe” will receive the same quality customer service as our nation’s best athletes. The media will be reached by an invitation to tour our facility and promote that Ability Facility is where many of the United States athletes train. The Ability Facility’s slogan will be placed on billboards sponsored by Pepsi. however. LLC. Those would be the primary places. “An effort today gives results your way [so train. The main events that we would advertise at include the large national wrestling tournaments. Ability Facility’s motto is. Sports Illustrated and men’s and women’s health and fitness magazines. 2004 . the public relations committee will be working diligently to receive publicity. 20 compensate for the increase in cost of additional promotions. featuring Gatorade. customer feedback will help us determine which types are attracting our targets and which are not. For example.

21 © Ability Facility. 2004 . LLC.