6.3. SR 06-17-2002 - Laserfiche WebLink

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IT FIGURES 2002 BUSINESS PLAN Charlotte Gatewood and Sherri Gatewood Co-Owners EXECUTIVE SUMMARY The purpose of this plan is to provide common focus and direction for the co-owners to begin a business venture as It Figures, a women only fitness center (with possibly two future tanning booths) for members only to be located in Space C101A at Elk Park Center in Elk River, Minnesota. Elk Park Center is a community shopping center located on the west side of Highway 169 at Jackson Road approximately 2 miles north of the Highway 169/Highway 10 interchange. The local industry conditions are one health gym and one women-only (Curves) fitness center, in the population base of 17, 016. The population base It Figures is marketing is women 35 to 65 years of age. Co-owners Sherri and Charlotte Gatewood, do not have specific experience in fitness other than each has been prior member of a women-only fitness center. Sherri has prior experience working with the public while employed with a medical facility and as an office manager in a local business. Charlotte has been employed with a manufacturer of durable goods and is currently an executive member of the business- planning group and as Director of Human Resources whose annual gross sales are in excess of $50 million annually. Each of the co-owners is determined to achieve success in this business venture. The initial start-up financial needs have been supplied from personally from the co-owners. This has given an opportunity to secure the city of Elk River, the initial order for equipment, office equipment and business software, the first and last payments for the lease of the space in Elk Park Center, working capital, and the financial needs for the improvements of the lease property. MARKET AND ECONOMY It Figures is the perfect business to begin. Health and fitness is a 33 billion-dollar industry. Why is It Figures so opportune: low capital requirements; low business investment including equipment of $19,500; Operational simplicity; minimum staffing requirements of one full time and 2 part time employees during the initial start-up phase; no seasonality; health, fitness and beauty related investments are consumer decisions usually unaffected by economic trends; direct response marketing, local print advertising creates a high quantity of direct response inquirers. Gross sales often exceed expenses within the first 60 days of operation. After the third month it will produce a profit LOCATION It Figures facilities cater to a niche market. We attract a certain type of consumer by combining a women only thirty-minute fitness center with built-in personal attention. By locating this business in a community shopping center, we will be visible to that market niche. DAILY OPERATIONS It Figures is planning on opening for business by August, 2002. The minimum operating hours will be Monday through Friday 6:30 a.m. - 7:30 p.m. and on Saturday 6:30 a.m. - noon. As the business and memberships increase the hours of operation will be evaluated and adjusted to the needs of the members. INCOME DETAILS The source of revenue to It Figures will be generated by two types of fees. The first is a service fee that will average $60 per membership. The initial fee is $149.00, however to gain memberships advertised