Self Propel Business Proposal

Business ProPosal

Mission StatementBusiness PhilosophyMarketing PlanLimited Liability CorporationBurn to Earn ProgramProducts & ServicesCustomersCompetitionCompetitive AnalysisLocationsGym Floor PlanEquipment CostsGrid-Tie Inverter SystemPersonnel & Work ScheduleHours of OperationLegal EnvironmentStart-up CostsFinancialsGrowth StrategyMembershipSummaryStationeryWebsite

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Table of Contents

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wind

hydro

solar

human

Mission Statement

We intend to provide residents of Louisville a

workout facility with a small, community-based

atmosphere, while emphasizing our environ-

mentally friendly corporate philosophy. We will

differentiate our product by way of the sustain-

able innovations that we will promote with

our energy producing machinery and various

marketing strategies.

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 depen-

dence 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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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 environ-

ment 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, Dutch-

man’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 shop-

ping 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 experi-

ence 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 Corpo-

ration. 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 disad-

vantages, which are both to be discussed below.

The primary advantages of operating as an

LLC are protection from personal liability and

f lexibility 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 appli-

cable 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

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.

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“Burn to Earn” Program

There are two main objectives within our B2E,

or “Burn To Earn” Program. The f irst 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-suff icient, 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 mile-

stone. 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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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 life-

styles 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 state-

ments 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

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 compa-

rable 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 equip-

ment 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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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 f irst 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 loca-

tion. 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

#2

#1

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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.

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

traff ic 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 PlanSelf 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.

#3

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0 ft 10 ft 20 ft 30 ft 40 ft 50 ft

70 ft

60 ft

50 ft

40 ft

30 ft

20 ft

10 ft

0 ft

ShoulderPress

ChestIncline

Chest Press

Fitness Classes27’ 6” x 15’

10’ x 7’ 6”

10’ x 7’ 6”

Tred Tred Tred TredElliptical

Elliptical

Elliptical

Elliptical

Elliptical

Elliptical

Leg Press Calf PressBack

Extension

DipMachine

Leg Curl Chest FlyMachine

Tricep Extensionss

CurlMachine

LegExtension

Shower

Shower

Shower

Shower

Benc

hBe

nch

Bench

Bench

Storage6’ 3” x 6’ 3”

Bike Bike Bike

InstructorBike

Bike

Bike Bike Bike

Cycling ClassesCyclin asses27’ 6 “ x 13’ 9”27’ 6 3’ 9”

Bike

Bike

Bike

Check-In16’ 3” x 7’ 6”

Benc

hBe

nch

Women’someLockerock

16’ 3” x 20’3” x

Men’sMenLockerock

16’ 3” x 15’3” x

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Equipment Costs

Machine Name Units Unit Price Total Price

CTS 350 SB Spinning Exercise Bike 13 $ 621 $ 7,751

CTS 375 EL Elliptical Cross Trainer 6 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 $ 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

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 depen-

dent 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 Univer-

sity of Louisville.

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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 oppor-

tunities 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, reli-

gion, 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 Govern-

ment 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 $ 75,000

Total Cash $ 435,000 Total Startup Cost $ 285,000

Cash Slush Fund $ 150,000

Startup Costs

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 esti-

mated to be $95,000. That will leave $50,000

for each location as a slush fund to cover the first

year’s operating loss.

Financials

The following pages contain our projected

financial statements, including income state-

ments, 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 f inancial 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 opera-

tion for one location.

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Self Propel (Location #1) Income Statement First Month of Operation

Sales Memberships $ 8,000

Initiation Fees 1,250

Gross Profit $ 9,250

Operating Expenses 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 (50)

Depreciation (896)

Salary Expense (5,000)

Total Operations Expenses $ (13,012)

Net Income $ (3,762)

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

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Self Propel (All Locations) Income Statement First Month of Operation




Operating Expenses Interest Expense $ (10,872)

Insurance Expense (6,300)

Office Expense (4,788)


Repairs Expense (2,988)

Supplies Expense (12,000)

Taxes Expense (6,840)

Wages Expense (17,280)

Advertising Expense (9,000)

Utilities Expense (12,600)

Water Expense (3,600)

Credit Card Fee Expense (1,800)

Depreciation (32,256)



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.

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)

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Self PropelIncome Statement Fourth+ of Operation




Operating Expenses Interest Expense $ (10,872)

Insurance Expense (6,300)

Office Expense (4,788)


Repairs Expense (2,988)

Supplies Expense (12,000)

Taxes Expense (6,840)

Wages Expense (30,240)

Advertising Expense (9,000)

Utilities Expense (12,600)

Water Expense (3,600)

Credit Card Fee Expense (1,800)

Depreciation (32,256)



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 physi-

cally and emotionally, while knowing they are

also contributing to the betterment of the envi-

ronment. 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 loca-

tions. 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 signif icantly 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

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

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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 loca-

tions 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 f low 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 fore-

casted, we haven’t included them in our projec-

tions. 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 oppor-

tunity 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 f inancial

aspects of the business. However, as previously

mentioned, our primary motives for every deci-

sion 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.

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

f irst 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 busi-

ness 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

25

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 busi-

ness 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 disci-

plines. 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 loca-

tions 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 envi-

ronmentally 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.

26

Marlena UsherDirector of Advertising

cell: (502) 555-2525email: [email protected]

Self Propel Fitness Center1234 Taylorsville RdLouisville, KY 45454www.selfpropel.com

Matt WoodChief Marketing Officer



Maggie GrootChief Executive Officer



Kyle KuricPublic Relations



Anthony DicarloChief Operating Officer



Zack ClarkChief Financial Officer



27

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 respon-sible 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

1234 Taylorsville Rd


(502) 555-9873

www.selfpropel.com

28

Self Propel Fitness Center

1234 Taylorsville Rd


(502) 555-9873

1234 Taylorsville rdlouisville, Ky 45454

(502) 555-9873www.selfpropel.com

Self Propel Business Proposal

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