Copyright By AndrewScottDapprich 2010

The Report committee for Andrew Scott Dapprich certifies that this is the approved version of the following Report:

Start Up Gym Business Plan

APPROVED BY SUPERVISING COMMITTEE:

Supervisor:__________________________________________________ Isabella Cunnigham Gary Wilcox

_______________________________________________________

Start Up Gym Business Plan

By

Andrew Scott Dapprich, BSC

Report

Presented to the Faculty of the Graduate School of the University of Texas at Austin in Partial Fulfillment of the Requirements for the Degree of

Master of Arts

The University of Texas at Austin

DECEMBER, 2010

Start Up Gym Business Plan

By

Andrew Scott Dapprich, MA The University of Texas at Austin, 2010 SUPERVISOR: Isabella Cunningham

strategically position a gym within the competitive landscape of Santa Clara,

California. This report includes an executive summary, description of products, the purpose of this report to consider as many relevant factors as possible to compile and more complete and accurate business plan.

This reports goes conducts a situational and financial analysis in order to

marketing & an operational plan as well as financial forecasts for the first year. It is

iv

TABLE OF CONTENTS
List of Tables List of Figures vi vii

EXECUTIVE SUMMARY GENERAL COMPANY DESCRIPTION

Mission Statement Company Vision Business Goals & Objectives Business Philosophy Target Market Company Strengths and Core Competencies Legal Form of Ownership

1 3
3 3 3 4 5 5 6

PRODUCTS AND SERVICES

Memberships Personal Training Fitness Assessments Nutritional Supplements and Food

7
7 7 8 9

MARKETING PLAN
Industry overview Industry and Exercise Trends Prevailing Exercise Attitudes Barriers to Entry Relevant Competition Advertising and Promotional Plan

10
10 12 14 15 18 21

OPERATIONAL PLAN
Production / Service Location Operating Costs Financial Forecast

28
28 29 35 36

APPENDIX EXHIBITS 1-16 BIBLIOGRAPHY

39 59

LISTOFTABLES
Table1: Table2: Table3: Table4: Table5: Table6: Table7: MembershipFees FitnessAssessmentFees SponsorshipCosts OfficeExpenses StartupandRemodelingCosts OperatingCosts MonthlyDemand 7 8 27 34 35 36 36

vi

LISTOFFIGURES
Figure1: Figure2: Figure3: Figure4: Figure5: Figure6: Figure7: Figure8: Figure9: ObesityPercentofPopulationbyState MapofDesignatedLocation KaiserPermanenteMedicalCenter AgilentTechnologies CupertinoSquareMall SantaClaraHighSchool SusanG.KomenfortheCure GymDesignAesthetic1 GymDesignAesthetic2 11 18 24 25 25 26 27 34 34

vii

EXECUTIVESUMMARY
Thefollowingdocumentisaplanfortheoperationandmarketingofastartupgym locatedinSantaClara,California.Thisgymisgearedtowardsthefitness apprehensivemarket:peoplethathavethewilltoworkoutbutlacktheconfidence. Itsanopportunitytoserveamarketthatisoftenforgottenaboutbymakingfitness anenjoyableexperience.Thenewgymwillofferaccesstofitnessequipment, personaltraining,andfitnessassessmentsinacomfortableandwelcoming environment.Sharpdesignandacomfortingenvironmentwillsetthegymapart fromthecompetition.Itwillbeaplacewherepeoplewanttoberatherthanhaveto be. The5,000squarefootgymwillrequireheavystartupcapitalforrenovationsand equipmentpurchases.Investmentincardiomachinesandweightsisestimatedat $100,000;whileoverallbuildoutanddecoratingcostsareprojectedtobe ~$107,000,whichbringstotalcapitalrequiredbeforelaunchto$207,000.When therenovationsarecombinedwiththefirstyearoperatingexpensesthetotal requiredcapitolis$400,000.Withmodestdemandprojectionsthisfigurecanbe paidoffinlessthanfouryearswithabreakevenpointinlessthanayear. Inanefforttoincreaseawarenessofthegympriortolaunch,adirectmailandgrass rootsadvertisingcampaignwillbeemployed.Strongcommunityoutrightinitiatives willfollow,includingbutnotlimitedto:littleleaguesponsorships,participationin andsponsorshipofphilanthropiceventsandhighschoolsportsteams.Thegoalisto

integratethegymintothecommunity,tohavecustomerservicedrivebusinessand toinnovateanddifferentiatewheneverpossible.

GENERALCOMPANYDESCRIPTION
Thegoalofthisbusinessplanistoaddressrelevantaspectsofthefitnesscenter industryandhowmyproposedfitnesscenterwillfitwithinit. MissionStatement Helpingtheshy,reluctant,anddiscouragedachievetheirfitnessGoals.Thegoalis tocreateanenvironmentwherethenonathletewillfeelcomfortable.Thegymwill beanextensionofthehome:safetyandfamiliarityarethemostimportantelements. CompanyVision Fourmaincomponentswillcharacterizeanddrivethebusiness:People,Service, Partnerships,andProductivity. People:Createanenvironmentwherepeoplewanttoworkoutratherthan needto. Service:Customerserviceleadssuccess.Transactionsmakethemcomein. Peoplemakethemcomeback. Businessgoalsandobjectives Breakevenwithinthefirstyearofoperations Keepmarginshighbyofferingvalueandreducingcosts MaintainayeartoyearROIof15%within3years Partnerships:Alwayspushforasituationwhereallpartiesarehappy. Productivity:Staycurrentandstaylean.

Maintaina60/40debttoequityratio Offeradiverseproductoffering(classes,personaltraining,equipment,etc.)

BusinessPhilosophy Manybusinessesaredrivenpurelybyprofitandhaveamyopicperspectiveon financialperformance.Thisnewgymwillstartwiththecustomerandtheir respectiveneeds.Theadageofthecustomerisalwaysrightiswhatwilldrive business.Clientsaremorelikelytoreturnandgivereferralsiftreatedproperly, increasingtheirlifetimevaluetothebusiness. Maximizingcustomerlifetimevaluewillbeanimportantcorephilosophy.Rather thanfocusontransactions,thefocuswillbeoncustomerconnections.Forasmall, independentlyownedbusiness,personalconnectionsproducecustomerloyaltyand repeatbusiness.Perhapsmoreimportantly,personalconnectionshavetheabilityto producesatisfiedcustomers,whichinturnreflectstheproductandgenerates referrals. Inadditiontopersonalconnections,thebusinesswillemphasizeinnovation. Innovationwillnotonlypertaintoproduct/programofferings,buttocreative businesssolutions.Creativesolutionstobusinessissues(strategicpartnerships, creativemarketing/advertising,databaseandpaymentmanagement,etc.)help establishatonetothedaytodayoperationsaswellashelpingtoestablishabrand identity.

Thelifebloodofanyoperationisitsemployees.Thefitnesscenterwillneedto employpeoplewithcomplimentarypersonalitiesanddemeanors.Thisdoesnot meanthattheemployeesshouldbehomogeneousindisposition,butinsteadthey musthaveacoreunderstandinganddrive.Thiscoreelementwillunitethemand createaconsistatmosphere. Listofkeycompanyprincipals TargetMarket Theoverweighttoobesepopulation,ages3055,uppermiddleclass,ataturning pointintheirhealth/fitnessroutine,withina10mintraveldistanceofthefitness center.AmoredetailedexplanationisfoundintheMarketingPlansection. CompanyStrengthsandCoreCompetencies Theprimarystrengthisdifferentiationthroughimpeccablecustomerserviceand uniqueambiance.Inaddition,thefitnesscenterwillofferqualityproducts (equipment,facilities,etc)andqualityservices(personaltraining,classes,etc.).Over theyears,fitnesscentershavebecomeacommodityinthattherearenotmany differentiatingfactors.Thisiswhydifferentiationiskey.Forthechosen TheCustomerleadsbusiness Formconnectionsdontjustproducetransactions Innovatewheneverpossible Enjoymentthroughwork

demographic,alargevolumeofproductofferingsisnotanimportantfactor.Asa resultourfitnesscenterwillnotfocusonproductofferingasadifferentiatingfactor. Insteadtheserviceandfeelofthegymwillsetthisfitnesscenterapart. LegalFormofOwnership ThefitnesscenterwillbeaLimitedLiabilityCompanyinordertoreducethe ownershipspersonalliabilityandfortaxpurposes.

PRODUCTSANDSERVICES
Memberships Mostgymsrunbythemembershipmodelwherebycustomerspurchasea membershipforagivenperiodoftime,allowingthemaccessanduseofthe facilities.Membershipswillbeavailableatdifferentpricepointscorrespondingto thespecifiedtimeperiod.Grouprateswillbeofferedtocouplesandorganizations. Pleaseseemembershiptablebelowforacomprehensivelistingofmembership typesandpricing.Overall,ourmembershipswillbeflexibleinorderto accommodatetheclientasmuchaspossible. Table1
Rate $10 $70 $60/month $50/month $40 $55 $50 $45 Notes 15%offwiththepurchaseofdaybundles (3/5/7/14daypackages)

Membership Duration Single DayPass Single Single Single(2) Single(3) Group2+ Group2+ Group2+ 1month 12months 24months 36months 12months 24months 36months

10%offforeachadditionalperson 10%offforeachadditionalperson 10%offforeachadditionalperson

PersonalTraining Inadditiontomemberships,PersonalTrainingisamajorsourceofrevenueforthe gym.Trainerswillbepaidhourlyandgivena20%commissionforanyclientthey signupforamembership.Avarietyoftrainerswillbeavailablesoeachclientcanbe pairedwiththemostconducivetrainerintermsofstyle,personality,experienceand theirfitnessgoals.Personaltrainingpriceswillrangefrom$50$100anhour, dependingonthetrainersexperienceandspecialty.

Personaltrainingcanbeaveryintimateservice.Thetrainermustactasateacher andmotivator,butalsoasatherapist.Thegymisanintimidatingplaceformany peoplebecausetheyareafraidofjudgment.Furthermore,manypeoplewhoare eithernewtothegymenvironmentorareoverweightneedemotionalsupport becausetheireatingandexercisehabitsareoftentiedtopsychological/emotional aspects.Atrainermustbeabletohelptheclientidentifytheseissuesandprovide themwithnewstrategiesforhowtoeatandexercisetopromoteahealthylifestyle. Forthisreason,thetrainershiredmustnotonlybepersonable,butmustbe sensitive. FitnessAssessments Thegymwilloffervariousfitnessassessmentstothefitnessenthusiast,beginner,or tothosewhohavebeenlongremovedfromfitness.Theseassessmentswillhelp establishabaselineforclients,providenumericalfeedbackabouttheirhealthand allowthemtobenchmarktheirhealthagainsttheaverage.Assessmentswillbe offeredtobothmembersandnonmembers(nonmemberswillincuranadditional fee). Table2
Assessment BaselineFitnessTest VO2maxtest BodyCompositionAnalysis Cost(Member) $20 $50 $15 Cost(Nonmember) $35 $80 $30

NutritionalSupplementsandFood Duetothehighconcentrationofathleticandhealthorientedclientele,thegymisa greatplacetooffernutritionalsupplementssuchasproteinpowdersandshakes, creatine,andotheraminoacids.Inadditiontosupplements,healthsnackssuchas nuts,trailmix,andmealreplacementbarswillbeoffered.Sportsdrinks(Powerade, Gatorade,etc.)willbeavailablefromavendingmachinelocatedinthefoyerbythe frontdesk. Cost:$150permonth

MARKETINGPLAN
IndustryOverview Althoughdippingslightlyduringtheonsetoftherecession,thehealthandfitness industryispoisedtogrowasunemploymentdecreases.In2009theindustrywas valuedatapproximately$23.5billion,with33,000establishments,and540,000 employees.BigBoxgymslike24hourFitness,LifetimeFitness,BallyTotalFitness hold14.1%ofthemarketasof2008,althoughpreferencehasbeenmovingtowards gymswithasmallerfootprint(snapfitness,anytimefitness,etc.).Thesegyms provideasmallerenvironment,(3,0005,000),incontrasttoBigBoxgyms (~20,000sfupto100,000sf). Theindustryhasavarietyofpotentmarketdrivers.Everyphysician,health educator,healthinsurer,healthjournalist,school,university,indeed,everymajor institutionconcernedwithhealth,includingtheAmericanMedicalAssociation,the AmericanHeartAssociation,andcountlessothers,alladvisetheirreaders,patients, students,andclientsthatregularexerciseisvitaltoahealthyandproductivelife. Whethermanagingstress,avoidinglongtermhealthproblems,tosimplylooking andfeelingonesbest,healthandfitnessisagrowingconcerntoAmericans,a concernthatwillcontinuetogrowsharplyintheyearsahead,despitegeneral economicconditions. Overall,thehealthandfitnessindustryisexpectedtogrowasobesitybecomesa morerecognizedissuewithintheUS.AccordingtotheJournaloftheAmerican

10

MedicalAssociation(JAMA)approximately34%ofUScitizens,age20orolder,are consideredobese(havea BMI1over30)and approximately69%ofthe samepopulationis consideredoverweight (BMIover25).Currently theobesityepidemicdoes notshowsignsofslowing.Eachyearforthepasttenyearsthe overallobesitypercentagehasincreasedatarateof~.5%. Astheobesitynumberscontinuetobloat,corporationsarelookingforwaysto reducehealthcarecosts:enterCorporateHealthandWellnessprograms.These programsaredesignedaspreventativecareortheyincentivizecertainbehaviors likesmokingabstinence,gymmemberships,nutritiontips,etc.Accordingtothe CDC,corporationssaveanywherefrom$1to$6foreverydollartheyinvestin employeehealthandproductivity.Furthermore,theNationalCorporateWellness Foundationfoundthatcompanieswhoparticipateinacorporatewellnessprogram havea30%decreaseinworkerscompensationanddisabilityclaims,andmorethan a25%reductionissickleaveandhealthrelatedcosts.
(kg)/height(meters)2

Figure1

1BMIstandsforBodyMassIndexandisawidelyacceptedmeasureofobesity.BMI=weight

11

Formostconsumers,conveniencetrumpsprice.Healthclubmembers,accordingto theIHRSAsstatistics,arewillingtopay$10to$50morepermonthforgym convenienceasopposedtoonethatmightbelessexpensivebutoutoftheway. Convenience,however,ismorethanjustproximity.Aclubmustbeaccessible,as wellasclose.Thelackofparkingandtrafficjamsindowntownareas,forexample, arebarrierstosomeclubsgrowth. IndustryandExerciseTrends StatisticspublishedbytheUSCenterforDiseaseControl(CDC)indicatethatthe percentageofAmericanswhoexercisehasremainedsteadyat~37%since1988. However,exerciseestimatesvarywidely.Mintelconducteditsownresearchand foundthat74%oftheirrespondentsexercisebutonly12%ofrespondents exercisefortheCDCrecommended150minutes/week.Someofthedisparityin statisticsmaybeduetodifferentdefinitionsofkeytermsandrespondents overestimatingtheiractualexerciseexpenditure(i.e.mostpeoplearereluctantto admitthattheydonotspendnearlyenoughtimeatthegym.Consequentlytheytell peopletheyexercisemorethantheydo). Somerecentdriversofexercisearefoundinpopularmedia.ShowslikeTheBiggest Loser(CBS),Thintervention(Bravo),andSoYouThinkYouCanDance(FOX) hasspurrednewinterestinphysicalfitnessandexercise.AccordingtoanAmerican CouncilonExercise(ACE)survey,thosethatexercisetomusichaveincreasedfrom 21.8millionin2007to22millionin2009.DanceclasseslikeZumbaandpole

12

dancinghavecomeonthesceneinrecentyearsinordertocapitalizeonthegrowth ofthedance/fitnessindustry. Whenyoucombinetherecentfitnessattentionbythemediaanddecliningleisure timeduetothepooreconomy,theresultisanincreaseinpowerworkoutinterest. Powerworkoutsareshorter(~30min)butmoreintensethantraditionalworkouts orclasses.Theseworkoutsfocusonmusclegrowthandfatburningthroughan increasedheartrate.Thishybridtypeofworkoutcombinesstrengthtraining techniqueswithaerobicactivity. AnotherinterestingfitnesstrendissomethingMinteldubs,exergames.Asthe nameindicates,exergamesaretheamalgamationofexerciseandentertainment. ThingsliketheadventofWiiFit,Bodybugg(workswithiphone),andExpresso Fitnessinteractivestationarybikeshavehelpedreviveanexerciseinterestamong consumers(exhibit1).Surveyfindingsshowthatthreeintenfitnessconsumers haveaninterestinvideogames,heartratemonitors,andothertechnologiesthat cantrackexpendedcalories,offeralternativeworkouts,andtrackfitnessprogress overtime. AccordingtoClubIndustry,IHRSA(InternationalHealth,RaquetandSportsclub Association),andHooverscorporatepartnershipsareincreasinginlargepartdueto anincreaseinhealthconcerns/awareness.Thesepartnershipsusuallycomeintwo forms:fitnessclubsarecontractedtoruncorporatehealthfacilitiesorfitnessclubs

13

offerdiscountstothecorporatestaff.Longgonearethedayswherecorporations milkeveryounceofproductivityfromtheiremployees.Thenewparadigmis employeelifetimevalue,whichcanbemaximizedbykeepingthemhealthy. Althoughprivateclubmembershippenetrationhasonlyincreased1percentage pointsince2007(from10to11%)thelargestgrowthbyagewasamongstunder 45yearolds.Under45yearoldsrepresentthemainmarketforgymmembership despitethelargenumbersofbabyboomers.Thoseaged1834remainfickle:they arethemostlikelygrouptobecomegymmembersbuttheyarealsothemostlikely toswitchestablishments.Warinessmustcomewhentargetingthisdemographic. Notsurprisinglyincomelevelisthebiggestindicatorofclubmembership.Only8% ofthe$25kandunderincomesegmenthavegymmembershipsascomparedtothe $150k+segmentat39%.Additionally,whitesaremorelikelytoexercisethanblacks orHispanics.Thistrendcouldpartiallyexplainwhyobesityratesarehigher amongstblacksandHispanicsascomparedtowhites. PrevailingExerciseAttitudes Itmaycomeasnoshockthatsomepeopleviewexerciseasadull,painfulchoreand wouldprefertodomanyotherthings(seeexhibit2forMintelssurveyresults). Womenaremorelikelythanmentoviewexerciseasachoreorsomethingthatthey thinktheyshoulddobutdonotreallywanttodo.Overall,onlyaboutoneoutof threepeopleconsiderexerciseassomethingfun.Gymshavetriedtoovercomethe

14

choreperspectivebyassigningcoachestoclientswhoarelapsingonfitness. Additionally,thebuddysystempremisehasbeenshowntoincreasemotivation andconsistency. Althoughsomepeopleviewexerciseasachore,thereisvariationamongages.For example,morethanhalfofthosesurveyedages1824saythatexercisingmakes themhappy.Furthermore,Singlesaremorelikelytoworkoutbecauseitmakes themhappyandsotheycanindulgeinunhealthylifestyleactivities.However,after apersons25thbirthdaytheheartratehappinessbeginstodwindleinalinear fashion.Bythetimeapersonreaches55yearsoldonly23%ofsurveyrespondents saidtheyworkoutbecauseitmakesthemhappy.Thepredominantreasonthat olderdemographicsexerciseisduetoassociatedhealthbenefits.Thedataindicates thathealthconcernsandahealthylifestylearelargedriversaspeoplegetolder. Thisimpliesthatthebabyboomermarketisripefortargetingandcustomizationof programsspecifictotheirneeds,interests,andattitudes. BarrierstoEntry Equipment Oneofthelargestbarrierstoentryforafitnesscenterisitsequipmentcosts.These costsaresubstantialandwillcompriseatleast50%ofthestartupbudget. However,thesecapitalcostscanbedepreciatedovertimereducingtaximplications. Costestimateswerecompiledfromvarioussourcesincludingindustrybuying guidesandmanufacturerinvoices.

15

Competition Alotofcompetitionexistswithinthefitnesscenterindustry.Themajorplayers (Balleys,24HourFitness,etc.)havealargepresencebutleaveroomfornichegyms, tailoredtoaparticulartargetmarketanddemographic.Themajorityofcompetition comesfromindividuallyownedgyms,eitherfranchiseorstartup.Foramore detailedcompetitiveanalysispleaseseetheCompetitionsectionwithinthe MarketingPlan. Economy UnemploymentpersistsintheUS,astheeconomyisslowtorecoverfromtherecent recession.Thosewhoareemployedhavedecreasedspendinginordertobolster themselvesagainstunpredictablefinancialtimes.Despitethelanguishingeconomy, spendingongymmembershipsremainsconstant.Industryanalystsexpecttherate ofgrowthtoincreaseastheeconomyturnsaround. Location/Traffic Itisnosurprisethatlocationisakeyfactorwhenitcomestobusinessbutespecially businesscenters.Mostgymconsumersarenotwillingtotravelawayfromtheirday todaypath(whichincludestoandfromwork,grocerystore,andhome).This meansthatsuccessofthefitnesscenterislargelydeterminedbyitslocation.Ifabad locationischosen,almostnoamountofclevermarketingwillbeabletoovercome thispitfall.Furthermore,evenwithaprimelocationthefitnesscentermustbe

16

convenienttogetto.Therefore,concernssuchastrafficanditscorrespondingflow shouldbeaddressedbeforecommittingtoaspecificlocation. RelevantMarketSizeandLocation Location:LawrenceExpresswayandHomesteadRoad,SantaClara,CA Population:~112,000(51%male,49%Female) MarketSize:~39,2002 MedianIncome:$92,619(33%growthsince2000) OtherDemographics:

Highschoolorhigher:86.9% Bachelor'sdegreeorhigher:42.4% Graduateorprofessionaldegree:16.6% Unemployed:3.4% Meantraveltimetowork:21.8minutes Nevermarried:33.8% Nowmarried:50.9% Separated:1.3% Widowed:5.2% Divorced:8.8%

2EstimationbasedontheCDCsnumberofpeoplewhoengageinphysicalexercise(35%)x PopulationofSantaClaraCalifornia(35%x112,000=39,200)

17

LocationJustification Theactuallocationisflexible,butthespecifiedlocationiswithinminutesfrom corporateoffices,hospitals,grocerystoresandhighschools.Thecloseproximityto thesehighlyfrequenteddestinationsmakesthelocationconvenientwhendropping offthekids,goingshopping,orto/fromwork. Thesurroundingareaisfullofeducated,wellpaidcitizens.19%ofthepopulationis consideredobese;however,thisiswellbelowthenationalaverage.Thismay indicateanincreasedawarenessinhealthandfitness.Also,themostprevalenttype ofjobintheareaisdeskjobs(computerandelectronicindustries).Thosewhohave aninactivejobaremorelikelytolookforadditionaltypesofexercise. RelevantCompetition AccordingtoGoogleMaps,therearesevengymswithina3.0mileradiusofthe designatedlocation.Thecompetitionincludes:
Figure2

24hourfitness(2) Xfit NautilusHealthClub SnapFitness DecathlonClub AccessibleFitness

18

However,thereareonlythreegymslocatedwithin1mileoftheselectedlocation PleaseseeFigure2above. 24HourFitness:Therearetwodifferentlocationswithinthedesignatedlocation radius.Atfirstglancethismayseemtobeaproblem.However,24HourFitnessisa bigboxgymthatservesalargeamountofmembersbutdoesnotcatertothe individual.Itsbusinessstrategyistopushmembershipsandpersonaltraining serviceswithahighpressuresellingmethod.Thisapproachalienatesmembers whowantasimple,yetrefinedfitnesssolutionaswellasthosewhoarelookingfora smallfitnesscommunitywheretheycanfeelliketheybelongtosomething. Address#1:150EastFremontAvenue,Sunnyvale,CA94087 Address#2:1211E.ArquesAvenue,Sunnyvale,CA94087 Xfit:Thisgymisasmallerofferingbutspecializesinkickboxingandcrossfit.Its locationisfarenoughawaythattheyshouldnoteatawayatourmembershipbase. Furthermore,thedesignofthegymissimilartoaboxinggym,whichhasanopen warehousefloorfilledwithnothingmorethanpunchingbags,boxingrings,mats, andaselectionoffreeweights.Thistypeofgymisprimarilyattractivetoathletes andthosewhodeemthemselvesasweekendwarriors. Address:168E.FremontAve.Sunnyvale,CA94087 NautilusHealthClub:Agenericbigboxgymwithlittledifferentiationtospeakof. Nautilusisknownforitsnamesakefitnessequipmentbuthaslostbrandequityin

19

recentyearsasLifetimeFitnessandPrecorhavesurpassedthemintermsofsales andbrandrecognition.Thisparticulargymoffersgenericfitnessequipmentand servicesbutprimarilyusesitsnameasitsmajorpointofdifferentiation(i.e.people associateNautiluswithfitnessandthereforethinkthegymwillalsoofferquality fitnesssolutions). Address:150EastFremontAvenue,Sunnyvale,CA94087 SnapFitness:SnapFitnesswillbethemajorformofcompetitionoutofthegyms nearby.SnapFitnessisafranchisedgymwithhundredsoflocationsacrossthe country.Amemberhasaccesstotheirhomegymaswellasanyotherlocation, whichreducestheneedforagymclosetotheconsumersresidenceorplaceof employment.Anotheroverlappingproductattributeisthe24/7/365hoursof operation.Thesegymstendtobesmallerinsize(comparedtoabigboxgym)and offerbasicfitnessproducts/equipmentandservices.Themajorpointsof differentiationbetweenthenewstartupgymandSnapFitnesswillbecustomer service,involvementinthecommunity,andambiance.Furthermore,SnapFitness targetsanofrillsclientelewhosimplywanttogetinandgetoutwithlittle interactionorassistance.Thestartupgymwilltargetamoreinvolvedclientwho wishestobecomeknowledgeableabouthealthandfitnessandwhoarewillingto payslightlymoretogainthatinformation. Address:60NorthWinchesterBoulevard,SantaClara,CA95050

20

DecathlonClub:Locatedontheouterperimeterofthetargetedarea,theDecathlon Clubisanupscalefullservicecountryclubestablishment.Itismoreofanathletic centerthansimplyagym.TheClubtoutsracquetball,squashandtenniscourts;a fitnesscenter;apool,saunas,andhottubs;andspaservices(massages,facialpeels, etc.).However,allofthiscomesatapremiumprice,assumingyouarenextonthe waitinglist.TheDecathlonClubhasalottooffer,butitwillnotbeadirectformof competition,astheirmemberswantavastlydifferentproductthanwhatthestart upgymwilloffer. Address:3250CentralExpressway,SantaClara,CA95051 AccessibleFitness:AccessibleFitnesscaterstothosewhoareinterestedinmixed martialarts(MMA)training.However,theyofferextensivepersonaltrainingand classesandwillbeamajorpointofcompetitionasthestartupexpandsintothose productofferings.AccessibleFitnessislocatedontheoutskirtsofthe3miletarget area,whichshouldhelpreducecompetitiveinfluence. AdvertisingandPromotionalPlan OpeningDay Date:January5,20XX Justification:Thefitnessindustryexperiencesseasonalityeffectslikeanyother business.ThepeakseasonoccursafterNewYears.Duringtheprecedingmonths, peopletendtoforgetabouttheirhealthandfitnessandfocusonfamily,food,and Address:2450ScottBoulevard,Suite302,SantaClara,CA95050

21

alcohol.Theypromisethemselvestheywillmakeupfortheirindulgencesstarting aftertheNewYear,whichexplainsthespikeinmembershipsduringthefollowing quarter.Theintentionistotakeadvantageofthisnewfoundinterestinhealthand fitnessbyofferingthemavaluedsolution. DirectMail Sixweekspriortolaunch,adirectmailcampaigntargetingnearbyneighborhoods willlaunch.Thiscampaignspurposeistoincreaseawarenessamongthemost geographicallyrelevantpopulation.Itwillalsoinvitethemtoagrandopeningevent slatedforJanuary5thofthefollowingyear.Sincetheylivewithinthetargetradiusof 3.0miles,thegymwillbeconvenientgoingtoorfromhome.Accordingtothe2000 census,SantaClarahasapopulationdensityof1,306peoplepersquaremile.This worksouttoapproximately9,200peoplewithinthetargetarea.Thecostis estimatedat$.70perpiece. Cost:$6,450 OpeningDayEvent OnJanuary5thoftheNewYearanOpeningDaypartywillkickoffthenewbusiness andwelcomeinterestedpatrons.Theeventwillhavepromotionalitems(tshirts, waterbottles,stressballs,etc.),acatered,healthconsciousmenu,inadditionto healthierdrinkoptions(shakes,vitaminwater,tea,etc.)andalcoholicbeverages (vodkaandwine).Thiseventwillbetheinitialattempttoreachouttothe communityandestablishanidentity.Sincethisgymwillsetitselfapartbycustomer

22

serviceandformingconnections,aneventwherepeoplearefedandofferedfree itemswillservetoendearthegymintheheartsandmindsoftheconsumer. Cateringanddecorations:$500 PromotionalItems:$1,000 Partnerships Figure3 KaiserPermanenteMedicalCenter: Employsapproximately5,000 people(500Doctorsand4,500 staff) Servesover289,000members Hasanestablishedphysicalrehab clinic Kaiserisanattractivepartnerasthereisanaturalalignmentbetweenthe HealthcareindustryandtheHealthandFitnessIndustry.Doctorsfrequently mentionthebenefitsofexerciseandifanestablishedrelationshipexistsbetween thegymandthehospital,Doctorsandstaffcouldeasilyreferpatients.Additionally, thehospitalhasanextensivephysicalrehabilitationclinic.However,insuranceonly coverssomuchandpatientswilleventuallyneedtocontinuetheirtreatmenton theirown.Again,oncearelationshipisestablishedwiththehospital,gymreferrals wouldseemlikeanaturalextensiontophysicalrehab.

23

Figure4 AgilentTechnologies Theheadquartersislessthan halfamilefromthesitelocation HQhas3,700employees Peoplewithdeskjobsareless likelytogetphysicalexercise Locatedjusthalfamilefromthedesignatedlocation,AgilentTechnologiesisamajor businessintheimmediatearea.Thehighconcentrationofsedentaryworkersmakes foranefficientpromotionaloutlet.Althoughsomecorporationshaveonsite exercisefacilitiestherearemanyindividualswhoprefertoworkoutoffsite becausetheydonotfeelcomfortableexercisinginfrontofcoworkers. CupertinoSquareMall 34stores 20restaurants MovieTheatre IceSkatingRink BowlingAlley CupertinoSquareisamajorcenterforcommerceandattractsthousandsofpeople everyday.Thisconstantflowofpatronsandworkerswillnaturallyspilloverinto thesurroundingareacreatingawarenessthroughforcedexposure(trafficroutes Figure5

24

willfunnelpeoplepastthelocation).Inaddition,themallwillhousenumerous healthinspiredstores(GNC,JambaJuice,etc.)whichwouldbegreatplacesfor partnershipandpromotions.Thereisshareddemographicbutthebusinesses wouldnotcompetefordisposableincomeduetoostensiblydifferentproduct offerings. Cost:$500 Sponsorships Teams:Althoughnotincrediblyunique,sponsorship ofateam(littleleague,soccer,adultsoftball,etc.)isa greatwaytoconnectwiththecommunity.The sponsorshipoftwoteams,onelittleleagueandone adultsoftballteam,wouldcoverthespectrum betweenthosewhoaremarriedwithchildrenand thosewhoaresingle.Furthermore,thedualsponsorshipwillhopefullyhave synergiesandwillbesoldasasortofbig/littlebrotherconcept.Thiscouldalsobe achievedthroughthesponsorshipofthelocalhighschoolteam.Wherethereare kids,thereareparents.Wherethereareparents,thereareusuallyoutofshape people. Cost:$1,000perteam Figure6

25

Competitions Healthrelatedcompetitionssuchascyclingevents,CrossFitcompetitions, marathons,etc.haveashareddemographicgivingthegymaccesstoqualified customers.Competitionsareagreatwaytoreachthefitnessenthusiastsegmentof themarket.Althoughthissegmentisnotthetargeteddemographic,itwouldbe unwisetoexcludethem.Itisbeneficialforagymtohavemembersofvaryingfitness levels. Cost:$2,000peryear PhilanthropicEvents Anyevent(ex.SusanGKomenRacefor theCure)thatdonatesproceedsto philanthropiccausesisanotherwayto givebacktothecommunitywhile creatingawarenessforthegym(and brand).Sponsorshipisoneformofexposure,butparticipationisanother.Enteringa teamofpeoplewhoallwearbrandedtshirtswillcreateinterestamongothers participatingintheevent.Whenpeopleinagroupareallwearingthesameshirt andwalkingtogetheritcreatesmoreattentionthanoneindividualoranonunified group. Cost:$3,000peryear Figure7

26

 Signage
Sponsorship Teams Competitions PhilanthropicEvents Total

Table3
Cost $1,000 $2,000 $3,000 $6,000

Withoutadoubt,signagewillbethemainsourceofadvertisingasthebusinessgets offtheground.Accordingtoagymowner,over80%oftheirclientelefindoutabout thegymbypassingbyit.Thismeansthatsignagewillneedtobeattractive, prominent,andabletobeseenandreadfrommultipleanglestoaccommodate multipledirectionsoftraffic.Twoquoteswereusedtoestimatethecostsassociated withsignage.Thenumbersfromthequoteswerenotusedexplicitly,butinstead wereslightlyalteredtoaccommodateforvaryingpricingdependingonthevendor (Pleaseseeexhibit3fordetailedpricequotes). Cost:$5,000(Thiscostwillbeabsorbedintotheinitialremodelingcosts)

27

OperationalPlan
Production/Service Aspreviouslyindicated,customerservicemustbesupreme.Specialattentionwillbe paidtogettingtoknoweachnewmember.Thispersonalattentionwillallowmeto gettoknowmyinitialmembersandtheirrespectivewantsandneeds.AsIrefinemy understandingoftheclienteleIwillbeabletohirestaffinlinewiththeirwants. Tobegin,Iwillbethesoleemployeetominimizepayrollcostsandwillbethe unofficialspokesmanofthefitnesscenter.However,atrainerwillbeemployedon atemporarybasistoaccommodatetheinitialclientelesneeds.Forthefirstyear,I willpaymyselfasalaryof$40,000.Staffingwillberampedupcommensurately withthedemand.Withinthreemonthsanexperiencedtrainerandclassleaderwill bebroughtoninafulltimecapacity. Apossiblesolutiontothestaffingissuecouldbetheuseofinterns.Thesurrounding areahastwouniversities,SanJoseStateUniversityandSantaClaraUniversity,anda slewofhighschools.BothuniversitiesofferdegreesinKinesiologymakingthem goodpoolsforpersonaltraininginterns.Thelocalhighschoolscouldbefarmedfor studentswhowantvolunteeropportunitieslikeawalkathonorhelpingwithalittle leaguesponsorship.

28

Onceaquarter,membershipdemandforproductsandserviceswillbeaddressed. Informalsurveyswillhelpflushoutinterestinvariousclassesandexerciseroutines. Thegoalwillbetokeepthepatronsengagedandentertained,realizingbetter fitnessresults,andconsequentlyrenewedmemberships.Thoseclientswhoarenot stimulatedwillgetboredandloseinterest.Asinterestwanes,itwillbemore difficultforthemtoachievetheirfitnessgoals.Iftheydonotseeprogress,theywill notcomeback. Inordertostayontopofcurrenttrendswithintheindustryeitheranemployed trainer,ormyself,willgototradeshows.Theinformationgatheredattheseshows willhelptokeepthegympositionedasaknowledgeableestablishment.This positioningwillhelpgivecredibilitytothebusinessamongstmembers/consumers andwithintheindustry. Location ThefitnesscenterwillbelocatedinSantaClara,California.Locationrequirements arelistedbelow. Physicalrequirements Amountofspace5,000ft2(+/1,000ft2) TypeofbuildingWarehouseorbuildingwithalargecontiguousspace (min3,000ft2)

29

ZoningCommercialorMixedResidentialCommercial PowerandotherutilitiesWiredforupto220watts.Spacingand infrastructureforfiveshowers.

Access Thelocationshouldbeonamainroadwithincloseproximitytoahighlyfrequented area(grocerystore,corporatecampuses,schools,etc.).Ifthelocationiswithina stripmallorwithashoppingcenter,thereneedstobeeasyaccessfromthegymtoa mainroadandampleparkingsothememberscangetinandoutquickly. Additionally,thelocationmustbevisiblefromtheroad,especiallybypassing drivers.Lineofsiteisakeyaspectinbusinesscommunicationandadvertising. Peoplehaveahardtimefindingwhattheycannotsee.Also,thegymwillaccountfor thoseindividualswhowishtobiketothelocationbyprovidingcoveredbikeracks. Overall: HoursofOperation 24/7:Althoughbeingopenalldayeverydaymayseemlikeadrainonresourcesit mustbeweighedagainstthevalueaddedtothecustomer.Manyconsumersexpecta fitnessfacilitythattheyhaveaccesstotwentyfourhoursaday,sevendaysaweek. Onmainroad AmpleParking Securityforbikers Visibilityfromroad

30

Thisisespeciallyrelevantformemberswhodonothaveastandard9amto5pm typeofjob.Forinstance,thetargetedmemberswhoworkatthehospitalormall willmostlikelyhaveatypicalhoursofemployment.Anursemaygetoffofworkat 2amanddecidethatisheronlychancetogetsomeexercise.Thegymwillneedtobe opentoaccommodateher. However,toreducemanhourcostsasecuritysystemwillbeinstalledtoallowfor twentyfouraccess.Thesystem,whichincludestwelvesecuritycameras,fourDVRs tostorethesecurityfootage,andkeyFOBentry,willbepartoftheinitial constructioncosts. ConstructionandDecoratingCosts Beforeasinglemembercanjointhegym,thelocationwillneedtoberenovatedand overhauledinordertoconveytherightimpressioninadditiontohavingthe necessaryfacilitiesdesiredbygymmembers. GeneralBuildOut:Thisincludesmuchofthebasicconstructionincluding installationoffiveindividualbathrooms(shower,sink,toilet,vanity,tile,drainage, etc.),removalofanynonloadbearingwalls,paint,doors,andairconditioning.Also, manymirrorsandwindowswillbeaddedtoincreaselighting. Flooring:Thechosenflooringcosts$4/sqft(midlevel),andisstandardindustrial rubberflooring.Thistypeofflooringisrequiredduetothehighamountoffoot

31

trafficinadditiontoconstantpressureandforceappliedbyrestingweightorwhen theweightsaredropped.Othertypesofflooring(tile,wood,concrete,etc.)donot havethedurabilitytohandlethedailystressesofagym. Security:Aspreviouslymentionedthesecuritysystemwillincludetwelvecameras, DVRsforsecurityfootagestorage,keyFOBaccess(whichincludesthekeyFOBsin additiontothelockingmechanismsthatwillneedtobeinstalledonallthedoors. Also,eachdoorwillhaveapeoplecounterwhichmonitorsifanyunauthorized person(s)accessthegymthroughdrafting(whenamemberswipesinandbefore thedoorrelocksanonmemberenters)(exhibit4). Fans:Althoughthegeneralbuildoutincludesairconditioning,havingfansreduces theoverallenergyexpenditureofagym.AccordingtoBigAssFans,Inc.itsfanscan reduceneededenergyoutputbyanaverageof30%peryear.Thisisaccomplished byitsleadingdesignandgiantsize(upto24ftindiameter).Fanshelptocirculate thewarm/coldairthatisproducedbytheHVACsystemthusreducingtheamount oftimetheHVACsystemneedstoberunning.ThelesstheHVACsystemison,the moremoneythegymwillsave.Inadditiontoalargecentralfan,foursmallerfans (23ftindiameter)willbestrategicallyplacedonthefloortoallowmembersaquick blastofcoldair. Signage:seeAdvertisingandPromotionalPlan

32

Art/DesignElements:Althoughartworkwithinagymmayseemlikeanirrelevant consideration,inthisgymitwillserveasamajorsourceofdifferentiation.Many gymstendtolookthesame,andtherearefewthingsthatdifferentiateonegym fromanotherinthemindoftheconsumer.Productoffering,price,customerservice, anddesignaremajorpointsofdifferentiation.Byofferingauniqueambianceand aestheticitwillhelpcreateandsolidifyabrandidentitywithinthemindsof consumers. Thegymwillhaveamodernaesthetic.ExamplescanbeseenbelowinFigure8and 9.Keydesignelementsarestraight/cleanlines,copiousamountsofwindowsto increasenaturallight,strategicallyplacedcolorstoavoidfeelingtoosterile,anda relatively openfloor plan.The openspaceis
Figure8 Figure9

especially

importantbecausepeopledislikefeelingcrowdedinanysituationespeciallywhen anindividualissweaty,tired,andcarryingheavyobjects.Theallottedfundsare meanttocoverfoyerfurniture,lighting,andartwork(exhibit5). OfficeFurniture:Abasicbutnecessarystartupexpenseisestablishinganoffice. Thisofficewillfunctionasthebusinesscenterforthegymandwillbeusedtotalkto currentandprospectivemembers.Asaresult,theofficewillneedtofeelinvitingyet

33

professional.Thismeansthatanappropriatesizeddesk,officechair,couch,lamps, filingcabinets,andatablewillneedtobepurchased.Thebudgetallocationis slightlyinflatedtomakesureenoughfinancingissecured(exhibit6). ComputerEquipment:Midlevelcomputerequipment willbepurchased.Topofthelineequipmentisnot neededtorunpaymentprocessingprograms, databasemanagementsystemsorthesecurity software.However,awellroundedcomputersystem

Item Computer Monitor Printer Scanner Fax Misc. Total

Table4
Cost $1,800 $600 $300 $200 $200 $900 $4,000

(andperipherals)willbeneededtocoverthevaryingdemandsofasmallbusiness. Theprinterandscannerwillneedtodoubleasacopymachine,andasizable miscellaneousfundwillbeusedtocoverpaper,toner,generalofficesupplies(pens, notebooks,stickynotes,etc.),flashdrives,DVDs,etc. Electronics:Inordertohelpestablishadifferentiatedambiance,highgrade electronicswillbeused.FourLCDTelevisions,aBosestereosystem,andafourline businessphoneinconjunctionwiththedesignandartworkwillcompletethelook andfeelofthegym. Miscellaneous:Thisbudgetallocation(roughly8%ofthetotalremodelingandstart upcosts)willcoveranyunforeseencostsassociatedwiththeremodel.Forexample, permitsandlicensingnotcoveredbythegeneralbuildoutfundwouldbetaken fromthemisc.fund.Forotherpricequotespleaseseeexhibits712.

34


Renovation GeneralBuildOut Flooring Security Fans Signage Art/DesignElements OfficeFurniture ComputerEquipment Electronics Equipment Misc. Total Amount $40/60sqft 5000sqft 12cameras,4DVRs,KeyFOBs 1large,4small InsideandOutside LightingandArtwork Chair,desk,lamps Computer,server,printer,scanner,fax TVs,StereoEquipment,phone,etc CardioMachines,Freeweights,etc.

Table5
Cost $25,000 $20,000 $15,000 $4,000 $5,000 $7,000 $5,000 $4,000 $7,000 100,000 $10,000 $207,000

OperatingCosts SalariesandWages:Iwillbethesoleemployeeforthefirstyearpayingmyself $3,334permonthor$40,000annually.Thisistoreduceoverheadasmuchas possibleduringthefirstyearofoperationandtolowerthebreakevenpoint. Rent:Byfarthebiggestexpenseat$8,750permonthor$105,000annually.Thiswill varydependingontheexactlocationbuttheestimateisbasedonthesquarefootage commercialleasepriceforthecity($21/sqft). Utilities:HVACcostswillrunabout$1,000/month(dependingontheseason).This estimateisderivedfromcurrentSantaClaraCountyenergyrates(~$0.20/kWh). Phone,cable,water,sewage,andacleaningservicewillcost~$500/month. InsuranceandSupplies:Roundingoutthemonthlyexpensesareinsurance estimatedat$250/month(quotedfromanagent)andsupplies(cleaningwipes,

35

towels,paper,pens,etc.)at$75/month.Asummaryofexpensescanbeseenbelow inTable6.
Expense SalariesandWages Rent Utilities Insurance Depreciation Supplies Interest Advertising Total MonthlyCost $3,334 $8,750 $1,500 $250 $834 $75 $1,000 $500 $16,242

Table6
AnnualCost $40,000 $105,000 $18,000 $3,000 $10,000 $900

$12,000 $6,000
$194,900

FinancialForecast Demand:
Table 7

Month JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL 20 15 15 10 25 35 40 45 45 405 Demand 75 45 35

Thesedemandestimatesarebasedoninterviewswithcurrentgymownersin conjunctionwithaveragemonthlynationaldemandcompiledbyIHRSA.These figuresarepreliminaryestimatesandwillbeadjustedashistoricaldatabecomes available.

36

Projected Income Statement

Revenue Gross sales Amount $291,600 $291,600 Amount $40,000 $0 $6,000 $0 $46,000

December 31st, 20xx

Year to Date % of Sales

Less sales returns and allowances

Net sales Operating Expenses 100% Year to Date % of Sales 14% 0% 2% 0% 16% 0% $3,000 $105,000 $18,000 $10,000 $900 1% 36% 6% 3% 0% 0% 0% 0% $12,000 $148,900 $194,900 $96,700 $24,175 $72,525 4% 0% 51% 67% 33% 8% 25% 0% 0% $72,525 25%

Salaries and wages Commissions Advertising Depreciation Total selling expenses Salaries and wages Insurance Rent Utilities Depreciation and amortization Office supplies Travel and entertainment Postage Equipment maintenance and rental Interest Furniture and equipment Total General/Administrative expenses Total operating expenses Net income before taxes Taxes on income Net income after taxes Extraordinary gain or loss Income tax on extraordinary gain Net Income (Loss)

Basedonthesedemandestimatesthegymwouldbescheduledtoearn$291,600 (Table7)initsfirstyearwithabreakevenpointofapproximately9months(a monthbymonthforecastcanbefoundinexhibit13).Netincomeisforecastedat $72,500forthefirstyear,an18%ROI.Inordertoforecastfirstyearsales,an

37

averageannualmembershipfeeof$60wasassumed.Atthisratethereisabreak evenof271memberships,whichisapproximately67%oftheforecasteddemand. Putanotherway,inorderforthegymtobreakevenitwillhavetocapturelessthan 1%oftheactivemarketinSantaClara. Animportantinsightfromtheprojectedincomestatementisthatduetothe demandcurvethemiddleoftheyearbecomesbarren.Specialconsiderationwill needtobepaidtocashflowduringthemonthsofAprilJulywhenthecompanyis losingapproximately$10,000permonth.Promotionsmaybeneededinadditionto clevermarketinginordertodriveupdemand. Betweeninitialstartupcostsandfirstyearexpensesthetotalcapitalneededfor launchis~$400,000.$150,000ofthisfundingwillcomefromequitywhilethe remainingrequiredcapital,$250,000,isneededfromalendinginstitution.The interestexpenselistedintheincomestatementusesaninterestrateof6%. Dependingonthedemand,theinitialinvestmentcouldbepaidbackin35years.

38

Exhibit1 BodyBuggPersonalCalorieManagementSystem

Source:GoogleImages

39

Exhibit1cont. WiiFit

Source:GoogleImages

40

Exhibit2 MintelSurveyResults
Interestinexercising,bygender,February2010

Idontenjoyworkingout,butIdoitbecauseI knowitsgoodforme Exerciseisanimportantpartofmylife Exercisingmakesmehappy IexercisesoIcanindulgeinmyfavoritefoods, smoking,andotherlesshealthyactivities Noneoftheabove

All 1488 % 42 41 34 15 9

Male 724 % 36 45 37 16 8

Female 764 % 48 38 32 14 10

Source:Mintel

% Idontenjoy workingout, butIdoit becauseIknow itsgoodforme Exerciseisan importantpart ofmylife Exercising makesme happy IexercisesoI canindulgein myfavorite foods,smoking, andotherless healthy activities Noneofthe above TotalSurveys Source:Mintel All 42 Interestinexercising,byage,February2010 1824 2534 3544 4554 38 38 40 44 5564 49 65+ 45

42 34 15

41 51 32

39 41 21

40 37 17

43 31 15

44 23 8

43 22 5

9 1488

4 209

15 241

296

277

268

197

41

Exhibit3

42

Exhibit3cont.

43

Exhibit4

44

Exhibit4cont.

45

Exhibit4cont.

46

Exhibit5

47

Exhibit6

48

Exhibit7

49I

Exhibit8

50

Exhibit9

51

Exhibit10

52

Exhibit11

53

Exhibit12

54

Exhibit13

55

Exhibit13cont.

56

Exhibit13cont.

57

Exhibit13cont.

58

Bibliography
About.(n.d.).RetrievedOctober29,2010,fromSnapFitness: http://www.snapfitness.com/santaclara/club Aboutourmedicalcenter.(n.d.).RetrievedOctober23,2010,fromKaiser PermanenteMedicalCenterSantaClara: http://mydoctor.kaiserpermanente.org/ncal/facilities/region/santaclara/area_mas ter/about_us/ California(2009).(n.d.).RetrievedOctober13,2010,fromAmerica'sHealth Rankings: http://www.americashealthrankings.org/yearcompare/2008/2009/CA.aspx CommercialRealEstateSantaClaraCounty.(n.d.).RetrievedOctober13,2010, fromLoopnet:http://www.loopnet.com/California/SantaClaraCounty CommercialRealEstate/ CompanyHistory.(n.d.).RetrievedSeptember30,2010,fromAgilentTechnologies: http://www.agilent.com/about/companyinfo/history/index.html?cmpid=4491 CorporateWellnessStats.(2010).RetrievedSeptember28,2010,fromSmartsand Stamina:http://www.smartsandstamina.com/CorporateHealthWellnessStats.asp

59

ExerciseorPhysicalActivity.(2010,October22).RetrievedNovember2,2010,from CentersforDiseaseControlandPrevention: http://www.cdc.gov/nchs/fastats/exercise.htm HealthandFitnessClubsUSJune2009.(n.d.).RetrievedSeptember29,2010,from Mintel:Oxygen: http://academic.mintel.com.ezproxy.lib.utexas.edu/sinatra/oxygen_academic/searc h_results/show&/display/id=395109/display/id=466180#hit1 HooversFitnessCentersIndustryOveriew.(2010).RetrievedSeptember18,2010, fromHoovers:http://www.hoovers.com/industry/fitnesscenters/14481.html HowTheyWork.(n.d.).RetrievedOctober18,2010,fromBigAssFans: http://www.bigassfans.com/how_do_they_work#media/445 IHRSA.(2010).RetrievedOctober22,2010,from2009IndustryStatistics: http://www.ihrsa.org/memberonlyupdates/2010/11/10/clubfacilities.html Langford,G.(2010,September11).Owner,AnytimeFitness.(A.Dapprich, Interviewer) MintelExerciseTrendsUSJune2010.(2010,June).RetrievedSeptember28, 2010,fromMintel:

60

http://academic.mintel.com.ezproxy.lib.utexas.edu/sinatra/oxygen_academic//disp lay/&id=482665/display/id=528605/display/id=528580 Morgan,K.(2007).HealthCareStateRankings2007:HealthCareinthe50United States.Lawrence,KS:MorganQuitnoCorp.(CommercialPublishers). Owen,D.(2006,April3).TheNewYorker:Printables.TheNewYorker. SantaClaraCalifornia.(n.d.).RetrievedOctober13,2010,fromCityData.com: http://www.citydata.com/city/SantaClaraCalifornia.html Stenson,J.(2007,February6).Isyourjobmakingyoufat?RetrievedSeptember30, 2010,frommsnbc.com:http://www.msnbc.msn.com/id/16927021/ns/health fitness Wakefield,K.(2007).TeamSportsMarketing.Oxford,JordanHill,UK:Elsevier.

61