Martial Arts School Business Plan

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Table of Contents
1.0 Executive Summary.....................................................................................................................1

Chart: Highlights...........................................................................................................................2
1.1 Objectives....................................................................................................................................2
1.2 Mission...........................................................................................................................................3
1.3 Keys to Success.........................................................................................................................3
2.0 Company Summary......................................................................................................................3
2.1 Company Ownership................................................................................................................4
2.1.1 Fulfillment............................................................................................................................4
2.2 Start-up Summary....................................................................................................................5
Table: Start-up Funding.............................................................................................................5
Table: Start-up..............................................................................................................................6
Chart: Start-up..............................................................................................................................7
2.3 Company Location....................................................................................................................7
3.0 Services.............................................................................................................................................7
3.1 Tiny Tots Taekwondo Program............................................................................................8
3.2 Basic Program.............................................................................................................................8
3.3 Black Belt Club Program.........................................................................................................9
3.4 Master Club Program...............................................................................................................9
3.5 Belts And Rank...........................................................................................................................9
4.0 Market Analysis Summary.......................................................................................................11
4.1 Market Segmentation............................................................................................................12
Table: Market Analysis..............................................................................................................13
Chart: Market Analysis (Pie)...................................................................................................13
4.2 Target Market Segment Strategy.....................................................................................13
4.2.1 Market Needs....................................................................................................................14
4.2.2 Market Trends...................................................................................................................14
4.2.3 Market Growth..................................................................................................................15
4.3 Service Business Analysis....................................................................................................15
4.3.1 Competition and Buying Patterns.............................................................................16
4.3.2 Competing Martial Arts School's and Health Clubs............................................16
5.0 Strategy and Implementation Summary...........................................................................16
5.1 Competitive Strengths and Weaknesses.......................................................................17
5.2 Marketing Strategy.................................................................................................................17
5.2.1 Positioning Statement...................................................................................................19
5.2.2 Pricing Strategy...............................................................................................................19
5.2.3 Promotion Strategy........................................................................................................19
5.2.4 Marketing Programs.......................................................................................................20
5.2.5 Strategic Alliances..........................................................................................................20
5.3 Sales Strategy..........................................................................................................................20
5.3.1 Sales Forecast..................................................................................................................21
Table: Sales Forecast............................................................................................................21
Chart: Sales Monthly.............................................................................................................22
Chart: Sales by Year..............................................................................................................22
5.4 Milestones..................................................................................................................................22
Page 1
Table of Contents
Table: Milestones........................................................................................................................23
Chart: Milestones........................................................................................................................24
6.0 Management Summary.............................................................................................................24
6.1 Personnel Plan..........................................................................................................................24
Table: Personnel..........................................................................................................................25
7.0 Financial Plan................................................................................................................................26
7.1 Important Assumptions........................................................................................................26
Table: General Assumptions...................................................................................................26
7.2 Break-even Analysis...............................................................................................................27
Chart: Break-even Analysis....................................................................................................27
Table: Break-even Analysis....................................................................................................27
7.3 Projected Profit and Loss.....................................................................................................27
Chart: Profit Monthly.................................................................................................................28
Chart: Profit Yearly.....................................................................................................................28
Chart: Gross Margin Monthly.................................................................................................29
Chart: Gross Margin Yearly.....................................................................................................29
Table: Profit and Loss................................................................................................................29
7.4 Projected Cash Flow...............................................................................................................31
7.4 Projected Cash Flow...............................................................................................................31
Table: Cash Flow.........................................................................................................................31
Chart: Cash...................................................................................................................................32
7.5 Projected Balance Sheet......................................................................................................33
Table: Balance Sheet.................................................................................................................33
7.6 Business Ratios........................................................................................................................34
Table: Ratios.................................................................................................................................34
Table: Sales Forecast..........................................................................................................................1
Table: Personnel....................................................................................................................................2
Table: Personnel....................................................................................................................................2
Table: General Assumptions.............................................................................................................3
Table: General Assumptions.............................................................................................................3
Table: Profit and Loss..........................................................................................................................4
Table: Profit and Loss..........................................................................................................................4
Table: Cash Flow...................................................................................................................................6
Table: Cash Flow...................................................................................................................................6
Table: Balance Sheet...........................................................................................................................8
Table: Balance Sheet...........................................................................................................................8
Page 2
Cents and Senseibility Martial Arts School
1.0 Executive Summary
The Can-Am Taekwondo Instructors and Schools Confederation has been active in the United
States for the past 30 years. Being part of this organization will benefit Cents and Senseibility
Martial Arts School owned and operated by Rolly BonTemps, 5th Degree Black Belt.
The Can-Am Taekwondo Instructors and Schools Confederation (CATISC) is the premier North
American organization dedicated to the martial arts discipline of taekwondo, and is the founding
organization of other international affiliates, overseeing over 1,500 schools and
clubs, registering over 300,000 members.
The focus of this program is to provide students the highest quality martial arts instruction
available, in a safe and positive learning environment that people of all ages can enjoy. Rolly
BonTemps, a high ranking instructor, will combine excellent student instructor ratios with state
of the art training facilities. Instructor Rolly BonTemps, is a graduate of an instructor program
that represents more than thirty years of research and development. He will be with students
every step of the way to help them reach their individual goals (and maybe even reach some
new goals they've never before thought possible).
Cents and Senseibility will be value-priced taekwondo martial arts school serving its customers
in our community by providing several programs for a variety of purposes, ranging from basic
martial arts, to self defense, to esteem and life skills building, and more. Cents and Senseibility
Martial Arts School plans to enhance its programs as it expands, developing new programs to
ensure the students have as much access to the different aspects of Songahm Taekwondo as
possible.
The art of self defense is becoming more and more popular with the young people of this
country as the terrorist threats to this country have become reality. Cents and Senseibility
Martial Arts School will also offer self-defense techniques to local Law Enforcement in the area.
Cents and Senseibility will offer what we believe is the best martial art in the world.
Taekwondo is an exciting and powerful martial art known for its dynamic kicking and hand
techniques. Although these martial art techniques are centuries old, the planned programs
being offered are always evolving to keep pace with the rapidly changing world.
Cents and Senseibility Martial Arts School realizes that each student possesses different
physical abilities. Size and strength vary with each individual. Once a student has acquired a
strong foundation in the basics, Rolly BonTemps' outlined program will enhance the
student's physical capabilities and maximize his/her self-defense skills.
Cents and Senseibility Martial Arts School, is not interested in just teaching self-defense. Rolly
BonTemps, as a certified instructor remains interested in the complete personal development of
each student. Individual attention is a feature of each and every class, allowing all students to
progress quickly and confidently toward their personal goals. Rolly BonTemps takes his
responsibility as a role model for younger students seriously, teaching them the importance of
strong character, leadership and good values.
The teaching curriculum at the Cents and Senseibility Martial Arts School is based on two
concepts: "positive mental attitude" and "high goal setting." Rolly BonTemps is so positive
about this program that he promises to give students and their families the most professional,
well supervised, and highest quality classes available in any sport or art.
Page 1
Future plans call for Cents and Senseibility to expand into Cardio Kick Boxing Classes for the
young adults. Pilates (fitness exercise) Classes will also be offered to young and older adults.
Enrollment for the Cents and Senseibility Martial Arts School is projected at 120-125 students
as the break-even point for profitability. Under the value-priced structure being planned, based
on past experience in marketing and selling the different plans, Cents and Senseibility Martial
Arts School is projecting 100-120 student enrollments within the first 6-8 months after
opening. Student enrollment in the Cardio Kick Boxing classes is projected at 45-50, and the
Pilates Exercising Classes are projected at 30-45 enrollments within the first six months after
opening.
Our financial plan is based on reaching our target sales goals while maintaining a reasonable
cost base. We plan to reach break-even sales volume in only four months after our opening
and maintain a healthy 30+% bottom line profitability. If we reach our financial goals, we plan
to acquire a stand-alone building for the Cents and Senseibility Martial Arts School, which may
better suit our growing needs.
Chart: Highlights
1.1 Objectives
1. Identify an area within the community that is centrally located to local Elementary, Middle
and High Schools by mid-summer 2003.
2. Enter into lease agreement for 2,500-3,000 square foot (minimum) premises to establish
Cents and Senseibility Martial Arts School. This area will include store front and visitor
seating area, dressing/rest rooms for male and female students.
3. Actively recruit membership. The marketing plan to be adopted has been extremely
successful at other taekwondo schools across the country. The success of this plan depends
Page 2
upon arranging with school administrations to visit local classrooms, especially at the
Elementary School Level and provide a show and tell. Here it is demonstrated to the
children what the martial art can teach them. Concentrating on discipline, self respect and
self control, Rolly BonTemps works with the children for approximately one hour in the
classroom setting. The success of this program over the past four years has been
remarkable. As a result of this marketing plan, the membership for Cents and Senseibility
Martial Arts School is expected to grow by 8-10 children a week. The martial arts school,
in which Rolly BonTemps is currently employed as lead instructor, has the highest
membership for a single CATISC member Taekwondo school in the country. This was
largely due to this marketing plan, which Cents and Senseibility will be following.
4. Cents and Senseibility Martial Arts School will actively seek out membership by marketing
and handing out fliers, business cards, and advertisements at the local shopping centers,
malls, and grocery stores in the area. This is expected to generate 8-10 members a week.
5. Cents and Senseibility Martial Arts School will offer Cardio Kick Boxing Classes for both the
young and older adults. This will actively be marketed through handing out fliers, business
cards, and advertisements. This is expected to generate 10-15 members for each of the
first three months. Maintaining a class of 45-50 students by end of year one.
6. Cents and Senseibility will offer Pilates Classes for young and older adults. Pilates is an
aerobic exercise through stretching that is sweeping the country. The plan is to have a
certified instructor by month one. Classes are expected to be enrolled at 10-15 members
for each of the first three months. Maintaining a class of 45-50 students by the end of the
first year.
7. Cents and Senseibility plans to increase paid membership to 180-200 by the end of the first
year (equivalent to 80% of school capacity).
8. Develop a cash flow that allows for an investment build-up to support expansion, with plans
to construct and own a stand-alone structure to support the functions of the Cents and
Senseibility Martial Arts School in the future.
1.2 Mission
To offer students the best in martial arts training, physically and mentally, Cents and
Senseibility Martial Arts School will be established to provide a place where one can learn the
art of Taekwondo and enjoy the experience while making the commitment to learn and improve
one's self esteem, concentration, discipline and self control. As students advance in rank from
white to black belt they will gain the knowledge and experience that will last a lifetime.
1.3 Keys to Success
Implement a solid budget and business plan.

Establish a unique, modern, safe and clean martial arts school and environment.
Focus on a good marketing plan to actively recruit students.
Keep the students and family members happy and part of the Cents and Senseibility family.
Plan on expanding to multiple locations.
2.0 Company Summary
Cents and Senseibility Martial Arts School is associated with the Can-Am Taekwondo Instructors
and Schools Confederation, a nationally recognized martial arts organization with over 1,500
Page 3
active member schools across the United States. CATISC is one of the most successful martial
arts organizations in the world.
Cents and Senseibility will serve a large community area. It will offer group and individual
classes in the art of Taekwondo and self defense. Classes will also be provided in Cardio Kick
Boxing and Pilates exercising. As Cents and Senseibility grows, future plans include to expand
and accommodate a health club exercise gym to be offered for parents to enjoy while the
children are in classes.
The initial Cents and Senseibility Martial Arts School store front will be located on a major street
within a shopping center, with ample parking.
2.1 Company Ownership
Cents and Senseibility Martial Arts School will be operated as a sole proprietorship by owner
Rolly BonTemps, Fifth Degree Black Belt. All proceeds from membership, programs,
tournaments, merchandise and other school activities are that of the owner.
Cents and Senseibility will be affiliated with the Can-Am Taekwondo Instructors and Schools
Confederation. Cents and Senseibility Martial Arts School will be obligated to pay the Can-Am
Taekwondo Instructors and Schools Confederation approximately 15% of all testing fees. All
other income will be that of the owner.
2.1.1 Fulfillment
Trained black belt instructors are the #1 resource. These instructors are well versed in the
training of Taekwondo and are selected based upon their knowledge and ability to work with
students. Instructors are not paid, rather they are members of the inner circle of the do-jahng,
a club of top students. Instructors are given free membership and access to the do-jahng and
receive payment for private lessons they perform on a contract basis. Instructor materials
(i.e., belts, weapons) are provided free for their participation in training of students.
As the Cents and Senseibility Martial Arts School opens its doors, it will be actively seeking
members with experience in the martial art of Songahm Taekwondo. Often times students are
moving into the area and are looking for the nearest Can-Am Taekwondo Instructors and
Schools Confederation affiliated school.
In the eventuality that no experienced instructors are available, the CATISC has several schools
in nearby cities that could make instructors available should the owner become injured or
disabled.
Also, within the first year of operation, students will progress through the belt ranks to achieve
senior student status. Under the watchful eye of the instructor these students will be trained to
assist with lower rank classes and be given the opportunity to join the inner circle of instructor
ranks.
The Can-Am Taekwondo Instructors and Schools Confederation is very large and if immediate
assistance is required due to some unforeseen circumstance, the organization would assist in all
ways possible to assist the school owner.
Page 4
2.2 Start-up Summary
The start-up funding requirements are estimated below. This amount ear-marked for start-up
expenses, includes carpeting the floor, installing mirrors, restrooms and and office area, front
desk sales counter and store front sign. The remaining funds will be applied to rent of the
commercial property until profits are generated. In addition, the company will require some
initial cash reserves and additional assets. The start-up costs are to be financed by the equity
contributions of the owner, Rolly BonTemps, and his parents, as well as by a three-year
commercial loan. These start-up expenses and funding requirements are summarized in the
tables below.
The initial start-up for Cents and Senseibility will be relatively inexpensive. Martial arts schools
do not require a substantial buildout to open their doors with a large overhead. The insurance
needed to operate the Cents and Senseibility Martial Arts School will be offered by the Can-Am
Taekwondo Instructors and Schools Confederation. The school will open with a one million
dollar liability policy being offered.
CATISC will also provide the Cents and Senseibility Martial Arts School with a school number to
open under the Can-Am Taekwondo Instructors and Schools Confederation organizational
umbrella. All other required licenses to own and operate a small business will be obtained
through the local community in which the do-jahng is located.
CATISC offers future martial arts school owners with a Business Clinic, outlining all the
requirements needed to open a successful Taekwondo school.
Table: Start-up Funding
Start-up Funding
Start-up Expenses to Fund $36,000
Start-up Assets to Fund $59,000
Total Funding Required $95,000
Assets
Non-cash Assets from Start-up $15,000
Cash Requirements from Start-up $44,000
Additional Cash Raised $0
Cash Balance on Starting Date $44,000
Total Assets $59,000
Liabilities and Capital
Liabilities
Current Borrowing $0
Long-term Liabilities $60,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
Total Liabilities $60,000
Capital
Planned Investment
Rolly BonTemps $25,000
Parents $10,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $35,000
Page 5
Loss at Start-up (Start-up Expenses) ($36,000)

Total Capital ($1,000)
Total Capital and Liabilities $59,000
Total Funding $95,000
Table: Start-up
Start-up
Requirements
Start-up Expenses
Legal $800
Stationery etc. $500
Brochures $300
Consultants $0
Insurance $900
Rent $3,500
Expensed Equipment $5,000
Facility Renovations $25,000
Total Start-up Expenses $36,000
Start-up Assets
Cash Required $44,000
Start-up Inventory $5,000
Other Current Assets $0
Long-term Assets $10,000
Total Assets $59,000
Total Requirements $95,000
Page 6
Chart: Start-up
2.3 Company Location
Cents and Senseibility Martial Arts School will be located in a major shopping center. Plans are
to open a Taekwondo Center in a 3,000 square foot facility with a 1,800 square foot training
area, 300 square foot viewing area (lobby) with a receptionist desk, large men's and women's
dressing areas, showers and rest room facilities. There will be two offices, one will be used for
storage and the other for the main office.
Plans are to have the building face a major street and have considerable foot and drive-by
traffic. Parking will be available in the shopping center. The facility will be leased yearly, with
plans for constructing or purchasing an independent building in future years.
3.0 Services
Cents and Senseibility Martial Arts School provides services to improve fitness and the capacity
for self-defense, the Songahm Taekwondo is not just a physical activity. Taekwondo "is the
martial art that trains people physically and mentally." In addition to physical
fitness, Taekwondo classes promote discipline, honor, self-control, respect, courtesy,
perseverance and loyalty. Cents and Senseibility specializes in teaching ages 3-63. When
students join they will not only be improving their fitness and learning to defend
themselves, they will be embarking on a path to improve many important aspects of their lives.
And the truly wonderful thing is they get to have fun while doing it!
Here are some benefits you can expect from training in Taekwondo:
Fitness - The principles of Taekwondo techniques are based on the design of the
human body. For power the body develops the larger, powerful muscles of the torso. The
speed of the techniques comes from the fast, agile muscles of the arms and legs.
As students progress in Taekwondo, they learn to coordinate this speed and power, and
develop a concentration to focus all of their body's strength into a small, hard striking
Page 7
surface like the edge of the hand or the heel of a foot.
Self-defense - When the speed and power developed through Taekwondo is used in a self-
defense situation against the vulnerable parts of an attacker's body, the results can be
incredible. Taekwondo allows a woman to emphasize many of her natural physical
strengths, such as power in the legs, while learning a method of self-defense efficient
against a much larger opponent. Knowing they can defend themselves, the student's
confidence will grow. And confidence alone is usually enough to deter potential attackers.
Self-confidence - This does not come naturally for many people, but self-confidence can
be developed over a period of time. Through Taekwondo, as students accomplish new
goals, their confidence level increases. Taekwondo instils a sense of discipline and self
confidence that can carry over to all aspects of life.
Five individual programs for different age and skill levels are presented in the following
subtopics.
3.1 Tiny Tots Taekwondo Program
Cents and Senseibility Martial Arts School will offer Tiny Tots Taekwondo program. The 3T
program was developed specifically for preschool children ages 3 through 6. This program
offers children a strong foundation in essential character qualities such as courtesy, respect,
and discipline. In addition, the program is designed to improve children's motor skills and
enhance their ability to pay attention and follow directions. All classes are taught using the
most safe, fun, and exciting instruction methods available for this age group.
Class will be held in the early evening and on Saturday

Classes will be taught by Rolly BonTemps (5th Degree Black Belt) or experienced Certified
Black Belt Instructor.
3Ts have their own unique achievement patch and "Starbursts." Starbursts are earned with
slight modifications in recognition of the preschool age of the child. Four different
colored achievement patches are available to accommodate all the stars that can be earned by
a high achieving 3T. The rank and testing system used by the 3Ts is slightly different from
that of our regular programs. 3Ts can earn six collectable animal patches to display on the
belts as follows: Lynx for orange belt; Jaguar for yellow; Badger for camo; Bear for
green; Kestrel for purple; Falcon for blue. All six patches, as earned, can be displayed on the
child's belt.
Upon graduation from the 3T program students will be afforded the Basic, Black Belt Club, or
Masters Club Program.
3.2 Basic Program
The Basic Program is for children and adults of all ages. Under this program the student will
receive, upon membership, two times a week instruction in the basic core skills of Taekwondo.
Classes will be divided by age groups.
Classes will be held in the early and late evening and also on Saturdays.
Classes will be taught by Rolly BonTemps (5th Degree Black Belt) or experienced black belt
instructor.
Page 8
3.3 Black Belt Club Program
The Black Belt Program is for children and adults of all ages. Students in this program will
receive instructions three times weekly. This program also features free sparring, board
breaking and street self-defense. Classes will be divided according to age group and rank.
Classes will be held in the early and late evening and also on Saturdays.
instructor.
3.4 Master Club Program
The Masters Club Program is for children and adults of all ages. All students will be encouraged
to graduate into this program as they progress and experience the art of Taekwondo. This
program provides unlimited weekly instruction. This program also features free sparring, board
breaking, street self-defense and weapons training. This program offers the complete package
for Self-Defense Classes and will hold the largest portion of the Cents and Senseibility Martial
Arts School enrollment. Class instruction will be divided according to age group and rank.
Classes will be held in the early and evening hours and also on Saturdays.
instructor.
WEAPON TRAINING
Single Ssahng Jeol Bong

Double Ssahng Jeol Bong (Level I, II)
Single Bahng Mahng Ee
Double Bahng Mahng Ee (Level I, II)
Jee Pahng Ee
Jahng Bong (Level I, II)
3-Sectional Staff
Sword
Knife Throwing
SELF-DEFENSE TRAINING
Joint Manipulation (Level I, II)

Ground Fighting (Level I, II, III)
Breathing Exercises
Olympic Style Gyeoroogi
Modern Tai Chi (Level I, II, III, IV, V, VI)
PPCT Defensive Tactics
PPCT Spontaneous Knife Defense
PPCT Pressure Point Control Tactics
PPCT Sexual Harassment / Rape Prevention
3.5 Belts And Rank
The concept of belts and rank is probably one that most people associate with Taekwondo and
martial arts in general, even if they only have a passing interest in the subject.
Page 9
In Songahm Taekwondo, our belts reflect a member's proven level of competence and (just as
importantly) the progression of colors reflects an inner journey that never truly ends. Each belt
achieved is truly an accomplishment worthy of respect. It is also worth noting that achieving a
belt isn't just a matter of "spending enough time" in a previous belt. In order to achieve their
next rank, a student must demonstrate their proficiency in their current belt's techniques, to
include Basic Moves, Sparring and Forms.
CATISC SONGAHM TAEKWONDO BELTS (RANKS)
White Belt
"Pure and without the knowledge of Songahm Taekwondo. As with the Pine Tree, the seed
must now be planted and nourished to develop strong roots." The student has no knowledge of
Songahm Taekwondo and begins with a clean (pure) slate. Purity is often signified by the color
white.
Orange Belt
"The sun is beginning to rise. As with the morning's dawn, only the beauty of the sunrise is
seen rather than the immense power." The beginner student sees the beauty of the art of
Taekwondo but has not yet experienced the power of the technique. Orange is found among
the many colors of the sunrise.
Yellow Belt
"The seed is beginning to see the sunlight." The student begins to understand the basics of
Taekwondo. The sun appears to be yellow.
Camouflage (Camo) Belt

"The sapling is hidden amongst the taller pines and must now fight its way upward." The
student begins to realize his/her place in the world's largest martial art. The student must now
begin to spar in order to promote in rank. Camouflage (greens) is used to hide among the
trees in the forest.
Green Belt
"The pine tree is beginning to develop and grow in strength." The student's technique is
developing power. The components of the basic techniques are beginning to work in unison.
As the pine tree develops, it sprouts green pine needles.
Purple Belt
"Coming to the mountain. The tree is in the mid-growth and now the path becomes steep."
The student has crossed over into a higher level of Songahm Taekwondo. The techniques,
poom-sae (forms), and level of gyeo-roo-gi (sparring) becomes more difficult, creating a
"mountain" that must be overcome. Mountains are often depicted as being purple.
Blue Belt
"The tree reaches for the sky toward new heights." Having passed the mid-way point, the
student focuses his/her energy upward toward black belt. The sky appears as blue.
Brown Belt
"The tree is firmly rooted in the earth." At this point the student has mastered the basics and
developed deep roots in Taekwondo. Brown is known as an earthy color, such as dirt.
Red Belt
"The sun is setting. The first phase of growth has been accomplished." The first day (the
Page 10
period of time from white belt to red belt) of growth is coming to an end. The physical skill has
been developed but lacks control; therefore, physical and mental discipline must now be
achieved. Variations of red are found among the many colors of the sunset.
Red/Black Belt
"The dawn of a new day. The sun breaks through the darkness." The previous day has ended,
giving way to a new dawn. The student must begin a new phase of training; that of being a
black belt. The red is the sun (in a sunrise) as it breaks through the black of night.
Black Belt
"The tree has reached maturity and has overcome the darkness... it must now 'plant seeds for
the future.'" The color black is created when all the colors of the light spectrum have been
absorbed into an object. That object has "taken control" of the colors and retained them. If
one color was to "escape", the object would no longer be black but would appear as that color.
The student has mastered the nine geup (grades) of Taekwondo. He/she has "absorbed" all the
knowledge of the color ranks and overcome or "mastered" that level or training. The colors of
the spectrum are bound together and are not reflected off an object, resulting in the absence of
color, which we call black.
4.0 Market Analysis Summary
Cents and Senseibility Martial Arts School will be owned and operated by Rolly BonTemps, 5th
Degree Black Belt of the Can-Am Taekwondo Instructors and Schools Confederation. Rolly
BonTemps has been a Martial Arts Instructor for 10 years and has been studying the art of
Taekwondo for 17 years.
Currently positioned as Lead Instructor in Metroburb, Rolly BonTemps has been actively
involved with all aspects of the business and is now ready to own and operate Cents and
Senseibility Martial Arts School. Since working in the Metroburb school, Rolly has developed a
marketing plan that reaches out and actively seeks out membership. Through this plan the
Metroburb school has nearly doubled in membership over the past two years. This school is
now one of the top three single schools in the nation for membership.
Rolly BonTemps has devoted himself to the teaching of Taekwondo because he believes it
makes a difference in our young children's lives. Through the instruction of martial arts the
parents can visually see the difference in their child's daily behavior, attention span and their
courtesy towards one another and the adult community. Seeing children develop and fine tune
their skills as they progress through the belt levels to Black Belt is not only a joy for the
instructors, but also for the parents as they watch their child mature into a fine young adult.
An adult that walks with pride and gleam with self confidence.
The Can-Am Taekwondo Instructors and Schools Confederation is one of the largest martial
arts organizations in North America today. Rolly BonTemps believes in it, is devoted to it, and
plans to have the number one single school in the country. By achieving this goal, the Cents
and Senseibility Martial Arts School will have helped hundreds of adults and children achieve
their goal of becoming more confident in their actions and themselves. This will also develop
the future leaders and Black Belts of tomorrow.
The demographic research has shown opportunity exists in our local marketplace. There are no
CATISC affiliated Taekwondo martial arts schools in the area. A tremendous opportunity for
growth exists in this market and Cents and Senseibility believes that our position as the
potential leader in our marketplace is not an impossible task.
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4.1 Market Segmentation
National sources relating to sports in general and martial arts specifically, it is estimated that
15% of the U.S. population have participated in some form of martial arts training during their
lifetime.
It is estimated that 3% to 5% of the U.S. population are currently active in some form of
martial arts training (the variation in numbers is a result of some surveys using Tai Chi, Kick
boxing and Yoga as a martial art form, and some include school programs, where others do
not).
Cents and Senseibility Martial Arts School will be located in a county with a population of
251,377 (Our County 2000 census). The population of Our County broken down by gender is
50.1% male and 49.9% female; broken by race; 87.4% White, 19.6% Hispanic (Latino), 5.5%
African American and 0.8% Asian. The median age in the city is 44.1. The Neighboring
County has a population of 440,888 (Lee County 2000 census). The population of Neighboring
County broken by down by gender is 48.9% male and 51.1% female; broken by race - 87.7%
White, 9.5% Hispanic (Latino), 6.6% African American and .08% Asian. The median age in the
county is 45.2.
For purposes of this plan, we are going to address Our County (pop. 251,377, average age
44.1) with plans to expand to Neighboring County as we grow and prosper. The Census
results indicate the following breakdown related to age groups for this area:
Our County Population 251,377 Neighboring County Population 440,888
Under 5 years old 13,441 5.3% 22,970 5.2%

5 to 9 years old 14,444 5.7% 24,224 5.5%
10 to 14 years old 13,677 5.4% 25,034 5.7%
15 to 19 years old 3,382 5.3% 22,501 5.1%
20 to 24 years old 11,708 4.7% 18,816 4.3%
25 to 34 years old 28,262 11.2% 46,491 10.5%
35 to 44 years old 33,458 13.3% 59,232 13.4%
45 to 54 years old 29,515 11.7% 54,833 12.4%
55 to 59 years old 15,518 6.2% 26,820 6.1%
60 to 64 years old 16,459 6.5% 27,856 6.3%
65 to 74 years old 35,088 14.0% 60,563 13.7%
75 to 84 years old 21,060 8.4% 40,630 9.2%
85 and older 5,365 2.1% 10,918 2.5%
Results from a national survey on martial arts schools indicated on average, kids ages 4-14
account for 70% of the individuals participating in martial arts training. Age groups 15-25, 26-
49, and 50+ each account for approximately 10% of students enrolled in martial arts training.
(In comparison to the CATISC School where Rolly BonTemps has instructed the membership
was as follows: ages 4-14 (53%), 15-29 (12%), 30-49 (28%) and 50+ (7%)). Applying the
national survey's age segment enrollment statistics to the Census data on the age groups
of Our County, we estimate our target market to be around 51,000 potential students.
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The table below outlines our estimated breakdown of the potential market by the age groups.
Table: Market Analysis
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
Kids under 14 years 2% 29,093 29,675 30,268 30,874 31,491 2.00%
Young adults 15-25 2% 3,960 4,039 4,120 4,202 4,286 2.00%
Adults 26-49 2% 9,133 9,316 9,502 9,692 9,886 2.00%
Adults over 50 2% 9,349 9,536 9,727 9,921 10,120 2.00%
Total 2.00% 51,535 52,566 53,617 54,689 55,783 2.00%
Chart: Market Analysis (Pie)
4.2 Target Market Segment Strategy
The target market has been broken into four age segments, all within the city limits and
surrounding area. The strategy is based on the research confirmed by the statistics of the Can-
Am Taekwondo Instructors and Schools Confederation and data collected as Lead Instructor
from affiliated CATISC Schools. Parents want their children to learn karate to build confidence
and to learn self defense, adults take karate for exercise and self-defense, and seniors take
karate for social aspects and exercise.
While not specifically addressed, Cents and Senseibility Martial Arts School will be placing
emphasis on the Hispanic (Latino) market as their population continues to increase in this
area. Cents and Senseibility will also be targeting addresses with ZIP codes in medium and
higher income brackets within our market, but not specifically in this plan.
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Target market breakdown is as follows:
1. Parents of kids ages 3-14: This market, is projected to provide the largest potential of
students and offers the most potential for new members. In accordance with the Can-Am
Taekwondo Instructors and Schools Confederation statistics this group accounts for 70% of
our membership of which 67% are male and 33% female.
2. Young Adults 15 -25: This market is projected to provide 10% of the market in accordance
with the CATISC statistics. This group of the market will be targeted to increase the
membership. The Cardio Kick boxing being offered is targeted to young adults as a fitness
program.
3. Adults 26-49: This market is projected to provide 10% of membership in accordance with
the CATISC statistics. Cents and Senseibility will target this group to increase by 20%
through Pilates Classes. This generally attracts adult population. Targeting this group will
be to offer an alterative to health clubs and/or fitness centers. In addition, this group
"controls" the number one market, their kids.
4. Adults over 50: This is our unknown market. This group only accounts for 10% of the
membership in accordance with the CATISC statistics. It is felt that our traditional martial
arts services may be too rigorous and may not meet their "social" and "exercise" needs.
However with the introduction of Pilates Classes this market may increase in participation
and provide additional membership.
4.2.1 Market Needs
Based on a needs analysis taken at Rolly BonTemps' current location in Metroburb, it was found
that our survey was comparable to that of the national survey, reflecting similar results. Our
marketing efforts will be addressing the needs of these groups in the order given:
1. Kids 3-14 ( as outlined by both the kids and their parents): self-confidence, fun, exercise,
discipline, self-defense and socialization.
2. Ages 15-25: exercise, self-defense, self control, concentration.
3. Ages 25-35: exercise, self-defense, stress reduction and weight control and participation
with their children.
4. Ages 35 +: exercise, stress reduction and socialization.
4.2.2 Market Trends
In the mid-1960s there was a boom in martial arts studios, partially brought on by the success
of Bruce Lee movies and the TV show 'Kung Fu'. In the mid-1980s, interest in martial arts
moved towards offering children's programs. In the mid-1990s it was estimated that 5 to 10
million Americans were active in some form of martial arts training.
Recent trends such as the popularity of the movie "Crouching Tiger, Hidden Dragon" not so
suprisingly caused a mini-surge in the number of new applicants. In addition, martial arts for
kids has shown a trend towards more activities and less "traditional" training. It has been
noted that today's kids have a lower level of patience, want to be involved in "movie" type
karate styles (i.e., "Matrix", "Shanghai Noon", "Karate Kid" and "Power Rangers") and are more
demanding of their time.
Page 14
Another trend is that larger health/fitness organizations are moving into the martial arts field
and a general consolidation is occuring. Companies such as Bally Total Fitness and Gold's Gym
are offering kick-boxing, teabo and other forms of group "soft" martial arts training such as
yoga.
Finally, there is a push in the health/fitness industry to attract the 'over 50' crowd. Fitness
clubs have a difficult time applying their muscle building, fast-paced fitness programs into this
market. However, the 'over 50' group is expected to be marketed to more aggressively, as
fitness/health clubs realize the potential of the "baby boomers" and the fact that baby boomers
have both the time and money to pursue outside recreational activities.
4.2.3 Market Growth
The U.S. Census (2000) shows that our region is experiencing tremendous growth. More
families are moving into the our community area than ever before. Our region is experiencing
a boom in adults ages 30 to 50 with young children, who can afford the ever increasing cost of
homes in the area.
A national survey taken indicated there are approximately six million Americans actively
involved in martial arts training. The survey indicated that a 14% growth rate was expected in
the upcoming years as Americans move towards a more healthy lifestyle.
As our area was once known for elderly retirement communities, the trend is turning towards
the younger families and children moving into the area. This could be a result of the cost of
living, causing many seniors on retirement income to move to more affordable locations.
4.3 Service Business Analysis
The business of owning and operating the Cents and Senseibility Martial Arts School is similar to
that of running a health/fitness clubmembership is everything. The 'do-jahng' (Taekwondo
facility) is the teacher and place of learning, and can be looked at as a place of experience, an
elder. The word 'do' (way) 'jahng' (area) means "the area in which we learn the way." Respect
is given to the place where this training takes place. This respect is not to the do-jahng as an
object, but to remind students to keep their minds right, attitudes proper, and take care of the
facility in which they train.
Martial arts falls under the SIC (Standard Industrial Code) 7999 - Amusement and Recreational
Services. Under this heading we find groupings from Astrologers to Card Rooms, from Carnival
Operations to Yoga. In other words the code is too broad to provide solid analysis benefit, but
it will be addressed in our comparative ratios analysis at the end of this plan.
The martial arts industry consists primarily of thousands of small independent schools, most
belong to one of hundreds of loosely organized martial arts associations (usually divided by
style type). The Cents and Senseibility Martial Arts School is proud to be affiliated with one of,
if not the largest, martial arts organizations in the United States today, with over 1,500
Taekwondo Centers and 300,000 active students and growing.
Other industries should be considered in any competitive analysis. The health and fitness club
industry (Bally Total Fitness, Gold's Gym) and the non-profit (YMCA, YWCA and local schools)
are in competition for the same group of potential customers.
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4.3.1 Competition and Buying Patterns
The nature of the business of a Taekwondo Center is to offer a facility with martial arts
training. Membership is everything and turnover (attrition) in the industry can be high.
Several reports place the average turnover of a do-jahng at 40 to 60%. Selection of a do-
jahng by a potential member is, in-part, done by the style of martial art (taekwondo, karate,
judo, kung-fu or kick-boxing) the member wishes to participate.
However, selection of a do-jahng by a new student is more basic in nature. Based on past
experience, generally a do-jahng selection is based on the following (most popular first):
1. Friends/family attending
2. Location
3. Cost
4. Facility environment
5. Class schedule (times)
6. Friendliness of instructors (personal attention)
7. Class size
However, the marketing plan developed by the Can-Am Taekwondo Instructors and Schools
Confederation and perfected by the owner of Cents and Senseibility Martial Arts School, Rolly
BonTemps (5th Degree Black Belt), has generated more memberships for the school he has
been affiliated with than all the advertisements and word-of-mouth put together. This
marketing plan actively recruits and goes out after membership and does not wait for the
membership to walk into the do-jahng. This marketing plan will be discussed within this
Business Plan.
Potential members are most aware of a do-jahng's physical existence because:
1. The marketing activities (50%)

2. Friends and family (25%);
3. Drive/walk by storefront (15%);
4. Yellow Page/media advertising (10%)
4.3.2 Competing Martial Arts School's and Health Clubs
Two martial arts schools have been identified as being the most competitive with our location.
All have a physical facility (dojo), both offer traditional martial arts training. Both offer
competitive pricing and are open Monday thru Saturday (closed Sunday). In addition, each
head instructor is well versed in his/her field. Both facilities are located approximately 7-10
miles from locations being sought after for the Cents and Senseibility Martial Arts School.
At this time there are no major health clubs in the immediate vicinity of our proposed location.
5.0 Strategy and Implementation Summary
In this somewhat competitive field, Cents and Senseibility Martial Arts School will focus on a
broad market. Special focus will be placed on recruiting students from the four Elementary
Schools, two Middle Schools, and two High Schools in the immediate area.
Special emphasis will be placed on these age groups:
Page 16
1. Age 3-5, the Tiny Tots Taekwondo Program is expected to make up 10% of the
membership.
2. Age 6 -12, is projected to make up 60% of the membership. This group tends to establish
the largest student base in most CATISC Taekwondo schools across the nation.
3. Age 13-18, is projected to make up 10% of the membership.
4. Age 19-30, is projected to make up 10% of the membership.
5. Age 30 and older, is projected to make up 10% of the membership.
5.1 Competitive Strengths and Weaknesses
Strengths:
Can-Am Taekwondo Instructors and Schools Confederation has been established for over 30
years and is one of the largest martial arts organizations, if not the largest, in the United
States.
Cents and Senseibility Martial Arts School location will be located in a major shopping center
with easy access and ample lighted parking.
Mr. Rolly BonTemps (5th degree black belt) is very knowledgeable and is nationally
recognized as one of the CATISC's leading instructors.
Mr. BonTemps is an experienced Instructor with over 10 years as a certified Instructor with
CATISC. He has a strong desire and patience to teach the youth of today.
Mr. BonTemps has been recognized by leading instructors in CATISC as one of the
organization's leading marketing specialists in recruitment.
Mr. BonTemps has been recognized by the teachers in Metroburb, for his participation in
"Show and Tell" activities at the Elementary Schools and is continuously being sought after
to return to the classrooms for further presentations. This results in the largest recruitment
of students and has proven to be a highly effective marketing plan.
Competitive pricing and hours of operation.
Solid untapped database from which to market.
Lead Instructor for over 300 active students.
Weaknesses:
New School.
Lack of Instructors during start up.
Student attrition.
No website at this time but it is planned for the future.
5.2 Marketing Strategy
In the Marketing Strategy the target is very broad, kids 3 to 14, young adults 15 to 25, and
adults 26 to 49. To address this market one must understand that Cents and Senseibility
Martial Arts School will be a "showplace" and in marketing efforts we want potential members
to judge our "book by its cover."
The first strategy will be to open a fully decorated and functional Taekwondo School (Cents and
Senseibility Martial Arts School). This school will be a fun and exciting place where members
will want to train. The school will be neat, clean and offer a variety of functions and state of
the art training facility.
Show and Tell
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The first marketing initiative is to meet with the local School Administrators and introduce
ourself to the community. The "Show and Tell" plan is introduced and when accepted lends the
approach to meet the children in the classroom. The "Show and Tell" is organized in different
segments. The first time the instructor addresses the children he/she will be in full Martial Art
Uniform. Most children are thoroughly impressed and fascinated as they enter the room. Upon
asking them if they would like to have a uniform and take Taekwondo, it immediately attracts
their attention. This is where the instructor immediately reaches out and begins to teach the
students the meaning of discipline. Discipline meaning how we act in the presence of adults
and teachers and what is expected of students in the Taekwondo School. The students are
rewarded for their behavior during the "Show and Tell" by letting them break styrofoam
(simulated wood boards) as they do in the Taekwondo School. By the time the instructors
leave the class room, the children are so fascinated by the instructor and his/her teaching
application, all students are sitting straight up in their seats and answering the teacher and
instructor with phrases like "Yes Sir, Yes Ma'am".
Because of the success of the first visit, the teachers are so astonished at the children's
behavior change in the classroom that the Instructor(s) are invited back for a second and third
and often a forth time during the school year. Each time the instructor is invited back he/she
concentrates on a different element of the martial arts such as self control, concentration,
respect. Each "Show and Tell" reflects the topic the teacher would like demonstrated to the
children. This has been such a success that the word spreads quickly and the Instructors visit
every classroom and address entire schools putting on demonstrations during the recalls in the
Auditorium.
During each of these visits at the end of the session, each child is given a card for a free 30
days of instruction. On average 10 children will attend the free lessons. Getting the parents
and child into the Taekwondo School will usually sell itself. However, once they enter the
School, the instructor interviews the parents to see just what they would like their child to
receive out of the Taekwondo Class. Depending on the parents' answerdiscipline, self-control,
respect, etc.the instructor gears his focus for that student to the parents' wish. The child is
then taken onto the do-jahng with the instructor for a one-hour introduction in Taekwondo.
The instructor is gearing his one-hour orientation toward what the parent has requested (e.g.,
discipline, self-control, respect, etc.). Once the instructor returns with the child, the parent sees
the immediate change in their child's behavior after only a one-hour session. At this time, six
to eight of the 10 students that enter that day enroll under contract to begin their
Taekwondo lessons.
V.I.P. Program
The second marketing initiative is a V.I.P. program. Here we take to the parking lots of the
local shopping and strip malls dressed in full uniform. We actively hand out flyers and business
cards to all parents we see with children, or any interested adult that approaches. Again
we offer 30 days of free lessons, to get the people in the door of the school. Once they enter
the do-jahng, the same process as above is used. Through experience in exercising these
methods, six to eight out of the 10 people that enter will sign a contract for lessons.
As the students begin to enroll, Cents and Senseibility Martial Arts School plans to participate in
"Martial Arts" demonstrations at the local malls, Wal-Mart and grocery store location parking
lots, public parks, etc., with the students participating in the demonstration.
Yellow Pages
Page 18
The third marketing initiative is to advertise in the "Yellow Pages", local newspaper, radio,
websites and, as we become more profitable, on local television.
5.2.1 Positioning Statement
For adults in the city who want to learn and/or have their children learn the art of Taekwondo
and to build self-confidence, we offer competitive pricing, convenient hours, and quality
instruction, under the leadership of a 5th degree black belt, nationally recognized instructor.
Unlike the competition, Cents and Senseibility Martial Arts School plans to offer the most
modern of facilities, in a convenient location with ample parking, and programs that are
entertaining, adventuresome, with the tradition of Korean style Taekwondo.
5.2.2 Pricing Strategy
We must offer our services at a pricing structure that will both meet our financial needs and the
needs of our members. Our value-priced fee structure of $80 per month membership for the
Tiny Tots Taekwondo (3T) Program, $85 per month for the Basic Program and $90 per month
for the Black Belt Club is competitive for schools that own their own facility. We will keep this
fee but offer promotional discounts to members for bringing in new students.
There are as many introductory promotional pricing packages as there are do-jahngs. All the
programs are designed to draw or introduce the potential member to the do-jahng without
requiring them to sign a long-term contract. All offer the same basic package which includes
anywhere from 1-6 months training, 1-3 private classes with gi (uniform), and prices varying
from $50 to $99.
Our value-pricing strategy is to offer a very short introductory package of two personal training
sessions and a gi for $29. If the potential member wants to continue, we will offer a six month
introductory package at $299. After six months, if the potential member wants to continue we
will offer the annual contract at $1,000 (with discounts for payment up front). Monthly or
quarterly billing options will be offered.
In addition, we will be working to identify other pricing structures which address families and
lower income students.
5.2.3 Promotion Strategy
Based on buying pattern research, we determined marketing in local schools and public
places is the most successful marketing strategy, followed by "word-of-mouth" for promoting
our do-jahng, followed by the "storefront" and finally advertising." With this in mind we have
established the following promotional strategies:
Our members (students) must like who we are and what we do, in order for us to succeed.
To assist in promotion, we will offer an incentive to members who bring in new members.
We want potential members to judge our "book by its cover."
Our storefront (external and internal) will be redesigned to sell itself. People will want to go
in just to see what a do-jahng looks like.
We will be holding an annual Taekwondo Tournament as we grow in numbers. This will be
held in the local community at a location that will handle several thousand participants, such
as a school gym or civic center, etc.
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Cents and Senseibility will be holding Taekwondo demonstrations locally at the mall,
shopping centers and at events around the city.
Cents and Senseibility Martial Arts School will continue to offer free self-defense seminars to
local grade schools and retirement communities.
Cents and Senseibility will offer self-defense and weapon techniques to local law
enforcement agencies.
We will offer self-defense training for women.
The Cents and Senseibility Martial Arts School Web page will be designed to reflect
our image and be very informative.
Cents and Senseibility will advertise in "The Yellow Pages", the #1 source of new
recruitment in media. We will purchase "competitive" ad space.
We also will advertise in the local "entertainment and news" paper, which will also provide
good advertisement opportunities.
5.2.4 Marketing Programs
In our Marketing Strategy the primary market will be kids 3 to 14 and young adults from 15 to
25 and adults 30 to 49. The senior adults (50+) market will be addressed separately.
1. To address the largest market one must understand that the do-jahng is a "showplace" and
in the marketing efforts we want potential customers to judge our "book by its cover."
2. Another key marketing program is to introduce simple methods of training to the instructors
to reinforce students, i.e., "want to train, not have to train" concepts. This program is
intended to reduce high level of membership attrition.
3. The final program is to advertise in the Yellow Pages and weekly newspaper. Both
programs will be tracked, but the weekly newspaper appears to offer more clearly defined
(short-term) success to specific advertising promotions and plans can be adjusted
accordingly.
4. Cents and Senseibility Martial Arts School will create a very professional brochure on what
the facility has to offer. Mr. BonTemps will head up this program.
5.2.5 Strategic Alliances
There are a number of establishments surrounding the do-jahng. We will contact select
establishments for an agreed brochure trade, with emphasis on a positive, well-designed
showcase that will benefit both parties with possible discounts being made available.
5.3 Sales Strategy
The overall strategy is to increase membership to 300 by year-end 2004, which is 80% of the
do-jahng capacity and an aggressive two year growth. Through effective marketing efforts
Cents and Senseibility Martial Arts School will make potential customers aware of the do-
jahng. From this awareness Cents and Senseibility will increase the number of potential
members that walk in the front door.
These new potential members will be met by either the Instructor or a well-trained sales
associate/receptionist who will have all sales materials, promotions and a computer for data
entry. The sales associate will be empowered to offer select promotions, however, if the
potential member is interested in joining, an instructor will be made available for immediate
consultation.
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5.3.1 Sales Forecast
The following chart and table reflects the aggressive, but obtainable sales forecast.
Membership is projected to grow at a steady pace. Introductory membership fees will be
adjusted accordingly after the three month grand opening.
Special classes will be conducted upon demand. Weekend activities such as birthday parties
and special events will also be conducted for a minimal price.
Private lessons will also be made available by Rolly BonTemps, 5th Degree Black Belt, upon the
students request for lessons.
Belt testing will be conducted every 8 weeks and fees will be according to rank and group
membership.
Self-defense seminars for women will be held periodically throughout the year, teaching
females the basic self-defense techniques in case of emergencies.
Special Law Enforcement self-defense seminars will be held periodically throughout the year,
teaching Law Enforcement Officers basic and advanced self-defense techniques.
Table: Sales Forecast
Sales Forecast
Year 1 Year 2 Year 3
Sales
3T Membership $38,000 $54,000 $63,000
Basic Club Membership $49,300 $118,830 $93,500
Black Belt Club Membership $30,960 $61,920 $92,880
Masters Club Membership $28,900 $57,800 $86,700
Testing $50,900 $68,715 $92,765
Private Lessons $1,950 $2,048 $2,150
Weekend Specials $2,375 $2,494 $2,618
Merchandise $14,700 $17,640 $21,168
Pilates Membership $21,000 $23,100 $25,410
Cardio Kick Boxing Membership $21,000 $23,100 $25,410
Total Sales $259,085 $429,646 $505,602
Direct Cost of Sales Year 1 Year 2 Year 3

Merchandise $7,350 $8,820 $10,584
Testing - CATISC fees $7,635 $10,307 $13,915
Testing (inventory, etc.) $15,270 $20,615 $27,830
Subtotal Direct Cost of Sales $30,255 $39,742 $52,328
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Chart: Sales Monthly
Chart: Sales by Year
5.4 Milestones
The following table lists important program milestones, with dates and managers in charge, and
budgets for each. The milestone schedule indicates the emphasis on planning for
Page 22
implementation. The most important programs are the sales and marketing programs listed in
detail in the previous topics.
Table: Milestones
Milestones
Milestone Start Date End Date Budget Manager Department

Business Plan 6/15/2003 8/30/2003 $150 Fiorello & Rolly Marketing
Marketing Plan 6/30/2003 9/30/2003 $250 Rolly Marketing
Find School Location 7/1/2003 10/30/2003 $0 Fiorello & Rolly Marketing
Secure Financing 8/30/2003 10/30/2003 $0 Fiorello & Rolly Marketing
Store Front Sign 10/30/2003 12/30/2003 $10,000 Fiorello & Rolly Marketing
Open School 12/1/2003 1/3/2004 $25,000 Rolly Marketing
Marketing program - first 25
12/1/2003 1/3/2004 $2,000 Rolly Marketing
students
1/4/2004 1/31/2004 $1,000 Rolly Web
students
Marketing program - Cardio Kick
12/1/2003 1/31/2004 $500 Rolly Marketing
Boxing 50 students
Marketing program - Pilates First 50
12/1/2003 1/31/2004 $500 Meg Marketing
students
2/2/2004 2/29/2004 $1,000 Rolly Web
students
5/2/2004 7/31/2004 $2,000 Rolly Marketing
students
8/2/2004 10/16/2004 $1,500 Rolly Marketing
students
10/18/2004 1/1/2005 $1,500 Rolly Marketing
students
Marketing program - VIP Schools 12/1/2003 12/31/2004 $100/month Rolly Marketing
Totals $45,400
Chart: Milestones
Page 23
6.0 Management Summary
Rolly BonTemps is the owner of Cents and Senseibility Martial Arts School. Mr. BonTemps (5th
degree black belt) is an experienced Taekwondo instructor with over 10 years as a certified
Instructor with the Can-Am Taekwondo Instructors and Schools Confederation. He has also
recognized by leading instructors in the Can-Am Taekwondo Instructors and Schools
Confederation as one of the organization's leading Marketing Specialists in recruitment.
Upon opening the School he will contract an accountant. At this time there are no other
employees. The Taekwondo School will be a self-running establishment. The owner
will oversee operations and provide all of the instruction at this time.
6.1 Personnel Plan
The do-jahng itself is a small business. However, the company is putting together a quality
management team (Board of Advisors) to assist in business matters. Gaps in legal, tax,
marketing and personnel will be covered by the Board of Advisors. Our strength will be in the
technical and management fields. Computer graphic designing and software programs is
expected to assist with the advertising and marketing for Cents and Senseibility Martial Arts
School. While currently the Black Belt Academy has no employees, as soon as the school opens
the owner's father and mother will be assisting part-time as sales associate/receptionist to
handle the expected increase in new membership and serve on the Board of Advisors for
business issues. The Board of Advisors will consist of a three member team, each with
experience in general business (insurance), accounting, small business, legal issues and human
resources.
Cents and Senseibility Martial Arts School will have the below listed employees:
Rolly BonTemps, Owner and Instructor. Rolly BonTemps has been actively involved in the
Can-Am Taekwondo Instructors and Schools Confederation since he was 9 years old. Rolly
achieved Black Belt status in June 1990. Since then he has progressed through the ranks
achieving his Instructor Certification and in June 2003 received his 5th Degree Black Belt.
Rolly has worked at the Taekwondo School in Metroburb as the Lead Instructor for the past
five years. Mr. Pivayoke, 7th Degree Black Belt has been Rolly's Instructor over this
period. Mr. Pivayoke has entrusted Rolly with the full running and the operation of the
Taekwondo School. Over this period, Rolly has learned all aspects needed to fully run his
own establishment. He has mastered a marketing plan that has made the Metroburb School
one of the top three single owned CATISC Taekwondo Schools in the United States. The
membership at this location is actively operating at 450 to 500 students.
Meg LeFevre, is the fiancee of Rolly BonTemps. Meg actively participates in several health
club fitness programs. Meg is working on receiving her certification as a Pilates Instructor.
Once this certification is achieved, the Cents and Senseibility Martial Arts School will also
expand into the fitness program for young and and older adults.
Fiorello BonTemps, father of the owner will serve as consultant, financial advisor, and
manage the maintenance and any construction needs for the building. Mr. BonTemps will
enter into this business retired from the United States Department of Justice, where he
served for 23 years. Mr. BonTemps retired as Facility Administrator for our region of the
United States. His knowledge in business management, construction industry, business
finances, legal issues, human resources and computer programs, will assist Rolly
BonTemps, owner and operator with business decisions and expansions. Mr. BonTemps will
Page 24
serve as a Board of Advisors Member for the Cents and Senseibility Martial Arts School.
Merry BonTemps, mother of the owner will serve as consultant and financial advisor and
manage the bookkeeping and financial affairs for the business. Mrs. BonTemps has worked
in the medical field for 25 years and has managed office finances and has worked for ten
years in human resources. Mrs. BonTemps will serve as a Board of Advisors Member for the
Cents and Senseibility Martial Arts School.
The owner will actively seek advice from SCORE "Counselors to America's Small Business", a
national non-profit organization with an office in our community. This is a group of retired
executives and business owners who donate their time to serve as counselors and advisors to
aspiring entrepreneurs and business owners.
These experienced counselors provide FREE small business counseling for business owners in
the region from their office in downtown.
In calendar year 2002, our SCORE Chapter handled 824 new cases, 341 follow-up cases (of
which 335 were new e-mail cases and 181 were follow-on e-mail cases). Also, SCORE
counselors put in a total of 1,748 volunteer hours. Currently, there are five counselors
approved by National SCORE to handle U.S.-wide e-mail cases.
Table: Personnel
Personnel Plan
Rolly BonTemps (Owner) $33,000 $45,000 $65,000
Meg LeFevre (Instructor) $7,000 $10,000 $15,000
Fiorello BonTemps (Board of Directors) $6,000 $8,000 $10,000
Merry BonTemps (Board of Directors) $6,000 $8,000 $10,000
Total People 4 4 4
Total Payroll $52,000 $71,000 $100,000
7.0 Financial Plan
The initial investment in the Cents and Senseibility Martial Arts School will be provided by Rolly
BonTemps and his parents. The owner will also seek a 3-year bank loan to provide the
remainder of the required initial funding.
Our financial plan is built on the assumption that Cents and Senseibility will be able to recruit
the required amount of students on a rolling basis. The owner strongly believes that his
previous successful experience as one of the industry's most distinguished marketing specialists
will allow him to become successful with the enrollment for his own Taekwondo school.
The break-even point of + or - 70 students should be achieved in just three months. The goal
of 300 students in 12-18 months is very obtainable. When this goal is met, Cents and
Senseibility Martial Arts School will be a very profitable business. The long-term goal is to have
enough cash on-hand and a solid credit history to pursue the ultimate goal of owning our own
building. This facility will include the Cents and Senseibility Martial Arts School and a fitness
Page 25
center for young and older adults to participate in several fitness programs, as well as a
universal gym.
7.1 Important Assumptions
It was necessary to make certain broad-based assumptions in planning for the future. The
financial assumptions are listed below in the table. In addition, several other important
assumptions have been made:
The economy will grow at a steady pace, without a major recession. Our network of
local communities is among the fastest growing areas in the country. The Cents and
Senseibility Martial Arts School is expected to grow with the growth of the local
communities.
There will be no major change in the martial arts industry, other then those discussed in the
trends section earlier in this document.
The State will not enact "impact" legislation on the unregulated martial arts industry.
Table: General Assumptions
General Assumptions
Plan Month 1 2 3
Current Interest Rate 7.00% 7.00% 7.00%
Long-term Interest Rate 9.00% 9.00% 9.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0
7.2 Break-even Analysis
For the break-even analysis, the assumed running costs will include full payroll, rent, and
utilities, and an estimation of other running costs. Based on our assumed variable cost, we
show below our estimated break-even sales volume per month. We expect to reach that sales
volume by our fourth month of operations.
Page 26
Chart: Break-even Analysis
Table: Break-even Analysis
Break-even Analysis
Monthly Revenue Break-even $10,605
Assumptions:
Average Percent Variable Cost 12%
Estimated Monthly Fixed Cost $9,367
7.3 Projected Profit and Loss
Cents and Senseibility's monthly profit for the first year varies considerably, as we aggressively
seek improvements and begin marketing the business. However, after the first six
months, profitability should take hold, which will allow a modest increase to the owner's salary.
Page 27
Chart: Profit Monthly
Chart: Profit Yearly
Page 28
Chart: Gross Margin Monthly
Chart: Gross Margin Yearly
Table: Profit and Loss
Pro Forma Profit and Loss

Page 29
Sales $259,085 $429,646 $505,602

Direct Cost of Sales $30,255 $39,742 $52,328
Other costs $0 $0 $0
Total Cost of Sales $30,255 $39,742 $52,328
Gross Margin $228,830 $389,905 $453,273

Gross Margin % 88.32% 90.75% 89.65%
Expenses
Payroll $52,000 $71,000 $100,000
Sales and Marketing and Other Expenses $15,000 $25,000 $40,000
Depreciation $1,000 $1,000 $1,000
Rent $30,000 $30,000 $30,000
Utilities $4,200 $4,500 $4,600
Janitorial services $3,000 $3,500 $4,000
Insurance $1,200 $1,200 $1,200
Payroll Taxes $0 $0 $0
Miscellaneous $6,000 $10,000 $15,000
Total Operating Expenses $112,400 $146,200 $195,800
Profit Before Interest and Taxes $116,430 $243,705 $257,473

EBITDA $117,430 $244,705 $258,473
Interest Expense $4,523 $2,861 $982
Taxes Incurred $33,572 $72,253 $76,947
Net Profit $78,335 $168,590 $179,544

Net Profit/Sales 30.24% 39.24% 35.51%
Page 30
7.4 Projected Cash Flow
Like profit, the first year's monthly cash flows will vary. Since we will mostly deal with private
customers, we expect that most of our sales will be done in cash or by credit card, which will
positively affect our planned cash flow, especially during the most crucial first year of
operations. A 3-year commercial loan sought by the owner will be required to cover working
capital requirement.
Our projected cash flow, as summarized in the table below, is expected to meet the needs. In
the following years, excess cash will be used to finance more aggressive service plans.
Table: Cash Flow
Pro Forma Cash Flow

Cash Received
Cash from Operations

Cash Sales $207,268 $343,717 $404,481
Cash from Receivables $37,428 $76,457 $96,902
Subtotal Cash from Operations $244,697 $420,174 $501,383
Additional Cash Received

Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $244,697 $420,174 $501,383
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations

Cash Spending $52,000 $71,000 $100,000
Bill Payments $115,234 $191,171 $225,140
Subtotal Spent on Operations $167,234 $262,171 $325,140
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $18,236 $19,947 $21,817
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $185,470 $282,118 $346,957
Net Cash Flow $59,227 $138,056 $154,426

Cash Balance $103,227 $241,282 $395,709
Page 31
Chart: Cash
Page 32
7.5 Projected Balance Sheet
The balance sheet is quite solid. Cents and Senseibility Martial Arts School does not project any
real trouble meeting its debt obligationsas long as it can achieve the specific objectives. We
are very confident we will meet all objectives in the Business Plan, if not exceed them.
Table: Balance Sheet
Pro Forma Balance Sheet

Assets
Current Assets
Cash $103,227 $241,282 $395,709
Accounts Receivable $14,388 $23,861 $28,079
Inventory $9,575 $10,188 $13,447
Other Current Assets $0 $0 $0
Total Current Assets $127,190 $275,332 $437,235
Long-term Assets
Long-term Assets $10,000 $10,000 $10,000
Accumulated Depreciation $1,000 $2,000 $3,000
Total Long-term Assets $9,000 $8,000 $7,000
Total Assets $136,190 $283,332 $444,235
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $17,091 $15,589 $18,766
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $17,091 $15,589 $18,766
Long-term Liabilities $41,764 $21,817 $0

Total Liabilities $58,855 $37,406 $18,766
Paid-in Capital $35,000 $35,000 $35,000

Retained Earnings ($36,000) $42,335 $210,925
Earnings $78,335 $168,590 $179,544
Total Capital $77,335 $245,925 $425,469
Total Liabilities and Capital $136,190 $283,332 $444,235
Net Worth $77,335 $245,925 $425,469
7.6 Business Ratios
As indicated in the "Service Business Analysis" the martial arts industry is not properly reflected
in the SIC Code provided (7999). However, with this said, we have made some preliminary
business ratio comparisons using the SIC (2000 figures). The results are very favorable.
Page 33
We have much lower long-term assets than the industry standard because we are beginning
our business with a rented space, rather than buying one. If Cents and Senseibility sees
sufficient growth over the first three yeears, we may buy a suitable location for permanent
space.
Table: Ratios
Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth n.a. 65.83% 17.68% 2.76%
Percent of Total Assets

Accounts Receivable 10.57% 8.42% 6.32% 4.27%
Inventory 7.03% 3.60% 3.03% 4.31%
Other Current Assets 0.00% 0.00% 0.00% 31.38%
Total Current Assets 93.39% 97.18% 98.42% 39.96%
Long-term Assets 6.61% 2.82% 1.58% 60.04%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 12.55% 5.50% 4.22% 23.98%

Long-term Liabilities 30.67% 7.70% 0.00% 24.53%
Total Liabilities 43.22% 13.20% 4.22% 48.51%
Net Worth 56.78% 86.80% 95.78% 51.49%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 88.32% 90.75% 89.65% 100.00%
Selling, General & Administrative Expenses 30.44% 23.59% 23.82% 75.54%
Advertising Expenses 0.39% 0.23% 0.20% 3.11%
Profit Before Interest and Taxes 44.94% 56.72% 50.92% 1.52%
Main Ratios
Current 7.44 17.66 23.30 1.04
Quick 6.88 17.01 22.58 0.68
Total Debt to Total Assets 43.22% 13.20% 4.22% 64.79%
Pre-tax Return on Net Worth 144.70% 97.93% 60.28% 2.30%
Pre-tax Return on Assets 82.17% 85.00% 57.74% 6.54%
Additional Ratios Year 1 Year 2 Year 3

Net Profit Margin 30.24% 39.24% 35.51% n.a
Return on Equity 101.29% 68.55% 42.20% n.a
Activity Ratios
Accounts Receivable Turnover 3.60 3.60 3.60 n.a
Collection Days 56 81 94 n.a
Inventory Turnover 5.12 4.02 4.43 n.a
Accounts Payable Turnover 7.74 12.17 12.17 n.a
Payment Days 27 31 27 n.a
Total Asset Turnover 1.90 1.52 1.14 n.a
Debt Ratios
Debt to Net Worth 0.76 0.15 0.04 n.a
Current Liab. to Liab. 0.29 0.42 1.00 n.a
Liquidity Ratios
Page 34
Net Working Capital $110,099 $259,742 $418,469 n.a

Interest Coverage 25.74 85.18 262.25 n.a
Additional Ratios
Assets to Sales 0.53 0.66 0.88 n.a
Current Debt/Total Assets 13% 6% 4% n.a
Acid Test 6.04 15.48 21.09 n.a
Sales/Net Worth 3.35 1.75 1.19 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Page 35
Appendix
Table: Sales Forecast
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Sales
3T Membership 8000% $400 $1,200 $2,000 $2,800 $3,600 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000
Basic Club Membership 8500% $425 $1,275 $2,125 $2,975 $3,825 $4,250 $4,675 $5,100 $5,525 $5,950 $6,375 $6,800
Black Belt Club Membership 9000% $450 $630 $900 $1,350 $1,530 $1,800 $2,250 $3,150 $4,050 $4,950 $4,950 $4,950
Masters Club Membership 10000% $0 $500 $700 $1,000 $1,200 $1,500 $2,000 $2,500 $3,500 $4,500 $5,500 $6,000
Testing 0% $0 $0 $1,150 $2,300 $3,200 $4,500 $5,050 $5,600 $6,150 $6,700 $7,500 $8,750
Private Lessons 0% $0 $0 $150 $200 $200 $200 $200 $200 $200 $200 $200 $200
Weekend Specials 0% $0 $150 $150 $200 $200 $225 $225 $225 $250 $250 $250 $250
Merchandise 0% $0 $800 $1,000 $1,250 $1,250 $1,250 $1,250 $1,500 $1,500 $1,500 $1,700 $1,700
Pilates Membership 0% $0 $0 $750 $1,250 $1,750 $2,250 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Cardio Kick Boxing Membership 0% $0 $0 $750 $1,250 $1,750 $2,250 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Total Sales $1,275 $4,555 $9,675 $14,575 $18,505 $22,225 $24,650 $27,275 $30,175 $33,050 $35,475 $37,650
Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Merchandise 50% $0 $400 $500 $625 $625 $625 $625 $750 $750 $750 $850 $850
Testing - CATISC fees 15% $0 $0 $173 $345 $480 $675 $758 $840 $923 $1,005 $1,125 $1,313
Testing (inventory, etc.) 30% $0 $0 $345 $690 $960 $1,350 $1,515 $1,680 $1,845 $2,010 $2,250 $2,625
Subtotal Direct Cost of Sales $0 $400 $1,018 $1,660 $2,065 $2,650 $2,898 $3,270 $3,518 $3,765 $4,225 $4,788
Page 1
Appendix
Table: Personnel
Personnel Plan
Rolly BonTemps (Owner) 0% $2,000 $2,000 $2,000 $2,500 $2,500 $2,500 $3,000 $3,000 $3,000 $3,500 $3,500 $3,500
Meg LeFevre (Instructor) 0% $500 $500 $500 $500 $500 $500 $500 $500 $750 $750 $750 $750
Fiorello BonTemps (Board of Directors) 0% $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Merry BonTemps (Board of Directors) 0% $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Total People 4 4 4 4 4 4 4 4 4 4 4 4
Total Payroll $3,500 $3,500 $3,500 $4,000 $4,000 $4,000 $4,500 $4,500 $4,750 $5,250 $5,250 $5,250
Page 2
Appendix
Table: General Assumptions
General Assumptions
Plan Month 1 2 3 4 5 6 7 8 9 10 11 12
Current Interest Rate 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00%
Long-term Interest Rate 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00% 9.00%
Tax Rate 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Other 0 0 0 0 0 0 0 0 0 0 0 0
Page 3
Appendix
Table: Profit and Loss
Pro Forma Profit and Loss

Sales $1,275 $4,555 $9,675 $14,575 $18,505 $22,225 $24,650 $27,275 $30,175 $33,050 $35,475 $37,650
Direct Cost of Sales $0 $400 $1,018 $1,660 $2,065 $2,650 $2,898 $3,270 $3,518 $3,765 $4,225 $4,788
Other costs 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $400 $1,018 $1,660 $2,065 $2,650 $2,898 $3,270 $3,518 $3,765 $4,225 $4,788
Gross Margin $1,275 $4,155 $8,658 $12,915 $16,440 $19,575 $21,753 $24,005 $26,658 $29,285 $31,250 $32,863
Gross Margin % 100.00% 91.22% 89.48% 88.61% 88.84% 88.08% 88.25% 88.01% 88.34% 88.61% 88.09% 87.28%
Expenses
Payroll $3,500 $3,500 $3,500 $4,000 $4,000 $4,000 $4,500 $4,500 $4,750 $5,250 $5,250 $5,250
Sales and Marketing and Other
$4,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000
Expenses
Depreciation $83 $83 $83 $83 $83 $83 $83 $83 $83 $83 $83 $83
Rent $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Utilities $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350
Janitorial services $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250 $250
Insurance $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Miscellaneous $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Total Operating Expenses $11,283 $8,283 $8,283 $8,783 $8,783 $8,783 $9,283 $9,283 $9,533 $10,033 $10,033 $10,033
Profit Before Interest and Taxes ($10,008) ($4,128) $374 $4,132 $7,657 $10,792 $12,469 $14,722 $17,124 $19,252 $21,217 $22,829
EBITDA ($9,925) ($4,045) $458 $4,215 $7,740 $10,875 $12,553 $14,805 $17,208 $19,335 $21,300 $22,913
Interest Expense $439 $428 $417 $406 $394 $383 $372 $360 $349 $337 $325 $313
Taxes Incurred ($3,134) ($1,367) ($13) $1,118 $2,179 $3,123 $3,629 $4,308 $5,033 $5,674 $6,267 $6,755
Net Profit ($7,313) ($3,189) ($30) $2,608 $5,084 $7,286 $8,468 $10,053 $11,743 $13,240 $14,624 $15,761
Net Profit/Sales -573.58% -70.02% -0.31% 17.89% 27.47% 32.78% 34.35% 36.86% 38.92% 40.06% 41.22% 41.86%
Page 4
Appendix
Page 5
Appendix
Table: Cash Flow
Pro Forma Cash Flow

Cash Received
Cash from Operations

Cash Sales $1,020 $3,644 $7,740 $11,660 $14,804 $17,780 $19,720 $21,820 $24,140 $26,440 $28,380 $30,120
Cash from Receivables $0 $9 $277 $945 $1,968 $2,941 $3,726 $4,461 $4,948 $5,474 $6,054 $6,626
Subtotal Cash from Operations $1,020 $3,653 $8,017 $12,605 $16,772 $20,721 $23,446 $26,281 $29,088 $31,914 $34,434 $36,746
Additional Cash Received

Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Received $1,020 $3,653 $8,017 $12,605 $16,772 $20,721 $23,446 $26,281 $29,088 $31,914 $34,434 $36,746
Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Expenditures from Operations

Cash Spending $3,500 $3,500 $3,500 $4,000 $4,000 $4,000 $4,500 $4,500 $4,750 $5,250 $5,250 $5,250
Bill Payments $167 $4,963 $3,806 $5,188 $7,705 $10,211 $12,028 $12,136 $13,407 $14,123 $15,020 $16,479
Subtotal Spent on Operations $3,667 $8,463 $7,306 $9,188 $11,705 $14,211 $16,528 $16,636 $18,157 $19,373 $20,270 $21,729
Additional Cash Spent

Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Long-term Liabilities Principal Repayment $1,458 $1,469 $1,480 $1,491 $1,502 $1,513 $1,525 $1,536 $1,548 $1,559 $1,571 $1,583
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Page 6
Appendix
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $5,125 $9,932 $8,786 $10,679 $13,207 $15,724 $18,053 $18,173 $19,705 $20,932 $21,841 $23,312
Net Cash Flow ($4,105) ($6,280) ($769) $1,926 $3,564 $4,997 $5,393 $8,108 $9,382 $10,982 $12,593 $13,434
Cash Balance $39,895 $33,615 $32,846 $34,772 $38,337 $43,334 $48,727 $56,835 $66,217 $77,199 $89,792 $103,227
Page 7
Appendix
Table: Balance Sheet
Pro Forma Balance Sheet

Assets Starting Balances
Current Assets
Cash $44,000 $39,895 $33,615 $32,846 $34,772 $38,337 $43,334 $48,727 $56,835 $66,217 $77,199 $89,792 $103,227
Accounts Receivable $0 $255 $1,158 $2,816 $4,786 $6,519 $8,023 $9,227 $10,221 $11,308 $12,444 $13,485 $14,388
Inventory $5,000 $5,000 $4,600 $3,583 $3,320 $4,130 $5,300 $5,795 $6,540 $7,035 $7,530 $8,450 $9,575
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $49,000 $45,150 $39,373 $39,245 $42,878 $48,986 $56,656 $63,748 $73,596 $84,561 $97,173 $111,727 $127,190
Long-term Assets
Long-term Assets $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000
Accumulated Depreciation $0 $83 $167 $250 $333 $417 $500 $583 $667 $750 $833 $917 $1,000
Total Long-term Assets $10,000 $9,917 $9,833 $9,750 $9,667 $9,583 $9,500 $9,417 $9,333 $9,250 $9,167 $9,083 $9,000
Total Assets $59,000 $55,067 $49,206 $48,995 $52,545 $58,569 $66,156 $73,165 $82,929 $93,811 $106,340 $120,810 $136,190
Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
Current Liabilities
Accounts Payable $0 $4,838 $3,636 $4,934 $7,367 $9,810 $11,625 $11,690 $12,938 $13,624 $14,472 $15,890 $17,091
Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Current Liabilities $0 $4,838 $3,636 $4,934 $7,367 $9,810 $11,625 $11,690 $12,938 $13,624 $14,472 $15,890 $17,091
Long-term Liabilities $60,000 $58,542 $57,073 $55,593 $54,102 $52,600 $51,086 $49,562 $48,025 $46,478 $44,918 $43,347 $41,764
Total Liabilities $60,000 $63,380 $60,709 $60,527 $61,469 $62,410 $62,711 $61,252 $60,963 $60,101 $59,390 $59,237 $58,855
Paid-in Capital $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000 $35,000
Retained Earnings ($36,000) ($36,000) ($36,000) ($36,000) ($36,000) ($36,000) ($36,000) ($36,000) ($36,000) ($36,000) ($36,000) ($36,000) ($36,000)
Earnings $0 ($7,313) ($10,503) ($10,533) ($7,924) ($2,841) $4,445 $12,913 $22,966 $34,709 $47,950 $62,574 $78,335
Total Capital ($1,000) ($8,313) ($11,503) ($11,533) ($8,924) ($3,841) $3,445 $11,913 $21,966 $33,709 $46,950 $61,574 $77,335
Total Liabilities and Capital $59,000 $55,067 $49,206 $48,995 $52,545 $58,569 $66,156 $73,165 $82,929 $93,811 $106,340 $120,810 $136,190
Net Worth ($1,000) ($8,313) ($11,503) ($11,533) ($8,924) ($3,841) $3,445 $11,913 $21,966 $33,709 $46,950 $61,574 $77,335
Page 8

Martial Arts School Business Plan

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Martial Arts School Business Plan

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Copyright Palo Alto Software, Inc., 1995-2009 All rights reserved.

Upon request, this document is to be immediately returned to _______________.

This is a business plan. It does not imply an offering of securities.

1.0 Executive Summary.....................................................................................................................1

1.0 Executive Summary

1.3 Keys to Success

Implement a solid budget and business plan.

2.0 Company Summary

2.1 Company Ownership

2.2 Start-up Summary

Table: Start-up Funding

Liabilities and Capital

Loss at Start-up (Start-up Expenses) ($36,000)

Total Capital and Liabilities $59,000

Total Funding $95,000

Total Requirements $95,000

2.3 Company Location

surface like the edge of the hand or the heel of a foot.

3.1 Tiny Tots Taekwondo Program

Class will be held in the early evening and on Saturday

3.2 Basic Program

3.3 Black Belt Club Program

3.4 Master Club Program

Single Ssahng Jeol Bong

Joint Manipulation (Level I, II)

3.5 Belts And Rank

CATISC SONGAHM TAEKWONDO BELTS (RANKS)

Camouflage (Camo) Belt

4.0 Market Analysis Summary

4.1 Market Segmentation

Our County Population 251,377 Neighboring County Population 440,888

Under 5 years old 13,441 5.3% 22,970 5.2%

Table: Market Analysis

Chart: Market Analysis (Pie)

4.2 Target Market Segment Strategy

Target market breakdown is as follows:

4.2.1 Market Needs

4.2.2 Market Trends

4.2.3 Market Growth

4.3 Service Business Analysis

4.3.1 Competition and Buying Patterns

Potential members are most aware of a do-jahng's physical existence because:

1. The marketing activities (50%)

4.3.2 Competing Martial Arts School's and Health Clubs

5.0 Strategy and Implementation Summary

Special emphasis will be placed on these age groups:

5.1 Competitive Strengths and Weaknesses

5.2 Marketing Strategy

Show and Tell

5.2.1 Positioning Statement

5.2.2 Pricing Strategy

5.2.3 Promotion Strategy

5.2.4 Marketing Programs

5.2.5 Strategic Alliances

5.3 Sales Strategy

5.3.1 Sales Forecast

Table: Sales Forecast

Direct Cost of Sales Year 1 Year 2 Year 3

Chart: Sales Monthly

Chart: Sales by Year

Milestone Start Date End Date Budget Manager Department