Application to the Twickenham Challenge June 2005 (Amended December 2005)

BUSEN Martial Arts and Fitness Centre

Torkildsen Barclay Wrest Park Silsoe Beds MK45 4HS Tel: 01525 754898 Fax: 01525 754366 Email: office@torkbarc.com www.torkbarc.com

BUSEN Twickenham Challenge Application

CONTENTS
1. WHY THIS APPLICATION IS BEING MADE.............................................4

Sport and Leisure in the UK................................................................................................... 4

The BUSEN Club ...................................................................................................................... 4
The Club under Threat........................................................................................................... 5
A Vision for Growth ............................................................................................................ 6
Expiry of Lease.................................................................................................................... 6
The Twickenham Challenge ................................................................................................ 6

2.

THE MARKET CONTEXT ..........................................................................7

Strategic Importance............................................................................................................ 7
The Market for the Busen ...................................................................................................... 8
Competition............................................................................................................................ 8
SWOT Analysis ......................................................................................................................... 9
Strengths.............................................................................................................................. 9
Weaknesses ........................................................................................................................ 9
Opportunities.................................................................................................................... 10
Threats ............................................................................................................................... 10
Summary ............................................................................................................................... 10

3.

WHAT IS BEING PROPOSED ................................................................11

Schedule of Accommodation........................................................................................... 11
Ground Floor..................................................................................................................... 11
First Floor ............................................................................................................................ 12
Capital Cost.......................................................................................................................... 13
Capital Funding ................................................................................................................... 13
Project Development.......................................................................................................... 13

4.

HOW THE PROJECT WILL BE DELIVERED..............................................14

Primary Aim ........................................................................................................................... 14

Establishing the Corporate Structure ................................................................................ 14
Programming and Opening............................................................................................... 14
Management and Staffing ................................................................................................ 15
General Manager............................................................................................................ 15
Martial Arts Manager ...................................................................................................... 15
Martial Arts Coaches....................................................................................................... 15
Reception ......................................................................................................................... 15
Cleaners ............................................................................................................................ 15
Fitness Manager ............................................................................................................... 16
Specialist Activities........................................................................................................... 16
Accounting and Financial Management ................................................................... 16
Maintenance.................................................................................................................... 16
General ............................................................................................................................. 16
Marketing and Promotion .................................................................................................. 16

5.

FINANCIAL ESTIMATES ........................................................................17

Income Projections - Current Position and Future Growth............................................ 17

Memberships and Joining Fees ..................................................................................... 17
Dance and Aerobics....................................................................................................... 18
Catering ............................................................................................................................ 18
Treatment Rooms............................................................................................................. 18
Expenditure Projections ...................................................................................................... 18
Staffing Estimates ............................................................................................................. 18
Premises Costs .................................................................................................................. 18

BUSEN Twickenham Challenge Application

NNDR.................................................................................................................................. 18
Profit and Loss....................................................................................................................... 19
Sensitivity and Risk................................................................................................................ 19

6.

SUMMARY AND CONCLUSION ..........................................................20

Appraisal Criteria ................................................................................................................. 20

Public Benefit.................................................................................................................... 20
Financial Viability and Economic Fundamentals ....................................................... 21
Compatibility with Wider Long Term Scheme ............................................................. 21
Deliverability ..................................................................................................................... 21
Value for Money and Sustainability .............................................................................. 22
Scarcity and Resource Allocation ................................................................................ 22
Congruence with Policy Framework ............................................................................ 22
Synergy and Regenerative Benefits ............................................................................. 22
Level and Type of Recipients......................................................................................... 22
Conclusion ............................................................................................................................ 22

BUSEN Twickenham Challenge Application

1.

WHY THIS APPLICATION IS BEING MADE

Sport and Leisure in the UK The BUSEN Club

1.1 In 1876 the Anglo Japanese Ju Jitsu and Boxing Club first opened its doors in Red Lion Square, Soho. 1.2 The club remained here until the early 1900s when it relocated to Notting Hill Gate. In 1929 the club moved to Richmond where it stayed for nearly 60 years. Its last move was in 1985 when it transferred the short distance to the centre of Twickenham and its current premises. The club has therefore been serving the residents of the borough for over 75 years. 1.3 The clubs focus is on providing health and wellbeing to the local community through its holistic approach to the disciplines of the martial arts, provision of fitness activities, and its attraction to a diverse mix of people, particularly young people and women. These groups are key target groups at national and regional level for increasing participation in sport and fitness based activities. The club offers a wide range of martial arts, self defence and fitness activities, which include: Karate Ju Jitsu Kendo Iaido Jodo Judo Naganata Tai chi Yoga Womens Self Defence Fitness and resistance training

1.4 Some key facts about the club are: It has 700 paid up members, direct links through the members to over 2,000 parents, carers and family members, and contact with over 7,000 children through its local schools outreach programme (see below). 65% of the members are under 18 and 60% are female, a high proportionate representation in both groups and one that demonstrates the importance of the Busens role in attracting and encouraging participation amongst key target groups.
BUSEN Twickenham Challenge Application

The club offers special rates to encourage participation by disadvantaged families, offering the opportunity to those that may otherwise be socially or financially excluded to take part on an equal footing with their more affluent peers. Again this approach meets key social inclusion goals at national, regional and local level. There are 50 to 60 classes a week run at the Busen centre The club provides outreach and taster activities at 5 schools within the Borough, with a further initiative at 24 schools establishing martial arts sections linked to the club and the potential to develop this further. The club works with the Councils Sports department providing activities and sessions for people with disabilities, the Judo Federation for the Blind and a school for autistic children The clubs members won 28 medals at the last English International Judo Championships 5 members of the club are in the British Karate Squad and 9 are in the English Karate Squad The club has represented the London Borough of Richmond upon Thames in the London Youth Games for the past 18 years There are 32 professional instructors at the club, most of whom are former English, British, European or World Championship medallists The club is a Regional, National and International Grading Centre and attracts participants from throughout the UK and abroad to the Twickenham area, bringing both the benefits of promoting Twickenham and contributing to the local economy. The club is the Headquarters of the United Kingdom Seiki Juku Karate Organisation (UKSO), one of the largest member groups within the English Karate Governing Body Busen is accredited by the City and Guilds as an NVQ Centre for Karate

The Club under Threat

1.5 The strengths of the club are apparent for all to see. It provides a unique environment for families, schoolchildren and adults to pursue sport and well being linked to a holistic and disciplined philosophy of life. It is non-discriminatory, encouraging participation by less advantaged families and children. It is a centre of excellence, providing the opportunity for local people to pursue their aspirations and perform at the highest levels of the sport. It provides role models for its members and the opportunity for them to mix with and watch the top performers. As a UKSKO regional centre it provides advanced classes, squad training sessions and gradings, and UKSKO competitions. 1.6 Yet despite these great strengths and major achievements, the Busen club is under threat. The first of these threats is a weakness borne of its success its Vision for Growth The second is more fundamental the expiry of its lease.

BUSEN Twickenham Challenge Application

A Vision for Growth

1.7 The clubs vision is to build on its track record of success and results; to offer more opportunities to residents of the borough to participate in a range of martial arts, well being and associated activities; to increase participation through its classes, sports development programmes and club/school links. The club has its roots firmly fixed within the Twickenham community and wishes to continue to expand and develop its community ethos and local involvement. The club wants to offer more classes in health and well being related activities such as yoga, keep fit, Pilates, and aerobics. It wishes to provide better, larger and more diverse gym and fitness training facilities both for the many participants and competitors at the centre and for the local community who want accessible and affordable facilities. The club wants to enhance its offer and service through the provision of specialist sports related and holistic treatments. Lastly, the club wishes to attract participants from the very earliest age, to get them active, and teach primary motor skills and balance. This will be facilitated through toddlers gymnastics sessions and courses. 1.8 However, these objectives are restricted by the limited nature of the existing facilities at the Busen centre. The building is old and confined to a reception, one dojo and a small weights room. In this context the achievements of the club are even more remarkable. 1.9 In order to develop and grow the club needs additional spaces for both classes and competition, and improved and modern facilities. These cannot be accommodated within the existing footprint of the centre.

Expiry of Lease
1.10 The second, and major threat to the future of Busen is the expiry of the clubs lease and the desire of the owner of the property to subject it to development. This has two implications: a) The club may not be able to find suitable replacement facilities, and certainly not facilities that could provide for the clubs expansion; b) If it can these facilities may not be in Twickenham, thereby removing a vibrant and thriving element from the centre of the town and threatening the local links with schools and other organisations that have been developed over the years

The Twickenham Challenge

1.11 The Twickenham Challenge offers a very real opportunity to address these threats and provide a new, modern and expanded operation that will increase participation, offer a greater variety of activities for the residents and workers in Twickenham, and provide a regional centre of excellence of which the Borough can be proud.

BUSEN Twickenham Challenge Application

2.

THE MARKET CONTEXT

Strategic Importance
2.1 This application is not being made in a vacuum or on the basis of an individual vision, but as a means of pursuing important strategic outcomes at national, regional and local level. 2.2 In December 2002 the Prime Ministers Strategy Unit and DCMS jointly published a report called Game Plan, which included a target for increasing the proportion of the population in England that were reasonably active from around 30% in 1998 to 70% in 2020. This was not an idle aspiration, but one founded on the levels of participation in other countries. The Game Plan set out two overarching objectives: A major increase in participation in sport and physical activity, primarily because of the significant health benefits and to reduce the growing costs of inactivity; and A sustainable improvement in success in international competition.

2.3 The report highlighted the importance of encouraging participation by young people as the more sport and physical activity participated in at a younger age, the more likely that participation will continue into adult life. It also highlighted that women are 19% less likely to take part in sport and physical activity than men, and that the impact of social group is significant, with levels of participation almost three times higher for professionals than manual groups. In all these instances the Busen is positively addressing these issues, with its high level of participation by young people and women, and its proactive approach to pricing for disadvantaged families. Its success in competition and as a national and international grading centre, also means it is playing an important role in achieving the second overarching objective of Game Plan in achieving success in international competition. 2.4 In April 2004, Sport England published the Framework for Sport in England, which set out the agenda to work towards achieving the main aims of Game Plan. Further plans have been produced at regional level of which the London Plan for Sport and Physical Activity 2004-2008 is the regional strategy endorsed by the major regional and national sport and health bodies. The strategy aims for seven key outcomes: Increasing participation in sport and active recreation Improving levels of performance Widening access Improving health and well being Creating stronger and safer communities Improving education Benefiting the economy
BUSEN Twickenham Challenge Application

2.5 On all counts the Busen makes a contribution. Its vision is to be able to expand the opportunity to do so and the scope and number of participants involved. 2.6 At a local level the Councils Community Plan has a key objective of increasing participation in sport and leisure. The overall role that Busen contributes as a player in the delivery of strategic objectives at all levels cannot be over emphasised. As an important community facility it also has a national role.

The Market for the Busen

2.7 Turning to the strength of the market for the Busen and its activities, the Sport and Leisure section of the 2002 General Household Survey (the most recent GHS to include this data) shows that, after walking and swimming, keep fit and yoga are the most popular activities undertaken by 16 year olds and above, with 21.5% of the sample having taken part in the previous year, and 12% within the previous four weeks. Weight training was almost as popular, whilst self defence activities were more popular than many other well known sports such as rugby, basketball, netball, athletics and gymnastics. The 1999 National Survey of Young People and Sport in England shows that martial arts is a popular activity, with 8% of 6 to 11 year olds regularly participating. 2.8 The State of the Industry UK Fitness Report for 2005 shows that 11.8% of the population are either members or registered gym users of one of the 2,890 private fitness clubs or one of the 2,596 public sports centres. The penetration rate has been growing year on year and is still some way short of the current 15.6% rate for the US population, indicating substantial room for growth. This growth combined with the popularity of yoga and aerobic activities indicates the importance of the mixed community offer provided by the Busen, and one that its proposals for the Twickenham Challenge will develop further. 2.9 One of the more notable changes in the sports market in the past five years has been the growth of the spa market. This relates to holistic therapies and treatments that relax as well as energise the individual. Examples range from Champneys at the top end through to small spa facilities within private health and fitness facilities. The growth in this sector has not yet been fully documented but is reflected in the significant growth in the number of these facilities, the introduction of specialist spa market publications, and the development of spa specific conferences and exhibitions. The market growth reflects public interest in alternative therapies and activities, and the Busens holistic approach to physical and health development positions it strongly to capitalise on this growth market.

Competition
2.10 The Twickenham Challenge proposals are not predicated upon the development of a completely new concept, but are developed by building upon a sound and successful existing business base. The risk elements of the proposals are therefore largely minimised. 2.11 The current Busen club offers a specialist martial arts centre. Such centres are not usually developed as highly commercialised venues, but are often driven by the interest and commitment of the coaches and owners, who are themselves former or current martial arts practioners. Given the nature of these clubs it is unlikely that another such club would set up in competition within the immediate catchment of the Busen. The only permanently equipped dojos within the south west sector of London are:
BUSEN Twickenham Challenge Application

The Anglo-Japanese Centre, Sandycombe Road, Kew, Richmond a small centre that also forms part of the UKSKO and is therefore a complimentary rather than competing facility; Budokwai Centre, Fulham headquarters of the British Judo Association; Yawara Centre, Merton Road, Wandsworth contains a UKSKO section; The Busen Martial Arts and Fitness Centre itself.

2.12 The Centre therefore serves its own significant catchment. 2.13 The other product offered by the Busen club is its health and fitness provision. Currently this is a small area with largely outdated equipment. Nonetheless it is a popular facility for training for competition and general public use. If the club were to be relocated and rebuilt as part of the Twickenham Challenge, then a larger and modernised facility would be provided and its general community use extended. Part of the basis of this proposal is the lack of any meaningful public fitness provision to serve residents and workers in the Twickenham town centre area. The Sport England Active Places database identifies the nearest fitness facility being at St. Marys College, whilst the next nearest are at Richmond upon Thames College and Cannons Health Club, both near the Stoop Memorial Ground. The Busen club would offer a budget priced community facility to serve its immediate local catchment. The pricing will be geared very much towards affordable, community, public sector pricing and even if private sector competition were to be developed closer to the Busen its pricing and community ethos will enable it to retain its core market.

SWOT Analysis
2.14 The Busen, therefore, has considerable strengths and opportunities, whilst it is alos mindful of its weaknesses and the threats it faces.

Strengths
Popular club with its roots based firmly within the local community Mixed portfolio of activities that provide holistic personal and physical development Town centre location Enthusiastic and experienced management and instructors Sound financial base Facility of regional and national importance Strong links to schools and educational establishments Ability to attract key target groups of women and young people
BUSEN Twickenham Challenge Application

Weaknesses
Limited space to develop community programme Old and outdated facilities

Opportunities
To expand and develop the existing programme of activities To offer new and different activities and facilities within the overall ethos of the club To broaden the market base, attracting an even greater cross section of the local community, including middle aged and older people To develop further outreach and educational programmes

Threats
Loss of the clubs town centre base with a subsequent decline in local membership and participation Potential complete run down of activities if no alternative venue can be found Significant change in market trends in participation Significant local competition

Summary
2.15 The Busen already has a sound user base that is drawn from the local community. The market that it serves in terms of holistic body and mind activities is a strong one and is predicted to continue growing within the foreseeable future. 2.16 Strategically, the Busen is helping to meet national, regional and local goals and is providing for key groups within the local community. It attracts people from all over the UK and internationally to its grading and other events, contributing both to the reputation of Twickenham and the Borough and to the local economy. 2.17 The Busen proposals, set out below, will build on and develop this success to the benefit of the Borough, its residents and its workers.

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3.

WHAT IS BEING PROPOSED

3.1 The proposed Schedule of Accommodation for the new club is set out below.

Schedule of Accommodation
3.2 The specific requirements and context of the Twickenham Challenge site need to be considered within the overall development of proposals for a new Busen centre. An initial schedule of accommodation was therefore drawn up in order for the project architects to prepare outline plans which could then be reviewed from an operational perspective. Changes were subsequently proposed and made, and the scheme refined to ensure a workable design from which preliminary capital costs could be calculated. The original schedule of accommodation brief can be found at Appendix 1. 3.3 As a result of the above process the new Busen club will contain the following main facilities. A site plan, ground and first floor plans, and elevation for the new centre can be found at Appendix 2.

Ground Floor
Entrance/Reception/Caf 3.4 Prior to entering the building there will be a cycle storage area. Many of the clubs adult users travel to the centre by bicycle and have to leave their bikes either outside or in the corridor entrance to the current reception. This storage area provides dedicated and secure storage for bicycles and will further encourage travel to the centre by more environmentally sound transport. 3.5 A separate access is provided to the first floor where the fitness, dance/aerobic facilities are located, to avoid over crowding of the main reception and circulation areas at peak times. The new fitness facilities (see below) will be part of the overall Busen and its healthy lifestyle approach, but will have their own identity, attracting new users from the local area. 3.6 The main entrance, via double doors, is to a large circulation area. This is necessary, particularly at peak times or when gradings and competitions are taking place and there are a large number of participants to accommodate. 3.7 A single counter reception/caf servery is provided with access to an office and storage. The design allows staff to undertake both reception and caf duties, particularly at off peak times, thus ensuring flexible use of resources. 3.8 A caf area provides seating for over 50 people, and there are views into the dojo. At the existing centre there is both poor circulation and limited refreshment facilities. This area will significantly enhance provision, and will offer value for money, quality healthy fare that sits with the overall ethos of the club Dojo 3.9 The new Dojo measures 16.5m x 15m (247.5m2) suitable for training, practice and regional competition in a range of martial arts. The facility is large enough to create separate areas for a range of classes and is larger than the hall at the existing club. The facility therefore provides both greater capacity and flexibility than is currently offered by the present location.

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3.10 The Dojo is serviced by a large storage area. Meeting Room/Crche 3.11 A room that will be used as both a meeting room for the club, coaches and local organisations, and will double as a sessional crche, is provided close to reception. This will enable parents and carers to participate, even when they have their young children to look after. Steam Room and Treatment Rooms 3.12 There are two treatment rooms for sports injuries, massage and holistic therapies. A steam room is provided adjacent to these rooms for therapeutic recovery for competitors, participants and use by the general public Changing and Toilets 3.13 Separate male, female and disabled changing, toilet and shower provision is available adjacent to the Dojo. 3.14 In addition there are stand alone male and female WCs for spectators and users of the caf area.

First Floor
3.15 The First Floor is accessible by either stairs or a 13 person lift. Fitness Room 3.16 A Fitness Room of 181.5m2 is provided on the first floor. This is substantially larger than the existing and dated fitness room and will provide a modern facility for the local community and workers that will be priced below most commercial clubs offering an attractive low cost facility within the centre of the town. The space can accommodate some 40 equipment stations which will provide a mix of Cardio Vascular and resistance training equipment. Free Weights Area 3.17 Adjacent to, but separate from, the Fitness Room is a Free Weights Area of 81.5m2. This area is for serious trainers, competitors, and those who prefer a free weights environment. It enables separate and specialist training programmes to be run for serious athletes, without impinging upon or restricting general health related community use. Dance/Aerobics Studio 3.18 A studio of 190m2 is provided adjacent to the Fitness Room. This will be used for dance, aerobics, yoga, and a wide variety of exercise, fitness and health related classes. The size and height of the studio also enable it to be used for additional martial arts and self-defence activities, providing a flexibility to the new centre that dos not currently exist in the present facility. Toilets 3.19 Additional disabled and male/female toilets are provided on the First Floor.

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Capital Cost
3.20 Preliminary capital estimates for the construction of the new Busen club as a Twickenham Challenge facility have been prepared by the specialist Quantity Surveyors appointed by the London Borough of Richmond upon Thames. At this stage the estimates are subject to a range of caveats as set out in the email in Appendix 3. On this basis the capital cost of the project, inclusive of fees, is in the region of 2.8m.

Capital Funding
3.21 Extensive consideration and investigation has been undertaken into the potential sources of funding for the new Busen. Clearly until a project is firmly on the drawing board many funding agencies will not consider or commit to applications. However, set out below is a list of what is felt to be a realistic and attainable list of funders and funding amounts. The Busens entire approach to sports development and community use presses many of the buttons for these funding sources and will ensure a high priority for this project. Direct Contribution from existing Busen Contribution from developer of existing Busen site Foundation for the Sport and Arts London Marathon Bridge House Trust Wates Foundation Active England Borrowing HPAC RPLC TOTAL 150,000 100,000 40,000 50,000 40,000 40,000 300,000 1,000,000 50,000 50,000 1,820,000

3.22 In addition there are 68 London based childrens charities that can be approached, the Childrens Fund, Community Resource Fund, Sportsmatch, and others listed by the CCPR and Sport England where additional funding of between 5k to 40k per charity may be possible.

Project Development
3.23 Timing and funding plans for the Twickenham Challenge will depend on the final delivery date of the site development. The Busen is flexible about the onsite delivery in terms of specific location and layout, and is prepared to work closely with the long term developer to ensure that the overall design and appearance of the complete development maximises the benefit to the community and locality and ensures a harmonious and aesthetically acceptable project for what is a sensitive and important location.
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4.

HOW THE PROJECT WILL BE DELIVERED

Primary Aim
4.1 The primary aim of the new Busen martial Arts and Fitness Centre will be: To provide an affordable, community based facility that gives young people and adults irrespective of social class, gender, ethnicity or financial circumstance the opportunity to develop mental and physical well being through participation in martial arts, fitness and related activities. 4.2 The delivery of this aim will be through the programming, pricing, marketing and new facility mix that will be adopted for the new centre as set out in the preceding and following sections. These are primarily an extension of the successful formula already in place at the Busen Martial Arts and Fitness Centre, with additions to the product mix that enable the extended delivery of the overall aim for the Centre.

Establishing the Corporate Structure

4.3 The Busen Martial Arts and Fitness Centre is operated at present as a company limited by guarantee. Given the primary aim is to provide services to the whole community in an affordable way, the proposed Twickenham Challenge facility would be established as a company limited by guarantee with charitable status. This means that the surpluses generated by the centre would be reinvested into the facilities for the benefits of its users rather than private gain. Charitable status would also confer benefits of relief on NNDR and VAT, thereby enhancing the financial viability of the centre.

Programming and Opening

4.4 The management and staffing structure will be determined by the facility mix and the programming and operational hours of the centre. The current focus of the Centre is largely on after school and evening provision, and weekend delivery. With the extended facilities and the widened approach to class and course mix, the new centre will be open throughout the day for parents and toddlers classes, senior citizen activities, keep fit, indoor bowls, yoga, fitness room and therapies. 4.5 An indicative programme of proposed activities can be found at Appendix 4, together with the current range of special events and activities staged at the Busen centre which it is expected will be reflected at the new facility. The proposed hours of opening are: Martial Arts and Activities: Fitness Room: Mon Fri Sat/Sun Mon-Fri Sat/Sun 10.00 - 22.00
09.00 17.00
07.00 22.00 09.00 17.00

4.6 The caf will offer a service through out the opening hours of the centre, whilst the treatment rooms, crche and meeting rooms will be programmed according to demand and to synchronise with the broader programme of activities. 4.7 The activity programme shows a sensible level of growth, trying out new sessions in line with the anticipated market. The programme will be monitored, tested,

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adapted and expanded as its success becomes clearer. Specific additions to the current club programme that will be facilitated by the new facilities include: Parent and Toddlers gymnastics programme two mornings a week Evergreen fitness and activity programmes for the more mature members of the community two sessions a week Extension of junior and adult martial arts course programme by 30% New 20 class per week aerobic/fitness/yoga programme New dance programme specifically targeted at young girls and women Rehabilitation fitness programmes for referred cardiac patients.

4.8 The above is in addition to the extensive programme of martial arts classes, competitions, gradings, and outreach programmes that will continue to be delivered through the new Centre.

Management and Staffing

4.9 The proposed management and staffing structure for the club is as follows:

General Manager
4.10 The General Manager will be responsible for the overall operation, planning, marketing, finance and resourcing of the new centre. A crucial element of their role will to be ensure integrated working of all elements of the centre. The CV of the General Manager is given in Appendix 5.

Martial Arts Manager

4.11 The Martial Arts Manager will be salaried including teaching hours of up to 10 classes per week. The role will coordinate the class programme, coaches and events.

Martial Arts Coaches

4.12 The coach base is already in place. Coaches will be paid according to the number of classes they take.

Reception
4.13 Receptionists will cover the opening hours of the centre on a shift rota. The caf will be open from 10am 10pm, staffed through reception but with additional staff at peak hours. Reception staff will also undertake administrative duties.

Cleaners
4.14 Two cleaners will be required to work two hours a day each to provide basic cleaning. Additional spot cleaning will be undertaken by the staff on site.

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Fitness Manager
4.15 A Fitness Manager supported by fitness instructors will operate the fitness room. Their roles will include induction of new members, establishing programmes for users, ensuring all equipment is used correctly for the safety of users and that equipment is well maintained.

Specialist Activities
4.16 Special classes parents and toddlers, yoga etc. will be operated through hire to independent coaches with a straight income share arrangement that will incentivise performance.

Accounting and Financial Management

4.17 Accounting and financial management will continue to be outsourced.

Maintenance
4.18 Where appropriate specialist maintenance will be through external maintenance contracts. Day to day maintenance requirements will be undertaken by an onsite` maintenance operative.

General
4.19 All posts needing formal qualifications (martial arts and gym staff) will be hired with those qualifications. 4.20BUSEN has a simple philosophy for the recruitment and retention of personnel which is to hire the best and generally pay above the market rate. Staff are involved in the decision making process, and the needs of the staff are taken into full consideration before actions are implemented. For coaching staff the opportunities to develop as a coach and a participant are extensive with many current coaches tied to other international clubs and events. 4.21Proposed rates of pay and hours can be found in the more detailed financial plan which is attached at Appendix 6.

Marketing and Promotion

4.22 With a new building and new facilities it is intended to undertake a promotional campaign upon opening. Pre-opening work will focus on tours and visits by existing members who will be transferring to the new centre and who will act as ambassadors for the new facility providing referrals for new memberships. 4.23 As a charitable community facility access to public websites and outlets will also be sought to promote the centre. 4.24 The launch of the centre will include an open day with events and activities, and will be supported by local advertising and outreach work. 4.25 The ongoing promotion of the new Centre will continue to focus on a strong community approach, including: Outreach work in local schools
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Demonstrations and come and try activities at local events such as the Richmond Festival of Sport, Richmond Horse Show, Twickenham Festival etc. Regular advertising and editorial in local free newspapers and LBRUTs out and about supplements Partnership with LBRUT Leisure Services in supporting neighbourhood centres and Sports Development Teams holiday projects.

5.

FINANCIAL ESTIMATES

Income Projections - Current Position and Future Growth

5.1 The Busens current Profit and Loss Account for the year ended 30th November 2004 shows a gross income of 182k and a profit on ordinary activities before taxation of 46k. Details are given in Appendix 6. In broad terms income is divided as follows: Memberships and Joining Fees Courses and Gradings Yoga and Weights Sales of Goods and Food 100k
37k
1k
45k

5.2 The new centre created through the Twickenham Challenge will have the potential to generate substantially increased income in the following areas.

Memberships and Joining Fees

5.3 Current membership stands in the region of 700 members, the majority of which are members for Martial Arts participation. The new centre will provide the opportunity to increase capacity in this section, potentially by 300 new members. 5.4 The second main area of membership, which is fundamentally a new product within the Busen, is the fitness room. With a total area of fitness and weight training comprising 263m2, over 50 equipment stations can comfortably be accommodated. The business plan assumes a fitness membership of 500 people, which is at the conservative end of industry estimates for a facility of this size. This caution is partly as a result of the intention to operate the aerobic/dance studio class programme as an outsourced operation, thereby reducing potential memberships of combined fitness/dance users, and partly as a result of wishing to maintain the community philosophy of the Busen centre where a commercial out and out hard sell of the fitness element would be out of place. 5.5 The overall membership projection for the new Busen Centre is therefore 1,500. membership prices and joining fees will be consistent across the club, irrespective of the reason for a member joining. For the fitness it has been assumed that there will be a pre-sell achieving an opening membership of 125, with a steady growth to the target 500. Attrition rates have been calculated using industry norms. 5.6 In assessing the growth in income for the Martial Arts element of the club, cognisance has been taken of the current payment method by Standing Order has meant that membership fees for longer standing members has not been increased in line with inflation. This has been a deliberate policy of the club, and

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therefore the base starting point for membership income is the actual income figure for 2004, rather than a recalculation of membership multiplied by price.

Dance and Aerobics

5.7 The new dance and aerobic room will generate income from a range of classes. Classes will be operated by independent instructors with the Busen taking a 20% share of gross income. A dance studio associated with a fitness centre in an area such as Twickenham would typically operate a minimum 40 class a week programme. Once again a more conservative approach has been taken in estimating figures as the programme will rely on the availability of independent instructors. A 25 class a week programme has therefore been used in estimates with and average attendance of 15 a class (some classes will be much larger, some smaller, and most will be affected by seasonal factors).

Catering
5.8 The improved catering facilities and the higher levels of use will lead to an improvement in turnover from this source. Estimates are based on known turnover from similar size dryside sports facilities.

Treatment Rooms
5.9 It is intended to appoint therapists on a rental basis for the treatment rooms. Initial estimates are based on rental values achieved in sports centres for similar facilities.

Expenditure Projections
Staffing Estimates
5.10 Staffing costs are the single largest element of expenditure and can be calculated with relative accuracy at this stage, given the proposed programme and facility mix. The assumptions regarding staffing have been given in section 3 above. Detailed calculations can be found in the financial plan attached at Appendix 6 and will be adequate to cater for both anticipated and additional demand

Premises Costs
5.11 The main element of premises costs will be utilities. Given the outline nature of the design at this stage, and the volatility of energy costs, the figures provided would need reviewing following further design work, and closer to the potential point of commissioning.

NNDR
5.12 It is intended that the new operating company will be given charitable status, thereby entitling it to 90% mandatory relief on NNDR with a further 10% discretionary relief possible. Estimates are based on the achievement of 100% relief.
BUSEN Twickenham Challenge Application

18

Profit and Loss

5.13 The table below summarises the projected profit and loss for the new Busen Centre for the first two years of operation. Projections are at current rates. Detailed calculations can be found in Appendix 6. Centre: BUSEN MARTIAL ARTS AND FITNESS CENTRE INCOME AND EXPENDITURE SUMMARY Income Dojo Dance Studio Treatment Rooms Memberships and Joining Fees Sale of Goods Food and Beverage TOTAL INCOME (NET OF VAT) Expenditure Salaries and Wages Other Payroll Costs Travel and Subsistence Catering Provisions Cleaning and Chemicals Promotion and Marketing Admin and Office Costs Telephones Insurance Licences Utilities NNDR Legal and Audit Interest and Bank Charges Building Maintenance Equipment and Maintenance Miscellaneous Fees and Services TOTAL EXPENDITURE NET PROFIT/LOSS Year One 39,830 11,968 20,000 256,194 44,000 19,149 391,141 Year One 289,535 2,300 12,000 25,260 500 10,000 4,700 4,000 4,943 3,500 12,000 5,000 5,867 2,000 21,500 403,104 -11,964 Year Two 53,106 15,957 20,000 383,466 44,000 25,532 542,062 Year Two 300,551 1,800 12,000 27,813 500 10,000 4,700 4,000 4,943 3,500 12,000 5,000 8,131 10,000 11,000 21,500 437,437 104,625
BUSEN Twickenham Challenge Application

Sensitivity and Risk

5.14 The profit and Loss projections show an operating loss in year 1 when investment in developing and promoting the Centre is not mirrored by an immediate growth in income. The loss will be covered through investment loans and overdraft facilities.

19

5.15 From year 2 onwards there is a healthy operational surplus. This will enable ongoing reinvestment in the Centre, replacement of major items of equipment, and contingency provision. 5.16 The main risks relate to income generation and utility costs. Even a 50% failure to achieve the modest targets for additional income from non membership sources would only result in a 28k reduction in income return. The main risk factor is therefore the level of membership income generated. The financial plan assumes full maturity in terms of membership growth only by the end of year 2, which means the full effect of membership income will not be felt until year 3, providing an additional financial buffer. As stated earlier the target of 500 members for the fitness area is modest for both the market and the size of facility, and the pricing strategy means that the centre is likely to remain competitive, even if additional competition enters the market. 5.17 An entrenched position would be where the Busens new facility generated little additional income from the Martial Arts operation and memberships, and this element of the operation continued at its existing, already successful level. The fitness and additional facilities would therefore need to generate enough income to cover the additional operating costs of the new centre which would be over and above the costs of the existing centre. The net possible additional expenditure that may need to be covered through non Martial Arts income could therefore be in the region of 70k to 100k per annum (10k additional maintenance, 10k additional utilities, fitness room staffing peak hours only of 42k, Licences of 3.5k). Even a poorly run fitness operation with substantial competition and a small market would be able to generate this level of income. Overall, therefore, the financial projections under the most likely scenario set out above appear to be robust.

6.

SUMMARY AND CONCLUSION

Appraisal Criteria
6.1 In terms of appraisal of the project, the following summarises the key points,

Public Benefit
6.2 The new Busen Centre that will be developed as part of the Twickenham Riverside development will offer: Martial arts and self defence activities for all ages and both genders within the local community, giving the opportunity to take part at beginners level, right through to national gradings and competitions; Outreach programmes of activities in local schools for local children; A community fitness centre for all ages that will provide state of the art participation and training provision for the local community and local workers, martial arts participants, and other sports people at affordable and competitive prices; Dance, yoga, aerobic , mother and toddler and senior citizen activities within the Dance/aerobic studio, offering a breadth of activities for a wide ranging market;
BUSEN Twickenham Challenge Application

20

Treatment rooms and steam room for sports injuries and holistic treatments and therapies; Creche facility to enable parents and carers to use the centre; Meeting room for local clubs, organisations and community groups; Healthy catering and produce in line with the healthy living ethos of the new facility. A centre of regional and national importance.

6.3 The centre will be operated as a charitable organisation that does and will contribute significantly to identified national, regional and local objectives as set out in strategies such as Game Plan, the London Plan for Sport and Physical Activity and the Borough Community Plan.

Financial Viability and Economic Fundamentals

6.4 Capital estimates of 2.8m have been provided by the Boroughs appointed architects. The proposed capital funding will come from a mixture of grants, contributions and loans as set out earlier in this submission. The funding bodies and the funding levels are firmly believed to be achievable and the Busens operation, outputs and outcomes are closely aligned with the funding goals of these organisations. 6.5 Revenue estimates are predicated upon a realistic, not optimistic, level of expectation, and the sensitivity analysis shows that there would need to be a significant variation from the business plan for the project to become unsustainable. The Busen in its current form has been trading successfully for many years. The expansion of its activities and addition to its facilities will add even greater stability to its financial position, whilst the benefits of charitable status will bring an additional financial cushion through NNDR relief and VAT benefits.

Compatibility with Wider Long Term Scheme

6.6 The Busen is currently a community facility within a mixed retail and residential town centre location. Since 1985 it has managed good relationships with its neighbours within this environment. It is important to the Busen that it is seen and becomes an harmonious part of the overall Twickenham Challenge development. Its product offering will be of benefit to both residents and workers that form part of the wider development scheme, and will contribute to their quality of life as well as that of the wider community.

Deliverability
6.7 The proposed project is exciting and innovative. It will bring new and expanded opportunities for sport and healthy lifestyles to the local community. Yet it is also the natural development of an existing business and service that has a long and successful track record. The skills, the management ability, a substantial part of the market, the vision, the growth over time, all already exist. Delivery is therefore in the hands of a team with a proven skill base and of a product with a proven market. The deliverability is therefore low on the scale of risk.

BUSEN Twickenham Challenge Application

21

Value for Money and Sustainability

6.8 The Busen offers benefits to the general public, young people, women, the less wealthy, and martial arts participants and competitors that are unquantifiable and rightly so - in purely monetary terms. Its 50 to 60 classes a week and special sessions alone can attract over 1,000 participants in any seven day period, and this is set to double with the realisation of the Twickenham Challenge project. 6.9 The longevity of the project can be questioned but the question would falter on the first response. The Busen has been in the Borough since 1929 and in the centre of Twickenham for 20 years. Its development as part of the Twickenham Challenge will increase its attraction and the breadth of its market for the foreseeable future.

Scarcity and Resource Allocation

6.10 The Busen is unique. It performs a unique role at local level and a major role at regional and national level. Its closure would leave a gap that would be largely impossible to fill. Its development would create a facility that it is unlikely that a commercial or public sector provider could or would replicate.

Congruence with Policy Framework

6.11 The proposed Busen development is strategically important, playing its role in tackling health improvement, social inclusion, safety, education, economic regeneration, and - not least - sporting agendas.

Synergy and Regenerative Benefits

6.12 The project will enhance the local economy by attracting large numbers of participant s and their parents to the town centre. It will bring national and international groups to the area with the resulting promotional and potential secondary spend benefits. It will encourage local workers to stay within the town centre for fitness and other activities offered by the Busen, rather than travel outside of the town centre to other facilities (with the associated travel and environmental impact of doing so). 6.13 The project is inclusive in all senses, with the Busens social pricing policy for disadvantaged families and the low cost membership prices aiming to attract all social stratas.

Level and Type of Recipients

6.14 Over the course of the year it is anticipated that the new Busen centre will attract over 100,000 attendances, directly representing some 3,000 to 4,000 individuals, indirectly encompassing some 8,000 family members, and quite separately involving up to 8,000 school children through outreach activities.

Conclusion
6.15 The Twickenham Challenge offers the opportunity to secure and develop what is an existing and extremely valuable community facility, that not only provides for local needs but has both a regional and at times international focus.

BUSEN Twickenham Challenge Application

22

6.16 The scheme is well thought through and viable, and would provide a service that warrants, and would do justice to, a landmark facility in the heart of Twickenham.

BUSEN Twickenham Challenge Application

23

Schedule of Accommodation

Appendix 1

BUSEN Twickenham Challenge Application

Appendix 1
Twickenham Challenge
BUSEN Schedule of Accommodation

The Dojo is to be designed as a training venue set to regional county club standards. These and general sports facility design guidance are set out in Sport Englands Design and Technical Guidelines: Judo, Ju Jitsu, Aikido, Karate and Kendo, Sports hall design, and Floors for indoor Sport. Listed below are the specific requirements for BUSENs new Dojo. A one-contest practice area 16.5m x 15m. Ceiling height min 16ft (6m) Ventilation to dissipate the heat build-up and humidity caused by the exertions of a combat sport. If natural ventilation is inadequate then powered ventilation must be installed. Background heating only 10 12.5C Artificial lighting rather than natural light. There should be an even illumination across the whole of the practice area, without direct or reflected glare. It is recommended that light fittings be recessed in the ceiling. Equipment storage a separate one-hour fire-rated enclosure vented to the external air and equipped with a smoke detection system. Room to possible house: 4 indoor bowls mat each 1.83 long x up to 0.5m diameter rolled, gymnastics apparatus with anchorage points and various martial arts apparatus. Fitness room an average 4.5m per piece of equipment with ceiling height 3.5m 4m. Mechanical ventilation or air-conditioning is required. Dance studio min 15m x 12m x 4.5m high allowing 6m2 per person. Wooden sprung floor to meet British Standard 7044 with high windows allowing plenty of natural light. Changing 1 x M, 1 x F with 3 shower cubicles in each and adequate toilet provision. Ceramic tiles must be used on all wall surfaces in showers and changing rooms with slip-resistant ceramic tiles on the floor. Should be equipped with high ceilings and rooflighting. According to Sport England guidelines fitness equipment

rooms require one changing space per 5m2 of floor space, while Aerobics studios require one space per 5 -10m2 x 2 for overlap. Steam room x 1 Treatment and first aid room x 2 Meeting room x 1 Reception and office with cafe and seating area Bike storage Crche

Appendix 2

Facility Plans

BUSEN Twickenham Challenge Application

Capital Estimates

Appendix 3

BUSEN Twickenham Challenge Application

1.1

Fw RC502-Twickenham Challenge- Bu'sen Dojo- Cost analysis Appendix 3 - Capital Estimate From: Torkildsen Barclay [office@torkbarc.com]
Sent: 20 June 2005 10:31
To: Ian Barclay
Subject: Fw: RC502-Twickenham Challenge- Bu'sen Dojo- Cost analysis
----- Original Message -----
From: "Lindsey Glushka" <LindseyGlushka@archadia.co.uk>
To: <franktperry@aol.com>
Cc: <office@torkbarc.com>
Sent: Monday, June 20, 2005 9:53 AM
Subject: RC502-Twickenham Challenge- Bu'sen Dojo- Cost analysis
> >
> > > >
> >
> >
>
> >
> > > >
> >
> >
> >
> >
> > >
> > > >
> >
> > > > >
> > >
> > >
> >
> >
> >
> Frank and Ian,
We have received a cost analysis from our consultant Tim Pearce on the
design completed by Archadia for the Twickenham Challenge. Please see the
message below:
Kind regards,
Lindsey Glushka
Received Fri 17/06/2005 09:30
I have used the BCIS square metre rates that I consider to best match this
development and have made adjustments to suit the site location and site
access requirements.
The costs are as follows:
Build Cost Fees Allowance Overall Cost 2,431,000.00
364,500.00
2,795,500.00

(Two Million, Seven Hundred and Ninety Five Thousand, Five Hundred Pounds,
Plus VAT)
The square metre rates are taken from an analysis of many different tender
prices, but it should be noted that many assumptions have been made at
this very early stage and the figures should be read in that light.
I have not included the following in my budget costings:
1. Loose furniture (desks, chairs, tables etc) or loose equipment (indoor
bowls mats, gym/weights equipment) but the rates used do include for
things like floor finishes, wall tiling and fixed benching in the changing
rooms etc.
2. Works to comply with any specialist conservation planning requirements
or sustainable energy provisions.
The budget costs assume a clean site (ie no decontamination works and no
demolitions).
The Fees allowance is based on 15%.
If you should have any queries, then please do let me know.
Regards,
Tim Pearce
Page 1

> > > > > > >

Fw RC502-Twickenham Challenge- Bu'sen Dojo- Cost analysis Quantity Surveying Tel: 0118 941 0904 Fax: 0118 943 3095
Mobile: 0777 588 5016
Email: timpearceqs@msn.com

Page 2

Programme of Activities

Appendix 4

BUSEN Twickenham Challenge Application

Appendix 4

Busen
6am 7am 8am

Dance/Aerobic Studio
9am 50+ Mothers and Toddlers Aerobics 10am 11am 12 noon Lunchtime Workouts Lunchtime Workouts Lunchtime Aerobics Workouts Lunchtime Workouts Lunchtime Aerobics Workouts Training Training 12 noon 1pm 2pm 3pm 4pm 5pm 6pm 7pm 8pm 9pm 10pm 11pm Aerobics, Step Martial Arts Aerobics, Step Martial Arts 6am 7am 8am 9am 10am 11am Yoga, Pilates 50+ Mothers and Toddlers Aerobics Yoga, Pilates 1pm 2pm 3pm 4pm Classes 50+ Children Courses Classes Children Courses Classes Children Courses Classes Children Courses Classes 5pm 6pm 7pm Martial Arts Workouts, Dance, Meetings, Martial Arts Workouts, Dance, Meetings, Martial Arts
Workouts, Dance, Meetings, Martial Arts

8pm

9pm

10pm

11pm

Monday Tuesday Wednesday Thursday Friday Saturday Sunday

Yoga, Pilates

Children Courses

Workouts, Dance, Meetings,

Women Only

Workouts, Dance Martial Arts

Proposed Range of workout Classes: Powerstep, Spinning, AbAttack, Flexercise, Body Tone, Body Pump, Self Defence, Hi Impact, Step, Dance and drama, Post natal

Proposed Range of Martial Arts Classes: Iaido, Kendo, Jodo, bo-jutsu, naginata, tai chi

Busen
6am 7am Instructor Training Instructor Training Instructor Training Instructor Training Instructor Training 8am

Dojo
9am 10am 11am 12 noon Lunchtime Martial Arts Mothers and Toddlers Gymnastics 50+ Indoor Bowls Mothers and Toddlers Gymnastics Adult Martial Arts Lunchtime Martial Arts Lunchtime Martial Arts Lunchtime Martial Arts Lunchtime Martial Arts 1pm 2pm 3pm 4pm Classes Children Courses Classes Children Courses Classes Children Courses Classes Children Courses Adult Courses Classes 5pm 6pm 7pm Classes Adult Courses Classes Adult Courses Classes 8pm 9pm 10pm 11pm 50+ Indoor Bowls Individual Lessons Individual Lessons Individual Lessons Individual Lessons Individual Children Courses Adult Courses

Monday Tuesday Wednesday Thursday Friday Saturday Sunday

6am

Squad Training

Children's Courses Classes Children's and Adult Classes

7am 8am 9am 10am 11am 12 noon 1pm

Classes Lessons Adults and Children's Classes

Gradings and Competitions

2pm 3pm 4pm 5pm 6pm 7pm 8pm 9pm 10pm 11pm

Courses and Classes: Judo, Karate, Kendo, Kata

Appendix 5

Managers CV

BUSEN Twickenham Challenge Application

Financial Business Plan

Appendix 6

BUSEN Twickenham Challenge Application

TORKILDSEN BARCLAY

Centre: BUSEN MARTIAL ARTS AND FITNESS CENTRE

INCOME AND EXPENDITURE SUMMARY Income Dojo Dance Studio Treatment Rooms Memberships and Joining Fees Sale of Goods Food and Beverage TOTAL INCOME (NET OF VAT) Year One 40,500 11,968 20,000 256,194 44,000 19,149 391,811 Year Two 54,000 15,957 20,000 383,466 44,000 25,532 542,956

Expenditure Salaries and Wages Other Payroll Costs Travel and Subsistence Catering Provisions Cleaning and Chemicals Promotion and Marketing Admin and Office Costs Telephones Insurance Licences Utilities NNDR Legal and Audit Interest and Bank Charges Buliding Maintenance Equipment and Maintenance Miscellaneous Fees and Services TOTAL EXPENDITURE NET PROFIT/LOSS

Year One 289,535 2,300 12,000 25,260 500 10,000 4,700 4,000 4,945 3,500 12,000 5,000 5,877 2,000 21,500 403,117 -11,306

Year Two 300,551 1,800 12,000 27,813 500 10,000 4,700 4,000 4,945 3,500 12,000 5,000 8,144 10,000 11,000 21,500 437,453 105,503

TORKILDSEN BARCLAY

Centre: BUSEN MARTIAL ARTS AND FITNESS CENTRE

Cost Centre Dojo Courses and Gradings Parents and Toddlers Gymnastics Evergreen Sessions Dance Studio Classes (Total) Treatment Rooms Hire Sale of Goods Vat Non Vat Food and Beverage 30,000.00 Total 25,531.91 25,531.91 35,250.00 14,000.00 Total 30,000.00 14,000.00 44,000.00 20,000.00 Total 20,000.00 20,000.00 18750 5.00 93,750.00 Total 79,787.23 79,787.23 1000 1500 4.00 4.00 44,000.00 4,000.00 6,000.00 Total 44,000.00 4,000.00 6,000.00 54,000.00 Activity Transactions Price Gross Income Income net of VAT

TORKILDSEN BARCLAY
Centre: Busen Martial Arts and Fitness Centre Membership Income - Year One Pre Opening Nos SALES - NUMBERS Membership Type Price Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

TOTAL

Junior Martial Arts (new sales) Senior Martial Arts (new sales) Family general Fitness Attrition Junior Martial Arts Senior Martial Arts Family general Fitness Total Net Membership Junior Martial Arts Senior Martial Arts Family general Fitness TOTAL DUES LINE INCOME

25.00 32.00 50.00 32.00

15 5 125 30

15 5 30

15 5 30

15 5 30

15 5 30

15 5 30

15 5 30

15 5 30

15 5 30

15 5 30

15 5 30

15 5 30 0 485

4.00% 4.00% 4.00% 4.00%

0 0 0 0

0 0 0 0

-1 0 0 -7

-2 -1 0 -8

-2 -1 0 -9

-3 -1 0 -10

-3 -1 0 -11

-4 -1 0 -12

-4 -1 0 -12

-5 -2 0 -13

-5 -2 0 -14

-5 -2 0 -14

-34 -11 0 -111

0 0 0 125

15 30 44 57 70 82 94 105 116 126 136 146 146 5 10 15 19 23 27 31 35 39 42 45 49 49 0 0 0 0 0 0 0 0 0 0 0 0 0 155 185 208 229 250 270 289 308 325 342 359 374 374 ========== ========== ========== ========== ============ ============= ========== ========== ========== ============ =========== ========== ============= 4,000 5,495 6,990 8,205 9,372 10,492 11,568 12,600 13,591 14,542 15,456 16,332 128,643

JOINING FEE INCOME Junior Martial Arts Senior Martial Arts Family general Fitness 25.00 48.00 50.00 48.00 0 375 375 375 375 375 375 375 375 375 375 375 375 4,500 0 240 240 240 240 240 240 240 240 240 240 240 240 2,880 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6,000 1,226 1,226 1,226 1,226 1,226 1,226 1,226 1,226 1,226 1,226 1,226 1,226 20,706 ======== ========== ========== ========== ========== ============ ============= ========== ========== ========== ============ =========== ========== ============= 6,000 1,841 1,841 1,841 1,841 1,841 1,841 1,841 1,841 1,841 1,841 1,841 1,841 28,086

TOTAL JOINING FEE LINE INCOME COMMISSION Single Couple

TOTAL COMMISSION THIRTY DAYS NOTICE

======== ========== ========== ========== ========== ============ ============= ========== ========== ========== ============ =========== ========== ============= 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 455 455 455 455 455 455 455 455 455 455 455 455 5,464 ======== ========== ========== ========== ========== ============ ============= ========== ========== ========== ============ =========== ========== ============= 0 6,296 7,791 9,286 10,501 11,668 12,788 13,863 14,896 15,887 16,838 17,751 18,628

NET MONTHLY INCOME

156,194

Centre: Busen Martial Arts and Fitness Centre Membership Income - Year Two Pre Opening Nos 146 49 0 374

SALES - NUMBERS

Membership Type

Price

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

TOTAL
0 302 97 0 689

Junior Martial Arts (new sales) Senior Martial Arts (new sales) Family general Fitness Attrition Junior Martial Arts Senior Martial Arts Family general Fitness Total Net Membership Junior Martial Arts Senior Martial Arts Family general Fitness TOTAL DUES LINE INCOME

25.00 32.00 50.00 32.00

13 4 30

13 4 30

13 4 30

13 4 25

13 4 25

13 4 25

13 4 25

13 4 25

13 4 25

13 4 25

13 4 25

13 4 25

4.00% 4.00% 4.00% 4.00%

0 0 0 0

0 0 0 0

-7 -2 0 -17

-7 -2 0 -18

-7 -2 0 -18

-8 -2 0 -18

-8 -3 0 -19

-8 -3 0 -19

-8 -3 0 -19

-8 -3 0 -19

-9 -3 0 -20

-9 -3 0 -20

-79 -25 0 -188

146 49 0 374

159 172 178 184 189 195 200 205 210 214 219 223 223 53 57 58 60 62 63 65 66 67 69 70 71 71 0 0 0 0 0 0 0 0 0 0 0 0 0 404 434 447 454 461 468 474 480 486 491 497 502 502 ========== ========== ========== ========== ============ ============= ========== ========== ========== ============ =========== ========== ============= 17,174 18,587 20,000 20,613 21,042 21,453 21,848 22,227 22,591 22,940 23,276 23,598 255,347

JOINING FEE INCOME Junior Martial Arts Senior Martial Arts Family general Fitness 25.00 48.00 50.00 48.00 325 325 325 325 325 325 325 325 325 325 325 325 3,900 192 192 192 192 192 192 192 192 192 192 192 192 2,304 0 0 0 0 0 0 0 0 0 0 0 0 0 1,226 1,226 1,226 1,021 1,021 1,021 1,021 1,021 1,021 1,021 1,021 1,021 12,868 ======== ========== ========== ========== ========== ============ ============= ========== ========== ========== ============ =========== ========== ============= 0 1,743 1,743 1,743 1,538 1,538 1,538 1,538 1,538 1,538 1,538 1,538 1,538 19,072

TOTAL JOINING FEE LINE INCOME COMMISSION Single Couple 20.00 40.00

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

0 0 0

TOTAL COMMISSION THIRTY DAYS NOTICE

======== ========== ========== ========== ========== ============ ============= ========== ========== ========== ============ =========== ========== ============= 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4,421 386 386 386 386 386 386 386 386 386 386 386 386 9,047 ======== ========== ========== ========== ========== ============ ============= ========== ========== ========== ============ =========== ========== ============= 4,421 19,302 20,715 22,128 22,537 22,965 23,377 23,772 24,151 24,515 24,864 25,199 25,521

NET MONTHLY INCOME

283,466

TORKILDSEN BARCLAY

Centre: BUSEN MARTIAL ARTS AND FITNESS CENTRE

DETAILED EXPENDITURE
SALARIES AND WAGES Salaries Wages TOTAL OTHER PAYROLL COSTS Recruitment Training Uniforms TOTAL TRAVEL AND SUBSISTENCE Car Costs General travel/subsistence TOTAL COST OF PROVISIONS Food Goods for Sale TOTAL CLEANING AND CHEMICALS Cleaning Materials TOTAL PROMOTION AND MARKETING Marketing start up Marketing General TOTAL

YEAR ONE 116,375 173,160 289,535

YEAR TWO 116,375 184,176 300,551

1,000 1,000 300 2,300 1,800

500 1,000 300

6,000 6,000 12,000

6,000 6,000 12,000

7,660 17,600 25,260

10,213 17,600 27,813

500 500 500

500

5,000 5,000 10,000 10,000 10,000

DETAILED EXPENDITURE
ADMIN AND OFFICE COSTS Printing Stationery Ongoing Postage Computer Maintenance Security Services TOTAL TELEPHONES Land Lines TOTAL INSURANCE Buildings Employers Liability Public Liability TOTAL LICENCES PPL PRS TV Satellite/Cable TOTAL UTILITIES Gas /Oil Water/Sewerage Electricity TOTAL NNDR NNDR TOTAL LEGAL AND AUDIT Legal/audit/book keeping TOTAL INTEREST AND BANK CHARGES Bank Charges TOTAL

YEAR ONE

YEAR TWO

1,000 2,000 500 200 1,000 4,700

1,000 2,000 500 200 1,000 4,700

4,000 4,000

4,000 4,000

3,750 767 980 5,497

3,750 796 1,357 5,904

300 900 300 2,000 3,500 3,500

300 900 300 2,000

5,000 2,000 5,000 12,000

5,000 2,000 5,000 12,000

5,000 5,000

5,000 5,000

5,877 5,877

8,144 8,144

DETAILED EXPENDITURE
BUILDING MAINTENANCE Buildings TOTAL EQUIPMENT AND MAINTENANCE Fitness Equipment Maintenance Equipment Purchases TOTAL MISCELLANEOUS FEES AND SERVICES Refuse Collection Irrecoverable VAT TOTAL

YEAR ONE

YEAR TWO

2,000 2,000

10,000 10,000

6,000 5,000 0 11,000

1,500 20,000 21,500

1,500 20,000 21,500

SALARIES - YEAR ONE

POST General Manager Martial Arts Manager Fitness Manager TOTAL SALARIES NO OF HOURS PER WEEK 39 30 40 SALARY 40,000 30,000 25,000 95,000 N.I. 5,000 3,750 3,125 11,875 PENSION 4,000 3,000 2,500 9,500 TOTAL 49,000 36,750 30,625 116,375

SALARIES - YEAR TWO ONWARDS

POST General Manager Martial Arts Manager Fitness Manager TOTAL SALARIES NO OF HOURS PER WEEK 39 30 40 SALARY 40,000 30,000 25,000 95,000 N.I. 5,000 3,750 3,125 11,875 PENSION 4,000 3,000 2,500 9,500 TOTAL 49,000 36,750 30,625 116,375

WAGES - YEAR ONE

POST Receptionists Martial Arts Instructors Cleaners Fitness Supervisors Technical Operative Reception AL/Sickness Fitness Room AL/Sickness TOTAL WAGES NO OF HOURS PER WEEK 117 55 28 63 15 117 93 NO. OF WKS 52 51 8.00 20.00 52 7.00 52 52 5 5 9.00 9.00 8.00 9.00 RATE PER HR N.I. 3,894 4,488 815 2,359 562 374 335 TOTAL 52,566 60,588 11,007 31,843 7,582 5,054 4,520 173,160

WAGES - YEAR TWO ONWARDS

POST Receptionists Martial Arts Instructors Cleaners Fitness Supervisors Technical Operative Reception AL/Sickness Fitness Room AL/Sickness TOTAL WAGES NO OF HOURS PER WEEK 117 65 28 63 15 117 93 NO. OF WKS 52 51 8.00 20.00 52 7.00 52 52 5 5 9.00 9.00 8.00 9.00 RATE PER HR N.I. 3,894 5,304 815 2,359 562 374 335 TOTAL 52,566 71,604 11,007 31,843 7,582 5,054 4,520 184,176