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Table of Contents

Executive Summary .................................................................................................................2

Company Profile .................................................................................................................. 2-4

Industry Analysis ................................................................................................................. 4-5

Target Market ...................................................................................................................... 5-6

Competitive Analysis ........................................................................................................... 6-8

Marketing Plan and Sales Strategy .................................................................................. 8-11

Operations ........................................................................................................................ 11-12

Management and Organization ...................................................................................... 13-14

Long-Term Development ................................................................................................ 14-15

Financials .......................................................................................................................... 16-20

Appendix ........................................................................................................................... 20-24

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Executive Summary

Many athletes dream of performing perfectly in their sport and becoming a legend, but

their aspirations might be hindered by their fear of failure. Speed Power and Agility works to

alleviate athletes’ fears and give them the skills they need to pursue their dream, whether that be

making their high school's varsity team or playing at the collegiate level. We will guide these

athletes to success through rigorous athletic training, personalized for their sport and their ability.

Speed Power and Agility will provide an intimate atmosphere for high school athletes to

train in, which will set us apart from other training facilities, while also improving their skills.

We will show this early on by holding a weekly, free placement session to individually evaluate

each athlete's ability level before he/she commits to our program. After a free placement session,

we will set each athlete on a path to success with a personalized training schedule including one-

on-one sport-specific training, and group workshops led by our trainers.

Our facility will be located in Palatine, Illinois, within ten miles of eight athletically

successful high schools. The location of our building will give us an opportunity to provide

services to upper-middle class families in the area that are willing to pay competitive prices for

specialized training. The athletes in this area are highly motivated, and will see value in our

services. Additionally, our location gives freedom for expansion into nearby vacant buildings,

and the ability to strengthen our facility and services as our company prospers.

Speed Power and Agility will be successful, as we have an aggressive customer-base in a

high-income area, and notable growth in the industry of fitness and specialized training. We will

need a $120,000 loan to open the business and each owner will put forth $5,000. This loan will

come from a local bank, Libertyville Bank & Trust Company, with an interest rate of 5%, which

we will pay off by the end of year five. During year one, we will lose money due to startup costs,

but by year two we will begin to generate profit.

Company Profile

Speed Power and Agility will open for business on May 23, 2016. May is the most

opportune time to open our business because it is during our busiest season, summer. Opening in

May will give us appropriate time to advertise, approach high school coaches, and acquire

trainers.

Our Mission Statement: “Bringing excellence to the surface.”

Speed Power and Agility believes every athlete who enters our facility has the potential to

achieve excellence. When athletes register for our program, they are paying us to refine these

crucial athletic skills, and we will provide the tools and guidance needed to increase an athlete's

speed, power, and agility. These improved statistics will gain the athlete recognition by their

high school coach, and will impress college coaches that are looking for something that puts that

athlete above others.

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Speed Power and Agility will function as a Limited Liability Company (LLC) comprised

of three owners: Mikayla Ciesil, Dominic Mues, and Catie Petralia. An LLC offers a great

advantage for Speed Power Agility because it will allow us to avoid double taxation that occurs

with a corporation, and will offer protection of personal property if our company is in debt.

While an Operating Agreement is not required by Illinois law, one will be created among the

three owners in the event of any disagreements between owners.

Due to Speed Power and Agility being an LLC, ownership will be equal among the three

owners. Under the Operating Agreement of Speed Power and Agility, revenue and expenses will

be shared equally as well. Each owner will hold specific responsibilities based upon his or her

educational background.

Mikayla Ciesil

Head of Administration Mikayla Ciesil will act as the head of administration for Speed Power Agility. With a master’s

degree in business administration from the University of Southern California, Mikayla will be

responsible for the company’s staffing, training, scheduling, and facilities management. Her

other responsibilities will include managing the company’s website and social media accounts.

Dominic Mues

Head of Finance Dominic Mues will act as the head of the finance department, as he earned a Master’s degree in

accounting from Indiana University. He has worked previously as an accountant and is well

prepared to manage the company’s finances. As the head of the finance department, he will

oversee financial activities, manage legal actions, consult with other executives, approve

contracts, and analyze financial statements.

Catie Petralia

Head of Sales and Marketing Catie Petralia will be the head of Speed Power and Agility’s sales and marketing department. She

has a Master’s degree in marketing and a minor in sales from Northwestern University. As the

marketing director, she will be in charge of sales, marketing campaigns, and addressing the

target audience.

Each of the three owners are former Division 1 college athletes. Mikayla ran distance for

the track and field team at the University of Southern California, Dominic was a singles player

for the Indiana University tennis team, and Catie was the starting setter for the Northwestern

University volleyball team. In addition to their business qualifications, each owner has had years

of experience in competitive athletics and is knowledgeable in intense personal training, which

will enable them to act as substitute trainers as needed.

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Our facility will be

conveniently located in Palatine,

Illinois. The address is 317 Woodwork

Lane, Palatine, Illinois. The location of

our facility is vital to our success, as it

is advantageously located in a ten mile

radius of eight large, athletically

competitive high schools. Additionally,

our location gives freedom for

expansion because it is in an industrial

park. This will give us the space to

expand into nearby buildings, and the

ability to grow our facility as our

company prospers.

Our immediate goals include moving equipment into our facility, hiring trainers, and

advertising. After we open for business, we will strive to bring in customers, build relationships

between our trainers and those customers, and meet our initial monthly projected sales. We will

achieve these goals by establishing credibility among athletes in the Palatine area and through

our marketing programs. We will work with our first wave of athletes, prove our methods

through their results, and, as a result, bring in new customers.

We will begin with a $120,000 loan and an additional $15,000 put forth by the owners.

This money will be used to pay for our startup expenses, including employee compensation, rent

and utilities, equipment, and marketing. Paying for these expenses will cause us to lose money

during the first year of operations. Our total revenue for the first year is $315,000. Our total

expenses are $360,000. Although we will not generate profit during our first year, we are

expected to break even in our eighth month of business, December of 2016.

Industry Analysis

In recent years, the demand for personal training facilities has grown due to the increased

emphasis being placed on fitness in the United States. A study conducted by the International

Health Racquet & Sportsclub Association found that health club membership in the United

States reached 50.2 million in 2010. This represents a 10.8% increase from the 45.3 million who

belonged to a club in 2009 (Carpelli). This increase in fitness club membership shows the high

demand for training facilities in the United States. In addition, the fitness industry is expected to

have at least a 20% growth by 2018 (Mercer). We will be entering a growing industry and will

have many opportunities for successful advancement.

The industry of specialized training for high school athletes has increased because of the

constantly heightening pressure to gain recruitment offers and scholarships from colleges, and

the increased standards for college athletes. According to the NCAA, of the nearly eight million

students currently involved in high school sports in the United States, only 460,000 of them will

go on to compete at NCAA schools. This offers us a large market to provide service to, and a

great chance of success.

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The personal fitness industry has an expanding job market. Currently, there are 259,000

people employed as personal fitness trainers or instructors (“Personal Trainers in the US: Market

Research Report”). Trainers are readily available, especially for part-time employment.

According to the US Bureau of Labor Statistics, the average annual growth rate for this job

market is 13%. Therefore, the amount of available trainers and potential growth for our business

is also increasing. Because there is an ample amount of trainers in the job market, we will have

many different trainers to choose from. This will ensure that we are able to hire the best trainers

in the area that have the qualifications and experience we are seeking.

Target Market

Our target market is competitive high school athletes, ages 15 to 19 years old, and their

families in the Palatine area. The average household income in this area is $100,000 to $149,000

(Illinois School District Demographic Profiles, ProximityOne). When considering the enrollment

of high schools located around Palatine, and that the average high school athletic participation is

35% of general enrollment, we can conclude that the size of our market is approximately 6,400

students. Based on general high school enrollment in the area, our growth potential has a rate of

7%. The needs of this market are advanced athletic training. Highly competitive athletes need

accelerated personal training to get one step ahead of other high school athletes. Running one

second faster, or jumping one inch higher, as a result of personal training, will make the

difference between an athlete playing at the collegiate level or not.

For high school athletes, the game is constantly evolving as participation increases. A

survey conducted by The National Federation of State High School Associations shows the

steady growth of both girls’ and boys’ participation in high school athletics. The market is

forever expanding as generations continue to grow, and participation in high school athletics has

a growth rate of 13% (“2013-14 High School Athletics Participation Survey”). Many motivated

athletes strive to play at the collegiate level, but as participation increases, competition

intensifies. Advanced personal training is seen as a critical factor in improving performance and

maximizing an athlete's chances of being recruited by a college. This type of training is in high

demand because of the notable growth in national participation in high school athletics, and

because of the national competition for college opportunities.

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The market’s potential is based on the fact that the stream of incoming high school

students is continuous. New students enter each year, and more athletes will join our program.

The enrollment of the eight high schools in the Palatine area is quite large, providing their

athletic programs with many players to choose from. This will result in mediocre athletes being

cut from a team because they do not have the competitive edge that others do. Specialized

training is what will give these athletes the competitive edge necessary to be noticed by their

coaches. Due to this being a high income area, the parents of these athletes have sufficient

disposable income. Parents in this area are willing to spend their money on athletic advancement

programs, as they spend $2,000 to $8,000 for travel baseball programs or for club volleyball

teams. Athletes joining Speed Power and Agility will become advanced, and will be recognized

by college scouts more often than those who are not involved in progressive training. Because of

the demographics of the Palatine area, membership rates will be competitively priced, accessible

to the upper-middle class families that occupy the area.

We also have a seasonal market that gives us an advantage and the opportunity to expand

our business. The athletes we are marketing to are in school most of the year, and in their certain

sports for an entire season. So, we plan to cater to their off-seasons by emphasizing programs for

those sports when they are not in season. Summer is our most vital season, as all school

sanctioned sports are in the off-season. We will increase our hours and stress to our athletes that

it is the most opportune time to improve their performance because if they are involved in

specialized training while their competitors are inactive all summer, they will have an advantage

in their upcoming season. Summer training programs, such as ours, are important to high school

athletic teams because of the IHSA rules limiting the amount of time coaches are permitted to

spend with their team during the off-season. Our programs will supplement the time coaches lose

training their athletes as a result of this rule. If coaches choose to participate in our partnership

program, we will provide the results they are looking for, and continue to improve their athletes

when they cannot.

Competitive Analysis

There are multiple personal training facilities in the area surrounding Speed Power and

Agility. Athletic Republic in Libertyville acts as competition for patronage from athletes at

schools such as Vernon Hills and Lake Zurich, ARC Performance acts as competition for athletes

near Wheeling, and Rush Performance Personal Training Studio will be our main competitor

because it is located in Arlington Heights, 13 miles away from our location, and offers similar

services. These businesses have similar services, but they do not go above and beyond to provide

a personal atmosphere for athletes to train in.

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Nearby facilities have similar services, but they do not offer the free placement session

that Speed Power and Agility does. When a customer comes in for a free placement session

he/she will be evaluated and have an opportunity to become familiar with our facility and staff

before committing to our program. Offering a free placement session will draw in customers

because they will quickly learn that Speed Power and Agility is able to provide them with a more

personal experience than other nearby training facilities. After being evaluated and committing

to our program, athletes will meet with trainers to set long term goals, and together they will

design a personalized training schedule, catered to each athlete’s individual strengths and

weaknesses. Individualizing every athlete’s training schedule and implementing a goal system

will allow athletes to see their personal projected progress, keep them motivated while in

training, and provide the intimate atmosphere that sets Speed Power and Agility apart from our

competitors.

Nearby facilities do not have the experience with college athletics that our staff has, and

therefore, cannot assist athletes in successfully connecting with college recruiters. We will not

only train athletes, but also offer an insight into college athletics and the recruitment process that

other businesses cannot. The staff of Speed Power and Agility is properly equipped to guide

young athletes through the complicated recruitment process, and able to give them an upper hand

in being recruited because of our connection with various college athletic programs. Motivated

high school athletes, with the goal of competing at the college level, will choose Speed Power

and Agility over our competitors because of the wisdom we are able to offer regarding college

athletics.

New competitors will emerge as the demand for personal training facilities grows, but

prospective businesses will be unable to successfully enter this competitive market if there are

already an ample number of businesses offering similar services. New companies will struggle to

differentiate their businesses when there are already similar established businesses in the area.

We will have an advantage over emerging training facilities because we will have already built

strong relationships with athletes, coaches, and their families in the Palatine area, and established

loyalty among our customers.

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SWOT Analysis:

Strengths:

Referral Program

Owners with connections to college

athletic programs.

Statistical Performance Analysis

Seasonal market

Free placement session

Weaknesses:

Lacks brand recognition initially

Establishing a niche

First time business

Opportunities:

Location (8 schools within 10 miles)

High school partnerships

Clients with disposable income

Expansion opportunity within our

facility to maximize usage

Supplement time that coaches can’t

spend with athletes due to IHSA rules

Threats:

Inability to find reliable trainers

Nearby competitors

High school coaches may not want their

athlete’s working with an outside

trainer

Marketing Plan and Sales Strategy

Speed, power, and agility are the qualities that separate a mediocre athlete from an

outstanding one. Having these qualities will gain athletes recognition by college scouts and their

high school coaches. Offering the tools and guidance needed to make athletic progress will

encourage athletes to become active and loyal members of Speed Power and Agility. Most

serious high school athletes desire to compete at the collegiate level, and by being one second

faster, or being able to jump one inch higher, they will have an advantage over the average

athlete in the eyes of college recruiters. Parents will be drawn to our message because many

parents want their child to save them money on college tuition by receiving a scholarship to play

at the collegiate level. Emphasizing our college connections and stressing our focus on results,

we will attract athletes that are ready to bring their game to the next level with specialized

training

We will advertise locally in Lake County, which will involve paying for an advertisement

in The Daily Herald, and printing flyers and informational brochures to display in businesses and

schools. We will also communicate with athletic directors at nearby high schools to ask them to

inform their athletes about our facility in exchange for discounted rates and a partnership. To

consistently advertise locally, it will cost approximately $250 per month.

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Speed Power and Agility will create a website on Wix for $4 a month. The Speed Power

and Agility website will have a homepage showing our basic company information, an “Athlete

of the Month,” and our program schedules. Additional pages will allow users to register for our

programs, take a virtual tour of our facility through videos and pictures posted on the website,

find more information on our training staff, and a subpage with our athletes’ college scouting

videos and statistics. Posting videos displaying our athletes’ skills on our website will allow

them to have more exposure to scouts and other recruiters. Wix will allow us to create an easy-

to-use website without having to hire a web designer. Additional costs are necessary for a

customized email and a custom domain name, making the cost of maintaining a website for one

year $110. A free way to market online is through social media. We will set up Twitter and

Facebook accounts to post updates and display interesting information about our programs.

Social media is becoming an increasingly popular marketing technique for businesses, and will

benefit Speed Power and Agility because it will assist us in reaching our target market, high

school athletes. To increase social media exposure we will post athlete’s statistics, with their

permission, on Twitter and Facebook. Having an active social media presence will increase

client interest and competition between athletes. Displaying athletes’ statistics on social media

will help promote our business and their athletic career as well.

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In our facility we will have a “Wall of Fame”

displaying pictures of former clients who have been

recruited to play college athletics. This will inspire

ambitious athletes to work towards their goals while

increasing the credibility of Speed Power and Agility by

showcasing our program’s success. The “Wall of Fame”

will be strategically placed on the wall directly across

from the building’s front entrance so it will be the first

thing that prospective customers see when entering our

facility. We will also introduce a goal system among our

athletes. When an athlete achieves a personal goal, they

will receive a free shirt or water bottle displaying the Speed Power and Agility logo, mission

statement, address, and phone number. Athletes wearing information about Speed Power and

Agility will increase our business’ recognition in the area and, as a result, attract new customers.

Sales Procedures and Methods

Speed Power and Agility will hold a free placement session once a week to evaluate each

athlete’s performance level. This will help athletes and their families become familiar with our

facility before committing to a membership. The free session will differentiate our company

from our competitors because other training facilities do not take the time to gauge an athlete’s

ability. We will also implement a referral program to encourage networking through athletes. If a

person refers a friend to our program, they will receive 5% off their monthly payment. Each

person the athlete refers is an additional 5% off. The maximum number of referrals is two

friends.

We will initiate a partnership program with high school athletic programs to increase our

clientele. If we establish a workout program within specific high schools, we will have multiple

steady clients. We will contact athletic directors and coaches to establish a partnership with their

program. This will enhance our brand name, involvement in the community, and our credibility.

To incentivize the high school directors, we will not only promise results, but also a sponsorship

or a group discount. If they provide a certain number of participants or teams, then we will

donate a portion of our profit to their high school’s athletic program to increase the loyalty of

their program to Speed Power and Agility.

We will meet our goal of creating a positive reputation within the eight nearby high

school athletic programs by taking athletes from these target schools, asking them to serve as

representatives for our program, in exchange for discounted training, and proving the credibility

of our process through their increased level of performance. We will choose representatives from

each school and sport, in order to target the widest range of potential clients. Chosen

representatives will advertise for our business by posting their progress on their personal social

media pages, and by wearing Speed Power and Agility athletic wear to school-sanctioned athletic

practices. Advertising through high school representatives is a cost-effective method, and will

assist us in establishing credibility.

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The cost of Speed Power and Agility’s program will vary based on the amount of months

a customer commits to when making their first payment. The month-to-month package will cost

$360 per month, the three month package will cost $300 per month, the six month package will

cost $280 per month, and the full year package will cost $260 per month. We will see high

customer loyalty as a result of offering a discount for customers choosing to commit to more

than one month at a time. If packages are distributed evenly among our customers, the average

payment for each customer will be $300 a month.

Operations

Our facility is a 16,700 square foot warehouse that we will be transforming into a training

facility through the installation of turf, a 50 yard rubber straightaway to simulate a track, and the

addition of equipment such as squat racks, dumbbells, hex bars, and ladders, which will be

utilized to refine our athletes’ skills. Locker rooms, an entrance are, storage area, and an office

area will make up Two thousand square feet of the facility. Beyond the office/locker room area is

where our workout area will be. In the workout area, the entire floor will be covered with padded

artificial turf. The open turf area is where we will hold group workshops and one-on-one training

sessions. Another area of the turf will be designated for athletic equipment.

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Our day-to-day operations revolve around our schedule, which will be organized by

Mikayla Ciesil, as she is in charge of staff scheduling. She will create a schedule for group

workshops, private training sessions, and manage appointments. We will offer group workshops

at the same time and on the same day each week so we can schedule private training sessions and

open weightlifting sessions accordingly. All athletes participating in our training sessions must

sign our liability waivers to ensure that Speed Power and Agility is not responsible for any

injuries. In the summer, we will offer two group workshops per day. One will be offered at 7 am

and the other in the afternoon at 1 pm. For our school hours we will offer group workshops twice

a week. One will be scheduled Wednesday at 5 pm, and another on Saturday at 12 pm. Private

sessions will be scheduled at the athlete’s request, or when a trainer deems necessary. We will

also hold our free placement session on a weekly basis. In the summer and school season we will

hold it on Saturday at 10 am. These times are the best for our customers, as they are shaped

around their school schedules.

Our facilities will be open from 3 pm to 8 pm Monday through Friday, and 6 am to 6 pm

on Saturdays, during the school year (Spring, Winter, and Fall) to cater to our target market, high

school athletes. In the summer, our facilities will be available Monday through Saturday from 5

am to 6 pm.

Operating Hours Spring, Fall, and Winter Hours:

Monday-Friday: 3 pm to 8 pm

Saturday: 6 am to 6 pm

Sunday: Closed

Summer Hours:

Monday-Saturday: 5 am to 6 pm

Sunday: Closed

We will initially be hiring four employees. The trainers we hire will be working part-time for

$16 an hour. We will always have at least two part-time trainers on staff at all times. This will

allow one trainer to be working individually with an athlete and

another to be leading a workshop, or coaching an open weightlifting session The three owners

are qualified to be substitute trainers, as they all are certified personal trainers.

We will use statistical analysis to clearly display the growth of the athlete as we help

them improve their performance. We will use basic technology such as stopwatches and tape-

measures to chart their growth. We will have the athletes’ record and track their progress on their

own online chart. These charts will be accessible to the owners and trainers through Google

Drive, so we can analyze and help the athlete improve their statistics. Having all of the athlete’s

statistics on one chart will allow us to share their information with college coaches, or to prove

the progress to their high school coaches. We will post record-breaking statistics on our website,

and with the athlete’s permission, on our social media accounts. Technology will also be utilized

for managing payments, organizing schedules, and communicating with parents and college

coaches and scouts.

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Management and Organization

Since we are a startup company, we will have a small board of directors. It will be

comprised of the three owners and three experienced business advisors. The board of directors

will include business professor and consultant Gary Midkiff, business executive and Kratos

Volleyball Academy Master Coach Pablo Rosique, and Wauconda High School’s Head Football

Coach, Dave Mills. Professor Gary Midkiff will contribute his expertise in finance and

organization. He will be able to provide guidance regarding Speed Power and Agility’s financial

actions and our company’s business ventures. Pablo Rosique will share his experience and will

be able to help us with marketing and the expansion of our business. Pablo opened his own

volleyball academy, and has experience with the beginnings of a small business. He also has

connections with colleges and will be able to advise us on marketing and sales strategies. A long-

term goal he can assist us in achieving is expanding Speed Power and Agility’s reach into club

and private teams with partnership programs. Coach Dave Mills will be able to help us establish

partnership programs with nearby high schools with his networking connections and advise us

with his personal opinion and experience as a high school coach on how to cater to high school

athletic programs. Each of the owners attended Wauconda High School and participated in the

school’s athletic program, so Coach Mills is a trustworthy advisor who has volunteered to assist

in our business ventures. Coach Mills will provide an unbiased opinion on our training programs

because there won’t be any athletes from Wauconda enrolled in our program. We as owners are

included in the Board of Directors because we want to be involved in the advisory process and

be able to absorb these experts’ advice. We also want to be directly involved with the growth of

our company in order to gain experience and truly devote ourselves to the business. Working

closely with the advisors on our board of directors will result in the success of our business.

Mikayla Ciesil, Head of Business Administration, will be responsible for managing

schedules for workshops, private training sessions, and appointments with parents. She will also

be responsible for hiring our trainers. We will employ four trainers the first year of operations.

Trainers will be hired based on their qualification to train high school athletes. She will interview

each candidate to ensure they have experience and understand the needs of our athletes. Trainers

will also be hired according to their certifications. There are a multitude of personal training

certificates a person can earn. Any that require classes and exams, online or not, are suitable.

Some notable Certified Personal Trainer programs are NASM, ACSM, the American Fitness

Professionals and Associates, and the Aerobics and Fitness Association of America. We will run

background checks and drug tests to ensure the trainers we hire have good character and will be

reliable employees. Our trainers also must be 18 years or older, have a high school diploma (or

an equivalent), and an adult CPR and AED certification.

To secure new trainers for Speed Power and Agility, we will display an ad on our website

and in local newspapers and the owners will conduct interviews with the qualified applicants.

Speed Power and Agility will also personally seek out and offer employment to trainers from the

areas that have worked with the specific schools we are targeting for partnership.

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Employee compensation will be $16 per hour. The trainers are part-time, so we based

their salaries off of the average national salary for part-time personal trainers. We will provide

our employees with premium insurance from Miller Insurance Agency. We consulted with

JoAnn Miller the co-owner of Miller Insurance Agency to assist us in choosing insurance for our

business and our employees. The insurance policy we chose is based on the salary of our

employees and will cover basic health care for our employees and their families.

Our incentive program will involve rewarding trainers spontaneously and valuably. We

believe that recognition is the key to satisfied employees. The rewards will consist of gift cards

to athletic outlets, a paid holiday, or a week off of their cleaning duties. Rewarding them

spontaneously will keep the employees on their feet, always working at their best, and trying to

improve their progress to hopefully earn the reward. A goal system will also be enacted, so that

when an athlete meets or exceeds their monthly goals, the trainer who worked one-on-one with

that athlete will be rewarded. This reward could include a slight raise in their wages. The trainer

will receive a bonus if an athlete he/she has been privately training receives a scholarship to a

college, and a picture of the trainer and their athlete will also be posted on the “Wall of Fame.”

Long-Term Development

Our long term goals are to generate satisfied customers, develop our brand, build stable

relationships with school and private athletic programs, and expand our market by improving our

facility and offering additional services. Over time, Speed Power and Agility will be a

community recognized name as a result of our involvement in local communities. Many families

will rely on us to train their athletes and will view Speed Power and Agility as a reliable program

in which to enroll each of their children. We will strive to gain community recognition through

loyal and satisfied customers, which will involve word-of-mouth advertising, our referral

program, and athletes promoting our business by wearing Speed Power and Agility athletic wear.

In our first year of operations, we will expand our market by building stable relationships

with high school athletic directors and working cooperatively to commence a training program

within nearby schools. Not only will our services cater to high school athletic programs, but also

to competitive, private athletic academies. In three years, we will establish a workout program

with private athletic teams. Serious athletes participate in club and travel teams within their

sport. Coaches of private teams are usually even more competitive than high school coaches, and

want their athletes to participate in an intense training program. Most private teams have trainers

come to their facility during their practice to condition their athletes, and in the future, we would

like to implement such a program.

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In three years, we envision expanding our market by offering programs that will attract

customers in a younger age group. In order to successfully transition into offering children’s

classes, we will advertise to the families of high school athletes already enrolled in our program.

The families of our current athletes will be more inclined to sign up for new classes and refer

their friends because they will be familiar with our staff, and will have seen through their older

children’s progress the results that Speed Power and Agility is able to provide. Children’s classes

will be conducted with the goal of providing a fun environment for children to learn to work

cooperatively on a team through physical activities and games. Catering to a younger market will

allow for our trainers to develop relationships that will ideally continue through each child’s high

school athletic career.

In five years, we will expand our facility by adding new equipment and new workout

areas. The demand for a larger facility will arise during year five because our enrollment is

estimated to be at its highest. An improved facility gives us the opportunity to accommodate

more athletes and gain customers. In our upgraded facility we will include a standard 200 meter

indoor track. By adding a full track we are offering athletes the opportunity to improve their

endurance and record a more diverse range of statistics to share with recruiters. Including a track

in our building will also set us apart from similar nearby training facilities because it will

improve the quality of our facility and our services.

Our principal challenges will be developing enough initial interest in our programs to pay

our startup costs, establishing a positive reputation, and initiating trusting relationships with high

school coaches. In our first months, we may not bring in as many customers as projected. It will

be difficult to gain customers because we are not an established business and we are unable to

prove that our training program has had success. As a result, we will initially lack name

recognition and credibility, which might hinder our ability to draw in customers within the first

few months of operation. We are potentially threatened by an inability to find interested high

school coaches to partner with because they might be hesitant to allow their athletes to train with

unfamiliar trainers, or they might want to train their athletes independently through their school.

We will overcome these potential challenges and work towards our long term goals by

analyzing each problem before beginning operations and putting a plan in place to respond to

them. We will establish our reputation in the Palatine area by implementing a process of proving

sales and results. We will show potential customers that we are able to provide success and

improvement in athletes through our clients’ statistical advancements, which will be advertised

through our website, our social media pages, word of mouth, and through our high school

representative program. We will promote our business to high school athletic programs by

approaching coaches and athletic directors to organize free training sessions with teams with a

goal of proving the worth of our services, gaining clients, and establishing strong relationships

with the athletic programs of nearby high schools. To increase interest within high school

athletic programs, we also will incentivize coaches with a group discount or donation.

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Financials

In order to successfully launch our business, we will need a $120,000 loan. To cover

additional startup costs, each owner will put forth $5,000. We calculated that our average

monthly invoicing per athlete is $300. In the first year we will acquire 200 athletes. This will be

our maximum amount until we expand our facility in five years, when we can offer more diverse

services to our athletes. The number of athletes will stay consistent throughout these five years

because 25% of our athletes will leave or graduate the program each year, and that 25% will be

replaced by incoming high school athletes.

After speaking with Michael Barbini, a local banker from Libertyville Bank & Trust

Company, we applied to receive a loan from them for $120,000. It is likely for them to accept

our application and give us the loan because we meet their qualifications. The loan terms are a

5% interest rate, which we intend to pay off in five years.

Speed Power and Agility will use Intuit Quickbooks Pro 2010 as its accounting system.

This system was chosen due to its price and offers many useful features. Being able to track

income, pay bills, print checks, manage payroll, and accept credit and debit cards are many of the

features that make this system worthwhile.

Year 1 Financial Summary: Our startup expenses cause us to lose money the first year. Our total revenue for the first

year is $315,000. Our total expenses are $360,000. Our expenses include salaries and benefits,

loan/debt, depreciation of facilities and equipment, utilities, rent, marketing, legal fees, and

insurance. Our total loss is -$46,000. We will use splash marketing by front loading our

marketing to establish our name in the community. After the first two months marketing

expenses will be regulated to $550 per month. In the first year we have a slow customer base

build up, but by the end of the year we will cap at our goal of 200 athletes. Although we do not

generate profit the first year, we do break even in month eight (December). We break even

because by month eight we estimate to have 120 athletes in our program which generates

$36,000.

Year 3 Financial Summary: By year three, we will have a consistent 200 athletes. We will also be offering weekly

children’s classes as a secondary source of revenue. This substantially increases our gross

income from year one. The gross income for year three is $740,000. The revenue gained from

sales will be put towards equipment maintenance costs, as athletic equipment tends to wear out

quickly. Our profit for year three is $220,000. This is reasonable as we are not using as much

money on startup expenses and we also have a stable source of revenue.

Year 5 Financial Summary: Our goal is to expand our facility in year five. This means we will have to pay for

additional equipment, rent, and an increased number of staff. We will counter these costs with

more customers, as our expanded facility and new trainers will be able to work with more

athletes and offer more diverse services. Since we are spending so much on expansion costs, our

profit will be lower. Year five profit is $187,500.

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Supply List

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Monthly cash flow: In our first year, our main source of revenue is our sales, so we will collect payments at

the beginning of each month so we can accurately manage receivables. Equipment costs are paid

over the span of the year because the assumption is that the equipment, such as the turf and

rubber track, will be paid in terms from the manufacturer or supplier.

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Waiver of Liability

This agreement releases Speed Power Agility from all liability relating to injuries that may occur

during personal fitness training. By signing this agreement, I agree to hold Speed Power and

Agility entirely free from any liability, including financial responsibility for injuries incurred,

regardless of whether injuries are caused by negligence.

I also acknowledge the risks involved in athletic training. These include, but are not limited to,

personal injury, heart attack, and death. I swear that I am participating voluntarily, and that all

risks have been made clear to me. Additionally, I do not have any conditions that will increase

my likelihood of experiencing injuries while engaging in this activity.

By signing below I forfeit all right to bring a suit against Speed Power Agility for any reason. In

return, I will receive personal fitness training. I will also make every effort to obey safety

precautions as listed in writing and as explained to me verbally. I will ask for clarification when

needed.

I, _________________, fully understand and agree to the above terms. _________________

(Participant) Date

o I grant permission to Speed Power and Agility to post my name, photo, and statistics on

Speed Power and Agility’s web site, Twitter account (@SpdPwrAgility), and Facebook

account.

o I do not grant permission to Speed Power and Agility to post my name, photo, and

statistics on Speed Power and Agility’s web site, Twitter account (@SpdPwrAgility), and

Facebook account.

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Resources

"2013-2014 High School Athletics Participation Survey." National Federation of

State High School Associations. N.p., 2014. Web. 10 Jan. 2015.

<http://www.nfhs.org/ParticipationStatics/ParticipationStatics.aspx/>.

"7(a) Loan Amounts, Fees, and Interest Rates." U.S. Small Business Administration. N.p., n.d.

Web.

Google Maps. N.p., n.d. Web. 11 Feb. 2015.

<https://www.google.com/maps/search/317+Woodwork+Lane/>.

"Fitness Trainers and Instructors-Summary." U.S. Bureau of Labor Statistics. U.S. Bureau of Labor

Statistics, n.d. Web. 18 Apr. 2015.

"Illinois School District Demographic Profiles." ProximityOne. N.p., 2015. Web.

10 Jan. 2015. <http://proximityone.com/il_sdc.htm>.

"Illinois Ranks Fourth In High School Sports Participation As National Numbers Continue To

Grow IHSA." IHSA, 20 Aug. 2014. Web. 17 Apr. 2015.

Mercer, Lisa. "Statistics on Personal Training." LIVESTRONG.COM. LIVESTRONG.COM, 03

Jan. 2011. Web. 19 Apr. 2015.

"Personal Trainers in the US: Market Research Report." Personal Trainers in the US Market

Research. N.p., n.d. Web. 18 Apr. 2015.

"Personal Trainer Salary | How Much Do Trainers Make?" Personal Trainer Salary. National

Federation of Personal Trainers, n.d. Web. 04 May 2015.

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Additional Resources

Barbini, Michael, Vice President Business Banking, Libertyville Banking & Trust Company.

Personal Interview. April 2015.

Miller, Joann, Co-Owner, Miller Insurance Agency. Personal Interview. April 2015.