HEALTH & PERFORMANCE
” #1 Stop to Enhance Performance and Wellness!”
4501 Rt. 42, Suite 15
Turnersville, NJ 08012
1.0 EXECUTIVE SUMMARY
Through the years, the fitness club market has seen its share of segmentation. Image-conscious,
youthful consumers have been provided upscale, commercial options like Bally’s Total Fitness;
middle-aged women were offered niche franchises like Curves; and less discriminating
consumers had catch-all, non-profit options like university gyms and YMCAs.
Since it origins nearly four decades ago, the health and fitness market has become saturated with
similar clubs that tout state-of-the art training equipment. The commercial nature of these clubs,
which operate with annual contracts, open memberships, and a transient, moderately qualified
work force, does little to create a strong connection with their consumers. This critical disconnect
is evident in recent market forecasts, which show a slowdown in revenue growth and club
expansion outpacing membership. It also creates a lucrative opportunity for a new, sleeker
fitness center model – the personal training studio (PTS) – to offer customized workout
programs, expert health and wellness coaching, sports education for participating athletes and
team members, and full accountability from both the consumer and PTS provider.
Many franchise think about health in terms of the physical component only. A relatively new
trend has been developing underneath the surface of the fitness market, and that is individuals
want services that help them more than just physically. More and more people , especially the
baby boomer population, are focusing on other areas of their health. Based on this, PINNACLE
feels the nation is aching to enhance performance in all avenues of their daily life. Our plan is to
expand Pinnacle Health and Performance personal training studio in order to move towards this
new trend of enhancing overall wellness, as well as begin to market the local sports athletes and
teams who frequently purchase our personal training sessions. We plan to offer wellness
coaching to members and plan to help sports teams develop their performance skills with eam
building and training education such as nutrition and stress management. Overall, by taking on
these services now, we classify our self as an Health and Performance Enhancement Center that
not only transcends the physical, but also the wellness approach required for optimal daily living.
Pinnacle: HEALTH & PERFORMANCE ENHANCEMENT CENTER is the first PTS to fill both this
niche fitness as well as add supplemental training and wellness enhancement in affluent
Washington Township, Gloucester County. In just 6 months of operation and with modest
marketing effort to date, monthly revenues of $12,500 (for on-site individual and small group
training) are more than double the company’s expenses and costs of services. Our business will
give people more than just bodily function and skill so far, and seems ideal due to the feasible
need for a busy-driven American society to slow down and gain more awareness on the
connection between being well and physical performance. We will offer the lowest prices that
we possibly can while still making a profit. We will also have a friendly, knowledgeable staff in
order to meet the needs of our clients.
2.0 COMPANY OVERVIEW
2.1 Our Mission, Value, and Vision
Our Mission is to enhance our client’s fitness and health through education, fitness and healthy
lifestyle goal-setting, and scholarly health and performance practices in pursuit of elevating
one’s overall quality of life.
We Value our clientele and their commitment to our belief in the power of enhancing bodily
function through combining physical training and skill training, with knowledge and active focus
on health and wellness pertaining to the individuals goals and aspirations
Our Vision is to be recognized and valued by the clients as innovative professionals in the
wellness and health and exercise science field; to be the elite fitness option, and place to turn to
for team-building and sports skills training.
2.2 BUSINESS SERVICES:
Services offered by appointment only except Saturday Hours 9-2 for weekend seminars
Pinnacle Health & Performance (PHP) currently operates out of a private health and performance
enhancement facility with a highly qualified staff. Pinnacle clients receive the benefits of our
elite service in the privacy of our exclusive facility without the distraction of large numbers of
membership exercisers, typical of our competitors. The purpose of the Pinnacle services offered
is to improve the quality of life for clients through expert training techniques, sports team
education, and wellness practices all delivered by college-educated fitness professionals. In
addition to anaerobic, aerobic, and skill-related physical training, clients benefit from
psychological motivation and nutritional consultations which promote healthy lifestyle changes.
- PERSONAL TRAINING – Individual or Small Group – On site or Offsite
This is where our fitness professionals will work one-on-one with clients in the comfort of our
private facility to achieve their health related goals
One-on-One Personal Training Rates:
Training Session(s) Monthly Payment
per week (30/45 minute session)
1 $130 / $145
2 $240 / $335
3 $335 / $465
4 $415 / $624
On-Site Small Group Personal Training:
This is when friends, family, and co-workers with similar fitness levels want to split the cost
of personal training they can form small groups up to five and work out in the facility with
one of PHP’s fitness professionals.
Small Group Training Rates
Number of Training Session(s) per Monthly Payment
Members in week per person
Group (30/45 minute
2 1 $75 / $104
2 2 $144 / $199
2 3 $195 / $286
3 1 ---- / $85
3 2 ---- / $165
3 3 ---- / $234
4 1 ---- / $69
4 2 ---- / $130
4 3 ---- / $182
5 1 ---- / $52
5 2 ---- / $95
5 3 ---- / $130
*Note: 30 minute sessions not available to groups containing 3 or more members.
Off-site individual personal training (in-home)
PHP currently has no trainers working with individuals outside of the facility; however,
they each have had experience in this area. This is an avenue that PHP plans to utilize
as the company continues to grow.
*Off-site individual personal training rates vary based on circumstances.
-Off-site small group training (schools, corporations)
Much like the Off-site individual training, PHP will develop this dimension in the future.
PHP is currently in the process of forming partnerships with Michaels Development
Company in Cherry Hill and multiple schools in the surrounding area.
*Off-site small group training rates vary based on circumstances.
- WELLNESS COACHING – Individual Sessions and Weekend Seminars
Wellness Coaching Rates:
Individual 1 hr session Be Well Weekend Seminars
$45 per session. $100 per month ( Saturdays 9-1)
WELLNESS COACHING offered at PINACLE ENHANCEMENT CENTER:
New Service Offered Individually or Weekend Group Seminars
Wellness enhancement is diverse, and ranges across seven dimensions including the physical
component, but also contain environmental, intellectual, spiritual, emotional, social, and
occupational dimensions. Listed below is a diagram that shows this structure.
Since our studio is currently in Vineland, we are going to pertain to the members of this society.
PURPOSE OF THE SERVICE:
Coaching is a professional relationship that is rooted on the belief that people are innately
innovative, resourceful, experts on their life. However, sometimes a mere guide is needed in
order to tap into this innate capability in order to enhance performance. Many people are using
coaches to help them link up the gap between where they are now and where they want to go, as
well as who they want to become. Coaching helps people set intentions and reach greater
success in various components of their life
How is coaching different from psychotherapy?
Psychotherapy typically focuses on how past events in a person's life may have created or
impacted their current situations and challenges. In loose terms, it seeks to undo and 'fix' a
problem. Coaching, on the other hand, originates under the premise that nothing is wrong. It
focuses on the present, empowering clients on their own unique path of discovery.
Understanding that all answers come from within each individual, and with the coach's guidance,
clients readily create their own solutions and actions toward powerful and lasting change.
Why is Combining Physical Training (i.e. Personal Training) with Coaching Important?
“Effects of Productivity in a Public Agency,” published in 1997 in P.P. Management established
that when training is combined with coaching, individuals increase their productivity by an
average of 88%, as compared to 22% with training alone.”- McKinley Consulting Group
- INDIVIDUAL SESSIONS: Sign up and by appointment basis schedule individual
consultations with a Life-coach to improve your performance on other areas of your life
besides your physical ability. Topics can include all dimensions of wellness: mental,
environmental, social, intellectual, emotional, spiritual, and physical. Goal-setting and
Intentions are heavily focused on as well.
- BE WELL WEEKEND SEMINARS: Sign up and each month get to go to wellness
seminars four or five times a month each Saturday from 9:00 AM till 1:00 PM (lunch
will be provided). Each month will focus on a theme and each session will work on
different aspects of the various wellness topics.
Wellness Coaching Principles:
Transformational (change) shifts that occur when there is a shift in the way people view
themselves or their context.
Developmental shifts occur by reshaping the underlying patterns of thinking and behavior
so people do live differently
Transactional (sustainability) shifts occur when people learn new skills and ways of
doing things better.
WELLNESS COACHING LIMITATIONS:
This service is in the start-up stage of develop. Therefore, since wellness coaching is a newly
added feature to the PINACCLE: Health & Wellness ENHANCEMENT CENTER, it may have
mixed reviews on necessity. Therefore, limitations consist of it being a start-up program, and that
it requires open and receptive clientele. The goal is to be able to gain support and encourage
members to try out some of the packages and increase involvement
WELLNESS COACHING STAFFING:
Dana Bender is a Graduate of Rowan University obtaining her Masters of Health Promotion.
She currently resides in Glassboro, and remains dedicated to three avenues: mind-body health,
wellness coaching, and environment advocacy. Dana works with individuals on an appointment
necessity at PINNACLE as well as plans out the Be Well seminars.
Our hiring goes is to inquire on craiglist.com for two college students willing to enter a training
program on how to be a life coach within the first year as a start-up program as interest of clients
progress. Primarily, Dana Bender will be the staff leader for this program in its beginning stages.
WELLNESS COACHING BUDGET:
PINNACLE ENHANCEMENT CENTER, LLC
WELLNESS COACHING SERVICE BUDGET
Estimated Cost of services/total expenses (monthly):
Cost of Service (159 hours at $20 an hour) $ 3,180
-Cost of BW Service (17 hours at $20 per hour) $ 340
Rent (800 sq ft at $4 per sq ft) $ 267
Marketing expense $ 1,000
On-site Education and Seminar Materials $ 400
Total operating expenses for both services: $ 5,187 per month
Net Profit (individualized sessions) $2,308 per month
Net Profit (BW service) $2,000 per month
Yearly Net Profit (individualized sessions) $ 27,696
Yearly Net Profit (BW Service) $ 24,000
TOTAL Yearly Net Profit (Both services) $ 51,696
-Individualized Wellness Coaching:
The Pinnacle Primary Wellness Coach (or an employee) would get paid 20 dollars an hour of the
$45 session, and 25 of that will go to the actual service. This $20 an hour for 159 hours of work a
month equals a monthly Individualized Wellness service cost of $3,180 (payment for coach)
The $25 left over from the $45 fee per session will be given to the business which equals $3,975
per month. Therefore, in adding together both numbers gives Pinnacle $7155 monthly revenue
for the individualized wellness sessions. The Net Profit comes out to be total Revenue of $2,308
per month, and $27,696 per year. [(159 hrs* $45 = 7155) – 5,187(operating costs) = $2,308]
-Be Well Seminar Service:
Be Well Seminars is $100 per month. Since the seminars are from four hours long per Saturday,
and there are 52 weeks in a year this number equals 208. When dividing this number by the
twelve months in a year, it comes out that the Coach will work seventeen hours per month for the
BW service. Since it costs $20 an hour to pay a coach to do this for seventeen hours, it becomes
$340 a month to run the BW service. However, seventeen hours times the twenty members who
purchased a yearly contract, the BW service net profit is 2,000 a month and $24,000 a year.
Estimated monthly cost of individualized service at $3,529, and monthly revenue of $9,155, the
gross margin is 61%. Gross margin percent is Revenue – Cost of Good Sold divided by Revenue
and multiplied by 100. MATH: [9,155– 3,529/ 9,155 X 100 =5626/ 9155= .61 * 100 = 61%]
- TEAM SPORTS EDUCATION offered at PINNACLE ENHANCEMENT CENTER
Onsite and Offsite PINNACLE Service offered youth to colligate
PURPOSE OF THE SERVICE: This new service works to improve athletic performance in a
positive way with a one on one training experience. The program focuses on strength
training, endurance instruction, and educating athletes on nutrition. The goal of this program
is to educate, teach, and motivate athletes in order to achieve their potential in on and off the
field. The service offers different packages as well as weekend seminars.
(NEED INFO HERE)
TEAM EDUCATION PACKAGES:
Training Session(s) Monthly Payment
per week (30/45 minute session)
1 $130 / $145
2 $240 / $335
3 $335 / $465
4 $415 / $624
*Off-sit group training rates vary based on circumstances.
Speed & Conditioning Package
Create custom program for sports teams that provides hands on instruction. The program
will put each athlete through an intense training program that increases individual speed,
improves overall individual conditioning and enhances performance.
Team Training Package:
This will help work to increase team’s speed, quickness, and fitness levels. A seminar on
proper nutrition for fitness will be included. The goal of each program will be to enhance
Individual Training Package:
Works one on one with athletes on speed, agility, first step quickness and many other areas to
take their game to the next level. Also includes seminar on eating nutritiously for your sport.
Team Building- This will help work to increase team’s speed, quickness, and fitness levels.
Nutrition for fitness- Can be individual or team. Discuss proper nutrition for fitness.
Seminar for Coaches- Seminar on speed development, nutrition and injury prevention.
Educational Weekend Program Topics:
Nutrition education for athletes’ performance
Nutrition education for the average exerciser
Stress management for team stress
Importance of Training the Body for Performance
Optimal Performance: What does it mean??
SPORTS ENHANCEMENT TRAINING AND EDUCATION STAFFING:
-Both Lauren Crennan and Scott Yaeger will be running the team training on and off site until
the program develops more. Hiring of more staff members will be done when necessary and
PINNACLE ENHANCEMENT CENTER, LLC
SPORTS TRAINING BUDGET:
2.3. PINNACLE SERVICE LIMITATIONS:
The current facility (1600sq ft) comfortably supports three trainers working part-time. The
location, in a business center, has capacity for growth to accommodate five personal trainers
working at one time. However, 4800sq ft of unused space within the facility could be
transformed easily (financially) into revenue generating space when the business matures to
point of expansion. If the current 1600sq ft of space is kept as is (800sq ft of which is used for
actual training) it can accommodate over 1200 personal training hours per month. Minor
renovations would have to be made totaling approximately $45,000. Additional equipment
specifically for this program will be another $50,000. WRITE UP EXPANSION DESCRIPTION
FOR ADDITIONAL 4800 sq ft
2.4 Proprietary rights
Pinnacle Health & Performance, LLC owns all assets (equipment, name, tagline, internet
domain, and logo) except the building. PHP signed a five-year lease agreeing to follow the
regulations of the proprietor.
2.5 Service liability
PHP has obtained health club insurance for the facility and each trainer employed by the
company is required to carry personal liability insurance covering fitness instruction.
3.0 THE BUSINESS CONCEPT
3.1 Unique Qualities
Washington Township is currently an underserved market, by way of having too many
inexpensive fitness options and too few that actually work. It’s no surprise that obesity is on the
rise and that two of the three leading causes of death (heart disease and stroke) are lifestyle
related chronic illnesses (Source: National Center for Health Statistics).Yet, every year countless
individuals sign yearly contracts with huge commercial health clubs and attend them sparingly.
With PHP’s unique services being offered in an intimate and private environment, clients can
work with our trainers to address these lifestyle issues personally as they should. There is
nothing personal or professional about showing up to a training session only to find that your
unqualified, muscle bound trainer is going to winch the client up and lug them through the mob
of random exercisers in this enormous sports club and plop them down on the only available
piece of equipment in the place. Pinnacle would like to thank its competitors for delivering that
type of service…it provides great opportunities.
3.2 Current Situation
As stated earlier, Pinnacle presently only profits from the On-site personal and small group
training. PHP currently provides services to 15 males and 36 females --33 of whom are ages 30-
65 and the remaining 18 are younger. Students make up 19%, followed by Education
Professionals at 14% and Healthcare Professionals at 13%. The majority of clients reside in
Sewell and Turnersville (29). PHP categorizes its clients by goals: Weight Management (28),
General Fitness (13), and Performance (10). (See appendix “Client Profile” spreadsheet and
charts for detailed description.)
3.3 Customer Satisfaction
PHP is dedicated to seeing that each client receives the highest quality service. In an attempt to
ensure complete customer satisfaction and increase the opportunity for client retention and
referral, PHP has developed a Client Satisfaction Evaluation Form. This method of customer
feedback will distinguish Pinnacle from the competition, as the majority of fitness centers simply
use comment boxes. (See appendix, “Client Evaluation Form”)
4.0 MARKET OPPURTUNITY
4.1 Current industry size
According to the 2002 Economic Census of Gloucester County released in August 2005, there
are 30 establishments in the 713940 sector (Fitness & Recreational Sports Centers). There are
five major commercial health clubs in the nearby area (5 mile radius) that offer personal training,
but it is conducted in a public gym setting with open memberships. These gyms clearly do not
specialize in personal training. Only two facilities nearby offer personal training in a private
setting; however, they compromise the individualized attention aspect of the training session by
pairing individuals with other people and training in group or class settings.
4.2 Growth potential of the industry
The current report (U.S. Census Bureau) of housing units in Gloucester County, New Jersey
(2006) shows a total of 105,502 units compared to 95,054 in the previous report (2000),
indicating an increase of housing units by almost 10%. During this six year period, the total
population increased by 27,358 people. With the population continuously on the rise, Gloucester
County residents have a growing need for facilities to meet their health and fitness needs. It is
also the most advantageous time to introduce an evolutionary fitness facility that fills the void of
individualized attention and professionalism.
4.3 Target Markets
PHP has multiple targets from different age groups with different goals that all fall into one
category: clients who have an appreciation for professionalism and excellence. One main target
and main source of current clientele is the middle-aged female who wants to lose weight. PHP
also targets young male athletes who desire to improve sports performance. This was taken into
consideration when forming the corporation: helping individuals reach the peak of their goal,
whether it is general health or skill-related performance. PHP plans to use a segmented
marketing strategy to reach separate populations at separate times.
Source: U.S. Census Bureau, 2006 American Community Survey (ACS)
Gloucester County, New Jersey
ACS Demographic Estimates - show more >> Estimate Percent U.S. Margin of Error
Total population 282,031 *****
Male 137,558 48.8 49.2% +/-586
Female 144,473 51.2 50.8% +/-586
Median age (years) 37.5 (X) 36.4 +/-0.4
Under 5 years 15,874 5.6 6.8% +/-294
18 years and over 216,600 76.8 75.4% *****
65 years and over 32,647 11.6 12.4% +/-744
One race 276,800 98.1 98.0% +/-1,699
White 238,991 84.7 73.9% +/-1,319
Black or African American 27,447 9.7 12.4% +/-1,569
American Indian and Alaska Native 381 0.1 0.8% +/-353
Asian 6,416 2.3 4.4% +/-383
Native Hawaiian and Other Pacific Islander 73 0.0 0.1% +/-120
Some other race 3,492 1.2 6.3% +/-1,078
Two or more races 5,231 1.9 2.0% +/-1,699
Hispanic or Latino (of any race) 9,458 3.4 14.8% *****
Source: U.S. Census Bureau, 2000 American Community Survey
“In Washington Township the population was spread out with 28.7% under the age of 18, 8.0%
from 18 to 24, 29.6% from 25 to 44, 24.7% from 45 to 64, and 9.0% who were 65 years of age or
older. The median age was 36 years. For every 100 females there were 94.0 males. For every 100
females age 18 and over, there were 89.8 males.
The median income for a household in the township was $66,546, and the median income for a
family was $74,661. Males had a median income of $51,319 versus $35,018 for females. The per
capita income for the township was $25,705. About 2.5% of families and 3.2% of the population
were below the poverty line, including 3.2% of those under age 18 and 4.5% of those age 65 or
Washington Township could be viewed as the frontline between open space and home
developers. A township that was once composed of several housing projects gravitating around
the Wedgwood, Whitman Square, Birches, Birches West, and Hurffville neighborhoods has
exploded outwards and is also increasing in volume around the centers.”
5.0 COMPETITION ANALYSIS
5.1 Competitor Profile
Pinnacle’s competition includes the few surrounding fitness centers that offer personal training
as a service. The oversized health clubs benefit from individuals that pay membership fees and
don’t place wear and tear on the facility. They also know that members will be forced to seek
their “expertise” when in need; however, it isn’t evident to the consumer that the source of
“expertise” isn’t an expert at all. Along with the private fitness facilities, in an attempt to
increase gross margin on training sessions, these companies typically hire inexpensive,
inexperienced, and unqualified employees. This may be cost effective but not very customer
focused. On average PHP is paying trainers six dollars more per hour and still maintaining a
competitive price of $24-$30 per 30 minute session, which is below the market average for this
type of specialty offering.
A form of personal training that has recently become popular to consumers is Small Group
Training (SGT). SGT is an inexpensive, fun, and sociable alternative to one-on-one training.
SGT is offered by the competition but the personalization and client’s needs are compromised by
random pairing. In other facilities clients can be paired with strangers at the trainer’s discretion
and the client’s expense. PHP offers SGT under strictly enforced conditions: no groups with
more than five members, the clients choose group members, and all group members must have
similar goals and fitness levels. Without these key ingredients the clients may be deprived of the
advanced level of service they deserve.
5.2 Industry Trends
Much like other industries, the fitness world should be gearing up to accommodate the Older
Adult population. By 2050, the U.S. Census Bureau projects that 80 million people will be 65
and older, representing 20.4 percent of the population. In addition to overall health and wellness,
functional exercise is continuing to grow, seen in the eyes of the retirement community as a way
to stay active and FUNCTIONAL. Pinnacle Health & Performance trainers are equipped to stay
with the trends by creating functional exercises that focus on areas such as muscular strength,
balance, and flexibility. The importance of focus on these areas is becoming widely known by
the exposure of research studies performed on the elderly population. PHP currently has zero
clients above the age of 65 and records zero training sessions from the time 12pm to 3pm, which
is when most seniors are available. This is an area that will be addressed during the promotional
phase in May 2008. In addition to encouraging elderly individuals to visit the facility for a risk
free trial session, PHP will offer to train at senior centers and in homes.
Another trend in the industry is circuit training, which has been on the rise for several years. In
order to compete with the 30 minute circuit training centers our trainers have incorporated this
type of method into our personal training sessions. Not only do we offer this “station” type
program but we exceed the standards of the other centers by offering our unique one-on-one
based training to increase the client’s probability for goal-related results and reduce the risk of
resistance training related injury.
6.0 MARKET STRATEGIES
6.1 Television early adopters, early majority
March 7th 2007 will mark the start of a thirteen week television series hosted by Phillip Pirollo.
The 30 minute informational show, “Unfit for Fitness” will air every Friday night at 5:30pm on
the local access Comcast station, reaching over 120,000 homes in South Jersey. The premise of
the show is simple: Phil Pirollo will co-host the talk show (at Pinnacle Health & Performance
Personal Training Studio) with an unfit individual discussing the exercise barriers experienced
by the average population. The idea is to encourage the viewer to feel more comfortable with the
concept of exercise by letting them know that the trainers at Pinnacle understand how they feel.
Because the show will be filmed at the studio, PHP will benefit by increasing consumer
awareness and the viewer will gain some knowledge of the benefits of physical activity. PHP has
a goal to be known as caring and trustworthy fitness experts.
The program will be produced by Everlasting Production Company. The total cost of shooting,
editing, producing, and airing ($400) will be paid for by its main sponsor, Lamp & Shade Works.
Pinnacle has profited by selling 60 seconds of ad time to one other company for $260 covering
the 13 weeks.
PHP had a 30 second commercial spot produced by Everlasting Production Company ($200) and
plans to air it three times throughout its weekly television show. In addition, PHP has evaluated a
media buy with Comcast Spotlight, with intentions of airing the spot on BRAVO, HGTV, or
STYLE. The estimated cost of this ad will be approximately $40-$50 per spot (30 seconds).
6.2 Print Same
Moonlight Design is the company that created the PHP logo and is currently working on a full
page print ad to be placed in one of the local magazines (The Clipper, Only the Best, etc.). The
money from this competition, combined with money allocated for marketing will be used to
systematically place ads to build awareness and retention. The estimated cost of this type of
advertising is about $500 per ad. Because this type of advertising may not reach the more
affluent consumer, PHP plans to focus strictly on promoting its lowest cost service (Open
Training) with coupons and free trials.
6.3 Events Late majority, Laggards
PHP has participated in five external events and one internal event in six months of doing
business. The external events included: The Washington Township Super Saturday, The Pitman
Craft Fair, The Gloucester County Health Department Women’s Health Summit, and the
sponsoring of two softball teams. These types of promotions are inexpensive yet quite beneficial
because the community views participating vendors and supporters as proactive companies that
are excited about their product or service.
The internal event was the “Open House Private Party”. In promoting this event we encouraged
friends, family members, and current clients to invite others to join PHP at the facility for a
friendly time of food and fellowship. PHP plans to continue to utilize this strategy by holding
free nutrition seminars and fitness competitions or evaluations for sports teams. PHP can also
promote a free fitness class offered weekly to a local church or community center. Being
progressive and innovative is built into the culture of the PHP organization.
6.4 Internet Innovators, Early adopters, early majority
Pinnacle is currently developing a plan to engage in localized search engine optimization. PHP is
going to post weekly informative newsletters on its web site (www.elevateyourfitness.com &
www.elevateyourtraining.com) about health, fitness, and nutrition and how related topics are
affecting the surrounding communities. Clients and others will have access to the articles and
have the opportunity to respond in blogs. Both the posting of the newsletter and the responses
from readers will increase site activity, thus listing the site higher in searches. Potential clients
are also more likely to find the site in searches due to the strategic use of keywords in the articles
such as: Washington Township, NJ, fitness, personal training, etc. Finally, this marketing avenue
will expose more consumers to PHP’s call to action: a free trial session. However, much like the
other marketing strategies, the main goal is to be branded as THE experts in personal fitness.
6.5 Referral Program
PHP has developed a referral program to provide incentive for current clients to bring in
potential clients. The program is as follows: for each new client that a current client brings in, the
current client receives free sessions. The amount of free sessions that the current client receives
is based on the amount of sessions per week that the new client signs up for. For example, if a
current client brings in a new client that signs up for one month of two sessions per week, the
current client receives two free sessions.
7.0 MANAGEMENT TEAM
7.1. MANAGEMENT PHILOSOPHY:
Our Management philosophy reinforces our commitment to ethics and excellence.
As managers we:
Demand honesty, fairness, and professionalism from ourselves and from our co-workers.
Agree to communicate honestly and openly with all personnel.
Strive to make informed, objective, and ethical business decisions.
Recognize the needs of our employees, customers, suppliers, and the rights of our business.
Embrace our responsibility to provide an atmosphere that makes work rewarding and enjoyable.
Understand that success requires action, and will lead by example to create productivity.
Accept our obligation to protect the image of our enterprise through our actions and words.
Expand our vision and enhance our health and wellness techniques routinely.
Acknowledge our duty to enhance others’ lives, and to set a positive example.
Promise – as a management team – to be loyal, disciplined, competent, and trustworthy
7.2 Business Roles
PHP has two equal partners that serve as owners and operators of Pinnacle Health &
Performance ENHANCEMENT CENTER. The role of the owners is to serve and be seen in the
community as experts in the field of Health and Exercise Science. To be health and fitness
advocates is an important job, not only for the business but to fulfill the passion that drives
fitness professionals to want to help others. Nothing is more important to a health promotion
advocate than to take part in influencing positive change in individuals and communities.
Each member of the organization will be as passionate and driven as the Mission Team Leader
in achieving the main goal: improving the individual’s overall quality of life.
Phillip Pirollo: For the past 6 years Phil has dedicated his life to becoming a better fitness
professional. He received an Associates Degree in Exercise Science from Gloucester County
College, three national certifications from the American Aerobic Association International
(AAAI), International Sports Medicine Association (ISMA), and completed his studies at Rowan
University in Health Promotion and Fitness Management. Living and working in his home town
of Washington Township has helped Phil to realize a great sense of achievement through
contributions to a healthier community. Phil has distinguished himself from competitors by
continuing his education in exercise prescription and nutrition. All trainers at Pinnacle Health &
Performance are committed to continuing education.
Dana Bender: Coming from a slightly different mindset than her colleagues, Dana Bender
focuses on mind-body health and wellness, and is a certified Life-coach through the _______.
Not only has Dana been an active life-coach for 2 years, Dana attends the National Wellness
Institute as a presenter, as well as take workshops and continuing education credit weekend
retreats in order to improve her skills in yoga, pilates, mindfulness, and goal-setting. Dana is
bringing her love for improving people’s positive outlook and seven dimensions of wellness,
Dana is committed to improving her client’s well-being in more than just the physical way.
Lauren Crennan: Four years ago Lauren graduated from Rowan University with her degree in
Health Promotion and Fitness Management. All four years of her college experience she was a
member of the women’s lacrosse team and helped out the assistant coach during her senior year.
Working at enhancing her coaching skills, Lauren has taken workshops to enter herself in the
field of coaching and training. Two years ago, Lauren got her strength and conditioning
certification (CSCS) from the National Strength and Conditioning Association and her certified
Personal Trainer certification (NSCA-CPT).
Scott Yaeger: Scott graduated from Rowan University with a degree in Health and Exercise
Science with a specialization in Health Promotion and Fitness Management. He has a masters
degree in Sports Management. Scott has participated in group exercise and personal training for
a little more than five years now. He has a group exercise certification through the Aerobics and
Fitness Association of America (AFAA), a personal training certification through the American
Council on Exercise (ACE) and a certified Spin Instructor.
The owners of PHP plan to slowly phase out their participation in operations, especially as
business continues to grow. Ultimately, PHP must obtain a full time operations manager for the
Washington Township Studio so that the owners can evaluate the feasibility and oversee the
launch of additional studio locations. In the current stage of business, the owners are responsible
for most of the operating duties.
Phil Pirollo is mainly responsible for sales and marketing. The requirements of this position
include developing marketing strategies, in creating promotional packages, directly selling
service packages, etc. PHP has discussed eventually hiring a specialist to facilitate future growth.
Scott Yeager is mainly responsible for managing accounts and making financial decisions and
projections. Although this is a demanding position, PHP has not discussed hiring an individual to
assume these roles. However, subcontracting out to an accounting company may be necessary to
keep pace with growth.
Business Development Manager
PHP is in the process of training two Business Development Manager to be exclusively
responsible for developing Pinnacle’s Off-site training services. Like Phil Pirollo and Scott
Yaeger, Dana Bender and Lauren Crennan are college educated fitness professional dedicated to
excelling in the field.
8.0 FINANCIAL PROJECTIONS
8.1. Start-up Costs
8.2 Growth Potential
Given the current situation, PHP trainers combined for approximately 233 hours per month
working with clients (51); at this rate ($20 per hour) the monthly cost of all sessions is
$4,651.40. With a monthly cost of service at $4,651.40 and monthly revenue of $12,522.00 the
gross margin is 62.85%. These numbers are based solely on the On-site individual personal
training sessions and the On-site small group training sessions. Listed is a schematic of financial
projections for these services:
Facility Personal Gross Est. cost of Est. Profit Est. Yearly
Square Training Revenue services/total (monthly) Profit
Footage Hours (monthly) expenses (monthly)
Year 1 800 300 $16,122.75 $7000.00 $9,122.75 $109,473.00
Year 3 800 475 $25,531.25 $10,750.00 $14,781.25 $177,375.00
Year 5 800 650 $34,450.00 $14,500.00 $19,950.00 $239,400.00
8.3 BREAKEVEN ANALYSIS
8.4 BUDGET JUSTIFICATION
8.5 PLAN FOR FUTHER ACTION:
We plan on, as the business and services grow and become more established to take a more
management role rather than the hands on approach in starting up. At this point, with our new
services, we need to focus on promoting the efforts and then eventually bring in more employees
that are able to work without the supervision of the founding team.. Once expansion takes place
in terms of revenue and clients, we will hire more people to report directly to the founding team.