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					              2008
No Limit Fitness Center




              Jake Carrelli, Chris Hetkowski, Bill Lutz,
              Steven Sellati
              No Limit Fitness Center
              12/9/2008
                                                No Limit Fitness Center 2008




The concept of No Limit Fitness Center was created by Steven Sellati, Jacob Carrelli, Chris
Hetkowski, and Bill Lutz. We named this fitness center based on the idea that there are no limits
for individuals who are determined to achieve their goals in life. Our fitness center will provide a
modern exercise facility with various convenience services for our members. Our first location
will be established at the CAN DO Corporate Center Office Building, 40 Azalea Drive, Drums,
PA. We chose this area due to the proximity to an economically viable community, school
district, and businesses within the corporate industrial park.




Although Americans have become more conscious of health and fitness, it is still difficult to fit
exercise into our busy lives. The mission of No Limit Fitness Center is to provide an exercise
environment where our members can achieve their health and fitness goals within the constraints
of their schedule. We seek to create an atmosphere of comfort, where members will have easy-
access to a variety of modern equipment to maximize the desired results of their training goals.




Jake Carrelli, Marketing and PR Manager
Jacob Carrelli is a junior at Penn State University, majoring in business with a management and
marketing option. He has a strong background in marketing and small business operation. As
co-owner and operator of a local convenience store he understands the operation of a small
business. Jacob also understands the importance of business involvement in the community. He
runs the everyday operations of the business and is actively involved in the community. With this
experience he will be in charge of Marketing and Public Relations for No Limit Fitness Center.

Steven Sellati, Operations Manager
Steven Sellati is a senior at Penn State University, majoring in management with a marketing
option. Steven has worked in marketing, sales, and customer service over the past three years.
Over the past ten years, he has been a member of numerous gyms and is familiar with the daily
operations of a fitness center. Within the community, Steven has organized clubs and charity
events such as the Bachelors of Science in Business Society and the Memory Walk for
Alzheimer’s disease research. Based on Steven’s skills and experience in dealing with customer
care, he will manage the day-to-day operations of No Limit Fitness Center.




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                                               No Limit Fitness Center 2008
Bill Lutz, Purchasing Manager
Bill Lutz is a senior member of the Penn State Hazleton Business Program. He has worked in
varying fields including customer service, insurance, and investing. He is a member of the Penn
State Hazleton Business Society, and a resident of Franklin, Pennsylvania.

Christopher Hetkowski, Accountant
Christopher will be graduating from Penn State University in 2010 with a bachelor’s degree in
Business Administration. He has been working full-time during his in college. From 2005-2006,
he worked as an accounting intern at CAN DO, Inc. until 2007. In 2007, he accepted a job at
Dennis R. Moore & Associates accounting firm as an accountant. There he assists on audits of
various companies in Northeast Pennsylvania, completed individual and corporate tax returns,
and various accounting services.




In addition to a modern fitness facility, No Limit Fitness Center will provide unique services to
accommodate the various needs of our customers. The tactics we will use to meet our objectives
combine the best aspects of the fitness industry along with new innovative ideas to product the
ultimate exercise experience. Our advantages will provide quality service, flexibility, and
convenience. These factors will differentiate No Limit Fitness Center from our competition and
lead us to success.




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                                                  No Limit Fitness Center 2008



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Contents
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Works Cited ................................................................................................................................................. 38




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1. Provide the means for a higher quality of life for our members.

2. Establish a healthy relationship with our members.

3. Make a positive impact in the surrounding communities.

4. Function as an energy efficient, environmentally friendly facility.




1. The first two years of operation will serve the purpose of growing and maintaining our
   member base; we project 150 members within the first year of operation.

2. Through the growth and retention of our members, we intent to expand and provide
   additional benefits and services to our members; these additional services will generate
   more revenue which will be retained for future profitable opportunities.

3. After the successful growth of the Butler facility, we plan to expand No Limit Fitness
   Center into new and profitable venues.




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                                   No Limit Fitness Center 2008



        INTERNAL               STRENGHTS                          WEAKNESSES
Management          Management is well rounded in      Will be a learning experience,
                    business with experienced in the   where some mistakes may occur.
                    working of a success business,
                    and understands the workings of
                    a gym.
Offerings           Brand new facility, safe and       Membership fees and services
                    friendly environment. Long         may be expensive.
                    hours of operation.
Marketing           Newspaper and flyers will be our   Lack of early finances will not
                    most cost effective marketing      allow us to use TV or radio
                    tools, along with word of mouth.   advertising.
Personal            One full time manager, two part    Does not create many jobs.
                    time front desk employees.
Finance             Opportunity to build long term     Lack of start-up finances will lead
                    customer base therefore long       to a large debt in the first years
                    term revenue.                      of operation.


         EXTERNAL            OPPORTUNITY                            THREATS
Consumer/Social     Increased awareness by society     Home gyms and the ability to
                    towards health and appearance.     work out without leaving the
                                                       house.
Competitive         Provide safe, comfortable          Customers happy with their
                    environment for all members.       current gym, people not wanting
                                                       to work out.
Technology          Using the most up to date          Hard to constantly update to
                    equipment.                         new equipment.
Economy             Mid to Upper class area, but       Having a membership to a
                    affordable for everyone            fitness club is a luxury expense
                                                       and requires disposable finances.
Regulatory          Tax discounts through Can-Do       Higher taxes possible under a
                    because of our location.           new President of the United
                                                       States.




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                                               No Limit Fitness Center 2008


   1. Allow our members training regiment to easily fit into their everyday life.

   2. Our customer service must go above and beyond the normal expectations of the average
      fitness center.

   3. Actively participate in the community by supporting local charities.

   4. Energy efficient lighting, skylights, and a conscious recycling effort. We also plan to
      implement exercise machinery that stores kinetic energy to reduce energy expenditure.

   5. A large portion of our profits will be reinvested into upgrading the facility and creating
      better value for our members.

   6. Our intention is to expand our member base through various promotions/advertisements,
      membership specials, and positive referrals from our satisfied members.

   7. When No Limit Fitness Center, Drums achieves maturity, we will explore other venues
      that may be viable for business.




In addition to a modern fitness facility, No Limit Fitness Center will provide unique services to
accommodate the various needs of our customers. The tactics we will use to meet our objectives
combine the best aspects of the fitness industry along with new innovative ideas to produce the
ultimate exercise experience. Our advantages will provide quality service, flexibility, and
convenience.

Fitness Services:

      Modern Equipment
      Cardio Room
      Aerobics Room
      Fitness Classes
      Boxing
      Martial Arts
      Juice Bar
      Fitness Apparel




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                                                  No Limit Fitness Center 2008
Flexibility:

     Our fitness center will be open 24 hours, with a key fob entry system after 10 pm.

     Our memberships are offered in blocks of days, instead of monthly memberships.
      Members may purchase in 30, 90, 180, or 365 day increments. Memberships will expire
      when all the days have been exhausted; some restrictions may apply.


     We hope to acquire an adjacent area of space (2,494 sq. ft.) Within this space we will add more
      exercise equipment, and also add additional services such as a tanning salon and a supplement
      shop.

Convenience Services:

       Day Care
       Concierge Service
       Wireless Internet Connection
       Fax Machine
       Copier/Printer/Scanner

Future Offerings:

     Tanning Salon
     Supplement Store


By implementing these tactics, we believe we can create and sustain our competitive advantage.
We also have management decision makers that are experienced in small business, and have
strong educational backgrounds in management, marketing, accounting, and finance. There is an
understanding that to remain competitive it is necessary to continuously innovate and adapt to
the needs of our members.

As seen in Figure 2, the success of our company will depend on our core values of social
responsibility. The social responsibility pyramid on the following page outlines our core values
in the areas of philanthropic, legal, ethical, and economic social responsibilities.




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                                               No Limit Fitness Center 2008




Philanthropic:
No Limit Fitness Center intends to be an active participant in sponsoring and organizing
community charity events.

Legal:
No Limit Fitness Center is committed to operating a safe, drug free environment. All equipment
will be maintained according to manufacturer specifications, and all building safety regulations
will be strictly followed. Furthermore, due to the growing problem with steroid use in sports and
within fitness facilities, it becomes the responsibility of management and employees to monitor
and report any illegal activity taking place within the facility.

Ethical:
To raise awareness of the dangers of steroid use, we intend to provide free steroid counseling and
literature upon request. We will also participate in local recycling efforts and energy efficient
practices to maintain a Green establishment.

Economic:
Based on our financial projections, we will operate at a profit that will sustain our daily
operations and allow for long-term growth. We intend to provide stable employment for
hardworking employees. Understanding the importance of supporting the United States
economy, we pledge to purchase all of our inventory products from local Pennsylvania suppliers.




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                                                No Limit Fitness Center 2008


The following information is derived directly from the CAN DO website:

The Corporate Center, completed in 1995, is located in the picturesque Drums Valley at the
intersection of Interstate 80 and Route 309 — literally a few dozen feet from the highway — and
minutes from the junction of I-80 and I-81. That puts you in the middle of half the population
and half the total production of the entire country.

The Corporate Center is not only good for business, but it's conscious of the environment.
Simple and efficient guidelines for each park tenant help ensure a harmonious, environmentally-
sound atmosphere for all. CAN DO received the Arthur D. Little Organization Environmental
Excellence in Economic Development Award for their "Terrarium Concept" design of the
Corporate Center.

Today's business relies on technology, and the Corporate Center is designed to meet those needs.
A state-of-the-art telecommunications system with 100% digital switching, a fiber optic network,
and available dedicated Internet access keeps companies in the Corporate Center connected to
the world.

Reliable electrical service is provided by PPL, a national leader in power generation and
distribution. This facility is equipped with 12.47kv of underground supply to deliver superior
electric service to keep info and communication systems in peak condition.

There are perfect spots for all types of business — corporate offices, warehouse distribution,
customer service/call centers, commercial, and retail/service.

The advantages to locating in the CAN DO Corporate Center aren't limited to the great location,
in-place infrastructure, and available workforce. Many sites in the park are also Keystone
Opportunity Zones (KOZs). The award-winning KOZ program allows select companies
locating in a zone to enjoy forgiveness from all state and local taxes for years — in some cases,
through 2013.

State Approval as a SelectSite/SelecTech Park
The Pennsylvania Department of Community and Economic Development (DCED) recognized
the potential of sites inside the CAN DO Corporate Center and designated every parcel in the
park SelecTech-Sites, meaning they have the greatest potential to house high-technology
industry. And that potential isn't just on paper — those sites have the necessary infrastructure
and technology in place right now.

During the SelecTech-Site study, the world's largest business location strategy consulting firm,
Fluor Global Services Inc., scoured the commonwealth looking at thousands of properties. The
process included a comprehensive examination of industry-specific requirements, including a
detailed description of site characteristics, workforce information, educational resources and


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                                               No Limit Fitness Center 2008
opportunities, community resources, local utilities, and detailed infrastructure information
including capacity and availability, transportation access, and telecommunications infrastructure.

So, if your company needs high-tech infrastructure, a great location to markets, access to
interstate highways, and a dedicated workforce, take a closer look at the CAN DO Corporate
Center ( CAN DO Inc.).




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                                                 No Limit Fitness Center 2008



No Limit Fitness will operate as a LLC. A limited liability structure will allow No Limit Fitness
not to be taxed as a partnership and will benefit the company when applying for loans. The
planed location of No Limit Fitness and operating as a LLC we will be qualified for the KOZ
program. The award-wining program allows select companies locating in a zone to enjoy
forgiveness from all state and local taxes for years — in some cases, through 2013.


Due to the nature of the business, limited liability will be a substantial benefit given the chance
for injury or malfunction of equipment. To further protect ourselves from legal action due to
injury, all equipment will be fully maintained according to schedule and all safety regulations
will be strictly enforced.




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                                         No Limit Fitness Center 2008




                    Jake Carrelli      William Lutz              Chris
                     Marketing & PR      Purchasing            Hetkowski
                       Manager            Manager                Accountant



                                                                  Steven
                                        Supplier                  Sellati
                                                                 Operations
                                                                  Manager




                                                               Employees




                                                              Members



Steven Sellati, Operations Manager            Chris Hetkowski, Accountant
Bachelors of Science                          Bachelors of Science
Management and Marketing                      Management and Marketing
Penn State University, Class of 2009          Penn State University, Class of 2010
Phone: 570-394-0277                           Phone: 570-582-6245
Email: sss221@psu.edu                         Email: cah5117@psu.edu


William Lutz, Purchasing Manager              Jake Carrelli, Marketing and PR Manager
Bachelors of Science                          Bachelors of Science
Management and Marketing                      Management and Marketing
Penn State University, Class of 2009          Penn State University, Class of 2010
Phone: 814-758-7275                           Phone: 570-401-7477
Email: wpl5006@psu.edu                        Email: jtc5056@psu.edu


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                                                No Limit Fitness Center 2008




   o Our target market will be the Drums and surrounding areas such as Hazle Township,
       Hazleton, West Hazleton, Sugarloaf and Conyngham. The chart below lists the
       population of these surrounding areas according to the United States Census Bureau. The
       population statistics for Drums is not available, but we look at total target market for
       these areas at approximately 45,000 people (United States Census Bureau).


       As our product of physical fitness is not gender or age specific, most of this number of
       45,000 is a potential customer. The statistics above show that there are target
       demographics that are most interested in gym membership. The target market will
       consist of both males and females from the approximate ages of anywhere from 15 to 70.
       With our unique pricing strategy we will be able to target individuals in an array of
       income brackets, but our core audience will have an income of $45,000 and higher.




Currently the gyms in our area are limited. The recent closing of the Hazleton Downtown
Athletic Club was contributed by high-price of membership, difficult access, and the question of
safety of the downtown area. The other two main competitors in this region are Ironhouse Gym
and Ultimate Fitness. These gyms are both located in the central Hazleton area.




   o According to the Sporting Goods Manufacturing Association, the health and fitness
       center industry is one that is on an upward trend. In 2001, the most recent year of
       compiled statistics, the total number of people with gym memberships rose from 32.8
       million to 33.8 million. This increase has been said to been mainly influenced by the
       interest of the ―baby-boomer‖ generation to improve their quality of life. That
       contributes why the largest demographic of gym members is made up to be men and

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                                           No Limit Fitness Center 2008
   women aged 35-54 years. From 1987 to 2001 the number of gym members in that age
   bracket grew 125% to 11.9 million members in 2001. However, this was not the largest
   demographic increase (The Sporting Goods Manufacturers Association).


o The ―fitness movement‖ as it is deemed by marketers of the 1990s fueled the gym
   membership increase and is believed to be continuing into today. That craze is most
   evident in the statistic that gym membership grew by 63% from the year to 1990 until
   2001. That movement is to said to be still continuing in the industry today. According to
   the IHRSA, the health club membership annual compound growth rate is currently
   around 4.6% per year. If this continues, health club membership should reach upwards of
   approximately 52 million members by 2011 (International Health, Racquet and
   Sportsclub Association).




   o Member Statistics
             60% of people earning above $45,000 exercised regularly
             48% of people earning below $45,000 exercised regularly
             In the 1990s the number of people who exercised 100+ days in health clubs
              grew 83%
             50% of all health members quit within the first six months
             Women make up 52% of the total number of gym and fitness center members
             Average gym member has household income of $69,000
             January has largest monthly increase in membership sign-ups at 12% due to
              resolutions


   o The largest demographic increase belonged to the 55 years and older category. These
       individuals have learned through the public’s constant education on health, that being
       in shape and physically fit can prolong or improve your life. This demographic has
       increased its gym membership as a whole over 273% since 1987, climbing from 1.5



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                                                No Limit Fitness Center 2008
           million memberships to over 5.6 million in 2001 (International Health, Racquet and
           Sportsclub Association).


       o According to the International Health, Racquet, and Sports club Association, one in
           every eight Americans aged six and over is a member of a fitness center or gym.
           Their report lists of the 33 million gym members, the average member visited 89
           times per year, which calculate into over 3 billion visits per year. People who attend
           gym or fitness centers over 100 times a year are considered frequent-users. Since
           1987 the number of frequent users has climbed over 154% to over 13.5 million
           frequent-user members. This means not only are there more members of gym and
           fitness centers, but they are also utilizing their members more. The average usage of a
           member has jumped from approximately 72 days to almost 89 days per year
           (International Health, Racquet and Sportsclub Association).




We will look to compete with these gyms and differentiate ourselves through various strategies:
          Convenience--- offer our customer things such as flexible hours of operation, ease
             of access, and variety of fitness options


          Flexibility--- offer our customer a wide variety of membership options, fitness
             equipment, and payment schedules


          Service--- offer our customers outstanding customer service, aide, motivation, and
             whatever else them may need or want




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                                                 No Limit Fitness Center 2008


Our sales will be obtained through memberships, food and drinks, fitness apparel, fitness and
aerobic classes, specialty classes, and certain convenience services. Members may use cash,
credit, debit, or their No Limit Fitness Card for purchases.




Our membership rates are as follows:

       Standard Rates:                               Student Discount:
       Free = 2 week membership                      Free = 2 week membership
       $5 = 1 day                                    $5 = 1 day
       $60 = 30 days                                 $40 = 30 days
       $160 = 90 days                                $110 = 90 days
       $290 = 180 days                               $215 = 180 days
       $525 = 300 days                               $420 = 360 days

       Partners discount: (Minimum 3 Partners)       Student Partners: (Minimum 3 Partners)
       $50 = 30 days                                 $30 = 30 days
       $150 = 90 days                                $100 = 90 days
       $270 = 180 days                               $200 = 180 days
       $495 = 300 days                               $390 = 360 days




Our sales strategy is to win lifetime members by providing the absolute best customer service to
our members. In doing this, we intend to build relationships based on trust, quality, and comfort.




       o We plan to provide a No Limit Fitness Credit Card to our members. This card will be
         directly linked to the members' bank or credit card accounts. This card can be used
         for all purchased within the fitness center including membership fees, food and
         drinks, apparel, and all classes and service bills. Any purchases made with the No
         Limit Fitness Credit Card qualify for a 5 percent everyday discount and special
         promotional rates when available.

       o No Limit Fitness Center will also sponsor various fitness competitions and
         marathons. These promotions will raise funds for member activities and charities.


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                                                 No Limit Fitness Center 2008
       o We also offer a two week free membership to new members so they have the
         opportunity to experience all No Limit Fitness Center has to offer.




Most of our best advertising will come from the positive word-of –mouth of our satisfied
customers. However, we plan to have ads in the local newspaper, billboard advertisement, a
radio spot, and local directory listings. For cost reasons, we will avoid television ads in our early
stages.




Our public relations strategies include running a green operation through a conscious recycling
and energy efficient effort.
   o Recycle containers will be set up next to all standard trash containers and all waste will
       be disposed of properly.
   o Only environmentally friendly cleaning products will be used with recycled cleaning
       supplies.
   o Energy efficient ceiling fans, coolers, and florescent bulbs will be utilized to conserve
       energy.
   o Our future goal is to replace our exercise cycles with energy creating cycles that create
       and store energy to help power other equipment.

As part of our public relations strategy, we also plan to host charity events to raise funds for
various local and national charity organizations. We will also dedicate special periods where
every purchase with the No Limit Fitness Center Credit Card donates a percentage to a special
charity.




Most of our marketing strategies will be implemented in-house with the exception of printed
materials that will be produced by an outside local printing company. Otherwise, all No Limit
Fitness Center events will be planned, organized, and implemented by Jake Carrelli, our
marketing and public relations manager.




Our marketing effectiveness will be measures by a series of questions that will be included on
the membership application.

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                                              No Limit Fitness Center 2008




The Company will be taking out a $100,000 SBA loan to cover the costs of acquiring the
machinary and equipment for the gym itself and minor renovations to the rented space. Each of
the four partners will be contributing $10,000 to the Company for a total of $40,000.
Additionally, Steve Sellati will be working as the only full-time employee of the gym. It is
expected that the company will generate $17,773, $22,806, $33,434 in net income the first three
years of business. With this income, the Company will purchase $25,000 worth of new in
machinery & equipment in the Company’s second and third year of business. The remaining
income will be invested in various savings and money market accounts to insure security and
liquidity.




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       Works Cited
CAN DO Inc. Welcome to the CAN DO Corporate Center . 2008. 26 11 2008
        <http://www.hazletoncando.com/cdcc.asp>.
International Health, Racquet and Sportsclub Association. IHRSA – The Industry’s Leading Source for Information
        . 2008. 12 2008
        <http://cms.ihrsa.org/index.cfm?fuseaction=page.viewPage&pageID=18728&nodeID=15>.
The Sporting Goods Manufacturers Association. Research Reports. 2008. 12 2008
        <http://www.sgma.com/reports/>.
United States Census Bureau. Butler township, Luzerne County, Pennsylvania. 2000. 11 2008
        <http://factfinder.census.gov/servlet/SAFFPopulation?_event=ChangeGeoContext&geo_id=06000US42
        07910480&_geoContext=&_street=&_county=butler&_cityTown=butler&_state=04000US42&_zip=&_la
        ng=en&_sse=on&ActiveGeoDiv=&_useEV=&pctxt=fph&pgsl=010&_submenuId=populati>.




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