1. Prepared by: Michael Macleod Courtney Quinn Amanda Roemer Sheena DeVries

2. Executive Summary  Fitness Facility  Four full-time, one part-time employee  Free weights, circuit training, yoga, and specialty classes  E3- closure  Committed to functional training vs. traditional

3. Management Team  Michael Macleod – Finance  Courtney Quinn – Accounting  Amanda Roemer - Kinesiology  Sheena DeVries - Marketing

4. Business Objectives  Growth  Sales  Expansion  Start up costs

5. Marketing: Product  Dutch Dumbbells is a comprehensive fitness facility  Our small business offers both equipment and customer assistance  Classes for every level of fitness  Overall health conscious environment

6. Promotion  Three main focuses:  Radio Country 95.5 and The River 107.7  Newspaper Lethbridge Herald and the Shopper  Coupons and Give-Away’s Gold Mine Coupon Book  And of course word of mouth

7. Placement  Dutch Dumbbells will be located in the vacant building where E3 Salon occupied.  Our small business realizes the danger of comparisons between the fitness facilities  Commitment to health

8. Price  Dutch Dumbbells is dedicated to providing our customers with the lowest cost possible  Per month fees are: $35 membership fee to fitness facility $15 optional classes fee  Drop-in fees are: $10 for fitness facility $8 per class

9. Customer Analysis  Our target demographic is a person who is dedicated to physical activity and health  Demographic:  Males and Females  Ages 23-45  Average Income approximately $35,000 +  Dissatisfied with current fitness facilities and looking for a comprehensive alternative

10. Competitors  Our foremost competitors are the U of L fitness centre and the Right Pace only women’s centre.  Our distinctive separator is our comprehensive programs. Not only do we allow individual use of machines and services but also provide consultation when needed.

11. Physical Facilities  Floor Plan - 6600sq.ft.  3 main areas: fitness, classes, extra space  Rent out 3 massage rooms for $500/mo  Contract out 1 daycare room for $350/mo  Building start-up costs = $51,097.50  Minimizing risks

13. Financing  Market Potential  $841,685  Market Share  43.7%  Potential Revenues  $367,816

14. Income Statement 20052006200720082009 Revenues$367,816.00$404,597.60$445,057.36$489,563.10$514,041.25 Child Care Rental $4,200.00$4,200.00$4,200.00$4,200.00$4,200.00 Massage Therapist Rental $18,000.00$18,000.00$18,000.00$18,000.00$18,000.00 Total Revenues $390,016.00$426,797.60$467,257.36$511,763.10$536,241.25 Expenses$391,351.98$333,304.48$333,304.48$333,304.48$333,304.48 Net Income -$1,335.98$93,493.12$133,952.88$178,458.62$202,936.77

15. Break Even Analysis Data Fixed cost 285754.48 Variable cost 0 Revenue35 Results Breakeven points Units8164 Dollars$285,754.48 Volume Analysis @ 0 Costs$285,754.48

16. Cash flow Statement 20052006200720082009 Cash In Flows $5,664.02$161,343.28$160,031.68$203,225.82$209,936.77 Equity Investment $550,000.00$150,000.00$150,000.00$25,000.00$25,000.00 Total Cash In Flows $555,664.02$311,343.28$310,031.68$228,225.82$234,936.77 Cash Out Flows $494,813.86$292,264.48$292,264.48$292,264.48$292,264.48 Net Cash Flows $60,850.16$19,078.80$17,767.20-$64,038.66-$57,327.71

17. Personnel  Administrative Structure  Employee Recruitment/Training  Personnel Policies

18. Legal Structure (Incorporated) Advantages Formalities  Limited Liability  Existence  Capital  Tax Advantages  Credibility and Prestige  Higher start-up Costs  Maintaining Records  Double Taxation http://www.corporationcentre.ca/docen/home/faq.asp?id=inc#q5

19. Legal Requirements  Dutch Dumbbells Inc.  We will only operate in Alberta  Licenses and permits = $221.98  Insurance is $2000 per month

20. Location   Specific Site:   #880 Heritage Heights Plaza West   Accessibility   Proximity To Other Businesses   Physical Characteristics   Site Costs: (rent, utilities, licenses etc.) $15,350.37/month or $184,204.48/year

21. Location  Competition:  The University of Lethbridge 7500sq.ft.  The Right Pace 1000sq.ft.

22. Location  Attitude of the Trading Area:  Chiropractic Clinic  Need for a fitness center  Landowner/Landlord open-minded  Previous Owners/Management http://www.corporationcentre.ca/docen/home/faq.asp?id=inc#q5

23. Any Questions?