Table of Contents Letter from the CEO..........................................................2 Company Mission..............................................................3 First Year Success.......................................................... ....4 Expansion on the Horizon...............................................5 Dollars and Sense..............................................................6 Marketing Campaign 2008..............................................7 Board of Trustees..............................................................8
Letter from the CEO Dear Important Stake holders: This has been an exciting year for us at Sante and we are so pleased to be able to share our success with all of you. The opening of a new business is never easy and we appreciate all your patience and support during our first year of business. Starting a new company is a costly venture that always comes with surprises, whether they are good or bad. Unexpected events caused our initial budget for opening the first Sante location to be expanded by over $10,000. Unforeseen damage to our location during construction was the primary culprit in this new allowance. However the funds were properly appropriated and we did not have to reschedule the opening. Despite our initial hurdle, we have responded with fantastic membership numbers for the first year. Our unique and health focused approach to fitness excites our local community and nearly all of their responses have been positive. We are excited to announce that there has been such great response to our efforts that an associate wants to open a new location in Albuquerque, New Mexico. This expansion is greatly beneficial to all of our efforts in the Lubbock location. The work we do here can eventually be spread across the country. This decision may seem early and somewhat rash considering the initial problems we had opening our first location. This new venture is well planned and because real estate in the Albuquerque area is priced so well and the population is expected to grow exponentially within the coming years.
Ally Smith President and Chief Executive Officer May 2008
Feel Better - Not Just a Slogan, but a Mission It is not only the slogan of the business; it is the philosophy behind which Sante was founded. Not targeted to the workout beginner, our company strives to provide a service that goes beyond the standard gym. Feeling better is a goal we have for everyone that is involved with Sante. We want our trainers to feel better so that they can give our customers the best workout experience available. We want to make our customers feel better because they come to us for the experience they would not get elsewhere. And we want you to feel better because you are the people who keep us going. Sante offers a unique experience to help people start feeling their best. Our unconventional workouts paired with our use of emerging techniques come together to provide our customers with the opportunity to make themselves feel better throughout the course of their workout and lifetime. Our yogis practice their craft daily so that they are at the optimum level of fitness and flexibility to assist their students through the entire class. They not only strive to help their students but also to help each other. They work together so that they are all on the same page to uniformly present our mission statement. This also helps assure our clientele that they are getting the most
consistent workout with the most up to date yogis in the greater Lubbock area. The spin instructors at Sante believe in the best cardiovascular workout they can provide with the safest instruction in town. The recent popularity of this workout spurred many instructors to jump blindly into training students; but at Sante that is anything but the case. Our spin instructors care about the students’ health. From correcting posture on the bike so that students do not experience any extra strain on tendons and ligaments to keeping a close eye on all students in the class to make sure no one is left behind during the workout. Sante employs the best trainers and managers in the area so that our customers can receive the best experience they will ever get. There is no business like us for miles and even then no one can compare with all that we can offer in the terms of wellness. The cardiovascular, muscular and stretching benefits that customers receive here are assured to benefit their lives in the long term. The lifetime of benefits our customers recieve from their work at Sante cannot be compared with any others. The unique, one of a kind opportunities that they have here keep our customers coming back. It also encourages them to bring their friends who also become a part of Sante.
2007 Membership Numbers
First Year Success
Number of Members
400
Sante Experiences an Oustanding Start to the First Year of Business
300
200
All Members 100
Yoga Members Spin Members
March
June
September
December
Month The opening of a new business is difficult but how that business perseveres through the tough times is what makes or breaks its future. The efforts made here at Sante have proven that this business will be successful for years and years to come. The numbers of membership have
increased exponentially over the past year and we are proud to say that our membership totals have surpaseed any of our wildest expectations.
think because we got a super surge of people registering for all kinds of packages. We pretty much were rolling in the dough.
The first quarter of the year was our lowest membership influx of the entire year. This is not surprising because many new businesses experience some kind of problem like this one. However, we persevered through these difficult times relying on our knowledge that we would soon get our membership numbers up. This as hard to do to have faith in a fledgling enterprise but everyone stayed strong and got through it together.
The third and fourth quarters kind of leveled off because we spent all our ad money so we got to all our target markets. We started getting more people during this time of the year because of what print advertising would call secondary readership. People see their friends coming into Sante and they want to be a part of “Feeling Better.” So they come with their friends for our “Test Run” pass. This pass gave them a discount to go to any two classes that they wanted to visit. As a result of this pass we continued to get a steady stream of new members.
The second quarter of the year was better – much better. This is probably because this was the time we had enough money to start advertising widely. We could not advertise as much for the opening because we needed money to pay for ad space. We did a lot of print ads and radio ads because radio is really cheap here in Lubbock and that was the best bang for our figurative buck. These efforts really paid off we
So in summary these numbers are excellent especially for a first year business in a small market such as Lubbock. We expect to have another surge of membership at the beginning of next year because the number one New Year’s resolution is to lose weight. Here, we provide a whole health army to help these people achieve their goals.
Expansion on the Horizon With the unexpected success of the first Sante location, we have decided to go with the rushing river and start another location in Albuquerque, New Mexico. The prices of real estate in the area are extremely reasonable and the locations available are highly compatible with the efforts we are trying to encompass and achieve. The person who will open the store has been an associate of Ally Smith for over 10 years and is a dearly trusted friend and colleague. Danielle Trowder is also in the fitness industry and has worked for the most popular gym system in Albuquerque for over 15 years. As Vice President of Development for the Sports and Wellness facilities in the greater Albuquerque area, Trowder gained more than enough business and practical experience to gain the full trust of every one at Sante. She is married to Mark Trowder and has two daughters, Elise and Abby. There is an influx of residents in the greater Albuquerque area within the coming years. New Mexico Gov. Bill Richardson has made the state very accessible to the film industry and multiple studios have plans to build other locations there. This industry will bring a surplus of people to the area to work for the studios but also it will bring many movie star hopefuls. These hopefuls especially will be a new market for the new Sante location because people who want to be movie stars want to get in serious shape which is what we do here. This new location will be a wonderful expansion opportunity for Sante and we are very excited about all the things that come with it. This will again bring trying times for all of us associated with the store but we must ride the population boom and use it to our best advantage. This new store will almost assuradly be a success and help all those fitness seekers who come there.
Albuquerque: Heard of it?
This beautiful city provides all the fun and excitement of a big city and provides numerous natural wonders just a short ride away. Downtown, where the new location will be located for easy acces for the working crowd, visitors can find fantastic eating, world markets, and rich culture and heritage. The are is bustling with people and constantly adapting to fit the needs of the people who live and work there. Just look east, and view the majestic Sandia Mountains. The Sanidas, watermelon in Spanish, are home to the world’s longest tramway. It is a car that takes you on a ride from the base of the mountian to the very tip top peak. the views from the peak are breathtaking and when seen at night are uncomparable. This new location provides the best of both worlds for our staff and our prospective customers.
Expansion Budget 5% Other Expenses 20% New Hires
45% Building
Dollars and Sense 30% New Equipment Cost for this new location is a concern for many of our stakeholders but we feel like this decision is well researched and well planned so as to not waste a penny of our valuable funds on anything in appropriate or frivolous. The total budget for this project is projected to be at $250,000 dollars. Though this is more than it cost for the first location, property prices and the cost of living in Albuquerque is much higher than that of Lubbock. Retail space in the downtown or Nob Hill area of the city is in high demand and is quite valuable. The majority of the budget, $112,500, went to purchasing the top floor of the brand new Klein Building. The tallest building in the city, customers at this location will have the best view in the city. The goal of this placement is to keep our clients satisfied and happy when they are working out. These great views can also be inspiring and help many people on thier journy to fintess.
Where the Money You Supplied is Going to Make Sante Bigger and Better The next biggest part of the budget went to purchasing new equipment for the location. All $75,000 alloted for this particular use went to purchasing the best available bikes on the fitness market. Also purchased with this money are all of the yoga accessories on the market. These were purchased in order to provide our customers with everything they could ever want in terms of a great yoga workout. Twenty percent of the budget goes to new hires. Because we have no initial profits from this location, a specific amount of the budget must be alloted to pay our trainers and managers until money starts coming in. Hiring the right trainers is a long and labor intensive process that will be expensive. This however is all worth it because offering a quality product will be the thing that makes Sante’s clientele different from the average gym rat. The last five percent of the budget is our cushion incase we need more money.
The Klein Building is the tallest in the city with over 23 stories. The Penthouse and rooftop of the building, occupied by Sante, have the best views in the city.
Marketing Campaign 2008 For the upcoming year we want to stick with our “Feel Better” campaign. It’s short, catchy, and people remember it. What we plan to do is capitalize on key seasons in which people start using gyms and the start buying more memberships.
Key Marketing Tactics
The number one New Year’s resolution is to lose weight. Well actually it’s second – quitting smoking is the first resolution people make. But anyway, the country is realizing how obese everyone is and for the most part the country wants to try and lose weight. The image is night and every thing in it is half gone. This signifies that the party is ending and you need to start thinking about what you are going to do to keep your resolutions. That is where Sante comes in to help you keep resolutions.
• Capitalize on key fitness seasons, including the start of the year and the beginning of swimsuit season
The next time early in the year that we will hit people with our campaign is February/March because that is when people start thinking about swimsuit season. We will use a woman in this ad because it is the ladies that are the most susceptible to being called fat and they have the poorest body image. We will use a skinny but fit woman in the ad because scrawny is not beautiful. The muscle definition implies fitness which in addition to overall health is what we want people to achieve at Sante. Being fit gives people a better body image too.
• Conduct outdoor classes when possible to keep the experience fresh and the clients coming back
We think these are really good marketing ideas and that they will really accomplish what we are trying to achieve. Not only will they suck peopole in to our stores, but people will feel good.
• Expand from just magazine and newspaper ads to billboards and bus wraps
• Hire a part-time nutritionist to offer something unique and place us above all the other workout facilities in surrounding areas • Initiate “Free Pass” system for potential clients that do not understand our concept and want to try out two of the offered classes
Board of Trustees Ally Smith, President and Chief Executive Officer Ally Smith started Sante to get people in the right frame of mind and to the right fintess level. Leading the team with her extraordinary business savvy and willingness to listen to ideas, Ally has proven herself as someone to watch out for in the busniess world.
Danielle Trowder, President of Albuquerque Branch As Vice President of Development for the Sports and Wellness facilities for over 15 years in the greater Albuquerque area, Trowder gained more than enough business and practical experience to gain the full trust of every one at Sante. She is married to Mark Trowder and has two daughters, Elise and Abby.
Allan Powers, Financial Backer and Vice President Allan Powers was an investment banker on Wall Street for over 20 years. He moved to Lubbock to slow his life down and be closer to his grandchildren. Powers is the financial backer for the business and has had over 45 years experience running and managing private businesses.
Cory Davis, Technical Support and Advertising Cory Davis is the newest addition to the team. Recently recieving his master’s degree in graphic design, Cory was also a computer technition to work himself through college. He has worked for Bodyworks Fitness so he is very comfortable in the industry. His creativity is never lost on our Sante ads.