Totality

Mind, Body, Soul

Phone: (814) 665-7938

Email: totality@gmail.com

Ella Lundquist, Shelby ONeill, Latasha Yoder

 TABLE OF CONTENTS
Executive Summary .......................................................................................................................1
I. Company Overview ....................................................................................................................2
Mission Statement..........2

Company Description.......2

Business Objectives.......3

II. Financial Plan ............................................................................................................................4

III. SWOT Analysis .......................................................................................................................7

Risks of Totality.........7

IV. Marketing Analysis .................................................................................................................8

Industry Analysis.........8

Application of Marketing Mix.....................8

Marketing Segmentation...........9

Target Market Identification..............10

Marketing Plan.............10

References .....................................................................................................................................11
 Executive Summary: Totality
Totalitys mission is to be a fitness studio that aims to foster a passion for
overall wellness in the State College area to nourish the Mind, Body, and Soul
through fitness, nutrition, and mindfulness.

Totality is unique in its approach that incorporates all health aspects, Mind.
Body. Soul., of the client in one place. Totality is composed of three parts which
include fitness classes, nourishment, meditation, and nutrition counseling. The
business impacts the Mind through nutrition counseling services and mediation, the
Body through fitness classes, and the Soul through the balance of sound nutrition.

Totality is a sole proprietorship that is owned by CEO Shelby ONeill. The

business contains two directors in addition to the CEO that each specialize in a
different department. The nutrition director Latasha Yoder, RD, will oversee the
nutrition counseling, and the fitness director Ella Lundquist, DPT, will oversee the
fitness branch of the business.

This approach sets Totality apart from other fitness studios in State College
that ignore the need to incorporate all aspects of wellness - the mind, body and
soul. Totalitys dedicated and knowledgeable staff work continuously to provide
high quality service and support to enable their customers to improve their
lifestyle.

Totalities target audience adults between the ages of 20-50 years old who
reside and/or work in the State College area. While Totality does not exclusively
serve females, due to the nature of our business we anticipate that a large portion
of the clientele will be females.

The total start up cost is expected to be approximately $20,676. $8,887 of

this will cover start up items such as gym equipment, kitchen equipment, office
supplies, technology for operation, and aesthetics for the studio such as flooring
and mirrors. The remaining budget will cover larger capital budget items such as
refrigerators, a freezer, ice machine, sink, and counters.
Once Totality is open for business, the estimated operating budget revenue from
memberships, class enrollment fees, smoothie sales, and nutrition counseling
sessions is forecasted at $63,300. The expenses of Totality amount to $64,032
annually between material, overhead, and other operating expenses. Material
expenses cover the supplies for the smoothie bar and cleaning supplies ($22,728),
overhead expenses cover the building rent, utilities, repairs, and licensing
($18,000), and other operating expenses total to $360 per year.
I. COMPANY OVERVIEW

The Mission Statement

Totality is a fitness studio that aims to foster a passion for overall wellness in the State College
area to nourish the Mind, Body and Soul through fitness, nutrition, and mindfulness.

Company Description

Totality is a sole proprietorship that is owned by CEO Shelby ONeill. She has two managers
who work directly below her and report to her. Latasha Yoder is a registered dietitian and is the
manager who oversees the food aspects of the business. The second manager Ella Lundquist has
a doctorate in physical therapy and oversees the fitness aspect of the business. Totality is
composed of three parts. Fitness classes offered include yoga, pilates, and total muscle
conditioning. Nourishment provided by our healthy smoothie bar, and meditation classes offered
to relax the mind and body after a rigorous workout. It operates in the State College area on
South Allen Street. Totality is open seven days a week. Monday through Friday the hours of
operation are 6am to 8pm and Saturday through Sunday 10am to 5pm. Success is achieved
through a unique approach that includes all health aspects. This approach sets Totality apart from
other fitness studios in State College that ignore the need to incorporate all aspects of wellness -
the mind, body and soul. Totalitys dedicated and knowledgeable staff work continuously to
provide high quality service and support to enable their customers to improve their lifestyle.

Shelby (owner,
CEO)

Ella (Fitness Director) Latasha (Nutrition

Director)

(2) Foodservice
(1) Maintenance
employees
Licensing and Qualifications
-Business operation license
-Federal employer id number
-Business name permit
-Land use permit
-Health department permit
-Sale tax license
-Fire department permit
-Fitness instructor certification

Shelby: Founder and CEO, MS, RDN, LDN

Shelby completed her undergraduate degree at The Pennsylvania State University and
then went on to be a Registered Dietitian after completing a dietetic internship at Baylor
University. While at Baylor, Shelby also received a master's degree in counseling. A few
years after graduating from Baylor, she went on to become a licensed mental health care
provider. She is also a certified fitness instructor and teaches many yoga and pilates
classes.

Ella: Fitness Director, DPT, LYTT-500

Ella completed her undergraduate degree in Nutritional Sciences at The Pennsylvania
State University with a minor in kinesiology. Upon graduation Ella attend The University
of Colorado to obtain her Doctorate of Physical Therapy before coming back to the State
College 3 years ago. Ella is a certified fitness instructor with a focus on yoga completing
her LYTT-500 at Lila Yoga Studio downtown.

Latasha: Nutrition Director, RDN

Latasha completed her undergraduate degree in Nutritional Sciences at The Pennsylvania
State University and her dietetic internship and the University of North Carolina before
obtaining her license to be a Registered Dietitian. She also has completed the
requirements to be certified for ServSafe and as a fitness instructor.

Food service employees

While we will not require that each of our food-service employees are ServSafe certified,
preference may be give to those who are. Upon hiring and periodically during their
employee, educational courses will be provided to assure that the importance of and
practices of food safety are understood.

Business Objectives
1. Consistently have 30 customers enter Totality each day within the first month of
operation
2. Have of fitness clients utilizing smoothie shop within 3 months
3. Have a 70% retention rate of first time clients within 6 months
II. FINANICAL PLAN

Start Up Budget Items Anticipated Costs

Yoga mats (20 mats) $275
Dumbbells (4sets of 20DBs) $920
Yoga blocks (20 blocks) $130
Metal chef knifes $50.00
Team shirts/uniforms $125
Blenders (2) $718
Chairs and table for cafe $1,200
Office supplies for CEO $500.00
Signs $150
Cash register $169.00
Menu board $200.00
Music and audio system $250.00
Computer (Mac laptop) $1,000.00
Mirrors for in studio $2,700.00
Flooring $500.00
Total: $8,887
Capital Budget Items
Commercial-grade refrigerator $4,500.00
Commercial freezer $2,500.00
Smaller refrigerator for front $189.00
Three compartment sink $400.00
Ice Machine $2,000.00
Counters for cafe $2,000.00
Beverage Cooler $200.00
Total: $11,789.00
TOTAL START UP $20,676.00
OPERATING BUDGET
REVENUE DAILY MONTHLY YEARLY
Memberships ($40/month) $1,000 $12,000
Class Enrollment Fees ($15 drop-in rate) $75 $900
Smoothie Purchases ($6/smoothie base) $120 $3,600 43,200
Nutrition Counseling Sessions ($75/hr rate) $600 $7,200
Total: $63,300
TOTAL INCOME $63,300
EXPENSE BUDGET
LABOR DAILY MONTHLY YEARLY
Smoothie Barista ($8/hr) $56 $1,680 $20,160
Cleaning Staff ($7.25/hr) $232 $2,784
Total: $22,944
 MATERIAL DAILY MONTHLY YEARLY
Smoothie Food $60 $1,800 $21,600
Cups (case of 600, $45) $1.60 $48 $576
Lids (case of 1000, $21) $0.60 $18 $216
Straws (case of 2000, $8) $0.10 $3 $36
Cleaning supplies $300.00
Total: $22,728
OVERHEAD DAILY MONTHLY YEARLY
Building Rent $1,000 12,000
Utilities $200 $2,400
Repairs/Petty Cash $100 $1,200
Licenses & Certifications $200 $2,400
ServSafe License --- ---
Total: $18,000
OTHER OPERATING EXPENSES DAILY MONTHLY YEARLY
Wifi $30 $360
Total: $360
TOTAL EXPENSES $64,032
NET INCOME (INCOME - EXPENSES) -$21,408

Start Up Cost
The start-up costs for Totality will average out to be around $20,676. This money will go
towards items that are needed for the first day that the business is in operation. Since Totality is a
fitness studio items such as yoga mats, dumbbells, a music system, special flooring for the
studio, large mirrors for the fitness studio, and yoga blocks are needed in order to operate. For
the food part of facility, items that will need are metal knives, blenders, cash register, menu
boards, and chairs and tables. Lastly Totalitys employees will need uniforms and computers to
perform their duties.

Capital Budget
Large costly items that Totality will purchase are listed under the capital budget. There is
a 5-step process that totally uses to create their capital budget. This plan begins with determining
capital goods needed and goes through the process of prioritizing them, estimating their costs
then writing up the request to submit to the manger. This process was used by Totality to
purchase items such as commercial-grade refrigerator and freezer, an ice machine, counter for
the smoothie bar, a smaller refrigerator for the front of the smoothie bar, and a three
compartment sink for the back of the bar.

Operating budget:
Totalitys operating budget consists of the projection revenue.

Revenue
Totality will have 4 major sources of income through memberships, class enrollment fees
(drop-in class fees), smoothie purchases and nutrition counseling sessions. Because of Totalitys
unique studio in State College, the business predicts to capture 20% of the fitness market in its
first year. Yearly $12,000 from memberships is expected based on a forecasted 25 members a
month paying a $40/month rate. From single class enrollments or drop-ins Totality expects $900
yearly from 5 drop-ins per month each costing $15. The business will make $43,200 from
smoothies a year based off of selling at least 20 smoothies a day priced at $6 each as a baseline
price. Finally, Totality will average two 1-hour nutrition counseling sessions a week costing
$75/hour bringing in $7,200 in the first year. These predictions bring Totalitys net income for
the first year to be $63,600.

Labor
The first part of the expense budget is the lab budget. Totality will have one cleaning
staff come work twice a week for 4 hour shifts working $7.25/hour. Totality will also hire one
smoothie barista to work for $8/hour seven hours a day. No insurance, benefits, or paid breaks
will be provided. In addition, the smoothie barista is also in charge of daily maintenance and
upkeep at the end of each shift of the smoothie station. Totality did not hire any additional fitness
instructors to keep labor costs down because it is a smaller studio, and because the CEO and two
managers are able to teach the fitness classes. Should the need for fitness instructors increase, the
budget will be reevaluated to hire another staff member. Additionally, the CEO and managers
will forgo their salary in the first year in order to help cover the costs of the start up and capital
items from the expense budget.

Material
Aside from Totalitys start up expenses, we will have a few ongoing materials expenses.
Most of these relate to the production of smoothies for the smoothie bar. For example, Totality
expects that the food cost for each smoothie will be about $3 each and based on our projected
sales this will lead to a $60 daily expense and $21,600 annually. The business will also need to
purchase disposable cups, lids and straws for the smoothies to be served, which is estimated to
cost about $828 annually. Finally, Totality will allocate $300 annually to purchase supplies to
maintain a clean facility.

Overhead
In order to run a business and have a facility Totality must anticipate overhead expenses.
Totality plans to rent a space in downtown State College to enable the business to reach college
students and also be at a central location for the remaining population of the town. Totality
expects that this space will cost about $1,000 per month or $12,000 annually. In addition to rent,
the business will need to pay for utilities which will cost another $200 monthly or $2,400
annually. The business also plans to set aside $100 each month ($1,200 annually) for
repairs/petty cash to be used as needed in appropriate situations. Shelby, Ella, and Latasha all
currently have their ServSafe Certification so this licensing will not impose an additional cost at
this time.

Other
A miscellaneous expense that will be incurred is wifi to stream the necessary content for
the classes, play music, and manage the business. This cost is estimated at $30 per month and
$360 per year.
 III. SWOT ANALYSIS

Strengths (5) Weaknesses (3)

- Totality is more than a gym and offers nutrition counseling
and smoothies. Very few fitness centers offer counseling
and nutritious recovery.
- Totality promotes discounted services to members.
- Totality has a smaller staff that allows for closer
relationships and more interaction with each client.
-Totality has a central location downtown.
-Totality provides accountability to their customers
improving health through the community built in classes and
meetings with the dietitian.
- Many other gyms around State College
may already have loyal customers.
- Totality has a small staff.
- College students may be inconsistent
customers based on time and money.
- When Totality opens, there will be limited
class offering times. This could make it
difficult for some customers to attend.
- Totalities prices may be a little higher until
volume of customers increases.

Opportunities (3) Threats (3)

- Few gyms include all of Totalitys services.
- If successful, Totality could expand to a second location.
-Totality can feed off the recent increase in peoples health
awareness in regards to food trends and offer more healthy
options like quinoa, oatmeal, and cauliflower rice.
- Totality may not be able to adapt
to changing customer needs due to the
limited resources of a young business.
- Fitness and nutrition fads are constantly
changing.
-Totalitys cost of membership may start to
become out of people's price range.

Business Objectives/Goals
1. Consistently have 30 customers enter Totality each day within the first month of
operation
2. Have of fitness clients utilizing smoothie shop within 3 months
3. Have a 70% retention rate of first time clients within 6 months

Risks of Totality
1. Totality may have a difficult time developing a loyal customer base and having a lot of
one-time customers who do not become full-time members.
2. If customers use the gym but not the smoothie services, Totality would be losing money
on unused fresh produce.
3. The target audience may not understand the importance of a well-rounded lifestyle and
the role that nutrition plays in fitness. Not having this understanding takes away the
competitive edge that Totality has.
4. A new gym offering similar services opening up near by and taking away customers
5. If the economy takes a bad turn, people may no longer be able to pay for a membership
at such a specialized gym
6. Customers getting tired of the same classes and services being offered.
7. Totalitys fitness classes are only offered at limited times due to the challenges of a start-
up business. This will likely make it more difficult for customers to utilize the business
since they can not go simply on their own time schedule.
IV. MARKETING ANALYSIS
Industry Analysis
There are many trends in the fitness industry including an increased popularity in various
workout classes such as HIIT training, bodyweight training, strength training, and yoga.1 In
addition, many clients are looking for personal trainers and group classes to become more fit and
active in. Other trends in the fitness industry include wearable technology such as the Apple
watch and Fitbit, the use of smartphone exercise apps, and workplace wellness promotion.1
Recently the industry also announced that they are expecting an 8% increase in employment of
fitness professionals between 2014 and 2024.

Strengths and Weaknesses of Competitors

Facilities like Planet Fitness demonstrate strengths through offering services such as
fitness classes and a smoothie/food cafe. Totality would target the same client base of a facility
like Planet Fitness.2 Most likely the same vendors would supply both facilities with fresh fruits
and vegetables for the smoothies as well. The weakness of this competitor is that as a large
facility, clients will not get the one on one attention they would get at Totality. In regards to
indirect competitors facilities such as Victory Sports and Fitness and East Coast Health and
Fitness offer a full scale gym facility.2 They have the latest equipment and offer a reasonable
price to join. However, they fail in comparison to Totality because they do not offer a
smoothie/healthy food cafe in the facility for a post workout boost. Lila Yoga is a popular yoga
studio downtown. Their strength is that they have one specialty and they can focus all of their
resources and time on making this specialty, yoga, the best it can be. This facilitys flaw is that
they only offer one type of fitness class, limiting the product that they are trying to sell. Lastly,
food establishments like Cafe Verve and Panera offer healthy food and smoothie options just as
Totalities cafe does. These specialty healthy food places may have a myriad of smoothies and
salad options but they lack a fitness facility, creating a main weakness.

Opportunities
Totality has some opportunities to gain control of a major part of the market. Only one
other business, Planet Fitness, offers all of the options that Totality does. Other facilities as
mentioned above only offer either healthy food or fitness, not combined like Totality does. Thus,
Totality could use the emerging health trends in things such as HIIT fitness classes, yoga, and
pilates strength classes to their advantage. They can advertise all the amenities they offer and
emphasize their one on one counseling as well. More data coming out about the rising obesity
levels in the United States and the negative health consequences associated with it, opens up new
opportunities for Totality. This awareness will create a willingness in the clients to invest in
their health and change their habits with the power of healthy food and exercise in order to
reduce and/or prevent the adverse health effects of obesity.

Application of Marketing Mix

Totality offers combination products that include fitness classes, nutrition counseling and
smoothies to incorporate and improve all aspects of wellness in one place for clients. Totality is
unique because the business provides services not provided at other gyms downtown such as
nutrition consultation and a smoothie bar to complete the client's fitness class and add to the total
wellness experience. The fitness classes and smoothies at Totality are tangible services/goods
that the business provides. The nutrition counseling sessions are intangible service that Totality
 offers and may vary depending on which RD at Totality is delivering the session. Sessions can
also include different topics based on the RDs specialty/interests and the interest of the
clients. Because the business focuses on one on one relationships, Totality can quickly respond
and develop material to match the desires of the customers.
Totality is located in downtown State College, PA. State College, PA was ranked the
eighth-most fitness friendly city in America for 2016 making it an ideal location of a new fitness
studio.3 This location is desirable because it is within walking distance for local clients and is
easily accessible by car and public bus for clients who live outside of walking distance.
Totality will reach its customers through different types of promotion. Totality will use
personal selling via word of mouth, deliver coupons to try Totalitys services to local residents
mailboxes, request a newspaper article and submit advertisements in local newspaper such as
Centre Daily Times to alert potential clients of the new fitness studio. Totality will also have
special features and deals to client who decide to use certain services to encourage their
involvement in all aspects Totality offers.
Totalitys pricing will be based on different factors. Drop in classes will cost $15 per
class and membership fees will cost $40 per month. These fees are subject to change based on
Totalitys popularity and number of clients after the first month. Totality aims to keep prices for
fitness classes comparable to other competitors in the area. Local fitness studios charge between
$15-25 for drop in classes and $40-100 per month for fitness memberships. Local restaurants and
cafes typically charge a $5-7 base cost for a smoothie. Totality will also charge for nutrition
counseling and workshops that is unique to the business.

Market Segmentation
State College, PA
Population estimate (July 1, 2015) 42,161

Estimated base change (4/1/10 to 7/1/16) 0.3%

Persons under 5 years 1.8%

Persons under 18 5.1%

Persons 65 and older 4.7%

Females 46.0%

Median household income (2015) $29, 450

*Table data from census.gov

Centre County is divided into 6 regions: State College, College Township, Ferguson
Township, Halfmoon Township, Harris Township and Patton Township. State College had
38,420 residents of 135,758 residents in Centre County (28.3%).5
Target Market Identification

After conducting research for the market segmentation, Totalities target audience adults
between the ages of 20-50 years old who reside and/or work in the State College area. Totality
determined this target market after researching the market segmentation. Although not
significantly large, the overall population has been increasing over the past several years,
increasing the size of the target audience. 11.6% of the population is either under eighteen or
over 65 years old.4 From this, it can be inferred that a large percentage of the population in the
area is within our target audience. While Totality does not exclusively serve females, due to the
nature of our business we anticipate that a large portion of the clientele will be females, which
represent approximately half of the population in State College. Females are also more likely to
take advantage of classes such as yoga and pilates because they are known as lean muscle
creating exercises which women more than men usually crave. Additionally, the owners chose
the location based on State College having the largest percentage of the population of any part of
Centre County and the proximity to Penn State University.

Marketing Plan

In order to market their services to potential customers Totality will use a number of
different strategies. Some of these include personal selling, word of mouth, sales promotion such
as flyers and coupons that are delivered to Totalitys target audience mailbox, and public
relations via news stories in local newspapers like The Centre Daily Times. Totality also plans to
go to local businesses and either hand out business cards and flyers or ask to give a quick talk to
the customers at that facility to promote their business. They will offer specials and features such
as If you sign up for a free membership today get will your first smoothie free or If you get a
friend to join and they use your name you as a reference, you will get 3 free fitness classes.
Another important part of marketing to potential customers is making sure they are informed of
all that totality has to offer. When handing out the flyers to the mailboxes the food, fitness, and
counseling aspects of the business will all be emphasized so the target audience base has proper
knowledge of all the business has to offer.
REFERENCES

1. http://www.health.com/fitness/2017-fitness-trends Accessed 3/28/17

2. https://www.yelp.com/search?cflt=gyms&find_loc=State+College%2C+PA Accessed
3/28/17
3. http://www.huffingtonpost.com/smartassetcom/the-most-fitnessfriendly-
_b_9243320.html Accessed 3/28/17
4. https://www.census.gov/quickfacts/table/PST045216/00 Accessed 3/28/17
5. www.statecollege.com Accessed 3/28/17