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Business Comm Proposal

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Submitted By ajones
Words 1541
Pages 7
1992 S Oxford Dr
Angelo, TX 76908

November 1 2013

Josh Wilson, Director
Community Health Club
3336 W Loop 306
San Angelo, TX 76904

Dear Mr. Wilson:

Introduction
I have been a member of Community Health Club for over 6 months, and I have found that swimming laps every morning is a great way to not only stay in shape, but also a great way to reflect and focus for the day ahead. Unfortunately, in order to attain the peaceful experience every morning, I must arrive early enough to beat the rest of the members to the pool, or I risk sitting around waiting for a lane to open up. The issue not having a pool large enough to accommodate all of the members is not only a problem of member satisfaction, but also a financial issue. Fortunately, I have a proposal to build a full sized Olympic pool that can not only guarantee the satisfaction of the current members of Community Health Club, but also provide many new revenue opportunities.

Background and Problem
The current pool housed at Community Health Club is a 3-lane, 25-yard pool that is used for lap swimming, fitness classes, as well as free swim. With a pool this size, only one of these activities can be done at a particular time period. Not only does this create a scheduling issue while trying to find times for every activity for the different lifestyles of the members, but it also limits the number of classes or activities the club can offer. Add this problem to the fact that because the pool not large enough for the club members to use effectively, the chances of renting the pool in order to create revenue are slim to impossible. There are several different areas in which constructing an Olympic pool can be beneficial to Community Health Center.

Medical Use & Healthy Lifestyle
Community Health Club is the only fitness facility owned by a hospital in the area. It is also a member of the Medical Fitness Association (Community Health Club). Because of this, Community Health Club is known for the most cutting edge equipment for rehabilitation and exercise, and the cardio and free-weight areas have been upgraded to maintain this level of excellence. However the pool area is lacking this “top rated” status. Swimming is an excellent form of exercise, with many benefits such as improving heart health, flexibility, asthma symptoms, as well as being a low stress activity, which makes it easier for elderly and obese individuals (Discovery Health). With all of the benefits swimming can have, any facility wishing to be highly rated should have a pool large enough to provide these benefits to it’s members, no matter the time. Increasing the pool size can also gives Community the chance to offer more times for patient rehabilitation, without cutting into other members free swim time. This leads me to the next area of benefits.

Increases Member Satisfaction
As I stated in the introduction, finding a time in which the pool is open, and I have no other responsibilities, such as work or attending class, is very difficult. As a paying member of Community Health Club, I expect to be able to use the facilities whenever I have free time, and I feel the facility is successful in providing space for me and the other members in all areas, except that of the pool area. Increasing the size of the pool can allow classes to be in action as well as providing enough space for people not attending the class to swim laps. This can also allow new types of classes to be offered, because the opportunity for free swim will still be available while they are in session. With an increase in class variety, class times, as well as freedom for free swim throughout the day without a wait club members will see an increase in satisfaction, leading to a happier, healthier environment. When members are happy and improved facilities are provided, Community Health Club could see new members, and would be able to increase membership fees with less resistance. This leads me to the final and most important benefit.

Increased Revenue Opportunities
Considering the schedule of fitness classes in the pool as well as the size of the pool, it is very difficult to find rental opportunities worth hosting. Many parties looking to rent a pool for an event will prefer a larger pool that can hold all of its guests. Therefore, the pools located at ASU, or the YMCA are more likely to be rented than that of Community Health Club. Not only does a larger pool increase the pools chances of being rented, but it also allows an increase in the rental rate. According to USA Swimming, a 6-lane, 25 yard pool (which is 3 lanes larger than that of Community Health Club’s pool), is rented, on average at $84.00/hour. When looking at an Olympic Size pool (8-lane, 50 meters) the average rental rate jumps to $200.00/hour. When looking at a daily rental, the Olympic size pool makes over $1,000.00 more than its smaller counterpart (Which is still larger than the current pool). An Olympic pool also offers the unique opportunity to hold swim meets, and fitness events, that would provide a unique experience that can only be found at Community Health Club. Add this financial benefit, with the justified higher membership fees, as well as new memberships enticed by the larger pool, and what was once a cramped undersized, underutilized area, is now an exciting, revenue generating facility.

However, is building and maintaining this new pool going to cost more money then it generates? Looking at the short term there will be a large amount of cost to build the pool. The average cost to build an 8-lane, 50-meter pool, including roof, heating, and lights is $1,900,650.00. Assuming the pool is rented out at the average cost, for 46 weeks of the year, this size pool will generate $414,000.00 from rentals alone (USA Swimming). If Community Health Club was to only use revenue from rentals to payoff the cost of the build it would only take 4.5 years to pay for itself. While maintaining the pool will also increase this will be easily covered by the new revenue generated by the larger pool. Looking at the long term, after the pool has generated revenue to cover its costs, Community Health Club can look forward to a profit of roughly $200,000.00 annually from lane rentals only if continuing to use the average rental rate.

The following sections will include my proposed plan, schedule, budget, my qualifications, as well as an authorization request.

Proposed Plan 1. Layout and Excavation (3-5 days) 2. Reinforcing Steel and Plumbing (1-2 weeks) 3. Inspections (1-2 days) 4. Filter Installation (5-7 days) 5. Deck Equipment, Coping, and Tile (1 week) 6. Electrical and Gas Services (1- 2 weeks) 7. Deck work (1 week) 8. Plaster and Fill Pool (1 week) 9. Open to Public

Budget
This budget was assembled using the national averages provided by the USA Swimming Headquarters, in regards to an 8-lane, 50 meter pool, just like the one I am proposing to be built.

Expense Description | Costs | Pool Construction | $1,107,000.00 | Deck Construction | $80,700.00 | Architectural Membrane Building | $712,950.00 | Total Costs | $1,900,650.00 |

Schedule
The following is the proposed schedule for the project (Armond Pools).

Qualifications
I am a returning accounting student at ASU, having received a Degree in Biology in May 2013. I have been a member of Community Health Club for just over 6 months. Since becoming a member I try to use the pool at least 4 times a week, and feel like my experience with the facility should be accounted for. I have also worked for an accounting firm for the past year. Using the knowledge gain in my work experience as well as my recent classes involving accounting and business, I feel as though I have successfully estimated the costs and potential gains of increasing the size of the pool.

Authorization Request I feel that after weighing the pros and cons of building an Olympic sized pool to replace the current pool at Community Health Club, you will see that the potential revenue that can be acquired with the larger pool will be well worth the costs. I would ask that you authorize me to contact Pool Pro’s of San Angelo, in order to allow construction to begin January 1, 2014.

Sincerely,

Andrew Jones

Works Cited

“10 Health Benefits of Swimming”. Discovery Health. 2013. Retrieved 31 October 2013. < http://health.howstuffworks.com/wellness/aging/retirement/10-health-benefits-of-swimming.htm >

“25 Yard vs. 50 Meter…Which to Build?” USA Swimming. 2010. Retrieved 31 October 2013. < http://www.usaswimming.org/ViewMiscArticle.aspx?TabId=1755&mid=7716&ItemId=3570 >

“About Us”. Community Health Club. 2013. Retrieved 31 October 2013. < http://www.sanangelohealthclub.com/aboutus.html >

“Pool Construction Timeline”. Armond Aquatech Pools. 2011. Retrieved 31 October 2013. < http://armondpools.com/process/poolconstructiontimeline/ >

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