Purpose of the Proposal
The purpose of this proposal is to attract investors to capitalize "Glo Mama! The Maternity Fitness Spa, LLC", a first-of-its-kind fitness industry business at the planning stage.
The Company
Pregnant women compose a sorely neglected, yet potentially dynamic, renewable market. Glo Mama! The Maternity Fitness Spa, LLC, with its offices at 39 East Pike Street in Lawrenceville GA, is a first-of-its-kind business at the seed stage. Glo Mama! combines educational, social, fitness, and spa services guaranteed to delight the hearts of the expectant and new moms who will be its members. Care has been taken to base offerings on research findings in the field of Maternal/Child health.
Glo Mama! will become successful because its benchmark administrative systems, brand name marketing and high quality programming are especially tailored to its unique mission – creating a community for women, as they become mothers.
Our goal is to become a successful national brand, starting in Metro Atlanta. We will build on the satisfaction and pride each member will proudly claim as a result of feeling that her pregnancy and birth were a resounding success.
The Terms
We are seeking $300,000 start-up investment capital, representing 30% of the company from investors. If our conservative projections hold true, a minimum investment of $20,000 (2% of the company) is expected to return at least $1,679 (8.4%) in profits the first year, and $3,920 (19.6%) each subsequent year from each GloMama!.
Maternity Fitness Spa, LLC, intends to start opening new Glo Mama!'s at an ever-increasing rate beginning the second year, retaining 51% ownership in each new spa. We are projecting 16 spas in the seventh year yielding $33,900 (170%) annual return on investment for each 2.0% of ownership. This rate is projected to keep increasing as more spas are added. Professional staff experienced in rapid expansion will be brought into the management team in anticipation of this growth. When needed and profitable to the stockholders we have the capacity to provide the necessary expansion capital quickly by selling additional portions of the MFS, LLC to new investors. The business is structured to provide a stable return based on the pre-determined size of the membership of each spa. Seven hundred twenty members will rotate through the program – at 60 a month – as they complete their approximately one year membership.
We are asking for letters of commitment to invest conditioned on our reaching $225,000, (75% of our goal of $300,000). At that time we would call for the committed funds and issue the Organizational Agreement with the names of the investors, the amount invested and the percentage of the company each investor owns as a member of the LLC.
Investors will include people who appreciate the core values of the business that include respect for mothers and babies, healthy pregnancies, low intervention births and extended exclusive nursing of babies. Glo Mama! The Maternity Fitness Spa, LLC will not accept capital from persons associated with the formula industry since to do so would compromise the goals of providing the healthiest environment and conditions for both mother and baby.
Potential investors should know that our projections are not promise of performance and returns are not guaranteed.
Market Analysis
Our market includes all pregnant women between the ages of 18 and 45 whose household income is above $25,000. According to demographic data supplied by STDB Inc. approximately 9,500 babies are born to the target population within a 15-minute drive of the Buckhead neighborhood of Atlanta. Glo Mama!'s limited 720 a year membership represents 7.9% market penetration.
The Principals
Diana and Roger Carson, the organizers of Glo Mama! The Maternity Fitness Spa, LLC provide both the vision and the skills that will make Glo Mama! a resounding success.
Diana, the Executive Manager has been addressing issues affecting women, children and minorities for decades. She has worked with the Chicago Human Relations Commission and been recognized by the US Department of Justice for successful public education campaigns. While studying for her recent degree in Maternal Child Health, she developed her vision of Glo Mama! the Maternity Fitness Spa.
As the Financial Manager Roger's strength is in his skills as a controller, developed during work at a rapidly growing electronics corporation in Chicago during the 90's. During that time he added his certification as a Public Accountant to his bachelor's degree in Accounting. For the last 7 years he has run a computerized accounting system business in Puerto Rico and brings this wealth of experience to the responsibilities of financial oversight as the business rapidly expands with new Glo Mama!'s.
Marketing Strategy
As there is no direct competition, we will distribute logo-promoting items to healthcare resources, and to businesses that sell to pregnant women and babies. We will present orientations to health professionals and organizations. Press coverage will emphasize the Public Health issues and the novelty of this approach. Our image will highlight a) the time-limited opportunity of the passing months of the pregnancy and b) the multi-cultural friendships that will develop and last a lifetime.
A one-year membership will include weekly education classes, exercise classes especially tailored to their stage in the pregnancy, and monthly facials or massages. In addition, members of this exclusive club will have the use of the lounge, the hot tub, special attractions and trainings. A kiosk will sell breastfeeding paraphernalia, educational items, and high quality gifts and lotions.
The Site
We are seeking a 3,900 sq.' facility in the upper middle and upper class neighborhoods that are north of and include Buckhead in Atlanta, Georgia.
According to the New York Times, "The Buckhead section of Atlanta is the jewel of the city, an area of gracious homes, elegant hotels and shopping centers as well as some of the best restaurants." The Atlanta Business Chronicle reports that people come from more than 100 miles away to avail themselves of its 1,400 retail units, spending over $1 billion a year.
The Industry
Glo Mama! The Maternity Fitness Spa, LLC, is part of the service industry, combining fitness and day spa programs. According to the US Department of Labor the fitness industry is thriving – the 5th fastest growing industry in America in 2003.
If you would like to participate in this endeavor that we expect will empower new generations of women, as they become mothers, please contact us and we will send you the particulars. If you know other potential investors who may be interested please share this with them.
Thank you.
Diana Carson
Executive ManagerRoger Carson
Financial Manager