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SpreadOffense.com - Business Plan 2009

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Business plan for SpreadOffense.com - This is a online and offline football company specializing in information, news, content, videos, and camps specific to the spread offense in american football.

Business plan for SpreadOffense.com - This is a online and offline football company specializing in information, news, content, videos, and camps specific to the spread offense in american football.

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  • I definitely recommend that you try pitching this to http://www.SharkTankTVShow.com , they are group of people with expertise in business and marketing, they will help you get investors invest in your business and they also welcome pitches like this and looking for business where they can invest in.
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  • 1. Business Plan Contact: Mark Colyer Phone: (201) 966-8076 E-mail: mark@spreadoffense.com
  • 2. MISSION “To become the leading resource – both online and offline – for coaches, players, and fans of the spread offense in football.” 1 CONFIDENTIAL – Do Not Distribute Without Permission
  • 3. Table of Contents 1.0 Executive Summary ..................................................................................... 3 1.1 Financial Objectives .................................................................................... 5 1.2 Start-up Summary ....................................................................................... 6 1.3 Company Ownership .................................................................................. 7 1.4 Company Location ...................................................................................... 7 2.0 Products and Services ................................................................................ 8 2.1 Product and Service Description ................................................................. 8 3.0 Market Analysis Summary ........................................................................ 10 3.1 Market Segmentation ................................................................................ 10 3.2 Industry Analysis ....................................................................................... 12 3.3 Competitive Comparison........................................................................... 12 4.0 Strategy and Implementation Summary ................................................... 14 4.1 Competitive Edge ..................................................................................... 14 4.2 Marketing Strategy .................................................................................... 14 5.0 Management Summary .............................................................................. 16 5.1 Personnel Plan ......................................................................................... 16 6.0 Financial Indicators ................................................................................... 17 6.1 Revenue Forecast .................................................................................... 18 6.2 Break-even Analysis ................................................................................. 21 6.3 Projected Profit and Loss .......................................................................... 22 6.4 Projected Cash Flow ................................................................................. 24 6.5 Projected Balance Sheet .......................................................................... 25 6.6 Sensitivity Analysis ................................................................................... 26 Appendix .......................................................................................................... 27 2 CONFIDENTIAL – Do Not Distribute Without Permission
  • 4. Pro Forma Valuation SpreadOffense.com, Inc. is seeking to sell 41% of its founder shares for $300,000. The Company is projecting to achieve approximately $1,400,000 in net income by the fifth year of operation, and has based the acquisition of shares upon this. Based on the assumption of funding, the Company has derived a five year forecasted plan. The plan highlights the Company; the proposed deal and structure; services; the Company‟s markets; initial plans for marketing; and projected five year financials. The following table was projected with the assumption that the equity investors liquidate their shares of the Company in the 5th year at 4-times net income: Investment Multiple Value $300,000 7.6 $2,280,000.00 $1,400,000 4 $5,600,000.00 41% 1.0 Executive Summary The spread offense has taken the football world by storm. Less an actual set offense than a general philosophy, it is used by more than one-third of college football teams in the NCAA‟s Division 1. As a result, high school and middle school programs across the country are adopting the offense to mimic the college level. Even the National Football League (NFL) has become a participant of this dynamic offense, with many teams now running the „wildcat‟ single-wing shot gun offense as a change of pace to their traditional pro formations. SpreadOffense.com, Inc., (also referred to as “the Company”) is a web portal dedicated to this popular and innovative offense. In a short time, the Company has become a trusted resource for learning about how to both run the spread offense and how to defend against it. The site has gained traction in large part because of its great search engine presence. A Google search of the term “spread offense” yields a No. 2 organic search result for SpreadOffense.com, right behind Wikipedia. SpreadOffense.com has compiled the most comprehensive spread offense playbook available. The 70-page SpreadOffense.com Downloadable Playbook features in-depth running and passing plays for coaches and players. It includes breakdowns and diagrams of specific offensive formations, pass protections, run blocking techniques, and defensive looks seen most often versus the spread offense. SpreadOffense.com also offers the playbook Defending the Spread Offense, both available for $19.95 for immediate download. The Company‟s sister site, SpreadOffense.tv, is an online video-sharing site for football coaches, football players, and fans to share their spread-offense-focused video clips. The goal is to create the Internet‟s largest spread offense video collection. SpreadOffense.tv also has the potential to become a college recruiting site, where athletes post their videos for coaches to view. Recruiting has become big business. Takkle.com, for example, a social network centered on high school sports and college recruiting, recently raised $7 million in second-round financing from Sports Illustrated and several other prominent investors. SpreadOffense.com is now in an expansion phase, and will grow to include the sales of spread offense training DVDs and „on demand‟ content, brick-and-mortar SpreadOffense.com camps and clinics, and premium online subscription content. The Company will partner with well-known high school and college coaches around the country to put on spread offense training events. Camps will take place at a local school facility and draw in athletes from around the region. For very reasonable cost of $250 per kid, the four-day camps will include instructions for quarterbacks, wide receivers, running backs, and linemen to run the spread offense no-huddle system, and defensive training will be offered as well. Nationwide, there are more than 1.1 million high school football players at 18,500 schools and more than 240,000 Pop Warner players. Additionally, there were more than 7.9 million participants in tackle football at any level in the U.S. in 2007. At the college level, 714 four-year schools have football teams. SpreadOffense.com will tap into this large market by offering its services as an authority of the spread offense. Football coaches and players are always looking for a way to hone their skills and improve their game, and now SpreadOffense.com has the ability to offer this to these individuals, both on and offline. Through its football camps, as well as its online portal that sells coaching videos, premium content, and other training materials, the Company will establish itself as a leading force online as well as in the football industry. To introduce its concept 3 CONFIDENTIAL – Do Not Distribute Without Permission
  • 5. and services to potential users and participants, SpreadOffense.com will use strategic Internet advertising, print media ads, national coaching directory services, and presentations with exhibit hall exposure at national football coaching camps and clinics. Mark Colyer will own and operate the Company. Mr. Colyer is an experienced entrepreneur and business professional that has worked for the last two years as the Owner and Founder of SpreadOffense.com. In tandem with this position, he serves as the Executive Vice President and Co-Founder for Branded Marketing. He also worked for four years as a Senior Manager at the Parisi Speed and Athletic Performance Facility and for seven years as a Strength and Conditioning Coordinator and Assistant Football Coach for North Arlington High School. Mr. Colyer is a graduate of West Virginia University, where he completed a Bachelor of Science degree in Exercise Physiology. To achieve the Company‟s objectives, SpreadOffense.com, Inc. is seeking $300,000 in total funding through outside investment. 4 CONFIDENTIAL – Do Not Distribute Without Permission
  • 6. 1.1 Financial Objectives The following table and graphs illustrate the financial goals of the Company during the next five years: Financial Highlights ($000) Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Year 1 Year 2 Year 3 Year 4 Year 5 Revenue 18 36 54 87 289 339 357 162 166 186 206 227 2126 2505 3049 3853 5044 Gross Margin 15 32 49 75 230 271 289 145 155 174 193 212 1839 2175 2666 3397 4488 Operating Expenses 57 65 73 93 190 212 220 127 124 133 142 151 1586 1875 2107 2548 3125 EBITDA (42) (33) (24) (18) 41 59 69 18 32 41 51 61 255 303 562 852 1365 Net Profit (42) (33) (24) (19) 41 59 68 18 31 41 51 61 253 300 559 850 1363 Gross Margin/Revenue 84% 89% 91% 86% 80% 80% 81% 90% 93% 93% 93% 94% 87% 87% 87% 88% 89% EBITDA/Revenue -239% -92% -44% -21% 14% 18% 19% 11% 19% 22% 25% 27% 12% 12% 18% 22% 27% Net Profit/Revenue -240% -93% -45% -21% 14% 17% 19% 11% 19% 22% 25% 27% 12% 12% 18% 22% 27% Net Cash Flow (14) (24) (15) 8 179 89 78 (122) 23 51 61 71 385 314 583 888 1417 Cash Balance - Ending 111 87 72 81 259 349 427 305 328 379 440 511 511 825 1408 2296 3714 Projected Revenue By Year ($000) Projected Operating Highlights By Year ($000) $6,000 $6,000 $5,000 $5,000 $4,000 $4,000 $3,000 $3,000 $2,000 $2,000 $1,000 $1,000 $0 Year 1 Year 2 Year 3 Year 4 Year 5 $0 Year 1 Year 2 Year 3 Year 4 Year 5 Revenue Gross Margin EBITDA Net Profit Projected Cash Flow By Year ($000) Projected Net Income By Year ($000) $1,600 $4,000 $3,500 $1,400 $3,000 $1,200 $2,500 $1,000 $2,000 $800 $1,500 $600 $1,000 $400 $500 $200 $0 Year 1 Year 2 Year 3 Year 4 Year 5 $0 Year 1 Year 2 Year 3 Year 4 Year 5 Net Cash Flow Cash Balance 5 CONFIDENTIAL – Do Not Distribute Without Permission
  • 7. 1.2 Start-up Summary The following tables and graphs detail the funding the Company needs to bring its vision to reality. Start-up expenses include all the expenditures incurred in the “start-up period” – the development stage before the Company starts earning revenue. In other words, “start-up” precedes “Month 1” and “Year 1” of accompanying projections. “Start-up assets” include start-up costs that are not “expensed” and include short and long term- assets. The “cash required” element of the asset table represents the balance of cash at the beginning of Month 1 of the financial projections. Total start-up requirements, which can be funded with loans (liabilities) and/or investment, equal the sum of start-up expenses and assets. Start-up Expenses Start-up Liabilities Legal $5,000 Liabilities and Capital Stationery $600 Current Borrowing $0 Brochures $19,000 Long-term Liabilities $0 Consultants $10,000 Accounts Payable $0 Insurance $300 Other Current Liabilities $0 Rent $8,000 Total Liabilities $0 Video Production $48,000 Website Redevelopment $8,000 Start-up Investments Advertising & Marketing $35,000 Planned Investment Total Start-up Expenses $133,900 Owner $0 Investor $300,000 Start-up Assets Total Planned Investment $300,000 Working Capital $125,600 Inventory $1,500 Start-up Funding FF&E $30,000 Total Liabilities $0 Property $0 Total Planned Investment $300,000 IT & Telephony $9,000 Total Funding $300,000 Total Start-up Assets $166,100 Start-up Capital and Liabilities Total Requirements Loss at Start-up (Start-up Expenses) ($133,900) Total Start-up Expenses $133,900 Total Capital and Liabilities $166,100 Total Start-up Assets $166,100 Cash Balance on Starting Date $125,600 Total Requirements $300,000 Start-up $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Expenses Assets Investment Loans 6 CONFIDENTIAL – Do Not Distribute Without Permission
  • 8. 1.3 Company Ownership SpreadOffense.com, Inc. is an S-corporation registered in the state of New Jersey. The Company is owned by Mark Colyer (100%). 1.4 Company Location SpreadOffense.com, Inc. is headquartered in Bergen County, New Jersey. 7 CONFIDENTIAL – Do Not Distribute Without Permission
  • 9. 2.0 Products and Services SpreadOffense.com is a website dedicated to the innovative offensive style that is sweeping the pro, college, and high school ranks. SpreadOffense.com offers news, coaching tools, playbooks, articles, forums, a blog, and a video-sharing library through SpreadOffense.tv. The Company‟s goal is to become the premier online destination for all things spread offense, and it has achieved a loyal following in just a short period. SpreadOffense.com is primarily composed of two components: how to run the spread offense and how to defend against the spread offense. The Company generates revenue via coach‟s playbook sales (e-downloads), DVD coaching video sales (through third party revenue share), and Google AdSense advertising revenue.  SpreadOffense.com Downloadable Playbook: The Company created a one-of-a-kind spread offense playbook. The collection includes more than 70 pages of in-depth running and passing plays for coaches and players. It includes breakdowns and diagrams of specific offensive formations, pass protections, run blocking techniques, and defensive looks seen most often versus the spread offense in football. The SpreadOffense.com Downloadable Playbook will be beneficial to the beginner, intermediate, or advanced football coach – from Pop Warner to the pros. It can be downloaded straight from the site for $19.95.  Defending the Spread Offense: On the other side of the coin, the SpreadOffense.com Defensive Playbook breaks down the difficult task defenses face each game. The Company has assembled the best defensive playbook that will help teams at any level. Defensive alignments, responsibilities, stunts, and coverages out of the 3-3-5 stack are profiled. Also priced at $19.95.  SpreadOffense.tv: This video-sharing site is an online platform for football coaches, football players, and fans to share their spread-offense-focused video clips, creating a community of like-minded people. Included are clips of game film, practice film, training sessions, camps, and instructional pieces. The goal of the Company is to create the largest library of football clips available. SpreadOffense.tv will potentially be seen by millions of people around the world. This will be attractive to advertisers and sponsors, and could even become a major center for college coaches to recruit high school players based on their highlight films. In the future, coaches could be charged for access to a recruitment-specific section of the site. 2.1 Product and Service Description SpreadOffense.com is now expanding its presence to include in-house training videos and camps and clinics at schools and recreational facilities across the country. The Company will establish strong alliances with well-known coaches at the high school and college level, who will be featured coaches at the clinics and camps and also spread the word about SpreadOffense.com. These two new components are further detailed below: Instructional videos: The Company will produce and sell training videos featuring the instructions from its SpreadOffense.com Downloadable Playbook and presented by 8 CONFIDENTIAL – Do Not Distribute Without Permission
  • 10. coaches seasoned in the spread offense. These videos will be primarily for coaches who want to learn the spread offense and teach their teams. Similarly, there will be videos for defending the spread offense. Coaches can purchase the videos and view them on SpreadOffense.com via „on-demand‟ technology, or they can purchase a DVD to the video. Camps: Stretching from the high school to youth football levels, SpreadOffense.com‟s camps will be for players ages nine to 18. The Company will partner with schools in communities across the country that will host the camps at their facilities. Coaches will be independently contracted to run all day-to-day aspects of the camps. The Company will handle all billing and advertising. Camps will typically run four days, at a cost of $250 per kid. The Company will establish a set format and lessons for camps and clinics. Ideally, camps and clinics will become annual events at school campuses, which will be centrally located in each market to draw players from the entire surrounding area. Both offense and defense components will be coached, and topics, for example, will include instructions for quarterbacks, wide receivers, running backs, and linemen to run the spread offense no- huddle system. Camps will be opened to both individual players and teams at a bulk discount. 9 CONFIDENTIAL – Do Not Distribute Without Permission
  • 11. 3.0 Market Analysis Summary The Market for SpreadOffense.com can be paralleled to sports website advertising and online video use. Advertising on sports websites in the U.S., which totaled just $819 million in 2007, will reach an estimated $1.15 1 billion in 2009 and $1.95 billion by 2012, according to a report from eMarketer. “The Internet promises to reshape the sports marketing landscape by offering sports fans instant and dynamic access to scores, news, trivia, statistics, blogs, bulletin boards, social networks, fantasy sports services, highlights, and live game 2 streaming,” says eMarketer‟s senior analyst Paul Verna. Advertising as a percentage of total revenue for sports 3 sites will grow from 55% to 66% during the same period. Growth is further illustrated in the following chart: According to eMarketer, 2008 saw a dramatic jump of available online video “both from professional content producers – such as TV networks – and from amateurs churning out user-generated content.” This has led to unprecedented online viewership (With more than 154 million people in the U.S. watching online video at least once a month in 2008). By 2012, an estimated 190 million Americans will be regularly watching online videos, 4 accounting for 88% of total Internet users: 3.1 Market Segmentation Players Plunkett Research reported in its 2009 Sports Almanac that 7,939,000 Americans age six and older participated 5 in tackle football in 2007 and 12,988,000 Americans participated in touch football. Pop Warner, a leading youth football league for players age five to 16, draws more than 240,000 youth football players in 42 states and several 6 countries. 1 eMarketer. “Sports Site Marketing: Ad Revenue Models Pull Ahead.” Obtained at: http://tinyurl.com/kvpy5p. 2 eMarketer. “Sports Marketing Is a Whole New Ball Game.” July 20, 2007. Obtained at: http://tinyurl.com/nfe6e3 3 eMarketer. “Sports Site Marketing: Ad Revenue Models Pull Ahead.” Obtained at: http://tinyurl.com/kvpy5p. 4 eMarketer. “Video Content: Harnessing a Mass Audience.” Nov. 2008. Obtained at: http://tinyurl.com/b28ygm 5 Plunkett Research, Ltd. “Plunkett‟s Sports Industry Almanac 2009.” 2008. Obtained at: http://tinyurl.com/yjb5oua. 6 Pop Warner Football. “Football Overview.” Obtained at: http://www.popwarner.com/football/pop.asp?lable=overview. 10 CONFIDENTIAL – Do Not Distribute Without Permission
  • 12. Coaches The American Football Coaches Association reports more than 10,000 members from the high school to 7 professional level throughout the U.S. and abroad. USA Football, the leading youth football coaching and 8 officiating organization in the U.S., reports 26,789 coaches in its registry. USA Football was endowed by the NFL and NFL Players Association in 2002. It is composed of youth coaches, league commissioners, and game 9 officials in 50 states and is the Official Youth Football Development Partner of the NFL and NFLPA. USA 10 Football has trained more than 16,000 youth football coaches since 2007. High school: More than 7.4 million students participated in interscholastic sports in the 2007-2008 school year, according to the National Federation of State High School Association (NFSHA), which provides program 11 initiatives for the nation‟s 18,500 high schools. The largest participation among any sport is by far 11-man 12 football, with 1,108,286 participants, more than double the size of the next-largest sport; boys‟ basketball. Eight- man football is also played at many small schools 13 College: There are 714 four-year colleges and universities with football teams. These include:  14 NCAA Div. 1 (BCS): 119 teams (at least 48 run the spread offense )  NCAA Div. 1 (FCS): 116 teams  NCAA Div. II: 156 teams  NCAA Div. III: 234 teams  NAIA: 91 teams Fans Football has the most loyal fans of any sport. The NFL has the most “avid fans,” according to the Sporting Goods Manufacturers Association, with 32 million fans identifying themselves as such. The NFL was followed by college 15 football, with 23 million avid fans. The fan base for football can also be measured by online sports website traffic. The three websites represented below are the primary destinations online for America‟s sports fans. They offer up-to-the-minute information that sports fans desire. ESPN and CBS Sportsline cover all sports and competitions, from football to purebred dog shows, while FoxSports, which includes BCSFootball.org – for the Bowl Championship Series (BCS) – has in depth analysis in the BCS and its bowl games. The table below shows Compete.com data regarding these sites‟ 16 user traffic for 2008: 7 American Football Coaches Association. “Become A Member.” October 2006. Obtained at: http://www.afca.com/ViewArticle.dbml?DB_OEM_ID=9300&ATCLID=639502. 8 USA Football. “Coaches Registry.” Obtained at: http://www.usafootball.com/coaches_registry. 9 USA Football. “Overview.” Obtained at: http://www.usafootball.com/pages/overview. 10 USA Football. “Upper Arlington Youth Football League Employs USA Football Coaching Education & Background Check Subsidy.” August 2009. Obtained at: http://www.uayouthfootball.com/usafb%20press%20release1.pdf. 11 National Federation of State High School Associations info obtained at: http://www.nfhs.org/web/2006/08/about_us.aspx 12 National Federation of State High School Associations info obtained at http://www.nfhs.org/custom/participation_figures/default.aspx 13 Obtained at NCAA.org. 14 ESPN. “Who runs the spread offense?” July 21, 2009. Obtained at: http://sports.espn.go.com/ncf/news/story?id=4327427 15 Freedman, Michael. Sports Marketing Network. “NFL Still King in Sports Licensing, Fans.” July 17, 2007. Obtained at: http://tinyurl.com/3drupb 16 Compete.com. Site Analytics. Obtained at: http://siteanalytics.compete.com/espn.com+foxsports.com+sportsline.com/?metric=uv 11 CONFIDENTIAL – Do Not Distribute Without Permission
  • 13. As can be seen in the graph above, with the exception of the month of March, when NCAA basketball is at its height, football season, from August to January, represents the highest-traffic period for these major sports websites. The BCS and the Super Bowl are the culmination of that season. 3.2 Industry Analysis There are thousands of sports camps across the country. The Sports Camp Federation has more than 20,000 17 camps and schools in its database. These range from small camps put on by a school or club team, to large companies whose sole purpose is to operate sports camp. US Sports Camps, for example, is the largest company in the industry. It has 400 camps nationwide, including many Nike-branded camps, and has more than 52,000 annual campers. It had 2008 revenue of $30 million. More than 70% of its campers sign up over the Internet. The San Francisco-area company has just 17 full-time employees, contracting out coaching and running 18 individual camps to coaches. 3.3 Competitive Comparison SpreadOffense.com has the most comprehensive information online about the spread offense. On a Google search of the term, it is the second entry for organic search results, behind only Wikipedia‟s article. Its camps and clinics, however, will compete with the thousands of individual events available to athletes. Some of the top camps in the industry are as follows:  DeBartolo Sports University: This provider of skill-specific football camps is owned by the former owner of the San Francisco 49ers, Edward DeBartolo, Jr. As such, its site prominently displays the images of starts Jerry Rice and Joe Montana, who hosts a quarterbacks‟ camp. There are general-purpose DeBartolo Football Academies in Los Angeles, Tampa, Chicago, New Jersey, and Oklahoma City, as well as the Elite Quarterback Academy in Tampa. Clinics include a combine prep camp, and DeBartolo also offers online training videos.  Tony Franklin Systems: This program, called The System Football, has 2010 clinics in Nashville, Houston, Dallas, Atlantic City, and Los Angeles. It is a program to teach coaches to learn a football- teaching format. The System Seminars are operated by the Frank Glazier Mega Clinics offices in Colorado Springs.  USA Football: Created by the NFL and the NFL Players Association, its membership includes youth coaches, league commissioners, and game officials in all 50 states. It is an independent and nonprofit group that hosts more than 100 football training events each year to educate coaches and game officials, as well as skill-development events for players. USA Football gives more than $1 million in grants to youth football leagues each year. 17 Sports Camp Federation info obtained at: http://www.sportscampfederation.com/ 18 Mills, Dave. San Francisco Business Times. “US Sports Camps Wins Business Gold.” May 30, 2008. Obtained at: http://www.ussportscamps.com/news/2007/2008_05_01_archive.html 12 CONFIDENTIAL – Do Not Distribute Without Permission
  • 14.  Football University (FBU): FBU selects the best high school athletes in the country and offers them a spot at its annual camps. FBU picks the top 300 prep athletes in 30 different regions and provides a three-day curriculum that includes instruction from some of the top trainers in the industry. Instructors have privately trained players such as Tom Brady, Tony Romo, and Eli Manning. Camps include 14 hours of training in on-field and off-field instruction, technique drills, film study, classroom testing, and access to high-definition video analysis, for a cost of $560. The top participants from the 30 camps are invited to FBU‟s year-end Top Gun camp in Florida.  Sports International Football Camp: This company uses star football players to attract kids to its camps. For example, it puts on the Marcus Trufant Football Camp in the Seattle area, featuring the Seahawks‟ all-star defensive back as well as other current and former Seattle players. It has 21 camps in 16 states. Before the start of each camp, Sports International hosts specialty clinics at the camp site. It is also worth noting competitors in the area of college recruiting. This has turned into a big business. BeRecruited.com, for example, was founded in 2000 and was first to market with online recruitment services. It has approximately 265,000 registered users, including 237,000 student-athletes, 11,000 college coaches, and 19 9,000 high school coaches. Another company, PrepChamps, closed a first round of financing in 2008 of $1.2 20 21 million. It has developed a strategic partnership with Reebok to bolster online registration. Takkle.com, a social networking site that also has a recruiting forum, raised $5 million in its first round of private funding in November 2006. A second round of $7 million (in November 2007) was led by Sports Illustrated and the New York City Investment Fund, with involvement from first round investors Wasserman Media Group LLC, Greycroft Partners, LLC, IJ Smith Enterprises LLC, and Jack Schneider, Managing Director at Allen & Company, 22 Inc. MaxPreps, a high school sports information site, received $2.25 million in venture capital in 2005. ESPN recently acquired Student Sports Inc., a high school-focused digital media company, and SB Nation, a sports blog supersite with 3.5 million monthly visitors, recently raised $7 million in a Series B round, led by the 23 Comcast Corporation. For information regarding the Company‟s competitive advantages, see 4.1 Competitive Edge. 19 MarketWatch. “July marks record month for beRecruited.com.” August 7, 2008. Obtained at: http://tinyurl.com/5pfwhw 20 Nicole, Kristin. Mashable.com. “PrepChamps raises $1.2 million to recruit high school jocks.” April 22, 2008. Obtained at: http://mashable.com/2008/04/22/prepchamps/ 21 Business Wire. “Reebok Basketball Partners with PrepChamps to Help Nation's Elite High School Basketball Players 'Get Recognized and Get Recruited'” April 24, 2008. Obtained at: http://findarticles.com/p/articles/mi_m0EIN/is_2008_April_24/ai_n25356014 22 Weisenthal, Joseph. paidContent.org. “High School Sports Network Takkle Raises $7million in Second Funding.” November 12, 2007. Obtained at: http://www.paidcontent.org/entry/419-high-school-sports-network-takkle-raises-7-million-liberty-associated-r/ 23 New York Times. “Sportsblogs Inc. Scores $7 Million in 2nd Round.” July 24, 2009. Obtained at: http://tinyurl.com/lbzjo8 13 CONFIDENTIAL – Do Not Distribute Without Permission
  • 15. 4.0 Strategy and Implementation Summary The Company recognizes that building its brand is important to securing a strong standing in the industry and community it serves. Therefore, SpreadOffense.com will focus on growing its brand, which is built on the cornerstones of innovation and excellence in its provision of a site for news, information, and coaching resources on football‟s most exciting offense. In addition, the Company will market its new football camps to players and coaches wanting to learn more about the spread offense in football. To raise brand awareness among its intended audience, the Company has created an appealing and memorable logo that it will use throughout its promotional strategy and in its various marketing materials. This will aid in brand reinforcement, increased site traffic, and the enhanced growth of its name and positive reputation among football coaches as well as players who are looking to improve their game and overall sports ability. With its brand and guiding principles established, SpreadOffense.com will send a clear message about what it stands for, thereby building brand loyalty and encouraging the steady growth of its user base. SpreadOffense.com intends to achieve the following objectives:  Continue to grow a strong brand name and reputation in the football industry as well as online  Fuel growth through positive word of mouth referrals In order to reach these operational goals, the Company will build on its strengths and advantages as outlined in the following section. 4.1 Competitive Edge The Company intends to capitalize on its core strengths in order to establish itself as a leading force in the football industry that connects football coaches and players with tools and information to improve their game. These competitive advantages are outlined in greater detail below:  Establish strong alliances with well-known, reputable football coaches in high schools and colleges  Company‟s owner is a highly experienced business professional and coach with years of expertise in the field  Provide coaches as well as players the opportunity to hone their skills and improve their game, both on and offline  Superior level of professionalism  Extensive marketing tactics will reach a large segment of customers 4.2 Marketing Strategy SpreadOffense.com will generate interest for its football camps and online portal by utilizing a variety of advertising channels that will increase the Company‟s exposure among its target audience.  Internet advertising: SpreadOffense.com will use a combination of Internet advertising including Cost- per-Click, Google AdWords, Tags, banner ads, third party alliances, and search engine optimization of its website. This multi-pronged effort will help generate interest in the Company from the online community and general public.  Search engine optimization: The Company will allot portions of its marketing budget for strategic Internet marketing, including search engine optimization. This tactic involves organically improving the quality and volume of traffic to a website through user searches on search engines such as Google, Bing, and Yahoo!. 14 CONFIDENTIAL – Do Not Distribute Without Permission
  • 16.  Print media: SpreadOffense.com will place print advertisements in a variety of sports, coaching, and football-related publications. Some of these may include The Sporting News, Football Digest, ESPN The Magazine, Coach and Athletic Director Magazine (Scholastic), and SportsFan Magazine.  Direct marketing: The Company‟s management team and staff will be present at national football camps and coaches‟ clinics such as the Nike Football Clinics and Glazier Football Clinics, which will allow for increased brand exposure and the opportunity to meet one-on-one with coaches and players who may be interested in what the Company has to offer. 15 CONFIDENTIAL – Do Not Distribute Without Permission
  • 17. 5.0 Management Summary Mark Colyer, Owner Mr. Colyer presently serves as the Owner and Founder of SpreadOffense.com, a position he has worked in for the last two years. During his time here, he created, developed, and successfully implemented the company‟s concept and vision, as well as implementing all three web properties and all web content, and two online playbooks. In the first five months, through his leadership and sales abilities, the company generated more than $5,000 in online playbook sales. Concurrently with this position, Mr. Colyer works as an Executive Vice President and Co-Founder for Branded Marketing. His responsibilities here include setting strategic direction both online and offline, optimizing the business model, setting and achieving outlined business goals, and launching new product and service initiatives. In the two years he has served in this role, he built the sales organization that established 13 retail locations, developed and fostered four innovative prepaid financial card products, and launched Internet acquisition and servicing. Mr. Colyer‟s prior business experience includes service as an Assistant Varsity Football Coach at St. Joseph‟s Regional High School and as a Senior Manager for four years at the Parisi Speed and Athletic Performance Facility in New Jersey. He also worked as a Northern New Jersey Sales Representative for College Bound Student-Athletes and as a Program Coordinator of Health Services-Senior Executive Wellness at American Express Company. Furthermore, Mr. Colyer spent more than seven years as a Strength and Conditioning Coordinator and Assistant Varsity Football Coach for North Arlington High School. A graduate of West Virginia University, Mr. Colyer holds a Bachelor of Science degree in Exercise Physiology. 5.1 Personnel Plan Personnel Forecast Year 1 Year 2 Year 3 Year 4 Year 5 Personnel Count President 1 1 1 1 1 Vice President 1 1 1 1 1 Camp Coordinator 1 1 1 1 1 Web Master 1 1 1 1 1 Admin Support 2 3 3 4 4 Total Personnel 6 7 7 8 8 Personnel Wage President $120,000 $126,000 $132,300 $138,915 $145,861 Vice President $85,000 $89,250 $93,713 $98,398 $103,318 Camp Coordinator $60,000 $63,000 $66,150 $69,458 $72,930 Web Master $40,000 $42,000 $44,100 $46,305 $48,620 Admin Support $32,000 $33,600 $35,280 $37,044 $38,896 Personnel Costs President $120,000 $126,000 $132,300 $138,915 $145,861 Vice President $85,000 $89,250 $93,713 $98,398 $103,318 Camp Coordinator $60,000 $63,000 $66,150 $69,458 $72,930 Web Master $40,000 $42,000 $44,100 $46,305 $48,620 Admin Support $64,000 $100,800 $105,840 $148,176 $155,585 Total Payroll $369,000 $421,050 $442,103 $501,252 $526,314 16 CONFIDENTIAL – Do Not Distribute Without Permission
  • 18. 6.0 Financial Indicators The following table summarizes the Company‟s projected financial performance with standardized measurement indicators used to evaluate profitability, leverage, asset turnover, and liquidity. As with any long-range projection, accuracy is based on reasonable estimates of return on investment and past performance. The Company believes the following numbers are attainable and reasonable. However, actual results will vary. Financial Indicators Year 1 Year 2 Year 3 Year 4 Year 5 Profitability %'s: Gross Margin 86.51% 86.83% 87.43% 88.18% 88.97% Net Profit Margin 11.89% 11.99% 18.35% 22.05% 27.02% EBITDA to Revenue 12.01% 12.09% 18.43% 22.12% 27.07% Return on Assets 46.03% 34.90% 38.82% 36.52% 36.43% Return on Equity 60.33% 41.76% 43.76% 39.92% 39.04% Activity Ratios: Accounts Payable Turnover 2.20 2.33 2.36 2.29 2.22 Asset Turnover 3.87 2.91 2.12 1.66 1.35 Leverage Ratios: Debt to Equity 0.31 0.20 0.13 0.09 0.07 Debt to Assets Ratio 23.70% 16.45% 11.28% 8.54% 6.69% Interest Coverage Ratio N/A N/A N/A N/A N/A Liquidity Ratios: Current Ratio 3.94 5.84 8.68 11.57 14.83 Current Debt to Total Assets Ratio 23.70% 16.45% 11.28% 8.54% 6.69% Additional Indicators: Revenue to Equity Ratio 5.08 3.48 2.39 1.81 1.44 Financial Indicators 30.00% 25.00% Net Profit Margin 20.00% EBITDA to Revenue 15.00% 10.00% Debt to Assets Ratio 5.00% Current Debt to Total Assets Ratio 0.00% Year 1 Year 2 Year 3 Year 4 Year 5 17 CONFIDENTIAL – Do Not Distribute Without Permission
  • 19. 6.1 Revenue Forecast The following is a five-year revenue forecast. Direct costs include all costs which can be directly tied to revenue and include “cost of goods.” 18 CONFIDENTIAL – Do Not Distribute Without Permission
  • 20. Revenue Forecast Year 1 Year 2 Year 3 Year 4 Year 5 Units Unique Visitors 229,207 343,810 515,715 773,572 1,160,359 New Premium Online Content Members 34,381 51,571 77,357 116,036 174,054 Cumulative Premium Members 137,983 163,746 204,552 267,813 364,657 Playbooks 2,579 3,868 5,802 8,703 13,054 Videos 2,865 4,298 6,446 9,670 14,504 Player/Team Camps 20 22 23 24 25 Coaches Clinics 5 6 7 8 9 Personal Training 191 201 211 221 232 Affiliate Ads 229,207 343,810 515,715 773,572 1,160,359 Sponsorships 25 22 23 24 25 Total Units 636,462 911,353 1,325,850 1,949,643 2,887,278 Unit Price Premium Memberships $8.50 $8.50 $8.50 $8.50 $8.50 Playbooks $19.95 $19.95 $19.95 $19.95 $19.95 Videos $39.95 $39.95 $39.95 $39.95 $39.95 Player/Team Camps $30,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 Coaches Clinics $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 Personal Training $240.00 $240.00 $240.00 $240.00 $240.00 Affiliate Ads $0.05 $0.05 $0.05 $0.05 $0.05 Sponsorships $500.00 $500.00 $500.00 $500.00 $500.00 Revenue Premium Memberships $1,172,857 $1,391,841 $1,738,689 $2,276,414 $3,099,583 Playbooks $51,443 $77,164 $115,746 $173,619 $260,428 Videos $114,460 $171,690 $257,535 $386,303 $579,454 Player/Team Camps $600,000 $648,000 $684,000 $720,000 $756,000 Coaches Clinics $75,000 $90,000 $105,000 $120,000 $135,000 Personal Training $45,841 $48,133 $50,540 $53,067 $55,720 Affiliate Ads $11,460 $17,190 $25,786 $38,679 $58,018 Sponsorships $12,500 $10,800 $11,400 $12,000 $12,600 Coaches Consulting $42,000 $50,400 $60,480 $72,576 $87,091 Total Revenue $2,125,562 $2,505,219 $3,049,175 $3,852,657 $5,043,894 Direct Unit Cost Playbooks $0.90 $0.90 $0.90 $0.90 $0.90 Videos $4.80 $4.80 $4.80 $4.80 $4.80 Player/Team Camps $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 Coaches Clinics $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 Personal Training $75.00 $75.00 $75.00 $75.00 $75.00 Direct Cost of Revenue Playbooks $2,321 $3,481 $5,222 $7,832 $11,749 Videos $13,752 $20,629 $30,943 $46,414 $69,622 Player/Team Camps $120,000 $129,600 $136,800 $144,000 $151,200 Coaches Clinics $30,000 $36,000 $42,000 $48,000 $54,000 Personal Training $14,325 $15,042 $15,794 $16,583 $17,413 Subtotal Cost of Revenue $180,399 $204,751 $230,758 $262,830 $303,983 19 CONFIDENTIAL – Do Not Distribute Without Permission
  • 21. Year 1 Revenue Monthly $400,000 $350,000 Coaches Consulting $300,000 Sponsorships $250,000 Affiliate Ads $200,000 Personal Training $150,000 Coaches Clinics Player/Team Camps $100,000 Videos $50,000 Playbooks $0 Premium Memberships Month 10 Month 11 Month 12 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Revenue By Year Coaches Consulting $6,000,000 Sponsorships $5,000,000 Affiliate Ads $4,000,000 Personal Training $3,000,000 Coaches Clinics Player/Team Camps $2,000,000 Videos $1,000,000 Playbooks $0 Premium Memberships Year 1 Year 2 Year 3 Year 4 Year 5 20 CONFIDENTIAL – Do Not Distribute Without Permission
  • 22. 6.2 Break-even Analysis The following break-even analysis shows the revenue necessary to break even in the first year of operation. It equilibrates revenue and expenses. As shown below, the Company is expected to incur average monthly fixed costs of $132,188 in Year 1. To cover fixed costs and variable costs, which rise and fall with revenue, the Company must, on average, achieve revenue of $152,795 per month to break even. Break-even Analysis Monthly Revenue Break-even $152,795 Assumptions: Average Monthly Revenue $177,130 Average Monthly Variable Cost $23,890 Estimated Monthly Costs $132,188 Year 1 Break-even Analysis $150,000 $100,000 $50,000 $0 ($50,000) ($100,000) ($150,000) $0 $152,795 $305,591 Monthly Revenue to Break Even 21 CONFIDENTIAL – Do Not Distribute Without Permission
  • 23. 6.3 Projected Profit and Loss The Company intends to deploy its funding to maximize growth and profitability. In the Profit and Loss table below, gross margin equals sales minus direct costs. The “bottom line” or profit (as measured before and after interest, taxes, depreciation, and amortization) equals gross margin minus operating expenses. Pro Forma Profit and Loss Year 1 Year 2 Year 3 Year 4 Year 5 Revenue $2,125,562 $2,505,219 $3,049,175 $3,852,657 $5,043,894 Subtotal Cost of Revenue $180,399 $204,751 $230,758 $262,830 $303,983 Merchant Fees $106,278 $125,261 $152,459 $192,633 $252,195 Total Cost of Revenue $286,677 $330,012 $383,217 $455,463 $556,177 Gross Margin $1,838,885 $2,175,207 $2,665,958 $3,397,194 $4,487,717 Gross Margin/Revenue 86.51% 86.83% 87.43% 88.18% 88.97% Expenses Travel $25,000 $25,625 $26,266 $26,922 $27,595 Rent $48,000 $49,200 $50,430 $51,691 $52,983 Insurance $5,880 $6,027 $6,178 $6,332 $6,490 Utilities $6,720 $6,888 $7,060 $7,237 $7,418 Marketing/Promotion $956,503 $1,127,348 $1,372,129 $1,733,696 $2,269,752 Camp Supplies $17,000 $18,700 $20,570 $22,627 $24,890 Contractors $48,000 $49,200 $50,430 $51,691 $52,983 Office Supplies $4,200 $4,305 $4,413 $4,523 $4,636 Video Production $0 $48,000 $0 $0 $0 Other /Misc $48,000 $52,800 $58,080 $63,888 $70,277 Depreciation $2,600 $2,600 $2,600 $2,600 $2,600 Payroll Taxes $55,350 $63,158 $66,315 $75,188 $78,947 Total Personnel $369,000 $421,050 $442,103 $501,252 $526,314 Total Op. Expenses $1,586,253 $1,874,901 $2,106,573 $2,547,646 $3,124,886 Profit Before Interest and Taxes $252,632 $300,306 $559,385 $849,548 $1,362,831 EBITDA $255,232 $302,906 $561,985 $852,148 $1,365,431 Interest Expense $0 $0 $0 $0 $0 Taxes Incurred $0 $0 $0 $0 $0 Net Profit $252,632 $300,306 $559,385 $849,548 $1,362,831 Net Profit/Revenue 11.89% 11.99% 18.35% 22.05% 27.02% 22 CONFIDENTIAL – Do Not Distribute Without Permission
  • 24. Each pie chart below represents total revenue for five years and illustrates the percentage of revenue allocated to cost of goods (COG), operating expenses and taxes, and interest. The net income piece represents revenue less the aforementioned expenditures. Year 1 Year 2 Year 3 Year 4 Year 5 12% 13% 12% 13% 13% 12% 11% 18% 22% 0% 0% 27% 0% 0% 0% 66% 62% 75% 75% 69% Cost of Goods Total Op. Expenses Taxes and Interest Incurred Net Profit Gross Margin & Profit Monthly $350,000 $300,000 $250,000 $200,000 $150,000 Gross Margin $100,000 Profit $50,000 $0 -$50,000 -$100,000 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Gross Margin & Profit Yearly $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 Gross Margin Profit $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Year 1 Year 2 Year 3 Year 4 Year 5 23 CONFIDENTIAL – Do Not Distribute Without Permission
  • 25. 6.4 Projected Cash Flow The following depictions of the Company‟s projected cash flow show that the Company expects to maintain sufficient cash balances over the five years of this plan. The “pro forma cash flow” table differs from the “pro forma profit and loss” (P&L) table. Pro forma cash flow is intended to represent the actual flow of cash in and out of the Company. In comparison, the revenue and expense projections on the P&L table include “non-cash” items and exclude funding and investment illustrations. Year 1 Cash $600,000 $500,000 $400,000 $300,000 Net Cash Flow $200,000 Cash Balance $100,000 $0 -$100,000 -$200,000 Month 10 Month 11 Month 12 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Pro Forma Cash Flow Year 1 Year 2 Year 3 Year 4 Year 5 Cash Received Revenue $2,125,562 $2,505,219 $3,049,175 $3,852,657 $5,043,894 New Current Borrowing $0 $0 $0 $0 $0 New Long-term Liabilities $0 $0 $0 $0 $0 Sale of Other Current Assets $0 $0 $0 $0 $0 Sale of Long-term Assets $0 $0 $0 $0 $0 New Investment Received $0 $0 $0 $0 $0 Subtotal Cash Received $2,125,562 $2,505,219 $3,049,175 $3,852,657 $5,043,894 Expenditures Expenditures from Operations Cash Spending $369,000 $421,050 $442,103 $501,252 $526,314 Bill Payments $1,371,241 $1,769,827 $2,024,126 $2,463,172 $3,100,275 Subtotal Spent on Operations $1,740,241 $2,190,877 $2,466,229 $2,964,424 $3,626,590 Additional Cash Spent Current Borrowing Repay. $0 $0 $0 $0 $0 L-T Liabilities Principal Repay. $0 $0 $0 $0 $0 Purchase Inventory $0 $0 $0 $0 $0 Purchase Long-term Assets $0 $0 $0 $0 $0 Dividends $0 $0 $0 $0 $0 Subtotal Cash Spent $1,740,241 $2,190,877 $2,466,229 $2,964,424 $3,626,590 Net Cash Flow $385,321 $314,342 $582,947 $888,233 $1,417,305 Cash Balance $510,921 $825,263 $1,408,210 $2,296,443 $3,713,747 24 CONFIDENTIAL – Do Not Distribute Without Permission
  • 26. 6.5 Projected Balance Sheet Pro Forma Balance Sheet Year 1 Year 2 Year 3 Year 4 Year 5 Assets Current Assets Cash $510,921 $825,263 $1,408,210 $2,296,443 $3,713,747 Inventory $1,500 $1,500 $1,500 $1,500 $1,500 Total Current Assets $512,421 $826,763 $1,409,710 $2,297,943 $3,715,247 Long-term Assets Long-term Assets $39,000 $39,000 $39,000 $39,000 $39,000 Accumulated Depreciation $2,600 $5,200 $7,800 $10,400 $13,000 Total Long-term Assets $36,400 $33,800 $31,200 $28,600 $26,000 Total Assets $548,821 $860,563 $1,440,910 $2,326,543 $3,741,247 Liabilities and Capital Current Liabilities Accounts Payable $130,089 $141,525 $162,486 $198,571 $250,445 Current Borrowing $0 $0 $0 $0 $0 Other Current Liabilities $0 $0 $0 $0 $0 Subtotal Current Liabilities $130,089 $141,525 $162,486 $198,571 $250,445 Long-term Liabilities $0 $0 $0 $0 $0 Total Liabilities $130,089 $141,525 $162,486 $198,571 $250,445 Paid-in Capital $300,000 $300,000 $300,000 $300,000 $300,000 Retained Earnings ($133,900) $118,732 $419,038 $978,423 $1,827,972 Earnings $252,632 $300,306 $559,385 $849,548 $1,362,831 Total Capital $418,732 $719,038 $1,278,423 $2,127,972 $3,490,803 Total Liabilities and Capital $548,821 $860,563 $1,440,910 $2,326,543 $3,741,247 Net Worth $418,732 $719,038 $1,278,423 $2,127,972 $3,490,803 25 CONFIDENTIAL – Do Not Distribute Without Permission
  • 27. 6.6 Sensitivity Analysis The sensitivity analysis below assumes that revenues are 15% higher or lower than figures projected earlier in this business plan. Best Case Scenario (Revenue Increases by 15%) Year 1 Year 2 Year 3 Year 4 Year 5 Revenue $2,444,396 $2,881,002 $3,506,552 $4,430,556 $5,800,478 Cost of Goods $329,678 $379,514 $440,700 $523,783 $639,604 Gross Margin $2,114,718 $2,501,487 $3,065,852 $3,906,773 $5,160,874 Gross Margin/Revenue 86.51% 86.83% 87.43% 88.18% 88.97% Operating Expenses $1,586,253 $1,874,901 $2,106,573 $2,547,646 $3,124,886 Net Profit $528,465 $626,587 $959,279 $1,359,127 $2,035,989 Cash Flow $663,270 $649,572 $993,168 $1,410,275 $2,105,955 Cash Balance $788,870 $1,438,442 $2,431,610 $3,841,885 $5,947,840 Net Profit/Revenue 21.62% 21.75% 27.36% 30.68% 35.10% Worst Case Scenario (Revenue Decreases by 15%) Year 1 Year 2 Year 3 Year 4 Year 5 Revenue $1,848,314 $2,178,451 $2,651,457 $3,350,136 $4,385,995 Cost of Goods $249,284 $286,967 $333,232 $396,055 $483,633 Gross Margin $1,599,030 $1,891,484 $2,318,225 $2,954,082 $3,902,362 Gross Margin/Revenue 86.51% 86.83% 87.43% 88.18% 88.97% Operating Expenses $1,586,253 $1,874,901 $2,106,573 $2,547,646 $3,124,886 Net Profit $12,778 $16,583 $211,652 $406,436 $777,477 Cash Flow $143,626 $31,962 $236,708 $447,085 $834,624 Cash Balance $269,226 $301,188 $537,895 $984,981 $1,819,604 Net Profit/Revenue 0.69% 0.76% 7.98% 12.13% 17.73% 26 CONFIDENTIAL – Do Not Distribute Without Permission
  • 28. Appendix Year 1 Revenue Forecast Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Units Unique Visitors 14,400 15,120 15,876 16,670 17,503 18,378 19,297 20,262 21,275 22,339 23,456 24,629 New Premium Online Content Members 2,160 2,268 2,381 2,500 2,625 2,757 2,895 3,039 3,191 3,351 3,518 3,694 Cumulative Premium Members 0 2,052 4,104 6,161 8,229 10,311 12,415 14,544 16,704 18,901 21,139 23,424 Playbooks 162 170 179 188 197 207 217 228 239 251 264 277 Videos 180 189 198 208 219 230 241 253 266 279 293 308 Player/Team Camps 0 0 0 0 6 7 7 0 0 0 0 0 Coaches Clinics 0 0 0 1 1 1 1 1 0 0 0 0 Personal Training 12 13 13 14 15 15 16 17 18 19 20 21 Affiliate Ads 14,400 15,120 15,876 16,670 17,503 18,378 19,297 20,262 21,275 22,339 23,456 24,629 Sponsorships 0 0 0 0 7 9 9 0 0 0 0 0 Total Units 31,314 34,932 38,628 42,412 46,305 50,294 54,395 58,607 62,969 67,479 72,146 76,982 Unit Price Premium Memberships $8.50 $8.50 $8.50 $8.50 $8.50 $8.50 $8.50 $8.50 $8.50 $8.50 $8.50 $8.50 Playbooks $19.95 $19.95 $19.95 $19.95 $19.95 $19.95 $19.95 $19.95 $19.95 $19.95 $19.95 $19.95 Videos $39.95 $39.95 $39.95 $39.95 $39.95 $39.95 $39.95 $39.95 $39.95 $39.95 $39.95 $39.95 Player/Team Camps $30,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 $30,000.00 Coaches Clinics $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 $15,000.00 Personal Training $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 $240.00 Affiliate Ads $0.05 $0.05 $0.05 $0.05 $0.05 $0.05 $0.05 $0.05 $0.05 $0.05 $0.05 $0.05 Sponsorships $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 $500.00 27 CONFIDENTIAL – Do Not Distribute Without Permission
  • 29. Year 1 Revenue Forecast (Cont.) Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Revenue Premium Memberships $0 $17,442 $34,884 $52,370 $69,942 $87,646 $105,525 $123,622 $141,984 $160,655 $179,680 $199,107 Playbooks $3,232 $3,393 $3,563 $3,741 $3,928 $4,125 $4,331 $4,548 $4,775 $5,014 $5,264 $5,528 Videos $7,191 $7,551 $7,928 $8,324 $8,741 $9,178 $9,637 $10,118 $10,624 $11,156 $11,713 $12,299 Player/Team Camps $0 $0 $0 $0 $180,000 $210,000 $210,000 $0 $0 $0 $0 $0 Coaches Clinics $0 $0 $0 $15,000 $15,000 $15,000 $15,000 $15,000 $0 $0 $0 $0 Personal Training $2,880 $3,024 $3,175 $3,334 $3,501 $3,676 $3,859 $4,052 $4,255 $4,468 $4,691 $4,926 Affiliate Ads $720 $756 $794 $833 $875 $919 $965 $1,013 $1,064 $1,117 $1,173 $1,231 Sponsorships $0 $0 $0 $0 $3,500 $4,500 $4,500 $0 $0 $0 $0 $0 Coaches Consulting $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 Total Revenue $17,523 $35,666 $53,844 $87,103 $288,987 $338,543 $357,317 $161,854 $166,202 $185,909 $206,022 $226,591 Direct Unit Cost Playbooks $0.90 $0.90 $0.90 $0.90 $0.90 $0.90 $0.90 $0.90 $0.90 $0.90 $0.90 $0.90 Videos $4.80 $4.80 $4.80 $4.80 $4.80 $4.80 $4.80 $4.80 $4.80 $4.80 $4.80 $4.80 Player/Team Camps $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 Coaches Clinics $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 $6,000.00 Personal Training $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 $75.00 Direct Cost of Revenue Playbooks $146 $153 $161 $169 $177 $186 $195 $205 $215 $226 $237 $249 Videos $864 $907 $953 $1,000 $1,050 $1,103 $1,158 $1,216 $1,277 $1,340 $1,407 $1,478 Player/Team Camps $0 $0 $0 $0 $36,000 $42,000 $42,000 $0 $0 $0 $0 $0 Coaches Clinics $0 $0 $0 $6,000 $6,000 $6,000 $6,000 $6,000 $0 $0 $0 $0 Personal Training $900 $945 $992 $1,042 $1,094 $1,149 $1,206 $1,266 $1,330 $1,396 $1,466 $1,539 Subtotal Cost of Revenue $1,910 $2,005 $2,106 $8,211 $44,321 $50,437 $50,559 $8,687 $2,822 $2,963 $3,111 $3,266 28 CONFIDENTIAL – Do Not Distribute Without Permission
  • 30. Year 1 Personnel Forecast Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Personnel Count President 1 1 1 1 1 1 1 1 1 1 1 1 Vice President 1 1 1 1 1 1 1 1 1 1 1 1 Camp Coordinator 1 1 1 1 1 1 1 1 1 1 1 1 Web Master 1 1 1 1 1 1 1 1 1 1 1 1 Admin Support 2 2 2 2 2 2 2 2 2 2 2 2 Total Personnel 6 6 6 6 6 6 6 6 6 6 6 6 Personnel Wage President $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Vice President $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 Camp Coordinator $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 Web Master $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 Admin Support $2,667 $2,667 $2,667 $2,667 $2,667 $2,667 $2,667 $2,667 $2,667 $2,667 $2,667 $2,667 Personnel Costs President $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 $10,000 Vice President $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 $7,083 Camp Coordinator $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 Web Master $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 Admin Support $5,333 $5,333 $5,333 $5,333 $5,333 $5,333 $5,333 $5,333 $5,333 $5,333 $5,333 $5,333 Total Payroll $30,750 $30,750 $30,750 $30,750 $30,750 $30,750 $30,750 $30,750 $30,750 $30,750 $30,750 $30,750 29 CONFIDENTIAL – Do Not Distribute Without Permission
  • 31. Year 1 Profit & Loss Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Revenue $17,523 $35,666 $53,844 $87,103 $288,987 $338,543 $357,317 $161,854 $166,202 $185,909 $206,022 $226,591 Subtotal Cost of Revenue $1,910 $2,005 $2,106 $8,211 $44,321 $50,437 $50,559 $8,687 $2,822 $2,963 $3,111 $3,266 Merchant Fees $876 $1,783 $2,692 $4,355 $14,449 $16,927 $17,866 $8,093 $8,310 $9,295 $10,301 $11,330 Total Cost of Revenue $2,786 $3,789 $4,798 $12,566 $58,771 $67,365 $68,425 $16,780 $11,132 $12,258 $13,412 $14,596 Gross Margin $14,737 $31,877 $49,046 $74,537 $230,217 $271,179 $288,892 $145,074 $155,070 $173,651 $192,610 $211,995 Gross Margin/Revenue 84.10% 89.38% 91.09% 85.57% 79.66% 80.10% 80.85% 89.63% 93.30% 93.41% 93.49% 93.56% Expenses Travel $0 $0 $0 $5,000 $5,000 $5,000 $5,000 $5,000 $0 $0 $0 $0 Rent $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 Insurance $490 $490 $490 $490 $490 $490 $490 $490 $490 $490 $490 $490 Utilities $560 $560 $560 $560 $560 $560 $560 $560 $560 $560 $560 $560 Marketing/Promotion $7,885 $16,050 $24,230 $39,196 $130,044 $152,344 $160,793 $72,834 $74,791 $83,659 $92,710 $101,966 Camp Supplies $0 $0 $0 $0 $5,667 $5,667 $5,667 $0 $0 $0 $0 $0 Contractors $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 Office Supplies $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 $350 Video Production $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other /Misc $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 Depreciation $217 $217 $217 $217 $217 $217 $217 $217 $217 $217 $217 $217 Payroll Taxes $4,613 $4,613 $4,613 $4,613 $4,613 $4,613 $4,613 $4,613 $4,613 $4,613 $4,613 $4,613 Total Personnel $30,750 $30,750 $30,750 $30,750 $30,750 $30,750 $30,750 $30,750 $30,750 $30,750 $30,750 $30,750 Total Op. Expenses $56,864 $65,029 $73,209 $93,175 $189,690 $211,990 $220,438 $126,814 $123,770 $132,638 $141,689 $150,945 Profit Before Int. and Tax ($42,128) ($33,151) ($24,163) ($18,639) $40,526 $59,188 $68,453 $18,261 $31,300 $41,012 $50,921 $61,050 EBITDA ($41,911) ($32,935) ($23,946) ($18,422) $40,743 $59,405 $68,670 $18,477 $31,517 $41,229 $51,138 $61,267 Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Net Profit ($42,128) ($33,151) ($24,163) ($18,639) $40,526 $59,188 $68,453 $18,261 $31,300 $41,012 $50,921 $61,050 Net Profit/Revenue -240.41% -92.95% -44.87% -21.40% 14.02% 17.48% 19.16% 11.28% 18.83% 22.06% 24.72% 26.94% 30 CONFIDENTIAL – Do Not Distribute Without Permission
  • 32. Year 1 Cash Flow Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Cash Received Revenue $17,523 $35,666 $53,844 $87,103 $288,987 $338,543 $357,317 $161,854 $166,202 $185,909 $206,022 $226,591 New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sale of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sale of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Cash Received $17,523 $35,666 $53,844 $87,103 $288,987 $338,543 $357,317 $161,854 $166,202 $185,909 $206,022 $226,591 Expenditures Expenditures from Operations Cash Spending $30,750 $30,750 $30,750 $30,750 $30,750 $30,750 $30,750 $30,750 $30,750 $30,750 $30,750 $30,750 Bill Payments $956 $28,989 $38,157 $47,965 $79,532 $218,524 $248,705 $253,055 $112,337 $104,268 $114,270 $124,482 Subtotal Spent on Operations $31,706 $59,739 $68,907 $78,715 $110,282 $249,274 $279,455 $283,805 $143,087 $135,018 $145,020 $155,232 Additional Cash Spent Current Borrowing Repay. $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 L-T Liabilities Principal Repay. $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Purchase Inventory $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Cash Spent $31,706 $59,739 $68,907 $78,715 $110,282 $249,274 $279,455 $283,805 $143,087 $135,018 $145,020 $155,232 Net Cash Flow ($14,183) ($24,073) ($15,063) $8,388 $178,705 $89,269 $77,862 ($121,950) $23,115 $50,890 $61,002 $71,359 Cash Balance $111,417 $87,344 $72,281 $80,669 $259,374 $348,643 $426,505 $304,555 $327,670 $378,560 $439,562 $510,921 31 CONFIDENTIAL – Do Not Distribute Without Permission
  • 33. Year 1 Balance Sheet Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Current Assets Cash $111,417 $87,344 $72,281 $80,669 $259,374 $348,643 $426,505 $304,555 $327,670 $378,560 $439,562 $510,921 Inventory $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 Total Current Assets $112,917 $88,844 $73,781 $82,169 $260,874 $350,143 $428,005 $306,055 $329,170 $380,060 $441,062 $512,421 Long-term Assets $39,000 $39,000 $39,000 $39,000 $39,000 $39,000 $39,000 $39,000 $39,000 $39,000 $39,000 $39,000 Accum. Depreciation $217 $433 $650 $867 $1,083 $1,300 $1,517 $1,733 $1,950 $2,167 $2,383 $2,600 Total Long-term Assets $38,783 $38,567 $38,350 $38,133 $37,917 $37,700 $37,483 $37,267 $37,050 $36,833 $36,617 $36,400 Total Assets $151,700 $127,410 $112,131 $120,302 $298,791 $387,843 $465,488 $343,321 $366,220 $416,893 $477,679 $548,821 Current Liabilities Accounts Payable $27,728 $36,589 $45,472 $72,282 $210,244 $240,109 $249,300 $108,873 $100,471 $110,132 $119,997 $130,089 Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Current Liabilities $27,728 $36,589 $45,472 $72,282 $210,244 $240,109 $249,300 $108,873 $100,471 $110,132 $119,997 $130,089 Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Total Liabilities $27,728 $36,589 $45,472 $72,282 $210,244 $240,109 $249,300 $108,873 $100,471 $110,132 $119,997 $130,089 Paid-in Capital $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 Retained Earnings ($133,900) ($133,900) ($133,900) ($133,900) ($133,900) ($133,900) ($133,900) ($133,900) ($133,900) ($133,900) ($133,900) ($133,900) Current Retained Earnings ($42,128) ($75,279) ($99,442) ($118,080) ($77,554) ($18,365) $50,088 $68,349 $99,649 $140,661 $191,582 $252,632 Total Capital $123,972 $90,821 $66,658 $48,020 $88,546 $147,735 $216,188 $234,449 $265,749 $306,761 $357,682 $418,732 Total Liabilities and Capital $151,700 $127,410 $112,131 $120,302 $298,791 $387,843 $465,488 $343,321 $366,220 $416,893 $477,679 $548,821 Net Worth $123,972 $90,821 $66,658 $48,020 $88,546 $147,735 $216,188 $234,449 $265,749 $306,761 $357,682 $418,732 32 CONFIDENTIAL – Do Not Distribute Without Permission