3. PRESENTATION AGENDA
Business Concept
Company Mission
Investor opportunities
Market Assessment
Marketing Plan
Operations Plan
Financial Plan
Exit Strategy
4. BUSINESS CONCEPT OVERVIEW
With competitors outdoing others year after year, FitnessConnect
aims to build a commitment level within the target market; a level
that makes it even easier to commit to. Our idea, in its entirety, is
to provide a revolutionary Live In-home workout system
broadcasted straight from a home-based gym. This will provide
the flexibility to maintain a workout schedule no matter life’s daily
challenges. For those who are onsite, FitnessConnect offers free
health assessments and guides to healthy eating in addition to
expected services and amenities. No matter what life’s daily
challenges throw, FitnessConnect offers solutions to keep you on
track to a healthier you.
5. MISSION STATEMENT
“DELIVER A HIGHER QUALITY OF LIFE TO OUR CLIENTS BY
OFFERING A DISTINCT STYLE OF FITNESS TRAINING”
SLOGAN
“COMMIT TO BE FIT”
7. INVESTMENT PROPOSAL
A steady return on investment
An excellent management team
A solid business plan
Anticipated 41% ROI by the end of year 5
10. MARKET SIZE & TRENDS
Burbank Population – 104,391 (U.S. Census )
Media Center : Warner Bros. Entertainment, Warner Music
Group, NBC Universal, The Walt Disney Company, ABC,
Cartoon Network, Nickelodeon, Cookie Jar Entertainment,
New Wave Entertainment, and Insomniac Games.
People who don’t mind spending more on convenience.
11. Population aged between 18-50 years old
Based on lifestyle & interests
PRIMARY MARKET
SECONDARY MARKET
Population over 51 years old
Education, income etc.
TARGETED MARKET
15. INDUSTRY DATA
YEAR REVENUE $ MILLION GROWTH %
2015 $ 27,339.2 3.1 %
2016 $ 28,225.2 3.2 %
2017 $ 29,014.0 2.8 %
2018 $ 29,913.4 3.1 %
2019 $ 30,511.7 2.0 %
16. REGULATORY REVIEW
Industry’s regulation-light
NBFE- National Board of Fitness Examiners:
1. Define and address scope of practice for fitness
professionals
2. Determine the standards of practice
17. COMPETITIVE ANALYSIS
In Burbank area - there are about 39 gym business focusing on
regular fitness programs
Three major competitors: LA|FITNESS , 24 HOUR FITNESS
AND EQUINOX
FitnessConnect – top of the line equipment, certified trainers,
excellent customer service
19. SWOT Analysis
INTERNAL
STRENGTHS WEAKNESSES
Certified personal trainers and dietician
Top of the line equipment
Highest quality of service
Accessibility for everybody
Strong management team
Specialized fitness plans
No established customer base
Unknown brand name
First business venture
Limited startup costs
EXTERNAL
OPPORTUNITIES THREATS
Growing market
Group training
Internet, social media
Targeting new demographics
Outdoor activities
Wide spread competition
Equipment maintenance
Local and federal regulations
Insurance costs
Consumer confidence
20. SURVEY QUESTIONS AND RESULTS
100 People Surveyed
1. What age group do you fall under?
a. 18 to 35 years old
b. 36 to 50 years old
c. 51 years and up
Answers: 48 % (A) // 33% (B) // 19 % (C)
2. How often do you go to the gym?
a. 1 time per week
b. 2-3 times per week
c. 5+ times per week
Answers: 57 % (A) // 21% (B) // 22 % (C)
3. Why do you go to the gym?
a. Lifestyle
b. Weight Loss
c. Health Improvement
d. Social Environment
Answers: 37 % (A) // 8 % (B) // 12 % (C) //43 % (D)
21. SURVEY QUESTIONS AND RESULTS
100 People Surveyed
4. What are your preferred hours to visit the gym?
a.5 AM – 12 PM
b.12 PM – 6 PM
c.6 PM – 12 AM
Answers: 37% (5AM-12PM) // 5 % (12PM-6PM) // 48 % (6PM-12AM)
5. What is your preferred length of membership contract?
a. Month to Month
b. Semi-Annual Basis
c. Annual Basis
d. Not at all
Answers: 32 % (A) // 53 % (B) // 12 % (C) // 3% (D)
6. How likely would you pay extra for the convenience of an in house workout
service?
a. Very
b. Somewhat
c. Not very
d. Not at all
Answers: 42% (A) // 35 % (B) //14% (C) // 9 % (D)
23. MARKETING MIX
• Innovative live
In-Home
Fitness and
Gym
Product
• Membership
starting at
$24.99/month
Price
• Burbank,
California
• Direct Sales,
advertising
and Word of
Mouth
Place Promotion
24. MARKET NEED & PRODUCT EXCLUSIVITY
Market Need
• People of Burbank are in need of extra
time to work out.
Product Exclusivity
• Live In-Home Workout
25. MARKETING STRATEGY
Focuses on the following:
• Elite Program
• Increase Customer Base
• Lifestyle Change
• Target Market and Increase Market
26. PRICING STRATEGY
Value Pricing
• Low Basic Membership to draw
in the masses
• In-Home flexibility
• More visits from personal
trainers for same price.
28. MARKETING BUDGET
Where the $16,512 is spent
Brochures/ Flyers
Signs Billboards
Local News Papers
Online
Maintenance
Hosting
1st Year Advertising Plan
32. • 601 Glenoaks Blvd unit # 400 Burbank CA 91502
• Class A office space : 4500SF
• Rental rate: $8,550.00/Month
• 8 Work stations for workout
• Kids area
• Group Fitness Studio
• Fitness Channels provided by Direct TV
• Security System
• Hours of Operation:
• Monday – Friday 5:00 AM to 11:00 PM
• Saturday 6:00 AM to 9:00 PM
• Sunday 7:00 AM to 8:00 PM
45. FINANCIAL ASSUMPTIONS
Sales
• Upon opening, FitnessConnect will have 4 membership
levels
• We expect to fall inline with the industry growth
expectations of 3%
Financial
• In order to have FitnessConnect ready for business, our
startup costs will be $325,000
46. START UP FUNDING
$0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000
DUES - IHRSA
LEASE
CERTIFIED TRAINING FOR EMERGANCIES
RENOVATION
GYM EQUIPMENT
PERSONAL TRAINER CERTIFICATION - NASM
BUSINESS FURNITURE
1ST. YEAR'S SALARIES & WAGES
COMPUTERS AND INFORMATION TECH
TOTAL EXPENSES
$550
$8,550
$1,200
$20,000
$85,000
$3,000
$20,000
$171,840
$15,000
$325,140
STARTUP COSTS - FITNESSCONNECT
52. VALUATION
Gordon Model Approach
• At the end of year five, the business is projected to have
a value over $4.8 million dollars.
Asset Valuation Approach
• Under the Asset Valuation approach, business value at
the end of year five is $1.9 million dollars.
53. TERMS OF PAYBACK
For the investor: The management team has projected that at
the end of year 5, a return on investment of 41%
In the below chart will also show other key ratios for the first 5
years.
Key Ratios
Year 1 (2015-2016)
Working
Capital Current Ratio Quick Ratio
Cash
Turnover
Debt to
Equity
Return on
Investment
Return on
Sales
Return on
Assets
1st Quarter $481,547 N.A. N.A. 0.16 0.00 -30% -179% -30%
2nd Quarter $476,224 N.A. N.A. 0.18 0.00 -1% -7% -1%
3rd Quarter $477,471 2,612.82 2,612.82 0.20 0.00 0% 0% 0%
4th Quarter $453,349 N.A. N.A. 0.24 0.00 3% 13% 3%
Year 2 (2016-2017) $529,338 13.28 13.28 1.18 0.07 24% 25% 22%
Year 3 (2017-2018) $676,088 6.98 6.98 1.28 0.14 31% 29% 27%
Year 4 (2018-2019) $938,383 5.14 5.14 1.13 0.21 38% 38% 32%
Year 5 (2019-2020) $1,349,900 4.41 4.41 0.95 0.27 41% 47% 32%
54. EXIT STRATEGY
We offer you a choice at the end of year five:
• We can provide a cash buyout of your investment with a
30%plus over principal along with your end of year annual
investment interest payment.
• The second choice is to bring you onboard as a silent
partner as we would gear up to open a second location in
the Southern California area.