Fit N Share Business Plan

Confidential Information
Business Plan - Dated December-2013
Koc Universitesi, Istanbul – TURKEY
For more information please contact us at info@fitnshare.com
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Year 1 Year 2 Year 3 Year 4 Year 5
Revenues 131,250 TL 500,679 TL 625,848 TL 719,725 TL 791,697 TL
Expenses 92,685 TL 263,943 TL 329,928 TL 379,417 TL 417,358 TL
Net Profit 38,565 TL 236,736 TL 295,920 TL 340,308 TL 374,339 TL
Head Count 3 3 3 3 3

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1 MISSION STATEMENT..............................................................................................................................4
2 MOBILE APPLICATION MARKET OVERVIEW ........................................................................................4
2.1 UNDERSTANDING THE MOBILE APPLICATION MARKET..........................................................................................4
2.2 FITNESS MARKET HIGHLIGHTS........................................................................................................................................4
2.3 MOBILE FITNESS APPLICATION STRUCTURE&COMPETITION .................................................................................5
3 THE OPPORTUNITY..................................................................................................................................6
4 COMPANY AND PRODUCT DESCRIPTION.............................................................................................7
4.1 THE FITNSHARE CONCEPT.................................................................................................................................................7
4.2 COMPETATIVE ADVANTAGE ..........................................................................................................................................13
4.3 OUR STRATEGY ..................................................................................................................................................................13
5 MARKETING PLAN..................................................................................................................................15
5.1 UNDERSTANDING THE CUSTOMER:..............................................................................................................................16
5.2 TARGET CUSTOMER PROFILE.........................................................................................................................................16
5.3 PRICING STRATEGY...........................................................................................................................................................17
5.4 DISTRIBUTION STRATEGY...............................................................................................................................................17
5.5 COMMUNICATION STRATEGY - YEAR 1 .......................................................................................................................17
6 THE TEAM................................................................................................................................................19
7 OPERATION'S STARTEGY.....................................................................................................................20
8 CRITICAL RISKS .....................................................................................................................................21
9 FINANCIAL PLAN ...................................................................................................................................22
9.1 BASELINE PROFORMA FINANCIALS..............................................................................................................................22
9.2 MORE USERS........................................................................................................................................................................23
9.3 BETTER CASH CONVERSION CYCLE .............................................................................................................................24
10 BUSINESS MODEL CANVAS..................................................................................................................25

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“Mobile Application
market is one of the
fastest growing markets
in the world with a $20.4
billion value.”
1 Mission Statement
“FitNShare is a fitness-based social networking mobile application.
Our goal is to introduce a new way of fitness experience. Our
application will strengthen the bonds between individuals of fitness
community.”
2 Mobile Application Market Overview
2.1 Understanding the Mobile Application Market
Mobile Application market is one of the fastest growing markets.
There are currently 2.9 million users in market. Its expected growth is
55~ %.
Global mobile application market has a size of 20.4 billion USD.
There are currently 1.2 billion of users in the market worldwide and in
addition to that expected growth is 29.8% per year.
2.2 Fitness Market Highlights
In Turkey there are 600.000~ of people who are interested in fitness.
There are 1340 fitness centers and 420.000 members. Its expected
growth is 5~% per year.
Globally there are 150~ millions of people who are interested in
fitness. There are 50.000~ fitness centers and 120 million~ members.
Its expected growth is 10%~ per year.
“FitNShare will introduce a
new way of fitness
experience.”

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“In 2018 Mobile Fitness
Application market size
will be $246 million.”
2.3 Mobile Fitness Application Structure & Competition
Mobile fitness application is a $151 million market. In 5 years with a
growth of 63% in 2018 the market size will be $246 million. There
isn’t any mobile application, which is developed in Turkey.
However there are some competitors globally. They are;
Lose it!: It helps user to set a daily calorie budget, track your food
and exercise, and to make smarter choices in order to lose weight.
Currently there are 18 million users.
Calorie Counter: It is a calorie counter and with a large food
database that has over 3,000,000 foods. Also gives nutritional facts
and it suggest exercises according to what user eats. Currently there
are 35 million users.
Nike Training Club: It provides approximately 100 custom-built
workouts and exclusive user content; workouts of famous fitness
trainers like Rihanna’s personal trainer Ary Nuñez and professional
athletes like Hope Solo, Serena Williams and Paula Radcliffe. Also it
has interaction with NikeFuel band and calorie data. Currently it has
3.6 million users.
Fitocracy: It is a fitness community that the user tracks workouts,
earns points, unlock achievements, beats quests. It is an mobile
application that motivates user to achieve his/her goals. Currently it
has 2.3 million users.

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“In Turkish market there
isn’t any mobile fitness
application similar to
FitNShare.”
Nexercise: It is a mobile interactive game that user can play with
friends, earn rewards, get support, lose weight by using custom built
exercise. Currently it has 1.9 million users.
Runtastic: It is a mobile application that tracks user’s cardio workout
progress. It offers GPS tracking and voice coaching to users.
Currently it has 3.5 million users.
3 The Opportunity
As seen above there are some few similar mobile fitness applications
comparing to FitNShare. However they are not the same, FitNShare is a
fitness-based social networking mobile application.
Furthermore in Turkish market there isn’t any mobile fitness application
similar to FitNShare. In our opinion it can fill that gap.
In addition to those in high segment fitness centers provide specialized
individual workout plans. But on the other hand mid and low-segmented
fitness centers are not sufficient for building specialized individual
workouts. Our plan is to fill that gap, and introduce fitness community a
new way of working out experience.

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Prototypes designed for FitNShare
4 Company and Product Description
4.1 The FitNShare Concept
First Scene Login Scene

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Splash Scene Menu-Left

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Figure below shows the home scene. In other words, it is the User Feed page. Users are able to see
what people that they follow shared. They can comment, like, or download (premium) these workouts.
Note: the following are pictures are from prototype of FitNShare.
Comment Page User Feed

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Profile Page News Page

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Selecting Workout
Name
Preparing Workout Page
Adding a new workout: Creating and sharing a workout is user’s duty in FitNShare, users not only
create the workout routines for themselves, but they also share, or even send their workouts directly to
other users.

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Determining Set Counts
Determining Workout
Exercises

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4.4 Competitive Advantage
FitNShare application features can be summed up as follows:
• Follower/Following between users
• Like/Comment/Download/Explore workouts
• GymBuddy
• Workout Messaging
• Supplements/Nutrition Charts
4.5 Our Strategy
Our strategy is designed to accomplish four key objectives:
1. Acquire as many users possible
2. Offer precise, individualized workout programs
3. Creating a new fitness community
4. Create revenue stream by premium memberships
“Our key value propositions
are offering users a precise
workout information while
creating a new fitness
community.”
“FitNShare targets
people who would like to
experience a new way of
working out.”

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“Mid and low-segmented
fitness center customers,
need individualized
workout routine &
trustable modern
knowledge.”
Overview:
To penetrate the mobile fitness application market we will need to
target influential customers and develop a strong community. From
this position we will expand our application by acquiring new users.
We will maintain long relationships with our customers by offering
them efficient and quality service. In addition to those advertisements
and premium memberships will provide us revenue.
Market Entry:
FitNShare will first target the mid and low-segmented fitness center
customers because:
•They need an individualized workout routine
• Trustable modern knowledge
We will enter the market with an aggressive marketing plan and aim
to position FitNShare at the top of its segment. There are some
similar applications in current market so our aggressive marketing
would be a precise choice.
Growth Strategy:
FitNShare’s growth strategy is word-of-mouth because it is a
powerful medium in this market. In addition to that aggressive
advertising, customer reviews, social media shares (Facebook &
Twitter) and experiences & feedbacks of known fitness coaches will
be our growth strategy.

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5 Marketing Plan
Overview: We will bring this product to the market by targeting
every-segment customer who is interested in bodybuilding, or
health&fitness. We will reach the customers via social media, viral
marketing, and direct marketing.
5.1 Understanding the Customer
Our primary customers will be the people who are willing to get
helpful information about fitness, health, and bodybuilding, and want
to share it with other people.
According to our research, out initial customers will be the people
interested in technology and mobile apps, and interested in fitness.
We also see the followings as influencers in our product:
• Famous bodybuilders,
• Personal Trainers,
• Fitness Magazines
• Gym Centers
“Our primary customers
will be the people who
are willing to get helpful
information about fitness,
health, and bodybuilding,
and want to share it with
other people.”

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“There are more than
4000 Sports Centers in
Turkey.”
In addition to being influencers, Gym Centers (middle and low
segment) are also secondary customers. The gym centers that cannot
provide high-technology services like smart workout routines,
nutrition charts, or information systems generate almost 90% of the
gym market.
There are nearly more than 600 Sports Centers registered to Ministry
of Youth and Sports in only Istanbul, and more than 4000 in Turkey.
When thinking in terms of their customers, our social networking
application can turn into a service for gym centers because of the
features that our product has.
5.2 Target Customer Profile
The demographics of our primary target customer are:
• Using smartphones.
• Interested in fitness and mobile apps.
• Male and female
• No education constraints
• Firstly the Turkish market, than quickly global.
Additionally these consumers are:
• Willing to share what they create.
• Wanting to learn stuff about fitness.

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5.3 Pricing Strategy
There will be a charge for just premium users. Normal users will be
able to use all features except messaging and download.
• Premium user price: $2.99
5.4 Distribution Strategy
Our product is an online-reachable service, which can be owned from
Apple Store or Google Market.
5.5 Communication Strategy – Year 1
Overview: In the first year our communications strategy will focus
on mostly viral marketing, Word-of-Mouth, public relations, online
and advertising.
Public Relations
Public Relations (PR) will be at the center of our communications
plan. The first phase of this plan is to reach the famous bodybuilders
and personal trainers for our marketing.
Word-of-Mouth
As noted, word-of-mouth is a powerful tool is this market. We will
encourage word-of-mouth by social media.
“Premium users will have
access to GymBuddy &
Direct Messaging”
“Aggressive entry into the
market and top level
positioning aimed for the
first year.”
“Word-of-mouth is a
powerful medium in
this market.”

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“Increasing
awareness by
aggressive
marketing.”
Email and Web
We will use web (http://www.fitandshare.co) to introduce our product
and maybe serve another services about fitness, and use email to
create customer relationships.
Advertising
Our advertising goal will be to increase awareness of FitAndShare in
all customer segments.

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6 The Team
Hakan Balaban: Co-founder and Finance Manager. Senior
Computer Engineering student at Koç University. Has worked as a
treasurer at ACM Student Chapter and mobile developer in projects
like Dealicious, Battleship and Trivial Quiz.
Berk Baydur: Co-founder and IT Manager. Senior Computer
Engineering student at Koç University, Ios and back-end developer.
Previous and current projects are, DOKTR Mobile Application,
Mahalle Futbolu Mobile Game. Completed internships at VeriPark,
and Special Minds 7/24 as software developer.
Ceren Terci: Co-founder and Product Manager. Senior EL&ELC
Engineering student at Koç University. Completed internships at Türk
Telekom & NETAŞ.

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“Cloud hosting,
Server service,
Will be outsourced.”
7.1 Operations Strategy
FitNShare core functions (Precise workout programs & Social
networking) will be the main operational activities performed. All
other operational activities like *cloud hosting, *server service and
*advertisment will be outsourced.
FitNShare is mainly a user-generated application, and its fuel is the
amount of users. The more users it gets, the handier it becomes due to
its features such as GymBuddyTM
. Hence our goal is to spread the
word of FitNShare, and enter the market with an aggressive style of
advertising.
In order to keep the revenue stream flowing, FitNShare offers
Premium Membership giving access to downloadable famous work-
out programs and direct messaging*.
As FitNShare takes its place in the current market, new features will
be introduced such as GymBuddyTM
allowing users to see nearby
users in-app. Patches and improvements will be applied in order to
maximize the efficiency of the application, and user satisfaction.

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8 Critical Risks
• The competitive market – Although our product touches the problem in a
whole different approach, there are numerous fitness applications in the
application market to compete with.
• Copycats – We should create a brand of our product immediately because
an iPhone application can be easily copied. So we should be smart and
have good customer relationships.
• Lawsuits – We should clearly state that we are not responsible for the
data that users generate and the consequences of these.
• Sales lower than expected – In case this happens FitNShare has the
backup plan and have additional features for future of the product.

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1 Beginning Months1-2 Months3-4 Months5-6 Months7-8 Months9-10 Months11-12 Months13-14 Months15-16 Months17-18 Months19-20 Months21-22 Months23-24
2
3 Sales Forecast 2000 5500 15000 30000 37500 46875 58594 73242 91553 114441 143051 178814
4
5 Income Statement
6 Sales Revenue 0 0 0 87000 150000 187500 234375 292968,75 366210,9375 457763,7 572204,5898 715255,7373
7 less: Cost of Goods Sold 0 3250 6500 11000 15000 18750 23437,5 29296,875 36621,09375 45776,37 57220,45898 71525,57373
8 GROSS PROFIT 0 -3250 -6500 76000 135000 168750 210937,5 263671,875 329589,8438 411987,3 514984,1309 643730,1636
9 less: Selling Expenses 15000 17500 20000 34800 60000 75000 93750 117187,5 146484,375 183105,5 228881,8359 286102,2949
10 General and Administrative Expenses 3500 5000 6250 7000 15000 15000 15000 15000 15000 15000 15000 15000 15000
CEO Salary
Staff Salary
SalaryTax & Indurance Burden
Travel
Insurance
Professional Services
Telephones & Utility Bills
Office Equipment
Postage
Office Supplies
11 Depreciation Expense 0 0 0 0 0 0 0 0 0 0 0 0
12 Other Operating Expenses (R&D) 3500 12000 13800 15780 18250 20988 25185 30220 33224 36568 40225 44248 48672
13 Total Operating Expenses 7000 32000 37550 42780 68050 95988 115185 138970 165411,5 198052,375 238330,5 288129,8359 349774,2949
14 OPERATING PROFIT -7000 -32000 -40800 -49280 7950 39012 53565 71967,5 98260,375 131537,4688 173656,8 226854,2949 293955,8687
15 less: Interest and Other Expenses
16 plus: Interest and Other Revenues
17 PRE-TAX INCOME -7000 -32000 -40800 -49280 7950 39012 53565 71967,5 98260,375 131537,4688 173656,8 226854,2949 293955,8687
18 Income Tax 0 0 0 6360 31209,6 42852 57574 78608,3 105229,975 138925,5 181483,4359 235164,6949
19 NET INCOME -7000 -32000 -40800 -49280 1590 7802,4 10713 14393,5 19652,075 26307,49375 34731,37 45370,85898 58791,17373
20
21 Cash Flow Statement
22 Net Income -7000 -32000 -40800 -49280 1590 7802,4 10713 14393,5 19652,075 26307,49375 34731,37 45370,85898 58791,17373
23 Depreciation Expense 0 0 0 0 0 0 0 0 0 0 0 0 0
24 Net Income plus Depreciation Expense -7000 -32000 -40800 -49280 1590 7802,4 10713 14393,5 19652,075 26307,49375 34731,37 45370,85898 58791,17373
25 plus: Increase in Accounts Payable 0 0 0 26100 18900 11250 14062,5 17578,125 21972,65625 27465,82 34332,27539 42915,34424
26 Increase in Other Payables 0 0 0 0 0 0 0 0 0 0 0 0
27 less: Increases in Accounts Receivable 0 0 0 870 630 375 468,75 585,9375 732,421875 915,5273 1144,40918 1430,511475
28 Increase in Inventory 0 0 0 0 0 0 0 0 0 0 0 0
29 OPERATING CASH FLOW -7000 -32000 -40800 -49280 26820 26072,4 21588 27987,25 36644,2625 47547,72813 61281,66 78558,7252 100276,0065
30 plus: Net Cash from Financing Activities
31 less: Net Investment Outlays
32 NET CASH FLOW -7000 -32000 -40800 -49280 26820 26072,4 21588 27987,25 36644,2625 47547,72813 61281,66 78558,7252 100276,0065
33 plus: Beginning Cash 200000 193000 161000 120200 70920 97740 123812,4 145400,4 173387,65 210031,9125 257579,6 318861,3008 397420,026
34 ENDING CASH BALANCE 193000 161000 120200 70920 97740 123812,4 145400,4 173387,65 210031,9125 257579,6406 318861,3 397420,026 497696,0325
35
36 Balance Sheet
37 ASSETS
38 Cash and Equivalents 193000 161000 120200 70920 97740 123812,4 145400,4 173387,65 210031,9125 257579,6406 318861,3 397420,026 497696,0325
39 Accounts Receivable 0 0 0 870 1500 1875 2343,75 2929,6875 3662,109375 4577,637 5722,045898 7152,557373
40 Inventory 0 0 0 0 0 0 0 0 0 0 0 0
41 CURRENT ASSETS 193000 161000 120200 70920 98610 125312,4 147275,4 175731,4 212961,6 261241,75 323438,9 403142,0719 504848,5898
42 Net Fixed Assets 0 0 0 0 0 0 0 0 0 0 0 0 0
43 TOTAL ASSETS 193000 161000 120200 70920 98610 125312,4 147275,4 175731,4 212961,6 261241,75 323438,9 403142,0719 504848,5898
44 LIABILITIES AND EQUITY
45 Accounts Payable 0 0 0 26100 45000 56250 70312,5 87890,625 109863,2813 137329,1 171661,377 214576,7212
46 Notes Payable 0 0 0 0 0 0 0 0 0 0 0 0
47 Wages Payable
48 Taxes Payable
49 Current Portion of Long-Term Debt
50 CURRENT LIABILITIES 0 0 0 0 26100 45000 56250 70312,5 87890,625 109863,2813 137329,1 171661,377 214576,7212
51 Long-Term Debt
52 TOTAL LIABILITIES 0 0 0 0 26100 45000 56250 70312,5 87890,625 109863,2813 137329,1 171661,377 214576,7212
53 Common Stock 93000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000 200000
54 Retained Earnings (Accumulated Deficit) 0 -32000 -72800 -122080 -120490 -112687,6 -101974,6 -87581,1 -67929,025 -41621,53125 -6890,16 38480,69492 97271,86865
55 TOTAL EQUITY 93000 168000 127200 77920 79510 87312,4 98025,4 112418,9 132070,975 158378,4688 193109,8 238480,6949 297271,8687
56 TOTAL LIABILITIES AND EQUITY 93000 168000 127200 77920 105610 132312,4 154275,4 182731,4 219961,6 268241,75 330438,9 410142,0719 511848,5898
Integrated Financial Statement Template
Pro Forma Financial Statements
9 Financial Plan
9.1 Baseline Proforma Financial

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9.2 More Users

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9.2 Better Cash Conversion Cycle

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10 Business Model Canvas

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