Business Plan Competition December 6-7, Prison Entrepreneurship Program P.O. Box Houston, TX (832)

Transcription

1 Business Plan Competition December 6-7, 2018 Prison Entrepreneurship Program P.O. Box Houston, TX (832)

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3 You Fit You Fit crossfit training you desire to fit you Business Plan December 2018 Owner & Founder

4 TABLE OF CONTENTS EXECUTIVE SUMMARY...1 PERSONAL FIT...2 OPPORTUNITY...2 SOLUTION...3 CUSTOMERS...3 DIFFERENTIATORS...6 EXTRAS...7 MARKETING...7 FINANCIAL PROJECTIONS... ATTACHED

5 EXECUTIVE SUMMARY Opportunity Purpose Solution A self-service cross-training app; a 24/7 gym and personal trainer and nutritionist. The opportunity I see here is a self-service fitness is highly on the rise. I d like to be a part of it making fitness routines more convenient. My solution is to provide a phone app that covers fitness plans that will equip the customer with knowledge nutrition facts to fit their fitness plan routines, also a schedule designed and created by customers themselves. Customers Differentiators Extras My target customers are single parents, busy people, people who love to travel, and people who are too shy for a gym or a trainer. Most fitness apps fail because people get bored. I will provide choices of different workout plans. I also will provide nutritional catalogs to fit the fitness plan the users chose. I am young and determined. I have two years experience in both being trained, as well as being a trainer. I am a current facilitator and group trainer for a prison fitness program called Health and Wellness. Marketing Start-up Costs Financials & Extras I will market my business through advertisements such as social media platforms and other apps to reach business men and women who are too busy to go to the gym. Owner Inv. - (Cash) $ 16,000 Owner Investment (Equipment) $ - Vehicle/equipment Loan $ - Unsecured Debt/Loan $ 5,000 Equity Investment $ - Total start up costs: $ 21,000 Plan Purpose: Start Up Sales: $ 86, % COGS 17,900 21% Gross profit 68,900 79% Overhead 8,200 9% Pretax income 60,600 70% Tax expense 15,100 17% Owner withdrawals 19,800 23% Net income $ 25,600 29% Personal Fit I believe every person deserves to live long lives. However, long lives aren t bought or given. We only get one life so it s up to us to take care of our bodies to live longer healthier lives. My passion is to help people achieve their goals and establish new ones.

6 PERSONAL FIT Gabriel is the proud owner and founder of You Fit Cross Training program. Gabriel holds the responsibilities for the company s finances, sales marketing, fitness training, and promotion of your personal fitness. While incarcerated since the age of 17, Gabriel gained valuable skills through interacting with others and overcoming personal situations. Gabriel volunteered as a facilitator for a prison fitness program named Health and Wellness. He now possesses two years of experience in both being trained and being a trainer. Gabriel received his G.E.D. January 10, 2018, along with a certificate from the Conduits Career Planning program. In addition, Gabriel received a certificate of completion from the Quest for Authentic Manhood program. OPPORTUNITY Explanation: Self-service is on the rise. There are apps for everything. People need a personal trainer app on their phone. Can I solve the problem given my skills and personality? Having a personal trainer right off your phone will save people time going to a gym and save money instead of paying a trainer to come to you. Is the customer looking for a more holistic solution than his or her immediate complaint? Just savings on time and money. Do I need to do all of the work myself or can I hire others to help me and still maintain quality? Both. I can hire others to help but I can pretty much do it all myself. Is there growth potential to expand my business, or is this a dying market? It s a new market that is rapidly growing. Technology is a big thing right now. How soon can I get my business up and running? It will take at least one year for sure to get certified so I d say at least 1 years before getting it up and running. Is this something that will take a lot of cash to get started or is it more of a question of hustle? The only thing taking up a lot of cash is the app developer, which will cost $15,000, or I can teach myself to develop and create my app. Is this something I would be proud to share with my family and parole officer? Yes, because there are very few positive ideas I have ever come up with. Is the opportunity (Activity and Start Date) consistent with potential parole restrictions? Yes, because I have made parole I get out in February. Would my business start as a part-time venture or need to be full time? Full-time, because I would have to keep up to date with customers. You Fit 2

7 SOLUTION Explanation: I will save people time and money by providing a 24/7 personal trainer experience in an app. Is what I am offering filling the customer s real need? Yes, time is important as well as health and wellbeing. What are the benefits (not features) that I am providing? Nutrition facts and personal fitness routines to fit customers needs to look and feel great. Why can I do this better than another business (competitor)? I give precise information to get accurate results. I will be certified in nutrition when most of my competitors are not because they didn t take the time to get certified. How will I deliver this better idea to my customers? Advertisement, success stories and social media, fitness events, and fitness magazines. Is my delivery (retail store, home service, etc.) consistent with how I will produce the service (one-day delivery, hand-made products, etc.)? Yes, it is an everyday schedule with individual videos and facts on nutrition. Is my solution consistent with my passion for selling? I am very passionate about what I do and being paid to do what I am passionate about is unbelievable. Is the price of my solution equal to or less than the customer s pain? Less than the pain. Personal trainers charge $75 an hour. I charge $10 a month, that s hours for $10-$15. Is the approximate cost of my solution lower than the price? It takes hours of my time, in return I get $10-$15 from each customer. I can make an hour long video and provide that to several different customers. Do I need a fixed location (Storefront) or is this a mobile business? I only need a small office space to help run the app such as three app technicians and someone to answer the phone Do I offer a guaranty or return policy? I guarantee results but only if you guarantee 100% participation. CUSTOMERS Explanation: I will target people who cannot make it to a gym or refuse to hire a personal trainer. I am convenient to those who have time consuming jobs or duties like single parents and business people. Demographics: Will my service have different appeal to men versus women? No, my company applies to both men and women equally. What is my ideal customer s age (children, young adult, middle aged, mature)? You Fit 3

8 Middle age/young adults ages 25-to-35 years old. Does my customer need to be married, single or does it matter? No it does not matter, but it might affect more single moms and single dads. Do language or ethnicity differences improve or limit my ability to sell to my ideal customer? No, language and ethnicity differences do not limit me. What aspect of my ideal customer am I appealing to (outdoors person, health conscious, nerd, their personal image, environmental concerns, recreation, etc.)? My ideal customer is a mix between health conscious and a very busy person, maybe like a single parent or a workaholic. Income: Does my customer need a certain income (rich, middle class, poor)? Does not really matter I m pretty cheap in price. Does my customer need to own specific assets (car, house, boat)? My customer does not need specific assets. Location: Where will I sell to my customers (their home, their workplace, on the street, online, my store, an event like trades day)? I would be linked by a smartphone app so I would sell online, but I ll have an office space as the You Fit headquarters in Austin TX. Do I go to my customer (home service) or does my customer come to me? Neither, my customers just need their phones. What neighborhood will my ideal customer live/work in (River Oaks/Highland park, a suburb, or small rural community)? This doesn t matter they just need their phones. How close are my customers geographically located (live close to each other or spread all over the city)? Time is money. My customers just need their phones. How easily can I find this customer (one at a time or they will provide referrals)? Pretty easy being that everyone has a phone these days. Other: Can I reach these individuals as a group or do I need to find and sell to them individually? I can find them by groups and individually. Once I sell to a customer, what is the likelihood that they will buy from me again? If they get a yearly plan I am sure they will come back. Am I selling to a wholesaler, retailer or does it matter? I am a service I sell to individuals. What industry is my customer in? My customer is in the fitness industry. What size customer do I want to serve (large/small, single/multiple locations)? You Fit 4

9 I will sell in multiple locations online. Will my customer require special insurance (construction bonding, liability insurance)? Yes, Personal trainers insurance. Does my customer require 24/7 service? I provide 24/7 service. Do I have the capacity to meet the customer s demands? I do have the capacity to meet the customers demands. Will the size of a customer allow me to develop other clients or will I be hostage to one company? It s like a fractal effect it just spreads. You Fit 5

10 DIFFERENTIATORS My Competitors Direct or Indirect Jefit Direct App ads 3.99 Or $6.99 Nike training club. Direct Promotion Price Their Advantages Nike store and App ads N/A Price Big name, Nike is well known Their Disadvantages My Differentiators Unreliable results Quality results, personalization, nutrition facts in young and smart for my industry Unreliable results Quality results, personalization, nutrition facts in young and smart for my industry Gold s GYM Indirect Billboards, TV, Radio and Online ads $100 per year Well known business name and variety of trainers Schedule and location. Quality results, personalization and nutrition facts in young and industry 24-hour fitness Indirect Billboards $100 per year Well known Unreliable Quality results personalization and nutrition facts in young and industry Peloton Indirect TV Commercials $125 a month New product Price and Schedule Quality results, personalization and nutrition facts in young and industry You Fit 6

11 EXTRAS External Extras: Do you have a connection with a supplier in your industry? I do not have a supplier. Do you have access to a favorable location for your business? Yes, Austin TX will be where my office will be. Are you going to be the first company of your type in your chosen area operations? I do not know my area yet. Internal Extras: Do you have a new or cutting edge concept? I do, I provide a nutritional catalog to correctly match the fitness plan. Will you be able to offer specialized or flexible scheduling that your competitors cannot match initially? Yes, that is part of my competitive advantage. Are you an especially charming or personable person? I am a charming and personable person. MARKETING Message: What are three things your company name (with no other information provided) says about your company? You Fit says it s all about fitness, a fitness plan to fit you. What is your tagline? You fit Cross-training designed to fit you. How does your name and tagline make you different than your competitors? I design and modify cross fit training for each specific customer. Can your message be effectively conveyed through multiple types of media? My message can be conveyed through many types of media. Is your message effective across different demographics? My message will reach across many different demographics. Is your pricing consistent with the market for similar offerings? You Fit will be competitively priced with the rest of the fitness market. Is your pricing consistent with the degree of personalization? Pricing will be consistent with the current market. Media: What are three types of media you will use to reach your customers? I will reach my customers through ads on other apps, social media, and fliers. How many potential typical customers (not just total people) can you reach each month using the types listed above? I would estimate 100-to-175 customers a month. You Fit 7

12 Once you ve reached your typical customer, how many will actually buy from you? I would estimate at least three to five. For each of the three, what do you think the estimated cost will be? Social media-$10, apps-$5.95, fliers-$10. For each cost estimate, is this a one-time expense up front or a recurring monthly charge? It is a recurring monthly cost. How will you collect customer reviews? Through my app I will offer app ratings and comments for improvements. You Fit 8

13 START-UP COST Owner's name Company name Industry You Fit "Cross Training Program" Fitness Start-up Costs Year 1 Assumption 4 - Total Uses Paid or Non-Depreciable Costs contributed in 1 marketing, business cards, fliers 800 cell phone purchase 30 car/truck down payment, if leased permits supplies, office & misc. T-shirts 500 NASM certification 600 Nutritional certification 200 Cash needed for start-up expenses 2,130 Depreciable Costs Paid or contributed in 1 Equipment Financing (Additional to amount paid) Depreciable Assets company car, truck or van - company trailer - computer, printer, fax Video camera, video equipment 1,200 1,200 App Developer and programer 15,000 15,000 - building/office deposit N/A N/A beginning cash balance 2,000 N/A N/A Cash needed for start-up assets 18,700-16, assumed life (months) 278 monthly depreciation Total start up cost 20,830 Assumption 5 - Total Sources Cash owner will contribute to the company 16,000 76% Value of owner's assets contributed to company 0% Vehicle loan and other equipment debt (see note 7 for financing) - 0% Unsecured debt, if applicable (for example Kiva loan) 5,000 24% Outside equity investment, if applicable 0% Total start up cost, total sources 21, %

14 FINANCIALS dba You Fit "Cross Training Program" EOU, Financing, and Payroll Assumptions Year 1 Assumption 6 - Revenue Model (Economics of One Unit) Product 1 Product 2 Product 3 Product name Product description One Contract One hour workout plus nutrition 6- Contract One hour workout sessions per day, nutitional Annual Contract One year contract counsling and information, one Youfit T-shirt, 2 stickers landyard Price per unit % % % Cost of one unit hours rate hours rate hours rate Non-owner payroll exp. - 0% - 0% - 0% Non-owner payroll tax 9.0% - 0% - 0% - 0% cost 1 description 0% Youfit T-shirt, 2 strikers l % 2 Youfit T-shirts, Landyards % cost 2 description 0% 0% 0% cost 3 description 0% 0% 0% cost 4 description 0% 0% 0% Total variable costs - 0% % % Income statement gross profit per unit % % % hours rate hours rate hours rate Owner's labor charge - 0% - 0% - 0% Pro forma gross profit % % % Start-up Total Year One Contract sold , Contract sold Annual Contract sold total revenue $ 1,775 $ 2,550 $ 4,025 $ 5,250 $ 6,475 $ 7,950 $ 9,700 $ 11,175 $ 12,650 $ 12,650 $ 12,650 $ 86,850 total cost of sales $ 125 $ 250 $ 600 $ 950 $ 1,300 $ 1,650 $ 2,125 $ 2,475 $ 2,825 $ 2,825 $ 2,825 $ 17,950 total income statement gross profit (excludes owner labor) $ 1,650 $ 2,300 $ 3,425 $ 4,300 $ 5,175 $ 6,300 $ 7,575 $ 8,700 $ 9,825 $ 9,825 $ 9,825 $ 68,900 Owner's labor hours (time spent directly related to sales) Assumption 7 - Financing Total Year Equipment financing, see Start-up Costs sheet amortization schedule Amount borrowed $ - principal, beginning Interest rate interest expense Loan term (months) 36 principal payment ly payment - principal, ending Start-up financing, see Start-up Costs sheet Amount borrowed $ 5,000 principal, beginning 5,000 4,792 4,583 4,375 4,167 3,958 3,750 3,542 3,333 3,125 2,917 Interest rate 0.0% interest expense Payback period (months) 24 principal payment (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) (2,292) Grace period (months) - principal, ending 4,792 4,583 4,375 4,167 3,958 3,750 3,542 3,333 3,125 2,917 2,708 ly payment $ 208 Assumption 8 - Payroll, nondirect Total Year # of employees avg hours each employee(s) worked per month, not in EOU above average per hour wage salary expense, exclduing payroll taxes Assumption 9 - Equipment Purchases, after start-up Description Total Year

15 dba You Fit "Cross Training Program" Projected Income and Cash Flow Statements Year 1 Assumptions Start-up First Year % of Total Revenue Revenue 2 One Contract 6-1,500 2,000 2,500 2,750 3,000 3,500 4,000 4,500 5,000 5,000 5,000 38,750 45% 6- Contract ,100 1,375 1,650 2,200 2,475 2,750 2,750 2,750 18,700 22% Annual Contract ,400 2,100 2,800 3,500 4,200 4,900 4,900 4,900 29,400 34% Total revenue - 1,775 2,550 4,025 5,250 6,475 7,950 9,700 11,175 12,650 12,650 12,650 86, % Cost of Goods Sold 2 One Contract % 6- Contract ,000 1,125 1,250 1,250 1,250 8,500 10% Annual Contract ,125 1,350 1,575 1,575 1,575 9,450 11% Total COGS ,300 1,650 2,125 2,475 2,825 2,825 2,825 17,950 21% Gross profit - 1,650 2,300 3,425 4,300 5,175 6,300 7,575 8,700 9,825 9,825 9,825 68,900 79% Expenses 2 Auto or truck lease - - 0% Depreciation ,062 4% Gasoline & fuels - - 0% Insurance - bonding ,000 1% Insurance - vehicle - - 0% Interest - equip & start up % Marketing ,350 2% Office - rent % Office - insurance % Office - telephone - - 0% Office - utilities - - 0% Payroll - not owner and not in % COGS Payroll taxes (9%) 6 & % Permits - - 0% Supplies - - 0% Tax service - - 0% Telephone - cellular % Start-up expenses 1, ,300 1% - - 0% - - 0% - - 0% - - 0% - - 0% - - 0% - - 0% Total expenses 2, ,242 9% Taxable profit (loss) 1 (2,130) 872 1,872 2,997 3,522 4,747 5,872 6,797 8,272 9,147 9,297 9,397 60,658 70% Tax (expense) benefit 1 (153) (2,816) (5,235) (6,960) (15,165) -17% Owner's withdrawals 1 - (1,800) (1,800) (1,800) (1,800) (1,800) (1,800) (1,800) (1,800) (1,800) (1,800) (1,800) (19,800) -23% Net profit (loss) (2,130) (928) (82) 1,197 1, ,072 4,997 1,237 7,347 7, ,694 30% Depreciation ,062 Equipment purchases 3 (16,700) (16,700) Principle, equipment loan Repay debt financing 7 5,000 (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) (208) 2,708 Owner contribution 3 16, ,000 Equity investor Net cash flow 2,170 (858) (12) 1,267 1, ,142 5,067 1,307 7,417 7, ,764 Cash, period start - 2,170 1,312 1,300 2,567 4,358 4,559 8,700 13,767 15,074 22,490 30,057 - Cash, period end 2,170 1,312 1,300 2,567 4,358 4,559 8,700 13,767 15,074 22,490 30,057 30,764 30,764 The accompanying assumptions are an integral part of this financial statement.