Jkm fitness business plan and projections

Just Keep Moving FitnessBusiness Proposal, March 2013

JUST KEEP MOVING™ FITNESS

BUSINESS PROPOSALMarch 2013

Presented by:Tauris McBrideFounder/CEO

[email protected](917) 576-5868

History• JKM Fitness was founded

by Tauris McBride in October 2011

• Tauris lost 150 pounds in one year taking group fitness classes; including martial arts, yoga, dance and gymnastics

• Realizing how hard it was to find a single facility that offered a variety of classes at an affordable price he decided to found JKM Fitness

• He is now on a mission to make fitness fun and affordable for everyone


Currently we have two Manhattan facilities

(1) 50 Lexington Avenue, lower level (corner of 24th Street)

• 1,400 square feet

• Opened January 2012

• Kickboxing, Mixed Martial Arts and Boot Camp Classes; plus personal training

(2) 37 East 28th Street, 2nd Floor(between Park and Madison Avenues)

• 1,300 square feet

• Opened December 2012

• Yoga, Pilates and Dance classes


ServicesNot only do we offer group class in some of today’s most popular activities, such as:

• Yoga: Practiced by 15 million Americans

• Pilates: Practiced by over 8.6 million Americans

• Zumba: A dance-fitness program practiced by 14 million people worldwide

• Boot camp: A high-intensity workout modeled after military-style training

• Kickboxing: over 18 million Americans practice martial arts

• Mixed Martial Arts: Combining techniques from different martial art styles

We have original classes, like:

• Booty Ballet: Ballet basics with a high energy aerobic workout

• Funk-U: A fast, fun, high energy dance party set to funk, disco and pop music

• AAA (Abs, Arms & A**): Designed to target very specific muscle groups

…and affordable Small Group and One-on-One Personal Training


Our revenue has increased over the last few months and we believe that adding a full time sales staff will allow us to increase revenue substantially.

May-12

Jun-12 Jul-

12Aug

-12Se

p-12Oct-

12Nov

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12Jan

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13$0

$2,000 $4,000 $6,000 $8,000

$10,000 $12,000 $14,000 $16,000 $18,000

Historical Revenue May 2012 – February 2013


Month RevenueMay 2012 $10,306 Jun 2012 $6,639 Jul 2012 3,867Aug 2012 $5,884 Sep 2012 $9,976 Oct 2012 $8,872 Nov 2012 $10,785 Dec 2012 $14,146 Jan 2013 $17,326 Feb 2013 $15,249 Mar 2013 $14,871

Revenue Projections for current facilities – 2013, 2014 and 2015Assumptions

• 10% increase in sales per month for 2013 and 5% per month for 2014 and 2015; by converting people who purchased promotions into regular members

• Break even in July of 2013

Expanded projections on pages 18 & 19

Products 2013 2014 2015Promotions 36,000 36,000 36,000

Unlimited Monthly ($80 average) 85,537 190,736 342,535Class Package ($200 average) 85,537 190,736 342,535

Personal Training ($280 average) 59,876 133,515 239,775Single Classes ($10 - $12) 21,384 47,684 85,634

Water/Health Bars/Energy Drinks 10,692 23,842 42,817Total Revenue $299,027 $622,514 1,101,047

Total Expenses $251,604 $480,000 $720,000Profit $47,423 $241,024 $381,047


Why is our business model unique?

• We offer more variety and lower prices than all of our Manhattan based competitors

JKM Alvin Ailey405 W 55th

Barry’s Boot Camp

135 W 20th

Bikram Yoga

182 5th Ave

Bally’s Fitness

139 W 32nd

I Love Kickboxing149 W 27th

Planet Fitness

158 W 27th

Power Pilates

49 w 23rd

Renzo Gracie’s

BJJ222 W 30th

Yoga X XPilates X XCardio

Kickboxing X X

MMA X XDance X X

Boot Camp X XPersonal Training X X

Single Class $10 $17 $32 $26 $15 $20 NAUnlimited

Month$70 - $100 NA NA $159 $35 - $40 $125 -

$149 $10 - 20 $149 – 169 $220 - $300


Marketing StrategyIn April 2012 we began offering 20 classes for $20 to new customers on deal sites like Groupon and Living Social; and have sold over 7,000 deals to date. Our cost for customer acquisition is $10 (deal sites keep 50% of revenue). The primary reasons given for purchasing, beyond the low price, were the variety of classes and Tauris McBride’s inspirational story. This method has proven more effective than traditional advertising, because it guarantees customers attendance. It has also given us a tech savvy customer base which allows us to stay connected via social media.

Target Demographic

• Women, 26 to 35; who live, work or go to school in Manhattan, who are looking to lose weight or get in better shape

• 1.6 million people live in Manhattan and 2.3 million workers commute daily

• Manhattan workers earn more than workers in the outer boroughs

• Women are 72% of yoga practitioners and 85% of Zumba practitioners

• 92% of women pass information about deals they find to others


Customer Retention

• Customers average 2 classes per week and most exhaust their classes in 2 months

• During this time they develop relationships with instructors and other customers

• Not only do our instructors have high credentials and years of experience, they truly believe in our mission; inspiring customers with their passion and commitment to helping others change their lives

• Deal seekers recognize the value JKM offers (variety, quality instructors, low price)

• The majority of our regular sales are to customers who purchased online deals

• We currently add 15 – 25 regular members per month

• Customer retention will increase when we have a full time sales and support staff

Lifetime Value of Customers

Group Classes Personal TrainingAverage sale per month $85 $300

Sales per year 12 12Value per year $1,020 $3,600

Average length of gym membership (nationally) 18 months 18 monthsLifetime Value $1,530 $5,400


Our popularity has exploded in the last few months due to the overwhelmingly positive reviews we have on websites like Yelp and Groupon

May-12

Jun-12 Jul-

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130

1000200030004000500060007000

Class Attendance per Month


Long Term GoalsWe intend to use our facilities as a test lab; where we will develop innovative fitness ideas, that

will help us turn Just Keep Moving Fitness into an worldwide brand with multiple revenue streams.

JKM FITNESS

JKM OWNED FACILITIES

BOOKS, DVD’S, ONLINE VIDEO

TRAINING EQUIPMENT

FITNESS APPAREL

ECOMMERCE WEBSITE

FRANCHISES

TEACHER TRAINING


Just Keep Moving FitnessBusiness Proposal, February 2013

Media and Teacher CertificationsCrossFit and Zumba Fitness generate tens of Millions annually from teacher training certifications. Below are a few of the classes designed by our instructors that intend to offer not only as teacher

training, but in numerous media formats, including dvd’s, online video and phone/tablet apps.

Instructor Bio’s on pages 15 - 17

Creator Title DescriptionTauris McBride Core Bootcamp Utilizes yoga, Pilates and martial arts techniques to

strengthen abs, lower back, thighs and glutes.Olga Dolynina Power Yoga Bootcamp A fast paced flow yoga class, in which Sun Salutation

transitions link yoga poses with exercises.Danita Shaheen Booty Ballet Learn ballet vocabulary, proper posture alignment,

muscle isolation and awareness, flexibility training, with a focus on musicality and coordination.

Jeffrey Freeze Funk-U A fast, fun, high energy dance party set to funk, disco and pop music from the 70’s, 80’s and today.

John Salgado Cardio Combat A strength and endurance class that utilizes Martial Arts to burn a massive amount of calories.

Ryan Hicks AAA (Arms, Abs & A**) An express workout class that will get you toned arms, 6 pack and firm glutes.

Dance Bootcamp Works the entire body while learning fun dance combinations and testing coordination

FranchisesWe intend to market JKM Franchises as affordable alternatives to other fitness companies; and

we also hope to incentivize existing boutique fitness businesses to convert into JKM facilities

JKM Anytime fitness Crunch Curves I love kick

boxingLucille

RobertsPlanet fitness

Retro fitness

Snap fitness

Year Founded 2011 2001 2010 1992 2009 1970 1992 2002 2003

Began Franchising 2013 2002 2010 1995 2012 2010 2003 2006 2004

Corporate Locations 2 - 3 16 0 0 2 47 34 4 80

US Franchises 1782 28 3,696 53 5 514 75 1,023

Int. Franchises 333 3 3,567 0 0 0 0 228

Franchise Fee $10,000 $27k $25k $25k $5-10k $25k $10k $69k $15k

Term (years) 5 5 yrs 10 yrs 5 yrs 5 yrs 10 yrs 10 yrs 10 yrs 5 yrs

Royalty $500 $499/mo 3% 6% $497 6% 5% 5% $449/mo

Req. Net Worth $150k $1m $75k $375k $1.3m 1.5m $250k

Req. Cash $70k $300k $50k $75k $400k $300k $50k

Investment (max) $354k $1.4m $39k $180k $400k $1.66m $1.5m $376k

Monthly membership

$70 - 100 $39.95 $99 $29 $125-149 $16 - $25 $10 - $20 $19.99 $29.95


In Conclusion

• Not only is Tauris McBride extremely passionate about fitness, he is an inspiration to others looking to improve their lives.

• He has aligned himself with world class instructors who are equally passionate and willing to sacrifice to help the company grow.

• We believe with the right partner we can build a tremendously profitable company that will help many people lead happier and healthier lives.


JKM Instructors

Derek CookDerek has been teaching Budokon for seven years, after using it to transform his life. Realizing the potential to heal through movement, he also discovered a passion for helping others. He has spent years studying anatomy and movement, as well as yogic and marital arts practices. Olga DolyninaOlga began her training at Hot House Yoga in Virginia Beach; learning the basics of hot yoga, Hatha and Vinyasa. After moving to Washington, D.C. she taught at various yoga studios, fitness facilities, dance companies, schools, conservatories and corporate offices. She soon became the director of yoga at STROGA (Sports and Yoga), which she helped to become one of the biggest studios in the D.C area. Jeffrey Freeze A professional dancer for 20 years, Jeffrey is currently the Associate Director for the renowned Heidi Latsky Dance. He began his career as a “Muppet”, touring with Sesame Street Live. His credits include the movie “Dirty Dancing” and the Broadway production of “Swan Lake”; and he was a backup dancer for Debbie Harry, Penny Arcade and Rue Paul. Jeffrey is routinely invited to perform and teach at such major universities, including Belot, Hofstra, Drew and UC San Diego. Certified in the Stott Pilates method, he is a qualified teacher trainer. He also trains dancers from the New York City Ballet, the Ailey Company and the Peter Goss Company in Paris.


JKM Instructors

Lisa Grecco Lisa is an actress and former professional dancer who has been teaching for over 15 years. She received her Pilates Mat Certification in 2000, Pilates Apparatus Certification in 2003, and YogaFit Certificate in 2009. She has an MFA in Dance from California State University, an MA in Performance Art from Claremont Graduate School and a BA in Dance from Loyola Marymount University. Ryan HicksRyan was introduced to Pilates by his Ballet instructor, Jennifer Dournaux. He studied Pilates in Paris, and has used it to take his dancing to new heights. His unique approach to Pilates focuses on the flexibility and fluidity of dance. Nikolay IgnatyevWhile studying philosophy and religion at Hunter College, Nikolay found Yoga through classes on Eastern Religions and the study of esoteric mystical texts from Sufism, Buddhism, and Christianity. He has completed his 200-hour training with Sri Dharma Mittra and is completing his 200 and 500-hour teacher training with Atmananda Yoga. Dawn KopeckiDawn completed her 200 hour training in 2009 at Down Dog Yoga in Washington, D.C. After moving to New York she completed her second 200 hour training with master teacher Sri Dharma Mittra. She is also certified to teach children's yoga with Karma Kids and completed kids-based training with the Lineage Project, which specializes in teaching yoga to incarcerated teenagers.


JKM Instructors

Javar LeeJavar is a 1st Dan Tae Kwon Do Black Belt and Certified Aerobics Kickboxing Instructor. He is a member of the National Strength and Conditioning Association and has a Certificate of Completion for Sports Injury Prevention and First Aid with Adult and Child CPR/AED by the American Red Cross. Javar also trains United States Marine Corps Applicants at the USMC Recruiting Sub-Station before they leave for Recruit Training at Parris Island SC. John SalgadoJohn is a Brazilian Jiu-Jitsu Black Belt, who trains in Boxing and San Da Kickboxing. He is also a professional Mixed Martial Arts (MMA) fighter who has competed in many fighting leagues. For the past eight years, he has honed his skills as a trainer and instructor at several health clubs, including Equinox and New York Sports Club. Danita ShaheenDanita is a dancer and choreographer from upstate New York. She received her BFA in dance from Marymount Manhattan College and graduated with honors. She has performed with Dance Cat-alyst, Jacobs/Campbell Dance, Heather Gehring Dance Theatre, Banana Peel Dance, MAD about Dance, H.T. Chen and Dancers, Tamara Saari, AERA, Beth Soll, Andrea Gise and Dancers, Laura Ward/ Octavia Cup Dance Theatre, and Nina Buisson Contemporary Move. She is also a founding member and the Artistic Director of the Alternative Arts Association, a Queens-based multimedia arts organization and registered 501c3. (www.alternativearts.org)


2013 Revenue Expanded1 2 3 4 5 6 7 8 9 10 11 12 Total

Promotions 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000Unlimited

Monthly ($80 average)

4,000 4400 4840 5324 5856 6442 7086 7795 8574 9432 10375 11412 85,537

Class Package ($200 average) 4,000 4400 4840 5324 5856 6442 7086 7795 8574 9432 10375 11412 85,537

Personal Training ($280 average) 2,800 3080 3388 3727 4099 4509 4960 5456 6002 6602 7262 7989 59,876

Single Class ($10) 1,000 1100 1210 1331 1464 1611 1772 1949 2144 2358 2594 2853 21,384Water/Health

Bars/Energy Drinks

500 550 605 666 732 805 886 974 1072 1179 1297 1427 10,692

Total 15,300 16,530 17,883 19,371 21,008 22,809 24,790 26,969 29,366 32,003 34,903 38,093 299,027

1 2 3 4 5 6 7 8 9 10 11 12 TotalPromotions 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000

Unlimited Monthly ($80

average)11,983 12,582 13,211 13,872 14,566 15,294 16,058 16,861 17,704 18,590 19,519 20,495 190,736

Class Package ($200 average) 11,983 12,582 13,211 13,872 14,566 15,294 16,058 16,861 17,704 18,590 19,519 20,495 190,736

Personal Training ($280 average) 8,388 8,808 9,248 9,710 10,196 10,706 11,241 11,803 12,393 13,013 13,663 14,347 133,515

Single Class ($10) 2,996 3,146 3,303 3,468 3,641 3,823 4,015 4,215 4,426 4,647 4,880 5,124 47,684 Water/Health

Bars/Energy Drinks

1,498 1,573 1,651 1,734 1,821 1,912 2,007 2,108 2,213 2,324 2,440 2,562 23,842

Total 39,848 41,690 43,625 45,656 47,789 50,028 52,380 54,849 57,441 60,163 63,022 66,023 622,514

2014 Revenue Expanded


2015 Revenue Expanded1 2 3 4 5 6 7 8 9 10 11 12 Total

Promotions 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000Unlimited

Monthly ($80 average)

21,520 22,596 23,726 24,912 26,158 27,465 28,839 30,281 31,795 33,384 35,054 36,806 342,535

Class Package ($200 average) 21,520 22,596 23,726 24,912 26,158 27,465 28,839 30,281 31,795 33,384 35,054 36,806 342,535

Personal Training ($280 average) 15,064 15,817 16,608 17,438 18,310 19,226 20,187 21,196 22,256 23,369 24,538 25,764 239,775

Single Class ($10) 5,380 5,649 5,931 6,228 6,539 6,866 7,210 7,570 7,949 8,346 8,763 9,202 85,634Water/Health

Bars/Energy Drinks

2,690 2,824 2,966 3,114 3,270 3,433 3,605 3,785 3,974 4,173 4,382 4,601 42,817

total 69,174 72,632 76,264 80,077 84,081 88,285 92,699 97,334 102,201 107,311 112,677 118,311 1,101,047


Jkm fitness business plan and projections

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