CrossFit RedBeard Business Plan

CONFIDENTIAL

CrossFit RedBeard, Inc.

Business Plan! Prepared April 2016

Contact Information Jeremy Edwards [email protected] (903) 216-3942 www.crossfitredbeard.com 1590 Business Highway 121 Lewisville, TX 75056, United States

CrossFit RedBeard

Table of Contents Executive)Summary)....................................................................................................................)1! Opportunity).........................................................................................................................)1! Expectations).........................................................................................................................)2! Opportunity).................................................................................................................................)4! Problem)&)Solution)............................................................................................................)4! Target)Market)......................................................................................................................)4! Competition).........................................................................................................................)5! Execution).......................................................................................................................................)7! Marketing)&)Sales)..............................................................................................................)7! Operations)..........................................................................................................................)10! Exit)Strategy).......................................................................................................................)11! Company).....................................................................................................................................)12! Overview)............................................................................................................................)12! Team)....................................................................................................................................)12! Financial)Plan)............................................................................................................................)14! Forecast)...............................................................................................................................)14!

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CrossFit RedBeard

Financing)............................................................................................................................)16! Statements)..........................................................................................................................)18! Appendix)....................................................................................................................................)27! Profit)and)Loss)Statement)...............................................................................................)27! Balance)Sheet).....................................................................................................................)32! Cash)Flow)Statement)........................................................................................................)36!

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CrossFit RedBeard

Executive Summary Opportunity Problem Residents(of(the(nearby(Castle(Hills(housing(development,(as(well(as(the(neighboring( cities(of(Lewisville,(The(Colony,(Frisco,(and(Plano(are(particularly(keen(on(maintaining( their(fitness(levels.(However,(they(lack(an(affordable(fitness(facility(that(offers(personal( coaching,(lifting(techniques(coaching,(nutritional(guidance,(and(constant(support(at(an( affordable(price.(

Solution Our(facility(not(only(provides(all(of(the(aforementioned(services(to(potential(clients,(but( is(providing(them(with(the(adequate(workout(space,(equipment,(and(aesthetic(that(our( potential(clients(have(come(to(expect,(and(a(very(reasonable(price(compared(to(other( facilities.(We(have(also(secured(a(space(in(a(location(that(is(beneficial(to(those(who(do( not(wish(to(travel(great(lengths(to(work(out,(which(increases(retainment(and(active( participation.(((

Market The(target(market(is(those(within(the(surrounding(community(who(do(not(wish(to( travel(far(in(order(to(work(out.(Also,(the(individual(median(income(and(average( household(net(worth(suggests(that(potential(clients(would(be(able(to(afford(the(prices(of( personal(training(that(we(offer.(

Competition There(are(three(main(competitors(in(the(nearby(area,(although(only(one(offers(a(similar( pricing(system(and(smaller(class(system(as(we(do.(However,(limited(workout(variation,( no(nutritional(guidance,(and(lack(of(motivational(support(throughout(the(week( ultimately(benefits(this(company.(The(other(two(competitors(have(a(strategic(advantage( in(monthly(pricing(and(amenities,(but(do(not(offer(any(personal(coaching,(intimate( 1 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.

CrossFit RedBeard

classes,(wellness(coaching,(or(followFup.(For(the(personal(training(alone(at(a(traditional( gym,(two(hourFlong(sessions(utilizing(a(personal(trainer(would(cost(the(same(as(an( unlimited(monthly(membership(at(our(facility.((

Why Us? The(owner/operator(of(CrossFit(RedBeard,(Jeremy(Edwards,(has(been(an(avid(CrossFit( member(since(January(of(2008.(In(2010,(Jeremy(obtained(his(Level(1(Training( Certification,(and(has(gone(on(to(obtain(several(other(certifications(such(as(power(lifting( and(coaching.(As(well(as(CrossFit,(Jeremy(Edwards(was(a(former(Marine(who(learned( not(only(fitness(techniques,(but(leadership,(development,(and(discipline.(Professionally,( Jeremy(Edwards(has(served(as(a(Northern(Operations(Manager,(maintaining(and( installing(XFRay(equipment(throughout(Iraq,(for(a(contract(worth(approximately($50( million(dollars.(He(also(obtained(a(Bachelor(of(Science(degree(in(Finance(from(the( University(of(Texas(at(Dallas.((

Expectations Forecast The(financial(goals(for(this(enterprise(for(the(first(year(are(to(become(slightly(profitable.( With(the(initial(outlay(of(capital(and(financing,(the(business(would(need(to(generate( everFincreasing(membership(in(order(to(break(even(the(first(year.(However,(subsequent( years(will(see(greater(retained(earnings(and(net(profit(margins(as(the(expenditures( remain(consistent(and(revenues(increase,(even(with(the(addition(of(extra(trainers,( expansion(of(gym(space,(and(a(fullFtime(administrator.(

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CrossFit RedBeard

Financial Highlights by Year

Financing Needed Initial(funding(will(come(from(personal(savings(to(cover(upfront(costs(such(as(the(initial( Affiliate(fee,(insurance,(first(monthYs(lease,(utilities,(and(website(subscription.(The( equipment(for(the(gym(will(be(financed(through(a(10(year,(10%(bank(loan(of($30,000.(


CrossFit RedBeard

Opportunity Problem & Solution Problem Worth Solving The(primary(problem(faced(when(customers(are(searching(for(a(fitness(facility(to( achieve(their(desired(goals.(With(the(saturation(of(the(fitness(market,(customers(have( many(options(depending(on(the(worries(they(may(have,(whether(it(be(financial(outlay( per(month,(personal(training(preferences,(distance(to(gym,(etc.(Another(aspect(of(fitness( facilities(that(may(affect(individualYs(preferences(is(overall(aesthetic(and(equipment( options,(given(their(desired(workout(needs.(With(this(amount(of(choice(in(such(a( concentrated(area,(a(customer(may(very(well(become(overwhelmed(by(selecting(their( desired(workout(facility,(or(may(settle(for(one(that(does(not(quite(suit(their(needs.( Neither(of(these(scenarios(are(preferred.(

Our Solution What(we(intend(to(offer(is(the(luxury(of(consistent(personal(training(each(time(a( customer(attends(a(class,(but(at(a(fraction(of(the(cost.(Each(trainer(will(be(certified(to( coach(clients(as(individuals,(as(well(as(classes.(Our(services(will(also(allow(clients(to( track(their(progress(as(they(continue(to(attend.(Additionally,(we(will(provide(classes(to( instruct(new(clients(how(to(properly(perform(the(exercises,(and(provide(accurate(meal( guides(to(ensure(that(all(of(the(hard(work(is(adequately(maintained.(

Target Market Our(business(focus(will(primarily(target(households(within(the(Lewisville,(Plano,(and( Frisco(areas,(as(these(customers(have(the(financial(means(to(afford(our(services,(as(well( as(the(desire(to(maintain(a(healthy(lifestyle.(In(the(Castle(Hills(housing(market,(the( median(income(is(roughly($80,000,(and(the(average(household(network(is($653,000.(That( alone(is(not(going(to(ensure(success,(however.(What(will(set(this(facility(apart(from( others,(particularly(CrossFit(gyms,(is(the(location.(From(where(this(company(operates,( there(is(not(another(CrossFit(facility(within(20(square(miles,(and(sits(just(two(miles(from( 4 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.

CrossFit RedBeard

hundreds(of(homes.(We(do(realize,(however,(that(many(customers(will(either(travel(to( work(out,(or(visit(a(gym(somewhere(to(or(from(work.(With(this(is(mind,(we(have(based( our(market(size(on(other(CrossFit(facilities.(In(this(we(have(a(strategic(advantage,(as(we( have(purchased(more(equipment(and(leased(a(larger(space(for(our(customers.(We(have( also(secured(a(future(option(to(lease(the(adjacent(property(to(accommodate(future( expansion.(Because(of(these(advantages,(we(anticipate(grow(to(350(customers(within(5( years.( (http://www.point2homes.com/US/Neighborhood/TX/DentonF County/Lewisville/CastleFHillsFDemographics.html)(

Competition Current Alternatives In(the(geographic(area(we(occupy,(there(exists(two(indirect(competitors,(and(one(direct.( The(one(direct(competitor(is(Orangetheory(Fitness,(and(offers(similar(services(to(ours.(

What(they(offer(are(classes(that(track(customerYs(heart(rate,(and(provide(coaches(during( training(to(encourage(intensity.(However,(their(classes(are(tailored(more(towards(cardio( workouts,(and(are(geared(for(highFintensity,(low(weight(free(weight(workouts(in(order( to(keep(a(client’s(heart(rate(up.(Additionally,(while(their(3X/(week(pricing(plan(is( considerably(lower(than(our,(their(unlimited(monthly(pricing(plan(is(broadly(the(same( as(ours.(This(offers(and(advantage(given(the(nature(of(the(workouts,(variability,( personal(coaching,(nutritional(guidance,(and(dayFtoFday(support.(


CrossFit RedBeard

The(two(indirect(competitors(within(the(same(geographic(location(are(LA(Fitness(and(24( Hour(Fitness.(

( These(competitors(are(deemed(indirect(because(they(do(not(simply(offer(the(same( services(as(this(companyYs,(outside(of(offering(equipment(for(use.(They(offer(a(single,( monthly(membership(($25(per(month,(and($55(per(month,(respectively),(and(offer(the( use(of(a(swimming(pool(and/or(a(basketball(gym.(However,(this(requires(much(personal( perseverance(to(continue(attending,(which(does(not(happen(often.(Additionally,(for( their(customers(to(have(personal(training,(it(requires(scheduling(a(fitness(contractor( when(they(are(available,(and(costs(around($75(per(hour.(An(unlimited(membership(at( our(facility(per(month((which(includes(personal(training,(coaching,(and(nutritional( coaching),(costs(only(two(hours’(worth(of(a(personal(trainerYs(time(at(these(traditional( gyms.(

Our Advantages As(stated(before,(we(intend(to(distinguish(ourselves(by(the(level(of(personal(interaction( between(our(trainers(and(clients.(Our(competitors(may(offer(lower(prices,(or(additional( amenities,(but(the(services(we(offer(for(slightly(more,(we(feel,(will(attract(many( customers.(For(the(price(of(two(personal(training(sessions,(we(offer(one(monthYs( unlimited(class(attendance,(with(coaching,(nutritional(guidance,(afterFhours(followFup,( encouragement,(and(teamFbuilding.( 6 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.

CrossFit RedBeard

Execution Marketing & Sales Marketing Plan As(a(brand,(CrossFit(has(set(itself(apart(in(marketing(itself(as(an(alternative(to(the( traditional(fitness(industry.(In(2005,(when(CrossFit(was(founded(by(Greg(Glassman,( there(existed(only(13(gyms.(Since(that(time,(however,(CrossFit(has(grown(to(to(7,000( affiliate(gyms(located(globally.(CrossFit(has(also(grown(to(host(its(own(CrossFit(games,( which(has(grown(166%,(and(is(now(sponsored(by(Reebok.(Pertaining(to(the(affiliate( gyms,(they(have(only(a(2%(failure(rate,(and(generate(over($2(billion(dollars(of(revenue( for(the(CrossFit(brand(yearly.((

Because(of(the(popularity(of(CrossFit,(marketing(an(affiliate(gym(becomes(slightly(less( strenuous.(However,(due(to(the(exponential(growth(of(facilities(located(not(only( globally,(but(also(locally,(distinguishing(this(gym(as(the(preferred(training(facility(for( those(looking(to(join(a(CrossFit(gym(will(include(clever(marketing.(For(this(reason,(I( intend(to(use(a(threeFstep(approach(to(the(marketing.( 1.)Preferred)pricing)for)the)first)100)people)who)join.( For(the(first(one(hundred(customers(who(sign(up(for(a(monthly,(recurring(membership,( we(will(offer(a(monthly(discount(to(those(who(sign(up(afterwards.(A(normal(monthly( membership(would(typically(cost($150(per(month,(but(we(will(offer(the(founders(a($135( 7 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.

CrossFit RedBeard

per(month(membership(for(those(who(wish(to(opt(for(the(unlimited(membership,(and( $115(for(those(who(choose(the(three(times(a(week(membership.(Also,(for(those(first(100( members,(we(will(offer(a(free(TFshirt(that(shows(they(were(a(founding(member(of(our( gym.( 2.)Strategic)use)of)social)media.( As(our(business(develops,(and(we(begin(to(retain(more(customers,(wordFofFmouth(will( play(an(ever(increasing(role(in(generating(new(members.(However,(social(media(plays( an(ever(increasing(role(in(todayYs(society.(This(is(particularly(true(for(CrossFit(gyms(and( members(throughout(the(world.(With(this(in(mind,(we(plan(to(adopt(a(Facebook(page( for(wordFof(mouth(and(updates,(a(Twitter(handle(for(updates(and(current(workout( schedules,(an(Instagram(profile(to(post(photographs(of(current(members(and(their( progress(and(dedication,(and(a(dedicated(website(that(will(aid(potential(clients(in( obtaining(all(the(information(they(need(about(our(gym.( 3.)Enhanced)graphic)signs)and)pleasing)exterior)to)the)gym( The(particular(area(that(this(gym(will(be(centrally(located(is(centered(in(an(area(of( people(that(are(typically(upperFmiddle(class.(Our(potential(clients(will(be(located(in( cities(from(Lewisville(to(Frisco,(and(as(such,(they(are(accustomed(to(a(particular( aesthetic,(as(often(seen(in(the(shopping(district(of(Frisco.(For(this(reason,(maintaining(an( appearance(of(quality(is(of(the(utmost(importance.(We(will(have(our(signs( manufactured(by(a(local(graphic(artist,(as(well(as(spend(initial(capital(on(the( beautification(of(the(exterior(of(our(building.(


CrossFit RedBeard

Pricing Monthly)Memberships( Offer(a(10%(discount(on(monthly(memberships(for:( •! •! •! •!

Military( Fire(Fighters( Police(Officers( FullFtime(students(

3x/week)Membership( •! •! •! •!

MonthFtoFmonth(agreement(F($169/(month( 3Fmonth(initial(agreement(F($149/(month( 6Fmonth(initial(agreement(F($129/(month( Family(AddFon(F($109/(month(

Unlimited)Membership( •! •! •! •!

MonthFtoFmonth(agreement(F($209/(month( 3Fmonth(initial(agreement(F($189/(month( 6Fmonth(initial(agreement(F($159/(month( Family(AddFon(F($129/month(

6Rmonths( •! 3x/(week(F($720.00( •! Unlimited(F($900.00( 12Rmonth)PreRpay)option)( •! 3x/week(F($1,320.00( •! Unlimited(F($1,650.00( Boot)Camp)Membership( 9 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.

CrossFit RedBeard

This(membership(option(will(give(access(to(unlimited(Boot(Camp(sessions.( •! •! •! •! •!

MonthFtoFmonth(F($209/month( 3Fmonth(initial(agreement(F($189/month( 6Fmonth(initial(agreement(F($159/month( Family(addFon(F($129/(month( PreFpay(1(year(F($1650.00(

Operations Locations & Facilities We(have(secured(an(industrial(facility(for(a(one(year(lease,(located(at(1590(Business( Highway,(Lewisville,(TX(75056.(The(facility(occupies(2500(square(feet,(with(an(exercise( option(to(secure(the(adjacent(facility(for(future(use(if(required.(This(expansion(would( double(the(current(square(footage,(totaling(5000(square(feet.(Both(of(these(facilities( should(adequately(house(the(number(of(clients(working(out(at(any(specific(time,(when( needs(arise.(This(initial(facility(is(also(equipped(with(two(offices.(One(will(be(used(by( the(owner/operator(for(business(purposes.(The(other(will(primarily(be(used(for( customer(relations,(membership(signFup,(and(informational(use.( Due(to(the(industrial(purpose(of(the(location,(this(will(keep(the(utility(expenses(to(a( minimum,(as(air(conditioning(is(not(required(for(the(majority(of(the(space((only(the(two( offices).(Additionally,(lighting(and(electricity(will(also(be(used(sparingly(throughout(the( space.( The(location(of(the(facility(itself(is(ideally(located(in(a(centralized(location,(devoid(of(any( other(rival(gyms(within(a(five(mile(radius,(and(positioned(just(off(of(a(major( thoroughfare((Highway(121).(This(provides(ample(opportunity(for(potential(clients(to( observe(the(facility(when(passing((particularly(during(peak(hours(of(early(morning(and( afternoon).(This(is(also(a(potentially(lucrative(location,(as(it(is(positioned(within(5(miles( from(500,000(upperFmiddle(class(citizens(who(have(the(discretionary(income(to(afford( our(services.(


CrossFit RedBeard

Technology This(company(has(subscribed(to(RhinoFit(for(membership(services.(This(service(will( cost($57(per(month(and(supports(autoFbill(pay,(financial(information(and(bill(tracking,( class(registration,(membership(tracking,(and(clientele(progress.( We(will(also(be(using(SquareSpace(for(the(development(and(sustained(operation(of(the( companyYs(website.(The(content(of(the(website(will(be(developed(by(the( owner/operator,(and(will(cost($13(on(a(monthly(basis(for(continued(online(capability.( Lastly,(we(use(mainstream(social(media(sites(such(as(Facebook,(Twitter,(and(Instagram( to(further(increase(brand(awareness,(and(generate(increasing(revenues.(

Equipment & Tools Initially,(we(will(need(to(purchase(various(gym(equipment(before(operations( commences.(This(will(be(purchased(through(a(bank(loan(of($30,000.(This(loan(will(be( used(to(finance(equipment(such(as(kettle(bells,(pullFup(bars,(free(weights,(mats,(etc.(This( initial(outlay(should(be(enough(equipment(to(sustained(continued(growth(for(the(next( five(years(as(long(as(maintenance(is(properly(utilized.(

Exit Strategy As(this(company(is(not(in(a(position(to(go(public,(the(best(course(of(action(at(the(end(of( five(years(is(to(franchise(by(opening(another(facility,(or(sell(outright.(( If(wishing(to(sell(the(company,(based(on(current(financial(forecasts,(the(company(would( be(worth(an(estimated($501,146.(This(assumes(a(constant(growth(rate(of(3%(after(the( fifth(year,(a(cost(of(equity(capital(of(20%,(and(a(40%(discount(rate,(as(this(is(still(in(its( startFup(phase(of(development.(


CrossFit RedBeard

Company Overview Registered)name( CrossFit(RedBeard,(Incorporated( Commencement)of)Operations( CrossFit(RedBeard,(Inc.(will(begin(operations(on(1(May(2016(in(Lewisville,(TX.( Reason)behind)incorporation( This(company(feels(it(is(best(served(by(incorporating(now(with(the(anticipation(of( further(growth(and(expansion,(possibly(leading(to(operating(more(than(one(gym(in( various(locations.( Structure( Initially,(this(company(will(only(employ(one(full(time(trainer(on(staff,(Ryan(Rayle.(All( other(aspects(of(running(the(corporation,(such(as(additional(training,(accounting,( marketing,(and(development,(will(be(in(the(charge(of(the(owner/operator(Jeremy( Edwards.(

Team Management Team Owner/Operator( Jeremy(Edwards( FullRtime)Trainer(


CrossFit RedBeard

Ryan(Rayle(

Key Planned Hires As(membership(grows,(additional(trainers(will(need(to(be(retained.(Per(previous( affiliate(experience(and(statistical(analysis(acquired,(one(trainer(should(only(teach(a( class(of(no(more(than(12F15(clients((there(will(be(several(of(classes(per(day).(By(year(two,( the(companyYs(growth(in(membership(will(be(substantial(enough(to(hire(another(fullF time(trainer.(By(the(fiscal(years(of(2018(and(2019,(an(additional(trainer(will(need(to(be( retained.(In(the(fiscal(years(of(2020(and(2021,(a(subsequent(two(will(need(to(be(hired( (totaling(5(trainers(on(staff),(as(well(as(an(administrator(to(handle(the(volume(of( accounting(needed(to(operate.(

Personnel Table

Trainers (3.5)

FY2017

FY2018

FY2019

FY2020

FY2021

$45,000

$90,000

$90,000

$150,000

$150,000

$36,000

$36,000

$186,000

$186,000

Administration (0.4)

Total

$45,000

$90,000

$90,000

(


CrossFit RedBeard

Financial Plan Forecast Key Assumptions Revenue by Year


CrossFit RedBeard

Expenses by Year

Net Profit (or Loss) by Year


CrossFit RedBeard

Financing Use of Funds The(only(financing(needed(will(be(for(the(initial(outlay(of(gym(equipment.(That(will(be( purchased(through(a(10(year,(10%(interest($30,000(loan.(All(initial(capital(needs(will(be( purchased(through(the(use(of(personal(funds.(Each(subsequent(month/yearYs( expenditures(will(be(financed(through(retained(earnings.(

Cash Flow by Year


CrossFit RedBeard

Cash Flow by Month


CrossFit RedBeard

Statements Projected Profit & Loss


CrossFit RedBeard

FY2017

FY2018

FY2019

FY2020

FY2021

$123,266

$244,072

$396,324

$562,978

$725,671

$123,266

$244,072

$396,324

$562,978

$725,671

100%

100%

100%

100%

100%

Salary

$45,000

$90,000

$90,000

$186,000

$186,000

Employee Related Expenses

$22,500

$45,000

$45,000

$93,000

$93,000

Lease

$24,000

$24,000

$24,000

$40,000

$40,000

$1,188

$1,188

$1,188

$1,188

$1,188

$650

$650

$650

$650

$650

Utilities

$2,640

$220

$220

$440

$440

Maintenance

$3,698

$7,322

$11,890

$16,889

$21,770

Affiliate Fee

$3,000

$3,000

$3,000

$3,000

$3,000

Marketing

$6,163

$12,204

$19,816

$28,149

$36,284

RhinoFit Software

$684

$684

$684

$684

$684

Website Fee

$156

$156

$156

$156

$156

$109,679

$184,424

$196,604

$370,156

$383,172

$13,587

$59,648

$199,720

$192,822

$342,499

Interest Incurred

$941

$848

$642

$416

$166

Depreciation and Amortization

$3,000

$3,000

$3,000

$3,000

$2,750

Income Taxes

$3,857

$22,320

$78,431

$75,763

$130,533

$117,477

$210,592

$278,677

$449,335

$529,871

$5,789

$33,480

$117,647

$113,643

$195,800

Revenue Direct Costs Gross Margin

Gross Margin % Operating Expenses

Insurance Insurance Fee

Total Operating Expenses Operating Income

Total Expenses Net Profit


CrossFit RedBeard

Net Profit / Sales

5%

14%

30%

20%

27%

(


CrossFit RedBeard

Projected Balance Sheet


CrossFit RedBeard

FY2017

FY2018

FY2019

FY2020

FY2021

$2,179

$65,129

$252,282

$377,614

$656,964

$0

$0

$0

$0

$0

Total Current Assets

$2,179

$65,129

$252,282

$377,614

$656,964

Long-Term Assets

$30,000

$30,000

$30,000

$30,000

Accumulated Depreciation

($3,000)

($6,000)

($9,000)

($12,000)

Total Long-Term Assets

$27,000

$24,000

$21,000

$18,000

Total Assets

$29,179

$89,129

$273,282

$395,614

$656,964

$0

$0

$0

$0

$0

$3,857

$22,320

$78,431

$75,763

$130,533

$10,169

$20,136

$32,697

$46,446

$59,868

Short-Term Debt

$1,960

$2,166

$2,392

$2,642

$207

Prepaid Revenue

$0

$0

$0

$0

$0

Total Current Liabilities

$15,986

$44,622

$113,520

$124,851

$190,608

Long-Term Debt

$7,407

$5,241

$2,849

$207

$0

$23,393

$49,863

$116,369

$125,058

$190,608

$5,786

$39,266

$156,913

$270,556

$5,786

$33,480

$117,647

$113,643

$195,800

$5,786

$39,266

$156,913

$270,556

$466,356

Cash Accounts Receivable Inventory Other Current Assets

Accounts Payable Income Taxes Payable Sales Taxes Payable

Total Liabilities Paid-in Capital Retained Earnings Earnings

Total Owner's Equity


CrossFit RedBeard

Total Liabilities & Equity

$29,179

$89,129

$273,282

$395,614

$656,964

(


CrossFit RedBeard

Projected Cash Flow Statement


CrossFit RedBeard

FY2017

FY2018

FY2019

FY2020

FY2021

Net Profit

$5,789

$33,480

$117,647

$113,643

$195,800


$3,000

$3,000

$3,000

$3,000

$2,750

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$3,857

$18,463

$56,111

($2,668)

$54,770

$10,169

$9,967

$12,561

$13,749

$13,422

$0

$0

$0

$0

$0

$22,815

$64,910

$189,319

$127,724

$279,992

Net Cash Flow from Operations

Change in Accounts Receivable Change in Inventory Change in Accounts Payable Change in Income Tax Payable Change in Sales Tax Payable Change in Prepaid Revenue

Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold

($30,000)

$2,000

Investments Received Change in LongTerm Debt

$7,407

($2,166)

($2,392)

($2,642)

($207)

Change in Short-Term Debt

$1,960

$206

$226

$250

($2,435)

Dividends & Distributions


CrossFit RedBeard

Net Cash Flow from Investing & Financing Cash at Beginning of Period Net Change in Cash

Cash at End of Period

($20,633)

($1,960)

($2,166)

($2,392)

($642)

($3)

$2,179

$65,129

$252,282

$377,614

$2,182

$62,950

$187,153

$125,332

$279,350

$2,179

$65,129

$252,282

$377,614

$656,964

(


CrossFit RedBeard

Appendix Profit and Loss Statement Profit and Loss Statement (With Monthly Detail)


CrossFit RedBeard

FY2017

May '16

Jun '16

Jul '16

Aug '16

Sep '16

Oct '16

Nov '16

Dec '16

Jan '17

Feb '17

Mar '17

Apr '17

Revenue

$6,500

$5,938

$6,986

$8,139

$9,092

$9,997

$10,857

$11,675

$12,451

$13,188

$13,889

$14,554

Gross Margin

$6,500

$5,938

$6,986

$8,139

$9,092

$9,997

$10,857

$11,675

$12,451

$13,188

$13,889

$14,554

Gross Margin %

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

Salary

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

$5,000

$5,000

$5,000

$5,000

$5,000

$5,000


$1,250

$1,250

$1,250

$1,250

$1,250

$1,250

$2,500

$2,500

$2,500

$2,500

$2,500

$2,500

Lease

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$2,000

$99

$99

$99

$99

$99

$99

$99

$99

$99

$99

$99

$99

Direct Costs

Operating Expenses


$350

Utilities

$220

$220

$220

$220

$220

$220

$220

$220

$220

$220

$220

$220

Maintenance

$195

$178

$210

$244

$273

$300

$326

$350

$374

$396

$417

$437

Affiliate Fee

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

Marketing

$325

$297

$349

$407

$455

$500

$543

$584

$623

$659

$694

$728

RhinoFit Software

$57

$57

$57

$57

$57

$57

$57

$57

$57

$57

$57

$57

Website Fee

$13

$13

$13

$13

$13

$13

$13

$13

$13

$13

$13

$13

Total Operating Expenses

$7,259

$6,864

$6,948

$7,040

$7,117

$7,189

$11,008

$11,073

$11,436

$11,194

$11,250

$11,304

Operating Income

($759)

($926)

$38

$1,099

$1,975

$2,808

($151)

$602

$1,015

$1,994

$2,639

$3,250

$92

$90

$89

$88

$87

$86

$84

$83

$82

$81

$79

Interest Incurred

$300


CrossFit RedBeard

Depreciation and Amortization Income Taxes

Total Expenses Net Profit Net Profit / Sales

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$0

$0

$0

$0

$0

$916

($195)

$107

$273

$665

$923

$1,168

$7,509

$7,206

$7,288

$7,379

$7,455

$8,442

$11,149

$11,514

$12,042

$12,191

$12,504

$12,801

($1,009)

($1,268)

($302)

$760

$1,637

$1,555

($292)

$161

$409

$997

$1,385

$1,753

(16%)

(21%)

(4%)

9%

18%

16%

(3%)

1%

3%

8%

10%

12%

!


CrossFit RedBeard

FY2017

FY2018

FY2019

FY2020

FY2021

$123,266

$244,072

$396,324

$562,978

$725,671

$123,266

$244,072

$396,324

$562,978

$725,671

100%

100%

100%

100%

100%

Salary

$45,000

$90,000

$90,000

$186,000

$186,000


$22,500

$45,000

$45,000

$93,000

$93,000

Lease

$24,000

$24,000

$24,000

$40,000

$40,000

$1,188

$1,188

$1,188

$1,188

$1,188

$650

$650

$650

$650

$650

Utilities

$2,640

$220

$220

$440

$440

Maintenance

$3,698

$7,322

$11,890

$16,889

$21,770

Affiliate Fee

$3,000

$3,000

$3,000

$3,000

$3,000

Marketing

$6,163

$12,204

$19,816

$28,149

$36,284

RhinoFit Software

$684

$684

$684

$684

$684

Website Fee

$156

$156

$156

$156

$156

$109,679

$184,424

$196,604

$370,156

$383,172

$13,587

$59,648

$199,720

$192,822

$342,499

Revenue Direct Costs Gross Margin

Gross Margin % Operating Expenses


Total Operating Expenses Operating Income Interest Incurred

$941

$848

$642

$416

$166


$3,000

$3,000

$3,000

$3,000

$2,750

Income Taxes

$3,857

$22,320

$78,431

$75,763

$130,533

$117,477

$210,592

$278,677

$449,335

$529,871

Total Expenses


CrossFit RedBeard

Net Profit Net Profit / Sales

$5,789

$33,480

$117,647

$113,643

$195,800

5%

14%

30%

20%

27%

!


CrossFit RedBeard

Balance Sheet Balance Sheet (With Monthly Detail)


CrossFit RedBeard

FY2017

May '16

Jun '16

Jul '16

Aug '16

Sep '16

Oct '16

Nov '16

Dec '16

Jan '17

Feb '17

Mar '17

Apr '17

Cash

($19,223)

($19,893)

($19,513)

($17,976)

($15,485)

($12,086)

($11,576)

($10,244)

($8,436)

($5,588)

($2,037)

$2,179

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

($19,223)

($19,893)

($19,513)

($17,976)

($15,485)

($12,086)

($11,576)

($10,244)

($8,436)

($5,588)

($2,037)

$2,179

$30,000

$30,000

$30,000

$30,000

$30,000

$30,000

$30,000

$30,000

$30,000

$30,000

$30,000

$30,000

($250)

($500)

($750)

($1,000)

($1,250)

($1,500)

($1,750)

($2,000)

($2,250)

($2,500)

($2,750)

($3,000)

Total LongTerm Assets

$29,750

$29,500

$29,250

$29,000

$28,750

$28,500

$28,250

$28,000

$27,750

$27,500

$27,250

$27,000

Total Assets

$10,527

$9,607

$9,737

$11,024

$13,265

$16,414

$16,674

$17,756

$19,314

$21,912

$25,213

$29,179

Accounts Payable

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Income Taxes Payable

$0

$0

$0

$0

$0

$916

$721

$828

$1,101

$1,766

$2,689

$3,857

$536

$1,026

$1,602

$2,274

$3,024

$3,849

$4,744

$5,708

$6,735

$7,823

$8,969

$10,169

Short-Term Debt

$1,789

$1,804

$1,819

$1,834

$1,849

$1,865

$1,881

$1,896

$1,912

$1,928

$1,944

$1,960

Prepaid Revenue

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Total Current Liabilities

$2,325

$2,830

$3,421

$4,108

$4,873

$6,630

$7,346

$8,432

$9,748

$11,517

$13,602

$15,986

Long-Term Debt

$9,211

$9,054

$8,895

$8,735

$8,574

$8,411

$8,247

$8,082

$7,915

$7,747

$7,578

$7,407

$11,536

$11,884

$12,316

$12,843

$13,447

$15,041

$15,593

$16,514

$17,663

$19,264

$21,180

$23,393

Accounts Receivable Inventory Other Current Assets

Total Current Assets Long-Term Assets Accumulated Depreciation

Sales Taxes Payable

Total Liabilities Paid-in Capital


CrossFit RedBeard

Retained Earnings Earnings

($1,009)

($2,277)

($2,579)

($1,819)

($182)

$1,373

$1,081

$1,242

$1,651

$2,648

$4,033

$5,786

Total Owner's Equity

($1,009)

($2,277)

($2,579)

($1,819)

($182)

$1,373

$1,081

$1,242

$1,651

$2,648

$4,033

$5,786

Total Liabilities & Equity

$10,527

$9,607

$9,737

$11,024

$13,265

$16,414

$16,674

$17,756

$19,314

$21,912

$25,213

$29,179

!


CrossFit RedBeard

FY2017

FY2018

FY2019

FY2020

FY2021

$2,179

$65,129

$252,282

$377,614

$656,964

$0

$0

$0

$0

$0

$2,179

$65,129

$252,282

$377,614

$656,964

Long-Term Assets

$30,000

$30,000

$30,000

$30,000

Accumulated Depreciation

($3,000)

($6,000)

($9,000)

($12,000)

Total Long-Term Assets

$27,000

$24,000

$21,000

$18,000

Total Assets

$29,179

$89,129

$273,282

$395,614

Cash Accounts Receivable Inventory Other Current Assets

Total Current Assets

Accounts Payable

$656,964

$0

$0

$0

$0

$0

$3,857

$22,320

$78,431

$75,763

$130,533

$10,169

$20,136

$32,697

$46,446

$59,868

Short-Term Debt

$1,960

$2,166

$2,392

$2,642

$207

Prepaid Revenue

$0

$0

$0

$0

$0

$15,986

$44,622

$113,520

$124,851

$190,608

$7,407

$5,241

$2,849

$207

$0

$23,393

$49,863

$116,369

$125,058

$190,608

$5,786

$39,266

$156,913

$270,556

$5,786

$33,480

$117,647

$113,643

$195,800

$5,786

$39,266

$156,913

$270,556

$466,356

$29,179

$89,129

$273,282

$395,614

$656,964

Income Taxes Payable Sales Taxes Payable

Total Current Liabilities Long-Term Debt

Total Liabilities Paid-in Capital Retained Earnings Earnings

Total Owner's Equity Total Liabilities & Equity


CrossFit RedBeard

Cash Flow Statement Cash Flow Statement (With Monthly Detail)


CrossFit RedBeard

FY2017

May '16

Jun '16

Jul '16

Aug '16

Sep '16

Oct '16

Nov '16

Dec '16

Jan '17

Feb '17

Mar '17

Apr '17

($1,009)

($1,268)

($302)

$760

$1,637

$1,555

($292)

$161

$409

$997

$1,385

$1,753

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$250

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Change in Accounts Payable

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Change in Income Tax Payable

$0

$0

$0

$0

$0

$916

($195)

$107

$273

$665

$923

$1,168

$536

$490

$576

$672

$750

$825

$895

$964

$1,027

$1,088

$1,146

$1,200

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

($223)

($528)

$524

$1,682

$2,637

$3,546

$658

$1,482

$1,959

$3,000

$3,704

$4,371

($157)

($159)

($160)

($161)

($163)

($164)

($165)

($167)

($168)

($169)

($171)

Net Cash Flow from Operations Net Profit Depreciation and Amortization Change in Accounts Receivable Change in Inventory

Change in Sales Tax Payable Change in Prepaid Revenue

Net Cash Flow from Operations Investing & Financing Assets Purchased or Sold

($30,000)

Investments Received Change in Long-Term Debt

$9,211


CrossFit RedBeard


$1,789

$15

$15

$15

$15

$16

$16

$15

$16

$16

$16

$16

Net Cash Flow from Investing & Financing

($19,000)

($142)

($144)

($145)

($146)

($147)

($148)

($150)

($151)

($152)

($153)

($155)

Cash at Beginning of Period

$0

($19,223)

($19,893)

($19,513)

($17,976)

($15,485)

($12,086)

($11,576)

($10,244)

($8,436)

($5,588)

($2,037)

($19,223)

($670)

$380

$1,537

$2,491

$3,399

$510

$1,332

$1,808

$2,848

$3,551

$4,216

($19,223)

($19,893)

($19,513)

($17,976)

($15,485)

($12,086)

($11,576)

($10,244)

($8,436)

($5,588)

($2,037)

$2,179


Net Change in Cash


!


CrossFit RedBeard

FY2017

FY2018

FY2019

FY2020

FY2021

Net Profit

$5,789

$33,480

$117,647

$113,643

$195,800


$3,000

$3,000

$3,000

$3,000

$2,750

Change in Accounts Receivable

$0

$0

$0

$0

$0


Change in Inventory Change in Accounts Payable Change in Income Tax Payable Change in Sales Tax Payable Change in Prepaid Revenue


$0

$0

$0

$0

$0

$3,857

$18,463

$56,111

($2,668)

$54,770

$10,169

$9,967

$12,561

$13,749

$13,422

$0

$0

$0

$0

$0

$22,815

$64,910

$189,319

$127,724

$279,992

Investing & Financing Assets Purchased or Sold

($30,000)

$2,000

Investments Received Change in Long-Term Debt

$7,407

($2,166)

($2,392)

($2,642)

($207)


$1,960

$206

$226

$250

($2,435)

($20,633)

($1,960)

($2,166)

($2,392)

($642)

($3)

$2,179

$65,129

$252,282

$377,614

$2,182

$62,950

$187,153

$125,332

$279,350

$2,179

$65,129

$252,282

$377,614

$656,964


Net Cash Flow from Investing & Financing Cash at Beginning of Period Net Change in Cash


! ! 39 CONFIDENTIAL - DO NOT DISSEMINATE. This business plan contains confidential, trade-secret information and is shared only with the understanding that you will not share its contents or ideas with third parties without the express written consent of the plan author.

CrossFit RedBeard Business Plan

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