Spartan Performance Training

1. Spartan Performance Training BeccaWiget Sergio Maldonado Kelly Pearce Josh Altman

2. I: Executive Summary • Fact: According to the National Academy Sports Medicine approximately 85% of people in the US suffer or have suffered from some sort of lower back pain (LBP). • Fact: over two million ankle sprains occur in the US and 80,000 to 150,000 ACL (knee) injuries occur in the US population. • Fact: It is estimated that 33% of the US population is obese. Obesity is considered a disease and is commonly linked with other chronic conditions such as hypertension, diabetes, and coronary artery disease. • We have differentiated our company by making it our goal to achieve continuing training for the people that protect our society. In addition, The prevention of orthopedic injuries and increased performance will be the process we will specialize in.

3. II. Our Company and the Services We Offer • Problem: There are no gyms or fitness programs that cater to police officers and firemen. • Solution: Spartan Performance Training intends to satisfy this need to provide on site specialized fitness service to these agencies. • These warriors’ demands require both physical and mental tenacity that we hope to help train through our fitness programs. • Our barriers to entry include: the number of indirect competitors, accessibility with our central location, start up costs, high insurance costs, qualified/educated staff, and entering the police/firefighter community.

4. III. Industry and Competitors • Our competitors: • 24 Hour Fitness (more than 400 fitness centers in USA with 3 million members) • Club One (60 fitness centers, and member numbers unknown) • Gold’s Gym (600 gyms in 25 countries, and also 3 million members) • Preparation for Chaos program by BioConstructs, which does business near their base facilities in Los Angles and New York • Professional Club Management Inc., previously held a contract to direct a wellness program in San Jose according to Fire Chief Magazine online • International Association of Firefighters (IAFF) offers fitness programs directed by other firemen certified by the American Council of Exercise (ACE) • However, what we do better is train firefighters and police optimally to perform the best at their job and be as ready as they can for the unexpected, which no one else claims.

5. IV. Market Research and Analysis • Our initial target market will be cities in Santa Clara and San Mateo County, for example: Campbell, Palo Alto, Mountain View, Redwood City • The San Jose Police Department is a government agency that consists of over 1400 employees • San Jose Fire Department IAFF Local 230 contains over 780 members • Police and fire fighter positions are very sought after occupations. Because many people want these positions, there is a large growth potential for this market. Studies show that the police/ fire markets continue to grow every year from 1% to 5%. • In addition, no matter where our economy goes in the next few years, we will always need fire fighters and policemen. • Santa Clara Police Department: interested, currently had not program like ours in place, but fund are scarce • Shawn Salsbury a former Milpitas police women and SWAT team member she commented on the lack of physical fitness of many policemen (both sexes) and lack of emphasis as well as guidance for officers. Shawn also commented that fire departments would probably be more responsive because many departments offer paid time for physical fitness time done at the station where many stations have gym equipment. • We found that individuals within these departments do seek ways and pay for fitness related activities. Also, one of our initial target market should be fire fighters, both because of the increased emphasis on fitness for fire fighters, and also the history of grants given to San Jose fire departments to contract outside services for fitness programs.

6. V. Marketing Plan • Our organization will set up workshops that we will go in and do a trial run with their employees. This way we can make sure that they will be well informed of what services we are offeringand meet our trainers one-on-one • We will show the fire and police chiefs how these workouts can improve their employees’ productivity, decrease their turnover, as well as decrease the amount of sick days their employees take. • We will provide the companies with a first time discount to get them to enter into the initial transaction. • Other companies’ pricing: CrossfitSan Jose :from $80 to $125, Potomac Crossfit: from $112 to $192 for a single person and from $240 to $350 for groups of people, JCC Fitness Center: $18 a class per person up to one week of training for a group for $268. • Based on these prices where the user has to go to the actual business itself, we believe our prices are competitive enough because we our coming to them to provide our services as a B2B business. • The sales cycle: begins in February- March when we approach the fire/ police chief. The agency then goes to an annual hearing in April-May. Then if the agency is granted the finances for the program, we can potentially start the program in June – August. • To start out, we will offer our services in the agencies’ facilities with limited amounts of equipment. In the future, we intend to purchase more equipment in order to diversify the workouts.

7. VI. Design, Development, and Operations Plan • In the first year of operation we intend to operate as an on-site fitness service. By doing so we will minimize our startup costs since we won’t have to pay for a rental space. • Our courses will initially be offered by two of our founders, Becca and Sergio. • Once we have established our client base, we intend to hire 10 to 15 trainers that specialize in everything from kickboxing to yoga. In addition, we would like to have a main headquarters that has a storage facility attachedin the future. • In our start-up phase we will have the trainers transport equipment in their respective vehicles. We will also initially use more creative methods of training which will prove to be very functional for our clients. These will include: bodyweight training , use of daily equipment used by our clientele (fire hoses, fences, cars, other people…), and use of easily transportable equipment. • Our business is in the conceptual developmental phase, however since we have certified personal trainers on our startup team, we are able to jump right in to the test market phase once we have the appropriate funds. • Our valuable information includes that we believe our clientele are not targeted by the fitness industry because they are considered part of the general population, when in fact they have very specific and additional needs that are not being met. In addition, we are bringing our services to them to help eliminate “one time users”, and keep our clients interested.

8. VII. Management Team • Becca: will spend 80% of her time doing training, and the other 20% of her time helping Kelly with the organization and keeping track of the finances. Becca has 5 years of personal training experience, and two years of group exercise training experience. She is currently employed by a gym, where she does one-on-one training, group fitness, host’s boot camps, as well as other fitness workshops. • Sergio: will also spend 80% of his time doing training, and the remaining 20% helping Josh with the marketing aspect of our business. Sergio has three years of fitness training experience and has worked with small as well as large groups. He is currently employed by three organizations in the area where he holds numerous responsibilities • Kelly: will be taking care of the financial part of the business, monitoring the firm’s revenues and costs to make sure we meet our financial targets. Kelly played collegiate Water Polo for four years and has coached swimming for five years. She has worked in everything from retail to the food industry. She is currently working for LululemonAthletica as a sales person and as a swim coach for Forest Park Swim team. • Josh: will spend about 70% of his time communicating via phone, email and face to face meetings with the fire and police departments, mainly the department chiefs. He will also be designated to do most of the sales and marketing work. Joshua has 5 years of experience in martial arts, three of them being an instructor to young children and adults in classes of 5 to 20 people. Joshua also has five years sales and management experience from Best Buy and Apple, and currently is still employed by Apple. • All four of our team members are graduating seniors at San Jose State University, getting their degrees in Business Management.

9. VIII. Critical Risks and Assumptions • We face the critical risk that the departments won’t sign up with our company because we are new and don’t have any prior recommendations. A solution for this would be to recruit a trainer with decades of experience with this population or a similar one to gain reputable name. • Another risk is that we are assuming that the companies will pay for the upfront costs and go through the first round of training and then will re-sign with us. To increase customer loyalty and reduce switching, we will add value through our experience as well as building through partnering with other health professionals. • Some other risks we face include acceptance of the type of service we offer, the willingness to pay our prices, and possibly the number of people that need training. • Because we are working with government business, they may take much longer to decide than we have time for. This may cause us to not produce enough revenues and go out of business, possible even before we start. • We also may run into a situation where we feel that more members are needed in the sales and/ or financial departments. As well as, members of our startup team may want to move on to other ventures, leaving a huge gap in how Spartan Performance Training is run. • The main assumption that we are running under, is that we are able to startup Spartan Performance Training with very little funding.

10. IX. The Financial Plan • Minimum charge of $100 per class (1 hour long) which include up to 5 participants. • For participants from 6 to 10, there will be a $15 additional charge per person. • For 11 - 15 participants, there will be a $12 additional charge per person. • For more than 15 participants there will be a $10 additional charge per person. • Spartan Performance Training will receive all of its revenue from the fees charged to the client for classes.

11. X. Proposed Company Offering • Although our company does not need very much money in order to start up we are seeking equityin the amount of $10,000. We will be putting in $10,000 of our own money and borrowing the rest from family members. • This money will be used to attempt to contact more possible business customers, offer free trial memberships and demonstrations, and to help secure our future customers with a contract • We will give our investor(s) 15% percent of our business • Supplies such as a van, some equipment, and some cell phones for the business will be our up front costs. Once we are able to make sufficient funds, additional fitness equipment will be purchased.