Crossfit Bounceback

Business Plan for FISCAL YEAR 05

Contributors:
Patrick Jones: 10 Advertising & Marketing Strategies for Crossfit Gyms to increase
Enrollment
Mark Davis: Identifying and Managing Business Risks
Houston Department of Human and Health Services
Service Marketing Mix


Executive Summary
Mission statement
It is our goal to help everyone that enters our door to be in the best shape of their life.

Business opportunity
Crossfit is a form of exercising that was introduced in the early 2000s and since then it has
grown. There is a large quantity of Crossfit establishments but the quality is few and far between.
Crossfit Bounceback will provide customers with a good quality crossfit experience.

Financial projections
The projected annual sales are 98,280. This number depends on solely if we are at a 100
members by the end of our first year and using an average of the total monthly member fees.
























Industry Environment
Overview of the industry
There is not one demographic that can be targeted when it comes to Crossfit. It is something that
has become universal and has grown to millions being a part of the community within the last 14
years that is has started.

Projected position for the future
Crossfit Bounceback would like to be one of the elite crossfit gyms in the North Houston Area.
We would like to maintain about 70-110 members at all times. The reason I would like to stay in
between those numbers is because if it gets any higher there is the potential that it will lose the
community feel that we are striving to have.

Potential customers
Crossfit Bouncebacks potential customers are males and females between the ages of 13-90 and
the median household income ranges from $50,000 and upwards. The reason why the
demographic is so large is because Crossfit is built for everyone. However, I will start with
focusing on families and business people in the area between the ages of 25-45.

Direct competitors
[Fiscal Year 2005]


Crossfit
Silverback
Ball & Chain
Crossfit
Behemoth
Crossfit
Crossfit 1525
Sales $168,000 $136,500 $118,800 $123,675
Net
Profit
(Loss)
$80,000 $40,000 $35,000 $55,00
Employe
es
6 4 2 18
Market
Share
30.71% 24.96% 21.72% 22.61%

Marketing
Business opportunity
The Behavior Risk Factor Surveilance System reported in 2012 Houston has an obesity rate of
66% (www.dshs.state.tx.us). The difference between this crossfit box and others and gyms is the
results and services we provide. People who are out of shape need a place to come to where they
are welcome and they will see their hardwork paying off.

Company impact
I will follow the 7Ps.
Place-the location will be a storefront next door to a medical office.
Promotion-I will use resources such as Facebook, FitnessTexter, and the internet to promote my
business. I will offer free trials to get people in the door. Offer deals through Groupon or Living
Social to allow people to receive a discount on the service until they feel like this is something
they would like to commit to.
Pricing-I will make my prices competitive with other boxes initially. This will be a great idea
until our credibility is established and our membership numbers are constant.
People-Initially, I will be the only coach until we have enough members to support another
coach. I will pursue recurring training every 3 to 4 months to help stay current with movements.
Process-Our main focus is to provide a unique crossfit experience to our customers. We will
motivate and encourage our members to hone their skills and strive for excellence with each
workout.
Physical Evidence- Appearance is everything so we will strive to keep a clean and healthy
environment for our members to strive for excellence.
Company strategy
Crossfit Bounceback will create a Facebook page and recruit all of their friends and family to
spread the word. There will be a referral discount for the first three months for anyway they refer
that purchases at least one month membership. Then, we will connect with surrounding
businesses and offer a discount to all the employees and ask if they will display our posters in
their business. Get out into the community and sponsor a youth league. Our target market is
males and females that earn at least $50,000 and there is a good number that could be found at
kids youth league games.

Benefits matrix

Customer Pain Points Benefits
Childcare We will provide a childcare area w/babysitter
Active coaches Our coaches will be active in all classes
Convenient hours
We will do a survey every month to
accommodate members
Showers Provide showers for members
Nutrition Have a nutritionist on hand for all members
Snackbar
There will be a snackbar available for pre/post-
workout, drinks, and healthy foods
Open gym
Provide open gym to all members so they can
work on movements














Operations
Organizational structure
Our internal organization structure is fairly simple. I will be the owner and the coach. Since the
success of our business solely depends on getting people in the door we will gradually bring
employees on once our membership grows.

Capital requirements
Cash and equipment are our biggest capital requirements. We are estimating about $40,000 for
initial equipment and the equipment purchases after the initial purchase will depend on the
number of members. We are not expected to turn a profit until month 10 so we would like to
have our monthly bills pre-paid for the first nine months. Lastly, we would like to have at least
$20,000 on reserve for any emergencies that may arise within our first year.

Core operations
To combat the risk of customers getting hurt during their workout we will have them sign
consent forms. The consent forms will release us from any legal actions being taken against us.
A big part of crossfit is teaching the customers to perform the movements correctly so they will
not get hurt. We will offer an introductory course to get customers familiar with the movements
and as they become more familiar with the movements we will encourage them to lift lite until
they are comfortable with the movements. Another risk we need to plan for is flooding. We are
located in Houston and they are known for their rain and being in the line of fire of hurricanes.
The preventive measures that can be taken aside from flood insurance those measures will be
taken. Since we are offering childcare we will also need to have customers sign a waiver to for
their kids.







Financial Projections
Once we reach about 45 consistent members we would have met our break even point. The
attached excel sheet shows at 45 members with an average member fee of $189 we will be
pulling in $8505. Below is a list of our fixed and variable cost:
Fixed
o Rent, $2640
o Utilities, $400
o Insurance, $600
Variable
o Cleaning Supplies
o Equipment
Our monthly fixed costs total, $3640. If you take a look at the attached spreadsheet you will see
that we pass the total of fixed costs at 20 members but we must be cognizant of our variable
costs.
Initial Startup Fees
Equipment-$40,000
Patent-$2,500
Affiliate Fee-$3,000
Sign-$5,000
Permits- $10,000







References
Davis, M. (2009, November 26). Identifying and Managing Business Risks. Retrieved from
http://www.investopedia.com/articles/financial-theory/09/risk-management-business.asp
Houston Department of Health and Human Services. (2012, November 13). Retrieved
https://www.dshs.state.tx.us/obesity/Houston-Department-of-Health-and-Human-Services.doc
Jones, P. (2014, May 27). 10 Advertising & Marketing Strategies for Crossfit Gyms to Increase
Enrollment [Web log post]. Retrieved from http://boostfitnessmarketing.com/blog/10-
advertising-marketing-strategies-crossfit-gym/
Service Marketing Mix. (2014, June 11). Retrieved http://www.marketing91.com/service-
marketing-mix/