Bz Bod LLC Business Proposal

Enabling health and fitness through technologyEnabling health and fitness through technology


Founding TeamFounding Team•• Justin Kwong | Operations and TechnologyJustin Kwong | Operations and Technology

Over 11 years of solid leadership experience. Established an impressive record of developing new functions within information technology. An expert in network engineering for 24 Hour Fitness, Inc. Former Captain in the U.S. Marine Corps. B.S. in Chemical Engineering and EMBA.

•• Scott Nelson | Operations and MarketingScott Nelson | Operations and MarketingMore than eight years of developing and marketing software products within the healthcare industry. Proven background in market analysis, product management and a consistent history of exceeding revenue targets. B.S. in Business Management and Information Management.

•• Terry Teo | Operations and FinanceTerry Teo | Operations and FinanceTen years of finance and pricing experience in healthcare arena. Proven track record in strategic development, business analytics, and financial modeling. Double major in Accounting and Finance. An MBA with international background and results-driven executive mindset.

ManagementManagement

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Presenter

Presentation Notes

Justin has over 11 years of solid leadership experience and an impressive record of successfully developing new functions within information technology. He was assigned as the Information Security Officer in 2004, developed the Quality Assurance, Software Configuration Management, and Network Engineering departments with 24 Hour Fitness, Inc. 24 Hour Fitness, Inc is a privately owned recreational services company with over 380 club locations, 18,000+ employees, and over $1.2 billion dollars of annual revenue. It has locations throughout the United States and Asia. Prior to joining 24 Hour Fitness, Justin was a Captain in the United States Marine Corps. He led hundreds of Marines to support the commanding general in architecting and building communication networks in the field and in garrison. Justin holds an Executive MBA from San Diego State University and a BS in Chemical Engineering from University of California, Berkeley. He is also a certified Six Sigma Black Belt and a Stanford Certified Project Manager.


Value PropositionValue Proposition

BzBod, LLC provides an effortless method for tracking, measuring and improving your health and fitness.

A social networking portal, BzBod.com provides users the ability to monitor their health, compare their results to others, and create customized fitness programs and meal plans. Users are able to download, store, manage and track their progress through this website. Additionally, it will be used as a link to many common fitness devices in use today.

Management Management

OverviewOverview

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Presenter

Presentation Notes

The best way to give an overview of your company is to state concisely your core value proposition: What unique benefit will you provide to what set of customers to address what particular need? Then you can add three or four additional dot points to clarify your target markets, your unique technology/solution, and your status (launch date, current customers, revenue rate, pipeline, funding needed). Key objective: Flesh out the foundation you established at the beginning. At this point, no one should have any question about what it is that your company does, or plans to do. The BzBod product is a revolutionary way to track heart rate, calories burned, and effort with a simple wireless weight scale; this weight scale could upload human physiological data through any internet medium. BzBod’s application and weight scale would give consumers the same access to health and fitness training materials, nutrition information, and tracking information as groups who utilize health clubs and professional fitness counselors. By using the wireless weight scale and Internet application, consumers would be able track their progress on workout regiment, workout routine, workout schedule, as well as health and nutrition statistics.


Business ConceptBusiness Concept

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OverviewOverview

SchoolsDonations

User Profile

Obesity Programs

Health Clubs

Gym Members

CorporationsSponsors

TV Networks

Teachers

Dietary Vendors

Manufacturers

Services

Public Users Parents

Health Profile

Meal TrackerMeal Plans

Social Network

Comparison Analysis

Goal Tracker

Health Thermometer

Heart Rate Monitor

Personal Network

Heart Rate Calculator

Weight Scale

Body MassMobile Device

Pedometer

Business Users

Kids’ ProductsFitness

ProductsHealth

Products

Insurance

Healthcare

Government Agencies

Research

KidsAdvertisers

AdultsData &

Statistics

Licenses Fitness Enthusiasts

Click- throughs

HMOs


Business ModelBusiness ModelManagement Management

OverviewOverview

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Connect

Profile and Track

Compare and Compete

See Results


Primary MarketsPrimary MarketsAdultsAdults

Track health and fitness through a single web site.Track health and fitness through a single web site.Compare current health to groups based on Compare current health to groups based on worldwide membership (age, gender, geographic, worldwide membership (age, gender, geographic, group, team, etc.)group, team, etc.)Ability to link personal devices to simplify updating Ability to link personal devices to simplify updating profile information.profile information.

KidsKidsMethod of addressing weight through an interactive Method of addressing weight through an interactive and technologicallyand technologically--based method.based method.Ability to allow parental monitoring of kidsAbility to allow parental monitoring of kids’’ activities activities and changes in health.and changes in health.


Overview Overview

MarketMarket

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Primary Market AvenuesPrimary Market Avenues

Health ClubsHealth ClubsDifferentiation by linking technology within a club to Differentiation by linking technology within a club to a virtual community.a virtual community.Ability to grow personal trainer segment, a focus of Ability to grow personal trainer segment, a focus of the the BzBod.comBzBod.com portal, and the highest profit center portal, and the highest profit center for health clubs.for health clubs.

SchoolsSchoolsCost effective method of partnering with industry to Cost effective method of partnering with industry to attack the epidemic of childhood obesity.attack the epidemic of childhood obesity.


Overview Overview

MarketMarket

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Overview Overview

MarketMarket


Market Market Opportunity RationaleRationale

Adults 42,000,000

Kids 47,000,000

Advertisers See Financial

License See Financial

Data/ Statistics See Financial

Market OpportunityMarket Opportunity

• Fitness industry is $17.9 billion• 29,000 health clubs in U.S.• 70% of population has access to

cell phones and internet• Public elementary and middle

school kids• 3 out of 5 kids have access to

mobile device

• Click-throughs, data or statistics collected for potential use

• Fee-based royalty charge• One time or percentage of revenue

• Fee-based ad space


Overview Overview

MarketMarket

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BzBodBzBod OfferingOffering

Social network intended to attract and keep Social network intended to attract and keep repeat visits through a variety of unique and repeat visits through a variety of unique and proprietary feature sets.proprietary feature sets.

Personal profile Personal profile ((Health Index, Personal Network, Health Index, Personal Network, Comparison Tools,Comparison Tools, Meal Tracker, Meal Planner)Meal Tracker, Meal Planner)

Automatic linkages with participating devicesAutomatic linkages with participating devicesWeight scalesWeight scalesBody Mass Index (BMI) devicesBody Mass Index (BMI) devicesGPS enabled mobile devices GPS enabled mobile devices (future phase)(future phase)Downloadable applications for mobile phones and Downloadable applications for mobile phones and PDAsPDAs (future phase)(future phase)BluetoothBluetooth enabled applications enabled applications (future phase)(future phase)


Overview Overview

MarketMarket

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Intellectual PropertyIntellectual PropertyPatent: A Living Body Variable Measuring Patent: A Living Body Variable Measuring System with Wireless Internet Access and System with Wireless Internet Access and Biometric AuthenticationBiometric Authentication

Patent Pending: #11835421 Patent Pending: #11835421


Overview Overview

MarketMarket

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Internet Users

and many more…


CompetitionCompetition

Performance

Pric

e

Bones in MotionBones in MotionDownload/ upload fitness Download/ upload fitness activity to BREW enabled activity to BREW enabled mobile phonesmobile phones

Garmin Training CenterGarmin Training CenterSoftware, webSoftware, web--based based trainingtraining

PodFitnessPodFitnessCustomizable workouts Customizable workouts to MP3/ IPodto MP3/ IPod

MytrakMytrak and and FitlinxxFitlinxxminimini--computer devices computer devices

Fair

Value

Line


Overview Overview

Market Market


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Competitive AdvantageCompetitive AdvantageProduct Agnostic BeginningsProduct Agnostic Beginnings

Creating a social web to provide users the ability to Creating a social web to provide users the ability to track, monitor and share their personal health track, monitor and share their personal health successes, negates some initial competitive concerns successes, negates some initial competitive concerns from established entities.from established entities.Subsequent development of site features enabling Subsequent development of site features enabling development of competitive products, also allows for development of competitive products, also allows for interconnecting interconnecting BzBod.comBzBod.com with existing entities.with existing entities.

Filling Gaps through DifferentiationFilling Gaps through DifferentiationPrimary competitors (GTC, BIM, Training Peaks) are Primary competitors (GTC, BIM, Training Peaks) are focused on focused on ““endurance athletes.endurance athletes.””BzBodBzBod primary focus is on typical fitness members, primary focus is on typical fitness members, expanding to adolescents via different avenues.expanding to adolescents via different avenues.


Overview Overview

Market Market


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Pricing ModelPricing ModelManagement Management

Overview Overview

Market Market

Competition Competition

FinancialFinancial

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Revenue OpportunityRevenue Opportunity

Subscription Subscription RateRate

Content Content Downloads Downloads

(Future Phase)(Future Phase)Penetration Penetration

RateRate

47 mil. $2.9547 mil. $2.95

Opportunity ProjectionTarget

2007 Market Size CountCount Price/ RatePrice/ Rate

42 mil. $5.9542 mil. $5.95

---- 3% 3%

---- TBDTBD

Assumes 50% of Subscribers Assumes 50% of Subscribers

Content Downloads Content Downloads


Overview Overview

Market Market


FinancialFinancialMarket Basket

PrimaryPrimary

PrimaryPrimary

SecondarySecondary

SecondarySecondary

Ads & Licenses

Data & Statistics

3%

3%1%

1%

Year 1

Year 3

Year 5

15

Kids

Adults


55--Year Financial ProjectionsYear Financial ProjectionsSource: Financial Model

0

8M

10M

2M

4M

6M

2009 2010 2011 2012

Bas

ed o

n 1%

Sub

scrip

tion

Rat

e

13,365 42,129 89,129 154,694 246,344Subscription

2007 2008


Overview Overview

Market Market


FinancialFinancial

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Penetration 2,673,000 5,358,000 7,990,000 10,575,000 12,690,000

$956 $2,234 $3,618 $5,027 $7,388YOY Revenue (in $000’s)

Cum

ulat

ive

Net

Inco

me

ROI = 79%ROI = 79%55--Year NPV = $6.1 mil.Year NPV = $6.1 mil.55--Year NI = $8.8 mil.Year NI = $8.8 mil.Payback = 16 months Payback = 16 months


MilestonesMilestonesSeed Round Series A6 ~ 12 months 12 ~ 36 months

Marketing

Management

Operations

Total

• Site Development

• Ongoing Operations

• Strategic Recruitment

• Initial Launch

• Expanded Launch

• Product and Licensing

$ 350,000$1,700,000

$ 600,000

$ 75,000

$ 75,000 $1,200,000$ 300,000

$ 500,000 $5,000,0005-Year Revenue Target …………………………………......…........ $20,000,000

$1,200,000

5-Year Headcount Target …………………………………………….…. $250,000


Overview Overview

Market Market


FinancialFinancial

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SummarySummary

"The best way to predict your future is to create it."

- Stephen R. Covey


Overview Overview

Market Market


Financial Financial

SummarySummary

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SourcesSourcesFitness Industry in 2006 is about $17.9 billion42,000,000 adults belong to health clubs29,000 health clubs in the US

International Health, Racquet and Sports club Association: http://cms.ihrsa.org/IHRSA/viewPage.cfm?pageId=149

47,000,000 public elementary and middle school kidsNational Center for Education Statistics: http://www.nces.ed.gov/pubs2002/snf_report/#4

70% of the population has access to cell phones and internet3 out of 5 kids have access to mobile devices

Cellular Telecommunications and Internet Association (CTIA)Internet World Stats: http://www.internetworldstats.com/stats2.htm


Overview Overview

Market Market


Financial Financial

SourcesSources

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http://cms.ihrsa.org/IHRSA/viewPage.cfm?pageId=149

http://www.nces.ed.gov/pubs2002/snf_report/#4

Bz Bod LLC Business Proposal

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