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HomeMy WebLinkAboutAdministrative Permit APX2012010 - Project Description•• RED WOLF CROSSFIT (RWC)RECEIVED AUG 2 8 2012 EXECUTIVE SUMMARY Dept of Planning & Bui ding CrossFit opened its first gym in 2001. Eleven years later there are over 4,000 CrossFit affiliates worldwide. CrossFit is used by numerous Military, Police, and government agencies including the U.S. Navy SEALs, Marine Force Recon, U.S. Army Airborne Rangers, U.S. Army Delta, and the CIA Special Activities Division. The CrossFit Games started in 2007 which has grown exponentially in the past five years. Reebok officially sponsors CrossFit with a $io,ooo,ooo contract for the CrossFit Games. Huntington Beach California is the largest beach city in Orange County. There are over 200,000 people residing within a five-mile radius of the anticipated facility location. There are only five CrossFit gyms in the surrounding area compared to over ten CrossFit gyms in the Costa Mesa / Newport Beach area. Red Wolf CrossFit plans to operate at 7383 Harriman Circle, which is close to the main street Beach Blvd. Several services will be offered including personal training, Olympic weightlifting, and CrossFit classes for kids. Red Wolf CrossFit targets an extremely wide demographic spanning children and teens to rehabilitation clients and elite athletes. This business plan confirms the profitability of Red Wolf CrossFit based in Huntington Beach. Several areas were analyzed including projected goals, risks, implementation, and a competitive analysis to evaluate Red Wolf CrossFits market position. Projected cash flows confirm that Red Wolf CrossFit to be a successful addition to the local fitness market. The surrounding area north, south, east, and west of 7383 Harriman Circle are Automotive repair/collision centers, industrial warehouses, the Huntington Beach Sports Complex, Public Storage, and several small warehouses and business' in the adjacent area. Red Wolf CrossFit requests the application of the Administrative Permit - Personal Enrichment to operate a health and fitness gym within the city of Huntington Beach, CA. INDUSTRY PROFILE The US fitness centers industry includes approximately 22,000 companies and non-profits that operate an estimated 30,000 fitness and recreation centers with combined annual revenue of over $21 billion. This industry has been identified as labor intensive and offers average annual revenue per worker of approximately $35,000. Major services include facilities for aerobic exercise and weightlifting. Also popular are running, swimming, racquet sports, yoga, karate, and basketball. The attrition rate has been identified as being between 35 to 50%. Having an attrition rate this high requires constant recruitment. Member payments include an initiation fee and annual or monthlylkes . Several business challenges and opportunities have also been identified. Red Wolf CrossFit will exceed the average industry in the majority of identified business challenges. This is a direct result of constant research, high trainer requirements, dedication, motivated clientele, and constant supplementary services being added to the service list. COMPANY INFORMATION Red Wolf CrossFit ownership is comprised of three partners who are highly educated and experienced CrossFit trainers. Each partner is well known within the CrossFit community. Each staff member brings an abundance of knowledge in human performance, business growth, and management. The owners have developed a training philosophy that focuses on community support, natural movement, variance, and nutrition. Matt Banwart has five years of CrossFit experience. He was the Director of Training for Orange Coast CrossFit one of the largest CrossFit gyms in Orange County. Matt was also provided support in the execution of the 2012 OC Throwdown which was the largest CrossFit competition outside of the Reebok CrossFit Games. Competitive by nature Matt regularly competes in local CrossFit competitions and has been a SoCal Reebok CrossFit Games Regional competitor for the past two years while being sponsored by the company WOD Gear. Adam Quick has four years experience in the CrossFit community. He is currently the Director of Sales for DC shoes and a former action sports motocross athlete. Vincent Kong is currently a police officer in the Long Beach Police Department. He has four years experience with CrossFit and has been a SoCal Reebok CrossFit Games Regional competitor the past two years. Services will include personal training, group training, Olympic Weightlifting, mobility, rehabilitation, nutrition planning and guidance, and efficiency of human movement seminars. Clients are encouraged to train multiple times per week. A nutrition plan is included with any unlimited membership to accommodate the client's new life style. RED WOLF CROSSFIT SERVICES Red Wolf CrossFit will prove to be Huntington Beach's #1 provider of high-level fitness training. The philosophy is to coach clients to move better through practice and to use novelty, intensity, and instruction to create a fun environment of constant progress. The ability to provide increased education on human performance is the primary goal for both coaches and clients. Red Wolf CrossFit will offer a variety of programs. Group training in a class setting will be the primary service offered. Group classes will be limited to 10 athletes per class to ensure quality instruction. Each class will last exactly one hour. Personal training will be offered to athletes who wish to train one on one with a coach. Seminars will be offered at an additional fee. Seminar subjects include but are not limited to, Olympic Weightlifting, strength training, gymnastics, nutrition, and mobility. Community events will be offered to build camaraderie and gain new members. Community events include, barbeques, competitions, and member appreciation day. Red Wolf CrossFit will be operating Monday through Friday between the hours of 6am and 7Pm. Saturday and Sunday between the hours of 8am and loam. There will be several fitness group classes in the morning, and majority of the fitness classes will be operating during the afternoon. MARKETING STRATEGY Red Wolf CrossFit owners have determined over the past five years of professional experience that the CrossFit program is fully capable of selling itself. Data has shown that client's referrals are the main source of new clients and will continually grow exponentially over time. Red Wolf CrossFit has a list of potential clients who are unsatisfied with the location or services of other CrossFit affiliates in the area. Members will be encouraged to bring friends at anytime to participate in one class at no charge. Red Wolf CrossFit understands that a good website leaves a lasting impression to the customer. Staff will manage a website that is updated daily with workouts, pictures, blog posts, videos, research information, and articles written by both Red Wolf CrossFit members and respected fitness professionals. A website will be key in creating a community within the gym. As part of Red Wolf CrossFit's grassroots marketing program, the staff and members will participate in a variety of charitable events throughout the year. Red Wolf CrossFit will donate prizes to fundraisers as well as conduct, plan, and coordinate, fundraisers. PROJECT PLANNING AND GOAL SETTING Red Wolf CrossFit will continuously add new programs to accommodate each member. SPECIFIC PROJECT GOALS: 1) Grow and diversify Red Wolf CrossFit's clientele by a minimum of 5% each month. 2) Support facility expansion as membership surpasses benchmarks. 3) Provide a professional service unseen in the CrossFit community by providing each client with a. Nutrition guidance b. Workout tracking c. One on one mentoring 4) Provide coaches with mentoring and growth opportunities. 5) Produce statistics and research reports to support marketing objectives. IMPLEMENTATI ON SCHEDULE Phase is Project Planning June 2012-July 2012 Solidify costs associated with opening a CrossFit Affiliate and sustaining cash flow for 24 months. Create a checklist of action items that must be accomplished in order to open a CrossFit facility. Phase 2: Project Execution July 2012-September 2012 Negotiate a lease for an ideal location. Purchase CrossFit equipment and other business related supplies. Obtain legal documents, permits, and revise project plan as necessary. Projected opening date is October, 2012 Phase 3: Project Expansion October 2012 to January 2013 Grow the business through market analysis. Focus on expanding the clientele and ensuring that expected revenues are generated. MANAGEMENT KEY MANAGEMENT PERSONNEL Matt Banwart , Founder The Red Wolf CrossFit founding partner, is well known in the local CrossFit community. Brings over five years of CrossFit coaching experience to the team. He is the former General Manager of Orange Coast CrossFit. Matt was a coordinator of the 2012 OC Throwdown which is was the largest CrossFit competition outside of the 2012 Reebok CrossFit Games. Vincent Kong, Co-owner A Long Beach Police Officer and certified CrossFit Trainer. Vincent is currently one of the top CrossFit athletes in Southern California. Vincent will be assisting in day to day operations as well as training clients Adam Quick, Co-owner Currently the director of sales for the DC skate company. Adam has been a CrossFit athlete for over two years and a coach for the last year. Adam will be involved with assisting day-to-day operations as well as training clients. RISK ASSESSMENT Red Wolf CrossFit has completed a review of possible internal and external risks: INTERNAL RISKS 1) Client Retention 2) Marketing initiatives fail to provide expected growth and returns 3) Loss of staff 4) Incur unexpected operating/capital expenses Injury S)Cash flow shortfall • 6) Injury to training partners and/or staff EXTERNAL RISKS 1) Decline in growth of CrossFit 2) Additional CrossFit competitors Once possible risks were acknowledged, Red Wolf CrossFit began evaluating feasible contingency plans to mitigate the shortfalls and to ensure sustainability of the Company. Case of hardship, the following contingencies will be executed: 1) Seek 3rd party investors 2) Invest personal equity 3) Redesign marketing initiatives to target a new demographic 4) Create additional services based on existing client demand; 5) Re-Evaluate class times and operating hours to become more convenient to clients Red Wolf CrossFit ownership is confident that appropriate measures have been considered and adopted to ensure successful project implementation and that goals will be met. RED WOLF CROSSFIT SERVICES: MISC PARKING Red Wolf CrossFit will be operating group classes between 7-10 clients.7383 Harriman Circle has 11 designated parking spaces. There will be 2,200 square feet of workout space designated for the group classes.