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Excerpts of BzBod, LLC concept, business design, and profit model
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Enabling health and fitness through technologyEnabling health and fitness through technology
Proprietary and Confidential © 2007 BzBod, LLC and BzBod.com. All rights reserved.
HighlightsHighlights
Overview Value Proposition | Business Concept
Management Founding Team | Credentials
Financials Pricing | Profitability | Milestones
Market Opportunity | Offering | Intellectual Property
Competition Competitive Advantage | Differentiation
Proprietary and Confidential © 2007 BzBod, LLC and BzBod.com. All rights reserved.
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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Proprietary and Confidential © 2007 BzBod, LLC and BzBod.com. All rights reserved.
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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Proprietary and Confidential © 2007 BzBod, LLC and BzBod.com. All rights reserved.
Business ConceptBusiness Concept
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Management Management
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
Proprietary and Confidential © 2007 BzBod, LLC and BzBod.com. All rights reserved.
Business ModelBusiness ModelManagement Management
OverviewOverview
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Connect
Profile and Track
Compare and Compete
See Results
Proprietary and Confidential © 2007 BzBod, LLC and BzBod.com. All rights reserved.
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.
Management Management
Overview Overview
MarketMarket
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Proprietary and Confidential © 2007 BzBod, LLC and BzBod.com. All rights reserved.
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.
Management Management
Overview Overview
MarketMarket
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Management Management
Overview Overview
MarketMarket
Proprietary and Confidential © 2007 BzBod, LLC and BzBod.com. All rights reserved.
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
Management Management
Overview Overview
MarketMarket
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Proprietary and Confidential © 2007 BzBod, LLC and BzBod.com. All rights reserved.
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)
Management Management
Overview Overview
MarketMarket
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Proprietary and Confidential © 2007 BzBod, LLC and BzBod.com. All rights reserved.
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
Management Management
Overview Overview
MarketMarket
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Internet Users
and many more…
Proprietary and Confidential © 2007 BzBod, LLC and BzBod.com. All rights reserved.
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
Management Management
Overview Overview
Market Market
CompetitionCompetition
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Proprietary and Confidential © 2007 BzBod, LLC and BzBod.com. All rights reserved.
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.
Management Management
Overview Overview
Market Market
CompetitionCompetition
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Proprietary and Confidential © 2007 BzBod, LLC and BzBod.com. All rights reserved.
Pricing ModelPricing ModelManagement Management
Overview Overview
Market Market
Competition Competition
FinancialFinancial
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Proprietary and Confidential © 2007 BzBod, LLC and BzBod.com. All rights reserved.
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
Management Management
Overview Overview
Market Market
Competition Competition
FinancialFinancialMarket Basket
PrimaryPrimary
PrimaryPrimary
SecondarySecondary
SecondarySecondary
Ads & Licenses
Data & Statistics
3%
3%1%
1%
Year 1
Year 3
Year 5
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Kids
Adults
Proprietary and Confidential © 2007 BzBod, LLC and BzBod.com. All rights reserved.
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
Management Management
Overview Overview
Market Market
Competition Competition
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
Proprietary and Confidential © 2007 BzBod, LLC and BzBod.com. All rights reserved.
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
Management Management
Overview Overview
Market Market
Competition Competition
FinancialFinancial
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Proprietary and Confidential © 2007 BzBod, LLC and BzBod.com. All rights reserved.
SummarySummary
"The best way to predict your future is to create it."
- Stephen R. Covey
Management Management
Overview Overview
Market Market
Competition Competition
Financial Financial
SummarySummary
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Proprietary and Confidential © 2007 BzBod, LLC and BzBod.com. All rights reserved.
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
Management Management
Overview Overview
Market Market
Competition Competition
Financial Financial
SourcesSources
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