1 | P a g e

Authored by Paul Stock

Contact:

Paul Stock 2409 Leo St. Apt B

Missoula, MT 59808 Tel: 360-265-0563

paul.stock13@gmail.com

Version #2

The components of this business plan have been submitted on a confidential basis. It cannot be

reproduced, stored, or copied in any form. By accepting delivery of this plan the recipient agrees to

return this copy of the plan. Do not copy, fax, reproduce, or distribute without permission.

EDUCATE.TRAIN.COMPETE

Next Level Athletics

2 | P a g e

Table of Contents 1.0 Executive Summary……………………………………………………………………………………………………..3 2.0 Company………………………………………………………………………………………………………………….….4 3.0 Product……………………………………………………………………………………………………………………….4 4.0 Marketing Analysis……………………………………………………………………………………………………..7 5.0 Competition………………………………………………………………………………………………………………..9 6.0 Marketing Plan……………………………………………………………………………………………………………..10 7.0 Operations…………………………………………………………………………………………………………………..10 8.0 Financial Planning……………………………………………………………………………………………………….12 8.1 Offering……………………………………………………………………………………………………………………….12 9.0 Next Level Athletics’ Staff ………………………………………………………………………………………….. 13 10.0 Appendix………………………………………………………………………………………………………………….. 14

3 | P a g e

1.0 Executive Summary

70% of High School athletes in Missoula County, Montana desire to compete in a specific sport at the collegiate level. In order to compete with the nation’s best athletes, 85% of the same community of athletes, approximately 2500 individuals, looks to professional trainers for help increasing performance outside of their school coaching staff. Missoula County currently offers only six trainers who are certified greater than NASM-CPT, the minimum personal trainer certification, and have experience with collegiate athletes. Next Level Athletics is a services company that prepares young athletes to compete at the college level by former professional and collegiate athletes. The service allows individuals to gain an edge on their competition through innovative training practices utilized in college and Olympic training facilities. Currently, the company has three trainers on staff working with 16 athletes one on one and eight more athletes developing their skills in a speed camp.

The state of Montana is known in the collegiate athletic community as a top state to recruit naturally bred athletes. Although a smaller state by population, there are many athletes in the Montana region who have potential to compete on a national level. The weakness lies in the lack of knowledge in training that is essential in sculpting these young competitors to compete against athletes who come from areas that are ahead of the curve in training.

Next Level Athletics assembled a coaching staff, experienced in collegiate sports, which coaches, conditions, and educates athletes on the essentials needed to compete at a higher level. Its programs are designed specific for athletes who desire to compete in college. These programs have been tried and tested with great success in markets where a high percentage of athletes have continued to play at the colligate level.

Next Level Athletics seeks an excellent opportunity in an attractive market where competition

has not yet successfully captured control. This will be achieved by focusing on innovative

training techniques matched with personal oversight of athlete’s performance on the field to

better market individuals to college programs.

1.2 Offering

Next Level Athletics is looking for a five year loan of $10,000; this will enable the company to

begin fulltime operations in Missoula County by August 2012. The annual return for the

investor will be 16%. The loan will be used to purchase and store proper equipment for

training, rent training space through local organizations, and prepare the necessary marketing

tools to advertise athletes to colleges.

4 | P a g e

2.0 The Company

Next Level Athletics trains young athletes to prepare for collegiate sports. We offer a variety of programs customized towards individuals to focus on improving their strengths and eliminating there weaknesses. These programs are adopted from professional trainers and our personal experiences in college and professional sports that have proven success for athletes already at the next level. Our attention will be focused on athletes who are between the ages of 12-20 in the state of Montana who are training to compete in college. We will market to these customers by establishing relationships in the community with people who are already involved in athletic training. Our business model focuses primarily on improving high school student athlete chances of performing at the colligate level. Mission Statement Our goal at Next Level Training is to help athletes between grades 6-12 compete collegiately through conditioning, coaching and personal experience from our staff. Values through our Work Staff working for Next Level Athletics experienced a number of obstacles that relate to the work we offer. Being limited by the region in which we competed made it difficult to rise above the competition and reach our peak performance. These obstacles built a passion within to give back to young athletes by applying what we learned in college and professional settings to young athletes who are struggling with similar obstacles. Labeling All advertisement and apparel that markets our name will also state the company motto: educate.train.compete. Each word is individually key to the success of an athlete but together will allow Missoula athletes to reach the peak of their talent. 3.0 Product

Next Level developed a six segment training program that is the platform for preparing athletes to reach their maximum potential in college. These six segments, which are articulated in diagram 2.1, are equally important to develop the most complete athlete. There addition to our program was inspired by the creation of the perfect program and was developed through personal experience and interviews with university coaching staffs. The six segments that breakdown the foundation of our training program is:

Speed

Endurance

Strength

Flexibility/Mobility

Coordination/Balance

Mental Preparation

Educate.train.compete

5 | P a g e

Individuals who train on their own will rely on their strengths to be successful in competition. Our program encourages improving those strengths while eliminating an athlete’s weaknesses; the definition of a complete player. Universities look for athletes who are developed on all six levels so they can focus on the team’s overall performance. If an athlete has a weakness that can be exposed then the team will be exposed to the weakness. What differentiates our training program from others is our mental preparation segment because many trainers focus purely on the physical exercises conducted by the athlete. This vital part of training involves educating athletes on proper nutrition, game play decision making and most importantly why they do particular exercises in their program. Mental preparation is vital for an athlete’s success. Often, many players are eliminated from competition, not because of their athleticism, because they mentally cannot compete on the same level with athletes who understand why certain things are important.

3.1 Defining Six Segments of Training Model Speed; coordination of movement expressed at the highest force in the lease amount of time resulting in optimal displacement. This is one of the least developed segments in a training regimen for young athletes partly due to uneducated trainers believing it’s only a talent and cannot be coached. We at Next Level disagree with this assumption and educate our athletes on the development of ‘fast twitch’ muscles. Speed is a tool in athletics that is taught differently among the specific sport tailored to the athlete’s focus. An athlete who is training for football will condition for speed differently than an athlete training for basketball. “I have witness that most of the athletes in the town of Missoula, and other surrounding counties, tend to have a problem with human biomechanical movements”- Will Carter; Olympic Coach Endurance is another common tool to athletes that is misunderstood in training. Most uneducated coaches train their athletes to be able to last the duration of a competition.

6 | P a g e

However, an athlete who can perform at the end of a competition with the superior performance they did at the beginning of the competition will be truly superior to competition. Mobility/ Flexibility increases the amount of intensity an athlete brings to training. It is a crucial focus in training to eliminate injuries and allows athletes to gain more from each workout. This, stacked with a strong understanding of nutrition, keeps our athletes on the field longer and allows them to compete at their best longer. Coordination and Balance is the common terminology for body chemistry. Instruments used in competition such as route running for football or driving the ball in basketball rely heavily on an individual’s understanding of their body. Successful athletes such as 2011’s NBA MVP Derrick Rose depend heavily on his body chemistry to win games. Arguably one of the best guards drives the ball to the hoop, most of his training off the court focuses on coordination and balance on the ground and in the air. Mental Preparation is the intangible that separates all superior athletes in the collegiate level. Above being in peak physical shape, training builds mental stability for athletes to perform at their best. Next Level Athletics works with their athletes to answer the question WHY when working through all workout routines. We build the comparison of particular drills to what the athlete will see in competition. This builds confidence in the athlete and helps motivate the athlete to perform outside of their comfort zone and reach their true potential.

3.3 Nutrition In an attempt to increase performance, youth athletes are encouraged to look towards supplementation to gain an edge on competition. A recent study done by the department of human health and performance at the University of Prince Edward found that 6% of high school

athletes have experimented with growth hormones (steroids). The study also found that 22% of high school athletes over

supplement their diet which results in injury and reduction in maximum performance.1 We will educate our athletes on proper dieting to reach maximum performance. The athletes will hold a 7 day

journal which records all food and drink intake. This will be used to improve the performance of an athlete and reduce

injury during rigorous workouts. 3.4 Film Preparation/ Marketing Package It is essential for athletes to market their performance for school’s to gain interest. One tool required by colleges is film of the athlete’s talents during competition. Many athletes don’t

1 Supplements used by Youth Athletes, University of Prince Edwards,2009

7 | P a g e

have the time or the knowledge on how to go about putting together this film. We construct a marketing package that presents the athletes best performance and accolades on a digital copy. Then we will send these to schools and use our personal network to open communication with the athlete and increase interest in recruitment. 4.0 Marketing Analysis

“I found it difficult to compete with athletes of the same age from different regions of the country. I contribute this displacement to a lack of training resources in a state that focuses more on outdoor recreation than it does on professional athletics. In order to compete athletically on a national level Montana needs to focus on developing its youth earlier and more intensely.” –Travis Maier; successful three sport athlete recruited by Montana schools 4.1 Size There are over 3000 athletes in Missoula County that are between the ages of 12-18 who participate in Football, Basketball and/or Track. With studies showing that 85% of these athletes desiring some form of training outside of their coaching staff, we have a market size of 2500 athletes.2 This proves not only college bound athletes are looking for personal assistance but also athletes who want to gain a competitive edge on their competition in high school. The average amount an athlete pays a trainer to improve personal performance is $30 per session for 8 sessions a month. Excluding 3 months for competition, an athlete paying for these services would spend $2304 for nine months of the year. If all 2500 paid for these services the dollar amount of market size would be $5,760,000.3 Next Level Athletics expects to capture 10% of this market in 5 years. 4.2 Growth Currently the company is signing two athletes a month for athletic training services. We will continue this growth for the remainder of the year before looking towards other forms of advertisement to bring in athletes. As of April 28th we have been running an eight week speed camp with eight athletes. Our summer speed camp has fifteen athletes signed up with our prediction that the camp will run with 30 athletes. Also our Frenchtown team camp is expected to have a minimum of thirty athletes. Next Level Athletics will cater to other sport athletes (soccer, volleyball, tennis, wrestling, etc) in the future. Since we pride our business on a unique experience based training approach, we will only expand our sports training if first class trainers with unprecedented experience can be acquired. 4.4 Trends

2 Survey Analysis, Appendix Attachment,2012

3 Survey Analysis, Appendix Attachment,2012

8 | P a g e

Middle School and High School athletes in Missoula County have looked to private training as

an alternative to training with their school coaching staff. 40% of the athletes are already

paying for some type of off-season training while 73% participate in some form of camp every

year. Through survey we discovered that a majority of this training is through Peak Fitness.

From this market we also discovered that 81% of the athletes desire some form of outside

training other than there coaching staff. This shows that not only college bound athletes are

looking for personal assistance but also athletes who want to gain a competitive edge on their

competition in high school.

The above chart shows the amount of hours High School athletes are training outside of their

school practices with personal trainers. It is an increasing expectation that athletes must find

coaching outside of the traditional school setting in order to compete at a higher level. We

market to every athlete looking for additional training outside of traditional team coaching.

1-5 hours 6% 5-10 hours

11%

10-15 hours 17%

15-20 hours 38%

Greater than 20 28%

Hours Spent Training Outside of Practice

9 | P a g e

5.0 Competition

The greatest advantage Next Level Athletics has on its competition is our staff has competed in collegiate sports. This gives us the opportunity to train using the most innovative methods, surround athletes in the expectations of college coaches, and utilize connections with programs all over the nation. 5.1 Price Comparison

Competition Comparison Category/Company one on one Specialize in Athletes Video Price Crossfit/Missoula N N N 160/month Personal Trainers Y N N 35 to 50/ hour Athletic Trainers Y Y N 50/hour Momentum Athletic Training Y Y N 50/Hour Little Griz N Y N 75/season YMCA Camps N N N 150/camp High school coaches Y/N Y/N N free Hall of Fame Sports Academy N N Y 150/camp Bear Grass Productions N N Y up to 450/ athlete Next level Athletics Training Y Y N 30/Hour Next level Athletics Filming Y Y Y 250/Athlete Next Level Athletics Camps N Y Y 240/Athlete

Above is comparison of what competition offers and their pricing structure. By providing a complete package for athletes, we are able to allow the athletes to focus purely on training, learning, and preparing for the collegiate level while Next Level Athletics focuses on getting the athlete collegiate recognition. Athletes currently have to go through multiple programs to have one on one training camps to learn more about their particular sport and construct film to send to colleges during recruiting season. Although our camps are more expensive for athletes, they are tailored to increasing athlete performance and offer reduced prices if they sign on their teammates. 5.2 Major Players Our major competitors with training athletes are high school coaches and personal trainers at

the Peak Fitness Center. Through surveys we discovered that 22% of athletes who already pay

for services outside of their team work with trainers at the Peak. Their advantage is having a

facility to train all their athletes while marketing their services through the name Peak Fitness

Center. Having the facility for training does increase their costs for services which increases

their pricing for Missoula athletes. Next Level Athletics provides its services without any fixed

facility, allowing for our costs only to be renting field and gym space, which reduces pricing for

services.

10 | P a g e

In order to compete High School coaches have offered their services outside of traditional

practice settings to increase their athlete’s performance. Although they do not charge for these

services they are limited by NCAA regulations in how they can help athletes. As we market in

schools, we have been able to establish positive relationships with these coaches. This earned

the company their encouragement for athletes to seek out our services to improve the team’s

overall performance. Working with these coaches will continue to increase growth and remain

an asset for the company.

6.0 Marketing Plan

Currently Next level Athletics has collected its clientele through word of mouth. Athletes have

seen the positive changes made by fellow team mates and have signed on with the same

intentions. We also have communicated with coaches throughout Missoula County to help

with additional off season training for their athletes; one example being a summer speed camp

with Frenchtown’s track. We currently have 22 athletes signed and are expecting 20 more to

follow suit for a camp total of around 45 athletes.

The company will advertise its summer speed camp through multiple announcements. An

article will be placed in the Missoulian to reach parents who are looking for a summer program

to help develop their kid’s skills for fall sports. We also have fliers placed at the local YMCA and

Park and Recreation facilities. Both organizations will have our speed camp advertised on their

websites by May 16th.

Next Level Athletics will have a company website uploaded on May 16th to update our athletes

on upcoming events and will be a reference point for future athletes. The website will include

a personal schedule for athletes to monitor their workouts, personal goals and events. The

website will also feature personal profiles of athletes tailored for recruitment, designed for

colleges to monitor an athlete’s performance. This will include accolades, training routines and

school performance. Having a personal profile follows NCAA regulations and allows universities

to gain information on particular athletes during off season when recruiters are not allowed to

communicate with the athletes.

7.0 Operations

Our advantage in operations is offering a complete package to college bound athletes matched

by trainers who are experienced in collegiate recruiting; eliminating any errors when marketing

to colleges. Not only will we improve the individual’s athleticism through conditioning, but we

will improve their skills through workshops, educate the athletes on the six sigma training

model, and market the athlete to colleges all over the nation.

11 | P a g e

One on one training with athletes comes in two forms, conditioning and skill development.

Both are tailored for off-season focus, where athletes can push their bodies without adjusting

their schedules to school events. Both forms will be paid hourly with a minimum requirement

of two sessions a week. Because athletes do not compete all year, this will be a consistent cash

flow for our business.

Skills camps and team camp’s primary goal is to identify strengths and weaknesses and focusing

on how to improve both. These types of camps are a four day event that is broken into

morning and evening sessions. We currently are scheduling a team camp for Frenchtown Track

and Field at the beginning of June. Along with their coaching staff, 22 athletes have committed

to the camp by placing a down payment of $50 dollars. We expect a turnout of 45 athletes in

total from the team through discussing the camp at their practices.

The second camp that is in negotiation is a football camp with Big Sky High school’s football

team that will be ran sometime in July before they are required to participate in their school’s

team camp. This is on the condition that enough funding is raised to provide the proper

equipment for the camp.

Camps will be run during the different seasons of competition. Our Focus for 2013 is to have 6

successful camps, three being skills and conditioning camps while the remaining three camps

are team camps involving Frenchtown Track and Field, Sentinel Girls Basketball and Big Sky

Football.

7.1 Business Cycle

1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

One on One

Team Camps

Big Sky H.S Football

Frenchtown TandF

Sentinel GBB

Skills Camps

Above is a simple timeline of our first year schedule. This includes full year one on one personal

training, three scheduled team camps, and four speed/skill camps that will begin and end

before each scheduled high school season. Our goal for year two is to increase team camps,

and continue growth in personal training of athletes.

12 | P a g e

Our business model does not require owning a facility to train athletes. Costs are minimal for

renting school facilities and field space. These are budgeted in our Pro Forma and will be

discussed further in the Financial Planning section of the proposal.

8.0 Financial Planning

The following information includes highlighted financial information key to an investor’s

decision. The information is shown in more detail throughout our Appendix section of the

business proposal including detailed expense report, current income and all predicted financial

records.

8.1 The Offering

Next Level Athletics is seeking a loan for $10,000. This investment will allows the company to

purchase the necessary equipment for our summer camps and pay the following two months of

rental fees for a storage unit and training facility.

Source of Funding Use of Funding Investment loan $10,000 Equipment $6,616

Rental Fees $1,280

Storage Unit $160

Total $10,000 Total $8056

Projected Figures

The following figures are the projected profit before taxes. Year one are actual figures while

the following four years use a historical growth rate of 2 athletes a month paying for twelve

hours of service. This growth rate comes from the previous five months the company has been

in business. In addition to the 2 athletes, Year 2 reaches max capacity in athletes for our

summer skill camp. The projections do not include any additional camps that have been in

discussion.

Income Statement Projections Five year Projections at year end

Year1 Year 2 Year 3 Year 4 Year 5

Revenue $ 44,000.00 $ 99,600.00 $ 140,400.00 $ 165,600.00 $ 194,400.00

Total Expenses $ 36,318.36 $ 65,962.90 $ 91,523.15 $ 101,688.19 $ 120,615.56

Net Profit before taxes $ 7,681.64 $ 33,637.10 $ 48,876.85 $ 63,911.81 $ 73,784.44

13 | P a g e

9.0 Next Level Staff

Brandon Libunao played defensive back for Indiana University in the

Big Ten conference during the 04-08 seasons. He also Ran the 60,

200, and 400m on the track team for the 05-08 seasons. He briefly

had a stint with the St Louis Rams before pursuing a career in

insurance. Brandon has a passion for the game of football, and

wants to share the skills he developed in similar camps as a youth.

Brandon will design and oversee the workouts for our athletes,

have biweekly follow-ups and organize all seasonal camps.

Paul Stock was an all-state athlete in Football, Basketball and Track

during his High school career. He briefly played safety at

Washington State University before finishing his career at

Whitworth University. His career allowed him to train under

Olympic and professional trainers. Currently he focuses on

improving his coaching and educating young athletes. While

training athletes in our seasonal camps, Paul will be in charge of

running all of business operations. His education is in Finance and

he has managed the books for two companies.

Ceylon Elgin-Taylor Aka Junior played college basketball ball at

Irvine Valley Junior College before transferring to the University

of Montana where he had two successful seasons as their

starting point guard. After graduating, Junior made it his mission

to focus on the development of young basketball players in the

state of Montana through the Amateur Athletics Union (AAU).

His focus for Next Level Athletics is the progress of all basketball

players in the program, and monitoring the success of athletes in

competition.