File - Brandon Allen's E

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Elite Athletics
2300 Valley View Lane Irving, Texas 75062
Business Plan
Brandon Allen
Cole Belew
Alex Garcia
Amanda Kissam
Makenzi Wassenaar
2300 Valley View Lane
Irving, Texas 75062
Dear Mr. Davis,
We would first like to thank you for taking the time to give us an opportunity to manifest
our vision of Elite Athletics through our business plan. Elite Athletics would like to offer your firm
the chance to change the lives of aspiring young athletes all over the state of Texas. It will take
caring hearts, such as yours, to give these children a second chance - a second chance to achieve
their dreams.
Every dream comes at a cost. With an investment of $250,000 with 30% ownership from
your firm, those dreams will become a reality. Aspiring athletes from the ages of 5-18 often
experience career-changing injuries. From broken bones to torn ligaments, many injuries take
kids off the field and into a doctor’s office, often far away from home. Here at Elite Athletics, we
have created a physical therapy center that is centrally located in school districts in the
Dallas/Fort Worth area that provide athletes a recovery plan close to home, at a low cost and that
provides an uplifting environment that gets them back in the game a better person than they were
before.
There is nothing out there quite like Elite Athletics. We distinguish ourselves above
competing physical therapy clinics by creating an environment where not only bodies are healed,
but so are hearts. With a large portion of our staff coming from a strong athletic background, our
therapists relate to more than the injuries, but to the game. We use our clinic locations, which are
strategically placed in the center of each school district’s athletic organizations, to provide a safe
place for athletes to travel to during or after school for treatment.
Elite Athletics is more than just physical therapy. Elite Athletics is for athletes, by athletes
where we encourage the communities to wrap their arms around aspiring athletes in hope for
their full potential to be achieved despite tragedy in the game. We believe that athletes are formed
by communities and therefore we will sponsor and assist in hosting community enriching
activities such as summer camps and health education courses.
With your investment you can guarantee that lives will be changed. Elite Athletics
promises to be an investment you are proud of. According to our projections, in 24 months we
expect you to get a complete return on your investment. That may seem like a long time, but the
return on your investment that is immediate will be the athletes you help us create a lifelong
impact upon.
We want to thank you again for taking the time to look over our business plan. We hope
that through our thoughts, projections and plans you too will be inspired to change the lives of
many one fixed injury at a time.
Sincerely,
Elite Athletics
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Confidentiality Notice
This agreement is to acknowledge that all information within this business plan, provided by Elite
Athletics, is exclusive to this business and confidential; therefore, anyone reading this plan agrees
not to disclose or reproduce any of the following information without the written permission of
Elite Athletics.
It is also understood by the reader that the following information provided in this business plan,
other than the information that is in the public domain, may cause serious harm or damage to Elite
Athletics and will be kept in complete confidence.
Upon request, this document is to be immediately returned to Elite Athletics.
Signature _____________________________________________
Name (printed) ________________________________________
Date __________________
3
Table of Contents
I. EXECUTIVE SUMMARY …………………………………………………………………..……………………...…….6
Description of the Business Concept and the Business ………………………………………….6
The Opportunity and Strategy……………………………………………………………………………...6
The Target Market and Projections ………………………………………………………..……………6
The Competitive Advantages ………………………………………………………….…..……………….7
The Goals, Potential, Profitability, and Future Plans ……………….….……….………..……….7
The Management Team and Organization ………………………………………….…………….…..7
The Offering ………………….…………………………………………………………………………………….7
II. THE COMPANY AND ITS PRODUCT/SERVICE ………………………………………………….…………..8
Company Mission Statement ………………….……………………………………………………………8
The Industry ……………………………………………………………………………………………………….8
Service …………………………………………………………..………………………………………………….10
III. MARKET ANALYSIS ………………………………………………………………………………………….…….12
The Target Market ……………………………………………………………………………………………12
Market Size and Trends ……………………………………………………………………………………..13
Competitors and Competitive Advantage …………………………………..……………………….13
Estimated Market Share and Sales …………………………………………………………………….13
IV. MARKETING ……………………………………………………………………………………………………..……14
Overall Sales Strategy …………………………………………………….………………………………..14
Pricing ………………………………………………………………………….………………………………16
Service and Warranty Policies ………………………………………………………………………..16
Advertisement and Promotion ……………………………………...………………………………..14
V. OPERATION, LOCATION AND FACILITIES ………………………………………………..………………..16
Operation ………………………………………………………..…………………………………………..17
Location ………………………………………………………………..…………………………………….17
VI. MANAGEMENT AND ORGANIZATION …………………………………………………………..…………..18
Ownership ………………………….……………………………………………………………………….18
Key Management and Employees …………………………………………………………………18
Company Structure ……………………………………………………….……………………………..18
Compensation/Benefits ………………………………………………………………………………..18
Roles and Responsibilities ……………………………………..…………………………………….18
Employee Agreements…………………………………………………………….……………………18
VII. FINANCIAL PLAN …………………………………………………………………………………………………..18
Budgeting Plans ……………………………………………………………………………………………19
Highlights of Financial Statements ………………………………………………..………………19
Breakeven Analysis ………………………………………………………………………………………25
VII. CRITICAL RISKS AND CONTINGENCIES …………………………………………………………………..27
Potential Problems, Risks and Remedies……………………………………………..………27
Alternative Courses of Action ……………………………………………..………………………27
IX. HARVEST STRATEGY ………………………………………………………………………………………………28
Long Terms Plans ………………………………………………………………………………………28
Successors …………………………………………………………………………………….……………28
X. OVERALL SCHEDULE AND TIMELINES ……………………………………………………………………..28
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Timing and Objectives ……………………………………………………………………………28
Deadlines and Milestones ……………………………………………………………………….28
XI. APPENDICES ………………………………………………………………………………………………………...…29
Resumes ………………………………….…………..………………………………………………30
Financial Statements ………………………….…………………………………………………35
Research ………………………………………………………………………………………………35
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I.
EXECUTIVE SUMMARY
a. Business Concept and the Business
i. Elite Athletics is a company who’s mission is to serve as a stage for caring
therapists who are passionate about getting athletes back on the playing
field, to provide specialized services to young athletes all over the state of
Texas, and to support public school districts and their communities. When
injured, an athlete would not only like to see his or her doctor take the
injury and recovery process seriously, but also help him or her get back
out, playing their sport, feeling encouraged and stronger than before the
injury. We take the physical therapy portion of an injury and provide our
patients with best care and encouragement an athlete would need to return
to their sport not only fully recover, but stronger than before.
b. Opportunity and Strategy
i. When an athlete is injured they spend more than enough time going from
one medical facility to the next. Elite Athletics provides one centrally
located facility near the school district’s athletic field house for each
school district to help save on drive time to physical therapy; the portion
of the healing process that typically takes the longest. All of our staff will
be required to have some sort of athletic background in order to truly
understand what our patients are going through and to know the best way
to help and encourage them. By providing a building in each school
district that we contract with, we will be able to meet all of the needs
discussed above and at a lower cost than most medical facilities because
we have teamed with the school districts who have already paid a
determined price in the contract to help cut back on some of the costs for
the students and their parents.
c. Target Market and Projections
i. The target market for Elite Athletics is school districts with strong athletic
programs. This will allow us to cater to all the students within a school
district from middle school through high school. Once a contract is signed
with a school district, Elite Athletics’ portable building will be built
central to all the schools in that district. Build time for this structure will
only take a day because the building will be transported in on semi-truck.
This building will facilitate the medical staff and equipment necessary to
help the athletic students of that school district. During the school year,
hours for the building will be 7am to 7pm Monday through Friday. During
the summer, the facility will be open Monday through Thursday from
10am to 5pm.
ii. We plan on beginning in the Dallas/Fort Worth area by selling our service
to one of the top school districts in this area: Allen. We will focus on the
Allen school district for about three years before beginning to expand to
other school districts. When we begin to expand, we will expand two
school districts per year. Other top school districts we plan to expand to
include: Southlake Carroll, McKinney Boyd, Arlington Martin, Mansfield,
and Colleyville Heritage and Coppell. As our business continues to thrive
we also plan to expand to the top ten school districts in the Dallas/Fort
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d.
e.
f.
g.
Worth area which includes: Tyler Lee, DeSoto, Flower Mound Marcus,
Lake Highlands, and Allen.
Competitive Advantages
i. Elite Athletics is the only physical therapy company that contracts with
school districts in the state of Texas. We have a competitive advantage
over other medical facilities because we will be centrally located for each
school district, so our patients won’t have to worry about driving to
another town to receive therapy. We are teamed with the school districts,
so costs for treatment will be lower compared to independent medical
facilities. Also, students that qualify for state free/reduced lunches will
receive a highly discounted rate for our services at 60% off the regular
price. Last, all of our staff has a background in athletics, so they
understand the students’ needs and passion for their sport. This will lead to
better care and motivation for the students.
Goals, Potential, Profitability and Future Plans
i. In order to help keep our costs as reasonable as a medical venture can be,
we plan to start focusing solely on physical therapy. After students’
injuries are diagnosed by a physician, and the recovery process is
determined, if there is physical therapy involved, students can come to us
for help with the aide of the school district. There we will be able to
provide these young patients with the physical therapy they need by a
medical staff that all come from some sort of athletic background. This
provides deeper understanding of the injuries these students are dealing
with and the motivation young children and teenagers need to continue
their fight to get better and become the best athlete they can be. Too often
doctors and medical staff don’t understand an athlete’s mindset and
dedication to the sport, and therefore don’t take an athlete’s injury as
seriously as the should, thinking that the athlete will end up hurting
themselves again before long. Our company will curb that problem.
ii. Long-term wise, as our company continues to expand and grow we would
like to see it become a place not only for physical therapy, but also for
diagnose and repair, therefore making it a three step program. This will
include an increase in all costs. It will require more staffing, larger
facilities, and more equipment. On the other hand, it will increase profits
because contracts with each school district will demand more money to
cover these added costs and conveniences to the school districts.
Management Team and Organization
i. Each facility will have four to five physical therapists, two to three
physical therapy assistants, and a two secretary. Our business includes five
partners, who will work from an office in Dallas, but who will frequently
visit our various locations. Each partner will pitch in a fair amount of cash
making a grand total of twenty percent stake, and the remaining eighty
percent will be covered by investors and an equity loan.
The Offering
i. Our goal is to sign contracts with individual school districts within Texas
that will determine a dollar amount the school district will pay us in
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II.
exchange for physical therapy for their athletic students. The amount
collected from the school district will go towards having one of our fullyfurnished facilities in their district, our medical staff, and the cost for some
of the therapy. A remaining copay may have to be met by each individual
patient depending upon what they are being treated for.
THE COMPANY AND ITS SERVICE
a. Company Vision and Mission
i. The mission of Elite Athletics is to serve as a stage for caring
therapists who are passionate about getting athletes back on the
playing field, to provide specialized services to young athletes all over
the state of Texas, and to support public school districts and their
communities. Elite Athletics is committed to excellent treatment and
rehabilitation for athletes by athletes.
ii. Our Mission is achieved through:
1. Skilled therapists and assistants that have a background in a
sports field
2. Provide a service to athletes that is second to none in getting
our athletes back on the field
3. Convenient locations and hours that will enhance the flexibility
of our company and give our patients a more convenient time
frame
4. Variety in the age ranges and specific sport our doctors
capture.
5. Become well-known in the community by word-of-mouth and
being a leader in the community
b. The Industry
i. Overview and background
1. Physical Therapy service is considered to be a $19 billion
dollar industry and is steadily growing at a projected annual
growth rate of hired employees at 5% or
higher.(www.corporate.usph.com) Average cost of a start-up
clinic is around $170,000 with the clinic seeing profit within
the first 6-12 months and payback within two years.
(www.ibisworld.com). As of now, are star-up cost show that
we will be a below average start-up physical therapy company,
mainly due to the fact that our contract with Allen I.S.D. states
that they will provide the modular building to place on the
school districts property in a balance distribution from their
middle and high schools in the district. Elite Athletics will be
considered a below average start-up clinic since we plan on
cutting a lot of our overhead costs by asking the school district
we are located in, to cover the cost of the land and building in
the district. Our industry is one that doesn’t have a lot of
competition or companies entering into and we will have that
advantage over other companies that aren’t cooperating
directly with school districts.
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ii. Key Success factors
1. Some of the key success factors of this industry are to have a
niche which is to cover middle and high school athletes yearround in their school sports. The quality of the service done by
our doctors and assistants can make or break our company,
and also the personality of our employees is a big success
factor. We have to have employees that treat each
customer/patient equally and are understanding to their needs
and mental toughness level. Our buildings are another key
factor to help us succeed in our business because of their
mobility. Being able to move and place our modular building
virtually wherever we want give us a big upside when other
clients want to partake in our services or, if we move our
building from one contract location to another.
iii. Other key success factors include:
1. Focusing on the patient
2. Educating patients/parents on the injury and preventive care
for the future
3. Becoming a role model in the community
4. Creating a relationship with our customers and their parents
iv. Future Outlook
1. The outlook of Elite Athletics has a great upside to it and looks
to maintain a stable long-term relationship with the Industry.
Recent demographics so and increase in the population each
year in the city of Allen, TX by an average of 1.8% from year
2011 to year 2014. Now comparing the increase in middle and
high school students attending Allen ISD schools, we have
found that the school’s enrollment percentage for the middle
and high schools is an average of 3.7%.
2. With our target market being middle and high school athletes,
the outlook is looking to hold steady, especially with the school
districts we are attracted to being the tops in the state as far as
athletics goes. Also, the average amount of income for the city
of Allen is $112,143, which shows that these families are
middle, middle-upper, and upper class families living in this
city. This shows that families in Allen have a good amount of
disposable income, and with sport being a big part of the city’s
culture, we can guestimate seeing a portion of that money go
toward their kids athletic careers, whether it be buying them
new gear, or getting rehab from Elite Athletics.
v. Major players and where the company fits in
1. We will be competing with companies like Athletic Advantage
Physical Therapy, and Allen Therapy Center. All three clinics
are mainly sports based and are in the Allen, TX area.
2. Athletic Advantage Physical Therapy offers a niche we do not
cover which is dance injury rehab
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(http://www.aaphysicaltherapy.com/services.html), but we
compete in every other position. They also offer a nutrition
coach which we do not provide and will not provide any time
soon (http://www.aaphysicaltherapy.com/staff.html). Athletic
Advantage Physical Therapy is also only open MondayThursday from 10:00a.m. - 6:00p.m
(http://www.aaphysicaltherapy.com/athletic-advantagephysical-therapy.html), which works to our advantage because
we are open Monday- Friday from 7:00a.m. – 7:00p.m. They
accept all insurance carriers, which give them the edge because
we only accept the major insurance companies in Texas.
3. Allen Therapy Center is another clinic located in Allen, Texas
that has the exact same services we offer and may of the exact
same condition we are planning to treat as well
(http://www.posmc.com/allen-therapy-center/). Hours of
operation are the same for them and us except on Fridays; they
are only open from 7:00a.m. – 5:00p.m so we are open two
more hours than them on Fridays.
4. Compared to these competitors, we fit right into our niche for
dealing with high school and middle school athletes and also
are able to compete because we have a closer location offering
the same services as our competitors. Competition will be stiff
but we match up well with these clinics because of our
placement of our modular buildings, but we will lose
customers who do not have the insurance providers we take.
Luckily, we offer the discounted prices for people without
insurance that qualify.
c. The Service
i. Nature of Uniqueness
1. What makes Elite Athletics unique compared to other sport
physical therapy clinics is that each clinic we have is located in
a school district close by that has a strong athletics program.
With school athletes being our target market, this allows us to
make it a lot more convenient for our patients to come see us
because we are minutes away. With our modular buildings, we
are able to move from location to location with efficiency and
effectiveness. So, if the participating school district wants to
end the contract, it will be easy to pick up and move, and that
space could be used for something else instead their just
always being an empty building there. We can also move
buildings from one contract end and another contract
beginning.
ii. Benefits to School District/Athletic Department
1. The convenience of having your student rehab right around the
corner instead of miles away
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2. Your students will be working with professional therapists and
assistants that have played the sport they are in or at least
have knowledge of that sport.
3. Having extended office hours to accommodate the single
working mom/dad to give them more or an option for clinic
visits
4. Our doctors will be notifying the school respective head
trainers to continue the rehab process in school as well.
iii. Profit Potential and Durability
1. Seeing that this is a $19 billion industry, the profit potential
looks very promising and the industry is very durable because
in-school sports are a big part of the Texas culture and
especially the Dallas/Ft/Worth area. Every year there is going
to be an estimated growth in the company’s clients which in
turn brings in more revenue (see income statement year 1-3).
Also since the city of Allen, TX grew at an average rate of 1.77%
in population from 2010-2014(www.cityofallen.org), and is
expected to grow by an average of 2.3% in 2014 and so
on(www.allentx.com);, we can assume these families will have
children and that there’s a good chance that they will play
youth sports.
iv. Difficulties and Risks, Proprietary Issues
1. Entering into contracts
2. State Licensure
3. Regulation of clinic
4. Keeping up with regulatory boards
v. Key Suppliers
1. ProMed Xpress is our sole retailer in supplying the company
and its needs for clinic supplies and equipment. This company
has all of the equipment and tools we need to effectively
service the students we will be working with. Their prices are
very competitive with other top companies but they offer a
little more variety of the top name brands out there today.
Since we are a business buying their products, they are offering
us free shipping, which is a big plus, and a payment option that
is net 30.
d. Entry and growth strategy
i. Our competitive strategy starts of as wanting to fill the niche of school
athletes from middle to high school who are injured that need help
after surgery. Being able to be located within school districts and
located in an extremely close radius than most clinics also give us an
11
advantage. Our doctors that are on staff have some affiliation with a
sport, or have played the sport they are providing the services for.
e. Start-up Costs
Startup Budget
April 27, 2014
Cash Needed
to Start
Monthly Costs
Salary of owners-managers
All other salaries and wages
Rent
Advertising
Delivery expense
Supplies
Telephone
Utilities
Insurance
Taxes, including social security
Interest
Maintenance
Transaction Fee (Avg.)
Legal and other professional fees
Miscellaneous
Subtotal
One-Time Costs
Furniture and Equipment
Installation charges
Legal and other professional fees
Licenses and permits
Advertising and promotion for opening
Subtotal
Totals
III.
% of
Total
$0
46,848
695
200
125
250
150
1,200
8,000
50,333
0
200
600
100
350
$109,051
0.1%
0.4%
0.1%
0.2%
67.3%
$42,875
2,000
500
500
7,000
$52,875
26.5%
1.2%
0.3%
0.3%
4.3%
32.7%
$161,926
100%
28.9%
0.4%
0.1%
0.1%
0.2%
0.1%
0.7%
4.9%
31.1%
MARKET ANALYSIS
a. Target Market
i. The target market Elite Athletics aims for are powerhouse athletic
programs within the state of Texas. These athletic programs are
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within specific school districts that have athletes that range from
grades middle school to high school. These schools districts are
particularly in need of a physical therapy program that will allow
students to receive treatment at a discounted rate, near the child’s
school. During our first year, we expect to appeal to Texas’ largest
school districts within the Dallas/Fort Worth area and plan to branch
out to the Houston, Austin and San Antonio metropolises by the fifth
year of business.
b. Market size and trends
i. The market for Elite Athletics is rather large. While Dallas, Houston
and San Antonio provide the strongest athletic programs; there are
approximately 1050 different school districts in the state of Texas that
act as potential customers for Elite Athletics. The Texas population is
rapidly growing due to the strong economic status it holds compared
to the rest of the United States population. With a growing population,
we are seeing the need for more classrooms, creating larger districts,
therefore creating a growing market for Elite Athletics. We are also
seeing an increase in childhood athletic involvement.
c. Competitors and competitive advantages
i. There are no physical therapy companies that are currently
contracting to school districts in the state of Texas. The main
competition that Elite Athletics will experience over time is the local
physical therapy offices in each individual city. Offices such as Texas
Physical Therapy in Austin, Texas, Pride Rehabilitation in Dallas, Texas
and South Texas Injury and Rehabilitation Center in San Antonio,
Texas will be directly competing with Elite Athletics when it comes to
the overall market share for injured athletes.
ii. Their strengths are the fact that they are the current number one
locations in their area, they are often directly related to hospitals and
have also already established rapport and reputation within their
communities. Their weaknesses are that they are often located in
medical districts far away from schools, are highly expensive and
require kids to get taken out of school for appointments. At Elite
Athletics, those problems are solved. There are different pay plans
depending on whether or not the student has insurance and if they
are on the State’s “free/reduced lunch.”
iii. Our potential new customers will come from school districts in the
state of Texas, when it comes to new contracts. However, new
individual customers will come from the schools and camps within
the contracted districts. Of course, there will be some athletes that
choose to stay with their own outside physical therapists. There will
be potential students in the elementary schools that pose as potential
future customers.
d. Estimated market share and sales
i. Our specific niche will be Texan, athletic students in powerhouse
athletic programs. Our first school, Allen High School, will be the
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IV.
target niche in the beginning, where Elite Athletics will eventually
branch out to more as time goes on. Our specific niche includes
students in middle and high schools within our target districts.
ii. Estimated market share will be approximately 20% of the total
patients in physical therapy in the city of Allen. Considering there are
many physical therapy patients in the area that are not in our
particular age group, sport-related, etc.
iii. Projected sales for the year, on average, are $322,500, year one.
Projected sales for year two are $774,000. Projected sales for year
three are $1,290,000.
MARKETING
a. Overall marketing strategy
i. Elite Athletics will require a specific marketing plan. The sales
strategy for Elite Athletics will include 75% of our sales coming from
our target market and 25% coming from new customers. We expect to
have no less than 15 appointments a day during the school year and
no less than 5 appointments a day during the summer months. Elite
Athletics will be present at all major athletic events including
banquets, open houses and games. We will have access to the district’s
PTA and student directories for mail outs. There will also be regular
articles and advertisements placed in school programs, newspapers
and directories. We will also volunteer to speak in classrooms
pertaining to physical health. All of these things will help increase our
rapport within the community, increase business awareness and as a
result, increase our overall customer base.
ii. Elite Athletics will have a centrally located facility near the district’s
athletic field house. This will provide a location where our target
market will be in close proximity to our services allowing cheaper
travel costs. With the high traffic from students going to and from the
athletic centers, there will be an increase of awareness of our facility.
iii. Advertising and promotion will be one of the most exciting parts of
our program. To start at the basics, our facilities will have signage on
the outside (a basic, in-the-ground sign). As stated above, we will have
a large presence within the school district and the community. We will
purchase banners and signage to post at the stadiums, athletic
facilities and inside gymnasiums. Pertaining to media, due to our
presence between signage and representatives, logos will likely be
visible on any video footage. T-shirts will be given to all athletes who
complete our program; students involved in athletic programs and
also participants in our camps and community 5k runs.
iv. Social media marketing
1. Involvement with athletes and school district accounts for
social media presence and cheap marketing
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v.
vi. Another way we will advertise and market Elite Athletics is through
fun summer camps and community 5k runs. By hosting events like
these, there will be an increase in involvement with our target market.
Our start up events, the summer before our first contracted school
year will be free events, where later down the road, we will charge as
a way to collect extra funds. The benefit to these events is not only
financial for Elite Athletics, but through our involvement in the
community we hope to increase health knowledge and community
involvement.
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b. Pricing
i. Table of pricing per treatment, depending on insurance status and
school related discount program
Prices:
With Insurance
Without
Discount Price
(80% Off)
Insurance
(40% Off)
Assessment
$32
$158
$95
Electrical Stem.
$23
$113
$68
Elec. Stem. W/hot & cols
therapy
$26
$130
$78
Functional Training
$23
$113
$68
Manual Therapy
$23
$113
$68
Manual Therapy Hot/Cold
$26
$130
$78
Therapeutic Exercise
$23
$113
$68
Therapy Exercise Hot/Cold
$26
$130
$78
Electrotherapy/Ultrasound
$23
$113
$68
Supervised Exercise
$9
$43
$26
Whirlpool
$13
$65
$39
Physical Performance Test
$14
$68
$41
V.
ii. Pertaining to service and warranty policies, for Elite Athletics
particularly, if athletes return to the game after completing their
entire physical therapy program and reinjures themselves, they are
invited to return to Elite Athletics at a reevaluated price (if
reimbursement is required, it will be).
OPERATION, LOCATION AND FACILITIES
a. PRODUCT FEATURE
i. Elite Athletics L.L.C. offers year round physical therapy for student
athletes. Elite Athletics, L.L.C. will be open Monday through Friday,
throughout the school year, from 7 am to 7 pm. There will be special
hours during the summer, Monday through Thursday, from 10am to
5pm.
b. PRODUCT BENEFITS
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c.
d.
e.
f.
g.
i. Elite Athletics, L.L.C. offers student athletes, 7th to 12th grade, an
opportunity to get back on the field, better and stronger than ever.
Our staff will provide athletes with the necessary nutrition and fitness
regimen to nurse them back to full health.
ii. We understand that many players, when they suffer an injury, have to
travel to far in order to get treatment, but with Elite Athletics L.L.C
they don’t have to travel much, you can say that we are located in
their own backyard.
UNIQUENESS
i. Elite Athletics, L.L.C. has its central office located in Irving, but will set
up a temporary medical center in close proximity to the school district
we are contracted with, it makes it convenient for the players, the
players would have to travel less. We will have personnel with a
background in sports, meaning that they either played in high school
or played at the collegiate level, so that they know or have an idea of
what the athlete is going through.
LOCATION
i. Elite Athletics, LLC headquarters will be located at: 2300 Valley View
Lane, Irving, Texas 75062
PROXIMITY TO TARGET MARKET
i. Our target market is school districts, with a top rated school athletic
program. In this case, our school district is the Allen Independent
School District, (Allen ISD). We know that school districts that are
deeply involved in their athletic program would enjoy having their
athletes coming back strong and better. Elite Athletics L.L.C. would
rent a temporary facility and place in near proximity to all schools.
This way the students are not going to multiple facilities and traveling
far to get quality service. We would promote the clinic by having
fitness camps around the communities that we are pursuing.
ii. Traffic count is around 5-30 students a day
LABOR
i. Labor needed for Elite Athletics, LLC would consist of physical
therapists, a bookkeeper, medical secretary, technicians and cleaning
crew
FLOOR PLAN AND FACILITIES
i. Our central office is located at 2300 Valley View Lane, Irving, Texas
75062. The office consists of two rooms. The central office leases for
$650 a month. (Craigslist ad)
ii. The physical therapy clinic located within the district. The physical
therapy clinic itself is 5,600 Sq. Ft. and is equipped with 4 exam
rooms, a large therapy room, 3 offices, a business area, waiting room,
storage, and restrooms. The physical therapy room measures at 2676
17
VI.
VII.
S.F., it is a large room that will house up-to-date equipment. The
physical therapy clinic will also include a whirlpool. The price of the
rental building will be included in the contract with the school. The
school will pay the lease of the physical therapy clinic (physical
therapy).
MANAGEMENT AND ORGANIZATION
a. Elite Athletics is a Limited Liability Corporation (LLC).
i. Benefits
1. Limited personal liability to owners
2. Avoid double taxation
3. The legal protection of personal assets
ii. 5 Owners (depending on the total of initial investment)
1. Makenzi Wassenaar – 20%
2. Brandon Allen – 20%
3. Alex Garcia – 20%
4. Amanda Kissam – 20%
5. Cole Belew – 20%
b. COMPANY STRUCTURE
i. Reporting relationship (organizational chart).
1. Cleaning crew reports to Owners. Bookkeeper reports to the
owners, and works side by side with the Medical Secretary.
Medical Secretary reports to the Physical Therapist. Physical
Therapist Assistant reports to Physical Therapist. Physical
Therapist reports to Owners.
c. KEY MANAGEMENT AND EMPLOYEES
i. Owner – should have capital and business administration
management experience
ii. Physical therapists – must have a Doctor of Physical Therapy Degree
OR Master of Physical Therapy OR Master of Science in Physical
Therapy Degree (cite 1)
iii. Physical Therapy Technicians/Assistant
FINANCIAL PLAN
18
Income Statement
Elite Athletics
June 2014-June2015
Financial Statements in U.S. Dollars
Revenue
Gross Sales
Less: Sales Returns and Allowances
Net Sales
322500
0
322500
Cost of Goods Sold
Beginning Inventory
Add:
Purchases
Freight-in
Direct Labor
Indirect Expenses
Inventory Available
Less: Ending Inventory
Cost of Goods Sold
0
42875
0
0
0
42875
42875
Gross Profit (Loss)
279625
Expenses
Advertising
Amortization
Transaction Fees
Depreciation
Employee Benefit Programs
Building Insurance
Legal and Professional Fees
Licenses and Fees
Miscellaneous
Office Expense
Payroll Taxes
Rent
Repairs and Maintenance
Supplies
Telephone
Utilities
Wages
Total Expenses
9400
0
7200
86400
3600
1700
500
4200
2600
0
8340
2400
3000
1800
14400
562180
707720
Net Operating Income
(428095)
Other Income
Gain (Loss) on Sale of Assets
Interest Income
Total Other Income
Net Income (Loss)
0
0
0
(428095)
19
Income Statement
Elite Athletics
June 2015-June 2016
Financial Statements in U.S. Dollars
Revenue
Gross Sales
Less: Sales Returns and Allowances
Net Sales
774000
774000
Cost of Goods Sold
Beginning Inventory
Add:
Purchases
Freight-in
Direct Labor
Indirect Expenses
Inventory Available
Less: Ending Inventory
Cost of Goods Sold
0
0
Gross Profit (Loss)
774000
Expenses
Advertising
Amortization
Transaction Fees
Depreciation
Employee Benefit Programs
Building Insurance
Interest
Legal and Professional Fees
Licenses and Fees
Miscellaneous
Office Expense
Payroll Taxes
Rent
Repairs and Maintenance
Supplies
Telephone
Utilities
Wages
Total Expenses
Net Operating Income
2400
7200
86400
3600
1200
500
4200
600
0
8340
2400
3000
1800
14400
562180
698220
75780
Other Income
Gain (Loss) on Sale of Assets
Interest Income
Total Other Income
Net Income (Loss)
0
75780
20
Income Statement
Elite Athletics
June 2016- June 2017
Financial Statements in U.S. Dollars
Revenue
Gross Sales
Less: Sales Returns and Allowances
Net Sales
1290000
1290000
Cost of Goods Sold
Beginning Inventory
Add:
Purchases
Freight-in
Direct Labor
Indirect Expenses
Inventory Available
Less: Ending Inventory
Cost of Goods Sold
0
0
Gross Profit (Loss)
1290000
Expenses
Advertising
Amortization
Transaction Fees
Depreciation
Employee Benefit Programs
Building Insurance
Interest
Legal and Professional Fees
Licenses and Fees
Miscellaneous
Office Expense
Payroll Taxes
Rent
Repairs and Maintenance
Supplies
Telephone
Utilities
Wages
Total Expenses
Net Operating Income
2400
7200
86400
3600
1200
500
4200
600
0
8340
2400
3000
1800
14400
622180
758220
531780
Other Income
Gain (Loss) on Sale of Assets
Interest Income
Total Other Income
Net Income (Loss)
0
531780
21
Ellite Athletics
Balance Sheet June 2014
Assets
Current assets:
Cash
Investments
Prepaid Expenses
Other
Total current assets
2014
Fixed assets:
Property and equipment
Equity and other investments
Less accumulated depreciation
Total fixed assets
2014
Other assets:
Goodwill
Total other assets
2014
500,000.00
32,500.00
8,000.00
8,720.00
549,220.00
45,875.00
32,500.00
78,375.00
-
Total assets
627,595.00
Liabilities and owner's equity
Current liabilities:
Accounts payable
Accrued wages
Accrued compensation
Income taxes payable
Unearned revenue
Other
Total current liabilities
2014
Long-term liabilities:
Mortgage payable
Total long-term liabilities
2014
Owner's equity:
Investment capital
Accumulated retained earnings
Total owner's equity
2014
42,875.00
532,880.00
19,340.00
595,095.00
-
Total liabilities and owner's
equity
Balance
32,500.00
32,500.00
627,595.00
-
22
Twelve-month cash
flow
PreStartup
EST
Cash on Hand (beginning of
month)
Fiscal Year
Begins:
Elite Athletics
Jun-14
Jul-14
Aug-14
Sep-14
Oct-14
Nov-14
Dec-14
Jan-15
Feb-15
Mar-15
Apr-15
Jun-14
Total
Item EST
May-15
0
100,000
52,032
46,939
41,846
36,753
31,660
26,567
21,474
16,381
11,288
6,195
1,102
1,102
Cash Sales
0
21,500
21,500
21,500
21,500
21,500
21,500
21,500
21,500
21,500
21,500
21,500
21,500
258,000
Collections fm CR accounts
0
32,250
32,250
32,250
32,250
32,250
32,250
32,250
32,250
32,250
32,250
32,250
32,250
387,000
Loan/ other cash inj.
0
0
0
0
0
0
0
0
0
0
0
0
0
0
TOTAL CASH RECEIPTS
0
53,750
53,750
53,750
53,750
53,750
53,750
53,750
53,750
53,750
53,750
53,750
53,750
645,000
32,500
153,750
105,782
100,689
95,596
90,503
85,410
80,317
75,224
70,131
65,038
59,945
54,852
646,102
CASH RECEIPTS
Total Cash Available
(before cash out)
CASH PAID OUT
Purchases (merchandise)
0
Purchases
Furniture/Equipment
0
42,875
0
46,848
46,848
46,848
46,848
46,848
46,848
46,848
46,848
46,848
46,848
46,848
46,848
562,176
Outside services
0
0
0
0
0
0
0
0
0
0
0
0
0
0
Supplies (office & oper.)
0
250
250
250
250
250
250
250
250
250
250
250
250
3,000
Repairs & maintenance
0
200
200
200
200
200
200
200
200
200
200
200
200
2,400
7,000
200
200
200
200
200
200
200
200
200
200
200
200
9,400
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1,000
100
100
100
100
100
100
100
100
100
100
100
100
2,200
695
695
695
695
695
695
695
695
695
695
695
695
695
8,340
Telephone
0
150
150
150
150
150
150
150
150
150
150
150
150
1,800
Utilities
0
1,200
1,200
1,200
1,200
1,200
1,200
1,200
1,200
1,200
1,200
1,200
1,200
14,400
Insurance
0
8,000
8,000
8,000
8,000
8,000
8,000
8,000
8,000
8,000
8,000
8,000
8,000
96,000
Purchases (specify)
Gross wages (exact
withdrawal)
Payroll expenses (taxes,
etc.)
Advertising
Car, delivery & travel
Accounting & legal
Rent
23
Taxes (real estate, etc.)
Interest
Supplies
0
250
250
250
250
250
250
250
250
250
250
250
250
3,000
Transaction Fee (Avg.)
0
600
600
600
600
600
600
600
600
600
600
600
600
7,200
350
350
350
350
350
350
350
350
350
350
350
350
4,200
8,695
101,718
58,843
58,843
58,843
58,843
58,843
58,843
58,843
58,843
58,843
58,843
58,843
714,116
8,695
101,718
58,843
58,843
58,843
58,843
58,843
58,843
58,843
58,843
58,843
58,843
58,843
714,116
23,805
52,032
46,939
41,846
36,753
31,660
26,567
21,474
16,381
11,288
6,195
1,102
-3,991
-68,014
Other (specify)
Miscellaneous
SUBTOTAL
Loan principal payment
Capital purchase (specify)
Other startup costs
Reserve and/or Escrow
Owners' Withdrawal
TOTAL CASH PAID OUT
Cash Position (end of
month)
24
Breakeven Year 1Analysis
Revenues
Enter Start Numbers
$322,500
Cost of Sales
Gross Profit
$62,275
$260,225
Fixed Exp.
Income Taxes
$684,420
Breakeven
$0
Reset
Income Chart
$800,000
$800,000
$700,000
$600,000
Revenue
Sales Revenue
100.0%
Cost of Sales 19.3%
$600,000
$400,000
Gross Profit
80.7%
Fixed Expenses
212.2%
Income Before Tax
-131.5%
Income Taxes
0.0%
Net Income (Loss)
-131.5%
$500,000
$200,000
$400,000
$300,000
$0
$200,000
$100,000
-$200,000
0
1
2
3
4
5
6
7
8
9
10
11
12
$0
-$400,000
Months
REVENUE
Total Sales:
FIXED COSTS
-$600,000
$322,500 What-if Sales:
100%
Value of What-if Sales:
$62,275 What-if Cost of Sales:
100%
Value of What-if Cost of Sales:
Total Fixed Expenses:
$684,420 What-if Fixed Expenses:
100%
Value of What-if Fixed Expenses:
Breakeven Percentage:
263.01%
Total Cost of Sales:
Breakeven Dollars
$322,500
$848,210 Breakeven Date
$62,275
$684,420
Aug 16
Breakeven Year 2Analysis
Revenues
Enter Start Numbers
$774,000
Cost of Sales
Gross Profit
$14,300
$759,700
Fixed Exp.
Breakeven
$0
$900,000
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Reset
Income Chart
Sales Revenue
100.0%
Cost of Sales 1.8%
$800,000
$700,000
Gross Profit
98.2%
Fixed Expenses
88.4%
Income Before Tax
9.7%
Income Taxes
0.0%
Net Income (Loss)
9.7%
$600,000
$500,000
$400,000
$300,000
$200,000
0
1
2
3
4
5
6
7
8
9
10
11
12
Revenue
Income Taxes
$684,420
Months
REVENUE
Total Sales:
Total Cost of Sales:
Total Fixed Expenses:
Breakeven Percentage:
FIXED COSTS
$774,000 What-if Sales:
$100,000
$0
100%
Value of What-if Sales:
$14,300 What-if Cost of Sales:
100%
Value of What-if Cost of Sales:
$684,420 What-if Fixed Expenses:
100%
Value of What-if Fixed Expenses:
90.09%
Breakeven Dollars
$697,303 Breakeven Date
$774,000
$14,300
$684,420
Nov 23
25
Breakeven Year 3Analysis
Revenues
Enter Start Numbers
$1,290,000
Cost of Sales
Gross Profit
$16,900
$1,273,100
Fixed Exp.
$684,420
Breakeven
Income Taxes
$18,844
$1,400,000
Reset
Income Chart
$1,400,000
$1,200,000
$1,000,000
Revenue
Sales Revenue
100.0%
Cost of Sales 1.3%
$1,200,000
$1,000,000
$800,000
Gross Profit
98.7%
Fixed Expenses
53.1%
Income Before Tax
45.6%
Income Taxes
1.5%
Net Income (Loss)
44.2%
$800,000
$600,000
$600,000
$400,000
$200,000
$400,000
0
1
2
3
4
5
6
7
8
9
10
11
12
$0
Months
REVENUE
Total Sales:
Total Cost of Sales:
Total Fixed Expenses:
Breakeven Percentage:
FIXED COSTS
$1,290,000 What-if Sales:
$200,000
$0
100%
Value of What-if Sales:
$16,900 What-if Cost of Sales:
100%
Value of What-if Cost of Sales:
$684,420 What-if Fixed Expenses:
100%
Value of What-if Fixed Expenses:
53.76%
Breakeven Dollars
$693,505 Breakeven Date
$1,290,000
$16,900
$684,420
Jul 14
26
VIII.
CRITICAL RISKS AND CONTINGENCIES
a. The physical therapy industry is an industry that is full of many risks that could be the
difference between hurting someone and helping them. At Elite Athletics we understand
that there are many risks associated with our line of work. Below is a list of some of the
risks associated with starting a company in the physical therapy industry and some
remedies on how we will address these concerns.
i. Risk: Customer medical and personal information getting out to the public
1. Remedy: Not only will there be safes provided to lock up the information, but
with paperwork needing to be thrown away the employees will then shred
the documentation and dispose of it in a locked trash can and a specialized
company will come and correctly dispose of it. Also the company will train all
employees on the HIPAA act and how steps will be taken to avoid this
situation.
ii. Risk: Physical therapists getting caught in a malpractice claim
1. Remedy: in each therapy room there will be video cameras that will capture
the activities of the therapists working with the patients so that there is proof
that the therapist did as they were supposed to. Also the company will invest
in malpractice insurance to help cover any costs associated with a claim.
iii. Risk: Patient reinjures the same injury that Elite Athletics has treated
1. Remedy: Elite Athletics will only be responsible for the injury for the amount
of time stated in the contract
iv. Risk: Elite Athletics not having enough physicians
1. Remedy: Elite Athletics will employ five physicians and assistants for each
location
v. Risk: Patient injures another spot other than the treated injury at Elite Athletics
1. Remedy: The Elite Athletics contract states that the company is only
responsible for the injury treated at the location. If another injury occurs it
will be considered a new injury and will be billed as such
vi. Risk: Elite Athletics not taking all insurances
1. Remedy: Elite Athletics partners with school districts in order to provide a
less expensive copay for our patients. If the amount owed to Elite Athletics is
too big for the patient a payment plan will be considered.
vii. Risk: Patients walking into one of our buildings and thinking it is dirty or they are
worried about sanitation.
1. Remedy: Elite Athletics will clean every piece of equipment needed for each
therapy session as soon as the session is over. All of the equipment that can
be sanitized using an autoclave will be sanitized after every use.
viii. Risk: Therapists using a lot of medical jargon and patient not clearly understanding
the physician.
1. Remedy: The physicians will speak to the customers as if they do not
understand anything related to the injury and will also make a copy of their
notes and have the patient sign a document stating they fully understand
what was discussed.
b. ALTERNATIVE COURSES OF ACTION
27
IX.
X.
i. At Elite Athletics we will ensure that we have the best form of malpractice insurance
and also the best lawyers that we can find that specialize in the malpractice area.
Anytime that an employee will put us in a situation that will affect the company in a
negative way will be terminated on the spot.
HARVEST STRATEGY
a. After year one, Elite Athletics wants to work on paying off the debts acquired with
purchasing facilities and equipment. After year three we want to slowly being to add two
more schools to provide our services to. After year five we want to have up to at least four
school districts in Texas that we provide our services to.
b. The owners will continue to own the company as years go on. There will be investment
opportunities for our previous investors to reinvest in the company for growth purposes or
have the option to end our contract after their initial investment has been paid.
i. This allows investors to have an option to reinvest or walk away.
ii. The current five owners have an opportunity to be bought out by the remaining
owners giving them a way out.
c. Maintaining current customers
i. Current patients will have the option to be involved in our community programs
1. 5k runs and camps are discounted for current patients
2. Our current customers have the program through their school districts,
therefore our services act as a “nearly” free progam.
ii. What happens when a patient graduates from high school?
1. There will be a list of referred physical therapy programs for high school
alumni in the area.
OVERALL SCHEDULE AND TIMELINES
a. Timeline
i. April 2014 – May 2014
1. Complete business plan
2. Speak with investors, school boards and districts
3. Sign contracts with investors and school districts
4. Obtain required permits and licenses
5. Obtain equity loan and investors
ii. June 2014 – August 2014
1. Build and set up facility at Allen ISD
2. Purchase equipment
3. Hire staff
4. Participate in community events
5. Hold yearly, community events such as 5ks to promote business
6. Grand opening
iii. August 2017-July 2018
1. Expand to two more school districts
28
XI.
iv. August 2018 – July 2019
1. Expand to two more school districts
v. August 2019 – July 2020
1. Expand to two more school districts
vi. August 2020 – onwards
1. Expand to diagnosis and repair
2. Add on two different programs to existing school districts to complete our
“three-in-one” concept to include diagnosis, surgery and therapy in a “onestop-shop” fashion
b. Deadlines and Milestones
i. October 2014- Begin creating social media sites for the company via Facebook, Pintrest,
and Instagram
ii. July 2014- annual 5k before school starts, all staff fully trained
iii. May 2015 – at least 5 patients per day during summer and
iv. May 2016 – at least 12 patients per day during summer and
v. May 2017 – at least 15 patients per day during summer and
vi. May 2017 – financially breakeven and begin earning profit
Appendices
a. Resumes – following pages
29
Alex Garcia
14222 Dallas Pkwy Apt#1118, Dallas, TX 75254 • (972) 804-7993 • glex09@gmail.com
» Profile
» Education
University of North Texas, Denton, TX
Expected BA General Business, 2014
» Skills
Applications
Microsoft Office
Languages
Fluent in Spanish.
» Work Experience
Studio Movie Grill, Plano, Texas
Expo, Summer 2011- Summer 2012



Assistant to the Supervisor,
In charge of kitchen when Supervisor not present.
Close kitchen down and make sure everything was turned off.
Sweet Tomato, Dallas, Texas
Cashier, 2007-2009



Would count money out,
Greet customers when they walked in the door.
Count money at the end of shift to make sure it matched.
» Activities
President of Sigma Lambda Beta, Denton, Texas
30
31
32
33
34
Financial Statements
Proforma Income Statement……………………………………………………………………..19
Proforma Balance Sheets…………………………………………………………………………22
Proforma Cashflow Analysis……………………………………………………………………..24
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