Sports Therapy Business Plan

Cyclist Repair Center (CRC) is a cycling-specific sports clinic serving the Boulder, Colorado community. Founded by Arthur Mendosa-Cadiz in January 2004, CRC aims to gain market penetration by focusing on serving cyclists.

The Market

CRC has identified two customer segments to target. The first segment is competitive cyclists, which can be further divided into professionals and experts. There are 4,500 potential competitive cyclists with a 4% annual growth rate seeking therapeutic repair/recovery services or training to enhance their competitiveness.

The second group consists of recreational cyclists, totaling 32,090 potential customers with a 5% growth rate. These cyclists enjoy cycling as a passion or recreation, and are generally more affluent compared to competitive cyclists.

CRC is strategically located in Boulder, CO, a renowned high mountain sports town with a strong cycling culture. The town offers numerous road cycling routes and mountain biking trails near the area. The presence of the United States Cycling Federation’s Olympic training center further solidifies Boulder’s significance in the cycling community.

Services

CRC offers a wide range of cycling-specific sports medicine and training services, including:

• Sports massage for comfort and faster recovery.
• Personal training for weight loss, increased speed, or endurance.
• Bike fit for enhanced comfort, power, or speed.
• Fitness assessment, including tests such as VO2 max, lactate threshold, aerobic threshold, and anaerobic threshold.
• Diagnosis and treatment of cycling-related injuries by physicians and physical therapists.

CRC has a dedicated team of professionals, including a USCF Category I or II racer turned personal coach/trainer, a sports medicine physician, massage therapists, and physical therapists. The center is also equipped with cycling-specific equipment to support these service providers.

Management

CRC is led by Arthur Mendosa-Cadiz, who has a profound understanding of cycling. With a background as a competitive cyclist and a Master’s in Sports Physical Therapy, Arthur brings both passion and expertise to the business. His experience and knowledge will enable CRC to offer exceptional cycling services in Boulder.

With its location in a cycling-oriented town and its tailored services for different types of cyclists, CRC is projected to rapidly attract customers and generate revenue. The expected revenue for years two and three is $369,000 and $443,000, respectively.

1.1 Objectives

• Achieve profitability by the end of year two.
• Generate revenue exceeding $400,000 by year three.
• Attain a net profit of at least 10% by year three.

1.2 Mission

The Cyclist Repair Center’s mission is to provide clients with individualized, cycling specific assessment, diagnosis, treatment, and training programs. Clients will receive national class service with an emphasis on education, empowering each athlete.

1.3 Keys to Success

• Maintain focus on cycling specific injuries and training.
• Offer a wide range of services meeting all cyclist’s needs.
• Design and employ strict financial controls, a requisite for an efficiently run organization.

Company Summary

Cyclist Repair Center has been formed as a Colorado corporation. The company was formed in January 2004 by Arthur Mendosa-Cadiz.

2.1 Company Ownership

Cyclist Repair Center is a privately held corporation. The majority shareholder is Arthur Mendosa-Cadiz. Equity in the corporation has been issued to two investors.

2.2 Start-up Summary

Cyclist Repair Center will require the following equipment and services at start up:

• Professional service provider fees including legal fees and accounting fees (to set up QuickBooks Pro).
• Four computer terminals with Microsoft Office and one computer with QuickBooks Pro. A central file server. The office will be networked and have a broadband Internet connection.
• Four examination beds.
• Exercise bicycle.
• Three CompuTrainers with two computers.
• Treadmill.
• Portable ultrasound unit.
• Various massage equipment.
• Various medical examining tools.
• Telephone system.

Start-up Requirements:

– Legal: $3,000

– Accounting service provider: $2,000

– Brochures: $500

– Insurance: $1,500

– Rent: $1,500

– Total Start-up Expenses: $8,500

Start-up Assets:

– Cash Required: $121,500

– Other Current Assets: $0

– Long-term Assets: $22,000

– Total Assets: $143,500

Total Requirements: $152,000

Start-up Funding:

– Start-up Expenses to Fund: $8,500

– Start-up Assets to Fund: $143,500

– Total Funding Required: $152,000

Assets:

– Non-cash Assets from Start-up: $22,000

– Cash Requirements from Start-up: $121,500

– Additional Cash Raised: $0

– Cash Balance on Starting Date: $121,500

– Total Assets: $143,500

Liabilities and Capital:

– Liabilities:

– Current Borrowing: $0

– Long-term Liabilities: $30,000

– Accounts Payable (Outstanding Bills): $0

– Other Current Liabilities (interest-free): $0

– Total Liabilities: $30,000

– Capital:

– Planned Investment:

– Arthur Mendosa-Cadiz: $25,000

– Investor 1: $52,000

– Investor 2: $45,000

– Additional Investment Requirement: $0

– Total Planned Investment: $122,000

– Loss at Start-up (Start-up Expenses): ($8,500)

– Total Capital: $113,500

Total Capital and Liabilities: $143,500

Total Funding: $152,000

Services:

Cyclist Repair Center offers a wide range of cycling specific proactive and reactive solutions for both competitive and recreational athletes. Specific services include:

– Sports massage: Massages can be either full body or cycling specific. Massages are valuable for recovery, greater flexibility, and increased comfort.

– VO2 max

– Lactate threshold

– Aerobic threshold

– Anaerobic threshold

– Wattage output

Cyclist Repair Center accepts most major insurance plans for therapy and reactive services. Other proactive services like training and massage are often not accepted for insurance, but this is a function of the insurance plan, not the unwillingness of Cyclist Repair Center to accept insurance.

Market Analysis Summary:

Cyclist Repair Center has identified two distinct market segments: competitive and recreational cyclists. The two segments will be targeted specifically. The sports clinic industry typically does not focus on a single sport.

Market Segmentation:

Cyclist Repair Center has chosen to target two distinct customer segments: competitive cyclists and recreational cyclists.

Competitive Cyclists: Cyclists who compete at the professional or expert level. Professional cyclists race full time and earn income from cycling. Expert level cyclists are competitive within their racing class but do not earn a living from racing. Some compete every week, while others compete several times a season. They are competitive in either their cycling class or age group.

– Demographics of Boulder based professional cyclists:

– Ages 23-33

– Educational level: 67% have an undergraduate degree, 8% have a graduate degree

– Individual income range: $24,000-$50,000 (excluding other sources of income such as product sponsorship/endorsement)

– Average number of bicycles owned by professionals: six

– Average length of a professional career: six years

– 17% of professionals have trained with the Olympic national team

– 77% of cyclists are road cyclists, 12% are track cyclists, and the remaining percentage participate in both disciplines

Recreational Cyclists: Cyclists who enjoy cycling and ride frequently, looking for services to improve their speed or comfort. They may also seek clinic services to address specific cycling problems.

– Demographic data:

– Ages: 29-62

– Educational level: 79% have an undergraduate degree, 28% have a graduate degree

– Individual median income: $62,000

– Average number of bicycles owned: four

Market Analysis

4.2 Target Market Segment Strategy

Cyclist Repair Center targets competitive and recreational cyclists who require cycling-specific therapeutic and training services due to the increasing competitiveness of cycling and the surge in recreational participation. Competitive cyclists need these services to remain competitive, especially with the introduction of junior programs and drug controls and testing. Recreational cyclists, on the other hand, participate for health and fitness reasons, attracted by the low impact nature of cycling.

4.3 Service Business Analysis

Cyclist Repair Center operates within the sports medicine/therapy industry, which includes clinics specializing in sports related injuries. The industry is characterized by clinics offering a wide range of services, including chiropractic work, podiatry services, and orthopedic surgical repair. In a sports town like Boulder, where individual sports are popular, sports medicine clinics generate significant revenue from both professional and nonprofessional athletes.

4.3.1 Competition and Buying Patterns

Cyclist Repair Center faces competition from the University of Colorado (Boulder) Sports Medicine Center, a large clinic that provides education, research, and training services to athletes with the involvement of students.

Strategy and Implementation Summary

Cyclist Repair Center plans to leverage its location in Boulder, a renowned cycling town, and its expertise in cycling-specific services to attract both competitive and recreational cyclists. The marketing strategy aims to raise awareness of the unique services offered, while the sales strategy focuses on expanding the range of services received by clients.

5.1 Milestones

Cyclist Repair Center has established measurable and achievable milestones for the organization and its departments. The following table outlines the timeframes for completing each milestone.

To develop effective business strategies, it is important to perform a SWOT analysis of your business. Our free guide and template can assist you in performing a SWOT analysis.

Milestones:

– Milestone: Start Date, End Date, Budget, Manager, Department

– Business plan completion: 1/1/2004, 2/15/2004, $0, Arthur, Business Development

– Lease secured: 2/15/2004, 4/1/2004, $0, Arthur, Operations

– Hiring completed: 3/15/2004, 4/15/2004, $0, Arthur, HR

– Facility open: 4/1/2004, 5/1/2004, $0, Arthur, Operations

– Profitability: 5/1/2004, 3/15/2005, $0, Arthur, Accounting/Sales

– Totals: $0

5.2 Competitive Edge:

Cyclist Repair Center specializes in serving cyclists, unlike other general sports clinics in Boulder. This specialization provides significant value to clients by offering a unique cycling perspective to service providers. Additionally, the staff’s enthusiasm for cycling is contagious and apparent.

Having a cycling-specific service allows Cyclist Repair Center to offer specialized training and therapy using a range of cycling-specific equipment. For example, they have three CompuTrainers, which are cycling trainers that allow clients to ride indoors. The CompuTrainer offers various functions, including testing physiological functions such as aerobic threshold and lactate threshold, and analyzing pedal spin cycle.

5.3 Marketing Strategy:

Cyclist Repair Center’s marketing strategy aims to increase awareness of their cycling-specific services in the Boulder community. They will undertake various efforts to generate brand awareness.

– Sponsorship: Sponsorship takes several forms, including local tours and races. This will help develop visibility for the organization among a targeted crowd.

– Yellow Pages advertisement: An advertisement in the Yellow Pages will increase visibility as it is an essential resource for individuals seeking service providers.

5.4 Sales Strategy:

The sales strategy will complement the marketing strategy by generating increased sales. The main focus is to convert current clients using only one service to using multiple services. This can be achieved through upselling by service providers and providing written information. Economic incentives, such as discounts, will be used to encourage current single-service clients to become multi-service users.

5.4.1 Sales Forecast:

Cyclist Repair Center has developed a conservative sales forecast to increase the likelihood of achieving sales goals and maintain a positive relationship with investors. Sales are expected to grow incrementally, with the highest increase in year one to year two, followed by a slightly slower growth rate from year two to year three.

Sales Forecast:

Web Plan Summary:

A website will be developed to serve as an efficient source of information for Cyclist Repair Center. The site will provide Internet users with detailed information about the center’s services and the experience of its staff members. Visitors will be encouraged to call for any unanswered questions, emphasizing Cyclist Repair Center as the premier cycling-specific clinic for competitive and recreational cyclists.

Website Marketing Strategy:

Cyclist Repair Center will use two types of online marketing. First, the website will be submitted to various search engines to ensure easy accessibility. Second, Cyclist Repair Center’s URL will be included on all printed material to attract customers to visit the site for additional information.

Development Requirements:

A computer science student has been contacted to design and develop the website. The expected time frame for development is six to eight weeks.

Management Summary:

Arthur Mendosa-Cadiz has a background in cycling and a focus on sports physical therapy. He has gathered years of experience in cycling as both a road and mountain bike racer. Recognizing the need for skills in another profession and wanting to stay in the sport industry, Arthur pursued a Master’s degree in Sports Physical Therapy. After working as a physical therapist for six years, Arthur decided to start Cyclist Repair Center to combine his passion for cycling with his skills as a physical therapist.

Personnel Plan:

The following personnel will be required:

– Arthur: business development, physical therapy, cycling trainer, marketing, sales, some accounting and finance

– Physician: part-time physician for diagnosis and treatment as needed

– Massage therapists (2)

– Physical therapists (2)

– Coach/trainer

– Receptionist

– Accounting clerk/receptionist

Financial Plan:

The following sections outline important financial information.

Important Assumptions:

General Assumptions:

Break-even Analysis:

The Break-even Analysis is shown below.

Break-even Analysis:

Monthly Revenue Break-even: $21,753

Assumptions:

– Average Percent Variable Cost: 5%

– Estimated Monthly Fixed Cost: $20,665

8.3 Projected Profit and Loss:

The table and charts below illustrate the projected profit and loss.

Pro Forma Profit and Loss:

Sales:

Year 1: $136,646

Year 2: $368,944

Year 3: $442,733

Direct Cost of Sales:

Year 1: $6,832

Year 2: $18,447

Year 3: $22,137

Other Costs of Sales:

Year 1: $0

Year 2: $0

Year 3: $0

Total Cost of Sales:

Year 1: $6,832

Year 2: $18,447

Year 3: $22,137

Gross Margin:

Year 1: $129,814

Year 2: $350,497

Year 3: $420,597

Gross Margin %:

Year 1: 95.00%

Year 2: 95.00%

Year 3: 95.00%

Expenses:

Payroll:

Year 1: $190,000

Year 2: $258,000

Year 3: $270,000

Sales and Marketing and Other Expenses:

Year 1: $2,400

Year 2: $2,400

Year 3: $2,400

Depreciation:

Year 1: $4,404

Year 2: $4,404

Year 3: $4,404

Rent:

Year 1: $18,000

Year 2: $18,000

Year 3: $19,000

Utilities:

Year 1: $1,680

Year 2: $1,680

Year 3: $1,680

Insurance:

Year 1: $3,000

Year 2: $3,000

Year 3: $3,500

Payroll Taxes:

Year 1: $28,500

Year 2: $38,700

Year 3: $40,500

Total Operating Expenses:

Year 1: $247,984

Year 2: $326,184

Year 3: $341,484

Profit Before Interest and Taxes:

Year 1: ($118,170)

Year 2: $24,313

Year 3: $79,113

EBITDA:

Year 1: ($113,766)

Year 2: $28,717

Year 3: $83,517

Interest Expense:

Year 1: $2,740

Year 2: $2,270

Year 3: $1,783

Taxes Incurred:

Year 1: $0

Year 2: $6,613

Year 3: $23,199

Net Profit:

Year 1: ($120,911)

Year 2: $15,430

Year 3: $54,131

Net Profit/Sales:

Year 1: -88.48%

Year 2: 4.18%

Year 3: 12.23%

8.4 Projected Cash Flow:

The following chart and table show the projected cash flow.

Pro Forma Cash Flow

Projected Balance Sheet

8.5 Projected Balance Sheet

The following table presents the projected balance sheet.

Business Ratios

8.6 Business Ratios

The following table offers many business ratios specific to this business. The U.S. Standard Industrial Classifications (SIC) currently classifies sports therapy and training clinics as: Offices of health practitioners, nec. – 8049.9900. The industry profile ratios are shown for comparison.

Ratio Analysis
Year 1	Year 2	Year 3	Industry Profile
Sales Growth	0.00%	170.00%	20.00%	3.71%
Percent of Total Assets
Other Current Assets	0.00%	0.00%	0.00%	44.76%
Total Current Assets	27.25%	63.12%	89.89%	80.71%
Long-term Assets	72.75%	36.88%	10.11%	19.29%
Total Assets	100.00%	100.00%	100.00%	100.00%
Current Liabilities
Accounts Payable	6.46%	7.49%	9.39%	27.67%
Long-term Liabilities	25.13%	20.26%	15.40%	14.39%
Total Liabilities	31.60%	27.75%	24.78%	42.06%
Net Worth	-30.64%	22.42%	71.49%	57.94%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	95.00%	95.00%	95.00%	100.00%
Selling, General & Administrative Expenses	183.48%	90.82%	82.77%	77.50%
Advertising Expenses	0.00%	0.00%	0.00%	1.52%
Profit Before Interest and Taxes	-86.48%	6.59%	17.87%	3.26%
Main Ratios
Current	1.02	3.02	8.33	2.29
Quick	1.02	3.02	8.33	2.00
Total Debt to Total Assets	130.64%	77.58%	28.51%	55.30%
Pre-tax Return on Net Worth	1631.60%	274.86%	124.42%	10.01%
Pre-tax Return on Assets	-499.91%	61.62%	88.95%	22.39%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	-88.48%	4.18%	12.23%	READ MORE  Carpet and Upholstery Cleaning Services Web Plan Summary < Business Plan Outline Executive Summary Company Summary Services Market Analysis Summary Strategy and Implementation Summary Web Plan Summary Management Summary Financial Plan Appendix “> Pro Forma Cash Flow Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Cash Received Cash from Operations Cash Sales $0 $0 $0 $4,104 $7,524 $12,483 $13,338 $15,390 $18,468 $20,178 $21,888 $23,273 Subtotal Cash from Operations $0 $0 $0 $4,104 $7,524 $12,483 $13,338 $15,390 $18,468 $20,178 $21,888 $23,273 Additional Cash Received Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Subtotal Cash Received $0 $0 $0 $4,104 $7,524 $12,483 $13,338 $15,390 $18,468 $20,178 $21,888 $23,273 Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Expenditures from Operations Cash Spending $0 $0 $2,000 $16,000 $21,500 $21,500 $21,500 $21,500 $21,500 $21,500 $21,500 Bill Payments $78 $2,337 $2,343 $2,707 $4,965 $5,933 $6,171 $6,212 $6,313 $6,461 $6,543 $6,625 Subtotal Spent on Operations $78 $2,337 $4,343 $18,707 $26,465 $27,433 $27,671 $27,712 $27,813 $27,961 $28,043 $28,125 Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Principal Repayment of Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Other Liabilities Principal Repayment Andrew Brooks Hello! I’m Andrew Brooks, a seasoned finance consultant from the USA and the mind behind phonenumber247.com. My career is built on a foundation of helping individuals and businesses thrive financially in an ever-changing economic landscape. At phonenumber247.com, my aim is to demystify the complex world of finance, providing clear, actionable advice that can help you navigate your financial journey with confidence. Whether it’s personal finance management, investment strategies, or understanding the nuances of market dynamics, I’m here to share insights and tools that can propel you towards your financial goals. Welcome to my digital space, where every piece of advice is a step closer to financial clarity and success! Related Post Plans Sporting Goods Retail Business Plans Andrew Brooks 16 September 2024 Plans Sightseeing Bus Tours Business Plan Example Andrew Brooks 13 September 2024 Plans Resort Hotel Ski Lodge Business Plan Example Andrew Brooks 13 September 2024 Leave a Reply Cancel reply Your email address will not be published. Required fields are marked * Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. You Missed Plans Sporting Goods Retail Business Plans Business What s the Difference Between a Small Business Venture and a Startup Invest How to Write and conduct a Competitive Analysis – Plans Sightseeing Bus Tours Business Plan Example Search for: