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Strayer Solving Health Issues Related to Lifestyle Diseases Discussion Response

Please respond to the following peer posting in 4-5 sentences:

The Few The Proud Fitness facility is a full-access workout facility focusing on training former and current military individuals to achieve their fitness goals successfully. All memberships will include a complimentary monthly 1-on-1 training session to prepare active-duty members for the often stressful work-related training drills and weigh-ins and help build fitness goals for other members.

1.Projected Sales

The Few The Proud will offer five service options which include 1) daily passes, 2) monthly memberships, 3) semi-annual memberships, 4) annual memberships, and 5) For-hire corporate fitness and training sessions.

For the first year ending in March 2022, projected sales are estimated to be roughly $631,343. Corporate-sponsored events will drive almost 70% of this. In the second year, sales are projected to increase to $875,785, making The Few The Prouds two-year projected sales more than $1 million.

2.Personnel Overview

Operational start-up tasks will be led by a collaborative team of four employees, with the CEO (myself) serving as management.

As the company expands in the second year, we will hire an additional administrative team member to handle increased membership handling and day-to-day activities.

We will also hire a manager in year 2 to lead the team and allow the CEO to focus on securing investment funding for company expansion. Lastly, to handle the growth, an additional productions team member will be joining the team to onboard new members and handle corporate off-site events.

As mentioned above, the management team will consist of just the CEO for the first year.

The CEO is a retired military veteran with a Ph.D. in Biological Science and a Masters of Business Administration. This individual has experience with the target audience, a scientific understanding of fitness and training, and extensive knowledge relating to grant writing and finance statements. They will be well-equipped to build a team of well-rounded individuals to meet corporate goals.

3.Funds to Date and Funds you plan to raise

The Few The Proud will initially be funded by personal funds from the CEO with a beginning balance of $500,000.

In Q2 2022, we will seek a Navy Federal Credit Union business loan for an additional $200,000 at 6% interest for a 48-month term. The purpose of this loan will be to hire other staff, increase marketing campaigns, and expand the brand to open a second location.

We will seek additional funding from an angel investor in Q1 2023 for $500,000 for 10% equity in the business. The Few The Proud will be positioned to expand and need the funding to support the brand’s expansion.

4.Use of Funds

With the additional funding, The Few The Proud will plan to make the following expenses:

  1. Hire additional staff:
    1. Two new managers at a $40,000 salary
    2. Two additional Personal Trainers $30,000
  1. Purchase a facility to expand the business. The current space is being rented and will allow The Few The Proud an opportunity to build clientele in a prime location. However, rental real estate is expensive and will increase per the lease agreement after five years. The Few The Proud will want to purchase an equivalent space to secure a facility and will be projected to cost roughly $1.3 million.

The additional funds from the investors will help support these two efforts.

5.Break-Even Analysis

The average break-even number for years one and two is $21,705 and $32,241, respectively.

Projected Profits

Estimated profits for year one is $299,295 and $399,772, respectively.


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