Team Freedom Fitness | Application Preview
Team Freedom Fitness is applying for government grants to boost its operations as restrictions on gyms ease in 2021. The business aims to leverage the post-holiday peak in gym memberships and plans to invest $5,000 in advertising. However, a previous investment produced no customer growth, leading to a total loss of $5,000. For the upcoming year, expenses for new equipment and Personal Equipment Protection (PEP) will exceed $10,000. Team Freedom Fitness projects further losses of $17,000 this year, but aims for profitability in 2022 to avoid being categorized as a "hobby business" by the IRS.
The business plan outlines strategies to attract new clients, primarily through social media and targeted ads on platforms like Google, Nextdoor, and Yelp. The owner emphasizes the strength of the product, noting no membership reductions, only growth. The challenge lies in driving foot traffic to the facility.
The funding rationale highlights the owner’s military background as a C-130 pilot in the Air Force Reserves, emphasizing core values of integrity, service, and excellence. The owner’s approach to business mirrors these values, aiming to provide outstanding service and a positive experience for clients.
Competitive analysis reveals that small garage gyms are the primary competition, rather than larger chains. Despite superior equipment and facilities, the business struggles with visibility. Networks and word-of-mouth advertising have recently been explored as strategies to connect with potential clients.
Team Freedom Fitness differentiates itself by offering diverse health plans tailored to various body types and ages. The facility boasts larger and newer equipment compared to local competitors, attributed to better access to capital and loans. Overall, the application seeks to legitimize the business and pave the way for sustainable growth.
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General Information
Business Registration Number: 9176836
Location: Phoenix, AZ, United States
Length of Operation: 1
Number of Employees:
Annual Gross Income:
Annual Gross Expense:
Open to Loans: NO
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Funding Usage
With a new year starting, 2021, the restrictions on gyms is starting to ease. Which means more customers can signup at gyms. Also post-holidays is always the peak season for gym memberships. I can write-off $5000 of advertising expenses. But I’d like to use a consulting firm in order for them to manage advertising. I tried last year and gained zero customers on a $5000 budget. That’s a total loss of $5000. Costs for new equipment and the increase in required Personal Equipment Protection (PEP) will total over $10000 this upcoming year. Now I can handle another loss this year but 2022 must show a profit or I must close due to IRS “hobby business” limits. I will be taking a $17,000 loss this year. I’m trying to limit losses in order to legitimize my small business. This is my first application for small business grants. Any feedback for further successful grant applications is appreciated. Thank you sir/ma’am.
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Business Plan
Initial startup costs are a hurdle to get over in less than 3 years. I plan to advertise in order to bring in new clients. Social media is mostly free but websites such as Google Ads, Nextdoor, and Yelp will generate traffic towards my website and physical business location. A consulting firm with proven strategies could also generate business. The product sells itself. We have had zero reductions in memberships. Only additions. We just have to generate traffic in our doors. I’m a United States Air Force Reservist with 17 years in the military as a C-130 pilot. I run my business like I run my life through the core values of the USAF. 1. Integrity First. It is a dying trait. 2. Service Before Self. I’ll give clients the shirt off my back in order for them to have a positive experience. 3. Excellence in all we do. If you’re not trying then why are you doing this? You go at every endeavor with 100% effort. Period.
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Self Identified Competition
Big box gyms are not my competition. Small garage gyms are. There are several in the area. We have superior equipment but nobody knows about it. My competitors advertise more which results in more clients. I’m actually friends with one of my competitors. She advertises by word of mouth in big box gyms. I just started that angle. We have multiple health plans for different body types and ages. My competition seems to have only a few plans. We excel in this aspect. Our facilities are superior in age of equipment, size, and space. I dedicated an RV garage to our business space while my competitors have 1/5 of the space. I’ve invested more into my equipment as compared to my competitors. This is only because I had more access to capital and loans than they did.
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Contact Applicant
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