Anzah Mustafa

BUSINESS PLAN FY 2020 PREPARED BY: https://www.linkedin.com/company/prisma-consultancy-and-management-services BUSINESS PLAN Recball FY 2020 CONTENTS CONFIDENTIALITY/EXCLUSIVITY ........................................................................................................ - 3 DISCLAIMER ........................................................................................................................................ - 4 ABBREVIATIONS ................................................................................................................................. - 5 EXECUTIVE SUMMARY ....................................................................................................................... - 6 WHAT IS RECBALL? – AN INTRODUCTION ......................................................................................... - 8 RECBALL’s MISSION, VISION & MOTTO ............................................................................................. - 8 RECBALL’s GOALS AND OBJECTIVES .................................................................................................. - 8 BUSINESS OPPORTUNITY ................................................................................................................. - 10 PROBLEM WORTH SOLVING ........................................................................................................ - 10 OUR SOLUTION ............................................................................................................................. - 11 OUR PRODUCT/SERVICES................................................................................................................. - 12 THE GAME-CHANGER ................................................................................................................... - 12 The Product Itself ..................................................................................................................... - 12 Machine (Unit’s) Specifications ............................................................................................... - 13 MARKET ANALYSIS ........................................................................................................................... - 14 GENERAL OVERVIEW .................................................................................................................... - 14 MARKET SIZE & GROWTH FORECAST – GLOBAL SCALE .............................................................. - 14 Global Behavioral Healthcare Market ..................................................................................... - 14 Global Health & Fitness Club Industry ..................................................................................... - 15 Major Players Across the Globe ............................................................................................... - 15 Global Key Market Drivers ....................................................................................................... - 16 MARKET SIZE & GROWTH FORECAST – United States (US) SCALE ............................................. - 18 US Behavioral Healthcare Market ........................................................................................... - 18 US Health and Fitness Club Market ......................................................................................... - 19 Key Market Drivers in California .............................................................................................. - 20 Conclusion on Market .............................................................................................................. - 20 COMPETITION ANALYSIS .................................................................................................................. - 21 Traditional Gyms ...................................................................................................................... - 21 Mental Health Clinics ............................................................................................................... - 23 COMPETITIVE ADVANTAGE .......................................................................................................... - 24 SWOT Analysis .......................................................................................................................... - 25 SWOT Analysis Conclusion ....................................................................................................... - 26 EXECUTION & IMPLEMENTATION STRATEGIES ............................................................................... - 28 - -1- BUSINESS PLAN Recball FY 2020 BRIEF DESCRIPTION OF RBL ......................................................................................................... - 28 RBL’s BUSINESS MODEL & SERVICES ........................................................................................... - 29 Annual Members ...................................................................................................................... - 29 Membership plans.................................................................................................................... - 29 First Facility Location ................................................................................................................ - 29 Timings ...................................................................................................................................... - 30 RBL’s REVENUE MODEL ................................................................................................................ - 31 RBL’s MANAGEMENT & PERSONNEL DETAILS............................................................................. - 32 Founder & Management Team ................................................................................................ - 32 Envisaged Company Structure ................................................................................................. - 32 Corporate Profile of RBL’s Management ................................................................................. - 32 Planned Recruitments .............................................................................................................. - 33 Payroll Expenses ....................................................................................................................... - 34 Envisaged Company Structure ................................................................................................. - 34 FUNDING & EXPENSES ................................................................................................................. - 35 MARKETING & SALES........................................................................................................................ - 36 RBL’s MARKETING STRATEGY ...................................................................................................... - 36 Marketing Objectives ............................................................................................................... - 36 Target Customers ..................................................................................................................... - 37 Marketing Channels & Techniques .......................................................................................... - 37 Customer Acquisition & Growth Strategy ............................................................................... - 38 Marketing Budget..................................................................................................................... - 38 FINANCIAL INFORMATION ............................................................................................................... - 39 INCOME STATEMENT ................................................................................................................... - 39 BALANCE SHEET ............................................................................................................................ - 40 CASH FLOW STATEMENT .............................................................................................................. - 41 - -2- BUSINESS PLAN Recball FY 2020 CONFIDENTIALITY/EXCLUSIVITY The Business Plan (hereinafter will be referred to as “Report/report” shall be provided as exclusive and confidential submissions to the management and employees of Recball (hereinafter will be referred to as “Company”) and its affiliates. These should not be used, reproduced or circulated for any other purpose, whether in whole or in part without our prior written consent, which will only be given after full consideration of the circumstances at the time, other than, potential investors, co-investors, advisors, investee companies and related companies who have entered into a nondisclosure agreement with the Company. The Company will not be held responsible for the reliance on information placed by any third party in the event of disclosure of such information by the Company to any such party. The Consultant will provide the advisory services on an exclusive basis to the Company and the Consultant shall not engage, either directly or indirectly, in any business or professional activities, which would conflict with the activities assigned under this assignment. The Consultant shall not, either during the term or after the expiry of the services noted in this letter, disclose any proprietary or confidential information relating to the assignment without the prior written consent of the Company, unless such a disclosure is required by law or regulation or such information has entered the public domain other than through breach of these terms. -3- BUSINESS PLAN Recball FY 2020 DISCLAIMER The consultant will exercise all reasonable and proper skill and attention necessarily required to discharge its duty of care to you (the Client) within the parameters of the agreed scope of work. -4- BUSINESS PLAN Recball FY 2020 ABBREVIATIONS The abbreviations used in the below mentioned plan are stated as under: Abbreviations -5- APA American Psychological Association CAGR Cumulative Annual Growth Rate CEO Chief Executive Officer IHSRA International Health, Racquet & Sports club Association RBL Recball EXECUTIVE SUMMARY This business plan is prepared for creating a roadmap for Recball (referred hereinafter to as “RBL”, the “Company” or “we") and to serve as a strategic document for achieving both short-term and long-term goals of the Company while also serving as a principal document for the intended raise of capital from our prospective investors. Health and fitness industry are on an upsurge across the Globe. Health and Fitness centers and fitness devices are on the rise, and people regardless of their age are taking steps to better their health and pursue an active lifestyle. According to Acumen Research and Consulting, the global behavioral health market was valued at US$202 billion (approx.) in 2019 and is projected to grow at a CAGR of around 2.5 % to reach an estimated value of US$ 240 billion by 2026. Further, according to research by Market Study Report LLC, the global health and fitness club market was valued at US$ 94 billion in 2019 and is projected to grow at a CAGR of around 7.7 % to reach an estimated value of US$ 159 billion by 2026. Rising awareness among people to have a healthy lifestyle, an increasing number of lifestyle-oriented diseases, and rising incidences of mental health problems are the primary driving factors for the global fitness industry. Out of various ways of staying healthy and fit, joining a fitness clubs, gyms, or engaging in physical activity is becoming the most preferable option. Modernization, rising disposable income in developing countries, rising number of fitness clubs and gyms, have propelled the growth of the market significantly. Further talking from the US perspective, according to IBIS World US behavioral health market was valued at US$ 18 billion (approx.) in 2019, and assuming Acumen’s global market growth rate we arrive at a value of US$ 21 billion by 2026. Further, according to Wellness Creative Co., the US is the world's largest health and wellness market , and was valued at US$ 30 billion (approx.) in 2019 and is projected to grow' at a CAGR of around 6.7% to reach an estimated value of US$ 47 billion by 2026. The increasing trend towards fitness activities is also because of the increasing awareness among people about the mental health benefits associated with physical activities. Some of these benefits include: ❖ Decreased stress, depression & anxiety: Exercise is a fantastic way to reduce stress as it relaxes the muscles, relieves tension and is a scientifically mood booster. (Mayoclinic.org ) BUSINESS PLAN Recball ❖ Boosting happy chemicals: When you exercise, your body releases chemicals called endorphins which trigger a positive feeling. (Hanard T.H. Chan School of Public Health) ❖ Increased self-esteem and self-confidence: Working out not only makes you feel better but seeing your body change will do wonders to your confidence. (American Psychological Association (APA)) ❖ Better sleep: Physical activity increases body temperature, which has calming effects on the mind.(Sleepfoundation.org ) Although new fitness centers are attracting considerable investment, little real knowledge about market dynamics, growth potential or customer persona exists and the industry at present seems to be facing various problems. The core problem being faced by the health and fitness industry is that mental and physical health are provided separately, resulting in individuals normally only choosing physical fitness while ignoring mental fitness which is a key to a healthy life. RBL will serve as a wellness retreat and offer various subscription plans with varying payment plans and amenities to its subscribers. The Company’s first state of operations will be Los Angeles (where we will register our company as a local entity ). Starting from Simi Valley, we will he expanding to the rest of Los Angeles as well and our ultimate goal is to be a US-wide holistic health provider. According to IHRSA, Health and fitness industry in Los Angeles earns $2.8 billion in revenue annually. Los Angeles has a large population of 12.4 million having a median age of 38 and a median household income of $64,281 in 2018. We have chosen Rancho Tapo Community Park as our first location because of its large population having good disposable. To achieve both its short term and long-term objectives, RBL intends to raise equity funding of $ 1.5 million in seed funding against 10% of the Company. The amount will be used for construction/renovation of the facility, salaries for staff and will help us get our operations off the ground. -7- FY 2020 BUSINESS PLAN Recball FY 2020 WHAT IS RECBALL? – AN INTRODUCTION Core information about Recball is presented as under: Corporate Name Recball, LLC. Legal Structure Limited Liability Company. Founders & CEO Mr. Boris Boundjia Business Nature Health, Fitness & Lifestyle Office Location Los Angeles Target Market Starting from Los Angeles then expanding to rest of California and then go global. RECBALL’s MISSION, VISION & MOTTO Recball’s mission is: “To bring people together and encourage an active lifestyle by providing an easy and affordable way to play sports.” As for the Vision: “Be a global phenomenon representing fitness industry in association with major and renowned sports and fitness brands.” And our Motto is: “Rent a ball for the price of a cup of coffee.” RECBALL’s GOALS AND OBJECTIVES Accomplishment of entity’s goals and objectives is the only way to ensure that performance targets which were set by the higher management are being met and the organization is moving in the right direction. By keeping such ideology in view, RBL has set its goals and related objectives, details of which are mentioned below: ❖ Achieve high levels of customer satisfaction by offering high quality and reliable service, while operating ethically as well. ❖ Increase our brand awareness, engagement , and market share through customer trust and word of mouth referrals. ❖ Successfully build our customer base in vicinities of Los Angeles i.e. parks, beaches, colleges and universities campuses, private complexes and hotel resorts. and then expand to other cities of California, and eventually develop our facilities to the rest of the US. -8- BUSINESS PLAN Recball FY 2020 ❖ To build business relationships with stakeholders in the health and fitness industry and solidify the values and caliber of the brand. ❖ To engage in business alliances, partnership formation that commands increasing patronage and exposure to new opportunities for our service recognition and patronage across the US. ❖ Help the community by providing quick services to youngsters and job opportunities within our Company.; and ❖ To become financially sustainable through developing a business model, which offers sustainable returns, increasing investments, and encouraging profit re-investment and periodic review of financial reports. -9- BUSINESS PLAN Recball FY 2020 BUSINESS OPPORTUNITY PROBLEM WORTH SOLVING Health and fitness industry is on an upsurge. Health and Fitness centers and fitness devices are on the rise, and people regardless of age are taking steps to better their health and pursue an active lifestyle. Although new fitness centers are attracting considerable investment, little real knowledge about market dynamics, growth potential or customer persona exists and the industry at present seems to be facing following problems (due to which the success of many fitness centers remains variable): The most important problem that the health and fitness industry face is that conventional wisdom assumes that a person’s external appearance identifies them as healthy individuals and based on this belief mental and physical health care is considered and provided separately. Humans cannot thrive on physical fitness alone and may at times require mental health care as well. However, most people believe that a healthy body is a sign of a healthy mind and that the term fitness only refers to the physical fitness of an individual. This assumption leads to the existence of modern-day gyms and sports clubs which only provide services to exercise the body and the exercise of the human mind is ignored. The human mind is also a muscle that requires exercise and counseling to stay fit. for which separate mental health clinics exist. Problems with modern day gym and sports clubs are: ❖ Pricing: Pricing of sports facilities is often arbitrary with little transparency or justifications of any costs and often a lack of value for money compared to the facilities on offer. In fact, it can work both ways with some school or community sites probably not charging enough. Either way there is no consistency across the board and high prices are a barrier to participation for the mass market. Often smaller, even charitable organizations are priced out of booking facilities, as they compete for slots with commercial organizations who are willing to pay more, pay on time and are reliable. The problem is that what they offer is also out of the price reach of the mass market and aimed at more affluent city types. ❖ Locality / Gym or club’s location: To become financially sustainable many sports venues, need to take difficult planning decisions which come in to conflict with local residents. Typical examples are floodlit applications which can affect neighbor’s gardens who object due to potential increased noise and traffic from evening bookings and users. These opinions have strong weighting in planning applications with local authorities having an innate fear of being seen as unpopular - it's simply politics. Other examples can be buildings on metropolitan open land to encourage the sustainability of facilities. ❖ Unavailability of up-to-date and well-maintained equipment: In today’s day and age, consumers constantly search for the best. Similarly, when it comes to a sports club or gymnasiums, clients expect to get the best available equipment at their disposal. Equipment that are constantly used require frequently maintenance service to ensure its smooth operation. However, to avoid the maintenance expense many clubs often ignore the scheduled maintenance. This ignorance causes a deep impact on the brand name along with the loss of clients and revenue. - 10 - BUSINESS PLAN Recball FY 2020 ❖ Associated Services – Value for money Associated services are one of the reasons which add value to customer experience. Unfortunately, in gyms or other complexes, customers have to face huge difficulty as they are charged separately for lockers and charging pods. Now because of COVID-19, hand sanitizers and masks are compulsory for every customer. This added up to the price, hence monthly subscription fee has been increased. ❖ Lack of Innovation. When you join a gym or a sports complex, you get to see that the basic aim of the management is to make money. Once the dollars start flowing in, they simply turn a blind eye towards innovation. Nothing special is considered which could engage the customer’s attention. OUR SOLUTION To deal with the above-mentioned problems, RBL’s management has come up with modern day solutions. ❖ Pricing As our motto goes “Rent a ball for the price of a cup of coffee“, therefore, to consider the ease of usage of the services, RBL has introduce low price model to make the services affordable for every athlete. This will surely give us some time to bring profits, but in the longer run, when we are operating on mass volume of customers, this will be our core benefit. ❖ Locality To address the issues of locality and reduce the operational expenses in renting bigger spaces and operating through there, RBL has come with a simple solution and that is to operate through public parks, communities, beaches, schools, colleges, and universities. We have devised a RBL unit similar in shape to traditional vending machine, and the only thing a customer has to do is to just log into RBL’s app, get a booking, pay online, and get the ball for the sport he wants to play. With doing so, we have ensured that we interact with people in a very productive way and on the same time we give them a “money worth spending” experience. ❖ Equipment Just like traditional gyms and sports centers, the equipment will only be changed when they are broken beyond repair. But here at RBL, we have ensured that complete and thorough balls’ quality will be checked regularly. If any flaws are spotted there, balls will be immediately replaced. Secondly, if complain is launched by the customer, we will make sure that required actions are taken at once, without compromising customer’s experience. One of the innovative things which we have included in our RBL machine units, is that we have included charging pods inside the ball’s locker. Locker will be only accessed through either the code sent to customer’s mobile phone. At playfield, you will be totally free of the fear to lose your phone or have its screen cracked in case you tremble or a hard hit endured by you. As we all are dealing with COVID-19, the management has also placed hand sanitizers dispensers on the machine. Just few drops will keep you safe once you are done with the play. ❖ Subscription method A robust application has been devised which is free to download and easy to explore. You just need to hit “sign up” button, and it will guide you through there. This will not only help the customer to keep in touch with the customer support in hour of need, but will help in paying the dues, placing feedbacks, exploring discount packages. - 11 - BUSINESS PLAN Recball FY 2020 OUR PRODUCT/SERVICES THE GAME-CHANGER Why we call our product/service “the game changer” is because it is a concept which will revolutionize the sports industry. One of the biggest reasons why RBL was founded, was because whenever you want to play ball, you would enjoy if that ball is better in quality and the services rendered are satisfactory. A low-quality ball will not provide you with an everlasting game experience. Secondly, the ball unit (i.e. ball machine) is state of the art unit. They only way to open it is when you have the code. Unless you have it you can’t access it. The bigger thing is, machine won’t get stuck. It’s not like other vending machines which gets stuck sometimes. Ball machine is also fitted with UV Light Sanitization technology. It helps in keeping balls germs free for next use. Third major ingredient in this mix is the provision of charging pods. You take the ball out, place your mobile inside the locker. You will feel secured as your phones are on charging and are in safe hands. To have a glance, below is the RBL Ball Machine Unit. The Product Itself - 12 - BUSINESS PLAN Recball FY 2020 Machine (Unit’s) Specifications The units are imported from China. Single unit $3,220. The specifications of the unit are given as under: Description Units Height of the Machine Length of the Machine Width of the Machine Machine’s distance from the surface (below) Number of Lockers Hight of locker Length of locker Width of locker 1,833.50 mm 1,030 mm 355 mm 95.80 mm 8 in number 340 mm 377 mm 355 mm - 13 - BUSINESS PLAN Recball FY 2020 MARKET ANALYSIS GENERAL OVERVIEW Health and fitness industry is on an upsurge. This is because a lot of companies are seeing an opportunity to capitalize on by creating solutions to the fitness problems faced by the people. Fitness centers, gyms, and fitness devices are on the rise. While they continue to attract fitness conscious individuals and also create awareness around health and wellness, industries like athletic wear, nutritional consulting, personal training are on the rise as well. People regardless of age are taking steps to better their health and pursue an active lifestyle. The female fitness industry is at the forefront of the wellness movement. More women are taking up exercises that challenge the stereotypes about women's physical strength. There has been a surge in interest in boxing, CrossFit, and bodybuilding among women. Strong is the new sexy and pushing your limits is the goal. Below we look at various aspects of growth in this sector. MARKET SIZE & GROWTH FORECAST – GLOBAL SCALE Global Behavioral Healthcare Market According to Acumen Research and Consulting, the global behavioral health market was valued at US$202 billion (approx.) in 2019 and is projected to grow- at a CAGR of around 2.5 % to reach an estimated value of USS 240 billion by 2026. Global Behavioral Healthcare Market - - - 14 - - - 2022 - - 2025 - 2026 BUSINESS PLAN Recball FY 2020 Global Health & Fitness Club Industry Health and fitness industry are one of the world's largest and fastest-growing industries today. According to research by Market Study Report LLC, the global health and fitness club market was valued at US$ 94 billion (approx.) in 2019 and is projected to growth at a CAGR of around 7.7 % to reach an estimated value of USS 159 billion by 2026. Global Health & Fitness Club Industry - - - - 2022 - - 2025 2025 2026 2026 Major Players Across the Globe By revenue, the three largest gym chains globally are LA Fitness ($2.1 billion), Konami Sports & Fitness ($2.02 billion ), and Life Time Fitness ($1.55 billion) [Wellness Creative Co. 2019). - 15 - BUSINESS PLAN Recball FY 2020 Global Key Market Drivers Rising awareness among people to avail a healthy lifestyle, an increasing number of lifestyle-oriented diseases, and rising incidences of obesity are the primary driving factors for the global fitness industry. Out of various ways of staying healthy and fit, joining a fitness club is becoming the most preferable option. Modernization rising disposable income in developing countries, rising number of fitness clubs and gyms, have propelled the growth of the market significantly. ❖ Rising Mental Health Problems: As much economic stability, physical fitness industry offers, mental fitness clubs/clinics are ignored by that much. As reported by the World Health Organization (WHO) one in four people in the world will be affected by mental or neurological disorders at some point in their lives. Around 450 million people currently suffer from such conditions, placing mental disorders among the leading causes of ill-health and disability worldwide. Treatments are available, but nearly two-thirds of people with a known mental disorder never seek help from a health professional. Stigma, discrimination, and neglect prevent care and treatment from reaching people with mental disorders, says the World Health Organization ( WHO). The report says some mental disorders can be prevented; most mental and behavioral disorders can be successfully treated; and that much of this prevention, cure, and treatment is affordable. Up to 60% of people with depression can recover with a proper combination of antidepressant drugs and psychotherapy. Up to 70% of people with epilepsy can be seizure free when treated with simple, inexpensive anticonvulsants. Over 80% of people with schizophrenia can be free of relapses at the end of one year of treatment with antipsychotic drugs combined with family intervention. About 25% of countries, however, do not have the three most commonly prescribed drugs used to treat schizophrenia, depression, and epilepsy at the primary health care level. ❖ Life Style related Illness: Since the introduction of technology and automation in the workplace, the average job and lifestyle are increasingly sedentary. In 2014, almost 40% of adults were overweight. In the US, that number shoots to 70%, making it the most overweight country in the world. Millennials and Gen Z'ers are also more worried as compared to previous generations. ❖ Influence of Social Media: Health and fitness are a social media phenomenon. On Instagram, #fitness hashtag has over three hundred million posts. According to Statistica, approximately 2.5 billion people are using social media platforms today. Social media influences are also considered to be one of the driving forces behind the growth and success of the health and fitness industry. They play an instrumental role in promoting healthy eating, exercise, and a desire for having a lean, athletic physique. - 16 - BUSINESS PLAN Recball FY 2020 ❖ Increasingly health-conscious customers: There's a proliferation in digital content around the topic of health and wellness. Google search for “health and wellness" yields 500 million-plus results, with a search volume of over 12,000 per month in the USA. ❖ A shift in attitude towards health care: Many healthcare professionals and nutritionists suggest a healthy and active lifestyle — from the food you consume to your level of activity — to tackle problems associated with poor health. Majorly because it's cheaper than curative solutions and other cosmetic and medical solutions. From 2000 to 2010, there was an increase of 10% in the healthcare professionals that recommended healthy eating and regular exercise to their patients. Resultantly, activities like yoga have grown in popularity, with an increase of 50% from 2012 until today. Gym memberships have almost doubled in popularity since 2000, now with over 60 million people having memberships in the US alone. - 17 - BUSINESS PLAN Recball FY 2020 MARKET SIZE & GROWTH FORECAST – United States (US) SCALE US Behavioral Healthcare Market US behavioral health market was valued at US$ 18 billion (approx.) in 2019 and assuming Acumen’s global market growth rate we arrive at a value of US$ 21 billion by 2026. (2018 source: IBIS World) US Behavioral Healthcare Market - - - - 2022 - - 2025 - According to the National Alliance on Mental Illness ( NAMI ): ✓ 1 in 5 U.S. adults experience mental illness each year; ✓ 50% of all lifetime mental illness begins by age 14, and 75% by age 24; ✓ Suicide is the 2nd leading cause of death among people aged 10-34; ✓ Only 43.3% of U.S. adults with mental illness received treatment in 2018. - 18 - 2026 BUSINESS PLAN Recball FY 2020 US Health and Fitness Club Market According to Wellness Creative Co., the US is the world's largest health and wellness market, with 38,477 clubs, and US health and fitness club market was valued at US$ 30 billion (approx. ) in 2019 and is projected to grow at a CAGR of around 36.7% to reach an estimated value of US$ 48 billion by 2026. US Behavioral Healthcare Market - 2020 2019 - 19 - 2021 2020 2022 2021 2022 2023 2023 2024 2024 2025 2025 2026 2026 BUSINESS PLAN Recball FY 2020 Key Market Drivers in California According to IHRSA. the health and fitness industry in California earn $ 2.8 billion in revenue annually. The upsurge of Health and fitness clubs in California is parallel to that of the health club industry in the U.S. With a total population of 39.9 million having a median age of 36 and median household income of $59,246 and 8.87 million people visiting health clubs it provides a large customer base for health and fitness clubs. California State is reported to have over 4,326 health clubs by IHRSA. Several health clubs experienced a growth rate of 10% from 584 health clubs in the previous year. The State’s poverty rate is only 14.3% only as reported by Data USA. 92.8% of the population of California state has health coverage. Per capita, personal health care spending in the state is estimated to be US$ 63,593 in 2020. According to Mental Health America, California is ranked 50 out of the 50 states for providing access to mental health services, representing a shortage of mental health services and a major market gap. Lack of mental health professionals is such that each mental health care professional is reported to see 1,280 patients per year on average to cover 37.7% of the California state's population requiring services of mental health professionals. The following mental illnesses have been reported in 2016 by Data USA: ✓ 6.04% of individuals in California have major depressive episodes; ✓ 3.61% of individuals with serious mental illness; ✓ 11% of individuals die of drug overdosage; and ✓ 18% of individuals have a habit of excessive drinking. Conclusion on Market Market, hence all across the US and our chosen locations is very strong for the health and fitness industry and is thriving with growth and investment. With strong industrial growth numbers at the back and people’s shifting attitude towards fitness, the market is sufficiently strong for us to build our business and with our unique value proposition capture a major share of the market. - 20 - BUSINESS PLAN Recball FY 2020 COMPETITION ANALYSIS Our competition is largely from the overall wellness industry with no direct competitors as no other health and fitness club provides ball renting facilities to its members. The indirect competition consists of traditional alternatives such as mental health clinics and gyms, posing a higher degree of a challenge since they already have a sound customer base and located at convenient locations. Based on an analysis of our target market we anticipate our indirect competition to include the following: Traditional Gyms Traditional gyms include focusing only on physical fitness based on the belief that a healthy body would automatically create a healthy mind. Even with increasing awareness among people about mental health and what is required to stay mentally fit, many people tend to stick to old methods of fitness which only benefits them physically. Some of our possible major competitors in this category include: Competitor’s Contact Name Information Description of Services Fee/Charges Yearly Front Walk, Muscle Beach Venice is the “Home of • Bodybuilding”, nestled right in the heart of Los Angeles, Venice Beach since 1963. Some of the $200 CA 90401- biggest names in bodybuilding and film • including Franco Columbo, Lou Ferrigno, Yearly Arnold Schwarzenegger and Frank Zane $100 (age 60 & have all called Muscle Beach Venice home. over) Bodybuilders and bodybuilding enthusiasts • still flock to this outdoor gym to work out Seven Day Pass and be a part of the bodybuilding tradition. in Muscle Beach Venice is open 7 days a week year) Muscle Beach 1800 Ocean Venice 3124 except for major holidays and rainy days. • Membership Senior Membership $50 (any 7 days Seven calendar Day Senior Pass $25 (any 7 days in calendar year -age 60 & over) • Day Pass $10 • Day Pass Senior $5 (age 60 & over) - 21 - BUSINESS PLAN Recball Gold’s Gym FY 2020 360 Hampton Dr, Los Angeles, CA- Planet Fitness 437 S Broadway Los Angeles, CA 90013 Gold’s Gym has been delivering results and If you want the transforming lives since 1965. As pioneers flexibility to use any of all Gold's Gym of the industry, we’re dedicated to clubs throughout providing you with the coaching, workout Southern California, plans, and amenities you need to All-Access is experience real change. From strength membership perfect for you! training and group exercise classes, to the Monthly latest cardio equipment and Personal membership fees Training options - our team is with you at are only about $2 a day! every step of your fitness journey. At Planet Fitness, unique environment is Two packages are provided in which anyone – and we mean being offered here, “Classic” for $10 anyone – can be comfortable. A diverse, per month and the Judgement Free Zone where a lasting, “Black Card” for active lifestyle can be built. Our product is a $22.9 per month. tool, a means to an end; not a brand name Such price is or a mold-maker, but a tool that can be used excluding taxes and duties. by anyone. In the end, it’s all about you. As we evolve and educate ourselves, we will Annual fee of $39 is to be given by all seek to perfect this safe, energetic the members of environment, where everyone feels gym regardless the they accepted and respected. We are not here to package choose. kiss your butt, only to kick it if that’s what you need. - 22 - BUSINESS PLAN Recball FY 2020 Mental Health Clinics Even though many Americans are deprived of mental health care still when it comes to it the first solution for them would be a psychiatrist. Mental health professionals have the benefit of the lack of existence and awareness of health clubs that provide both mental and physical health care. Many people with mental illness would search for a mental health professional rather than a health club of such sort. The fact that many mental health care professionals have their clinics in convenient locations people (i.e. in residential areas) further strengthens their position and would encourage people to visit them rather than going to a health club which is located at a long distance. Some of our possible major competitors in this category include: Competitor’s Contact Name Information Betterhelp BetterHelp (Available electronically) Description of Services Fee/Charges The world’s largest e-counseling platform, The cost of Batterhelp provides all kinds of mental therapy counselling such as private counseling, couples counseling,& ranges from teen counseling as well. It offers access to $60-$80 per licensed, trained, experienced, and accredited week psychologists (Ph.D./PsyD), marriage and family tehrapists (LMFT), clinical social workers (LCSW/LMSW) and board licensed professional counselors (LPC). Betterhelp enjoys a worldwide portfolio as it provides its services electronically. Ozar Wellness Address: Ozar Wellness House is a private health space Not available House 10390 Santa focused on total body wellness, including publicly. Monica Blvd functional fitness and posture correction. Ste 220 Los Angeles, CA 90025. members can come to them for anything and everything when in regards to their health. As Ph: 310-659- their understanding of the body expands, so 9911. will the breadth of services we make available @: Ozar Wellness House - 23 - At OWH, it is believed that the patients and to everyone. BUSINESS PLAN Recball FY 2020 COMPETITIVE ADVANTAGE The strategy of RBL focuses on being unique and competitive. The provision of means for achieving not only physical health but also mental health at a single place makes RBL unique from other clubs. Further, Given below is a detailed analysis of our competitive advantages: ❖ First mover advantage: Currently no competitor provides ball rental facility that is the reason we are having no direct competitor in the market; ❖ Ability to target both the mental and physical health market: This is where our business model offers us a huge competitive advantage. By associating our brand with both services ( health & fitness, and mental), we can capture market share from both segments simultaneously. ❖ Lower operational costs as compared to industry: To keep our operational costs in check, we will be following lean management principles and since we do not have to open separate facilities for provision of our services, our business model already gives us a huge competitive advantage here. The only major cost we will be baring would be the cost of RBL’s machine units. ❖ State-of-the-art and up-to-date equipment: To solve the problem of old and crappy equipment, we will not be purchasing our ball machines from anyone other than our only quality suppliers and constantly keeping it up-to-date and maintained. ❖ The brand for young ones: We are associating ourselves with young ones such as school or college students. Therefore, we are aiming to conduct summer camps and sport galas for both category of students. This will not only help the students get fit, but will help us in our brand promotion. ❖ Location: We will be starting with Los Angeles which an affluent market area with people having good disposable income here. Further, all RBL machines will be installed on prominent and easy to access locations. - 24 - BUSINESS PLAN Recball FY 2020 SWOT Analysis SWOT (strengths, weaknesses, opportunities, and threats) analysis is a framework used to evaluate a company's competitive position and to develop strategic planning. It assesses internal and external factors, as well as current and future potential, and is designed to facilitate a realistic, fact-based, and data-driven look at the strengths and weaknesses of an organization. We know- that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats. Below is a summary of SWOT analysis for RBL. WEAKNESS STRENGTH ❖ First mover advantage in providing ball rental ❖ The idea can be imitated; ❖ Being a startup, it faces the risk of having facilities to public; ❖ Provision of lockers, and mobile charging pods on site; ❖ State-of-the-art equipment; ❖ Quality services provided to customers; inadequate funds needed for growth and expansion; ❖ No known comparable entities in existence to model after; ❖ A business model that supports efficient ❖ The Company is positioned as a new entrant in the market; and management of operational costs; and ❖ Our founder’s experience in leadership ❖ The cost of developing and growing the service in its commercial phase is not yet accurately determined. THREATS OPPORTUNITES ❖ The mental and physical fitness industry is on ❖ There are already older indirect competitors in the form of multiple fitness centers with the rise and with our right business model, we can capture a major share of the growing billion-dollar market; low membership fees; ❖ The high membership fee (in future) may ❖ RBL can leverage the active lifestyle that living result in difficulties in customer acquisition in California promotes and affords its and it might not feasible to run the business residents; profitably; ❖ Since we have the first-mover advantage, ❖ COV1D-19 impact has decreased the purchasing power of many people and they with the right marketing and service approach we can capture major chunk of physical & might not be interested in premium facilities health industries; and for a while; and ❖ The security of customer’s data my be compromised - 25 - if necessary, steps and BUSINESS PLAN Recball ❖ Opportunity to penetrate and establish in the areas where fitness facilities are not available FY 2020 technology are not place to counter the hacking attempts. as readily as compared to other areas. SWOT Analysis Conclusion RBL’s success lies essentially in the followings: • Offering a great member experience which will serve even greater value as compared to our premium prices. • Capitalize on the enthusiasm around sports in California by advertising RBL’s at prominent parks, beaches, schools, colleges and professional sporting events. • Quickly capturing market through effective marketing to capture individual and corporate sectors (NFL and other alike) and building strategic alliances with such sectors. • Maintaining integrity and security of customer’s personal data and building a strong defense against any hacking/information leakage risks. • Customer’s satisfaction is what will give us the necessary push to stay afloat in the market over considerable period of time. Some of the customer remarks are stated as under: Client: Anna Rimer Client: Jessica Hanamoto - 26 - BUSINESS PLAN Recball Client: Cindy Blubaugh Client: Rachelle Ratner - 27 - FY 2020 BUSINESS PLAN Recball FY 2020 EXECUTION & IMPLEMENTATION STRATEGIES The following are key execution plans and strategies that will be in place for the long-term success of RBL: BRIEF DESCRIPTION OF RBL RBL will be an exclusive, amenity-rich , all-inclusive wellness retreat and will strive to be a center that provides its members with the resources to convalesce their mental, physical, and emotional wellbeing. For many of the individuals, RBL serves as a place where they can unwind themselves after a rough day and build lasting camaraderie with their peers. RBL will serve as a wellness retreat where members can heal their minds and develop a healthy lifestyle. It is important to note that RBL will not serve as a center for bodybuilders, or training athletes. That is not our target market; although, they are certainly welcomed to join. However, we want to be sensitive that our members will come to us with various body compositions and athletic abilities. Therefore, RBL will specifically seek to serve as a wellness retreat for your everyday person, such as; the business executive, first responder, stay at home parent, educator, graduate student, etc. Essentially, all are welcomed to come as they are and leave a new person inside and out. More importantly. RBL seeks to be an asset in the fight against societal problems such as the rise in suicide, domestic violence, and broken family rates. A key component in achieving this objective is removing the burden for a person to access holistically health-based resources by conveniently offering them in a one-stop-shop. RBL is a sports ball rental service that makes having fun and staying active simple and convenient at an affordable price Boris Boundjia, a former college basketball player, who resides in Los Angeles, founded RBL. Bo, like many other Los Angeles residents, enjoys being outside and the warm weather that southern California has to offer. He would go to the park and see other people playing basketball and soccer or spot an empty volleyball court on the beach. He’d find himself feeling unprepared and wishing he had a ball. At that moment RBL was born. You don’t need to be prepared or tote a ball with you everywhere you go. RBL makes them available, affordably, in recreational areas. Bo hopes that RBL will motivate more people to be active and thinks that sports will bring friends and families together outdoors in a healthy way. RBL can also help in eliminating property loss. Bo has lost countless items while playing basketball at the park; he lost a chain that his mom gave to him when he was playing basketball on the playground. RBL allows you to leave your belongings safe inside the locker. You can play sports freely not worrying about your phone or wallet being stolen on the sidelines. Simply and conveniently have fun! RBL isn’t just fun and easy. It is also eco-friendly! As a young entrepreneur and with global warming at all-time high, it has been Bo’s responsibility to make sure that his business endeavors are always environmentally sound, and therefore, all RBL’s machines use solar-powered energy. - 28 - BUSINESS PLAN Recball FY 2020 RBL’s BUSINESS MODEL & SERVICES Being accessible through nearest park, playground, beach, community yards and school or college gymnasiums or ball courts, RBL is giving opportunity to every person who can associated themselves with sports, regardless of color, creed and age, to join in, unwind and feel the lighter side of life. For making this concept easily adoptable, the management of RBL has made the process a lot easier. You are just required to follow below stated steps: (I) (II) (III) (IV) Download the free RBL app available on Android and iOS. Find a Recball box at beaches and parks in your area. Scan the QR code on the locker touch-screen to rent a ball.* Return the ball when you are done and Walk away handsfree. * You can leave your personal items and charge your phone in the locker while you play. Annual Members RBL started operations in July 2020 and till now they have successfully registered 300 users. Membership plans It is RBL’s aim to make services as convenient as possible for all its members therefore, they have set their prices to be simple &transparent. Following are the details of RBL’s plans: FREE ROOKIE ALL-STAR First 15 minutes free every time you rent a ball, then $3/hour FREE First two hours free every time you rent a ball then $3/hour Unlimited ball rentals $5.99/month $9.99/month First Facility Location RBL started operating through Rancho Tapo Community Park, 3700 Avenida Simi (Lemon Dr), Simi Valley, CA, 93063. - 29 - BUSINESS PLAN Recball FY 2020 Timings The timings of RBL’s operations depends upon the location’s (park, beach, or gym’s) timings in which the ball machine is installed. - 30 - BUSINESS PLAN Recball FY 2020 RBL’s REVENUE MODEL Our business model equips us to have multiple monthly and annual revenue streams: Revenue Category Revenue Component Revenue from “Free” Members ❖ No monthly or daily subscription fee. ❖ 15 mins of ball rental will be free. From 16th minute, $3/hour will be charged. ❖ Monthly subscription fee charged to clients. ❖ First two hours every time client rents the ball will be free. From 3rd hour onwards, $3/hour will be charged. ❖ Monthly subscription fee charged to clients along with a facility to rent unlimited balls Revenue from “Rookie” Members Revenue from “All-Star” Members - 31 - Pricing $3.00 /hour $5.99/month $9.99/month BUSINESS PLAN Recball FY 2020 RBL’s MANAGEMENT & PERSONNEL DETAILS Key management and personnel details have been mentioned below. The following are envisaged to be implemented and operated based on actual circumstances at the time of implementation. Our operational details remain flexible and adjustable based on stakeholder requirements and changes. Founder & Management Team RBL although a new player in the fitness market, has behind its success drive the professional and leadership experience of our founder Mr. Boris Boundjia., which shall be leveraged for our Company's development and operational success. Further, the Founder will also hire a Board of Directors ( BOD) for assistance in strategic decision making and successfully leading RBL. The BOD will be appointed to guide, advise, and counsel the CEO and other executives and share their experience and expertise to assist with the growth and profitability of RBL. Moreover, the group will provide fresh ideas and unique perspectives to advance the mission and expand the reach of the Company. Envisaged Company Structure Founder & CEO Mr. Boris Boundjia Head-Business Development Head-Business COmmunication Mr. Mitch Garcia Ms. Alexxa Uslan Digital Marketing Advisor Ms. Morgnan Gordon Corporate Profile of RBL’s Management Mr. Boris Boundjia (Founder & CEO): Boris Boundjia, a former college basketball player, who resides in Los Angeles, founded Recball. Bo, like many other Los Angeles residents, enjoys being outside and the warm weather that southern California has to offer. He would go to the park and see other people playing basketball and soccer or spot an empty volleyball court on the beach. He’d find himself feeling unprepared and wishing he had a ball. At that moment Recball was born. You don’t need to be prepared or tote a ball with you everywhere you go. Recball makes them available, affordably, in recreational areas. Bo hopes that Recball will motivate more people to be active and thinks that sports will bring friends and families together outdoors in a healthy way. - 32 - BUSINESS PLAN Recball FY 2020 Mr. Mitch Garcia (Head – Business Development) Mitch has 7 years of logistics experience across multiple domestic freight carriers and has led operations in inbound planning, outbound planning, and city dispatch. He then moved on to business development as an account executive. He began his career in freight after completing a successful collegiate athletic career as a baseball player and spending two years playing independent baseball. Mitch earned an undergraduate degree in business administration with a concentration in management from Simpson University in Redding, CA in 2012. As the Head of Business Development, Mitch leads sales, growth management, and community relations. Under his stewardship, Recball has set out to make our communities a place where we create a fun and safe place for people of all ages. Coming to a park, school, or beach near you. Ms. Alexxa Uslan (Head – Communications) Alexxa has more than six years of experience in communications and corporate culture curation. As an HR professional, specializing in Employee Relations, community building, risk-assessment, and community out-reach are her specialties. Alexxa is also an active member of the non-profit social and racial justice group, SURJ (Showing up for Racial Justice) in affiliation with Black Lives Matter, as a phonebank Leader/Coach and Tech Support; Her proficiency and passion in effective reach helps her create content and messaging that connects effectively with an entire community. Alexxa received a BS in Communication at Boston University and turned her interest in consumer insights along with her innate people skills into a career she is excited about. Ms. Morgan Gordon (Advisor – Digital Marketing) Morgan is a former full scholarship recipient, Division-1 Track & Field athlete, at the University of Cincinnati. She got her Masters degree in Broadcast and Digital Journalism from Syracuse University and worked as a news anchor and reporter for a CBS News affiliate in Saginaw, Michigan. Currently, Morgan serves as Social Media manager at United Cerebral Palsy where she heads digital content development. Her passion for health & fitness and storytelling led her, without question, to be a part of the Recball team. Planned Recruitments RBL intends to build a resource-efficient company whereby the right team members characterized by their competency level, creativity, qualification, experience, and personal attributes are employed to fill all available positions in the company. For continuous support and operational success of RBL, a talented, experienced team would be recruited in 3 stages: Stage – 1 Recruitments: Such would be made at the start of incorporation. This would represent crucial resources, which are considered extremely necessary for the development and successful launch of our Company and would only include CEO and third-party contractors who would be involved in the development of Recball machines. During this stage, the founder will be directly involved in the main activities and would ensure that the structure of the Company remains lean so that no extra burden is made on finances. Stage – 2 Recruitments: - 33 - BUSINESS PLAN Recball FY 2020 Such would be made after we have entered the market and our first facility is operational. Stage 2 recruitment would consist of Head of Business Development, Head of Communications & Advisor Digital Marketing. Stage – 3 Recruitments: Such would be made around the 37th month of our operations. These would be made to ensure that the Company’s human resources are can adequately support the Company’s expansion plans. Our salary expense and number of staff positions details are summarized as below: Payroll Expenses Executive Position CEO Head of Business Development Head of Communications Advisor Digital Marketing Annual Salary Annual Salary Annual Salary Annual Salary Annual Salary No. of positions (Y1 $) (Y2 $) (Y3 $) (Y4 $) (Y5 $) 80K 100K 120K 120K 120K 1 60 K 60 K 60 K 60 K 60 K 1 60 K 60 K 60 K 60 K 60 K 1 10K 10K 10K 10K 10K 1 Envisaged Equity Structure Equity Distribution of the Shareholders is stated hereunder: Shareholder’s Name Equity Distribution (%) Boris Boundjia 90 Stephane Nembot 5 Jean Michael Pajot 2 Mitch Garcia 2 Alexxa Uslan 1 - 34 - BUSINESS PLAN Recball FY 2020 FUNDING & EXPENSES To achieve both its short term and long-term objectives, RBL intends to raise equity funding of $ 1.5 million in seed funding. The raised funds would be utilized as follows: Cost Description Admin Expenses Capital Expenditures 312,817.65 1,051,150.00 Intangible Assets 45,628.00 Inventory 10,100.00 Legal Expenses 10,076.00 Marketing Expenses 50,000.00 Travelling Expenses 20,228.00 TOTAL - 35 - Funding Breakup (US$) 1,500,000.00 BUSINESS PLAN Recball FY 2020 MARKETING & SALES RBL’s MARKETING STRATEGY Our go-to-marketing (GTM) strategy starts with finalizing how our brand image will be conveyed and remain consistent at every marketing stage so that people can remember and identify themselves with our brand. Our core marketing strategy is to market RBL at sports events, to universities, colleges, corporates looking to offer RBL membership Key components of our GTM strategy consist of the following: ❖ Defining marketing objectives ❖ Defining customer persona ❖ Defining our value proposition and brand positioning ❖ Customer acquisition & retention strategies ❖ Promotion activities Marketing Objectives Marketing objectives cover the following broad objectives for our Company’s reach, operations, engagement, brand, trust, and growth: ❖ Brand awareness and brand loyalty from members. ❖ Expand marketing coverage area in minimum time through the proper execution of the company's marketing plan and strategies. ❖ Enhance customer relations & be their choice for mental and physical fitness services. ❖ Effectively use social media, trends & technology to boost recognition, engagement & customers. ❖ Increase our number of members and market share through increased listings as per customer choice/spending behavior. ❖ Strategically use referral as a marketing tool through exclusively designed feedback mechanisms over website & social media. ❖ Increase profits and cash flows of the Company and ensure that a sustainable business model is built. - 36 - BUSINESS PLAN Recball FY 2020 Target Customers Our customer persona is defined hereunder: Customer Segmentation Target Customers Geographical ❖ Starting from Los Angeles; ❖ Expanding to all of California and eventually USA; and ❖ People in affluent areas. Demographic ❖ Customers from any age group; ❖ Business Executives; ❖ Large companies interested in offering membership as an employee benefit; ❖ Retirees; and ❖ Seasonal LA Residents (e.g., snowbirds, business leaders with vacation homes) Behavioral ❖ People interested in sports events; ❖ Social media users; and ❖ Everyone, interested in looking and feeling healthy. Marketing Channels & Techniques We aim to get as many subscribers as possible in the first 6 months after launch. The more rapidly our marketplace spreads, the higher the customer base will grow through referral and word of mouth. Steps and strategies, we would be following to build our brand after launch include: Customer Segmentation Social Media & other online advertisements Search Engine Optimization (SEO) Branding Influencer Marketing - 37 - Details Channels ❖ Facebook; ❖ LinkedIn; ❖ Instagram; ❖ Google; and ❖ YouTube To ensure that our e-commerce platform is ❖ Google continuously ranked highly in search for a certain keyword (e.g., Ball rental, fitness & health etc.) SEO will be done by using a great title to hook customers and for added value, we will include screenshots and videos. An SEO expert will be hired for this purpose. RBL branded t-shirts and caps etc. will be given to On-ground our staff and premium members to ensure that branding activities customers remember us Our localities would be endorsed by famous health & ❖ Facebook; fitness influences and bloggers. ❖ Instagram; ❖ Blogging websites After the official launch, we will start rolling out advertisements on social media platforms and other relevant online advertisement channels with a pitch like “Rent a ball for the price of a cup of coffee.” BUSINESS PLAN Recball FY 2020 Customer Acquisition & Growth Strategy Following are our customer acquisition & growth strategies: Awareness: Getting our brand noticed will be the first step. Targeted social media ads will be posted on Instagram & Facebook etc. to attract customers using attractive pitch like “rent a ball for price of coffee cup". Further, we will co-create quality content with influences to reach customers through a reliable mean and promote RBL at peak sporting seasons in California. Early Adopter Advocacy: Word of mouth marketing will be essential. The company will initially foster it by seeking out bloggers and influences and getting them to advocate for the brand. RBL will aim at customers by sponsoring events, giving a one-day free trial visit, and adopting a hyper-local strategy that changes shape with each new city the company enters. Service: Managing our customers through the service process to ensure they have a positive experience will bring us far greater rewards in the future and turn customers into loyal advocates. Retention: Customer care post-purchase is just as important as during the selling process. This will be done by: ❖ Initiating solid customer loyalty programs for loyal customers; ❖ Establish two-way communication i.e., analyze and promptly respond to negative and positive feedback; ❖ Targeted emails to abandoned customers; and ❖ Constantly keep customers engaged by sending regular promotional campaigns through email and social media. Referrals: Early adopters will be able to take advantage of RBL’s referral marketing program to refer friends while earning credits themselves. This gives first-timers a more concrete reason to try the service. Our staff also get incentives, thereby acquiring more customers. Marketing Budget Planned expenditure to achieve our marketing goal is as follows: (2.5% growth) (Y1 $) (Y2 $) (Y3 $) (Y4 $) (Y5 $) SEO 2,400 2,469 2,522 2,585 2,649 Social Media Marketing 12,000 12,300 12,608 12,923 13,246 Blogs 6,000 6,150 6,304 6,461 6,623 Influencers 9,600 9,840 10,086 10,338 10,597 Print Advertisement 12,000 12,300 12,608 12,923 13,246 Branding 2,000 2,050 2,101 2,154 2,208 TOTAL 50,000 51,250 52,531 53,845 55,191 Expense Category - 38 - BUSINESS PLAN Recball FY 2020 FINANCIAL INFORMATION INCOME STATEMENT Recball Statement of Profit & Loss / Income Statement Years : 2021, 2022, 2023, 2024 &- ($) Revenue / Income Description 2022 ($) 2023 ($) 2024 ($) 2025 ($) 1,875,000 1,921,875 1,969,922 2,019,170 2,069,649 1,875,000 1,921,875 1,969,922 2,019,170 2,069,649 312,818 10,076 20,228 36,133 119,230 9,126 50,000 20,000 577,611 319,825 10,302 20,681 29,273 119,230 9,126 51,120 45,000 604,556 326,989 10,532 21,144 22,234 119,230 9,126 52,265 100,000 661,520 334,313 10,768 21,618 15,012 119,230 9,126 53,436 125,000 688,503 341,802 11,010 22,102 7,602 119,230 9,126 54,633 150,000 715,505 Revenue / Income • Sales from ball rentals Total Revenue Operating expenses Operating expenses Admin expenses Legal expenses Travelling expenses Finance cost Depreciation expenses Amortization expenses Marketing expenses Insurance expense Total operating expenses - 39 - BUSINESS PLAN Recball FY 2020 BALANCE SHEET Recball Statement of Financial Position / Balance Sheet Years : 2021, 2022, 2023, 2024 &- ($) 2024 ($) 2021 ($) 2022 ($) 2023 ($) • Furniture • Office equipments • Vehicles 16,000 436,920 24,000 12,000 327,690 18,000 8,000 218,460 12,000 4,000 109,230 6,000 - Intangible assets Total long term assets 36,502 513,422 27,377 385,067 18,251 256,711 9,126 128,356 - 937,500 587,300 10,100 1,534,900 2,048,322 960,938 1,342,955 25,250 2,329,142 2,714,209 1,945,898 1,116,132 47,975 3,110,006 3,366,717 1,009,585 2,807,830 82,063 3,899,477 4,027,833 Description Assets Fixed (Long-term) assets Property and equipment Current assets Trade receivables Cash and bank balances Inventory Total current assets Total assets 2021 ($) Description 2022 ($) 2023 ($) 2,044,410 2,520,628 133,194 4,698,232 4,698,- ($) 2024 ($) Share capital and Reserves Equity and Liabilities Share capital Accumulated profits Total equity 1,859,058 1,859,058 2,789,331 2,789,331 855,152 855,152 577,386 577,386 292,398 292,398 270,727 270,727 1,125,879 2,048,323 277,766 277,766 855,152 2,714,209 284,988 284,988 577,386 3,366,717 3,735,435 3,735,435 4,698,232 4,698,232 Liabilities Long term liabilities Loan from investors Total long term liabilities - - Current liabilities Current portion of investors money payable Total current liabilities Total liabilities Total equity and liabilities - 40 - 922,444 922,444 292,398 292,398 292,398 4,027,833 4,698,232 BUSINESS PLAN Recball FY 2020 CASH FLOW STATEMENT Recball Statement of Cash Flows Years : 2021, 2022, 2023, 2024 & 2025 Description 2021 ($) 2022 ($) 2023 ($) 2024 ($) 2025 ($) Cash flows from financing activities Cash flows from investing activities Cash flow from Operating Activities Cash flows from operating activities Operating profit before taxation Adjustments for non cash items: Depreciation Amortization Finance cost Total Operating profit before working capital changes (Increase) / decrease in current assets: Trade debts Inventory Increase / (decrease) in current liabilities: Total Cash generated from operations Less: Interest paid Less: Tax paid Net cash from operating activities 1,297,389 1,317,319 1,308,402 1,330,667 1,354,145 119,230 9,126 36,133 164,489 1,461,878 119,230 9,126 29,273 157,628 1,474,947 119,230 9,126 22,234 150,590 1,458,991 119,230 9,126 15,012 143,368 1,474,034 119,230 9,126 7,602 135,958 1,490,103 (937,500) (10,100) (947,600) 514,278 (36,133) (272,452) 205,693 (23,438) (15,150) (38,588) 1,436,360 (29,273) (276,637) 1,130,450 (984,961) (22,725) (1,007,686) 451,305 (22,234) (274,764) 154,307 936,313 (34,088) 902,226 2,376,260 (15,012) (279,440) 2,081,808 (1,034,825) (51,131) (1,085,956) 404,147 (7,602) (284,370) 112,174 2021 2022 2023 2024 2025 ($) ($) ($) ($) ($) Cash flows from investing activities Investment made in property and equipment (641,778) - - - - Net cash from used in investing activities (641,778) - - - - Cash flows from financing activities 2021 2022 2023 2024 2025 ($) ($) ($) ($) ($) Repayment of investors money (263,867) Proceeds from Investors 1,389,745 Dividend paid Share capital Net cash from / (used in) financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of year Cash and cash equivalents at the end of year - 41 - (102,494) 1,023,385 587,300 587,300 (270,727) (104,068) (374,795) 755,655 587,300 1,342,955 (277,766) (103,364) (381,130) (226,823) 1,342,955 1,116,133 (284,988) (105,123) (390,111) 1,691,698 1,116,133 2,807,829 (292,398) (106,977) (399,375) (287,201) 2,807,829 2,520,628