Lean 7 Fitness Fact & Questions
What does the company do?
L7F evaluates an athlete’s total physical ability and academic ability and provides a ranking
system to enhance coaching and recruiting of student athletes.
What is unique about the company?
We do not need videos or stats to recruit athletes. We have actually made the standard
recruiting process obsolete. L7F technology can recruit thousands of athletes in a very short
time in all sports and positions effectively from the office or on the field/court. We have
officially brought recruiting into the 21st century.
What big problem does it solve?
L7F workouts are not just an evaluation but an online combine that gives the most relevant
information daily, accurately and in real time. Athletic departments will have a stock market
approach to how athletes are preforming.
How big is the market opportunity?
The global fitness equipment market is expected to reach $11.9 billion by 2020. (growing at a
CAGR of 3.89)
Where are you headquartered?
My home in Irving, TX.
How big can the company get?
L7F technology and processes can be scaled and tailored to fit any sports organization from
local Pee-Wee football to FIFA International!
What is the actual addressable market?
We are rolling out with Dallas ISD High School Football & Basketball first to build our database
and Analytic Algorithms. Once the process is streamlined we can effectively target other
major cities in Texas.
What percentage of the market do you plan to get over what period of time?
We estimate that within 3 years, 100% of college recruiting in the Dallas Fort Worth area will
be done through the L7F System. In another 5 years the State of Texas will be using the L7F
System.
How did you arrive at the sales of your industry and its growth rate?
We created an income estimate tool in Excel to estimate the monthly and yearly sales of
hardware, user subscriptions and technology fees based on our lowest subscriber cost and our
lowest hardware package.
Why does your company have high growth potential?
Growth potential is high given the sales tool is only taking into account the cheapest
subscriptions and minimum hardware purchases. This proves that our worst case scenario in
regards to sales is still ground breaking and extremely profitable. If we exceed the minimum
which is very likely our growth potential becomes exponential.
Why do users care about your product or service?
Our users care because our system enhances their recruiting process and is 90% cheaper per
year than their current recruiting process. On average NCAA clubs spend just shy of 2 million
dollars per year on recruiting. We offer and enhanced recruiting process for a quarter of what
they currently spend. Student athletes are presented to the college recruiters earlier and
easier and our system brings everyone to the table and informs them, students, parents,
families, current coaches and recruiters. Our applications bring valuable information to
everyone involved with their athlete.
What are the key differentiated features of your product or service?
Coaches now know if they are upgrading or down grading per acquisition.
Athletes now know what they need to make any given team before tryouts.
We can find those superstar athletes much earlier and more often.
Competition
Who are the company’s competitors?
Independent recruiting agencies
What gives your company a competitive advantage?
We are the only company in the country with a proprietary fitness machine including support
applications that provide real time data and the most accurate athlete ranking system ever
created. This valuable data can be manipulated to create customer analytics that are ball club
specific. Coaches will be able to work with the same data structure as professional teams at a
fraction of the price.
What advantages does your competition have over you?
They have already established a rapport with parents that can afford their services and
schools that regard their services as complimentary to their success. We circumvent that by
providing more for less.
Compared to your competition, how do you compete with respect to price, features, and
performance?
A High school athletes parents will pay $125k for tuition without a scholarship.A Division 1
college pays $140k to recruit and give a scholarship to an athlete. The top 10 college recruiting
agencies charge $2500 – $5000 per year. L7F high school athletes can pay as low as $10 a
month to make themselves available to their local colleges, $50 a month for colleges in their
Area, $99 a month for all colleges in their state, $300 a month for colleges in their region and
finally, $500 a month for all colleges nationally. Parents can see their athletes potential based
on their ranking within the L7F system and make investments into their athletes future based
on their budget or the potential of their athlete, whichever is more applicable to them
specifically.
What are the barriers to entry?
Streamlining the flow of data to meet the demand. Creating or gaining access to the database
storage required to meet the demand. Protecting the integrity of the data at every endpoint.
How does the company market or plan to market its products or services?
We plan to be wherever sports are, the high schools and college campuses, high school and
college sporting events, off season sporting camps, major sporting events, our own social
media application and regular social media, and of course web and email marketing.
What early traction has the company gotten (sales, traffic to the company’s website, app
downloads, etc., as relevant)?
Finished proof of concept of hardware
Started Database and Software Application
Patents Pending
How can the early traction be accelerated?
The sooner we can come out of the garage and acquire an office/warehouse space we could
gain significant traction. If we can put our current team on full time salaries/contracts we
could also get to market faster.
What do you see are the principal risks to the business?
Going to market without the proper legal and information security.
Do you have any regulatory risks?
None.
Are there any product liability risks?
As with any fitness machine there are safety risks or hazards that still need to be
located/confirmed, in any.
What key intellectual property does the company have (patents, patents pending, copyrights,
trade secrets, trademarks, domain names)?
We have patents pending and several patents that need to be filled. We also have patents to
be filled for technology to be implemented into the fitness machine and application at a later
date.
What comfort do you have that the company’s intellectual property does not violate the rights
of a third party?
The data gathered from our system is proprietary to our hardware and software. The general
information is the same as any other recruiting agency of athletic department. There are no
risks to any third parties.
How was the company’s intellectual property developed?
The Ip was developed solely by Chuck Amos. As the team grew additional value was
incorporated over time by several individuals.
Would any prior employers of a team member have a potential claim to the company’s
intellectual property?
None whatsoever.
What are the key assumptions underlying your projections?
$50 million in Sales
How much equity and debt has the company raised; what is the capitalization structure?
There is no debt and the company is in the process of acquiring capital, the goal is $10 million.
What future equity or debt financing will be necessary?
Yes, in a limited amount.
How much of a stock option pool is being set aside for employees?
20% of the stock
When will the company get to profitability?
The company will be profitable in one year.
How much burn will occur until the company gets to profitability?
Six months $50,000 per month
What are your unit economics?
Lifetime value (LTV): the amount of revenue a single user generates during the entire
duration of their usage of our service. Cost per acquisition (CPA): How much it costs to
acquire the user.
What are the factors that limit faster growth?
Poor sales force
What are the key metrics that the management team focuses on?
Sales and technology cost will be the key factors.
How much is being raised in this round?
6 Million USD
What is the company’s desired pre-money valuation?
9 Million USD
Will existing investors participate in the round?
No
What is the planned use of proceeds from this round?
Current team salaries/contracts, Office/Warehouse, 8-12 Fitness Machine for mass beta
testing
What milestones will the financing get you to?
This initial phase will get us to the mass testing phase just before market
Who are the founders and key team members?
Charlie Amos – Co-Founder, CEO
R. Amos-President, Co-Founder-7%
Carl Jones – COO-1%
Harry J. Hickey – CFO-1%
Garrick Farria Esq. Legal Counsel-1%
Sharon Kelley- Administrator 1%
Melissa Bonds – Programmer
Justin Spann – Software Engineer
John Barree – Hardware Engineer
Sherry Steel – Accountant
Sheryl Alexander – Personal Assistant
What relevant domain experience does the team have?
We have proven leaders on our executive team and our hardware and software teams consist
multi-talented individuals that are capable of mobile application development, software
coding and mechanical and electrical engineering. Our executive team also has a former multi
field engineer leading operations.
What key additions to the team are needed in the short term?
Our short term teams have been established at this point.
Why is the team uniquely capable to execute the company’s business plan?
As mentioned before, our current staff members are multi-talented. Our lead software
engineer is skilled in over 5 developmental languages. Our other software engineer is also a
skilled mechanical engineer and IT technician. Our COO has effectively increased our company
evaluation from 20 million to 50 million. We all share the same vision and we are driven by
our faith!
How many employees do you have?
12 employees currently.
What motivates the founders?
To give young athletes the motivation and encouragement they need to make to the
collegiate level. To be the #1 college recruiter in the country. To be the go to company for
professional sports acquisitions.
