Smart Health Clubs

App

United States

The All-In-One Member Engagement Platform

$15,000
Pledged
1
Backers
30
Days Left
Goal: $800,00 USD



Smart Health Clubs Is The All-in-One Member Engagement Platform for Health Clubs

  • Often, a single health club uses 6-10 customer-facing apps.
  • Most club apps are not focused on member's goals nor health outcomes.
  • Consequently, the average health club looses 50% of their members each year.

Smart Health Clubs differentiates itself as a business by providing Health Clubs an app focused on helping their members achieve fitness and nutrition goals, leading to improved health outcomes.

The Smart Health Club custom-branded app combines the functionality of multiple apps into one, enabling clubs to overcome many obstacles, and deliver more income-generating services to their members.

About six years ago Praveen, a PhD in computer science and creator of Samsung's Smart TVs, met Mike Aplert, a fitness industry veteran and, at the time, CEO of The Claremont Club.

The Claremont Club, California's largest and one of the best performing health clubs, was using eight non-integrated customer-facing apps, none of which were helping The Claremont Club nor its members achieve their goals.

Mike shared with Praveen, who was developing fitness technology, the challenges The Claremont Club was facing:

  • Mike wants to deliver to Calremont's members a complete, integrated, digital and physical experience.
  • He believes 'Exercise is Medicine' and that helping club members reach their exercise and nutrition goals will lead to more positive health outcomes.
  • And that a single, member-focused, club app will result in increased member retention and more revenue.

After some discussion, Mike agreed to invest in and that The Claremont Club would be the first customer of the Smart Health Clubs all-in-one member engagement platform.

The result is an all-in-one club-branded app. Focused on member's needs. That combines the functionality of multiple apps:

  • Live and on-demand workouts.
  • Book and manage services from the app.
  • Instructor substitution.
  • Personalized exercise and nutrition plans.
  • Hire trainers and sell all classes and services.

Today more than 100,000 active monthly users at 100+ clubs use Smart Health Clubs to achieve their goals and improve health outcomes.

60% Health Clubs retain more members and have increased revenue with Smart Health Clubs.

In 2020 Smart Health Club's revenue grew 34% MoM and customers 19% MoM.



TRACTION

  • • Launched at 100+ locations. 9 of the top 85 US clubs are our customers.

  • • In 2020 our revenue grew 34% MoM and customers 19% MoM.

INVESTED: $1.19MM+

• Founders invested: $1.2M
• Company insiders: $210k


SEEKING:

• $800k USD


USE OF FUNDS: EXPANSION CAPITAL

• Hire sales staff to reach the target of 446 clubs as clients.
• Achieve $249k MRR by June 2022.
• Invest in R&D to develop new software modules.


FINANCIAL HIGHLIGHTS

• Net locations 1946 (2025)
• Total platform users: 4.6 MM (2025)
• CAC (2021): $6.2k  $8.1k (2025)

The business is forecasted to be cash flow positive by June 2022 and build up to a 62% EBITDA margin by 2025.

The model estimates a $1MM ARR run rate and cumulative burn of $326k by Nov. 2021.


PROBLEM


Health clubs use 6 to 10 software to serve their member needs. Integrating the multiple software Apps is error prone and expensive.


  • • Clubs find it hard to offer revenue generating services to their members. Even something as simple as booking a fee-based class needs integration of software from different vendors.
  • • Clubs struggle to provide members the wellness outcomes and digital experience leading to high member attrition.

SOLUTION


A SaaS “All-in-One” Member management and Engagement Platform, connecting Clubs, Members and Equipment.

Opens new revenue sources, creates a single sign-on and rich member experience, and reduces internal operating costs.

Includes E-Commerce, Booking & Attendance, rich department Calendars with Push Notifications, Instructor Substitution & Payroll, Live Streaming, On Demand and Video Conferencing all behind a Paywall, Fitness training and Nutrition Programming.

Our vision is to create an Integrated Wellness platform with “Exercise is Medicine” at its core and to generate wellness data analytics. It is enabled by the Affordable Care Act (ACA) and Medicare 3rd Party reimbursement.


OPPORTUNITY


The US fitness and health club market has been steadily increasing reaching $33 billion in 2019 with the Total Available Market (TAM) of 41,000 Clubs

• Our Serviceable Obtainable Market (SAM) are full-service clubs and chain clubs, which we assume to be 50% of the TAM.
• Serviceable Obtainable Market (SOM) is 9% of SAM or 1,900 clubs and 4.6MM members.
• Integrating fitness with healthcare and enabling 3rd party reimbursement offers huge opportunities for growth.


CLUB MARKET


COVID-19 has changed the world and the health club industry is no exception. Emerging trends are:

• Health club memberships are down significantly. However, the need for wellness and fitness has gone up.
• Significant shift in consumer behavior towards digital delivery of wellness and fitness solutions within and outside the club walls. This leads to an expected growth in new members enabled by 3rd party reimbursement.


BUSINESS MODEL

We are a B2B SaaS business with health clubs as customers. Our revenue comes from subscription and transactions.

• Base software and modules like Booking, Instructor Sub, Fitness and Nutrition, On Demand video etc. drive subscription revenue.
• Growth will come from transactional revenue including Live streaming, eCommerce, and Member Acquisition.


GO TO MARKET


We have a two-pronged GTM strategy, referrals and direct sales

• Referral partnerships with REX Roundtables, the largest Roundtables in the industry, and with the four largest club management companies like ABC Financial, Jonas, Club Automation and Motionsoft. Over 80% of our sales have come from these referral partnerships.
• We are creating referral partnerships with Les Mills and MOSSA the largest Group Exercise training companies and with American College of Sports Medicine (ACSM) and American Council on Exercise (ACE)
• Our direct salesperson, Brad is an industry veteran with over 30 years’ experience.


SUBSTITUTES


There are many companies that focus on single functionality, for example GroupEx Pro for Instructor Sub, Netpulse for Booking, Intellivideo for video.

• Every one of these companies provide three or fewer solutions that our customers need. There is no one that competes with our whole solution, The All-In-One Member Engagement Platform.
• Our patented Smart Weight Pin which tracks weight lifted, number of sets, reps and tempo has no competitors at our low price point. Egym, and TechnoGym integrated machines

Smart Health Clubs Achieves 100k MAU

7 July, 2021

Super excited to announce that now we have almost a 100k Monthly Active Users (MAU) of our Smart Health Clubs platform. Over the last 3 months as Club members have started to come back to the clubs, our MAU has grown impressively from 85k to 99k a 16% growth.

During this same time, our weekly average users have grown to 62K a 18% growth and Daily Average Users (DAU) grew to 27K. Our DAU shows significant fluctuations from day to day, which is to be expected as more users go to their Health Clubs during the week and the number trails off on weekends.

Most of the members are using our mobile App and website to book a Group Exercise class, Pool lanes, Tennis courts etc. along with view On demand and Live streaming videos. Members also use our platform to check out trainers, their bios and testimonials and to purchase Fitness training plans.

SHC Releases v3.8.0

19 April, 2021

Excited to announce the release of the new version 3.8.0 of our platform.

Key Features:
- Digital Content Sharing: On demand, live stream, classes, services and plans.
- On Demand and Live Video rebroadcasting.
- Guest Bookings. Early Cancellations and Integrated Calendar Enhancements.
- Enhanced Member Account Creation process.
- New Reports for Instructor substitution and updated booking report.

Pure Family Fitness is Customer #31

4 March, 2021

Proud to announce the App for members of Pure Family Fitness, our 31st customer. Pure Family Fitness is located in Maryland with 5 locations in the Maryland and Delaware area. They are a full service club with Fitness Training, Group Fitness, Basketball courts, Kids club and Nutrition coaching. Our App is available to more than 15K Pure Fitness Members.

Pure Family Fitness is taking advantage of our Booking and Attendance, On demand and Live streaming modules and have Barre, Body Combat, Power Yoga and Pilates classes On demand among many others.





Smart Health Clubs's target customers are the owner / operators of multi-location health clubs.

Use 6 to 10 software to serve their member needs.

+/-50% yearly member attrition.

___



LEAN CANVAS







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One Power Bank for Every Wrist Car

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SHC provides health clubs with an all-in-one engagement platform that helps club members achieve their health and fitness goals and keeps them coming back to the club.

Praveen Kashyap
Founder & CEO

Inventor and entrepreneur with broad technology experience and a PhD in Computer Science. 20 US & International patents and led Samsung team that built the first Smart TV.

Mike Alpert
Board Menber and COO

Over 30 years of experience in the Health & Wellness industry including; The Claremont Club, The Bend Club, Northwest Athletic Club Association Board of Directors, and Exercise is Medicine.

Ruchika Kashyap
Chief Success Officer

Consultant IBM. Customer Engagement, Project Management, Content.

Brad Thorp
VP Sales

Fitness technology and programming veteran. Launched FitLinxx and Netpulse. Designed Pilates and spinning programs.

Why I Like Smart Health Clubs

Jonathan Miller | Fitrepreneur

Smart Health Clubs is distrupting the fitness industry and replacing previous market leaders Mindbody and Netpulse at top facilities.