A premium boutique gym dedicated to performance training.
|Location||London, United Kingdom|
|Sectors||Travel, Leisure & Sport Non-Digital B2C|
|Incorporation date||27 Oct 2017|
Binary Fitness will deliver functional performance training through a premium boutique environment and an immersive class experience.
We believe we are one of London's first premium operators to offer coached performance training alongside flexible gym space and holistic classes.
Binary Fitness started life as CrossFit City Road, delivering classes across 3 GYMBOX locations in central London. We are now building our own gym, which will consist of two class spaces and another multi-purpose training hall.
Our first class-space is the new home of CrossFit City Road and will continue to deliver exceptional CrossFit and CrossFit-related classes led by master coaches.
The second class-space broadens our offering with classes that will be designed to address performance in a holistic sense: Yoga, Meditation, Natural Movement, Flexibility and Strength classes.
The third element is the Training Hall: a flexible training space built with performance in mind. We plan for lifting platforms, high-quality barbells and plates, rowers, ski ergs, assault bikes and an enormous pull-up rig.
There will also be a cafe, The Atrium, which serves juices, shakes and coffees in a social space, as well as saunas, treatment rooms and a retail area.
Binary Fitness was born of a desire to bring performance training to a wider audience. We're passionate about CrossFit, weightlifting and strength & conditioning and we want everybody to have access to these amazing ways of getting fit.
We believe we can create something truly special, and impact many more lives, if we deliver athletic training in a context that is more convenient, more friendly and more enjoyable. Our mission is to deliver performance training through a high-end class experience, a contemporary space and a community-driven environment.
We also believe there is a need for a gym that delivers a more diverse offering and understands fitness and performance more broadly. That's why it's important that we have Yoga, Meditation and Flexibility training alongside Weightlifting and CrossFit.
We believe this allows our members to create personalised fitness plans, specific to their goals, while still benefiting from an inspiring class environment and a fun social network.
Substantial accomplishments to date
City Road CrossFit has been our proving ground and is now a subsidiary of Binary Fitness.
City Road CrossFit started as a single location operation, within GYMBOX, in October 2014. Since then, we have expanded to 3 locations across central London.
We have seen strong growth:
- 65% net membership growth in 2017.
- 34% net membership growth yoy to 30/09/2018.
- Over £30,000 in average monthly sales (past 3 months, based on unaudited management accounts).
- Over 200 members with an average monthly membership spend of £160.
We have developed a substantial network of followers and customers:
- 5,000 clients in our database.
- Approx. 30,000 unique paid visits.
- > 9,000 social media followers.
We have nurtured loyal customers who love our product:
- 36% of our members have had their memberships for over 1 year.
We have 4 significant revenue streams:
1. Membership Subscriptions. Membership prices will range from £125 to £250 and will be based on month-to-month, cancel-any-time subscriptions or paid-in-full longer term commitments. At an estimated capacity of 1,200 members, we calculate that membership subscriptions will have a potential maximum value of up to £2.1m in revenue per year.
2. Private Fitness Services. We will offer clients private training, as well as lifestyle and nutritional coaching and mentorship. At capacity we aim to produce significant revenue from provision of these services.
3. The Atrium Cafe. The Atrium cafe will be a social hub offering ultra high-quality juices, shakes, salads and coffee. This should also be another source of revenue.
4. Retail. Binary Fitness will sell a selection of curated branded apparel, supplements and training equipment. This is our final projected source of revenue.
Use of proceeds
We will use the investment funds for:
1. The build of our flagship gym location - 70%.
2. Equipment and fit out - 10%.
3. Pre-launch Sales and Marketing - 10%.
4. Working capital - 10%.
Binary Fitness owns City Road Crossfit Ltd as a 100% subsidiary. This subsidiary has outstanding loans of £18,423 with Barclays and FundingCircle, and a directors loan outstanding of £10,000. Investor funds will not be used to repay these loans.
£50 - 1 Binary Fitness class + post-workout shake.
£100 - 1 Binary Fitness class for you and a friend + 2 post-workout shakes.
£500 - 10 Binary Fitness classes + 10 post-workout shakes.
£1,000 - 3 Month Unlimited Binary Fitness membership + 10 post-workout shakes.
£2,500 - 6 Month Unlimited Binary Fitness membership + 20 post-workout shakes.
£5,000 - 12 Month Unlimited Binary Fitness membership + 40 post-workout shakes.
£10,000 - 18 Month Unlimited Binary Fitness membership + 40 post-workout shakes + 15% off purchases for 18 months.
£20,000 - 12 Month Unlimited Binary Fitness memberships for you AND a friend + 100 post-workout shakes + 15% off for life.
£50,000 - LIFETIME Unlimited Binary Fitness membership + unlimited post-workout shakes + unlimited post-workout shakes + 15% off purchases for life.
£100,000 - LIFETIME Unlimited Binary Fitness memberships for you AND a friend + 20% off purchases for life.
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Our typical client is a relatively young, well-educated and successful professional.
Of our current and historical members:
- 85% are aged between 25-45.
- 65% are male / 35% female.
- 95% have a university degree.
- 75% have a household income above £50k and 41% have a household income above £100k.
- 80% are unmarried.
We appeal to a broad range of consumers within the fitness market. As well as attracting more experienced hands, we are inclusive:
- 20% of our members described themselves as having minimal gym-training experience before joining us and around 20% described themselves as overweight.
- 42% of our members described themselves as being of average or less than average fitness level before they joined us.
Once people join us, many stay for long periods of time: 36% of our members have been with us for more than 1 year.
Characteristics of target market
The UK gym market is now worth £4.9bn (in 2018), growing 2.9% on 2017. There are now close to 10m gym members in the UK.
Looking more specifically at the functional fitness / CrossFit market, there are now over 14,000 CrossFit affiliates worldwide.
The UK CrossFit market lags behind the US market but it is growing, which presents an opportunity for the first major player in the space.
Comparing London's 66 CrossFit locations to New York's 144, we see a huge opportunity in this market, particularly in central London which we feel has a dearth of functional fitness offerings compared to downtown New York.
We firmly believe that if London had the same number of gyms as New York in 5 years, based on our own estimates, the CrossFit market would more than double in size from £25m to £55m in that time, leaving a totally new market segment worth £30m.
Looking beyond CrossFit, we believe the true market for those wanting to pursue some form of functional or performance training in London may be worth a lot more.
Our marketing strategy is based on a clear brand identity and narrative.
We believe our brand is different. We have set out to be the first boutique gym to capture the mass market through a light, friendly and inclusive identity which still has a contemporary, design-driven aesthetic.
Binary Fitness is "the fundamental language of fitness" and this is reflected in the 3-shape vocabulary of our icon.
The brand and the gym itself references the nostalgia of traditional gymnasiums and sports-halls; social spaces where everyone is welcome.
Binary Fitness is about traditional / contemporary, aspirational / inclusive, fit / less fit, 1/0. We aim to bridge the gap and bring these oppositions together.
We will focus on localised marketing efforts since gyms tend to be hyper-local. We will seek to dominate the 1km radius around us with targeted social media campaigns as well as traditional marketing media. We plan to also heavily leverage our current customer base with tactical referral campaigns.
We believe we are the first premium operator in London to deliver coached performance training alongside holistic classes and flexible gym space. That makes us different and sets us apart from the competition.
Our staff are coaches, not instructors. These professionals are passionate masters of their craft who aim to help each individual find their own particular way of progressing. We believe a model of continual growth will differentiate us.
Our members are our community and we treat them with the respect they deserve. When members join, it is the beginning of their fitness journey with us, not the end of our sales process. We aim to provide an exceptional, personal service to our members so that they achieve incredible results and stay for years.
Tech is under-utilised in the gym sector, in our view. We aim to innovate with tech and AI to vastly improve our members' experience and help us understand our business in new ways.
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