Website Closers® presents an Online Fitness company that’s a high growth, exciting business opportunity for any investor. The company primarily operates from its Mobile Apps via Apple and Google Play. With thousands of rave views and downloads, the app is growing strength as a go-to Virtual Fitness solution for (primarily) Women to focus on developing an ideal body shape, gain confidence, and ultimately look and feel great.
The company was originally started up in 2018 and has grown tremendously in terms of both revenue and membership throughout that time. They have been heavily structured around a subscription-based business model, which, fueled by a thriving organic (unpaid) marketing strategy, has led to consistent year-round revenue, massive growth, and a dedicated consumer base of over 38,000 clients.
What is most fascinating about this business is that they spend almost nothing on marketing, and while there is a plan to increase high ROAS Ad Spend in 2023 to further their reach, the organic development of membership has been a testament to the high quality service they provide to their clients.
The rapid-fire growth of the online fitness industry, which sat at $16.15 billion in 2022, has made it easy for the company to thrive within their core demographic, and with an astounding 49.12% CAGR predicted for the forecast period, it’s clear that interest in the market is no passing fad.
There are already new products and services that are slated to release later this year, and the systems that the current ownership has put into place will ensure that the business will continue to run smoothly throughout the transition process. The owner is also willing to act in a mentorship role to the buyer for multiple years if needed, ensuring that the company will get where they need to be before they are no longer involved.
The business has been grown from the ground up by a founding team that knows the fitness industry well. With a strong social media following themselves, they will continue to be an important part of this business after close. To this end, ownership is focused on finding a buyer that wants to partner with them to grow. The ownership will retain equity and remain with the buyer. The quintessential buyer from ownership’s perspective will be one that understands the fitness market well, has access to capital to help accelerate growth, and that has a track record of growing companies to large enterprises.
The Offerings
The company’s flagship offerings are currently made up of their fitness subscription / membership service. Their fantastic service comes from a dedicated team that shares the mission of ownership, and thus provides a diverse line-up of workouts, exercise tutorials, meal plans, and other useful help, such as meditation guides and tips on how to safely do certain workouts.
Clients can subscribe on a monthly or yearly basis, with the average client staying on for roughly 5.5 months. They also offer a subscription to a private Facebook Group, which, for the low price of 3 dollars, grants clients access to a community dedicated to letting clients work together and motivate one another in a private setting.
Along with these subscriptions, the company also sells a line of unique products on their website. These 7 SKUs are made up of themed t-shirts, a water bottle, a hoodie, and other merchandise centered around the fitness lifestyle, making them perfect for their active clientele. The company enjoys a comfortable $10.55 Average Order Value and sees no seasonality throughout the year.
Ownership & Staff
Ownership operates as the company’s main social media manager, promoting the brand across their key platforms and making sure they maintain their popularity and brand strength. They also serve as the visionary for the company’s present and future, and plan out new ways to build the company while maintaining profit and the overall user experience. Ownership has a number of ideas in place for growth in the near term, which can be implemented right after close.
They also have over 15 contractors and 2 employees, with some of the contractors having their own teams working for them as well. The staff is collectively responsible for running the social media accounts, creating app content, filming, editing, running the back end, building the app, aiding in marketing, creating ads, and creating products.
Marketing
One of the company’s biggest strengths is their incredible marketing campaign, which supplements thorough organic traffic tactics with paid advertising in key locations. They work with an advertising agency to run ads on Instagram and Facebook and have also recently launched an influencer network to generate a stronger traffic flow.
However, their social media marketing is where they truly shine. Not only do they have over 163,000 followers on Instagram, but their TikTok page has reached a remarkable 8.5 million views in total. This speaks to the overwhelming virality of their program and has led to 95% of their sales being organic to date.
The company has achieved an average of over 80,000 unique visitors every month, along with over 160,000 subscribers in their email database. Just imagine what this business can do once it expands its product and service offerings and begins smart marketing tactics.
Scale Opportunities
The company is already on track for growth post-purchase, as there are several new offerings that will be released throughout the year. A fourth subscription is on the way, which will consist of monthly one-on-one coaching and a membership that includes exclusive content. They are also planning to release a pre-workout, a stick pack, and one-on-one upfront coaching packages, which will give clients more flexibility in the timeframe of these lessons.
All of these new releases are expected to add to their overall revenue, and the buyer could build upon this momentum by continuing to release new in-demand services and products.
Improving upon their marketing campaign would also be a great strategy, as while it is already performing well in its current state, polishing it would lead to even stronger numbers being drawn in. Additional paid marketing, whether by growing their existing ads or expanding into platforms like YouTube, Snapchat and others, would be a quick, efficient way of gaining more attention. They could also turn their attention to their newfound influencer program and use it to reach out to new groups on their key platforms.
They could also establish themselves on new social media sites or build up their organic marketing by focusing on their own website. Their SEO campaign has been noted to have room for improvement, and by adding a blog dedicated to fitness on the site, they could easily attract the attention of people interested in kickstarting a more active lifestyle for themselves.
Summary
Looking over the statistics of this excellent online business, it’s safe to say that their clients aren’t the only ones that are healthy. Their reputation is flourishing on some of the most popular social media websites of this generation, and the buyer will be able to step in and reap the rewards of the various new offerings that will be coming to market very soon. The current ownership is happy to remain with the company, and in fact, will be focused on buyers that are looking for this in ownership.
With the online fitness market on an upswing, the right buyer can ensure that the business stays in tip top shape and grows tremendously in the coming years. Contact Website Closers today for more details on this vibrant deal.
