Overview
Chase the Zen is a provider of exercise, running, cycling, walking, and rowing apps for the global Physical Fitness and Event Training markets. The Company’s products are revolutionary and scientifically designed to engage the brain in manners that induce the calming and relaxing effects of dancing during exercise. You may have experienced a flow-state at some point — that sense of fluidity between your body and mind, where you are totally absorbed and deeply focused on something, beyond the point of distraction. Time feels like it has slowed down. Your senses are heightened. You are at one with the task at hand, as action and awareness sync to create an effortless momentum. Some people describe this feeling as being “in the zone.”
Price value proposition
PROBLEM: Millions of people struggle to stick with a cardio exercise regimen for general fitness or training programs, finding it boring and lacking the incentive to sustain the program long-term. This problem, along with other controllable factors, prevents many from achieving their personal health, fitness, and competitive training goals.
SOLUTION: Chase the Zen has transformed this dilemma into an opportunity by addressing the challenge of maintaining long-term engagement in exercise through the use of a scientific process designed to foster a brain's dopamine-driven feedback loop… a cycle where the synapse structures receive quick bursts of pleasure-inducing dopamine through immediate rewards, reinforcing the behavior and creating a loop of repeated engagement. In short, the functionality of the app tricks your brain into thinking you’re dancing, causing consistent doses of dopamine, making your exercise experience instantly rewarding by locking you to the beat of a uniquely engineered form of music that is adjustable to anyone's tempo, pace, or rhythm. Speed it up if you are training for a race or slow it down for a relaxing run.
The Market Opportunity
With a first-mover advantage in our chosen fitness market verticals, these apps will quickly fill a massive void that is currently available in our market target. For our running market in the United States alone, there are approximately 50 million annual participants in events like 10ks, half marathons, and full marathons (not including leisure runners, walkers, and our other market targets). However, our target audience extends far beyond just runners to include the growing mindful meditation community, comprising 9.3 million individuals or 4.1% of US adults. Our app uniquely combines physical and mental health benefits, fostering mindfulness and even facilitating the attainment of Flow-State—an optimal mental state for peak performance available nowhere else at this time. Again, our advantage is centered around being first to the market and quickly filling the various vertical opportunities with Joint Venture and License agreements for our products. For example, major market JV targets are sought with companies such Garmin, Apple, and Nike with their wearable devices giving us further barriers to entry for competitor and positioning us better as a stronger acquisition target.
Momentum and Business Model
Monetization for the running version begins in 2024, with a modest subscription fee of $4 per month. Based on our target market, we anticipate capturing 0.10417% in the first year, translating to around 62,500 subscribers and $250,000 in monthly revenue. Subsequently, we plan to expand the app to include cycling, walking, and rowing at $6 per month, targeting a broader market of 145 million potential users. Even with a conservative 1% capture rate, based on our calculations and Proforma, this expansion could yield a monthly gross revenue margin of more than $9,700,000 by and of year 3 of operations.
Manager Biography
David Newton – Founding Manager
David Newton is a visionary entrepreneur with a unique blend of creative flair and technological acumen. As a right-brain creative, he is driven by a deep passion for carving out new pathways to enhance both mental and physical well-being through innovative uses of technology. An avid runner, David approaches his passion for fitness with an artistic sensibility, prioritizing the joy of the run over chasing personal records. His philosophy centers on the idea that exercise should be a holistic experience, engaging not only the body but also the mind and spirit. With a diverse skill set honed over years of creative exploration, David excels in video editing, music writing, and music production. His expertise extends beyond traditional boundaries, as he ventures into uncharted territories to explore the transformative power of sound and visuals on human experience.
One of David's most notable endeavors is his pioneering work in the realm of music. Drawing inspiration from his background in running and his deep understanding of human psychology, he has single-handedly invented a new genre of music designed to stimulate the brain's dopamine receptors. By combining rhythmic beats, captivating melodies, and innovative production techniques, David's music aims to engage listeners on a profound level, tapping into their innate desire for pleasure and reward. Driven by a relentless pursuit of excellence, David is committed to taking his unique brand of music to new heights, striving to captivate audiences and elevate their emotional and physical well-being. With his boundless creativity and unwavering dedication, David Newton stands at the forefront of a revolution in the intersection of art, technology, and wellness.
David A. Storrs – Managing Member
David Storrs has global business and advanced IT and Business Development experience. Mr. Storrs has been the Chief Catalyst for The David Storrs Group, an international consulting firm with a global client reach. He has provided IT and Business Development consulting to over 250 clients and joint venture companies between 1999 and 2014. Mr. Storrs has an impressive project resume with over 28 years of international and domestic business experience. He has seasoned knowledge in the high-tech sector, eight of those years with Hewlett-Packard, three years with Intel’s Early Access Program, 2 years with Lennox Petroleum Service of Trinidad and Tobago, and three years with Infoman Software House of Somerset, New Jersey. He worked primarily in the reseller and VAR channels as a region sales director for a decade before starting his own consulting firm, growing his company to over 250 clients before a successful exit in 2014. Mr. Storrs has been the General Managing Director of Southern Management and Trade Services, Ltd. (SMTS is a firm specializing in international strategic business planning, project management in diverse locations, business plans, and grant writing supporting Non-Government Organizations - NGO) for seven years. Mr. Storrs has worked heavily in the environmental sector with multiple He has consulted with a wide range of companies responsible for developing “clean technologies” projects in the Philippines, as well as other projects in South America, Europe, and West Africa. Mr. Storrs has strong operational management, investor relations, capital management, market development, and business planning skills in diverse regions of the world. David is an instructor and is invited to judge the annual business plan competition at Brigham Young University Hawaii Eccles Center for Entrepreneurship. Most recently, David successfully exited his stake in a popular East Mesa, Arizona restaurant, Steak and Stone, after a 9-year run. Mr. Storrs has a Bachelor of Business Management degree from Boise State University in Boise, Idaho, and an MBA from the University of Phoenix.
Conclusion and Risk Factors
Chase the Zen is positioned with the best leverage in our market targets with the advantage of being the “first to market” with our products. The risk factors associated with this are that we do not move fast enough with market penetration and do not create barriers to entry for our competitors. The company sees the upside of tapping the multi-billion-dollar market with a calculated and well-thought-out strategy.
Exit Strategy
Early Stakeholders who participate with us will do so through debt, or a 506 offering with liquidity events and exit partner search beginning during year 2 of operations. Additional liquidity events will occur through the lifecycle of the company with final exit through acquisition or merger with an industry competitor or partner.