Could The Body Consultants Be The Most Cocky Entrepreneurs In The Tank? | Shark Tank AUS

First into the tank tonight are Fitness Buddies Jack and James ready to flex Their business muscles for the sharks I think we've got this in the bag Sure they will be able to see a deal on Us and we can obviously dealing them too We can't really lose we need to get a Deal or we get really good publicity and I'll be able to use it on my Tinder Profile [Music] Are we getting deals left right in the Center Hi I'm James and I'm Jack and we are the Body Consultants today we are seeking a 500K active investment for 25 of our Company this gives us a valuation of two Million dollars based on our ebitda Right our purpose at the body Consultants is to elevate the human Status quo and we do that by combining Our core 4 which is training nutrition Mindset and lifestyle to bring to Market An offering that's never been done Before and poorly been executed in the Industry at the moment As personal trainers we get to boast a 60 retention rate charging five times Our closest competitors Her journey started back in 2014 with a Boot camp and a dream since then we've Grown our training centers to five Personal training centers over both Australia and New Zealand

Taking our revenues from 500 000 in the First year To two moon currently Okay With this sharks we've already had Investors that are looking to buy in but We believe the right investor and the Right fit for us is in this room today Oh thank you over to you guys Over to us so great Uh I are these screens going to do Anything Well our belief is you're buying us oh I've been buying YouTube ideal situation You'll give us 100k Five percent each Yeah I'm gonna give you nothing mate [Music] You are selling a piece of Euro company Yep right and I'm buying it Absolutely I'm not Santa Claus all right I don't Give a It's a sales process investment is a Serious sales process please treat it as Such Foreign Who are you and what are you we are Personally we're personal trainers Personal trainers yep where are you Based in Perth all right yeah So how old are you guys so I'm 24 24 26. Okay pretty young guys and and personal Fitness trainers for how long so since I

Was 19 19 okay so you've got a bit of Experience so how do you go coaching you Know the average 50 year old that um That wants to touch their toes You should say something more Denigrating that's the thing that's Generally they just want to move a Little bit better feel a little bit Better what do you do oh I pick up my Grandchilds not a 50. at this position 56 year old whatever Um so yeah like we just again that's Where we can tailor it to the client Okay So just give us a quick bit of like you Said you're charging five times what a Competitor charge is who are you seeing As your competitor when you're making That statement so we look at just like Your regular gym membership that's right So it's a gym membership say Grand a Year yep so we charge five grand a year How are you able to charge five times More than your other competitors and get A 60 retention so help me understand That yeah so with our competition you Get a key tag you scan in you don't come You went on holidays no one cares They'll only call you when your debit Bounces every single session between 7 45 and 8 o'clock our trainers call our Clients if they weren't there they find Out why they're not doing what they Signed up to do and they committed to do

And that is the big difference we're not Selling training we're not selling Nutrition we're selling relationship and Accountability But that's not different it's not really Different to a million other personal Trainers Consultants out there So what's your like for like year on Year for each of those locations how do You mean sorry what's your like for like Year on year Well maybe the answer to the question is Month on month is it going up sideways Or down So each dinner gets to about 10 grand And then Trends sideways You reach maximum capacity Well they don't grow any bigger so That's the model I think you're both incredibly naive The first rule of business is to respect The competition and really you have no Understanding in terms of the Contribution or the relationship that Many personal trainers have There is nothing like experience So therefore I'm out Thank you very much thank you I reckon Naomi's it's just way too harsh You've got five centers two million Revenue you sound like you know what You're doing where do you learn your Business oh yeah luckily again we've Invested every single Center to our

Personal growth our first Mentor taught Us sales marketing That was a six-figure investment over The Year sorry six figure investment oh Wow we'll go back to that How does that work Did you pay that to him correct what wow And how so how much have you invested Ourselves I would say we're up to the Tune of 350. [Music] 350 000 so yeah let me just say that again Slowly you have invested 350 000 yes I Would say it at least wow Not in the business That's on us and that's not Capital That's personal development oh I see Your own personal development industry Yeah yeah It's Quickly you said one thing before You said that your evaluation was based Off e but da Jack what do you what do You do to have fun because you look so Tense I have been told that a lot of Times Um but I am a lot of fun my mum calls me Cyclone Jack because I am just Destruction the I've been told so many Times how are you like this at 5 30 in The morning I'm like it is Showtime [Music] Can we get back to the ebitda question Yep no stop it now let's go back to

Robot no No potentially oh make an offer then and Find it out yeah Jagger sort of goes you're like a box And then you smile and you go oh it's Human and then you robot again yeah Can I ask a question now or no not yet Okay Your shoelaces are even perfectly bowed It's not socks online Can we do the ebitda thing now Steve wants to ask you about the eBid Come on Steve go for it Now you said you said one thing you said Your valuation is based on eBay you put That right out of the front yep right We've walked your hand held your hand Through a little business Journey here Let's just explain even though Steve Ebitdara is basically uh your profit or Interest tax depreciation advertisation Otherwise known as free cash flow so Um Why is it based on that so yeah all of Our shops at a minimum can make a Hundred thousand dollars a year profit Right so you're getting a hundred Thousand dollars in free cash flow per Location uh you've got five locations Which means you've got uh 500 Grand in Free cash flow per year Correct Bloody fantastic And the other thing is the industry

Standard for a trainer a career last Thing in the industry is nine yeah You join the industry within nine months It's like 80 out Yeah which is where your double-edged Sword is actually just to counter that Our average staff has been or average Trainer has been with us over two years Four for the longer ones and then Obviously at the new centers yeah but That's in Perth with you with them all The time Really loved hearing what you guys have Done and congratulations on the success Of the business I think you've done an Amazing job the double-edged sword part Comes from scalability and I don't think It's scalable As you said those personal trainers You're going to be trying to get Melbourne Sydney everywhere won't Actually be able to stay and commit like You guys because I think you guys are Really unique and that's why you're Successful So it's because of the scalability I don't think I can invest but good luck And well done I'm out cool thank you Very much You know I'm fine you guys amazing I Can't actually fault your business model Or even your valuation My challenge is the same as Janine's I Think the business is highly dependent

On YouTube I wish you well But I'm out Thank you [Music] Guys well done you know you've developed Systems to support a rollout plan I've got so many health related Businesses across Australia in so many Sites I really don't need another one Yep I'm not going to be an investor Today I'm out but good luck thank you [Music] So four sharks are out we have one shark Left Steve Whoa I think always in business first Impressions are massive right and that You came out you felt a bit cocky when You came out and that really that put me Offside Um you've done a lot to to come back From but then he smile [Music] Um it's our first time guys I'm trying To find reasons to do the deal and not Do the deal at the same time But I I've looked at numbers here and I Just think it's it's it seems really Good And really good It's never really good it's business Right it's hard it's meant to be hard Um

I learned a long time ago that my first Impression is usually what I have to Follow and so I probably can't I can't Get past that I'm out because I wish you all the best Thank you thank you good luck Charlie Thank you you'll be fine but um Uh you guys are harsh you guys are harsh What did you how did you like to work With them what was it I would have been Absolutely no problem I you know what I Like that humble arrogance of the 20 Year olds that need a bit of active Meeting they will listen no they won't They will listen yeah well so just do What we're going to do anyway

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