Estonia
Health and Fitness
Closes Feb 29, 2016 23:59
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SWIMITATION

Private Water Therapy, Fitness and Relaxation

34 600 € (115%)

of 30 000 - 99 000 € goal funded

16,22 % of total equity offered
200 € minimum investment
Invest

Quick Pitch

Swimitation stands for wellness. We sell the unique Swimitation bath; we own all intellectual rights of the bath and the production form (the production is outsourced). The new fitness bath unites water, fitness, privacy, deep relaxation and hydrotherapy . Watch a short  exercises teaser-video. A whole fitness session can be carried out with closed eyes!

Water gymnastics and water relaxation are among the most effective rehabilitation treatments. However, these forms of therapy have been underused due to uncomfortable procedures and limited options. Swimitation solves this problem - the patented ergonomic design allows safe and comfortable whole body movement. Swimitation can therefore be used outside the medical sphere, in wellness and fitness sphere for individual training programs and deep relaxation.

The Swimitation bath is for rehabilitation purposes, for home spas, wellness and fitness centers. These are our target clients.

The new body friendly future form of fitness is also an innovation in Hubbard-type rehabilitation baths because it provides new possibilities with the same or lesser amount of water. A physiotherapy session can be carried out without a therapist! The end users are people who want to stay or get fit; exercise in privacy; who’d like to care for their body and mind; save time by uniting fitness, meditation and other wellness therapies. Some specific target groups are: office workers or anyone working in prolonged stress positions, people with disabilities or medical needs (rheumatism, arthritis, heart diseases etc), people who are overweight.

Our dedicated team has actively lead the product development phase with professional partners (physiotherapists, designers, engineers and factories). We have completed the bath and the showroom; we have the main marketing materials ready (the website, photos, physiotherapy professional know-how, brand video and exercise video). The showroom is also a day-spa, where the Swimitation bath and other wellness services can be tried out (see http://swimitationspa.com/en/). You are most welcome! The key resources of our company include the designs for the bath, the production model, the bath and equipment (the documentation and know-how), brand video and 1-hour exercise video, patents/registrations for the intellectual property. The bath is produced in our partner's factory Koriks OÜ (Estonia, established in 1976) who exports glass-fiber products and outdoor hot tubs to Nordic countries.

We plan to begin the sale of Swimitation baths in Finland and Scandinavia, where there is greater purchasing power and health-awareness as well as in the domestic market Estonia. Next, we will move on to Western Europe and the English-language countries (USA, Canada, Australia), where people are greatly interested in novel health trends. Our goal for the next year is to sell seven baths and grow more rapidly thereafter to attain the sales of 80 baths by the year 2019 (see the Business plan and 4 years Action Plan and Financial Forecast under Documents). Given the price of the bath (10 000 - 17 000 EUR, depending on the level of equipment) this growth is sustainable and provides a considerable profit. As the Swimitation bath will be used in public places, such as spas, hotels, health centers, sports centers, the bath will advertise itself ensuring the quick spread of the Swimitation message!

Problem & Solution

PROBLEM. Hydrotherapy – one among the most effective medically proven forms of rehabilitation and training – is underused.

Hydrotherapy, and especially water gymnastics is considered one of the most effective forms of therapy and training. It is an effective treatment for rheumatic diseases and other musculoskeletal diseases, suitable for recovery from cardiovascular diseases, for stress relief etc. All these issues are increasingly prevalent today due to working in stress positions, overall stress, unhealthy diet, etc. Regardless of the fact that the positive effect of water gymnastics was scientifically proven already in the 1960s, it is not very popular. The current HUBBARD-type rehabilitation baths provide only limited movement – one has to keep the body still by sitting or holding on and only one or two limbs can be moved at a time; arms cannot be moved all around. Therefore, hydrotherapy is rarely available in medical institutions – the current baths are uncomfortable for both the patients and the medical personnel.

Hydrotherapy also has a positive effect on the body and mind of people who have not been diagnosed with any illnesses. The current HUBBARD-type baths do not enable fast and effective whole-body movement and therefore it is unimaginable to carry out an individual training session in those baths. Water aerobics is only available in public pools as group trainings. Many people hesitate to attend water aerobics classes, either because of unsuitable work schedule, social pressure or some other problem. Today more and more people prefer individual training sessions. Water aerobics does not entail deep relaxation or individual exercising. Our study in the fall of 2015 showed that individual bath-training is assessed enjoyable from the aspects of the physical training as well as for the relaxation experience. The problems arising from office work can already be relieved with just one Swimitation session.

Today we are in a situation where the much researched and medically proven form of therapy that is hydrotherapy is not used to its fullest potential to help people despite the demand and need for such a therapy.

SOLUTION. Swimitation solves this problem because the bath’s patented ergonomic seat keeps the user still, enabling whole body movement without external help. Swimitation also added elegant design!

Swimitation fitness bath rethinks the rehabilitation bath into a luxurious fitness bath meant for everybody (rehabilitation purpose still included). Exercising in this bath is a thoroughly enjoyable experience.

The top excuses for not exercising are lack of motivation and energy, and the assumption that exercising is boring. Compared to other work-outs, a fitness session in our fitness bath is an enjoyable experience, the training does not require any emotional effort. Uniting the possibilities of other wellness treatments (whirlpool system, aromatherapy), the training session can be made even more enjoyable and desirable. Many people avoid swimming or water aerobics in public pools because of the social burden or questionable water quality. Our bath solves these problems. Exercising can take place in privacy and with any kind of media (e.g. music, movies or our exercise video). It is a lot easier to keep the water quality healthy in this smooth bath than it is in public pools.

The bath also offers supported floating, which has advantages compared to the floating and relaxation in a floatation tank. The support for the body trunk provides the feeling of security, thus enabling deep relaxation which many people cannot achieve in a floatation tank. The bath unites the two – exercising and relaxation. The new 2014 über trend of spa industry shows interweaving mindfulness techniques into spa and wellness activities (spafinder.com). Our bath is well in the trend!

The world is facing major health challenges (depression, physical inactivity, obesity, cardiovascular diseases, back pain, etc.) and almost all people have stress to some degree (from noise, pollution, workload, family, economical problems etc.). The fitness bath will help with health issues and relieves stress at the same time. Swimitation makes water therapy attractive and popular!

CUSTOMERS AND TARGET MARKETS

We believe in the success of our product in four sectors:

  1. As a wellness product
  2. In fitness centers
  3. For rehabilitation (medical sphere)
  4. In private sector – in home spas

WELLNESS. The trends indicate an increase in integrating wellness services with mindfulness techniques. Instead of different rejuvenating substances there’s a shift towards believing in a person’s innate self-healing power. The bath can be fitted with various wellness therapies, e.g. oxygen therapy, chromotherapy, vacuum massage.

FITNESS. The fitness trends indicate that people long for more different training choices. More and more people prefer private and more individual training. The fitness clubs are frequented with more and more elderly people who will also benefit from our product. Various types of training that have elements of mindfulness – such as yoga – are still popular.

MEDICAL. The Swimitation bath will be the next generation HUBBARD-type bath in physical therapy. Its obvious advantage is the possibility to put together an exercise video for the patient, meaning the session can be carried out without the therapist present. This cuts down on the hospital’s therapy costs and makes our product attractive for purchasing.

HOME SPA. The former sectors included the B2B market but we also see potential in the growing home spa market. The Swimitation is a great alternative to a mini-pool as it is much more economical and hygienic. Instead of the robust Jacuzzi that only enables the user to lie about, it is much more reasonable to purchase our more functional bath where relaxing is more thorough and the user can carry out therapeutic physical exercises.

Traction & Accomplishments

The bath is production-ready. In addition to the design of the bath, product development also included choosing the suitable equipment (the taps, whirlpool system, etc); producing the exercises session video (a short 2-minute version of the exercises video is available here; the 1-hour video here). We have developed the brand design and concept. Important marketing materials have been created – the brand video and product photos. Our Spa/Showroom is open (please visit http://swimitationspa.com/en/ – please note that the company’s focus is on selling the baths and not operating a spa; the spa is for marketing purposes only). We have established good relations with specialists (physical therapists) and unions for people with special needs.

The bath's design has gotten some attention (BRUNO design award's audience favorite) and the media (TV, newspapers) is interested in covering us. After the product has been completed we have been visited by both Radio Kuku and national TV show Ringvaade (airing soon). Here are a few links to media coverage a year ago:

http://toostusuudised.ee/article/2014/8/6/eesti_idufirma_loi_uudse_vanni

Gadgetify: http://www.gadgetify.com/swimitation-bath/

TV channel “Kanal2”: http://www.reporter.ee/2014/09/04/eesti-idufirma-loi-uudse-vanni/

How We’re Different

Competition. There are quite a few indirect competitors to Swimitation – from healt cocoons and jacuzzis to group training sessions. The Swimitation’s direct competitors are foremost the sellers and producers of Hubbard-type baths – the butterfly-shaped baths that enable exercising in water. One of the biggest among them is EWAC Medical in Holland – the world leader in marketing hydrotherapy products (including Butterfly bath). Since the Swimitation bath is patented and is clearly different from other hydrotherapy products, one or many of these competitors could potentially be Swimitation distributors. For example, we are currently negotiating the terms of cooperation for marketing the Swimitation bath with EWAC Medical.

The advantages of the Swimitation bath are as follows:

  • We have created the first fitness-bath in the world that enables full body training, not stopping at simple slow movement of a few limbs.
  • We protect our idea, product and brand with patents, design protection and registrations on the main markets (see additional materials under Documents).
  • Swimitation training is the first truly private water training.
  • Our bath is equipped with a professional hour-long exercise video put together by a physical therapist - this is also something unheard of.
  • For the first time, hydro therapy can be carried out without a physiotherapist present. Therefore it is possible to carry out a physical therapy session at home!
  • The bath's elegant design is suitable for medical institutions as well as for luxury homes.
  • We created the concept of supported floating, which is a good alternative to floating in a float tank.
  • We intend to continue the cooperation with physical therapists so that the bath could be used for bettering people’s health to its fullest potential. For this purpose we intend to create a video app, a program for compiling individual exercise videos.

We have designed the bath with minimal water comsumption and maximum hygiene in mind. The design of our bath enables it to be used with the same amount of water as our competitors’. However, while their baths only allow a little movement, ours allows free movement of the whole body.  All the corners of our bath are deisgned with maximum radius, enabling good water movement and excluding water stagnation (the biggest problem in maintaining water hygiene).

Uses of Funds & Timeline

The 99 000 euros to be raised with the Fundwise campaign will help Swimitation to sell its products next year, after which the company should be able to manage itself as shown in our cash flow prognosis (available under Documents, see also the brief overview of our four years action plan and cash flow).

Firstly, this investment will help start and carry out the marketing and sales of the product.

75 000 euros of the investment is meant for marketing and sales, of which 20 000 euros is meant for participating in an expo and the rest for costs related to the salaries, travel and other expenditures of marketing and sales personnel. This product is completely new and unique and not just from the outside. This means the bath and water gymnastics it enables will have to be introduced more thoroughly; among other places, we intend to do this at expos (presenting at one and visiting two) and via the media. We have to find the right cooperation partners (resellers), use professional sales materials and sales work. This is a product that should have an already established reseller in each country that can offer additional services (e.g. instalment) and deal with warranty issues.

Secondly, we will develop a video program or app that can be used to compile exercise routines. The app can be used to send the video onto a tv screen at home or at a facility.

We intend to invest 25 000 euros into developing the app which should be ready in May of 2016. The program can be used to choose suitable exercises and regulate the duration or repetition of the exercises. This app can be used by the bath’s user or the physical therapist. The instructors, physical therapists can create individual workout routines for their clients at a distance.

The user can create and save workout routines with their favourite exercises. This makes our product an innovative and fully professional solution suitable for physical therapy. To create the app we need to film a large amount of exercises (estimatedly over a hundred) and place an order for an IT-solution.

Obligations to Investors, Profit Distribution

Come and see the Swimitation bath! If you are interested then you are most welcome to see and try out the bath at our showroom for free before making the decision to invest. In order to do so, please contact us (call Alan at +372 52 18 554 or write an email to alan@swimitation.com). After the Fundwise campaign we will organize a demonstration to all of our investors.

The Shareholders contract (see under Documents) says the current stakeholder will not be demanded to repay the loan before the company has reached 100 000 euros of net profit on two consequitive years. The LLC will pay dividends starting from the year 2020, and the dividends will be a minimum of 30% of the net profit of the financial year if the net profit is greater than 50 000 euros.

We will do everything in our power to make Swimitation a successful business that sells, grows and makes a profit. We know the best markets for us are in countries where people spend more on healthcare services and where there is a greater spending power (Scandinavia, Western Europe, US, Canada and other english speaking countries).

Our objective is a stable growth. A possible exit strategy is selling the company to strategic partners – something that will only happen if the conditions are very good. The Stakeholders contract specifies the drag-along/tag-along rights.

We estimate selling 80 baths per year by 2019 is attainable (the retail price of the bath is 10 000 – 17 000 depending on equipment). Please aquaint yourself with our business plan or action plan and our cash flow prognosis under Documents. If you wish, we are ready to repurchase shares with profits made.

The investers will receive a quarterly newsletter about Swimitation.

Motivational packets

For every 600 euros you invest you will get a gift card to try out the services at our salon (value approx 93 euros: Swimitation session, MicroSilk oxygen therapy, infrared sauna, salt cocoon and the upcoming service of vacuum massage) that can be regifted.

An investment of 15 000 euros will additionally give you a 25% discount on the bath equipped for home spa use. This is a tempting offer if you are currently planning your home spa (the price for the bath with home spa equipment is 9900 euros). This discount will apply to every following 15000 euros worth of investments. This means that by investing 30 000 euros you will receive a 50% discount; 75% discount for a 45 000 euros investment and if you invest 60 000 euros you will receive the bath for free!

If you are motivated by something else then please let us know!

Risks and Mitigation

We can solve a lot of problems with the investment – among other things, we can hire a professional sales director who will be able to concentrate on sales systematically and full time. The external risks are as follows:

  • Customers do not embrace the product quickly enough. To manage this risk we are oriented on introducing the Swimitation idea and what it is about; attaining credibility in the sphere of physical therapy.
  • The permanent risk of economic recession. To minimize its effect we have both feet on the ground and keep the costs reasonable at all times.