Health club business plan

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  • 1. Health Club Business PlanCorporate FitnessExecutive SummaryCorporate Fitness will serve Seattle-area businesses, helping them to become more productive,while lowering their overall costs.Our business is based on two simple facts: 1. Healthy employees are more productive than chronically ill employees. 2. It costs less to prevent injuries or illnesses than to treat them after they occur.At Corporate Fitness, we tie worker productivity directly to the health care issue. We believe thattraditional approaches to the current health care crisis are misdirected. These traditional effortsare what we call reactive--that is, they wait until after the worker has been stricken with illness orinjury, and then pay for the necessary treatments. Our approach, which emphasizes preventionand good health promotion, is much more proactive.By helping employees change their behavior patterns and choose more healthy lifestyles,Corporate Fitness will lower companies health care expenditures, while raising workerproductivity. Health care expenditures will decrease due to reduced medical insurance premiums,reduced absenteeism, reduced turnover rates, reduced workers compensation claims, reducedtardiness, shorter hospital stays, etc.The state of Americas health care crisis, coupled with current demographic changes, threaten tonot only exacerbate the crisis, but further erode worker productivity as well. Theseenvironmental factors coupled with the local competitive situation signal a favorable opportunityin this market. We feel the time is right for Corporate Fitness.
  • 2. Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan »1.1 Objectives 1. Provide wellness strategies/programs to businesses in the downtown Seattle area. 2. Create working relationships with 20 companies by the end of year one. 3. Expand Corporate Fitness into Portland, Oregon by the end of year two.Start Your Plan Today Online Business Planning Made Easy.Includes Tutorials and Books.Business Start-up Guides Step-by-step instructions you needfor starting a business today.1.2 Keys to SuccessCorporate Fitness keys to success are: • Marketing services to companies and individuals. • Recruitment of experienced managerial talent. • Dedication and hard work of the founders. • Raising productivity. • Lowering overall costs.
  • 3. 1.3 MissionCorporate Fitness is a health service that helps businesses and individual workers attain one ofthe greatest gifts of all--that of good health. Personal gains, such as improved self-esteem andself-motivation, combined with measurable benefits will create tremendous advantages for boththe employer and the employee.Read more:http://www.bplans.com/health_club_business_plan/executive_summary_fc.php#ixzz1m5MFgYfnCompany SummaryCorporate Fitness is based on the belief that healthy employees are more productive and efficientemployees. For this reason, it provides wellness strategies/programs to businesses in thedowntown Seattle area. This combines promotion of health and exercise-related activitiesdesigned to facilitate positive lifestyle changes in members of a companys work force.The company began in Seattle, founded by three owners, all of whom hold director positions.2.1 Company OwnershipCorporate Fitness is a privately held corporation. The three founders comprise all of theownership. • Dave Jensen - 40 percent. • Steve Perkins - 30 percent. • Robert Gomez - 30 percent.Sales & Marketing Pro 2012 Your Sales and Marketing Plans.Start Today. Instant Download.Start Your Plan Today Online Business Planning Made Easy.Includes Tutorials and Books.2.2 Start-up SummaryStart-up will require approximately $300,000 of capital, $200,000 of which will be provided bythe founders and their families. The remaining $100,000 will come as a loan.Approximately $140,000 will be allocated to leasehold improvements and $75,000 to equipment.
  • 4. Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan »Start-up FundingStart-up Expenses to Fund $290,000Start-up Assets to Fund $10,000Total Funding Required $300,000AssetsNon-cash Assets from Start-up $0Cash Requirements from Start-up $10,000Additional Cash Raised $0Cash Balance on Starting Date $10,000Total Assets $10,000Liabilities and CapitalLiabilitiesCurrent Borrowing $0Long-term Liabilities $100,000
  • 5. Accounts Payable (Outstanding Bills) $0Other Current Liabilities (interest-free) $0Total Liabilities $100,000CapitalPlanned InvestmentInvestor 1 $80,000Investor 2 $60,000Investor 3 $60,000Additional Investment Requirement $0Total Planned Investment $200,000Loss at Start-up (Start-up Expenses) ($290,000)Total Capital ($90,000)Total Capital and Liabilities $10,000Total Funding $300,000Need real financials?We recommend using LivePlan as the easiest way to create automatic financials for your ownbusiness plan.Create your own business plan »Start-upRequirementsStart-up ExpensesLegal $1,250Stationery etc. $1,000Brochures $800Insurance $5,000Rent $58,000Expensed Equipment $75,000Utilities $6,500
  • 6. Leasehold improvements $140,000Other $2,450Total Start-up Expenses $290,000Start-up AssetsCash Required $10,000Other Current Assets $0Long-term Assets $0Total Assets $10,000Total Requirements $300,0002.3 Company Locations and FacilitiesCorporate Fitness headquarters are located within the first club located in downtown Seattle.Upon expansion, offices will be moved to a different location, not within any individual club.Read more:http://www.bplans.com/health_club_business_plan/company_summary_fc.php#ixzz1m5MMjjM4ServicesBusiness ratios for Corporate Fitness indicate strong financial growth and an impressive chancefor investment opportunities, making expansion and further development both very possible.3.1 Service DescriptionCorporate Fitness provides wellness strategies/programs to businesses in the downtown Seattlearea. A wellness strategy is a long-term effort, combining both health-promotion and exercise-related activities designed to facilitate positive lifestyle changes in members of a companyswork force.Corporate Fitness will work with a companys senior management to help it develop a missionstatement for its wellness program. The client companys employees will undergo a health-riskanalysis, following which each employee will be given the opportunity to meet with a healthprofessional to design a personalized health program.Finally, Corporate Fitness will furnish employee progress reports to senior management withwhich to carry out the incentive program and generally monitor changes in the behavior of itswork force.
  • 7. Bplans School of Business Great Discounted Courses to Help youStart and Run a Successful BusinessResearch Your Industry Need to Get Figures on Your Industry?Free Year Financial Reports Available3.2 Competitive ComparisonCorporate Fitness is not primarily a health club, as are the majority of competitors. Thisorganization is in the business of health care cost management. The major function is to workwith client companies to implement wellness strategies. Many employees will becomebenefactors of such strategies without ever visiting the fitness facility, as exercise is only onefacet of overall wellness.Corporate Fitness has a vested interest in each individual member of every wellness program,unlike many competitors. An integral part of this service is following up and monitoring theindividuals.3.3 FulfillmentAll fitness machines are purchased from exercise equipment distributors, while all medicalequipment is bought from a reputable supply company.Read more: http://www.bplans.com/health_club_business_plan/services_fc.php#ixzz1m5MTPU6jMarket Analysis SummaryIn 1991, the U.S. medical bill was $738 million, of which businesses paid 30 percent. Recentstudies indicate returns on investments in wellness programs for various companies ranging from$1.91:1 to $5.78:1. General Electrics aircraft engines division, for example, saves $1 million peryear through its wellness programs. Travelers Insurance Company reported savings of $7.8million in 1991, attributable to its wellness programs, and a return of $3.41 for every dollarinvested in wellness.Important demographic changes are taking place in America that point to the importance ofworker productivity in coming decades. • 16 million new jobs will be created by the year 2000, but there will only be 14 million workers to fill them. • By 1995, women will comprise one-third of the work force, a ratio that will increase to one-half by the year 2000. • An estimated 80 percent of jobs to be filled in the immediate future will require more than a high-school education. Only 74 percent of Americans, however, finish high school, and only 67 percent graduate with adequate skills.
  • 8. • The number of skilled workers available to fill new jobs is decreasing, meaning that employers are facing more severe competition for labor. Thus, the health and productivity of each employee becomes crucial to a companys success.4.1 Market SegmentationThe market for corporate fitness is not particularly segmented, as potential customers include alldowntown businesses that offer their employees some type of medical benefits, are experiencingescalating health care costs, and wish to more effectively manage those costs.Corporate Fitness, however, segments its services for individual organizations. Corporate Fitnessworks with senior management to develop mission statements and provide incentive plans, andwith employees to design personalized health and fitness programs.Sales & Marketing Pro 2012 Your Sales and Marketing Plans.Start Today. Instant Download.Start Your Plan Today Online Business Planning Made Easy.Includes Tutorials and Books.Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan »Market Analysis
  • 9. Year 1 Year 2 Year 3 Year 4 Year 5Potential Customers Growth CAGRCorporate Employees 35% 750 1,013 1,368 1,847 2,493 35.03%Manufacturing Exployees 15% 250 288 331 381 438 15.05%Industry Employees 25% 500 625 781 976 1,220 24.98%Other 15% 300 345 397 457 526 15.07%Total 26.96% 1,800 2,271 2,877 3,661 4,677 26.96%Need real financials?We recommend using LivePlan as the easiest way to create automatic financials for your ownbusiness plan.Create your own business plan »4.2 Service Business AnalysisSeveral small fitness facilities are currently in operation in the downtown area, none of whichcater their services to corporations. These organizations are primarily exercise facilities withlittle emphasis on personalizing individual plans to improve working performance.4.2.1 Main CompetitorsThe three main competitors for Corporate Fitness are: • YMCA-market is lower-income families and/or students who want accessibility and affordability of fitness facilities. • Golds Gym-services are targeted toward those motivated and dedicated individuals who workout five to seven times per week. • Better Bodies-aimed at casual fitness-seekers who do not workout with a high intensity but still desire the status and recognition.4.2.2 Distributing a ServiceFew fitness centers are located in the downtown Seattle area, while the majority are found insuburban neighborhoods and shopping complexes. Those in the downtown area are located closeto professional centers containing restaurants, parks, and other recreational activities. Insuburban locales, these establishments are often found close to grocery stores, restaurants, andretail stores.
  • 10. 4.2.3 Business ParticipantsParticipants in the fitness industry include national, regional, and local organizations. On thenational level, companies such as Golds Gym and the YMCA offer exercise facilities andtraining programs. At the regional level, firms such as Better Bodies and Ballys offercomparable services, while locally, privately-owned businesses provide similar, but lessextensive services to exercise-seekers.Read more:http://www.bplans.com/health_club_business_plan/market_analysis_summary_fc.php#ixzz1m5MYl5sJStrategy and Implementation SummaryCorporate Fitness strategy is based on raising worker productivity and lowering overall costs forbusinesses. The most logical way to approach these factors is through a healthy work force.Companies that implement wellness programs with Corporate Fitness will be encouraged to lookat the "big picture" regarding the effects of its wellness programs. Thus, one marketing goal is topersuade more traditionally managed companies that wellness can work for them.By tailoring services and developing customized programs for companies and individualemployees, Corporate Fitness will develop a reputation for quality and customer service.5.1 MilestonesSample Milestones topic text.The milestones table and chart show the specific detail about actual program activities thatshould be taking place during the year. Each one has its manager, starting date, ending date, andbudget. During the year we will be keeping track of implementation against plan, with reports onthe timely completion of these activities as planned.Bplans School of Business Great Discounted Courses to Help youStart and Run a Successful BusinessResearch Your Industry Need to Get Figures on Your Industry?Free Year Financial Reports Available
  • 11. Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan »MilestonesMilestone Start Date End Date Budget Manager DepartmentSample Milestones 1/4/2008 1/4/2008 $0 ABC Department LeGrandeFinish Business Plan 5/7/2009 6/6/2009 $100 Dude FromageAcquire Financing 5/17/2009 7/6/2009 $200 Dudette LegumersAh HA! Event 5/27/2009 6/1/2009 $60 Marianne BossesOooooh Noooooo! Event 6/26/2009 7/1/2009 $250 Marionette Chèvre deBlâmeGrande Opening 7/6/2009 7/11/2009 $500 Gloworm NobsMarketing Program Starts 6/6/2009 7/1/2009 $1,000 Glower MarketeersPlan vs. Actual Review 11/1/2009 11/8/2009 $0 Galore AllesFirst Break-even Month 3/5/2010 4/4/2010 $0 Bouys SalersHire Employees 2/1/2010 3/3/2010 $150 Gulls HRMUpgrade Business Plan Pro 4/22/2010 4/24/2010 $100 Brass Bossies
  • 12. Totals $2,360Need real financials?We recommend using LivePlan as the easiest way to create automatic financials for your ownbusiness plan.Create your own business plan »5.2 Marketing StrategyCorporate Fitness will begin by targeting small- to medium-sized businesses in the downtownSeattle area. The first task is to convince senior executives of the benefits and needs of wellnessprograms. This will be accomplished by aggressively pursuing interaction and relationships withbusiness professionals who would profit from using this service. Once a strong image isestablished, Corporate Fitness will use similar strategies to market its services to largercorporations in Seattle and other areas of expansion.5.2.1 Pricing StrategyPrices for using Corporate Fitness services are comparable to those of higher-end fitness centers.An employee choosing to utilize a Corporate Fitness center will pay a $100 monthly fee. Foreach employee enrolled in the general wellness program, regardless of whether or not they usethe fitness facility, the employer will pay $150 annually. The prices reflect the quality of theequipment and service.5.2.2 Promotion StrategyFollowing initial promotional activity through advertisements in newspapers, magazines, and ontelevision and radio, Corporate Fitness will significantly reduce its promotional efforts in thehope that word-of-mouth will attract potential clients. Promotional activity will still be utilizedthrough these media outlets, but only minimally.5.3 Sales StrategyThis proprietary information was omitted from the sample plan.5.3.1 Sales ForecastAnticipated sales are shown in the accompanying table and chart.
  • 13. Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan »Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan »
  • 14. Sales Forecast Year 1 Year 2 Year 3SalesSales $539,075 $650,750 $825,600Other $0 $0 $0Total Sales $539,075 $650,750 $825,600Direct Cost of Sales Year 1 Year 2 Year 3Cost of Sales $33,000 $44,000 $55,000Other $0 $0 $0Subtotal Direct Cost of Sales $33,000 $44,000 $55,000Read more:http://www.bplans.com/health_club_business_plan/strategy_and_implementation_summary_fc.php#ixzz1m5MdVPRYManagement SummaryCorporate Fitness is currently a small organization headed by three individuals. TheCEO/Director of Sales and Marketing oversees the activities of the Director of Health andWellness Programs and the Director of Finance and Administration.The Director of Health and Wellness Programs is the contact for and supervisor of the fitnessspecialists and health educators and promoters.The Director of Finance and Administration provides guidance for fitness facility attendants.As the firm grows and expands, more director positions will be added as needed.6.1 Organizational StructureThere are currently two divisions of Corporate Fitness: "Health and Wellness" and "Finance andAdministration." With the growth of the company, more divisions will be created as the demandfor services increases.Business Start-up Guides Step-by-step instructions you needfor starting a business today.
  • 15. #1 Business Plan Software Top Selling Business Plan Software for10 Years. Download Your Software Now!6.2 Management Team • Dave Jensen: CEO and Director of Sales and Marketing. Mr. Jensen is responsible for providing leadership, direction, and control for all aspects of the companys activities in order to realize optimum profits compatible with the best long- and short-term interests of the shareholder, employees, consumers, and public. Mr. Jensen completed his undergraduate degree at the University of North Carolina, and then earned his MBA from the University of Texas. • Steve Perkins: Director of Finance and Administration. Mr. Perkins is responsible for guiding and directing financial and control activities of the company in a manner designed to protect assets, meet reporting requirements, and effectively plan for and audit the financial needs of the firm. Mr. Perkins completed his undergraduate work at the University of California-Berkeley, and received his MBA from Vanderbilt University. • Robert Gomez: Director of Health and Wellness Programs. Mr. Gomez will assume the overall management of the health promotion program, including organizing and conducting health education programs. Mr. Gomez received his undergraduate degree in Exercise and Movement Science from the University of Oregon.6.3 Management Team GapsThe gaps of Corporate Fitness management team include: • Lack of experience in the fitness industry. • Minimal expertise in areas of finance and accounting. • Strong desire for financial prosperity immediately with little patience for minimal profitability.6.4 Personnel PlanCorporate Fitness personnel staff requirements are shown in the table below.Personnel Plan Year 1 Year 2 Year 3Fitness Center Management $15,000 $15,000 $15,000Program Director $54,000 $54,000 $54,000Personnel Manager $36,000 $36,000 $36,000Health/Fitness Specialists $33,000 $33,000 $33,000Attendants $12,000 $12,000 $12,000Total People 0 0 0
  • 16. Total Payroll $150,000 $150,000 $150,000Read more:http://www.bplans.com/health_club_business_plan/management_summary_fc.php#ixzz1m5MkY74UFinancial Plan • Consulting revenue will make up approximately 85 to 90 percent of total revenue, with the rest coming from service revenue. • Salaries and rent are the two major expenses, while depreciation is another significant cost. Although the purchasing of fitness, medical, and office equipment is expensive, constant replacement will be needed to maintain a competitive edge. • In order to maintain steady gross margins, salaries and advertising expenses are not likely to increase within the first two years of operation, unless cash flows significantly increase.7.1 Important AssumptionsThree assumptions for Corporate Fitness are: 1. A constantly growing economy without any major recession or boom. 2. No unpredictable changes in fitness, medical, or office equipment. 3. No major national or global events that threaten the stability and health of the country and its citizens.New Bplans Online Courses Fantastic New Courses AvailableView Our Course of The Week NowBplans School of Business Great Discounted Courses to Help youStart and Run a Successful BusinessGeneral Assumptions Year 1 Year 2 Year 3Plan Month 1 2 3Current Interest Rate 3.00% 3.00% 3.00%Long-term Interest Rate 10.00% 10.00% 10.00%Tax Rate 25.00% 25.00% 25.00%Other 0 0 0
  • 17. Need real financials?We recommend using LivePlan as the easiest way to create automatic financials for your ownbusiness plan.Create your own business plan »7.2 Key Financial IndicatorsThe most important financial indicators are net increase in cash and net income. Net increasefrom cash will exemplify the relationship between net income and net cash from operatingactivities. The greater the increase is, Corporate Fitness has that level of financial strength at thatpoint in time.Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan »7.3 Break-even AnalysisCorporate Fitness break-even point is computed in the table below, comparing sales andmonthly expenses. Sales forecasts indicate that units sold and monthly sales are expected to bemuch greater than the break-even point mentioned in the table.
  • 18. Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan »Break-even AnalysisMonthly Revenue Break-even $26,683Assumptions:Average Percent Variable Cost 6%Estimated Monthly Fixed Cost $25,0507.4 Projected Profit and LossSales are predicted to increase each month with first year annual sales totaling close to a half-million dollars. Gross margin, likewise, is expected to increase correspondingly.Compared to total sales, net profit will increase each month and is predicted to increase for 1995through 1997.
  • 19. Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan »Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan »
  • 20. Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan »Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.
  • 21. Create your own business plan »Pro Forma Profit and Loss Year 1 Year 2 Year 3Sales $539,075 $650,750 $825,600Direct Cost of Sales $33,000 $44,000 $55,000Other Costs of Sales $0 $0 $0Total Cost of Sales $33,000 $44,000 $55,000Gross Margin $506,075 $606,750 $770,600Gross Margin % 93.88% 93.24% 93.34%ExpensesPayroll $150,000 $150,000 $150,000Marketing/Promotion $25,200 $25,200 $25,200Depreciation $7,200 $7,200 $7,200Rent $60,000 $60,000 $6,000Utilities $25,200 $25,200 $25,200Insurance $5,400 $5,400 $5,400Leased Equipment $27,600 $27,600 $27,600Payroll Taxes $0 $0 $0Other $0 $0 $0Total Operating Expenses $300,600 $300,600 $246,600Profit Before Interest and Taxes $205,475 $306,150 $524,000EBITDA $212,675 $313,350 $531,200Interest Expense $10,449 $8,500 $7,500Taxes Incurred $48,757 $74,413 $129,125Net Profit $146,270 $223,238 $387,375Net Profit/Sales 27.13% 34.30% 46.92%
  • 22. 7.5 Projected Cash FlowOrdinary cash flow will increase significantly while expenses remain relatively static, with onlyminimal increases. We plan to take out a short-term loan to cover our receivables and othercontingencies in month one, and repay it in month 12.Need actual charts?We recommend using LivePlan as the easiest way to create graphs for your own business plan.Create your own business plan »Pro Forma Cash Flow Year 1 Year 2 Year 3Cash ReceivedCash from OperationsCash Sales $215,630 $260,300 $330,240Cash from Receivables $230,395 $371,174 $465,179Subtotal Cash from Operations $446,025 $631,474 $795,419Additional Cash ReceivedSales Tax, VAT, HST/GST Received $0 $0 $0
  • 23. New Current Borrowing $36,000 $0 $0New Other Liabilities (interest-free) $0 $0 $0New Long-term Liabilities $0 $0 $0Sales of Other Current Assets $0 $0 $0Sales of Long-term Assets $0 $0 $0New Investment Received $0 $0 $0Subtotal Cash Received $482,025 $631,474 $795,419Expenditures Year 1 Year 2 Year 3Expenditures from OperationsCash Spending $150,000 $150,000 $150,000Bill Payments $206,122 $277,578 $280,145Subtotal Spent on Operations $356,122 $427,578 $430,145Additional Cash SpentSales Tax, VAT, HST/GST Paid Out $0 $0 $0Principal Repayment of Current Borrowing $36,000 $0 $0Other Liabilities Principal Repayment $0 $0 $0Long-term Liabilities Principal Repayment $10,000 $10,000 $10,000Purchase Other Current Assets $0 $0 $0Purchase Long-term Assets $9,600 $9,600 $9,600Dividends $0 $0 $0Subtotal Cash Spent $411,722 $447,178 $449,745Net Cash Flow $70,303 $184,295 $345,675Cash Balance $80,303 $264,599 $610,2737.6 Projected Balance SheetThe balance sheet indicates that at the end of the first year of operation, net worth will bepositive and constantly increasing through the end of 1997.Pro Forma Balance Sheet
  • 24. Year 1 Year 2 Year 3AssetsCurrent AssetsCash $80,303 $264,599 $610,273Accounts Receivable $93,050 $112,326 $142,507Other Current Assets $0 $0 $0Total Current Assets $173,353 $376,925 $752,780Long-term AssetsLong-term Assets $9,600 $19,200 $28,800Accumulated Depreciation $7,200 $14,400 $21,600Total Long-term Assets $2,400 $4,800 $7,200Total Assets $175,753 $381,725 $759,980Liabilities and Capital Year 1 Year 2 Year 3Current LiabilitiesAccounts Payable $29,483 $22,217 $23,098Current Borrowing $0 $0 $0Other Current Liabilities $0 $0 $0Subtotal Current Liabilities $29,483 $22,217 $23,098Long-term Liabilities $90,000 $80,000 $70,000Total Liabilities $119,483 $102,217 $93,098Paid-in Capital $200,000 $200,000 $200,000Retained Earnings ($290,000) ($143,730) $79,507Earnings $146,270 $223,238 $387,375Total Capital $56,270 $279,507 $666,882Total Liabilities and Capital $175,753 $381,725 $759,980Net Worth $56,270 $279,507 $666,882Need real financials?We recommend using LivePlan as the easiest way to create automatic financials for your ownbusiness plan.
  • 25. Create your own business plan »7.7 Business RatiosThe following table outlines some of Corporate Fitness more important business ratios. The finalcolumn, Industry Profile, details specific ratios based on the Physical Fitness Facilities industryas it is classified by the Standard Industry Classification (SIC) code, 7991. These ratios indicatestrong financial growth and an impressive chance for investment opportunities, makingexpansion and further development both very possible.Ratio Analysis Year 1 Year 2 Year 3 Industry ProfileSales Growth 0.00% 20.72% 26.87% 4.96%Percent of Total AssetsAccounts Receivable 52.94% 29.43% 18.75% 5.74%Other Current Assets 0.00% 0.00% 0.00% 34.12%Total Current Assets 98.63% 98.74% 99.05% 39.86%Long-term Assets 1.37% 1.26% 0.95% 60.14%Total Assets 100.00% 100.00% 100.00% 100.00%Current Liabilities 16.78% 5.82% 3.04% 21.71%Long-term Liabilities 51.21% 20.96% 9.21% 29.51%Total Liabilities 67.98% 26.78% 12.25% 51.22%Net Worth 32.02% 73.22% 87.75% 48.78%Percent of SalesSales 100.00% 100.00% 100.00% 100.00%Gross Margin 93.88% 93.24% 93.34% 100.00%Selling, General & Administrative Expenses 66.74% 58.93% 46.42% 72.76%Advertising Expenses 1.34% 1.11% 0.87% 2.44%Profit Before Interest and Taxes 38.12% 47.05% 63.47% 3.01%Main RatiosCurrent 5.88 16.97 32.59 1.05Quick 5.88 16.97 32.59 0.73
  • 26. Total Debt to Total Assets 67.98% 26.78% 12.25% 2.72%Pre-tax Return on Net Worth 346.59% 106.49% 77.45% 61.25%Pre-tax Return on Assets 110.97% 77.98% 67.96% 7.03%Additional Ratios Year 1 Year 2 Year 3Net Profit Margin 27.13% 34.30% 46.92% n.aReturn on Equity 259.94% 79.87% 58.09% n.aActivity RatiosAccounts Receivable Turnover 3.48 3.48 3.48 n.aCollection Days 55 96 94 n.aAccounts Payable Turnover 7.99 12.17 12.17 n.aPayment Days 27 35 29 n.aTotal Asset Turnover 3.07 1.70 1.09 n.aDebt RatiosDebt to Net Worth 2.12 0.37 0.14 n.aCurrent Liab. to Liab. 0.25 0.22 0.25 n.aLiquidity RatiosNet Working Capital $143,870 $354,707 $729,682 n.aInterest Coverage 19.67 36.02 69.87 n.aAdditional RatiosAssets to Sales 0.33 0.59 0.92 n.aCurrent Debt/Total Assets 17% 6% 3% n.aAcid Test 2.72 11.91 26.42 n.aSales/Net Worth 9.58 2.33 1.24 n.aDividend Payout 0.00 0.00 0.00 n.aRead more: http://www.bplans.com/health_club_business_plan/financial_plan_fc.php#ixzz1m5MsC7ltAppendixSales Forecast
  • 27. Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12SalesSales 0% $17,500 $21,000 $22,500 $26,000 $32,500 $40,000 $47,500 $52,375 $56,450 $65,750 $72,500 $85,000Other 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Sales $17,500 $21,000 $22,500 $26,000 $32,500 $40,000 $47,500 $52,375 $56,450 $65,750 $72,500 $85,000Direct Cost of Sales Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12Cost of Sales $1,500 $1,500 $2,000 $2,000 $2,500 $2,500 $3,000 $3,000 $3,500 $3,500 $4,000 $4,000Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Subtotal Direct Cost of Sales $1,500 $1,500 $2,000 $2,000 $2,500 $2,500 $3,000 $3,000 $3,500 $3,500 $4,000 $4,000Need real financials?We recommend using LivePlan as the easiest way to create automatic financials for your ownbusiness plan.Create your own business plan »Personnel Plan Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12Fitness Center Management 0% $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250Program Director 0% $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500 $4,500Personnel Manager 0% $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000Health/Fitness Specialists 0% $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750 $2,750Attendants 0% $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $1,000Total People 0 0 0 0 0 0 0 0 0 0 0 0Total Payroll $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500Pro Forma Profit and Loss Month Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 12Sales $17,500 $21,000 $22,500 $26,000 $32,500 $40,000 $47,500 $52,375 $56,450 $65,750 $72,500 $85,000Direct Cost of Sales $1,500 $1,500 $2,000 $2,000 $2,500 $2,500 $3,000 $3,000 $3,500 $3,500 $4,000 $4,000Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Cost of Sales $1,500 $1,500 $2,000 $2,000 $2,500 $2,500 $3,000 $3,000 $3,500 $3,500 $4,000 $4,000Gross Margin $16,000 $19,500 $20,500 $24,000 $30,000 $37,500 $44,500 $49,375 $52,950 $62,250 $68,500 $81,000Gross Margin % 91.43% 92.86% 91.11% 92.31% 92.31% 93.75% 93.68% 94.27% 93.80% 94.68% 94.48% 95.29%
  • 28. ExpensesPayroll $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500Marketing/Promotion $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100Depreciation $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600Rent $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000Utilities $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100 $2,100Insurance $450 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450 $450Leased Equipment 0% $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300 $2,300Payroll Taxes 15% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Operating Expenses $25,050 $25,050 $25,050 $25,050 $25,050 $25,050 $25,050 $25,050 $25,050 $25,050 $25,050 $25,050Profit Before Interest and ($9,050) ($5,550) ($4,550) ($1,050) $4,950 $12,450 $19,450 $24,325 $27,900 $37,200 $43,450 $55,950TaxesEBITDA ($8,450) ($4,950) ($3,950) ($450) $5,550 $13,050 $20,050 $24,925 $28,500 $37,800 $44,050 $56,550Interest Expense $916 $909 $903 $896 $889 $882 $875 $868 $861 $854 $847 $750Taxes Incurred ($2,492) ($1,615) ($1,363) ($486) $1,015 $2,892 $4,644 $5,864 $6,760 $9,087 $10,651 $13,800Net Profit ($7,475) ($4,845) ($4,089) ($1,459) $3,046 $8,676 $13,931 $17,593 $20,279 $27,260 $31,952 $41,400Net Profit/Sales -42.71% -23.07% -18.18% -5.61% 9.37% 21.69% 29.33% 33.59% 35.92% 41.46% 44.07% 48.71%Pro Forma Cash Flow Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12Cash ReceivedCash from OperationsCash Sales $7,000 $8,400 $9,000 $10,400 $13,000 $16,000 $19,000 $20,950 $22,580 $26,300 $29,000 $34,000Cash from Receivables $0 $350 $10,570 $12,630 $13,570 $15,730 $19,650 $24,150 $28,598 $31,507 $34,056 $39,585Subtotal Cash from Operations $7,000 $8,750 $19,570 $23,030 $26,570 $31,730 $38,650 $45,100 $51,178 $57,807 $63,056 $73,585Additional Cash ReceivedSales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0New Current Borrowing $36,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0New Investment Received $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Subtotal Cash Received $43,000 $8,750 $19,570 $23,030 $26,570 $31,730 $38,650 $45,100 $51,178 $57,807 $63,056 $73,585
  • 29. Expenditures Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12Expenditures from OperationsCash Spending $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500 $12,500Bill Payments $396 $11,904 $12,769 $13,518 $14,426 $16,416 $18,299 $20,509 $21,728 $23,148 $25,459 $27,549Subtotal Spent on Operations $12,896 $24,404 $25,269 $26,018 $26,926 $28,916 $30,799 $33,009 $34,228 $35,648 $37,959 $40,049Additional Cash SpentSales Tax, VAT, HST/GST Paid Out $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Principal Repayment of Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $36,000BorrowingOther Liabilities Principal Repayment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Long-term Liabilities Principal $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $833 $837RepaymentPurchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Purchase Long-term Assets $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800 $800Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Subtotal Cash Spent $14,529 $26,037 $26,902 $27,651 $28,559 $30,549 $32,432 $34,642 $35,861 $37,281 $39,592 $77,686Net Cash Flow $28,471 ($17,287) ($7,332) ($4,621) ($1,989) $1,181 $6,218 $10,458 $15,316 $20,526 $23,464 ($4,101)Cash Balance $38,471 $21,184 $13,852 $9,231 $7,242 $8,423 $14,641 $25,099 $40,415 $60,941 $84,405 $80,303Pro Forma Balance Sheet Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12Assets Starting BalancesCurrent AssetsCash $10,000 $38,471 $21,184 $13,852 $9,231 $7,242 $8,423 $14,641 $25,099 $40,415 $60,941 $84,405 $80,303Accounts Receivable $0 $10,500 $22,750 $25,680 $28,650 $34,580 $42,850 $51,700 $58,975 $64,248 $72,191 $81,635 $93,050Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Total Current Assets $10,000 $48,971 $43,934 $39,532 $37,881 $41,822 $51,273 $66,341 $84,074 $104,663 $133,132 $166,040 $173,353Long-term AssetsLong-term Assets $0 $800 $1,600 $2,400 $3,200 $4,000 $4,800 $5,600 $6,400 $7,200 $8,000 $8,800 $9,600Accumulated Depreciation $0 $600 $1,200 $1,800 $2,400 $3,000 $3,600 $4,200 $4,800 $5,400 $6,000 $6,600 $7,200Total Long-term Assets $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $2,200 $2,400Total Assets $10,000 $49,171 $44,334 $40,132 $38,681 $42,822 $52,473 $67,741 $85,674 $106,463 $135,132 $168,240 $175,753Liabilities and Capital Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12Current LiabilitiesAccounts Payable $0 $11,479 $12,320 $13,040 $13,881 $15,809 $17,616 $19,786 $20,959 $22,302 $24,544 $26,533 $29,483Current Borrowing $0 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 $36,000 $0Other Current Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Subtotal Current Liabilities $0 $47,479 $48,320 $49,040 $49,881 $51,809 $53,616 $55,786 $56,959 $58,302 $60,544 $62,533 $29,483Long-term Liabilities $100,000 $99,167 $98,334 $97,501 $96,668 $95,835 $95,002 $94,169 $93,336 $92,503 $91,670 $90,837 $90,000
  • 30. Total Liabilities $100,000 $146,646 $146,654 $146,541 $146,549 $147,644 $148,618 $149,955 $150,295 $150,805 $152,214 $153,370 $119,483Paid-in Capital $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000Retained Earnings ($290,000) ($290,000) ($290,000) ($290,000) ($290,000) ($290,000) ($290,000) ($290,000) ($290,000) ($290,000) ($290,000) ($290,000) ($290,000)Earnings $0 ($7,475) ($12,319) ($16,409) ($17,868) ($14,822) ($6,146) $7,786 $25,379 $45,658 $72,918 $104,870 $146,270Total Capital ($90,000) ($97,475) ($102,319) ($106,409) ($107,868) ($104,822) ($96,146) ($82,214) ($64,621) ($44,342) ($17,082) $14,870 $56,270Total Liabilities and Capital $10,000 $49,171 $44,334 $40,132 $38,681 $42,822 $52,473 $67,741 $85,674 $106,463 $135,132 $168,240 $175,753Net Worth ($90,000) ($97,475) ($102,319) ($106,409) ($107,868) ($104,822) ($96,146) ($82,214) ($64,621) ($44,342) ($17,082) $14,870 $56,270 Read more: http://www.bplans.com/health_club_business_plan/financial_plan_fc.php#ixzz1m5My1LDx