2. Quarter 1 Revenue
Projections
● In our first three months we initially projected 20 new members. For
the sake of caution, our projections will assume only 10 members in
those three months.
● We will assume each new member will take an average of two
introduction classes at $50 per class.
New 10
Members(Q1)
Monthly Dues $125 per month ( x 3
months)
Classes $50 (x 20 classes)
Total Revenue $4750
(Q1)
3. Quarter 2 Revenue
Projections
● In the coming quarters we temper our expectations. We will expect 2
new members per month, making a total of 6 new members for Q2.
New 6
Members(Q2)
Monthly Dues $125 per month ( x 3
months)
Classes $50 (x 12 classes)
Total Revenue $2850
(Q1)
4. Quarter 3 Revenue
Projections
● For Q3, we are expecting the same growth. Six more new customers
over the three month span.
New 6
Members(Q3)
Monthly Dues $125 per month ( x 3
months)
Classes $50 (x 12 classes)
Total Revenue $2850
(Q3)
5. Quarter 4 Revenue
Projections
● For Q4, we have factored in the holidays and project 5 new members
for the final three months of the year.
New5 5
Members(Q4)
Monthly Dues $125 per month ( x 3
months)
Classes $50 (x 10 classes)
Total Revenue $2375
(Q4)
6. First Year Revenue Totals
● The first year total income is $12825.
Q1 Total $4750
Q2 Total $2850
Q3 Total $2850
Q4 Total $2375
Full Year $12825
Revenue
7. Losses Over 3 Years
● We have projected the first year to cost $10,200 per quarter.
● For the years that follow, running the gym is a minimal cost. Years two and
three are as follows:
Rent/Year $12000
Crossfit Affiliation/Year $3000
Insurance/Year $2000
Slush Fund/Year $2000
Total Yearly Costs $18000
● Years two and three would cost $4500 per quarter. As the gym does not
require AC, the power bill is minimal and is included in the rent.
● This allows for our second year to have a large amount of potential to make
money.
8. Projections Summary
● While the first year may prove to be difficult, a business like this has
much potential in the years to come. Year two we will reach our break
even point even with no new growth.
● And with word of mouth and reputation being built, growth is
inevitable.
● All projections are “worst case” scenarios. Losses are as high as
possible and profits as low as possible.
● We want to be prepared for anything.
● Eventually other things such as t-shirt sales will help to boost profits,
as well as affiliating with local sports teams, first responder
departments and working with charities will grow our brand and bring
new members.
