[INSERT IMAGE/LOGO]
COMPANY NAME
OWNER’S NAME
[INSERT ADDRESS & CONTACT INFO]
© Copyright 2012 Docstoc Inc. 1
Confidentiality Agreement
The undersigned reader acknowledges that the information provided by COMPANY NAME in this
business plan is confidential; therefore, reader agrees not to disclose it without the express written
permission of COMPANY NAME.
It is acknowledged by reader that information to be furnished in this business plan is in all respects
confidential in nature, other than information which is in the public domain through other means
and that any disclosure or use of same by reader may cause serious harm or damage to COMPANY
NAME.
Upon request, this document is to be immediately returned to COMPANY NAME.
___________________
Signature
___________________
Name (typed or printed)
___________________
Date
This is a business plan. It does not imply an offering of securities.
© Copyright 2012 Docstoc Inc. 2
Table of Contents
1.0 Executive Summary ................................................................................................................... 1
1.1 Objectives.................................................................................................................................... 1
1.2 Mission .......................................................................................................................................... 1
1.3 Keys to Success ........................................................................................................................ 2
2.0 Company Summary ..................................................................................................................... 2
2.1 Company Ownership ............................................................................................................... 2
2.2 Company History ...................................................................................................................... 2
3.0 Products and Services ................................................................................................................ 4
4.0 Market Analysis Summary ........................................................................................................ 4
4.1 Market Segmentation ............................................................................................................. 6
Table: Market Analysis ............................................................................................................... 6
4.2 Target Market Segment Strategy ...................................................................................... 7
4.3 Service Business Analysis ..................................................................................................... 7
4.3.1 Competition and Buying Patterns .............................................................................. 7
5.0 Strategy and Implementation Summary ............................................................................ 7
5.1 Competitive Edge ..................................................................................................................... 8
5.2 Marketing Strategy .................................................................................................................. 8
5.3 Sales Strategy ........................................................................................................................... 8
5.3.1 Sales Forecast.................................................................................................................... 8
Table: Sales Forecast ............................................................................................................. 9
5.4 Milestones.................................................................................................................................. 10
Table: Milestones ....................................................................................................................... 11
6.0 Management Summary ............................................................................................................ 11
6.1 Personnel Plan ......................................................................................................................... 11
Table: Personnel ......................................................................................................................... 12
7.0 Financial Plan ............................................................................................................................... 12
7.1 Important Assumptions ....................................................................................................... 12
7.2 Break-even Analysis .............................................................................................................. 12
Table: Break-even Analysis.................................................................................................... 13
7.3 Projected Profit and Loss ..................................................................................................... 13
Table: Profit and Loss ............................................................................................................... 14
7.4 Projected Cash Flow .............................................................................................................. 16
Table: Cash Flow ........................................................................................................................ 17
7.5 Projected Balance Sheet ...................................................................................................... 19
Table: Balance Sheet ................................................................................................................ 19
7.6 Business Ratios ........................................................................................................................... 20
Table: Ratios ................................................................................................................................ 20
Page 1
COMPANY NAME
1.0 Executive Summary
COMPANY NAME is a fitness training center that will provide both members and casual users an
opportunity to participate in a continuous sports and fitness programs by getting expert help
without time limitations.
COMPANY NAME
OWNER’S NAME
[INSERT ADDRESS AND CONTACT INFO]
1.1 Objectives
The main objectives for the COMPANY NAME are:
1. To expand the current facility
2. To update equipment offering the best for the company's clientele.
3. To offer state of the art facilities, training and classes.
4. To treat every client like family and not like a nameless paying customer.
5. Show a net profit margin in the first year of operation.
1.2 Mission
COMPANY NAME is a fitness complex designed to be used by the residents of Pittsburgh,
Pennsylvania and the surrounding areas.
It is the company's mission to provide the best programs, staff, and equipment to fully meet
the various sport and fitness needs of all members, while generating a profit for the owners and
investors.
Besides providing an excellent value to COMPANY NAME customers, the company is determined
to create an unmatched sporting atmosphere that will add to the enjoyment of every member
and employee of the facility.
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COMPANY NAME
Dedicated to the community, COMPANY NAME strives to support through the use of its facility,
members' enjoyment and appreciation for physical activities, fitness, and for life will be
enhanced.
1.3 Keys to Success
1. Marketing: The Company must make the COMPANY NAME a distinguished name
in Pittsburgh, Pennsylvania and creatively market the services and programs to each of the
market segments.
2. Atmosphere of facility: By creating an unmatched "stimulating" atmosphere in the
COMPANY NAME through the use of first class equipment and targeting facilities, elegant
and comfortable lobby, showers and changing rooms, floors, colors and decoration, people
will want to frequent the facility often and recommend it to their colleagues and friends.
Furthermore, the company's ability to retain members will be enhanced.
3. Knowledgeable/qualified staff and management: By providing the users of the facility
with knowledgeable and qualified staff who show genuine concern for the patrons, people
will feel comfortable and confident that the COMPANY NAME can meet all of their fitness
needs.
2.0 Company Summary
COMPANY NAME is a fitness center that will provide both members and casual users an
opportunity to participate in a continuous sports and fitness programs by getting expert help
and a family atmosphere.
2.1 Company Ownership
COMPANY NAME is an S Corporation owned by OWNER’S NAME.
2.2 Company History
OWNER’S NAME, owner of COMPANY NAME, has worked in the fitness industry for many years.
OWNER’S NAME has owned and operated the facility since April of 1996. As there are many
facilities in the Pittsburgh, Pennsylvania area to compete with, OWNER’S NAME expertise and
personal one-on-one interaction with the client make COMPANY NAME stand out above the rest.
Page 2
COMPANY NAME
Table: Past Performance
Past Performance
2007 2008 2009
Sales $221,969 $240,816 $216,507
Gross Margin $221,969 $240,816 $216,507
Gross Margin % 100.00% 100.00% 100.00%
Operating Expenses $174,493 $196,189 $141,423
Balance Sheet
2007 2008 2009
Current Assets
Cash $3,402 $2,313 $6,275
Other Current Assets $63,312 $77,543 $82,644
Total Current Assets $66,714 $79,856 $88,919
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $66,714 $79,856 $88,919
Current Liabilities
Accounts Payable $0 $0 $0
Current Borrowing $1,317 $639 $860
Other Current Liabilities $0 $0 $0
(interest free)
Total Current Liabilities $1,317 $639 $860
Long-term Liabilities $220,957 $269,848 $238,667
Total Liabilities $222,274 $270,487 $239,527
Paid-in Capital $0 $0 $0
Retained Earnings ($203,036) ($235,258) ($225,692)
Earnings $47,476 $44,627 $75,084
Total Capital ($155,560) ($190,631) ($150,608)
Total Capital and $66,714 $79,856 $88,919
Liabilities
Other Inputs
Payment Days 7 7 7
Page 3
COMPANY NAME
3.0 Products and Services
COMPANY NAME is a fitness center that will provide its users with the following services:
Training by professionals.
Many fitness education and training programs.
Tanning facilities
State of the Art equipment and facility
COMPANY NAME offers professional training (private or group programs), performance analysis
for members, fitness programs and un-paralleled access to further fitness education for families
and the community.
4.0 Market Analysis Summary
COMPANY NAME will be the only kind of fitness training facility of its kind in all Pittsburgh,
Pennsylvania. Some aspects of the facility will cater mainly residents of Pittsburgh members
but, generally will appeal to everyone in the area.
In addition, COMPANY NAME shall develop good relations with well known youth
organizations statewide in order to bring fitness and sports training to youth, advise and urge
them to continue for a healthier and more fruitful life.
Pittsburgh, Pennsylvania, located in the United States, is the second largest city in the state
and is the county seat of Allegheny County. Its population was 334,563 at the 2000 census; by
2006, it was estimated to have fallen to 312,819. The population of the seven-county
metropolitan area is 2,462,571. Downtown Pittsburgh retains substantial economic influence,
ranking at 25th in the nation for jobs within the urban core (and is 6th in job density).
Pittsburgh is the largest city along the Ohio River and is also the largest city located in
Appalachia.
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COMPANY NAME
In recent years, Pittsburgh has ranked high on livability surveys. In 2007, Pittsburgh was
named "America's Most Livable City" by Places Rated Almanac. In 2009, Pittsburgh was named
most livable city in the United States and 29th-most-livable city worldwide by The Economist.
Most recently, in 2010, Forbes and Yahoo! listed Pittsburgh as the most livable city in the
United States. In 2007, Forbes magazine named Pittsburgh, in an eight-way tie, the 10th
cleanest city, and in 2008 Forbes listed Pittsburgh as the 13th best city for young professionals
to live.
As of the American Community Survey 3-Year Estimate of 2005–2007, the city's population was
68.3% White (65.8% non-Hispanic White alone), 28.0% Black or African American, 1.0%
American Indian and Alaska Native, 4.0% Asian, 0.1% Native Hawaiian and Other Pacific
Islander, 0.9% from some other race and 2.0% from two or more races. 1.9% of the total
population was Hispanic or Latino of any race.
As of the census of 2000, there were 334,563 people, 143,739 households, and 74,169 families
residing in the city. The population density was 6,019.0 people per square mile (2,324.1/km²).
There are 163,366 housing units at an average density of 2,939.1/mi² (1,134.9/km²). The
racial makeup of the city was 67.63% White, 27.12% African American, 0.19% Native
American, 2.75% Asian, 0.03% Pacific Islander, 0.66% from other races, and 1.61% from two
or more races. Hispanic or Latino of any race was 1.32% of the population.
The five largest White ethnic groups in the city of Pittsburgh are German (19.7%), Irish
(15.8%), Italian (11.8%), Polish (8.4%), and English (4.6%), while the metropolitan area is
approximately 22% German, and 16% Italian, and 12% Irish. Pittsburgh has one of the largest
Italian communities in the nation, and also has the nation's fifth largest Ukrainian community.
There were 143,739 households out of which 21.9% had children under the age of 18 living
with them, 31.2% were married couples living together, 16.5% had a female householder with
no husband present, and 48.4% were non-families. 39.4% of all households were made up of
individuals and 13.7% had someone living alone who is 65 years of age or older. The average
household size was 2.17 and the average family size was 2.95.
In the city the population was spread out with 19.9% under the age of 18, 14.8% from 18 to
24, 28.6% from 25 to 44, 20.3% from 45 to 64, and 16.4% who were 65 years of age or older.
The median age was 36 years. For every 100 females there were 90.7 males. For every 100
females age 18 and over, there were 87.8 males.
The median income for a household in the city was $28,588, and the median income for a
family was $38,795. Males had a median income of $32,128 versus $25,500 for females. The
per capita income for the city was $18,816. About 15.0% of families and 20.4% of the
population were below the poverty line, including 27.5% of those under the age of 18 and
13.5% ages 65 or older.
In 2002, it was estimated that Pittsburgh ranked 22nd of 69 urban places in the U.S. in terms
of number of residents 25 years or older who had completed a Bachelor's degree, with 31% of
such people having completed the degree. The same study ranked Pittsburgh 15th of the 69
places in terms of number of residents 25 years or older who have completed a high school
degree, with a figure of 84.7%.
Page 5
COMPANY NAME
4.1 Market Segmentation
COMPANY NAME has a focus on meeting the local need for sports and fitness training within the
10-mile radius of Pittsburgh, Pennsylvania.
Table: Market Analysis
Market
Analysis
2010 2011 2012 2013 2014
Potential Growth CAGR
Customers
Children 10% 33,456 2,200 2,420 2,662 2,928 -
45.61%
Young Adults 25% 200,738 10,500 15,750 23,625 35,438 -
35.18%
Parents 10% 66,913 9,000 13,500 20,250 30,375 -
17.92%
Professional 5% 33,456 3,000 4,500 6,750 10,125 -
Athletes 25.83%
Housewives 10% 33,456 650 845 1,099 1,429 -
54.54%
Total - 368,019 25,350 37,015 54,386 80,295 -
31.66% 31.66%
Page 6
COMPANY NAME
4.2 Target Market Segment Strategy
Due to the size, appearance and convenient location of the COMPANY NAME, many people will
be attracted to see what it has to offer. However, the company will not be content to just wait
for customers to come to them. Instead, COMPANY NAME will focus our marketing strategies on
those market segments who match our offerings. The great thing about marketing COMPANY
NAME is that each market segment relates, in certain ways, to all the others.
Some of the ways COMPANY NAME will get people into the facility include:
1. Offering tours to junior and senior high schools.
2. Hosting and/or supporting various community events that will attract many people who
otherwise would not come.
3. Provide special discounts for annual subscriptions.
4. Launching an advertising campaign to have the company more visible to the community.
Print and radio media is being considered to promote both the facility and the equipment
available for use.
4.3 Service Business Analysis
Athletics and fitness are becoming increasingly competitive at all levels. COMPANY
NAME publicly guarantees their professionals can help clients achieve their fitness goals.
COMPANY NAME is committed to optimizing fitness training to of all ages and abilities. The
company is dedicated to maximizing the experience of athletes both in and out of the gym.
4.3.1 Competition and Buying Patterns
The competition of COMPANY NAME in Pittsburgh and the surrounding areas includes
[INSERT COMPETITORS]
Potential members will usually compare the training facilities and find one that fits their specific
needs, or has the amenities that he/she wants. Value is usually very important to these
potential members as most people want to get the best value for their money.
Furthermore, new programs, events and etc. will be developed on a continuous basis.
5.0 Strategy and Implementation Summary
COMPANY NAME has a very large potential market. Because of population of Pittsburgh,
Pennsylvania and the surrounding areas, the company seeks for it will become the main fitness
training authority and representative in the surrounding areas very quickly. This will be
accomplished by actively and continuously promoting COMPANY NAME through media as well as
future hosting and supporting various community events.
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COMPANY NAME
5.1 Competitive Edge
COMPANY NAME competitive edge is three fold. First, COMPANY NAME is the only fitness
training facility that offers such kind of training facilities that will be available for the members.
The second part of the company's competitive edge is the location, size, and appearance of the
facility that will attract many people into the complex. Finally, the third part is the years of
expertise of the professional trainers that will be available and continuously evolving along with
the company's clientele.
By maintaining the focus in strategy, marketing, program development, and fulfillment,
COMPANY NAME will be known as the top fitness and sports training center in Pittsburgh. The
company should be aware however, that the competitive edge may be diluted if COMPANY
NAME becomes complacent in new program development and implementation. It will be
important for COMPANY NAME to keep up with the current trends in sports training programs.
5.2 Marketing Strategy
The marketing strategy is the core of the main strategy:
1. Emphasize service and support.
2. Build a relationship business.
3. Focus on specialized athletic training as the key target market.
5.3 Sales Strategy
Sales (membership and equipment) are based on the services and amenities provided by the
facility. The "something for everyone" slogan fits perfectly with COMPANY NAME. All of the
users of the facility must feel they are getting the best possible value for their money. If there
is a better value for equal services COMPANY NAME will match or beat that value for customers.
Each person desiring program participation at COMPANY NAME will be able to sit down with a
representative and be notified of all the program options. During this brief discussion, the
person will be also informed of all of the services, programs and amenities COMPANY NAME has
to offer. It will be important to establish a relationship of trust with prospective members as
membership preservation is an important aspect in the company's business.
5.3.1 Sales Forecast
The basic assumption is that an enviable growth rate is expected for several years. Further
expansion of the grounds shall be implemented once funding is acquired.
It is also assumed that by next year the growth rate will be steady although the numbers are
very pessimistic for safety reasons. However, even this will increase if the popularity of the
center does so.
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COMPANY NAME
Table: Sales Forecast
Sales Forecast
2010 2011 2012
Sales
Clothing $689 $710 $731
Memberships $272,928 $281,116 $289,549
Supplements $2,884 $2,971 $3,060
Tanning $11,076 $11,408 $11,750
Total Sales $287,577 $296,205 $305,090
Direct Cost of Sales 2010 2011 2012
Clothing – Inventory $450 $464 $477
Supplements – $22,341 $23,011 $23,702
Inventory
Subtotal Direct Cost $22,791 $23,475 $24,179
of Sales
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COMPANY NAME
5.4 Milestones
The accompanying table lists important program milestones, with dates and budgets for each.
The milestone schedule indicates the company's emphasis on planning for implementation. The
most important programs are the sales and marketing programs listed in detail in the previous
topics.
The company's main goal is to expand the existing facility to make more accommodations for
more clientele. COMPANY NAME expects all construction to be complete within the year.
What the table doesn't show is the commitment behind it. COMPANY NAME business plan
includes complete provisions for planned vs. actual analysis, and the company will hold monthly
follow-up meetings to discuss the variance and course corrections.
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COMPANY NAME
Table: Milestones
Milestones
Milestone Start End Date Budget Manager Department
Date
Expand Current 6/1/2010 12/1/2012 $25,000 Owner
Facility
Equipment 8/1/2010 9/1/2010 $25,000 Owner
Utilities 8/1/2010 12/31/2010 $15,000 Owner
Advertising 8/1/2010 12/31/2010 $20,000 Owner
Rent 8/1/2010 8/1/2011 $50,000 Owner
Repairs and 8/1/2010 10/31/2010 $5,000 Owner
Maintenance
Repayment of 8/1/2010 10/31/2010 $235,000 Owner
2007 Debt
New Employee 8/1/2010 12/31/2010 $25,000 Owner
Payroll
Totals $400,000
6.0 Management Summary
The initial staff will consist of the following:
1. Owner
2. 10 Fitness Instructors (Independent Contractors 1099)
3. Administrative Assistant
Platinum Fitness Center will add more staff members once the need arises.
6.1 Personnel Plan
The Personnel Plan reflects the need to bolster the company's capabilities to match COMPANY
NAME positioning. The total employment should increase up to seven the first year and to ten
by the third year. Detailed monthly projections are included in the appendix.
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COMPANY NAME
Table: Personnel
Personnel
Plan
2010 2011 2012
Owner $0 $0 $0
Fitness $96,000 $98,880 $101,846
Instructors
Administrative $28,059 $28,901 $29,768
Total People 7 8 10
Total Payroll $124,059 $127,781 $131,614
7.0 Financial Plan
COMPANY NAME assumes the start of implementation of facility improvements will be financed
by the grant funding requested.
7.1 Important Assumptions
The financial plan depends on important assumptions. The monthly assumptions are included in
the appendix. Interest rates, tax rates, and personnel burden are based on conservative
assumptions.
Some of the important underlying assumptions are:
The company assumes a slow growth economy, without major recession.
The company assumes the rate of growth for the number of facility memberships will
continue.
7.2 Break-even Analysis
For our Break-even Analysis, COMPANY NAME assumes monthly running costs which include the
full payroll, rent, and utilities, and an estimation of other running costs.
Margins are harder to assume.
The table shows what the company needs to sell per month to break-even, according to these
assumptions. This is about two-thirds of the planned sales level, so COMPANY NAME
believes the organization can maintain it.
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COMPANY NAME
Table: Break-even Analysis
Break-even
Analysis
Monthly Revenue $19,741
Break-even
Assumptions:
Average Percent 8%
Variable Cost
Estimated Monthly $18,177
Fixed Cost
7.3 Projected Profit and Loss
The projected profit and loss is shown on the Profit and Loss table. COMPANY NAME shows a
conservative estimated net profit in the first year. According to the research carried out by the
company's team, these projections are conservative and should be easily attained. The monthly
estimates are included in the appendix.
Page 13
COMPANY NAME
Table: Profit and Loss
Pro Forma Profit and Loss
2010 2011 2012
Sales $287,577 $296,205 $305,090
Direct Cost of Sales $22,791 $23,475 $24,179
Other Costs of Goods $0 $0 $0
Total Cost of Sales $22,791 $23,475 $24,179
Gross Margin $264,786 $272,730 $280,911
Gross Margin % 92.07% 92.07% 92.07%
Expenses
Payroll $124,059 $127,781 $131,614
Sales and Marketing and $20,000 $10,000 $10,000
Other Expenses
Depreciation $0 $0 $0
Facility Operations $67,368 $69,389 $71,471
Insurance (fire, damages, $4,416 $4,548 $4,685
loss)
Payroll Taxes $2,280 $2,348 $2,419
Total Operating Expenses $218,123 $214,066 $220,189
Profit Before Interest and $46,663 $58,664 $60,722
Taxes
EBITDA $46,663 $58,664 $60,722
Interest Expense $16,119 $453 $453
Taxes Incurred $9,163 $17,463 $18,081
Net Profit $21,381 $40,748 $42,189
Net Profit/Sales 7.43% 13.76% 13.83%
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COMPANY NAME
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COMPANY NAME
7.4 Projected Cash Flow
The following cash flow projections show the annual amounts only. For more detailed monthly
projections please see the appendix.
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COMPANY NAME
Table: Cash Flow
Pro Forma Cash Flow
2010 2011 2012
Cash Received
Cash from Operations
Cash Sales $287,577 $296,205 $305,090
Subtotal Cash from $287,577 $296,205 $305,090
Operations
Additional Cash Received
Sales Tax, VAT, HST/GST $0 $0 $0
Received
New Current Borrowing $0 $0 $0
New Other Liabilities $0 $0 $0
(interest-free)
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $400,000 $0 $0
Subtotal Cash Received $687,577 $296,205 $305,090
Expenditures 2010 2011 2012
Expenditures from Operations
Cash Spending $124,059 $127,781 $131,614
Bill Payments $128,256 $131,064 $130,991
Subtotal Spent on Operations $252,315 $258,845 $262,605
Additional Cash Spent
Sales Tax, VAT, HST/GST $0 $0 $0
Paid Out
Principal Repayment of $235,000 $0 $0
Current Borrowing
Other Liabilities Principal $0 $0 $0
Repayment
Long-term Liabilities Principal $0 $0 $0
Repayment
Purchase Other Current $25,000 $0 $0
Assets
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $512,315 $258,845 $262,605
Net Cash Flow $175,262 $37,360 $42,485
Cash Balance $181,537 $218,897 $261,383
Page 17
COMPANY NAME
Page 18
COMPANY NAME
7.5 Projected Balance Sheet
The balance sheet in the following table shows managed but sufficient growth of net worth, and
a sufficiently healthy financial position. The monthly estimates are included in the appendix.
Table: Balance Sheet
Pro Forma
Balance Sheet
2010 2011 2012
Assets
Current Assets
Cash $181,537 $218,897 $261,383
Other Current $107,644 $107,644 $107,644
Assets
Total Current $289,181 $326,541 $369,027
Assets
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated $0 $0 $0
Depreciation
Total Long-term $0 $0 $0
Assets
Total Assets $289,181 $326,541 $369,027
Liabilities and 2010 2011 2012
Capital
Current Liabilities
Accounts Payable $13,882 $10,494 $10,791
Current Borrowing ($234,140) ($234,140) ($234,140)
Other Current $0 $0 $0
Liabilities
Subtotal Current ($220,258) ($223,646) ($223,349)
Liabilities
Long-term $238,667 $238,667 $238,667
Liabilities
Total Liabilities $18,409 $15,021 $15,318
Paid-in Capital $400,000 $400,000 $400,000
Retained Earnings ($150,608) ($129,227) ($88,480)
Earnings $21,381 $40,748 $42,189
Total Capital $270,773 $311,520 $353,709
Total Liabilities and $289,181 $326,541 $369,027
Capital
Net Worth $270,773 $311,520 $353,709
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COMPANY NAME
7.6 Business Ratios
The table follows with our main business ratios. These are compared with the Industry Profile
ratios for Fitness and Sports Training Centers.
Table: Ratios
Ratio Analysis
2010 2011 2012 Industry
Profile
Sales Growth 32.83% 3.00% 3.00% 6.15%
Percent of Total Assets
Other Current Assets 48.67% 58.03% 71.24% 35.22%
Total Current Assets 105.80% 114.04% 126.24% 45.05%
Long-term Assets -5.80% -14.04% -26.24% 54.95%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities -98.22% - - 20.49%
117.83% 144.37%
Long-term Liabilities 107.91% 128.67% 157.95% 29.94%
Total Liabilities 9.69% 10.84% 13.58% 50.43%
Net Worth 90.31% 89.16% 86.42% 49.57%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 92.07% 92.07% 92.07% 100.00%
Selling, General & 81.36% 79.71% 69.85% 62.27%
Administrative Expenses
Advertising Expenses 0.00% 0.00% 0.00% 3.08%
Profit Before Interest and -11.66% -11.45% -11.26% 2.80%
Taxes
Main Ratios
Current -1.08 -0.97 -0.87 1.27
Quick -1.08 -0.97 -0.87 0.72
Total Debt to Total Assets 9.69% 10.84% 13.58% 59.53%
Pre-tax Return on Net Worth -24.85% -20.79% -26.65% 11.00%
Pre-tax Return on Assets -22.44% -18.53% -23.03% 4.45%
Additional Ratios 2010 2011 2012
Net Profit Margin -17.26% -11.61% -11.41% n.a
Return on Equity -24.85% -20.79% -26.65% n.a
Activity Ratios
Accounts Payable Turnover 11.85 12.17 12.17 n.a
Payment Days 27 31 30 n.a
Total Asset Turnover 1.30 1.60 2.02 n.a
Debt Ratios
Debt to Net Worth 0.11 0.12 0.16 n.a
Page 20
COMPANY NAME
Current Liab. to Liab. -10.14 -10.87 -10.63 n.a
Liquidity Ratios
Net Working Capital $451,247 $430,081 $408,892 n.a
Interest Coverage -2.08 -74.94 -75.87 n.a
Additional Ratios
Assets to Sales 0.77 0.63 0.50 n.a
Current Debt/Total Assets -98% -118% -144% n.a
Acid Test 0.00 0.00 0.00 n.a
Sales/Net Worth 1.44 1.79 2.34 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Page 21
Appendix
Table: Sales Forecast
Sales Forecast
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales
Clothing 0% $44 $46 $48 $50 $52 $55 $58 $61 $64 $67 $70 $74
Memberships 0% $17,148 $18,005 $18,905 $19,850 $20,842 $21,884 $22,978 $24,127 $25,333 $26,600 $27,930 $29,326
Supplements 0% $181 $190 $200 $210 $220 $231 $243 $255 $268 $281 $295 $310
Tanning 0% $696 $731 $768 $806 $846 $888 $932 $979 $1,028 $1,079 $1,133 $1,190
Total Sales $18,069 $18,972 $19,921 $20,916 $21,960 $23,058 $24,211 $25,422 $26,693 $28,027 $29,428 $30,900
Direct Cost of Sales Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Clothing - Inventory $32 $33 $34 $35 $36 $37 $38 $39 $40 $41 $42 $43
Supplements - $1,574 $1,621 $1,670 $1,720 $1,772 $1,825 $1,880 $1,936 $1,994 $2,054 $2,116 $2,179
Inventory
Subtotal Direct Cost of $1,606 $1,654 $1,704 $1,755 $1,808 $1,862 $1,918 $1,975 $2,034 $2,095 $2,158 $2,222
Sales
Page 1
Appendix
Table: Personnel
Personnel Plan
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Owner 0% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Fitness 0% $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000 $8,000
Instructors
Administrative 0% $1,977 $2,036 $2,097 $2,160 $2,225 $2,292 $2,361 $2,432 $2,505 $2,580 $2,657 $2,737
Total People 2 2 2 2 2 2 2 3 4 5 6 7
Total Payroll $9,977 $10,036 $10,097 $10,160 $10,225 $10,292 $10,361 $10,432 $10,505 $10,580 $10,657 $10,737
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Appendix
Table: Profit and Loss
Pro Forma Profit and Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $18,069 $18,972 $19,921 $20,916 $21,960 $23,058 $24,211 $25,422 $26,693 $28,027 $29,428 $30,900
Direct Cost of Sales $1,606 $1,654 $1,704 $1,755 $1,808 $1,862 $1,918 $1,975 $2,034 $2,095 $2,158 $2,222
Other Costs of Goods $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $1,606 $1,654 $1,704 $1,755 $1,808 $1,862 $1,918 $1,975 $2,034 $2,095 $2,158 $2,222
Gross Margin $16,463 $17,318 $18,217 $19,161 $20,152 $21,196 $22,293 $23,447 $24,659 $25,932 $27,270 $28,678
Gross Margin % 91.11% 91.28% 91.45% 91.61% 91.77% 91.92% 92.08% 92.23% 92.38% 92.53% 92.67% 92.81%
Expenses
Payroll $9,977 $10,036 $10,097 $10,160 $10,225 $10,292 $10,361 $10,432 $10,505 $10,580 $10,657 $10,737
Sales and Marketing and Other $0 $0 $0 $0 $0 $0 $0 $4,000 $4,000 $4,000 $4,000 $4,000
Expenses
Depreciation $1,069 $1,069 $1,069 $1,069 $1,069 $1,069 $1,069 $1,069 $1,069 $1,069 $1,069 $1,069
Facility Operations $11,227 $11,227 $11,227 $11,227 $11,227 $11,227 $11,227 $11,227 $11,227 $11,227 $11,227 $11,227
Insurance (fire, damages, loss) 15% $2,208 $0 $0 $0 $0 $0 $2,208 $0 $0 $0 $0 $0
Payroll Taxes 15% $570 $0 $0 $570 $0 $0 $570 $0 $0 $570 $0 $0
Total Operating Expenses $25,051 $22,332 $22,393 $23,026 $22,521 $22,588 $25,435 $26,728 $26,801 $27,446 $26,953 $27,033
Profit Before Interest and Taxes ($8,588) ($5,014) ($4,176) ($3,865) ($2,369) ($1,392) ($3,142) ($3,281) ($2,142 ($1,514 $317 $1,645
) )
EBITDA ($7,519) ($3,945) ($3,107) ($2,796) ($1,300) ($323) ($2,073) ($2,212) ($1,073 ($445) $1,386 $2,714
)
Interest Expense $1,996 $1,996 $1,996 $1,996 $1,996 $1,996 $1,996 $1,996 $38 $38 $38 $38
Taxes Incurred $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Net Profit ($10,58 ($7,010) ($6,172) ($5,861) ($4,365) ($3,388) ($5,138) ($5,277) ($2,180 ($1,552 $279 $1,607
4) ) )
Net Profit/Sales -58.58% -36.95% -30.98% -28.02% -19.88% -14.69% -21.22% -20.76% -8.17% -5.54% 0.95% 5.20%
Page 3
Appendix
Table: Cash Flow
Pro Forma Cash Flow
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Cash Received
Cash from Operations
Cash Sales $18,069 $18,972 $19,921 $20,916 $21,960 $23,058 $24,211 $25,422 $26,693 $28,027 $29,428 $30,900
Subtotal Cash from Operations $18,069 $18,972 $19,921 $20,916 $21,960 $23,058 $24,211 $25,422 $26,693 $28,027 $29,428 $30,900
Additional Cash Received
Sales Tax, VAT, HST/GST 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Received
New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Other Liabilities (interest- $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
free)
New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
New Investment Received $0 $0 $0 $0 $0 $0 $0 $400,00 $0 $0 $0 $0
0
Subtotal Cash Received $18,069 $18,972 $19,921 $20,916 $21,960 $23,058 $24,211 $425,42 $26,693 $28,027 $29,428 $30,900
2
Expenditures Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Expenditures from Operations
Cash Spending $9,977 $10,036 $10,097 $10,160 $10,225 $10,292 $10,361 $10,432 $10,505 $10,580 $10,657 $10,737
Bill Payments $587 $17,516 $14,879 $14,948 $15,531 $15,033 $15,180 $17,962 $19,135 $17,320 $17,913 $17,425
Subtotal Spent on Operations $10,564 $27,552 $24,976 $25,108 $25,756 $25,325 $25,541 $28,394 $29,640 $27,900 $28,570 $28,162
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Out
Principal Repayment of Current $0 $0 $0 $0 $0 $0 $0 $0 $235,000 $0 $0 $0
Borrowing
Other Liabilities Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Long-term Liabilities Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment
Purchase Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $25,000 $0 $0 $0
Purchase Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Subtotal Cash Spent $10,564 $27,552 $24,976 $25,108 $25,756 $25,325 $25,541 $28,394 $289,640 $27,900 $28,570 $28,162
Net Cash Flow $7,505 ($8,580 ($5,055 ($4,192 ($3,796 ($2,267) ($1,330) $397,02 ($262,94 $127 $858 $2,738
) ) ) ) 8 7)
Cash Balance $13,780 $5,200 $145 ($4,046 ($7,842 ($10,10 ($11,43 $385,59 $122,643 $122,77 $123,62 $126,36
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Appendix
) ) 9) 9) 0 0 8 6
Page 5
Appendix
Table: Balance Sheet
Pro Forma Balance
Sheet
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Assets Starting
Balances
Current Assets
Cash $6,275 $13,780 $5,200 $145 ($4,046) ($7,842) ($10,109 ($11,439 $385,590 $122,643 $122,770 $123,628 $126,366
) )
Other Current Assets $82,644 $82,644 $82,644 $82,644 $82,644 $82,644 $82,644 $82,644 $82,644 $107,644 $107,644 $107,644 $107,644
Total Current Assets $88,919 $96,424 $87,844 $82,789 $78,598 $74,802 $72,535 $71,205 $468,234 $230,287 $230,414 $231,272 $234,010
Long-term Assets
Long-term Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated $0 $1,069 $2,138 $3,207 $4,276 $5,345 $6,414 $7,483 $8,552 $9,621 $10,690 $11,759 $12,828
Depreciation
Total Long-term $0 ($1,069) ($2,138) ($3,207) ($4,276) ($5,345) ($6,414) ($7,483) ($8,552) ($9,621) ($10,690 ($11,759 ($12,828
Assets ) ) )
Total Assets $88,919 $95,355 $85,706 $79,582 $74,322 $69,457 $66,121 $63,722 $459,682 $220,666 $219,724 $219,513 $221,182
Liabilities and Capital Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Current Liabilities
Accounts Payable $0 $17,020 $14,381 $14,429 $15,030 $14,530 $14,582 $17,322 $18,558 $16,722 $17,332 $16,842 $16,904
Current Borrowing $860 $860 $860 $860 $860 $860 $860 $860 $860 ($234,14 ($234,14 ($234,14 ($234,14
0) 0) 0) 0)
Other Current $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Liabilities
Subtotal Current $860 $17,880 $15,241 $15,289 $15,890 $15,390 $15,442 $18,182 $19,418 ($217,41 ($216,80 ($217,29 ($217,23
Liabilities 8) 8) 8) 6)
Long-term Liabilities $238,667 $238,667 $238,667 $238,667 $238,667 $238,667 $238,667 $238,667 $238,667 $238,667 $238,667 $238,667 $238,667
Total Liabilities $239,527 $256,547 $253,908 $253,956 $254,557 $254,057 $254,109 $256,849 $258,085 $21,249 $21,859 $21,369 $21,431
Paid-in Capital $0 $0 $0 $0 $0 $0 $0 $0 $400,000 $400,000 $400,000 $400,000 $400,000
Retained Earnings ($150,608) ($150,60 ($150,60 ($150,60 ($150,60 ($150,60 ($150,60 ($150,60 ($150,60 ($150,60 ($150,60 ($150,60 ($150,60
8) 8) 8) 8) 8) 8) 8) 8) 8) 8) 8) 8)
Earnings $0 ($10,584 ($17,594 ($23,766 ($29,627 ($33,992 ($37,380 ($42,518 ($47,795 ($49,975 ($51,527 ($51,248 ($49,640
) ) ) ) ) ) ) ) ) ) ) )
Total Capital ($150,608) ($161,19 ($168,20 ($174,37 ($180,23 ($184,60 ($187,98 ($193,12 $201,597 $199,417 $197,865 $198,144 $199,752
2) 2) 4) 5) 0) 8) 6)
Total Liabilities and $88,919 $95,355 $85,706 $79,582 $74,322 $69,457 $66,121 $63,722 $459,682 $220,666 $219,724 $219,513 $221,182
Capital
Net Worth ($150,608) ($161,19 ($168,20 ($174,37 ($180,23 ($184,60 ($187,98 ($193,12 $201,597 $199,417 $197,865 $198,144 $199,752
2) 2) 4) 5) 0) 8) 6)
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Appendix
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