Business Plan for Fitness & Gyms

COMPANY NAME
Business plan
OWNER’S NAME
INSERT ADDRESS
Phone:
Email:
2012

COMPANY NAME 2012
Chart: Gross Margin Yearly.....................................................................................................17
7.4 Projected Cash Flow...............................................................................................................18
Table: Cash Flow.........................................................................................................................18
Chart: Cash...................................................................................................................................19
7.5 Projected Balance Sheet ......................................................................................................19
Table: Balance Sheet ................................................................................................................19
7.6 Business Ratios........................................................................................................................20
Table: Ratios.................................................................................................................................20
Table: Sales Forecast..........................................................................................................................1
Table: Personnel ...................................................................................................................................2
Table: Personnel ...................................................................................................................................2
Table: Profit and Loss .........................................................................................................................3
Table: Cash Flow...................................................................................................................................4
Table: Balance Sheet ..........................................................................................................................5
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COMPANY NAME 2012
COMPANY NAME | PHONE # 3
1.3 Keys to Success
Keys to success for the company will include:
1. Maintaining a reputable and untarnished reputation in the community.
2. Quality service.
3. Competitive pricing.
4. Flexible hours.
2.0 Company Summary
The focus of the COMPANY NAME is to keep the whole family involved in the club by exposing
everyone to the variety of activities and services the club offers. In addition, there is a childcare
center that will keep members' children happy and entertained while members take part in any of
the center's activities and services. COMPANY NAME is conveniently located downtown in [CITY],
[STATE]. COMPANY NAME was created in 2008 and has continued strong since inception.
Upon receipt of the grant funds in the amount of $350,000 COMPANY NAME would proceed with
plans to buy a building to have room to offer a complete medically integrated facility that offers a
physical therapy and a massage therapy center, a structured obesity program.
Our Services and guarantee:
• 100% Satisfaction Guaranteed
• The Customer's Satisfaction is Our #1 Concern
• Committed to Quality and Service
2.1 Company Ownership
COMPANY NAME is a sole proprietor, which was created in 2008 and fully operational in 2009.
INSERT NAME is 100% owner and manager and will manage the daily operation.
2.2 Company History
COMPANY NAME was created under the ownership of INSERT NAME in October of 2008 INSERT
NAME remains 100% sole owner. INSERT NAME has spent years dedicating her life to wellbeing
and fitness. In 2008 she took her ideas of creating a fitness center that can help create a lifestyle
for others that are looking to have healthier lives. The goal is to exceed our customers'
expectations with quality, value and professional service.
The 2010 Profit and Loss Statement is estimated based on the actual activity through October 30,
2010. As the Company is a sole proprietorship, the Balance Sheet for year end 2010 is estimated
based on average balances at the end of each month for cash, amount of inventory in stock,
accounts payable and fixed assets which are fully depreciated.
The Company's growth will come from its strength's; 100% customer guarantee, commitment to
quality and service, design and arrangement capabilities, experience and a loyal satisfied
customer base.

COMPANY NAME 2012
Chart: Past Performance
Sales
Gross
Net
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
$220,000
2008 2009 2010
Past Performance
3.0 Services
The Fitness Center has the following activities and services:
• Brand new Precor Treadmills and Elliptical
• Full line of York rubberized dumbbells up to 50 lbs.
• 3-way free weight bench with rack for flat, incline and decline press
• Highly educated and experienced Wellness Coaches who can assist you in reaching your
fitness and nutritional goals
• Over 30 fun, energetic and creative group fitness classes a week for you to choose from
• Fit Kids program
• Nutrition and Cooking classes
• Fitness center with cardiovascular and weight training equipment.
4.0 Market Analysis Summary
Even in the midst of the economic downturn, the industry has maintained steady growth, with
membership rates growing consistently and profits remaining solid. Demand for gyms and health
and fitness clubs will continue to rise over the next five years, as the general public becomes
more health conscious and the aging population places a greater value on staying fit.
Additionally, the amount of leisure time and growth in household incomes will positively affect
businesses, leading operators to expand into larger facilities.

COMPANY NAME 2012
5.1 SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within the company,
and describes the opportunities and threats facing Interior Views.
5.1.1 Strengths
• Strong relationships with suppliers that offer credit arrangements, flexibility, and response to
special product requirements.
• Excellent and stable staff, offering personalized customer service.
• Great retail space that offers flexibility with a positive and attractive, inviting atmosphere.
• Strong merchandising and product presentation.
• Good referral relationships.
• High customer loyalty.
5.1.2 Weaknesses
• Access to additional operating capital.
• Cash flow continues to be unpredictable.
• Owners are still climbing the "experience curve."
• Challenges of the seasonality of the business.
5.1.3 Opportunities
• Growing market with a significant percentage of our target market still not knowing we exist.
• Strategic alliances offering sources for referrals and joint marketing activities to extend our
reach.
• Changes in design trends can initiate home updating, and therefore, generate sales.
• Increasing sales opportunities beyond our "100-mile" target area including several smaller
communities that have produced a faithful following of customers.
• Internet potential for selling products to other markets.
5.1.4 Threats
1. The downturn in the economy has impacted gym sales.
2. Expansion of national gyms into the local market
3. Competition from a national gym; or a store with greater financing or product resources could
enter the market.
4. Continued price pressure due to competition or the weakening market reducing contribution
margins.

COMPANY NAME 2012
5.5 Milestones
In order to achieve the growth and marketing goals that have been outlined in this business
plan, the Company has the following deadlines to meet and ideas to implement. Some of these
are outlined below:
• Obtain Grant Funding to expand, grow and improve the business.
• Secure additional space to facilitate our new products.
• Construction/Leasehold Improvements in the Company’s location
• Purchase computers, office equipment, office furniture and fixtures
• Hire employees, the Company will look to hire minorities, veterans, disabled persons and
the unemployed
• Update our website and social media
• Launch an advertising campaign
• Working Capital to support operation until cash flow profitability
Table: Milestones
Milestones
Milestone Start Date End Date Budget Manager Department
Building Lease Deposits 1/1/2011 1/7/2011 $6,000 Owner Operations
Leasehold Improvements 1/1/2011 2/5/2011 $20,000 Owner Operations
Purchase Equipment 1/1/2011 2/5/2011 $10,000 Owner Department
Hire Employees 1/1/2011 12/31/2011 $75,000 Owner Department
Launch Advertising Campaign 1/1/2011 12/31/2011 $20,000 Owner Department
Website & Website Marketing 1/1/2011 3/31/2011 $10,000 Owner Department
Working Capital 1/1/2011 12/31/2011 $209,000 Owner Department
Totals $350,000
6.0 Management Summary
INSERT NAME is the acting manager of the daily business operations. She has no assistant
manager; however she does have someone she leaves in total control when unavailable. INSERT
NAME has a long history of management in the health and wellness industry.
6.1 Personnel Plan
Currently 15 people who work at COMPANY NAME as 1099 employees. These 1099 employees
work part-time as instructors for certain classes or trainers. The goal is to have full-time
employees who can help make the operation of the business run smoothly. With the additional
grant funds Body of Stone would like to offer medical and dental benefits to those whom are full-
time employees. COMPANY NAME would like to create an Obesity Program Coordinator position,
CFO Position, Wellness Program Director, Kids Fit Program Director, Group Fitness Coordinator.

COMPANY NAME 2012
Table: Profit and Loss
Pro Forma Profit and Loss
2011 2012 2013
Sales $258,584 $296,000 $323,000
Direct Cost of Sales $0 $0 $0
Other Costs of Sales $0 $0 $0
Total Cost of Sales $0 $0 $0
Gross Margin $258,584 $296,000 $323,000
Gross Margin % 100.00% 100.00% 100.00%
Expenses
Payroll $63,600 $79,000 $79,000
Marketing/Promotion $18,000 $15,000 $10,000
Depreciation $14,400 $14,400 $14,400
Rent $21,480 $50,000 $50,000
Utilities $8,160 $8,500 $8,500
Insurance $522 $522 $522
Payroll Taxes $9,540 $11,850 $11,850
1099 Employees $57,192 $75,000 $75,000
Entertainment $8,400 $10,000 $10,000
Other $24,840 $25,000 $27,000
Total Operating Expenses $226,134 $289,272 $286,272
Profit Before Interest and Taxes $32,450 $6,728 $36,728
EBITDA $46,850 $21,128 $51,128
Interest Expense $11,700 $11,700 $11,700
Taxes Incurred $3,112 $0 $3,754
Net Profit $17,638 ($4,972) $21,274
Net Profit/Sales 6.82% -1.68% 6.59%

COMPANY NAME 2012
7.4 Projected Cash Flow
The following table and chart highlight the projected cash flow for three years. COMPANY NAME
has applied for a grant of $350,000. The Company forecast that it'll receive $350,000 in the
month of January 2011.
The cash flow in 2011 shows a repayment of some liabilities as well as the purchases of
additional equipment. The following table displays the Company's cash flow, and the chart
illustrates monthly cash flow in the first year. Monthly cash flow projections are also included in
the appendix.
Table: Cash Flow
Pro Forma Cash Flow
2011 2012 2013
Cash Received
Cash from Operations
Cash Sales $258,584 $296,000 $323,000
Subtotal Cash from Operations $258,584 $296,000 $323,000
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
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 $350,000 $0 $0
Subtotal Cash Received $608,584 $296,000 $323,000
Expenditures 2011 2012 2013
Expenditures from Operations
Cash Spending $63,600 $79,000 $79,000
Bill Payments $149,287 $204,170 $208,264
Subtotal Spent on Operations $212,887 $283,170 $287,264
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $25,000 $0 $0
Purchase Long-term Assets $75,000 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $312,887 $283,170 $287,264
Net Cash Flow $295,697 $12,830 $35,736
Cash Balance $315,697 $328,526 $364,262

COMPANY NAME 2012
Main Ratios
Current 25.67 21.31 23.32 1.60
Quick 25.67 21.31 23.32 1.45
Total Debt to Total Assets 30.94% 31.86% 30.34% 61.03%
Pre-tax Return on Net Worth 7.11% -1.73% 8.13% 42.03%
Pre-tax Return on Assets 4.91% -1.18% 5.66% 16.38%
Additional Ratios 2011 2012 2013
Net Profit Margin 6.82% -1.68% 6.59% n.a
Return on Equity 6.05% -1.73% 6.91% n.a
Activity Ratios
Accounts Payable Turnover 11.93 12.17 12.17 n.a
Payment Days 27 27 30 n.a
Total Asset Turnover 0.61 0.70 0.73 n.a
Debt Ratios
Debt to Net Worth 0.45 0.47 0.44 n.a
Current Liab. to Liab. 0.10 0.13 0.13 n.a
Liquidity Ratios
Net Working Capital $337,037 $346,466 $382,139 n.a
Interest Coverage 2.77 0.58 3.14 n.a
Additional Ratios
Assets to Sales 1.63 1.42 1.37 n.a
Current Debt/Total Assets 3% 4% 4% n.a
Acid Test 25.67 21.31 23.32 n.a
Sales/Net Worth 0.89 1.03 1.05 n.a
Dividend Payout 0.00 0.00 0.00 n.a

Appendix
Page 3
Table: Profit and Loss
Pro Forma Profit and
Loss
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Sales $18,050 $18,616 $19,201 $19,806 $20,432 $21,079 $21,749 $22,443 $23,161 $23,904 $24,673 $25,470
Direct Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Other Costs of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Cost of Sales $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Gross Margin $18,050 $18,616 $19,201 $19,806 $20,432 $21,079 $21,749 $22,443 $23,161 $23,904 $24,673 $25,470
Gross Margin % 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Expenses
Payroll $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300
Marketing/Promotion $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500 $1,500
Depreciation $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200 $1,200
Rent $1,790 $1,790 $1,790 $1,790 $1,790 $1,790 $1,790 $1,790 $1,790 $1,790 $1,790 $1,790
Utilities $680 $680 $680 $680 $680 $680 $680 $680 $680 $680 $680 $680
Insurance $522 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Payroll Taxes 15% $795 $795 $795 $795 $795 $795 $795 $795 $795 $795 $795 $795
1099 Employees 15% $4,766 $4,766 $4,766 $4,766 $4,766 $4,766 $4,766 $4,766 $4,766 $4,766 $4,766 $4,766
Entertainment 15% $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700 $700
Other $2,070 $2,070 $2,070 $2,070 $2,070 $2,070 $2,070 $2,070 $2,070 $2,070 $2,070 $2,070
Total Operating
Expenses
$19,323 $18,801 $18,801 $18,801 $18,801 $18,801 $18,801 $18,801 $18,801 $18,801 $18,801 $18,801
Profit Before Interest
and Taxes
($1,273) ($185) $400 $1,005 $1,631 $2,278 $2,948 $3,642 $4,360 $5,103 $5,872 $6,669
EBITDA ($73) $1,015 $1,600 $2,205 $2,831 $3,478 $4,148 $4,842 $5,560 $6,303 $7,072 $7,869
Interest Expense $975 $975 $975 $975 $975 $975 $975 $975 $975 $975 $975 $975
Taxes Incurred ($337) ($174) ($86) $5 $98 $195 $296 $400 $508 $619 $735 $854
Net Profit ($1,911) ($986) ($489) $26 $558 $1,108 $1,677 $2,267 $2,877 $3,509 $4,162 $4,840
Net Profit/Sales -10.59% -5.30% -2.55% 0.13% 2.73% 5.25% 7.71% 10.10% 12.42% 14.68% 16.87% 19.00%

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