Ladies Only Fitness

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Physical Fitness Gym Business Plan

Financial Plan

The following is the financial plan for Ladies Only Fitness.

7.1 Break-even Analysis

The monthly break-even point is shown below.

Break-even Analysis
Monthly Revenue Break-even $20,465
Assumptions:
Average Percent Variable Cost 0%
Estimated Monthly Fixed Cost $20,465

7.2 Projected Profit and Loss

The following table and charts highlight the projected profit and loss for three years.

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $244,000 $300,000 $380,000
Direct Cost of Sales $0 $0 $0
Other Production Expenses $0 $0 $0
Total Cost of Sales $0 $0 $0
Gross Margin $244,000 $300,000 $380,000
Gross Margin % 100.00% 100.00% 100.00%
Expenses
Payroll $181,200 $199,200 $214,000
Sales and Marketing and Other Expenses $6,000 $8,000 $10,000
Depreciation $0 $0 $0
Leased Equipment $0 $0 $0
Utilities $4,800 $4,800 $4,800
Insurance $2,400 $2,400 $2,400
Rent $24,000 $24,000 $24,000
Payroll Taxes $27,180 $29,880 $32,100
Other $0 $0 $0
Total Operating Expenses $245,580 $268,280 $287,300
Profit Before Interest and Taxes ($1,580) $31,720 $92,700
EBITDA ($1,580) $31,720 $92,700
Interest Expense $5,578 $4,830 $4,050
Taxes Incurred $0 $8,067 $26,595
Net Profit ($7,158) $18,823 $62,055
Net Profit/Sales -2.93% 6.27% 16.33%

7.3 Projected Cash Flow

The following table and chart highlights the projected cash flow for three years.

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $244,000 $300,000 $380,000
Subtotal Cash from Operations $244,000 $300,000 $380,000
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 $0 $0 $0
Subtotal Cash Received $244,000 $300,000 $380,000
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $181,200 $199,200 $214,000
Bill Payments $64,133 $81,063 $102,139
Subtotal Spent on Operations $245,333 $280,263 $316,139
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 $7,800 $7,800 $7,800
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $253,133 $288,063 $323,939
Net Cash Flow ($9,133) $11,937 $56,061
Cash Balance $56,667 $68,603 $124,664

7.4 Projected Balance Sheet

The following table highlights the projected balance sheet for three years.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $56,667 $68,603 $124,664
Other Current Assets $0 $0 $0
Total Current Assets $56,667 $68,603 $124,664
Long-term Assets
Long-term Assets $0 $0 $0
Accumulated Depreciation $0 $0 $0
Total Long-term Assets $0 $0 $0
Total Assets $56,667 $68,603 $124,664
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $5,824 $6,738 $8,543
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $5,824 $6,738 $8,543
Long-term Liabilities $52,200 $44,400 $36,600
Total Liabilities $58,024 $51,138 $45,143
Paid-in Capital $100,000 $100,000 $100,000
Retained Earnings ($94,200) ($101,358) ($82,535)
Earnings ($7,158) $18,823 $62,055
Total Capital ($1,358) $17,466 $79,521
Total Liabilities and Capital $56,667 $68,603 $124,664
Net Worth ($1,357) $17,466 $79,521

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 7991, Physical Fitness Facilities, are shown for comparison.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 22.95% 26.67% 15.90%
Percent of Total Assets
Other Current Assets 0.00% 0.00% 0.00% 31.10%
Total Current Assets 100.00% 100.00% 100.00% 39.00%
Long-term Assets 0.00% 0.00% 0.00% 61.00%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 10.28% 9.82% 6.85% 34.80%
Long-term Liabilities 92.12% 64.72% 29.36% 27.60%
Total Liabilities 102.40% 74.54% 36.21% 62.40%
Net Worth -2.40% 25.46% 63.79% 37.60%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 100.00% 100.00% 100.00% 0.00%
Selling, General & Administrative Expenses 102.93% 93.73% 83.67% 73.20%
Advertising Expenses 2.46% 2.67% 2.63% 2.40%
Profit Before Interest and Taxes -0.65% 10.57% 24.39% 2.70%
Main Ratios
Current 9.73 10.18 14.59 1.10
Quick 9.73 10.18 14.59 0.73
Total Debt to Total Assets 102.40% 74.54% 36.21% 62.40%
Pre-tax Return on Net Worth 527.26% 153.96% 111.48% 3.00%
Pre-tax Return on Assets -12.63% 39.20% 71.11% 7.90%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin -2.93% 6.27% 16.33% n.a
Return on Equity 0.00% 107.77% 78.04% n.a
Activity Ratios
Accounts Payable Turnover 12.01 12.17 12.17 n.a
Payment Days 27 28 27 n.a
Total Asset Turnover 4.31 4.37 3.05 n.a
Debt Ratios
Debt to Net Worth 0.00 2.93 0.57 n.a
Current Liab. to Liab. 0.10 0.13 0.19 n.a
Liquidity Ratios
Net Working Capital $50,843 $61,866 $116,121 n.a
Interest Coverage -0.28 6.57 22.89 n.a
Additional Ratios
Assets to Sales 0.23 0.23 0.33 n.a
Current Debt/Total Assets 10% 10% 7% n.a
Acid Test 9.73 10.18 14.59 n.a
Sales/Net Worth 0.00 17.18 4.78 n.a
Dividend Payout 0.00 0.00 0.00 n.a