How Much Money Does It Take To Open A Gymnastics Gym
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Gymnastics Jump-Offset
Financial Plan
The post-obit sections will outline the Financial Programme of Gymnastics Bound-Start.
vii.1 Kickoff-up Funding
Total start-up expenses and assets required volition exist funded every bit shown in the Start-up Funding table, below. Wanda Bounce volition invest $25,000. Bea Flip will invest $25,000. In addition, gym volition secure a $36,600 long-term loan (7 years at 10% interest).
| Start-up Funding | |
| Outset-up Expenses to Fund | $36,600 |
| Start-up Assets to Fund | $fifty,000 |
| Total Funding Required | $86,600 |
| Avails | |
| Non-cash Assets from Get-go-up | $forty,000 |
| Cash Requirements from Outset-up | $10,000 |
| Additional Cash Raised | $0 |
| Cash Residue on Starting Date | $10,000 |
| Total Assets | $50,000 |
| Liabilities and Capital letter | |
| Liabilities | |
| Current Borrowing | $0 |
| Long-term Liabilities | $36,600 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (involvement-free) | $0 |
| Full Liabilities | $36,600 |
| Capital | |
| Planned Investment | |
| Possessor 1 | $25,000 |
| Owner two | $25,000 |
| Boosted Investment Requirement | $0 |
| Total Planned Investment | $l,000 |
| Loss at Start-upwardly (Start-upward Expenses) | ($36,600) |
| Total Majuscule | $13,400 |
| Total Capital and Liabilities | $50,000 |
| Total Funding | $86,600 |
7.ii Of import Assumptions
- We are assuming steady growth from the iii counties nosotros service.
- We are assuming adequate funding to sustain united states of america during start-upwards.
- Nosotros are assuming that the popularity of gymnastics does non subtract.
- We are assuming that there volition be no other individual gyms starting up in close proximity to u.s..
7.3 Suspension-even Analysis
Table seven.three summarizes the pause-even analysis. The Suspension-even Analysis is based on the average of the first-twelvemonth figures for total sales, and by operating expenses. Our variable costs are relatively low and our primary operating costs are salaries for teachers.
| Interruption-even Assay | |
| Monthly Revenue Pause-even | $11,973 |
| Assumptions: | |
| Average Percent Variable Cost | 31% |
| Estimated Monthly Fixed Price | $8,306 |
7.4 Projected Turn a profit and Loss
Every bit the Profit and Loss table shows, the company expects to go along its steady growth in profitability over the side by side three years of operations. Aside from payroll, Rent and Insurance are our largest expenses. The rent for the studio nosotros have chosen is reasonable for the square footage, which volition permit us to conduct multiple classes (or classes and altogether parties) at the same fourth dimension. Insurance demands when dealing with young children and physical action are high, just the owners' prior experience will go along these costs affordable.
Payroll taxes are based on wages and salaries for all employees, including hourly teachers (shown here equally direct cost of sales).
| Pro Forma Turn a profit and Loss | |||
| Year ane | Year 2 | Year 3 | |
| Sales | $211,603 | $300,344 | $389,080 |
| Direct Cost of Sales | $64,809 | $92,755 | $133,244 |
| Other Costs of Sales | $three,360 | $3,840 | $four,320 |
| Total Toll of Sales | $68,169 | $96,595 | $137,564 |
| Gross Margin | $143,434 | $203,749 | $251,516 |
| Gross Margin % | 67.78% | 67.84% | 64.64% |
| Expenses | |||
| Payroll | $41,280 | $68,000 | $81,120 |
| Marketing/Promotion | $v,000 | $5,000 | $v,000 |
| Depreciation | $4,000 | $iv,000 | $4,000 |
| Rent | $24,000 | $24,000 | $24,000 |
| Utilities | $3,600 | $3,700 | $3,800 |
| Insurance | $19,992 | $21,992 | $22,992 |
| Payroll Taxes | $0 | $0 | $0 |
| Other | $ane,800 | $2,100 | $2,500 |
| Total Operating Expenses | $99,672 | $128,792 | $143,412 |
| Profit Before Interest and Taxes | $43,762 | $74,957 | $108,104 |
| EBITDA | $47,762 | $78,957 | $112,104 |
| Involvement Expense | $three,377 | $2,876 | $ii,353 |
| Taxes Incurred | $12,116 | $21,624 | $31,725 |
| Cyberspace Profit | $28,270 | $50,457 | $74,026 |
| Cyberspace Profit/Sales | 13.36% | 16.80% | 19.03% |
vii.5 Projected Cash Period
The cash flow projection shows that provisions for ongoing expenses are adequate to meet the needs of the visitor as the business generates sufficient cash flow to support operations. The table shows the planned repayment of our long-term loan over seven years.
| Pro Forma Cash Flow | |||
| Twelvemonth i | Year 2 | Year iii | |
| Greenbacks Received | |||
| Greenbacks from Operations | |||
| Cash Sales | $158,702 | $225,258 | $291,810 |
| Cash from Receivables | $42,899 | $70,891 | $93,076 |
| Subtotal Cash from Operations | $201,601 | $296,149 | $384,886 |
| Additional Cash Received | |||
| Sales Taxation, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (involvement-gratis) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Electric current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| Subtotal Cash Received | $201,601 | $296,149 | $384,886 |
| Expenditures | Year ane | Year ii | Twelvemonth 3 |
| Expenditures from Operations | |||
| Cash Spending | $41,280 | $68,000 | $81,120 |
| Bill Payments | $125,633 | $175,686 | $225,656 |
| Subtotal Spent on Operations | $166,913 | $243,686 | $306,776 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Master Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $5,230 | $5,230 | $5,230 |
| Purchase Other Current Assets | $two,000 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| Subtotal Cash Spent | $174,143 | $248,916 | $312,006 |
| Cyberspace Cash Flow | $27,458 | $47,233 | $72,879 |
| Greenbacks Balance | $37,458 | $84,691 | $157,570 |
7.6 Projected Residual Sheet
The following table presents the Residual Sail for Gymnastics Jump-Start. Our greenbacks, retained earnings, and net worth will increase steadily as nosotros establish a stable, returning client base.
| Pro Forma Balance Sheet | |||
| Year 1 | Year 2 | Yr 3 | |
| Assets | |||
| Current Assets | |||
| Cash | $37,458 | $84,691 | $157,570 |
| Accounts Receivable | $10,002 | $xiv,197 | $18,391 |
| Other Current Assets | $ii,000 | $2,000 | $ii,000 |
| Total Current Avails | $49,460 | $100,888 | $177,962 |
| Long-term Assets | |||
| Long-term Avails | $40,000 | $40,000 | $40,000 |
| Accumulated Depreciation | $4,000 | $8,000 | $12,000 |
| Total Long-term Assets | $36,000 | $32,000 | $28,000 |
| Total Assets | $85,460 | $132,888 | $205,962 |
| Liabilities and Upper-case letter | Year 1 | Year 2 | Yr 3 |
| Electric current Liabilities | |||
| Accounts Payable | $12,420 | $fourteen,621 | $eighteen,899 |
| Current Borrowing | $0 | $0 | $0 |
| Other Electric current Liabilities | $0 | $0 | $0 |
| Subtotal Current Liabilities | $12,420 | $fourteen,621 | $xviii,899 |
| Long-term Liabilities | $31,370 | $26,140 | $xx,910 |
| Total Liabilities | $43,791 | $40,761 | $39,809 |
| Paid-in Capital | $l,000 | $50,000 | $50,000 |
| Retained Earnings | ($36,600) | ($8,330) | $42,127 |
| Earnings | $28,270 | $50,457 | $74,026 |
| Total Capital | $41,670 | $92,127 | $166,153 |
| Total Liabilities and Uppercase | $85,460 | $132,888 | $205,962 |
| Cyberspace Worth | $41,670 | $92,127 | $166,153 |
7.vii Business Ratios
The following table outlines some of the more important ratios from the Gymnastic instruction industry. The concluding column, Industry Profile, details specific ratios based on the industry every bit information technology is classified by the Standard Manufacture Nomenclature (SIC) code, 7999.1109.
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | Industry Profile | |
| Sales Growth | 0.00% | 41.94% | 29.54% | 4.94% |
| Percent of Total Avails | ||||
| Accounts Receivable | eleven.seventy% | 10.68% | 8.93% | 5.thirteen% |
| Other Current Assets | 2.34% | 1.51% | 0.97% | 36.35% |
| Total Electric current Assets | 57.88% | 75.92% | 86.41% | 43.63% |
| Long-term Assets | 42.12% | 24.08% | xiii.59% | 56.37% |
| Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
| Electric current Liabilities | fourteen.53% | 11.00% | 9.18% | 21.68% |
| Long-term Liabilities | 36.71% | 19.67% | x.15% | 31.17% |
| Total Liabilities | 51.24% | 30.67% | 19.33% | 52.85% |
| Cyberspace Worth | 48.76% | 69.33% | eighty.67% | 47.15% |
| Percentage of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 67.78% | 67.84% | 64.64% | 100.00% |
| Selling, General & Authoritative Expenses | 54.42% | 51.04% | 45.62% | 76.74% |
| Advert Expenses | 0.00% | 0.00% | 0.00% | 2.84% |
| Turn a profit Before Interest and Taxes | xx.68% | 24.96% | 27.78% | ii.11% |
| Main Ratios | ||||
| Current | 3.98 | vi.90 | nine.42 | 1.05 |
| Quick | 3.98 | six.ninety | nine.42 | 0.69 |
| Total Debt to Total Avails | 51.24% | 30.67% | 19.33% | 62.49% |
| Pre-tax Return on Cyberspace Worth | 96.92% | 78.24% | 63.65% | ii.98% |
| Pre-revenue enhancement Return on Assets | 47.26% | 54.24% | 51.35% | 7.95% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 13.36% | 16.80% | 19.03% | north.a |
| Return on Equity | 67.84% | 54.77% | 44.55% | n.a |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 5.29 | 5.29 | 5.29 | n.a |
| Collection Days | 57 | 59 | 61 | due north.a |
| Accounts Payable Turnover | xi.12 | 12.17 | 12.17 | northward.a |
| Payment Days | 27 | 28 | 27 | n.a |
| Total Asset Turnover | 2.48 | ii.26 | i.89 | n.a |
| Debt Ratios | ||||
| Debt to Net Worth | 1.05 | 0.44 | 0.24 | n.a |
| Current Liab. to Liab. | 0.28 | 0.36 | 0.47 | northward.a |
| Liquidity Ratios | ||||
| Net Working Capital | $37,040 | $86,267 | $159,063 | northward.a |
| Interest Coverage | 12.96 | 26.07 | 45.95 | n.a |
| Boosted Ratios | ||||
| Assets to Sales | 0.40 | 0.44 | 0.53 | n.a |
| Current Debt/Total Assets | fifteen% | eleven% | nine% | n.a |
| Acid Test | three.18 | 5.93 | viii.44 | due north.a |
| Sales/Internet Worth | five.08 | 3.26 | ii.34 | northward.a |
| Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Source: https://www.bplans.com/gymnastics-instruction-business-plan/financial-plan/
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