Elite

Monthly cost $ 1,252.32

Start-up Cost $ 48,777.00
Loan Repayment $ 2,047.00
Desired Profit $ 10,000.00
Total Revenue required (1st year) $ 62,076.32

Estimated charge on initial clients

Charge per Session (for Elite's initial clients) = Total Revenue Required / (Num

Total Revenue $ 67,130.00

Number of clients 26
Number of sessions per client 48
Charge per session $ 53.79
rent $ 3,353.00
cleaning cost $ 240.00
client program cards $ 86.40
water dispenser
security alarm $ 50.00
insurance $ 134.92
parking fees $ 520.00
toiltries $ 221.00

Start-up cost

Cost
Cardio Equipment
Treadmill $2,000
Recumbent Bike $700
Elliptical Trainer $900
Weight Training Equipment $21,600
Office Equipment/Computer $600
Renovations/Leasehold
$18,000
Improvements
Flooring $2,809
Signage $1,070
Mirrors $598
Training Tools (weight balls,
$ 500.00
jump
Loan repayment

Loan amount (principal) $24,000

Interest rate (per year) 4.30%
Loan term (in months) 12

Monthly interest rate 0.0035833333

Total Number of payments 12
Loan Payment $2,047

Charge per session

Total Revenue $ 67,130.00

Number of clients 26
Number of sessions per client 48
Charge per session $ 53.79
First year Revenue

Number of clients 26
Number of sessions 48
Price per session 54
Total Revenue from Initial Clients $ 67,392.00

Number of clients 23
Number of sessions 48
Price per session 54
Total Revenue from Second Package Clients: $ 59,616.00

Number of clients 16
Number of sessions 48
Price per session 54
Total Revenue from Third Package Clients $ 41,472.00

Total Projected Revenue for the first year $ 168,480.00

Total Operating Costs in a year

Rent $ 40,236.00
Cleaning cost $ 3,120.00
Client program cards $ 1,036.80
Water Dispenser $ 348.00
Security Alarm Fees $ 600.00
Insurance $ 1,619.00
Parking Fees for the Clients $ 6,240.00
Toiletries $ 2,652.00
Loan $ 24,888.00
Equipment $ 48,777.00
Total Operating Cost $ 129,516.80

Gross profit $ 38,963.20

Sales Tax (20%) (Paid in April) $ 33,696.00

Net Profit $ 5,267.20

Profit margin 3.126305793
Assumptions

Number of Initial Clients: 26

Number of Second Package Clients: 90% of 26 clients = 23
Number of Third Package Clients: 70% of 23 clients = 16