Are you writing a gym house business plan? If YES, here is a sample gym house financial projection, forecast, cost, budget, profit & loss statement for investors. This is the key areas where we will spend our start – up capital on;
Table of Content
Our Startup Budget and Expenditure
- The Total Fee for Registering the Business in Irving, Texas: $750.
- Legal expenses for obtaining licenses and permits: $1,500.
- Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of $10,000.
- Cost for hiring Consultant – $5,000.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- Cost of accounting software, CRM software and Payroll Software – $3,000
- Cost for leasing facility for the gym: $80,000.
- Cost for facility remodeling – $50,000.
- Other start-up expenses including stationery – $1000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for Start-up inventory – $15,000
- Storage hardware (bins, utensil rack, shelves, glasses et al) – $1,720
- Cost for acquiring gym equipment – $200,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The cost of Launching a Website: $600
- The cost for our grand opening party: $1,500
- Miscellaneous: $5,000
TOTAL EXPENSES: $753,370
We would need an estimate of $1.5million to successfully launch our gym and fitness club in Irwin, Texas. It is important to state that the testing and evaluating expenses would be high because of the large amount of equipment needed to start up a gym and also the sophistication of the technology used in gyms. Also, the supplies would cost a bit more because of the regular demand for it.
Sources of Income
Fit as Fiddle Gym and Fitness Club will generate income from the following service offerings;
- Personal Training
- Group Fitness Classes
- Yoga Classes
- Pilates (full body walkout)
- Spinning Classes
- Weight Management
- Kinesis Station
- Nutrition Counseling
- Childcare / Daycare
- Full Locker Room Services
- Physical Therapy
- Juice Bar
- Internet Café
- Sports shop (sale of sportswear, towel, shampoos et al)
- Comprehensive fitness assessment
- Full gym membership
It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field. It would be hard to create a sales forecast with a newly opened business like gym and fitness club. This is simply because the statistics that will be provided will be on a short term basis.
Experts said that usually a business should be in operation for at least one year before they can generate the statistics that will be need to help in accurate forecasting; statistics should be at least one year old in order to show the trends and pattern in consumer spending.
We expect to register a minimum of 1,000 active members within our fits year of operations and then in subsequent year we will grow our membership. Below are the sales projection for Fit as Fiddle Gym and Fitness Club, it is based on the location of our facility and the services and products that we will be offering to our clients (members);
- First Year-: $200,000
- Second Year-: $450,000
- Third Year-: $700,000
SOURCES OF INCOME FOR YEAR ONE
Personal training: per member will pay the sum of $200
- 500 members will pay the sum of $100,000
Group fitness class: per member will pay the sum of $160
- 300 members will pay the sum of $48,000
Yoga classes: per member will pay the sum of $155
- 200 members will pay the sum of $31,000
Pilate (full body work out): per member will pay the sum of $105
- 200 members will pay the sum of $21,000
TOTAL INCOME : $200,000
ON-GOING OPERATIONAL EXPENSES:
- Operational cost for second quarter of the year (salaries of employees, payments of bills et al) – $50,000
- Operational cost for third quarter of the year (salaries of employees, payments of bills et al) – $65,000
- Operational cost for last quarter of the year (salaries of employees, payments of bills et al) – $80,000
- Other miscellaneous expenses – $50,000
- Gym equipment repair and maintenance – $5,000
- Water for showers (payment of water bills) – $3,000
- Office supplies (printer, stationaries et al) – $10,000
- Bathroom supplies (toiletries, et al) – $2,000
- Janitorial services and supplies (cleaning agent and detergent/chemicals) – $2,000
- Credit card processing fees – $1,000
- Towels and laundry – $3,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major competitor offering same additional services as we do within 4.5 miles radius from our gym facility.