Professional Documents
Culture Documents
Fitness, LLC
Feasibility Plan
Robert P. Ellentuck
COPYRIGHT 2011
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ROBERT P. ELLENTUCK
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TABLE OF CONTENTS
EXECUTIVE SUMMARY .......................................................................................................................................................................... 5
A.
B.
C.
D.
E.
B.
C.
COMPETITION ............................................................................................................................................................................10
B.
C.
D.
E.
PERSONNEL .................................................................................................................................................................................16
Management Team...........................................................................................................................................................................16
Staff...........................................................................................................................................................................................................16
Board of Advisors .............................................................................................................................................................................17
B.
OPERATIONS ...............................................................................................................................................................................17
C.
B.
B.
C.
D.
E.
REFERENCES ................................................................................................................................................................................................25
A.
B.
CONSULTED WEBSITES........................................................................................................................................................27
EXHIBITS .........................................................................................................................................................................................................28
A.
B.
C.
D.
E.
F.
G.
H.
I.
J.
K.
L.
M.
N.
O.
P.
4|Page
EXECUTIVE SUMMARY
A.
STATEMENT OF PURPOSE
iTrainer Fitness, LLC will produce custom exercise workouts for clients focusing on two
critical areas of physical fitness cardiovascular endurance and strength training. The
expertise of contracted personal trainers will be delivered to clients in two formats:
Digital Podcasts: Between in-person sessions with a personal trainer, clients will receive
fitness podcasts, with the voice of their trainer guiding them through a workout overlaid
on music of their preference. These podcasts will be tailored to individual goals activity,
duration, intensity and capabilities weight limits, flexibility, and endurance. The
number and variety of delivered podcasts will be tailored to customer specifications and
package.
Services will be offered in various packages where clients select the number and type of
workouts that fit their personal schedule and goals, with the added benefit of enjoying
greater cost-savings by purchasing larger packages. Other a la carte options will be
offered, including additional and/or activity-specific podcasts (spinning, interval
training, etc.). The iTrainer service will also feature personal portfolios available on the
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iTrainer website, where clients can download digital workouts, access material on
proper exercise techniques and check individual progress via uploaded personal
metrics.
C.
MARKET OVERVIEW
iTrainer Fitness has identified one of the fastest-growing counties in the nation
Loudoun County, VA as its initial target market, primarily due to favorable
demographics for both creating a market presence and fostering sustainable growth.
The following chart denotes basic characteristics of Loudoun for the year 2009.
Population
College Degree
57% of population
Median Income
$112,021
Professional Positions
56% of population
Median Age
34.2 years
The data above reveals a growing, young, professional population with the highest
level of median income in the state. iTrainer fitness seeks to attract clients that are
educated about the health benefits of regular exercise, with discretionary income, and
who can become clients for life from a young age.
D.
PRODUCT DIFFERENTIATION
Flexibility and convenience rest at the core of the iTrainer Fitness concept leveraging
technology to afford busy professionals access to certified exercise specialists. The
program offers the luxury of personal training at a fraction of the cost of other
programs, with the added flexibility of on-demand access to workouts via podcast.
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iTrainer Fitness develops customized workouts based on individual goals, unlike the
other generic technology-based solutions, such as home DVDs, game console systems,
and iTunes workout albums. With a pricing strategy virtually on par with these
lackluster solutions, but offering a service more commensurate with a one-on-one
personal training relationship, iTrainer Fitness clients will receive greater value from
their investment than by pursuing other available market options.
E.
VALUE PROPOSITION
MARKET DATA
A. TARGET MARKET DEMOGRAPHICS
For our initial launch of iTrainer Fitness, we have targeted Loudoun County, VA. We
based this decision on key demographics of this region: population growth, income,
age, gender, educational attainment, home ownership, employment, marital status and
mobility. Loudoun is one of the fastest-growing counties in the US with higher than
average income and a substantial demographic consisting of educated professionals
with families. County residents are knowledgeable and comfortable with technology
and seek healthy lifestyles.
According to the US Census Bureau, in 2008, Loudoun was ranked as the number one
county in median household income.
ranked well - with Fairfax (VA) ranked number two and Howard (MD) ranked number
three (see Exhibit 1 Median Household Income). As of 2009, there were 91,000 households
with an estimated total population of 301,171 (50% males; 50% females) in Loudoun.
Also in this same year, 57% of residents had a college degree or higher and the median
income was $112,021 with 93% coming from earnings.1 These factors contributed to the
rapid growth in home sales with 51% of the county population owning homes. The
Loudoun workforce also enjoys lower rate of unemployment than the national average,
1Accessed:
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with approximately 56% of residents holding professional positions. With a median age
of 34.2 years, the age distribution of the population ranges:
9|Page
many consumers to limit discretionary spending, where value and necessity occupy
increasing importance. The iTrainer Fitness concept purports to be recession proof
satisfying a customer need for health/fitness at a cost that cant be construed as
luxury. Greater detail on the four lifestyle trends can be found below:
HEALTH/FITNESS CONSCIOUS
TECHNOLOGY
ECONOMIC TURMOIL
C. COMPETITION
While iTrainer Fitness faces a variety of competition in the marketplace (see Exhibit 2 Competitive Analysis) we consider the two primary competitors to be high-end personal
trainers and gym-based personal trainers. iTrainer Fitness offers the personal attention
and goal attainment of their high-end competitors, with greater flexibility and at a more
affordable price.
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High-end trainers provide clients with the ability to have personalized, one-on-one
training: at home, at a private studio, or another location.9 Loudoun County currently
sports a number of these competitive alternatives such as Storm Fitness but these
providers have suffered in the recent economic turmoil. Clients who select high-end
trainers tend to be professionals earning greater than $100,000, who are drawn to the
superior instruction, personalization, flexibility and convenience. One session of basic
training with a high-end trainer costs approximately $100, with a package of 24 sessions
costing $75 per session. Additional services, such as classes, nutritional counseling or
rehabilitation work, cost at least 25% more.10
By contrast, gym-based trainers typically work exclusively in one health club chain.11
Gym-based trainers are usually not required to possess specific education or
professional certification. In 2008, there were 261,000 personal trainers nationwide, and
there are anticipated to be 337,900 by 2018.12 While these are nationwide figures, and
many trainers are part-time employees, the 29% growth rate indicates a burgeoning
field. There are a wide variety of gym-based trainers in several health clubs throughout
the county, including ultra-luxury, women-only, and traditional gyms; communityoriented facilities; and specialized facilities (such as Pilates and kick boxing). These
trainers also offer a variety of services to clients including strength training, weight loss
advice and cardio-vascular programs. Gym-based trainers are far less costly than highend trainers, costing as low as $50 for each session when purchased in sets of five.13
10
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MARKET PLAN
A.
iTrainer Fitness offers a customized, flexible and affordable service designed to appeal
to the previously defined target market. iTrainer Fitness will establish itself as a market
leader with a unique solution and as an innovator focused on quality at an affordable
price. The service offers highly qualified personal trainers, who will tailor programs for
clients that are delivered through technology (digital podcasts) and professionals (faceto-face sessions). An initial session with the personal trainer will establish rapport,
identify client goals and complete an overall body assessment. The information gained
during the consultation will be used to develop a custom workout plan for the client.
Clients will select from four-service level packages: platinum, gold, silver and bronze; a
choice of a la carte options will also be offered.
B.
COMPETITIVE ADVANTAGE
iTrainer Fitness will differentiate itself from the competition by addressing a gap that
exists in the fitness marketplace today - the flexibility and personalization of a personal
trainer at a price more commensurate with generic, technology based solutions.
For
instance, our top-level platinum service provides 10 workouts for the low price of $169
per month whereas the same 10 sessions from a high-end personal trainer would cost
over $750 per month. The iTrainer Fitness solution further differentiates the product
from other competitors by incorporating on-demand technology capabilities for flexible
workout scheduling.
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C.
PROMOTIONAL STRATEGY
iTrainer Fitness has developed a promotional strategy to attract initial customers, retain
clients and expand the target market.
Flexibility: Let iTrainer professionals show you that exercise can be a part of even the most hectic
lifestyle.
Affordability: With iTrainer Fitness, everyone can experience the luxury of a personal trainer
several times a week at a fraction of the cost.
Convenience: iTrainer Fitness workouts are ready whenever you are before morning coffee,
during lunch or after the kids are in bed.
Personal Health: Everyone needs help in achieving goals. Let iTrainer Fitness help you realize
your fitness aspirations and develop a healthier lifestyle.
The iTrainer Fitness promotional strategy will operate in concert with the strategic plan:
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The sales strategy will be led by the entire venture management team at start-up, with
resources allocated to each area of the three-pronged marketing approach.
Other
PRICING STRATEGY
Our pricing strategy outlined in the chart below is segmented into four tiers to offer
clients greater cost-savings and adheres to our value proposition of flexibility and
affordability. It will also ensure that we are able to cover our costs and generate a
margin of profit.
Service Level
Pricing
Workout Services
Price/Quality
Platinum
$169/month
4 Strength/6 Cardio
Superb-Value Strategy
Gold
$129/month
2 Strength/3 Cardio
Good-Value Strategy
Silver
$109/month
2 Strength/2 Cardio
Good-Value Strategy
Bronze*
$89/month
1 Strength/2 Cardio
Cost-Value Strategy
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E.
GROWTH STRATEGY
Hire Additional Staff: Current profitable ratio of clients to personal trainer is 120:1.
When client demand exceeds this ratio, additional trainers will be necessary.
Smartphone Application: Clients can check fitness progress, download music and
reference exercise instructions.
Operational Managers: Skilled managerial staff will handle logistics and daily operations
so owners can pursue additional growth opportunities or other business ventures.
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IMPLEMENTATION PLAN
A.
PERSONNEL
MANAGEMENT TEAM
iTrainer Fitness will be managed through start-up and during the initial years by the
four owners, who possess varied levels of experience in a number of areas. While
owners may eventually cede operational control to full-time managers, they understand
the value of hands on interaction with the new venture, that strategic goals are
pursued. Competency areas for each owner include:
STAFF
iTrainer Fitness will employ personal trainers and technical support staff as
independent contractors, rather than as employees, to minimize payroll costs and
company liability. Feasibility calculations have shown the maximum client-trainer ratio
to be 120:1, assuming one-hour personal training sessions per month, with each trainer
working 8 hours a day (6 hours training and 2 hours creating podcasts) for 5 days a
week. Accordingly, iTrainer Fitness intends to employ only enough trainers to
adequately cover client needs and assumes the following hiring strategy based on
growth projections:
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iTrainer Fitness will also require technical support staff to assist with generating
podcasts, to troubleshoot technical difficulties, maintain the website, etc. Depending on
client demand, iTrainer Fitness will pursue a strategy that will eventually reduce the
amount of time personal trainers devote to generating podcasts and shift those
functions to technical support staff. Since personal trainers are skilled labor, their time
spent on one-on-one consultations instead of podcast production will produce better
returns on investment.
BOARD OF ADVISORS
iTrainer Fitness will have a five-person board of advisors to provide consultation to the
management team. Specific individuals appointed to the Board include:
B.
Robert Watkins, an attorney practicing corporate law in Washington, DC; Virginia; and
Maryland, with a strong interest in technology related startups. He is a long time advisor to
owner Robert Ellentuck.
Ronald Walker, Director of Business Development for Golds Gym, who has agreed to serve as a
consultant.
Jon Danforth, a small business owner with over 20 years experience and the brother-in-law of
owner Noemi C. Arthur.
Julie Jones, a Human Resources professional for over 15 years, with specific expertise in payroll
issues, staff development, and responsibly employing social media in the workplace.
Erik Kloster, a Certified Public Accountant specializing in small, medium, and large
businesses, including technology startups, in Northern Virginia.
OPERATIONS
All iTrainer Fitness trainer contractors will be provided gym memberships to client
clubs as well as the technical resources to produce podcasts, including laptops,
software, etc. As previously mentioned, trainers will be scheduled for 6 hours a day in
the gyms or homes of clients, conducting initial consultations or monthly progress
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sessions. The remainder of their 8-hour day will be devoted to generating podcasts for
clients. Technical support staff will provide assistance with mixing music, uploading
workouts/progress results to the iTrainer website and troubleshooting difficulties.
Clients will use the website to purchase packages (ecommerce), reference information
(educational), download their customized workouts (distribution) and check fitness
results (metrics).
C.
LEGAL ISSUES
Gyms Prohibiting Outside Trainers: These facilities mostly include national chains, which
will be avoided until suitable accommodation can be made to ensure iTrainer consultations in
these facilities.
Music Copyright: To avoid liability for unlawful distribution of copyrighted materials, all
clients will provide their own music for podcast workouts.
Injury Liability: All clients will sign waivers exempting iTrainer from liability for injuries
sustained during workoutseither with trainers or alone with podcasts.
Licenses/Fees: The company will require a Loudon County Business License, a Virginia
State Sales Tax Permit, a Loudon County Business Professional Occupational License and a
Fictitious Name Certificate.
SWOT ANALYSIS
A.
iTrainer Fitness chief strength lies in their unique mission to combine personal
training with customized on-demand workouts. The business model has low start-up
and overhead costs, with easily scalable growth options.
iTrainer Fitness has some weaknesses; most notable is the plethora of fitness options in
the marketplace confronting the average consumer. Additionally, the iTrainer concept
is novel and may invite competitors that could mimic the programs unique service.
At the same time, the company has many opportunities for success.
The iTrainer
proposition offer value and a unique service, to a niche audience. Demographics and
lifestyle for the target market support significant growth predictions. Conversely, there
are some threats to commercial viability notably, the lingering recession, which
constricts discretionary spending. Greater detail can be found in the table below.
B.
SWOT ANALYSIS
STRENGTHS
Combines personal training with customized podcasts
WEAKNESSES
OPPORTUNTIES
THREATS
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FINANCIAL PLAN
A.
START-UP COSTS
SOURCES OF FUNDING
iTrainer Fitness, LLC will require approximately $300,000 in start-up capital, of which
$191,600 is for direct startup costs and $108,400 is to provide a cushion until the cash
flow becomes positive and for any unexpected contingencies. Initial capital will be
raised from personal funds provided by the principals. iTrainer Fitness will consider
whether to pursue future through county and state sources, though the owners equity
contribution is used as the basis for this feasibility plan.14 The table below provides a
snapshot of initial funding sources:
SOURCE
Equal investment from each of the four
owners: Arthur, Ellentuck, Hackett and
Zabala
TYPE OF FUNDING
AMOUNT
Personal Investment
300,000
300,000
TOTAL:
APPLICATIONS OF FUNDING
A brief summary of funding is provided below. (For greater detail, see Exhibit 6 - Startup
Funding and Expenditures)
Security Deposits: The security deposit for telephone and high speed Internet was provided
by the companys representative at Verizon. The security deposit for VOIP was provided by
the companys representative at ITP/aptella.
Startup Expenses: These figures include estimated costs for basic legal, accounting, and
consulting services that the new company will require. Insurance premiums of $5,000
during pre-opening reflect a concern about potential liability issues involved in personal
training. After opening, insurance needs and premiums will increase as reflected in the
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Income Statement. The figures included are based on quotes provided by our insurance
broker, Josh Hykes Insurance Agency.15
o Salaries (Startup): During the six-month period prior to opening, the four owners will
devote 100% of their time to the company and receive no salary (in order to conserve
resources). Trainers (1099) and outsourced technical support staff are not salaried
employees, and compensation during the startup period (where applicable) is listed
elsewhere. (For greater detail, see Exhibit 13 - Owners Compensation).
o Pre-opening Advertising: Also included is pre-opening advertising which is estimated
at $100,000. Advertising will be a fundamental part of developing the brand and creating
demand prior to opening. We will continue to spend heavily on advertising after opening
to fuel growth. Advertising estimates are provided by the companys PR specialist, MGH
Public Relations.16 The creation of an interactive website will cost $5,500 and will allow
orders to be placed and customers to contact customer service via online chat or
telephone. Estimated figures provided by Z-IndexMedia.Com.17
o Capital Expenditures The Capital Expenditure list includes items that will be used
by the company executives, support staff, and personal trainers to run the company,
serve the needs of the support staff, and provide the iTrainer service to the clients. As the
company will function without a central office, the list consists of technology
requirements and associated equipment and furniture. The estimate of capital equipment
necessary was determined by research, discussions with area business owners, and our
service vendors. The costs are broken out in the exhibits, with an explanation below.
o Computer Equipment: Includes 1 server and monitor for the VOIP system
provided by ITP/aptella using a PowerSpec 260 model server running Windows
Software and ITP/aptella proprietary VOIP software and an EdgeMarc QoS router
at $4,000; 1 Dell Desktop Computer at $2,000; 4 Dell Laptop Computers at $1,000
each; and 3 Logitech webcams at $250 each.
o Equipment/Machinery: Includes 4 HP color HP e-print Color LaserJet
CM2320fxi MFP printers at $750 each and 4 ITP/aptella Polycom SoundPoint IP
550 HD Voice Phone VOIP terminals at $250 each.
o Furniture & Fixtures: Includes $1,250 estimate for two Anthro brand racks to hold
the server and the desktop computer.
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B.
BALANCE SHEET
INCOME PROJECTIONS
NOTES OF EXPLANATION
SALES PROJECTIONS
There are 340,000 potential customers in Loudon County, with 56% (190,400) falling in
our target market of busy professionals. Calculated revenue based on estimated
packages sold is based on Year 1 projected absorption of just over .5% of potential
consumers purchasing iTrainer packages. A breakdown has been calculated by
package/product type, number of packages sold, price per package and projected
revenue. The below figures represent the full absorption for Year 1 of 1,000 units.
Consumers outside the target market have been excluded from these calculations:
PACKAGE/PRODUCT
SALES PER
MONTH
PRICE
BRONZE
100
SILVER
200
GOLD
500
PLATINUM
PER MONTH
REVENUE
89
100 x 89
8,900
109
200 x 109
21,000
129
500 x 129
64,500
200
169
200 x 169
33,800
INTERVAL
1,700
10
1,000 x 10
17,000
SPINNING
1,700
15
1,700 x 15
25,500
TRAINING
1,850
50
1,850 x 50
92,500
264,000
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Sales estimates calculated for the year 1 income statement are more conservative than
those used in the above chart. Years 1, 2, 3, 4 and 5 sales are as follows:
Q 1 (25%)
Q 2 (50%)
Q 3 (75%)
Q 4 (100%)
AVG. MONTHLY
REVENUE
YEAR 1
66,000
132,000
198,000
264,000
165,000
YEAR 2
351,438
702,875
1,054,313
1,405,750
878,000
YEAR 3
750,038
$ 1,500,075
2,250,113
3,000,150
1,875,093
YEAR 4
1,603,833
$ 3,207,665
4,811,498
6,415,330
4,009,581
YEAR 5
2,576,949
$ 5,153,897
7,730,846
$ 10,307,795
6,442,372
The following chart shows estimated absorption and was used in calculating sales for
the service in the sales projections for years 1, 2, 3, 4 and 5:
PERIOD
PERIOD
EST.
SALES
25%
PERIOD
EST.
SALES
50%
25%
25%
PERIOD
EST.
SALES
75%
10
EST.
SALES
100%
50%
75%
11
100%
50%
75%
12
100%
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REFERENCES
A.
ANNOTATED BIBLIOGRAPHY
United States Census Bureau Fact Finder. (2005-2009) Data Set: American Community Survey 5-Year
Estimates. Accessed: 14 February 2011.
http://factfinder.census.gov/servlet/NPTable?_bm=y&-geo_id=05000US51107&qr_name=ACS_2009_5YR_G00_NP01&-ds_name=&-redoLog=false
This site was referenced to research the demographics of our Target Market. While the American Community
Survey (ACS) produces population, demographic and housing unit estimates and it is the Census Bureau's
Population Estimates Program that produces and disseminates the official estimates.
Loudoun County Department of Economic Development. Accessed: 15 February, 2011.
http://biz.loudoun.gov/Home/FactsandFigures/Demographics/tabid/79/Default.aspx
This site was referenced to research the demographics for Loudoun County that are provided by the county. The
information contained on this site is to assist people who are trying to establish businesses within the county.
US Department of Labor. Accessed: 15 February 2011.
http://www.bls.gov/ro3/eciwb.htm.
This site provides measures labor market activity, working conditions and price changes in the economy.
Konrad, Walecia. (2010) Burning Calories, but Not a Hole in Your Wallet. New York Times. 24
December 2010. Accessed: 13 February 2011.
http://www.nytimes.com/2010/12/25/health/25patient.html?scp=1&sq=burning%20calories&st=cse
This article was referenced to research the effects of economic turmoil on the fitness industry.
Saint Louis, Catherine. (2011) Full-Service Gyms Feel a Bit Flabby. New York Times. 26 January 2010.
Accessed: 13 February 2011.
http://www.nytimes.com/2011/01/27/fashion/27SKIN.html?_r=1&scp=1&sq=full%20service%20gyms
&st=cse
This article was referenced to research the effects of economic turmoil on the fitness industry.
Wang, Jennifer and Kara Ohngren. (2010) The Disrupters: Forces Driving Change in 2011.
Entrepreneur. 2 December 2010. Accessed 13 February 2011.
http://www.entrepreneur.com/article/217508
This article was referenced to research the potential market trends for 2011.
ACE Reveals Economic Growth and Renewed Interest in Personal Training Among the Most Popular
Fitness Trends in 2011. 27 October 2010. Accessed: 13 February 2011.
http://www.acefitness.org/blog/1036/acerevealseconomic/
This article was referenced to research technology, demographic and economic trends in the fitness industry.
6 Technology Trends for Trainers to Watch. American Council on Exercise. Accessed: 13 February 2011.
http://www.acefitness.org/article/2835/
This article was referenced to research technology trends within the fitness industry.
Laino, Charlene. (2004) Try a Kinder, Gentler Workout: Aging Baby Boomers Fuel Hottest Exercise
Trend. Accessed: 13 February 2011.
http://www.medicinenet.com/script/main/art.asp?articlekey=56451
This article was referenced to research baby-boomer trends.
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Crockett-Lohr, Ashley. (2010) Survey Predicts Top 20 Fitness Trends for 2011. American College of
Sports Medicine. 28 October 2010. Accessed: 13 February 2011.
http://www.acsm.org/AM/Template.cfm?Section=Home_Page&TEMPLATE=/CM/ContentDisplay.cf
m&CONTENTID=15182
This article was referenced to research fitness trends.
Anonymous. (n.d.). Storm Fitness Personal Training. In Storm Fitness. Accessed: February 12, 2011.
http://www.stormfitness.com/index.html.
Storm Fitness was chosen as an example of a high-end personal trainer serving Loudon county and surround areas,
with an emphasis on one on one luxury service in a variety of customized locations.
Anonymous. (n.d.). Health Club's In USA. In Health & Fitness Clubs, Gyms & Spa Centers. Accessed: 12
February 2011.
http://www.usahealthclubs.com/sb/health-clubs.
This information was included to demonstrate the variety of personal training that is available at Health Clubs
throughout the target market area.
Hatzius, J. (2011). U.S. Economics Analyst. In Goldman Sachs Global ECS Research. Accessed: 12
February 2011.
http://www2.goldmansachs.com/ideas/global-economic-outlook/2011-economicoutlook/index.html?cid=31250699.
This information was included to give an overview of the prospects for economic growth in the United States, and
specifically in the target market.
Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2010-11
Edition, Fitness Workers. Accessed: 13 February 2011.
http://www.bls.gov/oco/ocos296.htm
This information was included to give an overview of the numbers of individuals employed as personal trainers, as
well as the strong continued growth that is anticipated in the number of personal trainers.
Anonymous, (n.d.) Sequoia Health & Fitness, Inc. - Personal Training, Post Rehab Fitness, Healthy
Weight Loss. Accessed: 14 February 14 2011.
http://www.sequoiahealth.com/
This information was included to demonstrate the difference in cost between training at a high-end facility and one
of the many less exclusive options available.
Welcome to the Loudoun SBDC. (2010, January 1). Welcome to the Loudoun SBDC. Accessed: 15 February
2011.
http://www.loudounsbdc.org/index.cfm
This information was accessed to gain information about various small business development resources in Loudon
County.
Loudoun County . (2005, May 12). Loudoun County. Accessed: 15 February 2011.
http://loudoun.vhost.vipnet.org/business/financing.htm
This information was included to demonstrate the various county financing resources for small businesses in
Loudon County.
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B.
CONSULTED WEBSITES
27 | P a g e
EXHIBITS
A.
The 20 highest income counties by median household income (20062008), as compiled by the
American Community Survey of the United States Bureau of the Census.
Rank
County
Population
Education
1.
$110,643
277,433
58%
2.
$106,785
1,005,980
60%
3.
$101,710
272,412
60%
4.
$103,227
321,589
53%
5.
$100,947
129,000
52%
6.
$ 98,133
23,281
52%
7.
$ 97,565
486,459
52%
8.
$ 97,480
270,286
54%
9.
$ 96,390
204,889
51%
10.
$ 93,999
942,747
59%
11.
$ 93,579
1,352,817
45%
12.
$ 89,536
120,219
36%
13.
$ 89,049
88,126
30%
14.
$ 88,675
358,719
38%
15.
$ 88,580
99,195
40%
16.
$ 88,552
20,494
325%
17.
$ 88,316
165,336
53%
18.
$ 88,101
246,985
55%
19.
$ 87,287
1,734,756
46%
20.
$ 86,938
158,009
46%
28 | P a g e
B.
PROS
Gym in-house
trainer: offered
in addition to
monthly fee
Gym no
trainer:
Monthly club
membership at
gym or using
your
community
association
gym
Technology:
Video game
based
workouts
CONS
Expensive
Competing
schedules
$75-125/hr.
Lower cost
Social
Variety of
equipment
Unknown
quality of
trainer
No privacy
Scheduling
$50-75/hr.
Golds Gym
LA Fitness
Lifetime Fitness
Fitness First
Gym fee
only
Flexible
times
Self-paced
Need to be
self-motivated
No support to
vary workout
and educate
Need to be
knowledgeabl
e on fitness
No one to
check your
progress
Part of HOA
fees
Golds Gym
LA Fitness
Lifetime Fitness
Fitness First
Need to be
self-motivated
Limited
exercise
options
Lack of
feedback to
improve your
performance
Need to be
self-motivated
Not tailored
to individual
Apps-Nike Training
Club
Wii Fit/PS3/Xbox
Connect
$10-50
depending on
download
Selfdirected
workouts
Fun and
interactive
Recordings:
Music
downloads
COMPETITORS
Flexible
locations
Privacy
Flexibility
Specialized
EST COSTS
Wide
variety of
music
Selfdirected
Storm Fitness
www.stormfitness.com
$20-80/month
iTunes
Fitness Music CDs
29 | P a g e
C.
MEDIUM
MARKET
EST.
COST
FREQ.
BENEFITS
DRAWBACKS
Visibility
Inform
Inform
Persuade
Web
Social
Media
Newspapers
National
National
Local
$10,000
Start-up
$2,000
Start-up
$550/
Week
Weekly
Wide Market
Coverage
Company
focused
Democratization
of Media
Content
Management
Engaging
Privacy
Concerns
Offer promotions
Declining
Subscribers
Wide coverage
Non-Targeted
Audience
Daily
Weekly
Ads
Focus on article
placement
Inform
Magazines
Local
$400/
Week
Monthly
Local
Community
Coverage
Limited
Audience
Trial and error
Persuade
Guerilla
Marketing
Regional
$4,000/
Year
Daily/
Weekly
Targeted and
Cost Effective
Remind
Directories
National
$500/
Start-up
Ongoing
Standard
Business Practice
Little marketing
impact
Events
Local
$3000/
Month
Monthly
Targeted
Manage Costs
Trial and Error
Persuade
Measurement
can be
challenging
30 | P a g e
D.
Our strategy is a combination of leveraging technology and traditional media for a rapidly
changing market and to minimize costs.
TYPE
MEDIUM
Website
Facebook
Social Media
Email Campaigns
Blogs
Guerilla
Marketing
Webinars
You Tube
Local Events
Newspapers: Loudoun
Times Mirror &
Washington Post
Conventional
Magazine: Northern
Virginia
Collateral: Brochures,
Flyers & Business Cards
Logo Items
Chamber of Commerce
SPECIFIC FOCUS
Company Website:
educate, inform, client
login, exercise video
tutorials and webinars.
Member page
Ads
Send out promotions
and details about
events
Create a business
group for others to join
and connect
Artwork setup for
masthead
Articles on health and
fitness
Software
Video camera
Booth, fees,
sponsorships local
5k/10k
Post: ($27.20/column
inch-4x5 ad: $245
weekly) Sunday
circulation: 845K
Loudoun: ($34/
column inch-4x5 ad:
$306/weekly)
Circulation 64K weekly
4x6 ad print & 2x3 web
3 color tri-fold
brochure: initial run of
3,000 ($1 each)
$3,000/50,000 B/W
flyers ($.05 each)
$2,500/3,000 Business
Cards ($.20 each) $600
Hats, Pens and Shirt
1-5 employees, annual
membership
ESTIMATED COST
$5K to $10K for Start-Up
Minimal Cost
$10-20/day
Min. Cost
Min. Cost
$1,500
$1,000
$2,000
$1,000
$5K/yr.
$ 28,650/yr.
$300/month
$6,100/yr.
$3,000/yr.
$340/yr.
31 | P a g e
E.
Our strategic growth options are considered for cost-benefit with a potential time to decide on
implementation identified.
IDEA
TYPE
ADVANTAGES
DISADVANTAGES
DECISION
TIME
INTERNAL
+ Expansion of trainer
fitness specialties
Hire
Additional
Staff
Invest in
more
technical
podcast
software
Owners
hire
operational
managers
Smartphone
Application
Internal
- Increased
management efforts scheduling / payroll /
etc.
+ Reduce podcast
preparation time - labor
costs
- Initial capital
investment
- Ongoing software
licensing /
maintenance fees
- Some loss of
operational control
Internal
- Increased cost of
skilled management
labor
Internal
- Investment in
technical design and
security features, to
ensure privacy
Internal
Based on having
sufficient cash
reserves to
afford capital
investment
Based on
consensus of
owners
Based on costbenefit analysis
of offering the
enhanced
capability and
client demand
32 | P a g e
IDEA
TYPE
ADVANTAGES
DISADVANTAGES
DECISION
TIME
EXTERNAL
Offer
nutritional
services
Expand
Market
Area
Sponsor
educational
speaker
series
External
External
External
+ Strategic alliances
with nutritional
centers
+ Calorie-tracking
progress via website
- Cost of calorie
software/equipment
+ Increased market
size can expand
clientele
+ Establish a market
presence in other
gym chains
- Increased advertising
/promotional costs to establish
iTrainer brand
+ Strategic alliances
with national gym
chains to permit our
trainers to work with
clients
+ Educate current
clients on other
health matters stress, nutrition,
fitness, etc.
+ Advertise our
services to potential
clients
- Cost of event
facilities/refreshments/advertising
- Speaker fees
Based on
client
demand and
profitability
assessment
Based on
establishing
secure
foundation in
Loudoun,
client interest
with national
gyms, etc.
Greater costbenefit
analysis
required
(long-term)
33 | P a g e
F.
EXHIBIT 6: STARTUP FUNDING AND EXPENDITURES
Please see attached table.
G.
EXHIBIT 7: STARTUP FUNDING AND EXPENDITURES (CAPITAL)
Please see attached table.
H.
EXHIBIT 8: BALANCE S HEET
Please see attached table.
I.
EXHIBIT 9: MONTHLY INCOME STATEMENT S HEET
Please see attached table.
J.
EXHIBIT 10: ANNUAL I NCOME STATEMENT
Please see attached table.
K.
EXHIBIT 11: BREAKDOWN OF 2012 INCOME
Please see attached table.
L.
EXHIBIT 12: BREAKEVEN STATEMENT
Please see attached table.
M. EXHIBIT 13: OWNERS COMPENSATION
Owners will be compensated after the business opens with a base monthly salary, plus benefits.
25.55% will be budgeted for total benefits; an additional 11.45% will be budgeted for taxes
(FICA, unemployment, workers compensation, FUTA, and SUTA) taxes.
Please see attached table.
N.
EXHIBIT 14: RATIO ANALYSIS
Please see attached table.
O.
EXHIBIT 15: SALES PROJECTIONS
Please see attached table.
P.
EXHIBIT 16: CASH FLOW STATEMENT
Please see attached table.
34 | P a g e
35 | P a g e
Amount
Equity Investments
Loan Proceeds
300,000
-
300,000
750
Telephone Deposit
900
VOIP Deposit
750
2,400
5,000
Advertising (Preopening)
100,000
Federal Tax ID
350
2,000
2,500
Insurance
5,000
2,000
400
6,000
Miscellaneous Expenses
3,500
Office Supplies
1,000
4,000
5,000
-Payroll Taxes
-Benefits
-Travel Costs
3,000
2,000
-Memberships
2,500
Permits, Licenses
1,250
5,000
3,000
R&D
4,000
200
Telephone Service
3,000
1,500
2,000
VOIP Service
3,000
6,000
173,200
Other Costs
$
Computer Equipment
10,750
Equipment/Machinery
4,000
1,250
16,000
191,600
Opening Inventory
Capital Expenditures
Amount
4,000
2,000
4,000
3 Logitech webcams
750
10,750
3,000
1,000
4,000
1,250
1,250
16,000
Equipment/Machinery
4 HP Color LaserJet CM2320fxi MFP
4 Polycom SoundPoint VOIP terminals
Total
H.
2013
2014
2015
2016
Assets
Current Assets
Cash & Equivalents
Accounts Receivable
Inventory
Security Deposits
Other Current Assets
$
$
$
$
$
737,355
2,400
-
$
$
$
$
$
5,763,146
2,400
-
$ 19,237,763
$
$
$
2,400
$
-
$ 50,252,022
$
$
$
2,400
$
-
$
$
$
$
$
101,981,379
2,400
-
739,755
5,765,546
$ 19,240,163
$ 50,254,422
101,983,779
Fixed Assets
Property, Plant and Equipment
Less: Accumulated Depreciation
Other Non-Current Assets
$
$
$
16,000 $
(1,600) $
$
16,000 $
(3,200) $
$
16,000 $
(4,800) $
$
14,400
12,800
11,200
Total Assets
754,155
5,778,346
Current Liabilities
Accounts Payable
Line of Credit
Other Current Liabilities
$
$
$
$
$
$
Long-term Liabilities
Loans
Mortgages
Other Non-Current Liabilities
$
$
$
16,000 $
(8,000) $
$
16,000
(12,800)
-
8,000
3,200
$ 19,251,363
$ 50,262,422
101,986,979
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Total Liabilities
Equity Investments
Retained Earnings
Less: Owner's & Investor's Draws
$
$
$
300,000
454,155
-
$
$
$
300,000
5,478,346
-
$
300,000
$ 18,951,363
$
300,000
$ 49,962,422
$
$
300,000
101,686,979
Total Equity
754,155
5,778,346
$ 19,251,363
$ 50,262,422
101,986,979
754,155
5,778,346
$ 19,251,363
$ 50,262,422
101,986,979
Net Worth
754,155
5,778,346
$ 19,251,363
$ 50,262,422
101,986,979
Liabilities
Equity
I.
Pre-Startup
Jan.
Feb.
Mar.
Apr.
May
Jun.
Jun.
Aug.
Sep.
Oct.
Nov.
Dec.
TOTAL
Net Sales
66,000
66,000
66,000
132,000
132,000
132,000
198,000
198,000
198,000
264,000
264,000
264,000
23,438
23,438
23,438
46,875
46,875
46,875
70,313
70,313
70,313
93,750
93,750
93,750
1,980,000
703,125
Gross Income
42,563
42,563
42,563
85,125
85,125
85,125
127,688
127,688
127,688
170,250
170,250
170,250
1,276,875
Operating Expenses:
Accounting
5,000
208
208
208
208
208
208
208
208
208
208
208
208
7,500
Advertising
100,000
8,333
8,333
8,333
8,333
8,333
8,333
8,333
8,333
8,333
8,333
8,333
8,333
200,000
29,700
Bank Charges
2,475
2,475
2,475
2,475
2,475
2,475
2,475
2,475
2,475
2,475
2,475
2,475
133
133
133
133
133
133
133
133
133
133
133
133
1,600
417
417
417
417
417
417
417
417
417
417
417
417
5,000
2,500
583
583
583
583
583
583
583
583
583
583
583
583
9,500
Insurance
5,000
825
825
825
825
825
825
825
825
825
825
825
825
14,900
833
833
833
833
833
833
833
833
833
833
833
833
10,000
6,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
18,000
Miscellaneous
3,500
833
833
833
833
833
833
833
833
833
833
833
833
13,500
Office Supplies
1,000
167
167
167
167
167
167
167
167
167
167
167
167
3,000
240,000
Payroll Expenses:
-Salaries & Wages
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
-Payroll Taxes
2,290
2,290
2,290
2,290
2,290
2,290
2,290
2,290
2,290
2,290
2,290
2,290
27,480
-Benefits
5,110
5,110
5,110
5,110
5,110
5,110
5,110
5,110
5,110
5,110
5,110
5,110
61,320
-Travel Costs
3,000
333
333
333
333
333
333
333
333
333
333
333
333
7,000
2,000
250
250
250
250
250
250
250
250
250
250
250
250
5,000
-Memberships
2,500
292
292
292
292
292
292
292
292
292
292
292
292
6,000
1,250
833
833
833
833
833
833
833
833
833
833
833
833
11,250
5,000
417
417
417
417
417
417
417
417
417
417
417
417
10,000
Professional Fees
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
12,000
Property Taxes
27
27
27
27
27
27
27
27
27
27
27
27
325
18
18
18
18
18
18
18
18
18
18
18
18
215
25
25
25
25
25
25
25
25
25
25
25
25
300
Telephone Service
3,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
15,000
750
750
750
750
750
750
750
750
750
750
750
750
9,000
Travel
417
417
417
417
417
417
417
417
417
417
417
417
5,000
Utilities
115
115
115
115
115
115
115
115
115
115
115
115
1,374
2,000
1,568
1,568
1,568
1,568
1,568
1,568
1,568
1,568
1,568
1,568
1,568
1,568
20,810
1,500
369
369
369
369
369
369
369
369
369
369
369
369
5,928
VOIP Service
Web Site Costs (Design, Hosting, &
Admin.)
3,000
958
958
958
958
958
958
958
958
958
958
958
958
14,500
6,000
750
750
750
750
750
750
750
750
750
750
750
750
15,000
152,250
52,329
52,329
52,329
52,329
52,329
52,329
52,329
52,329
52,329
52,329
52,329
52,329
780,202
Operating Income
(152,250) $
(9,767) $
32,796
32,796
32,796
75,358
75,358
75,358
117,921
117,921
117,921
496,673
Interest Expense
Miscellaneous Income
(152,250) $
32,796
32,796
32,796
75,358
75,358
75,358
(9,767) $
(9,767) $
(9,767) $
(9,767) $
(9,767) $
-23%
-23%
77%
39%
39%
89%
59%
59%
117,921
92%
117,921
69%
117,921
69%
$
$
496,673
292%
2013
2014
2015
2015
Net Sales
Cost of Goods Sold
$
$
1,980,000
703,125
$
$
10,543,125
3,515,625
$
$
22,501,125
7,031,250
$
$
48,114,975
24,375,000
$
$
77,308,459
36,562,500
Gross Income
1,276,875
7,027,500
15,469,875
23,739,975
40,745,959
Operating Expenses:
Accounting
7,500
3,000
4,000
5,000
6,000
Advertising
200,000
150,000
175,000
200,000
225,000
1,159,627
Bank Charges
29,700
158,147
337,517
721,725
1,600
1,600
1,600
1,600
1,600
5,000
10,000
15,000
20,000
25,000
386,542
Insurance
14,900
52,716
112,506
240,575
9,500
10,000
13,000
20,000
30,000
11,250
10,250
10,500
12,000
14,000
10,000
11,000
12,000
13,000
14,000
18,000
15,000
20,000
30,000
50,000
Miscellaneous
13,500
18,000
23,000
30,000
38,000
Office Supplies
3,000
5,000
10,000
15,000
20,000
1,440,000
Payroll Expenses
-Salaries & Wages
240,000
576,000
720,000
960,000
-Payroll Taxes
27,480
65,952
82,440
109,920
164,880
-Benefits
61,320
147,168
183,960
245,280
367,920
-Travel Costs
7,000
5,000
6,000
8,000
15,000
5,000
4,000
5,000
7,500
10,000
-Memberships
6,000
4,500
5,500
7,000
9,000
10,000
7,500
10,000
15,000
20,000
45,000
Professional Fees
12,000
18,000
24,000
32,000
Property Taxes
325
500
1,000
1,500
2,000
215
1,000
1,500
3,000
6,000
300
500
1,000
2,000
4,000
Telephone Service
15,000
24,000
36,000
42,000
54,000
9,000
18,000
27,000
35,000
48,000
Travel
5,000
10,000
15,000
25,000
50,000
40,746
Utilities
1,374
7,515
16,445
23,740
5,928
4,871
5,358
5,894
6,483
20,810
20,691
22,760
25,036
27,540
VOIP Service
14,500
12,650
13,915
15,307
16,837
15,000
15,000
20,000
22,000
24,200
780,202
1,384,559
1,927,000
2,889,076
4,315,375
Operating Income
496,673
5,642,941
13,542,875
20,850,899
36,430,584
Interest Expense
Miscellaneous Income
$
$
Net Income
496,673
496,673
$
$
$
$
$
5,642,941
5,642,941
$
$
$
$
$
13,542,875
13,542,875
$
$
$
$
$
20,850,899
20,850,899
$
$
$
$
$
36,430,584
36,430,584
Percent of Sales
49%
6%
10%
35%
100%
$
$
$
$
$
Cash Sales
967,500
127,500
191,250
693,750
1,980,000
$
$
$
$
$
Accounts Receivable
-
Total
$
$
$
$
$
967,500
127,500
191,250
693,750
1,980,000
100,819
100,819
Assumptions:
Average Per Unit Revenue
Average Per Unit Variable Cost
Estimated Monthly Fixed Cost
$
$
$
1.00
0.36
65,017
1980000
703125
1
0.355113636
1276875
106406.25
65017 $
35,802.24
(0.14) $
100,819
INDIVIDUAL PACKAGES
BRONZE
SILVER
GOLD
PLATINUM
$
$
$
$
$
2,192
5,369
15,885
8,324
31,770
$
$
$
$
$
379
757
1,890
1,021
4,046
$
$
$
$
$
2,991
7,499
22,538
11,780
44,809
$
$
$
$
$
5,563
13,625
40,313
21,125
80,625
$
$
12
381,235
$
$
12
48,556
$
$
12
537,709
$
$
12
967,500
0.55
1.00
GROSS MARGIN
VARIABLE COST
SELLING PRICE
89
109
129
169
UNITS
63
125
313
125
625
INDIVIDUAL PACKAGES
BRONZE
SILVER
GOLD
PLATINUM
$
$
$
$
6
6
6
8
$
$
$
$
48
60
72
94
$
$
$
$
89
109
129
169
$
$
$
$
12
98
$
$
12
1,131
$
$
12
2,028
12
799
UNIT SALES PRICE
$
$
$
$
89
109
129
169
VARIABLE COST
1.00
GROSS MARGIN
SELLING PRICE
UNITS
63
125
313
125
MOO HACKETT
ROBERT P. ELLENTUCK
MARYANNE ZABALA
2013
2014
2015
2016
Base Salary
5,000
12,000
15,000
20,000
30,000
Taxes
573
1,374
1,718
2,890
4,335
Benefits
1,278
3,066
3,833
5,110
7,665
6,850
16,440
20,550
28,000
42,000
Base Salary
5,000
12,000
15,000
20,000
30,000
Taxes
573
1,374
1,718
2,890
4,335
Benefits
1,278
3,066
3,833
5,110
7,665
6,850
16,440
20,550
28,000
42,000
Base Salary
5,000
12,000
15,000
20,000
30,000
Taxes
573
1,374
1,718
2,890
4,335
Benefits
1,278
3,066
3,833
5,110
7,665
6,850
16,440
20,550
28,000
42,000
Base Salary
5,000
12,000
15,000
20,000
30,000
Taxes
573
1,374
1,718
2,890
4,335
Benefits
1,278
3,066
3,833
5,110
7,665
6,850
16,440
20,550
28,000
42,000
Note: The four owners receive equal salaries. No salary is paid prior to opening.
2012
2013
2014
Profitability Ratios
Gross Margin
Gross Income
64%
67%
69%
25%
54%
60%
21%
53%
60%
19%
79%
66%
51%
87%
68%
64%
19%
6%
168%
21%
6%
Net Sales
Operating Margin
Operating Income
Net Sales
Net Margin
Net Income
Net Sales
Net Income
Total Assets
Net Income
Total Equity
Liquidity Ratios
Current Ratio
Quick Ratio
Risk Ratios
Debt Ratio
Total Liabilities
Total Assets
Debt to Equity
Total Liabilities
Total Equity
Efficiency Ratios
Inventory Turnover
Inventory
Days Sales Outstanding (DSO)
Accounts Receivable
0%
0%
0%
93%
150%
110%
Net Sales/365
Investment Turnover Ratio
Net Sales
Total Assets
Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
TOTAL
Sales Budget
Bronze
Silver
Gold
Platinum
IFP Package Sales
$
$
$
$
$
2,225
5,450
16,125
8,450
32,250
$
$
$
$
$
2,225
5,450
16,125
8,450
32,250
$
$
$
$
$
2,225
5,450
16,125
8,450
32,250
$
$
$
$
$
4,450
10,900
32,250
16,900
64,500
$
$
$
$
$
4,450
10,900
32,250
16,900
64,500
$
$
$
$
$
4,450
10,900
32,250
16,900
64,500
$
$
$
$
$
6,675
16,350
48,375
25,350
96,750
$
$
$
$
$
6,675
16,350
48,375
25,350
96,750
$
$
$
$
$
6,675
16,350
48,375
25,350
96,750
$
$
$
$
$
8,900
21,800
64,500
33,800
129,000
$
$
$
$
$
8,900
21,800
64,500
33,800
129,000
$
$
$
$
$
8,900
21,800
64,500
33,800
129,000
$
$
$
$
$
66,750
163,500
483,750
253,500
967,500
IFP Interval
Bronze
Silver
Gold
Platinum
IFP Interval Sales
$
$
$
$
$
250
500
2,500
1,000
4,250
$
$
$
$
$
250
500
2,500
1,000
4,250
$
$
$
$
$
250
500
2,500
1,000
4,250
$
$
$
$
$
500
1,000
5,000
2,000
8,500
$
$
$
$
$
500
1,000
5,000
2,000
8,500
$
$
$
$
$
500
1,000
5,000
2,000
8,500
$
$
$
$
$
750
1,500
7,500
3,000
12,750
$
$
$
$
$
750
1,500
7,500
3,000
12,750
$
$
$
$
$
750
1,500
7,500
3,000
12,750
$
$
$
$
$
1,000
2,000
10,000
4,000
17,000
$
$
$
$
$
1,000
2,000
10,000
4,000
17,000
$
$
$
$
$
1,000
2,000
10,000
4,000
17,000
$
$
$
$
$
7,500
15,000
75,000
30,000
127,500
IFP Spinning
Bronze
Silver
Gold
Platinum
IFP Spinning Sales
$
$
$
$
$
375
750
3,750
1,500
6,375
$
$
$
$
$
375
750
3,750
1,500
6,375
$
$
$
$
$
375
750
3,750
1,500
6,375
$
$
$
$
$
750
1,500
7,500
3,000
12,750
$
$
$
$
$
750
1,500
7,500
3,000
12,750
$
$
$
$
$
750
1,500
7,500
3,000
12,750
$
$
$
$
$
1,125
2,250
11,250
4,500
19,125
$
$
$
$
$
1,125
2,250
11,250
4,500
19,125
$
$
$
$
$
1,125
2,250
11,250
4,500
19,125
$
$
$
$
$
1,500
3,000
15,000
6,000
25,500
$
$
$
$
$
1,500
3,000
15,000
6,000
25,500
$
$
$
$
$
1,500
3,000
15,000
6,000
25,500
$
$
$
$
$
11,250
22,500
112,500
45,000
191,250
IFP Training
Bronze
Silver
Gold
Platinum
IFP Training Sales
$
$
$
$
$
625
2,500
12,500
7,500
23,125
$
$
$
$
$
625
2,500
12,500
7,500
23,125
$
$
$
$
$
625
2,500
12,500
7,500
23,125
$
$
$
$
$
1,250
5,000
25,000
15,000
46,250
$
$
$
$
$
1,250
5,000
25,000
15,000
46,250
$
$
$
$
$
1,250
5,000
25,000
15,000
46,250
$
$
$
$
$
1,875
7,500
37,500
22,500
69,375
$
$
$
$
$
1,875
7,500
37,500
22,500
69,375
$
$
$
$
$
1,875
7,500
37,500
22,500
69,375
$
$
$
$
$
2,500
10,000
50,000
30,000
92,500
$
$
$
$
$
2,500
10,000
50,000
30,000
92,500
$
$
$
$
$
2,500
10,000
50,000
30,000
92,500
$
$
$
$
$
18,750
75,000
375,000
225,000
693,750
Gross Sales
66,000
66,000
66,000
132,000
132,000
132,000
198,000
198,000
198,000
264,000
264,000
264,000
1,980,000
Net Sales
Other Income
Total Income
$
$
$
66,000
66,000
$
$
$
66,000
66,000
$
$
$
66,000
66,000
$
$
$
132,000
132,000
$
$
$
132,000
132,000
$
$
$
132,000
132,000
$
$
$
198,000
198,000
$
$
$
198,000
198,000
$
$
$
198,000
198,000
$
$
$
264,000
264,000
$
$
$
264,000
264,000
$
$
$
264,000
264,000
$
$
$
1,980,000
1,980,000
Credit Management
Sales (Cash)
Sales (Credit)
Received on Account
Bad Debt Expense
$
$
$
$
66,000
-
$
$
$
$
66,000
-
$
$
$
$
66,000
-
$
$
$
$
132,000
-
$
$
$
$
132,000
-
$
$
$
$
132,000
-
$
$
$
$
198,000
-
$
$
$
$
198,000
-
$
$
$
$
198,000
-
$
$
$
$
264,000
-
$
$
$
$
264,000
-
$
$
$
$
264,000
-
$
$
$
$
1,980,000
-
Year 1 Assumptions
IFP Package Sales
IFP Interval Sales
IFP Spinning Sales
IFP Training Sales
Less: Returns and allowances
Sales (Cash)
Sales (Credit)
Received on Account
Bad Debt Expense
Please see notes for all categories of revenue in the notes for the financial plan.
Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
TOTAL
Sales Budget
IFP Packages
Bronze
Silver
Gold
Platinum
IFP Package Sales
$
$
$
$
$
12,238
29,975
88,688
46,475
177,375
$
$
$
$
$
12,238
29,975
88,688
46,475
177,375
$
$
$
$
$
12,238
29,975
88,688
46,475
177,375
$
$
$
$
$
24,475
59,950
177,375
92,950
354,750
$
$
$
$
$
24,475
59,950
177,375
92,950
354,750
$
$
$
$
$
24,475
59,950
177,375
92,950
354,750
$
$
$
$
$
36,713
89,925
266,063
139,425
532,125
$
$
$
$
$
36,713
89,925
266,063
139,425
532,125
$
$
$
$
$
36,713
89,925
266,063
139,425
532,125
$
$
$
$
$
48,950
119,900
354,750
185,900
709,500
$
$
$
$
$
48,950
119,900
354,750
185,900
709,500
$
$
$
$
$
48,950
119,900
354,750
185,900
709,500
$
$
$
$
$
367,125
899,250
2,660,625
1,394,250
5,321,250
IFP Interval
Bronze
Silver
Gold
Platinum
IFP Interval Sales
$
$
$
$
$
1,375
2,750
13,750
5,500
23,375
$
$
$
$
$
1,375
2,750
13,750
5,500
23,375
$
$
$
$
$
1,375
2,750
13,750
5,500
23,375
$
$
$
$
$
2,750
5,500
27,500
11,000
46,750
$
$
$
$
$
2,750
5,500
27,500
11,000
46,750
$
$
$
$
$
2,750
5,500
27,500
11,000
46,750
$
$
$
$
$
4,125
8,250
41,250
16,500
70,125
$
$
$
$
$
4,125
8,250
41,250
16,500
70,125
$
$
$
$
$
4,125
8,250
41,250
16,500
70,125
$
$
$
$
$
5,500
11,000
55,000
22,000
93,500
$
$
$
$
$
5,500
11,000
55,000
22,000
93,500
$
$
$
$
$
5,500
11,000
55,000
22,000
93,500
$
$
$
$
$
41,250
82,500
412,500
165,000
701,250
IFP Spinning
Bronze
Silver
Gold
Platinum
IFP Spinning Sales
$
$
$
$
$
2,063
4,125
20,625
8,250
35,063
$
$
$
$
$
2,063
4,125
20,625
8,250
35,063
$
$
$
$
$
2,063
4,125
20,625
8,250
35,063
$
$
$
$
$
4,125
8,250
41,250
16,500
70,125
$
$
$
$
$
4,125
8,250
41,250
16,500
70,125
$
$
$
$
$
4,125
8,250
41,250
16,500
70,125
$
$
$
$
$
6,188
12,375
61,875
24,750
105,188
$
$
$
$
$
6,188
12,375
61,875
24,750
105,188
$
$
$
$
$
6,188
12,375
61,875
24,750
105,188
$
$
$
$
$
8,250
16,500
82,500
33,000
140,250
$
$
$
$
$
8,250
16,500
82,500
33,000
140,250
$
$
$
$
$
8,250
16,500
82,500
33,000
140,250
$
$
$
$
$
61,875
123,750
618,750
247,500
1,051,875
IFP Training
Bronze
Silver
Gold
Platinum
IFP Training Sales
$
$
$
$
$
3,125
12,500
62,500
37,500
115,625
$
$
$
$
$
3,125
12,500
62,500
37,500
115,625
$
$
$
$
$
3,125
12,500
62,500
37,500
115,625
$
$
$
$
$
6,250
25,000
125,000
75,000
231,250
$
$
$
$
$
6,250
25,000
125,000
75,000
231,250
$
$
$
$
$
6,250
25,000
125,000
75,000
231,250
$
$
$
$
$
9,375
37,500
187,500
112,500
346,875
$
$
$
$
$
9,375
37,500
187,500
112,500
346,875
$
$
$
$
$
9,375
37,500
187,500
112,500
346,875
$
$
$
$
$
12,500
50,000
250,000
150,000
462,500
$
$
$
$
$
12,500
50,000
250,000
150,000
462,500
$
$
$
$
$
12,500
50,000
250,000
150,000
462,500
$
$
$
$
$
93,750
375,000
1,875,000
1,125,000
3,468,750
Gross Sales
351,438
351,438
351,438
702,875
702,875
702,875
1,054,313
1,054,313
1,054,313
1,405,750
1,405,750
1,405,750
10,543,125
Net Sales
Other Income
Total Income
$
$
$
351,438
351,438
$
$
$
351,438
351,438
$
$
$
351,438
351,438
$
$
$
702,875
702,875
$
$
$
702,875
702,875
$
$
$
702,875
702,875
$
$
$
1,054,313
1,054,313
$
$
$
1,054,313
1,054,313
$
$
$
1,054,313
1,054,313
$
$
$
1,405,750
1,405,750
$
$
$
1,405,750
1,405,750
$
$
$
1,405,750
1,405,750
$
$
$
10,543,125
10,543,125
Credit Management
Sales (Cash)
Sales (Credit)
Received on Account
Bad Debt Expense
$
$
$
$
351,438
-
$
$
$
$
351,438
-
$
$
$
$
351,438
-
$
$
$
$
702,875
-
$
$
$
$
702,875
-
$
$
$
$
702,875
-
$
$
$
$
1,054,313
-
$
$
$
$
1,054,313
-
$
$
$
$
1,054,313
-
$
$
$
$
1,405,750
-
$
$
$
$
1,405,750
-
$
$
$
$
1,405,750
-
$
$
$
$
10,543,125
-
Year 2 Assumptions
IFP Package Sales
IFP Interval Sales
IFP Spinning Sales
IFP Training Sales
Less: Returns and allowances
Sales (Cash)
Sales (Credit)
Received on Account
Bad Debt Expense
Please see notes for all categories of revenue in the notes for the financial plan.
Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
TOTAL
Sales Budget
IFP Packages
Bronze
Silver
Gold
Platinum
IFP Package Sales
$
$
$
$
$
26,923
65,945
195,113
102,245
390,225
$
$
$
$
$
26,923
65,945
195,113
102,245
390,225
$
$
$
$
$
26,923
65,945
195,113
102,245
390,225
$
$
$
$
$
53,845
131,890
390,225
204,490
780,450
$
$
$
$
$
53,845
131,890
390,225
204,490
780,450
$
$
$
$
$
53,845
131,890
390,225
204,490
780,450
$
$
$
$
$
80,768
197,835
585,338
306,735
1,170,675
$
$
$
$
$
80,768
197,835
585,338
306,735
1,170,675
$
$
$
$
$
80,768
197,835
585,338
306,735
1,170,675
$
$
$
$
$
107,690
263,780
780,450
408,980
1,560,900
$
$
$
$
$
107,690
263,780
780,450
408,980
1,560,900
$
$
$
$
$
107,690
263,780
780,450
408,980
1,560,900
$
$
$
$
$
807,675
1,978,350
5,853,375
3,067,350
11,706,750
IFP Interval
Bronze
Silver
Gold
Platinum
IFP Interval Sales
$
$
$
$
$
3,025
6,050
30,250
12,100
51,425
$
$
$
$
$
3,025
6,050
30,250
12,100
51,425
$
$
$
$
$
3,025
6,050
30,250
12,100
51,425
$
$
$
$
$
6,050
12,100
60,500
24,200
102,850
$
$
$
$
$
6,050
12,100
60,500
24,200
102,850
$
$
$
$
$
6,050
12,100
60,500
24,200
102,850
$
$
$
$
$
9,075
18,150
90,750
36,300
154,275
$
$
$
$
$
9,075
18,150
90,750
36,300
154,275
$
$
$
$
$
9,075
18,150
90,750
36,300
154,275
$
$
$
$
$
12,100
24,200
121,000
48,400
205,700
$
$
$
$
$
12,100
24,200
121,000
48,400
205,700
$
$
$
$
$
12,100
24,200
121,000
48,400
205,700
$
$
$
$
$
90,750
181,500
907,500
363,000
1,542,750
IFP Spinning
Bronze
Silver
Gold
Platinum
IFP Spinning Sales
$
$
$
$
$
4,538
9,075
45,375
18,150
77,138
$
$
$
$
$
4,538
9,075
45,375
18,150
77,138
$
$
$
$
$
4,538
9,075
45,375
18,150
77,138
$
$
$
$
$
9,075
18,150
90,750
36,300
154,275
$
$
$
$
$
9,075
18,150
90,750
36,300
154,275
$
$
$
$
$
9,075
18,150
90,750
36,300
154,275
$
$
$
$
$
13,613
27,225
136,125
54,450
231,413
$
$
$
$
$
13,613
27,225
136,125
54,450
231,413
$
$
$
$
$
13,613
27,225
136,125
54,450
231,413
$
$
$
$
$
18,150
36,300
181,500
72,600
308,550
$
$
$
$
$
18,150
36,300
181,500
72,600
308,550
$
$
$
$
$
18,150
36,300
181,500
72,600
308,550
$
$
$
$
$
136,125
272,250
1,361,250
544,500
2,314,125
IFP Training
Bronze
Silver
Gold
Platinum
IFP Training Sales
$
$
$
$
$
6,250
25,000
125,000
75,000
231,250
$
$
$
$
$
6,250
25,000
125,000
75,000
231,250
$
$
$
$
$
6,250
25,000
125,000
75,000
231,250
$
$
$
$
$
12,500
50,000
250,000
150,000
462,500
$
$
$
$
$
12,500
50,000
250,000
150,000
462,500
$
$
$
$
$
12,500
50,000
250,000
150,000
462,500
$
$
$
$
$
18,750
75,000
375,000
225,000
693,750
$
$
$
$
$
18,750
75,000
375,000
225,000
693,750
$
$
$
$
$
18,750
75,000
375,000
225,000
693,750
$
$
$
$
$
25,000
100,000
500,000
300,000
925,000
$
$
$
$
$
25,000
100,000
500,000
300,000
925,000
$
$
$
$
$
25,000
100,000
500,000
300,000
925,000
$
$
$
$
$
187,500
750,000
3,750,000
2,250,000
6,937,500
Gross Sales
750,038
750,038
750,038
1,500,075
1,500,075
1,500,075
2,250,113
2,250,113
2,250,113
3,000,150
3,000,150
3,000,150
22,501,125
Net Sales
Other Income
Total Income
$
$
$
750,038
750,038
$
$
$
750,038
750,038
$
$
$
750,038
750,038
$
$
$
1,500,075
1,500,075
$
$
$
1,500,075
1,500,075
$
$
$
1,500,075
1,500,075
$
$
$
2,250,113
2,250,113
$
$
$
2,250,113
2,250,113
$
$
$
2,250,113
2,250,113
$
$
$
3,000,150
3,000,150
$
$
$
3,000,150
3,000,150
$
$
$
3,000,150
3,000,150
$
$
$
22,501,125
22,501,125
Credit Management
Sales (Cash)
Sales (Credit)
Received on Account
Bad Debt Expense
$
$
$
$
750,038
-
$
$
$
$
750,038
-
$
$
$
$
750,038
-
$
$
$
$
1,500,075
-
$
$
$
$
1,500,075
-
$
$
$
$
1,500,075
-
$
$
$
$
2,250,113
-
$
$
$
$
2,250,113
-
$
$
$
$
2,250,113
-
$
$
$
$
3,000,150
-
$
$
$
$
3,000,150
-
$
$
$
$
3,000,150
-
$
$
$
$
22,501,125
-
Year 3 Assumptions
IFP Package Sales
IFP Interval Sales
IFP Spinning Sales
IFP Training Sales
Less: Returns and allowances
Sales (Cash)
Sales (Credit)
Received on Account
Bad Debt Expense
Please see notes for all categories of revenue in the notes for the financial plan.
Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
TOTAL
Sales Budget
IFP Packages
Bronze
Silver
Gold
Platinum
IFP Package Sales
$
$
$
$
$
59,230
145,079
429,248
224,939
858,495
$
$
$
$
$
59,230
145,079
429,248
224,939
858,495
$
$
$
$
$
59,230
145,079
429,248
224,939
858,495
$
$
$
$
$
118,459
290,158
858,495
449,878
1,716,990
$
$
$
$
$
118,459
290,158
858,495
449,878
1,716,990
$
$
$
$
$
118,459
290,158
858,495
449,878
1,716,990
$
$
$
$
$
177,689
435,237
1,287,743
674,817
2,575,485
$
$
$
$
$
177,689
435,237
1,287,743
674,817
2,575,485
$
$
$
$
$
177,689
435,237
1,287,743
674,817
2,575,485
$
$
$
$
$
236,918
580,316
1,716,990
899,756
3,433,980
$
$
$
$
$
236,918
580,316
1,716,990
899,756
3,433,980
$
$
$
$
$
236,918
580,316
1,716,990
899,756
3,433,980
$
$
$
$
$
1,776,885
4,352,370
12,877,425
6,748,170
25,754,850
IFP Interval
Bronze
Silver
Gold
Platinum
IFP Interval Sales
$
$
$
$
$
6,655
13,310
66,550
26,620
113,135
$
$
$
$
$
6,655
13,310
66,550
26,620
113,135
$
$
$
$
$
6,655
13,310
66,550
26,620
113,135
$
$
$
$
$
13,310
26,620
133,100
53,240
226,270
$
$
$
$
$
13,310
26,620
133,100
53,240
226,270
$
$
$
$
$
13,310
26,620
133,100
53,240
226,270
$
$
$
$
$
19,965
39,930
199,650
79,860
339,405
$
$
$
$
$
19,965
39,930
199,650
79,860
339,405
$
$
$
$
$
19,965
39,930
199,650
79,860
339,405
$
$
$
$
$
26,620
53,240
266,200
106,480
452,540
$
$
$
$
$
26,620
53,240
266,200
106,480
452,540
$
$
$
$
$
26,620
53,240
266,200
106,480
452,540
$
$
$
$
$
199,650
399,300
1,996,500
798,600
3,394,050
IFP Spinning
Bronze
Silver
Gold
Platinum
IFP Spinning Sales
$
$
$
$
$
9,983
19,965
99,825
39,930
169,703
$
$
$
$
$
9,983
19,965
99,825
39,930
169,703
$
$
$
$
$
9,983
19,965
99,825
39,930
169,703
$
$
$
$
$
19,965
39,930
199,650
79,860
339,405
$
$
$
$
$
19,965
39,930
199,650
79,860
339,405
$
$
$
$
$
19,965
39,930
199,650
79,860
339,405
$
$
$
$
$
29,948
59,895
299,475
119,790
509,108
$
$
$
$
$
29,948
59,895
299,475
119,790
509,108
$
$
$
$
$
29,948
59,895
299,475
119,790
509,108
$
$
$
$
$
39,930
79,860
399,300
159,720
678,810
$
$
$
$
$
39,930
79,860
399,300
159,720
678,810
$
$
$
$
$
39,930
79,860
399,300
159,720
678,810
$
$
$
$
$
299,475
598,950
2,994,750
1,197,900
5,091,075
IFP Training
Bronze
Silver
Gold
Platinum
IFP Training Sales
$
$
$
$
$
12,500
50,000
250,000
150,000
462,500
$
$
$
$
$
12,500
50,000
250,000
150,000
462,500
$
$
$
$
$
12,500
50,000
250,000
150,000
462,500
$
$
$
$
$
25,000
100,000
500,000
300,000
925,000
$
$
$
$
$
25,000
100,000
500,000
300,000
925,000
$
$
$
$
$
25,000
100,000
500,000
300,000
925,000
$
$
$
$
$
37,500
150,000
750,000
450,000
1,387,500
$
$
$
$
$
37,500
150,000
750,000
450,000
1,387,500
$
$
$
$
$
37,500
150,000
750,000
450,000
1,387,500
$
$
$
$
$
50,000
200,000
1,000,000
600,000
1,850,000
$
$
$
$
$
50,000
200,000
1,000,000
600,000
1,850,000
$
$
$
$
$
50,000
200,000
1,000,000
600,000
1,850,000
$
$
$
$
$
375,000
1,500,000
7,500,000
4,500,000
13,875,000
Gross Sales
1,603,833
1,603,833
1,603,833
3,207,665
3,207,665
3,207,665
4,811,498
4,811,498
4,811,498
6,415,330
6,415,330
6,415,330
48,114,975
Net Sales
Other Income
Total Income
$
$
$
1,603,833
1,603,833
$
$
$
1,603,833
1,603,833
$
$
$
1,603,833
1,603,833
$
$
$
3,207,665
3,207,665
$
$
$
3,207,665
3,207,665
$
$
$
3,207,665
3,207,665
$
$
$
4,811,498
4,811,498
$
$
$
4,811,498
4,811,498
$
$
$
4,811,498
4,811,498
$
$
$
6,415,330
6,415,330
$
$
$
6,415,330
6,415,330
$
$
$
6,415,330
6,415,330
$
$
$
48,114,975
48,114,975
1,603,833
1,603,833
1,603,833
3,207,665
3,207,665
3,207,665
4,811,498
4,811,498
4,811,498
6,415,330
6,415,330
6,415,330
48,114,975
Credit Management
Sales (Cash)
Sales (Credit)
Received on Account
Bad Debt Expense
Year 4 Assumptions
IFP Package Sales
IFP Interval Sales
IFP Spinning Sales
IFP Training Sales
Less: Returns and allowances
Sales (Cash)
Sales (Credit)
Received on Account
Bad Debt Expense
Jan.
Feb.
Mar.
Apr.
May
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
TOTAL
Sales Budget
IFP Packages
Bronze
Silver
Gold
Platinum
IFP Package Sales
$
$
$
$
$
97,729
239,380
708,258
371,149
1,416,517
$
$
$
$
$
97,729
239,380
708,258
371,149
1,416,517
$
$
$
$
$
97,729
239,380
708,258
371,149
1,416,517
$
$
$
$
$
195,457
478,761
1,416,517
742,299
2,833,034
$
$
$
$
$
195,457
478,761
1,416,517
742,299
2,833,034
$
$
$
$
$
195,457
478,761
1,416,517
742,299
2,833,034
$
$
$
$
$
293,186
718,141
2,124,775
1,113,448
4,249,550
$
$
$
$
$
293,186
718,141
2,124,775
1,113,448
4,249,550
$
$
$
$
$
293,186
718,141
2,124,775
1,113,448
4,249,550
$
$
$
$
$
390,915
957,521
2,833,034
1,484,597
5,666,067
$
$
$
$
$
390,915
957,521
2,833,034
1,484,597
5,666,067
$
$
$
$
$
390,915
957,521
2,833,034
1,484,597
5,666,067
$
$
$
$
$
2,931,860
7,181,411
21,247,751
11,134,481
42,495,503
IFP Interval
Bronze
Silver
Gold
Platinum
IFP Interval Sales
$
$
$
$
$
10,981
21,962
109,808
43,923
186,673
$
$
$
$
$
10,981
21,962
109,808
43,923
186,673
$
$
$
$
$
10,981
21,962
109,808
43,923
186,673
$
$
$
$
$
21,962
43,923
219,615
87,846
373,346
$
$
$
$
$
21,962
43,923
219,615
87,846
373,346
$
$
$
$
$
21,962
43,923
219,615
87,846
373,346
$
$
$
$
$
32,942
65,885
329,423
131,769
560,018
$
$
$
$
$
32,942
65,885
329,423
131,769
560,018
$
$
$
$
$
32,942
65,885
329,423
131,769
560,018
$
$
$
$
$
43,923
87,846
439,230
175,692
746,691
$
$
$
$
$
43,923
87,846
439,230
175,692
746,691
$
$
$
$
$
43,923
87,846
439,230
175,692
746,691
$
$
$
$
$
329,423
658,845
3,294,225
1,317,690
5,600,183
IFP Spinning
Bronze
Silver
Gold
Platinum
IFP Spinning Sales
$
$
$
$
$
16,471
32,942
164,711
65,885
280,009
$
$
$
$
$
16,471
32,942
164,711
65,885
280,009
$
$
$
$
$
16,471
32,942
164,711
65,885
280,009
$
$
$
$
$
32,942
65,885
329,423
131,769
560,018
$
$
$
$
$
32,942
65,885
329,423
131,769
560,018
$
$
$
$
$
32,942
65,885
329,423
131,769
560,018
$
$
$
$
$
49,413
98,827
494,134
197,654
840,027
$
$
$
$
$
49,413
98,827
494,134
197,654
840,027
$
$
$
$
$
49,413
98,827
494,134
197,654
840,027
$
$
$
$
$
65,885
131,769
658,845
263,538
1,120,037
$
$
$
$
$
65,885
131,769
658,845
263,538
1,120,037
$
$
$
$
$
65,885
131,769
658,845
263,538
1,120,037
$
$
$
$
$
494,134
988,268
4,941,338
1,976,535
8,400,274
IFP Training
Bronze
Silver
Gold
Platinum
IFP Training Sales
$
$
$
$
$
18,750
75,000
375,000
225,000
693,750
$
$
$
$
$
18,750
75,000
375,000
225,000
693,750
$
$
$
$
$
18,750
75,000
375,000
225,000
693,750
$
$
$
$
$
37,500
150,000
750,000
450,000
1,387,500
$
$
$
$
$
37,500
150,000
750,000
450,000
1,387,500
$
$
$
$
$
37,500
150,000
750,000
450,000
1,387,500
$
$
$
$
$
56,250
225,000
1,125,000
675,000
2,081,250
$
$
$
$
$
56,250
225,000
1,125,000
675,000
2,081,250
$
$
$
$
$
56,250
225,000
1,125,000
675,000
2,081,250
$
$
$
$
$
75,000
300,000
1,500,000
900,000
2,775,000
$
$
$
$
$
75,000
300,000
1,500,000
900,000
2,775,000
$
$
$
$
$
75,000
300,000
1,500,000
900,000
2,775,000
$
$
$
$
$
562,500
2,250,000
11,250,000
6,750,000
20,812,500
Gross Sales
2,576,949
2,576,949
2,576,949
5,153,897
5,153,897
5,153,897
7,730,846
7,730,846
7,730,846
10,307,795
10,307,795
10,307,795
77,308,459
Net Sales
Other Income
Total Income
$
$
$
2,576,949
2,576,949
$
$
$
2,576,949
2,576,949
$
$
$
2,576,949
2,576,949
$
$
$
5,153,897
5,153,897
$
$
$
5,153,897
5,153,897
$
$
$
5,153,897
5,153,897
$
$
$
7,730,846
7,730,846
$
$
$
7,730,846
7,730,846
$
$
$
7,730,846
7,730,846
$
$
$
10,307,795
10,307,795
$
$
$
10,307,795
10,307,795
$
$
$
10,307,795
10,307,795
$
$
$
77,308,459
77,308,459
2,576,949
2,576,949
2,576,949
5,153,897
5,153,897
5,153,897
7,730,846
7,730,846
7,730,846
10,307,795
10,307,795
10,307,795
77,308,459
Credit Management
Sales (Cash)
Sales (Credit)
Received on Account
Bad Debt Expense
Year 5 Assumptions
IFP Package Sales
IFP Interval Sales
IFP Spinning Sales
IFP Training Sales
Less: Returns and allowances
Sales (Cash)
Sales (Credit)
Received on Account
Bad Debt Expense
P.
Pre Startup
Jan.
Feb.
Mar.
Apr.
May
Jun.
Jun.
Aug.
Sep.
Oct.
Nov.
Dec.
TOTAL
$0
$108,400
$98,766
$89,133
$79,499
$112,428
$145,357
$178,286
$253,778
$329,269
$404,761
$522,815
$640,869
$0
$66,000
$66,000
$66,000
$132,000
$132,000
$132,000
$198,000
$198,000
$198,000
$264,000
$264,000
$264,000
Cash Inflows:
Cash Sales
$1,980,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Equity Received
$300,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$300,000
Loans Received
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$300,000
$66,000
$66,000
$66,000
$132,000
$132,000
$132,000
$198,000
$198,000
$198,000
$264,000
$264,000
$264,000
$2,280,000
$300,000
$174,400
$164,766
$155,133
$211,499
$244,428
$277,357
$376,286
$451,778
$527,269
$668,761
$786,815
$904,869
$2,388,400
$703,125
Other Cash In
$0
$0
$0
Cash Outflows:
Trainer Compensation - 1099
$0
$23,438
$23,438
$23,438
$46,875
$46,875
$46,875
$70,313
$70,313
$70,313
$93,750
$93,750
$93,750
Accounting
$5,000
$208
$208
$208
$208
$208
$208
$208
$208
$208
$208
$208
$208
$7,500
Advertising
$100,000
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$8,333
$200,000
$0
$2,475
$2,475
$2,475
$2,475
$2,475
$2,475
$2,475
$2,475
$2,475
$2,475
$2,475
$2,475
$29,700
$5,000
Operating Expenses
Bank Charges
Dues & Subscriptions
$0
$417
$417
$417
$417
$417
$417
$417
$417
$417
$417
$417
$417
$350
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$350
$2,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,000
$2,500
$583
$583
$583
$583
$583
$583
$583
$583
$583
$583
$583
$583
$9,500
Insurance
$5,000
$825
$825
$825
$825
$825
$825
$825
$825
$825
$825
$825
$825
$14,900
$2,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$400
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$400
$0
$833
$833
$833
$833
$833
$833
$833
$833
$833
$833
$833
$833
$10,000
$6,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$18,000
Miscellaneous
$3,500
$833
$833
$833
$833
$833
$833
$833
$833
$833
$833
$833
$833
$13,500
Office Supplies
$1,000
$167
$167
$167
$167
$167
$167
$167
$167
$167
$167
$167
$167
$4,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$4,000
$5,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$20,000
$25,000
$0
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$20,000
$240,000
Federal Tax ID
$2,000
$3,000
Payroll Expenses:
-Salaries & Wages
-Payroll Taxes
$0
$2,290
$2,290
$2,290
$2,290
$2,290
$2,290
$2,290
$2,290
$2,290
$2,290
$2,290
$2,290
$27,480
-Benefits
$0
$5,110
$5,110
$5,110
$5,110
$5,110
$5,110
$5,110
$5,110
$5,110
$5,110
$5,110
$5,110
$61,320
$3,000
$333
$333
$333
$333
$333
$333
$333
$333
$333
$333
$333
$333
$7,000
-Travel Costs
$5,000
$2,000
$250
$250
$250
$250
$250
$250
$250
$250
$250
$250
$250
$250
-Memberships
$2,500
$292
$292
$292
$292
$292
$292
$292
$292
$292
$292
$292
$292
$6,000
$1,250
$833
$833
$833
$833
$833
$833
$833
$833
$833
$833
$833
$833
$11,250
$5,000
$417
$417
$417
$417
$417
$417
$417
$417
$417
$417
$417
$417
$10,000
$3,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$3,000
Professional Fees
$0
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$12,000
Property Taxes
$0
$27
$27
$27
$27
$27
$27
$27
$27
$27
$27
$27
$27
$325
R&D
Repairs & Maintenance
Sales Tax Permits
Shipping & Delivery
Telephone Service
Training & Development
Travel
$4,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,568
$5,568
$0
$18
$18
$18
$18
$18
$18
$18
$18
$18
$18
$18
$18
$215
$200
$200
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$25
$25
$25
$25
$25
$25
$25
$25
$25
$25
$25
$25
$300
$3,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$1,000
$15,000
$0
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$9,000
$0
$417
$417
$417
$417
$417
$417
$417
$417
$417
$417
$417
$417
$5,000
$0
$115
$115
$115
$115
$115
$115
$115
$115
$115
$115
$115
$115
$1,374
$2,000
$1,568
$1,568
$1,568
$1,568
$1,568
$1,568
$1,568
$1,568
$1,568
$1,568
$1,568
$1,568
$20,810
$1,500
$369
$369
$369
$369
$369
$369
$369
$369
$369
$369
$369
$369
$5,928
VOIP Service
$3,000
$958
$958
$958
$958
$958
$958
$958
$958
$958
$958
$958
$958
$14,500
$6,000
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$15,000
$173,200
$75,634
$75,634
$75,634
$99,071
$99,071
$99,071
$122,509
$122,509
$122,509
$145,946
$145,946
$167,514
$1,524,245
$16,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$16,000
Utilities
Subtotal
Other Cash Outflows (Non-Operating)
Capital Purchases
Estimated Income Tax Payment
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Interest Payments
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Owners Draw
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,400
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,400
$0
$0
Total Cash Outflows
$191,600
$75,634
$75,634
$75,634
$99,071
$99,071
$99,071
$122,509
$122,509
$122,509
$145,946
$145,946
$167,514
$108,400
($9,634)
($9,634)
($9,634)
$32,929
$32,929
$32,929
$75,491
$75,491
$75,491
$118,054
$118,054
$96,486
$1,542,645
$737,355
$0
$108,400
$98,766
$89,133
$79,499
$112,428
$145,357
$178,286
$253,778
$329,269
$404,761
$522,815
$640,869
$0
$108,400
$98,766
$89,133
$79,499
$112,428
$145,357
$178,286
$253,778
$329,269
$404,761
$522,815
$640,869
$737,355
$737,355
P.
Jan.
Feb.
737,355
351,438
Mar.
804,796
351,438
Apr.
872,237
351,438
May
939,678
702,875
Jun.
1,241,369
702,875
Jul.
1,543,060
702,875
Aug.
1,844,750
1,054,313
Sep.
2,380,691
1,054,313
Oct.
2,916,632
1,054,313
Nov.
3,452,573
1,405,750
Dec.
4,222,764
1,405,750
TOTAL
4,992,955
1,405,750
Cash Inflows:
Cash Sales
10,543,125
Equity Received
Loans Received
Other Cash In
351,438
351,438
351,438
702,875
702,875
702,875
1,054,313
1,054,313
1,054,313
1,405,750
1,405,750
1,405,750
10,543,125
1,088,793
1,156,234
1,223,674
1,642,553
1,944,244
2,245,935
2,899,063
3,435,004
3,970,945
4,858,323
5,628,514
6,398,705
11,280,480
117,188
117,188
117,188
234,375
234,375
234,375
351,563
351,563
351,563
468,750
468,750
468,750
3,028,125
250
250
250
250
250
250
250
250
250
250
250
250
Cash Outflows:
Trainer Compensation - 1099
Operating Expenses
Accounting
3,000
Advertising
12,500
12,500
12,500
12,500
12,500
12,500
12,500
12,500
12,500
12,500
12,500
12,500
150,000
Bank Charges
13,179
13,179
13,179
13,179
13,179
13,179
13,179
13,179
13,179
13,179
13,179
13,179
158,147
833
833
833
833
833
833
833
833
833
833
833
10,000
833
Federal Tax ID
833
833
833
833
833
833
833
833
833
833
833
833
10,000
Insurance
4,393
4,393
4,393
4,393
4,393
4,393
4,393
4,393
4,393
4,393
4,393
4,393
52,716
833
833
833
833
833
833
833
833
833
833
833
833
10,000
854
854
854
854
854
854
854
854
854
854
854
854
10,250
917
917
917
917
917
917
917
917
917
917
917
917
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
15,000
Miscellaneous
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
18,000
Office Supplies
417
417
417
417
417
417
417
417
417
417
417
417
48,000
48,000
48,000
48,000
48,000
48,000
48,000
48,000
48,000
48,000
48,000
48,000
11,000
5,000
576,000
Payroll Expenses:
-Salaries & Wages
48,000
48,000
48,000
48,000
48,000
48,000
48,000
48,000
48,000
48,000
48,000
48,000
576,000
-Payroll Taxes
5,496
5,496
5,496
5,496
5,496
5,496
5,496
5,496
5,496
5,496
5,496
5,496
65,952
-Benefits
12,264
12,264
12,264
12,264
12,264
12,264
12,264
12,264
12,264
12,264
12,264
12,264
147,168
-Travel Costs
417
417
417
417
417
417
417
417
417
417
417
417
5,000
333
333
333
333
333
333
333
333
333
333
333
333
4,000
-Memberships
375
375
375
375
375
375
375
375
375
375
375
375
4,500
854
854
854
854
854
854
854
854
854
854
854
854
10,250
625
625
625
625
625
625
625
625
625
625
625
625
7,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
18,000
Professional Fees
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
18,000
Property Taxes
42
42
42
42
42
42
42
42
42
42
42
42
500
R&D
83
83
83
83
83
83
83
83
83
83
83
83
1,000
83
83
83
83
83
83
83
83
83
83
83
83
1,000
42
42
42
42
42
42
42
42
42
42
42
42
500
42
42
42
42
42
42
42
42
42
42
42
42
500
Telephone Service
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
24,000
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
18,000
Travel
833
833
833
833
833
833
833
833
833
833
833
833
10,000
Utilities
626
626
626
626
626
626
626
626
626
626
626
626
7,515
1,724
1,724
1,724
1,724
1,724
1,724
1,724
1,724
1,724
1,724
1,724
1,724
20,691
406
406
406
406
406
406
406
406
406
406
406
406
4,871
VOIP Service
1,054
1,054
1,054
1,054
1,054
1,054
1,054
1,054
1,054
1,054
1,054
1,054
12,650
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
15,000
Subtotal
283,997
283,997
283,997
401,184
401,184
401,184
518,372
518,372
518,372
635,559
635,559
635,559
5,517,334
Interest Payments
Owners Draw
$
$
$
$
283,997
67,441
$
$
283,997
67,441
$
$
283,997
67,441
$
$
401,184
301,691
$
$
401,184
301,691
$
$
401,184
301,691
$
$
518,372
535,941
$
$
518,372
535,941
$
$
518,372
535,941
$
$
635,559
770,191
$
$
635,559
770,191
$
$
635,559
770,191
$
$
5,517,334
5,025,791
737,355
804,796
872,237
939,678
1,241,369
1,543,060
1,844,750
2,380,691
2,916,632
3,452,573
4,222,764
4,992,955
737,355
804,796
872,237
939,678
1,241,369
1,543,060
1,844,750
2,380,691
2,916,632
3,452,573
4,222,764
4,992,955
5,763,146
5,763,146
P.
Jan.
Feb.
5,763,146
750,038
Mar.
6,112,537
750,038
Apr.
6,461,928
750,038
May
6,811,319
1,500,075
Jun.
7,676,372
1,500,075
Jul.
8,541,426
1,500,075
Aug.
9,406,479
2,250,113
Sep.
10,787,195
2,250,113
Oct.
12,167,911
2,250,113
Nov.
13,548,627
3,000,150
Dec.
15,445,006
3,000,150
TOTAL
17,341,384
3,000,150
Cash Inflows:
Cash Sales
22,501,125
Equity Received
Loans Received
Other Cash In
750,038
750,038
750,038
1,500,075
1,500,075
1,500,075
2,250,113
2,250,113
2,250,113
3,000,150
3,000,150
3,000,150
22,501,125
750,038
6,862,574
7,211,965
8,311,394
9,176,447
10,041,501
11,656,592
13,037,308
14,418,024
16,548,777
18,445,156
20,341,534
28,264,271
234,375
234,375
234,375
468,750
468,750
468,750
703,125
703,125
703,125
937,500
937,500
937,500
7,031,250
333
333
333
333
333
333
333
333
333
333
333
333
Cash Outflows:
Trainer Compensation - 1099
Operating Expenses
Accounting
4,000
Advertising
14,583
14,583
14,583
14,583
14,583
14,583
14,583
14,583
14,583
14,583
14,583
14,583
175,000
Bank Charges
28,126
28,126
28,126
28,126
28,126
28,126
28,126
28,126
28,126
28,126
28,126
28,126
337,517
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
15,000
1,250
Federal Tax ID
1,083
1,083
1,083
1,083
1,083
1,083
1,083
1,083
1,083
1,083
1,083
1,083
13,000
9,375
112,506
Insurance
9,375
9,375
9,375
9,375
9,375
9,375
9,375
9,375
9,375
9,375
9,375
875
875
875
875
875
875
875
875
875
875
875
875
10,500
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
12,000
875
875
875
875
875
875
875
875
875
875
875
875
10,500
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
12,000
Miscellaneous
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
20,000
Office Supplies
1,917
1,917
1,917
1,917
1,917
1,917
1,917
1,917
1,917
1,917
1,917
1,917
23,000
833
833
833
833
833
833
833
833
833
833
833
833
10,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
60,000
Payroll Expenses:
-Salaries & Wages
720,000
6,870
6,870
6,870
6,870
6,870
6,870
6,870
6,870
6,870
6,870
6,870
6,870
82,440
-Benefits
15,330
15,330
15,330
15,330
15,330
15,330
15,330
15,330
15,330
15,330
15,330
15,330
183,960
-Travel Costs
500
500
500
500
500
500
500
500
500
500
500
500
-Payroll Taxes
6,000
417
417
417
417
417
417
417
417
417
417
417
417
5,000
-Memberships
458
458
458
458
458
458
458
458
458
458
458
458
5,500
833
833
833
833
833
833
833
833
833
833
833
833
10,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
24,000
83
83
83
83
83
83
83
83
83
83
83
83
1,000
Professional Fees
83
83
83
83
83
83
83
83
83
83
83
83
1,000
Property Taxes
125
125
125
125
125
125
125
125
125
125
125
125
1,500
R&D
83
83
83
83
83
83
83
83
83
83
83
83
1,000
83
83
83
83
83
83
83
83
83
83
83
83
1,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
36,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
3,000
36,000
Telephone Service
2,250
2,250
2,250
2,250
2,250
2,250
2,250
2,250
2,250
2,250
2,250
2,250
27,000
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
15,000
Travel
1,370
1,370
1,370
1,370
1,370
1,370
1,370
1,370
1,370
1,370
1,370
1,370
16,445
446
446
446
446
446
446
446
446
446
446
446
446
5,358
1,897
1,897
1,897
1,897
1,897
1,897
1,897
1,897
1,897
1,897
1,897
1,897
22,760
446
446
446
446
446
446
446
446
446
446
446
446
5,358
Utilities
VOIP Service
1,160
1,160
1,160
1,160
1,160
1,160
1,160
1,160
1,160
1,160
1,160
1,160
13,915
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
20,000
Subtotal
400,647
400,647
400,647
635,022
635,022
635,022
869,397
869,397
869,397
1,103,772
1,103,772
1,103,772
9,026,508
Interest Payments
Owners Draw
$
$
$
$
400,647
349,391
$
$
400,647
349,391
$
$
400,647
349,391
$
$
635,022
865,053
$
$
635,022
865,053
$
$
635,022
865,053
$
$
869,397
1,380,716
$
$
869,397
1,380,716
$
$
869,397
1,380,716
$
$
1,103,772
1,896,378
$
$
1,103,772
1,896,378
$
$
1,103,772
1,896,378
$
$
9,026,508
13,474,617
5,763,146
6,112,537
6,461,928
6,811,319
7,676,372
8,541,426
9,406,479
10,787,195
12,167,911
13,548,627
15,445,006
17,341,384
5,763,146
6,112,537
6,461,928
6,811,319
7,676,372
8,541,426
9,406,479
10,787,195
12,167,911
13,548,627
15,445,006
17,341,384
19,237,763
19,237,763
P.
Jan.
Feb.
19,237,763
1,603,833
Mar.
20,119,660
1,603,833
Apr.
21,001,558
1,603,833
May
21,883,456
3,207,665
Jun.
23,900,437
3,207,665
Jul.
25,917,417
3,207,665
Aug.
27,934,397
4,811,498
Sep.
31,086,460
4,811,498
Oct.
34,238,523
4,811,498
Nov.
37,390,586
6,415,330
Dec.
41,677,731
6,415,330
TOTAL
45,964,877
6,415,330
Cash Inflows:
Cash Sales
48,114,975
Equity Received
Loans Received
Other Cash In
1,603,833
1,603,833
1,603,833
3,207,665
3,207,665
3,207,665
4,811,498
4,811,498
4,811,498
6,415,330
6,415,330
6,415,330
48,114,975
1,603,833
21,723,493
22,605,391
25,091,121
27,108,102
29,125,082
32,745,895
35,897,958
39,050,020
43,805,916
48,093,061
52,380,207
67,352,738
468,750
468,750
468,750
937,500
937,500
937,500
1,406,250
1,406,250
1,406,250
1,875,000
1,875,000
1,875,000
14,062,500
417
417
417
417
417
417
417
417
417
417
417
417
Cash Outflows:
Trainer Compensation - 1099
Operating Expenses
Accounting
5,000
Advertising
16,667
16,667
16,667
16,667
16,667
16,667
16,667
16,667
16,667
16,667
16,667
16,667
200,000
Bank Charges
60,144
60,144
60,144
60,144
60,144
60,144
60,144
60,144
60,144
60,144
60,144
60,144
721,725
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
20,000
1,667
Federal Tax ID
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
20,000
20,048
20,048
20,048
20,048
20,048
20,048
20,048
20,048
20,048
20,048
20,048
20,048
240,575
Insurance
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
12,000
1,083
1,083
1,083
1,083
1,083
1,083
1,083
1,083
1,083
1,083
1,083
1,083
13,000
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
20,000
30,000
Miscellaneous
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
30,000
Office Supplies
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
15,000
1,083
1,083
1,083
1,083
1,083
1,083
1,083
1,083
1,083
1,083
1,083
1,083
13,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
80,000
Payroll Expenses:
-Salaries & Wages
960,000
9,160
9,160
9,160
9,160
9,160
9,160
9,160
9,160
9,160
9,160
9,160
9,160
109,920
-Benefits
20,440
20,440
20,440
20,440
20,440
20,440
20,440
20,440
20,440
20,440
20,440
20,440
245,280
-Travel Costs
667
667
667
667
667
667
667
667
667
667
667
667
-Payroll Taxes
8,000
625
625
625
625
625
625
625
625
625
625
625
625
7,500
-Memberships
583
583
583
583
583
583
583
583
583
583
583
583
7,000
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
15,000
2,667
2,667
2,667
2,667
2,667
2,667
2,667
2,667
2,667
2,667
2,667
2,667
32,000
125
125
125
125
125
125
125
125
125
125
125
125
1,500
Professional Fees
250
250
250
250
250
250
250
250
250
250
250
250
3,000
Property Taxes
167
167
167
167
167
167
167
167
167
167
167
167
2,000
R&D
3,500
3,500
3,500
3,500
3,500
3,500
3,500
3,500
3,500
3,500
3,500
3,500
42,000
2,917
2,917
2,917
2,917
2,917
2,917
2,917
2,917
2,917
2,917
2,917
2,917
35,000
2,083
2,083
2,083
2,083
2,083
2,083
2,083
2,083
2,083
2,083
2,083
2,083
25,000
1,978
1,978
1,978
1,978
1,978
1,978
1,978
1,978
1,978
1,978
1,978
1,978
23,740
Telephone Service
3,500
3,500
3,500
3,500
3,500
3,500
3,500
3,500
3,500
3,500
3,500
3,500
42,000
2,083
2,083
2,083
2,083
2,083
2,083
2,083
2,083
2,083
2,083
2,083
2,083
25,000
Travel
1,833
1,833
1,833
1,833
1,833
1,833
1,833
1,833
1,833
1,833
1,833
1,833
22,000
2,086
2,086
2,086
2,086
2,086
2,086
2,086
2,086
2,086
2,086
2,086
2,086
25,036
491
1,978
491
1,978
491
1,978
491
1,978
491
1,978
491
1,978
491
1,978
491
1,978
491
1,978
491
1,978
491
5,894
491
VOIP Service
1,276
1,276
1,276
1,276
1,276
1,276
1,276
1,276
1,276
1,276
1,276
1,276
15,307
1,833
1,833
1,833
1,833
1,833
1,833
1,833
1,833
1,833
1,833
1,833
1,833
22,000
721,935
721,935
721,935
1,190,685
1,190,685
1,190,685
1,659,435
1,659,435
1,659,435
2,128,185
2,128,185
2,128,185
17,100,716
Subtotal
1,978
23,740
1,978
$
$
Utilities
Virtual Business Office - Philippines
Interest Payments
Owners Draw
$
$
$
$
721,935
881,898
$
$
721,935
881,898
$
$
721,935
881,898
$
$
1,190,685
2,016,980
$
$
1,190,685
2,016,980
$
$
1,190,685
2,016,980
$
$
1,659,435
3,152,063
$
$
1,659,435
3,152,063
$
$
1,659,435
3,152,063
$
$
2,128,185
4,287,145
$
$
2,128,185
4,287,145
$
$
2,128,185
4,287,145
$
$
17,100,716
31,014,259
19,237,763
20,119,660
21,001,558
21,883,456
23,900,437
25,917,417
27,934,397
31,086,460
34,238,523
37,390,586
41,677,731
45,964,877
19,237,763
20,119,660
21,001,558
21,883,456
23,900,437
25,917,417
27,934,397
31,086,460
34,238,523
37,390,586
41,677,731
45,964,877
50,252,022
50,252,022
P.
Jan.
Feb.
50,252,022
2,576,949
Mar.
51,752,066
2,576,949
Apr.
53,252,110
2,576,949
May
54,752,155
5,153,897
Jun.
58,126,023
5,153,897
Jul.
61,499,891
5,153,897
Aug.
64,873,759
7,730,846
Sep.
70,121,450
7,730,846
Oct.
75,369,142
7,730,846
Nov.
80,616,833
10,307,795
Dec.
87,738,348
10,307,795
TOTAL
94,859,864
10,307,795
Cash Inflows:
Cash Sales
77,308,459
Equity Received
Loans Received
Other Cash In
2,576,949
2,576,949
2,576,949
5,153,897
5,153,897
5,153,897
7,730,846
7,730,846
7,730,846
10,307,795
10,307,795
10,307,795
77,308,459
2,576,949
54,329,015
55,829,059
59,906,052
63,279,920
66,653,788
72,604,604
77,852,296
83,099,988
90,924,628
98,046,143
105,167,658
127,560,481
703,125
703,125
703,125
1,406,250
1,406,250
1,406,250
2,109,375
2,109,375
2,109,375
2,812,500
2,812,500
2,812,500
21,093,750
500
500
500
500
500
500
500
500
500
500
500
500
Cash Outflows:
Trainer Compensation - 1099
Operating Expenses
Accounting
6,000
Advertising
18,750
18,750
18,750
18,750
18,750
18,750
18,750
18,750
18,750
18,750
18,750
18,750
225,000
Bank Charges
96,636
96,636
96,636
96,636
96,636
96,636
96,636
96,636
96,636
96,636
96,636
96,636
1,159,627
2,083
2,083
2,083
2,083
2,083
2,083
2,083
2,083
2,083
2,083
2,083
25,000
2,083
Federal Tax ID
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
30,000
32,212
32,212
32,212
32,212
32,212
32,212
32,212
32,212
32,212
32,212
32,212
32,212
386,542
Insurance
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
1,167
1,167
1,167
1,167
1,167
1,167
1,167
1,167
1,167
1,167
1,167
1,167
14,000
1,167
1,167
1,167
1,167
1,167
1,167
1,167
1,167
1,167
1,167
1,167
1,167
14,000
4,167
4,167
4,167
4,167
4,167
4,167
4,167
4,167
4,167
4,167
4,167
4,167
30,000
50,000
Miscellaneous
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
3,167
38,000
Office Supplies
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
20,000
1,083
1,083
1,083
1,083
1,083
1,083
1,083
1,083
1,083
1,083
1,083
1,083
13,000
Payroll Expenses:
-Salaries & Wages
120,000
120,000
120,000
120,000
120,000
120,000
120,000
120,000
120,000
120,000
120,000
120,000
1,440,000
13,740
13,740
13,740
13,740
13,740
13,740
13,740
13,740
13,740
13,740
13,740
13,740
164,880
-Benefits
30,660
30,660
30,660
30,660
30,660
30,660
30,660
30,660
30,660
30,660
30,660
30,660
367,920
-Travel Costs
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
1,250
15,000
833
833
833
833
833
833
833
833
833
833
833
833
-Memberships
750
750
750
750
750
750
750
750
750
750
750
750
9,000
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
1,667
20,000
3,750
3,750
3,750
3,750
3,750
3,750
3,750
3,750
3,750
3,750
3,750
3,750
45,000
167
-Payroll Taxes
167
167
167
167
167
167
167
167
167
167
167
10,000
2,000
Professional Fees
500
500
500
500
500
500
500
500
500
500
500
500
6,000
Property Taxes
333
333
333
333
333
333
333
333
333
333
333
333
4,000
R&D
4,500
4,500
4,500
4,500
4,500
4,500
4,500
4,500
4,500
4,500
4,500
4,500
54,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
4,000
48,000
4,167
4,167
4,167
4,167
4,167
4,167
4,167
4,167
4,167
4,167
4,167
4,167
50,000
3,395
3,395
3,395
3,395
3,395
3,395
3,395
3,395
3,395
3,395
3,395
3,395
40,746
Telephone Service
4,500
4,500
4,500
4,500
4,500
4,500
4,500
4,500
4,500
4,500
4,500
4,500
54,000
2,295
2,295
2,295
2,295
2,295
2,295
2,295
2,295
2,295
2,295
2,295
2,295
27,540
Travel
2,017
2,017
2,017
2,017
2,017
2,017
2,017
2,017
2,017
2,017
2,017
2,017
24,200
2,295
2,295
2,295
2,295
2,295
2,295
2,295
2,295
2,295
2,295
2,295
2,295
27,540
540
1,403
540
1,403
540
1,403
540
1,403
540
1,403
540
1,403
540
1,403
540
1,403
540
1,403
540
1,403
540
6,483
540
VOIP Service
1,403
1,403
1,403
1,403
1,403
1,403
1,403
1,403
1,403
1,403
1,403
1,403
16,837
2,017
2,017
2,017
2,017
2,017
2,017
2,017
2,017
2,017
2,017
2,017
2,017
24,200
1,076,904
1,076,904
1,076,904
1,780,029
1,780,029
1,780,029
2,483,154
2,483,154
2,483,154
3,186,279
3,186,279
3,186,279
25,579,102
Subtotal
1,403
16,837
1,403
$
$
Utilities
Virtual Business Office - Philippines
Interest Payments
Owners Draw
$
$
$
$
1,076,904
1,500,044
$
$
1,076,904
1,500,044
$
$
1,076,904
1,500,044
$
$
1,780,029
3,373,868
$
$
1,780,029
3,373,868
$
$
1,780,029
3,373,868
$
$
2,483,154
5,247,692
$
$
2,483,154
5,247,692
$
$
2,483,154
5,247,692
$
$
3,186,279
7,121,515
$
$
3,186,279
7,121,515
$
$
3,186,279
7,121,515
$
$
25,579,102
51,729,357
50,252,022
51,752,066
53,252,110
54,752,155
58,126,023
61,499,891
64,873,759
70,121,450
75,369,142
80,616,833
87,738,348
94,859,864
50,252,022
51,752,066
53,252,110
54,752,155
58,126,023
61,499,891
64,873,759
70,121,450
75,369,142
80,616,833
87,738,348
94,859,864
101,981,379
101,981,379
iTrainer Fitness
Your Fitness. Your Way.
Introduction
Financing
Target Market
Marketing Plan
SWOT Analysis
Growth Strategy
Financials
Summary
APPENDIX A
HEALTH
3
APPENDIX A
Demographics
Loudoun County, Virginia
Ranks #1 for median annual income: $112K*
Typical Client
Hectic and busy professionals
Targets ages 25 - 44
Offers aging baby boomers a way to stay healthy and fit
Needs flexible schedule to incorporate fitness
Wants the customization of a personal trainer at an
affordable cost
Social Values
Health
Health--Fitness conscious
Avid user of technology
Stay healthy as you age
Economic turmoil
iTrainer
Fitness
APPENDIX A
Pricing Strategy
Level
Monthly
Services
Price/Quality
Platinum
$169
Gold
$129
Silver
$109
Bronze
$ 89
Start-up
Costs:
$100K
Promotional Strategy
Inform
Persuade
Social Media
Website:
iTrainerFitness.com
Facebook
Twitter
LinkedIn
Groupon
Pre-Launch
APPENDIX A
Remind
Guerilla
Conventional
Email
Blogs
Webinar
YouTube
Local
Events
Newspapers
Launch
Ongoing
Magazines
Collateral
Promotional
Items
Associations
Service Differentiation
Flexibility
Affordability
Luxury of
personalized training
($50-100/hour)
Monthly tiered
pricing
Convenience
Health
Initial assessment
Monthly progress
check-ups
SWOT Analysis
Strengths
Weaknesses
10
APPENDIX A
SWOT Analysis
Opportunities
Threats
Appealing to busy/hectic
professionals
Increasing health/fitness
trends
Business model & brand
attractive for franchising
Growing population of target
market
Potential partnerships
Consumer reduction in
discretionary spending
Consistent caliber of trainers
Competitors may mimic us
Volatile gas prices could
impact overhead costs
Resistance to use of
technology
11
Growth Strategy
Internal Plans
Hire additional staff
Software investment
Smartphone Application
Operational Managers
External Plans
Nutritional Services
Educational Webinars
Expand Market Areas
12
APPENDIX A
Implementation Plan
Management
Team
Staff*
Board of
Advisors
13
Podcasts/Web/R&D:
$15,000
Misc./Insurance:
$12,500
APPENDIX A
14
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Cash Balance
$98,766
$89,133
$79,499
$112,428
$145,357
$178,286
($9,634)
($9,634)
($9,634)
$32,929
$32,929
$32,929
15
$1,927,000
$22,501,125
$7,031,250
$15,469,875
60%
$13,542,875
$13,542,875
$5,642,941
$5,561,122
50%
40%
$1,384,559
30%
20%
$10,543,125
$3,515,625
$7,027,500
10%
0%
$780,202
$1,980,000
$703,125
Sales
COGs
$1,276,875
Gross Income Total Expenses
Net Profits
2012: 20.89%
$496,673
2013: 52.75%
Operating
Income
$496,673
Net Income
2014: 59.83%
16
APPENDIX A
Summary
iTrainer Fitness fills a gap in the marketplace
Focuses on health trends and desire to stay fit
Aging baby boomers
18
APPENDIX A