BUSINESS PLAN
ON
HEALTH CLUB
“SEHAT”
SUBMITTED BY :
VISHAL KAMAL
PGDM -009/35
Plan Outline
1.0 Executive Summary
2.0 Company Summary
3.0 Services
4.0 Market Analysis Summary
5.0 Strategy and Implementation Summary
Milestones
Marketing Strategy
Pricing Strategy
Promotion Strategy
Sales Strategy
Sales Forecast
6.0 Management Summary
7.0 Financial Plan
Corporate Fitness will serve Noida-area businesses, helping them to become more
productive, while lowering their overall costs.
Our business is based on two simple facts:
1. Healthy employees are more productive than chronically ill employees.
2. It costs less to prevent injuries or illnesses than to treat them after they occur.
At Corporate Fitness, we tie worker productivity directly to the health care issue. We
believe that traditional approaches to the current health care crisis are misdirected.
These traditional efforts are what we call reactive--that is, they wait until after the worker
has been stricken with illness or injury, and then pay for the necessary treatments. Our
approach, which emphasizes prevention and good health promotion, is much more
proactive.
By helping employees change their behavior patterns and choose more healthy
lifestyles, Corporate Fitness will lower companies' health care expenditures, while
raising worker productivity. Health care expenditures will decrease due to reduced
medical insurance premiums, reduced absenteeism, reduced turnover rates, reduced
worker's compensation claims, reduced tardiness, shorter hospital stays, etc.
The state of Corporate health care crisis, coupled with current demographic changes,
threaten to not only exacerbate the crisis, but further erode worker productivity as well.
These environmental factors coupled with the local competitive situation signal a
favorable opportunity in this market. We feel the time is right for Corporate Fitness.
1.1 Objectives
Provide wellness strategies/programs to businesses in Noida
1. Create working relationships with 20 companies by the end of year one.
2. Expand Corporate Fitness into Gurgaon and adjoinining areas by the end of year
two.
1.2 Keys to Success
Corporate Fitness' keys to success are:
1. Marketing services to companies and individuals.
2. Recruitment of experienced managerial talent.
3. Dedication and hard work of the founders.
4. Raising productivity.
5. Lowering overall costs.
1.3 Mission
Corporate Fitness is a health service that helps businesses and individual workers
attain one of the greatest gifts of all--that of good health. Personal gains, such as
improved self-esteem and self-motivation, combined with measurable benefits will
create tremendous advantages for both the employer and the employee.
Corporate Fitness is based on the belief that healthy employees are more productive
and efficient employees. For this reason, it provides wellness strategies/programs to
businesses in noida. This combines promotion of health and exercise-related activities
designed to facilitate positive lifestyle changes in members of a company's work force.
2.1 Company Ownership
Corporate Fitness is a privately held corporation. The three founders comprise all of the
ownership.
VISHAL KAMAL - 40 percent.
RACHIT MATHUR - 30 percent.
SUNIT KASHYAP - 30 percent.
2.2 Start-up Summary
Start-up will require approximately Rs. 80,00,000 of capital, The whole amount will be
provided by the founders and their families.
Approximately Rs. 40,00,000 will be allocated to equipment and Personnel
Start-up Funding
Start-up Expenses to Fund Rs.60,00,000
Start-up Assets to Fund Rs.20,00,000
Total Funding Required Rs.80,00,000
Assets
Non-cash Assets from Start-up Rs.0
Cash Requirements from Start-up Rs. 20,00,000
Additional Cash Raised Rs.0
Cash Balance on Starting Date Rs.20,00 ,000
Total Assets Rs.20,00,000
Liabilities and Capital
Liabilities
Current Borrowing Rs.0
Long-term Liabilities Rs.0
Accounts Payable (Outstanding Bills) Rs.0
Other Current Liabilities (interest-free) Rs.0
Total Liabilities Rs.0
Capital
Planned Investment
Investor 1 Rs.32,00,000
Investor 2 Rs. 22,00,000
Investor 3 Rs.22,00,000
Additional Investment Requirement Rs.0
Total Planned Investment Rs.80,00 ,000
Loss at Start-up (Start-up Expenses) (Rs.80,00,000)
Total Capital (Rs.80,00,000)
Total Capital and Liabilities Rs.80,00,000
Total Funding Rs.80,00,000
Start-up
Requirements
Start-up Expenses
Legal
Stationery etc.
Brochures
Insurance
Rent
Expensed Equipment
Utilities
Leasehold improvements
Other
Total Start-up Expenses
Start-up Assets
Cash Required
Other Current Assets
Long-term Assets
Total Assets
Rs.80,00,000
Total Requirements
2.3 Company Locations and Facilities
Corporate Fitness headquarters are located within the first club located in Noida
Sector-55 . Upon expansion, offices will be moved to a different location, not within any
individual club.
Services
Business ratios for Corporate Fitness indicate strong financial growth and an impressive
chance for investment opportunities, making expansion and further development both
very possible.
3.1 Service Description
Corporate Fitness provides wellness strategies/programs to businesses in the Noida
area. A wellness strategy is a long-term effort, combining both health-promotion and
exercise-related activities designed to facilitate positive lifestyle changes in members of
a company's work force.
Corporate Fitness will work with a company's senior management to help it develop a
mission statement for its wellness program. The client company's employees will
undergo a health-risk analysis, following which each employee will be given the
opportunity to meet with a health professional to design a personalized health program.
Finally, Corporate Fitness will furnish employee progress reports to senior management
with which to carry out the incentive program and generally monitor changes in the
behavior of its work force.
3.2 Competitive Comparison
Corporate Fitness is not primarily a health club, as are the majority of competitors. This
organization is in the business of health care cost management. The major function is to
work with client companies to implement wellness strategies. Many employees will
become benefactors of such strategies without ever visiting the fitness facility, as
exercise is only one facet of overall wellness.
Corporate Fitness has a vested interest in each individual member of every wellness
program, unlike many competitors. An integral part of this service is following up and
monitoring the individuals.
3.3 Fulfillment
All fitness machines are purchased from exercise equipment distributors, while all
medical equipment is bought from a reputable supply
Market Analysis Summary
In 1991, the INDIA medical bill was Rs.738 million rupees, of which businesses paid 30
percent. Recent studies indicate returns on investments in wellness programs for
various companies ranging from Rs.1.91:1 to Rs.5.78:1. General Electric's aircraft
engines division, for example, saves Rs.1 million per year through its wellness
programs. Traveler's Insurance Company reported savings of Rs.7.8 million in 1991,
attributable to its wellness programs, and a return of Rs.3.41 for every rupees invested
in wellness.
Important demographic changes are taking place in India that point to the importance of
worker productivity in coming decades.
16 million new jobs will be created by the year 2009, but there will only be 14 million
workers to fill them.
By 1995, women will comprise one-third of the work force, a ratio that will increase to
one-half by the year 2009.
An estimated 80 percent of jobs to be filled in the immediate future will require more
than a high-school education. Only 78 percent of Indians, however, finish high school,
and only 67 percent graduate with adequate skills.
The number of skilled workers available to fill new jobs is decreasing, meaning that
employers are facing more severe competition for labor. Thus, the health and
productivity of each employee becomes crucial to a company's success.
4.1 Market Segmentation
The market for corporate fitness is not particularly segmented, as potential customers
include all businesses that offer their employees some type of medical benefits, are
experiencing escalating health care costs, and wish to more effectively manage those
costs.
Corporate Fitness, however, segments its services for individual organizations.
Corporate Fitness works with senior management to develop mission statements and
provide incentive plans, and with employees to design personalized health and fitness
programs.
Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential
Growth
Customers
Corporate
35% 750 1,013 1,368 1,847 2,493
Employees
Manufacturing
15% 250 288 331 381 438
Exployees
Industry Employees 25% 500 625 781 976 1,220
Other 15% 300 345 397 457 526
Total 26.96% 1,800 2,271 2,877 3,661 4,677
4.2 Service Business Analysis
Several small fitness facilities are currently in operation in the area, none of which cater
their services to corporations. These organizations are primarily exercise facilities with
little emphasis on personalizing individual plans to improve working performance.
4.2.1 Main Competitors
The three main competitors for Corporate Fitness are:
VLCC-market is lower-income families and/or students who want accessibility and
affordability of fitness facilities.
SHEHNAZ-services are targeted toward those motivated and dedicated individuals who
workout five to seven times per week.
Better Bodies-aimed at casual fitness-seekers who do not workout with a high intensity
but still desire the status and recognition.
4.2.2 Distributing a Service
Few fitness centers are located in the Noida area, while the majority are found in
suburban neighborhoods and shopping complexes. Those in the area are located close
to professional centers containing restaurants, parks, and other recreational activities. In
suburban locales, these establishments are often found close to grocery stores,
restaurants, and retail stores.
4.2.3 Business Participants
Participants in the fitness industry include national, regional, and local organizations. On
the national level, companies such as VLCC and the SHEHNAZ offer exercise facilities
and training programs. At the regional level, firms such as Better Bodies and Bally's
offer comparable services, while locally, privately-owned businesses provide similar, but
less extensive services to exercise-seekers.
Corporate Fitness' strategy is based on raising worker productivity and lowering overall
costs for businesses. The most logical way to approach these factors is through a
healthy work force. Companies that implement wellness programs with Corporate
Fitness will be encouraged to look at the "big picture" regarding the effects of its
wellness programs. Thus, one marketing goal is to persuade more traditionally
managed companies that wellness can work for them.
By tailoring services and developing customized programs for companies and individual
employees, Corporate Fitness will develop a reputation for quality and customer
service.
5.1 Milestones
Sample Milestones topic text.
The milestones table and chart show the specific detail about actual program activities
that should be taking place during the year. Each one has its manager, starting date,
ending date, and budget. During the year we will be keeping track of implementation
against plan, with reports on the timely completion of these activities as planned.
Milestones
Milestone Start Date End Date Budget Manager Department
Sample Milestones 1/4/2008 1/4/2008 Rs.0 ABC Department
LeGrande
Finish Business Plan 5/7/2009 6/6/2009 Rs.100 Dude
Fromage
Acquire Financing 5/17/2009 7/6/2009 Rs.200 Dudette Legumers
Ah HA! Event 5/27/2009 6/1/2009 Rs.60 Marianne Bosses
Oooooh Noooooo! Chèvre
6/26/2009 7/1/2009 Rs.250 Marionette
Event deBlâme
Grande Opening 7/6/2009 7/11/2009 Rs.500 Gloworm Nobs
Marketing Program
6/6/2009 7/1/2009 Rs.1,000 Glower Marketeers
Starts
Plan vs. Actual Review 11/1/2009 11/8/2009 Rs.0 Galore Alles
First Break-even
3/5/2010 4/4/2010 Rs.0 Bouys Salers
Month
Hire Employees 2/1/2010 3/3/2010 Rs.150 Gulls HRM
Upgrade Business
4/22/2010 4/24/2010 Rs.100 Brass Bossies
Plan Pro
Totals Rs.2,360
5.2 Marketing Strategy
Corporate Fitness will begin by targeting small- to medium-sized businesses in the
Noida area. The first task is to convince senior executives of the benefits and needs of
wellness programs. This will be accomplished by aggressively pursuing interaction and
relationships with business professionals who would profit from using this service. Once
a strong image is established, Corporate Fitness will use similar strategies to market its
services to larger corporations in Noida and other areas of expansion.
5.2.1 Pricing Strategy
Prices for using Corporate Fitness' services are comparable to those of higher-end
fitness centers. An employee choosing to utilize a Corporate Fitness center will pay a
Rs.100 monthly fee. For each employee enrolled in the general wellness program,
regardless of whether or not they use the fitness facility, the employer will pay Rs.150
annually. The prices reflect the quality of the equipment and service.
5.2.2 Promotion Strategy
Following initial promotional activity through advertisements in newspapers, magazines,
and on television and radio, Corporate Fitness will significantly reduce its promotional
efforts in the hope that word-of-mouth will attract potential clients. Promotional activity
will still be utilized through these media outlets, but only minimally.
5.3 Sales Strategy
This proprietary information was omitted from the sample plan.
5.3.1 Sales Forecast
Anticipated sales are shown in the accompanying table and chart.
Sales Forecast
Year 1 Year 2 Year 3
Sales
Sales Rs.539,075 Rs.650,750 Rs.825,600
Other Rs.0 Rs.0 Rs.0
Total Sales Rs.539,075 Rs.650,750 Rs.825,600
Direct Cost of Sales Year 1 Year 2 Year 3
Cost of Sales Rs.33,000 Rs.44,000 Rs.55,000
Other Rs.0 Rs.0
Management Summary
Corporate Fitness is currently a small organization headed by three individuals. The
CEO/Director of Sales and Marketing oversees the activities of the Director of Health
and Wellness Programs and the Director of Finance and Administration.
The Director of Health and Wellness Programs is the contact for and supervisor of the
fitness specialists and health educators and promoters.
The Director of Finance and Administration provides guidance for fitness facility
attendants.
As the firm grows and expands, more director positions will be added as needed.
6.1 Organizational Structure
There are currently two divisions of Corporate Fitness: "Health and Wellness" and
"Finance and Administration." With the growth of the company, more divisions will be
created as the demand for services increases.
6.2 Management Team
Dave Jensen: CEO and Director of Sales and Marketing. Mr. Jensen is responsible for
providing leadership, direction, and control for all aspects of the company's activities in
order to realize optimum profits compatible with the best long- and short-term interests
of the shareholder, employees, consumers, and public. Mr. Jensen completed his
undergraduate degree at the University of North Carolina, and then earned his MBA
from the University of Texas.
Steve Perkins: Director of Finance and Administration. Mr. Perkins is responsible for
guiding and directing financial and control activities of the company in a manner
designed to protect assets, meet reporting requirements, and effectively plan for and
audit the financial needs of the firm. Mr. Perkins completed his undergraduate work at
the University of California-Berkeley, and received his MBA from Vanderbilt University.
Robert Gomez: Director of Health and Wellness Programs. Mr. Gomez will assume the
overall management of the health promotion program, including organizing and
conducting health education programs. Mr. Gomez received his undergraduate degree
in Exercise and Movement Science from the University of Oregon.
6.3 Management Team Gaps
The gaps of Corporate Fitness' management team include:
Lack of experience in the fitness industry.
Minimal expertise in areas of finance and accounting.
Strong desire for financial prosperity immediately with little patience for minimal
profitability.
6.4 Personnel Plan
Corporate Fitness' personnel staff requirements are shown in the table below.
Personnel Plan
Year 1 Year 2 Year 3
Fitness Center Management Rs.15,000 Rs.15,000 Rs.15,000
Program Director Rs.54,000 Rs.54,000 Rs.54,000
Personnel Manager Rs.36,000 Rs.36,000 Rs.36,000
Health/Fitness Specialists Rs.33,000 Rs.33,000 Rs.33,000
Attendants Rs.12,000 Rs.12,000 Rs.12,000
Total People 0 0 0
Total Payroll Rs.150,000 Rs.150,000 Rs.150,000
Financial Plan
Consulting revenue will make up approximately 85 to 90 percent of total revenue, with
the rest coming from service revenue.
Salaries and rent are the two major expenses, while depreciation is another significant
cost. Although the purchasing of fitness, medical, and office equipment is expensive,
constant replacement will be needed to maintain a competitive edge.
In order to maintain steady gross margins, salaries and advertising expenses are not
likely to increase within the first two years of operation, unless cash flows significantly
increase.
7.1 Important Assumptions
Three assumptions for Corporate Fitness are:
A constantly growing economy without any major recession or boom.
No unpredictable changes in fitness, medical, or office equipment.
No major national or global events that threaten the stability and health of the country
and its citizens.
General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 3.00% 3.00% 3.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 25.00% 25.00% 25.00%
Other 0 0 0
7.2 Key Financial Indicators
The most important financial indicators are net increase in cash and net income. Net
increase from cash will exemplify the relationship between net income and net cash
from operating activities. The greater the increase is, Corporate Fitness has that level of
financial strength at that point in time.
7.3 Break-even Analysis
Corporate Fitness' break-even point is computed in the table below, comparing sales
and monthly expenses. Sales forecasts indicate that units sold and monthly sales are
expected to be much greater than the break-even point mentioned in the table.
Break-even Analysis
Monthly Revenue Break-even Rs.26,683
Assumptions:
Average Percent Variable Cost 6%
Estimated Monthly Fixed Cost Rs.25,050
7.4 Projected Profit and Loss
Sales are predicted to increase each month with first year annual sales totaling close to
a half-million rupeess. Gross margin, likewise, is expected to increase correspondingly.
Compared to total sales, net profit will increase each month and is predicted to increase
for 1995 through 1997.
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales Rs.539,075 Rs.650,750 Rs.825,600
Direct Cost of Sales Rs.33,000 Rs.44,000 Rs.55,000
Other Costs of Sales Rs.0 Rs.0 Rs.0
Total Cost of Sales Rs.33,000 Rs.44,000 Rs.55,000
Gross Margin Rs.506,075 Rs.606,750 Rs.770,600
Gross Margin % 93.88% 93.24% 93.34%
Expenses
Payroll Rs.150,000 Rs.150,000 Rs.150,000
Marketing/Promotion Rs.25,200 Rs.25,200 Rs.25,200
Depreciation Rs.7,200 Rs.7,200 Rs.7,200
Rent Rs.60,000 Rs.60,000 Rs.6,000
Utilities Rs.25,200 Rs.25,200 Rs.25,200
Insurance Rs.5,400 Rs.5,400 Rs.5,400
Leased Equipment Rs.27,600 Rs.27,600 Rs.27,600
Payroll Taxes Rs.0 Rs.0 Rs.0
Other Rs.0 Rs.0 Rs.0
Total Operating Expenses Rs.300,600 Rs.300,600 Rs.246,600
Profit Before Interest and Taxes Rs.205,475 Rs.306,150 Rs.524,000
EBITDA Rs.212,675 Rs.313,350 Rs.531,200
Interest Expense Rs.10,449 Rs.8,500 Rs.7,500
Taxes Incurred Rs.48,757 Rs.74,413 Rs.129,125
Net Profit Rs.146,270 Rs.223,238 Rs.387,375
Net Profit/Sales 27.13% 34.30% 46.92%
7.5 Projected Cash Flow
Ordinary cash flow will increase significantly while expenses remain relatively static,
with only minimal increases. We plan to take out a short-term loan to cover our
receivables and other contingencies in month one, and repay it in month 12.
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales Rs.215,630 Rs.260,300 Rs.330,240
Cash from Receivables Rs.230,395 Rs.371,174 Rs.465,179
Subtotal Cash from Operations Rs.446,025 Rs.631,474 Rs.795,419
Additional Cash Received
Sales Tax, VAT, HST/GST Received Rs.0 Rs.0 Rs.0
New Current Borrowing Rs.36,000 Rs.0 Rs.0
New Other Liabilities (interest-free) Rs.0 Rs.0 Rs.0
New Long-term Liabilities Rs.0 Rs.0 Rs.0
Sales of Other Current Assets Rs.0 Rs.0 Rs.0
Sales of Long-term Assets Rs.0 Rs.0 Rs.0
New Investment Received Rs.0 Rs.0 Rs.0
Subtotal Cash Received Rs.482,025 Rs.631,474 Rs.795,419
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending Rs.150,000 Rs.150,000 Rs.150,000
Bill Payments Rs.206,122 Rs.277,578 Rs.280,145
Subtotal Spent on Operations Rs.356,122 Rs.427,578 Rs.430,145
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out Rs.0 Rs.0 Rs.0
Principal Repayment of Current Borrowing Rs.36,000 Rs.0 Rs.0
Other Liabilities Principal Repayment Rs.0 Rs.0 Rs.0
Long-term Liabilities Principal Repayment Rs.10,000 Rs.10,000 Rs.10,000
Purchase Other Current Assets Rs.0 Rs.0 Rs.0
Purchase Long-term Assets Rs.9,600 Rs.9,600 Rs.9,600
Dividends Rs.0 Rs.0 Rs.0
Subtotal Cash Spent Rs.411,722 Rs.447,178 Rs.449,745
Net Cash Flow Rs.70,303 Rs.184,295 Rs.345,675
Cash Balance Rs.80,303 Rs.264,599 Rs.610,273
7.6 Projected Balance Sheet
The balance sheet indicates that at the end of the first year of operation, net worth will
be positive and constantly increasing through the end of 1997.
Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash Rs.80,303 Rs.264,599 Rs.610,273
Accounts Receivable Rs.93,050 Rs.112,326 Rs.142,507
Other Current Assets Rs.0 Rs.0 Rs.0
Total Current Assets Rs.173,353 Rs.376,925 Rs.752,780
Long-term Assets
Long-term Assets Rs.9,600 Rs.19,200 Rs.28,800
Accumulated Depreciation Rs.7,200 Rs.14,400 Rs.21,600
Total Long-term Assets Rs.2,400 Rs.4,800 Rs.7,200
Total Assets Rs.175,753 Rs.381,725 Rs.759,980
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable Rs.29,483 Rs.22,217 Rs.23,098
Current Borrowing Rs.0 Rs.0 Rs.0
Other Current Liabilities Rs.0 Rs.0 Rs.0
Subtotal Current Liabilities Rs.29,483 Rs.22,217 Rs.23,098
Long-term Liabilities Rs.90,000 Rs.80,000 Rs.70,000
Total Liabilities Rs.119,483 Rs.102,217 Rs.93,098
Paid-in Capital Rs.200,000 Rs.200,000 Rs.200,000
Retained Earnings (Rs.290,000) (Rs.143,730) Rs.79,507
Earnings Rs.146,270 Rs.223,238 Rs.387,375
Total Capital Rs.56,270 Rs.279,507 Rs.666,882
Total Liabilities and Capital Rs.175,753 Rs.381,725 Rs.759,980
Rs.666,882
Net Worth Rs.56,270 Rs.279,507
7.7 Business Ratios
The following table outlines some of Corporate Fitness' more important business ratios.
The final column, Industry Profile, details specific ratios based on the Physical Fitness
Facilities industry as it is classified by the Standard Industry Classification (SIC) code,
7991. These ratios indicate strong financial growth and an impressive chance for
investment opportunities, making expansion and further development both very
possible.
Ratio Analysis
Industry
Year 1 Year 2 Year 3
Profile
Sales Growth 0.00% 20.72% 26.87% 4.96%
Percent of Total Assets
Accounts Receivable 52.94% 29.43% 18.75% 5.74%
Other Current Assets 0.00% 0.00% 0.00% 34.12%
Total Current Assets 98.63% 98.74% 99.05% 39.86%
Long-term Assets 1.37% 1.26% 0.95% 60.14%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 16.78% 5.82% 3.04% 21.71%
Long-term Liabilities 51.21% 20.96% 9.21% 29.51%
Total Liabilities 67.98% 26.78% 12.25% 51.22%
Net Worth 32.02% 73.22% 87.75% 48.78%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 93.88% 93.24% 93.34% 100.00%
Selling, General & Administrative
66.74% 58.93% 46.42% 72.76%
Expenses
Advertising Expenses 1.34% 1.11% 0.87% 2.44%
Profit Before Interest and Taxes 38.12% 47.05% 63.47% 3.01%
Main Ratios
Current 5.88 16.97 32.59 1.05
Quick 5.88 16.97 32.59 0.73
Total Debt to Total Assets 67.98% 26.78% 12.25% 2.72%
Pre-tax Return on Net Worth 346.59% 106.49% 77.45% 61.25%
Pre-tax Return on Assets 110.97% 77.98% 67.96% 7.03%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 27.13% 34.30% 46.92% n.a
Return on Equity 259.94% 79.87% 58.09% n.a
Activity Ratios
Accounts Receivable Turnover 3.48 3.48 3.48 n.a
Collection Days 55 96 94 n.a
Accounts Payable Turnover 7.99 12.17 12.17 n.a
Payment Days 27 35 29 n.a
Total Asset Turnover 3.07 1.70 1.09 n.a
Debt Ratios
Debt to Net Worth 2.12 0.37 0.14 n.a
Current Liab. to Liab. 0.25 0.22 0.25 n.a
Liquidity Ratios
Net Working Capital Rs.143,870 Rs.354,707 Rs.729,682 n.a
Interest Coverage 19.67 36.02 69.87 n.a
Additional Ratios
Assets to Sales 0.33 0.59 0.92 n.a
Current Debt/Total Assets 17% 6% 3% n.a
Acid Test 2.72 11.91 26.42 n.a
Sales/Net Worth 9.58 2.33 1.24 n.a
Dividend Payout 0.00 0.00 0.00 n.a
Sales Forecast
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Sale
s
Sale 0 Rs.17 Rs.21 Rs.22 Rs.26 Rs.32 Rs.40 Rs.47 Rs.52 Rs.56 Rs.65 Rs.72 Rs.85,
s % ,500 ,000 ,500 ,000 ,500 ,000 ,500 ,375 ,450 ,750 ,500 000
Othe 0
Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
r %
Total
Rs.17 Rs.21 Rs.22 Rs.26 Rs.32 Rs.40 Rs.47 Rs.52 Rs.56 Rs.65 Rs.72 Rs.85,
Sale
,500 ,000 ,500 ,000 ,500 ,000 ,500 ,375 ,450 ,750 ,500 000
s
Direc
t
Cost Month Month Month Month Month Month Month Month Month Month Month Month
of 1 2 3 4 5 6 7 8 9 10 11 12
Sale
s
Cost
of Rs.1, Rs.1, Rs.2, Rs.2, Rs.2, Rs.2, Rs.3, Rs.3, Rs.3, Rs.3, Rs.4, Rs.4,0
Sale 500 500 000 000 500 500 000 000 500 500 000 00
s
Othe
Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
r
Subt
otal
Direc
t Rs.1, Rs.1, Rs.2, Rs.2, Rs.2, Rs.2, Rs.3, Rs.3, Rs.3, Rs.3, Rs.4, Rs.4,0
Cost 500 500 000 000 500 500 000 000 500 500 000 00
of
Sale
s
Personnel Plan
Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Mont Month
h 1 h 2 h 3 h 4 h 5 h 6 h 7 h 8 h 9 h 10 h 11 12
Fitness
Center 0 Rs.1, Rs.1, Rs.1, Rs.1, Rs.1, Rs.1, Rs.1, Rs.1, Rs.1, Rs.1, Rs.1, Rs.1,
Manage % 250 250 250 250 250 250 250 250 250 250 250 250
ment
Progra
0 Rs.4, Rs.4, Rs.4, Rs.4, Rs.4, Rs.4, Rs.4, Rs.4, Rs.4, Rs.4, Rs.4, Rs.4,
m
% 500 500 500 500 500 500 500 500 500 500 500 500
Director
Personn
el 0 Rs.3, Rs.3, Rs.3, Rs.3, Rs.3, Rs.3, Rs.3, Rs.3, Rs.3, Rs.3, Rs.3, Rs.3,
Manage % 000 000 000 000 000 000 000 000 000 000 000 000
r
Health/F
itness 0 Rs.2, Rs.2, Rs.2, Rs.2, Rs.2, Rs.2, Rs.2, Rs.2, Rs.2, Rs.2, Rs.2, Rs.2,
Speciali % 750 750 750 750 750 750 750 750 750 750 750 750
sts
Attenda 0 Rs.1, Rs.1, Rs.1, Rs.1, Rs.1, Rs.1, Rs.1, Rs.1, Rs.1, Rs.1, Rs.1, Rs.1,
nts % 000 000 000 000 000 000 000 000 000 000 000 000
Total
0 0 0 0 0 0 0 0 0 0 0 0
People
Total Rs.12 Rs.12 Rs.12 Rs.12 Rs.12 Rs.12 Rs.12 Rs.12 Rs.12 Rs.12 Rs.12 Rs.12
Payroll ,500 ,500 ,500 ,500 ,500 ,500 ,500 ,500 ,500 ,500 ,500 ,500
Pro Forma Profit and Loss
Month Month Month Month Month Month Month Month Month Month Month Month
1 2 3 4 5 6 7 8 9 10 11 12
Rs.17 Rs.21 Rs.22 Rs.26 Rs.32 Rs.40 Rs.47 Rs.52 Rs.56 Rs.65 Rs.72 Rs.85,
Sales
,500 ,000 ,500 ,000 ,500 ,000 ,500 ,375 ,450 ,750 ,500 000
Direct
Cost Rs.1, Rs.1, Rs.2, Rs.2, Rs.2, Rs.2, Rs.3, Rs.3, Rs.3, Rs.3, Rs.4, Rs.4,0
of 500 500 000 000 500 500 000 000 500 500 000 00
Sales
Other
Costs
Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0 Rs.0
of
Sales
Total
Cost Rs.1, Rs.1, Rs.2, Rs.2, Rs.2, Rs.2, Rs.3, Rs.3, Rs.3, Rs.3, Rs.4, Rs.4,0
of 500 500 000 000 500 500 000 000 500 500 000 00
Sales
Gross
Rs.16 Rs.19 Rs.20 Rs.24 Rs.30 Rs.37 Rs.44 Rs.49 Rs.52 Rs.62 Rs.68 Rs.81,
Margi
,000 ,500 ,500 ,000 ,000 ,500 ,500 ,375 ,950 ,250 ,500 000
n
Gross
91.43 92.86 91.11 92.31 92.31 93.75 93.68 94.27 93.80 94.68 94.48 95.29
Margi
% % % % % % % % % % % %
n%
Expe
nses
Payro Rs.12 Rs.12 Rs.12 Rs.12 Rs.12 Rs.12 Rs.12
ll ,500 ,500 ,500 ,500 ,500 ,500 ,500
