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Eco-Fitness

Kristen Skill, Devansh Pasumarty, Zach Houle #03-01 Jones Building, Singapore, 279759 +6591505644 greenandfit@ecofitness.com


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Table of Contents

1.0 Executive Summary ...................................................................Error! Bookmark not defined. Chart: Highlights .........................................................................Error! Bookmark not defined. 1.1 Objectives...................................................................................Error! Bookmark not defined. 1.2 Mission .........................................................................................Error! Bookmark not defined. 1.3 Keys to Success .......................................................................Error! Bookmark not defined. 2.0 Company Summary ....................................................................Error! Bookmark not defined. 2.1 Company Ownership ..............................................................Error! Bookmark not defined. 2.2 Start-up Summary ..................................................................Error! Bookmark not defined. Table: Start-up.............................................................................Error! Bookmark not defined. Chart: Start-up ............................................................................Error! Bookmark not defined. 3.0 Products and Services ...............................................................Error! Bookmark not defined. 4.0 Market Analysis Summary .......................................................Error! Bookmark not defined. 4.1 Market Segmentation ............................................................Error! Bookmark not defined. Table: Market Analysis ..............................................................Error! Bookmark not defined. Chart: Market Analysis (Pie) ...................................................Error! Bookmark not defined. 4.2 Target Market Segment Strategy .....................................Error! Bookmark not defined. 4.3 Service Business Analysis ....................................................Error! Bookmark not defined. 4.3.1 Competition and Buying Patterns .............................Error! Bookmark not defined. 5.0 Web Plan Summary ....................................................................Error! Bookmark not defined. 5.1 Website Marketing Strategy ................................................Error! Bookmark not defined. 5.2 Development Requirements ................................................Error! Bookmark not defined. 6.0 Strategy and Implementation Summary ...........................Error! Bookmark not defined. 6.1 SWOT Analysis .........................................................................Error! Bookmark not defined. 6.1.1 Strengths ............................................................................Error! Bookmark not defined. 6.1.2 Weaknesses .......................................................................Error! Bookmark not defined. 6.1.3 Opportunities ....................................................................Error! Bookmark not defined. 6.1.4 Threats ................................................................................Error! Bookmark not defined. 6.2 Competitive Edge ....................................................................Error! Bookmark not defined. 6.3 Marketing Strategy .................................................................Error! Bookmark not defined. 6.4 Sales Strategy ..........................................................................Error! Bookmark not defined. 6.4.1 Sales Forecast...................................................................Error! Bookmark not defined. Table: Sales Forecast ............................................................Error! Bookmark not defined. Chart: Sales Monthly .............................................................Error! Bookmark not defined. Chart: Sales by Year ..............................................................Error! Bookmark not defined. 6.5 Milestones...................................................................................Error! Bookmark not defined. Table: Milestones ........................................................................Error! Bookmark not defined. Chart: Milestones ........................................................................Error! Bookmark not defined. 6.6 PERT.……………………………………………………………………………………………13 Chart: PERT……………………………………………………………………………………...13 7.0 Management Summary .............................................................Error! Bookmark not defined. 7.1 Personnel Plan ..........................................................................Error! Bookmark not defined. Table: Personnel ..........................................................................Error! Bookmark not defined. 8.0 Financial Plan ................................................................................Error! Bookmark not defined. 8.1 Start-up Funding .....................................................................Error! Bookmark not defined. Page 1


Table of Contents

Table: Start-up Funding ...........................................................Error! Bookmark not defined. 8.2 Break-even Analysis ...............................................................Error! Bookmark not defined. Table: Break-even Analysis.....................................................Error! Bookmark not defined. Chart: Break-even Analysis ....................................................Error! Bookmark not defined. 8.3 Projected Profit and Loss ......................................................Error! Bookmark not defined. Table: Profit and Loss ................................................................Error! Bookmark not defined. Chart: Profit Monthly .................................................................Error! Bookmark not defined. Chart: Profit Yearly .....................................................................Error! Bookmark not defined. Chart: Gross Margin Monthly..................................................Error! Bookmark not defined. Chart: Gross Margin Yearly .....................................................Error! Bookmark not defined. 8.4 Projected Cash Flow ...............................................................Error! Bookmark not defined. Table: Cash Flow .........................................................................Error! Bookmark not defined. Chart: Cash ...................................................................................Error! Bookmark not defined. 8.5 Projected Balance Sheet .......................................................Error! Bookmark not defined. Table: Balance Sheet .................................................................Error! Bookmark not defined. 8.6 Business Ratios ........................................................................Error! Bookmark not defined. Table: Ratios .................................................................................Error! Bookmark not defined. Table: Sales Forecast ........................................................................Error! Bookmark not defined. Table: Personnel ..................................................................................Error! Bookmark not defined. Table: Personnel ..................................................................................Error! Bookmark not defined. Table: Profit and Loss ........................................................................Error! Bookmark not defined. Table: Profit and Loss ........................................................................Error! Bookmark not defined. Table: Cash Flow .................................................................................Error! Bookmark not defined. Table: Cash Flow .................................................................................Error! Bookmark not defined. Table: Balance Sheet .........................................................................Error! Bookmark not defined. Table: Balance Sheet .........................................................................Error! Bookmark not defined.

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Table of Contents

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Eco-Fitness Business Plan

1.0 Executive Summary Eco-Fitness is a company the encompasses both the consumer and wholesale aspects of business. The fitness equipment has more of a goal then helping people get fit. Our business takes on a three-pronged approach: the ability to get fit, the ability to save money, and the ability to save our environment by re-cycling energy. It has the technology incorporated to turn the energy produced from using the machine into usable energy to power electricity. The energy that is being recycled can be sold back to the power company and money can be saved on the monthly electric bill. This creates a money-saving as well as an eco-friendly, energy-saving factor of the business that makes our fitness equipment unique and more desirable than the average piece of fitness equipment. Our marketing strategy consists of a large variety of advertisement forms, including billboards TV commercials, and internet ads. As we are marketing fitness equipment, we hope to grab the attention of the fitness conscious people who use such equipment, and also because we have the environmentally friendly factor, we hope to attract even more people because they can exercise and help the environment all in one machine. Our marketing will also project the money factor. Those who want to work out but can't afford to belong to a gym or purchase their own equipment can now enter the market. Not only is our machine cheaper than the average fitness equipment machine, but it also saves money for the user. Whether it is on their own electricity bill or on their monthly gym bill, they are saving money by using our product. We forecast that our market size will expand as our company concept develops. Consequently, we would like to see our product being promoted in talk shows, specifically Oprah. Because Oprah promotes healthy, fit lives and protecting the environment, we are aiming to propose our product to her in hopes that she will feature it on her TV show or in her magazine under "Oprah's Favorite Things." - a long-term goal of the company. We have set our target market as people between the ages of 18 and 70 because staying fit does not particularly have an age limit. Anyone can use fitness equipment as long as they have a goal to stay healthy and fit. However, we do not simply target the same market as LifeFitness or California Fitness for example; as we have added in the environmentally friendly aspect, we have expanded our target market to people who are environmentally conscious in addition to people who want to be fit. We also target a broader market because we can target people with a medium to high income level instead of just a high income level. Our product is cheaper than the average piece of fitness equipment, and users will save money on gym bills and electricity bills.

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Eco-Fitness Business Plan

Chart: Highlights

1.1 Objectives The objective of Eco-Fitness is to provide all fitness equipment users such as gyms, hotels, schools, personal homes, etc with fitness equipment that has the technology incorporated to convert the energy created from using the machine into usable energy that can be used to power the electricity in a house or gym. Not only is the consumer receiving the normal benefits of using fitness equipment, but our objective is to provide the consumers with the fitness equipment that also benefits the environment by saving energy and saves money on the monthly electric bill. By opening an Eco-Fitness gym of our own as well as selling our fitness equipment to gyms, hotels, schools, personal homes, and other fitness equipment users, we aim to break-even within the first year. 1.2 Mission Our company seeks to aid people in helping their world in a way that's beneficial to them. By using our machines at home as well as in our gym, our customers not only save energy, but they save money on the energy they would otherwise be using. 1.3 Keys to Success There is a very large pre-existing market for fitness equipment of about 44 billion globally. As this is very large for normal fitness equipment, we are hoping to target this same market but expand and also target the environmentally aware and eco-friendly group. In these times of global warming, our eco-friendly fitness equipment fits perfectly with the "go green" goal of the world today. As our equipment also allows the user to convert their produced energy into usable energy, they could also sell this energy back to the power company and essentially save money on their power bill. The combination of the three benefits- the fitness aspect, saving the environment, and saving money - should attract more customers and expand our

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Eco-Fitness Business Plan

market. Obtaining this extensive market will be the key to our success in selling our equipment and filling our gym. 2.0 Company Summary Eco-Fitness incorporates the aspect of staying fit and healthy with preserving the environment. The goal of our product is for people to be able to save energy by doing something that not only benefits them physically, but also saves the world around them and even saves themselves money on electricity. We are creating fitness equipment such as treadmills and elliptical that have the technology incorporated to take the energy created from using the machine and convert it into usable energy. This energy can then be used to power the electricity in a house or gym or even be sold back to the power company as usable energy. 2.1 Company Ownership Eco-Fitness is a privately-held corporation with three part owners, Kristen Skill, Devansh Pasumarty, and Zach Houle. There will be five trainers, two secretaries, and a lawyer who will all be given the opportunity to become vested in the Employee Stock Ownership Plan after a suitable probationary period. A percentage of the stock will also be sold to investors. 2.2 Start-up Summary Our start-up costs amount to a total of $44,900 which is to be financed partly by direct owner investment and mainly interested investors. Table: Start-up

Start-up Requirements Start-up Expenses Legal Insurance Rent Accountant fees Advertising Website development Research and Development Freight charges Renovation Total Start-up Expenses

$1,500 $150 $2,200 $1,450 $700 $1,500 $6,000 $1,200 $600 $15,300

Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets

$5,000 $12,000 $600 $12,000 $29,600

Total Requirements

$44,900

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Eco-Fitness Business Plan

Chart: Start-up

3.0 Products and Services Our product possesses a unique combination of physical wellness as well as environmentally positive output for our customers. By doing this, they are able to complete three essential aspects of life: increasing or maintaining their physical well-being, saving money in terms of their electricity bill, and being environmentally friendly - retaining some energy as it is sent back into their house or a gym. Customers can feel satisfied and pleased that such fantastic results can spawn from a simple activity such as running on a treadmill or doing basic leg raises. There is no other gym or company that sells fitness equipment with this technology; therefore, it is more appealing to the average person who wants to stay fit, help the environment, and save money. 4.0 Market Analysis Summary The overall market for fitness equipment and gyms is immense. Eco-Fitness has the unique competitive advantage of the energy saving and re-using technology that allows its users to save money and be eco-friendly. There are currently no other companies in this market as we have invented the equipment and technology combination; however, we will be competing for market share against hundreds of other gyms such as California Fitness, Peak Fitness, Gold's Gym, as well as other fitness equipment suppliers, specifically Lifecycle. We will be adding to the market of these competitors the cost and environment saving factors as well, so we should obtain a large market share. 4.1 Market Segmentation GymOur gym targets the same market segmentation as a normal gym- 15 to 60 year old people who are health or fitness conscious. Anyone, whether it be a business man, high school student, or stay-at-home mom, who is interested in getting fit or building muscles would be interested in using gym facilities. However, our gym does not only target the average gym

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Eco-Fitness Business Plan

customer; we also target the environmentally conscious people in the world. As global warming is a major factor today and more and more people are becoming increasingly environmentally aware, more people want to help improve our current environment situation. "Going green" is an increasingly popular motto in today's day and age, and our gym equipment does just that. By converting the energy created from using the equipment into usable energy to power the electricity, we are recycling and re-using energy and further benefiting the environment. With this aspect, we not only target the fitness-conscious, but also the environmentally friendly. In selling our Eco-Fitness fitness equipment, we have three target markets: the largest being home facilities, followed by health clubs and gyms, and lastly other fitness facilities such as universities, hotels, hospitals, and corporations. Home FacilitiesHome Facilities is our largest target market when it comes to selling our fitness equipment. The target market for our equipment is very broad: any individual or family who is fitness or health conscious. Anyone between the age of about 18-60 years who possesses the interest of staying in shape, getting fit, or building muscles is a target for our fitness equipment. In addition, the environmentally friendly aspect of our products further broadens the target market. It now includes the environmentally conscious people, which is increasingly huge considering our societal epidemic of global warming and carbon footprint. With these two factors as our target market, we are hoping to attract not only customers who are wealthy enough to have a personal gym in their own home, but also those with average income as we supply an affordable product with a money-saving aspect. By running on our treadmill or doing leg raises on our machines, the user will be creating energy that our equipment can recycle and use to power the consumer's electricity. This renewable energy can then be sold back to the energy supplier and the consumer can essentially save money on their power bill by using our fitness equipment. With these three aspects, we have a broad target market ranging from male to female, 18 year old to 60 year old, doctor to plumber, and even from overweight individual who wants to get fit to fitness jock. Health Clubs/Gyms/Other fitness facilitiesIn targeting the fitness facilities, we are aiming to obtain a large share of the existing market for fitness equipment that these facilities are already purchasing in. In 1999, sales of fitness equipment to clubs was about $445 million, and in 2004, it increased to about $565 million. This 21% increase represents the rapid growth of the demand for fitness equipment. The average usable life of the fitness equipment machines is seven years, so gyms and clubs have to replace their equipment periodically. With the epidemic of obesity increasing among people around the world, individuals are realizing that being fit and healthy is important. This is causing an increase in gym memberships and people interested in getting fit. With more and more people using the gym or health club facilities. We are targeting these gyms and health club facilities because they could benefit by saving money on their electricity bills and increase their corporate wellness by "going green" by filling their facilities with our fitness equipment. Table: Market Analysis

Market Analysis Year 1 Potential Customers Gyms Schools Hotels Personal homes Health clubs Retailers

Year 2

Year 3

Year 4

Year 5

Growth 6% 3% 6% 8% 5% 3%

CAGR 900 200 800 2,000 900 1,400

954 206 848 2,160 945 1,442

1,011 212 899 2,333 992 1,485

1,072 218 953 2,520 1,042 1,530

1,136 225 1,010 2,722 1,094 1,576

5.99% 2.99% 6.00% 8.01% 5.00% 3.00%

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Eco-Fitness Business Plan

Hospital Fitness Centers Senior Living and Apartment Complexes Other Non-Health Club Facilities (country clubs, airports, shopping malls) Total

2% 2%

100 200

102 204

104 208

106 212

108 216

1.94% 1.94%

5%

200

210

221

232

244

5.10%

5.60%

6,700

7,071

7,465

7,885

8,331

5.60%

Chart: Market Analysis (Pie)

4.2 Target Market Segment Strategy In targeting customers for our fitness equipment, we have three main attracting points: the fitness aspect, the eco-friendly aspect, as well as the aspect of saving money. Because fitness equipment is normally advertised as a medium of getting people fit and healthy, it is a given that this is what our products will do, so instead of focusing on the fitness factor, we will be targeting more of the eco-friendly market. The fitness conscious people will be purchasing fitness equipment anyway, so hopefully by presenting our equipment with more benefits than the average piece of fitness equipment, they will purchase ours instead of our competitor's. With the environmental benefits, saving energy, and saving money on energy bills, Eco-Fitness will hopefully attract a majority of the existing fitness market and add in the eco-friendly market. 4.3 Service Business Analysis Eco-Fitness is in both the consumer and the wholesale business because we operate as a gym as well as sell fitness equipment to individuals or other businesses. 4.3.1 Competition and Buying Patterns In the consumer business, our gym competes with other already well-established gyms such as California Fitness, Metroflex, The Sports Club, and Gold's Gym, and in the wholesale business,

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Eco-Fitness Business Plan

we compete with companies such as Global Fitness and Life Cycle. We aim to take a large portion of this already existing market which should be attainable considering the competitive advantage and unique qualities of our equipment. By "going green," saving energy, and saving money, we will be attracting even more customers and consumers than the average company in our market. With the option of choosing to join a gym or purchase fitness equipment from an established brand name, rational consumers would choose Eco-Fitness because they are achieving the same effect of getting fit or building muscles, but by using Eco-Fitness products, they are also saving the environment at no cost to them. Not only is it no cost, it is actually a benefit because the energy that they create by using our equipment can ultimately save money on their monthly electricity bill. Helping the environment, saving energy, and getting fit all while saving money is an attractive plan for fitness equipment consumers. 5.0 Web Plan Summary EcoFitness Online is our company's way of marketing our products and services online. Through the website, our customers will be able to view our different kinds of workout equipment for sale, learn about the revolutionary energy-saving aspect to our machines, purchase our fitness equipment, and find the location of our main EcoFitness gym center. Our workout equipment will be laid out in basic format; thumbnails with the respective prices displayed underneath. However, the website itself will be presented with a fresh layout and will be made easy to navigate. Initially, our company will be relatively unknown and not easy to advertise in public, so on every print ad, online ad, billboard, or medium of advertisement for Eco-Fitness, we will include our web address to better familiarize our customers with our website. Our main goal is to make our website as appealing as possible and let the viewers know we are an up-to-date reliable company with incredible products that we want them to check out and a gym that, just from exploring the website, they could tell would be a place where our customers would enjoy exercising. 5.1 Website Marketing Strategy In addition to using our website as a sales tool, it will also be used as a marketing tool for our products. It will give a broad overview of our gym and its location; however, it will focus mainly on selling our fitness equipment to individuals, companies, or retailers. We will submit our website into various search engines, but our main website marketing strategy is to include our website url in every printed advertisement as well as internet ad for Eco-Fitness. 5.2 Development Requirements One of our own founders specializes in website design and development, so he will be in charge of establishing our website. 6.0 Strategy and Implementation Summary Eco-Fitness has differentiated itself by offering a new type of fitness equipment. With its unique aspects of a money-saving, eco-friendly way to get fit, it will soon catch on and sales will skyrocket. Our sales strategy will focus on the unique eco-friendly factor of our equipment. Eco-Fitness will need to focus on the following main points: - Import and logistics– the equipment will be manufactured in China and shipped on pallets in containers to the United States - The equipment will then be warehoused until sold

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Eco-Fitness Business Plan

- Distribution once the units are sold and need to be delivered - Customer service will be offered for the equipment 6.1 SWOT Analysis The SWOT analysis captures the key strengths and weaknesses of Eco-Fitness and also provides the opportunities and threats facing our company. 6.1.1 Strengths • New technology in machines that converts user's produced energy into usable energy • Energy saving aspect that other companies don't have in their machines • Utility costs are lowered due to power produced from machines • Consumers get fit and save the environment all while saving money 6.1.2 Weaknesses • New starting company against experienced and well-established gyms and fitness equipment producers • Advertising an unknown product from an unknown company is harder than a brand-name company like LifeFitness advertising a machine or California Fitness advertising their gym 6.1.3 Opportunities • People will see our product as a better way of working out - while accomplishing their normal workout, they have also helped the environment and saved themselves money on their electricity bill • Expand quickly given that our product becomes known • Acquire a celebrity sponsor for our product (celebrities often want to "give back," and our product offers them the perfect opportunity to help the environment. Ex: switching from their normal gym to Eco-Fitness) 6.1.4 Threats • Starting off unknown could be difficult to advertise and grow • Companies might begin to copy our energy saving idea 6.2 Competitive Edge Eco-Fitness has numerous advantages over the competition because of its unique qualities. The world right now is in an eco-crisis which presents the attractiveness of our proposal. It attacks two problems of the globe today: the increasing health problem of obesity and the eco-crisis.

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Eco-Fitness Business Plan

As more and more people are becoming obese in the world today, it is a matter of increasing importance. By selling fitness equipment, we are attacking this problem and providing consumers with a solution to obesity. The competitive edge factor of our fitness equipment, however, is that it also solves an even greater global issue that other fitness equipment does not. Eco-Fitness contributes to a solution to the problem of energy conservation and global warming. These are huge factors for everyone in the world today, and by recycling energy into usable energy, our fitness equipment is contributing to the solution. 6.3 Marketing Strategy Our marketing strategy encompasses a large variety of advertisement forms including billboards, print ads, TV commercials, and internet ads. As we are marketing fitness equipment, we hope to grab the attention of the fitness conscious people who use such equipment, and also because we have the environmentally friendly factor, we hope to attract even more people because they can exercise and help the environment all in one machine. Our marketing will also project the money factor. Those who want to work out but can't afford to belong to a gym or purchase their own equipment can now enter the market. Not only is our machine cheaper than the average fitness equipment machine, but it also saves money for the user. Whether it is on their own electricity bill or on their monthly gym bill, they are saving money by using our product. These three main marketing strategies are summarized by our three slogans: - Burn n' Earn - Keep your stomach flat and your wallet fat - Run the treadmill run the world We will also advertise our gym card plan on advertisements and commercials. The "E-card" is the name of the membership card given to each customer who signs up for our gym. Whenever someone is using a machine in our gym, they enter their "E-card" in a slot on our machines made specifically for this card. When they then begin using the machine, it keeps track of how many watts of energy they have produced to power the electricity in our gym, which is converted into how much money the power company will return per watt, and then this amount is recorded on their card. When they have finished with their workout, they can remove thier card, place it in another machine, and continue adding watts. By the end of the month, their "E-card" has the total amount of watts produced as well as total amount of money saved, and this amount is therefore deducted off of their monthly gym bill. The customer can not recieve more money than the price of the monthly gym bill; however, if they work out enough, their membership could essentially be free. We forecast that our market size will expand as our company concept develops. Consequently, we would like to see our product eventually being promoted in talk shows such as Oprah. Because Oprah promotes healthy, fit lives and protecting the environment, we are aiming to propose our product to her in hopes that she will feature it on her TV show or in her magazine under "Oprah's Favorite Things" - a long-term goal of the company. By advertising the advantages of using our eco-friendly, high-class yet affordable gym, we will hopefully attract more customers than the average gym. Through billboards, print ads, TV commercials, and internet ads, all of which will also include our website address, we hope to get our environment and cost saving fitness equipment known and eventually become popular.

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Eco-Fitness Business Plan

6.4 Sales Strategy Eco-Fitness, aside from the gym where customers can just show up and join, also has an online website and a sales hotline that operate satisfactorily. There will be many orders to come through the website as well as over the phone, and once these orders have been placed, the ordered fitness equipment will be shipped to the country then driven directly to the specified customer's address. 6.4.1 Sales Forecast Eco-Fitness has two forms of sales: gym memberships and the sales of fitness equipment. Although we sell more than one type of equipment, in order to simplify sales projections we used the average price and amount sold of all equipment. Sales are expected to increase by ten percent each month in the first year; however by the second year, when our environmentally friendly and cash saving equipment has caught on, sales will begin to increase even more. After the first year, our gym memberships bring in the most revenue; however we are planning on having the sales of the actual equipment as our main form of revenue in the long run. The gym is not only a place for people to join and exercise, but it will also act as a showcase of our equipment. Once people realize how great of a product we have to offer, people, gyms, schools, hotels, etc will want to purchase our equipment. This is why our sales of equipment grows increasingly by the second and third years. These sales will continue to expand as the energysaving, money-saving, eco-friendly machines begin to catch on and companies purchase more from Eco-Fitness. Table: Sales Forecast

Sales Forecast Year 1

Year 2

Year 3

Gym Membership Selling Equipment Total Unit Sales

64,153 604 64,757

73,776 1,937 75,713

85,580 3,793 89,373

Unit Prices Gym Membership Selling Equipment

Year 1 $129.00 $1,299.00

Year 2 $129.00 $1,299.00

Year 3 $129.00 $1,299.00

Gym Membership Selling Equipment Total Sales

$8,275,738 $784,661 $9,060,399

$9,517,104 $2,516,163 $12,033,267

$11,039,820 $4,927,107 $15,966,927

Direct Unit Costs Gym Membership Selling Equipment

Year 1 $0.00 $246.81

Year 2 $0.00 $246.81

Year 3 $0.00 $246.81

$0 $149,086 $149,086

$0 $478,071 $478,071

$0 $936,150 $936,150

Unit Sales

Sales

Direct Cost of Sales Gym Membership Selling Equipment Subtotal Direct Cost of Sales

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Eco-Fitness Business Plan

Chart: Sales Monthly

Chart: Sales by Year

6.5 Milestones The following table, indicating our emphasis on planning for implementation, lists important milestones and goals of completion dates for our company. It also lists the managers in charge as well as our provided budget for each of the tasks.

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Eco-Fitness Business Plan

Table: Milestones

Milestones Milestone Business Plan Completion

Start Date 1/4/2010

End Date 23/4/2010

Budget $0

Manager Kristen

Complete Technology and Incorporate into Equipment Gym Set-up Warehousing Established Distribution Service Arranged Implement Advertising First Sale Profitability

30/4/2010

30/5/2010

$450,000

Kristen

30/5/2010 10/7/2010 10/7/2010 1/8/2010 1/8/2010 1/9/2010

10/7/2010 1/8/2010 1/8/2010 1/9/2010 1/8/2011 ----

$6,000 $500 $1,500 $1,500 $0 $0

Devansh Devansh Zach Zach Kristen Devansh

Totals

Department Business Development Business Development Operations Operations Operations Operations Sales Accounting

$459,500

6.6 PERT The following chart illustrates the flow of the production of our fitness equipment. The manufacturing all occurs in China because this is where we acquired the cheapest production costs, about $150 per actual piece of equipment. After the equipment is manufactured, the energy-saving technology is incorporated and the LCD screens are installed, the equipment is branded with our logo to ensure legal rights, and finally the equipment is shipped to our warehouse depending on where the customers are located. The total production process takes approximately 16 days per piece of equipment.

Chart: PERT

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Eco-Fitness Business Plan

7.0 Management Summary

7.1 Personnel Plan The Personnel Plan for Eco-Fitness reflects the need to bolster our capabilities to match our positioning. This flow chart projects the long term personnel plan of Eco-Fitness; as for the short term, it is illustrated in our table with specified costs. Our total amount of workers should gradually increase, especially after the first year. We will initially start with the president, two vice-presidents, five trainers, two secretaries, and three staff members to run the website and sales. We will continue to add sales and marketing staff, managers, and other employees as our company expands. Table: Personnel

Personnel Plan Trainers Secretaries Transportation Engineers Retail and Factory Managers Factory Employees Board Members Total People Total Payroll

Year 1

Year 2

Year 3

$420,000 $84,000 $120,000 $450,000 $320,004 $399,996 $240,000 22

$420,000 $84,000 $140,000 $260,000 $520,000 $500,000 $240,000 40

$420,000 $84,000 $165,000 $260,000 $600,000 $520,000 $240,000 48

$2,034,000

$2,164,000

$2,289,000

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Eco-Fitness Business Plan

8.0 Financial Plan The following subtopics help present the financial plan for Eco-Fitness. 8.1 Start-up Funding The start-up costs of Eco-Fitness will consist primarily of inventory, rent, advertising expenses, and research and development. The start-up costs come to a total of about $45,000, and over the first month of business, it will take about $70,000 before the company begins to make a profit. As our total start-up funding is approximately $120,000, we are asking investors to contribute this sum. Table: Start-up Funding

Start-up Funding Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required

$15,300 $29,600 $44,900

Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets

$24,600 $5,000 $75,100 $80,100 $104,700

Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities

$0 $0 $0 $0 $0

Capital Planned Investment Owner Investor Additional Investment Requirement Total Planned Investment

$0 $120,000 $0 $120,000

Loss at Start-up (Start-up Expenses) Total Capital

($15,300) $104,700

Total Capital and Liabilities

$104,700

Total Funding

$120,000

8.2 Break-even Analysis The chart shows that we need to sell approximately $430,000 per month to break even.

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Eco-Fitness Business Plan

Table: Break-even Analysis

Break-even Analysis Monthly Units Break-even Monthly Revenue Break-even

3,070 $429,486

Assumptions: Average Per-Unit Revenue Average Per-Unit Variable Cost Estimated Monthly Fixed Cost

$139.91 $2.30 $422,419

Chart: Break-even Analysis

8.3 Projected Profit and Loss The Projected Profit and Loss statement shows that Eco-Fitness is a largely profitable business. Just after the first year of business, we will have attained a net profit of $561,892. In the succeeding years, the net profit continues to increase greatly as our fitness equipment becomes more popular and sales increase. After a few years, other gyms, schools, hotels, or any facility that requires fitness equipment will begin to purchase our product over other ordinary fitness equipment and our sales will boom in the next years. Year two has an estimated net profit of $2,862,643, increasing profits from year one by fivefold, and year three's net profit of $4,095,404 shows the company's ability to grow and increase profits. The increasing net profit margin throughout the years, beginning at 6.57% in year one and increasing to 25.73% and 29.94% in years two and three respectively portrays the enormous potential for growth of EcoFitness. Month-by-month assumptions for profit and loss are included in the appendix.

Page 15


Eco-Fitness Business Plan

Table: Profit and Loss

Pro Forma Profit and Loss Year 1

Year 2

Year 3

Sales Direct Cost of Sales Other Costs of Sales Total Cost of Sales

$9,060,399 $149,086 $2,993,725 $3,142,811

$12,033,267 $478,071 $2,567,306 $3,045,377

$15,966,927 $936,150 $2,921,421 $3,857,571

Gross Margin Gross Margin %

$5,917,589 65.31%

$8,987,890 74.69%

$12,109,356 75.84%

Payroll Marketing/Promotion Depreciation Rent Equipment Utility

$2,034,000 $855,352 $8,976 $360,000 $99,996 $1,710,701

$2,164,000 $950,000 $8,976 $360,000 $104,996 $1,000,000

$2,289,000 $1,100,000 $8,976 $360,000 $110,000 $1,000,000

Total Operating Expenses

$5,069,025

$4,587,972

$4,867,976

Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred

$848,564 $857,540 $0 $144,256

$4,399,918 $4,408,894 $0 $747,986

$7,241,380 $7,250,356 $0 $1,231,035

Net Profit Net Profit/Sales

$704,308 7.77%

$3,651,932 30.35%

$6,010,345 37.64%

Expenses

Chart: Profit Monthly

Page 16


Eco-Fitness Business Plan

Chart: Profit Yearly

Chart: Gross Margin Monthly

Page 17


Eco-Fitness Business Plan

Chart: Gross Margin Yearly

8.4 Projected Cash Flow The following chart and table show the projected cash flow for Eco-Fitness. Table: Cash Flow

Pro Forma Cash Flow Year 1

Year 2

Year 3

$9,060,399 $9,060,399

$12,033,267 $12,033,267

$15,966,927 $15,966,927

$0 $0 $0 $0 $0 $0 $0 $9,060,399

$0 $0 $0 $0 $0 $0 $0 $12,033,267

$0 $0 $0 $0 $0 $0 $0 $15,966,927

Year 1

Year 2

Year 3

$2,034,000 $5,494,242 $7,528,242

$2,164,000 $6,634,393 $8,798,393

$2,289,000 $7,572,819 $9,861,819

$0 $0

$0 $0

$0 $0

Cash Received Cash from Operations Cash Sales Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received Expenditures Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Sales Tax, VAT, HST/GST Paid Out Principal Repayment of Current Borrowing

Page 18


Eco-Fitness Business Plan

Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets Purchase Long-term Assets Dividends Subtotal Cash Spent

$0 $0 $0 $0 $0 $7,528,242

$0 $0 $0 $0 $0 $8,798,393

$0 $0 $0 $0 $0 $9,861,819

Net Cash Flow Cash Balance

$1,532,157 $1,612,257

$3,234,874 $4,847,132

$6,105,108 $10,952,240

Chart: Cash

8.5 Projected Balance Sheet The table below shows the balance sheet for Eco-Fitness in the years 2011-2013. This table presents a high, positive cash position throughout the period of this financial plan and dramatic growth in net worth, reaching $7,624,639 in 2013. Table: Balance Sheet

Pro Forma Balance Sheet Year 1

Year 2

Year 3

$1,612,257 $33,319 $600 $1,646,177

$4,847,132 $138,044 $600 $4,985,775

$10,952,240 $165,069 $600 $11,117,909

$12,000 $8,976 $3,024

$12,000 $17,952 ($5,952)

$12,000 $26,928 ($14,928)

Assets Current Assets Cash Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets

Page 19


Eco-Fitness Business Plan

Total Assets

$1,649,201

$4,979,823

$11,102,981

Year 1

Year 2

Year 3

Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities

$840,193 $0 $0 $840,193

$518,884 $0 $0 $518,884

$631,696 $0 $0 $631,696

Long-term Liabilities Total Liabilities

$0 $840,193

$0 $518,884

$0 $631,696

$120,000 ($15,300) $704,308 $809,008 $1,649,201

$120,000 $689,008 $3,651,932 $4,460,940 $4,979,823

$120,000 $4,340,940 $6,010,345 $10,471,285 $11,102,981

$809,008

$4,460,940

$10,471,285

Liabilities and Capital Current Liabilities

Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Net Worth

8.6 Business Ratios Eco-Fitness's projected business ratios are displayed in the table below. The final column, Industry Profile, shows significant ratios for the Sporting and Recreational Goods and Supplies industry. Table: Ratios

Ratio Analysis Year 1

Year 2

Year 3

Industry Profile

n.a.

32.81%

32.69%

-0.16%

Inventory Other Current Assets Total Current Assets Long-term Assets Total Assets

2.02% 0.04% 99.82% 0.18% 100.00%

2.77% 0.01% 100.12% -0.12% 100.00%

1.49% 0.01% 100.13% -0.13% 100.00%

30.05% 32.89% 86.76% 13.24% 100.00%

Current Liabilities Long-term Liabilities Total Liabilities Net Worth

50.95% 0.00% 50.95% 49.05%

10.42% 0.00% 10.42% 89.58%

5.69% 0.00% 5.69% 94.31%

45.01% 49.07% 94.08% 5.92%

100.00% 65.31% 57.54% 9.44% 9.37%

100.00% 74.69% 44.34% 7.89% 36.56%

100.00% 75.84% 38.20% 6.89% 45.35%

100.00% 33.62% 13.25% 0.71% 3.97%

1.96 1.92 50.95% 104.89% 51.45%

9.61 9.34 10.42% 98.63% 88.35%

17.60 17.34 5.69% 69.15% 65.22%

1.75 1.08 94.08% 324.51% 19.22%

Sales Growth Percent of Total Assets

Percent of Sales Sales Gross Margin Selling, General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios

Year 1

Year 2

Year 3

Net Profit Margin Return on Equity

7.77% 87.06%

30.35% 81.86%

37.64% 57.40%

n.a n.a

Page 20


Eco-Fitness Business Plan

Activity Ratios Inventory Turnover Accounts Payable Turnover Payment Days Total Asset Turnover

11.11 7.54 27 5.49

5.58 12.17 39 2.42

6.18 12.17 27 1.44

n.a n.a n.a n.a

1.04 1.00

0.12 1.00

0.06 1.00

n.a n.a

$805,984 0.00

$4,466,892 0.00

$10,486,213 0.00

n.a n.a

0.18 51% 1.92 11.20 0.00

0.41 10% 9.34 2.70 0.00

0.70 6% 17.34 1.52 0.00

n.a n.a n.a n.a n.a

Debt Ratios Debt to Net Worth Current Liab. to Liab. Liquidity Ratios Net Working Capital Interest Coverage Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth Dividend Payout

Page 21


Appendix Table: Sales Forecast

Sales Forecast Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Gym Membership

3,000

3,300

3,630

3,993

4,392

4,832

5,315

5,846

6,431

7,074

7,781

8,559

Selling Equipment

10

11

12

13

15

28

42

58

74

93

113

135

3,010

3,311

3,642

4,006

4,407

4,860

5,357

5,904

6,505

7,167

7,894

8,694

Unit Prices

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Gym Membership

$129.00

$129.00

$129.00

$129.00

$129.00

$129.00

$129.00

$129.00

$129.00

$129.00

$129.00

$129.00

Selling Equipment

$1,299.00

$1,299.00

$1,299.00

$1,299.00

$1,299.00

$1,299.00

$1,299.00

$1,299.00

$1,299.00

$1,299.00

$1,299.00

$1,299.00

Gym Membership

$387,000

$425,700

$468,270

$515,097

$566,607

$623,267

$685,594

$754,155

$829,569

$912,546

$1,003,777

$1,104,156

Selling Equipment

$12,990

$14,289

$15,718

$17,290

$19,017

$36,372

$54,558

$75,342

$96,126

$120,807

$146,787

$175,365

$399,990

$439,989

$483,988

$532,387

$585,624

$659,639

$740,152

$829,497

$925,695

$1,033,353

$1,150,564

$1,279,521

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$0.00 $246.81

$0.00 $246.81

$0.00 $246.81

$0.00 $246.81

$0.00 $246.81

$0.00 $246.81

$0.00 $246.81

$0.00 $246.81

$0.00 $246.81

$0.00 $246.81

$0.00 $246.81

$0.00 $246.81

Unit Sales

Total Unit Sales

Sales

Total Sales Direct Unit Costs Gym Membership Selling Equipment

0.00% 19.00%

Direct Cost of Sales Gym Membership

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Selling Equipment

$2,468

$2,715

$2,986

$3,285

$3,613

$6,911

$10,366

$14,315

$18,264

$22,953

$27,890

$33,319

Subtotal Direct Cost of Sales

$2,468

$2,715

$2,986

$3,285

$3,613

$6,911

$10,366

$14,315

$18,264

$22,953

$27,890

$33,319

Page 1


Appendix Table: Personnel

Personnel Plan Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$35,000

$35,000

$35,000

$35,000

$35,000

$35,000

$35,000

$35,000

$35,000

$35,000

$35,000

$35,000

$7,000

$7,000

$7,000

$7,000

$7,000

$7,000

$7,000

$7,000

$7,000

$7,000

$7,000

$7,000

Transportation

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

$10,000

Engineers

$37,500

$37,500

$37,500

$37,500

$37,500

$37,500

$37,500

$37,500

$37,500

$37,500

$37,500

$37,500

Retail and Factory Managers

$26,667

$26,667

$26,667

$26,667

$26,667

$26,667

$26,667

$26,667

$26,667

$26,667

$26,667

$26,667

Factory Employees

$33,333

$33,333

$33,333

$33,333

$33,333

$33,333

$33,333

$33,333

$33,333

$33,333

$33,333

$33,333

Board Members

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

$20,000

Total People

22

22

22

22

22

22

22

22

22

22

22

22

Total Payroll

$169,500

$169,500

$169,500

$169,500

$169,500

$169,500

$169,500

$169,500

$169,500

$169,500

$169,500

$169,500

Trainers Secretaries

Page 2


Appendix Table: Profit and Loss

Pro Forma Profit and Loss Sales Direct Cost of Sales

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$399,990

$439,989

$483,988

$532,387

$585,624

$659,639

$740,152

$829,497

$925,695

$1,033,353

$1,150,564

$1,279,521

$2,468

$2,715

$2,986

$3,285

$3,613

$6,911

$10,366

$14,315

$18,264

$22,953

$27,890

$33,319

Other Costs of Sales

$139,997

$153,996

$169,396

$186,335

$204,969

$225,466

$248,012

$272,814

$300,095

$330,104

$363,115

$399,426

Total Cost of Sales

$142,465

$156,711

$172,382

$189,620

$208,582

$232,377

$258,378

$287,129

$318,359

$353,057

$391,005

$432,745

Gross Margin

$257,525

$283,278

$311,605

$342,767

$377,042

$427,263

$481,774

$542,368

$607,336

$680,296

$759,560

$846,776

64.38%

64.38%

64.38%

64.38%

64.38%

64.77%

65.09%

65.39%

65.61%

65.83%

66.02%

66.18%

$169,500

$169,500

$169,500

$169,500

$169,500

$169,500

$169,500

$169,500

$169,500

$169,500

$169,500

$169,500

$39,999

$43,999

$48,399

$53,239

$58,563

$64,419

$70,861

$77,947

$85,741

$94,316

$103,747

$114,122

$748

$748

$748

$748

$748

$748

$748

$748

$748

$748

$748

$748

$30,000

$30,000

$30,000

$30,000

$30,000

$30,000

$30,000

$30,000

$30,000

$30,000

$30,000

$30,000

$8,333 $79,999

$8,333 $87,998

$8,333 $96,798

$8,333 $106,477

$8,333 $117,125

$8,333 $128,838

$8,333 $141,721

$8,333 $155,893

$8,333 $171,483

$8,333 $188,631

$8,333 $207,494

$8,333 $228,244

Total Operating Expenses

$328,579

$340,578

$353,778

$368,297

$384,269

$401,838

$421,163

$442,421

$465,805

$491,528

$519,822

$550,947

Profit Before Interest and Taxes

($71,054)

($57,300)

($42,173)

($25,530)

($7,227)

$25,425

$60,611

$99,947

$141,531

$188,768

$239,738

$295,829

EBITDA

($70,306)

($56,552)

($41,425)

($24,782)

($6,479)

$26,173

$61,359

$100,695

$142,279

$189,516

$240,486

$296,577

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

($12,079)

($9,741)

($7,169)

($4,340)

($1,229)

$4,322

$10,304

$16,991

$24,060

$32,091

$40,755

$50,291

($58,975)

($47,559)

($35,003)

($21,190)

($5,999)

$21,102

$50,307

$82,956

$117,471

$156,677

$198,982

$245,538

-14.74%

-10.81%

-7.23%

-3.98%

-1.02%

3.20%

6.80%

10.00%

12.69%

15.16%

17.29%

19.19%

Gross Margin %

Expenses Payroll Marketing/Promotion Depreciation Rent Equipment Utility

Interest Expense Taxes Incurred Net Profit Net Profit/Sales

15% 15%

Page 3


Appendix Table: Cash Flow

Pro Forma Cash Flow Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Cash Sales

$399,990

$439,989

$483,988

$532,387

$585,624

$659,639

$740,152

$829,497

$925,695

$1,033,353

$1,150,564

$1,279,521

Subtotal Cash from Operations

$399,990

$439,989

$483,988

$532,387

$585,624

$659,639

$740,152

$829,497

$925,695

$1,033,353

$1,150,564

$1,279,521

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

$0 $0

New Other Liabilities (interest-free)

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Long-term Liabilities

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Sales of Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

New Investment Received

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$399,990

$439,989

$483,988

$532,387

$585,624

$659,639

$740,152

$829,497

$925,695

$1,033,353

$1,150,564

$1,279,521

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$169,500

$169,500

$169,500

$169,500

$169,500

$169,500

$169,500

$169,500

$169,500

$169,500

$169,500

$169,500

$9,542

$287,193

$315,624

$346,991

$384,081

$423,366

$473,302

$524,959

$582,298

$644,232

$713,622

$789,033

$179,042

$456,693

$485,124

$516,491

$553,581

$592,866

$642,802

$694,459

$751,798

$813,732

$883,122

$958,533

Sales Tax, VAT, HST/GST Paid Out

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Principal Repayment of Current Borrowing

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Other Liabilities Principal Repayment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Long-term Liabilities Principal Repayment

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Purchase Other Current Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Purchase Long-term Assets

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Dividends

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

Subtotal Cash Spent

$179,042

$456,693

$485,124

$516,491

$553,581

$592,866

$642,802

$694,459

$751,798

$813,732

$883,122

$958,533

Net Cash Flow

$220,948

($16,704)

($1,136)

$15,896

$32,043

$66,774

$97,350

$135,038

$173,897

$219,621

$267,442

$320,988

Cash Balance

$301,048

$284,344

$283,208

$299,104

$331,147

$397,921

$495,271

$630,309

$804,206

$1,023,828

$1,291,270

$1,612,257

Cash Received Cash from Operations

Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing

Subtotal Cash Received Expenditures

0.00%

Expenditures from Operations Cash Spending Bill Payments Subtotal Spent on Operations Additional Cash Spent

Page 4


Appendix

Page 5


Appendix Table: Balance Sheet

Pro Forma Balance Sheet Assets

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

$80,100 $12,000 $600 $92,700

$301,048 $9,532 $600 $311,180

$284,344 $6,817 $600 $291,761

$283,208 $3,831 $600 $287,638

$299,104 $3,285 $600 $302,989

$331,147 $3,613 $600 $335,360

$397,921 $6,911 $600 $405,431

$495,271 $10,366 $600 $506,237

$630,309 $14,315 $600 $645,224

$804,206 $18,264 $600 $823,070

$1,023,828 $22,953 $600 $1,047,381

$1,291,270 $27,890 $600 $1,319,759

$1,612,257 $33,319 $600 $1,646,177

$12,000 $0 $12,000 $104,700

$12,000 $748 $11,252 $322,432

$12,000 $1,496 $10,504 $302,265

$12,000 $2,244 $9,756 $297,394

$12,000 $2,992 $9,008 $311,997

$12,000 $3,740 $8,260 $343,620

$12,000 $4,488 $7,512 $412,943

$12,000 $5,236 $6,764 $513,001

$12,000 $5,984 $6,016 $651,240

$12,000 $6,732 $5,268 $828,338

$12,000 $7,480 $4,520 $1,051,901

$12,000 $8,228 $3,772 $1,323,531

$12,000 $8,976 $3,024 $1,649,201

Month 1

Month 2

Month 3

Month 4

Month 5

Month 6

Month 7

Month 8

Month 9

Month 10

Month 11

Month 12

Starting Balances

Current Assets Cash Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities

$0 $0 $0 $0

$276,707 $0 $0 $276,707

$304,099 $0 $0 $304,099

$334,231 $0 $0 $334,231

$370,024 $0 $0 $370,024

$407,646 $0 $0 $407,646

$455,867 $0 $0 $455,867

$505,617 $0 $0 $505,617

$560,900 $0 $0 $560,900

$620,528 $0 $0 $620,528

$687,413 $0 $0 $687,413

$760,061 $0 $0 $760,061

$840,193 $0 $0 $840,193

Long-term Liabilities Total Liabilities

$0 $0

$0 $276,707

$0 $304,099

$0 $334,231

$0 $370,024

$0 $407,646

$0 $455,867

$0 $505,617

$0 $560,900

$0 $620,528

$0 $687,413

$0 $760,061

$0 $840,193

Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital

$120,000 ($15,300) $0 $104,700 $104,700

$120,000 ($15,300) ($58,975) $45,725 $322,432

$120,000 ($15,300) ($106,534) ($1,834) $302,265

$120,000 ($15,300) ($141,537) ($36,837) $297,394

$120,000 ($15,300) ($162,727) ($58,027) $311,997

$120,000 ($15,300) ($168,726) ($64,026) $343,620

$120,000 ($15,300) ($147,623) ($42,923) $412,943

$120,000 ($15,300) ($97,316) $7,384 $513,001

$120,000 ($15,300) ($14,361) $90,339 $651,240

$120,000 ($15,300) $103,110 $207,810 $828,338

$120,000 ($15,300) $259,788 $364,488 $1,051,901

$120,000 ($15,300) $458,770 $563,470 $1,323,531

$120,000 ($15,300) $704,308 $809,008 $1,649,201

Net Worth

$104,700

$45,725

($1,834)

($36,837)

($58,027)

($64,026)

($42,923)

$7,384

$90,339

$207,810

$364,488

$563,470

$809,008

Page 6


Eco-Fitness BP