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Essay / Research Paper Abstract
An 8 page financial analysis for the startup business discussed in KSexecHlthSpa. Discussed are total startup costs; investors' expected contribution; first-year breakeven analysis; and anticipated cash flow patterns. Also included are sales forecasts for the first five years and pro forma profit and loss. No sources listed.
Page Count:
8 pages (~225 words per page)
File: CC6_KSexecFitFin.rtf
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Unformatted sample text from the term paper:
need for an executive spa and fitness center has been established. As stated in previous sections, the venture has high startup costs but shows much promise of lucrative return
in a relatively short time. Those high startup costs will be offset somewhat by the lease of space to contracted professionals, each of
whom will bring a specific talent and expertise to the venture. Rather than filling a cost category for labor and equipment, these professionals will pay the founder initial payments
of $5,000 for lease of space. Each contractor will be responsible for the equipment and supplies needed for the specific addition s/he brings to the venture. The initial
payment represents rent for the first six months, advertising support and furnishing of all utilities and limited insurance coverage. In month 7 of
operation and for each subsequent month that the contractor remains onsite, the contractor will pay the company a percentage of monthly receipts in addition to nominal space fees of $300.
This arrangement helps defray startup costs attributable to the owners while ensuring that all parties receive fair treatment after the business begins to be established in the local community.
Table 1 illustrates total startup expenses exclusive of contractors product and equipment needs. Table 1. Startup Requirements: Expenses
Start-up Expenses Legal $15,000 Supplies, etc. $15,000 Licenses, Permits 2,000 Telephone, computer deposits 4,000 Advertising for Opening $6,000 Consultants $5,000 Insurance ($1,000/mo) $6,000 Rent ($2000 plus deposit) $8,000 Fixturing, decorating
$6,000 Expensed Equipment $400,000 Beginning Inventory $5,000 Other $5,000 Total Start-up Expense $505,000 To date,
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