Professional Athletic Academy: Business Profile and Marketing Plan

This report provides an analysis of the development of a business plan for Professional Athletic Academy, a training organization for professional athletes. The report includes information on the company's vision, mission, target market, marketing strategy, operational plan, and financial analysis.

BUSINESS PLAN
Business Profile and Marketing Plan
Professional Athletic Academy

Hashem Khraibah Loveleen Loveleen,
Hashem Khraibah, Loveleen Loveleen, Harsi Dhindsa and Japjot Singh

Executive Summary
The report provides an analysis of the development of a business plan, which focuses on setting
up a training organization for professional athletes. The business set up is Professional Athletic
Academy that provides training to customers so that they can be professional athletes in the
future. The company will commence its business in Ottawa before entering into a partnership.
The company specializes in soccer, football, rugby and basketball by applying one-on-one
training. The vision is to provide education and professional training to customers for a bright
future. The mission is to ensure that the needs of the customers are fulfilled by providing them
with an opportunity of leading a healthy life. The facilities provided by the company include
professional training in terms of strength, body weight, yoga and high intensity interval training.
The key success factor includes high quality training for customers make big investments and
build long-term relationship with the customers. The marketing mix of the company is provided
with the analysis of the target market and the manner in which the marketing research is
conducted. The analysis of the product mix state that the company provides training
opportunities for various sports such as soccer, football, rugby, gym and so on. At the same
time, the customers are to pay $50 per month in order to choose a program. The fitness centre
also aims to expand across Canada having initially started its business in Ottawa. The
promotion of Professional Athletic Academy can be done websites so that the company can
reach more customers in the market. The unique selling proposition of the company is that it
has introduced different programs that can be devised by the customers as per self-preference.
It can be seen from the analysis of the report that the biggest advantage that Professional
Athletic Academy posses is the fact that it is technically well equipped and it is because of this

quality is being added that can help in the development of the academy. The competitive
analysis and the direct competitors of the company are also analyzed. It has been seen that the
possible competitors of Professional Athletic Academy can be Opsmpo, FTA and 180
hundredeigh. The promotional and sales strategy of the company is identified and a marketing
calendar is provided for the first year of the company. The target market of the academy is the
adults that range from 19 to 30 years and the kids that have age range from 10-18 years. From
the analysis of the operational plan of the academy, it can be seen that Professional Athletic
Academy exists in an area covering up to 3500 sq feet. It includes gym facilities, swimming pool,
and separate restroom for men and women. It also consists of a parking space in which families
can wait for their kids. At the same time, the operational plan provides an overview of the
payroll and benefit structure that the academy provide to its employees. Risk analysis is done
that shows the possibility of disadvantage in the market and the manner in which it can be
mitigated. The financial analysis state the financial capability of the company and the manner in
which it can be developed. Calculation of balance sheet, cash flow statement, cost of resources
as well as the income statement is provided that can help in understanding the financial
capability of Professional Athletic Academy. Assumptions are made on the startup capital that is
required for setting up the business. At the same time, a detailed list of equipments required
for the development of the Academy is analyzed so that relevant budget can be formed. The
ratio analysis is also done to determine the success or failure that is incurred by the academy in
the competitive market.

Table of Contents
Executive Summary.........................................................................................................................4
1.0 Company profile........................................................................................................................8
1.1 Business Description...............................................................................................................8
1.2 Business Address & Contact Info............................................................................................8
1.3 Owners/Principals..................................................................................................................9
1.4 Business Advisors.................................................................................................................10
1.5 Vision & Mission Statements...............................................................................................10
1.6 Company Values Statement.................................................................................................11
1.7 Business Opportunity...........................................................................................................12
1.8 Industry Analysis...................................................................................................................12
1.9 Industry Trends.....................................................................................................................12
1.10 Business goals and objectives:...........................................................................................14
1.11 Key Success Factors............................................................................................................14
2.0 Marketing Plan.........................................................................................................................15
2.1 The product/ service.......................................................................................................15
2.1.1 Product Description...........................................................................................................15
2.1.2 Pricing strategy..................................................................................................................15
2.1.3 Place/ Distribution Strategy..............................................................................................16
2.1.4 Unique Selling Proposition..............................................................................................16
2.2 Target Markets........................................................................................................................17

2.2.1 B2C.....................................................................................................................................17
2.2.2 Primary, secondary and Tertiary Markets......................................................................17
2.2.3 Size of market..................................................................................................................18
2.4 Marketing Research.................................................................................................................18
2.4.1 Primary Research...............................................................................................................18
2.4.2 Secondary Research..........................................................................................................19
2.5 Competitive Analysis................................................................................................................19
2.5.1 Direct Competitors..........................................................................................................19
2.5.2 Indirect Competitors.......................................................................................................20
2.5.3 Competitive Advantage.....................................................................................................20
2.6 Marketing Strategy..................................................................................................................21
2.6.1 Marketing Objective..........................................................................................................21
2.6.2 Positioning Statement.......................................................................................................21
2.7 Promotional & Sales Strategies..........................................................................................21
2.7.1 Social media Strategies.....................................................................................................21
2.7.2 Marketing Calendar........................................................................................................22
3. Operational plan........................................................................................................................23
3.1 Location................................................................................................................................23
3.1.1 Lease info...........................................................................................................................23
3.1.2 Floor plan...........................................................................................................................23
3.2 Management Team..............................................................................................................24
3.3 Human Resource..................................................................................................................26
3.4 Payroll & benefit structure...................................................................................................27

3.5 Risk Analysis..........................................................................................................................29
3.6 Implementation Schedule....................................................................................................30
4.0 Financial plan...........................................................................................................................32
4.1 Assumption Sheet.................................................................................................................32
4.2 Sources and application of Funds.........................................................................................34
4.3 Detailed Equipment List.......................................................................................................35
4.4 Pro Forma Cash flow Statement..........................................................................................36
4.5 Projected income statement................................................................................................37
4.6 Opening balance sheet.........................................................................................................38
4.7 Closing balance sheet...........................................................................................................40
4.8 Ratio Analysis........................................................................................................................42
4.9 Break-even analysis..............................................................................................................44
Appendices....................................................................................................................................45
Appendix 1..................................................................................................................................45
Appendix 2..................................................................................................................................47
Appendix 3..................................................................................................................................49
Bibliography...................................................................................................................................50

1.0 Company profile
1.1 Business Description
Professional Athletic Academy will train consumers to become professional athletes. The
company will start independent and enter into a partnership after 5 years. We will start in
Ottawa before expanding to Ontario with the aim of expansion in full Canada.
Professional Athletic Academy will specialize in soccer, football, rugby, and basketball through
one-on-one training. All training will be conducted in our facility. Our goal to improve sports in
general in Canada. Canada is always regarded as good in everything, but they need more work
on sports and the right training is required to be provided for a proper professional career. The
best thing with our business is that most of the equipment will stay with the customers.
Professional Athletic Academy will employ high-quality coaches, staff, trainers, professional
players, agent, and scouts. Along with this playing with a professional player will give them the
motivation to train and learn from his experience. We give the players the chance to build a
good relationship with the players, coaches and the scout.
1.2 Business Address & Contact Info
Address: 1385 Woodroffe Ave, Nepean, ON K2G 1V8 Phone: [phone]
Email: info_AC@ algonquincollege.com
Future: Sunnybrook Park Sports Fields, Toronto, ON M3C 3L7 Phone: [phone]
Email: info_AC12@ algonquincollege.com

1.3 Owners/Principals
Hashem Khraibah will be the head manager and trainer. Hashem Khraibah has experience in
training. He played at a high-level soccer in Canada. He played semi-professional with many
different teams and coaches. He had also worked as a coach. In addition to it, he is good with
managing tasks.
Loveleen is going to be the first supervisor of the company. In addition, he is responsible for
making contact with the big teams, professional players, agent and in building a relationship
with them. He has the communication skills and he is smart with closing the deals.
Harsi Dhindsa is going to be the personal fitness trainer and will be responsible for the gym and
workout area. He has been working out for the past 5 years and he knows the ways to create a
healthy food plan and create a good workout schedule for the customers
Japjot Singh will be the one responsible for the safety of the players and the equipment. He will
make sure the business is running well.

1.4 Business Advisors
Name Details Contact details
Tevin Klyde Working at FTA for almost
one-year
Email: Tevin Klyde
@gmaile.com Phone number:
613-863-2739
Nevello Yoseke Coach at FTA also he is a
professional soccer player
Email:
[e-mail]
Phone number: 613-400-8980
Daud Dahir Coach of Surad team with his
dad and has experience in the
industry
Email:
[e-mail]
Phone number: 613-298-8809
Nabeel Ali Legal advisory Email: [e-mail]
Phone number: 819-919-9898
Sohail Massoom Accountant with 2 years
experience
Email:
[e-mail]
m Phone number: 613-700-
4156
1.5 Vision & Mission Statements
Our vision will be to provide the right education and professional training to the customer for a
bright future.

Our mission will be to create a bright future and professional life for the customers. We will
provide everything that the customers need. We will recruit professional coaches and staff that
will help the customers to achieve the goals. Build a friendly environment by helping the people
to know each other and become friends. We will help in creating respect for each other and
treat all of the customers equally. We will provide them with mental education by letting them
take responsibility and decide.
1.6 Company Values Statement
 Healthy life by educating them mentally and giving them high quality training and food
plan
 Provide a bright future by becoming number one in all the sports and start to create
local professional players.
 Giving chances to the young players to become professional

1.7 Business Opportunity
There are many opportunities in our business, which are as follows:
• Giving professional training: We will provide our students the best training by professional
coaches and with professional athletes
• Selling supplements: We are going to sell our supplements for people who work out in our
gym and by providing them with correct information
• Sports Goods: We are going to sell all sports goods and gears in a shop inside our academy
• Nutrition coaching: We are going to provide information about proper health care by
starting some nutrition classes and lessons by the professional teachers
• Organize workshops and seminars: We are going to organize paid seminars by some
professional athletes and experts
1.8 Industry Analysis
The new techniques and methods are invented for training athletes at the next level. As per
growth, the fitness industry is growing very rapidly, and modern people are looking forward to
a fit generation in the future. In a survey, it is founded 27% percent of the total adult
population is attending fitness centers. Modern machines and equipments will be provided for
developing physique.
1.9 Industry Trends
In Professional Training
• One on One training

• Social learning experiences
• Self-Paced Online Training
• Technology
• Mentorship Programs
• In the Fitness Industry
• Strength Training
• Body weight training
• Yoga
• High-Intensity Interval Training

1.10 Business goals and objectives:
▪ Be number one academy in Canada, by developing professional players and getting
them to sign for professional teams
▪ Improve the sports in general in Canada
▪ Give the young talented people a chance to be professional
▪ After 5 years, we would like to grow up my business around Canada and US
▪ After 1 year we would like to increase the staff by 20%
▪ We want to have 25-30 people register for us in the first 6 months
▪ We want to make $10,000 by the end of Feb,1,2020
▪ By the end of 2020, we want to have 60 people register for our business
1.11 Key Success Factors
In sports, the right attitude remains in the skills and the education provided. Hence, it is
necessary to teach them the right techniques so they can understand the game.
The professional training provides high-quality training for each customer
The food plan that we will offer will help them to stay fit and healthy
Manage the tasks and perform them on time. Along with it, manage the money and the cash
flow
Start small then go big and invest with a bit of money not all it
Build long-term relationship with the customers by changing training as per requirement

2.0 Marketing Plan
2.1 The product/ service
2.1.1 Product Description
The Professional Athletic Academy will provide bodybuilding training as well as sports training
for soccer, football as well as rugby players. With these services, the opportunities of
swimming, aerobics & gymnastic will also be served to the customers. In addition, we will
provide education for all the sports; we will have two classes in a week for education to all the
sports. Other than all these services, the diet plans and weight loss programs will be provided
to customers to diversify the product portfolio and access larger segments of the market.
Summary of the training includes:
• Soccer
• Football
• Rugby
• Basketball
• Gym
• Swimming pool
2.1.2 Pricing strategy
The Professional Athletic Academy will serve the customers with cost-plus pricing strategy and
the price will be set using the competitive pricing, which means that reasonable margins will be
set to earn profits. The customers will pay $50 per month to choose a program. The discount

deals will also be offered to the senior citizens as well as students, which will enable the
company to attract a larger number of customers.
2.1.3 Place/ Distribution Strategy
The Academy will be set up in the Ottawa Canada in the area where there are recreational
parks and the colleges, which will enable the men and women to join the center according to
their schedules. The selection of area will enable the customers to visit the academy, which is
located near the customers. The company will develop a website so that customers can get
access to all the services and choose their fitness plans as per their own requirements.
2.1.4 Unique Selling Proposition
The unique selling proportion of athletic academy is that the company will introduce the
different programs, which will be devised by the customers according to the preferences. The
personalized plans according to the requirements of the customers will be the unique selling

proportion of the company which will enable the company to achieve a competitive advantage.
The extraordinary quality with the latest technological equipment will also add quality to the
provided services.
2.2 Target Markets
The academy will target the diverse range of customers, which includes Adult men and women
with the age range of 19 years to 30 years as well as juniors of age 10 to 18 years. Other than
these athletes, professional players, healthy people, college students, high school students and
people interested in the fitness will be targeted. With the help of these customers, the
company will be able to achieve the corporate objective very easily. This diversified customer
segments will enable the company to make changes in the revenue stream leading to a
decrease in the risks of business failure.
2.2.1 B2C
To sell the services to the customers the company will use the B2C process with the help of
which the services will be sold online. The company website will allow the customers to select
their own program for fitness or any training plans and pay their fees using the online payment
method. With the help of this process, the consumers will be provided with the ease of access
selecting the services required while sitting at their homes.
2.2.2 Primary, secondary and Tertiary Markets
The primary market of the company includes main athletes and professional players who are
passionate to engage in extraordinary training for their career growth. On the other hand, the
secondary markets of the company include the college students, school students as well as

university students. The territory markets of the company will include the public including adult
men & women who want to lose their weight and want personal trainers for weight loss
programs.
2.2.3 Size of market
The market size of the company will reach up to $300,000 in the coming 3 years and it is
estimated that the market size will be achieved with the assistance of competitive strategies by
understanding the trends of the industry. The effectiveness of the business operations will
allow the company to achieve up to 25% of market share in the coming year. In addition, we
will grow our business in different area of the city by 2020.
2.4 Marketing Research
2.4.1 Primary Research
For the primary research, an analyst will be hired who will conduct macro and micro
environmental analysis with the assurance of different analytical tools such as SWOT

analysis, Pestle as well as Ratio analysis. The reports of the analysts will be used to devise
different suitable business strategies.
2.4.2 Secondary Research
For the secondary research, the previously published reports of the industry and the companies
in the same market will be analyzed as these reports will provide a deep insight regarding the
trends of the industry. Moreover, the competitor's annual reports will also be analyzed to
understand their strategies and their key strengths.
2.5 Competitive Analysis
The Canadian are becoming conscious about their health and fitness with the passage of time
as the level of obesity is increasing with the passage of time and this rate have increased to an
alarming level. Survey conducted in the year 2017 reported that 64% of Canadian adults who
are at the age of 18 are obese or overweight (Young, 2018). The children at the age of 5 are also
recorded as obese as they were also overweight in their childhood. This alarming level is
increasing the demand for fitness clubs and diet training programs among the Canadians
(Canada Obesity Report, 2017).
2.5.1 Direct Competitors
The direct competitors of the Academy will be those fitness clubs and training institutes of
Canada, which provides the same services to customers. The following table indicates the direct
competitors of the companies operating in Canada (Smith, 2018).
Ranking Competitors Region
1 Opsmpro Ottawa

2 180 hundredeigh Toronto
3 FTA Ottawa
2.5.2 Indirect Competitors
Many indirect competitors provide competition to the company and these indirect competitors
include the sellers of fitness machines and accessories to use at home. The major indirect
competitor of the company includes YMCA-YWCA, Good life Fitness and many others.
2.5.3 Competitive Advantage
We will not only provide the fitness training but also, different recreational activities will be
provided for the enjoyment to make the time of the customers worthy. In the academy, the

people will be able to make friends while getting their fitness training. At the same time, the
right education for all the sports will be provided. Moreover, the well-diversified product
portfolio of the academy will enable us to achieve the competitive advantage as after joining
the academy they will be able to get access to all required services at one place.
2.6 Marketing Strategy
2.6.1 Marketing Objective
The marketing objective of the company will be to make the customers aware of all the services
that the company provides. With the assistance of marketing strategies, the larger segment of
the customers can be communicated very easily,
2.6.2 Positioning Statement
Our mission will be to provide the customers with entertainment, friendly and innovative
environment to the customers and to provide uncompromising and extraordinary quality of
services.
2.7 Promotional & Sales Strategies
2.7.1 Social media Strategies
For the marketing with the assistance of social media, we will give advertisements using
Facebook and YouTube as well as through Flyer. These ads will be used to promote the services
provided to the customers to attract a diverse range of customers from different regions. The

social media posts will also be created in which different videos will be uploaded to attract
customers to join our professional authentic Academy.
2.7.2 Marketing Calendar
The following is the marketing calendar of the company in its first year
Quarter 1 Quarter 2 Quarter 3 Quarter 4
Facebook Ads
YouTube posting
Flyer

3. Operational plan
3.1 Location
3.1.1 Lease info
We are planning to get all training types of equipment and other machinery on lease from
abandoned or developed gyms. We will use the finance lease option, which will lead towards
the ownership of the product at the end of the lease agreement. The equipments that will be
leased are cardio equipment, fitness equipment, recumbent exercise bike, treadmills and other
machinery. The company will also buy the balls and the soccer/football equipment as it is of low
cost and comes as a package.
The place will be located in Barrhaven and it is a 170-acre part. The best thing about the site is
it has all the things we needed. It is also near Highway and airport and train stations. The rent
will cost us $6000 per month that accounts for electricity, use of gym equipments and for
providing salaries to the trainers. The place can be reached via car or bus. The decision to
choose that area is because it is one of fastest growing areas of Ottawa, with 28 schools around
it and it is a family-oriented community. In addition, around the area there is over 500 business,
local shop and restaurants. A gym will help every family so that their kids can grow up in
healthy area. At the same time, free parking and rest rooms will be provided to the parents.

3.1.2 Floor plan
The Floor plan is developed with the intention to ensure the perfect setting of the different
machinery as well as the best utilization of space (Designblendz, 2018). The following picture
indicates the floor plan of the academy representing the allocation of space to the different
activities. The size of the floor plan is about 3500 square feet.
The operating of
swimming pools need to
be based on the level of
water provided and the availability of the cleaning staffs. There need to be strict rule about
using the swimming pool and the clothes that are required to be worn while in the pool. For
example, people coming from outside or immediately after a match cannot enter the swimming
pool unless they wash themselves in the rest room. At the same time, every day the swimming
pool needs to be cleaned so that change of water can be ensured. A fixed time such as 1 p.m
can be fixed for cleaning the pool.
3.2 Management Team
The management team of the company will be given higher importance as the managerial skills
and expertise are very important to run the business operations smoothly and effectively
(Fayol, 2016). It is the key for each business to seek for gaining success. In this regard the

company will be managed by the owner (Hashem) managing the central operations of the
business. The company will hire a financial manager to look after all the financial operations of
the enterprise. The owner has already completed an MBA degree and possesses prior working
experience in a gym, which will assist him to understand the different activities of the business.
The head manger will be Hashem Khraibah and the assistant manager will be Lovelee. Pool
manager will be Japjot and the Gym manager will be Harsi.
 Head manger is responsible to achieve the daily and weekly targets, and coach the
soccer/football athletes
 The responsibility of the assistant manager is to deliver superior customer service and
achieve daily and weekly targets
 Pool manager has the responsibility of maintaining safety of the customers and
cleanliness of the pool water
 The responsibility of the gym manager is to provide the customers with the right
training and monitor the gym area. The right training includes providing opportunities
for conducting skill drills and practicing complex shots and tactics for the development
of skills. At the same time, the gym manager needs to ensure that effective fitness
programs and charts are developed so that the customers are not guided in an improper
manner.

3.3 Human Resource
The human resource is important for managing and organizing the workforce of the company
(Bianca, 2018). Due to its effectiveness in the business, the company has decided to hire a
human resource manager who will handle the managerial activities and the employees of the
company. The personnel of the company will consist of manager from different sections as well
as trainers who will work under these managers. The job descriptions of the managers and the
employees include:
Reception: Two people in the front disk will be paid $17/h 7 days a week. The job description
will be to welcome the customers and guide them to the required facilities that they need to
avail. They will be needed to maintain the records of the staffs and the customers such as entry
and exit records.
Gym trainers: Will be paid $30 000-$60 000 a year. They will be needed to guide the customers
and maintain the healthy and fit status of each customer so that they remain free from any
form of injuries.
Coaches: Coaches will be paid $20/h for 7 days a week. The coach will provide training in
specific areas such as maintaining the drills, taking shots and defending the shots. Morale
support will also be provided.
Cleaner: They will be paid $18/h 7 days a week. The job description will be to keep the floor and
its surrounding premises clean. Swimming pools will need to be cleaned on a regular basis
Lifeguard: About $18/h for 7 days, a week will be paid to the lifeguards. The job description will
be to ensure that new people learning to swim does not try out professional stunts that might
pose life risks. Awareness at all time is required from the lifeguards.

Pool manger: Pool managers will be paid $20/h for 7 days a week. The job role of the pool
managers will be to ensure that the pool area is kept clean and that rules for accessing the
pools are followed by the people. Any discrepancies will be reported to the chief HR.
Gym manger: $20/h for 7 days a week will be paid to the gym managers. The job description
will be to provide instructions to the people using the gym, making the rules and ensuring that
equipments used is at a useable state so that accidents can be avoided.
Assistant manager: The assistant managers will be paid at $20/h for 7 days a week. The job role
will be to provide support to the head manager by dividing the work force and to make sure
that every employee follows the rules of the company.
Head manger: The head managers will be paid $26/h for 7 days a week. The job description will
be to make critical decisions for the company and provide an idea about the budget that needs
to be implemented for the purchase of equipments or for hiring lifeguards, coaches and
trainers.
3.4 Payroll & benefit structure
Job level Pecent of Payrolls
Annually Every Two
Years
Every Three
Years
Other/Varies No Formal
Ranges for
Job Level
Top
executives
60% 8% 5% 8% 19%

Non
executives
40% 9% 7% 6% 1%
The payroll and benefit structure is calculated in terms of payments provided on a yearly basis.
The top executive and the non executives are provided with the pay structure based on the
profits earned by the company. Any form of promotion or recognition earned also warrantes
some form of payscale for the executives.
Methods used to design salary range structures
(Source: AICPA 2019)
The point factor and the market pricing help in determining the relative score of a job. The
company provides various job opportunities to the people and the salary range of the jobs be
decided by the magnitude of the job. The analysis show the percentage of the method that
determines the method adopted in order to provide salary to the employees.

3.5 Risk Analysis
The risk management is important for the business as the company cater the different types of
the risk with the assistance of different approaches of risk management. The practical attention
or identification towards the management risk will bring advantage for long term towards the
Academy of the professional athletic. The clients will consist of a level of self-assurance so that
safety with respect to the risks is maintained. The benefit that the company can gain is the
experience towards the mitigation of the risk by using modern methods so that the overall
management of the business can be taken into account.
Here is some of the risk analysis
• Lawsuit and injures are the most common risks that can occur at the gym and the field.
We can prevent injuries from occurring by teaching the customers the right way of using
the equipment and the manner in which the exercises can be done in a correct manner.
• Damage to gym/equipment/facility is the second most common risk can occur in our
company. We will teach them and provide some instruction about using the equipment
to minimize the chances of damage. We will check the equipment at regular intervals of
one week to make sure everything is safe for the customers.
• Money and financial risk can be mitigated by managing the money to stay competitive
during the setting up of small business. Hiring a financial manager to manage the money
can help in formulating a plan and set up goals to achieve it.

• It is easy to lose a reputation despite working hard to gain it back. We will apply ethical
rules that will be followed in our company. Some of the ethical rules include, no
discrimination of the customers, pool rules like washing the body before entering the
pool, using the equipments and replacing them in the areas that it had been taken from
and ensure that policies such as payment be maintained.
• Natural risk, the snow and the rain might cause a risk to our company and we have to
monitor such activities and remain ready for it before it occurs. Insurance for natural
disasters will be made so that we can reduce any form of financial loss (AICPA 2019).
3.6 Implementation Schedule
The implementation plan emphases on the institutional tactics or strategies that will be
specified, as it would use to the initiatives of strategic or associated goals to be achieved. Due
to the increase of five areas of interdisciplinary would understand in the plans of strategically
aligned the departments or colleges, for the progress of the new doctoral programs or masters,
or for the formation of new businesses structures (e.g. multi-disciplinary entities, centers,
institutes, and other)
As it focuses on the effort of the institute, by the progress of the Academy of Professional
athletic forecast it directs that relates towards organizations ability to give needed resources
through every tactics or strategy. As most of the priority, actions are high items that are
required for the resources of the budget, but it requires effort or time of the community on
sections. There is the major resources that can be processed by the company are energy or

talent by the staff, according to the customer or staff then this effort must design by the
objectives of strategic that can be efficient. The most significant element for the flexibility
process that make the adjustment course, reallocate resources or revise strategies but when it
is more necessary. Furthermore, the mutual culture of accountability ineffective
communication or all levels that would assist according to the goal achievements framework.
In the related tactics or dissimilar strategies that needed to disclose the five initiative of the
overall academy of Professional athletic signifies clear guidelines for the plan of
implementation. As every method is charted towards answerable entities or within the divisions
or other units of constitute by vice presidential. The Areas that is for the cross-functionalmight
give a lecture by special forces task is recognized through the senior leadership or President.
In the additional part, the plan of strategic implementing would be responsible for every unit of
a variety of tactics to maintain the goal or plans of the work. The brief plans about the work
must allocate or identify the personnel, budgetary, space resources or personnel that need
towards the report of every method near or at every final year beginning. According to plan, we
must recognize the performance that possible metrics of every method; though, it further
endorses the liability review units of these determinants or metrics for the last set that dealings
the progress of demonstrating by every method that is going to implement on the Academy of
Professional athletic for the plan of business.
To do list Time Status
Industry Research 1 February Done

Development of Business
Plan
15 March
Acquiring Finance 20 March
Signing Lease 25 March
Leasehold 1 April
Register the business 10 April
Find a lawyer for the
business
15 April
Rent the equipment 20 April
Get the enough employs 20 April
Grand Opening 15 May
4.0 Financial plan
4.1 Assumption Sheet
Our company created assumption sheet to let us know about the running of our finance and
the money we need. After conducting research, we found that the revenue in the Fitness
segment had reached $266m in 2019 with a growth of 6.1% resulting in a market volume of

$338m by 2023. This is based from the evidence provided in the Statistics Portal website. We
are expected to have 40-50 costumers a day in our location, because our business is still small,
and this is based on FTA Academy information. Our business will also have same amount of
customers at the beginning that range from 40-50. 70% of the costumers use the practice field
and 30% use the gym zone and the fitness area. Let us say that 60% of the costumers have
membership which is 40*30= $1200 per month. Let us assume the rest they get within a day is
through day pass. The day pass cost $7.00, 15*7= $105 per day. $1200* 12 months will be
$14,400 per year, and $105* 365 day will be $383,25 per year. In total it will be $52,725. We
will start with 4 staff at a payment of $20 per hour and we will increase the staff members with
the increase in costumers. The financial plan is prepared based on the important assumptions
which are represented in the table indicated below. These assumptions are annual based and it
is recognized from the initial stage that these collection days are very important, but these are
not the main factor, which can be influenced very easily. It is also assumed that the interest
rate burden on employees & tax rates all are based on realistic and conservative assumptions.
Other than these most important assumptions are;
 Assumption that the economy is strong and there is not major recession
 It is also assumed that there is not any change in the economic policy in the coming
years which can make products of our clients obsolete and outdated
The below table indicates the major financial assumptions of the business plan
Rate of interest 10%
Rate of interest for long term 10%
Taxation rate (Canada tax rate) 15%

4.2 Sources and application of Funds
The finance for the academy will be gained from the two main sources. One would be personal
investment while other will be loan which will be gained from the bank. 50% investment will be
the part of personal investment while the remaining investment will be sourced with the
assistance of bank. All of the finance will not be used instantly in the academy and most of
machinery and equipment will be taken on lease to be on the safe side. The company has
planned to make investment time to time and make improvement in the academy will be made
after the customers will start to enroll in the academy. The figures are assumed
Sources of Funds
year 1
Equity $950,000
Loans/Debt $950,000
Total sources of Funds
$1,900,0
00
Application of Funds
General startup cost
Organizational Cost $500,000
Prepaid Expenses 0
Opening inventory /Office supplies $100,000
Facility costs

Cost of equipments $200,000
Cost of forming policies $150,000
Cost of recruiting trainers $250,000
Total startup cost
$1,200,0
00
Leasehold Improvement $50,000
Equipment cost $20,069
Total Application of Funds
$1,270,0
69
Remaining Funds (Cash reserves) $629,931
4.3 Detailed Equipment List
There are equipments, which are necessary to run the activities by the customers at gym.
Therefore, the detailed equipment list is prepared to ensure the availability of all equipments in
the fitness academy.
There is the need of more assets as the Academy will be providing services related fitness;
therefore, the users will use more equipment. In addition, users will also need more than one
pair at a time as without the equipments the operations of the academy may be compromise. It
has been estimated that the cost of equipment’s will be $10069 in the first year. In next year,
cost will increase as these users and demand will increase. Therefore, cost estimation also has been set
as per the requirements. Given below is the cost of each item for the academy with the prices mentioned.
Description Estimated cost ($)
Dumbbells 500

Treadmills 659
Fitness Equipment 200
Power Tower 500
Stair Climbers 600
Recumbent Exercise 210
Inversion Table 200
Yoga mats 100
Weights and Barbells 600
Cardio Equipment 500
Boxing equipment’s 200
Fitness Accessories 500
Activity trackers 200
Strength training 500
Weight bench Set 500
Body Rider 3500
Everlast 100
Body Massager 500
Total 10069
4.4 Pro Forma Cash flow Statement
(Refer to excel file)

4.5 Projected income statement
It is assumed that the sales of the Academy in its first year in business are $224,000. Based on the assumption, a
projected income statement of the company is being prepared.
Year 1 ($)
Sales 224000
Direct costs 0
Total cost of goods sold 0
Gross profit 224000
Operating Expenses
Rent 12000
Utilities 4500
Salaries-Employees 18120
Advertising 6000
Office Supplies 400
Insurance 2400
Maintenance and cleaning 2500
Professional fees 2500
Payroll taxes 8000
license’s 1000
Telephone 2000
Depreciation 2510
Other Expenses 2000

Total Operating Expenses 63930
EBIT 160070
Tax 0
Interest 5578
Net Profit 58352
4.6 Opening balance sheet
Opening balance sheet
Assets
Year 1 ($)
(1st April
2019)
Year 2 ($)
(1st April
2020)
Current assets
Cash and marketable securities 43,500 70,000
Account receivables 63,974 48,000
Inventory/ office supplies 3,000 4,000
Prepaid Expenses 2,000 1,000
Other current assets 6,000 7,500
Total current assets 118,474 130,500
Fixed assets
Equipment’s/Furniture/Fixture 20,000 30,000
less: depreciation 1,500 8,000
Leasehold improvement 3,000 2,200

Land/Building 4,000 3,000
Vehicles 64,000 50,000
other fixed assets 9,500 15,500
Total fixed assets 102,000 108,700
Other assets 1,500 13,500
Organizational fees 1,000 700
Total other assets 2,500 14,200
Total Assets 222,974 253,400
Liabilities
Current Liabilities
Short term loans 2,500 2,000
Account Payables 3,000 4,200
other current liabilities 5,000 3,500
Total Current liabilities 10,500 9,700
Long term Liabilities
Long term loans 62,000 62,000
Mortgage payable 3,000 4,000
Loan from shareholders 1,000 2,000
other long-term debts & obligations 5,700 3,500
Total long-term Liabilities 71,700 71,500
Total Liabilities 82,200 81,200

Equity
Equity at the start of period 65,000 35,000
Plus, profit 60,000 250,500
Minus: owner Drawings 0 0
Total Equity 125,000 285,500
Total Liabilities & Equity 207,2000 366,700
4.7 Closing balance sheet
Closing balance sheet
Assets
Year 1 ($)
(31st March
2020)
Year 2 ($)
(31st March
2021)
Current assets
Cash and marketable securities 23500 90000
Account receivables 23974 68331
Inventory/ office supplies 1000 3000
Prepaid Expenses 0 0
Other current assets 3000 4500
Total current assets 51474 165831
Fixed assets
Equipment’s/Furniture/Fixture 10069 29729
less: depreciation 2510 8710

Leasehold improvement 1000 1200
Land/Building 0 0
Vehicles 74000 80000
other fixed assets 7499 35000
Total fixed assets 95078 154639
Other assets 4500 33500
Organizational fees 1500 1700
Total other assets 6000 30000
Total Assets 152552 350470
Liabilities
Current Liabilities
Short term loans 1500 0
Account Payables 1000 1200
other current liabilities 2000 1500
Total Current liabilities 4500 2700
Long term Liabilities
Long term loans 42000 42000
Mortgage payable 2000 1887
Loan from shareholders 0 0
other long-term debts & obligations 700 3500
Total long-term Liabilities 44700 47387

Total Liabilities 49200 50087
Equity
Equity at the start of period 45000 45000
Plus, profit 58352 255383
Minus: owner Drawings 0 0
Total Equity 103352 300383
Total Liabilities & Equity 152552 350470
4.8 Ratio Analysis
Ratio analysis is a tool which is used to measure the performance of the company over the period of time with the
assistance of different types of the ratios. The following table is indicting the ratios of the
Year 1 Year 2
Current Ratio Times 11.43867 61.41889
Debt to Equity Ratio % 43.25025 15.77553
Gross Margins % 100 100
Net Profit Margins % 26.05 85.12767
ROI % 38.25056 72.86872
ROE % 56.45948 85.01913
Current ratio times are calculated by dividing the total current assets by the total current
liabilities. In this case, the calculation is made on the closing account of both the years. It is seen

that in the second year the current ratio times have increased which proves that the company
has done well within the year.
The calculation of the debt to equity ratio is made by dividing the operating income with debt
services. In this case, it is seen that the 2nd year debt to equity ratio is better than the first year.
This indicates that the financial leverage of the company is high in the second year.
The gross margin % is calculated by the gross margin and the revenue. In this case, it is seen
that the gross margin % is same for both years which indicates that not much improvement has
been made in the company over the two years.
The net profit margin % is calculated by dividing the sales revenue by the net income. The
calculation shows that the net profit margin of the Academy has decreased in the second year
indicating that the expenses of the company have decreased. This is good as the company can
enhance its profit
The calculation of the ROI is done by Net Profit/Total investment*100. The calculation shows
that there is an increase in the ROI of the company, which means that the cost of investment
has yielded high results for the company.
The calculation of the ROE is done by dividing the net income by the equity of the shareholders.
The result shows that the ROE of the Academy has increased which means that the return from
the assets is high of the company.

4.9 Break-even analysis
The break-even analysis is done by dividing the desired profit by the contribution margin and
adding with the break even units. In this case, the break-even analysis is done by using the
following:
Break even analysis of year 1
26.05/100=0.26
Break even analysis of year 2
85.12/100=0.8512

Appendices
Appendix 1
Opening balance sheet
Opening balance sheet
Assets
Year 1 ($)
(1st April
2019)
Year 2 ($)
(1st April
2020)
Current assets
Cash and marketable securities 43,500 70,000
Account receivables 63,974 48,000
Inventory/ office supplies 3,000 4,000
Prepaid Expenses 2,000 1,000
Other current assets 6,000 7,500
Total current assets 118,474 130,500
Fixed assets
Equipment’s/Furniture/Fixture 20,000 30,000
less: depreciation 1,500 8,000
Leasehold improvement 3,000 2,200
Land/Building 4,000 3,000
Vehicles 64,000 50,000
other fixed assets 9,500 15,500

Total fixed assets 102,000 108,700
Other assets 1,500 13,500
Organizational fees 1,000 700
Total other assets 2,500 14,200
Total Assets 222,974 253,400
Liabilities
Current Liabilities
Short term loans 2,500 2,000
Account Payables 3,000 4,200
other current liabilities 5,000 3,500
Total Current liabilities 10,500 9,700
Long term Liabilities
Long term loans 62,000 62,000
Mortgage payable 3,000 4,000
Loan from shareholders 1,000 2,000
other long-term debts & obligations 5,700 3,500
Total long-term Liabilities 71,700 71,500
Total Liabilities 82,200 81,200
Equity
Equity at the start of period 65,000 35,000
Plus, profit 60,000 250,500
Minus: owner Drawings 0 0

Total Equity 125,000 285,500
Total Liabilities & Equity 207,2000 366,700
Appendix 2
Closing balance sheet
Closing balance sheet
Assets
Year 1 ($)
(31st March
2020)
Year 2 ($)
(31st March
2021)
Current assets
Cash and marketable securities 23500 90000
Account receivables 23974 68331
Inventory/ office supplies 1000 3000
Prepaid Expenses 0 0
Other current assets 3000 4500
Total current assets 51474 165831
Fixed assets
Equipment’s/Furniture/Fixture 10069 29729
less: depreciation 2510 8710
Leasehold improvement 1000 1200
Land/Building 0 0

Vehicles 74000 80000
other fixed assets 7499 35000
Total fixed assets 95078 154639
Other assets 4500 33500
Organizational fees 1500 1700
Total other assets 6000 30000
Total Assets 152552 350470
Liabilities
Current Liabilities
Short term loans 1500 0
Account Payables 1000 1200
other current liabilities 2000 1500
Total Current liabilities 4500 2700
Long term Liabilities
Long term loans 42000 42000
Mortgage payable 2000 1887
Loan from shareholders 0 0
other long-term debts & obligations 700 3500
Total long-term Liabilities 44700 47387
Total Liabilities 49200 50087
Equity

Equity at the start of period 45000 45000
Plus, profit 58352 255383
Minus: owner Drawings 0 0
Total Equity 103352 300383
Total Liabilities & Equity 152552 350470
Appendix 3
Floor plan

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