Managing Finances for a Personal Training Business

PROJECT: You are now ready to start develop a financial

plan for your new Personal Training Studio. Please use
the information in your Business and Marketing plans
when completing this document.

1. Most startup businesses will require the assistance of specialist services (for example accountants
and solicitors) in order to get up and running. What specialist services do you need to engage in
order to profitably operate your business? Use the internet to locate these services in your area and
list their details below:

Specialist Service Company Website List of Services they Provide

2. All businesses have a cost associated with starting up. Use the table below to estimate the startup
cost for your particular business plan. Depending on your business plan there will be areas that are
not applicable – please mark these as NA. Note that costings need to be accurate estimates.

START-UP COSTS Cost ($)

Registrations  
Business name  
Licences  
Permits  
Domain names  
Trade marks/designs/patents  
Vehicle registration  
Membership fees  
Accountant fees  
Solicitor fees  
Rental lease cost (Rent advance/deposit)  
Utility connections & bonds (Electricity, gas, water)  
Phone connection  
Internet connection  
Computer software  
Training  
Wages  
Stock/raw materials  
Insurance  
Building & contents  
Vehicle  
Public liability  
Professional indemnity  
Product liability  
Workers compensation  
Business assets  
Business revenue  
Printing  
Stationery & office supplies  
EQUIPMENT/CAPITAL COSTS  
Business purchase price
Franchise fees
Start-up capital
Plant & equipment
Vehicles
Computer equipment $1000
Computer software
Phones
Fitness Equipment
Office equipment
Furniture
Shop fitout
Total equipment/capital costs
TOTAL START UP COSTS $
3. You have realized that your business is going to require capital (a lump sum of money) to get
started.
a. According to your Startup Cost analysis, how much money do you predict you will need?
___________________________________________________________________________

b. Research three (3) ways you can borrow the capital you require to start your business

Financial Institution Website Method of Borrowing

1
2
3

4. When you approach a financial lender, along with your Business and Marketing Plan you will be
required to develop a profit and loss forecast to show that your business has the potential to
become profitable. Use the ‘Profit and Loss Forecast’ table below to complete this task. Note you
need to complete all three months and provide realistic estimates of sales and cost. Place NA in any
column that does not apply to your business.

Profit & Loss Forecast for [enter business name]

PROFIT & LOSS Month 1 Month 2 Month 3
Sales      
Other income
Gross profit/net sales $0 $0 $0
Expenses      
Accountant fees      
Advertising & marketing      
Bank fees & charges      
Interest on Loans      
Credit card fees      
Utilities (electricity, gas,
water)      
Telephone      
Rent & rates      
Motor vehicle expenses      
Repairs & maintenance      
Stationery & printing      
Insurance      
Superannuation      
Wages      
GST $0    
Total expenses $0 $0 $0
 NET PROFIT (Net Income) $0 $0 $0

5. Your chosen financial institution has agreed to lend you the capital that you require to start your
business. Your loan is unsecured and attracts an interest rate of 7.8% for 5 years. Use the ‘ Business
Loan Calculator’ to calculate your loan repayments.
a. Security Type: ______________________________
b. Loan Amount: ______________________________
c. Loan term: ______________________________
d. Interest rate p.a: ______________________________
e. Monthly repayment: ______________________________
f. Total interest payable: ______________________________

6. A balance sheet is a snapshot of what a business owns (assets) and owes (liabilities) at a specific
point in time. A balance sheet is usually completed at the end of a month or financial year and is an
indicator of the financial health of your business.

A balance sheet is in two sections:

Assets – including cash, stock, equipment, money owed to business,

Liabilities – including loans, credit card debts, tax liabilities, money owed to suppliers

Your Working Capital is calculated by taking your total Liabilities away from your Total Assets. Place NA
in any areas that do not apply to your business plan.

BALANCE SHEET [Month 1]

Current assets $0
Cash
Inventory  
Pre-paid expenses  
Fixed assets $0
Property & land  
Furniture & fitout  
Vehicles  
Equipment  
Computer equipment  
Total assets $0
Current/short-term liabilities $0
Credit cards payable  
Accounts payable  
Interest payable  
Accrued wages  
Income tax  
 Long-term liabilities $0
Loans  
Total liabilities $0

WORKING CAPITAL (Total

$0
Assets minus Total Liabilities)

7. Identify your financial performance indicators.

The KPIs are

8. Set a minimum of three (3) financial performance targets.

Operating Expense Ratio

9. Outline all the methods of payment that you accept within your Personal Training Business.

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10. State your policy on clients with outstanding debts.

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