Fitness Club BusinessFitness Oub Buxiness

Beguizementa

Locited in Banglak down town $($business mone$)$

Trget goup is middle to high inoce poople $(50,000$ buht or greatera moenth$)$

Area between $250m^2$ and $600m^2$ with $10$ years rental period. Monthly rentul ate is

approsimately $(300$ up to $600$ Baht per $m^2)$

Initid decoation inclading furniture is approcimasely $2,000$ up to $4,000$ baht per square

mater of usage area.

Fully equipped with all common types of exexise machines and associatod equipment. A

cost at one time purchase can be estimated approsimately $3,000$ up to $6,000$ baht per

square meter of usage aren.

Open $7$ das a week form $6000$ until $22$:$00.$

At laast $5$ certified trainers on dury during busiest hours.

Number of other wodees such as adm inistative offices, froet desk, jinitos, facil iny

techniciuss should be assumed as appropriase.

Question

You ase asked to choose a size of the dub as given by your nume and define minitial

imestment cost.

Emu $=250m^2$

$sinen=325m^2$

Songmanit $=400m^2$

Seask $=475m^2$

Fabrice $=550m^2$

appopaviase

Figure out monthly expenses, eg$,$ ontal, employee salay, utilities, maintenanoe, maketing

and advertisement, and so ce$.$

Generate expected income from membership rate and number of members. Estimation of

number of club members should be seal istic to the dub service capacing $($usage area$)$ and be

consenative.

Develop a foocasted $10$ year$-$cash flow in Excel in order to find:

Payback period

NPV

Use a minimum expeded return rate $10\%,$ infleion rate $3\%$ and tax ate

Requirements

$$ Located in Bangkok down town $($business zone$)$

$$ Target group is middle to high income people $(50,000$ baht or greater a month$)$

$$ Area between $250$ m$2$ and $600$ m$2$ with $10$ years rental period. Monthly rental rate is

approximately $(300$ up to $600$ Baht per m$2$

$)$

$$ Initial decoration including furniture is approximately $2,000$ up to $4,000$ baht per square

meter of usage area.

$$ Fully equipped with all common types of exercise machines and associated equipment. A

cost at one time purchase can be estimated approximately $3,000$ up to $6,000$ baht per

square meter of usage area.

$$ Open $7$ days a week from $6$:$00$ until $22$:$00.$

$$ At least $5$ certified trainers on duty during busiest hours.

$$ Number of other workers such as administrative officer, front desk, janitor, facility

technicians should be assumed as appropriate.

Question

$1.$ You are asked to choose a size of the club as given by your name and define an initial

investment cost.

Emu $=250$ m$2$

Yoon $=325$ m$2$

Songmanit $=400$ m$2$

Serasak $=475$ m$2$

Fabrice $=550$ m$2$

$($Hint: don$$t forget to include rental deposit and some other social$/$public relation costs as

appropriate$)$

$2.$ Figure out monthly expenses, e$.$g$.$ rental, employee salary, utilities, maintenance, marketing

and advertisement, and so on$.$

$3.$ Generate expected income from membership rate and number of members. Estimation of

number of club members should be realistic to the club service capacity $($usage area$)$ and be

conservative.

$4.$ Develop a forecasted $10$ year$-$cash flow in Excel in order to find:

$$ Payback period

$$ NPV

Use a minimum expected return rate $10\%,$ inflation rate $3\%,$ and tax rate $20\%.$

$5.$ Give comments on your analysis result and recommendation on this investment.

Hint: Search data as much as possible for reasonable assumptions of the expenses and incomeFitness Club Business

Requirements

Located in Bangkok down town $($business zone$)$

Target group is middle to high income people $(50,000$ baht or greater a month$)$

Area between $250m^2$ and $600m^2$ with $10$ years rental period. Monthly rental rate is

approximately $(300$ up to $600$ Baht per $m^2)$

Initial decoration including furniture is approximately $2,000$ up to $4,000$ baht per square

meter of usage area.

Fully equipped with all common types of exercise machines and associated equipment. A

cost at one time purchase can be estimated approximately $3,000$ up to $6,000$ baht per

square meter of usage area.

Open $7$ days a week from $6$:$00$ until $22$:$00.$

At least $5$ certified trainers on duty during busiest hours.

Number of other workers such as administrative officer, front desk, janitor, facility

technicians should be assumed as appropriate.

Question

You are asked to choose a size of the club as given by your name and define an initial

investment cost.

$E=250m^2$

Yoon $=325m^2$

Songmanit $=400m^2$

Serasak $=475m^2$

Fabrice $=550m^2$

$($Hint: don t forget to include rental deposit and some other social$/$public relation costs as

appropriate$)$