Instructional Video (note there have been some upgrades since this video):
Starting a gym or any kind of fitness center where customers join and pay a monthly fee can be very rewarding. You are helping people get in shape and also potentially earning a great income at the same time with the right management and focus. This financial model is used as a big calculator.
The user starts by inputting the expected start year and start month of revenue as well as their assumptions about how much it will be to purchase new equipment / building / development and how much of that will be financed vs. contributed with equity.
The on-going operating expenses are defined with up to 46 slots that all have their own start month and monthly cost per each of the 10 years of this model. CapEx is built on its own schedule.
For revenue, the configuration is fairly simple. Enter the starting member count and then the members added per month in each of the 10 years as well as the monthly price customers will pay accordingly. There is a section for churn in order to account for the loss of users over time (as this is a natural thing that happens).
There is a nice output that is based on all of these assumptions shown on a monthly and annual basis and goes down to EBITDA and cash flow as well as EBITDA per user. Additionally, there is an Executive Summary that shows the high level financial results, IRR, Return on Equity, and DCF Analysis. There are two DCF Analysis areas. The first is based on the cash requirement being deployed in the year it is needed and the second is based on all equity requirements being deployed up front. There is a breakdown of the project, owner, and investor view for total cash contribution and distributions.
To account for a terminal value, the exit month can be input and the resulting exit valuation is based on a percentage of revenue or EBITDA multiple depending on which is selected.
6 Visualizations are included that show key metrics, cash flow, and member summary across 10 years.