Planned Expenditures

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5.2 Itemized Planned Expenditures
Planned expenditures for Power Hour Fitness would include a facility for the company, the equipment used for working out, massage tables and utilities, and the payroll for the personnel. These are the items that will have to be paid for when first starting the business and throughout the time the business is open and operating. The building purchased for the fitness center will cost $32.86 per square foot adding up to $492,852.20 for the total cost of the building.
Gym equipment needed for the facility will be purchased from the company Gym Starters. This company offers various packages for gym equipment. The chosen package for the gym costs $225,534 and is the package Gym Starters offers that consists of …show more content…

A total of eighteen workers will be hired for the operations of Power Hour fitness. This facility will need $295,924.80 to accommodate payroll expenses for the personnel for a year. There will be six front desk workers making $7.65 an hour. If worked the approximate 28 hours a week, Power Hour Fitness will pay $1,285.20 a week and $66,830.40 a year. Power Hour Fitness will hire four supervisors who will work approximately 24 hours a week making $12.00 an hour. The company will pay $1,152 a week and $59,904 a year to the supervisors. There will be four personal trainers for the company each making $17.00 an hour. Three of the trainers will work 20 hours a week and one will work 40 hours. The expenses for hiring the personal trainers will be $1,700 a week and $53,040 a year. Two massage therapists will be hired for the daily massages the company will offer and will each work approximately 20 hours a week making $19.88 an hour. The company will pay $795.20 a week and $41,350 a year to hire the massage therapists. Lastly, the Marketing Manager and Financial Manager will each work 40 hours a week and make $18.00 an hour. The managers will be paid $1,440 a week and $74,800 a …show more content…

Once word gets passed along and advertisements are at its peak, more people will begin to use Power Hour for their fitness needs. The target market is projected to stay the same or grow, as more people will want to stay fit or lose weight. This will help with the stability of the company as there is security the company will sell its services to customers. In the future, the company plans on having more fitness classes and personal trainers to meet the needs of its customers. Power Hour plans on hiring more full-time employees and adding an expansion to the facility. All of this will contribute to the income of the company.
Power Hour hopes to have its loan paid off as soon as possible allowing the company to become reliant on the income it makes. When the loan is paid off, the company will be able to stand alone and pay the payroll expenses, utilities expenses, and any other expenses necessary for the business. With the loan paid off, Power Hour will have projected revenue to outweigh the expenses allowing the company to prosper and be

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