6.1 Personnel Plan
*refer to PowerPoint slide number 8
7.0 Financial Plan
As discussed previously, we are assuming start-up capital of $337,000 and a long-term bank loan of $1,250,000. The remainder of the necessary financing will come through investors.
7.1 Important Assumptions
The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. The monthly assumptions are included in the appendices. From the beginning, we recognize that collection days are critical, but not a factor we can influence easily. At least we are planning on the problem, and dealing with it. Interest rates, tax rates, and personnel burden are based on conservative assumptions.
Some of the more important underlying assumptions are:
·We assume a strong economy, without major recession.
·We assume the rate of growth for the number of sport and fitness club memberships will continue.
In conclusion, the founders of Premiere Courts feel that we have provided sufficient information to support our assumption that this will be a very successful and profitable business venture.
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