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Definition
A business run mainly by one person. That person bears all of the costs and liability but also receives all of the revenue. |
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A business run by two to four people. The liabilities and costs are split equally. |
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A partnership where the liabilities, costs, and profits are split equally between the partners. |
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A partnership in which there are partners who have limited liabilities, limited ownership of the business, and limited revenue from the business. |
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A business in which there are many people involved. The corporation has an entity of its own. |
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Greatest Sources of Fitness Center Revenue |
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Definition
Memberships, Personal Training, Group Exercise, Concessions. |
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Greatest Sources of Fitness Center Expenses |
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Definition
Equipment, Rent/Lease, Utilities, Payroll. |
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Definition
An expense that applies only to a certain department within a fitness center. |
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Revenue that is generated only from a certain department within a fitness center. |
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How does one increase Revenue? |
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Definition
Expand (multiple locations), increase membership price, offer more services and products. |
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Multi-Club Operations: Pros |
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Definition
Operating multiple clubs will ultimately increase revenue and profit by expansion and attracting new members. |
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Multi-Club Operations: Cons |
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Definition
Multi-Club operations can be hard to keep track of and you will not know what is going on at all times at each location. |
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Definition
This is what the aim or goal of the gym is. It goes along with the theme. |
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The general idea of the gym. This basically determines what members you will have. i.e. Gold's Gym = Heavy Lifters, Yoga Fitness Center = Mostly Female, Cardio + Flexibility. |
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Definition
Obviously, what the gym can and will do for you, given the chance. |
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Ways to Purchase a Club/Fitness Business |
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Definition
Buy the assets of the business, or buy the assets and building/land. |
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Pros and Cons of Buying the Assets |
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Definition
You do not own the building and will have to pay a monthly rent or lease payment. You do, however, make smaller payments as opposed to dropping a large sum. |
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Pros and Cons of buying the business + building/land |
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Definition
You will have to drop a larger total amount and once you buy it, you're stuck with it. You do, however, now own the building and have the option of selling it or leasing/renting it out to somebody else. |
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Definition
A sheet that balance's the owner's assets, liabilities, and equity. |
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Liabilities + Owner's Equity. Equipment, the bulding, cash, etc. |
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Definition
Rent, lease payment, utilities, etc. |
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Liabilities + Owner's Equity = ? |
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Definition
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Definition
Liquidity within 12 months, current assets/current liabilities. |
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Definition
Total Liabilities/Total Owner's Equity. |
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Definition
Assets - Inventry - prepaid expenses / liabilities. |
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Profitability of Business / Current Fixed Assets |
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What are the 6 Profit and Loss Statements |
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Definition
Revenues, Departmental Expenses, Undistributed Expenses, Fixed Exoenses, EBITDA, AND EBIT. |
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Definition
Earnings Before Interest, Taxes, Depreciation, and Amortization. |
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Term
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Definition
Earnings before Interst and Taxes |
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