Term
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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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Term
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Definition
| A business run by two to four people. The liabilities and costs are split equally. |
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Term
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Definition
| A partnership where the liabilities, costs, and profits are split equally between the partners. |
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Term
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Definition
| 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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Term
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Definition
| A business in which there are many people involved. The corporation has an entity of its own. |
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Term
| Greatest Sources of Fitness Center Revenue |
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Definition
| Memberships, Personal Training, Group Exercise, Concessions. |
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Term
| Greatest Sources of Fitness Center Expenses |
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Definition
| Equipment, Rent/Lease, Utilities, Payroll. |
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Term
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Definition
| An expense that applies only to a certain department within a fitness center. |
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Term
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Definition
| Revenue that is generated only from a certain department within a fitness center. |
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Term
| 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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Term
| 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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Term
| 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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Term
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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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Term
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Definition
| 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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Term
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Definition
| Obviously, what the gym can and will do for you, given the chance. |
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Term
| 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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Term
| 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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Term
| 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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Term
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Definition
| A sheet that balance's the owner's assets, liabilities, and equity. |
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Term
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Definition
| Liabilities + Owner's Equity. Equipment, the bulding, cash, etc. |
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Term
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Definition
| Rent, lease payment, utilities, etc. |
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Term
| Liabilities + Owner's Equity = ? |
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Definition
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Term
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Definition
| Liquidity within 12 months, current assets/current liabilities. |
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Term
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Definition
| Total Liabilities/Total Owner's Equity. |
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Term
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Definition
| Assets - Inventry - prepaid expenses / liabilities. |
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Term
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Definition
| Profitability of Business / Current Fixed Assets |
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Term
| 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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Term
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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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