The initial business plan for the new sports center managed by John and Sophia, two graduates of Sports Science at the University of Kent, revealed some issues that could put at risk the survival of the company in the short term. For this reason and considering the recent economic situation in the UK, John and Sophia decided to change some of their initial assumptions. They have requested your help to prepare a new business plan and evaluate the profitability, liquidity, and sustainability of the business in the first year of operation based on their revised assumptions.
The business will start on the 1st of January 2024. On that day, John and Sophia will deposit savings of £10,000 in the company bank account as initial capital.
The sports center will be in Canterbury, near the new Canterbury Riverside centre. The building will be modern, and it will have 1 studio, 1 fitness room including machinery, 2 changing rooms and a coffee corner. John and Sophia will rent the building with all the facilities installed. The centre will open on weekdays (7:00 a.m. – 10:00 p.m.) and on weekends (8 a.m. – 2 p.m.). It will be closed only on public holidays. The studio will be used for sports classes. Classes are planned Mondays to Fridays in the evenings. The fitness room will always be accessible when the centre is open.