A BUSINESS PLAN ON

YOGA CENTER
“AAROGYA YOGA CENTER”

Towards partial fulfillment of

MASTER OF BUSINESS ADMINISTRATION (MBA)

SUBMITTED BY:
PRAKHAR BANSAL
MBA (MARKETING) IVTH SEM
ROLL NO.-16001119033

UNDER THE GUIDANCE OF:

DR . ASHISH SONKAR

INSTITUTE OF MANAGEMENT SCIENCES

UNIVERSITY OF LUCKNOW
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 DECLARATION

I, hereby declare that the business plan entitled “Aarogya Yoga Center” is my
original work, done by me except the material and information gathered from
the various yoga centers and online sources. This has not been previously
submitted for any other degree or diploma.

I have done my comprehensive business plan under the guidance of Dr. Ashish
Sonkar

Prakhar bansal
MBA (marketing) IVth Sem

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 ACKNOWLEDGEMENT

First of all would like to thank all my teachers for giving me the knowledge of
various business concepts, principles and theories. Here I take the opportunity
to express my gratitude to all of them , who in some or the other way helped me
to accomplish this project. The project cannot be completed without the
assistance & cooperation of Ashish Sonkar Sir and thanking him for successful
accomplishment of task in the right direction.The study has indeed helped me to
explore more knowledgeable avenues related to my business and I am sure that
it will help me in the future

PRAKHAR BANSAL

MBA 4th Sem (Marketing)

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 Table Of Contents

S.No. Topic Pg No.

1 Executive Summary 6

2 1.1 Objectives 7

3 1.2 Mission 7

4 Company Summary 7

5 2.1 Company Ownership 8

6 2.2 Start-up Summary 8

7 2.3 Company Locations and Facilities 12

8 Yoga As A Market 12

9 Yoga and Entrepreneurship 13

10 Yoga And The New-Age Indian 13

11 Riding The Bandwagon 14

12 Opportunities In The Yoga Sector 17

13 Products and Services 18

14 Market Analysis Summary 20

15 4.1 Market Segmentation 20

16 4.2 Target Market Segment Strategy 22

17 4.3 Service Business Analysis 22

18 4.3.1 Competition and Buying Patterns 23

19 Strategy and Implementation Summary 23

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20 5.1 Competitive Edge 24

21 5.2 Sales Forecast 24

22 5.3 Milestones 26

23 5.4 Marketing Strategy 27

24 Personnel Plan 27

25 Financial Plan 29

26 7.1 Break-even Analysis 29

27 7.2 Projected Profit and Loss 30

28 7.3 Projected Cash Flow 32

29 7.4 Projected Balance Sheet 35

30 7.5 Business Ratios 37

31 References 39

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 Executive Summary

Hatha Yoga is an ancient discipline that explores, develops, and integrates the
body, mind, and spirit. Yoga systematically stretches and strengthens muscles
throughout the body, increases circulation to internal organs and glands, quiets
the nervous system, and improves concentration. This ancient system of self-
care brings vitality, health, deep relaxation, and peace of mind.

The style of Hatha Yoga taught is the Anusara method. Anusara Yoga is a new
style of yoga that is heart-oriented, spiritually inspiring, yet grounded in a deep
knowledge of optimal body alignment in the poses. Instructors encourage
students to listen to their body, respect its wisdom, and to progress at their own
pace.

Deep relaxation is taught in each class after completion of the postures. The
intention of the instructors at Aarogya Yoga Center (AYC) is to assist students
in the development of physical, mental, and spiritual well-being: a truly
priceless health advantage.

The Aarogya Yoga Center offers 8 eight-week sessions of classes per year.
Courses offered include Anusara-style Hatha Yoga plus workshops in related
topics. The Yoga Center features well-trained, professional instructors,
progressive teaching methods, a non-competitive and encouraging atmosphere,
and a beautiful light-filled facility.

The Aarogya Yoga Center also has a boutique that will sell workshop clothing
and yoga training aides.

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Mr. Jatin Srivastava will be the instructor and director. He has done Advance
Diploma in Yoga. Has a experience of 8+ years. He is associated with various
yoga groups at local and state level.

1.1 Objectives
The objectives of Aarogya Yoga Center are the following:

 Acquire 300 customers by the end of the first year of operation.

 Achieve sales in excess of 60,000 from the boutique.
 Increase customer base by 25% by the end of the second year of operation.
 Increase sales by 15% by the end of the second year of operation.

1.2 Mission
The mission of Aarogya Yoga Center is to give the student, whether a beginner
or advanced a place to practice Anusara. It is our intention to keep the teaching
of Anusara as close to the way we have been taught as possible. It is incumbent
for the teacher to always act responsibly and with the student's interest in mind.
No matter what we learn or from whom we learn the real and only teacher is
within.

Company Summary
The Aarogya Yoga Center offers Anusara-style Hatha Yoga plus workshops in
related yoga topics. The Yoga Center features well-trained, professional
instructors, progressive teaching methods, a non-competitive and encouraging
atmosphere, and a beautiful light-filled facility.

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AYC will be located in Aliganj. AYC's goal is to build a large base of yoga
students from the thousands of office workers.

Besides the training, the Aarogya Yoga Center also has a boutique that will sell
workshop clothing and yoga training aides.

AYC will operate as a sole proprietorship.

2.1 Company Ownership

The Aarogya Yoga Center is owned by Prakhar bansal

2.2 Start-up Summary

The start-up expenses for the The Aarogya Yoga Center are focused primarily
on workshop setup and equipment, and inventory for the boutique and
bookstore. Prakhar will invest 60,000. In addition, AYC will secure a 80,000
long-term loan.

START-UP REQUIREMENTS

Start-up Expenses

Legal 2,000

Stationery etc. 1,600

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Brochures 8,000

Insurance 1,500

Expensed Equipment 20,000

TOTAL START-UP EXPENSES 33,100

Start-up Assets

Cash Required 46,900

Start-up Inventory 30,000

Other Current Assets 0

Long-term Assets 30,000

TOTAL ASSETS 106,900

Total Requirements 140,000

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START-UP FUNDING

Start-up Expenses to Fund 33,100

Start-up Assets to Fund 106,900

TOTAL FUNDING REQUIRED 140,000

Assets

Non-cash Assets from Start-up 40,000

Cash Requirements from Start-up 46,900

Additional Cash Raised 0

Cash Balance on Starting Date 46,900

TOTAL ASSETS 106,900

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Liabilities and Capital

Liabilities

Current Borrowing 0

Long-term Liabilities 80,000

Accounts Payable (Outstanding Bills) 0

Other Current Liabilities (interest-free) 0

TOTAL LIABILITIES 80,000

Capital

Planned Investment

Prakhar 60,000

Other 0

Additional Investment Requirement 0

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TOTAL PLANNED INVESTMENT 60,000

Loss at Start-up (Start-up Expenses) (33,100)

TOTAL CAPITAL 26,900

TOTAL CAPITAL AND LIABILITIES 106,900

Total Funding 140,000

2.3 Company Locations and Facilities

The Aarogya Yoga Center is located in Aliganj. The facility is quickly
accessible to the urban professionals that AYC considers potential members.

With three large workshop rooms, men and women's dressing rooms, and
a boutique, AYC offers plenty of floor space for multiple classes being
conducted simultaneously.

WHY YOGA CENTER

Yoga As A Market
Worldwide, yoga is estimated to be an $80 billion industry.

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According to the government's Make In India report, the wellness industry in
India is worth INR 490 billion, and wellness services alone comprise 40 percent
of the market. The AYUSH sector (Ayurveda, Yoga, Naturopathy, Unani,
Siddha and Homoeopathy) has an annual turnover of around INR 120 billion.
The sector is dominated by micro, small and medium enterprises, accounting for
more than 80 percent of the enterprises.
The government has set up a dedicated Department of AYUSH with the aim of
providing impetus to these ancient healthcare systems, and opportunities for
investment, education and research, health services and training in the AYUSH
sector.
The products market is worth about INR 40 billion with over-the-counter
products such as digestives, health food and pain balms constituting almost 75
percent of the segment. India has 9,000 units engaged in the manufacture of
AYUSH drugs. In 2013-2014, AYUSH exports amounted to INR 22.7 billion.
Of the exports, raw medicinal herbs account for INR 11 billion, medicaments
for INR 9.7 billion, and medicinal extracts for INR 1.9 billion.

Yoga and Entrepreneurship

As a result of increased awareness towards wellness and health-related
activities, this sector poses great investment opportunities in the areas of setting
up specialized treatment centres, spas and rejuvenation treatments as well as
Ayurveda drug manufacturing (nutraceuticals, food supplements, cosmetics and
rejuvenatives). Baba Ramdev’s Patanjali Ayurved alone recorded revenues of
Rs 1,200 crore in the fiscal 2018-19014, and claims to have crossed Rs 2,000
crore last year. The organization recently announced plans to open 10,000 gyms
in Haryana to promote yoga and Ayurveda.

According to an Assocham study, demand for yoga instructors is expected to

grow by about 30-35 percent in a couple of years. "Corporates and business

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firms are facing the problem of stress among their staff members and yoga is
not only the greatest stress buster, but is also an effective therapy option,” the
report said.

Yoga And The New-Age Indian

The International Yoga Festival in Rishikesh in March this year was packed,
the Bengaluru magazine editor tells me. “There were as many Indians as there
were foreigners. I met this charming Japanese yoga instructor who has been
visiting Rishikesh for the past 15 years. To bring some novelty to the workshop
proceedings at the fest, he customized his yoga style and called it Shinto Yoga,”
she says. In fact, there are as many variants of yoga as there are enthusiasts. But
whether or not these serve the higher purpose of the union of mind, body and
breath is a different issue altogether.
“Asanas have begun to represent yoga, whereas traditionally, it is considered as
only one aspect of yogic lifestyle. Asanas were practised by yogis as a means to
transcend the physicality to a higher state so the body does not become an
obstacle in the aim. But today, for the larger population in the world, yoga is all
about asanas. Purists would argue that it is distortion of yoga. Liberals, on the

other hand, feel whichever aspect of yoga we focus on, it will be beneficial to
our existence, even if it is just the asanas,” she says.

Besides the mushrooming of boutique yoga studios, the business of yoga has
also sprouted a lucrative ancillary market. Yoga apparels, yoga cafes, yoga mats
and accessories are big money magnets. Indian brands like Urban
Yoga, Forever Young, Do you Speak Green and Isha Shoppe to global ones like
Prana and Yogasmoga are all showing how it is done in style.

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Riding The Bandwagon

As with any marketing push, there are many who are hitching their ride to the
yoga bandwagon. Spicejet announced its mid-air yoga initiative to mark the
day. The budget carrier has teamed up with Isha Foundation of Sadhguru to
conduct mid-air yoga sessions (Upa Yoga at a height of 35,000 feet) on some of
its Boeing flights today, according to a PTI report. Approximately 50 dedicated
Isha instructors and SpiceJet crew members, who have been specially trained to
perform Upa Yoga, will undertake a 10-minute session onboard select flights.
Not to miss the opportunity, on land, Ola will drive you to your yoga studio at
discounted rates, while others go crazy in their own attempts to take your breath
away.
To give credit where it is due, the World Health Organisation (WHO) said in a
statement that the day will bring attention to the need for physical exercise,
“much needed in today's world when sedentary lifestyle is becoming a leading
cause of illness.”
But the most convincing argument to allow such popular initiatives a benefit of
doubt comes from a teacher. Nalini Jayaram, teacher at the J Krishnamurthy
affiliate The Valley School, says

We collect for war, for protests. At least the International

Yoga Day will make us come together for silence.

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Prime Minister Narendra Modi gave what could be called the biggest push to
Yoga by proposing the idea of International Day of Yoga on September 27,
2014 at the UNGA. The first International Yoga Day was observed on June 21,
2015. Over 35,000 people were present only at Rajpath to perform Yoga asanas
and the number has only gone up in 2016. With the International Yoga Day
becoming a huge deal, more people have started following yoga more
aggressively. In fact, during the 2016 Yoga day celebrations, PM Modi even
asked his ministers to ‘make Yoga a mass movement’.

The Celebrity Push

Bollywood has played a huge role in elevating Yoga to make it an industry
altogether. From actress Kareena Kapoor to Shilpa Shetty, all have been seen
swearing by Yoga and have spoken about Yoga transforming their health and
lifestyle. Shilpa Shetty has been one of the biggest contributors to the Yoga
industry, releasing her own CDs and videos for making people practise the
workout. Actress Bipasha Basu too has been actively involved in spreading the
Yoga mania with her yoga videos.

Stressed Lifestyles
With the increase in urbanisation and mushrooming of startups, stressed
lifestyles have become a given. With lesser time to hit the gyms and seeking
both physical and mental fitness, many take to Yoga as a regular regime.

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According to a study by TimesJobs, 80 per cent of employees in India complain
of stress at work. The figure points at the huge scope for Yoga in the country.

The Rise Of Patanjali

Baba Ramdev and Acharya Balkrishna figure among the biggest entrepreneurs
in the country. With brand Patanjali, the two have taken both Yoga and
Ayurveda to the next level. Patanjali, in fact, has now set up a huge university in
Haridwar offering degrees and diplomas in Yoga. Moving successfully towards
hitting sales worth Rs 10,000 crore in 2016-2017, Patanjali has taken brand
Yoga one level up.

Increase In Disposable Incomes

India has seen a huge jump in disposable income. India’s Total Disposable
Personal Income is expected to trend around 231000000.00 INR Million in 2020,
according to Trading Economics. This has resulted in people seeking premium
services like urbanised yoga centres and yoga therapies.

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Opportunities In The Yoga Sector
Rising demand for Yoga trainers
The demand for yoga instructors has been growing at 30 to 35 per cent per
annum, thereby, opening up arenas for yoga certification academies and yoga
schools. As the consumer becomes more aware, the industry is poised to
become more organized with the demand for professionally certified yoga
trainers going up.

Mushrooming Yoga Studios And Innovation

The popularity of Yoga has opened up the sector to innovation and startups.
Newer and Younger yoga studios, like Zorba: A Renaissance Studio, have taken
to spreading aggressively, tapping the demand for Yoga and moderating it with
the clients’ style.

Shooting Sales Of Yoga Products, Accessories

With the popularity of Yoga on the rise and with the celebration of International
Yoga Day, the sales of Yoga mats and other products like Yoga pants etc have

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grown almost 50 per cent. The demand shoots up especially in June, which is
the month of International Yoga. This points to the scope of being actively
involved in manufacturing and selling these products.

Budding Outdoor Yoga Communities

While outdoor yoga communities have been an old practise with people getting
together in parks and practising Yoga, many have now started hiring Yoga
trainers to conduct these sessions. The communities, hence, are seen growing
bigger, thereby, resulting in an increase in demand for Yoga trainers and also
presenting an opportunity for Yoga trainers and studios for building more such
communities outdoor.

The market for Yoga is one full of opportunities and wider scope. While the
practise originates from India, we are yet to see India as the Number 1
marketfor Yoga. As more people venture into this, as more investments are
injected, and the demand for Yoga continues to grow, India may soon looking at
tapping the right potential in this sector.

Products and Services

The Aarogya Yoga Center's services and products are as follows:

Services

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 Yoga 1/Beginner is an introductory class for students who are new to
Yoga. This class focuses on poses to stretch and strengthen the legs, back,
and shoulders. Emphasis is given to the basic alignment of the standing
poses.
 Fundamentals of Vinyasa Yoga will prepare students for a vigorous flow
style of yoga (Vinyasa) that synchronizes breath with movement. It will
offer a balance of strength, flexibility, and endurance to challenge the
fitness enthusiast. The course will begin with instruction on the alignment
of the poses and move toward linking all the poses together in a continuous
flow by the end of the session.
 Gentle Yoga is designed for those who prefer a class less vigorous than
Yoga 1. It includes gentle stretches and breathing as well as simple
movements designed to systematically increase the range of motion of every
major joint and increase energy. This class is ideal for students with chronic
symptoms such as muscle/joint pain, stiffness, weakness, or fatigue.

 Yoga 1-2/Continuing Beginner is a continuation class for Yoga 1. The

emphasis of this course is on refining and building endurance in Yoga 1 and
Yoga 2 standing poses. It does not include the shoulder stand. The basic
Anusara Yoga principles of alignment are presented. This class is suitable
for students who have practiced other styles of yoga, but it is not suitable
for those who have never studied yoga before.
 Yoga 2/Intermediate focuses on refining the standing poses and learning
basic sitting postures, simple back bending poses, and the shoulder stand
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 using the Anusara Yoga principles of alignment. It is recommended that
students complete both Yoga 1 and Yoga 1-2 before taking Yoga 2.
 Yoga 3/Advanced continues with refinements to poses studied in Yoga 2
and introduces full arm balance (handstand), headstand, and forearm
balance. Additional back bend poses are also included. Regular yoga
practice outside of class is strongly encouraged. Permission of the instructor
is required.
Products
 Workshop Clothing: Shirts, shorts, athletic pants.
 Workshop Equipment: Balancing balls, belts, weights, and mats.
 Yoga training aides: Video tapes, instructional manuals, inspirational books.

Market Analysis Summary

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Currently, 50,000 professional work in Lucknow. We believe that a yoga center
can be very attractive to our customers if we create a program that fits the time
constraints of their jobs. We plan to offer our members a program that will
allow them to use their lunch hours to attend workshops.

Prakhar will be a positive draw for those who have some experience with yoga
instruction. The key to the success of AYC will be attracting new people to
yoga instruction.

4.1 Market Segmentation

The Aarogya Yoga Center will focus on two customer groups:

Middle Income Urban Professionals: This group is the core segment of

potential students of AYC. Their demographic characteristics are the following:

 Ages: 26-40.
 Sex: 30% male, 70% female.
 Family Income: 2,00,000-5,00,000.
 Health/Lifestyle Issues: Active individuals that are focused on healthy food
and dieting. Over 70% of this group are members of gyms. Approximately,
40% of potential customers have taken yoga classes before.
 Social Pattern: Will more likely attend as part of group.
 Center's selling point: Close to work. The session lowers stress. Can be
attended with workmates as group activity.

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Upper Income: The upper income customer is a secondary target group. Their
demographic characteristics are the following:

 Ages: 40-60.
 Sex: 30% male, 70% female.
 Family Income: 5,00,000+
 Health/Lifestyle Issues: Active individuals that are focused on healthy food
and dieting. Over 90% of this group are members of gyms.
 Social Pattern: Will more likely attend alone.
 Center's selling point: Close to work. The session lowers stress.

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4.2 Target Market Segment Strategy
Everything AYC does must be tailored to work within the time constraints of
the target customer. Yoga classes can be no longer than 45 minutes and must
be scheduled to fit the break and rolling lunch schedules that exist in the
downtown businesses. The focus of the instruction will also have to be tailored
to a clientele that will be seeking maximum relief from the pressure of work and
then returning to the workplace. If AYC can create a noticeable difference in
the customers' sense of well-being, then the customer will come to depend on
instruction as a escape during the day. These kinds of experiences will create a
tremendous word of mouth and bring in more first time students.

4.3 Service Business Analysis

Typically, yoga centers are located away from the city's commercial/business
center. AYCs are less focus on serving a large number of beginners and is more

24
focused on obtaining long term students. Students are attracted to a specific
type of yoga and the reputation and skills of AYC's leader.

4.3.1 Competition and Buying Patterns

"Stars do it. Sports do it. Judges in the highest courts do it. Let's do it:
that yoga thing. A path to enlightenment that winds back 5,000 years
in India, yoga has suddenly become so hot, so cool, so very this
minute. It's the exercise cum meditation for the new millennium, one
that doesn't so much pump you up as bliss you out."

- The Power Of Yoga, Time.com

Yoga is a growing trend. It was popular in the seventies and has come back full
force into vogue in the 21st century. Movie stars such as Anil Kapoor, Arjun
Rampal, Shilpa Shetty, Sonam Kapoor, Ranveer Singh are advocates of the
discipline.

The key to competition within the yoga business is the quality of the instructor.
There are a number of instructors around Lucknow who are well respected, and
Aarogya Yoga will strive to attract these teachers to its facility. The location,
quality and ambiance of the facility is the real competitive advantage for
Aarogya. Because it has the best most attractive facility in town teachers will
want to teach here and clients will want to "get away" here. Aarogya Yoga
Center will focus of presenting AYC as the perfect place to learn yoga skills
that will improve the student physically and reduce the daily stress of the work

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world. Other "schools" in the area will be able to match the quality of
instruction, but are often held in community centers, fitness centers, etc. and do
not have the relaxing ambiance that is so important to the discipline.

Strategy and Implementation Summary

The Aarogya Yoga Center will market through the numerous downtown fitness
clubs, beauty salons and boutiques. The Aarogya Yoga Center will offer the
free open workshop for beginners. In addition, AYC will initiate a program that
will give 25% session discount to members who successfully recruit new
members to AYC.

5.1 Competitive Edge

The competitive advantage of Aarogya Yoga Center is location and the quality
and ambiance of the facility. Based in the heart of Lucknow, we offer our
members excellent instruction that fits into their busy day, providing them a
sanctuary from daily pressure. Our facility is a perfect compliment to our brand
image.

5.2 Sales Forecast

The sales forecast outlines sales of instruction time as well as sales of products
through the boutique located in the facility. Instructions is sold in the following
three ways:

1. Private lessons;
2. Eight week courses;
3. Drop-in sessions.
The boutique will sell clothing, books, posters, books, DVDs and videos, mats,
and other props for yoga. In addition it will sell healthy pre-bottled drinks and
healthy energy food. In the beginning all food will be pre-packaged,

26
since Prakhar does not have the facility or expertise to run a cafe facility. If the
facility becomes more of a destination, he will research adding a cafe.

The Aarogya Yoga Center anticipates that sales will be slow for the first and
second month of operation. After that point, sales will increase as membership
grows.

The following is the sales forecast for three years.

SALES FORECAST

2017-18 2018-19 2019-2020

Sales

Yoga Instruction 152,000 190,000 240,000

Boutique Sales 64,000 85,000 106,000

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Other 0 0 0

TOTAL SALES 216,000 275,000 346,000

Direct Cost of Sales 2017-18 2018-19 2019-20

Yoga Instruction 0 0 0

Boutique Sales 20,150 26,000 32,000

Other 0 0 0

Subtotal Direct Cost of Sales 20,150 26,000 32,000

5.3 Milestones
The accompanying table lists important program milestones, with dates and
managers in charge, and budgets for each. The milestone schedule indicates our
emphasis on planning for implementation.

What the table doesn't show is the commitment behind it. Our business plan
includes complete provisions for plan-vs.-actual analysis, and we will be
holding follow-up meetings every month to discuss the variance and course
corrections.

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MILESTONES

Milestone Start Date End Date Budget Manager Department

Brochures 1/6/2017 23/7/2017 8,000 Prakhar Marketing

Center Setup 16/7/2017 30/7/2017 40,000 Prakhar Department

Marketing 1/6/2017 31/7/2017 5,000 Prakhar Marketing

Campaign

Total 53,000

5.4 Marketing Strategy

The key to the marketing strategy is to get the downtown lunch traffic off the
streets and into AYC. AYC will offer free instruction and will have refreshment
available for visitors. The instruction segments will be 45 minutes and focus on
exercises that will produce the maximum release of tension.

Personnel Plan

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Jatin Srivastava, founder of The Aarogya Yoga Center, is one of Anusara
Yoga's leading teachers. He conducts workshops and teacher trainings
nationally.

Jatin Srivastava is a certified Anusara instructor and one of the few Designated
Teacher Trainers in the Anusara style of Hatha Yoga. He is registered with the
national Yoga Alliance at the highest 500-hour level.

Jatin Srivastava was the business manager Divya Yoga Center. It started
with four employee and 20 students. Within three years, it had a staff of 10 and
over 500 students. He was an effective manager of the growth of Divya Yoga
Center.

The Aarogya Yoga Center's personnel will be the following:

 Jatin Srivastava, director cum teacher.

 Boutique Staff (1).

PERSONNEL PLAN

2017-18 2018-19 2019-2020

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Director cum Teacher (1) 90,000 1,01,000 1,14,000

Boutique Staff 19,200 22,000 25,000

TOTAL PEOPLE 2 2 2

Total Payroll 109,200 123,000 139,000

Financial Plan
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The following is the financial plan for Aarogya Yoga Center.

7.1 Break-even Analysis

The monthly break-even point is 14,492.

BREAK-EVEN ANALYSIS

Monthly Revenue Break-even 14,492

Assumptions:

Average Percent Variable Cost 9%

Estimated Monthly Fixed Cost 13,140

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7.2 Projected Profit and Loss
The following table and charts highlight the projected profit and loss for three
years.

PRO FORMA PROFIT AND LOSS

2017-18 2018-19 2019-20

Sales 216,000 275,000 346,000

Direct Cost of Sales 20,150 26,000 32,000

Other Production Expenses 0 0 0

TOTAL COST OF SALES 20,150 26,000 32,000

Gross Margin 195,850 249,000 314,000

Gross Margin % 90.67% 90.55% 90.75%

Expenses

Payroll 109,200 123,000 139,000

33
Sales and Marketing and Other 24,000 26,000 28,000
Expenses

Depreciation 2,400 2,400 2,400

Utilities 3,300 3,300 3,300

Insurance 2,400 2,400 2,400

Other 16,380 18,450 20,850

Total Operating Expenses 157,680 175,550 195,950

Profit Before Interest and Taxes 38,170 73,450 118,050

EBITDA 40,570 75,850 120,450

Interest Expense 7,721 7,226 6,710

Net Profit 30,450 66,224 1,11,340

Net Profit/Sales 14.10% 24.08% 32.18%

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7.3 Projected Cash Flow

PRO FORMA CASH FLOW

2017-18 2018-19 2019-20

Cash Received

Cash from Operations

Cash Sales 216,000 275,000 346,000

SUBTOTAL CASH FROM 216,000 275,000 346,000

OPERATIONS

Additional Cash Received

Sales Tax, VAT Received 0 0 0

35
New Current Borrowing 0 0 0

New Other Liabilities (interest-free) 0 0 0

New Long-term Liabilities 0 0 0

Sales of Other Current Assets 0 0 0

Sales of Long-term Assets 0 0 0

New Investment Received 0 0 0

SUBTOTAL CASH RECEIVED 216,000 275,000 346,000

Expenditures 2017-18 2018-19 2019-20

Expenditures from Operations

Cash Spending 109,200 123,000 139,000

Bill Payments 65,490 105,836 125,554

SUBTOTAL SPENT ON 174,690 228,836 264,554

OPERATIONS

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Additional Cash Spent

Sales Tax, VAT Paid Out 0 0 0

Principal Repayment of Current 0 0 0

Borrowing

Other Liabilities Principal Repayment 0 0 0

Long-term Liabilities Principal 5,160 5,160 5,160

Repayment

Purchase Other Current Assets 0 0 0

Purchase Long-term Assets 0 0 0

Dividends 0 0 0

SUBTOTAL CASH SPENT 179,850 233,996 269,714

Net Cash Flow 36,150 41,004 76,286

Cash Balance 103,050 144,054 220,340

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7.4 Projected Balance Sheet (For three years)
PRO FORMA BALANCE SHEET

2017-18 2018-19 2019-20

Assets

Current Assets

38
Cash 103,050 144,054 220,340

Inventory 2,750 3,548 4,367

Other Current Assets 0 0 0

TOTAL CURRENT ASSETS 105,800 147,603 224,707

Long-term Assets

Long-term Assets 30,000 30,000 30,000

Accumulated Depreciation 2,400 4,800 7,200

TOTAL LONG-TERM ASSETS 27,600 25,200 22,800

TOTAL ASSETS 133,400 172,803 247,507

Liabilities and Capital 2017-18 2018-19 2019-20

Current Liabilities

Accounts Payable 10,345 8,551 10,478

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Current Borrowing 0 0 0

Other Current Liabilities 0 0 0

SUBTOTAL CURRENT LIABILITIES 10,345 8,551 10,478

Long-term Liabilities 74,840 69,680 64,520

TOTAL LIABILITIES 85,185 78,231 74,998

Paid-in Capital 60,000 60,000 60,000

Retained Earnings (33,100) (11,785) 34,571

Earnings 21,315 46,357 77,938

TOTAL CAPITAL 48,215 94,571 172,509

TOTAL LIABILITIES AND CAPITAL 133,400 172,803 247,507

Net Worth 48,215 94,571 172,509

7.5 Business Ratios

Business ratios for the years of this plan are shown below.

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 2017-18 2018-19 2019-20

Sales Growth 0.00% 27.31% 25.82%

Percent of Total Assets

Inventory 2.06% 2.05% 1.76%

Other Current Assets 0.00% 0.00% 0.00%

Total Current Assets 79.31% 85.42% 90.79%

Long-term Assets 20.69% 14.58% 9.21%

TOTAL ASSETS 100.00% 100.00% 100.00%

Current Liabilities 7.76% 4.95% 4.23%

Long-term Liabilities 56.10% 40.32% 26.07%

Total Liabilities 63.86% 45.27% 30.30%

NET WORTH 36.14% 54.73% 69.70%

Percent of Sales

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Sales 100.00% 100.00% 100.00%

Gross Margin 90.67% 90.55% 90.75%

Selling, General & 80.80% 73.69% 68.23%

Administrative Expenses

Advertising Expenses 2.78% 2.91% 2.89%

Profit Before Interest and Taxes 17.67% 26.71% 34.12%

Main Ratios

Current 10.23 17.26 21.45

Quick 9.96 16.85 21.03

Debt Ratios

Current Liab. to Liab. 0.12 0.11 0.14

Additional Ratios

Assets to Sales 0.62 0.63 0.72

Acid Test 9.96 16.85 21.03

Return on Investment (ROI) – 21.75

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 REFERENCES

https://yourstory.com
https://www.shivayogapeeth.in
http://bwdisrupt.businessworld.in/article/Yoga-The-Multibillion-
Dollar-Industry/
http://www.franchiseindia.com/wellness/Yoga-A-multi-billion-dollar-
opportunity-market-poised-to-grow
www.bplans.com/
http://www.tradingeconomics.com/india/disposable-personal-income

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