Ascend Strength & Conditioning Business Plan — Key Performance Indicators
The churn, attendance, member acquisition cost and coach utilisation indicators reported weekly, with targets for each.
Key Performance Indicators
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- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. Market and Positioning
- 3. How a Studio Actually Makes Money
- 4. Churn and the Retention Engine
- 5. SWOT and Competitive Position
- 6. Operations and the Capacity Build
- 7. Compliance and Consumer Protection
- 8. Management and Team
- 9. Financial Plan
- 10. Break-Even and Debt Service
- 11. Investment Analysis
- 12. Sensitivity and Scenario Analysis
- 13. Risk Analysis
- 14. Implementation Roadmap
- 15. Key Performance Indicators
- 16. Key Assumptions
- 17. Conclusion and Recommendation
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Capacity and Unit Economics Schedules
- C. Appendix C: Funding, Debt and Working Capital Schedules
- D. Appendix D: Risk Register
- E. Appendix E: Glossary
The following are the operating measures on which this business should be managed. Four of them — monthly churn by joining cohort, average visits per member per week, class occupancy by time slot, and net member movement — are reported weekly rather than monthly.
|
Indicator |
Definition |
Target |
Why it matters |
|---|---|---|---|
|
Monthly churn by joining cohort |
Members leaving in the month divided by opening members, split by the month they joined |
4.5% by Year 5 |
The number that decides the business. Break-even sits at 5.07% and the range between good and poor is under two points |
|
Average visits per member per week |
Total visits divided by average members divided by weeks |
2.3 |
The leading indicator of churn. A member dropping from three visits to one is a cancellation that has not been processed yet |
|
Class occupancy by time slot |
Places taken divided by places offered, by slot |
70% average |
Determines whether the timetable is sized correctly and where capacity can still be sold |
|
Net member movement |
Members signed less members lost |
Positive until capacity, then zero |
By Year 5 the studio signs 27 a month and loses 27. Every new member replaces a departure |
|
Lifetime value to acquisition cost |
Gross-margin contribution over tenure divided by cost per member signed |
Above 3x; 11.4x at Year 5 |
At 2.0x in Year 1 the ratio is thin. It is the margin ramp, not the acquisition cost, that fixes it |
|
Acquisition payback |
Cost per member signed divided by monthly gross-margin contribution |
Below 3 months; 2.0 months at Year 5 |
Year 1 payback is 5.8 months on the margin actually earned |
|
Debit order collection rate |
Successful collections divided by collections presented |
Above 96.2% |
The model provides for 3.8% failing and not being recovered |
|
Corporate wellness contracted value |
Signed annual contract value |
R1 120 000 by Year 5 |
Counter-cyclical, and it generates revenue without requiring another member |
|
Coach retention |
Coaches retained over twelve months |
Tracked individually |
A departing coach can take members. Rotation by design is the structural defence |
|
Debt service cover |
EBITDA divided by interest and capital |
Above 1.25x from Year 2 |
1.10x in Year 2 is thin, which is why the facility carries a twelve-month moratorium |