15:00 - 17:00 - few clients. It is estimated for 2 points per hours. In sum -2х2 = 4 points.

17:00 - 19:00 - raising flow of clients. It is estimated for 3 points per hour. In sum, 3x2 hours = 6 points.

19:00 - 21:00 - maximum number of clients.It is estimated for 5 points per hour. In sum, 5х2 = 10 points.

21:00 - 23:00 - someone who like to relax in the swimming pool after hard day. It is estimated for 2 points per hours. In sum -2х2 = 4 points.

Total: 46 points for a day. Maximum namber of clients is 20 as was mentioned above. In a such way, 1 point of occupancy level is equel 20/5=4 persons. That means, during a day number of clients reach 46x4=184 persons if all conditions and limitations that was set befor are implied.

Gym

7:00 - 9:00 - In the gym, those who prefer to start the day with physical activity. Used all cardio training apparatus, someone use power oriented staff. Occupancy level is estimated for 2 points per hour. In sum, 2x2 hours = 4points.

9:00 - 13:00 - few clients. It is estimated for 3 points per hour. In sum, 3x4 hours = 12 points.

13:00 - 15:00 - few if any, lunch time is estimated for 2 point for hour. In sum, 2х2 hours = 4 points.

15:00 - 17:00 - few clients. It is estimated for 2 points per hours. In sum -2х2 = 4 points.

17:00 - 19:00 - raising flow of clients. It is estimated for 3 points per hour. In sum, 3x2 hours = 6 points.

19:00 - 21:00 - maximum number of clients.It is estimated for 5 points per hour. In sum, 5х2 = 10 points.

21:00 - 23:00 - few clients. It is estimated for 1 points per hour. In sum, 1x2 hours = 2 points.

Total: 42 points for a day. Now determine how many customers can be in a gym in prime-time. All simulators are busy, cardio training apparatus are occupied by 10 persons, power staff - 30 persons, free zone - 10 persons. In sum, 50 people. That means, 1 point is equel 50/5 = 10 persons, during a day number of clients reach 42x10=420 persons.

Group trainings.

7:00 - 9:00 - small groups trainings, functional trainings, yoga. Occupancy level is estimated for 2 points per hour. In sum, 2x2 hours = 4 points.

9:00 - 13:00 - a little bit more people than in the gym zone because a wide range of sections in group trainings. It is estimated for 4 points per hour. In sum, 4x4 = 16 points.

13:00 - 15:00 - few if any, lunch time is estimated for 2 point for hour. In sum, 2х2 hours = 4 points.

15:00 - 17:00 - the lowest level of occupancy. 1 point per hour. In sum, 1x2 = 2 points.

17:00 - 19:00 - raising flow of clients. 2 points per hour. In sum, 2x2 hors = 4 points.

19:00 - 21:00 - prime time. 5 pints per hour. In sum, 5x2 hours = 10 points.

21:00 - 23:00 - few clients, 2 points, 2x2 hours = 4 points.

Total: 44 points for a day. Maximum number of clients that can be occupied in a group training zone with 100m2 calculated in the following way: for 1 person 4 m2, for a coach and equipment - 20 m2. That means, in prime time the group training zone can comfortably filled by 20 persons. Thereby, 1 point is equal 20/5 = 4 persons. During a day number of clients reach 4х44 = 176 persons.

Weekends

Table 6

Weekends attandence analysis

Attendance of any fitness club weekends to predict much worse than on weekdays. At the weekend, anyone more possibilities to spend free time on something else - to be with family, spontaneous contacts with friends, etc. Therefore, flow distribution clients these days is highly dependent on many random factors. In weekend, fitness clubs never completely filled by clients. That is why, fitness clubs usually reduce working time as from 9:00 to 21:00.

Swimming pool.

9:00 - 11:00 - who prefer to start a day from the swimming. It is estimated for 2 points. In sum, 2x2 hors = 4 pints.

11:00 - 13:00 - 3 points per hour. In sum, 3х2 hours = 6 points.

13:00 - 17:00 - 2 points per hour. In sum, 2х2 hours = 4 points.

17:00 - 19:00 - 2 points per hour. In sum, 2х2 hours = 4 points.

19:00 - 21:00 - few clients, 1 point per hour. . In sum, 1х2 hours = 2 points.

Total: 20 points or 80 persons a day.

Gym

9:00 - 11:00 - 2 points per hour. In sum, 2х2 hours = 4 points.

11:00 - 13:00 - 3 points per hour. In sum, 3х2 hours = 6 points.

13:00 - 17:00 - 2 points per hour. In sum, 2х2 hours = 4 points.

17:00 - 19:00 - 2 points per hour. In sum, 2х2 hours = 4 points.

19:00 - 21:00 - few clients, 1 point per hour. . In sum, 1х2 hours = 2 points.

Total: 20 points or 100 persons a day.

Group trainings.

9:00 - 11:00 - 3 points per hour. In sum, 3х2 hours = 6 points.

11:00 - 13:00 - 3 points per hour. In sum, 3х2 hours = 6 points.

13:00 - 17:00 - 2 points per hour. In sum, 2х2 hours = 4 points

17:00 - 19:00 - 2 points per hour. In sum, 2х2 hours = 4 points

19:00 - 21:00 - few clients, 1 point per hour. . In sum, 1х2 hours = 2 points.

Total: 22 points or 88 persons a day.

Now it can be found out how many people probably could visit fitness club during a year if to calculate as one person per on hour. Results are in the following table:

Table 7

Attendance evaluation table

5 days per year is holidays. The interpretation of the results is as follows. There are 377280 clients who visit fitness club once a year and pay as for one training. However, it is impossible to find such number of clients with such consumer behavior. Therefor, it is needed to find real clients who will buy a membership for a year and visit fitness club regularly and at the end of a year renew his membership card. Next will be calculated the marginal number of clients that will be visiting the fitness club with the help of the structure of the population that was described above.

For example, each of fitness club client is loyal and attend training three times a week. A year consists of 52 weeks. For a year the number of training reach 3x52 = 156 training hours. Under these conditions, real number of clients is 377 280/156 - approximately 2400 clients who will purchase membership for a year. According to statistics, every client spends in average 2 hours in fitness club, 1,5 of them are in gym zones. Consequently, 2400/1,5 = 1600 persons. This is the most realistic number of clients if to take into account conditions above.

2.1.2 Assessment of the market of SPA services

The analysis of supply

Almost all multifunctional fitness clubs in St. Petersburg have a SPA area, which includes several types of paid services such as massage, beauty treatments, sauna, etc. In most cases, sauna, swimming pool or Jacuzzi are free, so make this service in the article of income is not necessary. Direct competitor of Sportit is "Oceanium" that provide the following range of Spa services: two types of sauna - Turkish Hammam and Finnish sauna, Jacuzzi and Solarium. Another competitor, SPORT LIFE, offers the same services as well as massage and body treatments. Thus, in order to be competitive in this service sector, Sportit plans to provide the following services: two types of sauna - Turkish Hammam and Finnish sauna, Jacuzzi, massage, beauty treatments and Solarium. Moreover, massage and beauty treatments include different types of services. Massage includes body massage, back massage, foot massage and head massage. Beauty treatments include a chocolate body wrap, honey body wrap and mud wrap.

The cost of SPA services

Once formed a list of SPA services, it is necessary to analyze and generate the cost of Spa services. For this purpose, those fitness clubs of Vyborg district were taken, which offer the same services as the Sportit plans to offer. Thus, a table was formed, which displays the prices for SPA services of other clubs of Vyborg district competitors. The table is formed by types of services and the names of the club in the area.

Below is a comparative table of the cost of Spa services in the clubs of Vyborg district.

Table 8

SPA services price list

Table 9

SPA services price list

During the analysis of the cost of SPA services of other clubs in Vyborg district, it was found that the sports clubs FOK and FOK "Phoenix" do not provide SPA services. Thus, Sportit has an advantage over these clubs in the number of services offered. Fitness House and Fitness House Prestige provide only free SPA services, which included in membership price, as sauna and Jacuzzi tub. Legend fitness and Azhur fitness club provide similar services and they both does not have sauna, swimming pool and Jacuzzi. These clubs provide massage services and solarium. Level of prices for services among other clubs are the lowest in Legend fitness and Azhur fitness clubs. The Legend fitness prices for massage begins from 1000 rubles for 30 minutes to 2000 for an hour and solarium costs 25 rubles for a minute. Azhur fitness club provides only set of massages which costs 7000 rubles for 10 visits and one-time visit solarium services costs 15 rubles for a minute. Prestige fitness provides all services including free and paid. Free are swimming pool and sauna, paid are massages, body care procedure and solarium. All kinds of massages cost 2500 rubles for an hour but they can vary by time, less minutes less price. Solarium services costs formed by the same scheme, less time less price, so basically it costs 25 rubles for a one minute in solarium. Body care procedures cost 2200 for any kind of procedure. The level of costs for body care services in Sportit is the same with Prestige fitness, massage services cost as in Prestige fitness and Sport Life clubs and, finally, solarium costs as in Fitnes House that higher than in Prestige Fitness but lower than in Sport life.

2.1.3 Personal training market assessment

The analysis of supply

All clubs in the sample offer personal training services as shown in table 1. One of the most profitable direction in fitness industry is personal trainings, yearly this kind of service can make profit more than for 1 million dollars. That is why, every club tries to sell as more as possible memberships for personal trainings. However, it is expensive service that not everyone can afford it for themselves. For this reason fitness clubs concentrated more on ordinary memberships which can be sold for a bigger part of people in compare with sale of personal trainings service. The expensiveness of personal trainings explained by its resources which spent for it. It requires the same amount of place, time and coach service as for group trainings. For example, one hour of group training with 30 people and one personal training in fitness club is equal one hour of gym zone usage and one coach. Obviously, group trainings cost extremely less than personal trainings. Nevertheless, demand of personal trainings increase every year and fitness clubs keep this tendency.

The cost of personal training

Thereby, the cost setting of personal trainings was made by cost analyzing of clubs competitors in Vyborg district.

Table 10

Prices for personal trainings

The cost structure of Sportit is based on prices of its competitors. Firstly, the cost of one training is set by averaging all prices of other clubs in Vyborg District and regulated by rounding to higher number. Secondly, the cost structure for memberships is set by averaging minimum and maximum prices and multiplying by the discount. Discount for membership with 24 personal trainings is 5%, so one training costs 1850-5%=1757,5 rubles per training. Discount for membership with 12 personal trainings is 4%, so one personal trainings costs 1850-4%=1776 rubles per training. Discount for membership with 8 trainings equals 3%, so 1850-3%=1794,5 rubles per training. The last type of membership with 4 personal trainings costs 1850-2%=1813 rubles per training. As a result, prices for different types of memberships are displayed in the table 8.

Demand analysis. If to argue theoretically, the analysis of attendance of individual trainings looks following way. The hall is open from 7 to 23, 16 hours on weekdays and from 9 to 21, 12 hours on weekends. There are 10 coaches in the hall. Means in day maximum number of coaching received can undergo 10*16 hours work = 160 training facilities and 10*12 hours work on weekends = 120 training facilities.

Table 11

Sportit pricing

Thus in month training facilities goes 120*8 weekends days in month = 960 and 160*22 weekdays in month = 3520, in the sum 960+3520=4480 training facilities in month. If the subscription includes 24 trainings, 4480/24=186.6. round up to 185 of subscriptions received during the month. Consequently,season tickets for 12 sessions maximum number can be 4480/12=altitude of 373.3 round up to 370, pass for 8 sessions maximum number is 4480/8=560, for 4 sessions 4480/4=1120 pass in a month. If the club conducted only individual trainings, it would be possible to leave these numbers. However, because of the high cost of services, a package of personal training has little demand and from 1612 people per year, maybe 10% of them preobretut one of the packages, and personal training. That is, 1612*0,1=161,2, we will round up to 160 - this is the number of clients a year who will probably get packages of individual trainings. But a single visit to individual training has garazdo higher demand, as often enough several times to take individual lessons to understand the correctness of the exercises, and for further training there is always a duty coach who can advise. So, of 1612 people have the opportunity to visit one-off personal training sessions 50% 1612*0,5=806 clients per year. Thus, the number of clients who will regularly purchase a package of individual training for a month is 160 people per year. Also, 806 people who, at least once attend individual training.

Table 12

Occupancy of personal trainings

2.1.4 Assessment of the leasing market

The analysis of supply

Rental services can not be attributed to the original or unique. As was mentioned before, almost all clubs offer leasing services. Generally, the object of leasing is a gym zone for group trainings where could be used for events of other personal purposes. Azhur fitness club offers gym zones for group trainings for 550 rubles per our in the morning and 700 rubles in a rest time of a day. The Legend fitness offers the same type of room for 1000 rubles per hour in the morning and higher in the rest time of a day. Sport Life club offer the most expensive leasing services, the cost of leasing is 3200 rubles per hour. Fitness House offer for leasing different kinds of areas, from massage room to office rooms. The cost varies from 11200 rubles per month to 35000 rubles per month, it depends on the size of area.

Demand analysis

Three target groups of clients are the main source of demand for gym rental services in fitness clubs:

a) Corporate clients renting rooms for conferences, seminars, business training and other business events;

b) Mini clubs that rent a hall for their own training no more than 2 hours a day;

c) Individual clients wishing to celebrate any personal event.

3 Technical and economic parameters of the object

3.1 Sevices of the designed object

3.1.1 Memberships

Analysis of the membership structure fitness clubs which located in the Vyborg district, allowed to identify 17 main types of memberships, on the basis of which it was decided to form the following types of memberships:

a) Adults, 12 months, morning;

b) Adults, 6 months, morning;

c) Youngers, 12 months, morning;

d) Youngers, 6 months, morning;

e) Adults, 12 months, evening;

f) Adults, 6 months, evening;

g) Youngers, 12 months, evening;

h) Youngers, 6 months, evening;

i) Adults, 12 months, full;

j) Adults, 6 months, full;

k) Adults, 1 months, full;

l) Youngers, 12 months, full;

m) Youngers, 6 months, full;

n) Youngers, 1 months, full;

o) Children, 12 months, full;

p) Children, 6 months, full;

q) Children, 1 months, full.

The qualitative composition of memberships, the average realized cost of memberships and projected occupancy rates in the first year of operation are presented in the Table 13.

Table 13

The quantitative characteristics of memberships

As part of the pricing policy of fitness clubs, in order to attract a wide range of customers, a gradual market entry with a conditionally low price (below the average market level ~ 15%) is traditionally used, in the second year of operation, the cost of services rises to the average market level. The subsequent annual increase in prices for fitness services is 4.8% per year.

The forecasted index of fitness club occupancy by types of memberships is estimated at the level of:

The subsequent annual increase in the occupancy rate is estimated at 5 per cent.

The client base of the fitness club will be formed by:

a) Local habitants, families;

b) Corporate customers;

c) Clients from other districts.

Table 14

Occupancy level

3.1.2 SPA services

The concept of the SPA complex is based on the idea of creating a pool area with surrounding elements of water recreation. In the development of key functional and technological solutions should focus on the experience of creating similar complexes in other fitness clubs. For the development of conceptual and working projects will require the involvement of professional technologists, designers and architects. In this work, the key functional areas and a set of services of the future SPA complex were considered.

Pool

The pool will be the dominant feature of the future SPA complex. The size of the pool is standard, 25x4. It has 4 tracks of 25 meters.

Sauna complex

The bath complex is also a mandatory element of all SPA centers. It should include: Finnish sauna, Turkish Hamam.

Massage and body care complex

The list of massages and body care services:

Table 15

The list of massages and body care services

3.1.3 Personal trainings

Each fitness club in Vyborg district offers individual training services. Prices for individual training vary depending on the category of coach and the number of training sessions. Therefore, almost all clubs offer a package of individual training, which in total is cheaper if you pay as a one-time visit. Different clubs offer different types of individual training packages, which include from 4 to 24 individual trainings per month, from 12 to 32 individual trainings for 3 months, 6 months or a year. For this project, the following list of individual training packages with average prices among other fitness clubs in Vyborg district was established:

Table 16

The cost structure of personal trainings

All services are designed for one month.

3.1.4 Leasing service

The group training zone

There are two group training zones in future fitness club. Each of them is 50 m2.

Table 17

The cost structure of group training zone 1

Table 18

The cost structure of group training zone 2

The presence of a modern zone for group training will allow the future fitness club to smooth seasonal fluctuations in demand and have a significant share of corporate and business customers in its customer base.

As a rule, the conduct of their own activities associated with the use of several services, including the use of sound equipment, fitness mats, balls, etc.

Therefore, in addition to the areas for group training, it is necessary to provide modern sound equipment and fitness equipment.

3.2 Management of the designed complex

At the stage of the project (design and construction), the owner of the future fitness club should have a clear idea of the management option of the object. It is needed to decide on a management company (hereinafter MC): create own or hire a professional. In this paper, attracted by the professional MC.

Professional management company

- conducts current activities of the fitness club;

- recruitment training and personnel management;

- develops strategy and tactics of the fitness club.

At the conclusion of the management agreement, the owner and the management company determine that all financial flows are open to the owner. In other words, the owner can fully control the activities of the MC.

The contract also specifies under what conditions the management contract may be terminated.

The basis of the relationship between the owner and the operator is the management agreement and the budget, the discussion of which takes place at the beginning of the year, and the results are reported quarterly. In addition, any contract contains a provision that the owner or his legally authorized representative has the right to access documents on current operations or the right to send requests, and the operator has no right to refuse such access or provision of data without reasoned justification.

It is fundamentally important that the involvement of a professional MC allows organizations to predict the preservation of the quality of the fitness club for a significant period. In the next five to ten years, many fitness clubs of different levels will be put into operation in St. Petersburg. As a result, there will be a real competition between the clubs, which will lead to a drop in prices, and only clubs with quality management will be able to make a profit.

Example of MC. “Residence” - the partner of trust management business. The key activities of a company are

a) Business management;

b) Organizational and management consulting;

c) Financial and economic consulting;

d) Legal consulting;

e) Accounting Consulting;

f) Marketing consulting;

g) IT consulting;

h) Human Resource Management Consulting;

i) Business support.

3.3 Staffing of the designed complex

Table 19

Staffing

4 Assessment of project risks and ways to minimize them

4.1 Assessment of standard development and individual project risks

4.1.1 Standard project development risks

The risk of underfunding. Minimized by correct calculation of investment needs at the stage of business design;

The risk of changes in the exchange rate of the national currency. This risk occurs, but can be minimized by the possibility of raising funds in strong currency (USD, Euro). As a result of the consequences of the global financial crisis, there is a risk of changes in the exchange rate of the "strong" currency. A quantitative assessment of this risk is presented in section 3.1.2. (integrated risk assessment of the project - determination of the discount rate) and is reflected in the financial plan of the projected hotel and recreational complex (Hofmann, Shim, & Shin, 2019);

Risk of project failure. Minimized through the use of professional contractors (General contractor) and employees (Kliem & Ludin, 2019);

Market risk. Due to the probability of changes in the market conditions of fitness clubs, the forecast of development of the specified markets (on the basis of available information on the investment projects planned in the near future) predicts at least five-year period with the minimum amount of risk. The minimization of this risk can be ensured by the exit strategy of the project by selling in the second or third year after commissioning and reaching the maximum value of the capitalized value (Kliem & Ludin, 2019).

Political risk. The risk of changes in the political structure of the country, changes in the economic course, changes (tightening) of legislation and other political changes affecting the economic situation. This risk is also taken into account in the integrated risk assessment, as a factor that increases the discount rate (Kliem & Ludin, 2019).

4.1.2 Individual project risks

Competitive risk. In the future, there is a risk of a significant increase in competition (Yang, Ishtiaq, & Anwar, 2018);

Construction risk. It is minimized by the choice of highly qualified construction contractors and maintenance of technical and architectural supervision with a high degree of responsibility (Cho & Kim, 2018).

Technological risk. Risk of choosing a technology incompatible with Russian standards. It is minimized by carrying out design solutions to the norms and rules of construction, engineering, technical, environmental design in force in the Russian Federation (Yang et. al., 2018).

4.2 Integrated project risk assessment

4.2.1 Justification of the discount rate

Methods for calculating the discount rate for business valuation are CAPM and WACC. The CAPM method - Capital Assets Pricing Model. The basic CAPM model is used to estimate the expected profitability of companies based on analysis of stock market information (Muley, Tiwari, & Gidwani, 2019).

(1)

Where:

- required (expected) rate of return on equity;

- the risk-free rate of return;

- the average market rate of return;

() - average market risk premium;

- beta coefficient as a quantitative measure of systematic risk.

The second method is WACC (Model of weighted average cost of capital). The WACC model involves determining the discount rate by summing the weighted rates of return on equity and borrowed funds, where weights are the shares of own and borrowed funds in the capital structure. The capital structure aside from its own capital includes only long-term borrowed funds (Graham & Harvey, 2018). The weighted average cost of capital is calculated using the following formula:

(2)

Where:

- the share of equity in the capital of the company;

- the share of long-term debt in the capital of the company;

- the rate of return on equity;

Rd - the cost of borrowed capital (debt value);

- the effective income tax rate.

According to that methods of discount rate calculating was formulated by the following way:

The last row of the table is Rate of return on equity (rubles) was counted by the following excel formula: ((1+ 10,77%)*1,05-1). The previous row “The rate of return on equity” was calculated as 2,47% + 0,81*5,96%+3,47%. The inflation rate of US dollar and Russian rubles was taken from inflation calculator. The market Risk inflation, Country risk premium and the average unlevered beta for recreation was taken from Damodaran last paper about Country Default Spreads and Risk Premiums 2019. (Damodaran, 2019) The risk free interest rate was taken from CNBC portal. The beta factor with financial leverage was counted by the formula: 0,81*(1+20%*2,33). The Tax rate 1 is equal 1-0,02 (the tax rate 20%).

Table 20

Counting of rate of return

Table 21

WACC counting

5 Financial and economic justification of the project

Financial and economic justification of the project is based on the allocation of the main centers of financial responsibility (income and cost allocation for direct, retained and fixed). This form of reporting is widely used in the international practice of the hotel business and is called Uniform System of Accounts for Lodging Industry (hereinafter USALI) (Elston, 2018).

In accordance with the requirements of this methodology, a forecast profit and loss statement was formed according to the proposed scenario of the hotel complex development.

The overall planning horizon of the financial model was 10 years. Planning step - 1 year

Since this method is aimed at the hotel business, the centers of financial responsibility have been changed from

a) number of Rooms;

b) power Complex;

c) SPA complex;

d) rental and conference center;

e) Telecommunication services;

To

a) Memberships

b) SPA;

c) Personal Trainings;

d) Leasing;

5.1 Budgeting of memberships

Budgeting of memberships includes

a) Calculation of the index "Memberships" is made by multiplying the number of memberships, occupancy rate (in %), the cost of one subscription. The resulting value is divided by one thousand (since the unit of calculation of the model is 1 thousand Rubles);

b) The calculation of the "Net receipts of memberships" is made by subtracting the amount of VAT (18%) from the received value for the receipts of the number Fund;

c) The calculation of "Operating expenses for memberships" is made by adding up all operating expenses, including:

Wages and mandatory contributions include the amount of the basic fee, payment of overtime, vacations, sick leaves, holidays, severance payments to employees of the room Fund. This line should include expenses related to hired labor, but not under contracts, the latter should be written off for services under contracts, plus UST (uniform social tax);

Costs associated with staff, are monetary expression of spending aimed at stimulating personnel, designed to Fund a variety of activities with participation of employees and taken in the amount of 5% of payroll;

Table 21

Operational expences of memberships

Table 22

Forecast operating budget of Memberships

Contract services - contractual services include costs associated with work performed by third parties and individuals;

Other operating expenses - are intended to Finance Unallocated minor expenses and unrecorded unforeseen expenses.

Profit is calculated by subtracting the amount of operating expenses from net income. Thus, the calculation algorithm is: Profit = Net income (income less VAT) - Operating expenses The budget of the room Fund of the projected hotel is presented in Table 22.

5.2 Budgeting of SPA

a) Calculation of "Receipts SPA complex" - is made by adding the proceeds from the sale of services to customers of the club, as well as third-party visitors

b) The resulting value is divided by a thousand (since the unit of calculation of the model is 1 thousand Rubles);

c) Calculation of the indicator of "Net revenues" (Gross profit from sales) - is made by subtracting the amount of VAT (18%) from the received value for the receipts of the SPA complex;

d) The calculation of the "Operating expenses of the unit" is made by adding all the operating expenses of the complex.

Table 23

Operating expenses of the Spa complex

The profit from the services of the SPA complex is the difference between its net revenues and direct operating expenses.

Table 24

The forecast operating budget of the SPA complex

5.3 Budgeting of Personal trainings

The structure and principles of the operating budget of individual trainings are identical to the structure of the budget of memberships.

Table 25

Forecast operating budget for personal training

5.4 Budgeting of Leasing

a) The calculation of the "rental Income" indicator is made by multiplying the rental cost per square meter by the total area leased. The resulting value is divided by one thousand (since the unit of calculation of the model is 1 thousand Rubles);

b) The calculation of the "Income" indicator is made by multiplying the cost of renting rooms per hour and the number of hours for events per year. The resulting value is divided by one thousand (since the unit of calculation of the model is 1 thousand Rubles);

c) Calculation of the indicator of "Net income" (Gross profit from sales) - is made by subtracting the amount of VAT (18%) from the received value of the proceeds from the lease of the premises

d) The calculation of the "Operating expenses of the unit" is made by adding all the operating expenses of the department.

Table 26

Operating expenses related to rental services

Table 27

The forecast operating budget of the Department of rent

Table 28

Consolidated operating budget of the designed complex

5.5 Results

The expected investments equals $900000*64,51=58 059 000 Rubles. Borrowed fund is 70%, own funds equal 17 418 000 rubles that is 30% from total investments.

Table 29

Funds

The main results of this paper are NPV, IRR and PP indicators. NPV = 66 963, that is more than 1. Thus, the project could be considered as efficient. The IRR indicator is more than WACC. Thus, the project could be considered as profitable. The payback period is 12 years that is the average period for projects with investments approximately $1mln.

Table 30

Effectiveness indicators

Conclusion

Ten years ago in Russia, no one considered fitness as profitable business and especially no one expected that this kind of physical activity will be an alternative to the declining sports and recreation complex of the country. Demand for a "healthy lifestyle" creates favorable conditions for the development of the fitness industry, which the whole world is not only useful, but also a very profitable area.

In the market it is impossible to achieve stable success in business if not to plan effectively its development, not to accumulate information about own prospects, the state of target markets, the situation on them competitors, etc.

It is necessary not only to present their needs for the future in material, labor, financial results, but also provide the sources of their production, to be able to identify the effectiveness of use resources in the process of the enterprise.

Justification effectiveness of investment project is essential part of business plan preparation, which shows how effective the project is in order to make decision to invest money or not. Its complexity is determined by the complexity of the described them business. The business plan becomes a tool for forecasting results activities of the enterprise and management.

The main purpose of developing a business plan is planning economic activity of the organization for the next and distant periods in accordance with the needs of the market and the possibility of obtaining the necessary resources. The business plan takes into account not only the internal objectives of the business organizations, but also external goals that can be useful to a new cause. In addition, the business plan focuses on the financial and economic aspects of the business.

Also, the preparation of a business plan is necessary when obtaining a loan in bank. This requirement has long been mandatory condition. The banking institution has no desire to risk, and therefore at a high level of risk interest on the loan will be increased.

Before starting to justify the effectiveness of the investment project it is need to get all the necessary information:

a) identify sources and gather necessary information;

b) determine the purpose of development;

c) set the General structure of the created document.

In the process of writing the thesis was studied the structure and the content of the technical and economic justification of the business plan:

a) setting goals of the organization;

b) description of services that are offered in the market to customers;

c) research and analysis of the market, competition in it;

d) research and analysis of the market for services;

e) preparation of production and organizational plan;

f) preparation of the financial plan necessary.

The results showed that the fitness business can be promising and profitable, but high-risk. One of the main the conditions for its successful operation is the availability of investment, great location, engaging skilled staff, availability of quality equipment. Recruitment of qualified personnel - the main problem for new clubs, given how many clubs open in recently, there is a shortage of qualified coaches. To it is necessary to eliminate this deficiency training or retraining of trainers.

In a competitive environment, the criterion of investment efficiency the project is the level of return on invested capital. Assessment the attractiveness of the investment project is to determine the level of its profitability.

To Finance the project of opening the fitness club it is planned to attract capital investments in the amount of 58 059 000 rubles ($900 000).

The results of analysis shows that NPV = 66 963 that is more than 0, it means the project could be considered as effective. IRR - 29.74% that is more than WACC, that means the project is proftable. PP is 12 years. Such indicator is considered as normal because of scale of the project. Statistics show that usually payback period of such kinds of projects is approximately 10 years.

Table 31

NPV, IRR, PP results

After analyzing the performance indicators of this project, it was concluded that the creation of the fitness club project is economically effective.

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Appendix 1

The structure of the loan payments

Appendix 2

Indicators of investment project effectiveness

Appendix 3

Total Betas by Sector (for computing private company costs of equity) - US

Appendix 4

Country Default Spreads and Risk Premiums

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