Dojo Startup Analysis Spreadsheet

We have provided a spreadsheet template that may help those who are considering opening a Tensoku Ryu Dojo (or anyone else planning to open a Dojo) do some initial financial planning and analysis.

The information in the template is divided into six separate spreadsheets which can be viewed by clicking on the appropriate tab at the bottom of the screen. Each spreadsheet provides and supports different information and calculations. Fields that have a shaded background color are computed values and should not be changed directly. Normally you can change the field value by adjusting a value elsewhere on the spreadsheet, typically on the Assumptions sheet.

Disclaimer: The spreadsheet contains a general method for estimating the viability, expenses, profit, and required resources for starting and operating a Dojo. The spreadsheet, while thought to be useful, may contain errors and should not be relied upon for your final analysis or decision-making processes. The spreadsheet may also have various omissions and oversights that do not account for all potential business issues or situations. You, therefore, use the spreadsheet at your own risk. We do not make any claims regarding the accuracy, serviceability, reliability, or suitability of this spreadsheet for any purpose. The spreadsheet is provided as-is and without any support, though we will review comments about the spreadsheet and consider updates when and if we feel they are warranted.

You can download the Microsoft Excel spreadsheet using the link at the end of this post.

Spreadsheet Headings

Information in the headings on each sheet can be modified within the General Information section of the Assumptions spreadsheet. This information could be useful if you intend to provide your figures to an accountant or other financial professionals who will then have your name and contact information on each page.

The spreadsheets provided include:

  • Assumptions: This sheet provides several different categories defining constants and variables that you can update to change calculations elsewhere in the spreadsheet. There is a descriptive title and some descriptive comments for each value on this spreadsheet to help explain the purpose of the value. This spreadsheet is divided into the following categories.
    • General Information – this includes the name of your Dojo, your name and contact information and some general initial data and constants.
    • Facility Information – information about the size of your facility and leasing expenses are provided in this section. Be sure to understand the full nature of your lease so that accurate expense values are included in this section.
    • Cost Assumptions – Here you provide information about expected utility costs, how many students a typical instructor can teach (which helps calculate how many instructors you will need), and a cost escalation figure for your monthly expenses. This latter number is used to increase your monthly costs in a simulated but somewhat realistic manner based upon your estimated rate of increase for these costs.
    • Income Assumption – This section provides information about income sources, including average student monthly tuition, seminar income, and potential income from Yoga Instructors or others who rent or lease your facility during off-hours.
    • Financial Resources – Here you list your available savings, investor equity capital investments, and loans you will use to fund your initial operations and startup costs.
  • Startup Costs: This spreadsheet lists the most common expenses you are likely to have as you attempt to open your doors for business. You can change values in the second column to match your expected values. Just enter zero if the value is not required or may be provided later. You may add additional cost items by adding a row anywhere within one of the existing sections. You can add another section as well provided you follow the general format of the existing sections.
  • Monthly Expenses: Your expected initial monthly expenses should be listed on this spreadsheet. Values for most common expenses are present and should be modified to accurately reflect your current estimates. The total on this spreadsheet will reflect your initial monthly expenses.
    • These expenses will automatically increase monthly by the rate you define in the Monthly Cost Escalation Percent field on the Assumptions spreadsheet. As you bring on more students you will likely have increased costs. This is a simple way to estimate and account for those cost increases. This is of course only a gross estimate. Your actual costs will likely be different.
    • The Monthly Expenses do not account for Lease Payment costs or Instructor payment costs. These are calculated separately on the Cash Flow spreadsheet.
  • Monthly Income: Here your income from all defined income sources are listed for each of the first 48 months of operations. You can extend this period by selecting the last row on the spreadsheet and then dragging that row down until you have selected the desired number of months. Calculations should automatically be provided for any additional months you create. Values on this spreadsheet are driven by entries on the Assumptions spreadsheet. You should make changes on the Assumptions spreadsheet to change values on the Monthly Income spreadsheet.
  • Populations: This shows the number of students and instructors you will have based upon assumptions about these populations you provided in the Assumptions spreadsheet. These values are used in other spreadsheets to calculate the related costs and income values.
  • Cash Flow: This is the analysis portion of the workbook. Like the Monthly Income spreadsheet, you can extend this spreadsheet for additional months by pulling the last row down for the required number of additional months. All values on this spreadsheet are calculated values and should not be modified directly. This spreadsheet provides the following columns for your review and analysis:
    • Month – defines the month of operation.
    • Total Income – lists your total estimated income for each month.
    • Monthly Expenses – shows your escalating monthly expenses using as its initial value the total on the Monthly Expenses spreadsheet. These values increase at the rate defined by the Monthly Cost Escalation Percent field on the Assumptions spreadsheet.
    • Loan Payments – lists your estimated loan payments per the loan information provided on the Assumptions spreadsheet.
    • Instructors – shows costs for instructors based upon your instructor capacity (number of students each instructor can teach) and the average estimated costs for each instructor. These figures are provided on the Assumptions spreadsheet.
    • Total Expenses: this is the sum of the Monthly Expenses, Loan Payments, and Instructor columns on this spreadsheet. It represents your total estimated monthly outlay of cash.
    • Startup Costs – this column lists the amount you need to survive as a business. It accumulates those costs you do not yet earn enough income to pay directly. It is a column of critical importance. Any value in red indicates you do not have sufficient cash reserves to pay for the expenses in that month. This is a go-no-go column. If the column is red you will likely have a cash flow problem that could force you out of business. You will need to adjust assumptions in the following locations to ensure there are no red rows in this column.
      • Assumptions – review income, your Financial Resources, and expenses and adjust accordingly.
      • Startup Costs – adjust or eliminate startup expenses to improve your overall initial financial condition.
      • Monthly Expenses – find ways to reduce the amount you estimate you will have for expenses each month. You might also look at your expense escalation assumption to ensure it is realistic.
    • Cash Flow Positive – indicates the first month in which your income is greater than your expenses and by what amount.
    • Breakeven – indicates when you have earned enough income to pay back your initial startup costs.
    • Profit – indicates the estimated profits that will accrue based upon your various assumptions. This does not account for any equity or other resources you take from the business, including any living expenses.

The spreadsheet provides support for most common business costs and sources of Dojo income. It cannot address every possible situation that you may encounter. In many cases, you can modify the spreadsheet to include additional costs and income sources without much difficulty. We have tried to be quite complete in defining values that we provide on the spreadsheets. But of course, your needs may be different.

The spreadsheet is in Microsoft Excel format.

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