Business plan book sample

Service Business Entrepreneurship Project Sample:

“China Modern Fitness Center” Business Plan”

Here is a business plan for the “China Modern Fitness Center”. The project was based on the book "creating a winning business plan" by Mr. Kravitt, the president of an investment bank in Chicago, USA.

table of Contents

1. Introduction to the project

2. Management system

Manager introduces the responsibility of the company

3. Market analysis

Feasibility analysis of market distribution

4. Competitive analysis

5. Enterprise operations

Introduction to the configuration products and services of the location equipment

6. Sales strategy

Short-term strategy long-term strategy competitive marketing strategy

7. Staff

8. Insurance and legal affairs

9. Seasonal and contingency plans for the business

Strain gauges and measures

10. Financial status

Members predict membership fees to develop financial income and expenditure and balance of debt forecast conditions monthly income statement and financial changes conditions of various financial forecasts

11. Appendix

a. Organizational structure chart

b. Survey of members of the fitness club

c. Analysis of market penetration

"China Modern Fitness Center" business plan

1. Overview of the project

“China Modern Fitness Center” is a club that is being created to provide members with indoor and outdoor physical fitness. Different from most health clubs that already exist, “China Modern Fitness Center” will provide sports venues for volleyball, basketball, etc., as well as fitness venues and facilities for individuals. The fitness center will actively promote the participation of units and families, and provide expert guidance and training courses to those interested in improving their sports skills.

In general, the key to competition in this industry is the choice of location, the design of the event, the quality of the service and the conditions of the equipment. We plan to locate the fitness center in Dongcheng District, Beijing, where the income of residents is 2.5 times higher than the national average; the employees of factories, enterprises and other units here have a tradition of organizing sports activities. Our fitness center activities are designed around people's interests and will exceed the expectations of future members. The equipment we provide and the experienced management staff will make the fitness center serve more than other similar clubs.

In addition to the success of the above-mentioned fitness clubs, more importantly, we have a group of experienced, enthusiastic and angry managers who are committed to running this fitness center. Mr. Zhang Dawei is an excellent sales expert. He will be the president of the fitness center; Ms. Wang Lihua will be the head of the project department and public relations department; Mr. Liu Guodong will be in charge of the equipment department and responsible for the staff training. All of the above have a master's degree in business administration and have many years of experience in this industry. Mr. Wei Mai is a financial expert and will serve as the financial director of the Center.

The establishment of the fitness center requires the purchase of 5 hectares of land, together with a total investment of 4.5 million yuan for construction and equipment installation costs. The above-mentioned several major managers have invested a total of 600,000 yuan, and some external investors have promised to invest about 1.9 million yuan on the condition of obtaining 40% of the shares. The fitness center also needs to borrow 2.25 million yuan from the relevant institutions. It plans to build the land and the built houses of the center as collateral for the loan, and will provide 40% of the payment to ensure the reliability of the mortgage. We expect the total sales of the fitness center to reach 1.8 million yuan in the first year, and profits and taxes amounted to 75,000 yuan.

2. Management

Manager introduction

Mr. Zhang Dawei, aged 40, holds a master's degree in business administration from Peking University and a bachelor's degree in economics from Sun Yat-Sen University. Mr. Zhang has served as a vice president for many years in the Guanghe Fitness Club. He has worked in various aspects such as site selection, daily operation and development of activity projects. Prior to this, Mr. Zhang worked as a staff member of the Guangzhou Family Fitness Center and worked in direct sales for many years. Mr. Zhang is also a sports enthusiast and he is still a director of the China Indoor Sports Association.

Ms. Wang Lihua, aged 35, holds a master's degree in business administration from Renmin University of China and a master's degree in education from Beijing Normal University. Ms. Wang is currently working as a staff activity manager at Stone Group, and has extensive knowledge and experience in employee activity project design and sports equipment. Ms. Wang is also a member of the board of directors of the Dongcheng District Youth Activity Association.

Mr. Liu Guodong, aged 38, holds a bachelor's degree in Physical Education from Beijing Normal University. He is currently working in the Equipment Management Department of the International Seafarers' Club. Mr. Liu is an active member of the Beijing sports industry. He also participates in several amateur basketball teams and volleyball teams as coaches.

Mr. Wei Mai, aged 48, holds a master's degree in corporate finance from China University of Finance and Economics. He holds the title of senior accountant and is currently the chief accountant of the National Youth Sports Association.

Each of the above managers has many years of work experience in their field, two of whom have experience in managing finances, and three have experience in running health clubs. This combination of managers provides a solid foundation for the fitness center, and even if a manager leaves for any reason, other members can fill the gap immediately.

Although the above-mentioned people are still holding important positions in other units, they have not signed any restrictive contracts with their units and can join the fitness center at any time. The four managers have signed a contractual agreement: they will serve the center for at least five years from the date of joining the fitness center; if any one leaves the company in the future, then five years from the date of departure Can not engage in a competitive business with the center. In fact, the four original founders invested a lot of manpower and money in setting up the center and they will be committed to a successful fitness club.

remuneration

The annual income of the four founders is set at 50,000 yuan, which is equivalent to the current salary level of the same position in this industry.

Venture ownership allocation

The fitness center will initially issue 100,000 shares of common stock, and each of the four founders will invest 150,000 yuan, each in exchange for 14% or 14,000 shares. Each director will receive 1% of the shares. Another three investors who did not participate in the operation contributed a total of 1.9 million yuan, and will share 40% of the shares according to the amount of capital contribution.

Manager's responsibility

President/Marketing Department: Mr. Zhang Dawei will be the president of the fitness center, he is the core of the whole center. His primary responsibility is to lead the company's managers, as well as the responsibility of the sales and training center's sales staff.

Project Design / Public Relations: Ms. Wang Lihua will be the head of this area. Ms. Wang will continue to analyze the development of the health club industry and the needs of customers, develop activities that meet market needs, and be responsible for the advertising and promotion of the center.

Equipment Department / Personnel Department: This department is under the responsibility of Mr. Liu Guodong. Mr. Liu will be responsible for the purchase and maintenance of the equipment and the management of the center's clerk.

Finance / Housing System: This department is headed by Mr. Wei Mai. The central computer system is managed by Mr. Wei with corresponding data and files.

Member of the board

The managers of the fitness center are aware of their lack of expertise necessary to run the center. In order to avoid this deficiency, the manager recruited a lawyer, a bodybuilding doctor, a bodybuilder and a body star to join the board. They will provide valuable experience and skills for the development of the center. Each board member will receive 1% of the shares as compensation, and if they decide to leave the center, the center's managers have the first priority to acquire their shares.

3. Market analysis

Market distribution

The most important form of market segmentation in the fitness industry is its regionality. 80% of members live within 9 km of the center, and an average of 15 minutes can be used as a benchmark for determining distance. The fitness center is a club with unique sports facilities. Due to the indoor ice rink, volleyball beach and special training hall, it will attract some people living far away. It is estimated that all members work and live in no more than 13 kilometers. The reason why the fitness center is located in Dongcheng District, Beijing is due to its rapid population growth, high household income and the potential for sports in the region.

Population, age, household income, and the number of people engaged in management and professional technical work are the most important statistical variables in determining the customer base. The annual population growth rate of Dongcheng District is 2.5%, which is 1.5 times of the national population growth rate and 1.3 times the annual population growth rate of Beijing. Approximately 590,000 people live within 9 km of the fitness center site, which is estimated to exceed 650,000 by 1995. Analysts say the median age of members in the fitness industry is 34, while the median age of Dongcheng is 32.

According to a sample survey conducted by the National Indoor Sports Association of China, household income is another important factor in judging the customer base. About 77% of the members' household income exceeds 25,000 yuan, while the national household income exceeds this line by 56%; 39% of the members Family income exceeds 45,000 yuan. The number of people engaged in management and professional technical work is far more than that of other industry personnel, while the proportion of professional technology and management personnel in Beijing is more than twice that of the national average.

Compared with the national average, the potential market for sports in Dongcheng District is higher than 95%. According to an analysis by the National Bureau of Statistics of 1991 on the potential demand for various services for residents in the postal code, Dongcheng District’s demand index is 132, while the national demand index is 103.

Feasibility Analysis

Market penetration analysis is a method for estimating the overall market saturation of commercial entertainment and fitness facilities within a certain market. It has been recognized as an important business analysis method. This approach is used by real estate evaluators, financial institutions, and professional consultants to measure the market's demand for new fitness facilities. The calculations in this plan are based on demographic data related to the target market and facility floor area.

The results of applying this set of analysis methods show that Dongcheng District can still build a multi-sports club of 7,500 square meters with its existing population. This market penetration analysis cannot be used to analyze the advantages and disadvantages of specific projects, so market research is needed to further determine the feasibility of the project. Our research includes site selection analysis, target market research, and conversations with a number of sports organizations, community leaders, competitors' members, and employees.

4. Competitive analysis

According to the survey results of the Chamber of Transportation, the main competition comes from clubs with the same facilities within 6 kilometers. The main competitor is the central club in the center of Dongcheng District. The club has a building area of ​​7,000 square meters and features a weightlifting room, joint fitness equipment, gymnastics room, Olympic standard swimming pool, gymnastics gymnasium, diet and nutrition teaching center. The Central Club has 2,000 members and a six-month queue. It is surrounded by hospitals, and if it is not expensive in the building, expansion is possible. In contrast, in addition to providing individual fitness programs for members, the fitness center will also provide group and family collective sports to adapt to the results of market research. Another competitor is the Dongcheng Club, located about 5 kilometers west of the fitness center. Like the Central Club, the Dongcheng Club also serves only adult members. It has more than 800 members and a building area of ​​over 2,000 square meters. Facilities include weights room, joint fitness equipment, room area internet court, Sanna steam bath and rotating hydromassage tub. Its main advantage is that the membership fee is low; the biggest weakness is poor sanitation and untimely equipment updates. In 1990, the government was fined for poor sanitation conditions such as locker rooms.

Some members of the Dongcheng Club we have visited are actively looking for other suitable clubs. However, because the Central Club cannot accept new members for a while, their choices are limited. 80% of respondents believe that clean facilities are the most important factor for the industry. The investigation of the Chamber of Transportation also showed that the Dongcheng Club has 40 members per 100 square meters, and according to the general standard, it should be 29 members per 100 square meters. We are preparing to implement a preventive maintenance equipment program that will ensure that the equipment meets the membership requirements while maintaining a certain long-term maintenance cost of the equipment.

The tennis club in Dongcheng District has 8 tennis courts, including 6 indoor venues and 2 outdoor venues. It also has a rotating jacuzzi and a canteen. This tennis club is probably about 4 kilometers from our address. Although tennis was ranked as the third most popular item in our survey, further investigations indicated that there were enough tennis courts in the area, so the fitness center decided not to provide tennis services.

The next level of competition comes from clubs offering similar services within 15 km. These clubs include the Chaoyang Club in Chaoyang District of Beijing, the Oriental Club, and the Chongwen Club and International Club in Chongwen District. However, these clubs are far away from the residents of Dongcheng District and take more than 20 minutes.

5. Business operation plan

Choose location

After a comprehensive analysis and research, it was decided to set up a fitness center at the intersection of the Second Ring Road and Yongding Street. The place is located between a “white-collar” company and a senior income neighborhood, and is developing commercial facilities.

We chose a street corner as a construction point, and pedestrians and four vehicles across the street are easy to see and easy to access. The Chamber of Transportation believes that a convenient location is one of the most basic benefits that a sports club provides to its members. The size of the club is determined by the needs of the market.

The location we have chosen has been designated by the government as a business district, and infrastructure work can begin immediately. The land price of the site is 130,000 yuan / hectare.

Equipment configuration

The fitness center has a floor area of ​​7,5,000 square meters and is the area required for market penetration analysis. Considering the population growth in this area, 2 hectares of land have been purchased for backup, and it is also avoided to increase the value of the land with the population growth.

Beijing Xinhua Architectural Design Co., Ltd. has completed the design work in line with the architectural requirements. The company has won awards in design and has extensive design experience to ensure quality.

The maintenance of the equipment and the maintenance of the building facilities are very important for the members. More than 90% of respondents gave this level the highest level of consideration. Maintenance costs are a variable expense, and the average maintenance cost for this industry is between 4% and 9%. We emphasize preventive maintenance, which can keep our expenses at a low level.

Product and service introduction

The fitness centre will be open all year round and is open 14 hours a day. In order to meet the needs of members who like to get up early, they will be open at 6 in the morning. The fitness center will be an indoor and outdoor multi-sports center offering the following activities:

Skating rink

Basketball court

Volleyball court

Miniature golf course

Ring runway

swimming pool

Exercise room

Market research results indicate that residents of Dongcheng District are required to establish a variety of sports centers that can provide various group competitions. More than 64% of the participants in a single league event have participated, and 50% have indicated that they are interested in joining the center and are willing to pay a certain deposit to guarantee the membership of their fitness center.

Further research confirmed that our main competitors, the Central Club and the Dongcheng Club, did not provide volleyball, basketball, ice hockey and other team competition facilities. The Central Club has a basketball court, but it is designed for shooting by only a few people and cannot be used as a group competition. Below we detail the content of each facility.

Skating rink

A sample survey showed that 33% of people think there should be an ice rink. The director of Chaoyang My Oriental Club said: "20% of our skating rinks are from Dongcheng District." These people's one-way roads are more than 15 kilometers, far exceeding the average mileage.

Our ice rink will be used for figure skating, ice hockey and open to the public. The assessment results show that 80% of the business hours will be used for the Ice Hockey League, figure skating training and skating association rental.

Basketball court

Our market research shows that 43% of people think that basketball is a basic consideration for their participation in fitness centers. The Central Club has a basketball court, but the membership is full and there is a queue. According to our research, basketball courts are better able to attract people who are interested in group competitions.

Volleyball court

From the recent development trend, the use of sand to play volleyball will be more and more popular, and our volleyball court is designed as a bunker field to meet this requirement. Of course, the current volleyball league venue is a hardwood floor, but our basketball court can be used as a volleyball court when needed.

Miniature golf course

Miniature golf is selected as the sport of choice for people in this area. To meet this requirement, we have set up an indoor 18-hole miniature golf course. Thanks to this facility, we are different from those in the parks, sanatoriums and room network clubs. Studies have shown that such facilities can attract people who live far away.

track

According to market research, 30% of the members think that the length of the runway is very important, and most people want to have a track runway of 1/2 km. The short runway set up by the Central Club and the Dongcheng Club is considered too short by many people. Therefore, some of the more formal track and field events will be held in our large track and field.

Exercise room

We will have two exercise rooms, one for aerobics and one for other similar sports. The 50-person bodybuilding program requires about 300 square meters of land. The rent can reach this standard and the rental rent is about 5,000 yuan per month. We can rent a space of the same size for 30 yuan. We have rented a venue for the Beijing Bodybuilding Training Course in advance, with a monthly rent of 3,000 yuan, a contract for two years, and an extension of three years. Due to the smooth contract between the Beijing Bodybuilding Training Center and the Fitness Center, we have completed the market demand for bodybuilding sports as proposed by the 50% sample survey.

swimming pool

According to the statistics of the Chamber of Transportation, there are 40% more sports club members with swimming pools than without swimming pools. Statistics also show that 41% of people who participate in physical exercise participate in swimming, and 26% of our surveys require swimming pools.

Fast food snack department

The fitness center will have a fast food department. The Central Club has a fast food department and is proactive in providing lunch and dinner to its members. According to our market research, 60% of people want to have a fast food department. The annual income of such a fast food department is about 600,000 yuan.

6. Sales strategy

The Director of Housing and Research at the National Fitness Sports Equipment Organization said that the development of the fitness and entertainment market in the 1990s will have a profound impact on the economy. He also said that from 1990 to 1992, the number of people participating in fitness activities fell by 6.2%, and this growth trend is expected to continue. According to authoritative estimates, entertainment activities can generate more than 350 billion yuan in revenue a year. The fitness center has developed two sales strategies to ensure market penetration.

Short-term strategy

Direct mail is a cost-effective way for us to pass information to residents in the Dongcheng District and surrounding areas. Many clubs have adopted this sales method and it has proven to be a successful approach.

Direct marketing will be used for organizations and units that are within 9 kilometers. In order to occupy the market as much as possible in the early stage of this emerging business with the most economical means, we will directly contact some large companies. This will ensure that the fitness center will sign the contract for them in a timely manner, while meeting their specific requirements.

When the sales promotion is busy, we will hire a temporary salesman and undertake some sales promotion after training. Full-time employees are responsible for regular work and ensure that no sales opportunities are missed.

Long-term strategy

When the fitness center absorbs the first batch of members during the construction period, we will continue to advertise in the local newspapers and send the news release letter of the fitness center to the associations to establish the reputation of the fitness center and win the membership. .

Direct mailing is also one of our long-term strategies. We will also use the phone to contact individuals. In order to efficiently deliver information to our target market, we have signed advertising contracts with several radio stations. The advertising cost of broadcasting is 500 yuan per half minute. We will also contact different associations to send our advertisements in their promotional letters.

The post-promotion work will be handled by a regular employee and will be operated by an official salesman in the morning and evening. Two temporary employees assisted in handling the phone, guiding customers to visit the center and answering various questions.

Training for formal and temporary salesmen will be an ongoing effort. These trainings include: product knowledge, business hours, phone conversation skills, understanding of member contracts, and fitness center rules and regulations. The task of the training will be the responsibility of the president.

Competitive marketing strategy

The Central Club was originally promoted by direct mail. They also advertised in local newspapers and participated in the health knowledge and activities of some shopping centers in Dongcheng District to make customers interested in fitness. In fact, the Central Club has sold the membership quota before opening and guarantees a queue list. This shows that their marketing efforts are successful, and the fitness center will adopt a similar approach to pre-opening publicity.

In order to expand the membership team and increase revenue, the fitness center will carry out the promotion activities of the members before opening. Our one-time membership fee is 300 yuan per family, which is lower than the central club's 600 yuan. Although the Dongcheng Club’s family membership fee is only 1 million, they require members to sign a three-year contract. Our monthly fee is 20 yuan, which is also lower than the central club's 45 yuan. After the membership fee and monthly membership fee are paid, our members can participate in any league activities sponsored by the fitness center. The swimming pool, track and field stadium, volleyball court and basketball court can be used outside the league.

The entrance fee for the audience is 8 yuan per person. It is difficult to estimate the actual income due to the difficulty in estimating the number of people. Therefore, this part of the income is not included in our financial plan.

7. Staff

The fitness center is expected to require six full-time staff and 19 part-time staff in the first year. Full-time staff includes fitness coaching, maintenance staff, accountants, and statistical analysis. Their salary will be between $8 and $14 per hour depending on the position, plus various benefits and free family membership cards; for those who have worked for more than one year, they can enjoy two weeks of vacation each year. Part-time employees will be supervised by the supervisor, with a salary of $5 per hour and a family membership card. According to the experience of relevant experts, our wages are competitive in the region.

Managers intend to provide employees with more extensive project training and orientation training than other clubs. The sports business magazine of the industry emphasizes one of the ways to cultivate high-quality employees to maintain old customers. Our employees will also receive training in physical exercise, emergency care and equipment maintenance. Our training programs are more systematic and formal than our competitors.

We are working with the Beijing Normal University to create a program to recruit student employees. The program will allow the fitness center to maintain a group of young and enthusiastic temporary employees who can work for two to four years.

Some special services such as personal trainers and match referees will make a temporary contract as needed. This is mainly due to the fact that the demand in the initial stage of the center is still unstable, and it is also to reduce the expenses for formal employees.

8. Insurance and legal affairs

The insurance for the fitness center was purchased through Ping An Insurance Company of China. Asset insurance will cover the actual market value of fixed assets and private assets, and commercial accident insurance guarantees compensation for fixed cash inflow losses caused by accidents.

In order to prevent accidents caused by legal liability caused by member disability, we also purchased general liability insurance. Of course, the central manager will take relevant preventive measures, such as providing appropriate guidance, giving necessary warnings, signing a contract with no members, and so on. The fitness center will also purchase accidental death and disability insurance for four executives.

The legal affairs of the center will be handled by Beijing High School Law Firm, which has all the rich experience and good reputation.

The fitness center is a joint stock company registered in Beijing. The company and its management personnel have no legal disputes. The center has obtained a commercial business license for construction and operation in Dongcheng District.

9. Seasonal and contingency plans for the business

Seasonal problems are old problems with entertainment and fitness. A variety of sports clubs offer a wide range of facilities to minimize seasonal problems. The fitness centre has taken steps to ensure that the ice rink and swimming pool are open all year round. For seasonal cash inflows, it will be settled by collecting monthly membership and signing a short-term contract with a bodybuilding training program, which accounts for about 7.2% of annual income. In the summer, the center will hold leagues, medical rehabilitation lectures and sports lectures to improve the technical level of members, so the income will help regulate market demand and increase the club's annual utilization rate and profit margin.

Strain gauge

For competitors in the same industry who entered the region: According to market penetration analysis, the population density in the region has been difficult to support another fitness club; it is unlikely that a comprehensive fitness club will be established within the range of 9 km to 15 km. Clubs that build professional projects, such as bowling clubs, do not pose a real threat to us, and professional clubs generally attract a wider range of members. If there are competitors who want to enter this area, we will ask the Dongcheng District Government to block the infrastructure of competitors on the grounds that competitors are not successful. If this is not successful, we will attract more people through promotional price reduction activities.

Trends in sports and fitness: Our building design has a certain amount of space to adapt to changing trends. We have made a variable plan to make it easier and faster for us to profit from popular sports. We will observe trends in the country and the region and provide new services in a timely manner to maintain customer interest.

For emergency response to failing to recruit enough members of the program: If we fail to recruit a sufficient number of members, we will attract customers by lowering the initial membership fee or providing additional benefits, or we can use the buy two get one free, group discount promotion. Means until income can offset short-term losses. Since our primary income is a monthly fee, this promotion that reduces the initial membership fee will not affect our long-term income plan.

10. Financial status

Member forecast

According to the estimates of the Chamber of Transportation, the comprehensive sports club can accept 29 members per 100 square meters. The fitness center has 7,500 square meters and will have the capacity to accommodate 217 members. A recent survey by the Chamber of Transportation also showed that a newly built fitness facility typically takes 6 to 24 months to meet membership. The calculations of the fitness center have adopted a relatively conservative premise, which is expected to be met within 24 months. According to our market research, it is estimated that pre-sale membership can reach 50% of the total membership. According to the statistics of the Chamber of Transportation, under the consideration of about 30% of the membership withdrawal rate, there will still be an average annual growth rate of 7% within five years.

Membership fee

Based on price data from competitors ranging from 9 km to 12 km, price data from the national fitness industry and our market research, the fitness center charges the following prices:

Family membership fee

First admission fee of 300 yuan 200 yuan

Monthly membership fee 35 yuan 20 yuan

Since there are no fitness clubs in the areas we operate to provide association services, we can only refer to the price of the park area. According to different types of competitions, the price of the park area is in the range of 250 yuan to 375 yuan. We negotiated a decision to apply a consistent fee for all types of competition: 300 yuan per sports team.

Financial revenue and expenditure and debt balance forecast conditions

We will use the loan of 2.25 million yuan for building a house. The current commercial interest rate in the market is 11%. According to conversations with people in the banking sector, we need 40% of the total investment in the village. Investment from central managers and investments from outside investors will be used for purchases, liquidity and construction costs. In addition to this, we have the following conditions:

The membership fee will be calculated according to the price list described in the previous section. After the third year, it is expected that there will be two league matches per night. This estimate is more conservative because the center can accommodate three or more leagues per night.

For skating rinks, miniature golf courses and swimming pools, we estimate the percentage of average sales in the industry.

We plan to lease the venue for the fast food department, and the rental fee is 4,000 yuan per month. In order to attract renters, we will maintain a fixed rental fee for the first two years and an annual increase of 5%.

The practice room will be rented for 30 yuan per hour, and the future rental fee will increase at an annual rate of 5%.

The management fee includes the salary, salary tax and welfare expenses of the manager. The annual salary of each manager is 50,000 yuan.

The average hourly wage for a regular employee is $10, and the temporary employee is $5 per hour.

Operating expenses are estimated at 87% of sales.

Income tax is calculated at 40% of the profit and is paid quarterly.

The land cost is 650,000 yuan, and the construction and equipment costs are 3.9 million yuan. According to the relevant regulations of the state, the method of double-declining the color of the building calculates the cost of the building for 30 years. The estimate of construction costs consulted with the architectural design firm.

The accounts receivable of such a comprehensive physical fitness center average 11% of sales, and inventory should be 2% of sales.

The advance payment of the center is the insurance fee.

Payables will be paid within 30 days, so we may receive a discount.

Monthly income statement and conditions for financial changes

Revenue will flow in at constant value, as 72% of the income comes from member monthly fees and contractual rental fees.

Operating expenses are accrued on a regular basis and the cost of providing more activities in the summer will be offset by reduced league fees.

Break-even is calculated according to the following formula:

/

Loan interest will be paid on a monthly basis.