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Pamper Me Please



 PAMPER ME PLEASE LLC
    BUSINESS PLAN




Business Plan: Written and developed by MPerfect Enterprises Inc.
1.0   Executive Summary
      Introduction
      The airport is often the central hub for the busiest, time-constrained, heavily stressed people within
      our society. With unhealthy work/life strains continuously emerging for the 21st century business
      traveler and traveler in general, a growing demand for customized stress-relieving, life-enhancing
      services are paramount. As we embark upon a dynamic “microwave” culture where many
      consumers want their needs and wants met as close to “instantaneous” as possible, the success of a
      business will often lie within providing excellent customer service for a customer’s desires at an
      ultra-convenience. In-between hectic flight commutes travelers now want to do more than eat fast
      food, read daily newspapers, and buy expensive souvenirs during their traveling downtimes. They
      want fast options to optimizing their entire emotional state of feeling and being at the greatest levels
      of pleasure, health, and relaxation … of course with as much “pampering” as possible.

      Business Plan Objective – Pamper Me Please at Ronald Reagan Washington National Airport
      Pamper Me Please LLC seeks to continue its excellence in providing value adding spa and wellness
      services by securing a day spa operation within the Ronald Reagan Washington National Airport by
      October 2010. The ideal location would be within the pre-security National Hall section of the
      airport so PMP can maximize upon the demand presented by not only travelers, but day-to-day local
      patrons and airport employees. The purpose of this business plan is to show the overall operations
      and strategy of PMP as a whole, with a specific focus on the operational and financial viability of
      PMP within the Ronald Reagan Washington National Airport.

      Sales Forecast
      Conservative estimates project Pamper Me Please generating $23.1K as an airport RMU during the
      1st year (3 months) beginning in Q4 2010. Massage services and retail products will be the core
      offerings. Stronger sales at a full year of operation in 2011 will total over $240K at 14% net profit.
      In 2012 PMP will use a $40K loan to expand the RMU to a full-line day spa at the airport, growing
      its revenues from $484.8K in 2012 to $584.5K by 2014 at a net profit of 12%.

                                   Pamper Me Please, LLC
                          Ronald Reagan Washington National Airport
                                     Financial Highlights
                                 5 Yr. Profitability Projection

              $600,000

              $500,000
                                                                                      Sales
              $400,000
                                                                                      Gross Margin
              $300,000
                                                                                      Net Profit
              $200,000

              $100,000

                    $0

             ($100,000)
                              2010         2011          2012         2013     2014
                            * Airport Day Spa RMU beginning Q4 2010
                            * Expansion to Full line airport day spa in 2012




                                         CONFIDENTIAL AND PRORIETARY                                             1
Industry Overview
According to the International Spa Association (ISPA), in 2006 the US spa industry generated $9.4B
in gross revenue. Profits increased from 8% in 2003 to 17% in 2006 which suggests streamlined
operations that better manage expenses. The average revenue for a spa is $624,000 with the median
being $250,000. The Airport Spa segment is emerging but still mostly oligopolistic with less than 20
companies operating in over 20 airports. Numerous socio-cultural trends support a growing demand
for spa and wellness services amongst various target market segments. The most critical external
risks lie within the uncertain economic state of the US market.

Why Choose Pamper Me Please for the Ronald Reagan Washington National Airport?
In analyzing the lack of success with the previous spa company operating out of Ronald Reagan
Washington National Airport a couple of years ago, Pamper Me Please has identified a couple of
critical factors that will make its operation much more successful.

   Pre-security National Hall location
    Part of the failure of the previous spa company was its sub-optimal location post security inside
    the terminals. This location is more hectic and unappealing to the busy traveler with less
    downtime when choosing to remain within the terminal. Unlike an international airport, Ronald
    Reagan Washington National Airport has fewer travelers with shorter wait times which impact
    the base of demand for a spa company. Pamper Me Please will thrive by operating within the
    heavy-traffic pre-security area of National Hall. Pamper Me Please will be able to maximize
    upon the attractiveness and accessibility National Hall provides to traveling customers as well as
    local non-traveling customers and airport employees who frequently patronize National Hall
    vendors.

   Increased demand for spa and wellness services
    With the passing of several years since the previous spa’s operation, a boom in the demand for
    spa and wellness services has been evident. Men have been identified as a growing sector for
    such services in addition to kids. The image of spa and wellness services have emerged from
    merely an exclusive activity for an exclusive market, to a significantly frequented service for
    many seeking to maintain a healthy and stress-relieving lifestyle. This is reflected in the statistic
    of 1 in 4 Americans now having received spa services.

   “Pampering” High Quality Customer Service
    Pamper Me Please brands itself with the slogan “You Deserve To Be Pampered!” This slogan is
    reflected in the work ethic, professionalism, and customer service continuously provided by all
    PMP technicians. Numerous company policies, management practices, promotions, and
    branding activities will be implemented to ensure all Pamper Me Please customers have an
    “irresistible” wellness experience … one in which they will want to tell everyone about. .

Pamper Me Please has several years of experience now in serving thousands within the Washington
DC area as a mobile day spa with high quality service in delivering “irresistible” wellness. Pamper
Me Please will be able to leverage upon the booming demand for wellness actualization by
channeling its “pampering” spa services in creating an “irresistible wellness pampering hub” for
Ronald Reagan Washington National Airport. Pamper Me Please’s ultra-relaxing massage services
adds a cutting-edge appeal to the airport’s value to business travelers needing to relieve stress,
personal travelers desiring a catalyst for their vacation, airport employees looking to temporarily
escape the tribulations of their work day, and local patron’s continuance towards enjoying the caveat
provided by National Hall.


                             CONFIDENTIAL AND PRORIETARY                                                2
Conservative projections shown in this business plan also reflect a strong revenue and profit
      generating business to add to the airport’s vendor portfolio. By the end of the 6th month of
      operation, Pamper Me Please will have recouped all initial investments and soon afterwards begin
      generating over $20K on average a month while achieving net profits of 14% by end of year 2. Such
      projections are conservative when identifying that these financials are achievable if Pamper Me
      Please is able to provide an average of just 33 massage services a day which breaks down to
      approximately just 3 an hour with 2 technicians on duty. Projections also reflect the airport’s break
      even commissions totaling over $8.7K by end of year 2. Pamper Me Please will then be in a great
      position to expand to a full-line day spa within the airport, achieving over $484.8K, $531.3K, and
      $584.5K respectively over the course of year 3 thru year 5 with net profits reaching 12% after the
      initial full-line spa investment. Projections show the airport’s break even commissions from year 3
      to year 5 totaling over $45K. Such positive revenue and profit streams can be leveraged upon in
      Pamper Me Please expanding to other Westfield airports across the country.

      In addition, as a female African-American owned company, Pamper Me Please is in a great position
      for securing a LDBE certification for Westfield and the airport’s accrediting purposes. Overall,
      Pamper Me Please’s ability to provide phenomenal spa/wellness experiences and achieve attractive
      financial projections in combination with being located within an ideal airport area within National
      Hall (pre-security) makes Pamper Me Please a great business venture for Ronald Reagan
      Washington National Airport.

2.0   Company Profile
      2.1 Company Overview
      Pamper Me Please LLC is a mobile beauty, spa, health, and wellness business that provides clients a
      multitude of professional services to clients within their homes, offices, corporations, hotels, and
      exclusive special event locations for all occasions. Pamper Me Please was founded in September of
      2003 by Ms. Roland Turner in Washington D.C and has operated throughout the D.C, Maryland, and
      Virginia areas. Pamper Me Please employs experienced, licensed, insured, and certified technicians
      to provide customer service at the highest quality ensuring the highest levels of customer satisfaction
      as a priority for all clientele. As a female owned - 100% minority owned business that can qualify as
      a local disadvantaged business (LDBE), Pamper Me Please has positioned itself for significant
      growth and multi-faceted success.

      2.2 Background/History
          2.21 Founder – Ms. Roland Turner




         President, CEO, and Founder Ms. Roland Turner started Pamper Me Please to create more
         opportunities and deliver greater customized solutions to professionals within the beauty, spa,
         and wellness industry. With a 10-year background in communications and public relations, Ms.
         Turner bridges the gap in employing spa professionals to service the community. Developing a
                                  CONFIDENTIAL AND PRORIETARY                                                3
travel spa with wellness services is the niche she decided to fill in order to be a “day spa
alternative” in a world that has so many spas. “Everything is mobile these days from car
detailers to pet groomers, why not a wellness day spa to help those busy people like myself take
better care of themselves”, says Ms. Turner.

Ms. Turner has over 15 years of experience within the cosmetology industry. She has
established a partnership with the Baltimore School of Massage and is a member of the Advisory
Board. Ms. Turner also created and instituted an entire wellness program as the appointed
Director of the Massage Program at Fairland Sports and Aquatics Complex, which is the largest
recreational facility in Prince George County serving 1500 patrons daily. This facility is under
the Maryland State Government’s PG Parks and Recreation where she supervises a massage staff
of eight trained professionals. In addition, Ms. Turner currently hosts a Radio Talk Show on
WPGC 95.5 FM on Sunday mornings at 6:00am and Saturday mornings on Heaven1580am at
6:00am for the Greater Washington Urban League. She has also worked for NBC Television,
BET Cable Networks, and National Public Radio. Her educational background includes a B.S.
Degree in Journalism and a minor in Business.

2.22 Accomplishments
Pamper Me Please has conducted over 100 events in serving over 1,500 individuals and 50
companies that include:




                        CONFIDENTIAL AND PRORIETARY                                                4
Other special events and conferences for organizations include:

          Miner Elementary School

          The National Urban League Conference

          Jack and Jill of America

          US Marshalls Court House

          Alpha Kappa Alpha Sorority

          The Annual CITE Conference for Verizon

          7th Annual Celebrity Golf Tournament - Greater Washington Urban League

          The Annual Sister to Sister Sorority Luncheon

          The Young Lawyers Association of Baltimore

          The Heart and Style Conference for Heart Disease

   Pamper Me Please LLC was selected to receive the prestigious Top 100 Minority Business®
   Enterprise Award for 2009. This honor is designed to acknowledge and pay tribute to
   outstanding women and minority business owners in Maryland, Virginia, Delaware, and the
   Washington DC. Pamper Me Please was also recognized by BlackEnterprise.com as a rising
   mobile beauty, spa, and wellness minority owned company.

2.3 Vision/Mission
The vision for Pamper Me Please is to lead a life-fulfillment movement that enhances the overall
well-being of people by providing the most therapeutic, convenient, and relaxing experiences to our
customers while leveraging goodwill and economic prosperity to all employed and partnered with
our company.

                           CONFIDENTIAL AND PRORIETARY                                                5
Our mission statement is:
“To promote wellness services throughout the community in an effort to educate clients on the
importance of taking better care of themselves in order to lead more productive, healthier, and
happier lives. We will also provide employment opportunities to technicians in the trade industry in
an effort to increase their economic stability while providing more career opportunities. We are
committed to educating trade professionals through our approach to quality customer service,
marketing, promotion, and business sophistication.”

2.4 Management & Organization




The executive management for Pamper Me Please currently falls within the responsibilities of Ms.
Turner as Founder/CEO/President. Independent consultants with MBA experience have been
outsourced consistently to contribute to the business development and marketing planning.
Consulting services to date have been provided by MPerfect Enterprises Inc. and Teneya Gholston,
MBA. In addition, Pamper Me Please has outsourced its accounting functions to ACS Business and
Accounting Solutions. All legal functions are outsourced by Michael K. Catoe. 18 technicians are
currently employed as independent contractors, each being trained and groomed to carryout
managerial responsibilities.

   2.41 Divisions
   Pamper Me Please has operated within 4 mobile business divisions entitled: Corporate,
   Tradeshows & Conferences (T&C), Special Events, and In-Home. The Airport division has been
   most recently developed to maximize upon the growing opportunities for flight travelers.

         2.411 Airport
         Function: To provide travelers, employees, and patrons within airport facilities wellness
         services to enhance the traveling airport frequenting experience

         2.412 Mobile
         Corporate
         Function: To provide corporations/organizations on-site wellness services for employees
         to relieve stress, increase productivity, and boost morale within the workplace

         In-Home
         Function: To provide individuals, families, and groups wellness services within the
         comfort of their own homes for an ultra convenient relaxation experience




                            CONFIDENTIAL AND PRORIETARY                                                6
Special Events
               Function: To provide individuals in group settings associated with special events (i.e.
               weddings, spa parties, birthdays, reunions) wellness services to enhance such happy
               momentous occasions

               Tradeshows & Conferences
               Function: To provide the attendees and coordinators of tradeshows on-site wellness
               services to enhance the attraction and satisfaction value of the events

               Organization Chart (functional)

                                    EXECUTIVE                       * Mktg Consulting
                                                                    * Acctg/Legal
                                                                    * Sales
                                    *Technicians
                                       Staff




                 AIRPORT                                       MOBILE




                                                         In-home                            Tradeshows &
                                                                                            Conferences

                                    Corporate                               Special
* Outsourced                                                                Events
  functions



               Pamper Me Please will also establish a Hotel Division in 2010.

  2.42 Company Culture
  We strive to sustain a culture of professionalism, happiness, and overachievement to create a
  wellness utopia-like experience for our customers in addition to our technicians. We believe that
  “pampering” is a divine gift that should be shared with as many people as possible at the highest
  quality to reflect a true relaxation experience.

  2.43 Core Values
   Integrity – Maintain the highest ethical standards
   100% Customer Satisfaction – Create the most gratifying wellness experience
   Leverage – Always build upon our competencies as platforms for excellence
   Optimal Balance – Optimize all areas of work and personal life to fully enjoy both
   Life Fulfillment – Create, experience, and “feel” the desired results

                                  CONFIDENTIAL AND PRORIETARY                                            7
2.44 Start-up Summary: Ronald Reagan Washington Airport PMP Day Spa Site
PMP seeks to secure a kiosk location at the Ronald Reagan Washington Airport, pre-security ideally
below the escalator within National Hall. The combinational influx of numerous travelers and local
patrons at National Hall presents an optimal marketplace for driving business. Below are the
estimated start-up costs for the PMP day spa kiosk:

                                Start-up Expenses                  $
                            Legal                                  $400
                            Business Consultation                  $500
                            Brochures, Marketing                 $3,500
                            Materials, Grand Opening
                            Coupons, Flyers, website
                            Massage Chairs (3)                   $1,350
                            Reflexology Chairs (2)                $500
                            Retail Product                        $450
                            Product Supplies                      $288
                            Computer & Software                  $1,000
                            Insurance                             $600
                            Rent                                 $2,500
                            Maintenance Fee                         $55
                            Signage Fee                           $250
                            Security Deposit                      $500
                            Accountant                            $400
                            Linens/Wipes/Paper Towels             $300
                            Oils & Lotions                        $100
                            Décor & Furniture                     $500
                            Advertising                           $500
                            Other (set up fees)                   $500
                            Total Start-up Expenses             $14,193



                                           Start-Up Summary
             $20,000

             $18,000

             $16,000

             $14,000

             $12,000

             $10,000

              $8,000

              $6,000

              $4,000

              $2,000

                 $0
                          Expenses            Assets        Investments   Loans
                       * Initial Investment made by owner




                                CONFIDENTIAL AND PRORIETARY                                      8
3.0   Products & Services
      3.1 Airport
      Pamper Me Please is a service-driven wellness business. All professional services and products that
      will be provided at the Airport(s) include:

         3.11 Chair Massage




         Customers remain fully clothed while receiving a corporate seated chair massage treatment based
         on Acupressure and Swedish massaging from an expert technician upon their neck, shoulders,
         back, arms, and hands.

         3.12 Reflexology




         Customers receive an intense massage incorporating manipulation and pressure, applied to reflex
         points located on the feet and hands to help balance the entire body (shoes and socks can be
         removed).

         3.13 Beauty & Wellness Products
         Various high quality wellness products and sales literature will be made available for sale to
         provide further therapeutic valuables to our customers (i.e. lotions, balm, oils, candles, spa &
         grooming products, etc.)

      3.2 Other Divisions - Products & Services
          Pamper Me Please is a full-service mobile “1 Stop Shop” for beauty, spa, health, and wellness
          services. Thus, the Corporate, Tradeshows & Conferences, Special Events, and In-Home
          divisions provide the following products and professional services:
                                  CONFIDENTIAL AND PRORIETARY                                               9
   Full Body Massage Therapy

            Corporate On-Site Seated Massage

            Reflexology

            Facials and Waxing

            Manicures and Pedicures

            Body Wraps and Treatments

            Make-Up

         (Brochures and product/service descriptions are available in the appendix)

4.0   Industry Analysis
      4.1 Industry Overview
          4.11 Spa Market Financials & Statistics
          The US spa industry includes several operations including health, beauty, wellness, nutrition,
          fitness, and recreation. According to the International Spa Association (ISPA), in 2006 the US
          spa industry generated $9.4B in gross revenue. This is a slight 3.4% decline from the 2005
          $9.7B revenue total which falls well within the margin of error according to ISPA. The revenue
          generated within the industry as a whole has grown significantly since its total of $7B in 2003.
          Profits increased from 8% in 2003 to 17% in 2006 which suggests streamlined operations that
          better manage expenses.
                                        Spa Industry - Revenue

                         10
                           9
                           8
                           7
          Revenue
          (billions)       6
                           5
                           4
                           3
                                                  * N/A
                           2
                           1
                           0
                                  2003            2004           2005           2006
                  •Discrepancy identified with ISPA 2004 report due to change
                  in how revenue is calculated

         The average revenue for a spa is $624,000 with the median being $250,000. These statistics are
         heavily determined and skewed by variances amongst the significant number of day spas. The
         SpaFinder Day Spa Report showed that day spas either have relatively small revenue where more
         than 50% of spas have revenues of less than $250,000 per year, or have revenues over $1
                                     CONFIDENTIAL AND PRORIETARY                                         10
million.
The US spa industry employed an estimated 232,700 people in 2007. Average annual growth
from 2004 to 2007 was 4% for total employees, 2% for full-time employees, 3% for part-time
employees, and 10% for contract employees reflecting a greater number of technicians who are
contracted at spas to reduce overhead costs.

4.12 Spa Market Segmentation
The spa industry is segmented into 6 primary categories: Day Spas, Hotel/Resort Spas, Club
Spas, Medical Spas, Destination Spas, and Mineral Spas. Day Spas, which include mobile and
airport spas, represent 80% of total spas. Medical spas are the fastest growing segments while
Hotel/Resort spas have achieved the highest revenue as they have represented over 41% of
revenue despite accounting for 9% of spas. Day spas, the largest segment, accounts for just 49%.
Medical spas have achieved the largest profit margins at 28% followed by Hotel/Resort spas at
24%.

                             Spa Industry – Segmentation
                             (%)
                                       Club 7%     Mineral & Destination 1%
                          Medical 9%


           Hotel-Resort
           9%




                                       Day Spa
                                       80%




                       Spa Industry - Profits by Segment

            30                                        28%
                                   24%
            25
 Profit                                                       17%
 (%)        20       16%

            15

            10

             5

             0
                    Day
                    Day          Resort-     Medical
                                             Medical          Club
                                 Hotel

                        CONFIDENTIAL AND PRORIETARY                                            11
4.13 Additional External Factors
   Economic
   Macro
    The US economy is in a state of slow recovery due to the negative impact from the decline in
       the housing market, rising oil prices, and tight credit markets
    According to Standard & Poor’s, GDP growth is expected to decrease from 2.2% in 2007 to
       1.9% in 2008. Consumer spending growth is expected to decrease to 1.8% in 2008 (from
       3.1% in 2006 and 2.8% in 2007). Such factors create a risk of economic recession within the
       near future.
    During 2007 the unemployment rate in the US rose to 5%, Washington DC rose to 5.7%
    The inflation rate decreased to 2.3% in 2007 but a hike in November of over 4% threatens to
       stop the interest rate cuts that had been consistently implemented to revive the sluggish
       economy

   Political
    A significant geopolitical risk remains with the war and turbulence within the Middle East
    The 2008 US Presidential election represented an extraordinary change in government with
      the unique historical election of Barack Obama, the 1st African-American US President.
      New anticipations of hope and change can create a psychological and financial spike within
      the wellness industry

   Socio-cultural
    1 in 4 Americans have been to a spa as there are more than 32 million active spa-goers
    Increased work and life responsibilities have created and additional demand for reducing
      stress in addition to engaging in more health, beauty, and wellness-oriented activities
    31% of all US spa goers are men, reflecting a growing demand and cosmetic male revolution
    Growing demand for kid beauty and wellness services
    Evolving spa goers desire spa experiences customized to their personal needs and desires
    The leading education programs and workshops offered by US spas include those focused on
      nutrition, healthy eating, and stress management
    Integration of day spas within fitness clubs

   Technological
    New spa equipment is being developed with greater ergonomic, digital, and environmental
      friendly capabilities
    A growing number of website and blogging communities have been set up to share spa-
      related information and experiences
    Cutting edge technological advancements have been made in the realm of endermologie
      (reducing cellulite via massaging). Led by LPG, a leading company in body treatment and
      tissue technology, the latest “E6” model was released with greater ergonomic and precision
      and qualities

4.2 Competition
(The competitive assessment of this plan is focused on airport spas)



                           CONFIDENTIAL AND PRORIETARY                                             12
4.21 Supply Chain
             Vendors at an airport are essential to adding financial and brand value to an airport, its
             constituents, and the overall experience of the airport traveler (end consumer). In evaluating the
             value components of the airport spa industry (an emerging niche spa segment with limited data
             available) an assessment incorporates identifying the value each supply chain member adds as it
             is reflected through its share of the price incurred by the airport traveler. With $375 being the
             estimated average price of an airplane ticket and $30 being the estimated average price for a
             service at an airport spa, the average total price for an airport traveler/spa service patron is $405.

                                   Airport Day Spa Supply Chain
                                       Value Chain Analysis
                            (Based on est. $405 total airport/spa service total price



                                               Day                   Technicians                  End
Airlines               Airport
                                               Spa                                              Consumer




   Value
                          Value                   Value                       Value               Over 50% are
   $263
                          $112                     $24                         $6                 Business
    65%
                           28%                      6%                         1%                 travelers
  Growth                 Growth                 Growth                    Growing use             Time sensitive
  Rate: 4%               Rate:3%               Rate:12%                        of
                                                                           contracted             Accustom to
   Cost                  Cost                    Cost                     technicians             premium pricing
  Drivers               Drivers                 Drivers
  Oil/Fuel               Labor                  Labor
   Labor              Maintenance        Operational Products
                      Operational           Professional
                                              Products



             Airline companies are the chain captains and are strongly affiliated with Airport companies.
             Collectively they represent 93% of the value primarily because they provide the core service for
             the traveler. Therefore, airport day spas are highly susceptible to the fluctuations of the airline
             industry. However, with lower growth rates Airport Day Spas provide a unique service in
             growing demand that can optimize airline/airport revenues. The technicians deliver the spa
             service to the end consumer. Technicians make up only 1% of the value but 20% of the spa
             revenue on average. Based on these factors, the Airport Day Spa can do the following to
             optimize its value within the supply chain.
              Align with target airline companies to build spas close to airline gates
              Add value to specific airports with more sites to increase revenue/profits
              Optimize arrangements with technicians by establishing core groups to contract out and ramp
                up to daily compensation rates with commissions to better manage costs

             4.22 Competitive Forces
                  Rivalry among competitive firms – LOW
                  There is normally just 1 company with a spa in an airport, 2 at the most.

                                      CONFIDENTIAL AND PRORIETARY                                                  13
Potential entry of new competitors – LOW
     Although most spa companies in airports have similar capabilities, there is a significant
     limit on entering an airport if another spa is currently there. However, there is a risk of
     existing day spas leveraging their operation to enter the emerging Airport Spa sector

     Potential development of substitute products - LOW
     Due to the niche service orientation of spas and the airports’ tendency to optimize space
     with a variety of vendors most appropriate to travelers

     Bargaining power of suppliers – HIGH
     Airports have full autonomy of approving vendors and determining terms to operating

     Bargaining power of customers – LOW
     Airport travelers are isolated in locations with extreme time constraints and low to no
     alternatives for spa services while at an airport.

     The multiple low competitive forces due to the niche services of an airport spa in
     combination with constrained traveling dynamics provide and attractive market segment
     with minimal competition once operating within an airport location

4.23 Airport Spa Competitors
     An independent survey of airport spas showed that the entire Airport Spa segment is
     emerging but still oligopolistic with less than 20 companies. They are located in over 20
     airports and over 40 locations within those airports, plus several are expanding. Most of
     these spas are located post security (primarily due to the setup of the airport with minimal
     pre-security vendors) and are full line stores that service multiple massages, facials,
     manicures, pedicures, and other treatments. Spa companies with multiple locations
     throughout a specific airport tend to have a kiosk site within their mix as a means to
     enhancing coverage and brand value within the airport. Some of the smaller companies
     also service from kiosks to better manage profitability.


          Airport Spa Competitors Financials/Statistics Summary

 Avg.         Avg.
 Daily       Monthly                       Avg. #     Avg. Tech        Avg. Hrs
 Sales        Sales       Avg. Yearly      Techs      Daily Pay           of
  est.         est.        Sales est.       est.        est.           Operation




$2,000       $56,000       $672,000          10           $100             14




                        CONFIDENTIAL AND PRORIETARY                                                 14
Airport Spa Chair/Foot Massage Pricing – Avg. est.

                             Service                         Avg.
                   Chair Massage - 10m                       $ 13
                   Chair Massage - 15m                       $ 20
                   Chair Massage - 20m                       $ 27
                   Chair Massage - 30m                       $ 41
                   Foot Massage & Soak – 10m                 $ 18
                   Foot Massage & Soak – 15m                 $ 24
                   Foot Massage & Soak – 20m                 $ 35
                   Foot Massage & Soak – 30m                 $ 48

               * Reflexology was not a standard service with most foot massage and soak services.

               Competitor Analysis Takeaways
                Airport spas achieve a much higher profit margin, with bigger stores achieving an even
                 greater margin due to lower payout scales to technicians

                   Bigger day spas with more services can provide greater revenues and profits only when
                    the spa can efficiently manage higher overhead costs

                   Chair massages are the most popular services

                   Revenue can double during busy/peak times

                   Pricing is very consistent amongst airport spas


5.0   Challenge Assessment
      (For operating an Airport Spa)
      Challenges
       Maintaining and managing a reliable, quality technician work force
       Minimizing impact of slow times
       Optimizing revenue and profits with a small limited-service store
       Securing additional management to carryout tactical operational responsibilities

      Solutions
       Secure an abundance of technicians and stabilize schedule routine
       Implement quality assurance regimen/program
       Empower core technician group with managerial responsibilities and hire management/assistant
         upon expansion once demand is fully determined

                                   CONFIDENTIAL AND PRORIETARY                                         15
   Create significant promos and discounts to maximize sales from consistent base of airport
          employees
         Create traveler customer incentives to maintain consistent traffic

6.0   Strategy and Implementation
      6.1 Macro Business Strategy
      Pamper Me Please will implement focus strategies to grow the business organically primarily
      through market penetration, market development, and alliances. This strategy includes increasing
      market share for wellness products and services within the current Pamper Me Please business
      portfolio for the DC metro area through the implementation of greater marketing efforts. In
      addition, the business seeks to consistently grow by introducing the core spa and wellness
      services/products into new market segments. The airport RMU within Ronald Reagan Washington
      National Airport serves as the cornerstone market development and alliance initiative. Pamper Me
      Please will leverage upon the success of its airport division to expand into other major US
      metropolitan areas as an airport and mobile day spa conglomerate with a plethora of value-adding
      alliances. Pamper Me Please will also leverage its brand value upon new service/product
      development opportunities that are aligned with its wellness competencies.


              Pamper Me Please Business Strategy
             Market Penetration                       Market Development
                 Chair Massages                              Airports
              Reflexology Massages                            Hotels
               Wellness Products                            Kids Spa
                Full Line Services                        Major US cities

                                     ALLIANCES
                                       Businesses
                                      Organizations




                          Service/Product Development
                                       PMP Products
                                    Wellness Education
                             Professional Development (Techs)




      6.2 Strategic Goals and Objectives
          6.21 Goals
          1. Become a leading conglomerate for mobile, airport, hotel, and children day spas within the
              DC metro market

          2. Expand PMP to multiple major US markets

          3. Build multiple streams of revenue by leveraging the PMP brand

                                     CONFIDENTIAL AND PRORIETARY                                          16
4. Build significant technical and professional development opportunities for wellness
   professionals

5. Catapult a philanthropic and education platform for promoting physical, economic, and civic
   fulfillment

6.22 Objectives
1st yr.
1. Generate total revenue of $70k
      $20K - Airport
      $50K - Mobile

2. Achieve 50% gross margin with Airport Division

3. Secure corporate clientele with re-occurring weekly, bi-weekly, and monthly requests

4. Donate to sickle cell and breast cancer foundations

3rd yr.
1. Expand to Full-Line Day Spa at Ronald Reagan Washington National Airport

2. Generate total revenue of $590k
    $480K - Airport
    $110K - Mobile

3. Achieve 45% gross margin and 8% net profit with Airport Division
    $230K – Airport Gross Margin
    $39K – Airport Net Profit

4. Secure investment of $40K

5. Employ 2 part-time technicians at Ronald Reagan Washington National Airport

6. Establish Manager and Assistant at Full-Line Airport Spa

7. Establish Marketing and Sales functions (in-house/outsource)

8. Increase donations to sickle cell and breast cancer foundations in correlation to business
   growth

5th yr.
1. Generate total revenue of $745k
    $580K - Airport
    $175K - Mobile

2. Achieve 45% gross margin and 12% net profit with Airport Division
    $260K – Airport Gross Margin
    $70K – Airport Net Profit

3. Expand Full-Line Day Spa to 2 additional airports within major US markets
                        CONFIDENTIAL AND PRORIETARY                                             17
4. Secure investment of $100K

            5. Increase technicians staff, part-time technicians, managers, assistants, and marketing-sales
               functions in direct correlation with business growth

            6. Increase donations to sickle cell and breast cancer foundations in correlation to business
               growth

         6.3 Management Plan
             6.31 Personnel Plan
             The PMP personnel are mostly contracted technicians that are all experienced, licensed, insured,
             and certified. All technicians are 1099 and will initially get paid 100% commission. This is
             effective for significantly minimizing overhead and insuring that PMP’s biggest cost driver will
             only be incurred in direct proportions to sales generated. The Ronald Reagan Washington
             National Airport RMU will make use of the available pull of 18 technicians within the mobile
             operation in addition to securing more. A total of at least 8 technicians will be solely dedicated
             to the airport kiosk. At least 4 technicians will work daily; 2 technicians per 6 hour shift during a
             12 hour work day from 7am-9pm (the normal operating hours for vendors within National Hall
             at Ronald Reagan National Washington Airport). During busy seasons and identified peak times
             such as the holidays when travel is more extensive, there will be 3 massage technicians staffed
             during each shift. If there is ever a problem and a customer needs to speak with a manager
             immediately, the owner’s cell phone number will be posted on the RMU to handle issues.

            By year 3 PMP plans to expand into a full-line spa within the Ronald Reagan Washington
            National Airport. 12 additional technicians will be contracted during these expansions; PMP will
            also initially hire a part-time manager, assistant, and 2 part-time technicians for the Ronald
            Reagan Washington National Airport full-line spa. PMP will continue to hire technicians,
            managers, and assistants at a similar rate during expansions in enhancing PMP’s personnel
            stability, quality, and cohesiveness. By year 5 an average of at least 18 technicians will be
            secured for each full-line airport expansion.

     .
                                         PMP Personnel Plan – Airports

                                                                                                      # of
                                                        # of          # of Part-                  Technicians
                                                        Contracted    Time           Total # of   per 6hr.shift
         PMP Airport Site                               Technicians   Technicians   Technicians    (12hr. day)
Washington Airport Kiosk - Yr. 1                              8             0            8              2
Washington Airport Full Line - Yr. 3                         17             3           20              5
(Yr. 1 WA RMU are included within Yr. 3 WA Full-line)


            Executive management will consistently explore qualified technicians for sourcing. An
            orientation and training will be conducted for every new technician that works at the airport spa.
            Technicians will be trained to carryout managerial, cashier, communication, and re-stocking
            responsibilities. Technicians will initially be compensated $6 per 15 minute massage, with all
            compensations for other massage durations being in direct correlation to this rate. Incentives
            will include sliding scale rate compensation based on production and percentage of service sales
            to retail. In addition, contests will be held monthly to generously reward high performers.
            Competitive hourly wages will be paid to part-time employees in addition to annual raises.
                                            CONFIDENTIAL AND PRORIETARY                                           18
6.4 Marketing Plan
    6.41 Target Market
         Pamper Me Please’s primary target consumers are middle class adults with average
         household incomes of $100,000 between the ages of 35-55 who either reside within or
         frequently visit the DC metro area. PMP’s business portfolio seeks to initially penetrate
         the market segments encompassing the following demographics and psychographics
         within the DC metro area:

              Moderate to high frequenting female spa goers (1-4 times a month) in groups
               engaging in special events (weddings/birthdays/etc.)
              Businessmen and white collar male workers
              Fortune 500 companies
              Government-based organizations
              Airport business travelers (male & female) who reside in 4 star or better hotels
              Airport vacation travelers (male & female) who reside in 4 star or better hotels
              Consumers with chronic pain or old injury issues

           The demographics of Ronald Reagan Washington National Airport/Westfield greatly
           compliment the target market strategy of PMP. Thus, the Ronald Reagan Washington
           National Airport will initially garner the greatest focus due to the high traffic and strong
           concentration of PMP’s target consumers. The primary target market within the airport
           will be the business traveler. Over 18 million customers travel through the airport with
           56% business travelers and 44% personal. 52% are male and 48% are female of an
           average age of 44 yrs., with the average household income being $107,600. PMP will be
           able to thrive within such an environment and add a unique growing service to a site
           generating $71.2 million in sales with an average terminal dwelling time of 75 minutes,
           more than enough time to receive a relaxing spa service. In addition, PMP will be able
           to maximize upon the attractiveness and accessibility National Hall provides to non-
           traveling customers, who frequently patronize National Hall vendors, as a stationary site
           for driving PMP business.

           Secondary targets for PMP’s entire operations, including the Airport, will include Airport
           employees, pre-teens between the ages of 9-13, and young adults between the ages of 18-
           30.

   6.42    Brand Positioning
           The company name “Pamper Me Please” represents a consumers’ call to action for an
           extraordinary above and beyond service they deserve. PMP responds to the consumer’s
           demand for special attention and treatment with the following slogan:

           “You Deserve To Be Pampered!”

           The PMP brand will represent the premiere spa of ultra-customizing mobility for
           delivering “irresistible” wellness. PMP will provide luxurious spa services and products
           at a level of quality comparable to the Waldorf Astoria in combination with the on-
           demand responsiveness and availability of a Pizza Hut delivery. PMP creates an


                            CONFIDENTIAL AND PRORIETARY                                              19
environment for men and women to receive quick, accessible, convenient, long-lasting,
       and affordable stress relief both physically and mentally.

       PMP’s airport RMU at Ronald Reagan Washington National Airport will incorporate the
       aforementioned brand qualities and become the “irresistible wellness pampering hub” for
       business travelers needing to relieve stress, personal travelers desiring a catalyst for their
       vacation, and airport employees looking to temporarily escape the tribulations of their
       work day.


6.43   Products and Services
       6.431 Airport
             PMP will initially implement a core-service focus strategy to efficiently respond
             to the demand at the airport RMU with the highest level of customer service.
             PMP will provide a small select group of high quality massage services in
             combination with unique wellness products in delivering a fast, high-impact
             wellness experience to its customers. This will also enable the busy traveler to
             make a comfortable quick decision regarding their preferred service available.
             All PMP services provide a natural means to strengthening and healing the body
             The massage and reflexology services refresh the mind, body, and soul long after
             the client has left the airport. The product lines sold will relax and invigorate our
             clients at their offices or in their homes days and months later as they use the
             products - remembering PMP at the same time.

              The On-Site Seated Massage is the number #1 wellness program geared towards
              the well being of corporate travelers. In today’s busy workforce, the business
              traveler is often already stressed on a highly demanding job. Traveling just adds
              to this stress level as passengers deal with check-in, go through extensive security
              checks, and take airport shuttles to New York, Boston, and other destinations.
              PMP’s concept of the Seated Massage takes this stress level into account and
              alleviates it through timed increments of massage on ergonomically designed
              massage chairs.

              Chair Massage
              The corporate seated chair massage is the standard and most requested service
              within the day spa industry. Swedish massaging is combined with acupressure
              techniques by hand, elbow, or the aid of various devices on different acupuncture
              points on the surface of the body (primarily upon the neck, shoulders, back, arms,
              and hands). This massage treatment improves circulation, eases muscle aches and
              tension, improves flexibility, and creates relaxation. Massages are given in 10,
              15, 20, and 30 minute increments while customer is seated in an ergonomic chair.

              Foot Massage & Soak/Reflexology
              Customers recline in a comfortable chaise lounge and receive an intense massage
              from an expert technician with choose of the standard Swedish therapy or the
              Reflexology treatment. Reflexology incorporates manipulation and pressure
              applied to reflex points on the feet and hands to help balance the entire body. It
              also improves circulation and stimulates the nervous system. Foot Balm is
              massaged into the feet for a soothing sensation. Treatments are given in 10, 15,
              20 and 30 minute increments. The customer is allowed to remove shoes & socks.

                        CONFIDENTIAL AND PRORIETARY                                                20
Massage Therapy
        Service          (Swedish/Acupressure)         Reflexology
                                                       To improve the
                         To improve the function     function of organs,
                             of tissue directly        glands, and all
       Purpose                   stimulated         systems of the body
                         Neck, Shoulder, Back,
   Body Part Focus           Arms, & Hands             Hands & Feet
                            Uses large muscle
                           movements (hands,        Uses small muscle
                          arms, elbows, & other         movements
  Technique Applied             devices)             (thumbs/fingers)
        Seated                     Yes                      Yes
  Use of Oils/Lotions              No                       Yes
       Clothing                                     Removal of shoes &
    Requirements              Fully-clothed                socks
  Time Durations (m)          10/15/20/30               10/15/20/30
                                                         Total Body
                                                    Relaxation; Balance;
                         Local muscle relaxation;   Circulation, Nervous
       Benefits                Circulation          System Stimulation


Beauty & Wellness Products
PMP will carry and continuously stock high quality wellness product
consumables and literature as add-on sales to massage services in addition to
stand-alone products for a variety of therapeutic purposes. These items include:
 Lotions (skin/sun-tan)
 Balms
 Oil/Aroma Baths
 Candles
 Spa & Grooming Products
 Creams/Preservatives
 Body Wraps/Face Masks
 Body Packs
 Wellness books
 Relaxation Music CDs

Competitive Advantages
PMP’s comprehensive beauty, spa, health, and wellness service/product portfolio
will provide unique competitive points of difference in separating itself from
other airport and day spas through the following:
  Supreme customer service and professionalism
  High-quality massages
  A haven like relaxing environment with “irresistible” wellness attractions
    (will include aromas, soothing music, and enticing spa décor)
  Emerging wellness knowledge literature and insight
  Cutting edge high quality products



         CONFIDENTIAL AND PRORIETARY                                               21
Competitive Points of Parity
        PMP will maintain an equal degree of industry product-service competencies in
        relation to airport and day spas through the following:
         Industry standard massage equipment
           (ergonomically designed chairs that can hold 400lbs)
         Use of standard operational and professional products with services
         Supply of experienced, licensed, and certified technicians relative to
           operations
         Pricing model

6.432 Other Divisions - Mobile
      Brand value will continuously build, adding to the success of the Airport site due
      to the operational activity of PMP amongst its other divisions as an emerging
      mobile day spa conglomerate. PMP also plans on expanding to a full-line spa
      within the Ronald Reagan Washington National Airport. As a full-service “1
      Stop Shop” for beauty, spa, heath, and wellness services; the following products
      and professional services will be offered:

       Massage Therapy - Corporate seated chair

       Reflexology

       Full Body Massage Therapy
        Swedish
        Deep Tissue (targets deepest layers of muscle in over-stressed areas)
        Combination (mix of Swedish & deep tissue massage)
        Aromatherapy (aromatic oils fused with a soothing energy balancing massage)
        Hot Stone (lava stones/granite rocks are applied to specific acupressure pts.)
        Maternity (catered to pregnant women)
        Cellulite (designed to reduce cellulite)
        Scalp
        Synchronized (use of 2 technicians on 1 person)
        His & Her Couples (designed for couples to receive massage at same time)

       Facials Waxing
        European (classic pore cleansing & restoration)
        Deep Cleansing (Deep cleansing exfoliation & steam used for extractions)
        Refresher (fast facial)
        Mesmerizing Eyes (focused on areas around the eyes)
        Gentlemen’s Facial
        Aromatherapy
        Anti-aging
        Back
        Fruit Enzyme
        Deep Hydration
        Glycolic (use of glycolic to remove deep lines and wrinkles)
        Acne
        Facelift
        Vitamin C (use of Vitamin C antioxidants)
                CONFIDENTIAL AND PRORIETARY                                            22
   Oxygen
                 Hot Stone

              Waxing
               Full Leg              Half Leg        Bikini
               Brazilian             Arm             Underarm
               Back                  Chest           Entire Face
               Chin                  Lip             Brow
               Nose                  Ears            Cheek

              Manicures and Pedicures
               Essentials (standard)
               Men’s Sport
               Hot Oil
               Aromatherapy
               Specialty (use of natural stimulants)
               Aromatic scrubs (a la carte)

              Body Wraps Treatments
               Detoxifying Seaweed (use of seaweed minerals)
               Cellulite
               Body Toning
               Partial (tummy, arms, legs, thighs, etc.)

              Body Treatments
               Hydrating Body Gel (use of gel to moisturize skin)
               Body Polish (softening & ridding of old dull skin)
               Body Scrub (body scrub applied to entire body & rinsed)
               Body Paraffin (use of paraffin to smooth, hydrate, & restore skin)
               Body Mud (beautifying mud applied to tone, firm, & refresh skin)
               Body Bronzing
               Anti-Aging Skin Care

              Make-Up
               Lesson
               Special Event Makeover



6.44   Pricing
       PMP implements a penetration pricing strategy in which the prices of the services and
       products are set at a standard competitive rate. PMP will maintain prices comparable to
       median prices amongst the leading airport and day spa companies. The prices reflect
       value, quality, and luxury at an affordable rate. Small discounts will be applied to
       services requested in longer durations. Tips will also be encouraged for the technicians.

       Below are the prices for the core services offered at the airport site.

       Prices for all other PMP services and products mostly relevant to the mobile operations
       can be found in the appendix.

                        CONFIDENTIAL AND PRORIETARY                                              23
Service                                  Price
             Chair Massage - 10m                                       $ 15
             Chair Massage - 15m                                       $ 21
             Chair Massage - 20m                                       $ 27
             Chair Massage - 30m                                       $ 39
             Foot Massage - 10m                                        $ 20
             Foot Massage - 15m                                        $ 27
             Foot Massage - 20m                                        $ 36
             Foot Massage - 30m                                        $ 48
             Reflexology Foot Massage - 10m                            $ 27
             Reflexology Foot Massage - 15m                            $ 38
             Reflexology Foot Massage - 20m                            $ 50
             Reflexology Foot Massage - 30m                            $ 70


6.45   Promotion
       PMP will strive to lead the DC metro spa market in creative promotional activities that
       generate significant business by:

          Generating trial amongst 1st time PMP customers
          Driving repeat customers
          Creating a premiere, favorable, and lasting brand impression for “Pampering “ and
           providing “Irresistible Wellness”

       An aggressive promotional mix of sale discount promotions, advertising material
       distribution, public relations, internet advertising, and airport signage will be
       implemented to achieve these goals at a relatively low cost. A strong focus will be
       placed on the Airport site as a central hub for PMP services. Mobile spa operations will
       be simultaneously leveraged as well, creating a buzz where local Airport customers are
       converted to mobile spa customers and vice-versa.

       Media advertising such as radio and TV will not be used initially due to the high costs
       incurred from achieving optimal frequency in combination with uncertain returns at a
       moderate budget.

       6.451 Sale Discount Promotions
             PMP’s initial goal is to generate an influx of 1st time customer trials so the
             “irresistible” quality of PMP’s core spa and wellness services can be fully
             experienced at an optimal level of comfort for the customer. Sale discount
             promotions will drive new customers to try PMP’s core massage services at the
             Airport during traveling and non-traveling purposes, in addition to group setting
             mobile spa events. Discount offers will be consistently aligned with most
             promotional efforts to continuously catalyze demand and urgent point of purchase
             transference. Sale discount promotions will include:

                        CONFIDENTIAL AND PRORIETARY                                              24
“3 for Free” Promotion
       Customers will receive 3 extra minutes of massage or reflexology for free with
       the purchase of at least a 15-minute massage or more. (Airport)

       “Massage and Reflexology Combo Discount”
       Customers can try a combo package and get $3 off 20minute combined services
       and $5 off 30minute combined services. (Airport/Mobile)

       “Monthly Drawing for a Free Full Body Massage”
       Customers can enter their business cards for a monthly drawing where PMP will
       give away a 1 hour full body massage for free at their home, office, or the airport.
       This massage will be transferable to a friend or relative if they do not live in the
       area. A key driver to creating traffic at the kiosk. (Airport)

       Love Mate Spa Date
       Couples receive $3 off 20minute combined services and $5 off 30minute
       combined services (Airport/Mobile)

       Family Discount
       Each family member of at least 3 people with kid(s) receive a 5minute chair
       massage at $7 (Airport/Mobile)

       “Frequent Flyer Massage Discounts”
       Customers who fly often will be able to purchase frequent flyer cards where they
       will be able to purchase 5 same timed increment massages and get the 6th massage
       half price or purchase 10 massages and get the11th massage free. (Airport)

       Mobile Spa Event Group Discount
       Airport customers will receive coupon for a 10% discount for a mobile spa event
       with at least 10 people and 20% for at least 25 (customers must book event by
       determined redemption date).

        “No Empty Seats For Too Long”
       If there are times when the massage chairs are empty, occasionally, therapists will
       choose a random passenger and offer a 3 minute massage for free to keep a
       customer in the chair periodically. When people see other people in the chairs it
       often encourages them to get a massage as well. In addition, customers will often
       want to purchase a service to extend their massage service or leave with a
       wellness product. (Airport)

       Seasonal discount promotions will also be offered during holidays and special
       events like Christmas, Valentine’s Day, Mother’s Day, & Prom Season. Retail
       discounts will be offered periodically as well.

6.452 Advertising Material Distribution
      10,000 high resolution PMP brochures and coupon flyers will be created and
      made available for distribution throughout 90 day intervals. All materials will
      display the PMP logo, enticing “call to action” promotional statements, and
      attractive spa-related visuals that capture the “irresistibility” of PMP’s wellness

                 CONFIDENTIAL AND PRORIETARY                                                25
services and sale discount promotional incentives. Sites of distribution within the
       DC metro area will include:
        Airport kiosk
        Hotel concierges
        Corporations/organizations that have been serviced by PMP
        Corporations/organizations within close proximity to Washington
           Airport/National Hall (to target the non-traveling patrons of National Hall)

6.453 Public Relations
      Public Relations and publicity will serve as one of PMP’s strongest promotional
      activities. PMP will implement a robust PR campaign, leveraging upon the
      credibility typically received from various publications. This will create positive
      word-of-mouth results to drive business at a relatively low cost. PMP will secure
      a PR consultant at a monthly retainer to effectively saturate the PMP brand within
      optimal magazine and newspaper sources viewed amongst target travelers and
      spa/wellness consumers. Over 100 local and national sources will be targeted.
      (view appendix for sources)


       The owner will consistently network and explore opportunities amongst members
       of charities, women’s groups, wedding planners, corporate special event
       coordinators, meeting planners, and other significant groups. Philanthropic
       activities will also be planned specifically for sickle cell, breast cancer, and
       battered women organizations.

6.454 Internet Advertising
      Website
      PamperMePleaseSpa.com provides information on the entire gamete of beauty,
      spa, health, and wellness services/products offered in detail. The layout currently
      includes 10 web pages with detailed dropdown capabilities for general (home),
      services-products, mobile operations, and contact info. Visual aesthetics and
      content layout will be enhanced to optimize brand appeal in capturing interested
      visitors. An Airport site page will also be added and heavily promoted with
      coupons available on the site.

       Internet directories (spa focused)
       PMP will drive its visibility on popular search engines (i.e. google, yahoo, aol,
       msn, etc.) by registering with a plethora of primarily free internet directories
       geared towards spa and wellness companies. A goal of 200 sites to be listed upon
       will be set to achieve initially. Afterwards, an internet directory exploration will
       be conducted to achieve 50 new listings a month until reaching 1,000.
       Afterwards, a staff worker will be hired to maintain a presence on these listings.
       (view appendix for target sites):

       Spa Sites/Blogging Communities
       PMP’s owner will actively participate on numerous popular spa/wellness sites and
       blogs that gather many “target consumers” to discuss spa-related topics. A top 50
       list will be compiled and a staff worker will be hired to consistently participate.
       (view appendix for target sites)


                CONFIDENTIAL AND PRORIETARY                                              26
6.455 Sales Forecast
                        The PMP sales forecast assumes a conservative and realistic growth trend for the airport
                        and mobile operations, with a projection of the airport site being open by the 4th quarter
                        of 2010. The areas of revenue for the airport during year 1 and 2 are massages and retail
                        beauty/wellness products. For the forecast a conservative average of $20 per 15 minute
                        service was estimated with $6 per 15 minute service paid to the technician (with a
                        minimum of 2 technicians on site). The basis for these projections is a conservative
                        estimate of 6 services (15m) per day during the 1st month of business, ramping up to 35
                        services (15m) per day by mid year 2011 (which breaks down to a conservative 3
                        customers per hour approximately) during a 12 hour 7 days a week work schedule. Retail
                        beauty/wellness products were conservatively estimated to be 10% of gross sales
                        although the retail revenue should increase in high correlation to an increased amount of
                        services performed. The gross margin for retail products was estimated to be 50%. By
                        Year 3 PMP’s site at Ronald Reagan Washington National Airport will expand into a
                        full-line store, conservative growth projections were applied.


                                          SALES FORECAST - 5 Yr. Projections


                                          FY 2010                  FY 2011                 FY 2012             FY 2013              FY 2014
  SALES
  Ronald Reagan Airport
  Massages                           $         21,000          $    219,000            $       383,250     $    421,575         $     463,733
  Retail                             $          2,100          $     21,900            $        44,074     $       48,309       $      53,140
  Other Full-Line Services           $               -         $             -         $        57,488     $       61,512       $      67,663

  Ronald Reagan Airport
  Total                              $         23,100          $    240,900            $       484,811     $    531,395         $     584,535



                                  SALES FORECAST - 5 Yr. Projections (Breakdown)
                                            Ronald Reagan Airport
                   FY 2010                 FY 2011                       FY 2012                         FY 2013                    FY 2014

                            Avg.                         Avg.                          Avg.                     Avg.                        Avg.
                             # of                         # of                          # of                     # of                        # of
                   $        Serv.          $             Serv.           $             Serv.         $          Serv.           $           Serv.


Monthly        $7,000       350      $18,250             913         $31,938           1,597      $35,131       1,757       $ 38,644        1,932

Weekly         $1,750        88      $ 4,563             228         $ 7,984           399           8,783       439        $       9,661     483

Daily          $ 250         13      $         652        33         $ 1,141            57           1,255         63       $       1,380       69

Hourly         $       21    1        $        54         3          $       95            5             105       5        $        115        6
% Increase                                     161%                              75%                      10%                         10%

                                               CONFIDENTIAL AND PRORIETARY                                                                           27
As the aforementioned suggests, ultra conservative estimates were applied beginning
                 with a slow ramp up from year 1 to year 2. The significant growth to over $240K
                 represents an extra 9 months of operation throughout the full year (verses only 3 months
                 during year 1) in addition to operating at a much greater capacity. At a conservative
                 “average service rate” of just 3 customers per hour in year 2, sales projections are
                 definitely achievable. In Year 3 with the expansion into a full-line day spa within Ronald
                 Reagan Washington National Airport, a growth rate of 75% from year 2 is projected in
                 generating $484.8K at an average service rate of 5 customers per hour. A significant
                 increase in sales with the full-line store is highly achievable due to a greater number of
                 spa services being provided, more technicians to meet greater demands, and a stronger
                 brand/operational value due to management and promotional efficacy. Moderate growth
                 projections throughout 2014 are beyond achievable, with PMP being positioned strongly
                 for surpassing sales forecasts.

                 6.456 Milestones
                              PMP Airport Implementation

                        Secure core group of
                        technicians for airport site         7/31/10
                        Attain LDBE certification            8/15/10

                        Secure kiosk site at Ronald
                        Reagan Washington Airport            8/30/10

                        Purchase equipment, décor,
                        and initial products                 9/15/10

                        Finalize initial schedule, set-up,
                        & airport operation                  9/15/10


                        Begin kiosk airport operation at
                        Ronald Reagan Washington
                        Airport                              10/1/10



7.0   Financial Analysis
      7.1 Important Assumptions
      The table below contains important assumptions that PMP incorporates in calculating achievable
      financial projections. A primary assumption is that the economy and airline industry will not
      experience a severe recession.

                                         Important Assumptions
                                                      2010   2011      2012    2013    2014
         Short-Term Interest Rate                       7%      7%        7%      7%      7%
         Tax Rate                                      35%     35%       35%     35%     35%
         Avg. Annual Depreciation Rate (5yr.)        0.20% 0.20%       0.20%   0.20%   0.20%
         Allowance for uncollectible accounts         0.3%    0.3%      0.3%    0.3%    0.3%

      In addition, the following assumptions have been made for all the pro forma financial statements:
                                   CONFIDENTIAL AND PRORIETARY                                            28
   The PMP Ronald Reagan Washington National Airport RMU will be secured and operating at
    the beginning of Q4 (October) 2010

   The PMP Ronald Reagan Washington National Airport RMU will expand to a Full-Line Day
    Spa at the beginning of 2012 (Year 3)

7.2 Break-Even Analysis
With the average variable costs being 35% in the first year and estimated average fixed monthly
expenses of approximately $2,615, the required monthly breakeven sales volume for PMP at the
Ronald Reagan Washington National Airport is approximately $4,023. This breaks down to 6
massages (15 minute average) and 3 retail products serviced a day. PMP is also projected to recoup
its initial start-up expenses by Q1 2011.

             Monthly Break Even                                          $ 4,023
             Average % Variable Costs                                     35%
             Fixed Costs                                                 $ 2,615
             Avg. Monthly Break Even Units -
             Massage Services                                                  181
             Avg. Monthly Break Even Units -
             Retail Products                                                   80
             Avg. Daily Break Even Units -
             Massage Services                                                  6
             Avg. Daily Break Even Units -
             Retail Products                                                   3


                                 Break-Even Analysis Graph


             $8000

             $6000

             $4000

             $2000

               $0

             $-2000

             $-4000

             $-6000

                         $2000      $4000     $6000      $8000      $10000 $12000

                                     Monthly break-even
                                     point
                             * Break-even point = where line intersects with
                             0




                           CONFIDENTIAL AND PRORIETARY                                           29
7.3 Pro Forma Profit and Loss
        During Year 1 through 2 and all commissions will be directly correlated to sales, ensuring that
        variable costs are controlled to maintain a solid level of profitability. Commissions will primarily be
        distributed in a similar manner throughout 2014. As sales increase significantly form year 1 to year
        2, so will expenses due to a full year of operation (verses 3 months). However, due to the higher
        operational efficacy of PMP at a greater sales capacity, net profit increases to 14% in year 2. With
        the expansion to a full-line store in year 3 (2012), the new initial investment cost drivers inclusive of
        construction/design in addition to rent expenses that will at least double the rent of the kiosk
        decrease net profits by 6%. The net profit increases by 4% in the 4th year and maintains at 10%
        throughout year 5 at much larger revenues and profits with the full line verses the initial kiosk.

                                 Pamper Me Please LLC - Airport Division
                           Pro Forma Profit and Loss - 5 Year Income Statement
                                  Fiscal Year Ending Dec. 31, 2010-2014

                                      FY 2010       FY 2011        FY 2012        FY 2013        FY 2014
Sales                               $ 23,100       $240,900       $484,811       $531,395       $584,535
Direct Costs of Goods
Technician Commissions              $   6,300      $ 65,700       $153,300       $168,630       $185,493
Owner Commissions                   $   1,320      $ 42,075       $ 63,025       $ 79,709       $ 87,680
Cost of Retail Products             $   1,050      $ 10,950       $ 22,037       $ 24,154       $ 26,570
Linens & Cleanings                  $    630       $ 6,570        $ 11,498       $ 12,647       $ 13,912
Oils & Lotions/Polish               $    105       $ 1,095        $ 1,916        $ 2,108        $ 2,319
Other Product Supplies              $      -       $     -        $ 2,874        $ 3,076        $ 3,383
Total Direct Cost of Goods Sold     $   9,405      $126,390       $254,650       $290,324       $319,357

Gross Margin                        $ 13,695       $114,510       $230,161       $241,071       $265,178
Gross Margin %                          59%           48%            47%            45%            45%

Expenses
Payroll                             $      -       $     -        $ 7,800        $ 9,750        $   11,700
Advertising/Promotion               $   6,500      $ 9,750        $ 14,300       $ 16,900       $   18,000
Website                             $    750       $   300        $   750        $   600        $     450
Other Sales & Marketing Expenses    $   4,875      $ 3,250        $ 6,500        $ 8,125        $    9,000
Travel                              $    600       $ 1,000        $ 1,700        $ 2,000        $    2,400
Equipment                           $   1,850      $   450        $ 2,800        $   500        $    1,750
Professional Services               $   1,750      $ 1,400        $ 5,250        $ 2,500        $    3,750
Rent                                $   7,500      $ 30,000       $ 60,000       $ 60,000       $   60,000
Utilities                           $      -       $     -        $ 2,400        $ 2,400        $    2,400
Phone                               $    180       $   720        $ 1,440        $ 1,440        $    1,800
Credit Card Charges                 $    231       $ 2,409        $ 4,848        $ 5,314        $    5,845
Construction & Design               $    500       $   500        $ 35,000       $ 2,500        $    2,000
Airport Break Even Fee              $      -       $ 8,710        $ 9,563        $ 14,805       $   20,786
Depreciation                        $    185       $   460        $ 1,020        $ 1,120        $    1,470
Insurance                           $    600       $   600        $ 1,800        $ 1,800        $    1,800
Computer & Software                 $   1,400      $   700        $ 2,450        $ 1,050        $    1,050
Donations                           $    250       $   375        $   750        $ 1,250        $    1,750
Other                               $   2,074      $ 1,625        $ 3,900        $ 2,925        $    2,600

Total Operating Expenses            $ 29,245       $ 62,249       $162,271       $134,979       $148,551

Earnings Before Interest and
Taxes (EBIT)                        $(15,550)      $ 52,261       $ 67,890       $106,092       $116,627
Interest Expense                    $     -        $     -        $ 6,419        $ 8,560        $ 8,560
Taxes Incurred                      $     -        $ 18,291       $ 21,515       $ 34,136       $ 37,823
Extraordinary Items                 $     -        $     -        $     -        $     -        $     -


                                     CONFIDENTIAL AND PRORIETARY                                               30
Net Profit                              $(15,550)          $ 33,970      $ 39,956         $ 63,396        $ 70,243
 Net Profit % (Net Profit/Sales)            -67%               14%           8%               12%             12%



           7.4 Pro Forma Cash Flow
           Conservative estimates still reflect strong net cash growth for PMP throughout 2014.

                                           Pamper Me Please LLC
                           Pro Forma Profit and Loss - 5 Year Cash Flow Statement
                                   Fiscal Year Ending Dec. 31, 2010-2014

                                                         FY 2010   FY 2011      FY 2012        FY 2013       FY 2014

Cash Flow From Operations
Net Income From Operations                           $(15,550)     $33,970     $ 39,956       $ 63,396      $ 70,243
Depreciation and other Amortization                  $    185      $ 460       $ 1,020        $ 1,120       $ 1,470
Changes in Operating Assets & Liabilities
Accounts Receivable                                  $      (46)   $ (371)     $ (746)        $ (818)       $ (899)
Inventories                                          $     (350)   $ (2,738)   $ (5,509)      $ (6,039)     $ (6,642)
Accounts Payable                                     $      750    $ 1,130     $ 11,538       $ 12,550      $ 14,000
Deferred Taxes                                       $       -     $     -     $     -        $     -       $     -

Net Cash Flow From Operations                        $(15,011)     $32,452     $ 46,258       $ 70,210      $ 78,172

Cash Flow From Investments
Purchase of Property, Plant, Equipment               $ (3,750)     $ (5,650)   $(46,150)      $ (50,200)    $ (56,000)
Acquisition of Intangibles                           $     -       $ (750)     $ (750)        $ (1,500)     $ (1,500)

Net Cash used in Investing Activities                $ (3,750)     $ (6,400)   $(46,900)      $ (51,700)    $ (57,500)

Cash Flow From Financing
Net Increase in Debt                                 $     -       $    -      $ 32,096       $ 21,396      $ 10,696
Equity Contributions                                 $ 20,000      $20,000     $ 20,000       $ 20,000      $ 20,000

Net Cash used in Financing Activities                $ 20,000      $20,000     $ 52,096       $ 41,396      $ 30,696

Net (Decrease) Increase in Cash and Cash
Equivalents                                          $ 1,239       $46,052     $ 51,454       $ 59,906      $ 51,368
Cash & Cash Equivalents, Beginning                   $    -        $ 1,239     $ 47,291       $ 98,745      $158,651
Cash & Cash Equivalents, Ending                      $ 1,239       $47,291     $ 98,745       $158,651      $210,019




                                            CONFIDENTIAL AND PRORIETARY                                                  31
Pamper Me Please, LLC
      Ronald Reagan Washington National Airport
                Pro Forma Cash Flow

$250,000

$200,000
                                                   Net Cash Flow
$150,000
                                                   Cash Balance
$100,000

 $50,000

     $0

-$50,000
           2010   2011   2012    2013    2014




                     CONFIDENTIAL AND PRORIETARY                   32
7.5 Pro Forma Balance Sheet

                                  Pamper Me Please LLC - Airport Division
                              Pro Forma Profit and Loss - 5 Year Balance Sheet
                                   Fiscal Year Ending Dec. 31, 2010-2014

                                              FY 2010    FY 2011     FY 2012     FY 2013     FY 2014
Assets
Current Assets
Cash                                         $70,200    $104,170    $176,222     $261,013    $341,953
Accounts Receivable                          $   46     $   371     $   746      $   818     $   899
Inventory                                    $ 350      $ 2,738     $ 5,509      $ 6,039     $ 6,642
Prepaid Expenses                             $ 600      $   600     $ 1,800      $ 1,800     $ 1,800
Allowance for uncollectible accounts         $    -     $     -     $   529      $   783     $ 1,026
Total Current Assets                         $71,196    $107,878    $184,805     $270,453    $352,320

Long-Term Assets
Property, Plant, & Equipment                 $ 3,750    $   5,650   $ 46,150     $ 50,200    $ 56,000
Accumulated Depreciation                     $ (565)    $   (750)   $ (1,910)    $ (1,830)   $ (2,280)
Total Long-Term Assets                       $ 3,185    $   4,900   $ 44,240     $ 48,370    $ 53,720

Other Assets
Intangibles Assets                           $    -     $    750    $    750     $   1,500   $   1,500
Total Other Assets                           $    -     $    750    $    750     $   1,500   $   1,500

Total Assets                                 $74,381    $113,528    $229,795     $320,323    $407,540

Liabilities and Owner's Equity
Current Liabilities
Short-Term Loans                             $    -     $      -    $ 32,096     $ 21,396    $ 10,696
Accounts Payable                             $ 750      $   1,130   $ 11,538     $ 12,550    $ 14,000
Wages/Commissions Payable                    $ 315      $   2,527   $ 6,196      $ 6,861     $ 7,584
Interest Payable                             $    -     $      -    $     -      $     -     $     -
Taxes Payable                                $    -     $      -    $     -      $     -     $     -
Total Current Liabilities                    $ 1,065    $   3,657   $ 49,830     $ 40,807    $ 32,280

Long-Term Liabilities
Long-Term Debt                               $    -     $     -     $      -     $     -     $     -
Total Long-Term Liabilities                  $    -     $     -     $      -     $     -     $     -

Total Liabilities                            $ 1,065    $   3,657   $ 49,830     $ 40,807    $ 32,280

Owner's Equity
Owner's Paid-In Capital                      $19,900    $ 19,900    $ 19,900     $ 19,900    $ 19,900
Common
Authorized, 1000 shares of $.10 value        $ 100      $   100     $   100      $   100     $   100
Retained Earnings                            $53,416    $ 89,971    $160,066     $259,616    $355,360
Total Capital                                $73,416    $109,971    $180,066     $279,616    $375,360

Total Liabilities & Capital                  $74,481    $113,628    $229,895     $320,423    $407,640




                                     CONFIDENTIAL AND PRORIETARY                                         33
7.6 Pro Forma Financial Ratios
Financial Ratios for the forecasted income, balance, and cash flow statements are provide below:

                                      FY 2010    FY 2011    FY 2012    FY 2013     FY 2014

   LIQUIDITY
   Current Ratio (Current
   Assets/Current Liabilities)         66.85      29.50      3.71        6.63       10.91
   Quick Ratio (Current ratio
   less inventory)                     66.52      28.75      3.60        6.48       10.71
   Net Working Capital
   (Current Assets-Current
   Liabilities)                       $ 70,131   $104,221   $134,976   $229,646    $320,040
   Current Cash Debt
   Coverage Ratio (Net Cash
   oper. Activ/avg current
   liabilities)                        -14.09     8.87       0.93        1.72        2.42

   ACTIVITY
   Inventory Turnover
   (CGS/Inventory)                     26.87      46.17      46.22      48.08       48.08
   Accounts Receivable
   Turnover (Net sales/Avg
   trade receivables)                   296        309         309       295         295

   Accounts Receivable - Avg
   Days Outstanding                    1.39       1.81       1.81        1.81        1.81
   Asset Turnover (Net
   Sales/Avg Total Assets)             0.18       1.01       1.00        0.75        0.65
   PROFITABILITY
   Profit Margin on Sales (Net
   income/Net sales)                   -1.14      0.30       0.17        0.26        0.26
   Rate of Return on Assets
   (Net income/Avg total
   assets)                             -0.21      0.30       0.17        0.20        0.17
   Rate of Return on Equity
   (Net income/Equity)                 -0.21      0.31       0.22        0.23        0.19
   DEBT
   Debt (Total liabilities/total
   assets)                             0.01       0.03       0.22        0.13        0.08
   Debt-Equity (Debt/Equity)             0          0        0.18        0.08        0.03




                                 CONFIDENTIAL AND PRORIETARY                                       34
Appendix
Corporate Client List
1. Southwest Airlines
2. Progressive Insurance
3. Aetna
4. Westin Hotels & Resorts
5. Microsoft
6. Heritage Financial
7. ManorCare (Nursing Home Chain)
8. Goucher College
9. R.J. Princinsky and Associates
10. Quest Insurance
11. Van Bokkelen Elementary School
12. Emerson House (Nursing Home)
13. Stoddard Baptist Nursing Home
14. Howrey LLP (Law Firm)
15. State Farm
16. Allstate
17. National Urban League (National Conference)
18. Greater Washington Urban League
19. Heart and Style Conference for Heart Disease
20. General Dynamics
21. Laurel Regional Hospital
22. Holy Cross Hospital
23. PMMI
24. DC Child and Family Services
25. Harbour Square Apartments
26. Jack and Jill of America
27. Sidney and Company
28. Mary McLeod Academy
29. DC Ballet School
30. Carrol Lutheran Village (Nursing Home)
31. University of Maryland Residence Life
32. US Marshalls Court House
33. Howard University Homecoming
34. PEPCO Golf Tournament
35. The Trizetto Group
36. JEM Engineering
37. Alpha Kappa Alpha Sorority
38. Ebenezer Church (Baltimore)
39. The One Love Festival
40. Verizon CITE Conference
41. Novastar Mortgage
42. Saks 5th Avenue

                                    CONFIDENTIAL AND PRORIETARY   35
43.   Sister 2 Sister Sorority Luncheon
44.   Business Executive Exchange Conference for National Urban League (Orlando, Florida)
45.   Minor Elementary School
46.   Thursday Network
47.   D.C. Public Schools – Speaking Engagement
48.   The High Academy – Speaking Engagement
49.   Fairland Community Center--Speaking Engagement


Testimonials
Thank you for making my spa party a success. My guests really enjoyed their day of pampering. I will be
calling you soon to book my next party.

Sincerely,
Tanya Phifer


I just wanted to express my deepest appreciation for the work your staff did on my wedding day. Everyone
commented that I was a beautiful bride. That was awesome! I will forward pictures to you soon.

Thank you so much,
Stephanie Brooks


Thanks for making tax season so painless. The seated massages were exactly what we needed. Let's do it again
next year!

Best regards,
Kehinde Kolawole, CPA


My friends are still talking about my party. It was an excellent way to kick off my new business. Thank you
for all of your help.

God Bless You,
Michella Jackson




                                      CONFIDENTIAL AND PRORIETARY                                             36
Target PR Sources
Magazines
Local/Regional (DC)
 Washingtonian Magazine (#1 in market penetration of all city-regional magazines)
 Washington Business Journal
 Washington Parent
 Washington Woman
 The Nation
 Bethesda Magazine
 Virginia Business Magazine
 Guide to Retirement Living Magazine

National/Travel
 Travel + Leisure
 Arthur Frommer’s Budget Travel Magazine
 Travel Holiday
 National Geographic Traveler
 Travel 50 & Beyond
 Vacations Magazine

National/Consumer
 Allure
 Brides
 Cosmopolitan
 Elle
 Essence
 Glamore
 Good Housekeeping
 Bizarre
 InStyle
 Home Journal
 Lucky
 More
 Oprah
 People
 Red Book
 Self
 Seventeen
 Shape
 Teen Vogue
 Town & Country
 Town & Country Wedding
 W




                                    CONFIDENTIAL AND PRORIETARY                      37
National/Trade
 American Salon
 American Spa
 Day Spa
 D
 Laun
 Modern Salon
 Nail Pro
 Nails
 Salon
 Salon City
 Salon Plus
 Salon Today
 Spa
 Vidia
 Viet Beauty
 WWP Salon

Newspapers
Local (DC)
 Washington Times
 Washington Post
 The Examiner
 Washington City Paper
 Capitol Hill Blue
 The Common Denominator
 The Hill
 The InTowner
 Henderson Hall News
 Town Hall
 Voice of the Hill
 Roll Call

National
 USA Today
 New York Times

Websites
 Local registries for main search engines (google, yahoo, msn, & aol)
 Spafinder.com
 about.com (dc spas)
 spaindex.com
 gayot.com
 dayspastopten.com
 openlist.com
 craigslist.com
 myhealthbriefcase.com
 mydcwedding.com
                                     CONFIDENTIAL AND PRORIETARY         38
   georgetowndc.com
   magicyellow.com
   howstuffworks.com
   yelp.com
   partypop.com

Blogs
 blog.spafinder.com (Susie’s Spa Blog)
 Dayspa-massage.com
 Thelandofspa.blogspot.com
 Traveltowellness.com
 Spaflyer.com
 Spasoflife.blogspot.com
 spacollegeblog.wordpress.com
 travel.timesonline.co.uk
Websites of the aforementioned PR publications and sources will also be targeted


Photos – PMP Events




                                      CONFIDENTIAL AND PRORIETARY                  39
CONFIDENTIAL AND PRORIETARY   40
CONFIDENTIAL AND PRORIETARY   41

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C:\fakepath\pmp business plan-airport_2010 (sample)

  • 1. Pamper Me Please PAMPER ME PLEASE LLC BUSINESS PLAN Business Plan: Written and developed by MPerfect Enterprises Inc.
  • 2. 1.0 Executive Summary Introduction The airport is often the central hub for the busiest, time-constrained, heavily stressed people within our society. With unhealthy work/life strains continuously emerging for the 21st century business traveler and traveler in general, a growing demand for customized stress-relieving, life-enhancing services are paramount. As we embark upon a dynamic “microwave” culture where many consumers want their needs and wants met as close to “instantaneous” as possible, the success of a business will often lie within providing excellent customer service for a customer’s desires at an ultra-convenience. In-between hectic flight commutes travelers now want to do more than eat fast food, read daily newspapers, and buy expensive souvenirs during their traveling downtimes. They want fast options to optimizing their entire emotional state of feeling and being at the greatest levels of pleasure, health, and relaxation … of course with as much “pampering” as possible. Business Plan Objective – Pamper Me Please at Ronald Reagan Washington National Airport Pamper Me Please LLC seeks to continue its excellence in providing value adding spa and wellness services by securing a day spa operation within the Ronald Reagan Washington National Airport by October 2010. The ideal location would be within the pre-security National Hall section of the airport so PMP can maximize upon the demand presented by not only travelers, but day-to-day local patrons and airport employees. The purpose of this business plan is to show the overall operations and strategy of PMP as a whole, with a specific focus on the operational and financial viability of PMP within the Ronald Reagan Washington National Airport. Sales Forecast Conservative estimates project Pamper Me Please generating $23.1K as an airport RMU during the 1st year (3 months) beginning in Q4 2010. Massage services and retail products will be the core offerings. Stronger sales at a full year of operation in 2011 will total over $240K at 14% net profit. In 2012 PMP will use a $40K loan to expand the RMU to a full-line day spa at the airport, growing its revenues from $484.8K in 2012 to $584.5K by 2014 at a net profit of 12%. Pamper Me Please, LLC Ronald Reagan Washington National Airport Financial Highlights 5 Yr. Profitability Projection $600,000 $500,000 Sales $400,000 Gross Margin $300,000 Net Profit $200,000 $100,000 $0 ($100,000) 2010 2011 2012 2013 2014 * Airport Day Spa RMU beginning Q4 2010 * Expansion to Full line airport day spa in 2012 CONFIDENTIAL AND PRORIETARY 1
  • 3. Industry Overview According to the International Spa Association (ISPA), in 2006 the US spa industry generated $9.4B in gross revenue. Profits increased from 8% in 2003 to 17% in 2006 which suggests streamlined operations that better manage expenses. The average revenue for a spa is $624,000 with the median being $250,000. The Airport Spa segment is emerging but still mostly oligopolistic with less than 20 companies operating in over 20 airports. Numerous socio-cultural trends support a growing demand for spa and wellness services amongst various target market segments. The most critical external risks lie within the uncertain economic state of the US market. Why Choose Pamper Me Please for the Ronald Reagan Washington National Airport? In analyzing the lack of success with the previous spa company operating out of Ronald Reagan Washington National Airport a couple of years ago, Pamper Me Please has identified a couple of critical factors that will make its operation much more successful.  Pre-security National Hall location Part of the failure of the previous spa company was its sub-optimal location post security inside the terminals. This location is more hectic and unappealing to the busy traveler with less downtime when choosing to remain within the terminal. Unlike an international airport, Ronald Reagan Washington National Airport has fewer travelers with shorter wait times which impact the base of demand for a spa company. Pamper Me Please will thrive by operating within the heavy-traffic pre-security area of National Hall. Pamper Me Please will be able to maximize upon the attractiveness and accessibility National Hall provides to traveling customers as well as local non-traveling customers and airport employees who frequently patronize National Hall vendors.  Increased demand for spa and wellness services With the passing of several years since the previous spa’s operation, a boom in the demand for spa and wellness services has been evident. Men have been identified as a growing sector for such services in addition to kids. The image of spa and wellness services have emerged from merely an exclusive activity for an exclusive market, to a significantly frequented service for many seeking to maintain a healthy and stress-relieving lifestyle. This is reflected in the statistic of 1 in 4 Americans now having received spa services.  “Pampering” High Quality Customer Service Pamper Me Please brands itself with the slogan “You Deserve To Be Pampered!” This slogan is reflected in the work ethic, professionalism, and customer service continuously provided by all PMP technicians. Numerous company policies, management practices, promotions, and branding activities will be implemented to ensure all Pamper Me Please customers have an “irresistible” wellness experience … one in which they will want to tell everyone about. . Pamper Me Please has several years of experience now in serving thousands within the Washington DC area as a mobile day spa with high quality service in delivering “irresistible” wellness. Pamper Me Please will be able to leverage upon the booming demand for wellness actualization by channeling its “pampering” spa services in creating an “irresistible wellness pampering hub” for Ronald Reagan Washington National Airport. Pamper Me Please’s ultra-relaxing massage services adds a cutting-edge appeal to the airport’s value to business travelers needing to relieve stress, personal travelers desiring a catalyst for their vacation, airport employees looking to temporarily escape the tribulations of their work day, and local patron’s continuance towards enjoying the caveat provided by National Hall. CONFIDENTIAL AND PRORIETARY 2
  • 4. Conservative projections shown in this business plan also reflect a strong revenue and profit generating business to add to the airport’s vendor portfolio. By the end of the 6th month of operation, Pamper Me Please will have recouped all initial investments and soon afterwards begin generating over $20K on average a month while achieving net profits of 14% by end of year 2. Such projections are conservative when identifying that these financials are achievable if Pamper Me Please is able to provide an average of just 33 massage services a day which breaks down to approximately just 3 an hour with 2 technicians on duty. Projections also reflect the airport’s break even commissions totaling over $8.7K by end of year 2. Pamper Me Please will then be in a great position to expand to a full-line day spa within the airport, achieving over $484.8K, $531.3K, and $584.5K respectively over the course of year 3 thru year 5 with net profits reaching 12% after the initial full-line spa investment. Projections show the airport’s break even commissions from year 3 to year 5 totaling over $45K. Such positive revenue and profit streams can be leveraged upon in Pamper Me Please expanding to other Westfield airports across the country. In addition, as a female African-American owned company, Pamper Me Please is in a great position for securing a LDBE certification for Westfield and the airport’s accrediting purposes. Overall, Pamper Me Please’s ability to provide phenomenal spa/wellness experiences and achieve attractive financial projections in combination with being located within an ideal airport area within National Hall (pre-security) makes Pamper Me Please a great business venture for Ronald Reagan Washington National Airport. 2.0 Company Profile 2.1 Company Overview Pamper Me Please LLC is a mobile beauty, spa, health, and wellness business that provides clients a multitude of professional services to clients within their homes, offices, corporations, hotels, and exclusive special event locations for all occasions. Pamper Me Please was founded in September of 2003 by Ms. Roland Turner in Washington D.C and has operated throughout the D.C, Maryland, and Virginia areas. Pamper Me Please employs experienced, licensed, insured, and certified technicians to provide customer service at the highest quality ensuring the highest levels of customer satisfaction as a priority for all clientele. As a female owned - 100% minority owned business that can qualify as a local disadvantaged business (LDBE), Pamper Me Please has positioned itself for significant growth and multi-faceted success. 2.2 Background/History 2.21 Founder – Ms. Roland Turner President, CEO, and Founder Ms. Roland Turner started Pamper Me Please to create more opportunities and deliver greater customized solutions to professionals within the beauty, spa, and wellness industry. With a 10-year background in communications and public relations, Ms. Turner bridges the gap in employing spa professionals to service the community. Developing a CONFIDENTIAL AND PRORIETARY 3
  • 5. travel spa with wellness services is the niche she decided to fill in order to be a “day spa alternative” in a world that has so many spas. “Everything is mobile these days from car detailers to pet groomers, why not a wellness day spa to help those busy people like myself take better care of themselves”, says Ms. Turner. Ms. Turner has over 15 years of experience within the cosmetology industry. She has established a partnership with the Baltimore School of Massage and is a member of the Advisory Board. Ms. Turner also created and instituted an entire wellness program as the appointed Director of the Massage Program at Fairland Sports and Aquatics Complex, which is the largest recreational facility in Prince George County serving 1500 patrons daily. This facility is under the Maryland State Government’s PG Parks and Recreation where she supervises a massage staff of eight trained professionals. In addition, Ms. Turner currently hosts a Radio Talk Show on WPGC 95.5 FM on Sunday mornings at 6:00am and Saturday mornings on Heaven1580am at 6:00am for the Greater Washington Urban League. She has also worked for NBC Television, BET Cable Networks, and National Public Radio. Her educational background includes a B.S. Degree in Journalism and a minor in Business. 2.22 Accomplishments Pamper Me Please has conducted over 100 events in serving over 1,500 individuals and 50 companies that include: CONFIDENTIAL AND PRORIETARY 4
  • 6. Other special events and conferences for organizations include:  Miner Elementary School  The National Urban League Conference  Jack and Jill of America  US Marshalls Court House  Alpha Kappa Alpha Sorority  The Annual CITE Conference for Verizon  7th Annual Celebrity Golf Tournament - Greater Washington Urban League  The Annual Sister to Sister Sorority Luncheon  The Young Lawyers Association of Baltimore  The Heart and Style Conference for Heart Disease Pamper Me Please LLC was selected to receive the prestigious Top 100 Minority Business® Enterprise Award for 2009. This honor is designed to acknowledge and pay tribute to outstanding women and minority business owners in Maryland, Virginia, Delaware, and the Washington DC. Pamper Me Please was also recognized by BlackEnterprise.com as a rising mobile beauty, spa, and wellness minority owned company. 2.3 Vision/Mission The vision for Pamper Me Please is to lead a life-fulfillment movement that enhances the overall well-being of people by providing the most therapeutic, convenient, and relaxing experiences to our customers while leveraging goodwill and economic prosperity to all employed and partnered with our company. CONFIDENTIAL AND PRORIETARY 5
  • 7. Our mission statement is: “To promote wellness services throughout the community in an effort to educate clients on the importance of taking better care of themselves in order to lead more productive, healthier, and happier lives. We will also provide employment opportunities to technicians in the trade industry in an effort to increase their economic stability while providing more career opportunities. We are committed to educating trade professionals through our approach to quality customer service, marketing, promotion, and business sophistication.” 2.4 Management & Organization The executive management for Pamper Me Please currently falls within the responsibilities of Ms. Turner as Founder/CEO/President. Independent consultants with MBA experience have been outsourced consistently to contribute to the business development and marketing planning. Consulting services to date have been provided by MPerfect Enterprises Inc. and Teneya Gholston, MBA. In addition, Pamper Me Please has outsourced its accounting functions to ACS Business and Accounting Solutions. All legal functions are outsourced by Michael K. Catoe. 18 technicians are currently employed as independent contractors, each being trained and groomed to carryout managerial responsibilities. 2.41 Divisions Pamper Me Please has operated within 4 mobile business divisions entitled: Corporate, Tradeshows & Conferences (T&C), Special Events, and In-Home. The Airport division has been most recently developed to maximize upon the growing opportunities for flight travelers. 2.411 Airport Function: To provide travelers, employees, and patrons within airport facilities wellness services to enhance the traveling airport frequenting experience 2.412 Mobile Corporate Function: To provide corporations/organizations on-site wellness services for employees to relieve stress, increase productivity, and boost morale within the workplace In-Home Function: To provide individuals, families, and groups wellness services within the comfort of their own homes for an ultra convenient relaxation experience CONFIDENTIAL AND PRORIETARY 6
  • 8. Special Events Function: To provide individuals in group settings associated with special events (i.e. weddings, spa parties, birthdays, reunions) wellness services to enhance such happy momentous occasions Tradeshows & Conferences Function: To provide the attendees and coordinators of tradeshows on-site wellness services to enhance the attraction and satisfaction value of the events Organization Chart (functional) EXECUTIVE * Mktg Consulting * Acctg/Legal * Sales *Technicians Staff AIRPORT MOBILE In-home Tradeshows & Conferences Corporate Special * Outsourced Events functions Pamper Me Please will also establish a Hotel Division in 2010. 2.42 Company Culture We strive to sustain a culture of professionalism, happiness, and overachievement to create a wellness utopia-like experience for our customers in addition to our technicians. We believe that “pampering” is a divine gift that should be shared with as many people as possible at the highest quality to reflect a true relaxation experience. 2.43 Core Values  Integrity – Maintain the highest ethical standards  100% Customer Satisfaction – Create the most gratifying wellness experience  Leverage – Always build upon our competencies as platforms for excellence  Optimal Balance – Optimize all areas of work and personal life to fully enjoy both  Life Fulfillment – Create, experience, and “feel” the desired results CONFIDENTIAL AND PRORIETARY 7
  • 9. 2.44 Start-up Summary: Ronald Reagan Washington Airport PMP Day Spa Site PMP seeks to secure a kiosk location at the Ronald Reagan Washington Airport, pre-security ideally below the escalator within National Hall. The combinational influx of numerous travelers and local patrons at National Hall presents an optimal marketplace for driving business. Below are the estimated start-up costs for the PMP day spa kiosk: Start-up Expenses $ Legal $400 Business Consultation $500 Brochures, Marketing $3,500 Materials, Grand Opening Coupons, Flyers, website Massage Chairs (3) $1,350 Reflexology Chairs (2) $500 Retail Product $450 Product Supplies $288 Computer & Software $1,000 Insurance $600 Rent $2,500 Maintenance Fee $55 Signage Fee $250 Security Deposit $500 Accountant $400 Linens/Wipes/Paper Towels $300 Oils & Lotions $100 Décor & Furniture $500 Advertising $500 Other (set up fees) $500 Total Start-up Expenses $14,193 Start-Up Summary $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $0 Expenses Assets Investments Loans * Initial Investment made by owner CONFIDENTIAL AND PRORIETARY 8
  • 10. 3.0 Products & Services 3.1 Airport Pamper Me Please is a service-driven wellness business. All professional services and products that will be provided at the Airport(s) include: 3.11 Chair Massage Customers remain fully clothed while receiving a corporate seated chair massage treatment based on Acupressure and Swedish massaging from an expert technician upon their neck, shoulders, back, arms, and hands. 3.12 Reflexology Customers receive an intense massage incorporating manipulation and pressure, applied to reflex points located on the feet and hands to help balance the entire body (shoes and socks can be removed). 3.13 Beauty & Wellness Products Various high quality wellness products and sales literature will be made available for sale to provide further therapeutic valuables to our customers (i.e. lotions, balm, oils, candles, spa & grooming products, etc.) 3.2 Other Divisions - Products & Services Pamper Me Please is a full-service mobile “1 Stop Shop” for beauty, spa, health, and wellness services. Thus, the Corporate, Tradeshows & Conferences, Special Events, and In-Home divisions provide the following products and professional services: CONFIDENTIAL AND PRORIETARY 9
  • 11. Full Body Massage Therapy  Corporate On-Site Seated Massage  Reflexology  Facials and Waxing  Manicures and Pedicures  Body Wraps and Treatments  Make-Up (Brochures and product/service descriptions are available in the appendix) 4.0 Industry Analysis 4.1 Industry Overview 4.11 Spa Market Financials & Statistics The US spa industry includes several operations including health, beauty, wellness, nutrition, fitness, and recreation. According to the International Spa Association (ISPA), in 2006 the US spa industry generated $9.4B in gross revenue. This is a slight 3.4% decline from the 2005 $9.7B revenue total which falls well within the margin of error according to ISPA. The revenue generated within the industry as a whole has grown significantly since its total of $7B in 2003. Profits increased from 8% in 2003 to 17% in 2006 which suggests streamlined operations that better manage expenses. Spa Industry - Revenue 10 9 8 7 Revenue (billions) 6 5 4 3 * N/A 2 1 0 2003 2004 2005 2006 •Discrepancy identified with ISPA 2004 report due to change in how revenue is calculated The average revenue for a spa is $624,000 with the median being $250,000. These statistics are heavily determined and skewed by variances amongst the significant number of day spas. The SpaFinder Day Spa Report showed that day spas either have relatively small revenue where more than 50% of spas have revenues of less than $250,000 per year, or have revenues over $1 CONFIDENTIAL AND PRORIETARY 10
  • 12. million. The US spa industry employed an estimated 232,700 people in 2007. Average annual growth from 2004 to 2007 was 4% for total employees, 2% for full-time employees, 3% for part-time employees, and 10% for contract employees reflecting a greater number of technicians who are contracted at spas to reduce overhead costs. 4.12 Spa Market Segmentation The spa industry is segmented into 6 primary categories: Day Spas, Hotel/Resort Spas, Club Spas, Medical Spas, Destination Spas, and Mineral Spas. Day Spas, which include mobile and airport spas, represent 80% of total spas. Medical spas are the fastest growing segments while Hotel/Resort spas have achieved the highest revenue as they have represented over 41% of revenue despite accounting for 9% of spas. Day spas, the largest segment, accounts for just 49%. Medical spas have achieved the largest profit margins at 28% followed by Hotel/Resort spas at 24%. Spa Industry – Segmentation (%) Club 7% Mineral & Destination 1% Medical 9% Hotel-Resort 9% Day Spa 80% Spa Industry - Profits by Segment 30 28% 24% 25 Profit 17% (%) 20 16% 15 10 5 0 Day Day Resort- Medical Medical Club Hotel CONFIDENTIAL AND PRORIETARY 11
  • 13. 4.13 Additional External Factors Economic Macro  The US economy is in a state of slow recovery due to the negative impact from the decline in the housing market, rising oil prices, and tight credit markets  According to Standard & Poor’s, GDP growth is expected to decrease from 2.2% in 2007 to 1.9% in 2008. Consumer spending growth is expected to decrease to 1.8% in 2008 (from 3.1% in 2006 and 2.8% in 2007). Such factors create a risk of economic recession within the near future.  During 2007 the unemployment rate in the US rose to 5%, Washington DC rose to 5.7%  The inflation rate decreased to 2.3% in 2007 but a hike in November of over 4% threatens to stop the interest rate cuts that had been consistently implemented to revive the sluggish economy Political  A significant geopolitical risk remains with the war and turbulence within the Middle East  The 2008 US Presidential election represented an extraordinary change in government with the unique historical election of Barack Obama, the 1st African-American US President. New anticipations of hope and change can create a psychological and financial spike within the wellness industry Socio-cultural  1 in 4 Americans have been to a spa as there are more than 32 million active spa-goers  Increased work and life responsibilities have created and additional demand for reducing stress in addition to engaging in more health, beauty, and wellness-oriented activities  31% of all US spa goers are men, reflecting a growing demand and cosmetic male revolution  Growing demand for kid beauty and wellness services  Evolving spa goers desire spa experiences customized to their personal needs and desires  The leading education programs and workshops offered by US spas include those focused on nutrition, healthy eating, and stress management  Integration of day spas within fitness clubs Technological  New spa equipment is being developed with greater ergonomic, digital, and environmental friendly capabilities  A growing number of website and blogging communities have been set up to share spa- related information and experiences  Cutting edge technological advancements have been made in the realm of endermologie (reducing cellulite via massaging). Led by LPG, a leading company in body treatment and tissue technology, the latest “E6” model was released with greater ergonomic and precision and qualities 4.2 Competition (The competitive assessment of this plan is focused on airport spas) CONFIDENTIAL AND PRORIETARY 12
  • 14. 4.21 Supply Chain Vendors at an airport are essential to adding financial and brand value to an airport, its constituents, and the overall experience of the airport traveler (end consumer). In evaluating the value components of the airport spa industry (an emerging niche spa segment with limited data available) an assessment incorporates identifying the value each supply chain member adds as it is reflected through its share of the price incurred by the airport traveler. With $375 being the estimated average price of an airplane ticket and $30 being the estimated average price for a service at an airport spa, the average total price for an airport traveler/spa service patron is $405. Airport Day Spa Supply Chain Value Chain Analysis (Based on est. $405 total airport/spa service total price Day Technicians End Airlines Airport Spa Consumer Value Value Value Value Over 50% are $263 $112 $24 $6 Business 65% 28% 6% 1% travelers Growth Growth Growth Growing use Time sensitive Rate: 4% Rate:3% Rate:12% of contracted Accustom to Cost Cost Cost technicians premium pricing Drivers Drivers Drivers Oil/Fuel Labor Labor Labor Maintenance Operational Products Operational Professional Products Airline companies are the chain captains and are strongly affiliated with Airport companies. Collectively they represent 93% of the value primarily because they provide the core service for the traveler. Therefore, airport day spas are highly susceptible to the fluctuations of the airline industry. However, with lower growth rates Airport Day Spas provide a unique service in growing demand that can optimize airline/airport revenues. The technicians deliver the spa service to the end consumer. Technicians make up only 1% of the value but 20% of the spa revenue on average. Based on these factors, the Airport Day Spa can do the following to optimize its value within the supply chain.  Align with target airline companies to build spas close to airline gates  Add value to specific airports with more sites to increase revenue/profits  Optimize arrangements with technicians by establishing core groups to contract out and ramp up to daily compensation rates with commissions to better manage costs 4.22 Competitive Forces Rivalry among competitive firms – LOW There is normally just 1 company with a spa in an airport, 2 at the most. CONFIDENTIAL AND PRORIETARY 13
  • 15. Potential entry of new competitors – LOW Although most spa companies in airports have similar capabilities, there is a significant limit on entering an airport if another spa is currently there. However, there is a risk of existing day spas leveraging their operation to enter the emerging Airport Spa sector Potential development of substitute products - LOW Due to the niche service orientation of spas and the airports’ tendency to optimize space with a variety of vendors most appropriate to travelers Bargaining power of suppliers – HIGH Airports have full autonomy of approving vendors and determining terms to operating Bargaining power of customers – LOW Airport travelers are isolated in locations with extreme time constraints and low to no alternatives for spa services while at an airport. The multiple low competitive forces due to the niche services of an airport spa in combination with constrained traveling dynamics provide and attractive market segment with minimal competition once operating within an airport location 4.23 Airport Spa Competitors An independent survey of airport spas showed that the entire Airport Spa segment is emerging but still oligopolistic with less than 20 companies. They are located in over 20 airports and over 40 locations within those airports, plus several are expanding. Most of these spas are located post security (primarily due to the setup of the airport with minimal pre-security vendors) and are full line stores that service multiple massages, facials, manicures, pedicures, and other treatments. Spa companies with multiple locations throughout a specific airport tend to have a kiosk site within their mix as a means to enhancing coverage and brand value within the airport. Some of the smaller companies also service from kiosks to better manage profitability. Airport Spa Competitors Financials/Statistics Summary Avg. Avg. Daily Monthly Avg. # Avg. Tech Avg. Hrs Sales Sales Avg. Yearly Techs Daily Pay of est. est. Sales est. est. est. Operation $2,000 $56,000 $672,000 10 $100 14 CONFIDENTIAL AND PRORIETARY 14
  • 16. Airport Spa Chair/Foot Massage Pricing – Avg. est. Service Avg. Chair Massage - 10m $ 13 Chair Massage - 15m $ 20 Chair Massage - 20m $ 27 Chair Massage - 30m $ 41 Foot Massage & Soak – 10m $ 18 Foot Massage & Soak – 15m $ 24 Foot Massage & Soak – 20m $ 35 Foot Massage & Soak – 30m $ 48 * Reflexology was not a standard service with most foot massage and soak services. Competitor Analysis Takeaways  Airport spas achieve a much higher profit margin, with bigger stores achieving an even greater margin due to lower payout scales to technicians  Bigger day spas with more services can provide greater revenues and profits only when the spa can efficiently manage higher overhead costs  Chair massages are the most popular services  Revenue can double during busy/peak times  Pricing is very consistent amongst airport spas 5.0 Challenge Assessment (For operating an Airport Spa) Challenges  Maintaining and managing a reliable, quality technician work force  Minimizing impact of slow times  Optimizing revenue and profits with a small limited-service store  Securing additional management to carryout tactical operational responsibilities Solutions  Secure an abundance of technicians and stabilize schedule routine  Implement quality assurance regimen/program  Empower core technician group with managerial responsibilities and hire management/assistant upon expansion once demand is fully determined CONFIDENTIAL AND PRORIETARY 15
  • 17. Create significant promos and discounts to maximize sales from consistent base of airport employees  Create traveler customer incentives to maintain consistent traffic 6.0 Strategy and Implementation 6.1 Macro Business Strategy Pamper Me Please will implement focus strategies to grow the business organically primarily through market penetration, market development, and alliances. This strategy includes increasing market share for wellness products and services within the current Pamper Me Please business portfolio for the DC metro area through the implementation of greater marketing efforts. In addition, the business seeks to consistently grow by introducing the core spa and wellness services/products into new market segments. The airport RMU within Ronald Reagan Washington National Airport serves as the cornerstone market development and alliance initiative. Pamper Me Please will leverage upon the success of its airport division to expand into other major US metropolitan areas as an airport and mobile day spa conglomerate with a plethora of value-adding alliances. Pamper Me Please will also leverage its brand value upon new service/product development opportunities that are aligned with its wellness competencies. Pamper Me Please Business Strategy Market Penetration Market Development Chair Massages Airports Reflexology Massages Hotels Wellness Products Kids Spa Full Line Services Major US cities ALLIANCES Businesses Organizations Service/Product Development PMP Products Wellness Education Professional Development (Techs) 6.2 Strategic Goals and Objectives 6.21 Goals 1. Become a leading conglomerate for mobile, airport, hotel, and children day spas within the DC metro market 2. Expand PMP to multiple major US markets 3. Build multiple streams of revenue by leveraging the PMP brand CONFIDENTIAL AND PRORIETARY 16
  • 18. 4. Build significant technical and professional development opportunities for wellness professionals 5. Catapult a philanthropic and education platform for promoting physical, economic, and civic fulfillment 6.22 Objectives 1st yr. 1. Generate total revenue of $70k  $20K - Airport  $50K - Mobile 2. Achieve 50% gross margin with Airport Division 3. Secure corporate clientele with re-occurring weekly, bi-weekly, and monthly requests 4. Donate to sickle cell and breast cancer foundations 3rd yr. 1. Expand to Full-Line Day Spa at Ronald Reagan Washington National Airport 2. Generate total revenue of $590k  $480K - Airport  $110K - Mobile 3. Achieve 45% gross margin and 8% net profit with Airport Division  $230K – Airport Gross Margin  $39K – Airport Net Profit 4. Secure investment of $40K 5. Employ 2 part-time technicians at Ronald Reagan Washington National Airport 6. Establish Manager and Assistant at Full-Line Airport Spa 7. Establish Marketing and Sales functions (in-house/outsource) 8. Increase donations to sickle cell and breast cancer foundations in correlation to business growth 5th yr. 1. Generate total revenue of $745k  $580K - Airport  $175K - Mobile 2. Achieve 45% gross margin and 12% net profit with Airport Division  $260K – Airport Gross Margin  $70K – Airport Net Profit 3. Expand Full-Line Day Spa to 2 additional airports within major US markets CONFIDENTIAL AND PRORIETARY 17
  • 19. 4. Secure investment of $100K 5. Increase technicians staff, part-time technicians, managers, assistants, and marketing-sales functions in direct correlation with business growth 6. Increase donations to sickle cell and breast cancer foundations in correlation to business growth 6.3 Management Plan 6.31 Personnel Plan The PMP personnel are mostly contracted technicians that are all experienced, licensed, insured, and certified. All technicians are 1099 and will initially get paid 100% commission. This is effective for significantly minimizing overhead and insuring that PMP’s biggest cost driver will only be incurred in direct proportions to sales generated. The Ronald Reagan Washington National Airport RMU will make use of the available pull of 18 technicians within the mobile operation in addition to securing more. A total of at least 8 technicians will be solely dedicated to the airport kiosk. At least 4 technicians will work daily; 2 technicians per 6 hour shift during a 12 hour work day from 7am-9pm (the normal operating hours for vendors within National Hall at Ronald Reagan National Washington Airport). During busy seasons and identified peak times such as the holidays when travel is more extensive, there will be 3 massage technicians staffed during each shift. If there is ever a problem and a customer needs to speak with a manager immediately, the owner’s cell phone number will be posted on the RMU to handle issues. By year 3 PMP plans to expand into a full-line spa within the Ronald Reagan Washington National Airport. 12 additional technicians will be contracted during these expansions; PMP will also initially hire a part-time manager, assistant, and 2 part-time technicians for the Ronald Reagan Washington National Airport full-line spa. PMP will continue to hire technicians, managers, and assistants at a similar rate during expansions in enhancing PMP’s personnel stability, quality, and cohesiveness. By year 5 an average of at least 18 technicians will be secured for each full-line airport expansion. . PMP Personnel Plan – Airports # of # of # of Part- Technicians Contracted Time Total # of per 6hr.shift PMP Airport Site Technicians Technicians Technicians (12hr. day) Washington Airport Kiosk - Yr. 1 8 0 8 2 Washington Airport Full Line - Yr. 3 17 3 20 5 (Yr. 1 WA RMU are included within Yr. 3 WA Full-line) Executive management will consistently explore qualified technicians for sourcing. An orientation and training will be conducted for every new technician that works at the airport spa. Technicians will be trained to carryout managerial, cashier, communication, and re-stocking responsibilities. Technicians will initially be compensated $6 per 15 minute massage, with all compensations for other massage durations being in direct correlation to this rate. Incentives will include sliding scale rate compensation based on production and percentage of service sales to retail. In addition, contests will be held monthly to generously reward high performers. Competitive hourly wages will be paid to part-time employees in addition to annual raises. CONFIDENTIAL AND PRORIETARY 18
  • 20. 6.4 Marketing Plan 6.41 Target Market Pamper Me Please’s primary target consumers are middle class adults with average household incomes of $100,000 between the ages of 35-55 who either reside within or frequently visit the DC metro area. PMP’s business portfolio seeks to initially penetrate the market segments encompassing the following demographics and psychographics within the DC metro area:  Moderate to high frequenting female spa goers (1-4 times a month) in groups engaging in special events (weddings/birthdays/etc.)  Businessmen and white collar male workers  Fortune 500 companies  Government-based organizations  Airport business travelers (male & female) who reside in 4 star or better hotels  Airport vacation travelers (male & female) who reside in 4 star or better hotels  Consumers with chronic pain or old injury issues The demographics of Ronald Reagan Washington National Airport/Westfield greatly compliment the target market strategy of PMP. Thus, the Ronald Reagan Washington National Airport will initially garner the greatest focus due to the high traffic and strong concentration of PMP’s target consumers. The primary target market within the airport will be the business traveler. Over 18 million customers travel through the airport with 56% business travelers and 44% personal. 52% are male and 48% are female of an average age of 44 yrs., with the average household income being $107,600. PMP will be able to thrive within such an environment and add a unique growing service to a site generating $71.2 million in sales with an average terminal dwelling time of 75 minutes, more than enough time to receive a relaxing spa service. In addition, PMP will be able to maximize upon the attractiveness and accessibility National Hall provides to non- traveling customers, who frequently patronize National Hall vendors, as a stationary site for driving PMP business. Secondary targets for PMP’s entire operations, including the Airport, will include Airport employees, pre-teens between the ages of 9-13, and young adults between the ages of 18- 30. 6.42 Brand Positioning The company name “Pamper Me Please” represents a consumers’ call to action for an extraordinary above and beyond service they deserve. PMP responds to the consumer’s demand for special attention and treatment with the following slogan: “You Deserve To Be Pampered!” The PMP brand will represent the premiere spa of ultra-customizing mobility for delivering “irresistible” wellness. PMP will provide luxurious spa services and products at a level of quality comparable to the Waldorf Astoria in combination with the on- demand responsiveness and availability of a Pizza Hut delivery. PMP creates an CONFIDENTIAL AND PRORIETARY 19
  • 21. environment for men and women to receive quick, accessible, convenient, long-lasting, and affordable stress relief both physically and mentally. PMP’s airport RMU at Ronald Reagan Washington National Airport will incorporate the aforementioned brand qualities and become the “irresistible wellness pampering hub” for business travelers needing to relieve stress, personal travelers desiring a catalyst for their vacation, and airport employees looking to temporarily escape the tribulations of their work day. 6.43 Products and Services 6.431 Airport PMP will initially implement a core-service focus strategy to efficiently respond to the demand at the airport RMU with the highest level of customer service. PMP will provide a small select group of high quality massage services in combination with unique wellness products in delivering a fast, high-impact wellness experience to its customers. This will also enable the busy traveler to make a comfortable quick decision regarding their preferred service available. All PMP services provide a natural means to strengthening and healing the body The massage and reflexology services refresh the mind, body, and soul long after the client has left the airport. The product lines sold will relax and invigorate our clients at their offices or in their homes days and months later as they use the products - remembering PMP at the same time. The On-Site Seated Massage is the number #1 wellness program geared towards the well being of corporate travelers. In today’s busy workforce, the business traveler is often already stressed on a highly demanding job. Traveling just adds to this stress level as passengers deal with check-in, go through extensive security checks, and take airport shuttles to New York, Boston, and other destinations. PMP’s concept of the Seated Massage takes this stress level into account and alleviates it through timed increments of massage on ergonomically designed massage chairs. Chair Massage The corporate seated chair massage is the standard and most requested service within the day spa industry. Swedish massaging is combined with acupressure techniques by hand, elbow, or the aid of various devices on different acupuncture points on the surface of the body (primarily upon the neck, shoulders, back, arms, and hands). This massage treatment improves circulation, eases muscle aches and tension, improves flexibility, and creates relaxation. Massages are given in 10, 15, 20, and 30 minute increments while customer is seated in an ergonomic chair. Foot Massage & Soak/Reflexology Customers recline in a comfortable chaise lounge and receive an intense massage from an expert technician with choose of the standard Swedish therapy or the Reflexology treatment. Reflexology incorporates manipulation and pressure applied to reflex points on the feet and hands to help balance the entire body. It also improves circulation and stimulates the nervous system. Foot Balm is massaged into the feet for a soothing sensation. Treatments are given in 10, 15, 20 and 30 minute increments. The customer is allowed to remove shoes & socks. CONFIDENTIAL AND PRORIETARY 20
  • 22. Massage Therapy Service (Swedish/Acupressure) Reflexology To improve the To improve the function function of organs, of tissue directly glands, and all Purpose stimulated systems of the body Neck, Shoulder, Back, Body Part Focus Arms, & Hands Hands & Feet Uses large muscle movements (hands, Uses small muscle arms, elbows, & other movements Technique Applied devices) (thumbs/fingers) Seated Yes Yes Use of Oils/Lotions No Yes Clothing Removal of shoes & Requirements Fully-clothed socks Time Durations (m) 10/15/20/30 10/15/20/30 Total Body Relaxation; Balance; Local muscle relaxation; Circulation, Nervous Benefits Circulation System Stimulation Beauty & Wellness Products PMP will carry and continuously stock high quality wellness product consumables and literature as add-on sales to massage services in addition to stand-alone products for a variety of therapeutic purposes. These items include:  Lotions (skin/sun-tan)  Balms  Oil/Aroma Baths  Candles  Spa & Grooming Products  Creams/Preservatives  Body Wraps/Face Masks  Body Packs  Wellness books  Relaxation Music CDs Competitive Advantages PMP’s comprehensive beauty, spa, health, and wellness service/product portfolio will provide unique competitive points of difference in separating itself from other airport and day spas through the following:  Supreme customer service and professionalism  High-quality massages  A haven like relaxing environment with “irresistible” wellness attractions (will include aromas, soothing music, and enticing spa décor)  Emerging wellness knowledge literature and insight  Cutting edge high quality products CONFIDENTIAL AND PRORIETARY 21
  • 23. Competitive Points of Parity PMP will maintain an equal degree of industry product-service competencies in relation to airport and day spas through the following:  Industry standard massage equipment (ergonomically designed chairs that can hold 400lbs)  Use of standard operational and professional products with services  Supply of experienced, licensed, and certified technicians relative to operations  Pricing model 6.432 Other Divisions - Mobile Brand value will continuously build, adding to the success of the Airport site due to the operational activity of PMP amongst its other divisions as an emerging mobile day spa conglomerate. PMP also plans on expanding to a full-line spa within the Ronald Reagan Washington National Airport. As a full-service “1 Stop Shop” for beauty, spa, heath, and wellness services; the following products and professional services will be offered: Massage Therapy - Corporate seated chair Reflexology Full Body Massage Therapy  Swedish  Deep Tissue (targets deepest layers of muscle in over-stressed areas)  Combination (mix of Swedish & deep tissue massage)  Aromatherapy (aromatic oils fused with a soothing energy balancing massage)  Hot Stone (lava stones/granite rocks are applied to specific acupressure pts.)  Maternity (catered to pregnant women)  Cellulite (designed to reduce cellulite)  Scalp  Synchronized (use of 2 technicians on 1 person)  His & Her Couples (designed for couples to receive massage at same time) Facials Waxing  European (classic pore cleansing & restoration)  Deep Cleansing (Deep cleansing exfoliation & steam used for extractions)  Refresher (fast facial)  Mesmerizing Eyes (focused on areas around the eyes)  Gentlemen’s Facial  Aromatherapy  Anti-aging  Back  Fruit Enzyme  Deep Hydration  Glycolic (use of glycolic to remove deep lines and wrinkles)  Acne  Facelift  Vitamin C (use of Vitamin C antioxidants) CONFIDENTIAL AND PRORIETARY 22
  • 24. Oxygen  Hot Stone Waxing  Full Leg Half Leg Bikini  Brazilian Arm Underarm  Back Chest Entire Face  Chin Lip Brow  Nose Ears Cheek Manicures and Pedicures  Essentials (standard)  Men’s Sport  Hot Oil  Aromatherapy  Specialty (use of natural stimulants)  Aromatic scrubs (a la carte) Body Wraps Treatments  Detoxifying Seaweed (use of seaweed minerals)  Cellulite  Body Toning  Partial (tummy, arms, legs, thighs, etc.) Body Treatments  Hydrating Body Gel (use of gel to moisturize skin)  Body Polish (softening & ridding of old dull skin)  Body Scrub (body scrub applied to entire body & rinsed)  Body Paraffin (use of paraffin to smooth, hydrate, & restore skin)  Body Mud (beautifying mud applied to tone, firm, & refresh skin)  Body Bronzing  Anti-Aging Skin Care Make-Up  Lesson  Special Event Makeover 6.44 Pricing PMP implements a penetration pricing strategy in which the prices of the services and products are set at a standard competitive rate. PMP will maintain prices comparable to median prices amongst the leading airport and day spa companies. The prices reflect value, quality, and luxury at an affordable rate. Small discounts will be applied to services requested in longer durations. Tips will also be encouraged for the technicians. Below are the prices for the core services offered at the airport site. Prices for all other PMP services and products mostly relevant to the mobile operations can be found in the appendix. CONFIDENTIAL AND PRORIETARY 23
  • 25. Service Price Chair Massage - 10m $ 15 Chair Massage - 15m $ 21 Chair Massage - 20m $ 27 Chair Massage - 30m $ 39 Foot Massage - 10m $ 20 Foot Massage - 15m $ 27 Foot Massage - 20m $ 36 Foot Massage - 30m $ 48 Reflexology Foot Massage - 10m $ 27 Reflexology Foot Massage - 15m $ 38 Reflexology Foot Massage - 20m $ 50 Reflexology Foot Massage - 30m $ 70 6.45 Promotion PMP will strive to lead the DC metro spa market in creative promotional activities that generate significant business by:  Generating trial amongst 1st time PMP customers  Driving repeat customers  Creating a premiere, favorable, and lasting brand impression for “Pampering “ and providing “Irresistible Wellness” An aggressive promotional mix of sale discount promotions, advertising material distribution, public relations, internet advertising, and airport signage will be implemented to achieve these goals at a relatively low cost. A strong focus will be placed on the Airport site as a central hub for PMP services. Mobile spa operations will be simultaneously leveraged as well, creating a buzz where local Airport customers are converted to mobile spa customers and vice-versa. Media advertising such as radio and TV will not be used initially due to the high costs incurred from achieving optimal frequency in combination with uncertain returns at a moderate budget. 6.451 Sale Discount Promotions PMP’s initial goal is to generate an influx of 1st time customer trials so the “irresistible” quality of PMP’s core spa and wellness services can be fully experienced at an optimal level of comfort for the customer. Sale discount promotions will drive new customers to try PMP’s core massage services at the Airport during traveling and non-traveling purposes, in addition to group setting mobile spa events. Discount offers will be consistently aligned with most promotional efforts to continuously catalyze demand and urgent point of purchase transference. Sale discount promotions will include: CONFIDENTIAL AND PRORIETARY 24
  • 26. “3 for Free” Promotion Customers will receive 3 extra minutes of massage or reflexology for free with the purchase of at least a 15-minute massage or more. (Airport) “Massage and Reflexology Combo Discount” Customers can try a combo package and get $3 off 20minute combined services and $5 off 30minute combined services. (Airport/Mobile) “Monthly Drawing for a Free Full Body Massage” Customers can enter their business cards for a monthly drawing where PMP will give away a 1 hour full body massage for free at their home, office, or the airport. This massage will be transferable to a friend or relative if they do not live in the area. A key driver to creating traffic at the kiosk. (Airport) Love Mate Spa Date Couples receive $3 off 20minute combined services and $5 off 30minute combined services (Airport/Mobile) Family Discount Each family member of at least 3 people with kid(s) receive a 5minute chair massage at $7 (Airport/Mobile) “Frequent Flyer Massage Discounts” Customers who fly often will be able to purchase frequent flyer cards where they will be able to purchase 5 same timed increment massages and get the 6th massage half price or purchase 10 massages and get the11th massage free. (Airport) Mobile Spa Event Group Discount Airport customers will receive coupon for a 10% discount for a mobile spa event with at least 10 people and 20% for at least 25 (customers must book event by determined redemption date). “No Empty Seats For Too Long” If there are times when the massage chairs are empty, occasionally, therapists will choose a random passenger and offer a 3 minute massage for free to keep a customer in the chair periodically. When people see other people in the chairs it often encourages them to get a massage as well. In addition, customers will often want to purchase a service to extend their massage service or leave with a wellness product. (Airport) Seasonal discount promotions will also be offered during holidays and special events like Christmas, Valentine’s Day, Mother’s Day, & Prom Season. Retail discounts will be offered periodically as well. 6.452 Advertising Material Distribution 10,000 high resolution PMP brochures and coupon flyers will be created and made available for distribution throughout 90 day intervals. All materials will display the PMP logo, enticing “call to action” promotional statements, and attractive spa-related visuals that capture the “irresistibility” of PMP’s wellness CONFIDENTIAL AND PRORIETARY 25
  • 27. services and sale discount promotional incentives. Sites of distribution within the DC metro area will include:  Airport kiosk  Hotel concierges  Corporations/organizations that have been serviced by PMP  Corporations/organizations within close proximity to Washington Airport/National Hall (to target the non-traveling patrons of National Hall) 6.453 Public Relations Public Relations and publicity will serve as one of PMP’s strongest promotional activities. PMP will implement a robust PR campaign, leveraging upon the credibility typically received from various publications. This will create positive word-of-mouth results to drive business at a relatively low cost. PMP will secure a PR consultant at a monthly retainer to effectively saturate the PMP brand within optimal magazine and newspaper sources viewed amongst target travelers and spa/wellness consumers. Over 100 local and national sources will be targeted. (view appendix for sources) The owner will consistently network and explore opportunities amongst members of charities, women’s groups, wedding planners, corporate special event coordinators, meeting planners, and other significant groups. Philanthropic activities will also be planned specifically for sickle cell, breast cancer, and battered women organizations. 6.454 Internet Advertising Website PamperMePleaseSpa.com provides information on the entire gamete of beauty, spa, health, and wellness services/products offered in detail. The layout currently includes 10 web pages with detailed dropdown capabilities for general (home), services-products, mobile operations, and contact info. Visual aesthetics and content layout will be enhanced to optimize brand appeal in capturing interested visitors. An Airport site page will also be added and heavily promoted with coupons available on the site. Internet directories (spa focused) PMP will drive its visibility on popular search engines (i.e. google, yahoo, aol, msn, etc.) by registering with a plethora of primarily free internet directories geared towards spa and wellness companies. A goal of 200 sites to be listed upon will be set to achieve initially. Afterwards, an internet directory exploration will be conducted to achieve 50 new listings a month until reaching 1,000. Afterwards, a staff worker will be hired to maintain a presence on these listings. (view appendix for target sites): Spa Sites/Blogging Communities PMP’s owner will actively participate on numerous popular spa/wellness sites and blogs that gather many “target consumers” to discuss spa-related topics. A top 50 list will be compiled and a staff worker will be hired to consistently participate. (view appendix for target sites) CONFIDENTIAL AND PRORIETARY 26
  • 28. 6.455 Sales Forecast The PMP sales forecast assumes a conservative and realistic growth trend for the airport and mobile operations, with a projection of the airport site being open by the 4th quarter of 2010. The areas of revenue for the airport during year 1 and 2 are massages and retail beauty/wellness products. For the forecast a conservative average of $20 per 15 minute service was estimated with $6 per 15 minute service paid to the technician (with a minimum of 2 technicians on site). The basis for these projections is a conservative estimate of 6 services (15m) per day during the 1st month of business, ramping up to 35 services (15m) per day by mid year 2011 (which breaks down to a conservative 3 customers per hour approximately) during a 12 hour 7 days a week work schedule. Retail beauty/wellness products were conservatively estimated to be 10% of gross sales although the retail revenue should increase in high correlation to an increased amount of services performed. The gross margin for retail products was estimated to be 50%. By Year 3 PMP’s site at Ronald Reagan Washington National Airport will expand into a full-line store, conservative growth projections were applied. SALES FORECAST - 5 Yr. Projections FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 SALES Ronald Reagan Airport Massages $ 21,000 $ 219,000 $ 383,250 $ 421,575 $ 463,733 Retail $ 2,100 $ 21,900 $ 44,074 $ 48,309 $ 53,140 Other Full-Line Services $ - $ - $ 57,488 $ 61,512 $ 67,663 Ronald Reagan Airport Total $ 23,100 $ 240,900 $ 484,811 $ 531,395 $ 584,535 SALES FORECAST - 5 Yr. Projections (Breakdown) Ronald Reagan Airport FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Avg. Avg. Avg. Avg. Avg. # of # of # of # of # of $ Serv. $ Serv. $ Serv. $ Serv. $ Serv. Monthly $7,000 350 $18,250 913 $31,938 1,597 $35,131 1,757 $ 38,644 1,932 Weekly $1,750 88 $ 4,563 228 $ 7,984 399 8,783 439 $ 9,661 483 Daily $ 250 13 $ 652 33 $ 1,141 57 1,255 63 $ 1,380 69 Hourly $ 21 1 $ 54 3 $ 95 5 105 5 $ 115 6 % Increase 161% 75% 10% 10% CONFIDENTIAL AND PRORIETARY 27
  • 29. As the aforementioned suggests, ultra conservative estimates were applied beginning with a slow ramp up from year 1 to year 2. The significant growth to over $240K represents an extra 9 months of operation throughout the full year (verses only 3 months during year 1) in addition to operating at a much greater capacity. At a conservative “average service rate” of just 3 customers per hour in year 2, sales projections are definitely achievable. In Year 3 with the expansion into a full-line day spa within Ronald Reagan Washington National Airport, a growth rate of 75% from year 2 is projected in generating $484.8K at an average service rate of 5 customers per hour. A significant increase in sales with the full-line store is highly achievable due to a greater number of spa services being provided, more technicians to meet greater demands, and a stronger brand/operational value due to management and promotional efficacy. Moderate growth projections throughout 2014 are beyond achievable, with PMP being positioned strongly for surpassing sales forecasts. 6.456 Milestones PMP Airport Implementation Secure core group of technicians for airport site 7/31/10 Attain LDBE certification 8/15/10 Secure kiosk site at Ronald Reagan Washington Airport 8/30/10 Purchase equipment, décor, and initial products 9/15/10 Finalize initial schedule, set-up, & airport operation 9/15/10 Begin kiosk airport operation at Ronald Reagan Washington Airport 10/1/10 7.0 Financial Analysis 7.1 Important Assumptions The table below contains important assumptions that PMP incorporates in calculating achievable financial projections. A primary assumption is that the economy and airline industry will not experience a severe recession. Important Assumptions 2010 2011 2012 2013 2014 Short-Term Interest Rate 7% 7% 7% 7% 7% Tax Rate 35% 35% 35% 35% 35% Avg. Annual Depreciation Rate (5yr.) 0.20% 0.20% 0.20% 0.20% 0.20% Allowance for uncollectible accounts 0.3% 0.3% 0.3% 0.3% 0.3% In addition, the following assumptions have been made for all the pro forma financial statements: CONFIDENTIAL AND PRORIETARY 28
  • 30. The PMP Ronald Reagan Washington National Airport RMU will be secured and operating at the beginning of Q4 (October) 2010  The PMP Ronald Reagan Washington National Airport RMU will expand to a Full-Line Day Spa at the beginning of 2012 (Year 3) 7.2 Break-Even Analysis With the average variable costs being 35% in the first year and estimated average fixed monthly expenses of approximately $2,615, the required monthly breakeven sales volume for PMP at the Ronald Reagan Washington National Airport is approximately $4,023. This breaks down to 6 massages (15 minute average) and 3 retail products serviced a day. PMP is also projected to recoup its initial start-up expenses by Q1 2011. Monthly Break Even $ 4,023 Average % Variable Costs 35% Fixed Costs $ 2,615 Avg. Monthly Break Even Units - Massage Services 181 Avg. Monthly Break Even Units - Retail Products 80 Avg. Daily Break Even Units - Massage Services 6 Avg. Daily Break Even Units - Retail Products 3 Break-Even Analysis Graph $8000 $6000 $4000 $2000 $0 $-2000 $-4000 $-6000 $2000 $4000 $6000 $8000 $10000 $12000 Monthly break-even point * Break-even point = where line intersects with 0 CONFIDENTIAL AND PRORIETARY 29
  • 31. 7.3 Pro Forma Profit and Loss During Year 1 through 2 and all commissions will be directly correlated to sales, ensuring that variable costs are controlled to maintain a solid level of profitability. Commissions will primarily be distributed in a similar manner throughout 2014. As sales increase significantly form year 1 to year 2, so will expenses due to a full year of operation (verses 3 months). However, due to the higher operational efficacy of PMP at a greater sales capacity, net profit increases to 14% in year 2. With the expansion to a full-line store in year 3 (2012), the new initial investment cost drivers inclusive of construction/design in addition to rent expenses that will at least double the rent of the kiosk decrease net profits by 6%. The net profit increases by 4% in the 4th year and maintains at 10% throughout year 5 at much larger revenues and profits with the full line verses the initial kiosk. Pamper Me Please LLC - Airport Division Pro Forma Profit and Loss - 5 Year Income Statement Fiscal Year Ending Dec. 31, 2010-2014 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Sales $ 23,100 $240,900 $484,811 $531,395 $584,535 Direct Costs of Goods Technician Commissions $ 6,300 $ 65,700 $153,300 $168,630 $185,493 Owner Commissions $ 1,320 $ 42,075 $ 63,025 $ 79,709 $ 87,680 Cost of Retail Products $ 1,050 $ 10,950 $ 22,037 $ 24,154 $ 26,570 Linens & Cleanings $ 630 $ 6,570 $ 11,498 $ 12,647 $ 13,912 Oils & Lotions/Polish $ 105 $ 1,095 $ 1,916 $ 2,108 $ 2,319 Other Product Supplies $ - $ - $ 2,874 $ 3,076 $ 3,383 Total Direct Cost of Goods Sold $ 9,405 $126,390 $254,650 $290,324 $319,357 Gross Margin $ 13,695 $114,510 $230,161 $241,071 $265,178 Gross Margin % 59% 48% 47% 45% 45% Expenses Payroll $ - $ - $ 7,800 $ 9,750 $ 11,700 Advertising/Promotion $ 6,500 $ 9,750 $ 14,300 $ 16,900 $ 18,000 Website $ 750 $ 300 $ 750 $ 600 $ 450 Other Sales & Marketing Expenses $ 4,875 $ 3,250 $ 6,500 $ 8,125 $ 9,000 Travel $ 600 $ 1,000 $ 1,700 $ 2,000 $ 2,400 Equipment $ 1,850 $ 450 $ 2,800 $ 500 $ 1,750 Professional Services $ 1,750 $ 1,400 $ 5,250 $ 2,500 $ 3,750 Rent $ 7,500 $ 30,000 $ 60,000 $ 60,000 $ 60,000 Utilities $ - $ - $ 2,400 $ 2,400 $ 2,400 Phone $ 180 $ 720 $ 1,440 $ 1,440 $ 1,800 Credit Card Charges $ 231 $ 2,409 $ 4,848 $ 5,314 $ 5,845 Construction & Design $ 500 $ 500 $ 35,000 $ 2,500 $ 2,000 Airport Break Even Fee $ - $ 8,710 $ 9,563 $ 14,805 $ 20,786 Depreciation $ 185 $ 460 $ 1,020 $ 1,120 $ 1,470 Insurance $ 600 $ 600 $ 1,800 $ 1,800 $ 1,800 Computer & Software $ 1,400 $ 700 $ 2,450 $ 1,050 $ 1,050 Donations $ 250 $ 375 $ 750 $ 1,250 $ 1,750 Other $ 2,074 $ 1,625 $ 3,900 $ 2,925 $ 2,600 Total Operating Expenses $ 29,245 $ 62,249 $162,271 $134,979 $148,551 Earnings Before Interest and Taxes (EBIT) $(15,550) $ 52,261 $ 67,890 $106,092 $116,627 Interest Expense $ - $ - $ 6,419 $ 8,560 $ 8,560 Taxes Incurred $ - $ 18,291 $ 21,515 $ 34,136 $ 37,823 Extraordinary Items $ - $ - $ - $ - $ - CONFIDENTIAL AND PRORIETARY 30
  • 32. Net Profit $(15,550) $ 33,970 $ 39,956 $ 63,396 $ 70,243 Net Profit % (Net Profit/Sales) -67% 14% 8% 12% 12% 7.4 Pro Forma Cash Flow Conservative estimates still reflect strong net cash growth for PMP throughout 2014. Pamper Me Please LLC Pro Forma Profit and Loss - 5 Year Cash Flow Statement Fiscal Year Ending Dec. 31, 2010-2014 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Cash Flow From Operations Net Income From Operations $(15,550) $33,970 $ 39,956 $ 63,396 $ 70,243 Depreciation and other Amortization $ 185 $ 460 $ 1,020 $ 1,120 $ 1,470 Changes in Operating Assets & Liabilities Accounts Receivable $ (46) $ (371) $ (746) $ (818) $ (899) Inventories $ (350) $ (2,738) $ (5,509) $ (6,039) $ (6,642) Accounts Payable $ 750 $ 1,130 $ 11,538 $ 12,550 $ 14,000 Deferred Taxes $ - $ - $ - $ - $ - Net Cash Flow From Operations $(15,011) $32,452 $ 46,258 $ 70,210 $ 78,172 Cash Flow From Investments Purchase of Property, Plant, Equipment $ (3,750) $ (5,650) $(46,150) $ (50,200) $ (56,000) Acquisition of Intangibles $ - $ (750) $ (750) $ (1,500) $ (1,500) Net Cash used in Investing Activities $ (3,750) $ (6,400) $(46,900) $ (51,700) $ (57,500) Cash Flow From Financing Net Increase in Debt $ - $ - $ 32,096 $ 21,396 $ 10,696 Equity Contributions $ 20,000 $20,000 $ 20,000 $ 20,000 $ 20,000 Net Cash used in Financing Activities $ 20,000 $20,000 $ 52,096 $ 41,396 $ 30,696 Net (Decrease) Increase in Cash and Cash Equivalents $ 1,239 $46,052 $ 51,454 $ 59,906 $ 51,368 Cash & Cash Equivalents, Beginning $ - $ 1,239 $ 47,291 $ 98,745 $158,651 Cash & Cash Equivalents, Ending $ 1,239 $47,291 $ 98,745 $158,651 $210,019 CONFIDENTIAL AND PRORIETARY 31
  • 33. Pamper Me Please, LLC Ronald Reagan Washington National Airport Pro Forma Cash Flow $250,000 $200,000 Net Cash Flow $150,000 Cash Balance $100,000 $50,000 $0 -$50,000 2010 2011 2012 2013 2014 CONFIDENTIAL AND PRORIETARY 32
  • 34. 7.5 Pro Forma Balance Sheet Pamper Me Please LLC - Airport Division Pro Forma Profit and Loss - 5 Year Balance Sheet Fiscal Year Ending Dec. 31, 2010-2014 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 Assets Current Assets Cash $70,200 $104,170 $176,222 $261,013 $341,953 Accounts Receivable $ 46 $ 371 $ 746 $ 818 $ 899 Inventory $ 350 $ 2,738 $ 5,509 $ 6,039 $ 6,642 Prepaid Expenses $ 600 $ 600 $ 1,800 $ 1,800 $ 1,800 Allowance for uncollectible accounts $ - $ - $ 529 $ 783 $ 1,026 Total Current Assets $71,196 $107,878 $184,805 $270,453 $352,320 Long-Term Assets Property, Plant, & Equipment $ 3,750 $ 5,650 $ 46,150 $ 50,200 $ 56,000 Accumulated Depreciation $ (565) $ (750) $ (1,910) $ (1,830) $ (2,280) Total Long-Term Assets $ 3,185 $ 4,900 $ 44,240 $ 48,370 $ 53,720 Other Assets Intangibles Assets $ - $ 750 $ 750 $ 1,500 $ 1,500 Total Other Assets $ - $ 750 $ 750 $ 1,500 $ 1,500 Total Assets $74,381 $113,528 $229,795 $320,323 $407,540 Liabilities and Owner's Equity Current Liabilities Short-Term Loans $ - $ - $ 32,096 $ 21,396 $ 10,696 Accounts Payable $ 750 $ 1,130 $ 11,538 $ 12,550 $ 14,000 Wages/Commissions Payable $ 315 $ 2,527 $ 6,196 $ 6,861 $ 7,584 Interest Payable $ - $ - $ - $ - $ - Taxes Payable $ - $ - $ - $ - $ - Total Current Liabilities $ 1,065 $ 3,657 $ 49,830 $ 40,807 $ 32,280 Long-Term Liabilities Long-Term Debt $ - $ - $ - $ - $ - Total Long-Term Liabilities $ - $ - $ - $ - $ - Total Liabilities $ 1,065 $ 3,657 $ 49,830 $ 40,807 $ 32,280 Owner's Equity Owner's Paid-In Capital $19,900 $ 19,900 $ 19,900 $ 19,900 $ 19,900 Common Authorized, 1000 shares of $.10 value $ 100 $ 100 $ 100 $ 100 $ 100 Retained Earnings $53,416 $ 89,971 $160,066 $259,616 $355,360 Total Capital $73,416 $109,971 $180,066 $279,616 $375,360 Total Liabilities & Capital $74,481 $113,628 $229,895 $320,423 $407,640 CONFIDENTIAL AND PRORIETARY 33
  • 35. 7.6 Pro Forma Financial Ratios Financial Ratios for the forecasted income, balance, and cash flow statements are provide below: FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 LIQUIDITY Current Ratio (Current Assets/Current Liabilities) 66.85 29.50 3.71 6.63 10.91 Quick Ratio (Current ratio less inventory) 66.52 28.75 3.60 6.48 10.71 Net Working Capital (Current Assets-Current Liabilities) $ 70,131 $104,221 $134,976 $229,646 $320,040 Current Cash Debt Coverage Ratio (Net Cash oper. Activ/avg current liabilities) -14.09 8.87 0.93 1.72 2.42 ACTIVITY Inventory Turnover (CGS/Inventory) 26.87 46.17 46.22 48.08 48.08 Accounts Receivable Turnover (Net sales/Avg trade receivables) 296 309 309 295 295 Accounts Receivable - Avg Days Outstanding 1.39 1.81 1.81 1.81 1.81 Asset Turnover (Net Sales/Avg Total Assets) 0.18 1.01 1.00 0.75 0.65 PROFITABILITY Profit Margin on Sales (Net income/Net sales) -1.14 0.30 0.17 0.26 0.26 Rate of Return on Assets (Net income/Avg total assets) -0.21 0.30 0.17 0.20 0.17 Rate of Return on Equity (Net income/Equity) -0.21 0.31 0.22 0.23 0.19 DEBT Debt (Total liabilities/total assets) 0.01 0.03 0.22 0.13 0.08 Debt-Equity (Debt/Equity) 0 0 0.18 0.08 0.03 CONFIDENTIAL AND PRORIETARY 34
  • 36. Appendix Corporate Client List 1. Southwest Airlines 2. Progressive Insurance 3. Aetna 4. Westin Hotels & Resorts 5. Microsoft 6. Heritage Financial 7. ManorCare (Nursing Home Chain) 8. Goucher College 9. R.J. Princinsky and Associates 10. Quest Insurance 11. Van Bokkelen Elementary School 12. Emerson House (Nursing Home) 13. Stoddard Baptist Nursing Home 14. Howrey LLP (Law Firm) 15. State Farm 16. Allstate 17. National Urban League (National Conference) 18. Greater Washington Urban League 19. Heart and Style Conference for Heart Disease 20. General Dynamics 21. Laurel Regional Hospital 22. Holy Cross Hospital 23. PMMI 24. DC Child and Family Services 25. Harbour Square Apartments 26. Jack and Jill of America 27. Sidney and Company 28. Mary McLeod Academy 29. DC Ballet School 30. Carrol Lutheran Village (Nursing Home) 31. University of Maryland Residence Life 32. US Marshalls Court House 33. Howard University Homecoming 34. PEPCO Golf Tournament 35. The Trizetto Group 36. JEM Engineering 37. Alpha Kappa Alpha Sorority 38. Ebenezer Church (Baltimore) 39. The One Love Festival 40. Verizon CITE Conference 41. Novastar Mortgage 42. Saks 5th Avenue CONFIDENTIAL AND PRORIETARY 35
  • 37. 43. Sister 2 Sister Sorority Luncheon 44. Business Executive Exchange Conference for National Urban League (Orlando, Florida) 45. Minor Elementary School 46. Thursday Network 47. D.C. Public Schools – Speaking Engagement 48. The High Academy – Speaking Engagement 49. Fairland Community Center--Speaking Engagement Testimonials Thank you for making my spa party a success. My guests really enjoyed their day of pampering. I will be calling you soon to book my next party. Sincerely, Tanya Phifer I just wanted to express my deepest appreciation for the work your staff did on my wedding day. Everyone commented that I was a beautiful bride. That was awesome! I will forward pictures to you soon. Thank you so much, Stephanie Brooks Thanks for making tax season so painless. The seated massages were exactly what we needed. Let's do it again next year! Best regards, Kehinde Kolawole, CPA My friends are still talking about my party. It was an excellent way to kick off my new business. Thank you for all of your help. God Bless You, Michella Jackson CONFIDENTIAL AND PRORIETARY 36
  • 38. Target PR Sources Magazines Local/Regional (DC)  Washingtonian Magazine (#1 in market penetration of all city-regional magazines)  Washington Business Journal  Washington Parent  Washington Woman  The Nation  Bethesda Magazine  Virginia Business Magazine  Guide to Retirement Living Magazine National/Travel  Travel + Leisure  Arthur Frommer’s Budget Travel Magazine  Travel Holiday  National Geographic Traveler  Travel 50 & Beyond  Vacations Magazine National/Consumer  Allure  Brides  Cosmopolitan  Elle  Essence  Glamore  Good Housekeeping  Bizarre  InStyle  Home Journal  Lucky  More  Oprah  People  Red Book  Self  Seventeen  Shape  Teen Vogue  Town & Country  Town & Country Wedding  W CONFIDENTIAL AND PRORIETARY 37
  • 39. National/Trade  American Salon  American Spa  Day Spa  D  Laun  Modern Salon  Nail Pro  Nails  Salon  Salon City  Salon Plus  Salon Today  Spa  Vidia  Viet Beauty  WWP Salon Newspapers Local (DC)  Washington Times  Washington Post  The Examiner  Washington City Paper  Capitol Hill Blue  The Common Denominator  The Hill  The InTowner  Henderson Hall News  Town Hall  Voice of the Hill  Roll Call National  USA Today  New York Times Websites  Local registries for main search engines (google, yahoo, msn, & aol)  Spafinder.com  about.com (dc spas)  spaindex.com  gayot.com  dayspastopten.com  openlist.com  craigslist.com  myhealthbriefcase.com  mydcwedding.com CONFIDENTIAL AND PRORIETARY 38
  • 40. georgetowndc.com  magicyellow.com  howstuffworks.com  yelp.com  partypop.com Blogs  blog.spafinder.com (Susie’s Spa Blog)  Dayspa-massage.com  Thelandofspa.blogspot.com  Traveltowellness.com  Spaflyer.com  Spasoflife.blogspot.com  spacollegeblog.wordpress.com  travel.timesonline.co.uk Websites of the aforementioned PR publications and sources will also be targeted Photos – PMP Events CONFIDENTIAL AND PRORIETARY 39