Love Yourself Day Spa Business Plan
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Love Yourself Day Spa Business Plan

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Business Plan details

Business Plan details

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Love Yourself Day Spa Business Plan Love Yourself Day Spa Business Plan Presentation Transcript

  • Presented by: ***Lisa Waldron*** Love Yourself Day Spa: Business Plan
  • Introduction:
      • Extensively developed services
      • Owner’s credible experience in business management and marketing
      • Excellent location in Manhattan
      • Competitive prices
      • Customer-friendly facilities
    • … . What else could be missing to ensure return on investment ???
  • Scope:
    • This report aims to provide a thorough discussion of the business plan for the Love Yourself Day Spa, including the following sections:
        • Company Background
        • Product/Service Description
        • Market Analysis
        • Marketing Strategy
        • Operating Strategy
        • Management Summary
        • Financial Summary
      • Will provide carefully selected day spa services
      • Will provide excellent customer service
      • Will be located in an upscale district in Manhattan
      • Will operate as a sole proprietorship
    Company Background:
  • Product/Service Description
    • The Love Yourself Day Spa will be offering the following services:
        • Shiat-su massage
        • Swedish massage
        • Bindi
        • Deep tissue muscle massage
        • Balneotheraphy
        • Different kinds of scrubs and facial treatments
        • Body wrap
  • Market Analysis
    • The International Spa Association records about 136 million visits to a spa in the US last year.
    • Spa revenues total to about $12 billion annually
    • Growing at a healthy pace of 25% per year
    • The Love Yourself Day Spa will be targeting local residents, visitors,shoppers, and employees within the vicinity with average monthly income of $48,000 and above. Visitors to spa fall under the following categories:
        • Individuals with above average income and with high disposable income
        • Individuals that seek alternative health and wellness services
        • Athletes
    Market Segmentation
      • Squeeze Cream Spa
      • Green Tea Nail and Spa
    Competition
        • Product
          • Carefully selected services
        • Pricing
          • Competitive pricing scheme
        • Placement/ Distribution
          • Upscale area with high traffic of potential customers
        • Promotion
          • Effective promotional mix
    Marketing Strategy (4 Ps)
  • Operating Strategies
        • Staffing Plan
          • Effective staffing plan ensures low over head cost
        • Physical layout
          • Space is maximized
          • Fosters efficiency and ease of movement
        • Business Insurance
          • Best option for the business
    • Owner will be directly managing the business on a day-to-day basis.
    • Owner has credible experience in business management
    • Owner will oversee daily operations
    Management Summary
  • Financial Summary
    • Start up cost is approximately $100,000
    • Items Costs
    •  
    • Rent $25,000
    • Construction/Renovation 10,000
    • Spa equipments/supplies 33,025 (see table of costs)
    • Office equipment/supplies 6,600 (see table of costs)
    • Business Licenses 200
    • Utilities 500
    • Fixtures and Furniture 10,000
    • Start-Up advertising 600
    • Legal services 500
    • Insurance 1,500
    • Professional association membership 200
    • Sub-total 78,125
    •  
    • Miscellaneous (10% of sub-total) 7,813
    •  
    • Total $95,938
    • Projected income in three years
    Financial Summary
  • Financial Summary
    • Cash flow statement on a quarterly basis for the 1 st year
  • Financial Summary
    • Financing and loan repayment
    • The owner will be investing $30,000 from personal savings and will borrow $60,000 from Virtual Bank at 8% interest rate, and to be repaid in five years.
    • Year Payment Principal Interest Balance
    • 1 $56,666 $51,866 $4,800 $4,067
    • 2 2,680 2,028 652 3,053
    • 3 2,520 2,030 490 4,076
    • 4 2,360 2,032 328 2,044
    • 5 2, 208 2,044 164 0
  • Financial Summary
    • Break even summary
    • Fixed costs (per month):
    • Fixed salaries and wages $ 14,400
    • depreciation 125
    • repairs and maintenance 960
    • rent 25,000
    • phone 45
    • interest expense 315
    • legal fees 90
    • advertising 1,200
    • insurance 125
    • utilities 250
    • $42,510
  • Financial Summary
    • Break even summary
    • Variable costs (dependent on the service)
    • Commission of therapist and aestheticians: 50% of service fee
    • Cost of good: 10% of services
    • Estimated Variable cost per service: $40
    • Estimated Net income per service : $32
    • … .To break-even in a month, the spa has to perform 1062 services in a month:
    • = fixed costs in a month
    • estimated income per service
    • = $42,520
    • $32
    • = 1328 services per month
  • Why Invest???
      • Extensively developed services
      • Owner’s credible experience in business management and marketing
      • Excellent location in Manhattan
      • Competitive prices
      • Customer-friendly facilities
    • … . Thus return on investment is ensured!!!!