Love Yourself Day Spa Business Plan


Published on

Business Plan details

Published in: Business, Health & Medicine
No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide
  • Love Yourself Day Spa Business Plan

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