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 ???

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

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:

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

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

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 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

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

Squeeze Cream Spa Green Tea Nail and Spa Competition

Squeeze Cream Spa

Green Tea Nail and Spa

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)

Product

Carefully selected services

Pricing

Competitive pricing scheme

Placement/ Distribution

Upscale area with high traffic of potential customers

Promotion

Effective promotional mix

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

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

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

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

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

Projected income in three years

Financial Summary Cash flow statement on a quarterly basis for the 1 st year

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

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

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

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!!!!

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!!!!