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EM HEALTH CLUB

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  • 1. TRANCE HEALTH CLUB PRESENTED BY: DILIP SINGH KUMAR SARVESH RAJEEV SHARAN
  • 2. INTRODUCTION TRANCE (TC) is a socially and environmentally conscious health club that is concerned not only with physical beauty but also with mental well being. Health club with environmental and social concerns that sets it apart from other clubs; all products used are plant safe and cruelty free
  • 3. GOALS OF THE CLUB The goals of our company are to be profitable and build a product line through name recognition. The immediate goal is to launch an additional product line into the beauty market. The long-term goal is to go public with several health club facilities and an active product line.
  • 4. KEY TO SUCCESS Create an environment for people to feel good about themselves, both physically and mentally. Provide services for those seeking natural means to strengthen and heal their bodies due to injury or illness. Provide services for the needs of women in shelters and those struggling financially. Provide special activities for various holidays.
  • 5. OBJECTIVES Break even by the end of year two. Have an increase in new clients quarterly. Have the companys work in the community covered in the local media.
  • 6. MISSION “To enhance the lives of men and women by providing an atmosphere that aids the body with relaxation techniques and health conscious alternatives.”
  • 7. COMPANY SUMMARY HSR LAYOUT of Bangalore, Karnataka Three founders Three investors.
  • 8. SERVICES Combination of salon, spa, and health club. Specialize in improving the mind, body, and soul. Each part of the club offers different services:  haircuts, colour, and styling in the salon,  full-body pampering in the spa, and  fitness classes in the health club. Each of these services is designed to nurture ones complete self, and, in turn, improve self image.
  • 9. SERVICESFuture services A product line  pure and natural  no animal testing, and  the use of only organic ingredients. Making our kitchen available for rent by start-up restaurants hoping to introduce their food to our clientele. Ideally, TC would like to create similar clubs in other cities as well.
  • 10. MARKET ANALYSIS
  • 11. MARKET ANALYSIS The initial market for TC is Bangalore, Karnataka.  growing population of moderate to high income professionals.  one of the fastest growing areas in the country, with a continually expanding consumer base.  the high level of travel to the area, especially among professionals & students, due to being well-planned layout.
  • 12. MARKET ANALYSIS Aims to provide health and spa services to those seeking physical and mental well being. Women between the ages of 18 and 70 are the vast market,  with an emphasis on professional women in their mid twenties through their mid fifties.  Also, women battling or recovering from a serious injury or illness are another specific target market. For men, professionals concerned about their appearance are our main market.  often in their late twenties through their mid forties. “Target anyone who is searching for a natural method to heal body and soul, regardless of age or income.”
  • 13. POTENTIAL GROWTH IN 10CUSTOMERS YEARS YEAR 2001 YEAR 2011 AGRWomen 48.18% 27,00,000 40,00,000 4.82%Men 49.18% 30,00,000 44,75,500 4.92%Total 48.69% 57,00,000 84,75,500 4.87% 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 WOMEN 2,000,000 MEN 1,500,000 1,000,000 500,000 0 YEAR 2001 YEAR 2011
  • 14. MARKET SEGMNTATION Two target groups. The corporate workers of Bangalore (ranging from early twenties to mid forties)  stressful jobs  financial opportunity to regularly treat themselves to a facial or massage.“Often in the working world it is necessary to look healthy and fit”
  • 15. MARKET SEGMNTATION People either recovering from an injury or people who have a condition which needs special attention.  create a safe environment where people feel comfortable and get the attention they need with out feeling ostracized or sick. “Offer special classes, massage, and homeopathic opportunities for people with specific needs.”
  • 16. TARGET MARKET SEGMENT STRATEGY  Plan to open on Valentine’s Day  offering people a tour of the facilities, facials, manicures, and brunch.  People will be allowed to purchase tickets for Rs 500 each and will be offered special benefits and packages.  To continue customer awareness,  a monthly newsletter, highlighting monthly specials and other events that are important to the company.
  • 17. MARKET NEEDS People want to look and feel good. Target markets are also interested in social issues  the environment and  community. Provide TC with a competitive edge  because not committed only to the needs of the community, but its concerns as well.
  • 18. COMPETITION Indirect competition  salons,  health clubs, and  spas Due to its service there is no direct competition.
  • 19. STRATEGY ANDIMPLEMENTATION
  • 20. PROMOTIONAL METHODSTC will became familiar to the Bangalore community ondifferent levels and by various methods.  Interacting and volunteering with local hospitals and survivor support groups  Community outreach to womens shelters  Special days at the salon and spa for women  Advertising in local Seattle magazines and newspapers  Initial corporate discounts  Mailings and newsletters
  • 21. COMPETITIVE EDGE“Offer a relaxing atmosphere that can refresh themind, body, and soul. Offering special classes for thosewith serious health concerns sets the health club apart, asdoes the availability of all services under one roof.”
  • 22. SALES STRATEGY with memberships  a monthly charge that provides discounts on services;  full price is charged to non-members for services  main goal is to foster relationships with clients and keep them through quality of service and products. second method of sales will be encouraged through repeat business and word-of-mouth advertising.
  • 23. SALES FORECAST900000800000700000600000 OTHER500000 SPA400000 EXERCISE/THERAPY SALON300000200000100000 0 1 2 3 4 5 6 7 8 9 10 11 12
  • 24. MANAGEMENT
  • 25. SUMMARY staffed according to department  The salon  three full-time stylists  The spa  two full-time beauty technician and  masseur.  The health department  three part-time instructors working on rotating shifts. Management will have four managers & four asst managers for each dept.  financials,  publicity,  human resources, and  ongoing development.
  • 26. FINANCIAL DATA
  • 27. START-UP REQUIREMENTSLegal 50000Stationery 10000Brochures 50000Insurance 10000Rent 90000ExpensedEquipments 175000Other 115000Total Start-up Expenses 500000START-UP ASSETSCash Required 10000000Start-up Inventory 100000Other Current Assets 1500000Long Term Assets 0Total Assets 11600000Total Requirements 12100000
  • 28. 200000 START-UP EXPENSES180000160000140000120000100000 80000 60000 40000 20000 0
  • 29. 12000000 START-UP ASSETS10000000 8000000 6000000 4000000 2000000 0 CASH START-UP OTHER LONG TERM REQUIRED INVENTORY CURRENT ASSETS ASSETS
  • 30. START-UP FUNDINGStart-up expenses to fund 500000Start-up assests to fund 11600000Total Funding Required 12100000ASSETSNon-cash assets from start-up 1600000Cash requirements from start-up 10000000Additional cash raised 0Cash balance on starting-date 10000000Total Assets 11600000LIABILITIES AND CAPITALLiabilitiesCurrent Borrowing 0Long Term Liabilities 0Accounts payable (outstnding Bills) 100000Other Current Liabilities (intrest-free) 0Total Liabilities 100000CapitalRequired InvestmentINVESTOR 1 4000000INVESTOR 2 4000000INVESTOR 3 4000000Additional investment required 0Total Required Investment 12000000Loss at start-up (start-up Expenses) -500000Total Capital 11500000Total Capital & Liabilities 11600000Total Funding 12100000
  • 31. REQUIRED FUNDING12100000120000001190000011800000117000001160000011500000114000001130000011200000 TOTAL TOTAL TOTAL CAPITAL CAPITAL & FUNDING LIABILITIES
  • 32. PRO FORMA PROFIT AND LOSS YEAR 1 YEAR 2 YEAR 3SALES 8413360 13992000 18930000Direct Cost of Sales 150000 248000 326000Total Cost of Sales 150000 248000 326000Gross Margin 8263360 13744000 18604000Gross Margin % 98.22% 98.23% 98.28%EXPENSESPayroll 6720000 7440000 8500000Sales and Marketing and Other Expenses 1970400 2140000 2240000Depreciation 0 0 0Leased Equipment 0 0 0Utilities 804000 900000 900000Insurance 240000 240000 240000Rent 1080000 1080000 1080000Payroll Taxes 1680000 1860000 2125000TOTAL OPERATING EXPENSES 12494400 13660000 15085000Profit Before Interest and Taxes -4231060 84000 3519000EBITDA -4231060 84000 3519000Interest Expense 0 0 0Taxes Incurred 0 21000 894420NET PROFIT -4231040 63000 2624580Net Profit/Sales -50.29% 0.45% 13.86%
  • 33. Gross Margin321 0 5000000 10000000 15000000 20000000
  • 34. NET PROFIT300000020000001000000 0-1000000 1 2 3-2000000-3000000-4000000-5000000
  • 35. 2000000018000000160000001400000012000000 GROSS MARGIN10000000 TOTAL OPERATING 8000000 EXPENSES 6000000 4000000 2000000 0 1 2 3
  • 36. PRO FORMA CASH FLOW YEAR 1 YEAR 2 YEAR 3CASH RECEIVEDCash from OperationsCash Sales 8413360 13992000 18930000Subtotal Cash from Operations 8413360 13992000 18930000Additional Cash ReceivedSales Tax, VAT, HST/GST Received 0 0 0New Current Borrowing 0 0 0New Other Liabilities (interest-free) 0 0 0New Long-term Liabilities 0 0 0Sales of Other Current Assets 0 0 0Sales of Long-term Assets 0 0 0New Investment Received 0 0 0Subtotal Cash Received 8413360 13992000 18930000EXPENDITURES YEAR 1 YEAR 2 YEAR 3Expenditures from OperationsCash Spending 6720000 7440000 8500000Bill Payments 5452700 6475340 7713140Subtotal Spent on Operations 12172700 13915340 16213140Additional Cash SpentSales Tax, VAT, HST/GST Paid Out 0 0 0Principal Repayment of Current Borrowing 0 0 0Other Liabilities Principal Repayment 0 0 0Long-term Liabilities Principal Repayment 0 0 0Purchase Other Current Assets 0 0 0Purchase Long-term Assets 0 0 0Dividends 0 0 0Subtotal Cash Spent 12172700 13915340 16213140NET CASH FLOW -3759360 76660 2716860Cash Balance 6240660 6317300 9034160
  • 37. 162131401800000016000000 1391534014000000 1217270012000000 903416010000000 6240660 631730080000006000000 271686040000002000000 76660 0 1 2 3-2000000-4000000 -3759360 SUBTOTAL CASH SPENT NET CASH FLOW CASH BALANCE
  • 38. PRO FORMA BALANCE SHEET YEAR 1 YEAR 2 YEAR 3ASSETSCurrent AssetsCash 6240660 6317300 9034160Inventory 30000 49600 65200Other Current Assets 1500000 1500000 1500000Total Current Assets 7770660 7866900 10599360Long-term AssetsLong-term Assets 0 0 0Accumulated Depreciation 0 0 0Total Long-term Assets 0 0 0Total Assets 7770660 7866900 10599360LIABILITIES AND CAPITAL YEAR 1 YEAR 2 YEAR 3Current LiabilitiesAccounts Payable 501700 534960 642820Current Borrowing 0 0 0Other Current Liabilities 0 0 0Subtotal Current Liabilities 501700 534960 642820Long-term Liabilities 0 0 0Total Liabilities 501700 534960 642820Paid-in Capital 12000000 12000000 12000000Retained Earnings -500000 -4731060 -4668060Earnings -4231060 63000 2624580Total Capital 7268960 7331960 9956540Total Liabilities and Capital 7770660 7866900 10599360Net Worth 7268960 7331960 9956540
  • 39. 1200000010000000 8000000 TOTAL LIABILITIES AND CAPITAL 6000000 NET WORTH 4000000 2000000 0 1 2 3
  • 40. SALES FORECAST YEAR 1 YEAR 2 YEAR 3UNIT SALESSALON 3275 6500 9000EXERCISE/THERAPY 14755 18000 22000SPA 2425 3500 4300OTHER 600 800 1000TOTAL UNIT SALES 21055 28800 36300UNIT PRICESSALON 1100 1140 1200EXERCISE/THERAPY 170 180 180SPA 900 900 900OTHER 200 240 300SALESSALON 3614500 7410000 10800000EXERCISE/THERAPY 2508360 3240000 3960000SPA 2182500 3150000 3870000OTHER 120000 192000 300000TOTAL SALES 8425360 13992000 18930000DIRECT UNIT COSTSALON 20 20 20EXERCISE/THERAPY 0 0 0SPA 20 20 20OTHER 60 60 60DIRECT COST OF SALESSALON 65500 130000 180000EXERCISE/THERAPY 0 0 0SPA 48500 70000 86000OTHER 36000 48000 60000SUBTOTAL DIRECT COST OF SALES 150000 248000 326000
  • 41. UNIT PRICES12001000 800 600 400 200 0 1 2 3 4
  • 42. TOTAL UNIT SALES3 363002 288001 21055
  • 43. SUBTOTAL DIRECT COST OF SALES35000030000025000020000015000010000050000 0 1 2 3
  • 44. TOTAL SALES200000001800000016000000140000001200000010000000 8000000 6000000 4000000 2000000 0 1 2 3
  • 45. PERSONNEL PLAN YEAR 1 YEAR 2 YEAR 3Management 4800000 5500000 6500000Salon 614400 620000 640000Spa 614400 620000 640000Health 691200 720000 720000Total People 17 17 17Total Payroll 6720000 7440000 8500000
  • 46. 900000080000007000000600000050000004000000300000020000001000000 0 MANAGEMENT SALON SPA HEALTH TOTAL PAYROLL
  • 47. BREAK EVEN ANALYSIS
  • 48. TOTAL OPERATING Gross EXPENSES Margin 12494400 8263360YEAR 1 13660000 13744000YEAR 2 15085000 18604000YEAR 3
  • 49. BREAK-EVEN ANALYSISMonthly Units Break-even 2,653Monthly Revenue Break-even 1060100ASSUMPTIONS:Average Per-Unit Revenue 399.6Average Per-Unit Variable Cost 7.2Estimated Monthly Fixed Cost 1041200
  • 50. BREAK EVEN ANALYSIS 20000000 18000000 16000000 14000000 12000000 10000000 8000000 6000000 4000000 2000000 0 YEAR 1 YEAR 2 YEAR 3TOTAL OPERATING 12494400 13660000 15085000 EXPENSESGROSS MARGIN 8263360 13744000 18604000
  • 51. MONTHLY ANALYSIS OF YEAR -01
  • 52. 900,000800,000700,000600,000500,000400,000300,000200,000100,000 0 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL UNIT SALES TOTAL SALES SUBTOTAL DIRECT COST OF SALES
  • 53. TOTAL OPERATING EXPENSES10800001060000104000010200001000000980000960000940000920000900000 1 2 3 4 5 6 7 8 9 10 11 12
  • 54. Total Cost of Sales16000140001200010000 8000 6000 4000 2000 0 1 2 3 4 5 6 7 8 9 10 11 12
  • 55. Net Profit/Sales 0.00% 1 2 3 4 5 6 7 8 9 10 11 12 -20.00% -40.00% -60.00% -80.00%-100.00%-120.00%
  • 56. NET CASH FLOW 0 1 2 3 4 5 6 7 8 9 10 11 12 -50000-100000-150000-200000-250000-300000-350000-400000-450000
  • 57. CASH BALANCE10000000 9000000 8000000 7000000 6000000 5000000 4000000 3000000 2000000 1000000 0 1 2 3 4 5 6 7 8 9 10 11 12
  • 58. Subtotal Spent on Operations12000001000000800000600000400000200000 0 1 2 3 4 5 6 7 8 9 10 11 12
  • 59. 12 74050011 72750010 792300 9 788100 8 801760 7 761000 6 722000 5 742000 4 707000 3 645000 2 539200 1 447000 0 200000 400000 600000 800000 1000000 SUBTOTAL CASH RECEIVED

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