The document outlines a business plan for Zen House, a spa facility located in Parsippany, New Jersey that will offer Japanese-style hot spring baths (onsen), saunas, and other relaxation services. It will target stressed adults aged 20-64 in the affluent Morris County area. The plan details Zen House's operations, including daily passes, hourly rates, and private rooms, as well as its marketing strategy, management team, and 5-year financial projections, which estimate it will reach profitability in year 3 and be valued at $794,516 by year 5.

1. Zen House Company
Business Plan
Keller Graduate School of Management- MGMT600 Business Planning Seminar
Brenda Hall, David Sweatte, Priscilla Caracter, Richard Stubbs Jr, Syed Naseem

2. Table of Contents
Executive Summary ............................................................................................................................5
1. Industry Analysis.................................................................................Error! Bookmark not defined.
1.1. Industry Review............................................................................Error! Bookmark not defined.
1.2. Growth Factors ............................................................................Error! Bookmark not defined.
1.2.1. Future Prospects....................................................................Error! Bookmark not defined.
1.2.2. Sales in Industry.....................................................................Error! Bookmark not defined.
1.3. Regulations Review & Legal Concerns............................................Error! Bookmark not defined.
1.3.1 Federal Regulations.................................................................Error! Bookmark not defined.
1.3.2. State Regulations...................................................................Error! Bookmark not defined.
1.3.3. Other Regulations..................................................................Error! Bookmark not defined.
1.4. Competitive Analysis ....................................................................Error! Bookmark not defined.
1.5. SWOT Analysis .............................................................................Error! Bookmark not defined.
1.5.1. Strengths...............................................................................Error! Bookmark not defined.
1.5.2. Opportunities ........................................................................Error! Bookmark not defined.
1.5.3. Weaknesses...........................................................................Error! Bookmark not defined.
1.5.4. Threats..................................................................................Error! Bookmark not defined.
2. Marketing Plan ...................................................................................Error! Bookmark not defined.
2.1. Product Concept...........................................................................Error! Bookmark not defined.
2.2. Target Market and Segmentation..................................................Error! Bookmark not defined.
3. Operations Plan..................................................................................Error! Bookmark not defined.
3.1. Hours of Operation.......................................................................Error! Bookmark not defined.
3.2. Zen House Client Experience.........................................................Error! Bookmark not defined.
3.3. Service Line One – Hot & Cold Onsen Daily Passes..........................Error! Bookmark not defined.
3.3.1. Hot & Cold Onsen...................................................................Error! Bookmark not defined.
3.3.2. Sauna....................................................................................Error! Bookmark not defined.
3.3.3. Herbal Tea.............................................................................Error! Bookmark not defined.
3.4. Service Line 2: Hourly Passes.........................................................Error! Bookmark not defined.
3.4.1. Hot & Cold Onsen...................................................................Error! Bookmark not defined.
3.4.2. Sauna....................................................................................Error! Bookmark not defined.
3.4.3. Herbal Tea.............................................................................Error! Bookmark not defined.
3.5. Service Line 3: Private Onsen ........................................................Error! Bookmark not defined.
3.5.1. Private Onsen Room...............................................................Error! Bookmark not defined.
3.5.2. Private Sauna.........................................................................Error! Bookmark not defined.

3. 3.5.3. Masseuse ..............................................................................Error! Bookmark not defined.
3.5.4. Concierge Service...................................................................Error! Bookmark not defined.
3.6. Human Resources.........................................................................Error! Bookmark not defined.
3.6.1. Staffing Schedule ...................................................................Error! Bookmark not defined.
3.6.2. Recruitment...........................................................................Error! Bookmark not defined.
3.6.3. Roles & Responsibilities..........................................................Error! Bookmark not defined.
3.6.4. Compensation........................................................................Error! Bookmark not defined.
3.6.5. Zen House Benefits ................................................................Error! Bookmark not defined.
3.7. Facility and Equipment .................................................................Error! Bookmark not defined.
3.7.1. Facility...................................................................................Error! Bookmark not defined.
3.7.2. Equipment & Capital Expenses................................................Error! Bookmark not defined.
3.8. Technology Plan...........................................................................Error! Bookmark not defined.
3.8.1. Company Website..................................................................Error! Bookmark not defined.
3.8.2. PayPal ...................................................................................Error! Bookmark not defined.
3.8.3. POS System............................................................................Error! Bookmark not defined.
3.8.4. Social Media..........................................................................Error! Bookmark not defined.
3.9. Management Team ......................................................................Error! Bookmark not defined.
3.9.1. General Manager...................................................................Error! Bookmark not defined.
3.9.2. Director of Marketing.............................................................Error! Bookmark not defined.
3.9.3. Director of Compliance...........................................................Error! Bookmark not defined.
3.9.4. Director of Finance.................................................................Error! Bookmark not defined.
3.9.5. Director of Human Resources .................................................Error! Bookmark not defined.
3.10. Management Team Gaps............................................................Error! Bookmark not defined.
4. Financial Plan......................................................................................Error! Bookmark not defined.
4.1. Start-up funding...........................................................................Error! Bookmark not defined.
4.2. Use of funds.................................................................................Error! Bookmark not defined.
4.2.1. Capital Expenditures...............................................................Error! Bookmark not defined.
4.2.3. Other Expenses......................................................................Error! Bookmark not defined.
4.2.4. Marketing Expenses...............................................................Error! Bookmark not defined.
4.3. Sales forecast...............................................................................Error! Bookmark not defined.
4.4. Daily Passes..................................................................................Error! Bookmark not defined.
4.5. Hourly Passes...............................................................................Error! Bookmark not defined.
4.6. Private Rooms..............................................................................Error! Bookmark not defined.
4.7. Cash flow.....................................................................................Error! Bookmark not defined.

4. 4.8. Balance Sheet..............................................................................Error! Bookmark not defined.
4.9. Income Statement........................................................................Error! Bookmark not defined.
4.10. Break-even analysis....................................................................Error! Bookmark not defined.
4.11. Five Year Valuation.....................................................................Error! Bookmark not defined.
4.12. Exit Strategy...............................................................................Error! Bookmark not defined.
5. References .........................................................................................Error! Bookmark not defined.
6. Appendix A – Figures & Tables Content................................................Error! Bookmark not defined.
6.1. Figures.........................................................................................Error! Bookmark not defined.
6.2 Tables...........................................................................................Error! Bookmark not defined.
7. Appendix B – Marketing Plan...............................................................Error! Bookmark not defined.
7.1. Pop by Age, Census 2010 ..............................................................Error! Bookmark not defined.
7.2. New Business Survey....................................................................Error! Bookmark not defined.
7.2. Survey Results..............................................................................Error! Bookmark not defined.
7.3. Branding Logo..............................................................................Error! Bookmark not defined.
7.4. Zen House Annual Marketing Costs ...............................................Error! Bookmark not defined.
8. Appendix C – Operations.....................................................................Error! Bookmark not defined.
8.1. Business Organizational Chart.......................................................Error! Bookmark not defined.
9. Appendix D – Finance..........................................................................Error! Bookmark not defined.
9.1. Product Line 1 Daily Passes ...........................................................Error! Bookmark not defined.
9.2. Product Line 2 Hourly Passes.........................................................Error! Bookmark not defined.
9.3. Product Line 3 Private Rooms........................................................Error! Bookmark not defined.
9.4. Five Year Projected Balance Sheets................................................Error! Bookmark not defined.

5. Executive Summary
With stress being at a high level in the New Jersey, the Zen Masters have created “Zen
House” to relieve stress levels and to provide a relaxing and stress-free environment.
Parsippany, New Jersey will serve as the location for this endeavor. Morris County is one of
the most affluent counties in the State of New Jersey and it also is home many corporations.
Zen House could be classified as a spa but it is more than that. The main attraction of Zen
House is the Japanese-style Onsen, similar to hot spring resorts that are in Japan.
An Onsen is a Japanese term meaning hot spring. In Japan these are used as bathing
facilities and as places to meditate and relieve stress. Zen house is a facility that will provide
the same type of environment. With the combination of therapeutic communal pools or
private hot tub/sauna rooms within the facility, Zen House will be able to provide a
temporary escape from the stresses of every-day life. Because of the stress levels in the area,
the health and wellness industry expects to see a steady 4.3% growth through 2019.
The mission statement of Zen House is to provide an environment that is both stress-
free and therapeutic. Our catch phrase is “Zen House, slow down to the speed of life” and this
statement is very powerful as most residents in this area should be able to relate to it. In
northern New Jersey, many of the residents are constantly on the move, many of which have
daily commutes to New York City and they are literally moving at the speed of light. Zen
House is a place to slow down and enjoy life and little as it provides an atmosphere that will
allow for the customers to slow down and “smell the roses” of life. The target audience for
use in this facility is adults between the ages of 20 – 64.
Zen House will offer its clients daily passes, which will allow them access for an
entire day within the confines of the facility in all of the public areas. There will also be an
hourly rate for this service that will allow for shorter visits if requested. Private rooms will be

6. available to parties of up to 6 people that will also include private saunas and in the future a
masseuse will also be available. Along with the services that are listed above, Zen House will
also have a child care facility, “Mini Zen”. Mini Zen will allow for children to participate in
many activities such as video games, arts and crafts and other games for children. This
service is included with admission to the facility. Other day spas located near this area do not
offer this service; give us a competitive advantage in this area.
Research has shown that our location is in the heart of one of New Jersey’s most
prosperous counties, with a median income of just under $100,000 per year. The county
consists of corporations such as Dun & Bradstreet, New Jersey Manufacturers, CVS
Corporation and others that can also provide clientele that are looking for a stress free
environment to relax. From a survey that we have conducted, we were able to determine our
customer base, project the amount of revenue, and also value the company.
Projections show that within 5 years the company will have close to $794,516 in
overall value. Our breakeven point for this endeavor will happen during year number three as
we reach nearly 7493 units of sales. Our average growth in revenue is projected to be at an
8% increase and projected sales revenue by the end of year five is expected to be $2.2M.
Overall, Zen House stands to be a feasible investment that also gives the owners satisfaction
that the clients will obtain satisfaction with every visit.