BUSINESS PLAN***
Executive Summary
Vanitywood Day Spa is a fresh luxurious destination in Orange County, CA, offering a complete day spa experience that brings out everyone's inner celebrity.We offer 4 relaxing treatment rooms with the finest linens and equipment. We offer massage in a variety of styles - traditional Swedish Massage, Deep Tissue work, Hot Stone Massage, Reflexology, Pregnancy and others. We also offer the top famous facial and body treatments, like a 24 Karot Gold Facial using sheets of the highest grade of gold to lift and firm skin, reduce the appearance of fine lines and wrinkles and lighten skin to look its best, and the Vampire facelift, a non-surgical cosmetic procedure involving the reinjection of a gel-like substance—platelet rich fibrin matrix (PRFM)—derived from a patient’s own blood back into multiple areas of the skin of their face in an effort to treat wrinkles and “rejuvenate” the face.
This business plan has been developed to track progress prior to grand opening and following through with a five-year projection. In addition, this plan has been written to secure a small portion of the start-up funding necessary for Spa's successful kick-off.
Objectives
1. Achieve $30,000 in sales the third month after opening by performing 12 services per day. 2. Achieve $60,550 in sales the six month after opening by performing 27 services per day. 3. Have a local client return rate of 90% by the end of the first six months. 4. Become an established Spa destination by the end of the first 12 months. 5. Perform 51 services per day by the end of the first year.
Business Description
Vanitywood Day Spa is a new destination offering customers the combination of massage, body treatments, facials and anti-aging treatments. The settings are upscale, beautiful and serene. We cater to both men and women and offer the latest in skin care products and therapies. Star Plaza, where we plan to locate, has a daily traffic count of 40,000 cars. It is also only one block from a train stop, and has an upscale hair and nail salon which would complement our services nicely.
Start-up Summary
The following table outlines start-up expenses related to leasing, build-out and start-up expenses in opening Vanitywood Day Spa. The bulk of the start-up costs will be invested by the owner and the remainder will be funded through short-term financing.
Other Current Assets purchased at start-up are as follows: Massage table equipment - $2,795 (3 complete) Aesthetician Equipment - $2,800 (2 room setup) Decor and Furnishings - $13,000 Envision Software & Equipment - $4,000 Signage - $3,500 Backbar Supplies - $5,000
Management Summary
Vanitywood Day Spa is a Sole Proprietorship owned by myself. I function as developer and manager for Vanitywood Day Spa. I attended Metro Beauty Academy in Allentown, PA back in 2005. Since then I have kept up with current technology, educating myself on what people want, need, and want to see improve. I myself know what it's like to want to feel like a celebrity. So why not create a business where I get to fulfill my dream of wanting to feel like a celebrity while helping other people achieve there dream of feeling like the celebrity they know they are inside, and having them walk out feeling and looking like it on the outside.
Products and Services
Vanitywood Day Spa offers therapeutic massage services, body treatments, facials and anti-aging treatments. Services are provided by licensed therapists and aestheticians who are independently contracted and paid on a commission basis. The upside of the commissioned employee is that there is very little overhead without sales; employees only make money when the business makes money.
We also offer a full retail line that complements the services menu. Products included are high-end cosmetics, creams, candles, and other beauty products. These high-end items tend to retail at a minimum of $20-$25 per item and have 50% mark-up, or higher.
Market Analysis Summary
There are about 12,000 spas in the U.S. and Canada, according to ISPA, and seven out of ten are day spas. Today, Spa Industry revenues total $12 billion annually, with Day Spas accounting for over $7 billion of this figure and growing at 25% per year. There are several existing day spas and a number of individual LMTs (Licensed Massage Therapists) in Freeway County, but none with our service/product range within a five mile radius. To find a such a comprehensive day spa, residents currently have to travel into the city. The going rate for massage in Freeway County is $70-$90 per hour, which is slightly above most of the other residential areas in the metropolis, which can even be as low as $40 per hour in saturated or low-income areas. This larger metropolitan area spent $464 million on entertainment and recreation in 2004.
Competition and Buying Patterns
Customers choose spa services based on proximity to their daily commute, quality and an exceptional experience. With our combined services, we expect to dominate the Day Spa market. There is not one direct competitor of this nature within the area where we are intending to locate.
The closest competitor is the Pure Spa which is a Hair salon that offers additional, limited, spa services. The Hilton Hotel also offers massage treatments, but will mostly cater to visitors to the area and not the local residential base. Finally, Moon Spa, located in Plaza Center is not a traditional day spa but combines a day spa with a female gymnasium. No men are allowed at Moon Spa, either. The going rate for massage in Freeway County is $70-$90 per hour which is slightly above most of the other residential areas in Metropolis which can even be as low as $40 per hour in saturated or low-income areas.
Financial Plan
The premier element to our financial plan is initiating, maintaining, and improving the factors that create, stabilize and increase our cash flow. Because of the commission structure of our contractor payments, our variable costs will exceed fixed costs for all years of this plan, which should help stabilize the cash flow - we only pay commission when we make a sale. We will surpass the break-even point by month four, and end the first year with a net profit margin of almost 11%. By quickly repaying our loan while increasing sales, and managing costs, we will increase the net worth of the business substantially in the first year, and continue increasing it for the foreseeable future.
Risk Plan
Because we are paying our service-provider on commission, our variable costs will exceed our fixed costs. This keeps our overhead low, and means we paying ONLY for hours when they actually provide services. Keeping such a large pool of reliable massage therapists and aestheticians as we are recruiting will keep us from losing business with no-shows, especially since we will schedule our contractors, as much as possible, for full days or half-days, rather than individual appointments.
>CLICK HERE TO VIEW APPENDIX
Vanitywood Day Spa is a fresh luxurious destination in Orange County, CA, offering a complete day spa experience that brings out everyone's inner celebrity.We offer 4 relaxing treatment rooms with the finest linens and equipment. We offer massage in a variety of styles - traditional Swedish Massage, Deep Tissue work, Hot Stone Massage, Reflexology, Pregnancy and others. We also offer the top famous facial and body treatments, like a 24 Karot Gold Facial using sheets of the highest grade of gold to lift and firm skin, reduce the appearance of fine lines and wrinkles and lighten skin to look its best, and the Vampire facelift, a non-surgical cosmetic procedure involving the reinjection of a gel-like substance—platelet rich fibrin matrix (PRFM)—derived from a patient’s own blood back into multiple areas of the skin of their face in an effort to treat wrinkles and “rejuvenate” the face.
This business plan has been developed to track progress prior to grand opening and following through with a five-year projection. In addition, this plan has been written to secure a small portion of the start-up funding necessary for Spa's successful kick-off.
Objectives
1. Achieve $30,000 in sales the third month after opening by performing 12 services per day. 2. Achieve $60,550 in sales the six month after opening by performing 27 services per day. 3. Have a local client return rate of 90% by the end of the first six months. 4. Become an established Spa destination by the end of the first 12 months. 5. Perform 51 services per day by the end of the first year.
Business Description
Vanitywood Day Spa is a new destination offering customers the combination of massage, body treatments, facials and anti-aging treatments. The settings are upscale, beautiful and serene. We cater to both men and women and offer the latest in skin care products and therapies. Star Plaza, where we plan to locate, has a daily traffic count of 40,000 cars. It is also only one block from a train stop, and has an upscale hair and nail salon which would complement our services nicely.
Start-up Summary
The following table outlines start-up expenses related to leasing, build-out and start-up expenses in opening Vanitywood Day Spa. The bulk of the start-up costs will be invested by the owner and the remainder will be funded through short-term financing.
Other Current Assets purchased at start-up are as follows: Massage table equipment - $2,795 (3 complete) Aesthetician Equipment - $2,800 (2 room setup) Decor and Furnishings - $13,000 Envision Software & Equipment - $4,000 Signage - $3,500 Backbar Supplies - $5,000
Management Summary
Vanitywood Day Spa is a Sole Proprietorship owned by myself. I function as developer and manager for Vanitywood Day Spa. I attended Metro Beauty Academy in Allentown, PA back in 2005. Since then I have kept up with current technology, educating myself on what people want, need, and want to see improve. I myself know what it's like to want to feel like a celebrity. So why not create a business where I get to fulfill my dream of wanting to feel like a celebrity while helping other people achieve there dream of feeling like the celebrity they know they are inside, and having them walk out feeling and looking like it on the outside.
Products and Services
Vanitywood Day Spa offers therapeutic massage services, body treatments, facials and anti-aging treatments. Services are provided by licensed therapists and aestheticians who are independently contracted and paid on a commission basis. The upside of the commissioned employee is that there is very little overhead without sales; employees only make money when the business makes money.
We also offer a full retail line that complements the services menu. Products included are high-end cosmetics, creams, candles, and other beauty products. These high-end items tend to retail at a minimum of $20-$25 per item and have 50% mark-up, or higher.
Market Analysis Summary
There are about 12,000 spas in the U.S. and Canada, according to ISPA, and seven out of ten are day spas. Today, Spa Industry revenues total $12 billion annually, with Day Spas accounting for over $7 billion of this figure and growing at 25% per year. There are several existing day spas and a number of individual LMTs (Licensed Massage Therapists) in Freeway County, but none with our service/product range within a five mile radius. To find a such a comprehensive day spa, residents currently have to travel into the city. The going rate for massage in Freeway County is $70-$90 per hour, which is slightly above most of the other residential areas in the metropolis, which can even be as low as $40 per hour in saturated or low-income areas. This larger metropolitan area spent $464 million on entertainment and recreation in 2004.
Competition and Buying Patterns
Customers choose spa services based on proximity to their daily commute, quality and an exceptional experience. With our combined services, we expect to dominate the Day Spa market. There is not one direct competitor of this nature within the area where we are intending to locate.
The closest competitor is the Pure Spa which is a Hair salon that offers additional, limited, spa services. The Hilton Hotel also offers massage treatments, but will mostly cater to visitors to the area and not the local residential base. Finally, Moon Spa, located in Plaza Center is not a traditional day spa but combines a day spa with a female gymnasium. No men are allowed at Moon Spa, either. The going rate for massage in Freeway County is $70-$90 per hour which is slightly above most of the other residential areas in Metropolis which can even be as low as $40 per hour in saturated or low-income areas.
Financial Plan
The premier element to our financial plan is initiating, maintaining, and improving the factors that create, stabilize and increase our cash flow. Because of the commission structure of our contractor payments, our variable costs will exceed fixed costs for all years of this plan, which should help stabilize the cash flow - we only pay commission when we make a sale. We will surpass the break-even point by month four, and end the first year with a net profit margin of almost 11%. By quickly repaying our loan while increasing sales, and managing costs, we will increase the net worth of the business substantially in the first year, and continue increasing it for the foreseeable future.
Risk Plan
Because we are paying our service-provider on commission, our variable costs will exceed our fixed costs. This keeps our overhead low, and means we paying ONLY for hours when they actually provide services. Keeping such a large pool of reliable massage therapists and aestheticians as we are recruiting will keep us from losing business with no-shows, especially since we will schedule our contractors, as much as possible, for full days or half-days, rather than individual appointments.
>CLICK HERE TO VIEW APPENDIX
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