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Unique Spa

UniqueSpa

InstitutionName

CompanySummary:

UniqueSpa is a destination that offers customers numerous products andservices that are aimed at fulfilling the following requirementsanti-aging treatments, facial, body treatments and massage. Thedesign and setting of is serene, beautiful and upscale. caters to both women and men and the business offers thelatest skin care therapies and products. is located inCharleston, SC area and the area has high daily traffic. Moreover, anupscale nail and hair salon is nearby which would complement theproducts and services that offers.

UniqueSpa Services and Products

UniqueSpa offers anti-aging treatments, facials, body treatments andmassage services. Licensed aestheticians and therapists offerservices, who operate in contract terms and paid on commission termsthe benefit of this strategy is lack of overhead costs (Pinson,2008). In addition, to complement the services, offers afull retail line. Some of the products include beauty products,candles, creams and high-end cosmetics. The selling price is averagedat $22 inclusive of a mark up of 50% as a profit.

Marketand Forecasts for your Business

Forecasts

Themarket is potential because of numerous offerings that attractcustomers to the region. Some of the clients may come from visitorsto the region, working population, aging population, students andsports persons (Abrams &amp Abrams, 2003). The services will beoffered at conservatively rates of $65 per service in which 35% willbe the profit. It is estimated that eight services will be offeredper day in the first month and 50 services per day at the end of thefirst year. For outcall services, the charge will be $80, which alsogenerates 35% as profit. In addition, the mark-up prices of 50% onthe products will push up the profit. The following table shows salesforecast for the first five years of operations.

Sales Forecast

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Sales

Year 1($)

Year 2 ($)

Year 3 ($)

Year 4 ($)

Year 5 ($)

Massage Therapy

250,000

260,000

270,000

280,000

300,000

Anti-Aging and Facial Treatments

220,000

240,000

250,000

290,000

305,000

Outcall Services

15,000

160,000

170,000

190,000

210,000

Retail

40,000

50,000

73,000

96,000

104,000

Total Sales

525,000

710,000

763,000

856,000

919,000

Direct Cost of Sales

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Linens and cleaning

2,000

2,400

2,600

2,900

4,000

Lotions and Oils

10,000

13,500

16,000

17,000

21,000

Cost of Retail Products

20,000

25,000

36,500

48,000

52,000

Direct Cost of Sales

32,000

40,900

55,100

67,900

77,000

MarketSegmentation

UniqueSpa targets of SC area. The secondary market includes visitors andother persons staying in local hotel. The following are the targetedsegments:

  • Recovering clients/Massage Therapy – will collaborate with insurance agencies and other medical related facilities to take in injured or recovering patients (Abrams &amp Abrams, 2003). In addition, independent clients recovering from injuries who pays through their pocket are included

  • Facial/body Treatments and Pampering – those customers requiring relaxation services, availability of beauty and anti-aging market and local hotels that do not offer spa related services. This will be the targeted market to complement other services and products.

  • Alternative treatment clients – those clients requiring alternative treatment practices such as herbalist, chiropractor, acupuncture, naturopath, and those customers who uses massage as a preventative medical care (Abrams &amp Abrams, 2003).

  • Serious athletes – those clients requiring massages for improved performance and workout and injury recovery this is associated with numerous sporting activities within the area, which means more spa related services are required (Abrams &amp Abrams, 2003).

ManagementTeam

Effectivemanagement is an important requirement that ensures the entirebecomes viable. The owner of the business will be the manager. Thefollowing chart presents management team organization:

Position

Job Description

Business Owner: Manager and Marketer

  • Day to day management of the business

  • Allocate the activities and tasks to different employees

  • To assist in preparation of budgets and other financial strategies

  • To market and effect sales

Manager Retail

  • Manager the retail section

  • Keep records on sales and purchases

  • Engage consumers and champion customer care to encourage retention of customers

Manager Spa Section

  • Supervise and allocate duties to the contracted employees

  • Ensure the complains and suggestions from the customers are adhered to

  • Manage records and frequently update stocks and other operational resources

Accountant

  • Keep records on financial requirements

  • Timely transfer of commissions to contracted employees

  • Create and update appropriate budgets

  • Adhere to legislations and other standards as per accounting requirements

Contract Employees

  • Provide services as requested by the customers and managers

  • Ensure quality services are provided

FinancialAnalysis

Financialanalysis is important for because it offers an array offinancial requirements and distribution of available finance (Abrams&amp Abrams, 2003). The following table presents an overview offinancial allocations.

Start-up, Build-out and Leasing Expenses

Asset

Cost ($)

Massage Table

3,000

Aesthetician Equipment

2,100

Furnishings ad Décor

8,000

Software and Equipment

3,000

Signage

1,500

Back-bar Supplies

4,000

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21,600

Start-upRequirements Table

Start-up Requirements

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Expenses

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Description

Cost ($)

Legal requirements

1700

Opening coupons, bags, stationery and printing

2000

Brochures

400

Design/Construction

20000

Rent

15000

Insurance e.g. for personnel, building and equipments

2000

Marketing

3000

Linens e.g. towels and other clothing

3500

Accountant

500

Miscellaneous

750

Start-up Expenses

48850

Start-up Assets

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Cash

20000

Inventory

5000

Current Assets

21600

Total Assets

46600

Total Requirements

95450

Start-upFunding

Start-up Funding

Cost ($)

Start-up Expenses

48850

Star-up Assets

46600

Total Funding Required

95450

Assets

Non-cash Assets

15000

Cash-Requirements

20000

Additional Cash Raised

6000

Opening Cash Balance

19000

Total Assets

60000

Liabilities and Capital

Liabilities

Current Borrowing

20000

Total Liabilities

20000

Capital

Owner Investment

93000

Total Planned Capital

93000

Loss (Start-up Expenses)

48850

Total Capital

44150

Total Assets and Liabilities

60000

Total Funding

104150

References

Abrams,R., &amp Abrams, R. (2003). Thesuccessful business plan: Secrets &amp strategies.London: Eugene Kleiner

Pinson,L. (2008). Anatomyof a business plan: The step-by-step guide to building your businessand securing your company`s future.New York: AKA Associates