Essay Title - Business Plan for Spa Business Venture
Executive Summary
Spa business venture will shortly be opened up in Raffles place, Singapore, which is a central business district in the country. This spa will be a new upscale destination, which offers a complete day spa experience only to men. It will specially serve the beauty and health needs of men. The spa will have seven ultra-comfortable treatment rooms with the finest spa linens and equipments. It will provide the customers with a wide variety of products and services. It offers services like aromatherapy, hydrotherapy, Indian head massage, and deep clean facial for men as well as sport massage along with many other services and skincare products for men. The spa has a wide range of anti-aging products, but does not offer services for hair cutting, styling and coloring. Pedicure and manicure services will also be provided only when they are a part of full treatment.
The business plan is prepared with a view to track the progress of the spa business with a five year projection. The spa will be fully dedicated to provide customer satisfaction and a friendly, fair and creative work environment. It also aims at offering quality products and excellent service with an acceptable price/value relationship. The mission of the spa is to supply such services and products to the customers, which enhance their physical appearance and mental relaxation. The company has set achievable targets and decided to achieve them through additional loan financing. The loan will be collateralized by the assets of the company and will be paid from the cash flows from the business.
The company has performed successful R & D for the products and has a compete start up business plan for the spa. The management structure of the spa group will be systemically organized and the teams will be efficiently managed by the team leaders and other supervisors. All departments will co-ordinate and co-operate with each other. The company has also successfully analyzed the competitors’ strengths and weaknesses with that of its own. Overall, the spa group aims at a successful business plan, which will give full satisfaction to the customers and will attain high growth rate in a short period of time.
Introduction
Business plan refers to a schematic assertion of a set of business objectives, the reasons why they are considered achievable, and the plan for accomplishing those objectives. It may comprise of the selective information regarding the organization or the team seeking to accomplish those objectives. The business objectives being undertaken may be for profit or non profit. For gaining profits, the business plans mainly concentrate on the financial objectives of the organization, though non profit business plans also assist in maximizing profits (What Is a Business Plan 2008).
Business plans may also be directed towards the alterations in perception and branding by the consumers, taxpayers, or bigger residential areas. A business plan which has its elementary objectives as alterations in perception and branding is known as a marketing plan. Business plans may be concentrated internally or outwardly in the business environment. Business plans can be considered as the decision making tools. No fixed content is being decided for the business plan. The main content and formatting of the business plan are decided by the goals and objectives of the customers. A business plan should hold any selective information, which is required for determining whether or not to prosecute a particular goal or objective (What Is a Business Plan 2008).
A spa (health resort) is a place where people participate in activities that are specified to amend or keep their health. The products and services are directed towards the upkeep or amendment of a client’s physical or mental health. Actually, the meaning of the word spa is mineral waters known for the therapeutic powers. Nowadays in health resorts, water treatments are often dispensed ordinarily under the superintendence of a specifically trained spa physician as the component of spa plan. In North America, the term health spa is usually mentioned as the destination health resort where water may or may not represent a significant constituent in their treatment plan (What Is a Business Plan 2008).
All the spa places which are offering programs for health and fitness are mainly focused on the individual’s requirements. They are re-designed for providing the guests with a better feeling when they reach the health resort. The spa places provide various products and services for managing stress and getting renewal. The various offers comprise of a combination of fun, exercise, healthy and balanced diet, indulging relaxation, etc. A spa resort provides a comfortable environment to the customers, where they learn how to utilize the tools of life improvement and receive motivation for practicing the learning in the real world. In this paper, a detailed business plan for a project on spa business venture in Singapore is explained. The location selected is Raffles Place, the central business district area of Singapore. The name of the spa is Spa business Venture. The plan describes the target market, management structure, goals and objectives, products and services and the financial data and components of the business.
Spa business Venture is a company in Singapore at Raffle Place, totally devoted for the care of men. It provides different services, such as massage, treatment for face and body skin care, hydrotherapy and aromatherapy for men. The primary aim of the group at spa is to provide the services, which fulfill the needs of their customers in an effective manner. A team of experts at spa assists the people in gaining relax and minimizing the stress by providing them effective treatment and luxurious products. The assurance of Spa business Venture can be summarized by its brand name and motto, which says “Spa business Venture- Live to relax…and relax to live!”
Special thing that defines the nature of Spa business Venture is the line, which states “A spa for men”. More metropolitan professional men are taking grooming treatments once perceived as feminine in their intensity and feature (Bev & Leigh 2008). The treatments of different spas involve various aspects such as hair look throughout the day, more emphasized attention to the style of hairs and appearance of facial skin, nails & hands. Though spas provide hair treatments but this particular spa business venture does not provide any hair treatment as it is complicated and requires a hair specialist for it. Through the recognition of observable expansion in the men’s sector, man experience that spa is developed to meet the needs of men. As a male spa service provider, it will select the products, services and communications with due care, which are suitable for male characteristics.
Startup Cost Analysis
The financial plan is associated with the projection of twelve months profit & loss and projection of four-year profit & loss. The projection of four year loss is optional. Apart from this, financial plan also shows a projection of cash-flow, balance sheet, and in-depth break-even calculation. In all, it can be said that they comprise of the logical estimate of financial future of the company. The most important aspect in thinking across the financial plan is that it can improve the financial workings of the company (Courtis 1996).
Twelve-Month Profit and Loss Projection: Numerous business owners give priority to the Twelve-month profit and loss projections as the focus of their plan. Therefore, it becomes necessary to put every thing in numbers so as to have an idea of profit and achieve success. The main source of obtaining the sales projections is through the forecasted sales, expenses, cost of goods sold and profit received month-by-month basis for a period of one year. Narrative must accompany in Profit projection along with elucidating the main assumptions that are used to calculate income and expenses of the company (Courtis 1996).
Profit and Loss Projections for the First 12 Months (Business Plan 2008). |
80% Productivity Rate |
70% Productivity Rate |
50% Productivity Rate |
Gross Services |
1,155,481.60 |
74.07% |
1,011,046.40 |
74.07% |
722,176.00 |
74.07% |
Gross Retail |
404,418.56 |
25.93% |
353,866.24 |
25.93% |
252,761.60 |
25.93% |
Gross Revenue |
1,559,900.16 |
100.00% |
1,364,912.64 |
100.00% |
974,937.60 |
100.00% |
Cost of Sales |
||||||
Stylist Compensation |
618,182.66 |
39.63% |
540,909.82 |
39.63% |
386,364.16 |
39.63% |
Product COS |
202,209.28 |
12.96% |
176,933.12 |
12.96% |
126,380.80 |
12.96% |
Total Cost of Sales |
820,391.94 |
52.59% |
717,842.94 |
52.59% |
512,744.96 |
52.59% |
Gross Margin |
739,508.22 |
47.41% |
647,069.70 |
47.41% |
462,192.64 |
47.41% |
OPERATING EXPENSES |
||||||
Rent |
40,200.00 |
13.00% |
40,200.00 |
13.00% |
40,200.00 |
13.00% |
Supplies |
77,995.01 |
5.00% |
68,245.63 |
5.00% |
48,746.88 |
5.00% |
Advertising |
46,797.00 |
3.00% |
40,947.38 |
3.00% |
29,248.13 |
3.00% |
Depreciation |
46,797.00 |
3.00% |
40,947.38 |
3.00% |
29,248.13 |
3.00% |
Laundry |
15,599.00 |
1.00% |
13,649.13 |
1.00% |
9,749.38 |
1.00% |
Cleaning |
15,599.00 |
1.00% |
13,649.13 |
1.00% |
9,749.38 |
1.00% |
Light Power |
15,599.00 |
1.00% |
13,649.13 |
1.00% |
9,749.38 |
1.00% |
Repairs |
23,396.50 |
1.50% |
20,473.69 |
1.50% |
14,624.06 |
1.50% |
Insurance |
11,699.25 |
0.75% |
10,236.84 |
0.75% |
7,312.03 |
0.75% |
Telephone |
11,699.25 |
0.75% |
10,236.84 |
0.75% |
7,312.03 |
0.75% |
Misc. |
23,396.50 |
1.50% |
20,473.69 |
1.50% |
14,624.06 |
1.50% |
Legal & Accounting |
15,599.00 |
1.00% |
13,649.13 |
1.00% |
9,749.38 |
1.00% |
Total Operating Expenses |
344,380.53 |
32.50% |
306,357.97 |
32.50% |
230,312.83 |
32.50% |
Net Operating Income\(Loss) |
395,127.69 |
25.33% |
340,711.73 |
24.96% |
231,879.81 |
23.78% |
OTHER EXPENSES Interest Expense |
11,514.74 |
0.74% |
11,514.74 |
0.84% |
11,514.74 |
1.18% |
Net Income\(Loss) |
383,612.95 |
24.59% |
329,196.99 |
24.12% |
220,365.07 |
22.60% |
Four-Year of Profit Projection: The twelve-month projection acts as the core of the financial plan. ThisFour-Year of Profit Projection is for those who are looking to carry forward their forecast. Therefore, this projection is regarded as optional (Starr 2008).
Projected Cash Flow: If the projection of the profit forms the heart of business plan, cash flow forms the part of blood. The main cause of the failure of the Businesses is their inability to pay the bills. Each and Every part in the business plan plays a vital role. Hence, it should be given due consideration. The main point of this worksheet is to effectively plan how much money is required to start a business i.e. for expenses like operating, preliminary and reserves. All these activities enable to foresee the chance of the reducing expenses or possibly negotiating a loan. The cash-flow projection is also considered as the process of forward looking at checking account.
The items with heavy impact on cash flow, such as sales and inventory purchase should be tracked by tracking essential operating data that is not necessarily a part of cash flow. Before opening in a pre-startup column, cash outlays and startup expense plan should be researched. Cash flow shows whether the working capital is enough or not. More startup capital is required if projected cash balance goes negative. This planning anticipates the present and future need to borrow.
The major assumptions, which make cash flow differ from the Profit & Loss projection, should be estimated. For example, what is the duration for cash collection of sale, what is the payment schedule (advance, upon delivery, or much later) for buying the inventory, its affect on cash flow, amount payable in advance, what irregular expenses should be budgeted, etc. Usually, owner’s draw, equipment purchases and loan payments are not displayed on profit and loss statements, but they must be included because they take the cash out. Depreciation also does not appear in cash flow.
Opening Day Balance Sheet:All businesses require balance sheet for financial management and reporting. It is one of the basic financial reports. It shows the asset and liabilities held by the company. To get the owner’s equity, liabilities are subtracted from assets. To prepare an opening day balance sheet, startup expenses and capitalization spreadsheet may be used as a guide. At the end of the first year, some people want to add a projected balance sheet that shows the estimated financial position of the company. This is useful at the time of selling the proposal to investors (Start your own spa business 2008).
Break-Even Analysis: It predicts the sales volume at a given price that is needed to recover total costs. This is a level of sales volume that separates profit and loss. The formula for calculating break-even is as follows:
Breakeven Sales=Fixed Costs/Contribution
Contribution=Selling Price- Variable Costs
The Spa Company can analyze and learn from the experiences of other spas, such as The Grand Esthetics Spa, Sentosa Resort & Spa Hotel, The Asian Spa, Oriental Spa, Amrita Spa, Eucalyptus Spa, etc.
Data Collection Methodology
Case study research is the methodological analysis used for data collection. It can widen the experience or impart strength to what is already known through previous researches. Case studies stress on elaborated context analysis of a fixed number of issues or conditions and their relationships. Investigators have applied the case study research method for many years over a variety of fields and subjects. Scientists, particularly, have induced broad usage of this qualitative search method to analyze present-day actual-life situations and offer the base for the practical application of thoughts and elongation of methods. This paper explains how to use the case study method by successfully analyzing the case studies of Sentosa Resort and Spa Hotel and Grand Esthetics Spa to collect relevant and useful data for preparing business plan for the spa business venture (The Case Study as a Research Method 1997). The case study method consists of the following three steps:
- Determine and define the research questions: The spa group determines and discusses the questions to be included in the research. All the aspects that should be included in the business plan are covered in the research questions (About ESTHEVA, The Grand Esthetics Spa 2008).
- Select the cases and determine data gathering and analysis techniques: The spa group has selected the above mentioned spas, which are one of the popular and successful spas. It should study the case studies based on them regarding their market capitalization, start-up cost, target market, their products & services and financial components and data. The technique to analyze the data should be selected (The Sentosa Resort & Spa 2008).
- Prepare to collect the data: The Company will make the necessary preparations for the collection of the data after reading the case studies of the two spas. It has used the method of questionnaire to collect the required information.
- Collect data in the field: In this step data is practically collected and applied to use in the spa business venture. The case studies and available reports are studied and data is collected.
- Evaluate and analyze the data: After the collection of the data, it is evaluated and analyzed. The spa group has studied and assessed the conclusions derived from the case study by using a number of research questions.
- Prepare the report: In this step, a report is prepared on the successful analysis of the data. This will help the spa group to develop its business plan. It will assist in deciding the lay-out plan and the strategy to enter in the business. This report is a guide of how to develop the business and win over the customers.
Business Plan
Description of the Business
In Raffles Place, Spa business Venture can become a premier spa. In Singapore, if spa is established, it would be completely dedicated to the purpose of caring the men. The spa should operate as an entire-service day spa, which would be providing treatment for skin care, face massage, aromatherapy and hydrotherapy. The main aim of the spa group should be to help men in getting relaxed and reducing stress level through various treatments of spa and lifestyle products. The mission of the spa should be directed towards the development of relationship with the customer. This relationship can be developed by understanding and delivering to the needs of the customers. Apart from this, it can also be achieved by providing supreme individualized attention in a social environment (Uniquely Singapore 2008).
Spa business Venture would than become something more than just being a mere provider of products and services. Its vision should be establishing itself as a trustworthy destination, where men can regularly come to relieve their stresses associated with the life and revitalize their energies, souls and lives. Therefore, focus should be laid on the male customers as almost fifty percent of customers taking spa services are men (Intelligent Spas 2008). Hence, spa should plan its activities in such a way that it can successfully capitalize over the opportunity (Day Spa Business Plan 2008). The unique combination of services, location and customer-centric focus can provide the spa with unique competitive edge. Spa can also go for the implementation of the innovative training program that can assist the employees in providing an exceptional level of customer service. This customer centric approach would make the customer leave the spa with a great feeling of satisfaction. Apart from this, loyalty among the customers would also increase.
Spa business Venture stresses on different aspects, which are necessary for effective functioning of the company. These include quality, dependability and originality of the service. It will be distinguished from its rivals by providing a staff of experienced people who are not only specialized in their occupation, but also will be educated in realizing the dynamics of individual energy systems in order to enhance the link to their customers and effectively meet the demands of the customers. The spa will offer an exclusive atmosphere. It will differentiate itself as a reliable and comforting location where men can take pleasure through excessive indulgence and get away with the stress of their every day life activities (Professional Business Plans 2008). The spa group will construct a business that is based on community relationship. It will focus on fortifying the faith of customer base and offering not only the services but also the important information that will assist everyone in the procession of gaining a balanced and sound lifestyle. It will also work with local artists to offer their work to encourage the customers (Uniquely Singapore 2008). The following points are important to remember:
Marketing: It is the main strength and potential of the business which will help in attracting maximum number of customers (Kotler 2002).
Professionalism: It is very essential for any organization to be professional in its work and to maintain confidentiality of the organization. It is also very important to provide skin experts and aestheticians for the customers.
Individual Attention: Every client should be treated with personal care and attention and the employees should be given due preference to the customers’ choice.
Recommendations: Every business venture should always welcome suggestions from the customers and treat the customers in such a manner that they visit the place time and again.
Unique Treatments: The Company should have different and unique services and products to attract customers and differentiate themselves from the competitors. It should have the latest products and technologies for the customers. We have the latest techniques with the best products from around the world.
Perfect Location: Location should be appropriate and supportive for the business.
Definition of the market (Target market/area, market analysis, competitor analysis, industry analysis)
Market is a place to buy and sell things. It is a place where customers know and become aware of the product and finally make their decision to buy or not to buy the product or service. The spa business project is focused on the beauty needs of men, so its target group of customers is males in the age group of 30-55 years. The business venture has planned to focus on corporate men, health minded individuals and men athletes who play on minor leagues or non professional leagues. The spa group has done a demographic and psychographic segmentation of the market based on the age, gender, income and interest factors. Its main target is the middle aged men. For analyzing the market conditions, the group will also have to perform a successful competitor analysis i. e. identifying the strengths and weaknesses of the competitors and the comparing it with its own strengths and weaknesses. This will help the group to develop its market potential and overcome its shortcomings (Kotler 2002).
For the first one year, it is difficult for the spa group to give better and reduced prices to the customers. But, the spa group can compete with its competitors in quality, service and reliability, as these are the three main goals of the spa business venture. It also has the advantage of a popular location as compared to the other competitors. For sales and advertising, the company has a low budget as compared to its potential competitors. It has to work over this because it is very essential to attract customers to run a successful business (Spa Marketing: Information for spa professionals 2008). The disadvantages are obvious about the business venture as this is a start up business and the company has to develop its market strength i.e. why it is focusing more on the customers than on the price. The customer base for the spa industry has attained high growth rate in the recent years. As a part of the research, the spa group has tapped the number of customers it can possibly reach. In the coming years, the customer base for this industry will definitely increase, but the in the present scenario it should be more than enough to welcome another competitor in the market (Kotler 2002).
In the health and wellness industry, the spa industry segment is a leading player in the world. People can find structured and professionally delivered programs at several kinds of spa venues, in search for health and wellness experiences. There are various categories of spa services all over the world. Seven different spa facility types are defined by the International Spa Association that has technical capability for delivering health and wellness programming. They are defined as under:
CLUB SPA: It offers a variety of professionally administered spa services, a facility whose main aim is fitness.
CRUISE SHIP SPA: It is a spa in the cruise ship with all the fitness and wellness components, professionally administered spa services and spa cuisine menu choices.
DAY SPA: It is the most prolific category of spa. It provides day services to the clients with professionally administered spa services.
DESTINATION SPA: It offers physical fitness and educational programming along with on site accommodations. It exclusively serves spa cuisine. The main purpose of this spa is to provide customers with better life-style options and wellness enhancement through professionally administered spa services.
MEDICAL SPA: It is a spa whose main aim is to render medical and health care in an environment, which incorporates spa services, as well as schematic and harmonizing medical care and treatments. It is anticipated that this spa will substantiate solid increase in the following few years as more customers look for holistic medicative treatments and medical aid.
MINERAL SPRINGS SPA: This spa type focuses on health and wellness and offers typical European spa products. It provides an on-site natural, mineral, thermic or brine water, which is used for hydropathy treatments.
RESORT/HOTEL SPA: A spa within a resort or hotel providing professionally administered spa services, fitness and wellness components and spa cuisine menu choices. The majority has been and is being developed where the spa is a profitable amenity added to traditional resort vacation opportunities. Consumer tendencies show that spa facilities in a resort setting will become the decision making factor in a resort vacation rather than just a resort amenity.
Price Strategy
The price of the products and services will differ according to the beauty packages. The customers can be a regular member of the spa by paying $42.99 for one month. They will be given discounts according to the duration of their membership. Special discounts are also there for any other family members who want to join or become the member. Each member can have a maximum of three extra members and can enjoy great discounts. The spa will offer oxygen bar at the rate of $1.50 per min, which is fare according to the prevailing market price. For the massage parlor, the price differs according to the various kinds of massage treatments. Similar is the case with Ayurvedic segment, but the starting price is $ 50 which is suitable for the target group of customers (Kotler 2002).
Besides this individual one, we focus market on the business sector. We set three prices for the different size companies along with three different packages. The family members of an employee, who is the member of Fitness Avenue (this is the physical exercise session which is for the physically unfit customers, it is a special addition to the spa business venture, to attract customers) will get extra 5% discount when they join the membership. We believe we set all the prices with attractive discount rates to the community near by, which will help our business get a good reputation at beginning.
Promotion Strategy
The promotional plan for the spa business venture includes different kinds of media vehicles like newspapers, magazines, pamphlets and outdoor displays like billboards, vehicular display and electronic displays. They can seek the attention of a large number of people. It is necessary to incur expenses for promotion, because this is the main strategy to attract customers and induce them to spend money for using the spa services and products. Advertisements in the newspapers can be given with attractive messages and opening discounts (Kotler 2002).
Place strategy
The place selected for the spa is appropriate and suitable for fast growing businesses. It is near to the residential area and has an easy reach to the families and other individuals. The spa will also provide facilities of parking for the customers. The location is commercially beneficial for the spa business and it can easily grow and develop in this area.
Product and services
Spa business Venture will mainly put emphasis on providing the elementary and necessary services that will match with the objectives of the organization. Since the spa will get started very soon, it can only include the services such as skin care treatment, massage, waxing, sauna, hydrotherapy and Jacuzzi in its offering. With the increase in the number of male customers in the spa industry, Spa business Venture is constituted from the intention to provide quality spa services, which will assist the customers in gaining treatment according to their requirements. Also, the spa will provide special packages for the preferences of customers with the service treatments.
The spa treatments are especially designed keeping men in mind. Therefore, the services for men are equipped with the provisions for skin care and body therapy with the intention to conform to the requirements and conditions of the body. As an example, the facial treatment service is designed to make the skin clear, especially those areas affected by ingrown hairs, razor, burn and other skin issues, which are unique to men. The two varieties of gentleman’s services will be provided by the spa for the skin care treatments. Out of the two varieties, one is the “Deep Clean Facial for Men” for all types of skin. This facial treatment will result in the renewal of skin and properly balanced by the utilization of the products for removing the dead skin cells and making the pores of the skin clean.
“Indian Head Massage” is a new treatment, which is meant for head, face, neck and shoulders. This massage helps the visitors to overcome the mental stress and tension, cleansing and rebalancing the whole body (Skin Care Products & Brands 2008). The recommendation for this type of massage is after a day of work. The massage therapy is the other type of service that is being provided by us. This therapy has three types of massage and the guest can select any of them according to the preference and condition of their body. The first massage is one of the most popular variations of Swedish massage. In this, Aromatherapy is used that enhances the healing benefits of massage with handmade mix of aromatic essential oils. These oils are helpful to balance, calm and rejuvenate the body, mind and spirit (Menz Spa - Men's Faical Services 2008).
Second option is heated river stone massage. These stones are place strategically on specific point of the body to deeply warm the body while the muscles are consistently massaged, melted and released. This massage gives unimaginable reconnection and relaxation to the body. Sport massage is suggested for active men for relaxation after a heavy workout. The massage therapists create benefits for athletes by providing deep manipulation to treat tight muscle groups. Depilation is one another kind of service and this has become a part of life for men. A lot of men request this service during the summer for hygienic or practical reasons.
For this reason, spa also provides waxing services to its client. Unnecessary hair on large surfaces like arms, legs and back are detached in a short time period. With the help of wax, the uprooted hairs can be easily removed and this will result in to smooth and hairless skin. Apart from this, there are other amenities, which the spa will provide, such as the solarium space; sauna area and hydrotherapy massage section. All of these services are built to meet various demands of the male clients. The hours of operation for the services are:
Monday 9 am – 8 pm
Tuesday 10 am – 7 pm
Wednesdays 10 am – 7 pm
Thursday Closed
Fridays 10 am – 7 pm
Saturdays 10 am – 4 pm
Sunday 10 am – 4 pm
The time for Monday is extended to ease the customers for using the services of the spa.
Traditional spas are designed to treat both women and men in the similar environment. Spa will offer special services, which are exclusive to men and assist in making the menus more attractive to men. It will recognize both men’s increasing requirements for the services of spa as well as their reluctance to go into the saloon of women (MassageTherapy 2008). They are no longer satisfied to be in feminized spa atmosphere. Instead, they need a spa in which a man can be man.
After the realization that most of the men consider skin as an important aspect of their life and seek suitable beauty products, spa will respond by offering the services, which include products for the beauty and body, particularly for men. Therefore, concerning to the nature of spa it has selected products from the body shop. The spa will come with an innovative and inclusive category of skincare products to meet the needs of modern men, from cleansing products to shaving essentials. All of the services that spa provides will have their own products, e.g., for the facial treatments, spa uses a particular cream for different types of skin. Apart from this, if someone is looking for a massage, spa will use another product, which makes the body softer.
Management Structure
The management structure of the spa business venture should be well organized and planned in a systematic manner. There will be three business segments, massage parlor, oxygen bar and ayurvedic therapy. The spa venture also includes various working departments which are Accounting, Marketing, Customer services, Security, Facility, Technical Support and Human Resources. Proprietors will often work long hours to set up a good repute for the spa. There will be fifty eight other employees who will be employed at the opening of the spa, and as the business develops, owners will employ more people at the spa (Walczak 2005).
Each segment will have a fixed number of employees and a supervisor to look after the activities of each segment. Some trainers will also be appointed to give training to the new joining employees. There will be a hierarchal system of management in the organization. The teams of each segment will be divided according to the customer demand, work pressure and expertise of each individual. There should be co-ordination between all the departments and segments of the business. Harmonious relations between superiors and subordinates should be there (Angelo 2008).
The Management Team
A company should always have a good and efficient management team to support the planning and feasibility of the business. It is the strength of the business. The following positions will be included in a management team:
Chief Executive Officer, his work and responsibilities include development of overall strategy, marketing and strong and firm relationships with the shareholders. The person who will be appointed for this work and post should have a start up experience of a new venture in international markets. He should also have creativity in planning business activities. Another team member will be designated as the Vice-President for all the financial activities in the company (Spa Management 2008). He will be responsible for the R & D work of the organization. He should have an experience as a financial analyst or financial planner in the international market (Walczak 2005).
Another Vice- President will be for Legal Liaison and will be responsible for co-coordinating relations with the international patent lawyer and general legal advocate. He should have a business experience with good academic qualifications and a law degree. Except these three, the spa group also plans for other key personnel in the near future as addition to the management team. These other members should have a sales experience or the power to attract and convince customers (Walczak 2005). It will also have a team of board of directors who will take all the necessary decisions for the company. The company will also appoint persons for supporting professional services. The Management team will help the business to grow and develop. It will add to the efficient working of the spa business venture. For an organization, to achieve success, it is necessary to have a systematic work force and a proper organization structure (Organization and Management Structures 2008).
Objectives
Goals are the destinations where the business should reach and progress. Objectives are progress markers along the way to goal achievement (Day Spa Marketing 2008). For example, a goal might be to have a healthy, successful company that is a leader in customer service and has a loyal customer following. Objectives might be annual sales targets and some specific measures of customer satisfaction (Courtis 1996). The spa business venture will aim to achieve the following objectives:
- Sales increase to 70,000 by the end of the first year.
- Profit before tax by the end of the first year to be over 12,000.
- Have clientele return rate of 80% by the end of first year.
- Become established community destination by the end of the first year.
- The quality of the products should be highly maintained.
- The marketing plan/ promotion strategy should be very strong so as to attract maximum number of customers.
- The financial plans should be properly framed and should aim at a balanced expenditure.
In general, the spa business venture should focus on the following factors for achieving success and satisfying customers:
- Customer should be the first priority.
- The policies and plans of the business should be open and known to the customers as well as the employees.
- Proper and effective communication.
- Carrying out functional responsibility with care and attention.
- Always responding to the customers in a positive manner.
- The group should always strive to improve.
- Creativity and innovation in work and ideas.
Financial Data and Components
The spa group will analyze the financial condition and the capital investment capacity to start and grow the business. Financial analysis will be carried out in the similar way as already explained in the start-up cost analysis. Here, the spa group also needs to maintain the accounts receivable and accounts payable (Courtis 1996).
Managing Accounts Receivable: If the company gives credit, it should check at least monthly to track how much of its money is trussed in credit given to clients. Assets aging looks like the following table:
TotalCurrent30 Days60 Days90 DaysOver 90 Days
Managing Accounts Payable: The spa group should also age its accounts payable, i.e. what the company owes to its suppliers. This helps the company to maintain records of whom to pay the money and when to pay it (Industry Financial Information and Financial Ratios 2008). Paying late can cost the company worthful rebates and can damage its credit and paying too ahead of time eats up the company’s cash. But, if the company gets to know that it will be late in making requital, it should always call the creditor before the due date.
A payables aging looks like the following table.
Total Current30 Days60 Days90 DaysOver 90 Days
The spa group will also analyze the capital growth and financial condition of the competitors, which is necessary to enter the market and cover maximum number of customers. The spa business venture will introduce an effective financial strategy, which will bring profits to the company and will cover its production and maintenance cost. The company should timely maintain the balance sheet accounts, so that there are no mistakes in the financial accounting of business (Courtis 1996).
Conclusion
From the above discussion, it is concluded that the spa project has proved to be useful, and has led to effective utilization of knowledge and skills in developing the business plan for the business venture. This project involves the use of analyzation and assessment power to decide about the marketing strategies, price, promotion, products and services for the spa business. The spa business is focused on enhancing the beauty of the individuals, so it gives stress on ways to attract customers and give them maximum satisfaction (Developing your spa, 2008). This spa project is for men, so it introduces new and innovative beauty products for men which increase their facial beauty. This makes an individual aware of the various health and beauty products for men. This project aims at healthy living through stress release and relaxation of the mind and body.
Except the project developer, other people will also learn a lot from the spa business venture. Like the employees and the customers will also get to learn many new things. The employees will learn the techniques to market beauty products and the ways to win over a large number of customers. They will also learn how to deal personally with the customers and the tact to manage a large scale project. In addition, the customers, especially men will get knowledge about a new range of beauty products for the male gender. This will help in enhancing their beauty and will give them a new place to relax and relieve their stress (Lyon 2008).
References
About ESTHEVA, The Grand Esthetics Spa. 2008. [online]. [Accessed August 25, 2008]. Available from World Wide Web: <http://www.hotfrog.sg/Companies/ESTHEVA-The-Grand-Esthetics-Spa>
Angelo, J.M.D. 2008. Spa Business Strategies. [online]. [Accessed August 25, 2008]. Available from World Wide Web: <http://www.delmarlearning.com/samplechapters/dl_display_sampchap.aspx?isbn=1401881645&cid=2>
Bev, J.S. & Leigh, C. 2008. Spa Owner. [online]. [Accessed August 25, 2008]. Available from World Wide Web: <http://www.stylecareer.com/spa_owner.shtml>
Business Plan. 2008. [online]. [Accessed August 25, 2008]. Available from World Wide Web: <http://www.fundinguniverse.com/sample-business-plans/?plan=Hair%20Salon%20Business%20Plan >
Courtis, J.K. 1996. Annual Report Financial Ratio Component Consistency. Asian Review of Accounting, 4 (1), pp. 146 – 162. MCB UP Ltd. Bingley, UK.
Day Spa Business Plan. 2008.[online]. [Accessed August 25, 2008]. Available from World Wide Web: <http://www.bplans.com/sample_business_plans/Beauty_Salon_and_Day_Spa_Business_Plans/Day_Spa_Business_Plan/executive_summary_fc.cfm>
Day Spa Marketing. 2008. [online]. [Accessed August 25, 2008]. Available from World Wide Web: <http://www.dayspamarketing.com/>
Developing your spa. 2008. [online]. [Accessed August 25, 2008]. Available from World Wide Web: <http://www.mspa-international.com/business/develop.htm>
Industry Financial Information and Financial Ratios. 2008. [online]. [Accessed August 25, 2008]. Available from World Wide Web: <http://valuationresources.com/FinancialBenchmarking.htm >
Intelligent Spas. 2008. [online]. [Accessed August 25, 2008]. Available from World Wide Web: <http://www.intelligentspas.com/MediaReleases/Press%20Release_Spa_Consumer_Survey_Female_Male.asp
Kotler, P. 2002. Marketing Management (11th ed.). Prentice Hall Pvt. Ltd. Company, New York USA.
Lyon, L. 2008. Constructing your Spa's Business Plan. [online]. [Accessed August 25, 2008]. Available from World Wide Web: <http://www.4hoteliers.com/4hots_fshw.php?mwi=1854>
MassageTherapy. 2008. [online]. [Accessed August 25, 2008]. Available from World Wide Web: <http://www.massagetherapy.com/_content/images/Media/Factsheet1.pdf >
Menz Spa - Men's Faical Services. 2008. [online]. [Accessed August 25, 2008]. Available from World Wide Web: <http://my.88db.com/my/Services/Post_Detail.page/beauty/beauty_for_men/?PostID=57698 >
Organization and Management Structures. 2008. [online]. [Accessed August 25, 2008]. Available from World Wide Web: <http://www.thetimes100.co.uk/theory/theory--organisation-management-structures--313.php >
Professional Business Plans. 2008. [online]. [Accessed August 25, 2008]. Available from World Wide Web: <http://www.teneric.co.uk/day-spa-business-plan.html >
Skin Care Products & Brands. 2008. [online]. [Accessed August 25, 2008]. Available from World Wide Web: <http://www.strawberrynet.com/staticIndex/skincareIndex_1.html>
Spa Management. 2008. [online]. [Accessed August 25, 2008]. Available from World Wide Web: < http://www.teneric.co.uk/day-spa-business-plan.html >
Spa Marketing, Information for spa professionals. 2008. [online]. [Accessed August 25, 2008]. Available from World Wide Web: <http://spavelouspro.com/blog/ >
Starr, L.M. 2008. Spa Startup –The Real Business of Spa. [online]. [Accessed August 25, 2008]. Available from World Wide Web: <http://www.wynnebusiness.com/Presentations/SpaStartup101.pdf>
Start your own spa business. 2008. [online]. [Accessed August 25, 2008]. Available from World Wide Web: <http://www.fabjob.com/spaowner.asp >
The Case Study as a Research Method 1997. [online]. [Accessed August 21, 2008]. Available from World Wide Web: < http://www.gslis.utexas.edu/~ssoy/usesusers/l391d1b.htm>
The Sentosa Resort & Spa. 2008. [online]. [Accessed August 25, 2008]. Available from World Wide Web: <http://www.slh.com/singapore/singapore/hotel_sinbea.html>
Uniquely Singapore 2008. Day Spa [online]. [Accessed August 21, 2008]. Available from World Wide Web: <http://www.visitsingapore.com/publish/stbportal/en/home/what_to_do/spa/day_spa.html>
Walczak, S. (2005). Organizational knowledge management structure. The Learning Organization, 12 (4), pp. 330 – 339. Emerald Group Publishing Limited, Bingley, UK
What Is a Business Plan? 2008. [online]. [Accessed August 21, 2008]. Available from World Wide Web: <http://www.createbizplans.com/>
Appendices
(A). Products and services:
Heated River Stone Massage 16
Hydrotherapy 15
Indian Head Massage 16
Jacuzzi 15
Sauna 15
Skin care treatments 15
Waxing 15
(B). Marketing:
Place Strategy 15
Price Strategy 14
Promotion Strategy 14
Spa Industry Segments 12
Target Market 11
(C). Administration:
Management Team 18
Working Departments 18
(D). Finance:
Financial Data 20
Managing Accounts Payable 21
Managing Accounts Receivable 20
(E). Copyright/Trademark Documents
Copyright and Ownership
All of the content featured or displayed on the Website, including without limitation text, graphics, pictures, images, logos, digital downloads, moving images, sound, and illustrations (“Content”), is owned by Oregon Hot Spring Spas,, its licensors and/or its Content providers. All elements of the Website, including without limitation the general design and the Content, are protected by copyright, moral rights, trademark and other laws relating to intellectual property rights. The Website may be used only for the intended purpose for which such Website is being made available. Except as may be otherwise indicated in specific documents within the Website, you are authorized to view, play, print and download documents, audio and video found on our Website for personal, informational, and noncommercial purposes only. You may not modify any of the materials and you may not copy, distribute, transmit, display, perform, reproduce, publish, license, create derivative works from, transfer or sell any information or work contained on the Website. Except as authorized under the copyright laws, you are responsible for obtaining permission before reusing any copyrighted material that is available on the Website. For purposes of these Terms of Service, the use of any such material on any other website or networked computer environment is prohibited. You shall comply with all applicable domestic and international laws, statutes, ordinances and regulations regarding your use of the Website. The Website, its Content and all related rights shall remain the exclusive property of Oregon Hot Spring Spa, Inc. or its licensors unless otherwise expressly agreed. You will not remove any copyright, trademark or other proprietary notices from material found on these Website.
None of the materials may be copied, reproduced, distributed, republished, downloaded, displayed, posted or transmitted in any form or by any means for any commercial purposes or for the benefit of another merchant without the prior written permission of Oregon HotSpring Spas.
Corporate Identification & Trademarks
All trademarks, service marks and trade names of Oregon Hot Spring Spas, and its suppliers and licensors used herein (including without limitation: Oregon HotSpring Spas, OHSS, the OHSS corporate logo, and the associated designs and logos) (collectively "Marks") are trademarks or registered trademarks of Oregon Hot Spring Spas, or its affiliates, suppliers, or licensors. You may not use, copy, reproduce, republish, upload, post, transmit, distribute, or modify the Marks in any way, including in advertising or publicity pertaining to distribution of materials on this Website, without Oregon Hot Spring Spas, prior written consent. You may not use the Marks on any other website or networked computer environment, or use the Marks as a "hot" link on or to any other website unless such a link is approved in advance by OHSS.
Hot Spring, Aria, Vista, Sovereign, Vanguard, Grandee, Jetsetter, Envoy, Prodigy, Tiger River, Bengal, Caspian, Sumatran, Siberian, Solana, Hot Spot, Mall orca, Sorrento, Endurol, Jet Stream, Moto-Massage, Soothing Seven, Quartet Precision, Comfort Control, IQ2020, No-fault, Ever Fresh, Freshwater, Precision Jets, Jet Cluster, Silent Flo, Wave master, Barrier-Free, Freshwater, Bella Fontana, Wellspring, Smart Jet, SpAudio, Ever wood, Sure Wood, Splendors, Luminescence, Clarion, Amur are trademarks or registered trademarks of Watkins Manufacturing Corporation.
(F). Job Description
The job in a spa is to deal with the clients, provide them various treatments according to their choice and take care of their needs and requirements in the spa. Supervisors and specialists are also there for each treatment. For each segment, there are separate specialists who will look after the working of the employees and will guide them. The employees that are required to work in a spa should be service oriented and also physically fit and mentally strong. They should have some experience of working in a beauty salon or health spa.
(G). Resume
The resume should contain the necessary information about the candidate applying for a particular post, as it is the first requirement for a candidate to forward the resume to the concerned company. It should include the educational qualifications and other necessary information like salary expectation, previous work experience, etc.
(H). Organizational Chart
(I). Marketing Materials
Posters, pamphlets, billboards, advertisements, free gifts, free trials, free or extra quantity of products in fewer amounts.
(J). Research Studies
Range of products and services researched from world wide spas like Sentosa spa and Esthetics Spa.
(K). Operations Schedule
Mentioned above on page 18 & 19.
(L). Photographs of Products, Services, Facilities, etc.
Interior set up of Facilities at the Spa
Jacuzzi Bath Tub
Sauna Bath
