Skin Sensations Clinic Inc.

C11 Business Plan

November 2019

Skin Sensations Clinic Inc. Ms. Masoumeh Mashreghi Mohammadi

2960 W 4th Ave, Vancouver, BC V6K 1R4, Executive Director

Canada
dr.mahreghy@gmail.com
 Skin Sensations Clinic Inc.

Contents
1 EXECUTIVE SUMMARY .................................................................................................................................. 3
2 BUSINESS DESCRIPTION ................................................................................................................................ 4
LOCATION ...........................................................................................................................................................5
SERVICES ............................................................................................................................................................6
3 INDUSTRY AND MARKET ANALYSIS .............................................................................................................. 9
PERSONAL CARE SERVICES (NAICS 8121) ................................................................................................................9
MARKET ANALYSIS .............................................................................................................................................11
3.2.1 Global Spa Market ...............................................................................................................................12
3.2.2 Competition .........................................................................................................................................16
4 MARKETING STRATEGIES ............................................................................................................................ 19
WEBSITE AND DIGITAL MARKETING .......................................................................................................................19
SOCIAL MEDIA ...................................................................................................................................................20
WORD-OF-MOUTH ............................................................................................................................................21
5 KEY MANAGEMENT AND PERSONNEL PLAN ............................................................................................... 22
EXECUTIVE DIRECTOR: MS. MASOUMEH MASHREGHI MOHAMMADI (NOC 0014) ........................................................22
ESTHETICIAN (NOC 6562) ..................................................................................................................................23
LASER TECHNICIAN (NOC 6562) ..........................................................................................................................24
MASSAGE THERAPISTS (NOC 3236) .....................................................................................................................24
PERSONNEL PLAN AND EXPENSES ..........................................................................................................................24
ORGANIZATION CHART (YEAR 5) ...........................................................................................................................25
6 FINANCIALS ................................................................................................................................................ 25
INITIAL INVESTMENT ...........................................................................................................................................25
ASSUMPTIONS ...................................................................................................................................................26
BREAK-EVEN ANALYSIS ........................................................................................................................................27
SALES FORECAST ................................................................................................................................................28
PROFIT AND LOSS ...............................................................................................................................................29
CASH FLOW ......................................................................................................................................................29
BALANCE SHEET .................................................................................................................................................30
7 ECONOMIC BENEFIT TO CANADA ................................................................................................................ 30

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1 Executive Summary
Skin Sensations Clinic Inc. (hereafter also referred to as the Company) will operate a beauty and
wellness salon in Vancouver, British Colombia. The salon will offer facial treatments, massages,
oxygen treatments, laser resurfacing procedures, laser rejuvenation, and waxing treatments for
both men and women.

The Company’s target customers will be high-income locals. Skin Sensations Clinic Inc. will ensure
customers’ satisfaction by offering attentive and personalised services as well as keeping its
service offering up-to-date with the industry trends. Use of the latest technology will ensure the
effectiveness of treatments such as laser resurfacing, facials, and oxygen treatments. By using
various marketing campaigns to raise brand awareness in Vancouver, the Company expects to
see an increase in revenues over the years.

Skin Sensations Clinic Inc. will be located at or around West 4th Avenue, Vancouver, BC V6K 1R4.

Ms. Masoumeh Mashreghi Mohammadi (hereafter also referred to as Ms. Mashreghi) is a general
surgeon who worked in hospitals in Tehran, Iran. Ms. Mashreghi has also owned and successfully
managed a private practice since 2006. These experiences have helped her to develop
organizational and managerial skills. Ms. Mashreghi will be the sole owner of Skin Sensations
Clinic Inc., and she will serve as Executive Director of the Company.

In addition to Ms. Mashreghi, Skin Sensations Clinic Inc. will hire one Laser Technician, one
Esthetician, and one Massage Therapist. The Company’s payroll expenses will start at $159,916
in Year 1, increasing to $229,100 in Year 5. The Company will also use services of an Accountant
on a contractual basis.

Skin Sensations Clinic Inc.’s net sales are forecast to increase from $400,895 in Year 1 to $578,408
in Year 5.

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2 Business Description
Skin Sensations Clinic Inc. will operate as a wellness and beauty salon. The Company will offer
massages in a variety of styles, such as Swedish massage, Chinese massage, hot stone massage,
and aromatherapy massage. The Company will also offer facial and body treatments, such as
waxing services, oxygen treatments, and laser resurfacing and rejuvenation procedures.

Skin Sensations Clinic Inc. will use the latest in anti-aging products and techniques and carefully
selected oils, lotions, and aromatherapies. The Company will also use the following equipment:

 Mini Oxy Skin and Hair is a mini portable normobaric oxygen system used for beauty
treatments such as oxygen facials and body, hair, and scalp treatments. Mini Oxy Skin and
Hair comprises an oxygen concentrator that develops up to five litres of oxygen per
minute and delivers 85% pure oxygen, and an Oxy Gun spray nozzle that enables
estheticians to nebulize on the skin oxygen together with specific natural cosmetics. Due
to being compact and portable, while providing effective treatments, this oxygen system
has gained popularity among both clients and estheticians.
 IPL/YAG Laser equipment is intended for laser treatments, including IPL (intense pulsed
light) laser, which is widely used for photo rejuvenation treatments as well as to safely,
gently, and quickly remove hair, and YAG (yttrium aluminium garnet) laser, which is often
used for removing hair, removing tattoos, and treating hyperpigmentation. YAG
treatments include applying carbon lotion to the skin in order to penetrate the hair
follicles, which than absorb laser wavelengths. Both lasers have gained a widespread use
due to their subtlety, outstanding results, and little to no side effects. IPL/YAG laser is
approved by Health Canada.

In addition to providing up-to-date equipment and high-quality treatments, the Company will be
dedicated to creating a convenient and comfortable ambient and use special lightning, textiles,
décor, and music to maximize customer satisfaction. Clients will have the opportunity to schedule
appointments via telephone, email, or through the official website. The Company’s employees
will interact with clients, attentively listening to all requirements. Skin Sensations Clinic Inc. will
hire experienced professionals who understand the importance of customer service and
efficiency. The Company’s staff will provide the clients with all necessary information regarding
the facial and body treatments. Clients will be advised how to prepare for the treatment, and

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once the treatment is done clients will be instructed on post-treatment care. Highly
knowledgeable employees at Skin Sensations Clinic Inc. will explain the process of the treatment
and the effects of the treatment on the skin.

Skin Sensations Clinic Inc.’s primary target clients are residents of Vancouver as well as high-
income individuals interested in getting professional facial and body treatments. These clients
are very important for the Company as they have the potential to becoming regular clients. The
Company’s treatments will be intended for both men and women. The Company will also benefit
from its anticipated location. Vancouver is one of the most visited Canada’s cities, with more than
230 cruise ship calls annually, 12,000 hotel rooms in the downtown area, and more than 23,000
rooms in Metro Vancouver.1

Skin Sensations Clinic Inc. will build partnerships with hotels and tourism organizations in order
to attract some of the numerous city visitors.

The Company will maintain a website and social media presence. Skin Sensations Clinic Inc. will
also use word-of-mouth marketing. By having a well-defined marketing strategy, the salon will
reach a large number of potential customers.

Location

Skin Sensations Clinic Inc. will be located in Vancouver, British Columbia. The Company is
currently going through negotiations for an office and salon space around West 4th Avenue. As
one of the major streets in Kitsilano, West 4th Avenue is known as a prime destination for
shopping, dining, and personal services. The area is home to award-winning restaurants, unique
fashion stores and outdoor retailers, shops for home décor, and luxurious day spas and salons,
as well as festivals, shopping nights, and category sales events. As a highly frequented

1
Source: https://www.tourismvancouver.com/media/corporate-communications/vancouvers-tourism-industry-
fast-facts/

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neighborhood that has been voted as “Vancouver’s Best Neighbourhood,” “Neighbourhood That
Best Represents Vancouver,” and “Best Shopping Neighbourhood,”2 4th Avenue is a suitable place
for establishing a service business.

The Company will equip its premises with an accessible washroom, ample storage, two private
treatment rooms, and a large reception area. This location is highly visible to pedestrian and
vehicular traffic and features a number of street parking lots and spaces, making the street
convenient for both businesses and their customers.

Services

The Company will offer a wide variety of wellness and spa services for both men and women,
including the following:

 Facial treatments of different durations. Additionally, the Company will offer oxygen add-
on facial treatments that are designed to nourish the skin and stimulate new collagen
growth, with results varying from pore cleansing to lightened hyperpigmentation.
 Facial treatments and facial and massage packages. These packages will include a 60-
minute facial treatment combined with 60-minute massage, including Swedish massage
or deep tissue massage.

2
Source: http://www.shopwest4th.com/about/

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 Massages, including Swedish, Chinese, Ayurveda or aromatherapy, and hot stone

massage, offered in different durations
 Oxygen treatments, one of the recent industry trends that tackles stressed-out and
wrinkled skin and helps alleviate damage to the skin done by free radicals, sun, and the
environmental pollution. The Company will offer oxygen treatment for hair
regenerations, breast firming, and cellulite reducing.
 Laser treatments, including resurfacing, rejuvenation, and hair removal treatments for
whole body.
 Waxing services for both face and body
Services Duration Price
Facial Treatments
60 minute facial 60 min $119
75 minute facial (multiple masks) 75 min $129
Oxygen Facial add-on 20 min $50
Facial and Massage Packages:
60’ Facial and 60’ Swedish massage 120 min $230
60’ Facial and 60’ Deep Tissue/Sports Massage 120 min $240
Massages
Swedish Massage 45 min $99
60 min $129
90 min $179
120 min $219
Chinese Massage 45 min $109
60 min $129
90 min $189
120 min $239
Ayurveda / Aromatherapy Massage 60 min $129
90 min $189
120 min $239
Hot Stone Massage 75 min $159
90 min $189
120 min $239
Oxygen Treatments
Oxygen Regenerative Hair Spa 40 min $129
Oxygen Breast firming 40 min $139
Oxygen Breast firming 15 min $70
Oxygen Cellulite 45 min $149
Laser Treatments-Resurfacing
Full Face From $1500
Neck From $1500
Décolletage From $1200
Small Area (Eyes / Top Lip) From $700
Laser Rejuvenation
Small Area (Eyes Area, Top Lip, Scar) From $250
Chest From $300

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Neck From $350
Full Face From $450
Waxing
Eye brow $25
Upper lip $20
Chin $15
Back and shoulder $69
Half back $45
Full back $55
Under arm $30
Chest $55
Bikini $45
French bikini $50
Brazilian $59
Full leg $69
Upper leg $45
Lower leg $39
Full leg and bikini $89
IPL Laser Hair Removal for women (6 treatments)
Two areas on the face $465
Full face and neck $1,050
Bikini line and underarms $585
Bikini line and naval line $585
Extended bikini and underarms $750
Extended bikini and buttocks $810
Extended bikini, underarms, and buttocks $1,110
Extended bikini and naval line $750
Full bikini and underarms $990
Full bikini and buttocks $1,050
Full bikini, underarms, and buttocks $1,335
Full bikini and naval line $990
Lower legs, bikini line, or underarms $1,050
Lower legs, bikini line, and underarms $1,335
Lower legs, extended bikini, and underarms $1,515
Lower legs, full bikini, and underarms $1,755
Full legs, bikini line, or underarms $1,335
Full legs, bikini line, and underarms $1,635
Full legs, extended bikini, and underarms $1,800
Full legs, full bikini, and underarms $2,040
IPL Laser Hair Removal for men (6 treatments)
Full Back, Back of Neck and Upper Arms $2,040
Full Back and Full Front $2,340
Full Front and Upper Arms $1,695
Beard Face and Neck $936
Ear Hair $285
Nasal Hair $285
Between the Eyebrows $420
Cheeks $420

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Sides of Face $420

Chin $420
Moustache $420
Hairline $420
Beard Face $570
Beard Neck $570
Back of Neck $420
Full Face $855
Scalp $1,005
Fingers or Toes $285
Hands or Feet $420
Underarms $420
Shoulders $645
Upper Arms $645
Lower Arms $720
Full Arms $930
Nipples $360
Naval to Pubic Line $570
Upper Chest $930
Stomach $930
Full Front $1,440
Upper Back $930
Lower Back $930
Full Back $1,440
Lower Legs $930
Upper Legs $1,080
Full Legs $1,440

3 Industry and Market Analysis

Personal Care Services (NAICS 8121)

According to Government of Canada,3 the operators in Personal Care Services Industry provide
services such as hair care and esthetic services, hair replacement and scalp treatment services,
massage services, diet counselling services, and ear piercing services. In 2016, the number of
establishments in this industry reached 44,678.

3
Source: https://www.ic.gc.ca/app/scr/app/cis/summary-sommaire/8121

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Skin Sensations Clinic Inc. will operate as a spa and wellness center, combining the cosmetic
expertise and technology with the relaxing experience of spa.

According to the Global Wellness Institute, 4 the global wellness economy was a $4.2 trillion
industry in 2017 and represented 5.3% of global economic output. The industry grew by 6.4%
annually from 2015 to 2017, from a $3.7 trillion to a $4.2 trillion market, nearly twice as fast as
global economic growth (3.6% annually, based on IMF data). Among the 10 wellness markets
analyzed, revenue growth leaders from 2015 to 2017 (per annum) were the spa industry (9.8 %),
wellness tourism (6.5 %) and wellness real estate (6.4 %).

As the chart above shows, key sectors of the wellness industry include Personal Care, Beauty,
and Anti-Aging, Healthy Eating, Nutrition, and Weight Loss, Wellness Tourism, Fitness and Mind-
Body, Preventative and Personalized Medicine and Public Health, Spa Economy, Traditional and
Complementary Medicine, Thermal/Mineral Springs, and Workplace Wellness.

Spa Industry

The spa economy, which includes spa facility revenues (now $93.6 billion yearly), and also
education, consulting, associations, media, and event sectors that enable spa businesses (now

4
Source: Global Wellness Institute, Wellness Industry Statistics and Facts, October 2018

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$25.2 billion), has grown to a $118.8 billion market. Spa locations jumped from 121,595 in 2015
to over 149,000 in 2017, employing nearly 2.6 million workers.

From 2015 to 2017, the hotel/resort spa category added the largest number of spas and revenue,
and has now surpassed day and salon spas as the industry revenue leader.

The spa sector is projected to reach $128 billion in 2022. The top five markets are U.S. ($20.8
billion), China ($8.2 billion), Germany ($6.7 billion), Japan ($5.7 billion), and France ($3.6 billion).

Global Wellness Institute projects that in order to staff the growing global spa business, the
industry will need an additional 300,000 trained spa therapists and 54,000 experienced spa
managers/directors (above the current level) by 2022.

Market Analysis

Skin Sensations Clinic Inc. will be located in Vancouver, British Columbia, an advantageous
environment for the growth of the business. Vancouver is a coastal seaport city in western
Canada, located in the Lower Mainland region of British Columbia. Vancouver has the highest
population density in Canada with over 5,400 people per square kilometre, which makes it the
fifth-most densely populated city with over 250,000 residents in North America behind New York
City, Guadalajara, San Francisco, and Mexico City. Vancouver is one of the most ethnically and
linguistically diverse cities in Canada. 52% of its residents have a first language other than English.

Vancouver is consistently named as one of the top five worldwide cities for livability and quality
of life, and the Economist Intelligence Unit acknowledged it as the first city ranked among the
top-ten of the world's most well-living cities for five consecutive years. According to Statistics
Canada,5 Vancouver has a population of 2,463,431. The city has an annual per capita income of

5
Source: Statistics Canada, Census Profile, 2016 Census, Vancouver, British Columbia

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$36,138, and an annual median household income of $72,662. The unemployment rate in
Vancouver is currently 5.8%.

According to WorkBC, 6 in the province of British

Columbia, recent job growth for repair, personal,
and non-profit services shows a 9% increase, which
is equal to 9,800 new jobs created during the
period. In 2017, the industry employed 114,400
people. At 62.7%, the Mainland/Southwest region
accounts for the biggest share of industry
employments and establishments. The forecasted
average annual employment growth rate is estimated at 1.4% in the period from 2018 to 2023
and 0.9% from 2023 to 2028.

Canada is among the ten leading countries for wellness tourism expenditure. There is a growing
number of spas and medical components being introduced in spas due to high demand. Wellness
treatments are being combined with both medical and non-medical, non-invasive treatments,
particularly for weight loss, skin abnormalities (skin tags, varicose veins), and detox. Many aging
and sun-related issues of the skin are being treated at spas. Massage therapy services are partially
covered by most Canadian health insurance plans, if provided services are administered by
registered massage therapists, resulting in strong spa culture in Canada.

3.2.1 Global Spa Market

According to a report published by Allied Market Research,7 the global spa market was valued at
$11,063 million in 2017. The facial treatment segment accounted for one-third share of the global
market revenue in 2017. This industry is expected to reach $27,566 million by 2025, with a

6
Source: WorkBC, Industry Profiles
7
Source: https://www.alliedmarketresearch.com/

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compound annual growth rate of 18.8%. Primary driver of the market is the increase in use of
cosmetic treatment and medicines for beauty enhancement in the developed economies. Some
of the factors behind this are technological advancement in skincare devices, rise in the number
of skin-related diseases, growth in aging population, and increase in demand of better spa
services.

The global spa market can be

classified based on service and
region. By service, the market can
be classified into tattoo removal,
facial treatment, hair removal,
scars and striae, body shaping, and
others. The facial treatment and
hair removal segments are
estimated to grow rapidly in the
near future. A key driver of the
segment is the rise in awareness
among people regarding the enhancement of self-appearance. Moreover, novel facial treatments
delivered in spas, such as, ultrasonic fountain, nature signature facial, oxygen facial, derma wave,
and HydraFacial MD are also boosting the growth of the segments. As such, development of such
innovative techniques is estimated to drive the global spa market during the next period.

Ablative and Non-Ablative Skin Resurfacing

In an increasingly glamour-conscious world, both ablative and non-ablative skin resurfacing is

gaining prominence.

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According to the aforementioned report published by Transparency Market Research,8 ablative

skin resurfacing devices are characterized by ablation or removal of outer skin layer. The devices
include CO2 and erbium lasers which emit laser beam that penetrates deep into the skin and
stimulate collagen formation, thus effectively resurfacing the sub-surface of the skin. This
procedure results in the development of new collagen fibers. Once the treated area heals, the
new skin that forms is firmer and smoother. Increase in consciousness about personal
appearance in adults and baby boomer population and lifestyle-related changes such as obesity
and hypertension, which affect facial anatomy, are driving the growth of the ablative skin
resurfacing devices market.

According to Transparency Market Research, 9 the non-ablative laser resurfacing market is

expected to propel during the forecast period owing to the increasing demand of cosmetic
procedures during the past decade. Additionally, advances in the skin resurfacing field have
enabled faster healing while minimizing the side effects for patients and the procedure
downtime. As cosmetic procedures are now trending towards the use of noninvasive and less
radioation exposure procedures, non-ablative laser treatments emerged as the new therapeutic
option for skin rejuvenation. The modalities used for skin resurfacing using non-ablative
procedures are vascular lasers, radiofrequency, photodynamic therapy, infrared lasers and light
sources, and non-ablative fractional lasers.

Oxygen Therapies and Treatments

Together with laser treatments, oxygen therapies have gained wide recognition. According to
Grand View Research,10 The global oxygen therapy market size was estimated at $7.09 billion in
2015 and is anticipated to grow at a CAGR of 11.1% over the forecast period. The versatile uses

8
Source: Transparency Market Research, Ablative Skin Resurfacing Market – Global Industry Analysis, Forecast,
2017-2025
9
Source: Transparency Market Research, Non-Ablative Skin Resurfacing Market – Global Industry Analysis, Forecast,
2017-2027
10
Source: Oxygen Therapy Market Size, Share, and Trends Analysis Report, 2018-2024

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of oxygen in chemical industry as an oxidizing agent and catalyst are contributing to the growth
of oxygen market.

The actual procedure consists of an airbrush-gun-like wand that emits oxygen, which helps the
skin to absorb the serums going into the skin, including different blends of hyaluronic acid (for
moisturizing and age reversal), botanical extracts, antioxidants, peptides, or vitamins. The oxygen
is antibacterial and provides a cooling and calming effect for the patient. The procedures last
anywhere from 30 to 60 minutes. According to Udemy,11 demand for treatments such as oxygen
facials has been growing due to the following benefits:

 Oxygen facials have a quick recovery tim, and the patient can almost immediately apply
makeup or lotion to their face, as opposed to a normal facial, where they must wait
several hours.
 As opposed to other types of skin treatments, such as microdermabrasion, oxygen facials
leave no painful side effects, such as itching, stinging, or burning. The procedure itself is
quite gentle, and those with sensitive skin, or aversion to needles, are able to undergo
this procedure with no problems.
 Some of the benefits of the facial are instantly noticeable, with patients reporting
glowing, younger looking skin, and those suffering from acne and other skin issues have
reported a clearing up of these issues after a while.
 Regardless of physical benefits, the infusion of oxygen and vitamins to any part of the
body is healthy, and they promote cell growth, as well as collagen growth. It also gives
skin that’s been exposed to pollutants such as tobacco smoke and dirty air a bit of a
cleanse.
 While not cheap, oxygen facials have shown to be less expensive than treatments such as
Botox injections.

Geographically, North America dominated the global market in 2017, and is expected to retain
its dominance throughout the forecast period. This is attributed to the well-established
healthcare infrastructure and the increased awareness regarding potential benefits of wellness

11
Source: Udemy, Oxygen Facial: The Good, the Bad, and the Ugly, June 2014

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and spa procedures as well as specific treatments such as laser resurfacing and oxygen
treatments.

3.2.2 Competition

There are several wellness and beauty salons in proximity to the Company’s anticipated location.
Skin Sensations Clinic Inc.’ main competitors will be:

 La Jolie Spa
 Elements Wellness Center
 Energy Wellness Spa

Demand for wellness and beauty salons will typically be greatest in the most populated regions,
as a greater number of residents leads to stronger demand for personnel care services. Industry
operators compete based on price, service quality, location, and customer loyalty.

Skin Sensations Clinic Inc.’s competitive advantages over its competitors include the following:

Attractive Service Offering

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In addition to providing various cosmetic and wellness services, Skin Sensations Clinic Inc. will
strive to update its offering based on recent market and industry trends. Currently, the
Company’s list of services includes laser resurfacing and rejuvenating treatments as well as
oxygen treatments, all of which have been trending on the Canadian market. According to the
aforementioned report published by Transparency Market Research, as an early adopter and a
spearhead of esthetic innovation, North America is a leading region in the global ablative skin
resurfacing market for both fully ablative and fractional ablative lasers. This trend is expected to
continue, as a result of higher disposable incomes and high prevalence and incidence rate of
conditions such as acne and rosacea. Oxygen treatments such as facials and hyperbaric oxygen
therapy have recently gained popularity, as oxygen has been found to be an important
component in skin rejuvenation, treatment of photoaging skin, and improvement in skin
complexions.12 One of the reasons behind the popularity of oxygen treatments lies in their little
to no risk of serious side effects that often occur with so many other professional skin care
treatments. Treatments are also painless and require no harsh chemical peels. By offering these
services, the Company easily attract new clients and distinguish itself from competitors with lack
of knowledge, experience, or needed equipment for adding laser resurfacing and oxygen
treatments to their offering.

Welcoming Interior Design

Skin Sensations Clinic Inc. will have a uniquely designed interior that will best portray its
dedication to beauty and style as well as providing an environment where customers feel
comfortable. The resulting relaxing atmosphere incorporates modern styles and soothing colors
with attention to details such as fresh flowers. Skin Sensations Clinic Inc. will provide a distinctive
and memorable experience so that clients look forward to future visits.

12
Source: Asadamongkol, Bralipisut and John H Zhang. 2014. “The development of hyperbaric oxygen therapy for
skin rejuvenation and treatment of photoaging,” Med Gas Res 4: 7.

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Small and Flexible Team

Small companies like Skin Sensations Inc. hire fewer employees and have fewer layers of
management than large companies. As a result, the Company’s executives can make business
decisions faster than the executives at large enterprises. Skin Sensations Clinic Inc.’s structure
also means that every employee is much closer to the business and the client, allowing for better
understanding of how the Company works and increased customer satisfaction.

Superior Customer Service

The success of the establishments providing personal care services is directly linked to the ability
to satisfy customers. Superior service starts with a courteous, professional, and licensed staff, as
there is no better way to obtain new customers and retain existing ones. Skin Sensations Clinic
Inc.’s friendly service will make all clients feel welcome. The Company will strive to meet
customer expectations and surpass them whenever possible.

Well-defined Marketing Strategy

Skin Sensations Clinic Inc. will be dedicated to developing and implementing comprehensive
marketing strategies consistent with the Company’s long-term goals. The Company will promote
its services on a fully developed website and social media sites such as Facebook. The Company
will be cross-referenced on review websites and also benefits from word-of-mouth marketing. In
addition, the Skin Sensations Clinic Inc. will develop various promotional campaigns to attract
repeat visits from its clients. A well-defined marketing strategy will enable the Company to stay
competitive.

Skin Sensations Clinic Inc. will maintain the highest level of service quality, approaching each
client in the most professional manner, and ensuring clients’ satisfaction. The Company will be
dedicated to building its reputation by developing close relationships with clients. Ms.
Mashreghi’s experience and knowledge, and constant innovations will ensure the large clients’
base and success in the business operations.

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4 Marketing Strategies
Website and Digital Marketing

Skin Sensations Clinic Inc. will create a website to promote the salon. On the website, visitors will
find information about the store, contact information, and a list of services. Skin Sensations Clinic
Inc. will have a professional agency design the website and optimize it for better search engine
rankings. Search engine optimization of the website ensures that the proper titles, meta
descriptions, and keywords, both short- and long-tailed, are present on all pages of the website.

Skin Sensations Clinic Inc. will also devote part of its budget to digital marketing to drive traffic
to the salon’s website. Digital marketing will primarily focus on Google AdWords keyword
advertising campaigns and the display network. Skin Sensations Clinic Inc. will also conduct
advertising campaigns on social media, such as Facebook, to drive visitors and potential clients
to its website. In addition to directly bringing visitors to the website, the digital marketing
campaigns will also build brand awareness by displaying the Company’s logo and ads on the
Google display network and, therefore, on numerous websites with visitors interested in the
salon’s beauty services and products.

Proper search engine optimization and successful digital marketing campaigns will be among the
key growth and development factors of the Company. Online marketing and promotional efforts
help the Company rank higher in search engine result pages, which will lead to an increased
number of visitors and, consequently, clients.

Skin Sensations Clinic Inc. will promote its website primarily by conducting search engine
optimization campaigns focused on search terms such as beauty salon near me, waxing services,
facials near me, wellness, oxygen therapy, and others. According to Google Trends,13 the search
volume for the phrase Facials near me has been increasing in British Columbia, with only

13
Source: https://trends.google.com/trends/explore?date=today%205-yandgeo=CAandq=facials%20near%20me

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occasional fluctuations. The search volume for the phrase Oxygen therapy14 has been consistent.
These trends are expected to continue.

Facials near me

Oxygen therapy

Social Media

According to CIRA,15 Canadian Internet Registration Authority, almost 90% of Canadians have an
internet connection. Almost all of them are using social media and the most popular social media
networks in 2019, in Canada, are:

 Facebook 77%
 LinkedIn 35%
 Instagram 35%
 Twitter 26%
 Snapchat 19%

14
Source: https://trends.google.com/trends/explore?date=today%205-yandgeo=CAandq=oxygen%20therapy
15
Source: https://cira.ca/

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The focus on social media will help Skin Sensations Clinic Inc. increase exposure, increase traffic
to its website, provide marketplace insight, generate leads, improve sales, and allow the
Company to communicate directly with prospective clients and better understand their needs.
Skin Sensations Clinic Inc. will be present on Facebook, Twitter, and Instagram.

Word-of-Mouth

The internet has changed the way business is conducted. The variables of segmentation,
targeting, and positioning are addressed differently. Because of the increased role of sharing or
online word of mouth, the way products and services are marketed has changed, even though
the goal of businesses remains the same. Marketing has evolved to include more connectivity
due to the new characteristics introduced by the internet. Marketing was once seen as a one-
way relationship, with firms broadcasting their offerings and value proposition. Now it is seen
more as a conversation between marketers and customers. Skin Sensations Clinic Inc. will
maintain a positive image in order to reach as many customers as possible through word of
mouth.

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5 Key Management and Personnel Plan

Executive Director: Ms. Masoumeh Mashreghi Mohammadi (NOC
0015)

Ms. Masoumeh Mashreghi Mohammadi will serve as the Company’s Executive Director.

Ms. Mashreghi studied medicine at the University of Isfahan, Iran from October 1985 until
September 1993. From October 1995 until September 1999, she completed the General Surgery
residency at the University of Medical Science of Tehran. She also obtained a Ph.D. in General
Surgery. Additionally, Ms. Mashreghi is a member of the Iranian Association of Surgeons.

Ms. Mashreghi’s professional experience spans more than 13 years of experience. From March
2000 to October 2016, she worked at Lolagal Hospital at Iran Medical Sc. University as the
General Surgeon. As the General Surgeon, she administered treatments before surgeries to
alleviate pain and manage patient conditions, met with patients after operations to educate them
on recovery times and at-home rehabilitation, and worked closely with emergency teams to
determine effective courses of action for patients and provide necessary care, demonstrating
outstanding organization skills and focus, as well as showing empathy and communicational skills
when communicating with patients. Ms. Mashreghi has been performing surgeries, and she has
a special interest in breast cancer procedures.

Since July 2002, Ms. Mashreghi has maintained her private practice as the owner and General
Surgeon, adding business management and development skills to her portfolio. As the owner and
General Surgeon, she managed day-to-day business operations, including accounting, finance,
human resources, and marketing and enhanced the company’s operational efficiency and
productivity by managing accounts. Ms. Mashreghi developed improved records management
systems for clients and stayed up-to-date in changing medical science to provide top-notch care
with modern, high-quality tools and procedures. Through her private practice, Ms. Mashreghi

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successfully maintained both medical and business operations, showing a managerial prowess
and an impeccable business vision.

As the Executive Director of Skin Sensations Clinic Inc. Ms. Mashreghi will oversee all operations.
Ms. Mashreghi will manage the daily operations of the Company, including personnel, finances,
marketing, and the services offered. She will handle performance expectations, client service
standards, and corporate policies and guidelines while supervising and directing all employees
and preparing work schedules. Ms. Mashreghi will allocate material, human, and financial
resources while implementing organizational policies. She will also oversee the employees’
performances. Until an esthetician is hired, she will perform cosmetic treatments such as facials.
She will develop and implement strategies, and she will constantly strive to promote the
organization’s mission. Ms. Mashreghi will maintain long-term financial stability and supervise
the finances of Skin Sensations Clinic Inc. Her professional experience has equipped her with the
skills necessary to succeed in leading the growth of the beauty and wellness salon in the city of
Vancouver.

As a health care professional, she will keep up with all the innovations in skin care, making sure
that the latest technologies and techniques are used at the Company. Ms. Mashreghi will share
her experiences and knowledge with the employees, educating them further about the skin care.

Esthetician (NOC 6562)

From Year 2, the Company will have one Esthetician. This employee will greet clients upon arrival.
The Esthetician will briefly describe the treatment that was scheduled, ensuring that clients feel
relaxed and comfortable. This employee will perform facial treatments, waxing services, and
oxygen treatments. The Esthetician will guide clients through the list of services, inviting them to
return and recommending the most suitable treatments for them. This employee will participate
in continuing education programs, and will closely cooperate with Ms. Mashreghi.

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Laser Technician (NOC 6562)

In Year 1, the Company will hire one Laser Technician. The Laser Technician will provide laser
resurfacing and rejuvenating treatments to scheduled clients. This employee will greet clients,
consult them on their treatment of choice or recommend treatments suitable for the client’s age
and skin type, and perform treatments using equipment such as nonablative laser or fraxel. The
Laser Technician will maintain client records, deal with questions and complaints expressed by
the clients, and resolve minor on-the-job issues. Additionally, this employee will maintain a clean
and orderly workstation and report restocking needs to the Executive Director.

Massage Therapists (NOC 3236)

Skin Sensations Clinic Inc. will hire one Massage Therapist in Year 1 and an additional Massage
Therapist in Year 2. Massage Therapists will assess clients by conducting range of motion and
muscle tests and propose treatment plans. Those employees will explain procedures, risks, and
benefits to clients. Massage Therapists will acknowledge and respond to relevant customer
queries, needs, and expectations. Those employees will administer massage techniques, treating
soft tissues and joints of the body through soft tissue manipulation, relaxation techniques, trigger
point therapy, joint pain and lower grade mobilizations. Massage Therapists will uphold hygiene
standards and follow health and safety regulations. These employees will apply best practices
and be up to date with market trends.

Personnel Plan and Expenses

Number of Employees per Position Year 1 Year 2 Year 3 Year 4 Year 5
Executive Director: Ms. Masoumeh Mashreghy Mohammadi 1 1 1 1 1
Esthetician 0 1 1 1 1
Laser Technician 1 1 1 1 1
Massage Therapists 1 1 1 1 1
Total Employees 3 4 4 4 4

Designated Salary per Position Year 1 Year 2 Year 3 Year 4 Year 5

Executive Director: Ms. Masoumeh Mashreghy Mohammadi $66,316 $69,631 $73,113 $76,769 $80,607
Esthetician $0 $29,994 $31,494 $33,068 $34,722
Laser Technician $46,800 $49,140 $51,597 $54,177 $56,886

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Massage Therapists $46,800 $49,140 $51,597 $54,177 $56,886

Personnel Plan Year 1 Year 2 Year 3 Year 4 Year 5

Executive Director: Ms. Masoumeh Mashreghy Mohammadi $66,316 $69,631 $73,113 $76,769 $80,607
Esthetician $0 $29,994 $31,494 $33,068 $34,722
Laser Technician $46,800 $49,140 $51,597 $54,177 $56,886
Massage Therapists $46,800 $49,140 $51,597 $54,177 $56,886
Total Employees 3 4 4 4 4
Total Payroll Expenses $159,916 $197,905 $207,801 $218,191 $229,100

Organization Chart (Year 5)

6 Financials
Initial Investment

Ms. Masoumeh Mashreghi Mohammadi will invest a total of $150,000 into the Company from
her personal savings. These funds will be used to cover the initial business expenses such as
business setup, deposits, rent, payroll, equipment purchases, renovation, inventory, marketing,
and any other unforeseen costs. The funds will also be used as working capital necessary to cover
the Company’s operating expenses in the initial six months.

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Expenses that will be made from Ms. Masoumeh Mashreghi Mohammadi’s personal funds:
Equipment $61,159.20
Leasehold Improvement $15,000.00
Furniture $6,000.00
Payroll $10,000.00
Marketing and Promotion $4,250.00
Inventory $5,355.00
Legal and Professional Fees $3,750.00
Lease Rent (three months) $25,500.00
Business Licenses $2,500.00
Total that will be spent from Ms. Masoumeh Mashreghi Mohammadi’s personal funds $133,514.20

Assumptions

The sales of wellness and beauty salon are calculated as the number of the services provided
times the price of the services.

In Year 1, Skin Sensations Clinic Inc. will provide:

 approximately 26 facial treatments per month with an average price of $119. In Year 2,
the number of facial services provided per year will grow 25%, and from Year 3 to Year 5,
this number will grow 10% each year;
 approximately 12 facial and massage packages monthly, with an average price of $235.
The number of facial and massage packages provided per year will grow 25% in Year 2,
5% in Year 3, 4% in Year 4, and 6% in Year 5;
 45 massages per month, with an average price of $174. The number of massages provided
per year will grow 25% in Year 2, 10% in Year 3, 6% in Year 4, and 10% in Year 5;
 20 oxygen treatments monthly, with an average price of $122. Due to the popularity of
oxygen treatments, the number of services provided per year will grow 25% in Year 2, 5%
in Year 3, and 6% in Year 4 and Year 5;
 5 laser resurfacing treatments per month, with an average price of $1,225. The number
of laser resurfacing treatments provided per year will grow 15% in Year 2, 6% in Year 3,
6% in Year 4, and 5% in Year 5;
 20 laser rejuvenation treatments per month, with an average price $338. The number of
laser rejuvenation treatments provided per year will grow 11% in Year 2, 6% in Year 3, 6%
in Year 4, and 5% in Year 5;
 70 waxing services per month, offered at the average price of $47. The number of laser
resurfacing treatments provided per year will grow 10% in Year 2, 6% in Year 3, 6% in Year
4, and 5% in Year 5.

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 One IPL laser hair removal service per month, offered at the average price of $936.38.
The number of laser resurfacing treatments provided per year will grow 25% in Year 2,
5% in Year 3, 8% in Year 4, and 10% in Year 5.

Skin Sensations Clinic Inc. will engage in various marketing campaigns in order to attract more
clients. Due to the nature of services, a large number of clients will be repeat clients, returning
to the Company to continue the treatment. With the high quality of personalized services
provided, the Company expects its clients’ base to expand each year and number of services
provided to increase each year.

Break-even Analysis
Break-even Analysis
Monthly Units Break-even 186
Monthly Revenue Break-even $31,066
Assumptions:
Average Per-Unit Revenue $167.46
Estimated Monthly Fixed Cost $31,066

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Sales Forecast
Sales Forecast Year 1 Year 2 Year 3 Year 4 Year 5
Unit Sales
Facial Treatments 312 390 429 472 495
Facial and Massage Packages 150 188 197 205 217
Massages 540 675 743 787 866
Oxygen Treatmetns 240 300 315 334 354
Laser Treatments- Resurfacing 60 69 73 78 81
Laser Rejuventation 240 266 282 299 314
Waxing 840 924 979 1,038 1,090
IPL Laser Hair Removal 12 15 16 17 19
Total Unit Sales 2,394 2,827 3,034 3,230 3,437
Unit Prices Year 1 Year 2 Year 3 Year 4 Year 5
Facial Treatments $119.00 $119.00 $119.00 $119.00 $119.00
Facial and Massage Packages $235.00 $235.00 $235.00 $235.00 $235.00
Massages $174.00 $174.00 $174.00 $174.00 $174.00
Oxygen Treatmetns $121.75 $121.75 $121.75 $121.75 $121.75
Laser Treatments- Resurfacing $1,225.00 $1,225.00 $1,225.00 $1,225.00 $1,225.00
Laser Rejuventation $338.00 $338.00 $338.00 $338.00 $338.00
Waxing $47.00 $47.00 $47.00 $47.00 $47.00
IPL Laser Hair Removal $936.38 $936.38 $936.38 $936.38 $936.38
Sales
Facial Treatments $37,128 $46,410 $51,051 $56,156 $58,964
Facial and Massage Packages $35,250 $44,063 $46,266 $48,116 $51,003
Massages $93,960 $117,450 $129,195 $136,947 $150,641
Oxygen Treatmetns $29,220 $36,525 $38,351 $40,652 $43,091
Laser Treatments- Resurfacing $73,500 $84,525 $89,597 $94,972 $99,721
Laser Rejuventation $81,120 $90,043 $95,446 $101,173 $106,231
Waxing $39,480 $43,428 $46,034 $48,796 $51,235
IPL Laser Hair Removal $11,237 $14,046 $14,748 $15,928 $17,521
Total Sales $400,895 $476,489 $510,687 $542,740 $578,408

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Profit and Loss

Pro Forma Profit and Loss Year 1 Year 2 Year 3 Year 4 Year 5
Sales $400,895 $476,489 $510,687 $542,740 $578,408
Direct Cost of Sales $0 $0 $0 $0 $0
Gross Margin $400,895 $476,489 $510,687 $542,740 $578,408
Gross Margin % 100.00% 100.00% 100.00% 100.00% 100.00%
Operating Expenses
Payroll $159,916 $197,905 $207,801 $218,191 $229,100
Marketing $8,550 $8,978 $9,426 $9,898 $10,393
Depreciation $8,216 $8,216 $8,216 $8,216 $8,216
Rent $76,500 $102,000 $105,060 $108,212 $111,458
Utilities $6,000 $6,300 $6,615 $6,946 $7,293
Inventory $60,000 $63,000 $66,150 $69,458 $72,930
Legal and Professional Fees $7,500 $7,875 $8,269 $8,682 $9,116
Insurance $19,125 $20,081 $21,085 $22,140 $23,247
Payroll Taxes $23,987 $29,686 $31,170 $32,729 $34,365
Other $3,000 $3,150 $3,308 $3,473 $3,647
Total Operating Expenses $372,794 $447,190 $467,100 $487,943 $509,764
Profit Before Interest and Taxes $28,100 $29,299 $43,587 $54,797 $68,644
EBITDA $36,316 $37,515 $51,803 $63,013 $76,860
Taxes Incurred $8,430 $8,790 $13,076 $16,439 $20,593
Net Profit $19,670 $20,509 $30,511 $38,358 $48,051

Cash Flow
Pro Forma Cash Flow Year 1 Year 2 Year 3 Year 4 Year 5
Cash Received
Cash from Operations
Cash Sales $400,895 $476,489 $510,687 $542,740 $578,408
Subtotal Cash from Operations $400,895 $476,489 $510,687 $542,740 $578,408
Subtotal Cash Received $400,895 $476,489 $510,687 $542,740 $578,408
Expenditures Year 1 Year 2 Year 3 Year 4 Year 5
Expenditures from Operations
Cash Spending $373,008 $447,764 $471,960 $496,166 $522,142
Subtotal Spent on Operations $373,008 $447,764 $471,960 $496,166 $522,142
Subtotal Cash Spent $373,008 $447,764 $471,960 $496,166 $522,142
Net Cash Flow $27,886 $28,725 $38,727 $46,574 $56,266
Cash Balance $49,727 $78,452 $117,179 $163,753 $220,019

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Balance Sheet
Pro Forma Balance Sheet Year 1 Year 2 Year 3 Year 4 Year 5
Assets
Current Assets
Cash and Other Current Assets $49,727 $78,452 $117,179 $163,753 $220,019
Total Current Assets $49,727 $78,452 $117,179 $163,753 $220,019
Long-term Assets
Long-term Assets $82,159 $82,159 $82,159 $82,159 $82,159
Accumulated Depreciation $8,216 $16,432 $24,648 $32,864 $41,080
Total Long-term Assets $73,943 $65,727 $57,511 $49,295 $41,080
Total Assets $123,670 $144,179 $174,690 $213,048 $261,099
Capital Year 1 Year 2 Year 3 Year 4 Year 5
Paid-in Capital $150,000 $150,000 $150,000 $150,000 $150,000
Retained Earnings ($46,000) ($26,330) ($5,821) $24,690 $63,048
Earnings $19,670 $20,509 $30,511 $38,358 $48,051
Total Capital $123,670 $144,179 $174,690 $213,048 $261,099
Net Worth $123,670 $144,179 $174,690 $213,048 $261,099

7 Economic Benefit to Canada

Skin Sensations Clinic Inc. will make a positive impact on the Canadian economy. The Company’s
net profit as well as payroll expenses will increase, thus increasing total taxes paid. The chart
shows the increase in both net income and payroll taxes through the years. Payroll tax is expected
to start at $23,987 in Year 1 and reach $34,365 in Year 5. Net income tax is expected to start at
$8,430 in Year 1 and reach $20,593 in Year 5. Wendy Salon expects to pay $32,417 in taxes in
Year 1, increasing to $54,958 by the end of Year 5.

Tax Paid by Year

$60,000
$50,000
$40,000
$30,000
Payroll Tax
$20,000
Net Income Tax
$10,000
Total Tax
$0
Year 1 Year 2 Year 3 Year 4 Year 5
Payroll Tax $23,987 $29,686 $31,170 $32,729 $34,365
Net Income Tax $8,430 $8,790 $13,076 $16,439 $20,593
Total Tax $32,417 $38,475 $44,246 $49,168 $54,958

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In addition to having positive effect on Canadian economy through total taxes paid, Skin
Sensations Clinic Inc. will have additional benefits on the Canadian economy including:

 Generating employment by hiring one full-time Massage Therapist, one Laser Technician,
and one Esthetician

 Generating investments by investing $150,000 for setting up the Company in Canada and
additional funds in the following years as the Company’s business develops

 Since all of the Company’s future employees are expected to be Canadian citizens, Ms.
Masoumeh Mashreghi Mohammadi and her dedication to transferring her skills and
knowledge to the Canadian workforce will create qualified professionals, therefore
fulfilling Canadian industry needs and benefiting the Canadian economy

 By incorporating treatments such as laser resurfacing and rejuvenation and oxygen

treatments in its service offering, the Company will keep abreast of market trends and
stimulate the local competition, encouraging innovation and knowledgeable practices

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