THE ROSE SPA

“Feel Relax”

2

Contents Executive summary Ch 1 The company 1.1 History 1.2 Mission statement 1.3 Product and service 1.4 Current Status 1.5 Legal Status and ownership 1.6 Basic Corporation information 1.7 Company structure Ch 2 Industry Analysis 2.1 Industry definition 2.2 Industry size, growth and sales projections 2.3 Industry characteristics 2.4 Industry trends Ch 3 Market Analysis 3.1 Marketing segmentation and target market selection 3.2 Buyer behavior 3.3 Competitor analysis 3.4 Estimation of annual sales and market share Ch 4 Marketing Plan 4.1 Market strategy 4.1.1 Position strategy 4.1.2 Points of differentiation 4.2 Pricing strategy 4.3 Sales process and promotion mix 4.4 Distribution and sales Ch 5 Operations and Product Development Plan 5.1 Operations plan 5.2 Product ( or service ) development plan Ch 6 Financial analysis 6.1 Start up Expenses 6.2 Assumption sheet 6.3 Pro forma financial statement 6.3.1 Opening Day Balance Sheet (beginning of year) 6.3.2 Profit and Loss projection (12 months) 6.3.3 Cash flow (12 months) 5 5 5 5 6 6 6 6 7

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3 6.4 Projected balance sheet (end of year) 6.6 Profit Projection (5 years) Recommendation Review Appendix 17 18 19 20 .5 Break Even Analysis 6.3.4 Ratio analysis 6.

Sports Massage. We also offer facial and body treatments. body treatments and anti-aging therapies.traditional Massage. 1.traditional Massage. Hot Stone Massage. The only time a pedicure would be provided. To achieve our objectives. has made this business one of great potential.4 Executive Summary THE ROSE Spa is a new upscale destination in Freeway in coimbatore. . and the procurement of highly professional and qualified beauticians and healthy. We are patiently searching for six months for the perfect location. In fact. Reflexology. for location. as well as the ambitions of us. we are seeking additional loan financing. Reflexology. we prefer being located near hair and nail salon for co-marketing opportunities.2 Mission statement Our mission is to run a profitable business by providing high-end therapeutic massage and beautiful services in a caring. The company 1. We have been creating a large client following through hard work and dedication. We offer massage in a variety of styles . Pregnancy and others. Sports. experience. professional environment. Our licensed aestheticians offer the latest in skin treatments.1 History The timing is right for starting this new venture. We expect our growing reputation to lead to new clients and beauticians to support our anticipated growth. Hot Stone Massage. offering a complete day spa experience. Deep Tissue work. Our talented team of beauticians and physicians has what it takes to make this venture an extremely successful one. The rose Spa has the latest in anti-aging products and techniques but does not offer services on hair such as cutting. Deep Tissue work. this plan has been written to for Spa's successful. The demand from the owner's clients. upscale. We offer seven ultra-boutique. and personal guarantees of the owners. styling and coloring. one was finally found in January 2012 in R.Puram coimbatore. This loan will be paid from the cash flow from the business and will be collateralized by the assets of the company. In addition. is when it's part of a full treatment like Calendula Foot and Leg Reflexology Treatment. and others.S. Sports Massage. and backed by the character. ultra-comfortable treatment rooms with the finest spa linens and equipment. like a Vitamin C Antioxidant Facial Treatment. We offer massage in a variety of styles . This business plan has been developed to track progress prior to grand opening and following through with a five-year projection. 1. We have been working in a famous upscale spa in our Town.

has a daily traffic count of 10. and textiles are used throughout the spa to complete the comfortable.Rs3. 1. 1.S. Details are provided Other Current Assets purchased at start-up are as follows: Note –Rs. R. The bulk of the start-up costs will be invested by us and the remainder will be funded through short-term financing. 1. Special lighting. facials and anti-aging treatments. The upside of the commissioned employee is that there is very little overhead without sales. facials and anti-aging treatments.5 Our goal is to tailor the client's experience based on initial interview information. These high-end items tend to have 50% mark . 1.using only the finest oils and lotions.6 Basic corporate information After spending several months searching for a spa to purchase. body treatments. we will explore the feasibility of both a partnership. employees only make money when the business makes money. The settings are upscale. Gayathri. plush environment and enhance the client's overall spa experience. and a limited liability partnership. We cater to both men and women and offer the latest in skin care products and therapies. music.Puram coimbatore. where we plan to locate.000 cars. We are mindful of the overall experience . beautiful and serene. as well as feedback during the treatments.000lac Massage table equipment .3 Products and services The rose Spa offers therapeutic massage services. body treatments. and has an upscale hair and nail salon which would complement our services nicely. It is also only two blocks from a commuter train stop. In the course of fund raising. or higher.4 Current status The rose Spa is a new destination offering customers the combination of massage. owned by Ms. candles.795 (5 complete) . beauty treatments and aromatherapies.5 Legal status and ownership The rose Spa is a privately held partnership. to ensure the client's comfort and satisfaction. Services are provided by licensed therapists and aestheticians who are independently contracted and paid on a commission basis. and to increase repeat business. creams.up. We also offer a full retail line that complements the services menu. Arunya and Ms. and other beauty products. we decided to start a The rose Spa from the ground up. decor. Products included are highend cosmetics.

and organizational structures.3 Industry characteristics We are part of the retail health and beauty industry that we have served at our The rose Spa Facility and delivered to local hotels also medical spa focus mainly on massage therapy.500 Back bar Supplies . For the rose Spa we have placed ours as a medium Spa and Beauty industry.6 Aesthetician Equipment .Rs2.000 2. 2.800 (2 room setup) Decor and Furnishings .Rs3. skin grafts. 2. it is rapidly growing the sales could be lower due to many competitions. growth and sales projections Nowadays in coimbatore we are more concerning about our health and this makes this kind of business very popular recently and it tends to be larger and larger from metropolis to downtown. The Target group is particular in Women because as we know well that they like to pamper themselves to be “Good-looking” without concerning cost According to this.000 Signage . About 40. they vary greatly in terms of size. advances in information technology continue to improve customers and worker efficiency with devices such as hand-held . facials and Resurfacing 2. Staffs of Spa industry and health care is projected to increase 27 percent through 2014 in coimbatore. Spa development plans.Rs13. education. or other health practitioners. technological advances have made many new procedures and methods of diagnosis and treatment possible.4 Industry trends In the rapidly changing health care industry in coimbatore.Rs4. compared with 14 percent for all industries combined The slowest growing industry segment to 69 percent in the much smaller Spa health care services.2 Industry size.1 Industry definition The rose Spa our sole purpose is to provide guests with lifestyle improvements and health enhancement through professionally administered spa services. so we are willing to continue to increase the longevity and improve the quality of life of many customers.000 establishments Spa care industry. In addition. nutritional advice on a residential basis.Rs5. physical fitness. Although hospitals constitute only 2 percent of all health care establishments. such as less invasive surgical techniques. Industry analysis 2. staffing patterns.000 Envision Software & Equipment . About 76 percent of Spa care establishments are offices of physicians.

3. although clients will normally supplement out-ofpocket Individuals with medium disposable income Sometimes have chronic pain or old injury issues Massage 1 . Chiropractor. Extended hours will capitalize on those who want an appointment on their way home from work. Naturopath. acupuncture.000. Clients pampering themselves Massage Therapy. Clients who prefer alternative health care Use massage as preventative health care Use other alternative practices .e.7 computers to maintain and track customers who are unaware of us as well as star beyond our competitors and any threat. Within Coimbatore approximately 14% of the population has never tried a massage. Our secondary market will include visitors staying in a local hotel. 2. Our market Analysis table thus reflects 70% of the local and visiting population who might be targeted.2 Buyer behavior Within this task. etc.4 times a month for relaxation Huge anti-aging and beauty market potential Traffic continues to be a huge problem in Metropolis and our therapies are valuable for this segment of the population Local hotels that do not offer spa services will be able to refer to our local facility or use our out-call services.g. Herbalist.usually once per month Commuters in Metropolis suffer through some of the worst traffic in the country. As the population grows. if offered appealing services at the right price.1 Market Analysis Marketing segmentation and target market selection We are primarily targeting potential clients within our facility’s zone with a household income over Rs5. We will assume that a conservative 70% of these two categories has tried a massage and would undergo one again. clients who use spa services fall into four basic groups: 1. insurance will pay for short-term therapy only. Try to have massage as regularly as they can afford . and facial treatments (We have a contact of professional referral in area) Often also seeing a chiropractor or physical therapist (more often referral from chiropractor) In some case. 3 3. . the traffic worsens and the need for massage therapies increases.

spa services.Charities. No men are allowed at Ravanda Spa. There is not one direct competitor of this nature within the area where we are intending to locate. either. women's groups. The Siam Hotel also offers massage treatments. and our personnel plan. A list of . The closest competitor is the Leelawadee Spa which is a Hair salon that offers additional. 3. Our prices are competitive for the area. surfers.8 3. which includes using a pool of skilled.1 Position strategy and Points of differentiation Local Advertising & Seasonal Promotions . Ravanda Spa.1 Market strategy Our strategy is to implement the most aggressive marketing and networking in the community followed by the best services in the business. Local Networking . especially chiropractors. will give us a financial advantage. limited. For that reason. we will not want to participate with any health insurance that require write-off for amounts over the usual and customary fee (which tends to be too low). work current contacts and create new contacts with health care providers. When the insurance does not cover the entire amount of a service the client will pay the difference. Serious Athletes Injury and workout recovery also preventative. commissioned therapists and aestheticians. grand opening party and promotion for first 30 days. we expect to dominate Party Spa market. located in Plaza Center is not a traditional day spa but combines a day spa with a female gymnasium. local fliers. Finally. bicyclists and college athletes in the local area. The Rose Spa already has practice management software to handle medically billable massage. Most people don't know that massage therapy is usually paid by insurance when billed correctly and when prescribed by a physician. quality and an exceptional experience. Many serious runners. Continue regular advertising and plan for seasonal events like Song Grand Festival. The going rate for massage in Freeway County is Rs70-Rs90 per hour which is slightly above most of the other residential areas in Metropolis which can even be as low as Rs40 per hour in saturated or low-income areas.great for word-of mouth referrals if they see results. With our combined services.3 Competitor analysis Customers choose spa services based on proximity to their daily commute. 4 Marketing Plan 4. country clubs. Mother's Day and New Year's. 4. Also.1.Local newspaper advertising. Massage for improved performance . wedding planners. become a Provider with health insurance companies that offer Alternative Care to their members. Health Care Referrals-Prior to opening. but we will mostly cater to visitors to the area and not the local residential base.

Aroma Massage . Any opportunity to convince allopathic physicians to see massage as having long-term healing benefits for their patients will also be taken.our spa will show up on major website in Coimbatore e. Location traffic . We prefer locating near a complementary business like a nail or hair salon that does not offer any massage or facial treatments. Prior to opening. The website will have a full menu of services and eventually have the ability to schedule appointments on-line. Promotions will be offered to professionals in these industries to build relationships. The spa software we are using will allow a user to see the schedule and make and appointment without making a phone call. modern.Stone Massage 60 60 90 90 90 1200-1500 1200-1500 1200-1500 1200-1500 2700-3500 Special Treatment • Anti-stress • Facial Treatment • Royal Thai Massage 60 60 60 1300 1300-2000 1300-1500 Spa Products . Kapook.com and in the phone directory (Yellow pages).Hotels that do not offer their own spa services will send their guests to our spa or use our out-call spa services. The client will also help drive that with the physicians if they are properly educated. Online Website . and clean.It is imperative that we be located in a high-traffic strip mall that is highend.9 acceptable insurance company plans will be maintained and those clients will be able to handle massage therapy through their insurance.Swedish Massage .g. since they hold key to having massage paid for as medically necessary.com.2 Pricing strategy Products Hand Spa Foot Spa Minutes 45 60 Price 400 600 Body Relaxation • Body Scrub • Body Wrap • Massage . 4. Mthai. we will make contacts with managers and concierges at local hotels to ensure they are aware of the services available. Hotel Referrals .

Such high prices are charge for luxuries such as rooms. to offer a favorable mention of our company or services without direct payment to the publisher of the information. the price is increased. community profiles (Fackebook.3 Sales process and promotion mix We have at our disposal four major methods of promotion. Economy Pricing This is a no frills low price. The high price tends to attract new competitors into the market. Promotional Pricing Pricing to promote our services is a very common application. There are many promotional pricing including approaches such as Buy One Get One Free. 4. such as hands massage. However. For instance. Price Skimming Charge a high price because we have a substantial competitive advantage. • Advertising – we pay promotions using multimedia deliver the The Rose Spa’s message such as health magazines. While we have involved one-way communication with mass feedback opportunity for the customer experiencing that the advent of Internet such as Lotus’s website. the advantage is not sustainable. .Youtube) that allow customers to provide quick feedback. Once this is achieved.10 • • • • • • Soap Body lotion Body scrub Oil Scent candle Pot pouri (บุหงา) 200 400 400 300 50 50 We define it as several levels strategies follow: Premium Pricing We use a high price where there is uniqueness about the product or service to approach a substantial competitive advantage exists. The cost of marketing and manufacture are kept at a minimum. and particularly the news media. to encourage customers to respond or undertake some activity. Penetration Pricing The price charged for services is set artificially low in order to gain market share. this type of promotion uses third-party sources. Once other spas were tempted into the market and the services were produced at a lower unit cost. We have economy services for. Taken together these comprise the promotion mix of each method is offered while in the next section a comparison of each method of promotion is presented. the use of retail coupons with expiration dates requires customers to act while the incentive is still valid. • Public Relations – we also referred to as publicity. • Sales Promotion – we involve the use of special short-term techniques in the form of incentives. beautician courses and delivery service.

timely and economical integration of The Rose Spa into all-weather operations in Spa community. 5 Operations and Product Development Plan 5. and regulatory activities which will allow safe. Sustainability – effective service provision should depend as little as possible upon . 4. (2) communication Systems Development. the top item which determine success in business is location then a busy location at Plaza center in a thriving residential community represents our top marketing strategy. (5) Spa Services Certification Standards. 5. ultra-amenity. as it has been said. though newer technologies allow this to occur online via video conferencing or text chat. These areas are covered in the plan: (1) Technical Operations. we have done extensive market research and visited some of the best spas in and have taken ideas from the best to offer an upscale. This Services Development Plan is intended to serve our strategy and therefore indirectly to increase the The Rose Spa’s effectiveness.1 Operations plan The Rose Spa Operations Development Plan is designed to provide for upgrading and development of all those function. In developing a Services Development Plan we have built the following ideas in mind. marketing and management and delegating the massage and aesthetician therapies to employees--business profitability potential is exponentially maximized over a one or two person operation by a direct care-giver without any marketing.2 Service development plan Strategy To raise the profile of The Rose Spa this will help by improving uptake of services and increasing public consideration of customers. systems. spa experience.4 Distribution and sales If. As the owners. management or sales background. We describe a five-year development program our objectives are to improve our services System so as to enable us to utilize our unique employees’s capabilities. we are confident that we will have a return client. We are focusing on the sales. services. high-end level of personalized care that we offer. (3) Cost Control. (6) Risk reduction. (4) Weather Environment. Often this occurs face-to-face or via telephone. It includes the collection of ingredients treatment (both near and long term) for ensuring full integration into The Rose Spa of this rapidly growing segment of aviation.11 • Personal Selling – we involve personal contact between company alliance and those who have a role in purchase decisions (member of a company buying center). standards. Once a client experiences the comfortable.

Specificity – we are seeking to offer services which will appeal specifically to our clients.12 the individuals annually elected as CEO Officers. Coffee Bar Purpose The Rose Spa is looking at ways to increase involvement of workers and university students. to increase uptake of the services it offers and to attempt to make more relationship community. In pursuing these aims we would like to consider the possibility of providing a coffee bar during customer’s relaxing. This indicates that service uptake has increased. Provision of Services Purpose Significant revenue on those items upon which it does make a profit (e. Timescale . Consultation We would like to seek advice from Health officers. ingredients. Plans To implement this strategy we are developing plans in the following: Management If once plan have been agreed we will seek the advice of other relevant authorities in drawing up an operating schedule for the proper management of all our activities. as well as improving the financial viability of the activity. Staffs) Nevertheless The Rose Spa provides a number of popular and valuable member services Service Provision This view emphasizes that a range of services is available it’s not just a service material but also service mind. Long-term financial returns – we are investing now in order to establish stable and diverse income streams for the future. . has led to substantially increased turnover since the start of term (against comparable recent periods).g. We are friend this redefinition has begun . At the same time we are keen to ensure sustainability and to develop systems which will handle increased activity without consuming the time of elected us.

6 Financial analysis The following are the financial analysis. and wishes to present the plans for their information.000 Rs950 Rs4.000 Rs2.000 Rs17.000 Rs6. bags.000 Rs0 Rs5. 6.450 .000 Rs32.13 We and relevant workers are keen to actively pursue each of the activities described. for approval.000 Rs0 Rs80.1 Start up Expenses Start-up Note-Rs000lac Requirements Start-up Expenses Legal Printing.500 Rs500 Rs45.500 Rs3.545 Rs2. grand opening coupons Brochures Construction/Design Insurance Rent Research and Development Advertising Accountant Linens Other Total Start-up Expenses Start-up Assets Cash Required Start-up Inventory Other Current Assets Long-term Assets Total Assets Total Requirements Start-up Funding Rs35.095 Rs153.095 Rs0 Rs73. and for any advice which members wish to offer on the content of the plans and how best to take them forward. stationery.

095 Rs35.550 Rs35.000 Rs0 Rs0 Rs0 Rs35.095 Rs153.000 (Rs80.450 Rs73.450) Rs49.14 Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required Assets Non-cash Assets from Start-up Cash Requirements from Start-up Additional Cash Raised Cash Balance on Starting Date Total Assets Rs38.000 Rs11.455 Rs46.455 Rs84.000 .550 Rs80.000 Rs0 Rs0 Rs130.545 Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities (interest-free) Total Liabilities Capital Planned Investment Owner Investment from Sale of Home N/A Additional Investment Requirement Total Planned Investment Loss at Start-up (Start-up Expenses) Total Capital Rs130.

17% 0 6.65% 28. that there are no changes to the Medical/insurance Industry.3 Pro forma financial statement Opening Day Balance Sheet (beginning of year) Assets Liabilities and Owners' Equity Cash Rs30.65% 28.841 6.00% 0 Year 3 3 7.15 Total Capital and Liabilities Total Funding 6.65% 28.00% 5.00% 5.3. of course.000 The financial plan depends on important assumptions.00% 0 Year 5 5 7.65% 28.00% 5. without major recession. Two of the more important underlying assumptions are: -We assume a strong economy.2 Assumption sheet Rs84.1 Rs54.17% 0 Year 4 4 7. Interest rates. and personnel burden are based on conservative assumptions. most of which are shown in the following table as annual assumptions. The collection days are for insurance billings only.00% 5. General Assumptions Year 1 Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other 1 7.2 Notes Payable Receivable 00 Accounts Payable Total liabilities 000 Tools and equipment Owners' equity Rs12.0 Liabilities 00 Accounts Rs30. -We assume.550 Rs165.65% 28. We assume cash payments for all services. tax rates. . except for the 1% of sales projected as insurance reimbursements. such as the nationalization of health care.00% 5.17% 0 Year 2 2 7. with collection days at 90.

8-10 hours per day.16 Capital Stock 0 Retained Earnings Total owners' equity Total 59 Rs73. the gross margin is consistently 50% across the board.400 Year 5 Rs99.0 Total 550 Rs10.500 Rs474.644 Rs290. Keeping such a large pool of reliable massage therapists and aestheticians as we are recruiting will keep us from losing business with no-shows. with 55% of that going to the service provider.431 Year 2 Rs857.days.575 Rs946. 000 Rs84. for full days or half . The retail lines go in conjunction with the spa services as an extension of the spa experience.800 Rs518.254 Rs381. Profit and Loss projection Year 1 Sales Direct Cost of Sales Massage Therapists' commission Aestheticians' commission Out-call Services commission Total Cost of Sales Gross Margin Rs823.000 Rs19.3.000 Rs17.000 Rs74. our variable costs will exceed our fixed costs. These high-end spa services are hard to find items that generate repeat purchases.375 .2 Profit and Loss projection (12 months) Because we are paying our service-provider on commission.000 Rs24. Massage and aesthetician services are Rs65 per service minimum.340 Rs442.00 Rs20.500 Rs72.175 Rs308.750 Rs76.675 Rs425. The basis for the sales projections is a conservative estimate of 7 services per day the first month in business and 53 services per day by the end of the first year. electric.550 Rs30. especially since we will schedule our contractors. Fixed expenses are the customary: rent.250 Rs319. as much as possible. There are four main areas of income: massage.307 Rs70.200 Rs463. advertising. This keeps our overhead low.964 Rs15.000 Rs59.400 Rs22.000 Rs74.550 Rs451. rather than individual appointments.025 Year 3 Rs900.000 Rs316.925 Rs302.000 Rs73.325 Year 4 Rs86.050 Rs499. 6.685 Rs65. aesthetician retail and out call.975 Rs405. insurance. The more customer’s sales will be driven. On retail services/product.000 Rs982. and means we are paying only for hours when they actually provide services.625 Rs446. At 53 services per day we would still only be operating 75% to capacity with 7 treatment rooms operating 7 days a week.

57% Rs196.814 Rs49 Rs58.380 Rs173.705 14.132 Rs42.200 Rs3.700 Rs5.000 Rs700 Rs0 Rs1.000 Rs1. the following Cash Flow table shows The Rose Spa with a consistently positive Cash Flow.000 Rs50 Rs66. After two months.404 Rs131.721 Rs154.000 Rs8.3 Cash flow (12 months) Based on our conservative sales forecasts.180 Rs392 Rs54.430 Rs1.205 Rs209.26% 47.000 Rs50 Rs66.480 Rs183. the spa will show a consistent increase in the cash balance.900 Rs495 Rs6.612 Rs109.978 13.500 Rs0 Rs66.31% 47.530 Rs980 Rs51.100 Rs3.000 Rs5.130 Rs196.700 Rs495 Rs6.43% Rs183.096 14.107 Rs123.29% 6.000 Rs5.000 Rs167.510 Rs7. .700 Rs241.155 Rs209.400 Rs3.300 Rs3.710 Rs145.721 Rs2.045 Rs254.600 Rs495 Rs6.700 Rs250.000 Rs50 Rs66.891 Rs140.949 Rs150.35% Rs173.645 Rs155.568 Rs48.000 Rs700 Rs0 Rs1.000 Rs3.3.26% 47.245 Rs154.500 Rs0 Rs6. our draw is obviously the area of cash flow where adjustments can be made if Cash Flow becomes tight.000 Rs3.000 Rs3. Because the business is a partnership.500 Rs0 Rs1.19% Expenses Payroll Marketing/Promotion Depreciation Rent Utilities Advertising Insurance Payroll Taxes Phone Software Support Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales Rs137.800 Rs495 Rs6.190 14.90% 15.700 Rs226.845 Rs160.000 Rs3.17% 17 47.000 Rs700 Rs0 Rs1.000 Rs700 Rs0 Rs1.000 Rs3.000 Rs50 Rs66.000 Rs3.700 Rs231.Gross Margin % 46.

749 Rs4.357 Rs32.000 Rs150 Rs3.692 Rs4.263 Rs10.132 Rs32.823 Rs11.095 Rs605. within 10 working days.000 Rs100 Rs3.568 Rs10.4 Projected balance sheet The only Accounts Receivable carried is any Insurance Billings that are not paid during the month.357 Rs13.742 Rs414.868 Rs32.900 Rs474. to be conservative.3.577 Rs32.095 Rs470.095 Rs347.923 Rs2.899 Rs697.000 Rs200 Rs3.000 Pro Forma Balance Sheet Year 1 Assets Current Assets Cash Accounts Receivable Inventory Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets Rs0 Rs0 Rs0 Rs267. We have set our collection days for this small percentage of non-cash sales at 90 days.531 Rs10.18 6. Note-Rs.351 Year 2 Year 3 Year 4 Year 5 . others take more than 6 weeks to pay.850 Rs609.800 Rs760.095 Rs756.351 Rs11.301 Rs15.788 Rs4.923 Rs293. Although some insurance companies pay promptly.123 Rs12.000 Rs50 Rs1. The Balance Sheet shows a steady increase in earnings and net worth over the next five years.441 Rs32.888 Rs547.759 Rs11.151 Rs213.876 Rs14.095 Rs267.950 Rs349.

528 Rs283.35% 30.92% 6.800 Rs0 Rs60.232 Rs131.43% . Industry profile ratios based on the Standard Industrial Classification (SIC) code 7991.795 Rs26.460 Rs0 Rs66.450) Rs109.190 Rs705.749 Rs54.949 Rs555.232 Rs349.000 Rs425.788 Rs53.978 Rs159.81% Industry Profile 3.528 Rs267.232 Rs414. Spas.39% 5.99% 4.460 Rs0 Rs60.260 Rs18.95% 2.151 Year 1 Year 2 Year 3 Year 4 Year 5 Net Worth 6.328 Rs474. Ratio Analysis Year 1 Sales Growth Percent of Total Assets Accounts Receivable Inventory Other Current Assets 3.277 Rs705.096 Rs414.328 Rs555.705 Rs283. and return.460 Rs130.50% 0.19 Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Paid-in Capital Retained Earnings Earnings Total Capital Total Liabilities and Capital Rs81.25% 9.78% 4. of course.02% Year 4 5.528 Rs123.64% 11.08% 3. We expect to maintain healthy ratios for profitability.04% Year 3 5.683 Rs130.400 Rs0 Rs54. not as favorable as the second year.11% Year 5 3.4 Ratio analysis Rs159.000 (Rs80.0103.395 Rs0 Rs108.072 Rs1. are shown for comparison.05% 4.000 Rs284.22% 4.467 The following table shows the projected businesses ratios.18% 2.683 Rs0 Rs54.76% 1.472 Rs130. risk.200 Rs0 Rs66.467 Rs760.26% 1.683 Rs0 Rs0 Rs54.395 Rs130.692 Rs50.000 Rs153.460 Rs130.49% 1. The ratios for the initial year of growth are.660 Rs9.277 Rs150.923 Rs48.472 Rs0 Rs54.18% 2.600 Rs0 Rs108.277 Rs609.328 Rs140.000 Rs29.00% Year 2 4.98% 3.

37% 0.29% 1.12 10.01% 20.12 2.00% 0.00% 19.00% 100.94% 5.17% 0.80 12.00% 100.00% 100.56% 99.30% 100.54% 19.46% 95.81% 100.73% 0.90% 61.90% 25.17 2.57% 31.44% 0.29% 21.17 2.11% Year 4 14.00% 40.07% 2.93% 35. General & Administrative Expenses Advertising Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Pre-tax Return on Net Worth Pre-tax Return on Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Accounts Receivable Turnover Collection Days Inventory Turnover Accounts Payable Turnover 100.39 143 6.23 5.00% 7.43% 43.31% 90.64% 11.a n.99% 0.00% 40.01% 0.a n.79 7.00% 100.17 n.56 12.19% 29.50% 20 38.00% 0.82% 99.46% 0.00% 100.23% 47.26% 94.00% 100.00% 46.93% 0.82 58.44% Year 3 14.51% Year 5 15.64% 27.a n.a 2.01% 60.95% Year 1 13.39 77 10.66% 49.63% 99.39 157 6.07 12.00% 100.15 7.00% 100.83 13.68% 7.38% 13.01% 20.35% 68.00% 100.06 19.43% 10.46% 59.07% 7.83% 4.63% 25.50% 0.00% 100.10% 100.76% 4.00% 69.74% 47.59% 2.04 12.39 148 5.a n.65% 56.Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Sales Sales Gross Margin Selling.78% 47.39 156 5.47 2.18% 0.00% 8.39% 47.27% 8.01% 80.28% 0.19% 0.17 2.00% 18.86 8.05% 38.01% 20.93% 91.73% 87.19% 92.76% n.25% 32.70 12.a .99% 12.01% 21.36% 0.73% 44.00% 99.13% Year 2 14.00% 0.36 40.26% 90.00% 20.17 0.37% 46.00% 12.55 7.00% 54.19% 0.

151.282 Rs410. This business plan has documented that the establishment of The Rose Spa is feasible.5 1. for linens.07 21 40 2.840 665. and financial analysis support this conclusion. marketing analysis.59 110.528 Rs281. We invite you to attend our grand opening. All of the critical factors such as industry trends.Payment Days Total Asset Turnover Debt Ratios Debt to Net Worth Current Liability to Liability Liquidity Ratios Net Working Capital Interest Coverage 6. ingredients. 1.23 1.00 0.730 Variable Costs Fixed Costs Contribution per service ( average price of service that 1 customer would use) Break-Even in number of customers Summary: The Rose Spa will be successful.68 1. competitive analysis.4 72.45 1 0. We promise that we will make the experience.160 1.”The Rose Spa”-Feel Relax .568.00 0 1 Rs159. management expertise. We should surpass the break-even point by month four of operations. Our variable costs include both the direct costs shown in the Sales Forecast table. equipment.57 187 The break-even analysis table shows what we need to make in sales to meet costs.5 Break Even Analysis 27 3. Contribution Margin and Break-even Analysis  Assume that variable cost is 30% of total revenue. but also include the commissions paid to contracted massage therapists and aestheticians.

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