Hanzala Spa

We will provide full services day spa described in this business proposal is a start-up venture created by a determined and dedicated individual who has 15 years of experience in the field of cosmetology. As a licensed stylist, the owner has built a large customer base due to his talents, creativity and his ability to connect with others. His knowledge and his passion have helped to create the foundation for this endeavor. He know focusing on high quality customer service, diverse offering, creative promotion strategy and continuous development of employees, our day spa is projected to increase sales to more than 1,000,000 in three years while maintaining a high gross margin on sales while strengthening cash management and working capital. A comprehensive analysis of the market indicated that the spa industry in strong and robust, generating 72 billion in annual revenues. With personal grooming and appearance being a core aspect of UK culture, the industry sustains its durability and growth by offering treatments that are difficult to replicate at home. Additionally, day spas and spa treatments are gathering more popularity due to their soothing and relaxing quality counteracting the high stress activities of everyday life.

Stat-up Summary
The table that follows details projected starting costs

Start Up
12000 10000 8000 6000 4000 2000 0 Expenses Assets Investment Loans

Start Up

The location of our day spa is highly desirable as it is based at the center of a busy downtown area with ample traffic. Within the region, the median household income is 100,33 as compared to the national average of 24,000. This factor strengthens our

location strategy as clients will have more discretional income to spend on miscellaneous spa treatments. Based on our census statistics, our regions five- year growth rate for households in projected to be at 3.16%. Our chosen target market which includes young female consumers at 4 to 28 male and females clients at 28 to 39 and individuals from the baby boom generation will account for a total of 15,342 potential customers in the first year of operations.

Market Segmentation
Our market segmentation is specific to two target groups. 1. Corporate workers, age group between 20s - 40s. 2. Recovering form an injury people The following table will outline the target marker in to two segments. Women and others, we believe that women would take advantage of our services more often than men would.
Market Analysis
Year 1 Potential Customers Women Other Total Growth 4% 5% 4.53% 400,000 450,000 850,000 Year 2 416,000 472,500 888,500 Year 3 432,640 496,125 928,765 Year 4 Year 5 CAGR 4.00% 5.00% 4.53%

449,946 467,944 520,931 546,978 970,877 1,014,922

Market Analysis

Women Other

A review of our competitors shows that we will be competing against five other establishments in a ten-mile radius of our locations. These businesses focus on different target markets, pricing structures, and marketing approaches. With our consistent, high quality services and moderate pricing, we have the edge in attracting consumers by delivering a full range of beauty and pampering treatments in one

convenient location. Our concrete marketing plan will distinguish us as a day spa of choice for consumers. In planning for our launch, we have to put together a financial plan based on forecasts for the first three years of operations including our start-up expenses estimated at 125,175. We will acquire a loan in the amount of 100,000 or 80% of the start-up costs. The owner will contribute the remaining 25,175 to meet start-up requirements.

Key Financial Indicators

Key to the financial success of Hanzal will be continued annual growth. Though we have in mind that there are times of the years, especially holidays, where sales are expected to raise substantially, annual growth is imperative. The following table will show us some statistic information.
2.5

1.5 Year 1 Year 2 1 Series 3

0.5

0 sales Gross Marge % Operating expenses Inventory Turnover

For our day spa, we will generate sales revenues by offering day spa and spa treatments along with botanical based retails products. During the first year of operations, we aim to generate 604,800 in sales revenue. For the second and third year of operations, we plan to increase sales by 30% of our capital in our second year of 1.022,111 in our third year.

Project Selection Criteria

Customer impact Will the successful outcome of the project have a material impact on

customers (internal or external) perceptions of quality Process stability Is the process relatively stable Defect definition Is the process defect well defined Data availability Is data available around the process metrics Solution clarity Is the solution already known Benefits An appropriately vetted cost-benefit analysis should demonstrate the value of the project Impact on service quality Project sponsorship The level of project sponsorship is often the difference between project success and failure. Project alignment Does the project align with corporate strategic objectives . Project timeline Can the project be completed within a reasonably short time period Probability of implementation Practitioners should consider the probability of actually implementing a solution Investment Will the costs to fix the problem likely include large cash outlays or capital investment Team availability This takes into account the amount of time key team members have to support this project, especially if they are also responsible for other day-to-day functions. Process redesign Because these criteria are designed to limit project options to those that can be improved(isixigma,2011)