BluDayz Spa

BluDayz Spa

Business Plan

Group members:

Yanique Gardner 0805659

Vernon Davis 0603118

Yannick Harvey 0704853

Rochelle Edwards 0801946

Theo-Jordan Cousins 0803154

In partial fulfillment of the requirements for MAN 3006

Mrs. David Rowe

May 16, 2011

1

BluDayz Spa

Table of Contents

Executive Summary ................................................................................................................................3

Description of the Business .....................................................................................................................5

The Marketing Segment.........................................................................................................................11

The Research, Design and Development Segment.................................................................................16

Manufacturing Segment .........................................................................................................................17

Operations and Management Segment ...................................................................................................18

The Financial Segment ....……………………………………………………………………………...19

Risk Identification and Management ......................................................................................................28

Milestone Schedule Plan .........................................................................................................................29

Appendix .................................................................................................................................................32

References ...............................................................................................................................................37

2

BluDayz Spa

Executive Summary

BluDayz Spa is a service that was established to help the average university student to have

a calm, neutral and relaxing environment which students can have peace of mind, with a complete

spa experience. BluDayz Spa seeks to adhere to our mission and use our vision statement as a

guide to provide superior service to our customers in a cool and friendly atmosphere. It aims to

provide a number of services, which include; therapeutic massages, facials, tanning, pedicures,

waxing and manicures for all at reasonable prices for all types of customers. We offer massages in

a variety of traditional styles for example Swedish Massages, Deep Tissue, Hot Stone Massages,

Reflexology, pregnancy, sports and others. We also offer special facial and body treatments, for

example our dedicated Vitamin C Antioxidant Facial and Radical Treatment. BluDayz Spa will

have three locations with two located in other countries aside from the home country Jamaica. The

other countries are Barbados and The United States of America. Our headquarters in Jamaica will

be established on The University of Technology Jamaica’s campus, situated within the Student

Activity Center, otherwise known as The Barn. In Barbados we will be positioned on The

University of West Indies Cave Hill campus. Our third operation will be located in Miami, Florida

in Florida International University’s Graham Center.

The following persons, Rochelle Edwards, Vernon Davis, Yannick Harvey, Yanique

Gardner and Theo-Jordan Cousins, incorporated the service. The strategy, which will be employed

by the company to give the product a competitive advantage, is a cost leadership strategy. The

financial plan outlines the financial developments of BluDayz Day Spa. BluDayz expects to

raise much working capital from each partner, family/friends, and credit unions and to borrow

3

BluDayz Spa

guaranteed small business loans from a financial institution as indicated by the Source of

Funds Table. These funds provide the bulk of the current financing that is required by the

business. Within two to three years, it is hoped that the company will be able to expand its

operations to the other locations. By this time we will be taking bigger loans from financial

institutions to support this expansion. After identifying the prices for the services offered by the

competition and careful analysis of the market, we were able to forecast our monthly sales as

seen in our Income Statement. Blue Days Day Spa will aim its marketing efforts and products to

satisfy the age groups of 18-35 and 35-60. To complement or marketing campaign, we will be

strategically located on three college campuses, The University of Technology Jamaica (UTECH),

Florida International University (FIU) in Miami and The University of the West Indies (UWI)

at Cave Hill, Barbados. Our Service aims to satisfy the needs of students and lecturers whether full

time or part-time. BluDayz stands to gain a market share of 20% in Miami, 30% in Jamaica and

90% in Barbados within the first 3 years of operation. In Jamaica we have identified our closest

competitor to be Diva Salon and Spa located within the Sovereign Centre. We have yet to identify

any close competitor in Barbados within close proximity of the UWI campus. Our most serious

competition in the US is located on FIU’s campus, called the Waves Spa. We plan to utilize a

competitive pricing strategy in our Papine and Miami locations, to become the cost leaders, so as

to secure a larger or equal share of the market. We will use a mark-up pricing strategy for our

Barbados branch. Prices for all of our services will be raised annually by at least 10%.

4

BluDayz Spa

Description of the Business

Company Name: BluDayz Spa

Addresses: 237 Old Hope Road, Kingston 6, Jamaica West Indies

University of the West Indies Cave Hill, St. Michael, Barbados PO Box 64 Bridgetown Barbados, West Indies

Waves Spa FIU, 11200 SW 8th Street, Graham Center 1241, Miami, FL 33199

Telephone: 1-888- BluDayz (7885986) – Toll Free

Jamaica - Tel: (876) 927-1846-8 | Fax: (876) 977-4377

Barbados - Tel: (246) 412-3065 | Fax: (246) 438-4567

Miami - Tel: (305) 348-0075 | Fax: (305) 336-4457

Mission: BluDayz’s mission is to run a profitable business by providing high-end

therapeutic massage and skin care services in a caring and student friendly

environment.

Vision Statement: BluDayz seeks to provide highly skilled, well trained, competent, friendly

staff, a cozy atmosphere and to be industry leaders in providing the best day

spa service of choice through our consistent pursuit of excellence in all that

we do. We seek to keep our integrity and gain the trust of our customers, be

admired for our innovations, respected for our business practices and

recognized for our success.

Motto: "We establish great values and quality, while satisfying the needs of our

customers"

5

BluDayz Spa

Slogan: “We will take the blue out of your day”

Rationale of the

Business Plan: This plan gives detailed description of a new business/existing idea with

additional features, including the company's product and service, our

marketing plans, financial statements and projections and management

principles. This document outlines BluDayz’s expected course of action for

a specified period and includes a detailed listing and analysis of risks and

uncertainties.

Objectives

Achieve over 8 million dollars in annual sales in our first year of operation in Miami.

Achieve at least $1,200,000 in sales each month in our first year of operation.

Have a local client return rate of 90% by the end of the first six months.

Become an established community Spa destination within our first two to three years of operation in Jamaica.

Perform at least 60 services per day by the end of the first year of operation in Jamaica.

BluDayz Spa Strategic Plan provides a holistic framework which includes the vision and mission of the firm which act as pillars for the attainment of the company’s financial & strategic objectives. These objectives will be used to provide focus, guidance and a source of measurement for BluDayz Spa’s success and sustainability in the local and international market. Our strategy is to implement the most aggressive marketing campaign and networking within each community, followed by offering the most unique services in the business. Our prices are competitive for the each of our locations, and our personnel plan, which includes using a pool of skilled, commissioned therapists and aestheticians, will give us a considerable advantage.

 Our core values make us who we are. We believe in treating every person with the greatest care and respect. We believe that we have the capability to help our clients look and feel their very best even on their worst of days. It is the belief of BluDayz that our customers' needs are of utmost

6

BluDayz Spa

importance. Our entire team is dedicated to meeting those needs. As a result, we hope to develop brand loyalty to retain repeat customers and referrals.

We would also like to welcome the opportunity to earn the trust of customers and deliver the best service in the industry. As part of our guiding principles we believe that there is no responsible substitute to doing commerce other than through environmental sustainability.

Products and Services Offered:

Therapeutic massages:

Swedish Massages

Deep Tissue

Hot Stone Massages

Reflexology

Other types of massages

Facials:

acne facial

anti-aging facial

back facial

custom facial

exfoliating facial

fruit-acid facial

galvanic facial

men's facial

oxygen facial

sensitive skin facial

signature facial

teen facial

7

BluDayz Spa

Pedicures:

Regular pedicure

Spa pedicure

Paraffin Pedicure

Stone Pedicure

French Pedicure

Mini Pedicure

Athletic Pedicure

Champagne or Wine Pedicure

Ice Cream Pedicure

Hot Stone Pedicure

Manicures:

French Manicure

Paraffin Manicure

Spa Manicure

Hot Stone Manicure

8

BluDayz Spa

Tanning

Tanning bed for our Miami and Barbados locations (UV and spray-on)

Waxes:

Regular Bikini

Full Bikini

French

Brazillian

Gel Wax

Paraffin Wax

We also offer gift certificates, student specials, wedding and holiday specials and packages.

All three locations were carefully selected based on the size of each student body and their

need for an affordable day spa that would be able to cater directly to their needs, with a variation

of different products being offered. Each location was properly selected with enough space to

accompany these operations.

As far as key inputs, BlueDayz spa will be supplied by three different suppliers because of

the locations and too lower the cost expected when exporting. In Barbados BluDayz will be

supplied by body and beyond, in the Florida we will be supplied by cosmetics beauty supplies and

in Jamaica BluDayz will also be supplied by Cosmetics beauty supplies of Florida. The businesses

9

BluDayz Spa

are also supplied on a monthly basis or in any case if supplies are low. Supplies will not take more

than two days upon days of ordering.

Contingency Planning

Difficulties and Risks:

Generating sales throughout the day

A slow first and second quarter could have a significant effect on Cash Flow

Construction taking place around each location, may significantly affect customer traffic

Worst Case Scenarios:

Determining that the business cannot support itself based on day-to-day operations

Liquidation of equipment and supplies to cover liabilities

10

BluDayz Spa

The Marketing Segment

Target Market

Blue Days Day Spa will aim its marketing efforts and products to satisfy the age groups of

18-35 and 35-60. To complement or marketing campaign, we will be strategically located on three

college campuses, The University of Technology Jamaica (UTECH), Florida International

University (FIU) in Miami and The University of the West Indies (UWI) at Cave Hill, Barbados.

Our Service aims to satisfy the needs of students and lecturers whether full time or part-time.

Females pre-dominantly go to spas, so we will be focusing on getting more males to come by

offering services that they can utilize. Students who live on campus are our primary focus, because

they are there for most of the time and will account for most of our daily customer visits. Utech

has a population of 11,000 students, UWI Cave Hill has a population of 10,000 and FIU has over

40,000 students enrolled on each of their respective campuses. As far as lifestyle, most students

will spend time outside of classes, studying, partying and hanging out with friends whether on or

off campus. Out of our sample size of about at least 20,000 people have used a day spa before.

Market Segments

Age

The market was segmented into the age groups of 18-35 and 35-60. Young teens, middle aged are

the main targets.

Gender

We will target both male and female.

11

BluDayz Spa

Education

We will target college and university students.

Income

We will target low, medium and high income earners.

Marital Status

We will cater to single and married couples.

Lifestyle

We will cater to the conservative, exciting and trendy.

Class

We cater to all classes of customers, whether lower, middle or upper.

Market Position

To position our brand above the competition we plan to offer differentiated products from the

competition by capitalizing on their weaknesses. We plan to advertise all products catered to the

age groups with which we plan to target. We will solicit feedback from our customers regarding

what services they would like to be offered apart from the typical spa format. From our research

we found that there was a niche in the market for special types of massages that needed to be

filled. We thought that this particular aspect of our product would position us to be distinguishable

from the competition. What makes our product unique is the fact that we offer a variety of

12

BluDayz Spa

products and special services, different from our competitors. We will automatically position

ourselves as the top competitor in the Cave Hill area. Bearing in mind that none of the other

competitors in Jamaica and Miami will offer the range of services that we will, or that their quality

of staff training, and that there are not any day spas that offer the same kind of services that we do

in our target locations, we will be able to provide services to a portion of these markets not

currently being tapped.

Customer Profile(s)

Age Between 18 and 60

Sex 86% Female and 14% Male

Income Between $30,000 and $ 100,000

Quoted in Jamaican Dollars

Occupation Student, office worker, lower to mid

level management

Education Varying educational backgrounds

Geographic Jamaica, Barbados, United States

13

BluDayz Spa

Market Share

BluDayz stands to gain a market share of 20% in Miami, 30% in Jamaica and 90% in

Barbados within the first 3 years of operation. In Jamaica we have identified our closest competitor

to be Diva Salon and Spa located within the Sovereign Centre. We have yet to identify any close

competitor in Barbados within close proximity of the UWI campus. Our most serious competition

in the US is located on FIU’s campus, called the Waves Spa. We plan to utilize a competitive

pricing strategy in our Papine and Miami locations, to become the cost leaders, so as to secure a

larger or equal share of the market. We will use a mark-up pricing strategy for our Barbados

branch. Prices for all of our services will be raised annually by at least 10%.

Distribution Channels

Direct Sales

By the use of a direct sales channel we will be able to sell directly to the end-user.

Sales Representatives

We will use sales representatives to walk around each campus, to advertise or products and

offer samples of the type of creams and oils we will use in the massage process.

Market Information and Studies

SWOT ANALYSIS

Strengths

Quick and efficient response to customers

14

BluDayz Spa

Customer care

Our lead consultant has a strong market presence

Ability to change marketing direction, if we encounter problems in marketing

Weaknesses

The company has no market presence or reputation

Very small staff

Unreliable cash flow in the first months of operation

Vulnerability in replacing sick staff members

Opportunities

Business sector is in an expansion phase with more opportunities for success

Local government and subsidies encourage and backing small businesses

The competition may be slow to adapt to new technology.

Threats

Changes in market and technology may limit our ability to adapt

Larger competitors may wipe out our position in the market

Focusing on areas that do not need attention other than critical areas.

15

BluDayz Spa

The Research, Design and Development Segment

Our most unique product offering would be our tanning services that we offer in our Miami

and Barbados locations. Many young people especially in Miami are obsessed with tanning,

despite the possibility of getting skin cancer. There has been a new surge in spray-on tanning beds,

which we plan to, utilize in operations apart from the regular UV tanning beds. With new

technology being developed, we will work closely with tanning bed manufacturers, ETS Tan to

develop a tanning bed that will limit the effects on the skin. Every tanning bed from ETS Tan is

put through a minimum of 29 quality tests before it is boxed and sent. Random units are put in

their own on-site life testing room to ensure maximum effectiveness and safety. They also their

own state-of-the-art irradiance testing equipment to assure that customers are getting the maximum

UV out of each session and pinpoint the accuracy in accordance with regulatory guidelines. All

prototype tanning beds are put on a 24-hour cycling machine that puts each bed through a series of

on-off cycles; including raising and lowering the canopy to ensure that the unit will last for years.

They do this because they are committed to continual improvement of the overall quality of the

equipment. All ETS designed tanning beds not only meet and exceed UL and FDA standards, but

every piece of equipment is actually listed in the ETL reference book. This means that they adhere

to the strictest ETL rules for customer protection.

16

BluDayz Spa

Manufacturing Segment

BluDayz Spa’s main headquarter is located at University of Technology in Kingston

Jamaica. Its international subsidiaries are strategically located in and around the Caribbean region

one location is the University of the West Indies Cave Hill Barbados and the other in Florida

International University, Miami, Florida. The reason why we choose these universities are

because, upon our research we have found that few if any universities worldwide provide the

services that we are introducing, another fact is that we are positioned in close proximity to our

target market, all countries are English speaking countries, cultures are also very similar and up on

further research, work ethic is very much also the same so it will not be a problem for our

expatriates to adjust to their assignments.

Tax rates are much higher in the Caribbean countries than in the United States. In fact Florida

takes 5.5% out of total sales income; Jamaica and Barbados both take 15-25% tax rate on total

income of sales. In contrast Florida’s minimum wages are at $7.25 an hour, Barbados with $4.00

an hour and.

At each location the spas will consist of 4 rooms, a receptionist area, and a lounge area. Of the four

rooms, two will consist of two massaging tables and the other two will accommodate only one.

Tanning beds will be in two rooms, with about four tanning beds total. Each room will have its

own multi-functional facial beauty machine, hot towel machine, stone warmer, wax warmers and

manicure & pedicure tables. All of the services will be conducted in closed rooms to ensure

privacy. The main lounge will consist of three comfortable couches, a reading area, coffee machine

and a snack bar. A television will also be placed in the main lounge for entertainment purposes.

Located in the lounge area are the receptionist table and a main office which will house the general

17

BluDayz Spa

manager and the accountant. For sales and bookings we will apply the use of a computer software

called Milano. This software makes it easier for spas to simplify bookings, inventory management,

booking optimization and head office management. There is also a call centre which provides

BlueDayz’s customers with help on any difficulty that customers experience with our services.

Also, automated reports and sales are recorded automatically of day-today transactions.

Operations and Management Segment

The company hopes to adapt variations of a partnership and a limited liability company for

each location, because of their simplicity and flexibility. Tax treatments are flexible; there are no

shareholders involved or other managerial formalities. Money for capital will come from personal

funds of partners, family, friends and lending institutions. Staffing for each location will be twelve.

Each location will have its own general manager, one receptionist, two manicurists/pedicurists,

two aestheticians, three massage therapists, two electrologists and one independent contractor.

We’ll employ the services of spa consultants Spa Advisors Incorporated for all three locations. For

compensation, we plan to use a commission-based system to encourage workers to be aggressive

and ambitious and a salary based system to ensure the building of customer relationships. An

accountant will be hired to oversee the day-to-day book-keeping of the company and monthly

audits will be done by an auditing firm to ensure consistency of records.

18

BluDayz Spa

The Financial Segment

Our main sources of funding will come from the personal funds, family and friends and

through bank and credit unions, illustrated in the table below:

  TABLE: SOURCES OF FUNDING       1 PERSONAL FUNDS:                   

   Rochelle Edwards $800,000.00    

    Vernon Davis $900,000.00        Yannick Harvey $850,000.00    

   Theo-Jordan Cousins $800,000.00    

    Yanique Gardner $750,000.00          Total $4,100,000.00     

2FAMILY AND FRIENDS        

    Family/Friend #1 $1,000,000.00        Family/Friend #2 $500,000.00        Family/Friend #3 $600,000.00          Total $2,100,000.00     

3BANK/CREDIT UNION LOANS        

    Bank $450,000.00        Credit Union $ 100,000.00          Total $550,000.00        

     GRAND TOTAL $6,750,000.00  

List of capital equipment for each country:

19

BluDayz Spa

TABLE : CAPITAL EQUIPMENT LISTUnited States (USD)

ITEM PER UNIT QUANTITY TOTALMassage tables & equipment $379.00 3 $1,137.00Chairs $179.00 10 $1,790.00Shelving $300.00 4 $1,200.00Fax Machine $125.95 2 $251.90Flat bed scanner $195.00 2 $390.00Decor and Furnishings $11,000.00 2 $11,000.00Computer Software & equipment $1,000.00 1 $1,000.00Facial equipment $3,000.00 4 $12,000.00Tanning Beds $3,000.00 4 $12,000.00Waxing Equipment $200.00 8 $1,600.00Manicure and Pedicure Material $1,000.00 8 $8,000.00Wireless Router $69.99 1 $69.99Magazine Stand $90.00 2 $180.00Salaries $205,000.00   $205,000.00    TOTAL $255,618.89

TABLE : CAPITAL EQUIPMENT LISTJamaica (JMD)

ITEM PER UNIT QUANTITY TOTALMassage tables & equipment $32,286.42 3 $96,859.27Chairs $15,248.73 10 $152,487.33Shelving $25,556.54 4 $102,226.14Fax Machine $10,729.49 2 $21,458.97Flat bed scanner $16,611.75 2 $33,223.50Decor and Furnishings $937,072.99   $937,072.99Computer Software & equipment $85,188.45 1 $85,188.45Facial equipment $255,565.36 3 $766,696.09Waxing Equipment $17,037.69 8 $136,301.53Manicure and Pedicure Material $85,188.45 6 $511,130.72Wireless Router $5,962.34 1 $5,962.34Magazine Stand $7,666.96 2 $15,333.92Salaries $2,000,000.00   $2,000,000.00    TOTAL $4,863,941.26

20

BluDayz Spa

TABLE : CAPITAL EQUIPMENT LISTBarbados (BBD)

ITEM PER UNIT QUANTITY TOTALMassage tables & equipment $758.00 3 $2,274.00Chairs $358.00 10 $3,580.00Shelving $600.00 4 $2,400.00Fax Machine $251.90 2 $503.80Flat bed scanner $390.00 2 $780.00Decor and Furnishings $22,000.00   $22,000.00Computer Software & equipment $2,000.00 1 $2,000.00Facial equipment $6,000.00 4 $24,000.00Tanning Beds $6,000.00 4 $24,000.00Waxing Equipment $400.00 8 $3,200.00Manicure and Pedicure Material $2,000.00 8 $16,000.00Wireless Router $139.98 1 $139.98Magazine Stand $180.00 2 $360.00Salaries $410,000.00   $410,000.00    TOTAL $511,237.78

Projected Income Statement for 3 Years:

TABLE : PROJECTED INCOME (3 YEAR) SUMMARY 2011 - 201 3 Jamaica

2011 2012 2013 TOTAL 

SALES 8,112,025.19 10,160,311.55 12,725,790.22 30,998,126.97 

OPERATING EXPENSES   

Owners' salary $1,065,593.37 $1,172,152.71 $1,289,367.98 3,527,114.05 Employees salary $360,000.00 $396,000.00 $435,600.00 1,191,600.00 Rent $1,617,916.63 $1,779,708.30 $1,957,679.13 5,355,304.06 Advertising $255,359.85 $280,895.83 $308,985.41 845,241.09Utilities $425,599.75 $468,159.72 $514,975.69 1,408,735.16Supplies $851,199.49 $936,319.44 $1,029,951.38 2,817,470.31Telephone $127,679.92 $140,447.92 $154,492.71 422,620.55

21

BluDayz Spa

Legal/Accounting Fees $580,963.00 $639,059.30 $702,965.23 1,922,987.52Loan Payment $1,042,878.78 $1,147,166.65 $1,261,883.32 3,451,928.75Repair/Maintenance $800,464.16 $880,510.58 $968,561.64 2,649,536.38Auto/Travel Expenses $1,404,794.56 $1,545,274.01 $1,699,801.41 4,649,869.98Marketing/Promotion $138,399.62 $152,239.58 $167,463.54 458,102.73TOTAL EXPENSES $8,670,849.12 $9,537,934.03 $10,491,727.43 $28,700,510.58

       INCOME/(LOSS) -$558,823.93 $622,377.52 $2,234,062.79 $2,297,616.38

TABLE : PROJECTED INCOME (3 YEAR) SUMMARY 2012 - 2014Barbados

2012 2013 2014 TOTAL 

SALES 1,647,370.00 2,063,330.93 2,584,321.98 6,295,022.91 

OPERATING EXPENSES   

Owners' salary $260,000.00 $286,000.00 $314,600.00 860,600.00 Employees salary $60,000.00 $66,000.00 $72,600.00 198,600.00 Rent $132,000.00 $145,200.00 $159,720.00 436,920.00 Advertising $6,000.00 $6,600.00 $7,260.00 19,860.00Utilities $10,000.00 $11,000.00 $12,100.00 33,100.00Supplies $20,000.00 $22,000.00 $24,200.00 66,200.00Telephone $3,000.00 $3,300.00 $3,630.00 9,930.00Legal/Accounting Fees $16,000.08 $17,600.09 $19,360.10 52,960.26Loan Payment $48,000.00 $52,800.00 $58,080.00 158,880.00Repair/Maintenance $72,000.00 $79,200.00 $87,120.00 238,320.00Auto/Travel Expenses $79,999.92 $87,999.91 $96,799.90 264,799.74Marketing/Promotion $15,000.00 $16,500.00 $18,150.00 49,650.00TOTAL EXPENSES $722,000.00 $794,200.00 $873,620.00 $2,389,820.00

       INCOME/(LOSS) $925,370.00 $1,269,130.93 $1,710,701.98 $3,905,202.91

22

BluDayz Spa

TABLE : PROJECTED INCOME (3 YEAR) SUMMARY 2013 - 2015Miami

2013 2014 2015 TOTAL 

SALES 823,685.00 1,031,665.46 1,292,160.99 3,147,511.45 

OPERATING EXPENSES   

Owners' salary $130,000.00 $143,000.00 $157,300.00 430,300.00 Employees salary $30,000.00 $33,000.00 $36,300.00 99,300.00 Rent $66,000.00 $72,600.00 $79,860.00 218,460.00 Advertising $3,000.00 $3,300.00 $3,630.00 9,930.00Utilities $5,000.00 $5,500.00 $6,050.00 16,550.00Supplies $10,000.00 $11,000.00 $12,100.00 33,100.00Telephone $1,500.00 $1,650.00 $1,815.00 4,965.00Legal/Accounting Fees $8,000.04 $8,800.04 $9,680.05 26,480.13Loan Payment $24,000.00 $26,400.00 $29,040.00 79,440.00Repair/Maintenance $36,000.00 $39,600.00 $43,560.00 119,160.00Auto/Travel Expenses $39,999.96 $43,999.96 $48,399.95 132,399.87Marketing/Promotion $7,500.00 $8,250.00 $9,075.00 24,825.00TOTAL EXPENSES $361,000.00 $397,100.00 $436,810.00 $1,194,910.00

       INCOME/(LOSS) $462,685.00 $634,565.46 $855,350.99 $1,952,601.45

23

BluDayz Spa

3 Year Cash Flow for each location:

TABLE: PROJECTED CASHFLOWJamaica

2011 2012 2013 TOTAL

SALES - RECEIPTS $ 8,112,025.19

$ 10,160,311.55

$ 12,725,790.22

$ 30,998,126.97

       OPERATING EXPENSSES        

        Owners' salary $1,065,593.37 $1,172,152.71 $1,289,367.98 $3,527,114.05 Employees salary $360,000.00 $396,000.00 $435,600.00 $1,191,600.00 Rent $1,617,916.63 $1,779,708.30 $1,957,679.13 $5,355,304.06 Advertising $255,359.85 $280,895.83 $308,985.41 $845,241.09Utilities $425,599.75 $468,159.72 $514,975.69 $1,408,735.16Supplies $851,199.49 $936,319.44 $1,029,951.38 $2,817,470.31Telephone $127,679.92 $140,447.92 $154,492.71 $422,620.55Legal/Accounting Fees $580,963.00 $639,059.30 $702,965.23 $1,922,987.52Loan Payment $1,042,878.78 $1,147,166.65 $1,261,883.32 $3,451,928.75Repair/Maintenance $800,464.16 $880,510.58 $968,561.64 $2,649,536.38Auto/Travel Expenses $1,404,794.56 $1,545,274.01 $1,699,801.41 $4,649,869.98Marketing/Promotion $138,399.62 $152,239.58 $167,463.54 $458,102.73

       Total Disbursements $8,670,849.12 $9,537,934.03 $10,491,727.43 $28,700,510.58

       

CASHFLOW  -

$1,425,908.84 -$331,415.88 $2,297,616.38

Beginning Balance $60,000.00 $60,000.00 -$1,365,908.84 -$1,697,324.72

Ending Balance $60,000.00-

$1,365,908.84 -$1,697,324.72 $600,291.66

24

BluDayz Spa

TABLE: PROJECTED CASHFLOWBarbados

2012 2013 2014 TOTAL

SALES - RECEIPTS $ 1,647,370.00

$ 2,063,330.93

$ 2,584,321.98

$ 6,295,022.91

       OPERATING EXPENSSES        

        Owners' salary $260,000.00 $286,000.00 $314,600.00 $860,600.00 Employees salary $60,000.00 $66,000.00 $72,600.00 $198,600.00 Rent $132,000.00 $145,200.00 $159,720.00 $436,920.00 Advertising $6,000.00 $6,600.00 $7,260.00 $19,860.00Utilities $10,000.00 $11,000.00 $12,100.00 $33,100.00Supplies $20,000.00 $22,000.00 $24,200.00 $66,200.00Telephone $3,000.00 $3,300.00 $3,630.00 $9,930.00Legal/Accounting Fees $16,000.08 $17,600.09 $19,360.10 $52,960.26Loan Payment $48,000.00 $52,800.00 $58,080.00 $158,880.00Repair/Maintenance $72,000.00 $79,200.00 $87,120.00 $238,320.00Auto/Travel Expenses $79,999.92 $87,999.91 $96,799.90 $264,799.74Marketing/Promotion $15,000.00 $16,500.00 $18,150.00 $49,650.00

       Total Disbursements $722,000.00 $794,200.00 $873,620.00 $2,389,820.00

       CASHFLOW   $853,170.00 $1,189,710.93 $3,905,202.91

Beginning Balance $16,000.00 $16,000.00 $869,170.00 $2,058,880.93

Ending Balance $16,000.00 $869,170.00 $2,058,880.93 $5,964,083.83

25

BluDayz Spa

TABLE: PROJECTED CASHFLOWMiami

2013 2014 2015 TOTAL

SALES - RECEIPTS $ 823,685.00

$ 1,031,665.46

$ 1,292,160.99

$ 3,147,511.45

       OPERATING EXPENSSES        

        Owners' salary $130,000.00 $143,000.00 $157,300.00 $430,300.00 Employees salary $30,000.00 $33,000.00 $36,300.00 $99,300.00 Rent $66,000.00 $72,600.00 $79,860.00 $218,460.00 Advertising $3,000.00 $3,300.00 $3,630.00 $9,930.00Utilities $5,000.00 $5,500.00 $6,050.00 $16,550.00Supplies $10,000.00 $11,000.00 $12,100.00 $33,100.00Telephone $1,500.00 $1,650.00 $1,815.00 $4,965.00Legal/Accounting Fees $8,000.04 $8,800.04 $9,680.05 $26,480.13Loan Payment $8,000.04 $8,800.04 $9,680.05 $26,480.13Repair/Maintenance $24,000.00 $26,400.00 $29,040.00 $79,440.00Auto/Travel Expenses $36,000.00 $39,600.00 $43,560.00 $119,160.00Marketing/Promotion $7,500.00 $8,250.00 $9,075.00 $24,825.00

       Total Disbursements $329,000.08 $361,900.09 $398,090.10 $1,088,990.26

       CASHFLOW   $461,784.91 $633,575.37 $2,058,521.19

Beginning Balance $8,000.00 $8,000.00 $469,784.91 $1,103,360.28

Ending Balance $8,000.00 $469,784.91 $1,103,360.28 $3,161,881.47

26

BluDayz Spa

TABLE : PROJECTED BALANCE SHEET USD Year 1ASSETS    

Current Assets   Cash (Working Capital) $86,000.00 Accounts Receivable   Prepaid Expenses $54,000.00 Inventory   TOTAL CURRENT ASSETS $140,000.00   Fixed Assets $511,237.78Plant and Equipment $10,128,762.22 TOTAL ASSETS   $10,780,000.00

LIABILITIES AND OWNERS EQUITYCurrent Liabilities $30,000.00Long Term Liabilities $4,100,000.00  $2,100,000.00

$550,000.00    Total Liabilities   $6,780,000.00

OWNERS' EQUITYRochelle Edwards $800,000.00Vernon Davis $900,000.00Yannick Harvey $850,000.00Theo-Jordan Cousins $800,000.00Yanique Gardner $750,000.00Retained earnings ($100,000.00) Total Owners Equity   $4,000,000.00

Total Liabilities and Owners Equity   $10,780,000.00

27

BluDayz Spa

Risk Identification and Management

Operational risks can include but are not limited to:

Failure of technology

Poor management, accountability and control

Errors in financial statements and reports

Inadequate record-keeping

Market risks can include but are not limited to:

Risk of loss due to non-payment of a loan or other line of credit

Risk arising from fluctuations in the currency exchange rates

Applying various forms of risk management procedures will help the company to handle different types of risks because a variety of risks are faced, while carrying out business operations. 

The effective handling of risk ensures the successful growth of an organization. 

28

BluDayz Spa

BluDayz Spa

Milestone Schedule Plan

The following table lists the first year milestones, with projected dates and budgets for each. The

milestone schedule indicates our emphasis on planning the implementation.

Milestone Start Date End Date

Prepare Business Plan May

1,2011

May

5,2011

Acquire potential investors and sponsors May

10,2011

May

15,2011

Prepare Budgets May

22,2011

May

25,2011

Prepare Architectural Drawings June

30,2011

June 12,

2011

Obtain approval and building permits

for Location at University of Student

Activity Center (barn)

June

20,2011

June

24,2011

Select Contractors June

25,2011

June

27,2011

Construction of BluDayz Spa July 1,2011 Sept

29

BluDayz Spa

15,2011

Logo design and brochures Sept 25,

2011

Sept

28,2011

Hire Staff Sept 25,

2011

Sept

30,211

Promotional activities and advertising Oct 1, 2011 Oct 14,

2011

Grand Opening of BluDayzUtech

Campus

Oct

15,2011

BluDayzUtech attend to clientele Oct 15

2011

Acquire second location at UWI

Cavehill campus Barbados

March 2,

2012

Prepare Architectural Drawings March

5,2012

March

8,2012

Obtain approval and building permits

for location

March 10,

2012

March 17,

2012

Select contractors and construction of

building

May 3,

2012

July 4,2012

Promotional activities August 15, August

30

BluDayz Spa

2012 30,2012

Hire staff August

15,2012

August

30,2012

BluDayz UWI in operation Sept 5,

2012

Increase promotions and advertising Sept 20,

2012

Hire additional staff Nov 1,

20122

Present proposal for location of

BluDayz at Florida International

University (FIU) campus

Dec 1,2012 Dec 7,2012

Acquire location at FIU Jan 4,2013 June

15,2013

Begin operations at FIU June

30,2013

31

BluDayz Spa

Appendix

Deep Tissue massage

Tanning Bed from ETS Tan

Swedish massage Hot Stone massage

Reflexology

Oxygen facial

32

BluDayz Spa

Exfoliating facial Galvanic facial

Paraffin pedicure Ice Cream pedicure

Champagne or Wine pedicure

French manicure

33

BluDayz Spa

Hot Stone pedicure

Full Bikini Wax

Spray-on Tanning bed

34

BluDayz Spa

Business Cards

35

BluDayz Spa

Company Logo

36

BluDayz Spa

References

How to open a salon or day spa . (2005, August 30). Retrieved from

http://www.entrepreneur.com/startingabusiness/businessideas/startupkits/article79550.html

Retrieved on May 1st, 2011

How to start day spa business. (2008, June 6). Retrieved from

http://www.spamarketingtools.com/blog/spa-ownership/how-to-start-day-spa-business/

Retrieved on May 1st, 2011

(n.d.). Retrieved from http://www.investopedia.com/

Retrieved on May 1st, 2011

37