Business Plan for SPA.docx

IntroductionHeritage Day Spa is a new healthy living day spa located in University Malaysia Kelantan. Primarily a day spa, we offer professionally administered spa treatments and services.We will provide treatment rooms that are enriched with the highest quality spa treatment tables and artistic equipment available. We have specialists who are well-trained in different styles of massage. The Heritage Day Spa is a true sanctuary where you can enjoy the natural environment, while rejuvenate your body and soul with the sensual healing touch of aromatherapy massages. It creates a unique treatment concept that blends traditional cultural therapies with a balanced philosophy of health and well-being. We will offer a complete wellness package with all the essential services to support the health and relaxation of our client.

Business BackgroundHeritage Day Spa brings the meaning of something that is passed down from preceding generations; a tradition. We hope that the Heritage Day Spa can pass down to next generation with good reputation. Heritage Day Spa currently is located inside City Campus, University Malaysia Kelantan, Pengkalan Chepa, 16100 Kota Bharu, Kelantan.Heritage Day Spa is organized by 4 members and 1 massage therapist. Our purpose is to fulfil the wants of the customers through offer the best service of massage therapy. This business plan will highlight the progress from spa launch day and follow up with forecast for the next three years. Our primary goal is to secure the funding necessary to launch this exceptional concept spa.Target clientele includes women and men in the age group of 20 - 65, middle class person, include lecturer and student. They are appreciative and quite loyal for visit spa treatment. They want to release their stress and feel their best. They are able to afford most anything, want the best available, and are willing to pay with reasonable price.Our competitive edge lies in the fact that we offer a whole body educational approach to beauty, health and wellness. We are the only spa in the area to approach beauty through healthy living, "Wellness Is Our Thrust!"Our location is an advantage as we are located in the University with the multi-flow of population. The income level of customer also come from different level so we can target few range of customer and provide different type of package. Our long term goal is to expand the line of treatments and services we offer to align with the industry trend of transforming the day spa into a holistic retreat for the mind and soul.

Background of PartnershipNameDanny Ong Xiang Zheng

Academic QualificationPh.D (Management)

Experience Previous Spa Director of Asia Spa

Position in SpaSpa Director

NameChung Wei Yi

Academic QualificationB.E (Health Entrepreneurship) Hons.

Experience Previous Spa Assistant Manager of The Banjaran Hotsprings Retreat

Position in SpaSpa Supervisor

NameChong Kar Yoong


Experience Previous Spa Massage Therapist of Cyberview Lodge Resort & Spa

Position in SpaSpa Assistant Supervisor (Financing)

NameAzrawanti Binti Jamil


Experience Previous Spa Massage Therapist of Tanjong Jara Resort

Position in SpaSpa Assistant Supervisor (Marketing)

NameRihana

Academic QualificationDiploma in Spa Aesthetics Therapy in Beaubelle Aesthetics Academy

Experience Previous Trainee in The Spa Village at the Ritz-Carlton KL

Position in SpaSpa Therapist

Administration Plan

ObjectivesThe objectives for Heritage Day Spa are: Continually increasing sales revenue. Net profit by end of second year. Have a client retention rate of 85% by end of first year. Establish ourselves as a community destination.

VisionHeritage Day Spa is a place where minds, bodies, and spirits are relief, where customer well-being is our first priority and our reputation for the highest-quality professional spa services assures customer get the best treatment experience.

MissionOur Roadmap starts with our mission, which is enduring

Our Keys to Success Professional staff with advanced training in several healing modalities. Establishment of a reputation for attending to the individual needs of each customer, every visit. Comfortable environment with natural theme decoration. Launch effective and directly public relations with word of mouth campaigns.

Location of the Heritage Day Spa

Organisation ChartSpa DirectorDanny Ong Xiang Zheng

Spa Supervisor Chung Wei Yi

Spa Assistant Supervisor (Finance)Chong Kar Yoong

Spa Assistant Supervisor(Marketing) Azrawanti Binti Jamil

Massage TherapistRihana

Task and Duties of OrganizationSpa DirectorThe Spa Director, Danny Ong is in charge to plan and monitor the strategic progress of the business and arrange organization chart to present the position of the organization partners. Besides that he has to assign tasks and duties to the all member of organization. Danny will be more concern on the overall performance of the spa and these task will be assist by other partnership holder.

Spa SupervisorThe Spa Supervisor, Chung Wei Yi responsible to understanding all sales departments' financial data as well as strong customer relations skills. Their duty is to finding customer to consume our spa services. Furthermore, she needs to attend to the customer complaints, ensuring that a high level of customer satisfaction is obtained.

Financial ManagerThe Financial Manager, Chong Kar Yoong need to determine the total project costs that needed, choice of sources of financing and preparation of financial projection in terms of statements, which include cash flow, income statement and balance sheet. For instance, Financial Manager also needs to list out the capital, expense and total revenue and expected the net profit that will gain from the services.

Marketing ManagerThe Marketing Manager, Azrawanti Binti Jamil need to fulfil the needs and wants of the UMKs students by providing good quality of products or services to them. Azrawanti need to formulate, direct and coordinate marketing activities and policies to promote spa services, Hence she needs to identify the market target, sales strategic, and promotion strategic before starting the spa business.

Massage TherapistThe Massage Therapist, Rihana need to treat customer by using touch to manipulate the soft-tissue muscles of the body. With the touch, therapists relieve pain, help rehabilitate injuries, improve circulation, relieve stress, increase relaxation, and aid in the general wellness of clients.

Schedule of RemunerationPositionNumberMonthly Salary (RM)EPF (13%) (RM)SOCSO (RM)Total (RM)

General Manager12500.00325.0044.652869.65

Human Resource Manager12000.00260.0035.852295.85

Finance Manager12000.00260.0035.852295.85

Operation Manager12000.00260.0035.852295.85

Staff11000.00130.0018.351148.35

Total10905.55

Supplier of ProductNameContact Number

Tanamera Tropical Spa+603 7842 2458

Suppliers of Equipment

Name Contact Number

Cemara Ayu+603 6201 5446

Sauna Holm Sdn. Bhd+603 6273 1689

Office Layout Plan

Administration BudgetDescriptionCost (RM)

Rental0

Legal Services6500

Salary10,905.55

Construction/Design60,000

Insurance1,800

Accounting Services950

Total 80,155.55

Marketing PlanServices ProvidedThe Heritage Day Spa will provide a rejuvenating atmosphere where customers will be able to relax both their body and mind, reconnecting with their true purpose through a wide range of holistic healing methods including massage, body treatments and foot massage.Our unique massage service is the Signature Stress Relief. Stress can create and/or exacerbate many physical and emotional conditions such as chronic fatigue, digestive upset, headaches, back pain, high blood pressure and risk of stroke. By the stress relief massage that we provided, customer can get relaxation of muscles, an increase in circulation and a reduction in stress related pain. Once the stress level is reduced, customer can reclaim the energy once enjoyed, and experience a refreshed body and mind.By using the Herbal Oil with Signature Stress Relief can get more effective result. Herbal Oil is wonderful to be used for massage. The natural warming effect from the herbs penetrates the skin to relax stressed muscles.With well trained and experienced therapists at The Heritage Day Spa, we take pride in ensuring each individual needs are met. Our guests are free to choose their desired treatments from our service menu and we will ensure you a great experience with The Heritage Day Spa.

Product Providedi. Herbal Massage Oil (100ml)Specially concocted massage oil that is painstakingly boiled with herbs that contain these properties: antibacterial, warming, stimulating blood, anti-inflammatory, astringent, natural antibiotic, and antiseptic, antispasmodic, antifungal.

ii. Green Coffee Detox Massage Oil (100ml)Firms, lifts and tone skin with the help of Tanameras Green Coffee massage oil. Infused with green coffee extract and detoxifying essential oils, Tanameras Green Coffee massage oil provides the perfect supplement for cellulite control massage. GREEN COFFEE EXTRACT (COFFEA ARABICA) is invigorating and rich in antioxidants.

iii. Brown Formulation Body Soap (125g)Made with palm kernel oil, rice, glutinous rice, Wild Ginger, Vegetable glycerin, Turmeric, Patchouli oil, Cinnamon and Vetiver. These herbs are well known for its Anti-inflammatory, anti-bacterial, skin toning and are able to help with minor rashes and itchiness.

iv. White Formulation Body Soap (100g)Made with Palm kernel oil, Rice milk, Standardized cocoa extract, Vegetable glycerin. All these extracts are wonderfully combined to help with moisturizing and softening of the skin. Specially created for dry and dehydrated skin and suitable for children.

v. Tropical Coffee Body Scrub (156g)Coffee have amazing anti-aging, astringent, deodorizing properties and is also an excellent natural stimulator that will help to improve blood and lymph circulation, release toxins and break up the fatty deposits that cause cellulite.

vi. Organic Brown Sugar Scrub Jar (350g)Infused with Ylang Ylang oil, Grape seed oil, Sunflower oil, Jojoba oil, Wheat germ oil, Virgin Coconut Oil, this luxurious formulation will help to smoothen, soften, moisturize and fragrance the skin. Its natural goodness will give a soothing effect on skin including anti-aging, anti-septic and anti-inflammatory properties.

vii. Kaffir Lime Tea (40g)Calming and refreshing, this plant is also rich in essential oils and immediately refreshes and reenergizes the body upon consumption.

viii. Lemongrass with Ginger Tea (40g)Help soothes and calm the digestive system with its light lemony taste and a hint of ginger to lift up your sagging spirit. The properties of ginger are well known while lemongrass is also known for its anti-bacterial and anti-fungal properties.

Service MenuDescriptionPrice

Green Coffee Detox Body Treatment ( 1 Hours)Due to its caffeine content, green coffee extract exhibits toning and stimulating properties, and refreshes and renews the skin. It will improve skin texture and help eliminate toxic waste from our bodyRM 45

Signature Stress Relief with Herbal Oil ( 1 Hours)An integration of soothing services. Herbal massage oil that is rich in vitamin E and A. Regular use helps maintain smooth and supple skin tone.RM 40

Organic Brown Sugar Body Scrub with basic massage (1 Hours)Its natural goodness will give a soothing effect on skin including anti-aging, anti-septic and anti-inflammatory properties.RM 55

Tropical Coffee Body Scrub with basic massage ( 1 Hours)Loaded with anti-aging properties, Coffee acts as a natural exfoliate, cleanser, astringent and deodorant and helps soothe sunburned skin.RM 55

Foot Massage ( 15 Minutes)RM 15

Foot Massage ( 30 Minutes)Applying massage at pressure points and energy meridians throughout the body to rebalance the body and target relief for certain symptoms RM 25

Infrared Sauna Treatment It penetrates the skin on a deeper level and improved detoxification properties.RM 15

Swiss ShowerUses 9 or more high-powered spray jets positioned in each corner of shower to surround the bodyRM 5

PackagePrice

Green Coffee Detox Body Treatment + Body ScrubRM 90

Signature Stress Relief with Herbal Oil + Body ScrubRM 85

*Expense above RM80 can enjoy Swiss Shower or Infrared Sauna Treatment

ProductUnit Price (RM)

Herbal Massage Oil 30

Green Coffee Detox Massage Oil 48

Organic Brown Sugar Scrub Jar 68

Tropical Coffee Body Scrub 50

Brown Formulation Body Soap15

White Formulation Body Soap15

Kaffir Lime Tea29.50

Lemongrass with Ginger Tea29.50

Product Menu

Target Market Target customer who are women and men in the age group of 20 - 65, middle class person, include lecturer, staff UMK, student and outsider. They are appreciative and quite loyal for visit spa treatment. Customer who have the stable income to indulge in massage and body treatments for self-pampering or relaxation are the core of our long-term repeat customers. They want to release their stress and feel their best. They are able to afford most anything, want the best available, and are willing to pay with reasonable price.Our backbone of our business is the student in University Malaysia Kelantan. Nowadays, the power of expense of teenager is higher than other categories. They are a very loyal group, and will readily give word-of-mouth recommendations, especially if they see massage as having given them a specific boost to their performance. Based on the statistic of population in Kelantan 2010, we found that there are around 4000 of people in Pengkalan Chepa area, so we target 200 of people will be our target customer.

Market Size

CompetitionCustomers choose spa services based on proximity to their daily commute, quality and an exceptional experience. With our combined services, we expect to dominate the Day Spa market. The closest competitor is the DRM Spa & Beauty which that offers spa services and beauty care service. Heritage Spa is more outstanding from DRM Spa & Beauty based on the professional service that we provide. We have imported spa equipment such as Swiss Shower and Infrared Sauna to make sure our customer can get a better service. Other than that, Heritage Spa also provide the Fish Spa therapy that DRM Spa & Beauty didnt have provide. The Renaissance Kota Bharu Hotel also offers massage treatments and the spa centre is well-known. However, our target customer is difference.Our competitive edge is combining of our unique services, outstanding location and our interaction with customers. By providing our customers a holistic and integrative spa service, we build relationships of trust and satisfaction. Our customers will come to depend on our unique services and fulfilling environment.

Sales Forecast Our sales target to fulfil customers wants as well as bring profits. We should identify and focus on our effort upon selected group of customers. Our target customers are UMK students, lecturers and others. We make sales target in order to limit resources in term of time, money and manpower. These are our sales forecast.ServiceUnit Price (RM)First Month (RM)Second Month (RM)Third Month (RM)

Green Coffee Detox Body Treatment 45 2790 4050 5520

Signature Stress Relief with Herbal Oil 40 2480 3600 4800

Organic Brown Sugar Body Scrub with basic massage 55 3410 4950 6600

Tropical Coffee Body Scrub with basic massage 55 3410 4950 6600

Head Massage (30 min) 25 1550 2250 3000

Foot Massage (15 min) 15 930 1350 1800

Foot Massage (30 min) 25 1550 2250 3000

Infrared Sauna Treatment

15 900 1350 1800

Swiss Shower 5 1500 1650 1800

Total Sales 18,520 26,400 34,920

ProductUnit Price (RM)First Month (RM)Second Month (RM)Third Month (RM)

Herbal Massage Oil 40200024002800

Green Coffee Detox Massage Oil60300036004800

Organic Brown Sugar Scrub Jar 65325039004550

Tropical Coffee Body Scrub 65325039004550



Kaffir Lime Tea35175021002450

Lemongrass with Ginger Tea35175021002450

Total17,50021,00025,100

Marketing Strategyi. ProductWe are using Tanamera Tropical Spa Product in our spa treatment. The range of products as each one is carefully made from raw materials sourced from rich and luscious tropical rainforests. This product range is created based on Asian tropical spa treatments and is conveniently packaged to be used at home, while travelling, or for use in professional spas.

ii. PricingWe are using competitive pricing scheme. Setting the price of a product or service based on what the competition is charging. We are using this type of pricing strategy is generally used once a price for a product or service has reached a level of equilibrium, which often occurs when a product has been on the market for a long time and there are many substitutes and competition on spa service.

iii. PlaceOur location is an advantage as we are located in the University with the multi-flow of population and our Heritage Spa is easy to reach.

iv. Promotion Online WebsiteThe website will have a full menu of services and eventually have the ability to schedule appointments on-line. The spa software we are using will allow a user to see the schedule and make appointment without making a phone call. Advertising & Seasonal PromotionsUMK kiosk, local fliers, grand opening party kick-off and promotion for first 30 days. Continue regular advertising and plan for special events like Christmas, Chinese New Year and Hari Raya. Loyalty MembershipMember card holder can enjoy 50% off offer during the birthday month for Body Treatment Massage and get one free juice drink. Voucher1 month package is available in voucher style and customer can get cheaper than normal Birthday Promotion for Membership holderWith Heritage Spas membership holder can enjoy extra discount for certain package and product.

Marketing BudgetItemsUnit PriceSeptemberOctoberNovember

Design a websiteRM 800RM 800--

BannerRM 200RM 200RM 200RM 200

FlierRM 0.20 RM 100RM 50RM 50

VoucherRM 0.05RM 10RM 10RM 10

Business CardRM 50RM 100RM 100RM 100

TotalRM 1200RM 360RM 360

Operations PlanProcess Flow Chart

Capacity Planning

Heritage Spa will operate all the day in two session time, 10am 5pm and 7pm 10pm. We will serve lady on Sunday to Friday and gentleman will be on Saturday. We found that lady wish to spend on spa to relax their stress and get beauty, however, nowadays gentleman is more and more concern on their beauty too. Therefore, our spa will operate one full day for gentleman.

Product Requirement Planning ItemUnit Price (RM)Amount RequirePrice (RM)

Herbal Massage Oil301003000

Green Coffee Detox Massage Oil481004800

Organic Brown Sugar Scrub Jar681006800

Tropical Coffee Body Scrub501005000



Kaffir Lime Tea251002500

Lemongrass with Ginger Tea251002500

Total27,600

Manpower planningEffective manpower planning to ensure low overhead cost. Since all of the partnership holder are graduate from University Malaysia Kelantan with Bachelor of Entrepreneurship (Health Entrepreneurship). All of us are familiar with spa service treatment and have knowledge on it. Therefore, we no need to employ many of massage therapist on our spa centre to low down the operation cost. We only recruit one part time massage therapist with well-educated and full of experience with spa massage who is Rihana.NameWorking Shift

Danny Ong Xiang ZhengFull time

Chong Kar YoongFull time

Chung Wei YiFull time

AzrahFull time

RihanaPart time ( night shift )

Machinery and Equipment PlanningItemPrice/ Unit (RM)QuantityTotal Cost (RM)

Swiss Shower15,000115,000

Sauna10,000110,000

Massage Table3500310500

Massage Sofa250025000

Shelf (26x21x29)1503450

Shelf (44x20x72)4001400

Shelf (15x14x32)1002200

Shelf (62x17x79)6001600

Washing Machine200012000

Water Heater2502500

Computer200012000

Office Table4002800

Office Chair2503750

Speaker System8001800

Circular Tub180011800

Total50,800

Operations budgetTypeFixed Asset Cost (RM)Monthly Expenses (RM)Yearly Expenses (RM)

Operational Equipment50,800

Raw Material19,600.00

Salary (EPF & SOCSO)10905.55

License/Permit4000

Total 50,80030,505.554000

Financial PlanThe premier element to our financial plan is initiating, maintaining, and improving the factors that create, stabilize and increase our cash flow. Because of the commission structure of our contractor payments, our variable costs will exceed fixed costs for all years of this plan, which should help stabilize the cash flow - we only pay commission when we make a sale. By quickly repaying our loan while increasing sales, and managing costs, we will increase the net worth of the businesssubstantially in the first year, and continue increasing it for the foreseeable future.

Source of financingFinancing is needed to start a business and ramp it up to protability. There are several sources to consider when looking for start-up nancing. The nancial needs of a business will vary according to the type and size of the business. Heritage Spa is a partnership business which own by four owners. Each of the owners will be investing RM20, 000 to the Heritage Spa. So the total amount of money invest by owners are RM80, 000. Other than that, the other source of financing for Heritage Spa is Maybanks Fund for Small & Medium Sized Industries 2 (FSMI 2) since Heritage Spa is a small and medium sized business. FSMI 2 is fund that assist SMEs and SMIs in export and domestic oriented sectors. Hence, Heritage Spa has two sources of financing which are from the owners and Maybank.

Maybanks Fund for Small & Medium Sized Industries 2Loan AmountRM50,000 (min) - RM3 million (max)

Repayment PeriodMaximum 3 years from the date of first drawdown

Interest Rate 5.0% p.a.

Loan Amortization ScheduleLoan AmountRM 1,500,000

Loan Period3 years

Interest Rate5%

Monthly Pay RM 44,956.35

Total of 36 loan paymentRM 1,618,428.44

Total Interest RM 118,428.44

The table above shows the amount loan from Maybank. The loan amount is RM 1,500,000. The loan period is 3 years with an interest rate of 5%. Based on the loan, the monthly loan payment is RM 44956.35. The total loan payment is RM 1,618,428.44 and the total interest is RM 118,428.44.Table below shows the monthly amortization schedule for the loan.MonthBeginning BalanceInterestPrincipalEnding Balance

1RM 1,500,000.00RM 6,250.00RM 38,706.35RM 1,461,293.65

2RM 1,461,293.65RM 6,088.72RM 38,867.63RM 1,422,426.03

3RM 1,422,426.03RM 5,926.78RM 39,029.57RM 1,383,396.46

4RM 1,383,396.46RM 5,764.15RM 39,192.20RM 1,344,204.27

5RM 1,344,204.27RM 5,600.85RM 39,355.50RM 1,304,848.77

6RM 1,304,848.77RM 5,436.87RM 39,519.48RM 1,265,329.30

7RM 1,265,329.30RM 5,272.21RM 39,684.14RM 1,225,645.16

8RM 1,225,645.16RM 5,106.85RM 39,849.50RM 1,185,795.67

9RM 1,185,795.67RM 4,940.82RM 40,015.53RM 1,145,780.14

10RM 1,145,780.14RM 4,774.08RM 40,182.27RM 1,105,597.87

11RM 1,105,597.87RM 4,606.66RM 40,349.69RM 1,065,248.19

12RM 1,065,248.19RM 4,438.53RM 40,517.82RM 1,024,730.38

Year 1 end

13RM 1,024,730.38RM 4,269.71RM 40,686.64RM 984,043.74

14RM 984,043.74RM 4,100.18RM 40,856.17RM 943,187.58

15RM 943,187.58RM 3,929.95RM 41,026.40RM 902,161.18

16RM 902,161.18RM 3,759.00RM 41,197.35RM 860,963.84

17RM 860,963.84RM 3,587.35RM 41,369.00RM 819,594.84

18RM 819,594.84RM 3,414.98RM 41,541.37RM 778,053.47

19RM 778,053.47RM 3,241.89RM 41,714.46RM 736,339.02

20RM 736,339.02RM 3,068.08RM 41,888.27RM 694,450.75

21RM 694,450.75RM 2,893.54RM 42,062.81RM 652,387.95

22RM 652,387.95RM 2,718.28RM 42,238.07RM 610,149.89

23RM 610,149.89RM 2,542.29RM 42,414.06RM 567,735.83

24RM 567,735.83RM 2,365.57RM 42,590.78RM 525,145.05

Year 2 end

25RM 525,145.05RM 2,188.10RM 42,768.25RM 482,376.81

26RM 482,376.81RM 2,009.90RM 42,946.45RM 439,430.37

27RM 439,430.37RM 1,830.96RM 43,125.39RM 396,304.98

28RM 396,304.98RM 1,651.27RM 43,305.08RM 352,999.91

29RM 352,999.91RM 1,470.83RM 43,485.52RM 309,514.40

30RM 309,514.40RM 1,289.64RM 43,666.71RM 265,847.69

31RM 265,847.69RM 1,107.70RM 43,848.65RM 221,999.05

32RM 221,999.05RM 925.00RM 44,031.35RM 177,967.70

33RM 177,967.70RM 741.53RM 44,214.82RM 133,752.88

34RM 133,752.88RM 557.30RM 44,399.05RM 89,353.84

35RM 89,353.84RM 372.31RM 44,584.04RM 44,769.80

36$44,769.80$186.54$44,769.81$0.00

Year 3 end

The table below shows the annual amortization schedule YearBeginning BalanceInterestPrincipalEnding Balance

1RM 1,500,000.00RM 64,206.52RM 475,269.68RM 1,024,730.38

2RM 1,024,730.38RM 39,890.82RM 499,585.38RM 525,145.05

3RM 525,145.05RM 14,331.08RM 525,145.12RM 0.00

Start Up Financial DataDescriptionCost (RM)

Start Up Expenses

Legal Services6,500

Printing, Collateral2,500

Construction/Design60,000

Insurance1,800

Research and Development3,000

Advertising1,500

Accounting Services950

Linens1,500

Total Start-up Expenses77,750

Start-up Assets

Cash Required20,000

Start-up Inventory5,000

Other Current Assets50,800

Total Assets72,300

Total Requirements150,050

Start-up Funding

Start-up Expenses to Fund77,750

Start-up Assets to Fund53,940

Total Funding Required135,190

Capital Equipment and Supply List(Other Current Assets)

ItemPrice/ Unit (RM)QuantityTotal Cost (RM)

Swiss Shower15,000115,000

Sauna10,000110,000

Massage Table3500310,500

Massage Sofa250025000

Shelf (26x21x29)1503450

Shelf (44x20x72)4001400

Shelf (15x14x32)1002200

Shelf (62x17x79)6001600

Washing Machine200012000

Water Heater2502500

Computer200012000

Office Table4002800

Office Chair2503750

Speaker System8001800

Circular Tub180011800

Total50,800

Start Up Balance SheetDescriptionCost(RM)

Assets

Non-cash Assets from Start-up5,659

Cash Requirements from Start-up20,000

Additional Cash Raised55,004

Cash Balance on Starting Date80,463

Total Assets53,940

Liabilities and Capital

i. Liabilities

Current Borrowing1,500,000

Long-term Liabilities0

Accounts Payable (Outstanding Bills)0

Other Current Liabilities (interest-free)0

Total Liabilities1,500,000

ii. Capital

Owner Investment80,463

Additional Investment Requirement20,000

Total Planned Investment100,463

Loss at Start-up (Start-up Expenses)(80,450)

Total Capital20,013

Total Capital and Liabilities20,013

Total Funding60,450

Break-even Analysis The break-even analysis is based on the average of the first- year figures for total sales by values, and by operating expenses. These are presented as per- unit revenue, per- unit cost, and fixed costs. These conservative assumptions make for a more accurate estimate of real risk. Monthly Revenue Break-evenRM20, 000

Assumptions: Average Percent Variable Cost15%

Fixed CostRM50,800

Profit and Loss Pro-FormaA pro forma profit and loss statement, also known as a pro forma income statement, is a projection of a business' anticipated profitability. It is a management tool to help forecast a company's financial future by comparing its projected income to its anticipated expenses. Expected economic conditions, changing company business practices and the anticipated tax environment factor into management's pro forma profit and loss projections.Description 2016 (RM) 2017 (RM) 2018 (RM)

Gross Sales/Gross Revenue470,000608,400763,440

Direct Cost of Sales20,00030,00040,000

Massage Therapists' Commissions9,40012,1683,600

Total Cost of Sales29,40042,16843,600

Gross Profit440,600566,232719,840

Gross Profit %93.74%93.07%94.30%

Expenses

Payroll(include SOCSO,EPF)115,000.00120,000.00125,000.00

Advertising10,0008,0008,000

Utilities3,0003,1003,200

Insurance1,80018001800

Phone240240240

WIFI1,6801,6801,680

Permit400040004000

Total Operating Expenses135,720138,820143,920

Profit Before Interest and Taxes334,280469,580619,520

EBITDA*334,280469,580619,520

Interest Expense14,00014,00014,000

Taxes Incurred14,00014,00014,000

Net Profit306,280441,580591,520

Balance SheetPro-FormaA pro forma balance sheet summarizes the projected future status of a company after a planned transaction, based on the current financial statements.2016 (RM)2017 (RM)2018 (RM)

Assets

Cash313,263393,531514,568

Accounts Receivable11,12311,89911,378

Inventory11,44110,35712,868

Other Current Assets33,09533,09533,095

Total Current Assets368,922448,882571,909

Long-Term Assets03,0006,000

Accumulated Depreciation0150200

Total Long-Term Assets02,8505,800

Total Assets368,922451,732577,709

Liabilities and Capital

Current Liabilities

Accounts Payable80,79047,26549,650

Current Borrowing22,60017,2007,800

Subtotal Current Liabilities103,39064,46557,450

Long-Term Liabilities539,476.14539,476.14539,476.14

Total Liabilities642,866.14603,941.14596926.14

Paid-in Capital150,000150,000150,000

Retained Earnings(90,450)39,528103,232

Earnings119,978103,705161,221

Total Capital179,528293,233414,453

Total Liabilities and Capital822,394.14897,174.141,011,379.00

Net Worth179,528293,233414,453

Cash FlowPro-Forma

A pro forma cash flow is created to predict inflow and outflow of cash to the business. It is particularly valuable in predicting when business may experience a cash shortage. This determine in advance whether or not need to cover cash shortage by borrowing money, selling more stock in the business, or taking other steps, such as cutting expenses, to improve cash position.2016 (RM) 2017 (RM) 2018 (RM)

Cash Sales470,000608,400763,440

Cash from Receivables16,92829,01529,436

Subtotal Cash from Operations486,928637415792,876

Subtotal Cash Received486,928637,415792,876

Cash Spending129,610135,060149,229

Bill Payments97,29197,79698,659

Subtotal Spent on Operations226,910232,856247,888

Principal Repayment of Current Borrowing6,2006,2006,200

Subtotal Cash Spent233,110239,056254,088

Net Cash Flow253,818358,359534,788

Cash Balance253,818572,5461,107,344

Figure 1: Chart for Gross Sales

SUMMARY / JUSTIFICATIONA business plan is produced to convince shareholders, banks to invest into our business. The concept of the Heritage Spa business is to offer professionally administered spa treatments and services.The service that will be provide will be aimed to age group 20 - 65, middle class person. In order for the business to see success and make a profit it is important to ensure that costs are kept to a minimum. The business will focus on provide various types of massage treatment such as body massage treatment, head massage, foot massage, fish spa therapy and other service. Other than that, we also sell the organic product that supply from Tanamera Tropicana Spa Product.Researching into this day spa service and market is important, so the business is able to forecast its success. It is clear that, there is a market for this service. The strategic location is also important and our Heritage Spa is locate in University Malaysia Kelantan campus. We can enjoy the multi-flow of population of people and easy for us to target our potential customer. Above shows a table showing the sales between years 2016 - 2018. This information is important so that we can able to see the changing trends over time. We assumed that in year 2016, the net profit can get RM 306,280and keep increasing in every following year. As the products and service will be sold on a market, our company will see less overhead costs.This business has no major overhead expenses. Our main expense will be remuneration of the staff that will cost approximately RM9500 per week. As no other major resources are required for example water, electric, our costs will be kept to a minimum and be able to transfer bargains to our customers. Analysing the business plan there is a big chance for success with this business. Sales for these products and services are increasing every year.

Appendices

Customer FeedbackWe are encountering some issues in receiving feedback. If you have any comments, positive or negative, we would be grateful if you could email our Customer Services' Team on:[email protected]. Thank you.

We try very hard to deliver a good service at Heritage Spa. However, we know that there is always space for improvement so we would appreciate any feedback that you may have regarding your visit.Top of FormHow would you rate the friendliness & helpfulness of our staff? Very GoodGood AveragePoor No View

How would you rate the cleanliness of the Spa?Very GoodGood AveragePoor No View

How would you rate the quality of your therapist & treatment?Very GoodGood AveragePoor No View

How would you rate your overall visit to Heritage Spa?Very GoodGood AveragePoor No View

How was your overall visit in terms of value for money?Very GoodGood AveragePoor No View

Comments / Suggestions / Complaints

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Documents

Business Plan for SPA.docx