Executive Summary - Weebly



centercenter00Table of Contents TOC \o "1-3" \h \z \u I.Executive Summary PAGEREF _Toc348700254 \h 1II.Description and Analysis of the Business Situation PAGEREF _Toc348700255 \h 2A.Rationale and Marketing Research PAGEREF _Toc348700256 \h 2B.Introduction: Type of Business, Brief Description of Major Product/Service Involved PAGEREF _Toc348700257 \h 2C.Self-Analysis: Actual Personal Experience and/or Training in Proposed Field PAGEREF _Toc348700258 \h 3D.Analysis of the Business Opportunity, Customer and Location: Geographic, Demographic and Economic Analysis of Trading Area, Customer and Locale of Proposed Business PAGEREF _Toc348700259 \h 3E.Proposed Organization: Type of Ownership, Steps in Starting to form Business, Planned Personnel, Management Skills PAGEREF _Toc348700260 \h 4III.Proposed Marketing/Promotion Plan PAGEREF _Toc348700261 \h 5A.Proposed Product or Service: Details of Product or Service to be Offered; Potential Suppliers or Manufacturing Plans PAGEREF _Toc348700262 \h 5B.Proposed Pricing Policy: Costs, Markups, Relationship to Competitors PAGEREF _Toc348700263 \h 6C.Personal Promotion: Non-Media Sales Plan, Staffing and Merchandising Appeal PAGEREF _Toc348700264 \h 7D.Nonpersonal Promotion: Media, Basic Appeal and Initial Promotion Plan PAGEREF _Toc348700265 \h 7E.Place: Channel of Distribution from Manufacturer or Service Provided to Consumer PAGEREF _Toc348700266 \h 7IV.Proposed Financing Plan PAGEREF _Toc348700267 \h 8A.Projected Income/Cash Flow Statement: Projected Budget Describing Income and Expenditures for the First Year PAGEREF _Toc348700268 \h 8B.Projected Three-Year Plan: Describe Planned Growth, Including Financial Resources and Needs PAGEREF _Toc348700269 \h 9C.Capital and Repayment Plan: Earnings, Short-Term and/or Long-Term Borrowing, Long-Term Equity, Plan to Repay Borrowed Funds or Provide Return on Investment to Equity Funds PAGEREF _Toc348700270 \h 10V.Bibliography PAGEREF _Toc348700271 \h 10VI.Appendix PAGEREF _Toc348700272 \h 11Executive SummaryRadiance Salon and Spa is an oasis from the day- to-day activities, located conveniently off of Interstate 15 at The Crossing in Riverdale, Utah. It includes a spa with massages, facials, manicures, pedicures, waxing, aromatherapy, and a salon which provides men and women with hairstyling, coloring, perms, and essential hair care products. Marketing ResearchEighty-five percent of individuals in personal appearance occupations are women, compared to 47% of employed individuals in the overall U.S. workforce. As the salon and spa industry is a growing component of the economy with more than 974,000 total establishments and annual sales of more than $40 billion.Proposed ProductsOur business will have an opportunity of combination pricing that allows our customers to afford our services on any budget. Combinations include things such as: pedicures and manicures, facials and waxing, coloring and haircuts. These specials will give Spa Radiance the competitive advantage over other spas and salons. Geographic’sRadiance will be located on Riverdale Road, in Weber County, Utah, at the address of 750 West Riverdale Road also known as The Crossing. It is near a freeway entrance that will allow for convenient travel from the other cities surrounding Riverdale, Utah. FinancialsAt the end of three years Radiance will have a yearly income of $22, 903. This money will go towards paying off the loan we have, and making improvements to Radiance. At the end of five years we will have a yearly of $51, 504 our loan will then be completely paid off.222458577751500“Radiance is committed to exceptional customer service. Our team is professional, talented, and dedicated to providing a high-quality, comfortable natural salon and spa experience. We offer services using the finest products that will beautify and balance both the body and mind.”Description and Analysis of the Business SituationRationale and Marketing ResearchThe salon and spa industry is a growing component of the U.S. economy, with more than 974,000 total establishments and annual sales of more than $40 billion. This industry registered steady growth over the last decade, with the strongest lead in the non-employer sector. The non-employed salon and spa establishments increased 78% in the last decade while their sales jumped 99%. There are roughly 1.1 million professionals working in personal appearance occupations in the United States according to the Bureau of Labor Statistics. 31% of all individuals in personal appearance occupations are self-employed. In comparison, only seven percent of the overall U.S. workforce is self-employed.Introduction: Type of Business, Brief Description of Major Product/Service InvolvedRadiance is a business that will provide customers with the combinations of body massages, body treatments, facials, and anti-aging treatments. It is also accompanied by a salon in the same building that would provide services of haircuts, color, perms, manicures and pedicures. The Crossing, where we plan to locate, has a high traffic area. A freeway entrance is located one mile away, which makes it easily accessed. We are located in Riverdale city, but we plan to have customers from the surrounding cities: West Haven, Roy, Ogden, Morgan etc. Radiance will be owned and managed by Melissa Lytle. An assistant manager will be there to take care of Radiance when the owner is not in attendance or available. For the first six months to a year, there will only be one cosmetologist until we receive enough customers to hire more, and the owner and assistant managers will be the massage therapists. Self-Analysis: Actual Personal Experience and/or Training in Proposed FieldAs a junior in high school, Melissa Lytle has already begun her interest in Business Management. Melissa is involved in many extracurricular activities that help prepare her for her future as a manager and owner of Spa Radiance. ?FBLA 2011-2013?FFA 2011-2013?DECA 2012-2013Courses Completed:?Business Communications?Business Management?Marketing 1 & 2?Computer Technology Melissa has plans to graduate a year early, in 2013. In the following year, she will attend Utah College of Massage Therapy where she will learn the aspects of massages and gain experience. She will then attend Utah State University in Logan, Utah for her Bachelors and MBA in Business.Analysis of the Business Opportunity, Customer and Location: Geographic, Demographic and Economic Analysis of Trading Area, Customer and Locale of Proposed BusinessGeographicRadiance will be located on Riverdale Road, in Weber County, Utah, at the address of 750 West Riverdale Road also known as The Crossing. This location gives great access to the high volume of traffic and easy accessibility to Radiance. It is near a freeway entrance that will allow for convenient travel from the other cities surrounding Riverdale. Also, The Crossing has a variety of restaurants/stores/entertainment which is great for people who are out on Saturdays to come into Radiance to get their hair/nails done, or get a massage to gain a healthy lifestyle. DemographicPlacing Radiance in such a busy area makes it possible for more customers to come to us. Being in a city with more business district with restaurants, department stores, and the Newgate Mall. The primary target market is women from ages 14-60+, who are interested in our salon and spa. EconomicRadiance salon and spa pricing will be competitive within the market and equivalent to our competitors. Again our primary target market is women 14-60+ interested in salon and spa services. Proposed Organization: Type of Ownership, Steps in Starting to form Business, Planned Personnel, Management SkillsFor the first year, Radiance will be run by the owner and assistant manager to minimize expenses and establish a systematic foundation. They will both be full time and will be trained as massage therapists for the spa. There will be one cosmetologist for the first year full time, then later there will be more added when Radiance gains more clients. Later on as Radiance grows, the owner will hire more employees to delegate the work load. The manager will be in charge of the business affairs, and supervision of all employees and services. The assistant manager will be in charge whenever the manager is not in attendance or available. The assistant manager will also monitor the other employees and help whenever needed.Proposed Marketing/Promotion PlanProposed Product or Service: Details of Product or Service to be Offered; Potential Suppliers or Manufacturing PlansRadiance will provide a multitude of services for our clients. Our prices are listed here:19138625400042100508337550018986583312000Product lines will be purchased through a local, Ogden-based personal care distributor and will include the following brands. 2124075346075001209675159702500Proposed Pricing Policy: Costs, Markups, Relationship to CompetitorsProductsProdcut PricingService PricingAromatherapy massage mix $3.10$40.00+Hair Colortube $9.92$30-75.00Lotions massage mix $ 2.90$55.00+Nail Carem/p-cure mix $ 4.30$30.00Oilsmassage mix $ 2.41$55.00+Waxes2” cover $1.04$20.00+Radiance Pricing Policies39733213070041SpasSpas8399373070041SalonsSalonsThere are many competitors for Radiance. Although there are 22 salons in Riverdale, there is only one that is a spa/salon. And there are no spa/salons in The Crossing where Radiance will be located. That will be a huge advantage for us because The Crossing keeps growing with businesses so we can be the only spa/salon in the area. Our main competitor in the Weber County area is Urban Trendz Salon & Spa. They do cosmetology and a spa service. Although they are not in the same city as Spa Radiance, there will be different customers. Radiance will also have the advantage over others because of the location we have; from north, east, and west Radiance will have customers flowing in. Urban Trendz Salon & Spa will have the south end but their spa is small and customers would notice us more because of the densely populated area.Personal Promotion: Non-Media Sales Plan, Staffing and Merchandising AppealEmployees of Radiance will be expected to set a vibrant environment to make our guests feel welcome. Radiance employees will be friendly, and always smiling. With this our guests will feel happy and want to return. Our customers will be pleased with their experience and tell their friends and family. In our common area we will be selling products that we use in our salon and spa; employees will offer them to our guests as they are checking out. Nonpersonal Promotion: Media, Basic Appeal and Initial Promotion Plan-635005397500Place: Channel of Distribution from Manufacturer or Service Provided to ConsumerRadiance will use a manufacturer based out of Ogden, Utah. They are a main wholesaler and purchasing our supplies from them will save us thousands of dollars each purchase. We plan on purchasing our massage tables, microdermabrasion machines, hot towel cabinets and sterilizers, manicure and pedicure chairs, wax warmers, and styling chairs. With these we are prepared to service our customers and give them an unforgettable experience. Proposed Financing PlanProjected Income/Cash Flow Statement: Projected Budget Describing Income and Expenditures for the First Year222637147562900Projected Three-Year Plan: Describe Planned Growth, Including Financial Resources and NeedsWe understand that in the first few years of operation, the amount of income will be small, however according to our proposed Financial Plan; we will see a yearly profit of $22, 903 at the end of three years. You will see our itemized expenses with a monthly and yearly breakdown. Capital and Repayment Plan: Earnings, Short-Term and/or Long-Term Borrowing, Long-Term Equity, Plan to Repay Borrowed Funds or Provide Return on Investment to Equity FundsRadiance Salon and Spa will is seeking a loan of $250,000 from Bank of America at 8% interest. Melissa Lytle, the owner of Radiance, will invest $10,000 of her own money. The loan will be used for start-up costs, lease payments, and utilities. We are also seeking a $70,000 investment from a private equity partner in exchange for an 18% stake in the company. Bibliography. 5 January 2013.. 11 January 2013. ................
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