1.0       EXECUTIVE SUMMARY

Bronze Salon & Spa will be health and beauty salon incorporated in July 2004 in the state of Georgia. It will be formed with the intent of providing a luxurious and soothing environment for individuals to have their beauty needs met. The company’s president has experience running budgets and managing people.

The spa will offer our guests a luxurious salon indulgence along with a complete tanning service for every day visits.  Individual care rooms will be equipped with music, aroma therapy to help ease the mind, and superior beauty products. Customers will choose from a variety of services including hair styling, facials, body waxing, tanning, manicures, make-up, and massage therapy.  Customers will also have the option to stay for the day with our full care package.

Bronze Salon & Spa will be targeting individuals who view their weekly or bi-weekly salon visits as a time to relax and forget about their problems. These individuals will have disposable income but limited time due to family and or career demands. To reach this market, the spa will create an environment where the customer will be the center of attention. All customer care needs will be administered in private booths where the customer and the beauty service provider can discuss the customers needs in a private setting.

This concept closely resembles the generic beauty salon but without the stress and hassle. The business will be a cash business where revenue is generated directly from customers, beauty service providers. The actual revenue will consist mostly of cash but the ability to take credit cards, checks, debit cards, and other forms of payment will be available. The overhead will be relatively low with respect to employees.

First year funding requirements are comprised into two stages. Stage one, initial investment, is the purchasing of equipment, space, business license, permits, and advertisement. Stage two, operating cost, consists of working capital until the breakeven point is reached. $ 30K for initial investment and $30K for operating costs during the first year.

Preliminary lease agreements have been acquired for two locations. One of the locations is optimal for our desired market. It is located by the Mirror Lake Community in between Douglas and Carroll County. This community is expanding   Based on the location and demand of spa services, Bronze Salon & Spa will begin making a profit after eight months of operation with anticipation of growth within two years.

2.0       Situation Analysis

Bronze Spa and Salon will offer top of the line beauty care service and equipment. The salon will create a loyal customer base through its top notch customer care. The salon wants to achieve a fifty percent occupation rate for hair, massage, and nail booth rental.  The renters will form the backbone of the business with equipment use as steady cash revenue.

The salon has established competition from hair salons, tanning centers, and nail centers. Bronze Spa and Salon will want to immediately attract tanning customers away from their normal tanning locations. Bronze Spa and Salon must get customers through the door such that booth are constantly rented. Renters will not return if they can not achieve a reasonable profit above their rental fee.

The market is growing as potential customers relocate from other areas. The new residents are often displaced from their normal salons. The spa must take advantage of this by introducing its services to them. The basic market needs are hair care, nail care, hair removal, tanning services and relaxation therapy.

2.1 MARKET SUMMARY

Bronze Spa and Salon have an in depth knowledge of the market because we are apart of it. This information will enable us to staff and build the type of salon that doesn’t suffer the pitfalls of other salons.

The market is composed mostly of individual purchasing their own services.  The market also has a small percentage of service purchased for gift purposes. Below is a market Breakdown:

The chart represents the breakdown market purchases.

Market Demographics

The profile of Bronze Salon & Spa’s target customer’s consists of the following geographic, demographic and behavior factors:

Geographic Market

The immediate target area is Villa Rica, Georgia. Specifically, the target market is the Mirror Lake housing community and surrounding housing communities. But the market will include a 30 mile radius of the following counties:

·        Carroll County

·        Douglas County

·        Haralson County

·        Etc.

Targeted Area

·        North - East sector Carroll County

·        North-West  sector Douglas County

Specific Market area

·        Villa Rica, Georgia

·        Temple, Georgia

·        Bowden, Georgia

·        Mirror Lake community

·        Fairfield Community

·        30180 area code

·        Etc

Area Population Trends

Past

In the past, the population of our target area remained relatively constant with respect to growth rate. Farming was the main industry that drove community development and commerce. If the farmer and his family did not need it, the community did not posses the local means for the service.

It was not a practical for rural communities to have a large base of other career types because the cities were less populated and affordable housing was still and option.  Traffic was reasonable, good schools were available and low crime allowed the community’s diverse needs to drive the commerce. This allowed for needed services to be met in the city.

            Present

City population centers are congested. The traffic combined with poor schools, pollution and crime have driven individuals further and further away from the city. Rural development in Georgia is growing fast due to the fleeing from the City of Atlanta.  Our target area is growing faster than anytime in its history. The services provided by the communities in the city are now needed in these geographic areas. Below are current and future population and home buying trends in the targeted area :

The chart present the amount of new construction for homes planned in the market area. The population is growing at a rate of 2 percent which increases the customer base.

Market Demographics

·        Female

·        Rural

·        Age is between 16 and 55

            Behavior Factors

·        Busy soccer moms who do not have time to pamper themselves

·        Career Mothers

·        Single dating women

·        University females away from their home salon

·        Prosperous residents who do not want to drive to get equal services

·        Drives to Atlanta to receive beauty services

Market Needs

Today’s families are busy. Career, school and children deprive individuals of time to take care of their body.  Relaxation and rest are precious commodities that are in short supply. Faced with the dilemma of needed hair care and body care, busy parents pay for other to perform these services for them. These errands need to be performed in an environment that allows the family beauty needs to be met while providing relaxation and rest.

            Market traits

For female clients, needs arise at least once every 2 weeks but have a grace period in which the need is not met. This grace period is user defined.

For male clients, beauty care is usually a taboo thing in which the wife and or children take part in. Male clients attach a stigma to beauty care that makes it hard for them to walk into a beauty salon. Generally males have the means to purchase the care but shy away. The need is their but the market does not attempt to provide a way to address these concerns.

The market’s needs are constantly met but are forever repeating

In the repeating of the services, the competition usually falters or cuts corners. Our difference:

·        Bronze Spa & Salon seek a group of specialists for every salon service

·        Location – a full service salon and spa at the growing Mirror Lake Community

·        Fifteen minutes from the thriving communities of both Douglas and Carroll County

·        Competitive pricing without the long drive

·        Customers will receive an abundance of attention and care

·        Bronze Spa & Salon will supply quality products that are not harmful to the atmosphere

Market forecast currently not available

Market Growth currently not available

2.2       SWOT ANALYSIS

The following SWOT analysis depicts the strengths and weaknesses of Bronze Spa & Salon as well as opportunities and challenges.

Strengths

·        Location in growing geographic area

·        Unique facilities

·        Atmosphere

·        Quality products

·        Excellent customer service

            Weaknesses

·        Business model easily copied

·        Limited retail space for growth

·        Dependency on reliable renters to make customers  want to return

·        Profits will mirror economy in that bad economy means cut backs to our purchases

·        High overhead cost due to space and equipment requirements

            Opportunities

·        Expansion to other newly booming areas

·        Introduce new products and styles to customers and thus sales

·        Promotional events:  Reserve the entire spa for wedding parties, community events, etc.

·        Corporate tie ends to reward employees

Challenges

·        Economy slump or recession

·        Unexpected Growth that cannot be met in the short term less than 6 months

·        Contracting good personable renters

·        Attracting the right cliental

2.3       COMPETITION

Due to the demand, salon facilities try to efficiently meet the demand. The competition fails in that the customers are treated with respect but comfort is often an after thought. This creates a merry go round of customer going from one salon to another. As stated before, most customers would rather use this time to free themselves from the stress of the day.

The basic structure is primarily built to ensure functional efficiency geared to get the customer in and out as quickly as possible.  The goal is to put as much equipment as possible into the smallest space possible. The needs of the individuals are changing and the competition is slow or unwilling to meet change. The change is being defined in ways to reduce stress during these repetitive services.

2.4       SERVICES

Our clientele will not receive the fast food treatment.  Bronze Spa & Salon will be unique in the type of building structure as well as in customer service.  Immediately upon entering the spa, clients will feel removed from the world outside. A feeling of well being and safety will surround the clientele at Bronze Spa & Salon.  The staff will attend to every need of the client with individual care and detail.  The goal is to make the client feel like and look like they went on vacation.

2.5       Keys to SUCCESS

Initially, Bronze Spa & Salon will depend on advertising to create new business.  Soon, our unique services and excellent customer care will generate devoted customers and repeat business. The business will also get walk in due to its proximity to an affluent housing community.

Goals to Success:

• Total Customer Satisfaction with their service
• Friendly and expert renters
• Friendly Hostess
• Clean equipment
• Clean area
• Money back guarantee
• Safe environment
• Relaxing private rooms
• Aggressive pro active marketing plan to reach customers
• Etc.

3.0              Marketing Strategy

3.1              Mission

Bronze Spa and Salon’s mission is to provide the highest quality beauty care service in a comfortable relaxing environment. Customer satisfaction as well as leaving the spa relaxed and reenergized is our number one goal.

3.2              Marketing Objective

·        First quarter goals are too rapidly increase booth renters and tan session to cover over head

·        Second quarter goal is a twenty five percent growth in new customers and repeating business.

·        The third quarter goal is to have a fifty to sixty five percent occupation of all booths by renters.

·        The fourth quarter goal is to reach our optimal seventy five percent occupation rate on all booths by renters.

3.3              Financial objective

·        Reach break even mark by 6 month period

·        Achieve a double digit growth rate for the first 6 months of operation

·        Recover investment capital by the fourth quarter

3.4              Target Marketing

See market analysis.

3.5              Positioning

Bronze Spa and Salon seeks to be the only provider of beauty care services in west Georgia. The position will be attained by providing top quality service in a comfortable environment. The business will achieve its competitive edge by employing four steps.

1.      Create a one stop beauty care center

2.      Provide the best beauty service in the area

3.      Provide the customer a stress free environment

4.      Create a warm atmosphere where customer privacy adds to the relaxation and service

3.6              Strategy Pyramid

Bronze Spa and Salon’s goal is to the model of what a twenty first century beauty salon can be. The salon will achieve this by first making potential customers aware they have a superior option to their current beauty provider. Once a customer base is established reward them by providing superior service and giving discounts for referrals.

            Bronze Spa and Salon wants the customer to leave the salon feeling like they just return from the beach.  This type of relaxing environment will make the customer look forward to the rest and relaxation of a visit. The monthly hair dresser visit by the woman will now be the one day she can count on for rest and relaxation.

            The next method will be using package deals as promotional give a way’s. Bronze Spa and Salon will seek offer companies packages to give away as reward or perk to employ’s.  Packages strategy will be offered to customers who are already spending a significant time in the salon at no extra charge. This will introduce them to other services that we provide.

            The final method will be a ten thousand letter mail campaign that offers complimentary nail service with any purchase. In addition to the nail benefit, customers will receive a twenty percent discount on any service received during their first visit.

3.7              Marketing Research

Market research is contained in the Market Summary of this proposal.

4.0              Financials, Budgets, and Forecasts

4.1              Break Even Analysis

The business must bring in $8300 per month to meet monthly operating costs. The first sales forecast is based on near perfect sales. Perfect sales are described as having booths occupied by renters seventy five percent of each month. The second sales forecast is described as having booths occupied fifty percent of the time during each month. Finally the last sales forecast is described as having the booths occupied at less than twenty five percent. Below are the charts:

Based on optimal sales, the break even point for operating expenses can be achieved during the first 6 months of operation.

Based on medium sales, the break even point for operating expenses can not be achieved during the first year of operation.

4.2              Sales Forecast

Detail explanation of each forecast is located in the index.

4.2.1        Optimal Sales Forecast

Based on optimal sales, the company will become profitable with the first 6 months.

4.2.2        Medium optimal Sales Forecast

Based on medium sales, the company will not break even until the second year.

4.2.3        Atrocious Sales Forecast

4.3              Expense Forecast

Two expense forecasts are presented. The primary expense forecast has five thousand dollar salary expenditure per month. The secondary expense forecast has no salary expenditure for the first six months because the management will run the business to offset the high overhead. The management would then start receiving reimbursements for the work starting in the third and fourth quarter.

Startup Expenses / Marketing funding

5.0              Bronze Spa and Salon company structure

5.1              LLC Organization

Attachments

Menu of Services

The Bronze Full Day of Beauty Designed to create a day of pampering and relaxation for the mind and body. Your five hours of complete relaxation begins with The Bronze signature Facial and a comprehensive skin analysis. You then move to the Body Wrap, a stress relieving Body Massage, and Foot Massage. Add a delicious drink and spa lunch and your full day of beauty is complete. Price: $280.00

The Bronze "Time-Out" A much deserved "Time-Out" to revitalize, renew and an opportunity to reflect. Treatments to make anyone feel special include The Bronze Signature Facial, our ultimate Body Treatment, and a Spa Lunch. Price: $180.00

The Bronze Day of Appreciation Show your appreciation for that Special Someone. This package features a Dermis Anti-Oxidant Treatment, a Stress Ease Massage, and a Spa Manicure. Three and one-half hours that say "Thank You" in a beautiful way. Price: $175.00

The Bronze Day of Celebration A perfect gift for yourself or someone who deserves a day to celebrate any occasion. Includes The Bronze Signature Facial, and our Detoxifying Body Wrap. Approximately three and one-half hours. Price: $165.00

The Bronze Bridal Moment A "Special" Gift for the Bride-to-be and her wedding party. On this once-in-a-lifetime day, this package features The Bronze Signature Facial, a Full Body Massage, and a Revitalizing Seaweed Body Treatment. The hours will help you prepare for a perfect day. Price: $280.00

The Bronze Southern Gentleman A trip back to the genteel days of the Old South when men knew how to relax. Features The Green Tree Signature Facial (man style), and a Deep Tissue Sports Massage. Three and one-half hours you'll not soon forget. Price: $165.00

Deep Pore Cleansing Facial A deep-cleansing facial that includes cleansing, exfoliation, hydration and extraction of clogged pores and impurities followed with a mask treatment and massage. People who are serious about healthy facial skin receive this facial on a regular basis. Price: $75.00

Anti-Acne Facial A specialty treatment created to begin the process of treating adult acne. Lasting results are possible with a series of these facials combined with a home program using Dermed Skin Care Products. Price: $80.00

Glycolic Facial Treatment A complete facial to exfoliate and start reversing problems such as hyper-pigmentation, dehydration and chronic breakouts. Glycolic acid kills bacteria, regulates oil production and feeds collagen and elastin cells as it exfoliates. Combine with hydration, extraction and a customized mask, this treatment rewards all skin types. Price: $90.00

Stone Facial This age old holistic approach to skin care prompts better penetration of products, increases circulation and helps you achieve a deep state of relaxation. By combining a skin treatment and facial massage with heated and chilled smooth stones, this treatment promises to soften your day. Price: $75.00

Full Body Massage Choose From: Swedish/Deep Tissue/Custom SWEDISH MASSAGE: The ultimate pampering treatment. Long, gliding strokes and kneading techniques will guarantee DEEP relaxation. DEEP TISSUE MASSAGE: A full body massage designed to eliminate both mental and physical tensions. We will increase your circulation and stimulate your nervous system, while reducing chronic pain and muscle soreness. CUSTOM MASSAGE: Consult with your therapist for your personally customized massage just for you. Price: $65.00

Stress Ease Massage A STRESS release massage that will target the tension stored in the head, neck, shoulders & back. It simply gets directly to those common problem areas. Price: $45.00

Heated Stone Therapy Through a combination of heated stones, gentle pressure, and massage. This treatment targets relieving muscle tension, stress and can improve skin and muscle tone. Price: $90.00

Pregnancy Massage Help relieve the physical and emotional discomfort sometimes caused by pregnancy. Calming as well as healthy practice for the new mother AND new baby. Please consult with your therapist if you are in the first trimester of pregnancy. Price: $70.00

Reflexology Massage The age-old science of therapeutic foot manipulation that can help deal with pains all over the body, relieve stress and release energy through pressure points. Just think how wonderful having your feet treated in this style will feel! Price: $50.00

Traditional Thai Massage A unique style of body work that integrates an assisted yoga stretching, gentle acu-pressure, and compression massage to achieve a feeling of total relaxation and to restore vitality. Thai massage may be enjoyed everyday with no restrictions or contraindications. Regular and consistent sessions will guarantee results and a greater harmony of mind, body and spirit. Thai massage is performed on a mat on the floor. The client remains fully clothed but wearing loose comfortable non-restrictive clothing such as a T-shirt and sweat pants. Price: $90.00

Eyebrow Wax & Shape Price: $12.00 and up

Eyebrow Shaping & Tweezing Price: $12.00 and up

Lip Waxing Price: $12.00 and up

Chin Waxing Price: $12.00 and up

Cheek Waxing Price: $18.00

Full Face Wax (includes eyebrows) Price: $55.00

Full Leg Wax Price: $59.00 both

Lower Leg Wax Price: $40.00 both

Upper Leg Wax Price: $55.00 both

Full Leg and Basic Bikini Price: $85.00 and up

Half Leg and Basic Bikini Price: $60.00 and up

Bikini Wax Price: $25.00 and up

Lower Arm Wax Price: $25.00

Upper Arm Wax Price: $12.00

Under Arm Wax Price: $20.00 both

Feet Waxing Price: $15.00

Male Back Wax Price: $50.00 and up

Standard Tan prices

Single session   $10.00 by appointment | Single session by walk in $12

Three sessions $20.00

Five sessions    $ 30.00

Ten sessions     $ 50.00

Fifteen sessions $ 80.00

Tan membership which includes unlimited tans  $150 per year

Bronze Spa and Salon Flyer

Bronze Spa & Salon

We take care of you… so you can take care of them

Full Service Day Spa