Focus on Potential and Opportunity – Generate Interest and Excitement!
Whether you are just starting up your Spa, or you are a seasoned veteran, you need to have a Business Plan. At some time or another, you will require either outside financing; a lease agreement; be considering a partnership; or even looking for investors. And know that the value and benefits that come to you as the Owner, from doing the research and constructing a viable Business Plan, are often the most important.
A Business Owner needs to always have a clear picture of the company’s past, present and future.
Your Business Plan should focus on potential and opportunity, while generating interest and excitement in those you are targeting. And whom are you targeting?
- If it’s a Lender; demonstrate profitability and payback potential, with a break-even analysis. They will also expect to see collateral and cash flow to secure the loan;
- If you are targeting an investor; demonstrate the ability for growth in both sales and profits, as well as providing a good ROI;
- A prospective partner or promising individual to help form your management team will want to see a sound strategy, good company management and potential for personal growth and profit.
And don’t forget to infuse your personality…your creativity…your PASSION!
1. Defining Statement – Your Business Idea & Goals
You’ve found a need, and you now need to demonstrate how you plan to fill it. Without giving too much away, touch on your proprietary advantages; trade secrets and/or business benefits that will give you the edge you need.
2. Industry Background
This shows that you have done your research. Provide a history and overview including: industry highlights; size; volume of sales; trends; growth factors; vulnerabilities; and opportunities.
3. Target Market Research
Developing your target’s profile will instil a strong sense of security into the reader. Include: Demographics (gender, age, income); Psychographics (habits, lifestyles and personal preferences); Geographics (location and competitive influences).
4. Marketing Strategies
Your marketing strategy will demonstrate how you will reach your target consumer and what your image and message will be. Discuss the marketing vehicles you will use, including online and offline initiatives.
5. Your Competition
Know your competition and your competitive advantages. The reader will also want to see that you know and have considered the risks and barriers of entry.
6. Operational Plan
Includes your floor plan; your purchasing plan (products, equipment & technological requirements); preliminary Menu of Services; the guest experience; facility maintenance; policies and procedures; and your reporting and monitoring systems.
7. Management Plan
Provide your personal profile, indicating what you have already researched and invested; milestones achieved; strengths; goals; and references. List other key management positions and profiles.
8. Staffing-Up Plan
What are your staffing requirements and logic? Provide professional profiles; experience and expertise; rough job descriptions; evaluation systems; and compensation structures.
9. Legal Structure
This includes Business Ownership; Insurance; Business Taxes; Business Registration; Licenses and Permits; and Employment Standards and Legalities.
10. Financial Structure
Your Financial Plan sets expectations, monitors progress; guides decisions; and displays results. Whoever your audience is, your projections for revenue, growth and profitability are the main factors being considered. Include as many of these statements as possible: Personal Net Worth Assessment; Business Assumptions (for Start-Up); Staff Payroll Projections; Monthly Sales and Cost of Goods and Services Sold Projections; Balance Sheet; Income Statement; Cash Flow Statement; Breakeven Analysis.
11. Business Risk Assessment – Exit Strategy
This should demonstrate your ability to anticipate and handle potential business risks and a possible “Plan B” process due to increased competition; fluctuating industry demands; negative economic impact (recession); supplier problems; staff challenges, etc.
Your Business’ sustainability needs to be well planned. Don’t be intimidated by this important assignment. The process and end result will not only give you a soaring sense of accomplishment, but will propel you to a new level of knowledge, understanding, expertise and confidence – all characteristics of a Successful Business Professional . . . and that’s YOU!
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