Business Plan for H&T Massage Therapy

Business plan
1

Table of Contents
The Business Idea, objectives and goals....................................................................................4
1.0 Market analysis....................................................................................................................5
1.1 Target market size & segments........................................................................................5
1.2 Market trend.....................................................................................................................7
1.3 Life cycle/seasonality.......................................................................................................8
1.4 Target market characteristics/customer profile................................................................9
1.5 Competition....................................................................................................................10
1.6 Competitive advantage...................................................................................................11
1.7 Location and/or distribution methods............................................................................11
1.8 Product mix....................................................................................................................11
1.9 Pricing............................................................................................................................12
1.10 Promotion.....................................................................................................................12
1.11 Forward contracts/letter of interest..............................................................................13
1.12 Preliminary sales projections.......................................................................................13
1.13 Future business opportunities.......................................................................................13
2. Business Operations &Resources........................................................................................13
2.4 Location and type of business premises.........................................................................13
2.5 Distribution channels.....................................................................................................13
2.7 Staffing plan...................................................................................................................14
2.12 Technical expertise required........................................................................................15
2.13 Management expertise required...................................................................................15
2.14 Professional advisers....................................................................................................15
3. Financial Viability................................................................................................................15
3.1 Statement of financial position & needs........................................................................15
3.2.1 To cover operating costs and break-even....................................................................21
2

3.2.2 To cover desired net profit..........................................................................................21
3.2.3 At the businesses full potential or practical productive capacity................................24
3.3 Financial viability of the business idea..........................................................................24
4. Capital Requirements...........................................................................................................26
4.1 Capital requirements for business start-up.....................................................................26
4.2 Equity capital and details of business ownership...........................................................27
4.3 Loan capital....................................................................................................................28
4.4 Acquiring capital............................................................................................................28
5. Conclusion & Recommendations.........................................................................................29
5.1 Conclusion......................................................................................................................29
5.2 Recommendations..........................................................................................................29
Reference..................................................................................................................................31
3

H&T Massage Therapy
The Business Idea, objectives and goals
I’m going to start up a massage business in Prospect main road and I’m looking for any
available space close to the shopping area. My client that I aim to service will focus more on
the people working long period of day and the old people around 50 to 80 of age. My clinic
will be a big shop with all separate rooms inside to make my clients feel the most
comfortable as they expected.
Business objective
(long term directions)
Goals to achieving the objective (short term directions)
The things you need to do to reach your objective
1 In 2 years gain
double the clients
of first year (10 to
15 clients a day)
Advertising my business on new papers, social media such as
create Facebook and follow local business and healthcare
professionals, develop websites, yellow page, etc. Leave
business cards in gym, health care professional, psychology
clinic, medical clinic, health food store, nail & hair salon, etc.)
Giving out promotion such as 20% for the first week if share
and like the Facebook page; or half off for the first-time
customer.
Be a true professional therapy while treating clients, treating
them with warmth and respect, and to stay in touch.
2. Increase profit by
30% in 3 months
Gain more customers. Increase the price
Doing retail by selling massage oil, lotions, scrubs, hot packs,
massage tools, massage books.
Increase staff members.
3. Open up another
business in a
second location
after 3 years
Target new customer. Add and create new products to retail
market to make more profit
Open a private account to start saving money for the second
business
Find a good location for the second business that is easy to
grow and expand.
Get idea from current clients where I should open my next
business that could be more convenient for them or their
4

family, friends.
1.0 Market analysis
1.1 Target market size & segments
The current business plan is about the message business. Location wise the business is
expected to open at the shopping area. The following business plan would be based on the
specific objectives and the subsequent goal to achieve those objectives is also explained. This
chosen location would be shopping area or Sydney. The segmentation of the business is done
through demographic and geographic segmentation process. The geographic segmentation of
Sydney city is targeted in this business plan. In the demographic segmentation the targeted
options are the older age of 50 to 80 years of age group people. Then the occupation wise
demographic segment is also targeted. Here the long hour working population this is on
average 25 to 50 years of age group people are also targeted. Population wise the diagram
below shows that the long hour working population has the highest potential customer. The
population trend here is showing the aging trend. In next 10 years the retirement age
population would increase by 30.9% whereas working age population would increase by
26.5% (forecast.id, 2018).
5

[Source: forecast.id, 2018]
The size of the market can be understood from the household income. The diagram below
shows that the higher income group numbers of housefuls are greater than the national
average. This is promising sign. The weekly household earning of more than $2500 or greater
have close to 28.3% of total number (Profile.id, 2018). Therefore a sizable population having
higher spending capacity is appropriate for the current business to target.
6

[Source: Profile.id, 2018]
1.2 Market trend
Throughout Australia the wellness index is improving as shown in the below diagram. People
are less indulging unhealthy activity like the drinking or smoking, having less medical
condition, eating better and engaging with healthy business activity. The health and well spa
industry in Australia has close to $438m as revenue with an annual growth rate of 3.3% in
last five years (ibisworld, 2018). These last five years time period the completion in the
market increased and that impacted profitability slightly. The main demand driving factors
here are the busier lifestyle and growth in the discretionary income. In this industry expense
on the labour is highly and capital intensity is low (ibisworld, 2018). But is last five years the
upward trend in the capital expenditure is the reason for higher investment by the owners on
the service delivery premises.
7

[Source: roymorgan, 2015]
1.3 Life cycle/seasonality
There is less scope for seasonality factor in the massage business. Still the sales drop in the
winter time. But there are great health benefits that the customer can have during winter time
massage treatment. On the other hand business lifecycle wise there would be different
considerations. At the introduction stage of this business the early marketing effort would be
essential to win first set of customers. Here the discounts or the high quality service would
matter most. At the next stage of growth the strong customer base development would a high
priority. as strong business competency proper skilled massage service provider team
development would be important. During this time strong customer loyality program would
be developed. Apart from that word of mouth publicity and referral incentive skills would
also be important for the growth. During this growth stage the business wuld open in other
prospective locations. During the maturity stage with expected expense pattern the business
8