Financial Plan for B&MS Spa

The assignment details the financial plan for establishing a new business, B&MS Spa. It involves assessing the owner's personal assets and liabilities, identifying sources of finance such as bank loans and personal savings, and determining the costs associated with setting up the business. The document also includes a breakdown of the total amount required to establish the business, which is AUS $130000.

BUSINESS PROPOSAL

TABLE OF CONTENTS
1. EXECUTIVE SUMMARY.........................................................................................................3
2.BACKGROUND.................................................................................................................3
3.AIMS AND OBJECTIVE OF SPA ....................................................................................3
4.DESCRIPTION ABOUT THE SERVICES.......................................................................4
5.MARKETING RESEARCH AND IDENTIFICATION POTENTIAL GROWTH .........5
6.MARKETING MIX............................................................................................................5
7.GAP ANALYSIS................................................................................................................7
8.COMPETITOR ANALYSIS...............................................................................................8
9.SEGMENTATION, TARGETING,POSITIONING .........................................................9
10. OPERATIONAL STRUCTURE......................................................................................9
11. Financial projection........................................................................................................10
11.1 Financial forecasts........................................................................................................10
11.1.1 Sales mix forecast.................................................................................................10
11.1.2 Cash flow forecast................................................................................................10
11.1.3 Projected Profit and loss.......................................................................................11
11.1.4 Owner's personal expenses...................................................................................12
11.1.5 Owner's personal assets and liabilities..................................................................12
12. Sources of finance..........................................................................................................13
REFERENCES..............................................................................................................................14

1. EXECUTIVE SUMMARY
In Australia business of spa is various famous because it give benefit to consumers and
increase the profit. unique combination of product and services are offered by B&MS to quickly
gain in market share. This salon providing facility of massage for relaxing them from stress, so
that body and mind of consumers can met with good atmosphere. This business have sole
proprietorship no any support of other organisation. This salon is located in the rock market of
Sydney in Australia which is best tourist place . This place is visit by all so that B&MS also
come in the knowledge of tourists. Services or product which are provided by this salon is
extraordinary and full of facility of natural product which have no any side effect. Production of
product is manufactured by owner of this company and some skilled skin specialist and
homeopathist is hired by employer so that they can give suggestions of herbal ingredients which
need to included in product. This analysis describe about the requirement of salon, market
structure, aims and objectives of opening spa.
2.BACKGROUND
Modernisation increase the demands of luxurious life, everyone want to live with all
facility. Demand of spa is continuously increasing in Australia so than I want open a spa in this
country according to the requirement of Australian people. I m opening my spa in Sydney the
name spa is 'Beauty and massage spa' (B&MS). Australian trends in relation to spa is that
females in this country want their proper body care. They always want too look young and fit
and other demand is that women's who are working retreat from stress in usually lives.
Relaxation is provided by our spa through various types of massage. Various specialist is hired
for giving best facility to customers (Culley and et.al,. 2017). Our spa providing facility of skin
and hair care because Australian environment need refreshing their skin timely and to manage
their hair for newly generation is very essential. Best beautician product are manufacture by our
spa according to the requirement of yield. Our products are free from side effects because herbs
which are necessary for production of beauty products are collected by our staff from flat rock
gully forest of Australia.
3.AIMS AND OBJECTIVE OF SPA
Aim of our beauty and massage spa is to satisfy the customers and complete those needs
which are not satisfied by other saloons. Provide best treatment to consumers so that their skin

look perfect and natural. Removing their stress by furnishing excellent professional services and
mercenary performance. Another aim of our spa is to earn maximize profit and develop our
business to all over the world. To expands our concern it is important that all type of
infrastructural facility in available in saloon which require good arrangement of finance.
4.DESCRIPTION ABOUT THE SERVICES
Our spa providing best facility of massage and services of steam bath, skin treatment, hair
fall control therapy, hair colour, hair cutting. 5 types of treatment therapy is available in this
saloon which relaxed customers in different way(Tan and Tsui, 2017). Different specialist is
hired for different type of therapy.
11 Trigger point therapy: This type of massage is available in our saloon because it helps
costumers to reduce the pain of body which bis origin by bind region within muscle
tissues.11 Swedish massage: This massage is provided those person who have facing stress. In this
light or medium pressure is given to customers body so that pain will reduce and they
feel relax.11 Cranial sacral therapy: This technique is used to give relief to headache by addressing
bones of head, sacrum, and spinal column.11 Sports massage: According to choice of customers a particular athletics is designated by
him which give direction on particular troublesome orbit like knee ,shoulder.11 Reflexology: this massage give pressure on points of hands ad feet which are in pain and
facing problem in moving because of more work which help to relax body and remove
overall stress.
Some beauty products are used by our spa for skin and hair which are manufactured in this
company. Their have no any side effect and useful for all type of skin. Such are sunburn skin
care cream, Aloe vera hair conditioner, herbal shampoo etc. B&Ms spa will provide facility of
treatment for eczema the skin diseases. Adult and children's both are suffering from this diseases.
This treatment is done by our spa by using natural product or herbs. To keep skin soft and supple
our spa will use emollients. The skin cream which reduced the problem of eczema made by our
company which contain natural herbs such are Arctium lappa which provide mineral and vitamin

to skin. Aloe vera (aloe barbadensis) is used to remove the spots and heals the wounds.
Dandelion (Taraxacum- Offinale) is also used in product so that it can help to clean the
dyshidrotic eczema which remove the fungal infection.
5.MARKETING RESEARCH AND IDENTIFICATION POTENTIAL GROWTH
Trends are changing according to new generation, measure changes come in fashion and
beauty product and treatment. Countless spa in Australia which built business successful and
offering beauty treatment at low cost . With market research it is identify that top spa are situated
in Byron bay (Carrigan, 2017). Spas includes variety of massages and different type of skin
treatment and acupuncture, consultation. Growth of business in spa is continuously increasing
because mind of people is set that everything is possible through spa and body get benefited by
therapies. B&MS also get benefit in future if it will provide best facility to consumer because
demands of spa is increasing in all over the world.
6.MARKETING MIX
It means to develop right product at right time and at right place. Business plan is
executed according to marketing mix because it help to identify the demand of market in country
and understand the technique to maximize profit. It include 7 Ps which are people, product,
prize, place, promotion, physical environment and process. Importance of 7ps is necessary in this
spa to analysis the complete situation of marketing which gives information related to market
and demands of public. What changes are required by company in management and which
services are like by customers is found by marketing mix.
(source: Hillman and Radel, 2017)

1. Product: Marketing mix help to increase the depth of our product line which help to
increase value of product more than other product. B&MS will gives importance to
various type of massage services and provide them beauty product which are produce by
our company (Nicolsonand et.al., 2017). Services should be such type which satisfied the
employees. services of our spa is different from other spa in country because we have
specialist for particular massage. Providing treatment of eczema through herbal product.
Steam facility is also available in our spa because for skin therapy it is necessary to make
skin smooth which can be possible through steam and by using Azardica indica, comfrey
, liquorice and other herbal plants.
2. Price: Amount of product is necessary for every organisation to compete in market
because heavy price in starting discourage customers toward spa. For newly business it is
necessary to use market penetration pricing method because to increase the image of spa
and compete with other saloons by fixing competitive price of product and services
which is important. According to this method customers will attract toward our spa by
seeing the competitive price of product because other spa is giving all facilities but
B&Ms providing extra facility in same prices because product we are using is
manufactured by our company so it reduce the cost of import and selling from other
countries. Facilities which are provided by our spa will give benefit to customers and our
company also. After increasing the value and goodwill of spa it will became easy to raise
the price of services. If services of B&MS will be favourable for client than they shall
ready to pay heavy amount.
3. Place: It is very important for development of new business, place for distribution of
services are decided. B&MS fixed the place for providing their services in Australia in
the rock market. The rock market is tourist attraction place than this is best spot for spa
because if more and more people come to visit market than they try spa once time it
increase the viewers of spa. This place is costly because it is tourist attraction place but
for the success of spa we choose this place because this place is away from main city but
near to flat rock gully forests. We are producing our product and need to collect herbs
from forests so that it will reduce the cost of transportation

4. Promotion: Promoting of B&MS is necessary because Australia is big country and it is
not possible to inform personally. So that for the promotion of spa it is necessary to give
advertisement to communicate with the people of country. Advertisement of B&MS Is
given through social media and press because today's generation use social sites too
much and it is not costly to advertised through this. But newspaper is read by all young
and old so it will also raise the publicity of spa.
5. Process: B&MS used standardised process to providing similar services to everyone. If
this saloon will fixed different facility for different customers than it reduce the
affectivity of spa. Treat all customers same and provide identical facility to all. Process
of spa is also such type which reduced the cost of saloon and increase the profit of
business. For example if B&Ms spa will decides to fix more prices of product for rich
families and low prices for poor family than it decrease the image of spa in eyes of
public.
6. People: It is very important for B&MS should appoint those persons who are qualified
and efficient to providing services. Specialist for skin therapy and homeopathist which
help in developing product and experts for massage will hired by this spa so that
consumer can be satisfied.
7. Physical evidence: It is important to Provide physical evidence for the product and
services and infrastructure of company. If the structure of spa is attractive than consumer
will attract toward saloon. Every consumer have demands of evidence because no
individual will waste his money on worst spa.. For example : prices are not described in
list for particular services and randomly prices are taken by spa than it reduced the value
of spa.
7.GAP ANALYSIS
This analysis involve the innovation idea in existence product or determine difference
between actual product and desired product. B&MS develop many changes in spa by creating
innovative changes in that facility which is provided by different saloon.

1. Changes in characteristics factor: Other spa of Australia is not produce their own
product but this salon is manufacturing their own product which is free from any side
effect and no any mix up of any chemical substance or includes natural ingredients.
Product of B&MS for skin treatment is reasonable or less than cost of other saloon. Cost
will be less of this spa's products because herbs are collected from forests by experts of
our company and find some herbs which solve the problems of skin. Such herbs will uses
by our company in making products are burdock, chamomile, cleavers, horsetail, aloe
vera, Neem, turmeric, etc.
2. Factors which help to achieve the future objectives: B&MS have all facilities but it
have not attractive interior. For the success in future and to run for long time it is
necessary to improve the interior. Customers who came here for relaxation required
beautiful and good environment(Hillman and Radel, 2017). So to cover this gap it is
important to analysis on the demand of public and compare with other saloons to
complete the needs of customers.
8.COMPETITOR ANALYSIS
If B&MS want to grow in competitive market it is essential to do competitor analysis.
When this spa get know about their competition it easy for this to stand in market.
Basis of difference B&MS Valonz hair-cutters District salon
Quality of product Best quality of product
for skin because
manufactured by own ,
natural ingredients, no
side effect.
Product is import by
other country, use
duplicate products.
Include Chemical
substance in skin
product, which give
temporary glow but
chances of skin
diseases.
Services provided Massage, hair spa and
skin treatment is
provided and give
discount to regular
customers.
Only facility of hair
spa , cutting and
colouring hair is
provided.
Skin treatment and
hair treatment is given
but massage facility is
not provided.

Prize of product Competitive product
prices and facility of
package for spa is
given.
High prizes for hair
cut which not include
hair wash.
Prizes are medium but
package facility is not
available.
Facilities Different new
techniques,polite
behaviour,herbal
products, steam bath,
relaxation massage,
repay the half amount
to consumers who are
not satisfied, proper
environment.
Different type of
haircut at same prize
and if not satisfied any
customers pay only 10
% refund.
Provide facility of skin
treatment and hair cut
but any specialist is
not hired and no any
refund programs.
Object To satisfied the
consumer and lead
their salon in overall
market by providing
best facility.
To earn maximize
profit and develop new
branch of their salon.
To earn profit.
9.SEGMENTATION, TARGETING,POSITIONING
Segmentation: B&MS segmented their market on the basis of psychographics conditions
of customers. This salon decides that persons who are living luxurious life than spa will provide
them product and services on fixed prices because they can afford(Campbell, 2016). Persons
who have not efficient money will provide them facility of spa at lower cost or by giving some
discounts. To identify the behaviours, hobby's, personality, attitudes and purchase choice of
consumer and provide them services accordingly.
Targeting : Target the consumers according to the demand of salon, B&MS decided that
first targeted the high income group who are capable to bear the expenses of spa because this

give profit to business. Spa will provide such facility which are like by people or who want to
live luxurious life and like to take treatment of skin and massage.
Positioning : To create the image of product or services of salon in the mind of
customers. B&MS will give services of refunding to non satisfied consumer and providing
facility of package in which include 1 massage and skin cream provided at free of cost with skin
treatment. It increase the value of salon and raise it position in market.
10. OPERATIONAL STRUCTURE
B&MS hired specialist for all type of massage and skin treatment. This salon hire 5
skilled person for 5 types of massage, two beautician, 1 skin specialist, workers who provide
facility of setup. 2 person for the haircut , one for the hair wash. One beautician for
facial(Tomlinson, 2017).

11. Financial projection
11.1 Financial forecasts
11.1.1 Sales mix forecast
Revenue
per person
Februa
ry
Marc
h April May
Jun
e July
Aug
ust
Sept
emb
er
Oct
obe
r
Nov
emb
er
Dec
emb
er
Jan
uar
y
Tot
al
Facial
massage 2400 3000 3900 4290
579
2
637
1
638
7
702
6
772
8
966
0
967
9
145
18
807
50
Skin
treatments 4620 4645 4671 4697
634
1
637
0
639
9
643
0
646
2
904
7
908
1
136
21
823
83
Head
massage 3220 3236 3252 3269
441
3
443
1
445
0
447
0
449
0
628
6
630
8
946
2
572
88
Nail arts 4185 4216 4247 4280
577
7
581
2
584
9
588
7
592
6
829
6
833
8
125
07
753
20
Hair
cuttings 4800 4823 4846 4869
657
3
659
6
661
9
664
2
666
5
933
1
935
4
140
31
851
50
Revenue 19225 19920 20916
2140
5
288
96
295
80
297
04
304
54
312
71
426
20
427
60
641
39
380
891
11.1.2 Cash flow forecast
Particulars
Augu
st
Septe
mber
Octo
ber
Nov
emb
er
Dece
mbe
r
Jan
uary
Feb
ruar
y
Mar
ch
Apri
l May
Jun
e July
Opening balance 16000 20684
2606
2
3243
4
3929
5
5364
5
6867
9
8383
6
9974
2
1164
64
1445
34
1727
42
Sales 19225 19920
2091
6
2140
5
2889
6
2958
0
2970
4
3045
4
3127
1
4262
0
4276
0
6413
9
Total inflow 35225 40604 4697 5383 6819 8322 9838 1142 1310 1590 1872 2368

8 9 1 5 3 90 13 84 94 82
Expense
Marketing
expenses 184 184 184 184 184 184 184 184 184 184 184 184
Administration
expenses 496 496 496 496 496 496 496 496 496 496 496 496
Finance cost 173 173 173 173 173 173 173 173 173 173 173 173
Salary and
wages 12000 12001
1200
2
1200
3
1200
4
1200
5
1200
6
1200
7
1200
8
1200
9
1201
0
1201
1
Depreciation 333 333 333 333 333 333 333 333 333 333 333 333
Preliminary
expenses written
off 667 667 667 667 667 667 667 667 667 667 667 667
Other operating
expenses 688 688 688 688 688 688 688 688 688 688 688 688
Total outflow 14541 14542
1454
3
1454
4
1454
5
1454
6
1454
7
1454
8
1454
9
1455
0
1455
1
1455
2
Net balance 20684 26062
3243
4
3929
5
5364
5
6867
9
8383
6
9974
2
1164
64
1445
34
1727
42
2223
29
11.1.3 Projected Profit and loss
Particulars 2017
Revenue 380891
Less: Cost of goods sold 152357
Gross profit 228535

Expenses
Marketing expenses 2760
Administration expenses 7440
Finance cost 2600
Salary and wages 180000
Depreciation 5000
Other operating expenses 10320
Sum of expenses 208120
PBIT 20415
Tax 0
Net profit 20415
11.1.4 Owner's personal expenses
Name of expenses Amount
Food 30000
Health 1200
Cloths 6300
Entertainment 1200
Credit cards 85000
Other 6000
Total 129700
11.1.5 Owner's personal assets and liabilities
Assets Amount
Own house 520000

Other real estate 42000
Motor vehicle 9500
Cash in hand 34000
Furniture 26000
Total assets 631500
Liability
Outstanding mortgage 125000
Personal loans 32600
Current bills 2000
Other debts 0
Total liability 159600
Net worth 471900
12. Sources of finance
For establishing new business i.e. B&MS company in beauty industry capital requires
which very significant aspect. Further, in order to open new firm total amount will be needed
which is worth of AUS $130000. For this basically two sources will be considered which are
stated below:11 Bank loan: It is one kind of external source in which owner will approach up to the bank
and take loan(Mann, 2016). Behind raising this fund cost will be imposed in terms of
interest which will $2600 at the end of next year.11 Personal savings: Another source which is an internal will be used by the owner in
which savings of personal life are taken into account for business establishment (Sources

of Finance, 2017). The reason for using this financing source is that, any kind of cost will
not to be imposed on potential B&MS spa.