H&T Massage Therapy Business Plan: Prospect Road, Business Operations

This assignment presents a comprehensive business plan for H&T Massage Therapy, outlining the business idea, objectives, and goals. It includes a detailed market analysis, segmenting the target demographic and geographic location, and examining market trends and competition. The plan covers business operations, including location, distribution channels, staffing, and required expertise. Financial viability is assessed through statements of financial position, needs, and sales projections. Capital requirements and funding sources are also addressed. The plan concludes with recommendations for success, focusing on competitive advantages such as ambiance and service quality, and includes a marketing strategy with integrated communication mix. This plan is designed for a massage business located in a shopping area of Sydney targeting long working hours population and older age group. The business will offer Swedish, Thai, Maroccan Hammam, and Acupuncture based Massage Therapy.

Business plan
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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
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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
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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
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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).
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[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.
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[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.
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[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
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would hold customer count and income. During this time strong customer relationship
management approach would be followed. The last stage of decline would aim at two
strategies. One option would be winding up the business but restricting the business to re-
enter the growth strategy would be important here.
1.4 Target market characteristics/customer profile
The working age population in Australia are working hard. The trend below shows that
people at higher age are more likely to engage in the overtime working. On the other hand
men more than women are more engaged with the overtime working (Bagshaw and Hanna,
2017). These people need more wellness services to reduce their stress. Therefore current
business have great prospect because of this working culture. Another significant trend is the
increment of women in the working class population. 34% level of 1996 increased to 56% in
current time in terms of working women population (Bagshaw and Hanna, 2017). Therefore
female would be another significant segment for the current business. Another significant
trend of the working population is the increase in the retirement age of the people. It has been
seen that around 45 years aged people in Australia now plans to work up to 65 rather than up
to age of 63 years from 10 years ago. At current status around 13% people are engaged in
working who are 65 or more years old (heraldsun, 2016). Therefore the business can have a
customer at a early age of a working class people and can expect to have a long term
relationship to have long term customer value.
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[Source: Bagshaw and Hanna, 2017]
1.5 Competition
There are many competitor businesses in the Sydney locality. Some of the strong contenders
and their services are discussed below. The message business provides different experiences
to their customers. These experiences are delivered in the form of massage therapy brought
from different part of the world. These are the special competency, differentiation point and
competitive advantage of the businesses in the market.
Fleur de Lys- in their massage service they provide the experience of Maroccan Hammam.
One of their special services is the romantic couple spa (fleurdelysmedispa, 2018).
Lee Massage & Acupuncture- they provide massage service with the acupuncture therapy to
differentiate their services. The services are the remedial massage, feet reflexology,
acupuncture service and so on (leemassage, 2018). The organisation has proper customer
locality program in the form of gift voucher.
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Grand royal Thai massage- they provide the massage of Thai origin. Different services are
the ancient Thai and relaxing Thai type of massages, oil deep muscle massage, and
reflexology foot and so on (grandroyalthaimassage, 2018). the organisation also provides
sales discounts to their customer and in recent time they have invested on the premises to
attract more customer.
1.6 Competitive advantage
The main completive advantage of the current business is the ambience and service to the
customer. The current research for the business shows that the investment in the premises of
the massage shop is the approach of value addition. This business is also having that
approach. There would be separate large rooms with specialised massage therapist to deliver
the best satisfaction to the customers. There would be chosen to the customer in terms of
massage types. The competitor’s analysis shows that the other business does not provide any
choice to the customer in terms of type of massages but provide choice in their service live.
In the current business there would horizontal and vertical extension of different services for
the customer to choose from (Teece, 2010). These service type and premise facility and
ambience would be main competitive advantage for the business.
1.7 Location and/or distribution methods
The distribution channel is simple for the business. At the initial stage the business would
operate from one location in a busy shopping area of Sydney. The distribution channel
extension would be done at the end of the year 3 where the business would open in another
location based on the demand (Hollensen, 2010).
1.8 Product mix
In the horizontal product line there would be Swedish, Thai, Maroccan Hammam and
Acupuncture based Massage Therapy. Under all of the different types of massage therapy
some standardise service would be developed (Wilson et al., 2012). These standardise
services are Hot Stone, Aromatherapy, Deep Tissue, Shiatsu, Pregnancy, Reflexology
massage therapy.
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1.9 Pricing
The current business is providing lot of options to the customer with high quality of facility
and ambience of the premise. This is differentiation approach of business strategy. In
accordance to that the pricing policy is developed (Wilson et al., 2012). In this business
quality leadership pricing policy would be followed where the services would be charged at
higher the market average price to the customer at the beginning time of business operation
and price would increase as the business grows. But the price would not stop to average
market price as the value based pricing policy is followed where the business would provide
higher customer service and satisfaction compared to the competitor’s service (Wilson et al.,
2012). With growing business the quality of service would continuously increases in the
operation. This would higher price demanding factor for the current business.
1.10 Promotion
The business marketing promotion would follow the integrated approach marketing
communication. From the communicational mix the direct advertising, social media
advertising, direct selling, public relation and the sales promotion. As public relation process
the business would try to have article in the local newspaper. As per of the social media
strategy dedicated Facebook page and service video in YouTube would be developed. A
dedicated business website with high level of mobile device compatibility along with linking
with the social media is developed (Fill and Turnbull, 2016). A regular monitoring of the
website traffic flow and social media impression would be done. The direct selling approach
would be followed to promote the business by visiting the local gym, psychology clinic, and
professional health care serice provider, store of health food, hair and nail salon and so on.
The promotion would be done in the printed and online yellow page. The sales promotion
would work through the social media approach where up to 20% discounts would be
provided for Facebook page like or sharing the business links and a 50% discount would be
given for the new customers.
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