Innovative Company Business Plan

Business Plan for Mom SpaExecutive SummaryMom Spa will provide spa services and products for mothers with small children: moms can get a facial or a manicure or have a relaxing foot rub while their children are watched in another room by child care. The products offered will be locally produced soaps, shampoos, and health and beauty products.The objectives of this business plan are to describe the market opportunity for this type of business and why it makes sense, how sales and marketing will be achieved, what the competitive analysis reveals, how operations will be conducted, what the management team will consist of, and how the business will be funded.The market for a spa that caters exclusively to mothers is enormous and in need. Todays spas do not take into consideration how hard it is for moms with small children to find the time for a relaxing trip to the spa. But a spa that can provide moms with child care service while mom gets a spa treatment would fill a unique gap in the market. The target market is young moms in middle to upper middle class suburbs. There are many spas in these target areas, but none that cater to moms with small kids. Every spa out there requires an appointment, which means moms need to work around the schedule of others and need to arrange day care. The competitive advantage of Mom Spa is that moms no longer need to worry about making an appointment or arranging their own care for kids.The growth potential of Mom Spa is high as it can be turned into a franchise and opened in any area where the target demographic is high. Mom Spa could be first to market, and this accomplishment would give it a strong brand appeal. It could also build that brand by selling locally produced products that help local producers to get their products to market.Funding requirements are based on assessments of rent, equipment, staff, materials, and operating costs. Funding will be provided by using equity financing, debt financing, and private investors. Private investment and crowdfunding will be used to obtain start-up capital.Overview and ObjectivesWhat is the Mom Spa? The Mom Spa is a way for Moms to get a spa treatment without having to worry who will watch their kids. The Mom Spa is a unique idea in the spa industry, as it caters specifically to mothers with small children. Most moms are busy, on-the-go, and have their hands full. At the same time, these moms are one population that needs most to de-stress. The average day spa that exists in the market today is not equipped to provide the care services that moms require in order to get a spa treatment. The target market consists of new moms, women in their 20s and 30s with young children who are not yet in school, in middle class and upper middle class communities.This business plan describes the products, services, market opportunities, sales strategy, marketing strategy, competitive analysis, operations, management team, and financial analysis necessary for bringing the Mom Spa to life. The goal of this business is to meet the needs of moms who otherwise will not get to the spa for some self-pampering and de-stressing. It is a worthy goal with moms as the target demographic.Products and ServicesThe Mom Spa will offer local health, beauty, and bath products that are produced by local manufacturers. It will provide general spa services along with day care services so that moms dont have to worry about what to do with their kids while they pop in for a spa treatment. The spa will cater to the children while Mom spends a few minutes on herself and refreshes. Services will range from massages, facials, nails, masks, and manicures, to shampoos, and anything else that Mom might expect from a day spa. The main service, however, is that kids will be watched by a certified day care specialist in a separate room while Mom is taken care of.The mission of the Mom Spa is to be the go-to provider of moms on the go with kids in tow. The vision of the Mom Spa is to be the community support for moms and local producers, so that everyone can come together to be the family that we all need, supporting one another, and satisfying one anothers needs at the local level.Market OpportunitiesAs University of Maryland sociologist Steven Martin notes, Large families have consistently been commonTwo is the norm, but for every 34 mothers who stop at two, there are 28 who have three, four, or more (BabyCenterStaff, 2019). In other words, there is a tremendous market opportunity for a spa that caters specifically to moms with multiple kids in tow. In fact, Bemis (2015) has shown that nearly 90% of moms today believe they are more stressed than their own mothers were in the previous generation; more than 2 in 3 moms are concerned about their own health and are stressed about finances; and more than half struggle to maintain a healthy work-life balance. Because moms are pulled in so many different directions all while trying to care for the kids, they dont have time for a traditional day spa that doesnt consider their needs. Yet these moms need a spa treatment. Neely et al. (2009) have found that even just a few short minutes of self-pampering can help women de-stress significantly.…

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…consist of a child care manager and a spa services manager. The units will be separated as they are two distinct branches, but the managers will report directly to a general manager. Once the spa is franchised out, general managers will cover various districts and report to a regional manager. The regional manager will be responsible for reporting to the CEO and board. The spa will have to incorporate so as to ensure that the board of directors and CEO are able to build the company with the goal being to franchise.Financial AnalysisThe start-up capital for the Mom Spa will come from private investors and from crowdfunding. Donors and investors will contribute 60% of funds for the business, and 40% of funds will come from bank loans. The corporation will sell shares to investors, and a share in the Mom Spa will be something that represents the shareholders proprietary interest in a corporation; specifically, it represents a right to declared dividends, a right to share in corporate assets upon liquidation, and if voting shares, the right to vote (Chopper et al., 2016, p. 204). Classes of shares will consist of common stock, preferred stock, and derivatives. Common shares will be used to give pro rate dividends, voting rights and rights to liquidated assets, while preferred shares will give more rights and preference to shareholders of this type of share. Shareholders will be entitled to distributions, which can be performed via dividends, or by redemption and repurchase of shares (Chopper et al., 2016).It is expected that the business will be cash flow positive by the end of the first year, and will be able to retain staff and launch new spas in new markets while also servicing its debt and providing shareholders with distributions. Based on expected revenues of subscription rates for $250 for gold per month, $150 for silver per month, and $50 for bronze per month, and expected visits based on sales, the revenue for the month could be upwards of $50,000 per month. The key will be to locate a place for the business that is in the vicinity of numerous schools where moms are likely to be found and where there is potential for growth for new communities.Keeping advertising costs at zero through word of mouth marketing and social media marketing will help to keep costs down, and partnering with local producers and using joint ventures to get local producers on board with the mission and vision of the Mom Spa will also help to keep costs down. Local providers of products will also mean that shipping and supply chains are nil, and this further alleviates costs that affect other spa companies. Excess capacity cost will not be…