Day Spa Business Plan

Start your plan
Start my business plan

Start your own day spa business plan

Pamperzhou Day Spa

Financial Plan

Forecast

Key Assumptions

The financial plan depends on important assumptions, most of which are shown in the following table as annual assumptions. We assume cash payments for all services, except for the 1% of sales projected as insurance reimbursements, with collection days at 90. The collection days are for insurance billings only. Interest rates, tax rates, and personnel burden are based on conservative assumptions.

Two of the more important underlying assumptions are:

  1. We assume a strong economy, without major recession.
  2. We assume, of course, that there are no changes to the Medical/insurance Industry, such as the nationalization of health care.

Revenue by Month

Chart visualizing the data for Revenue by Month

Expenses by Month

Chart visualizing the data for Expenses by Month

Net Profit (or Loss) by Year

Chart visualizing the data for Net Profit (or Loss) by Year

Financing

Use of Funds

The bulk of the start-up costs will be invested by the owner and the remainder will be funded through short-term financing. Details are provided in the tables below.

Start-up Expenses

Legal $2,500

Printing, stationery, bags, grand opening coupons $3,500

Brochures $500

Construction/Design $45,000

Insurance$2,000

Rent $17,000

Advertising $5,000

Accountant $950

Linens $4,000

 

The total startup cost is $80,450 which includes: Massage table equipment,  Aesthetician Equipment – $2,800 (2 room setup), Decor and Furnishings – $13,000, Envision Software & Equipment – $4,000, Signage – $3,500, Backbar Supplies – $5,000

Sources of Funds

Owner investment of $135,000

Statements

Projected Profit & Loss

2020 2021 2022
Gross Margin $448,052 $543,850 $682,550
Operating Expenses
Salaries & Wages $152,000 $283,968 $404,504
Employee Related Expenses $30,400 $56,794 $80,900
Marketing $5,500 $6,000 $6,000
Rent $66,000 $66,000 $66,000
Utilities $3,000 $3,000 $3,000
Advertising $3,000 $3,000 $3,000
Insurance $1,500 $1,500 $1,500
Other $1,200 $1,200 $1,200
Phone $1,500 $1,500 $1,500
Marketing Expense $2,000
Startup Expense listed in Use of funds $80,450
Interest Incurred $354 ($1) $0
Depreciation and Amortization $4,000 $4,000 $4,000
Gain or Loss from Sale of Assets
Income Taxes $14,572 $17,534 $16,641
Total Expenses $531,193 $645,646 $840,696
Net Profit $82,577 $99,354 $94,304

Projected Balance Sheet

2020 2021 2022
Cash $70,039 $56,076 $58,429
Accounts Receivable $0 $0 $0
Inventory
Other Current Assets
Total Current Assets $70,039 $56,076 $58,429
Long-Term Assets $40,000 $40,000 $40,000
Accumulated Depreciation ($4,000) ($8,000) ($12,000)
Total Long-Term Assets $36,000 $32,000 $28,000
Accounts Payable $0 $0 $0
Income Taxes Payable $14,572 $4,384 $4,157
Sales Taxes Payable $23,891 $16,762 $21,037
Short-Term Debt $0 ($1) ($1)
Prepaid Revenue
Total Current Liabilities $38,463 $21,145 $25,193
Long-Term Debt
Long-Term Liabilities
Paid-In Capital $135,000 $135,000 $135,000
Retained Earnings ($150,000) ($167,423) ($168,069)
Earnings $82,577 $99,354 $94,304

Projected Cash Flow Statement

2020 2021 2022
Net Cash Flow from Operations
Net Profit $82,577 $99,354 $94,304
Depreciation & Amortization $4,000 $4,000 $4,000
Change in Accounts Receivable $0 $0 $0
Change in Inventory
Change in Accounts Payable $0 $0 $0
Change in Income Tax Payable $14,572 ($10,188) ($227)
Change in Sales Tax Payable $23,891 ($7,129) $4,275
Change in Prepaid Revenue
Investing & Financing
Assets Purchased or Sold ($40,000)
Investments Received $135,000
Dividends & Distributions ($150,000) ($100,000) ($100,000)
Change in Short-Term Debt $0 $0 $0
Change in Long-Term Debt
Cash at Beginning of Period $0 $70,039 $56,076
Net Change in Cash $70,039 ($13,963) $2,352
Download link edge graphic Download this plan

Start your own day spa business plan

Start your own business plan

LivePlan logo Start planning

Your business plan can look as polished and professional as this sample plan. It's fast and easy, with LivePlan.

Get the Bplans newsletter:

Expert business tips and advice delivered weekly.