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Serenity now wk 5
- 1. The Problem Over the past few years there has been an increase of interest in healthier, organic lifestyle and alternative medicine. The problem for this market is that the locations that provide these types of services are few and far between. For this market most people who are interested in one area of this lifestyle usually will have an interest in the others as well. I believe this market is open to not only people who are dedicated to a more healthier, alternative lifestyle, but also to people who are just looking to try something new and different. The current market in this area does not provide many locations that provide these products or services and those that do only touch on one area such as just food, or yoga classes, or alternative medicine, etc. There are not any places that provide everything in a central location with a focus on holistic wellness.
- 2. Serenity Now The unique solution my company will provide for this market is a wellness center that provides a well rounded variety of services to the target market. Serenity Now will provide people access to organic smoothies, health seminars, massage therapist, yoga and tai chi classes. I think this solution would appeal to the target market because this can become somewhere they can visit on a daily basis for one service or another and not have to worry about driving to several locations in opposite directions. Come experience serenity for your body, mind, and stomach .
- 3. Industry AMTA estimates that 47 million Americans received a massage within the past year, and that the same proportion of respondents who visited a massage therapist for pain relief--about three in 10--ranked massage therapy and more conventional medications as delivering the greatest relief from pain (Modern Healthcare). American spend $5.7 billion a year on yoga classes and products annually, up 87% since 2004. The average cost of a yoga class is $12. Nearly 16 million adults in the U.S. practice yoga. Three-quarters of practitioners in the U.S. have been doing yoga for 5 years or less (Evans). In 2014, the United States organic food market is forecast to have a value of $42 billion, an increase of 63.3% since 2009. The compound annual growth rate of the market in the period 2009-2014 is predicted to be 10.3% (Organic Food Industry Profile: United States).
- 4. Target Market The Institute for Social-Ecological Research completed a survey of 1575 organic food products and found that their target markets were: The Holistic Convinced Consumer The Successful and Demanding Consumer The 50+油 Health Oriented Consumer The Cautious and Skeptical Consumer The Young and Undecided Consumer This data shows that the target market for organic foods is not just one type of consumer, they can be well rounded in applying the organic approach to their lifestyle in being more holistically convinces, health oriented, or just undecided/trying something new. It really make's it that much more convenient to live a healthier life style, which is not that easy to pursue due to the scarcity of resources and knowledge of how to obtain a healthier life style. So the convenience factor is a great advantage for this. - Oz Flores
- 5. Competitors A Therapy Above: They would be the top competitor because they are the closest business idea to my business idea. They offer a variety of services such as holistic doctor,health seminars, alternative medicine, and yoga/tai chi classes. Yoga 4 All: They are a yoga and massage therapist center that provides a welcoming atmosphere and a variety of classes that can fit anyone's schedule or skill level. Massage Envy: They are a membership massage therapist center where clients can sign contracts to receive discounted massages every month. Massage Envy has numerous locations for convenience even if their clients are out of town .
- 6. SWOT Strengths: Professional, friendly staff Multiple services in one location Weaknesses: New to the industry, no previous clients from this area Finding the right location to appeal to the target market Opportunities: Expanding the center to provide more organic spa treatments Expanding product line such as other organic items including clothes, hygiene items, etc. Expanding by adding a holistic doctor and/or nutritionist Threats Well established competitors Economic problems sometimes force people to choose the cheaper option instead of the healthier one
- 7. Business Model Yoga Studio, Massage Therapy Practice, and Smoothie Bar all in one location offering our customers convenient resources for a healthier lifestyle. Serenity Now will also offer low-cost or free health seminars . Yoga instructors and Massage Therapist will be independent contractors for the first 6 months, until 1 yoga instructor and 2 massage therapist are brought on as full time staff members. Myself and a full time staff member will be in charge of setting appointments, accounting, assisting staff and customers, and the smoothie bar. Payroll will also include a part-time marketing expert for designing and distribution. Online marketing through Serenity Now's website, social networking websites, and other free resources will be a main focus along with drive by traffic with a prime location and distributing fliers to local businesses that serve a similar target market.
- 8. Start-up Expenses Start-Up Expenses Monthly Expenses Legal $200 Rent $2000 Insurance $1000 Utilities $600 Payroll $5000 Payroll $5000 Rent/Sec. Deposit $3000 Inventory $500 Computer/Office Equip. $4000 Marketing $200 Pre-Marketing/Brochures $2200 Office Supplies $300 Misc. $600 Start-Up Expenses Total Start-up Expenses $16300 $16300 Start-Up Assets Start-Up Assets Cash in bank $20000 $25100 Current Assets $400 Cash for recurring costs Office Furniture $2000 (6 months) Signage $300 $49800 Leasehold Improvements $400 Total Start-up Costs Plant and Equip. $2000 $91200 Total Start-up Assets $25100
- 9. $2318.73 a week in sales in the first year $111300 revenues year 1 20% increase in revenue in year 2 30% increase in revenue in year 3 Sales Forecast 3 yr forecast Year 1 Year 2 Year 3 Total Revenues 111300 133350 144690 COGS 31620 37944 41106 Gross Margin 79680 95406 103584 Operating Expenses 79160 90380 90380 Operating Profit/ Profit Before Taxes 520 5026 13204 Taxes 145.60 1407.28 3697.12 Net Income 374.40 2618.72 9506.88
- 10. Cash Flow
- 11. Balance Sheet
- 12. References (2005). The lowdown on the rubdown. Modern Healthcare , 35(46), 60. (2010, September 4) Retrieved from Business Source Complete database. (2009). Organic Food Industry Profile: United States. Organic Food Industry Profile: United States , 1. (2010, September 4) Retrieved from Business Source Complete database. Evans, S. (2010). Om. Fast Company , (148), 116. (2010, September 4) Retrieved from Business Source Complete database. Institute for Social-Ecological Research. (2003, October). Bio+pro target groups in the market of organic foods . (2010, August 24) Retrieved from http://www.isoe.de/english/projects/biopro.htm
- 13. References NAMASTA. Memerbship options and benefits . (2010, September 12) Retrieved from http://www.namasta.com/services/memberservices.php#3 Rekve, G. Massage therapists business plan . (2010, September 12) Retrieved from http://www.referenceforbusiness.com/business- plans/Business-Plans-Volume-11/Massage-Therapists.html Sunriseconcepts. Overview of opening a yoga studio . (2010, September 11) Retrieved from http://hubpages.com/hub/Overview-of-Starting-Up- A-Yoga-Studio