business plan - float north – floatation and massage therapy...

BusinessPlan

BusinessName:FloatNorthLLC

Owner:DanaHighfill

Date:12/4/2015

Websiteaddress:www.FloatNorthPDX.com

Emailaddress:[email protected]

TABLEOFCONTENTSEXECUTIVESUMMARY.................................................................................................................................2

OPERATIONALPLAN....................................................................................................................................3

BusinessDescription................................................................................................................................3

Location...................................................................................................................................................3

ManagementandPersonnel...................................................................................................................4

Owner’sExperienceandBackground......................................................................................................4

LegalStructure.........................................................................................................................................5

PermitsandLicenses...............................................................................................................................5

Accounting&RecordKeeping.................................................................................................................5

Insurance.................................................................................................................................................5

MARKETINGPLAN........................................................................................................................................6

MissionStatement...................................................................................................................................6

MarketNeeds..........................................................................................................................................6

TargetMarket..........................................................................................................................................7

MarketPotential......................................................................................................................................7

BusinessAdvisors.....................................................................................................................................8

MarketingOutreachPlan.........................................................................................................................8

CompetitorsAnnalysis...........................................................................................................................10

PricingStrategy......................................................................................................................................11

SWOTAnalysis.......................................................................................................................................12

FINANCIALPLAN........................................................................................................................................13

MonthlyPersonalBudgetChart............................................................................................................13

Start-Up/ExpansionCosts....................................................................................................................13

SourcesofFinancing..............................................................................................................................14

Break-EvenPoint...................................................................................................................................15

ProfitandLossStatement.....................................................................................................................16

CashFlowProjection.............................................................................................................................17

EXECUTIVESUMMARY

FloatNorthLLCprovidesmassageandfloatationtherapyinNortheastPortland.FloatNorthoffersstate-of-the-artfacilitiesforhealthandrelaxation.WehaveofferedmassagetherapyinNortheastPortlandsince2009andareintheprocessofarebrandingandexpansiontoincludefloatationtherapy.

Floatationtherapyhasbeenaroundsincethe1950’sandhasbeenproventohelpintreatmentandrecoveryofmanyconditionsandstressrelatedillnesses.Afloatroomalsoknownasafloatationtank,isasoundproof,lightproof,4-footby8-footfiberglasspoolfilledwithafootofheatedwaterthathasbeensaturatedwithEpsomSaltallowingapersontofloatonthewaterssurfacewithnoeffort,noexternaldistractionsandmaximumcomfort.

Buildingasoundproof,salt-proofandwaterprooffacilityrequiresinvestment.Eachroomhasitsownshowerandcostsanaverageof$50,000toconstruct.OceanFloatRoomsTM,thestand-alonefeaturepicturedbelow,are$41,500each.FloatNorthneedsfundinginordertosecurearetaillocation,purchase3OceanFloatRoomsTMandcomplete3-6monthsofconstruction.Financingrequirementstotal$270,000.DanaHighfill,theowneriscontributing$50,000.Weareseekingabankloanintheamountof$220,000.

Ourconservativegoalistooperateat35%capacitywithinthefirst3months,bringinginatleast$11,340permonthinfloatincomeand$4,590inmassageincome.Itisnotablethat,acompetitor,TheFloatShoppereportedoperatingat50%capacitywithinthefirst2monthsofoperation.Bytheendof2017weexpecttobeat75%capacitybringinginatleast$24,000permonthinfloatincomeandaconservative$9,800inmassageincome.Therearethreecompetingfloatcentersintownandallhaveexpandedsinceopening.Operatingcostfor3floatrooms,1massagetherapyroomis$11,325permonthincludingloanpayments.

FloatNorthhasacustomerbaseof263people.Wecurrentlyseeanaverageof60clientspermonthwiththeaverageclientbringingin$82persessionforatotalincomeof$4,900/month.Marketingincludesword-of-mouth,emailcampaigns,socialmediaads,donationstolocalorganizations,andclientreviewsonyelp.comandourwebsite.Facebook,Twitterandtalkingtopeopleinourcommunitiesaretoolsbywhichweareincreasingcurrentandfutureclientawareness.Expansionfrommassagecentertoanintegratedmassageandfloatcenterwillutilizearobustmarketingplan(pages8and9)andhelpussucceed.

OPERATIONALPLAN

Nameofbusiness:FloatNorthLLC

Typeofbusiness:FloatationandMassageTherapyWellnessCenter

BusinessDescription1. Service–FloatNorthprovideshealthandwellnesstoclientsbyofferingfloatationandmassage

therapyservices.Byaddingtheabilitytoofferfloatationtherapyinoneofourthreestate-of-the-artOceanFloatRooms,combinedwithmassagetherapyfromhighlyskilledmassagetherapistsweofferauniqueenvironmentinwhichtoheal.Wehavecreatedabeautiful,calmandwelcomingenvironmenttohelpyougetthemostoutofyourexperience.

FloatNorthoffersdiscountedpackagesavailableforthosewishingtocombinefloatingandmassagetherapy.

FloatNorthalsooffersMembershipsthatsupportwellbeing.Receivemassageand/orfloatationtherapyaspartofyourregularpreventativewellnesspractice.

2. Retail–Productsforsaleinclude:painrelievingCryodermtopicalgel,Chineseherballinimentsforjoints,hot/coldpacks,foamrollers,specialtypillows(buckwheatandmemoryfoam),CorrectToesTM,booksrelatingtohealthandfloating,giftcertificates,andEpsomsalt.Suppliersvarydependingontheproduct.InventoryistrackedintheHelm,softwaredesignedspecificallyforfloatcenters.

LocationFloatNorthwillbelocatedat1412NEAlbertaSt.Portland,Oregon97211.Youcanreachusat503-442-7177.Thespaceisserene,comfortable,includeshandicapaccessandstate-of-the-artequipmentincludinganelectric-liftmassagetable.

The2mainfloatcentersinPortlandareFloatOninSoutheastwith6tanksandTheFloatShoppeinNorthwestPortlandwith4tanks.FloatNorthwillfillademandinNorth/NortheastPortland.

ManagementandPersonnelDanaHighfillisownerandmanager.Sheisresponsibleforhiringandtraining1-2part-timereceptionists,and1part-timeLicensedMassageTherapists(LMT).Additionalstaffwillbehiredasdemandincreases.Danawillworkasreceptionist,tounderstandclienteleandtheirneedsbetter,3daysperweekandLMT2.5daysperweekforthefirst6months.

Thereceptionistisresponsibleforschedulingappointments,returningphonecalls,greetingclients,showingclientsthefacilities,answeringquestionsaboutmassagetherapyorfloatationtherapy,collectingpaperwork,processingpayments,cleaningfloatrooms,doinglaundry,andreplacingsupplies.Therewillbeonereceptionistondutyatalltimes.Receptionistswilleachworkanaverage25-30hoursperweek.LMTsmayfillinforreceptionistsduringlunchandbreaktimes.

Massagetherapistsareresponsibleforgreetingclients,reviewingintakeforms,answeringquestionsaboutmassagetherapyorfloatationtherapy,collectingpaperwork,setupandcleaningofmassagerooms,providingmassagetherapy,andprovidingreliefforreceptionistsasneededduringbreaksandbusytimes.LMTswillbepaidseparateratesformassagetherapyvs.receptionistrelief.LMTswillmaintainingacurrentOregonmassagetherapylicense,ContinuingEducationhours,andProfessionalLiabilityInsurance.

Employeesreceivefreefloatsanddiscountedmassagetherapy.Wevalueouremployeesandencouragethemtotakecareofthemselvessothattheyareabletotakecareofourclients.FloatNorth’sgoalistocreateahealthycommunitybothfromwithinourwallsandinthelargercommunityofPortland,Oregon.

InsuranceBillingiscontractedouttoMedicalBillingSpecialistswhochargeaflat4.5%.

BookkeepingandtaxesaresourcedouttoRainbowTaxandAccounting.

Owner’sExperienceandBackground1. Technical:DanahasaBachelorsofIndustrialDesignfromPrattInstitute,studiedmassageat

theOregonSchoolofMassageandcontinuestotraininShiatsuwithAkiraImaiofTheShiatsuCenterinPortland.Sincebecominglicensedasamassagetherapistin2009,Danahasworkedinawidevarietyofhealthcareandwellnesssettings,including2yearsinthespaindustry,4yearsat2differentchiropracticclinicsand1yearworkingwithanacupuncturist.InFebruary2015DanacompletedtheFloatApprenticeshipforbusinessownerswhereshelearnedhowtobuild,run,andmarketafloatcenterfromtheco-foundersofFloatOn,whatisconsideredthemostsuccessfulfloatcenterintheUS.

2. Marketing/Sales:AsownerofSoaringDragonMassage(nowFloatNorth)Danahasgrownthebusinessfrom5-8clientsperweekto10-18clientsperweekoveraperiodof6months.DanaattendedMercyCorpNWBusinessFoundationsI&IIcourses.DanahasconsultedwithDerekWyatt,marketingspecialistforFloatOn.

3. Financial:In2015DanareceivedtheMercyCorpIDAGrantandusedthattocompletethefirstexpansionofherbusiness.DanaconsistentlyusesresourcessuchasMercyCorpNWandPCC’sSBDCtolearnnewandmoreefficientwaysofkeepingtrackoffinancialrecords.Creditscoreis816.

4. Planning/Organizing:SheownesandoperatesSoaringDragonMassage.Since2009shehasconsistentlygrownthebusinessandbecameafull-timesoleproprietorinApril2014.

MCNWBusinessPlanTemplate5|P a g e

LegalStructureLimitedLiabilityCompany(LLC)

LLCistheoptimallegalstructureatthistime.Itofferstheprotectionofacorporationandtaxefficienciesandoperationalflexibilityofasoleproprietorship.

WeareapplyingtobecomeanOregonBenefitCompanyinwhichacompanyconsidersitsimpactonsocietyandtheenvironment.

AsFloatNorthexpandsintomultiplelocationswewillre-evaluatethelegalstructureyearly.

PermitsandLicensesFloatNorthLLCisregisteredwiththestateofOregon.Registry#1167003-94

EmployerID#46-4587306

DanaHighfillislicensedinOregonsince2009.ORLMTLicense#16698

OregonBoardofMassageTherapists(OBMT)facilitiespermit.

FloatTanksarenotregulatedinMultnomahCountyandneednospecialpermits.FloatTanksaredesignedtostringenthealthandsafetyregulationstoensureacleanandpleasantexperience.Thewaterisfilteredaftereachuse.Inaddition,UVandperoxidesanitationsystemsdeliver100%sterilewater,ararestandardforthisformofsanitation.http://oceanfloatrooms.com/en/optional-extras

Accounting&RecordKeepingRecordsinclude:

Income–DetailedaccordingtotypeofserviceorproductandrecordedonSquareup.compointofsalesystem.Recordeddaily.Asasole-proprietorkeepinghardcopy,willbetransitioningtoQuickBookssoftware.

Expenses–RecordedbycategorydailyonMint.com.Analyzedasasoleproprietorviahardcopyrecords.WewillbetransitioningtoQuickBooks

Clientinformation–Recordedinhardcopyontheintakeform.Transferredandfiledelectronicallyonbookingsoftwarefloathelm.com,mailchimp.comandaclientrelationshipmanagementsoftware.

Insurancebilling–SentelectronicallytoMedicalBillingSpecialistsonaweeklybasis.

SOAPNotes–RecordedbyLMTsforindividualmassageclientsessions.

FloatNotes–RecordedbyfloatclientsinhardcopyandscannedorrecordeddigitallyintheirfileonaniPad.(Optional)

Productsales–RecordeddailyonSquarePOS

ProductInventory–TrackedonFloathelm.com

Tankmaintenancesystem–Floathelm.com

Employeeguide–EmployeelogintoreadviaFloatNorthwebsite

Employeemanagement–StaffschedulingandtimeclockrecordedatFloathelm.com

InsuranceBusinessPersonalPropertyinsurancepolicyassoonasaspaceisleased,expectedOctober2016.

DanaHighfillisamemberofAssociatedBodywork&MassageProfessionals(ABMP).ArequiredpolicyaspartofOregonmassagetherapylicensure,whichcoversProfessionalandGeneralliabilities.

ABMPMemberID:#843068-Thepolicy:AnnualAggregateof$6M.PerOccurrenceLimitof$2M.


MARKETINGPLAN

MissionStatementHelpingpeopleimprovethequalityoftheirlivesthroughmassageandfloatationtherapy.

MarketNeedsMind-bodytechniquesareevermorepopularasthegeneralpublicpaysattentiontotheirhealthandrecognizewhattheycandotoimprovetheirhealth.Healthcareprovidersarenowunderstandthelong-termbenefitsofpreventativecare.Massageandfloatationtherapyareexcellentformsofcomplementarymedicinethatfacilitateshealingfromillnessandinjuryaswellaspreventmajorillnessesbydecreasingthemajorcauseofdisease:stress.

Floatationtherapywasoriginallydevelopedasawaytostudyconsciousness.Similartomeditation,duringafloatthebrainachievesstatesofconsciousnessandrelaxationnotavailabletousduringnormalwakinghours.Formany,thesestatesarenotavailableduringtheirmostrestfulsleep.Floatationtherapyhasmanybenefits.Themostresearchedeffectofflotationisthatitenhancesperformanceinavarietyofathleticandmusicaltasksthatrequirehighlevelsofconcentrationandvisual-motorcoordination,includingbasketball,tennis,archeryandjazzimprovisation(http://goo.gl/cEgrRx).Floatationspeedshealingofmuscles,jointsandbones(Adams,H.B.1988).Floatationiscurrentlybeingstudiedtohelpveteran’srecoverfromposttraumaticstressdisorder(PTSD)andfibromyalgiasufferersreducetheirpain.NavySealsareusingfloattankstotreatconcussionsandmanymorepeopleareimprovingtheirlivesandhealththroughfloatationtherapy.

Massagetherapypairsnaturallywithfloatationtherapytoinducerelaxationandhealing.Recentresearch(https://goo.gl/l95uO5)hasshowntheeffectivenessofmassageforthefollowingconditions:

• Cancer-relatedfatigue• Lowbackpain• Osteoarthritisoftheknee• Reducingpost-operativepain• Boostingthebody’simmunesystemfunctioning• Decreasingthesymptomsofcarpaltunnelsyndrome• Loweringbloodpressure• Reducingheadachefrequency• Easingalcoholwithdrawalsymptoms• Decreasingpainincancerpatients• Fibromyalgia

Lowbackpainisthesingleleadingcauseofdisabilityworldwide,accordingtotheGlobalBurdenofDiseaseStudy2010.HelpingpeoplerecoverfromormanagebackpainisjustoneofmanyopportunitiesforFloatNorthinthefloatandmassageindustries.


TargetMarketClientsfallintooneoffourgeneralcategorieswhethercominginforafloatoramassage:Injury

Recovery,Self-Care/Relaxation,AlternativeCareUsers,andAthletes.Theyrepresentseparategroupsformarketingandretentionpurposes.Eachgeneralcategorywillbetargetedaccordingtothemarketingoutreachchart(pg.9).

Self-pampering/Self-Careisoneofthemainreasonspeoplereceivemassage.Theseclientsareprimarilywomenages

45-60,educated,middletoupper-middleclass,marriedorpartnered.Asagrouptheyarehealthy,valueself-care,arephysicallyactiveandoftenseekothercomplimentaryhealthcareprovidersasameansofpreventativecare.Clientswhohavethedisposableincometoreceivemassageforrelaxationandstressreductionarethecoreofourlong-termrepeatcustomers.Theseclientswillcomeonceaweektoonceamonthforyears,andoftenreferotherfamilyandfriends

InjuryRecoveryclientsareoftenabletogettheircarecoveredbyinsurance.Weaccepthealthinsuranceandtakecareofbillingtheirinsuranceprovider.Motorvehicleaccidentsandworker’scompensationcasesarealsoacceptedwithadoctor’sprescription.FloatsarenotcoveredbyinsuranceintheUS,butgettingclientsinthedoorforthebenefitsofmassagewillexposethemtothebenefitsoffloatingandwepredictcrossover.Insuranceisanticipatedtobe25%orgreaterofourtotalmassagetherapyincome.Marketingeffortssupportengagingwiththisdemographic.

Discountsandpay-it-forwardservicesareofferedforVeterans,students,seniorcitizens,disabledcitizensandotherunderservedcommunities.

MarketPotentialAccordingtothe2014StateoftheFloatIndustryReportbyFloatTankSolutions,mostfloatcentersofferotherformsofwellnessservicesinadditiontofloating.Massageisthenumber1servicepairedwithfloating.Approximately43%offloatcentersintheUShave2tanks,while30%haveonly1tank.AtFloatNorthwearecombingmassagetherapyandfloatationtherapytobestreachourtargetmarket.

WearemovingtotheblossomingAlbertaArtsDistrict.MedianincomeintheAlbertaArtsdistrictis$67,000in2013.Theadjacentneighborhood,Sabin-Irvington,hasamedianincomeofalmost$91,000in

2013.Theneighborhoodtotheeast,Alameda,hasamediaincomeofalmost$100,000in2013.

Atthistime5%ofthecurrentclienteleliveintheConcordianeighborhood.ItisnotablethatmanyclientstravelfromotherareasofPortlandandSWPortlandincludingoutlyingareassuchasVancouverandTigardtoreceivethehighqualitycarethatFloatNorthoffers.

Since2009,FloatNorth(formerlySoaringDragonMassage)hasbeengrowing.In2015wesawanincreaseofmorethan32%insalesfromthepreviousyear.2016willbeabigyearfor

FloatNorthaswemoveandexpandtooffermoreservicestomoreclientele.

Source:http://goo.gl/nOPzAx

The Float Shoppe

Everett House

Mudra Massage

Float On

FLOAT NORTH


BusinessAdvisors• FloatApprenticeshipforbusinessowners–FloatOn,Portland,OR

• FinancialAdvisor:MichaelTucker–AssistantDirectorofAccountingatTexasChildren’sHospital

• FoundationsI&II–MercyCorpNW

• BusinessCounselingsessions–MercyCorpNW

• ImprovingYourFinancialLiteracySeminar–MercyCorpNW

• FilingtheSmallBusinessTaxReturn–MercyCorpNW

• StrategicAdvisor:BruceMeizer–PCCSmallBusinessDevelopmentCenter(SBDC)

• ABMPCareerDevelopmentandBusinessManagementResourcesincludingwebinars,businessplanandmarketingmaterials.

• BusinessAdvisor:SandraandDylanCalm–OwnersofTheFloatShoppe

• MarketingSpecialist:DerekWyatt–FloatTankSolutions

• DesignConsultant:AustenAngell–ModernEdge

• BusinessCoach:WesleyHsue

• MassageTherapistsAdvocacyGroupofOregon

• Mentor:MayaHerzig,LMT(23yearsofexperience)

MarketingOutreachPlanClientstendtofallintooneormoreofthefollowingcategories:InjuryRecovery,Self-Care/Relaxation,AlternativeCareUsers,andAthletes.Eachgrouprequiresadifferentmarketingstrategy.Online,in-personandpublicityoutreachplanswillhavedifferenteffectsondifferentmarketcategories.Wemeasurebasedonclientcategoryandtakethisintoaccountwhileimplementingthefollowingmarketingoutreachplan:

Online/SocialMedia

What Frequency Howtomeasure TargetMarket CostGoogle Clicksperdaycost Numberofnew

inquiries/monthAlt.Care,InjuryRecovery

$5-$20/day

Yelp Quarterlydeals Numberofpurchases

Self-Care 18%discountoffourservices

Facebook Dailypoststoengage&educate

Customerengagementvs.numberofnewcustomers

Adsspecifictoeachofthe4maincategories

$10/day

E-newsletter Monthly Numberofclicks Self-Care $20/month

Healthprofs.com Monthly Inquires/month Alt.Care,Injury $30/month


People/Networking

What Frequency Howtomeasure TargetMarket CostAttendhealth,sports,orbusinesseventsinthePortlandarea

1permonth Numberofinteractionsanddemographicscollected

Athletes,InjuryRecovery

Varies

Offerdiscountedfloatstoorganizations

1organizationevery2monthsor6orgsperyear

Numberofnewclients

AlternativeCare,Self-CareInjuryRecovery

15%-40%discount

Floatscholarshipstounderservedcommunities

Dependsondemand

Numberofnewclients

AlternativeCare,InjuryRecovery

Matchedpay-it-forwardprogram

Discountedgiftcertificates

1-2peryear,i.e.HolidayGiftCertificates

Numberofgiftcertificatessold

Self-Care 15%-40%discount

Reachouttohealthcarepractitioners

3peopleeachmonth

Referralnetworkincrease

InjuryRecovery,AlternativeCare

Varies

OtherPromotionandPublicity

What Frequency Howtomeasure TargetMarket

Cost

DirectmailingPostcard

2peryearforclientbirthday&anniversarywithus

Numberofnewbookingsfromthatclientwithinamonth

Allcategories–specificpostcardfortypeofclient

$0.35perpostcardaverage$15permonth

DirectmailingBrochure

Every3monthstoadifferentadjacentneighborhood

EducationalNumberofnewbookingsorinquiries/month

AlternativeCare,Athletes,Self-Care

$0.49perletter–average$30permonth

DirectmailingPostcard

Thankyoucardtoallnewclients

Clientsretained Allcategories $0.35perpostcardavg$15permonth

Magazineandblogarticles

1perquarter #ofnewinquiries/quarter

InjuryRecovery,Alternativecare,Athletes

Varies

Anniversary/Clientcelebrationevent

Onceperyear Howmanypeopleshowup

Allcategories $200-300

1Monthbeforeopeningoffersonline,print

Membership+afreefloat+10%offretailfor$60

Numberofnewmembers

Allcategories Varies


CompetitiveAnalysisName FloatNorth FloatOn TheFloatShoppe MudraMassage

Location Current:2143NEBroadwaySt.

New:NEAlberta

4530SEHawthorneBlvd.

1515NW23rdAve. 2627NEBroadwaySt.

Quality 5starsonGoogleandYelp

4.5starsonGoogleandYelp

5starsonGoogle

4.5starsonYelp

5starsonGoogleandYelp

Rangeortypeofservices

2OceanFloatRooms,2MassageTherapyRooms

6FloatTankstotal:2OceanFloatRooms,2pods,2pools

3FloatTanks,Massage,Acupuncture,Yoga,Counseling

1FloatTank,5MassageTherapyRooms

Price $75/90minfloat,$85/hr.massage

MonthlyMembership:$65

$65/90minfloatnomassage

Membership:Startingat$110

$70/90minfloat$79/hr.massage

Membership:Startingat$59

$60/90minfloat$90/hr.massage

Membership:noHowtheymarket Yelp,Google,

Facebook,word-of-mouth,events

Groupon,Yelp,Google,Facebook,word-of-mouth,events



Targetmarket 45-65yearsold,educatedfemale,family/spouse,mid-to-highincome

20-50yearsold,male,lowerincome,hippiesandhipsters

30-60yearsold,educatedfemale,family/spouse,mid-to-highincome

35-60yearsold,educatedfemale,family/spouse,mid-to-highincome

Otherthingsyou’velearnedabouthowyoucomparetoyourcompetition

Wehavebeenabletosucceedbecauseofourpersonalattentionandfocusontheclient.

FloatOnhasgrownfrom3to6tankssinceopeningin2009.

TheFloatShoppeofferscounseling,acupunctureandisadjacenttoayogastudio.Theyareaddinga4thtankin2016.

Mudrahasexcellentcustomerservice,abeautifulinteriorandtreatstheiremployeeswell.

Customerservice Excellent Good Good Excellent

Onehundredandthirtyeight(138)peopleparticipatedinourfloatsurveyinMarchof2015.Therewere6-10questionsdependingonwhetherornotthepersonhadfloatedbefore.


Herearethesurveyresultsforfloaters(ofwhichtherewere61):

• 25%offloatersfloatmonthlyormoreoften.• 42%wouldfloatmoreofteniftheycould.• Relaxation,self-reflection,stressandpainreliefwerethemostcommonreasonspeoplefloat.• 72%planonfloatingagain• 72%foundmassagetobeoneofthemosthelpfulhealingmodalitiesthattheycurrentlyuse.

Yogacamein2ndat60%• 42%receivemassageregularly.38%practiceyogaregularly.• Improvementsuggestionsincludedbettersoundproofing,temperaturemanagement,andmore

personalattentionatthefloatcenter.

PricingStrategyWeeducateclientsaboutregularlyreceivingthebenefitsoffloatingandmassagetherapyaspartoftheirself-carepractice.Monthlymembershipsstartat$60/monthandcomewithbenefits.

Floatsarepricedat$75fora90-minutefloat.Ourpriceis$5-10higherthanotherfloatcentersinPortland,and$5-10lowerthanotherfloatcentersaroundthecountry.Weofferalevelofserviceandattentiontodetail thatsurpassesour localcompetition.AtFloatNorthweunderstandtheimportance of the client experience and take time to educate and reach out to clients on aregularbasis.Ourfloattanks,OceanFloatRoomsTM,arethemostuserfriendlyofallcommercialfloattanksonthemarket.OceanFloatRoomsTMhaveahigherupfrontcostandprovidestart-of-the-artfiltrationandanincredibleuserexperience.Theyaregreatforthosenewtofloatingandregularfloaters.

MassagetherapyatFloatNorthispricedsimilarlytotheotherwellnesscentersandfloatcentersinPortland.Aone-hourmassagetherapysessionis$85.Insuranceratesare$42.50per15-minuteunit.Offeringtopqualitycarefromsomeofthebesttherapistsintown,ourtherapiststhoroughlyassessaclientsneedsandgoalsandtailorthesessiontomeetthe individualsneeds. Massageand floating come together to provide optimal healing for those seeking relief from stress,burnout,injuryorillness.

Membership:$60for1floatpermonth.Additionalfloats$55each.10%offretail.Nocontractrequired. Automatic monthly payments. Cancel at anytime. May be shared with 1 person.Personalaudiostorageupto2GB.Earn$5foreveryreferral.Noexpirationonfloatsunlessyoucancelmembership,then1yearexpirationonfloats.

3Floats:$180,three90-minutefloatsessions.6monthexpiration.3Massages:$230,three60-minutemassagesessions.6monthexpiration. Float-Massage-Float:$210,Floatbeforeandafteryour90minute Pay-it-forward:Add$5-20towardourfloatscholarshipfundtosupportVeterans,students,seniorcitizens,disabledcitizensandotherunderservedcommunitiesaccesstofloatation.Wematchyourdonation1:1.

Giftcertificatesavailable.

Thelowestpriceweofferforafloatis$45or40%off.Thelowestpriceweofferformassageis$64/hour or 20% off. These prices are not advertised regularly, but are reserved for specialpromotions.Wearenotinterestedinattractingclientslookingforadeal.Weareinterestedinattractingclientswhoarelookingforhigh-quality,regularself-careandvaluetheenvironmentandservicesweprovide.


SWOTAnalysisStrengths

• Experiencedexistingbusinessownerandmanager• Ownerisanexpertinmassagetherapyandfloatationtherapy• Existingmassageclientele• Pro-activemarketingplaninplace• Emergingfloatindustryisgrowingexponentially• Combining2successfulgrowingindustries–floatation(15-20floatcentersintheUSin

2009 to over 271 centers in 2015 according to TimeMagazine) andmassage therapy(expectedtoincrease23%by2022accordingtoUSDept.ofLabor)

• Owner uses business educational resources such as classes,webinars andmentors toimprovebusinesspractices

• Ownerisclientoriented• PopulationofPortlandasawholeutilizesalternativehealthcare• Ownerhasthesupportandguidanceofexistingfloatcentersintown

Weaknesses

• Notenoughexistingclienteletorunatcapacityimmediatelyfollowingbuildout• Ownerisnewtothefloatindustry• Ownerisnewtolargescalemarketing• Willneedaloantofundbuildoutandfirstyear• Owner is currently running the business solo and will need to manage

construction/buildoutandruntheexistingbusiness• Itwilltakeatleast1yeartogaintheexperiencetorunthecenteroptimally

Opportunities

• Nowisan ideal timeto jointhefloat industrywhichhasbeen increasing inthepublicawareness though mass media from “Dr. Oz” to the “New York Times” to “TheSimpsons”,morepeoplearefamiliarwithandutilizefloatingthanatanyothertime

• Builduponexistingclientele• Createacommunityandafanbase• Shiftthegeneralpublicperceptiontowardfloatingaspreventativehealthcare• Participateinfloatationresearchprojects,i.e.TheFibromyalgiaProject• Portlandisauniquecityandonethatsupportsemergingtrends• Profitishighforfloats,averagespentonmaterialsperfloatisabout$5,COGS7%• Profitisaverageformassagetherapy:COGS45%• Profitishighforinsurancerelatedmassagetherapy:COGS18%• Productsalesincreaserevenue• ProvideanexceptionalexperiencethatisnotfoundelsewhereinPortland• LongtermgoaltoexpandFloatNorth’sbusinessmodeltomultiplelocations


Requirements:

Store supplies $1,368 Epsom SaltWebsite design $3,000 B. HurleyAdvertising (Launch campaign) $2,000 print materialsLegal & accounting $200 Legal ClinicStore interior paint $3,500Marketing $3,000 Wweek adInsurance & other contingencies $500Signage $3,145Store furniture & fixtures $15,000Plans & Permits $9,000Epoxy & Tile Flooring $10,000Plumbing $7,000Natural Gas $2,000 NW NaturalElectrical $7,000HVAC $5,000Sound Proofing $13,000Total Expenses $84,713

Assets Details

3 Ocean Float Rooms $124,000 Float Rooms USATankless water heater $3,471 Rinnai RL75Computer system $2,116 Squareup POSStore tele-communication $200 Comcast (Is this a phone/communication system or this just installation?)LG True Steam Washer Dryer $3,000 LG 5.2 cu ft TurboWashWorking capital $27,000Total Assets $159,787Total Expenses plus Assets $244,500

Funding:

Owner investment $50,000Outside financing $194,500

Total Funding Requirement $244,500

Float North LLCProject Budget SOURCES & USES Breakdown

Threats

• Industry growth could drop off due to an unforeseen shift in the publics interest inwellness

• Loansdiminishprofitabilityuntiltheyarepaidoff• Firstyearwillbefinanciallytightwhilewegaincustomersandpayoffloans• Competitionintheareacouldincrease• Managementofemployees(especiallyLMTs)requirestime,moneyandeffort• Multnomah County Health Department could change their non-regulatory status and

decidetoregulatefloattanks

FINANCIALPLAN

MonthlyPersonalBudgetTheowner’spersonalmonthlyexpensestotal$1,650.Danawilldraw$1,800/monthashersolesourceofincomeuntilonefullyearinthenewlocation.Attheone-yearmark,Danawillreassessandmayincreasetheowner’sdrawto$2000/monthuntilallloansarepaidinfull.

ExpansionCosts


SourcesofFinancing

Source Investment Loan

PersonalSavings $85,000

BankLoan $196,725

Total$281,725

OverheadBusinessCosts

ExpensesRent $6,000

Utilities

Phone/internet $140

Gas/Electric $100Water $250Garbage Employees $2500Paychecks HealthInsurance Maintenance/repair Liabilityinsurance $16Healthinsurance Loanpayment $550Taxes $833Promotion $258Professionallicensefees $23Professionalfees(legaloraccounting) $300

OfficeSupplies $25Repair/Maintenance $300Misc.expense Totalexpenses $11,325


Break-EvenPointFloatationTherapy

Line BreakEvenPoint

1 OHmonthlycost $6,994

2 GrossProfitperfloat $69.75

3 BreakEvenPoint 100floats

Line GrossProfit $

1 Priceofonefloat $75

2 Costofonefloat $5.25

3 GrossProfitperfloat $69.75

MassageTherapy

Line BreakEvenPoint

1 OHmonthlycost $2,331

2 GrossProfitpermassage $47

3 BreakEvenPoint 50massages

Line GrossProfit $

1 Priceofonehourmassage $85

2 Costofonemassage(LMTasindependentcontractor) $38.25

3 GrossProfitpermassage $46.75


ProfitandLossStatement

Float North LLC Year 1: Jan 2017 - Dec 2017

Jan Feb March April May Jun July Aug Sep Oct Nov Dec Total % of sales

Sales/ReceiptsMotor Vehicle Accident Insurance Client 500 1,300 1,400 500 596 1,192 794 800 1,100 1,300 1,400 1,500 12,382$ 5%

Massage 3,570 3,825 4,250 3,995 4,250 4,250 4,250 4,505 6,715 7,140 7,140 7,140 61,030$ 24%Float 3,525 6,920 9,960 9,960 10,340 11,340 13,420 13,420 14,980 16,640 19,120 21,600 151,225$ 60%

Membership/Packages 1,200 1,320 1,380 1,500 1,680 2,040 2,040 2,400 2,760 2,820 2,760 2,760 24,660$ 10%Product 60 80 100 150 180 180 200 200 240 260 260 260 2,170$ 1%

Total Income 8,855 13,445 17,090 16,105 17,046 19,002 20,704 21,325 25,795 28,160 30,680 33,260 251,467$ 100%

Cost of Goods or Services COGS % 30 18% Rev 2 45% Rev 3 7% Rev 4 9% Rev 5 45%

Cost of Goods or Services 1 90 234 252 90 107 215 143 144 198 234 252 270 2,229$ Cost of Goods or Services 2 1,607 1,721 1,913 1,798 1,913 1,913 1,913 2,027 3,022 3,213 3,213 3,213 27,464$ Cost of Goods or Services 3 247 484 697 697 724 794 939 939 1,049 1,165 1,338 1,512 10,586$ Cost of Goods or Services 4 108 119 124 135 151 184 184 216 248 254 248 248 2,219$ Cost of Goods or Services 5 27 36 45 68 81 81 90 90 108 117 117 117 977$

Total COGS 2,078 2,594 3,031 2,787 2,976 3,185 3,268 3,417 4,625 4,983 5,169 5,360 43,474$

Gross Profit 6,777 10,851 14,059 13,318 14,070 15,817 17,436 17,908 21,170 23,177 25,511 27,900 207,993$ average gross profit margin is 83%

ExpensesRent (monthly base rent + NNN) 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 72,000$

Utilities 250 250 250 250 275 275 275 275 300 300 300 300 3,300$ Telephone & Internet 140 140 140 140 140 140 140 140 140 140 140 140 1,680$

Garbage/Electrical/Natural Gas 100 100 100 100 100 100 100 100 100 100 100 100 1,200$ Alarm Fees -$

Payroll 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000$ Payroll Taxes -$

Loan Payment Interest Only - 8%, 5 years 1,386 1,366 1,345 1,324 585 562 540 517 495 472 449 426 9,467$ Marketing and Advertising 560 270 510 510 300 300 300 350 350 350 3,800$

Credit Card Service Fees (3% of total sales) -$ Accounting -$ Legal Fees -$

Insurance (liability) -$ Insurance (other) 199 199 398$

State Taxes -$ Other Taxes 2,500 2,500 2,500 7,500$

Licenses 150 150$ Office Supplies 125 125 125 375$

Charitable Contributions -$ UPS monthly service charge -$

Other -$ Total Expenses 10,936 13,126 10,970 11,023 9,900 9,727 12,355 9,957 9,535 12,362 9,839 10,140 129,870

Net Profit/Loss -4,159 -2,275 3,089 2,294 4,170 6,090 5,081 7,951 11,636 10,815 15,672 17,759 78,123$

Break Even Revenue 13,222$ 15,869$ 13,263$ 13,327$ 11,969$ 11,760$ 14,937$ 12,038$ 11,528$ 14,946$ 11,896$ 12,260$ 157,015$

Float North LLC Year 2: Jan 2018 - Dec 2018

Jan Feb March April May Jun July Aug Sep Oct Nov Dec Total % of sales

Sales/Receipts (from yr 1)Motor Vehicle Accident Insurance Client 800 2,100 1,100 2,100 2,100 2,100 1,100 2,100 1,100 1,300 1,400 1,500 18,800$ 6%

Massage 5,525 5,950 5,950 5,652 5,652 5,950 5,950 5,652 6,715 7,140 7,140 7,140 74,416$ 24%Float 14,200 14,200 14,200 14,200 14,200 14,200 14,200 14,200 14,980 16,640 19,120 21,600 185,940$ 59%

Membership/Packages 2,400 2,640 2,640 2,640 2,640 2,640 2,640 2,640 2,760 2,820 2,760 2,760 31,980$ 10%Product 220 220 220 220 220 220 220 220 240 260 260 260 2,780$ 1%

Total Income 23,145 25,110 24,110 24,812 24,812 25,110 24,110 24,812 25,795 28,160 30,680 33,260 313,916$ 100%

Cost of Goods or Services (from yr 1) COG % income 1 : 18% income 2 45% income 3 7% income 4 9% income 5 45%

Cost of Goods or Services 1 144 378 198 378 378 378 198 378 198 234 252 270 3,384$ Cost of Goods or Services 2 2,486 2,678 2,678 2,543 2,543 2,678 2,678 2,543 3,022 3,213 3,213 3,213 33,487$ Cost of Goods or Services 3 994 994 994 994 994 994 994 994 1,049 1,165 1,338 1,512 13,016$ Cost of Goods or Services 4 216 238 238 238 238 238 238 238 248 254 248 248 2,878$ Cost of Goods or Services 5 99 99 99 99 99 99 99 99 108 117 117 117 1,251$

Total COGS 3,939 4,386 4,206 4,252 4,252 4,386 4,206 4,252 4,625 4,983 5,169 5,360 54,016$

Gross Profit 19,206 20,724 19,904 20,560 20,560 20,724 19,904 20,560 21,170 23,177 25,511 27,900 259,900$ average gross profit margin: 83%

Expenses (will transfer from yr)Rent (monthly base rent + NNN) 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 72,000$

Utilities 250 250 250 250 275 275 275 275 300 300 300 300 3,300$ Telephone & Internet 140 140 140 140 140 140 140 140 140 140 140 140 1,680$

Garbage/Electrical/Natural Gas 100 100 100 100 100 100 100 100 100 100 100 100 1,200$ Alarm Fees -$

Payroll 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 30,000$ Payroll Taxes -$

Loan Payment Interest Only - 8%, 5 years 673 651 629 607 585 562 540 517 495 472 449 426 6,607$ Marketing and Advertising 250 250 300 300 300 300 350 350 350 2,750$

Credit Card Service Fees (3% of total sales) -$ Accounting 300 300$ Legal Fees -$

Insurance (liability) -$ Insurance (other) 199 199$

State Taxes -$ Other Taxes 2,500 2,500 2,500 2,500 10,000$

Licenses 150 150$ Office Supplies 125 125 125 375$

Charitable Contributions -$ UPS monthly service charge -$

Other -$ Total Expenses 12,413 9,891 9,619 12,822 9,900 9,727 12,355 9,957 9,535 12,362 9,839 10,140 128,561$

Net Profit/Loss 6,793 10,833 10,285 7,738 10,660 10,997 7,549 10,603 11,636 10,815 15,672 17,759 131,339$

Break Even Revenue 14,993$ 11,947$ 11,618$ 15,487$ 11,957$ 11,749$ 14,923$ 12,027$ 11,516$ 14,931$ 11,884$ 12,248$ 155,280$


CashFlowProjection

Float North LLC CASH FLOW PROJECTIONS

YEAR ONE - Jan 2017 - Dec 2017Jan Feb March April May Jun July Aug Sep Oct Nov Dec

CASH INOpening Cash Balance 4,535 (1,424) (5,499) 45,790 30,284 28,660 41,436 39,682 49,279 66,040 71,960 82,716

Total Income 8,855 13,445 17,090 16,105 17,046 19,002 20,704 21,325 25,795 28,160 30,680 33,260other cash in 0 50,000 19,000 124,500 19,000 27,500 30,000

Total Cash Available 13,390 12,021 61,591 61,895 66,330 172,162 81,140 88,507 105,074 94,200 102,640 115,976CASH OUT

COGS/Inventory Purchases* 2,078 2,594 3,031 2,787 2,976 3,185 3,268 3,417 4,625 4,983 5,169 5,360Total Expenses 10,936 13,126 10,970 11,023 9,900 9,727 12,355 9,957 9,535 12,362 9,839 10,140

Additional Inventory PurchaseLoan Payment (principle only) 2,994 3,014 3,034 3,054 3,075 3,095 3,116 3,137

Capital Purchases 16,000 20,000 113,000 21,000 21,000 20,000Other cash outlays

owner's draw 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800Total Cash Outflows 14,814 17,520 15,801 31,611 37,670 130,727 41,458 39,228 39,034 22,240 19,924 20,437

ENDING CASH BALANCE ($1,424) ($5,499) $45,790 $30,284 $28,660 $41,436 $39,682 $49,279 $66,040 $71,960 $82,716 $95,539

YEAR TWO - Jan 2018 - Dec 2018 Jan Feb March April May Jun July Aug Sep Oct Nov DecCASH IN

Opening cash balance 95,539 97,394 103,269 108,576 111,314 116,953 122,907 125,392 130,909 137,436 143,122 153,641Total Income 23,145 25,110 24,110 24,812 24,812 25,110 24,110 24,812 25,795 28,160 30,680 33,260other cash in

Available Cash Balance 118,684 122,504 127,379 133,388 136,126 142,063 147,017 150,204 156,704 165,596 173,802 186,901CASH OUT

COGS/Inventory Purchases* 3,939 4,386 4,206 4,252 4,252 4,386 4,206 4,252 4,625 4,983 5,169 5,360Total Expenses 12,413 9,891 9,619 12,822 9,900 9,727 12,355 9,957 9,535 12,362 9,839 10,140

Additional Inventory PurchaseLoan Payment (principle only) 3,137 3,158 3,179 3,200 3,221 3,243 3,264 3,286 3,308 3,330 3,352 3,375

Capital PurchasesOther cash outlays

Owner's draw 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 2,000Total Cash Outflows 21,289 19,235 18,804 22,074 19,173 19,156 21,625 19,295 19,267 22,475 20,160 20,875

ENDING CASH BALANCE $97,394 $103,269 $108,576 $111,314 $116,953 $122,907 $125,392 $130,909 $137,436 $143,122 $153,641 $166,026

* Inventory Purchases: .After the first month, this is calculated automatically from Cost of Goods % and projected sales from the P&L worksheet. If you buy inventory in larger batches, you may want to delete the formula in this line and enter your inventory purchases manually, accorinding to your buying pattern. Also, this assumes NO inventory growth, but only replacement of sold inventory based on previous month sales. If you use the automatic calculations, adjust for inventory growth ( that is, buying more than just replacement of what's been sold) by using the "additional inventory purchases" line.

business plan - float north – floatation and massage therapy...

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