BluDayz Spa

BluDayz Spa Business Plan

Group members: Yanique Gardner Vernon Davis Yannick Harvey Rochelle Edwards Theo-Jordan Cousins 0805659 0603118 0704853 0801946 0803154

In partial fulfillment of the requirements for MAN 3006 Mrs. David Rowe May 16, 2011

BluDayz Spa Table of Contents Executive Summary ................................................................................................................................3 Description of the Business .....................................................................................................................5 The Marketing Segment.........................................................................................................................11 The Research, Design and Development Segment.................................................................................16 Manufacturing Segment .........................................................................................................................17 Operations and Management Segment ...................................................................................................18 The Financial Segment .......19 Risk Identification and Management ......................................................................................................28 Milestone Schedule Plan .........................................................................................................................29 Appendix .................................................................................................................................................32 References ...............................................................................................................................................37

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Executive Summary BluDayz Spa is a service that was established to help the average university student to have a calm, neutral and relaxing environment which students can have peace of mind, with a complete spa experience. BluDayz Spa seeks to adhere to our mission and use our vision statement as a guide to provide superior service to our customers in a cool and friendly atmosphere. It aims to provide a number of services, which include; therapeutic massages, facials, tanning, pedicures, waxing and manicures for all at reasonable prices for all types of customers. We offer massages in a variety of traditional styles for example Swedish Massages, Deep Tissue, Hot Stone Massages, Reflexology, pregnancy, sports and others. We also offer special facial and body treatments, for example our dedicated Vitamin C Antioxidant Facial and Radical Treatment. BluDayz Spa will have three locations with two located in other countries aside from the home country Jamaica. The other countries are Barbados and The United States of America. Our headquarters in Jamaica will be established on The University of Technology Jamaicas campus, situated within the Student Activity Center, otherwise known as The Barn. In Barbados we will be positioned on The University of West Indies Cave Hill campus. Our third operation will be located in Miami, Florida in Florida International Universitys Graham Center. The following persons, Rochelle Edwards, Vernon Davis, Yannick Harvey, Yanique Gardner and Theo-Jordan Cousins, incorporated the service. The strategy, which will be employed by the company to give the product a competitive advantage, is a cost leadership strategy. The financial plan outlines the financial developments of BluDayz Day Spa. BluDayz expects to raise much working capital from each partner, family/friends, and credit unions and to borrow

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guaranteed small business loans from a financial institution as indicated by the Source of Funds Table. These funds provide the bulk of the current financing that is required by the business. Within two to three years, it is hoped that the company will be able to expand its operations to the other locations. By this time we will be taking bigger loans from financial institutions to support this expansion. After identifying the prices for the services offered by the competition and careful analysis of the market, we were able to forecast our monthly sales as seen in our Income Statement. Blue Days Day Spa will aim its marketing efforts and products to satisfy the age groups of 18-35 and 35-60. To complement or marketing campaign, we will be strategically located on three college campuses, The University of Technology Jamaica (UTECH), Florida International University (FIU) in Miami and The University of the West Indies (UWI) at Cave Hill, Barbados. Our Service aims to satisfy the needs of students and lecturers whether full time or part-time. BluDayz stands to gain a market share of 20% in Miami, 30% in Jamaica and 90% in Barbados within the first 3 years of operation. In Jamaica we have identified our closest competitor to be Diva Salon and Spa located within the Sovereign Centre. We have yet to identify any close competitor in Barbados within close proximity of the UWI campus. Our most serious competition in the US is located on FIUs campus, called the Waves Spa. We plan to utilize a competitive pricing strategy in our Papine and Miami locations, to become the cost leaders, so as to secure a larger or equal share of the market. We will use a mark-up pricing strategy for our Barbados branch. Prices for all of our services will be raised annually by at least 10%.

BluDayz Spa

Description of the Business

Company Name: Addresses:

BluDayz Spa 237 Old Hope Road, Kingston 6, Jamaica West Indies University of the West Indies Cave Hill, St. Michael, Barbados PO Box 64 Bridgetown Barbados, West Indies Waves Spa FIU, 11200 SW 8th Street, Graham Center 1241, Miami, FL 33199

Telephone:

1-888- BluDayz (7885986) Toll Free Jamaica - Tel: (876) 927-1846-8 | Fax: (876) 977-4377 Barbados - Tel: (246) 412-3065 | Fax: (246) 438-4567 Miami - Tel: (305) 348-0075 | Fax: (305) 336-4457

Mission:

BluDayzs mission is to run a profitable business by providing high-end therapeutic massage and skin care services in a caring and student friendly environment.

Vision Statement:

BluDayz seeks to provide highly skilled, well trained, competent, friendly staff, a cozy atmosphere and to be industry leaders in providing the best day spa service of choice through our consistent pursuit of excellence in all that we do. We seek to keep our integrity and gain the trust of our customers, be

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admired for our innovations, respected for our business practices and recognized for our success. Motto: "We establish great values and quality, while satisfying the needs of our customers" Slogan: We will take the blue out of your day

Rationale of the Business Plan: This plan gives detailed description of a new business/existing idea with additional features, including the company's product and service, our marketing plans, financial statements and projections and management principles. This document outlines BluDayzs expected course of action for a specified period and includes a detailed listing and analysis of risks and uncertainties. Objectives Achieve over 8 million dollars in annual sales in our first year of operation in Miami. Achieve at least $1,200,000 in sales each month in our first year of operation. Have a local client return rate of 90% by the end of the first six months. Become an established community Spa destination within our first two to three years of operation in Jamaica. Perform at least 60 services per day by the end of the first year of operation in Jamaica.

BluDayz Spa Strategic Plan provides a holistic framework which includes the vision and mission of the firm which act as pillars for the attainment of the companys financial & strategic objectives. These objectives will be used to provide focus, guidance and a source of measurement for BluDayz Spas success and sustainability in the local and international market. Our strategy is to implement the most aggressive marketing campaign and networking within each community,
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followed by offering the most unique services in the business. Our prices are competitive for the each of our locations, and our personnel plan, which includes using a pool of skilled, commissioned therapists and aestheticians, will give us a considerable advantage. Our core values make us who we are. We believe in treating every person with the greatest care and respect. We believe that we have the capability to help our clients look and feel their very best even on their worst of days. It is the belief of BluDayz that our customers' needs are of utmost importance. Our entire team is dedicated to meeting those needs. As a result, we hope to develop brand loyalty to retain repeat customers and referrals. We would also like to welcome the opportunity to earn the trust of customers and deliver the best service in the industry. As part of our guiding principles we believe that there is no responsible substitute to doing commerce other than through environmental sustainability.

Products and Services Offered: Therapeutic massages: Swedish Massages Deep Tissue Hot Stone Massages Reflexology Other types of massages

Facials:

acne facial anti-aging facial back facial

men's facial oxygen facial sensitive skin facial

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custom facial exfoliating facial fruit-acid facial galvanic facial

signature facial teen facial

Pedicures: Manicures: Regular pedicure Spa pedicure Paraffin Pedicure Stone Pedicure French Pedicure Mini Pedicure Athletic Pedicure Champagne or Wine Pedicure Ice Cream Pedicure Hot Stone Pedicure

BluDayz Spa

French Manicure Paraffin Manicure Spa Manicure Hot Stone Manicure

Tanning Waxes: Regular Bikini Full Bikini French Brazillian Gel Wax Paraffin Wax Tanning bed for our Miami and Barbados locations (UV and spray-on)

We also offer gift certificates, student specials, wedding and holiday specials and packages.

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All three locations were carefully selected based on the size of each student body and their need for an affordable day spa that would be able to cater directly to their needs, with a variation of different products being offered. Each location was properly selected with enough space to accompany these operations. As far as key inputs, BlueDayz spa will be supplied by three different suppliers because of the locations and too lower the cost expected when exporting. In Barbados BluDayz will be supplied by body and beyond, in the Florida we will be supplied by cosmetics beauty supplies and in Jamaica BluDayz will also be supplied by Cosmetics beauty supplies of Florida. The businesses are also supplied on a monthly basis or in any case if supplies are low. Supplies will not take more than two days upon days of ordering. Contingency Planning Difficulties and Risks: Generating sales throughout the day A slow first and second quarter could have a significant effect on Cash Flow Construction taking place around each location, may significantly affect customer traffic

Worst Case Scenarios: Determining that the business cannot support itself based on day-to-day operations Liquidation of equipment and supplies to cover liabilities

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The Marketing Segment Target Market Blue Days Day Spa will aim its marketing efforts and products to satisfy the age groups of 18-35 and 35-60. To complement or marketing campaign, we will be strategically located on three college campuses, The University of Technology Jamaica (UTECH), Florida International University (FIU) in Miami and The University of the West Indies (UWI) at Cave Hill, Barbados. Our Service aims to satisfy the needs of students and lecturers whether full time or part-time. Females pre-dominantly go to spas, so we will be focusing on getting more males to come by offering services that they can utilize. Students who live on campus are our primary focus, because they are there for most of the time and will account for most of our daily customer visits. Utech has a population of 11,000 students, UWI Cave Hill has a population of 10,000 and FIU has over 40,000 students enrolled on each of their respective campuses. As far as lifestyle, most students

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will spend time outside of classes, studying, partying and hanging out with friends whether on or off campus. Out of our sample size of about at least 20,000 people have used a day spa before. Market Segments Age The market was segmented into the age groups of 18-35 and 35-60. Young teens, middle aged are the main targets.

Gender We will target both male and female.

Education We will target college and university students. Income We will target low, medium and high income earners. Marital Status We will cater to single and married couples. Lifestyle We will cater to the conservative, exciting and trendy.
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Class We cater to all classes of customers, whether lower, middle or upper. Market Position To position our brand above the competition we plan to offer differentiated products from the competition by capitalizing on their weaknesses. We plan to advertise all products catered to the age groups with which we plan to target. We will solicit feedback from our customers regarding what services they would like to be offered apart from the typical spa format. From our research we found that there was a niche in the market for special types of massages that needed to be filled. We thought that this particular aspect of our product would position us to be distinguishable from the competition. What makes our product unique is the fact that we offer a variety of products and special services, different from our competitors. We will automatically position ourselves as the top competitor in the Cave Hill area. Bearing in mind that none of the other competitors in Jamaica and Miami will offer the range of services that we will, or that their quality of staff training, and that there are not any day spas that offer the same kind of services that we do in our target locations, we will be able to provide services to a portion of these markets not currently being tapped. Customer Profile(s) Age Sex Income Between 18 and 60 86% Female and 14% Male Between $30,000 and $ 100,000 Quoted in Jamaican Dollars

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Occupation

Student, office worker, lower to mid level management

Education Geographic

Varying educational backgrounds Jamaica, Barbados, United States

Market Share BluDayz stands to gain a market share of 20% in Miami, 30% in Jamaica and 90% in Barbados within the first 3 years of operation. In Jamaica we have identified our closest competitor to be Diva Salon and Spa located within the Sovereign Centre. We have yet to identify any close competitor in Barbados within close proximity of the UWI campus. Our most serious competition in the US is located on FIUs campus, called the Waves Spa. We plan to utilize a competitive pricing strategy in our Papine and Miami locations, to become the cost leaders, so as to secure a larger or equal share of the market. We will use a mark-up pricing strategy for our Barbados branch. Prices for all of our services will be raised annually by at least 10%. Distribution Channels Direct Sales By the use of a direct sales channel we will be able to sell directly to the end-user.

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Sales Representatives We will use sales representatives to walk around each campus, to advertise or products and offer samples of the type of creams and oils we will use in the massage process. Market Information and Studies SWOT ANALYSIS Strengths Quick and efficient response to customers Customer care Our lead consultant has a strong market presence Ability to change marketing direction, if we encounter problems in marketing

Weaknesses The company has no market presence or reputation Very small staff Unreliable cash flow in the first months of operation Vulnerability in replacing sick staff members

Opportunities Business sector is in an expansion phase with more opportunities for success
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Threats

Local government and subsidies encourage and backing small businesses The competition may be slow to adapt to new technology.

Changes in market and technology may limit our ability to adapt Larger competitors may wipe out our position in the market Focusing on areas that do not need attention other than critical areas.

The Research, Design and Development Segment Our most unique product offering would be our tanning services that we offer in our Miami and Barbados locations. Many young people especially in Miami are obsessed with tanning, despite the possibility of getting skin cancer. There has been a new surge in spray-on tanning beds, which we plan to, utilize in operations apart from the regular UV tanning beds. With new technology being developed, we will work closely with tanning bed manufacturers, ETS Tan to develop a tanning bed that will limit the effects on the skin. Every tanning bed from ETS Tan is put through a minimum of 29 quality tests before it is boxed and sent. Random units are put in their own on-site life testing room to ensure maximum effectiveness and safety. They also their own state-of-the-art irradiance testing equipment to assure that customers are getting the maximum UV out of each session and pinpoint the accuracy in accordance with regulatory guidelines. All prototype tanning beds are put on a 24-hour cycling machine that puts each bed through a series of on-off cycles; including raising and lowering the canopy to ensure that the unit will last for years.
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They do this because they are committed to continual improvement of the overall quality of the equipment. All ETS designed tanning beds not only meet and exceed UL and FDA standards, but every piece of equipment is actually listed in the ETL reference book. This means that they adhere to the strictest ETL rules for customer protection.

Manufacturing Segment BluDayz Spas main headquarter is located at University of Technology in Kingston Jamaica. Its international subsidiaries are strategically located in and around the Caribbean region one location is the University of the West Indies Cave Hill Barbados and the other in Florida International University, Miami, Florida. The reason why we choose these universities are because, upon our research we have found that few if any universities worldwide provide the services that we are introducing, another fact is that we are positioned in close proximity to our target market, all countries are English speaking countries, cultures are also very similar and up on further research, work ethic is very much also the same so it will not be a problem for our expatriates to adjust to their assignments. Tax rates are much higher in the Caribbean countries than in the United States. In fact Florida takes 5.5% out of total sales income; Jamaica and Barbados both take 15-25% tax rate on total

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income of sales. In contrast Floridas minimum wages are at $7.25 an hour, Barbados with $4.00 an hour and. At each location the spas will consist of 4 rooms, a receptionist area, and a lounge area. Of the four rooms, two will consist of two massaging tables and the other two will accommodate only one. Tanning beds will be in two rooms, with about four tanning beds total. Each room will have its own multi-functional facial beauty machine, hot towel machine, stone warmer, wax warmers and manicure & pedicure tables. All of the services will be conducted in closed rooms to ensure privacy. The main lounge will consist of three comfortable couches, a reading area, coffee machine and a snack bar. A television will also be placed in the main lounge for entertainment purposes. Located in the lounge area are the receptionist table and a main office which will house the general manager and the accountant. For sales and bookings we will apply the use of a computer software called Milano. This software makes it easier for spas to simplify bookings, inventory management, booking optimization and head office management. There is also a call centre which provides BlueDayzs customers with help on any difficulty that customers experience with our services. Also, automated reports and sales are recorded automatically of day-today transactions. Operations and Management Segment The company hopes to adapt variations of a partnership and a limited liability company for each location, because of their simplicity and flexibility. Tax treatments are flexible; there are no shareholders involved or other managerial formalities. Money for capital will come from personal funds of partners, family, friends and lending institutions. Staffing for each location will be twelve. Each location will have its own general manager, one receptionist, two manicurists/pedicurists, two aestheticians, three massage therapists, two electrologists and one independent contractor.

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Well employ the services of spa consultants Spa Advisors Incorporated for all three locations. For compensation, we plan to use a commission-based system to encourage workers to be aggressive and ambitious and a salary based system to ensure the building of customer relationships. An accountant will be hired to oversee the day-to-day book-keeping of the company and monthly audits will be done by an auditing firm to ensure consistency of records.

The Financial Segment Our main sources of funding will come from the personal funds, family and friends and through bank and credit unions, illustrated in the table below:

TABLE: SOURCES OF FUNDING 1 PERSONAL FUNDS: Rochelle Edwards Vernon Davis Yannick Harvey Theo-Jordan Cousins Yanique Gardner $800,000.00 $900,000.00 $850,000.00 $800,000.00 $750,000.00 Total 2 FAMILY AND FRIENDS
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$4,100,000.0 0

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Family/Friend #1 Family/Friend #2 Family/Friend #3

$1,000,000.00 $500,000.00 $600,000.00 Total $2,100,000.0 0

BANK/CREDIT 3 UNION LOANS Bank Credit Union $450,000.00 $ 100,000.00 Total GRAND TOTAL $550,000.00 $6,750,000.0 0

List of capital equipment for each country:

TABLE : CAPITAL EQUIPMENT LIST United States (USD) ITEM PER UNIT QUANTITY TOTAL Massage tables & equipment $379.00 3 $1,137.00 Chairs $179.00 10 $1,790.00 Shelving $300.00 4 $1,200.00 Fax Machine $125.95 2 $251.90 Flat bed scanner $195.00 2 $390.00 Decor and Furnishings $11,000.00 2 $11,000.00 Computer Software & equipment $1,000.00 1 $1,000.00 Facial equipment $3,000.00 4 $12,000.00 Tanning Beds $3,000.00 4 $12,000.00 Waxing Equipment $200.00 8 $1,600.00 Manicure and Pedicure Material $1,000.00 8 $8,000.00 Wireless Router $69.99 1 $69.99 Magazine Stand $90.00 2 $180.00 $205,000.0 Salaries 0 $205,000.00 TOTAL $255,618.89
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TABLE : CAPITAL EQUIPMENT LIST Jamaica (JMD) ITEM PER UNIT QUANTITY TOTAL Massage tables & equipment $32,286.42 3 $96,859.27 Chairs $15,248.73 10 $152,487.33 Shelving $25,556.54 4 $102,226.14 Fax Machine $10,729.49 2 $21,458.97 Flat bed scanner $16,611.75 2 $33,223.50 Decor and Furnishings $937,072.99 $937,072.99 Computer Software & equipment $85,188.45 1 $85,188.45 Facial equipment $255,565.36 3 $766,696.09 Waxing Equipment $17,037.69 8 $136,301.53 Manicure and Pedicure Material $85,188.45 6 $511,130.72 Wireless Router $5,962.34 1 $5,962.34 Magazine Stand $7,666.96 2 $15,333.92 $2,000,000.0 Salaries 0 $2,000,000.00 TOTAL $4,863,941.26

TABLE : CAPITAL EQUIPMENT LIST Barbados (BBD) ITEM PER UNIT QUANTITY Massage tables & equipment $758.00 3 Chairs $358.00 10 Shelving $600.00 4 Fax Machine $251.90 2 Flat bed scanner $390.00 2 Decor and Furnishings $22,000.00 Computer Software & equipment $2,000.00 1 Facial equipment $6,000.00 4 Tanning Beds $6,000.00 4 Waxing Equipment $400.00 8 Manicure and Pedicure Material $2,000.00 8 Wireless Router $139.98 1

TOTAL $2,274.00 $3,580.00 $2,400.00 $503.80 $780.00 $22,000.00 $2,000.00 $24,000.00 $24,000.00 $3,200.00 $16,000.00 $139.98
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Magazine Stand Salaries

$180.00 $410,000.0 0 TOTAL

$360.00 $410,000.00 $511,237.78

Projected Income Statement for 3 Years: TABLE : PROJECTED INCOME (3 YEAR) SUMMARY 2011 - 2013 Jamaica 2011 2012 2013 SALES OPERATING EXPENSES Owners' salary Employees salary Rent Advertising Utilities Supplies Telephone Legal/Accounting Fees Loan Payment Repair/Maintenance Auto/Travel Expenses Marketing/Promotion TOTAL EXPENSES INCOME/(LOSS) $1,065,593.37 $360,000.00 $1,617,916.63 $255,359.85 $425,599.75 $851,199.49 $127,679.92 $580,963.00 $1,042,878.78 $800,464.16 $1,404,794.56 $138,399.62 $8,670,849.12 -$558,823.93 $1,172,152.71 $396,000.00 $1,779,708.30 $280,895.83 $468,159.72 $936,319.44 $140,447.92 $639,059.30 $1,147,166.65 $880,510.58 $1,545,274.01 $152,239.58 $9,537,934.03 $622,377.52 $1,289,367.98 $435,600.00 $1,957,679.13 $308,985.41 $514,975.69 $1,029,951.38 $154,492.71 $702,965.23 $1,261,883.32 $968,561.64 $1,699,801.41 $167,463.54 $10,491,727.43 $2,234,062.79 3,527,114.05 1,191,600.00 5,355,304.06 845,241.09 1,408,735.16 2,817,470.31 422,620.55 1,922,987.52 3,451,928.75 2,649,536.38 4,649,869.98 458,102.73 $28,700,510.58 $2,297,616.38 8,112,025.19 10,160,311.55 12,725,790.22

TOTAL 30,998,126.97

TABLE : PROJECTED INCOME (3 YEAR) SUMMARY 2012 - 2014 Barbados 2012 2013 2014 SALES OPERATING EXPENSES Owners' salary $260,000.00 $286,000.00 $314,600.00 1,647,370.00 2,063,330.93 2,584,321.98

TOTAL 6,295,022.91

860,600.00
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Employees salary Rent Advertising Utilities Supplies Telephone Legal/Accounting Fees Loan Payment Repair/Maintenance Auto/Travel Expenses Marketing/Promotion TOTAL EXPENSES INCOME/(LOSS)

$60,000.00 $132,000.00 $6,000.00 $10,000.00 $20,000.00 $3,000.00 $16,000.08 $48,000.00 $72,000.00 $79,999.92 $15,000.00 $722,000.00

$66,000.00 $145,200.00 $6,600.00 $11,000.00 $22,000.00 $3,300.00 $17,600.09 $52,800.00 $79,200.00 $87,999.91 $16,500.00 $794,200.00

$72,600.00 $159,720.00 $7,260.00 $12,100.00 $24,200.00 $3,630.00 $19,360.10 $58,080.00 $87,120.00 $96,799.90 $18,150.00 $873,620.00 $1,710,701.98

198,600.00 436,920.00 19,860.00 33,100.00 66,200.00 9,930.00 52,960.26 158,880.00 238,320.00 264,799.74 49,650.00 $2,389,820.00 $3,905,202.91

$925,370.00 $1,269,130.93

TABLE : PROJECTED INCOME (3 YEAR) SUMMARY 2013 - 2015 Miami 2013 2014 2015 SALES OPERATING EXPENSES Owners' salary $130,000.00 $143,000.00 $157,300.00 823,685.00 1,031,665.46 1,292,160.99

TOTAL 3,147,511.45

430,300.00
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Employees salary Rent Advertising Utilities Supplies Telephone Legal/Accounting Fees Loan Payment Repair/Maintenance Auto/Travel Expenses Marketing/Promotion TOTAL EXPENSES INCOME/(LOSS)

$30,000.00 $66,000.00 $3,000.00 $5,000.00 $10,000.00 $1,500.00 $8,000.04 $24,000.00 $36,000.00 $39,999.96 $7,500.00 $361,000.00 $462,685.00

$33,000.00 $72,600.00 $3,300.00 $5,500.00 $11,000.00 $1,650.00 $8,800.04 $26,400.00 $39,600.00 $43,999.96 $8,250.00 $397,100.00 $634,565.46

$36,300.00 $79,860.00 $3,630.00 $6,050.00 $12,100.00 $1,815.00 $9,680.05 $29,040.00 $43,560.00 $48,399.95 $9,075.00 $436,810.00 $855,350.99

99,300.00 218,460.00 9,930.00 16,550.00 33,100.00 4,965.00 26,480.13 79,440.00 119,160.00 132,399.87 24,825.00 $1,194,910.00 $1,952,601.45

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3 Year Cash Flow for each location: TABLE: PROJECTED CASHFLOW Jamaica 2011 SALES - RECEIPTS OPERATING EXPENSSES Owners' salary Employees salary Rent Advertising Utilities Supplies Telephone Legal/Accounting Fees Loan Payment Repair/Maintenance Auto/Travel Expenses Marketing/Promotion Total Disbursements $1,065,593.3 7 $360,000.00 $1,617,916.6 3 $255,359.85 $425,599.75 $851,199.49 $127,679.92 $580,963.00 $1,042,878.7 8 $800,464.16 $1,404,794.5 6 $138,399.62 $8,670,849.1 2 $1,172,152.7 1 $396,000.00 $1,779,708.3 0 $280,895.83 $468,159.72 $936,319.44 $140,447.92 $639,059.30 $1,147,166.6 5 $880,510.58 $1,545,274.0 1 $152,239.58 $9,537,934.0 3 $1,425,908.8 4 $60,000.00 $60,000.00 $1,365,908.8 4 $1,289,367.98 $435,600.00 $1,957,679.13 $308,985.41 $514,975.69 $1,029,951.38 $154,492.71 $702,965.23 $1,261,883.32 $968,561.64 $1,699,801.41 $167,463.54 $3,527,114.05 $1,191,600.00 $5,355,304.06 $845,241.09 $1,408,735.16 $2,817,470.31 $422,620.55 $1,922,987.52 $3,451,928.75 $2,649,536.38 $4,649,869.98 $458,102.73 $ 8,112,025.19

2012 $ 10,160,311.5 5

2013 $ 12,725,790.22

TOTAL $ 30,998,126.97

$10,491,727.4 3 $28,700,510.58

CASHFLOW Beginning Balance

-$331,415.88 -$1,365,908.84

$2,297,616.38 -$1,697,324.72

Ending Balance

$60,000.00

-$1,697,324.72

$600,291.66

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TABLE: PROJECTED CASHFLOW Barbados 2012 2013 $ 1,647,370.0 $ SALES - RECEIPTS 0 2,063,330.93 OPERATING EXPENSSES Owners' salary Employees salary Rent Advertising Utilities Supplies Telephone Legal/Accounting Fees Loan Payment Repair/Maintenance Auto/Travel Expenses Marketing/Promotion Total Disbursements CASHFLOW Beginning Balance Ending Balance $16,000.00 $16,000.00 $260,000.00 $60,000.00 $132,000.00 $6,000.00 $10,000.00 $20,000.00 $3,000.00 $16,000.08 $48,000.00 $72,000.00 $79,999.92 $15,000.00 $722,000.00 $286,000.00 $66,000.00 $145,200.00 $6,600.00 $11,000.00 $22,000.00 $3,300.00 $17,600.09 $52,800.00 $79,200.00 $87,999.91 $16,500.00 $794,200.00 $853,170.00 $16,000.00 $869,170.00

2014 $ 2,584,321.98

TOTAL $ 6,295,022.91

$314,600.00 $72,600.00 $159,720.00 $7,260.00 $12,100.00 $24,200.00 $3,630.00 $19,360.10 $58,080.00 $87,120.00 $96,799.90 $18,150.00 $873,620.00 $1,189,710.9 3 $869,170.00 $2,058,880.9 3

$860,600.00 $198,600.00 $436,920.00 $19,860.00 $33,100.00 $66,200.00 $9,930.00 $52,960.26 $158,880.00 $238,320.00 $264,799.74 $49,650.00 $2,389,820.00 $3,905,202.91 $2,058,880.93 $5,964,083.83

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TABLE: PROJECTED CASHFLOW Miami 2013 2014 $ $ SALES - RECEIPTS 823,685.00 1,031,665.46 OPERATING EXPENSSES Owners' salary Employees salary Rent Advertising Utilities Supplies Telephone Legal/Accounting Fees Loan Payment Repair/Maintenance Auto/Travel Expenses Marketing/Promotion Total Disbursements CASHFLOW Beginning Balance Ending Balance $8,000.00 $8,000.00 $130,000.00 $30,000.00 $66,000.00 $3,000.00 $5,000.00 $10,000.00 $1,500.00 $8,000.04 $8,000.04 $24,000.00 $36,000.00 $7,500.00 $329,000.08 $143,000.00 $33,000.00 $72,600.00 $3,300.00 $5,500.00 $11,000.00 $1,650.00 $8,800.04 $8,800.04 $26,400.00 $39,600.00 $8,250.00 $361,900.09 $461,784.91 $8,000.00 $469,784.91

2015 $ 1,292,160.99

TOTAL $ 3,147,511.45

$157,300.00 $36,300.00 $79,860.00 $3,630.00 $6,050.00 $12,100.00 $1,815.00 $9,680.05 $9,680.05 $29,040.00 $43,560.00 $9,075.00 $398,090.10 $633,575.37 $469,784.91 $1,103,360.2 8

$430,300.00 $99,300.00 $218,460.00 $9,930.00 $16,550.00 $33,100.00 $4,965.00 $26,480.13 $26,480.13 $79,440.00 $119,160.00 $24,825.00 $1,088,990.26 $2,058,521.19 $1,103,360.28 $3,161,881.47

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TABLE : PROJECTED BALANCE SHEET USD Year 1 ASSETS Current Assets Cash (Working Capital) Accounts Receivable Prepaid Expenses Inventory TOTAL CURRENT ASSETS Fixed Assets Plant and Equipment TOTAL ASSETS LIABILITIES AND OWNERS EQUITY Current Liabilities Long Term Liabilities

$86,000.00 $54,000.00 $140,000.00 $511,237.78 $10,128,762.2 2 $10,780,000.00 $30,000.00 $4,100,000.00 $2,100,000.00 $550,000.00 $6,780,000.00

Total Liabilities OWNERS' EQUITY Rochelle Edwards Vernon Davis Yannick Harvey Theo-Jordan Cousins Yanique Gardner Retained earnings Total Owners Equity

$800,000.00 $900,000.00 $850,000.00 $800,000.00 $750,000.00 ($100,000.00) $4,000,000.00

Total Liabilities and Owners Equity

$10,780,000.00

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Risk Identification and Management Operational risks can include but are not limited to: Failure of technology Poor management, accountability and control Errors in financial statements and reports Inadequate record-keeping Market risks can include but are not limited to: Risk of loss due to non-payment of a loan or other line of credit Risk arising from fluctuations in the currency exchange rates Applying various forms of risk management procedures will help the company to handle different types of risks because a variety of risks are faced, while carrying out business operations. The effective handling of risk ensures the successful growth of an organization.

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BluDayz Spa Milestone Schedule Plan The following table lists the first year milestones, with projected dates and budgets for each. The milestone schedule indicates our emphasis on planning the implementation. Milestone Prepare Business Plan Start Date May 1,2011 Acquire potential investors and sponsors May 10,2011 Prepare Budgets May 22,2011 Prepare Architectural Drawings June 30,2011 Obtain approval and building permits for Location at University of Student Activity Center (barn) Select Contractors June 25,2011 Construction of BluDayz Spa June 27,2011 June 20,2011 End Date May 5,2011 May 15,2011 May 25,2011 June 12, 2011 June 24,2011

July 1,2011 Sept 15,2011

Logo design and brochures

Sept 25, 2011

Sept 28,2011 Sept

Hire Staff

Sept 25,

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2011 Promotional activities and advertising

30,211

Oct 1, 2011 Oct 14, 2011

Grand Opening of BluDayzUtech Campus BluDayzUtech attend to clientele

Oct 15,2011 Oct 15 2011

Acquire second location at UWI Cavehill campus Barbados Prepare Architectural Drawings

March 2, 2012 March 5,2012 March 8,2012 March 17, 2012 July 4,2012

Obtain approval and building permits for location Select contractors and construction of building Promotional activities

March 10, 2012 May 3, 2012 August 15, 2012

August 30,2012 August 30,2012

Hire staff

August 15,2012

BluDayz UWI in operation

Sept 5, 2012

Increase promotions and advertising

Sept 20, 2012

Hire additional staff

Nov 1, 20122
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Present proposal for location of BluDayz at Florida International University (FIU) campus Acquire location at FIU

Dec 1,2012

Dec 7,2012

Jan 4,2013

June 15,2013

Begin operations at FIU

June 30,2013

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Appendix

Deep Tissue massage Tanning Bed from ETS Tan

Swedish massage

Hot Stone massage

Reflexology

Oxygen facial
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Exfoliating facial

Galvanic facial

Paraffin pedicure

Ice Cream pedicure

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Champagne or Wine pedicure

French manicure

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Hot Stone pedicure

Full Bikini Wax

Spray-on Tanning bed

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Business Cards

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Company Logo

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References How to open a salon or day spa . (2005, August 30). Retrieved from http://www.entrepreneur.com/startingabusiness/businessideas/startupkits/article79550.html Retrieved on May 1st, 2011 How to start day spa business. (2008, June 6). Retrieved from http://www.spamarketingtools.com/blog/spa-ownership/how-to-start-day-spa-business/ Retrieved on May 1st, 2011 (n.d.). Retrieved from http://www.investopedia.com/ Retrieved on May 1st, 2011

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