Business Plan Float North 2017floatnorthpdx.com/wp-content/uploads/2017/02/Busines… · ·...

BusinessPlan

BusinessName:FloatNorthLLC

Owner:DanaHighfill

Date:1/16/2017

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$300,000.DanaHighfill,theowneriscontributing$75,000.Weareseekingabankloanintheamountof$225,000.

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

FloatNorthhasacustomerbaseof483people.Wecurrentlyseeanaverageof60clientspermonthwiththeaverageclientbringingin$82persessionforatotalincomeof$4,900/month.Marketingincludesword-of-mouth,emailcampaigns,socialmediaads,donationstolocalorganizations,andclientreviewsonYelp,Googleandourwebsite.Facebook,Instagramandtalkingtopeopleinourcommunitiesaretoolsbywhichweareincreasingcurrentandfutureclientawareness.Expansiontoanintegratedmassageandfloatcenterwillutilizearobustmarketingplan(pages8and9)andhelpussucceed.

OPERATIONALPLAN

Nameofbusiness:FloatNorth

Typeofbusiness:FloatationandMassageTherapyWellnessCenter

BusinessDescription1. Service–FloatNorthoffersfloatationandmassagetherapyservices.Byaddingtheabilityto

offerfloatationtherapyinoneofourthreestate-of-the-artOceanFloatRooms,combinedwithmassagetherapyfromhighlyskilledmassagetherapistsweofferauniqueenvironmentinwhichtoheal.Wehavecreatedabeautiful,calmandwelcomingenvironmenttohelpyougetthemostoutofyourexperience.

FloatNorthoffersdiscountedpackagesavailableforthosewishingtocombinefloatingandmassagetherapy.

FloatNorthalsooffersMembershipsthatsupportwell-being.Receivemassageand/orfloatationtherapyaspartofyourregularpreventativewellnesspractice.

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

LocationFloatNorthwillbelocatedat1600NE17thAve.Portland,Oregon97232.Youcanreachusat503-442-7177.Thespaceisserene,comfortable,includeshandicapaccessandstate-of-the-artequipmentincludinganelectric-liftmassagetable.

The3mainfloatcentersinPortlandareFloatOninSoutheastwith6tanks,TheFloatShoppeinNorthwestPortlandwith4tanks,andopeninginJanuary2017EnsoFloatinNorthwestwith5tanks.FloatNorthwillfillademandinNortheastPortland.

ManagementandPersonnelDanaHighfillisownerandmanager.Sheisresponsibleforhiringandtraining1-2part-timereceptionists,and1-2LicensedMassageTherapists(LMTs).Additionalstaffwillbehiredasdemandincreases.Danawillworkasreceptionist,tounderstandclienteleandtheirneedsbetter,3daysperweekandLMT2daysperweekforthefirst6months.

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.DanahasconsultedwithDerekWyattandGrahamTalley,marketingspecialistsatFloatOn.

3. Financial:In2015DanareceivedtheMercyCorpIDAGrantandusedthattocompletethefirstexpansionofherbusiness.DanaconsistentlyusesresourcessuchasMercyCorpNWandPCC’sSmallBusinessDdevelopmentCentertolearnnewandmoreefficientwaysofkeepingtrackoffinancialrecords.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

InsuranceDanaHighfillisamemberofAssociatedBodywork&MassageProfessionals(ABMP).ArequiredpolicyaspartofOregonmassagetherapylicensure,whichcoversProfessionalandGeneralliabilitiesaswellasBusinessPersonalPropertyinsurance.

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


MARKETINGPLAN

MissionStatementHelpingpeopleimprovethequalityoftheirlivesthroughmassageandfloatationtherapy.

MarketNeedsMind-bodytechniquesareevermorepopularasthegeneralpublicpaysattentiontotheirhealthandrecognizewhattheycandotoimprovetheirhealth.Healthcareprovidersunderstandthelong-termbenefitsofpreventativecare.Massageandfloatationtherapyareexcellentformsofcomplementarymedicinethatfacilitatehealingfromillnessandinjuryaswellaspreventmajorillnessesbydecreasingthemajorcauseofdisease: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.

MarketPotentialAccordingtothe2016StateoftheFloatIndustryReportbyFloatTankSolutions,mostfloatcentersofferotherformsofwellnessservicesinadditiontofloating.Massageisthenumber1servicepairedwithfloating.Approximately43%offloatcentersintheUShave2tanks,while30%haveonly1tank.AtFloatNorthwearecombingmassagetherapyandfloatationtherapytobestreachourtargetmarket.

WearemovingtothecentrallylocatedIrvingtonneighborhoodinPortland.MedianincomeintheIrvingtonneighborhoodis$82,331in2013.Theadjacentneighborhood,Sabin-Irvington,hasamedian

incomeofalmost$91,000in2013.Theneighborhoodtotheeast,Alameda,hasamediaincomeofalmost$100,000in2013.

Atthistime7%ofthecurrentclienteleliveintheIrvingtonneighborhood.ItisnotablethatmanyclientstravelfromotherareasofPortlandandSWPortlandincludingoutlyingareassuchasVancouverandTigardtoreceivethehighqualitycarethatweoffer.

Since2009,FloatNorth(formerlySoaringDragonMassage)hasbeengrowing.In2016we

sawanincreaseofmorethan32%insalesfromthepreviousyear.2017willbeabigyearforFloatNorthaswemoveandexpandtooffermoreservicestomoreclientele.

Source:http://goo.gl/nOPzAx

FLOAT NORTH

Portland

Enso FloatFloat Shoppe

Float On


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 EnsoFloat

Location Current:2143NEBroadwaySt.

New:NE17thAve.

4530SEHawthorneBlvd.

1515NW23rdAve. 1102NW10thAve.

Quality 5starsonGoogleandYelp

4.5starsonGoogleandYelp

5starsonGoogle

4.5starsonYelp

Noreviewsyet.

Rangeortypeofservices

3OceanFloatRooms,2MassageTherapyRooms

6FloatTankstotal:2OceanFloatRooms,2pods,2pools

3FloatTanks,Massage,Acupuncture,Yoga,Counseling

5FloatTanks

Price $80/90minfloat,$80/hr.massage

MonthlyMembership:$65

$65/90minfloatnomassage

Membership:Startingat$110

$70/90minfloat$79/hr.massage


$80/90minfloat


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

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

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

Facebook,word-of-mouth

Targetmarket 40-80yearsold,affluent,educatedfemalewithafamily/spouse,andmid-to-highincome

20-50yearsold,male,lowerincome,

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

35-50yearsold,educatedfemale,family/spouse,mid-to-highincome

Otherthingsyou’velearnedabouthowyoucomparetoyourcompetition

Wehavebeenabletosucceedbecauseofourpersonalattentionandfocusontheclient.

FloatOnhasgrownfrom3to6tankssinceopeningin2009.

TheFloatShoppeofferscounseling,acupunctureandisadjacenttoayogastudio.Theyareaddinga4thtankin2016.

Unknown.AsofthiswritingEnsoFloatplanstoopenit’sdoorsJanuary23rd,2017.

Customerservice Excellent Good Good Unknown


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$80fora90-minutefloat.Ourpriceisonparor$5-10higherthanotherfloatcentersinPortland,and$5-10lowerthanotherfloatcentersaroundthecountry.Weofferalevelof service and attention to detail that surpasses our local competition. At Float North weunderstandtheimportanceoftheclientexperienceandtaketimetoeducateandreachouttoclientsonaregularbasis.Ourfloattanks,OceanFloatRoomsTM,arethemostuserfriendlyofallcommercial float tanks on the market. Ocean Float RoomsTM have a higher upfront cost andprovidestart-of-the-artfiltrationandanincredibleuserexperience.Theyaregreatforthosenewtofloatingandregularfloaters.

MassagetherapyatFloatNorthispricedsimilarlytotheotherwellnesscentersandfloatcentersinPortland.Aone-hourmassagetherapysessionis$80.Insuranceratesare$42.50per15-minuteunit.Offeringtopqualitycarefromsomeofthebesttherapistsintown,ourtherapiststhoroughlyassessaclientsneedsandgoalsandtailorthesessiontomeetthe individualsneeds. Massageand floating come together to provide optimal healing for those seeking relief from stress,burnout,injuryorillness.

Membership:$65for1floatpermonth.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:$229,three60-minutemassagesessions.6monthexpiration. Float-Massage-Float:$210,Floatbeforeandafteryour90minutemassage 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.Weareinterestedin


attractingclientswhoarelookingforhigh-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%


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 $59,800Total Expenses $131,513

Assets Details

3 Ocean Float Rooms $124,000 Float Rooms USATankless water heater $3,471 Rinnai RL75 + installationComputer 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 $35,700Total Assets $168,487Total Expenses plus Assets $300,000

Funding:

Owner investment $75,000Outside financing $225,000

Total Funding Requirement $300,000

Float North LLCProject Budget SOURCES & USES Breakdown

• Productsalesincreaserevenue• ProvideanexceptionalexperiencethatisnotfoundelsewhereinPortland• LongtermgoaltoexpandFloatNorth’sbusinessmodeltomultiplelocations

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 $215,000

Total$300,000

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 $80

2 Costofonemassage(LMTasindependentcontractor) $38.25

3 GrossProfitpermassage $41.75


ProfitandLossStatement

Float North LLC Year 2: Jan 2017 - Dec 2017

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

Sales/Receipts (from yr 1)Massage Insurance Client 2,013 1,192 2,000 2,000 2,000 2,100 2,100 2,100 2,000 2,000 2,000 2,000 23,505$ 17%

Massage 1,968 3,250 4,250 4,505 5,525 5,950 5,950 5,652 6,715 7,140 7,140 7,140 65,185$ 46%Float 0 0 0 0 0 0 0 1,516 3,525 6,192 6,192 6,920 24,345$ 17%

Membership/Packages 0 0 0 0 3,096 3,096 3,870 1,003 3,096 3,870 3,870 4,644 26,545$ 19%Product 20 10 0 20 20 20 20 20 50 100 150 260 690$ 0%

Total Income 4,001 4,452 6,250 6,525 10,641 11,166 11,940 10,291 15,386 19,302 19,352 20,964 140,270$ 100%

Cost of Goods or Services (from yr 1) COG % income 1 : 18% income 2 35% income 3 7% income 4 9% income 5 45%

Cost of Goods or Services 1 362 215 360 360 360 378 378 378 360 360 360 360 4,231$ Cost of Goods or Services 2 689 1,138 1,488 1,577 1,934 2,083 2,083 1,978 2,350 2,499 2,499 2,499 22,815$ Cost of Goods or Services 3 0 0 0 0 0 0 0 106 247 433 433 484 1,704$ Cost of Goods or Services 4 0 0 0 0 279 279 348 90 279 348 348 418 2,389$ Cost of Goods or Services 5 9 5 0 9 9 9 9 9 23 45 68 117 311$

Total COGS 1,060 1,357 1,848 1,946 2,581 2,748 2,818 2,562 3,258 3,686 3,708 3,878 31,449$

Gross Profit 2,941 3,095 4,403 4,579 8,060 8,418 9,122 7,729 12,128 15,616 15,644 17,086 108,821$ average gross profit margin: 78%

Expenses (will transfer from yr)Rent (monthly base rent + NNN) 600 600 600 600 600 600 300 300 4,200 4,200 4,200 4,200 21,000$

Utilities 30 30 30 30 30 150 150 150 200 200 200 200 1,400$ Telephone & Internet 110 110 110 110 110 140 140 140 140 140 140 140 1,530$

Garbage/Electrical/Natural Gas 0 0 0 0 0 200 200 400 500 500 500 500 2,800$ Alarm Fees -$

Payroll 2,500 2,500 2,500 2,500 10,000$ Payroll Taxes -$

Loan Payment Interest Only - 8%, 10 years 1,467 1,467 1,467 1,467 1,467 1,467 2,669 11,471$ Marketing and Advertising 40 50 60 75 100 120 150 200 200 200 200 200 1,595$

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

Insurance (liability) -$ Medical Billing Service 199 199$

State Taxes -$ Other Taxes 1,321 2,500 2,500 2,500 8,821$

Licenses 150 150$ Office Supplies 125 125 125 375$

Charitable Contributions -$ UPS monthly service charge -$

Other -$ Total Expenses 2,101 790 800 3,740 840 2,827 4,907 2,782 9,207 11,707 9,207 10,733 59,641$

Net Profit/Loss 840 2,305 3,603 839 7,220 5,591 4,215 4,947 2,921 3,909 6,437 6,353 49,180$

Break Even Revenue 2,708$ 1,018$ 1,031$ 4,821$ 1,083$ 3,644$ 6,325$ 3,586$ 11,868$ 15,090$ 11,868$ 13,835$ 76,877$

Float North LLC Year 3: Jan 2018 - Dec 2018

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

Sales/ReceiptsMassage Insurance Client 1,200 1,300 1,400 1,100 1,300 1,400 1,500 1,100 1,100 1,300 1,400 1,500 15,600$ 6%

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$ 22%Float 7,740 7,740 9,288 9,288 10,836 10,836 10,836 10,836 12,384 12,384 12,384 12,384 126,936$ 45%

Membership/Packages 4,644 5,418 5,418 6,192 6,192 6,192 5,418 5,418 6,192 7,430 7,430 7,430 73,374$ 26%Product/Sauna 60 80 100 150 180 180 200 200 240 260 260 260 2,170$ 1%Total Income 17,214 18,363 20,456 20,725 22,758 22,858 22,204 22,059 26,631 28,514 28,614 28,714 279,110$ 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 1 216 234 252 198 234 252 270 198 198 234 252 270 2,808$ 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 3 542 542 650 650 759 759 759 759 867 867 867 867 8,886$ Cost of Goods or Services 4 418 488 488 557 557 557 488 488 557 669 669 669 6,604$ Cost of Goods or Services 5 27 36 45 68 81 81 90 90 108 117 117 117 977$

Total COGS 2,809 3,021 3,347 3,271 3,543 3,561 3,519 3,561 4,752 5,100 5,118 5,136 46,737$

Gross Profit 14,405 15,342 17,109 17,454 19,215 19,297 18,685 18,498 21,879 23,414 23,496 23,578 232,373$ average gross profit margin is 83%

ExpensesRent (monthly base rent + NNN) 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 4,200 50,400$

Utilities 275 275 300 300 300 275 250 300 300 300 350 350 3,575$ Telephone & Internet 110 110 110 110 110 110 140 140 140 140 140 140 1,500$

Garbage/Electrical/Natural Gas 500 500 500 500 700 700 700 700 1,000 1,000 1,000 1,000 8,800$ 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%, 10 years 2,669 2,669 2,669 2,669 2,669 2,669 2,669 2,669 2,669 2,669 2,669 2,669 32,028$ Marketing and Advertising 200 250 200 200 200 200 150 200 250 250 250 250 2,600$

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 125 125 125 125 500$

Charitable Contributions -$ UPS monthly service charge -$

Other -$ Total Expenses 10,454 13,004 10,479 10,678 10,679 10,804 13,234 10,834 11,184 13,559 11,109 11,433 137,451

Net Profit/Loss 3,951 2,338 6,630 6,776 8,536 8,493 5,451 7,664 10,695 9,855 12,387 12,145 94,922$

Break Even Revenue 12,557$ 15,619$ 12,587$ 12,826$ 12,827$ 12,977$ 15,896$ 13,013$ 13,433$ 16,286$ 13,343$ 13,733$ 165,097$


CashFlowProjection

Float North LLC CASH FLOW PROJECTIONS

YEAR ONE - Jan 2016 - Dec 2016Jan Feb March April May Jun July Aug Sep Oct Nov Dec

CASH INOpening Cash Balance 85,000 84,985 86,982 90,564 90,800 93,843 94,818 95,834 97,506 97,645 96,009 96,687

Total Income 3,308 5,442 7,483 7,601 6,858 4,159 6,189 5,296 3,408 2,816 4,010 4,597other cash in 0

Total Cash Available 88,308 90,427 94,466 98,165 97,658 98,002 101,007 101,130 100,914 100,462 100,019 101,284CASH OUT

COGS/Inventory Purchases* 831 1,170 1,647 1,659 1,450 924 1,311 1,064 729 572 667 812Total Expenses 692 475 455 3,906 565 460 2,061 760 740 2,081 865 939

Additional Inventory PurchaseLoan Payment (principle only)

Capital PurchasesOther cash outlays 2,900

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 3,323 3,445 3,902 7,365 3,815 3,184 5,172 3,624 3,269 4,453 3,332 6,451

ENDING CASH BALANCE $84,985 $86,982 $90,564 $90,800 $93,843 $94,818 $95,834 $97,506 $97,645 $96,009 $96,687 $94,834

YEAR TWO - Jan 2017 - Dec 2017 Jan Feb March April May Jun July Aug Sep Oct Nov DecCASH IN

Opening cash balance 94,834 90,671 88,426 86,979 67,018 52,938 37,229 37,941 20,378 17,280 18,163 21,565Total Income 4,001 4,452 6,250 6,525 10,641 11,166 11,940 10,291 15,386 19,302 19,352 20,964other cash in 31,500 31,500 120,500 31,500

Available Cash Balance 98,835 95,123 94,676 93,504 109,159 95,604 169,669 79,732 35,764 36,582 37,515 42,529CASH OUT

COGS/Inventory Purchases* 1,060 1,357 1,848 1,946 2,581 2,748 2,818 2,562 3,258 3,686 3,708 3,878Total Expenses 2,101 790 800 3,740 840 2,827 4,907 2,782 9,207 11,707 9,207 10,733

Additional Inventory PurchaseLoan Payment (principle only) 1,203 1,211 1,219 1,227 1,235 1,243

Capital Purchases 16,000 35,000 35,000 105,000 35,000 3,000Other cash outlays 3,203 2,750 3,250 3,000 16,000 16,000 16,000 16,000

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 8,164 6,697 7,698 26,486 56,221 58,375 131,727 59,354 18,484 18,419 15,950 17,855


* 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.

Float North LLC CASH FLOW PROJECTIONS

YEAR Three - Jan 2018 - Dec 2018Jan Feb March April May Jun July Aug Sep Oct Nov Dec

CASH INOpening Cash Balance 24,674 25,573 24,852 28,413 32,113 37,563 42,963 45,312 49,865 57,440 64,167 73,417

Total Income 17,214 18,363 20,456 20,725 22,758 22,858 22,204 22,059 26,631 28,514 28,614 28,714other cash in 0

Total Cash Available 41,888 43,936 45,308 49,138 54,871 60,421 65,167 67,371 76,496 85,954 92,781 102,131CASH OUT

COGS/Inventory Purchases* 2,809 3,021 3,347 3,271 3,543 3,561 3,519 3,561 4,752 5,100 5,118 5,136Total Expenses 10,454 13,004 10,479 10,678 10,679 10,804 13,234 10,834 11,184 13,559 11,109 11,433

Additional Inventory PurchaseLoan Payment 1,251 1,260 1,268 1,277 1,285 1,293 1,302 1,311 1,320 1,329 1,337 1,346

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 1,800Total Cash Outflows 16,315 19,085 16,894 17,026 17,307 17,458 19,855 17,506 19,056 21,788 19,364 19,715


YEAR Four - Jan 2019 - Dec 2019 Jan Feb March April May Jun July Aug Sep Oct Nov DecCASH IN

Opening cash balance 82,417 85,966 92,571 98,346 103,283 112,600 122,785 129,086 138,384 147,405 156,682 169,476Total Income 24,347 25,298 24,298 26,548 28,096 29,322 27,548 28,250 28,179 31,384 32,555 32,584other cash in

Available Cash Balance 106,764 111,264 116,869 124,894 131,379 141,922 150,333 157,336 166,563 178,789 189,237 202,060CASH OUT

COGS/Inventory Purchases* 4,084 4,470 4,290 4,445 4,553 4,752 4,502 4,548 4,860 5,300 5,393 5,406Total Expenses 13,559 11,059 11,059 13,984 11,034 11,184 13,534 11,184 11,059 13,559 11,109 11,483

Additional Inventory PurchaseLoan Payment 1,355 1,364 1,373 1,383 1,392 1,401 1,410 1,420 1,439 1,448 1,458 1,468

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 20,798 18,693 18,522 21,612 18,779 19,137 21,246 18,952 19,158 22,107 19,760 20,357


* 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.

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