Serene Life
“To be Serene, is to Live”
Business Plan
Serene Life
Table of Contents
Executive Summary ...................................................................................................................... 1
Opportunity........................................................................................................................... 1
Expectations .......................................................................................................................... 4
Opportunity ................................................................................................................................... 5
Problem & Solution .............................................................................................................. 5
Research .............................................................................................................................. 11
Target Market ..................................................................................................................... 19
Opportunity......................................................................................................................... 27
Execution ..................................................................................................................................... 31
Marketing & Sales .............................................................................................................. 31
Operations ........................................................................................................................... 38
Future Projects/Opportunities .......................................................................................... 39
Pricing .................................................................................................................................. 41
Company ...................................................................................................................................... 45
Overview .............................................................................................................................. 45
Team .................................................................................................................................... 45
Financial Plan .............................................................................................................................. 47
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Financing ............................................................................................................................. 47
Forecast................................................................................................................................ 56
Statements ........................................................................................................................... 63
References .................................................................................................................................... 68
Appendix ...................................................................................................................................... 80
Profit and Loss Statement .................................................................................................. 80
Balance Sheet ...................................................................................................................... 87
Cash Flow Statement .......................................................................................................... 96
Cryotherapy Fact Sheet ................................................................................................... 104
Serene Life
Executive Summary
Opportunity
Problem
Serene Life aims to be the premier health spa in the West Palm Beach area. By offering unique
products and services, the business will quickly gain market share. Our primary goal is to
provide treatments that provide an overall increase in the health and wellness of our customers.
Every system in the human body needs to harmoniously work together for overall balance and
healing, thus our services will provide physical, emotional, mental and spiritual balance that will
result in self-improvement.
To fulfill our mission Serene Life will provide a comfortable and supportive environment with
the goal of breaking down boundaries between hospitality and health care. We will work with
our clients primary care providers to ensure that our services are in the best interest of our
clients, and finds ways to optimize our clients overall health. We want our clients to live a life of
serenity.
We have the vision to become the leader in the new emerging health care environment by
combining traditional medicine with complementary and alternative medicine in an
unprecedented way. We will work to develop and test alternative practices to gain empirical
evidence of its benefits, while benchmarking practices to better service and enrich the lives of
our clients.
Solution
The services provided at Serene Life will promote overall physical and mental health and
performance – and help individuals (both male and female) address the effects of aging, stress,
disease and injury. Our services will work to solve problems associated with life’s hardest
challenges through holistic methods of mindwork, bodywork, and energy work. This is all done
in a relaxing, serene setting.
Our services will work in conjunction with other medical or therapeutic techniques to relieve
side effects from prescriptions or chemical treatments, and promote recovery for our
clients. Serene Life will have a Health and Wellness Manager that will conduct health
assessments and track client progress through our personalized health and wellness program.
What will differentiate our services is our collaboration with traditional health care providers and
treatment providers. Serene Life’s dedication to each customer will also be a unique feature of
the business, in which each customer will feel that they have a support system in place as a result
of follow up, personalization of the customer experience to a particular individual based on their
needs and desired outcomes.
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Our treatment center and service model will be practical and affordable to our targeted market.
However, the image of the spa will be that it is upscale and exclusive, due to services provided,
confidentiality, and the fact that it will not be affordable to people below the middle and upper
middle class income bracket of Palm Beach County.
Market
Competition
Direct Competitors
There are four direct Cryotherapy competitors within a 30-mile radius to Serene Life. These
competitors are Iceland Cryo, Broward Cryotherapy, Cryotherapy Miami, and Below Zero
Cryotherapy. What differentiates Serene Life from these competitors is our value of services
provided, approach, client experience, target market, and staff.
Upon researching the aforementioned competitors, it has been established that they do not pose a
substantial threat (to the success of Serene Life) due to primarily targeting sports enthusiasts,
younger clients, and clients with behaviors and values that are different from Serene Life’s target
markets.
Indirect Competitors
Anushka Spa, Salon & Cosmedical Centre is our closest indirect competitor. They are also
located in City Place, however the services they provide are primarily cosmetic and beauty
orientated.
It is Serene Life’s believe that we will actually benefit from the presence of Anushka Spa. It is
hypothesized that Anushka’s clientele, due to being interested in maintaining other beauty, will
be interested in the services of Serene Life. We believe that Serene Life’s services compliment
the services provided by Anuska, therefore it will be a goal to establish a mutually benefiting
partnership/relationship with Anuska spa owners/management. This relationship will drive traffic
and business for both Serene Life and Anuska Spa by word of mouth marketing.
It is well known that word of mouth marketing is invaluable, especially to a small business.
According to a Bloomberg Business article that “even with the explosion of review applications
and sites (eg, Yelp, Google, Urbanspoon), word of mouth—product or service recommendations
made by friends, co-workers, or neighbors you know and trust—is still the most effective way to
win new customers” (O’Connor, 2012).
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Why Us?
Serene Life’s competitive edge is its unique combination of providing health and wellness
services that compliment a client’s medical treatment or existing health care services. Serene
Life will have innovative services that are not available at other health spas or competitors.
Additionally, Serene Life’s customer-centric focus will be a driving factor in differentiation.
Serene Life’s mission is to provide services that are of extreme value, and that will result in a
higher quality of life among its clients. Serene Life will have an extensive employee training will
result in unprecedented level of customer service. All customers will leave with their needs met
well beyond expectations.
Location is another determinant in the success of Serene Life. The surrounding businesses of
City Place will not only attract customers, but compliment their products and/or services.
Benefits of our location are highlighted in the location section.
This customer-centric business (cost-benefit analysis translates to client) model is supported by
financial incentives that are in place for employees to offer unprecedented levels of service. This
will ensure a high rate of return customers, allowing Serene Life to meet their ambitious goal of
90%.
Our business model is a unique combination of two industries- The Health Industry and The
Salon/Spa Industry. Both are stable, and quickly growing. The Salon and Spa Industry
outperformed the overall private sector during, and since the recession (Professional Beauty
Association, 2014). According to the Bureau for Labor Statistics, the nation’s 1 million-plus
salons and spas have annual sales of $46 billion (Crone, 2015). Both industries have been
historically stable due to there always being a need for health care and personal care services,
and are quickly growing due to increases in the population, advances in technology, and natural
beauty and health alternatives.
Albeit there is risk associated with new industries and services such as Cryotherapy, the demand
for traditional health care alternatives has resulted in a lot of attention and curiosity about the
deep freeze. Cryotherapy centers have a diverse customer base, and have had unexpected sales.
Adding to the hype has been the endorsement of Cryotherapy by A-list celebrities and Athletes.
We believe that once we establish a customer base, we can then shape and develop our business
model to further meet the needs of our market, in addition to introducing innovative services that
will embrace both beauty and health benefits.
Our management team will add to the viability of the business. There will be strong managerial
presence with effective management practices in place.
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Expectations
Forecast
Serene Life will attempt to break even within three months of revenue generation. However, if
this goal is not achieved, any negative cash flow is expected to catch up over the course of the
first year.
Financial Highlights by Year
Financing Needed
Serene Life will be structured as a Limited Liability Limited Partnership, L.L.L.P (also known as
a partnership with limited liability). Terms of the investment include 10% interest for a 3-year
period investment of $200k from 2 limited partners with 20% ownership interest (100k
individual investment), the general partner will invest $450k. Additionally, there will be equal
division of 10% of year-end net profits among the 3 partners for the first 2 years of operations.
When terms of the investment are reached, the partnership will dissolve at the end of year 3 with
the General Partner becoming the sole proprietor and changing the business structure to a
Limited Liability Corporation, LLC.
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Opportunity
Problem & Solution
Problem Worth Solving
Chronic pain is a prevalent ailment that has serious affects on its sufferers. America has become
known as the “nation of pain” due to the growing number of those affected. According to data
from the 2012 National Health Interview Survey (NHIS), an estimated 25.3 million adults (11.2
percent) had pain every day for the 3 months preceding the study (National Institution of Health,
2012). The study also found that nearly 40 million adults (17.6 percent) experience severe levels
of pain and that even more people — 17.6 percent of American adults — suffer from "severe
levels" of pain (Bushak, 2015). Dependence upon opioid painkillers and other pharmaceuticals
becomes an issue with people who try to manage their chronic pain. As a result, opioid
dependence and instances of overdose is on the rise.
Chronic pain is an umbrella term for common conditions, such as back pain, joint pain,
arthritis; neck and muscle pain, and headache. The Kaiser Permanente Center for Health
Research reported 100 million Americans suffer from these conditions each year, and according
to its latest research, primary care may not be enough to offer relief (Castillo, 2015). Researchers
from Kaiser and Oregon Health & Science University recently found that 58 percent of chronic
pain patients had used either alternative treatments such as such as acupuncture, yoga,
meditation, and chiropractic care (Elder et al., 2015).
Chronic pain not only has affects on the body, but on the overall health and wellness of suffers.
Depression, Fatigue, and Weight Gain are all issues that are correlated to chronic pain.
Ultimately, the overall quality of life of pain sufferers is greatly compromised. The etiology of
pain is multimodal and complicated, affecting every aspect of the individual: physical,
emotional, and spiritual, as well the family and community. There is no simple solution to this
complex problem. Thus, the treatment needs to be interdisciplinary and multimodal in its
approach. It also has to incorporate all the aspects of the individual, family, and community and
not just focus on the etiology itself. One way to achieve an interdisciplinary, multimodal and
holistic approach to pain management is by incorporating complementary therapies into an
individualized pain management plan of care.
With all of these factors taken into consideration, the National Institute of Health’s National
Center for Complementary and Integrative Health (NCCIH) believes the future in pain
intervention lies in complementary health approaches, which may help manage pain and other
symptoms that are not consistently addressed by prescription drugs and other
conventional treatments (National Institution of Health, 2012).
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There are many definitions of “integrative” health care, but all involve bringing conventional and
complementary approaches together in a coordinated way. Holistic approaches and practices that
are untraditional in Western Medicine are often considered Complementary and Alternative
Medicine (CAM). The use of integrative approaches to health and wellness has grown within
care settings across the United States. Researchers are currently exploring the potential benefits
of integrative health in a variety of situations, including pain management for military personnel
and veterans, relief of symptoms in cancer patients and survivors, and programs to promote
healthy behaviors (“Complementary, Alternative, or Integrative Health,” 2011).
Researchers from Kaiser and Oregon Health & Science University recently found that 58 percent
of chronic pain patients had used either alternative treatments such as such as acupuncture, yoga,
meditation, and chiropractic care (Elder et al., 2015). In a 2007 study, researchers at the National
Center for Complementary and Integrative Health (NCCIH) and the RAND Corporation found
that American adults who use complementary health approaches to treat or manage painful
health conditions (arthritis, back pain, and fibromyalgia) spent an estimated $14.9 billion out-ofpocket on them with back pain accounting for $5.1 billion (Nahin, Stussman, & Herman, 2015).
Our Solution
Serene Life Spa’s primary goal is to increase the overall quality of life of its customers- who
suffer from chronic pain and/or other conditions that affect daily functioning. Serene Life will
achieve this goal by providing innovative services, specifically Cryotherapy, that integrates
traditional health care practices with complementary and alternative medicine. There is a market
need for a spa that breaks down the barriers between health care providers and hospitality. Our
products and services will address needs that are prevailing in West Palm Beach.
Products and Services
Our primary service will be Whole Body Cryotherapy (WBC). WBC has proven health and
beauty benefits that can be traced back to the use of cold in the form of ice packs, compresses,
ice tubs and polar pools to treat pain, inflammation, and aide recovery from injury and other
ailments. The hyper-cooling treatments improve skin tone, reduce signs of aging, manage pain,
lower inflammation, can improve athletic performance, and can mitigate depression.
Using non-invasive treatments ranging from -200 to -300 degrees Fahrenheit, the team at Serene
Life will aim to help their clients recover more quickly from injuries or surgery and reduce pain.
The body is exposed to freezing temperatures for up to three minutes, and sessions can burn 600800 calories and lead to increased adrenaline and endorphins while at the same time boosting the
immune system and blood circulation.
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During the exposure, the body is induced into a physiological response, without causing the
extreme body chill you would feel by sitting in a tub of water. In the cold temperatures, the blood
vessels quickly constrict forming a protective layer while the core body temperature is
maintained. The process naturally stimulates blood circulation as the body's hormone, immune,
and nervous systems are activated. Following the exposure, the blood vessels release (vasodilate)
providing up to 3 times greater blood flow to the body's damaged tissues and muscles. This
process can lead to rapid recovery and long-term pain cessation. Additional positive effects of
treatments may include decreased soreness, fatigue, or pain from arthritis, as well as tighter and
healthier skin.
The cold therapy products and equipment have not been tested or approved by the FDA or any
other government agencies for the treatment of any illness or disease. Customers will be required
to complete an acknowledgment form listing the contraindications to Cryotherapy treatment.
They are as follows: Pregnancy, severe Hypertension (BP> 180/100), acute or recent myocardial
infarction, unstable angina pectoris, arrhythmia, symptomatic cardiovascular disease, cardiac
pacemaker, peripheral arterial occlusive disease, venous thrombosis, acute or recent
cerebrovascular accident, uncontrolled seizures, Raynaud’s Syndrome, fever, tumor disease,
symptomatic lung disorders, bleeding disorders, severe anemia, infection, cold allergy, acute
kidney and urinary tract diseases. Additionally noted is the following: “This list may not be all
inclusive, so if you have any particular health problem which you believe would preclude you
from participating in exposure to extreme cold, please check with your treating physician before
participating.”
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Description of Services
Whole Body Cryotherapy Chamber
The Cryotherapy chamber treatment lasts for 3 minutes, generating extremely cold air, up to 4
times colder than standard ice packs or baths, without lowering the body's core temperature.
Benefits:
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Pain Management
Increased Metabolism
Inflammation Reduction
Mental Rejuvenation
Increased Energy
Hydro Massage Bed
A relaxing massage is provided on a comfortable warm waterbed with relaxing music to
compliment your experience. Complete your recovery or treatment session with some feel-good
relief. Massage is highly recommended to relieve the body of stress and toxins.
Benefits:
•
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Reduction of Muscle Tension
Mental Relaxation and Meditation
Enhanced Circulation
Accelerates
Recoveries
Vibration Plate Therapy
The vibration plate treatments are generally 5-10 minutes per session.
Benefits:
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Soft Tissue Stimulation
Lymphatic System Activation
Joint Stress Relief
Enhanced Circulation
Accelerates Recoveries
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Localized Cold Air Treatments
Facial Cryotherapy and Rejuvenation Treatments are targeted to a specific muscle area or spasm.
Cold air is applied via a localized device for a twenty second to one minute period. Localized
cold air treatments reach -25° to -40° F. Cold air is deployed by an application hose enabling
precision cooling to the affected area and the exact delivery of airflow dosage to the skin.
Localized Cryotherapy devices take in ambient room-temperature air and chills it before
delivering it to the specific areas of the body undergoing application.
Benefits:
• Targeted to Specific Problem Areas
• Decreased Pain and Muscle Soreness
• Cellulite Reduction
Lastly, customers will be required to complete a Medical History* form before receiving any
treatment. Additionally, the customer will agree to a Waiver Of Liability And Medical Release
And Indemnification Agreement.
Acupuncture will also be a service offered by Serene Life. As defined by the Florida Board of
Acupuncture, “Acupuncture means a form of primary health care, based on traditional Chinese
medical concepts and modern oriental medical techniques, that employs acupuncture diagnosis
and treatment, as well as adjunctive therapies and diagnostic techniques, for the promotion,
maintenance, and restoration of health and the prevention of disease. Acupuncture shall include,
but not be limited to, the insertion of acupuncture needles and the application of moxibustion to
specific areas of the human body and the use of electroacupuncture, Qi Gong, oriental massage,
herbal therapy, dietary guidelines, and other adjunctive therapies, as defined by board
rule”(Florida Board of Acupuncture, 2015b).
Serene Life will also offer a Health and Wellness Program, which will focus first on disease
prevention, then disease management. The goal is to change the health care culture to one that
emphasizes the need for lifestyle changes, mindfulness, self-care practices, and education.
*Refer to Appendix for Cryotherapy Fact Sheet and Supporting Documents.
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Health and Wellness Program
Our program will focus on preventive care, discussing attributes of healthy living; nutrition,
exercise body composition, hormonal balance, and stress management issues. Integrative Health
and Healing teaches the importance of self: self-care, self-responsibility, and self-awareness.
Upon assessment, our Health and Wellness Manager will make recommendations for what in
house services will work best given the results of the assessment. Below are the different plans
that will be offered through our Health and Wellness Program.
Chronic Disease Self-Management Service Plan
Provide education and support. Increase patient education in nutrition and exercise. This has the
potential to change medical outcomes by decreasing weight, the risk of diabetes and
hypertension, and cancer.
Provide nutritional assessment/individualized meal plan, and strengthening the immune system
and boosting energy through scientific-based integrative therapies.
Behavioral Health Quality- Mental and Substance Abuse Guidance
Develop outcomes-based performance metrics that recognize and capture the quality and safety
benefits of a holistic, patient-centric approach to health care.
Stress Management
Stress is a significant contributor to pain conditions. In fact, by definition, pain has an emotional
component. Further, chronic pain leads to increased stress, which results in a vicious cycle.
Therefore, pain cannot be managed without addressing its relationship to stress. Research is
showing that our thoughts and perceptions influence our ability to heal. Mindfulness or the
ability to be in the moment brings a greater awareness to the unconscious and its affect on
emotional, physical, and spiritual health. Mindfulness focuses the mind’s ability to heal the body.
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Research
Abstract
This paper explores three published articles that report provide results from research conducted
on the potential benefits Whole Body Cryotherapy (WBC) has in aiding in the improvement of
mental health issues and the overall of quality of life.
The question to be answered in this literature review is: “Does Whole Body Cryotherapy provide
a better quality of life for people with and without a mental or physical ailment?”
A number of sub questions arise from here, which will also be addressed in subsequent reviews
with respect to the main research question.
Key Words: Whole Body Cryotherapy (WBC), WBCT (Whole Body Cryotherapy Treatment),
Complementary And Alternative Medicine (CAM), Rheumatoid Arthritis (RA), Hamilton’s
Depression Rating Scale (HDRS), Hamilton’s Anxiety Rating Scale (HARS), HypothalamicPituitary-Adrenal Axis (HPA), Major Depressive Disorder (MDD), The World Health
Organization Quality of Life-Bref (WHOQOL-Bref), Psychological General Well-Being Index
(PGWBI)
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History of Cryotherapy
Contemporary cryogenics has been developing from the end of the 19th century since the
liquefaction of oxygen, nitrogen, carbon dioxide and hydrogen, and also the industrial production
and storage of liquid coolants, enabled the development of cryobiology and the use of extremely
low temperatures in medicine. The word cryotherapy is derived from the Greek words "cryo"
meaning cold and "therapia" meaning healing, and it refers to any procedure that uses low
temperatures to treat bodily ailments such as inflammation or skin lesions (Holt, 2015). The term
"Cryotherapy" was first used in 1908 by A.W. Pusey to describe the treatment of skin lesions
with very low temperatures (Lubkowska, 2012). In 1978, a Japanese Dr. Yamauchi developed
the Cryotherapy chamber to aid in treatment of Rheumatoid Arthritis (RA).
In a society driven by money hungry multi-billion dollar pharmaceutical companies and a
faulted health care system, people are on the hunt for alternative treatments to provide not only
effective relief to their physical aliments, but also relief to their wallets. This need has opened the
door to opportunities for progressive and alternative treatments. Whole Body Cryotherapy
(WBC) is a holistic and alternative treatment with great opportunity in our current market and
society. Considered a modern medical practice, WBC is said to provide healing impact on the
treatment of the endocrine, immune, and nervous systems. Treatments consist of two-threeminute short exposures to air temperatures below −100°C in a Cryosauna/Cryochamber. In the
chamber there is a cool retention effect; chambers cooled with a mixture of liquid nitrogen vapor
and air, or with a compression cooling system. During low-temperature treatment in a chamber,
the cold air-cools the whole body. The therapy is purported to burn up to 800 calories, release
endorphins, improve sleep, boost the immune system, reduce inflammation, improve athletic
performance, smooth wrinkles, and reduce signs of aging.
Current Trends in Health Care/Alternative Medicine
Research suggests people are seeking alternative medicines for a variety of reasons,
further supporting the possible market opportunity for Cryotherapy. According to a study
conducted by Treister-Goltzman & Peleg, 2015, “Public interest in and demand for
Complementary and Alternative Medicine (CAM) services have increased in recent years
throughout the Western world. On Google Scholar there were 27,170 citations related to CAM
between 1963 and 1972. This increased to 2,521,430 between 2003 and 2012.”
Overall, there has been a significant increase in scientific publications on CAM in
general, and on specific CAM treatments in particular (Treister-Goltzman & Peleg, 2015).
Factors such as cost, insurance, and wait time plague the United States health care system, are
further driving people to seek out nontraditional medical practices. A 2013 Commonwealth Fund
International survey found that 26 percent of American adults reported they waited six days or
more for needed appointments, and much longer to be seen by a specialist (Rosenthal, 2014).
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Recent estimates suggest that the per-patient, direct medical costs for RA range from
$2,000 to $10,000 annually. This is a significant use of healthcare resources, considering that
approximately 1.3 million people in the United States have been diagnosed with RA (Chrvala,
2013). Additionally, novel therapies and their acquisition costs, far exceed those for older antirheumatic drugs (Kavanaugh, 2007).
Need for Research
Present there is relatively insufficient research completed to support whether WBC has a
significant affect on metabolism, skin and aging, mitigated depression and other psychological
disturbances including sleep related issues. The bulk of scientific research available is on the
effectiveness of WBC in treating RA or muscle soreness. The majority of this research is specific
to the potential advantages of WBC use by athletes, and has become widely accepted in sports
medicine due to its proven benefits (Banfi, Lombardi, Colombini, & Melegati, 2010). Due to the
infancy and skepticism of WBC, there has been a lack of funding to conduct well-designed
scientific research experiments. In regard to WBC treatments effectiveness in reducing
inflammation in the entire body, Giovanni Lombardi, a biomedical researcher at the Galeazzi
Orthopedic Institute in Italy (who has conducted a number of studies regarding WBC), stated,
“This is the key anti-inflammatory action of WBC, making it theoretically effective in the
treatment of all the inflammatory conditions” (Orwig, 2015). Due to positive results in
orthopedic studies, there is now a significant interest in exploring the full benefits of WBC. Also,
recent celebrity endorsements and testimonials by the likes of Lebron James and Demi Moore
have aided in increasing the public’s awareness of WBC and its said benefits. Due to these
factors, it is predicted that more funding will be made available to conduct intensive research on
WBC and Mental Health
As previously mentioned, there is limited empirical evidence to support claims that WBC
treatments have a positive affect on quality of life and mental health. The Department of
Psychiatry of Wroclaw Medical University (Rymaszewska, Ramsey, & Chładzińska-Kiejna,
2008) conducted one of the first studies evaluating the efficacy of Cryotherapy in psychiatric
treatment. The study assessed the efficacy of WBCT (Whole Body Cryotherapy Treatment) as an
experimental, adjunctive method of treating depressive and anxiety disorders. The population of
the study consisted of a control (n=34) and a study group (n=26), all of which were receiving
outpatient mental health services. The sample was comprised of 18-65 years old with depressive
and anxiety disorders (ICD-10), receiving standard psychopharmacotherapy. The study group
was treated with a series of 15 daily visits to a cryogenic chamber (2-3 min, from -160 degrees C
to -110 degrees C). The design of this study was observational in which observations were made
at six different stages: At the start of treatment (T1), after 7, 14, and 21 days (T2, T3, and T4,
respectively), as well as 3 and 6 months after the cycle of visits (T5 and T6, respectively). This
report considers the short-term effects of treatment (the first three weeks, T1–T4).
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The researchers used The Hamilton’s Depression Rating Scale (HDRS), and Hamilton’s
Anxiety Rating Scale (HARS) were used as the outcome measures. The HARS was one of the
first rating scales developed to measure the severity of anxiety symptoms, and is widely used and
accepted by researchers and mental health practitioners. It is considered a reliable measurement
tool. Two criteria for determining the short-term efficacy of WBCT as an adjunctive treatment
according to either the HDRS-17 or HARS score were used for the outcome measure. Both were
clearly outlined and defined.
For statistical analysis the researchers used Fisher’s exact test for independence, The
Mann-Whitney rank test for independent samples, Kolmogorov-Smirnov test, Wilcoxon rank test
for dependent samples, linear regression, and regression models were used to ensure accuracy
and to analyze the scores (dependent variables). The effects of the methods used were
thoroughly analyzed as well as comparing the rate of change of the scores according to the group
and clinical variables.
According to Rymaszewska et al., 2008, the following results were derived: After three
weeks, a decrease of at least 50% from the baseline HDRS-17 scores in 34.6% of the study group
and 2.9% of the control group and a decrease of at least 50% from the baseline HARS score in
46.2% of the study group and in none of the control group were noted. Due to the findings it was
concluded that there is a possible role for WBCT as a short-term adjuvant treatment for mood
and anxiety disorders. (p. 63)
Overall, the report regarding this study was well written, clearly outlining the study’s
purpose and objective, sample, research problem, information about the sample, and was
logically consistent in describing the steps of the research. Some disadvantages/limitations to the
study was the lack of prior theoretical framework on this topic. However, the author describes
how short exposure to extremely low temperatures activates the body’s system of temperature
regulation, in addition to how WBC stimulates physiological reactions (Rymaszewska et al.,
2008).
Furthermore the author explains hormonal responses that occur in the body when subjected to
WBC treatments, and how hormone levels and metabolism increase as a result of the exposure
(Rymaszewska et al., 2000). For support the author references a recent study conducted by
assessing blood serum concentrations of selected steroid hormones in professional football
players subjected to WBCT, which concluded the treatment leads to a significant decrease in
serum testosterone and estradiol (Korzonek-Szlacheta, Wielkoszyński, Stanek, Świętochowska,
Karpe, & Sieroń, 2007).
This is of particular importance because it highlights reinforces the need for researchers
to conduct holistic studies that also monitor responses in other systems within the body. Due to
Cryotherapy’s proven ability to change hormone levels, biological psychiatry needs to be studied
concurrently with endocrine system research. When the hypothalamic-pituitary-adrenal axis
(HPA) and sympathetic nervous system (both work together) are exposed to a stimuli or a
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disruption in their homeostasis, agitation in the HPA axis occurs, which results in the release of
hormones such as Cortisol. Studies show that elevated Cortisol levels are often present in
individuals with Major Depressive Disorder (MDD), mood disorders, or who experience
disruptions to other behaviors (Varghese & Brown, 2001). This connection suggests that mental
health symptoms could be alleviated through WBCT if proper modalities and treatment
schedules are developed with the help of the participants’ current treatment providers.
In an earlier study conducted by Rymaszewska, Tulczynski, Zagrobelny, Kiejna, &
Hadrys, (2003), from The Department of Psychiatry of Wroclaw Medical University, the
objective was to provide an initial approach to whole-body Cryotherapy (WBCT) as a potential
treatment modality for depression and was expected to provide rough data helping to design a
future project with extended methodology, larger sample groups and longer follow-up. The
study’s problem statement stated “Cryotherapy has a long tradition in somatic medicine. Yet we
know very little about its impact on psyche and mood disturbances in particular. Therefore there
is a real need for scientific investigations into this problem” (Rymaszewska et al., 2003).
The sample consisted of Twenty-three patients male and female aged 37–70 years, who
were recruited from day hospitals. The participants attended the day hospital and were classified
as depressed (their medication regimens remained the same during the study). Inclusion into the
study was legitimated by diagnosed mood disturbance or depression, either unipolar or bipolar.
The majority of patients were “Unipolar” (recurrent depressive disorder, F33 according to ICD
10) with a few years’ clinical history.
The Hamilton Depression Rating Scale (HDRS) was used for data collection. Symptoms
were rated at the beginning and end of this intervention (WBCT is the independent variable).
Changes in scores were analyzed in the group of patients for every item separately as well as for
the sum of all items for each patient. In addition to using the Hamilton Depression Rating Scale
(HDRS), researchers used the Shapiro–Wilk method, and the C-Pearson’s correlation ratio for
statistical analysis.
The results showed that for almost each individual HDRS item, the overall score for all
patients together was significantly lower after WBCT. Every patient was therefore considerably
relieved after WBCT. The conclusion stated, “It appears that WBCT helps in alleviating
depression symptoms. Should this be confirmed in the extended study we are currently
implementing, WBCT may become an auxiliary treatment in depression” (Rymaszewska et al.,
2003).
This study was unique due to the there not being any prior research studies on this topic.
The report was organized well and demonstrated that the researchers had significant expertise
and knowledge about mental health and WBC. It was clearly stated that the results of this study
were “merely encouraging” and was intended as a test experiment to justify the need for future
research on the topic. The report identified limitations and issues with this study stating that the
design of this study was “imperfect.” Issues included a small sample size, lack of a control
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group, unclear inclusion/exclusion criteria, lack of follow-up, and use of non-standardized
instruments. This study reinforced the need for more definite answers and a well-designed
project. Researchers identified areas of potential future research, and were able to identify areas
methods/instruments that would be more beneficial in future research. Therefore, I do not
consider this study a reliable or valid source for identifying WBCT benefits in the alleviation of
depressive symptoms. It is interesting to compare the differences between this study and the
design/changes that were implemented in the 2008 study conducted by a research team at
Wroclaw Medical University.
The most recent available study was published by the Psychology, Health & Medicine
Journal in 2014, with the objective of evaluating the impact of 10 Whole Body Cryotherapy
Treatment (WBCT) sessions on various parameters of the mental state of patients depending on
their age, gender, and diagnosed illness and whether their Quality Of Life improved after the
sessions. The sample included 55 subjects –43 women and 12 men aged from 20 to 70 years. All
participants underwent 10 WBCT sessions. The subjects completed a survey at two time points:
before the first WBCT treatment (T1) and after completing the tenth treatment (T2). For data
collection, researchers used The World Health Organization Quality of Life-Bref (WHOQOLBref) questionnaire and the Psychological General Well-Being Index (PGWBI). Both of these
instruments have construct validity, and the WHOQOL-Bref is one of the most well-known
quality of life assessment tools. The scores on the questionnaires were the dependent variables in
this study, with the expected outcome that after a series of WBCT treatments, the WHOQOLBref and PGWBI scores would significantly improve.
In analyzing the data, the scores showed significant improvement after the WBCT
treatments. WBCT proved to be more effective in enhancing the mood and well-being of the
patients than in improving their quality of life. WBCT has a significant influence on improving
the well-being and mood of patients (in terms of both psychological and somatic aspects) and
consequently leads to an improvement in their quality of life. The worse the mental state of the
patients is prior to the Cryotherapy, the stronger its effect. The observed effectiveness of
Cryotherapy was the strongest in women, participants with spinal pains, and in participants with
severe depressive symptoms (Szczepańska-Gieracha & Borsuk, 2014).
This particular study is unique due to its construct, design, and that it is the first of its
kind conducted. An interesting element of the study was that the participants had pre-existing
physical ailments related to musculoskeletal system. Due to the fact that Cryotherapy has been
proven effective in the relief of inflammation and pain associated with arthritic conditions,
participants of this study may have had an increased likelihood that they would have a stronger
response to the treatments due to the fact that they had a musculoskeletal system ailment. This
factor may have lead to the population validity being compromised, in addition to the
questionable validity of the overall conclusions drawn from the study. A control group would
have been beneficial in this study in order to compare the overall effectiveness of the treatment
on people without a physical ailment or an ailment unrelated to the musculoskeletal system.
Another issue is that the reported mood/quality of life improvement may have increased due to
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pain relief. Frequently, when somatic complaints are relieved, participants could subjectively
perceive this as an improvement in their mental condition. Some other disadvantages to the study
include the female to male ratio being disproportionate (thus influencing the said conclusion that
observed effectiveness of Cryotherapy was the strongest in women), small sample size, and that
results may have been different if the participants received more than 10 treatments.
Discussion
Limitations Of These Studies
The main limitation of the reviewed studies in this paper was the non-existence of prior
research and empirical data available on this research topic. Additionally, due to the infancy of
WBC in the United States, there is a lack of financial funding to allow for researchers to
carefully design their research methods to ensure the accuracy, quality, and integrity of the data.
Design Limitations. In the reviewed studies there were no controls in place for potential
confounding variables, and their potential impact was not fully identified or recognized. This
research topic has a multitude of intricate confounding variables that need to be fully understood
in order to prevent the possibility of inaccurate findings. Researchers should utilize
randomization, in addition to pre-testing and post-testing of both an experimental group and a
control group. Additionally, both qualitative and quantitative data should be used in for data
collection and analysis for this research topic.
Time Limitations. The studies reviewed were limited to 10 visits except for the study
conducted by Rymaszewska et al.( 2008), that used 15 visits. In order to get more accurate
results regarding the benefits of the WBCT, longer and more frequent treatments may beneficial
in future studies. In regard to the frequency of treatments, Biomedical Researcher, Giovanni
Lombardi, recommends "Completion of 15 consecutive sessions over one to three weeks are the
best as the long-term purported effects, such as better sleep and pain relief, from that many
treatments could last up to six months” (Orwig, 2015).
Sample Limitations. Each study expressed that acquiring participants was problematic.
Also it is questionable if the subjects of each study were truly representative of the population at
large. All of the reviewed studies had samples that were relatively small, with limited
information regarding other factors about the participants such as lifestyle attributes (diet, social
supports, level of activity/exercise) which could have a direct affect on the effectiveness of the
treatment.
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Conclusions and Future Study
The results of the reviewed studies indicate promising results about the potential benefits
of WBCT on overall improvement of the Quality of Life and alleviation of mental disturbances
such as anxiety and depression. However the results are not significantly strong enough to
indicate an actual causal relationship between the variables. In order to gain a complete
understanding of WBC’s true benefits on the mental health and quality of life, researchers need
to include and understand the role of varied systems within the human anatomy/physiology that
directly influence behavioral responses and emotions. Without fully understanding the
interaction of these systems, the validity of the research results can be compromised. Additional
factors to consider are WBCT physiological mechanisms associated with the HPA axis in
relation to elevated mood levels. There is a possibility that WBCT only improves several
symptoms associated with depressive or anxiety disorders, in addition to hypotheses regarding
the potential that WBC provides pain relief and regulation of biological rhythms. These theories
will be explored and confirmed in further studies. According to Rymaszewska et al. (2008),
“Further studies are being planned involving such methods as neuro-imaging and biochemical
measures with the aim of clarifying the effect of WBCT on mental health” (p. 67).
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Target Market
Market Size & Segments
Demographics of Palm Beach County
Palm Beach County is one of Florida’s wealthiest counties, with affluent towns such as Palm
Beach, Jupiter Island, Manalapan, Juno Beach and Boca Raton dotting the coast. Add to that
Wellington, an international equestrian destination, and Palm Beach Gardens, a golf haven. The
result: A large population with impressive household incomes. Additionally, Palm Beach County
has consistently attracted the strongest in-migration in Florida and has been one of the fastest
growing metros in the country, which will also aid in attracting the millennial market.
Spending Trends
Tax revenue is highest from the county’s busiest tourism months, which are February and March.
62.4% of spending occurs during the season, which is Nov-April, and 37.6% occurs in nonseasonal months.
Attributes of the Market
Drive Market
The majority of the drive market comes from within Florida and from Atlanta, Alabama,
Charlotte, Raleigh/Durham, Baltimore, Dallas, and Houston.
Bus Market
The tour bus market comes from the country’s Northeast Corridor, both during peak and offpeak seasons.
Fly Market
The award-winning Palm Beach International Airport serves approximately six million
passengers annually, with an average of 200 daily scheduled, non-stop flights from 25 cities,
providing easy access both nationally and internationally.
Residential Market
Serene Life benefits from strong demographics of Palm Beach County. Nearly 1.5 million people
make Palm Beach County their permanent home and the seasonal influx of approximately
150,000 seasonal and second-home owners dramatically increases this base population for nearly
six months of the year. The average household income within 25 miles of City Place is $80,140.
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National and International Tourism Destination
Tourism is a tremendous economic driver for Florida, and the first quarter of 2013 marked the
biggest quarter for visitation in the history of Florida tourism. Approximately 26 million visitors
came to the Sunshine State in the first three months of 2013 (Florida Department of State
Division of Corporations, 2016). In 2014 it was reported that tourism has $6.8 billion a year
economic impact on Palm Beach County (Discover The Palm Beaches, 2015).
Palm Beach County Tourism Statistics
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Six million visitors annually
More than 16,000 hotel rooms in Palm Beach County
Leisure travelers spend, on average, 3.5 nights and $1,400 per stay.
Average visitor’s income is $94,000/year
Prime tourism season is November-April
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Our primary target markets are Baby Boomers/Snow Birds, and Chronic Pain Sufferers. Under
this segmentation there are sub-segments that specifically target individuals with specific
behavioral and psychographic criterion. The sub-segments are opioid/prescription pain
medication users, Veterans, people with health conditions such as diabetes, obesity, depression,
anxiety, insomnia, and stress.
Secondary target markets are sports enthusiasts, people engaged in physical fitness, and people
who are interested in anti-aging and weight loss treatments.
Baby Boomers
Huge national increases in the number of people in their 50s, 60s, and 70s over the next several
decades will lead to substantial increases in the number of older persons moving to Florida.
There will be large increases in Florida’s older population between 2010 and 2050, with a
projected increase of 21.7% by 2020, 25.7% by 2030, and 26.6% by 2050 (Smith Ph.D, 2015).
These increasing numbers, will have a substantial impact on demands for healthcare, housing,
transportation, and many other types of goods and services, therefore creating huge opportunity
within this segment.
Baby Boomers have huge purchasing power. According to a recent article in the Business Insider
“Baby Boomers, who are aged 51 to 69, are the "biggest spenders" because they have extra cash
from decades of saving and investing” (Lutz, 2015). Baby boomers also have a higher
discretionary spend, and as per the US Bureau of labor statistics they're also the only consumer
segment that has made gains in real income since the 1970s (“Consumer Expenditure SurveyBureau of Labor Statistics,” 2015).
In terms of race and ethnic composition, Non-Hispanic whites make up 72% of Baby Boomers.
In terms of spending habits, a 2012 study by the National Center for Policy Analysis found that
health care costs are draining finances of boomers: 55 to 64 year olds are paying 21% more, and
45 to 54 year olds are paying 30% more for out-of-pocket costs and insurance premiums than
people their same age 20 years earlier (Touryali, 2012). It is integral to market to baby boomers
by highlighting the value of a purchase, which gives them a reason to buy. According to a Fona
International report “Seventy-seven percent of boomers will purchase something based on its
value” (Palm, 2015). Additionally, baby boomers and people aged 65+ tend to be price conscious
thus Serene Life will offer attractive discounts and promotions for this segmentation.
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Veterans
Pain management is a significant public health issue for military and Veteran populations.
Chronic pain is particularly common among active-duty military personnel and Veterans. A
survey of post deployment soldiers who were not seeking treatment found a 44-percent
prevalence of chronic pain in this group, as compared to 26 percent in the general civilian
population. The use of opioids, was also higher in the military group than in the civilians: 15
percent versus 4 percent (NACCIH, 2015).
These statistics have lead to the Department of Defense (DoD) and the Veterans Associations’
(VA) partnership with the National Advisory Council on Complementary and Integrative Health
(NACCIH) for the development of a large-scale initiative to examine the effectiveness of
complementary health approaches, particularly mind and body practices, in military and
Veterans’ health care settings. The goal is to reduce overuse of and dependency on opioids, by
exploring nonpharmacologic modalities (Pain Management Task Force, 2010).
Pain Sufferers
Data from the 2012 National Health Interview Survey found associations between pain severity
and race, ethnicity, language preference, gender, and age. Women, older individuals, and nonHispanics were more likely to report any pain (National Institution of Health, 2012). Further
analysis of the study revealed that 21% of Americans had been told that they had some form of
arthritis, rheumatoid arthritis, gout, lupus, or fibromyalgia (Dl, Jw, & Tc, 2014).
Opioid Drug Users and Abusers
Prescription drug abuse is increasing. A 2011 analysis by the Centers for Disease Control and
Prevention found that opioid analgesic (pain reliever) sales increased nearly four-fold between
1999 and 2010; this was paralleled by an almost four-fold increase in opioid (narcotic pain
medication) overdose deaths and substance abuse treatment admissions almost six times the rate
during the same time period (Center for Disease Control, 2011). The risk of opioid abuse and
dependence increases for those who are receiving controlled substances for the treatment of
chronic pain. Opioid dependence in chronic pain patients is often associated with poor outcomes,
including occupational difficulties, disciplinary problems, social problems, disability, and death.
The overall quality of treatment of pain is unacceptable for patients with acute and persistent
pain. Abuse of prescription drugs is now the second leading cause of accidental death
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(SAMSHA, 2008). Death caused by prescription pain drugs is higher than deaths caused by
cocaine, heroin, and methamphetamine combined and health care costs are eight times higher for
opioid abusers than non-abusers (SAMSHA, 2008). The Centers for Disease Control and
Prevention has classified prescription drug abuse as an epidemic. The statistics are staggering: In
2010, there were 8.76 million prescription medicine abusers in the United States, according to
the National Institute on Drug Abuse. And the next year, 52 million people ages 12 and older had
used prescription drugs non-medically at least once in their lives (Corriston, 2015). Prescription
pain killer sales in Florida are three times higher than the state with the lowest rate of sales
(CDC, 2008). Based on the statistics we believe that our location will attract people that want to
find alternatives to pain management.
Opportunity
The market for Whole Body Cryotherapy (WBC) has emerged in the United States. Today there
are daily articles regarding people cooling the body for faster recoveries and better health for
various ailments and conditions. The trends outlined below support the need for Cryotherapy
services in the United States.
Academy Health’s 2012 symposium “Transforming Health and Health Care: Focus on Florida”
provided insights into specific trends and innovations in Florida. All of the trends and
innovations call for change in health care, by way of collaborative; value based, and cost effect
alternatives to improve health care and health of people (Kemp & Gluck, 2012).The 2011
National Quality Strategy, which serves as an evolving blueprint for public and private entities
engaged in transforming health care, calls for substantial changes in the U.S. health care system
to promote three aims: Better Care, Healthy People/Healthy Communities, and Affordable Care
(see below) (U.S. Department of Health and Human Services, 2011). These trends support the
need and market opportunity for Serene Life’s business model and services. Andrew Weil,
Director of the Center for Integrative Medicine at the University of Arizona stated, “throughout
America doctors of integrative medicine are practicing in the prevention-oriented, more natural,
and cost-effective style that must become standard” (Tassone PhD, 2015).
Currently there are major trends that are driving the current market opportunity for this business
venture.
• Aging population leading to demand for acute and chronic disease management, and
supportive end of life care.
• Increase in opioid dependence.
• New interest in Wellness, Prevention, and the Health of Populations.
• Emerging health information technologies that facilitate the exchange of electronic
patient information among providers (electronic health records (EHRs).
• Increased focus on lack of integration and coordination of care provided in different
settings.
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• Increased demand for complementary health approaches and innovative medical
treatments.
The following is taken from National Center for Complementary and Alternative Medicine’s
Third Strategic Plan (2011):
“The public’s interest in at least some of these approaches is growing. For example, NHIS data
show a significant increase between 2002 and 2007 in the use of mind and body approaches such
as controlled breathing practices, meditation, massage therapy, and yoga. There is also great
interest across many health care disciplines regarding the potential application of some mind and
body approaches to a variety of challenging health problems and to health promotion. In large
part this interest is based on emerging evidence from research carried out over the past decade.
For example, a large body of clinical research evidence now suggests that practices such as
meditation and yoga can enhance quality of life, reduce psychological stress, and improve some
mental health outcomes. At the same time, a growing body of basic research evidence suggests
that mindfulness and other meditation practices engage neurobiological mechanisms known to be
involved in cognition, emotion regulation, and behavior. In addition, mainstream clinical practice
guidelines include evidence-based recommendations that spinal manipulation, acupuncture, and
massage be considered for some patients with chronic back pain.”
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SWOT ANALYSIS
Strengths
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Value based innovative services
Unparalleled customer experience model
Skilled, knowledgeable, and trust worthy employees
State of the art technology
Ability to provide solutions to customers
Pricing/Services that can reduce current health care costs
Availability and Adoption of Treatments is easy
Weaknesses
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Lack of established reputation
Skepticism or fear of the treatment
Limited evidence based research to support effectiveness of services
Limited financial resources
Opportunities
• Changing perspectives on health and health care that welcome alternative treatments and
recognize the need for integrative health services.
• Aging population.
• Health practices can always be improved upon (Can always build upon existing treatment
and health promotion strategies) providing opportunity to develop better strategies for
alleviating symptoms (e.g., chronic pain, stress).
• Grant potential due to the need for evidence based research to support effectiveness of
CAM practices and Cryotherapy.
• Strong interest by the population to use non-traditional forms of medical treatment
Threats
• Occurrence of accidental injury or adverse effect of treatment
• Research that proves service/s ineffective
• Decreased demand due to effectiveness thus reducing frequency of or the need for the
service
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• Emergence of a new competitor
• More sophisticated, attractive or cheaper versions of your product or service
• Health care legislation
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Execution
Marketing & Sales
Marketing Strategy
Based on our environmental scanning and SWOT analysis, Serene Life believed that there is a
strong market need for the business, which will be supported by our positioning and sales plan.
We will be positioned as the premier integrated health spas in Palm Beach County. Our prices,
and products will support our positioning and attract clientele.
We will continually shape our strategies based on the need of our segments. This will be
matched with a strategy/ marketing activities aimed at drawing attention to the high quality of
our services.
Communication Objectives:
Objective 1: Brand Awareness: Create brand equity using promotions and community
involvement/saturation.
Goal1: Develop relationships and build trust with local business owners, companies, restaurants,
community members, etc. This will be our primary focus in our short-term marketing strategy,
and throughout the lifespan of Serene Life.
Goal 2: Establish consumer base/attract new consumers.
How? Extensive distribution, Repeat exposure to the brand logo, publicity/press junkets, direct
marketing, strong web presence, word of mouth, and business to business, reinforce exclusivity
of the brand. The Brand Ambassador will make every effort to have direct contact with potential
customers, by attending local events in our targeted geographic area and events at Universities
and Hospitals that may benefit from the services provided by Serene Life. As a result there will
be increased brand exposure, relationship building, while gaining invaluable feedback from the
market. All of these tactics will also contribute to building Brand Awareness.
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Objective 2: Build Customer Traffic: By repeat exposure to the brand
Goal 1: Attract new consumers including tourists by sparking curiosity.
How? Exclusive invite only pre-grand opening event and after party, Grand opening for all
consumers with celebrity appearances, giveaways, and entertainment, having repeat promotional
events, making Serene Life newsworthy, one of a kind customer service, and world class
innovations and partnerships. Additionally, the Brand Ambassador will research local events in
which we can display our services and/or provide help with the event while wearing Serene Life
Clothing with our Logo. We will also distribute goodie bags at certain events that will have
impact and align with our mission. Lastly, we will have window displays that will attract
passerby’s, and our signage will be enthralling.
Objective 3: Encourage Repeat Purchases: Clarity regarding product attributes and consistency
in advertising will drive repeat purchases.
Goal 1: Gain repeat customers and build loyalty
Goal 2: Increase member package sales
How? Serene Life will offer services of high quality and value that are not available elsewhere.
Our services will continue to be exclusive to Serene Life, resulting in consumers not being able
to achieve the same experiences at competitors. Providing one of a kind individualized customer
relationship experience, that is convenient and time efficient. The visit should be a relaxing,
satisfying experience, leaving the customer rejuvenated and hopeful. Ultimately, the Serene team
will end every customer visit with a positive uplifting notion about their experience, while
adding an incentive for the customer to return. The Serene team member must make one personal
gesture toward the client before they leave. Such as if the client states they want a Starbucks
Coffee, the Serene Team member will get the coffee for the customer. Or simply help a customer
to their car if they have difficulty walking, or simply just have a lot of shopping bags. The
experience will make the customer leave feeling special, and astonished by the small personal
gesture. By providing such a high level of personalization and care, the ending gesture has the
potential to erase something that may have been off putting.
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Inbound Marketing
Omni-Channel Marketing, delivering a more interactive, personalized brand experience that
reaches the consumer through all possible touch points or channels.
Strategies That Will Impact Purchasing Decisions:
• Story telling (content) and testimonials that highlight the value of services provided.
• Collaboration with top influencers in our industry will reinforce reliability and establish
trust. This includes hospitals, medical practices, and sober living facilities, local
businesses frequented by our target demographic.
Marketing Tactics
Initial Promotions
• Exclusive invite only Pre-Grand Opening for local businesses/business owners, nonprofits, and health organizations/providers.
• Giveaway: The Brand Ambassador will obtain email addresses by having clients
complete a short questionnaire for a chance to win a Serene Life gift package valued at
$500. At this time information regarding the grand opening to the public will be
provided.
• Grand Opening: The grand opening will occur on the third Saturday in January 2017.
There will be complimentary cryo-sessions, entertainment, giveaways, and a celebrity
appearance. There will be a detailed press release regarding the event in the Palm Beach
Post, in addition to paid print ads, digital advertisements, television, radio, and social
media. In the weeks leading up to the grand opening is when Serene Life is going to have
its most advertising spend.
• Holiday Promotions will run throughout the year.
• Health Promotions: For example for breast cancer awareness month (October) the spa
will change its décor to pink and give a portion of sales to National Breast Cancer
Foundation, Inc.
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Community-Based Marketing
Pros: Low cost, immediate tangible results obtained, invaluable market research about the needs
and behaviors of community members and customers, receive direct feedback from customers.
Result: Services/products tailored to customers’ needs, word-of-mouth promotion, free in-store
product trials and personal connections forged by active community involvement. Strong brand
reputation and customer loyalty. Knowledge of the market and community enables a company to
maintaining a competitive edge by leapfrogging the competition. The easiest way for a company
to add services or reinvent themselves is through community driven change. Ability to test
products/ideas in the community prior to company adoption.
Substantial guerilla marketing, brand ambassador penetration, and advertising spend will be in
Palm Beach Island, West Palm Beach, and Lake Worth.
Advertising
Serene Life will have an initial advertising budget of $32k. We believe that we can offset
advertising costs by heavy use of social media and establishing trust within the community, by
community involvement. This will then give the Brand Ambassador the opportunity to speak
with potential customers, resulting in sparking interest and curiosity within the community,
which will translate to development of Brand Awareness.
Digital
The Internet is a key source of information, with 8 in 10 Internet users (or two-thirds of U.S.
adults) looking online for health. This supports the need for our digital advertising efforts, and
the establishment of a strong web presence. We will ensure that that SEO is achieved for Serene
Life, in addition to an interactive multi-platform web experience creates leads for your business.
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Search Engine Optimization
More then ever, social media content is being indexed by Google, and the most marketers are
now using social to support SEO in addition to engaging with potential customers (Kozicki,
2016). We will use Google Adwords to optimize our digital presence. By using Adwords
campaigns, ad groups, and ads are set according to our daily ad budget. Serene Life can develop
a campaign that meets our business goals, and use ad groups to organize our ads. We then have
the ability to choose from different types of ads to attract the right customers, and then connect
our goals to the data by:
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Measuring return on investment (ROI)
Measuring traffic to your website
Measuring brand awareness
Measuring sales and conversions
Run reports on specific ad performance data
Review our performance data regularly
Email marketing
Serene Life will utilize an email-marketing platform for email marketing management. Email
marketing provides the highest rate or return on investment, and is a common, cost effective
tactic for small businesses. Serene Life will ensure all emails are personalized, and will include
information regarding upcoming events and promotions only. Excessive emailing is not a goal.
Content Marketing
We will create quality content and lots of it. Longer blogs and heavier page content will help our
website rank higher on Google searches, resulting in more traffic. Goal is create customized
user-engagement content through our website, blog and social media outlets. All of which will
have a publication strategy. Result: builds awareness, drives leads, click-throughs, and sales.
Social Media Marketing Strategy
Serene Life will highly utilize automated social media alerts, exponential sharing, and content
management. All sites will feature at least 1 new post daily through marketing automation tools.
Create separate social strategies for each platform, using different techniques, different messages
and different content to engage different types of prospects. We will have the ability to microsegment to our target market. Serene Life’s will use its social media pages to drive traffic back to
its website by summarizing and highlighting exclusive content that can only be viewed in
entirety on Serene Life’s website. We will use conversion tools in order to drive significant
numbers of new visitors to our website. We will be visible on Facebook, Twitter, Instagram, and
YouTube.
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Interactive Website
Serene Life’s website will not only serve as an information site regarding the company and
services, but also a support site will value packed material. We will have educational material,
resources and links to a wide variety of topics, offer the ability to sign up for upcoming monthly
webinars and/or events, watch a video, or download literature and infographic material. Serene
Life’s website will display high quality graphics, have a professional and uncluttered layout,
which will be easy to navigate. Conversion tools will be used in order to drive significant
numbers of new visitors to the website.
Blog
The blog will serve as a support system to our customers and act as a health and wellness tool.
To increase the impact of our content, conversations will be initiated daily to engage visitors and
encourage sharing of content to friends, family, and/or other digital platforms. The blog also
gives visitors the ability to connect directly with the company and management, and provides
cost free market research and information regarding market needs.
Tracking Campaign Success
All of our social sites and social campaigns will have targeted results. Which will be reviewed
bi-weekly to gauge whether your actual results meet, exceed, or fall short of the campaign goal.
Constant optimization such as changing content titles and CTA (call-to-action) buttons to
improve the conversion and click-through rates, optimizing landing pages to improve the
conversion rate and leads created.
Social Responsibility/Community Outreach:
Participation in charity events and work with local causes/non-profits will create a powerful
impact that forges emotional bonds and connectivity with segments that can sometimes feel
marginalized. Serene Life believes that social responsibility should be a priority of both small
and large businesses regardless of the guaranteed reward of strengthening brand reputation and
customer loyalty. Serene Life will sponsor 2 local events annually with respect to our mission,
values and target markets. The event will highlight a specific health condition that affects
American’s, with all proceeds being donated to the national community-based health
organization dedicated to the highlighted health condition. It is the goal to gain local press
coverage (and potentially national coverage) of the event to drive donations for the charity.
During the event, customers of Serene Life who have the highlighted health condition will share
their story, and experiences with complementary and alternative health services (such as those
provided at Serene Life). This will result in the empowerment of others with the condition. The
overall goal of the event is to drive awareness and education about the selected health condition
(for prevention and management), and increase funding for clinical research of the health
condition.
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Sales Plan
Serene Life’s sales and marketing strategies will work in alignment to convert inbound leads into
customers. Alignment is key to produce annual revenue growth. By using inbound marketing
lead nurturing through ToFu, MoFu and BoFu.
Our overall lead nurturing strategy will rely on creating the necessary content, and evaluation of
the leads you convert as they move down the sales funnel. This will ensure that our marketing
techniques are converting leads into customers.
Drivers Of Sales
Marketing > produces content on website and on social channels > Serene Life is found during
research phase
Sales > information about products, processes, industry, insight into customers > Serene Life
provides the customer content they need to make an informed decision
Integration of Marketing and Sales Technology
Serene Life will use technology that has a marketing and CRM platform all in one, making it
easy for Sales to have access to marketing intelligence on each prospect and for Marketing to
have access to information about leads once they are engaged in the sales process.
Additional benefits:
• Ability to capture data in both the marketing and sales funnel
• Increase of sales productivity with integrated tasks and notifications.
• Ability to promote business more effectively by adapting our sales initiatives according
to our client mix
Key opportunities to drive sales performance through marketing:
• Awareness of our customers - active management of multiple channels will drive sales
while effective paid traffic over time will drive free organic traffic
• View marketing as an investment to become top-of-mind and increase brand awareness
• Marketing automation, i.e. systems with which to follow the customers’ purchasing
behavior on-site and off-site search strategy
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Operations
Locations & Facilities
Serene Life will be centrally located in City Place in Downtown West Palm Beach (525
Okeechobee Blvd, West Palm Beach, FL 33401). The location is convenient, and is one of the
premier shopping and tourist destinations in Palm Beach County. There is a mix of over 80
national stores, specialty shops, restaurants and entertainment venues including a historic cultural
arts theater. Additionally, there is commercial office space and private residents. The
Mediterranean architecture at City Place provides an esthetically pleasing environment
incorporating natural elements such with water fountains and open-air plazas. The external
environment will compliment Serene Life’s interior décor and layout. As of City Place’s 10 year
anniversary data suggests that 92 percent awareness rate among residents who live within 25
miles of the property, with 7.5 million visitors annually (Sullivan, 2010).
Other benefits include:
• Attracts residents from the town of Palm Beach which has an average household income
of $218,134
• Within close proximity to I-95, that has an average daily traffic of 179,500
Key Metrics
Sales Objectives for Serene Life are:
•
•
•
•
Substantial sales revenue by end of second year.
Profit before tax by end of second year.
Have clientele return rate of 90% by end of first year.
Become a reputable business by end of first year.
Keys to Success are:
• Quality and skilled employees.
• Brand Building and Customer Loyalty: Will be achieved by providing value based
products and services that are not available within a 25 mile radius, providing a
customer-centric environment, and establishing trust within the community.
• Market penetration through marketing, advertising, and community relations.
• Easily accessible location.
Serene Life
Future Projects/Opportunities
• Once a customer base is established, Serene Life will have gained feedback from
customers as to what services should be discontinued and added. Services such as
Craniosacral Osteopathy, Guided Imagery, Manipulation, and IV vitamin treatments.
• Will apply for a grant from National Center for Complementary and Integrative Health
(NCCIH) Small Business Innovation Research (SBIR) and Small Business Technology
Transfer (STTR) Programs funding to develop and market products to support their
business enterprises to submit applications for additional innovative technologies.
• Explore conducting a long-term study on effectiveness of Cryotherapy as an alternative to
opioid painkillers. Need for evidence based research. Scientific opportunities for research
with the potential to contribute to better integrative approaches for care and treatment of
chronic pain.
• Partner with a University to generate unique opportunities for clinical, population health,
and health services research similar to the collaboration of The Villages Retirement
Community with the University of South Florida (“About The Villages Health,” 2016.)
• Partner with a cause such as the The Victoria Siegel Foundation. Victoria was a Floridian
native who overdosed on prescription drugs at the age of 18. The Siegel’s (Victoria’s
Parents) plan to place ads in major newspapers to reach out to bereaved parents like
themselves, and they're donating part of their own fortune to finance the endeavor. Mr.
Siegel also aims to provide schools with the resources to teach students about addiction
and counsel those already struggling. To raise awareness of the current issues with
substance abuse, and work to make a meaningful impact in drug prevention, substance
abuse counseling and related areas.
Serene Life
Serene Life
Pricing
Serene Life conducted market research of Cryotherapy centers across the nation, as well as a
comparative market analysis of spa pricing in West Palm Beach in order to develop our pricing
model.
Cryotherapy Single Sessions
• C1 Recovery Chamber Intro $45 per session
• C1 Recovery Chamber Return Customers $75 per session
• C1 Target Air Localized Treatment $45 first body part, each add'l part $20
• approx 3 minutes each body part
• Facial Rejuvenation $55
• approx 10 min session
• Hydro Massage Bed $40
• Vibration Plate Therapy $35
• Facial Rejuvenation $55
• approx 10 min session
Cryotherapy Packages
• 5-Pack
• C1 Recovery Chamber $300
• C1 Target Air localized treatment $200
• Facial Rejuvenation $225
• C1 Recovery Chamber $630
• C1 Target Air localized treatment $380
• Facial Rejuvenation $460
• C1 Recovery Chamber $900
• C1 Target Air localized treatment $700
• Facial Rejuvenation $650
• Pampered Package $90
• 1 chamber and 1 localized treatment per session
Serene Life
Cryotherapy Memberships
Each membership package includes 1 C1 Recovery Chamber session and 1 C1 Target Air
localized treatment session per day
• 4 Sessions Monthly
• $360/month
• Snowbird Pass (3 months Unlimited)
• $880
• Seasonal Pass (6 months)
• $1,400
• Annual Pass (12 months)
• $2,200
Acupuncture
• Initial visit $200 75 minutes
• Follow-up $120 45 minutes
Health and Wellness Program
• Initial visit: $200, 75 minutes
• Follow-up:$120,45 minutes
Packages
Acupuncture
• Package of 5 follow-ups:$480
• Package of 10 follow-ups:$920
Health and Wellness Program
• Package 3 follow-ups:$300
• Package of 7 Follow-ups:$680
Serene Life
*When a Health and Wellness Package of 5 Follow-ups is purchased, the customer will receive 1
single spa services on each of their follow up visits. The service selected will be decided with the
Health and Wellness Manager based on their personal goals, and health needs.
Serene Life
Serene Life
Company
Overview
Serene Life will be structured as a privately held Limited partnership with Siobhan Lowry
serving as CEO and 2 limited liability partners. Options such as LLC status to replace the
partnership business formation will be considered based on growth and the addition of spa
services that may increase risk and liability.
Organizational Structure
Serene Life will focus on striking the right balance between Customer Service and Technical
“Spa specific” knowledge. We want to lead and develop our staff, which will translate to
empowerment of both our staff and customer. As a company, we will invest in the education of
our staff investing in the education to improve their bottom line as well as to guide their
employees through credible training paths. Growing trend for spa managers to become more
specialized in spa therapies/health and wellness in addition to having an operations management
background (Uberoi, 2015).We will not fear our staff becoming our competition, as we will view
them as viable partners in the service industry.
Team
Management Team
• CEO: Siobhan Lowry has an extensive background in Social Work, having worked as a
Program Director of a rehabilitative mental health program in Westchester, NY. During
her work in the health care system, she developed health and wellness initiatives, and
successful innovative client centered approaches to increase overall daily functioning and
quality of life for individuals with severe mental illness, chronic health conditions, and
co-occurring disorders such as substance abuse. Ms. Lowry will pair her knowledge and
experience in human services with her business experience and education to ensure the
success and strength of Serene Life and all its business activities. Ms. Lowry will also
obtain certification as a Health and Wellness Manager. Having expertise and
understanding of will foster a teamwork approach, aid in recognizing opportunities within
the market that will drive innovation and growth. Ms. Lowry will manage all operational
needs and costs in relation to budget and revenue model. Responsible for payroll,
accounts, and accurate business accounting. Given Ms. Lowry’s business experience in
advertising and marketing, she will oversee all sales and marketing efforts while guiding
the Brand Ambassador.
Serene Life
• Health and Wellness Manager: Will either be a Florida Licensed Clinical Social Worker
(with a background in health and nutrition) or a Certified Health and Wellness Manager
will be responsible for the management of the Integrative Health Program which is
outlined in the Product and Services section of this business plan.
• Acupuncturist (1): The Acupuncturist will be responsible for scheduling his/her clients
based on demand and personal availability. Compensation will be in form of commission.
In Florida, an Acupuncturist must meet the requirements found in Section 457, F.S. and
Rule Chapter 64B1, F.A.C. for licensure (Florida Board of Acupuncture, 2015a). Also
must have National Certification Commission for Acupuncture and Oriental Medicine
(NCCAOM).
• Technicians (2): Responsible for assisting patrons with intake procedures, educating the
public on proper use of Cryotherapy equipment, providing Cryotherapy treatments to all
incoming visitors, and technical support to equipment.
• Receptionist/Appointment Scheduler (1 or 2 part-time)
• Brand Ambassador (College Student/Intern)- The Brand Ambassador will work directly
with the Sales and Marketing Manager, providing administrative support, basic marketing
functions such as email blasts, social media updates, and research news in health care and
complementary/alternative medicine which will be posted on Serene Life’s Website. The
primary function of the Brand Ambassador is to be the face of the company, establishing
community ties and fostering community relations, through building activities and market
penetration techniques. The Brand Ambassador will attend all local events (that support
Serene Life’s mission and brand image) to increase brand awareness and education
through community-centric marketing. Responsible for B2B relationships and customer
relationship management. Will research and identify sales opportunities, prospect, and
track sales.
• IT Support Specialist-Offsite, per diem.
Serene Life
Financial Plan
Financing
Sources of Funds
Serene Life will be structured as a Limited Liability Limited Partnership, L.L.L.P (also known as
a partnership with limited liability). Terms of the investment include 10% interest for a 3-year
period investment of $200k from 2 limited partners with 20% ownership interest (100k
individual investment), the general partner will invest $450k. Additionally, there will be equal
division of 10% of year-end net profits among the 3 partners for the first 2 years of operations.
When terms of the investment are reached, the partnership will dissolve at the end of year 3 with
the General Partner becoming the sole proprietor and changing the business structure to a
Limited Liability Corporation, LLC.
Use of Funds
Startup forecast includes expenses, assets, and recurring costs planned for the first three months
of operation. With $15,555k being allocated for payroll expenses related to training and prestart.
Serene Life
The bulk of start up costs are associated with purchase of Cryotherapy equipment, leasing
expenses, and marketing efforts.
Serene Life
Serene Life
Break Down of All Estimated Expenses
Rent
We estimated rent based on conducting a comparative market analysis of the rents for
commercial leases in the 33401 zip code. Upon speaking with Warren Dauber, City Place
Leasing Broker, the cost of space is $40.00 per square foot. It would be estimated that Serene
Life would need approximately 900-1200 square footage for operations based on viewing floor
plans. It is estimated that our annual rent would be $48,000. If we decided to rent luxury
commercial space in a location other that City Place but within the 33401 zip code the median
price of retail commercial properties is $20.44 per square foot (LoopNet, 2016). Demand for
space in City Place is considerably higher due to its attractiveness thus the leases prices are
higher than the median price for 33401 zip code.
Our lease would start in December 2016 to allow a month for construction and set up before our
official grand opening. We would need $14,400 Security Deposit that is representative of 10% of
3-year lease term. With 3 months rent paid upfront $4kX3. (Total 26,400) Broker fee 5% of 3
months rent $600.
Insurance
We will have General Liability Insurance. Due to Cryotherapy being a fairly new industry many
small business insurance companies are either providing quotes based on Spa, Salon, or MediSpa
industries. I received a total of eight quotes that ranged between $400 and $600 annually. Due to
the Cryotherapy being a unique service, I chose a higher package that also included Employment
Practices Liability coverage. Companies that I received quotes from were Insureon, MedPro
Group, State Farm, HixCox, Zurich, Mercury, CommercialInsurance.net, and Progressive. We
chose a $500 plan.
Fees, Registration, and Licenses
Limited Partnerships (also known as a partnership with limited liability) are more complex than
general partnerships. Limited partnerships allow partners to have limited liability as well as
limited input with management decisions. These limits depend on the extent of each partner’s
investment percentage. Limited partnerships are attractive to investors of short-term projects
(The U.S. Small Business Administration, 2016). In terms of taxes a “Limited Partnership
Income” IRS form 1065 will be filed by each partner. The general partner will earn active
income and pay income tax and self-employment tax. The two limited partners both reside in
Florida and are not from the general public; therefore they will not be subject to state or federal
securities law.
Serene Life
Registration:
Fictitious Name Fees
Registration of Fictitious Names
$ 50.00
Renewal of Fictitious Name Registration
$ 50.00
Certified Copy of Fictitious Name Registration
$ 30.00
Certificate of Status of Fictitious Name Registration
$ 10.00
Limited Liability Limited Partnership, L.L.L.P
Florida Limited Partnership Filing required Filing Fees: $1,000.00
General Partnership Fees
Partnership Registration Statement
$ 50.00
Statement of Partnership Authority
$ 25.00
Statement of Qualification FL or FOR LLP
$ 25.00
Serene Life
Limited Liability Partnership Annual Report
$ 25.00
Certified Copy
$ 52.50
Certificate of Status
$ 8.75
Total $186
The annual report is not a financial statement. The report is used to update or confirm the Florida
Department of State, Division of Corporations' records.
May 1st Due and it costs $500
Annual Report $411.25
Supplemental Fee
Total
$ 88.75
$500.00
Annual Report (Received after May 1) $900.00
Licenses
Upon speaking with the customer care center at the Florida Department of Business and
Professional Regulation we will not require a license.
Tax Receipt (Occupational Licenses)
The law requires any business in Palm Beach County selling merchandise or services to purchase
a Business Tax Receipt. This includes one-person companies and home-based businesses. In
addition to the Business Tax Receipt, businesses must also comply with any local license and
ordinance requirements.
No person shall engage in or manage any business, profession or occupation in the county
without first obtaining a local business tax receipt from the Tax Collector (Palm Beach County
Ordinance 17-17).
Serene Life
Compliance with Business Tax Receipt rules simply means a business is following the law. It is
not a stamp of merchandise or service quality. The cost for 1-10 employees is $33.00.
Interior Renovations
We based our cost on a conversation with a 2 local carpenters and also quotes obtained online for
renovations of a 1200 square foot space. We will require 3 separate rooms for our Cryotherapy
equipment, and one room for acupuncture. We will also have an office to coduct meetinfs and a
serpate office for client health and wellness intakes.
Furniture
We will need 2 Desks, 2 desk chairs, 3 client chairs, 3 Filing Cabinets, Reception Desk, and a
Receptionist Chair for business operations. In addition to a waiting area couch, love seat, 2 arm
chairs, and miscellaneous items.
Equipment
Upon research and discussion with sales representatives from KyroLife, LLC and US
Cryotherapy we decided that we would purchase Cryotherapy equipment that does not use liquid
nitrogen. Todd Kramer of US Cryotherapy explained the advantages of their equipment, which
include fixed costs and low electricity costs. We will purchase a single Cryotherapy chamber at
$72k, a Cryobed $10k, Vibration Plate $5k, and the localized treatment machine $8k.
Serene Life will purchase 2 Computers, 2 printers, 1 Laptop, 3 Ipads, 2 Cell Phones, 3 Office
Phones, and a small refrigerator.
Software
Seren Life will use ProSolutions Software for business operations. The software is described as
“software should meet the needs of the client, not require you to conform to the limitations of a
pre-loaded, generic solution. That is why we worked closely with top beauty businesses and
consultants to create Transcend, a personalized software solution for salons, spas and resorts.
From automated marketing, social and website analytics, plus unlimited reporting, it is the only
salon and spa software you will never outgrow! Features include: Online store, online booking,
online gift certificates, POS, inventory, client management, reporting, theft prevention, employee
scheduling, appointment reminders, marketing, social media monitoring, and more! Text
messaging and social media analytics are available for free to all clients who process credit cards
through Transcend.” The cost will be $69 monthly for 1-3 users and a $459 startup fee.
For our website we will use Themify for Wordpress $49 (one-time) + $4-$15/month for hosting.
Serene Life
Office Supplies
The average monthly cost of office supplies in the U.S. is $19, according to the financial website
Bundle (Kunz, 2016) Many monthly office supplies are small, desk-related items. Items such as
pens, pencils, markers, highlighters, notepads, paper clips, staples, notebooks and binders, paper,
ink etc.
Serene Life will be an ecofriendly office aimed at reducing the amount of paper used. We will
try to be as electronic as possible. Therefore we will have a limited amount of brochures printed.
We will email our service brochure, and/or direct our clients to our website. This will also drive
web traffic with the hopes that our clients will use our interactive features and visit our blog.
However, for clients who do not utilize the Internet frequently they will be provided with a
printed brochure.
Business Cards will be used and distributed to local businesses, customers, and business
affiliates. We will use Vistaprint for all of our printing services.
Utilities
Central Air and heat are included in rent. Electric, Cable, Internet, Phone Bundle costs we
conducted by contacting Florida Power and Electric and Verizon Vios.
Marketing
We calculated a first year marketing budget of $32k, not including our grand opening or website
development expenses. We calculated this number by using 4.5% of our first year-projected
revenue after tax and expenses.
We believe that having a higher investment in marketing and advertising in the early stages of
business operations will lead to more brand awareness, in addition to projecting an attractive
brand image and positive customer perceptions.
Serene Life
Gross Margin by Year
Cash Flow by Month
Serene Life
Cash Flow by Year
Forecast
Revenue Forecast Explained
The important elements of the Sales Forecast are shown in the projections below. Initial sales
forecasts indicate vigorous first year sales, almost doubling by the end of second year, then
leveling out somewhat by the end of third year.
The projected sales forecast is based on research and analysis of Annual Tourism reports, The
Hospitality Industry Highlights 2003-2007 Report, Florida Business Tax Receipt Collections in
Palm Beach County for years 2012-2015, and by the collection of information through informal
conversations with business owners and retail employees.
Due to tourism and the influx of snowbirds to West Palm Beach revenue projections are highest
from November-April. With February-March having the greatest potential for profit. The
remainder of the year was forecasted by using other influences on revenue generation for Palm
Beach County. Total retail sales from April-October are historically strong in West Palm Beach,
however many external actors influence sales trends in Florida. Due to the transient nature of
Florida, it is unrealistic to base all projections on historical retail data. Shifts in consumer
spending, an aging population and E-commerce are all impacting retailers and the retail
environment in West Palm Beach.
Initially, Serene Life will focus on Cryotherapy services and getting to know our customers.
Therefore, we decided that it would be a strategic move to launch our Health and Wellness
Program in June 2017. This will give management the opportunity to determine the viability and
Serene Life
demand for such services in the given market. Due to the limited cost of services provided,
Serene Life would also profit by solely providing Cryotherapy services.
Serene Life has projected $486,490k in just annual Cryotherapy sales.
Looking at Cyrotherapy sales, Serene Life would break even in three months with $44870k in
monthly revenue that would offset monthly costs of $8414k. It is a goal to break even, but any
negative cash flow is expected to catch up over the course of the first year, which is a reasonable
goal for our year.
In examining the Cryotherapy market, we found that KryoLife located in NYC sees 80 clients a
day, with most paying $90 for a three-minute session. A local Florida competitor stated that on
an average day there are 4-5 clients per hour paying $75 for a three-minute session. When
conducting our research in the Florida market during the off peak season, the average amount of
clients that received a three-minute session was 5 clients an hour.
In looking at our revenue forecast we will have a 70% profit margin for our first year, with low
costs associated with operations we have decided this is a very viable business venture.
Serene Life
Revenue Forecast
Serene Life
FY2017
FY2018
FY2019
Cryotherapy Single Session C1
Recovery Chamber Intro
$17,550
$27,900
$29,250
C1 Recovery Chamber Return
$27,150
$36,150
$39,750
$855
$1,080
$1,350
Facial Rejuvenation
$6,050
$6,600
$6,600
Hydro Massage Bed
$2,200
$2,400
$2,400
Vibration Plate Therapy
$1,155
$1,260
$1,260
5-Pack C1 Recovery Chamber
$33,000
$36,000
$36,000
5-Pack C1 Target Air localized
treatment
$11,000
$12,000
$12,000
5-Pack Facial Rejuvenation
$29,700
$32,400
$32,400
10-pack C1 Recovery Chamber
$34,650
$37,800
$37,800
10-Pack C1 Target Air
localized treatment
$12,540
$13,680
$13,680
10-Pack Facial Rejuvenation
$50,600
$55,200
$55,200
20- Pack C1 Recovery
Chamber
$29,700
$32,400
$32,400
20- Pack C1 Target Air
localized treatment
$23,100
$25,200
$25,200
20- Pack Facial Rejuvenation
$42,900
$46,800
$46,800
Pampered Package (1 chamber
and 1 localized treatment per
session)
$9,900
$10,800
$10,800
Cryoship 4 Sessions Monthly
$46,200
$50,400
$50,400
Crypship Snowbird Pass (3
months Unlimited)
$29,040
$31,680
$31,680
Cryoship Seasonal Pass (6
months)
$30,800
$33,600
$33,600
Revenue
C1 Target Air Localized
Treatment
Serene Life
Cryoship Annual Pass (12
months)
$48,400
$52,800
$52,800
Acupuncture Initial
$9,000
$15,800
$17,200
Acupuncture Follow-Up
$5,280
$8,520
$9,360
Acupuncture Package of 5
follow ups
$15,840
$17,280
$17,280
Acupuncture Package of 10
follow-ups
$40,480
$44,160
$44,160
Health and Wellness Program
Initial visit
$5,600
$15,800
$18,400
Health and Wellness Program
Follow-up
$1,200
$10,440
$10,800
Health and Wellness Program
3 follow-ups Package
$3,000
$7,200
$7,200
Health and Wellness Package
of 7 Follow-ups
$3,400
$8,160
$8,160
$570,290
$673,510
$683,930
Total Revenue
Direct Cost
Start Up Cost
$159,190
Total Direct Cost
$159,190
Key Assumptions
The key underlying assumptions of our financial plan shown in the following general
assumptions table are:
Serene Life
1. We assume access to equity capital and financing to support our financial plan.
2. We assume our financial progress based on realistic sales to minimum sales against
highest expenses.
3. We assume there will not be an economic crash that would greatly hinder our target
market's access to their personal care funds.
4. We assume pricing is stable unless there is legislation that will change how
complementary services are reimbursed through health insurance providers.
5. We assume that the industry does not have heavy regulations imposed.
6. We assume that there are no significant changes to international travel or travel
restrictions that will affect the US tourism industry (as a result of the 2016 Presidential
Election).
7. We assume that there are no climatic events that effect tourism rates to the target market.
Revenue by Month
Serene Life
Net Profit (or Loss) by Year
Expenses by Month
Serene Life
Statements
Projected Profit & Loss
FY2017
FY2018
FY2019
Revenue
$570,290
$673,510
$683,930
Direct Costs
$164,590
$9,480
$10,320
$207,813
$246,524
$251,445
Employee Related Expenses
$41,471
$49,205
$50,189
Marketing / Advertising
$5,500
$6,000
$6,000
$44,000
$48,000
$48,000
$6,050
$6,600
$6,600
$43,083
$47,000
$47,000
Office Supplies
$209
$228
$228
Cryo Supplies (Towels,
Gloves, and Socks)
$275
$300
$300
$1,100
$1,200
...
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