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 Serene Life 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. Serene Life 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). Serene Life 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. Serene Life 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. Serene Life 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). Serene Life 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. Serene Life 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.” Serene Life 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: • • • • • 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: • • • • 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: • • • • • Soft Tissue Stimulation Lymphatic System Activation Joint Stress Relief Enhanced Circulation Accelerates Recoveries Serene Life 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. Serene Life 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. Serene Life 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) Serene Life 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). Serene Life 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). Serene Life 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 Serene Life 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 Serene Life 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 Serene Life 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. Serene Life 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). Serene Life 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. Serene Life 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 • • • • • 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 Serene Life Serene Life Serene Life Serene Life Serene Life 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. Serene Life 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 Serene Life (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. Serene Life • 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.” Serene Life SWOT ANALYSIS Strengths • • • • • • • 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 • • • • 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 Serene Life • Emergence of a new competitor • More sophisticated, attractive or cheaper versions of your product or service • Health care legislation Serene Life 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. Serene Life 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. Serene Life 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. Serene Life 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. Serene Life 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: • • • • • • 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. Serene Life 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. Serene Life 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 Serene Life 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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