(Skip this post if you have no desire to hear my business plan)
Here’s the framework:
I’m splitting the day up into two shifts. First shift is 8:30 – 2PM. Seven days a week.
That’s 5.5 hours a day, 38.5 hours a week. 4 clients a day, 28 clients a week.
I’m planning to pay my employee’s a flat rate of $10 an hour. They’ll get $10 an hour for massaging discounted massages (Groupon, Living Social etc..), but they’ll get $17 an hour for full priced clients. But let’s just focus on the flat rate of $10 an hour for now. They get $10 an hour regardless.
I get paid $18.75 for each discounted massage I sell.
$18.75 X 4 clients a day = $75
$75 – $55 (the amount I pay employee) = $20
Okay, that’s pretty simple, right? Makes sense. I’ll be making a lousy $20 a day. But wait, it gets better!
4 clients a day X 7 days a week = 28 clients a week.
28 clients a week X 4 weeks = 112 clients a month
112 discounted massages with my cut of $18.75 per massage = $2,100 each month.
My employee works 38.5 hours a week making $385 a week.
$385 X 4 weeks = $1,540
$2,100 a month – $1,540 = $560 profit a month
Alight, so first shift I’ll be making a modest profit of $20 a day / $560 a month.
I have three rooms, so three employee’s. Times that $20 a day by 3 and I’ll be making $60 a day.
$60 a day for doing nothing.
$60 X 30 days a month = $1,800 profit a month
Minus $1,250 for rent, another $200 for utilities, $60 for phone and internet, $300 for laundry service (I’m guessing because I haven’t gotten a price for that yet), and I’m left with…
But that’s only first shift….I mean, right?
Second shift is six hours a day from 2PM – 8PM. Five clients a shift.
Blah blah, do the math, carry the one…
It’s a profit of $2,835 a month for second shift.
And this is with me being absent from the equation.
I’ll make $2,835 a month for doing nothing but selling mass quantities of Groupons (which always sell out).
So, how many massages does that total a month? Including first and second shifts?
First shift: 4 clients a day X 7 = 28 clients a week
28 clients X 4 weeks = 112 massages a month for first shift
Second shift: 5 clients a day X 7 = 35 clients a week
35 clients X 4 weeks = 140 massages a month
140 + 112 = 252 massages a month
Each month I’ll need to sell 84 Groupons, 84 Living Social Deals, and 84 Amazon Local deals.
This is my plan for the first 6 months. I should knock it down to 75 massages instead of 84 a month just so full-priced clients can get in, but I’ll worry about that in month 3.
As of now, I sell 40 Groupons a month at my single one-room office and they always sell out. Not only do they sell out, but they don’t get redeemed. People forget about them. And I’m left with ample room to fit people in when they want in.
So, all in all, I think this can work. No no, I don’t think, I KNOW it can work.
And remember, I’m nowhere in the equation.
Lets factor in full paying clients.
Lets say I sell 2 full-priced massages a week for $75.
$75 X 2 = $150
My employee’s make $17 an hour for full priced clients which leaves me with a profit of $116 a week.
$116 X 4 weeks = $464
And that’s just for selling 2 a week!
Other modes of marketing:
Birthday emails for half off.
Drive-by (I have a huge sign on a main road!)
My referral program: Each client will receive one (or as many as they like) referral coupon to give to a friend. It’s a $30 off coupon for first time clients. Before the client gives the coupon to their friend, they are to write their name and email on the back of it and once their friend redeems their massage, I’ll email the giver a $10 off coupon for their next massage.
I did all this math crap before diving into this venture. It feels sure-footed and safe – if it didn’t, I wouldn’t do it. I’m not that gutsy.
It’s actually such a great idea, that I hate posting it. I don’t want people to catch onto my schemes so they can copy it.
My next step is figuring out how many employee’s to employ. I want three people working at all times. I’m not going to know how many people to hire until I find out how much they want to work.
I have in my head an idea for a grid system drawn up on a big dry erase board (which is already equipped in my office and hidden from view), and each employee will have their own unique magnets that they can place on the grid to mark their territory. There are a total of 14 shifts a week. They can work as much or as little as they like, but it won’t change week to week. This will be a real job with fixed hours.
Each employee will have access to their schedule anytime, anywhere in the world (it’s online). If they have to miss a day, it’s in their hands to call their clients and cancel, and block off their shifts, or any shift they can’t make. They have full control and full responsibility at all times.
I want to run my ship like McDonalds. Simple and easy for everyone. If it’s simple and easy for everyone, I won’t need to be involved in the equation. That’s the whole point of me doing this.
And the best thing of all, what I’m paying my employee’s far surpasses any spa or clinic I’ve ever worked at. They are going to make bank!
The house always wins though. If a client comes in with a $10 off coupon, my employee will get stuck making $10, while I make $55. Until of course, I’ll enact raises after 6 months and then they’ll make $11 ($18 for full price).
Stealing would be impossible since I’ve been a cashier for many years and know how to balance a drawer. Everyday you start with the same amount, and every night you take home the difference. My books will be immaculate. Absolutely no loose ends.
McDonalds, think McDonalds. Only instead of fries, I’m selling fingers.
That sounds bad…
Anyway, it’s 4:30AM and I can’t sleep. It’s not because of my business plan, no. My business plan is just a deterrent – a time filler because I can’t sleep.
A really good friend of mine lost her Dad last night. Well, I guess it was technically two nights ago.
He was a man I’ve known since I was 14. A good man. A really really good, decent guy. Always smiling, chuckling, lending a hand to unclog the bathroom sink and what-not. I seen him practically once a week for 15 or 16 years. That’s more than what I saw of any of my blood relatives.
It happened after I wrote my last post – I had no idea he was even sick. The post had nothing to do with him.
I can’t believe it. You know what I mean? It’s like that. I can’t believe it.