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Executive Summary


Executive Summary

After having analised the market study we have come the conclusion that the potential for profitable business in "Salt Lake" area is great as there are many customers especially tourists with average or high 13213b114n income who want something new when it comes to health relaxation. Noticing this fact we realized that building a SPA center providing a wide range of services would be a profitable business.

As soon as we found the idea we looked for a suitable place for the SPA Center, and went on establishing a business plan which would allow as to develop our activity in a dynamic manner and with low expenses.

It has been proved that the most wanted place for such an important idea is "Salt Lake" . It has been exploited even since the beginning of the century, the moment was discovered by the ruler Vlad Ţepes . The waters of the "Salt Lake" are rich in mineral salts which give them balneo-therapeutic properties. At present the lake attract many tourists because of its mud which it used to treat varied illnesses through efficient natural methods. As a consequence of the fact that the resort is not well organised, the services provided are of a low quality an the spaces around the lake are in a poor condition we have decided to make ourselves known through establishing a SPA complex in a building close to the lake which will be rented in the near future. Thus having the idea and the space we have conceived a business plan.

The initiation (starting point) and the development of such a business (daily SPA) requires an invest of 500.000 RON in the firs year, fallowed by some years to expand ourselves by means of diversifying the services and the building of a parking lot with 30 places.

The initial investment consist of renting a building in a "Salt Lake" resort area, its rearranging, acquiring the equipment and aparates needed to fulfil the services, the furniture and office equipments, the wages for the staff in the first 6 mouths and the advertising.

Regarding the acquisition of the equipment we will choose the financing as we will acquire them paying just a part of the money and the rest of it will be given at a certain dead line fixed with the supplier.

From our studies, we have forecast that the target group is formed mainly of people with health problems both tourists and local ones, but also people who feel the need to relax and rest. We have prepared appealing pecks of services for treatment not only for those with high income but also for those with low income.

Individual services of massage, sauna, geothermal massage are also provided for the customers who need relaxation.

Although most of the services are already on the local market, the Health Center company will come up with improvements assuring a higher quality foe the existing ones. We will also provided new services such as: musical therapy, cromotherapy, geothermal massage.

The prices for our services have been established after a detailed study of the costs, the request and the competition. We have also taken into account not only the pick periods but also the minimum ones.

We will pay great attention to promoting our services for the next six months. We have decided to make use of trade publicity and promoting the sales, allocating a consistent amount of money considering that this kind of services, although roidely existing in the "Salt Lake" resort are not known under the name of SPA.

The advertising will be made on the local television , local radios, in booklets, leaflets

and banners. We will also participate to fairs an exhibitions. We will initiate a company magazine and for the loyal customers we will create programmes to reward their loyalty.

As for as the competition is concerned there are three hotels in this resort which provide service for treatment an recovery. In order to join the market and expand , Health Center will innovate and diversify the already existing services so that customers should have more options. For similar services to those of our competitors we will firstly use price decreases convincing the customers of quality of our services. In the future we are going to reduce the costs so that we should obtain higher profits even if we will have lower prices for some services similar to our competitors.

In the first year our company will dispose of a qualified stuff at the minimum level and in the future this will increase its size - according to the existing market request for this kind of services.

In its first year of activity, the company should make a rough profit at 350.000 RON and for the next two years an increase of 10% per year.

A more detailed study of the things mentioned above may be found in the attached materials.

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