Hot Yoga. Rose Vlad. MNGT 137 IC Business Model Plan

Transcription

1 Hot Yoga Rose Vlad MNGT 137 IC Business Model Plan March 17, 2016

2 Section 2: Elev8 Hot Yoga 2000 South 314th Street Federal Way WA Phone (206) Website: Hours of Operation: Monday to Friday 6:00am to 9:00pm Saturday 8:00 am to 1:00pm Sunday 8:00 am to 6:00pm The yoga market has increased by 29 percent over the past several years. I am very passionate being a yoga teacher for my own yoga studio business called Elev 8 because I thrive every day to fulfill on what I love to do as a business owner to create visibility, earn a supplement income as a yogi-preneur. I have strong Marketing and Management qualifications over 10 years in the business industry and 2 years practicing yoga which gives me a great opportunity to open something new that I have passion for. I am a certified yoga instructor. Elev8 Hot Yoga Studio is in the heart of Federal Way s and it will provide a variety of hot or warm Yoga & Barre classes to the customers. This Yoga Wellness studio business will provide a clean yoga studio environment with healthy wellness options for families. Elev8 offers yoga classes throughout the year and monthly workshops. The yoga studio features well-trained, professional s instructors, progressive teaching methods, a non-competitive and encouraging atmosphere and beautiful light-filled spa facility with a lounge fireplace. Besides the training, the Yoga studio also has a boutique that will sell yoga clothing line and yoga products. 2

3 The studio will operate as a limited liability corporation. The company is owned by Angela Papini. She is registered with the national Yoga Alliance at the highest 500-hour level. The yoga studio will be a Limited Liability Company because this structure would be fine if the business is sued, the owners aren t held accountable and also tax efficiencies and operational flexibility of a partnership to have a spouse involved in the business. The yoga studio will provide Hatha Yoga because this is an ancient discipline that explores, develops, and integrates the body, mind, and spirit. Yoga systematically stretches and strengthens muscles throughout the body, increases circulation to internal organs and glands, quiets the nervous system, and improves concentration. Hatha Yoga is an ancient system of self-care brings good health, vitality, deep relaxation, and peace of mind for your body. Our goal is to have the Instructors encourage students to listen to their body, respect its wisdom, and to progress at their own pace with a deep relaxation after completion of the postures of each class. The intention of the instructors at the Yoga studio is to assist students in the development of physical, mental, and spiritual well-being: a truly priceless health advantage. Living our mission of daily yoga practice is a continuous evolution to want more every day. Core values of yoga are your guiding force to set standards to which we hold ourselves accountable. Our goal is to help your set the foundation for your future. The yoga studio core values is to work with amazing customers who really appreciate the creativity of learning yoga postures to make it an enjoyable place for their practice. We want to create a meaningful change in their lives for customers who want to feel the deeply healing benefits of yoga to completely transform their world. Personally factors for the yoga studio is to meet each student to allow me to teach them aspects of yoga that would be the most beneficial to 3

4 them by helping them achieve balance in all areas of their life. I love teaching yoga and I want to share the amazing benefits of yoga. I am in love with yoga. Not just for physical reasons or because it has changed my body in ways no exercise has ever done but yoga gives me an experience to focus, to breathe and give me my own energy. Yoga teaches me to be strong, to be confident, and to be independent inside of me. It teaches me to be patience and faith in myself and others. It has changed my life in so many ways and I want to share with my customers. Yoga, has a different experience every time on your mind and body. Section 3: Management and Operations The operations section is outline by daily operational requirements, facility requirements, management information systems and information technology requirements, and any improvements if needed. As a Yoga owner you have to get everything done in an 8-hour day at the studio, every day. This daily routines will help me focus on how to run an amazing yoga studio so I can be healthy, happy and #1 be very productive. The only way to do this is to be much disciplined. Everyday Spend time every day to follow up with clients and employees via in person, phone calls or s. Daily operations bookkeeping, invoicing, deposits and credit terms with quick books. Remain Active on Social Media to Connect with my yoga studio's followers to post. 4

5 Live by my mission statement and code of ethics Make sure my yoga teachers talk to students. How are you liking it so far? Communicating with my students in every way I can. Keep my yoga studio environment (interior and exterior) looking clean to keep inviting my yoga students to come back again. Refreshment table ready for students to serve water with a twist of lemons or hot tea. Mind Body running for classes and appointments for the students. Management information systems - inventory control, management of accounts, quality control and customer tracking. Weekly Monday: Management and running the company Prioritize time Payroll Run the business by using a 30-day cash-flow projection. Know my Numbers Focus on how to implement new strategies for growth that would increase the margins? Tuesday: Product Check inventory for yoga clothing and products both in store and online. Update my clearance products. 5

6 Wednesday: Marketing and communications, growth Target my audience because I know my studio is opening in the morning. Who else knows, and why should they care? Thursday: Developers and partnerships Friday: Company culture and recruiting. Teacher training and retreats are the biggest profit source for the studio. Saturday: is an admin day for reflections, feedback, strategy and getting ready for the new week. Sunday: I take the day off Monthly Seasonality of descriptions of hours of operation for the business Each month, reconcile the business accounting software for reconciliation process. Monthly Bills and Monthly Lease payment Run a profit and loss (P&L) statement. Maintenance checklist, issues, inventory, cleaning. Business reports accurately and tax reporting sent on time. Schedule with team members to ensure that both the studio and team members are set up for success. 6

7 3.2 Yoga Studio Personnel Plan Will start with a total of 6 yoga instructors and that include the owner and two Receptionist/clerk as well. All employees will be hired as an Independent yoga contractors so they do not receive an employee package and they must also provide a self-purchased insurance when teaching and they will not be reimbursed for mileage, gas or overtime. Plus hiring freelance yoga instructors will be simpler for the studio because we don t have to worry about social security, unemployment insurance or worker s compensation. During the sixth month of operations, one additional yoga instructor will be hired. Year 1 Year 2 Year 3 Director (self) 40,000 42,000 48,000 Instructors $25 per class/ 20 classes a week. $24,000 $30 per class/ 20 classes a week. $28,800 $35 per class/ 20 classes a week. $33,600 Staff $12 per hour 20 hrs. a week $11,520 $12.50 per hour 20 hrs. a week. $12,000 $13 per hour 20 hrs. a week. $12,480 7

8 Yoga instructor qualifications: Minimum of a 200 hour Yoga Alliance Certification Current state approved first aid certification and CPR for the Professional Rescuer certification. One or more years of related experience preferred. Ability to respond to safety and emergency situations. Working knowledge of preventative health and fitness programs and philosophy Yoga staff qualifications: Professional with outgoing attitude and a Team player. Customer service focus. Proficient with general office PC applications (MS Word, MS Excel, MS PowerPoint.) Current state approved first aid certification and CPR certification. One or more years of related experience preferred. Ability to respond to safety and emergency situations. Working knowledge of preventative health and fitness programs and philosophy 8

9 3.3 Professional Services That will be decided based on the requirement of feasibility of business. Business accounting QuickBooks software will be used for the success of the studio. 3.4 Regulations The yoga studio will only provide a service to the customers. Effective January 1, 2016, a new law (House Bill 1550 (Chapter 169, Laws of 2015) requires that all "athletic or fitness facilities" must collect and remit retail sales tax on their charges to customers. This new ruling is now being categorized for all yoga studios as "athletic or fitness facilities" now subject to being taxed Insurance/IRS Operating Budget will include annual yoga insurance. This protects the studio from claims regarding accidents and any other occurrences that may occur from dealing with the general public because if any accident or injury happen it may not be the yoga studio fault, if it occurred during a yoga class or in the studio it may still be singled out for a claim. IRS outlines for studio owners and independent yoga instructors is to understand the common rules that distinguish employees vs. independent contractors, for legal reasons. The IRS will take a look at many factors to classify a worker and to determine which parties may be held liable. Independent contractor and business owner can file the form 8919 form for uncollected 9

10 Social Security and Medicare tax on wages. As a business owner we must file a federal form of explaining and supporting evidence that would relive the studio of paying employment taxes and this is referred to as relief provision. or%20test.pdf Suppliers Products will be only rented for the yoga studio such as yoga equipment for the class. Equipment: Balancing balls, straps, blocks, mats, and towels. Section 4: Products, Services and Marketing 4.1. Target Market & Value Proposition Susan Morales is 42 years old and she was born in Chicago, Ill. She lived there until she was 19 and moved to Seattle, WA to attend UW University to become a teacher. She met the love of her life in her 2 nd year of college and his name is John Morales. They both have been married for 20 years in the area of north Tacoma and they have three children Ethan 7, Sabrina 13 and Jenny 14. Susan is a 3rd grade teacher at Tacoma school district and has a full plate as a part time preschool teacher, parent and wife. She takes the kids to school in the morning around 7:30am before she starts work at 8am. She gets off at 2pm to give her enough time to pick up the children at 3pm. She has all of them very active in sports activities at the Tacoma YMCA and gives the 10

11 children to do their activities for 45 minutes and then they all get home to do homework. Susan have time to check homework and cook dinner. Susan plans her meals and goes grocery shopping on every Sunday's so she can prepare her family meals for 45 minutes. She is a mom with a busy schedule so she plans everything ahead of time so she can attend to her hot yoga classes every night at 8pm at Simply Shy yoga studio in Tacoma area. This is her "me time". When she steps on her mat in a Hot Hatha class for 75 minutes she feels great. She felt like she just came out of a sauna and left all her stress behind her. It gave her the same feeling after a good run. That feeling kept bringing her back even with her busy mom schedule her body craved the sweat and intensity of that 105 degree room. She felt the body change on her body by doing Power Yoga classes. Her practice shifted from the physical to the energetic and realize what really mattered and what she should let go of. She loves her yoga because they provide a clean place, affordable monthly service and 8pm class that works for her schedule so she can make time for her family during the day. Michael Smith is 42 years old and he is a home stayed dad. He has been married with Paula Smith for 15 years and live in University Place. They have three children Mike 4, Susie 6 and Tom 10. Michael s wife is gone all day because she works for a Law firm in Seattle, WA. She arrives at 7pm and comes home very tired and barely has time to spend time with the children. She has no time to help Michael with dinner but she checks the children homework and reads a bedtime story to Mike and Susie. Paula does takes the kids to school at 8am before she heads to work and Michael picks up little Mike at noon because he attends to a half day preschool and he tries his best to attend the 9am yoga class near Tacoma. That s a 10 minute drive from his home. He 11

12 loves his yoga studio because they offer an affordable monthly yoga package that he can afford. He also has to pick up Susie and Tom around 3pm. Michael has all the children very active at the Lakewood YMCA in swimming classes. They all arrive home around 6pm so the children can start homework and he has 45 minutes to cook dinner before his Paula comes home from a long day from work and long Seattle traffic commute. Michael has a busy schedule and sleeps 5 to 6 hours. Michael has to take it easy because of his anxiety attacks and that's why yoga is excellent for him to center his mind and health. He can control his anxiety with a little yoga meditation and breathing to interrupt those ruminations and yoga is the perfect recipe for him. There is point where his life needs a shake-up. He needs to be push past the I can t and into the I will. So again, he attends to the 9am yoga classes at Simply Shy yoga studio near Tacoma so he can make time for his family during the day. Yoga studio business is valuable to the customers because we will talk during the poses to the students by asking Target local businesses and give them free vouchers to their employees for a free week of yoga sessions. The studio will focus by creating and promoting posters, flyers, banners and other marketing materials placed in high-traffic areas so your yoga studio is visible 24 hours a day with headlines saying Yoga Before Work, - Start Your Day the Right Way, using text for early-morning yoga around the center of the neighborhood shops. Hosting events to increase awareness of the yoga studio on all social media "Try Yoga Day" and offer sessions to all your customers to try it for free. This will help build the brand recognition and inspires trust and establishes credibility. 12

13 Also the main key is Word of Mouth by spreading yoga classes by our current students, friends, family and everyone. Posting regularly twice a week on our Facebook and Twitter accounts about our yoga classes and include a short yoga video of different length sequences to share with our audience with YouTube Competition Business Name: HOT YOGA INC Gateway Center Blvd S. Federal Way, WA Phone: (253) federalway@hotyogainc.com Business website: License Type: Washington State Business Entity Type: Sole Proprietor UBI # January of 2002 Linda Burch became the founder of a very special studio in Kirkland, Washington which still stands today. The compassion Linda has for her students is the motivating factor in transforming Hot Yoga Inc. from a special, intimate yoga studio, into one of the largest and most-loved yoga communities on the West Coast. She has seven yoga instructors for her Federal way location. She has five other locations in Washington. She has been in business for 14 years. Social media platforms are Facebook page, a LinkedIn business page from the owner Linda Burch, and Twitter page. 13

14 SERVICES o Get Fit Quick for $ Month Unlimited o Rejuvenation for $ Holiday Special! Buy 3 Months Unlimited get 1 Month FREE! o Annual Unlimited for $1, Holiday Special Ageless Buy 12 Months get 2 FREE! PRODUCTS o Luxury Mat $27.99 double the thickness & 3 inches longer o Regular Mat $24.99 multiple colors available. o Yogitoe Towel $64.00 High quality skidless towel. o Manduka Towel $42.00 Super absorbent & quick drying. Our Yoga studio has a diversity class in styles and an experienced certified teachers. The instructors are invested in ambiance/surrounding and quality of space the studio is a spa setting so you feel good. The studio has 2 rooms with an added barre and to expand in the future. Heat system, not excessive infrared as our competitor. We sell amazing Hydro Flask water bottles that will never leave a puddle on the floor or sweat in your bag when you fill it up ice. What makes the studio stand out from our competitions is the spa atmosphere with fireplace lounge, full facilities showers, and iced towels keep you relaxed but, during your class it s all about results and focusing on what is important to our student. The main benefits is that we love the opportunity we have to build relationships with our students. Competitive advantage is our studio is second to none, using the best products and infrared heat. 14

15 Business Name: Three Trees Yoga, LLC 204 South 348 th St. Federal Way, WA Phone: (253) Business website: License Type: Washington State Business Entity Type: Limited Liability Company UBI # Three Trees Yoga & Healing Arts Center was founded in June 2005 by Karen Schwisow, Jeni Martinez and Suzy Green-Cindrich three friends who trained at Pacific Yoga Teacher Training and wanted to bring a premiere yoga studio experience to Federal Way, WA. SERVICES o Six weeks Unlimited for $99.00 o Single drop-in class - $16 o 5 class pass (valid for 3 month ) - $66 o 10 class pass (valid for 6 months) - $121 PRODUCTS RYT 200 Hour yoga teacher training course fee for $

16 Business Name: Longevita Pilates & Yoga studio 201 Auburn Way N., Ste. A; Auburn, WA Phone: Business website: License Type: Washington State Business Entity Type: Limited Liability Company UBI # Shelia Cowart is the Owner/Director/Instructor at Longevita Pilates Studio. At Longevita Pilates & Yoga Studio mission is to bring positive change to each individual through Pilates, Yoga, and other fitness regimes despite their current physical abilities or age. The focus is balance of mind and body allows the clients to improve their lifestyles and achieve their goals, be it fitness or rehabilitation with life changing results. SERVICES o Hot yoga 2 weeks unlimited- $20 o Croup Reformer 20 days unlimited - $60 o Barre/Yoga 4 classes - $40 PRODUCTS They offer group classes and private instruction for Pilates, Yoga, Hot Yoga, Barre, and more. They also specialized programs such as: Special populations such as Prenatal and postnatal, MS, active aging. Adults and children with developmental disabilities. Post rehab, recovering from injuries, lower back issues 16

17 4.3 Products/Services Yoga 1/Beginner is an introductory class for students who are new to Yoga to help them with their basic alignment of the standing poses and to focus on poses to stretch and strengthen the legs, back, and shoulders. Fundamentals of Vinyasa Yoga will prepare students for a vigorous flow style of Vinyasa that synchronizes breath with movement to offer balance of strength, flexibility, and endurance to challenge. Yoga 2/Intermediate focus on refining the standing poses and learning the basic sitting postures, very simple back bending poses, and the shoulder stand using the Anusara yoga principles of alignment. Yoga 3/Advanced introduces the full arm balance (handstand), headstand, forearm balance and back bend poses. Additional Services that will be offer are advanced yoga courses for different yoga postures and Seminars & Workshops for companies or retreats I strongly believe is to have a great strategic plan to use the right tools to plan and grow for the future of my yoga business to be successful by having these strategic plans in place such as a strong team in the workplace, SWOT analysis of my market, know my competitors and network with them and know you are my customers around my business area. 17

18 How will you get customers to come back and do business with you again and again? Providing punch card visits with an incentive or a free drawing for customers to come back. Creating customer loyalty. Build a strong relationship with the customer and providing outstanding customer service beyond customer expectations. Update on all my social media skills by posting twice a week about yoga classes and videos demos. Make it reasonable about a current sale, monthly price or upcoming new product line to make my customers not feel pressured. Keep my word by honoring my new and existing yoga students a free vouchers for a free week of yoga sessions or punch card visits. Refund policy will be on the contract if the customer is unhappy less than one week of class. How will you get your products to your customers? The yoga product line for the yoga studio will be posted on social media about new products when they arrive at the studio! They will be sold directly to the customer. We would want the yoga student to stop by the studio as soon as possible so they can get first dibs on trying the product for their yoga class. Customers can purchase multiple offers of services online at the website but only one can be purchased of each type such as buy (1) one month unlimited yoga but you can also buy (1) one month unlimited for barre. The studio will have several offers every months for customer to return. 18

19 Customers can contact the studio by calling the studio or they can fill out the form contact us online and enter their subject for customer questions, complaints, refunds requests, donations, other concerns and the studio will reply less than 24 hours by phone or . The studio will rent all yoga products for customers to test the yoga mats and other equipment that the studio offers. They will also be display on the shelf for the customers to look and touch the product. Promotion/Advertising /Social Media The studio will focus by creating and promoting posters, flyers, banners and other marketing materials placed in high-traffic areas so your yoga studio is visible 24 hours a day with headlines saying Yoga Before Work, - Start Your Day the Right Way, using text for early-morning yoga around the center of the neighborhood shops. Hosting events to increase awareness of the yoga studio on all social media "Try Yoga Day" and offer sessions to all your customers to try it for free. 19

20 This will help build the brand recognition and inspires trust and establishes credibility. Also the main key is Word of Mouth by spreading yoga classes by our current students, friends, family and everyone. Posting regularly twice a week on our Facebook and Twitter accounts about our yoga classes and include a short yoga video of different length sequences to share with our audience with YouTube. The website and blog costs will be no cost for sites because we will use free domain websites such as workpress.com. It is critical for the yoga studio to be successful and profits to write a marketing calendar. It is good to do this starting no later than October of the previous year you are planning. Word out to customers and branding the business Monthly Newsletter complete by the 25th of each month / Send 30th to the 2nd Student of the Month Make a picture wall frame In the News Google News and Auto-Pay Link Networking events and attend conferences Volunteering in the community You Tube videos of the studio and classes Telling people what I do Inviting friends and family to visit to try your services for free or a discount promotion 20

21 Creating a newsletter and building a subscriber list Creating and passing out flyers, putting up posters Advertising mediums ads on newspapers and local magazine Facebook and Instagram Monthly Sign up Promotion Use Facebook Ads to promote yoga classes, updates and products Post daily and weekly comments and or thoughts Website and Blog Change/add Home page updates with different cover pictures to the monthly calendar Video testimonials and updates on Teacher Bios Add local media / TV, Radio, Print Monthly Press Releases links Add events for retreats, new teachers, and workshop Guest blogging on different yoga websites to link our website and blog The studio will use internet and newspapers for medium of advertisement. In addition we will print 1,000 brochures and business cards to promote the studio 21

22 Print advertising company through Vista Print Brochures for 1000 at $265 and Business cards for 1000 at $64 and first 100 free plus to print 20 11x17 Posters $3.75 each and Flyers to post around the community. 22

23 The business cards will be simple with the company name, my name, , cell, website and my title as owner and yoga instructor. Handing out business card to potential client and I ll ask for their contact information so we can reconnect. marketing is a great way to reach to my current customers. I will combined with a website, social media and print so allows me to communicate our yoga studio message to more people. It will provide the customers to sign up on the website to enter their for monthly newsletter Pricing 1 Year Unlimited Membership Auto-Pay with Contract $ (69 per month) 6 Mos. Unlimited Membership Auto-Pay with Contract $ (79 per month) 3 Mos Unlimited Membership Auto-Pay with Contract $ (89 per month) *Contracts can be paid monthly or in one lump sum Month Unlimited Auto Pay (No Contract) Month Unlimited (No Auto Enroll, No Contract) $ per month $ per month 5 Class Pass $70.00 (14 per class) 10 Class Pass $ (12 per class) 20 Class Pass $ (10.5 per class) Drop In Rate $16.00 Drop In Rate (teachers, students, military, seniors) $12.00 New Students First class free for new students First ten days unlimited classes for $10 23

24 4.5. Placement Yoga studio is located in a commercial facility section of the heart of Federal Way City called Hillside Plaza Shopping center in Federal Way. Conveniently located blocks away from I-5, Highway 99, Federal Way Transit Center and The Commons mall. Great tenant mix: 24 Hour Fitness, Gene Juarez, Cortiva Institute, CSL Plasma, AAA, Nail and Beauty Salons. NNN's do not include water/sewer, trash, or electric. 3% commission. The studio goal is to build a two large rooms for yoga students from office workers that are employed around the area. 24

25 Section 6: Legal, Taxes, Contracts Manning & Associates LLC 2602 N Proctor St #201 Tacoma, WA Phone Website: Accountants and bookkeepers provides an update on your books on a daily, weekly, monthly, or quarterly basis- whichever works best for you and other yoga studios recommended them. They provide a free 30 minute consultation. The charge hourly rates for bookkeeping and service fee is $20-$50 an hour. If you hired them on a contract basis for $30-$40 an hour, but there can be a minimum monthly charge of $100-$150 for small businesses that don't require a lot of work hours plus $80 in monthly fees for a payroll service to issue paychecks and file payroll tax forms. 25

26 Jeff Baker & Associates, PS, Pacific Ave Suite 202 Tacoma WA Ph: Website: Provides help for your business is in need of accounting services, and fill all your certified public accounting needs. Also quarterly reporting for Labor & Industry and employment security filling. The have certified QuickBooks training to assist you with any questions that you may have for your business. Their CPAs can help my business in number of ways such as tax preparation, financial planning, or accounting system development. Their CPA usually runs at $30-$50 an hour. 26

27 Section 7: Business Model Plan Appendices Appendix A: One-Page-Pitch Appendix B: Resume Appendix C: Cash Flow Projection and P&L statement Appendix D: Yoga Studio agreement Appendix E: Screen shots of the Yoga Studio 27

28 Elev8 Hot Yoga 2000 S 314th St, Federal Way, WA