Dear visitors, below is an example of a bath business plan with economic calculations. The document was compiled by economists with experience and can be used as an example to draw up your project plan for submitting it to government agencies for receiving subsidies (if there are no other structural requirements), to a bank for obtaining a loan or for an investor.

A calculation is presented to the document, which can also be used to calculate your project by changing only the data on revenue and investments. All calculations will change automatically.

Summary

The goal is to open from scratch a public bath "Oasis" in the city of Perm. The establishment will be intended both for family holidays on separate days, and for a separate pastime. The bath will be aimed at citizens with an average income. This class is the most active user of this type of service.

Depending on the days of the week, it will have its own program. The presence of two steam rooms: Russian and Turkish, will allow each client to choose the one they want, depending on their preferences. The presence of a small pool will provide even more relaxation. The children's area on the street will provide an opportunity to have a great rest not only for adults, but also for children.

Initiator of the project

The work on opening the bath will be carried out by a person who previously worked in this field, but previously did not have experience in opening his own company. After studying the business "from the inside", it becomes clear that this type of recreation is in great demand, and the absence of such establishments in the area in which it is planned to operate, excludes the presence of strong competition.

Investment costs

Investment costs will amount to 4,233 rubles. Investment costs include:

• Registration of LLC - 10 thousand rubles,
• Obtaining permits - 50 thousand rubles.
• Acquisition of a land plot and registration of it in ownership - 750 thousand rubles,
• Bathhouse construction - 1,000 thousand rubles,
• Repair and preparation for activities, including the purchase and commissioning of specialized firefighters and other equipment, the purchase, assembly and installation of furniture and interior items - 1,500 thousand rubles,
• Pool arrangement - 1,000 thousand rubles.

The bathhouse is located on a separate plot of land with access roads and has a separate entrance.

In addition to investment costs, an additional 901 thousand rubles will be invested before reaching break-even work,

Financing the project

The project will be financed partly from its own funds, and partly from the funds of the project initiator. The organizer of the project plans to invest 2 033.7 thousand from his own funds, of which 1 132.7 thousand rubles. will go for capital investments, and 901 thousand rubles. will go to keep the business running until it reaches payback. The remaining 3,100 thousand are taken on credit at 15% per annum, the apartment and the dacha of the entrepreneur will initially act as collateral for the loan, after the bath is put into operation, the premises and the land plot of the bath will serve as collateral, and the property of the initiator of the project will be withdrawn from the mortgage.

Payback period

The calculation is made for 10 years. Inflation is taken at 10%. After the calculation, the following performance indicators were obtained:

• The calculation period is 10 years.
• Inflation is 10%.
• The simple payback period is 4.33 years.
• The discounted payback period is 5.25 years.
• NPV - 4,018.35 thousand rubles.

Suppliers and contractors

Construction, repair work, decoration, communications will be carried out by the contractor, which will provide a discount due to the amount of work. A work schedule will be drawn up, taking into account production interruptions. Thanks to the work carried out by one contractor, all preparations for the opening will be completed as soon as possible.

Equipment and furniture for the bathhouse will be purchased from suppliers previously worked with by the organizer. They not only sell equipment, but also carry out its maintenance, and the furniture offered by these suppliers is made specifically for baths, which allows it to remain like new for a long time under rather difficult operating conditions.

Services

The main purpose of the institution is to relax in steam rooms: Russian and Turkish. An infrared cabin will be installed. This variety is due to the different tastes of customers: someone wants it hot, someone is interested in improving the body, someone wants to relax in a calm atmosphere. After the body warms up, there is an opportunity to cheer up and dive into a small cool pool, equipped with lighting.

The common seating area includes a large table and kitchenette, which allows you to bring your own food, prepare it and offer it to guests. There is also a plasma TV with satellite TV and karaoke equipment.

The presence of a children's area on the street will make recreation interesting for children.

Lovers of fresh air will love the barbecue, gazebos and swings in the local area.

The reception sells food and alcoholic beverages, but you can bring food with you to the restaurant. And although healthy relaxation is encouraged in the bathhouse, drinking alcoholic beverages is allowed, and alcohol is also on sale.

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Investment plan

Premises

A land plot was purchased for the construction of a room for a bathhouse. A draft of the bathhouse has been prepared, which you can see below:

The room consists of the following rooms:

• vestibule - 3.36 sq.m.
• corridor - 12.40 sq.m.
• kitchen-living room - 38.73 sq.m.
• recreation area - 10.46 sq.m.
• Russian steam room - 6.25 sq.m.
• Turkish steam room - 5.25 sq.m.
• washing area - 5.25 sq.m.
• bathroom - 5.04 sq.m.
• furnace room - 9.60 sq.m.
• bedroom - 20.76 sq.m.

Investment work plan

After the construction of the bathhouse itself, the following work will be carried out in it:

• device for electrical work, heating of water supply and discharge,
• finishing work - the room was insulated, the installation of windows, the installation of floors and walls, the installation of doors,
• installation of heating equipment from leading manufacturers,
• execution of works on the arrangement of the pool,
• arrangement of furniture and kitchen sets.

The work schedule is shown in the diagram below:

Thus, all preparatory work for the construction, decoration and commissioning of the bath is carried out in 12 months.

Investment size

The cost expression of expenses is presented in the table (thousand rubles):

The expenses will be paid both from the funds of the project initiator and from the credit funds.

Marketing plan

The bathhouse will be located in a residential area, so it was decided to take care of informing the population about it in advance. Before the start of the bath, an advertisement about the opening will be launched on the radio. For a constant reminder of yourself, Vkontakte and Odnoklassniki groups will be made, a website with interior and exterior photos, a description of the services, contacts and services will be made to describe the services. In addition, a sign will be hung by the end of the work.

In addition, in order to attract customers at the initial stage, it was decided to provide discounts to customers who visit the institution more than once, discounts are valid from the second visit. For this purpose, plastic cards of a regular customer have been made; the discount upon presentation is cumulative from 3 to 10 percent. There is no discount on the first visit, the card is only issued to the client. Then, with each visit, the discount grows by 1% for every thousand rubles. The discount card is personalized; upon receipt, a questionnaire is filled out.

Additionally, colored cardboard business cards with information about the institution were made. They are distributed to large offices, shops. They are also located at the reception of the bathhouse.

An analytical comparison was made with the main competitors in the segment:

The presence of a good repair, a swimming pool and a well-groomed adjacent territory will allow our bath to set high prices for visiting clients. The pricing policy at the initial stage will allow attracting additional customers, and the availability of services that are not provided in other establishments will also contribute to the growth of traffic. With the help of these techniques, the location not in the very center of the city will be blocked.

The presence of a children's area will make the bath more attractive for families. Distribution by day gives you the opportunity to relax in exactly the team you want.

There are a lot of similar establishments in Perm. Basically, these are saunas, which have several separate rooms and are intended for the recreation of companies, which makes it impossible for one or several people to visit the institutions, such a vacation will cost them very much. The price level in saunas and baths starts from 100 rubles per person for an hour's stay and rises to 400 rubles per person. Thus, our bathhouse has fairly affordable prices and is located closer to the lower limit of payment per person.

Production plan

The bathhouse will include the following premises:

1. 2 terraces - 11.18 and 6.68 sq.m.
2. vestibule - 3.36 sq.m.
3. corridor - 12.40 sq.m.
4. kitchen-living room - 38.73 sq.m.
5. recreation area - 10.46 sq.m.
6. Russian steam room - 6.25 sq.m.
7. Turkish steam room - 5.25 sq.m.
8. washing area - 5.25 sq.m.
9. pool room - 20.76 sq.m.
10. bathroom - 5.04 sq.m.
11. furnace room - 9.60 sq.m.
12. bedroom - 20.76 sq.m.

The cost of the visit depends on the day of the week and the time of the visit:

Due to the fact that the main flow of visitors falls on the days from Thursday to Sunday, higher prices are set on these days. The rest of the time, the set prices are much lower. The planned average price of visiting the establishment will be 1,200 rubles per hour. Proceeding from this figure, the proceeds were planned. The table below shows the planned occupancy of the premises by day of the week:

Prices are indicated for an hour spent in the bath. In addition, there is a system of discounts, which was mentioned above.

In addition to the variability of the business load by days of the week, there are quite serious seasonality factors in business, which are presented below:

So, we observe a surge in attendance in January and April-May, while a rather serious decline is observed in the summer months, when people leave for vacations and dachas.

At the reception, we sell related products, as well as food and drinks, including alcohol. The structure of proceeds from renting a bath and selling goods is as follows:

SWOT analysis

In order to adequately assess the opportunities in the field of activity, an analysis of the institution was carried out.

Strengths:

• Variety of services provided.
• Variety of couples.
• Acceptable prices.
• Orientation towards the middle class (the most numerous).
• A special additional area for children.

Weaknesses:

• The presence of competition.
• Large upfront costs.
• The presence of a credit load, which sharply reduces the possibilities for re-profiling a business in case of failure.

Opportunities:

• Increase in the number of clients.
• Opening an additional business after full loan repayment.

Difficulties:

• The appearance of such establishments in the area is possible.
• The bank may not provide credit funds.
• Great demands from customers due to the large number of offers in the segment.

Organizational plan

Organizational form

Activities will be conducted by a Limited Liability Company. In this case, the organizer will be the only founder and director. Taxes will be paid according to a simplified taxation system - 15% of the income - expenses base.

Employees

To carry out activities, you need: director, administrators, cleaners. The number of employees and their remuneration will look like this:

The staff work schedule is two days later. There is one administrator and one cleaning lady on a shift. The administrator answers calls, talks about the bath, negotiates with clients. Upon arrival, clients give them all the necessary information, towels, slippers, etc., show the room. The cleaning lady cleans up after the customers leave the bathhouse, takes care of the adjacent territory.

The organization has a strict vertical subordination, the subordination structure is presented below:

Financial plan

For calculations, the following macroeconomic indicators are assumed:

• Inflation - 11%,
• Income tax - 15%,
• Personal income tax - 13%,
• Social security contributions - 34.2%,
• VAT - 0%,
• discount rate (WACC) - 15%.

Financing the project

Total investments in the project will amount to 5,133.7 thousand rubles. of which 2,033.7 thousand are planned to be invested by the initiator of the project. 1,132.7 thousand rubles. from the investments of the initiator will go to capital investments (organization of a legal entity, purchase of land, furniture and equipment, advertising). The remaining part is 3,100 thousand rubles. will be spent as a bank loan, which will be received at 15% per annum, the property of the initiator of the project will be the pledge. After the construction and commissioning of the bath, the pledge will be reissued to the bath and the land under it.

Project costs

Expenses will be paid on a monthly basis: wages of employees, tax payments, utility bills, purchase of products, marketing events, entertainment expenses, and other expenses.

These indicators are interesting and stimulating for starting a business. The organizer has great chances of obtaining a loan, since the business will pay off quickly enough, and the collateral guarantees the bank the return of the loan amount.

In addition, the calculated payback indicators are of interest not only to the bank, but also to private investors who are most likely to be interested in participating in the project.

Risk analysis

The calculations of the bath's business plan prove that this business is quite profitable. But it is also worth considering situations that can negatively affect the opening or development of activities:

1. Problems in obtaining a loan. The organizer has no experience in starting a business, so he will not be a very reliable client for banks. But there is a project with calculations, as well as property, which is pledged. Therefore, this option is unlikely.
2. The appearance of a similar institution in the area. This will lead to partial churn of customers. Although our bathhouse provides competitive prices, compared to most similar establishments. There is also a system of discounts, which makes the establishment attractive. At the same time, the bath has numerous services for family and company recreation. Therefore, it will be difficult for a newly-minted competitor to retain lost customers.
3. A decrease in the income of the population, which will lead to a decrease in funds that can be spent on recreation and leisure. However, the prices in the bath are not high, and the rest can be quite varied. In this regard, a significant decrease in the flow of customers is not expected.

conclusions

The calculations of the bath's business plan show interesting indicators of business efficiency and timely repayment of loans. In this regard, this project will be of interest to both credit institutions and private investors.