Swot_Analysis

The business plan for the Health Spa SoulSpace contains many aspects. The spa is located in Raleigh, North Carolina, and is striving towards being their number one premier spa. This business is a partnership between three individuals; Steve Long, Debbie Long, and Linda Hill-Chinn. All three own equal portions of the business. The spa will provide hair styling, holistic massage, body work, and energy work services (BPlan 1996-2010). According to the BPlan (1996-2010) the owners made a name and slogan to sum up their goal and promise: “SoulSpace Holistic: Spa and Salon— Rejuvenate Your Life!” The company has come up with ways for marketing their business. The company’s targets are salon customers and spa customers. They are targeting males and females that are professionals and retirees. This is a high class spa that will need high income families. They are looking for professionals that will be willing to spend money to keep up with the current styles and the professional look. The company has done the research of the marketing growth the company can achieve from the location they chose, because it is an up and coming part of town. They are also targeting all the surrounding areas with advertising and promotion. The strategy for SoulSpace to be successful contains three elements; service, unique atmosphere, and community relationship (BPlan 1996-2010). SoulSpace plans to have the competitive edge, because of their services, advertising, and promotions. They want to stand out from any other spa or salon by having these successful elements. According to BPlan (1996- 2010), “the management philosophy of SoulSpace is based on respect for each of our fellow employees, respect for every customer, and individual responsibility.” SoulSpace will have a general manager, assistant, manager, ten stylists, three massage therapists, one energy therapist, one nail specialist, and two to three receptionists. Due to the experience that the team has SoulSpace can be a successful company. The last part of the business plan for SoulSpace is the financial planning. They would like to maintain and improve the ways they can increase cash flow. The company will have to monitor their sales against their expenses and make sure they have proper financing to support their business. They have created scenarios for different ways they can make a profit or break even. I have developed a SWOT analysis of SoulSpace to determine their strengths, weaknesses, opportunities, and threats. First I would like to evaluate their strengths. SoulSpace has three owners that have the experience needed to run this spa. Steven Long has a part-time healing practice along with eight years of management experience. I believe he will be a great asset to the spa portion of this business by helping out with the heath and healing side. Deborah Long has several years as an assistant to a sales center and will be able to assist Steven in planning and other implementations of the business. Linda Hill-Chinn spent fifteen years as a staffing specialist and can help find the correct staff for the spa. The spa is a well-developed and researched business model. They want to be the number one premier spa in the area, and I believe they can achieve that, because of their location and clientele. The spa does not have an exact competitor and there are not any related competitors near their locations. I believe, because of their location in downtown Raleigh they can have success in marketing towards professionals. The spa will have enough employees to run successfully and they do have the space to grow if needed. Their financial success depends solely on the customer. If all of the stylists and therapists reach their goal number of clients per day the spa will bring in a profit. The next part of the analysis is the weaknesses of the spa. I do like that the spa is targeting the professionals, but I think they are only targeting upper-class clients. If they targeted everyone as an equal I think that they could obtain more business, because of their location. I also believe that they need to implement a training force to make sure that the stylists and therapists they hire meet their needs. I also think, because of the number of employees they are going to have they need to have someone in charge of the human resources. This can help with the daily needs of their employees as well as helping the spa overall. SoulSpace is based solely on the customer and if they do not have enough customers they may end up failing as a business. This is why advertising and promotions are so important. The third part of the analysis is opportunities. With the correct use of advertising and promotions the spa can increase the customer growth. Doing this will increase their sales. They will also need to stay current with their research to make sure that they have all the new health products available in their spa. Depending on the overall success of SoulSpace the owners could look into opening another spa in a location that would service the same kind of client. The last part of the analysis is threats. The biggest threat that SoulSpace can encounter is an economic crash. This will eliminate the money that their clients use for material things like going to the spa. They should also be aware if any of the other spas try to compete with them and have a plan to overcome that. Overall I believe that SoulSpace can become a successful business if they stay on the business plan that they created. References BPlans. (1996-2010). Health Spa Business Plan. Retrieved from http://www.BPlans.com