Do you want to start a salt room company and need to write a business plan? If YES, here is a sample salt room business plan template & feasibility report.
There are vast business opportunities in the alternative medical practice industry and salt room business is one of them. This line of business is thriving and profitable in the united states of America and in some countries of the world. So, if you are interested in starting a business in the alternative medical practice industry, then you should consider opening your own salt room.
When starting a salt room business, you are required to first look at the existing laws in the country or the state you reside in because there is hardly any country that does not pay serious attention on their health sector.
You can start your salt room business from a small town in the United States and if you are consistent and creative, it won’t be too long before your brand becomes a nationally recognized brand especially if you go into franchising. Below is a sample salt room business plan template that can help you write your own with little or no hassles.
A Sample Salt Room Business Plan Template
1. Industry Overview
The alternative medicine practice industry has been in existence as far back as modern civilization and it is common to find salt rooms in Poland, Slovakia, Belarus, Russia, India, China, Japan and some countries in Asia. A salt room is a place where salt therapy or halotherapy takes place. Halotherapy is a form of alternative medicine which makes use of salt.
Dry salt therapy, or halotherapy, is a holistic, drug free, natural therapy using micro particles of salt to promote better breathing, healthier skin, sounder sleep, improved physical fitness and endurance and overall wellness. Dry salt therapy also helps to alleviate symptoms of many respiratory and skin conditions.
Numerous forms of halotherapy have been known of and used for millennia. The first mention of spa resorts was in Poland in records dating from the twelfth century. They relate to bathing in mineral waters.
Interestingly, Salt Therapy can significantly help to Reduce the need for inhalers and antibiotics, make breathing easier after just a few sessions, Improve lung function, Reduce the number of hospital admissions, Alleviate sneezing, coughing, and shortness of breath, Clear mucus and sticky phlegm from the lungs, Increase the resistance to respiratory tract diseases, Strengthen your immune system, and Prolong remission times amongst others.
The Alternative Medicine industry is projected to grow slowly due to reservation about the field’s validity. On the other hand, the number of people who are over the age of 50 is rising, supporting alternative medicine industry demand, and healthcare reform is expanding the number of individuals with health insurance policy cover, boosting revenue growth.
No doubt, in the next few years, sustained public uncertainty of the industry will likely continue to limit the industry growth, but on the other hand, practitioners are positioning their business to take advantage of newfound consumer interest in complementary and alternative healthcare.
In addition, the reform in the healthcare sector will also continue to positively impact the industry, even though it will likely impact the profit margins negatively.
The Alternative Medicine industry is indeed a very large industry and pretty much active in all the parts of the world. Bardwell Chiropractic Acupuncture Center, North County Integrative Acupuncture Center, Samra Clinic and The Children’s Hospital in Minneapolis are the leaders in this industry and they dominate the market in the industry.
Statistics has it that in the United States of America alone, there are about 68,848 registered and licensed alternative medical clinics responsible for employing about 166,370 people and the industry rakes in a whooping sum of $14bn annually. The industry is projected to enjoy 1.3 percent annual growth.
More people are entering into the alternative medicine industry because the entry barriers in this industry are moderate compared to the medical industry. The major obstacle to entrepreneurs who want to start their own salt room business is that they are expected to obtain medical licensure.
The alternative medicine industry is pretty much open to new entrepreneurs and investors to come in and build a successful business as long as they are qualified to operate in the United States of America or their country of residence.
2. Executive Summary
Luke Noel® Salt Room, LLC is a registered and licensed salt room that will be located in Atlantic Avenue, Delray Beach – Florida. Our unique salt room is an enclosed, dry salt therapy unit with our world class halogenerator that provides individual and personalized skin and lung therapy.
We have been able to secure a standard facility that is located in the heart of town. Aside from the fact that we will start our salt room in Delray Beach, we intend to have strong presence in the whole of Florida.
Luke Noel® Salt Room, LLC is in business to offer a holistic, drug free, natural therapy using micro particles of salt to promote better breathing, healthier skin, sounder sleep, improved physical fitness and endurance and overall wellness.
Our salt therapy will also help our patient to alleviate symptoms of many respiratory and skin conditions. We are well trained, equipped and positioned to offer our treatment in a systematic way to individuals, families or communities in a caring, and professional environment.
We are in the alternative medicine industry to deliver excellent salt room services. We will also ensure to comply with the laws and health regulations in The United States of America. One thing is certain, our clients will definitely get fully healed from their ailment when they hire our services.
We will work hard to help people soothe their spine pains, joint pains, improve their sleep, boost their immune system function, increase their mental alertness, ease the effects of cancer treatment, aid headache sufferers, alleviate depression, and ultimately reduce or eliminate their stress level.
Luke Noel® Salt Room, LLC will operate 24 hours 7 days a week salt room; our salt room facility will be opened round the clock to attend to clients. Our work force will be well trained to operate within the framework of our organization’s corporate culture and also to meet the needs of all our customers (patients). We have structures in place that will enable us accept insurance payments as well as private – party payments from our clients.
Luke Noel® Salt Room, LLC will ensure that all our clients are given first class treatment whenever they visit our salt room. We have a CRM software that will enable us manage a one on one relationship with our customers (patients).
Luke Noel® Salt Room, LLC is owned and managed by Dr. Luke Noel. Dr. Noel is an international – licensed alternative medicine practitioner and halo – therapist with robust experience in the alternative medicine industry that cuts across the United States and Poland. He will be bringing in his vast experience and expertise to help the organization grow to become one of the leading salt rooms in the United States of America.
3. Our Products and Services
Luke Noel® Salt Room, LLC is in the alternative medical industry with the goal of becoming an industry leader. We will work hard to help our patients experience better breathing, healthier skin, sounder sleep, improved physical fitness, endurance and overall wellness.
We area also in the industry to make profits and we are going to do all that is permitted by the laws in the United States of America to achieve our business aims and objectives. These are the salt room services that Luke Noel® Salt Room, LLC will be offering our patients;
- Offer salt room therapy
4. Our Mission and Vision Statement
- Our vision is to become the number one choice when it comes to salt room treatments in the whole of Delray Beach – Florida and also to be amongst the top 10 salt rooms in the United States of America within the next 15 years.
- Luke Noel® Salt Room, LLC is to establish a first – class salt room that takes a small space and turns it into a powerful healing environment for people with various respiratory ailments, skin conditions, detox, and general wellness. We want to become one of the leaders in the industry in the United States of America.
Our Business Structure
Luke Noel® Salt Room, LLC will be built on a solid foundation. From the outset, we have decided to recruit only qualified professionals to man various job positions in our organization. We are quite aware of the rules and regulations governing the alternative medicine industry which is why we decided to recruit only experienced, licensed and qualified employees.
We hope to leverage on their expertise to build our business brand to be well accepted in Delray Beach – Florida and the whole of the United States. When hiring, we will look out for applicants that are not just qualified and experienced, but honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more. This are the positions that will be available at Luke Noel® Salt Room, LLC;
- Chief Executive Officer (Owner)
- Salt Room Operator/Halo Therapist
- Admin and HR Manager
- Marketing Executive
- Cashier (Counter Agent)
- Customer Care Executive
5. Job Roles and Responsibilities
Chief Executive Officer:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Carrying out staff induction for new team members
- Responsible for signing checks and documents on behalf of the company
- Responsible for handling general acupuncture treatment
Salt Room Operator/Halo Therapist
- Responsible for providing professional and holistic salt room services to our patients
- Responsible for offering halotherapy treatment
- Ensures that clients/patients follow through recovery or healing plans as agreed
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information as it relates to those who need our services
- Source for clients for the company
- Responsible for promoting the company’s image
- Responsible for creating marketing and sales strategies, etc.
- Represents the organization in some strategic business meetings
- Handle any other duty as assigned by the Chief Executive Officer
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment
- Carrying out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Accountant/Cashier (Counter Agent):
- Receives payments on behalf of the organization
- Issues receipt to customers
- Prepare financial report at the end of every working week
- Handles financial transaction on behalf of the company
- Interfaces with our bankers
- Responsible for payment of tax, levies and utility bills
- Handles any other duty as assigned by the Chief Executive Officer
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the manager in an effective and timely manner
- Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries
- Receives Visitors/clients on behalf of the organization
- Receives parcels/documents for the company
- Handles enquiries via e-mail and phone calls for the organization
- Distribute mails in the organization
- Handles any other duties as assigned by the line manager
6. SWOT Analysis
Luke Noel® Salt Room, LLC is set to become one of the leading salt rooms in the whole of Delray Beach – Florida which is why we will ensure that we are well trained and equipped to carry out our duties. We want Luke Noel® Salt Room, LLC to be the number one choice in Delray Beach – Florida.
We made sure that we hire the services of business consultants that are specialized in setting up new businesses to help our organization conduct detailed SWOT analysis and to also provide professional support in helping us structure our business to indeed become a leader in the alternative medical practice industry. This is the summary of the SWOT analysis that was conducted for Luke Noel® Salt Room, LLC;
Our strength lies in the fact that we have a team of qualified, experienced and licensed professionals manning various job positions in our organization. As a matter of fact, they are some of the best hands in the whole of Delray Beach – Florida. Our location, the Business model we will be operating on, home services, multiple payment options, well equipped facility and our excellent customer service culture will definitely count as a strong strength for us.
Our perceived weakness lies in the fact that we are just starting out and we may not have the required finance to sustain the kind of publicity that we intend giving the business.
The opportunities that are available to salt rooms practitioners are unlimited considering the fact that we have a growing population that are prone to lung and skin related ailments in the United States and we are going to position our business to make the best out of the opportunities that will be available to us in Florida.
Just like any other business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies (healthcare reform). It is a fact that economic downturn affects purchasing/spending power.
Other threats that may likely confront us are sustained public uncertainty of the industry and the arrival of a new, bigger and well established salt room or even alternative medicine brand that offer same treatments in same location as ours.
7. MARKET ANALYSIS
- Market Trends
One of the trends that has positioned alternative medical practices to be on the rise is the fact that they are now well – regulated and conventional healthcare providers now find it convenient to refer some of their patients.
If you keep tabs with the trend in the alternative medicine industry, you will agree that the industry is indeed growing despite the sustained public uncertainty of the industry which is why salt room franchises are now selling faster than before.
It is now easier to find salt rooms in places that ordinarily you would not find one; places such as residential estates, business districts, and even in shopping malls with spas and tanning parlor leading the track. More people are entering into the alternative medicine industry because the entry barriers are moderate compared to the medical industry.
The major obstacle to an entrepreneur who want to start their own salt room business is that they are expected to obtain medical licensure. In order to earn an alternative medicine license, aspiring entrepreneurs must prove that they have received adequate education and that they can uphold basic ethical standards.
Just like any other regulatory entry barrier, licensure has the effect of controlling supply in the industry and generating security for incumbent practitioners. In addition, the existence of established practices in the proposed area of practice can affect the viability of a new practice in that area. In contrast to the licensing requirements, the costs of establishment are not significant.
8. Our Target Market
The target market for salt rooms cuts across people of different walks of life. The fact that people who have lungs and skin ailments and any other related problem would do anything and pay any amount to get well makes marketing the business interesting.
Our marketing strategies will be directed towards achieving specific objectives that support the strategic goals of the organization. The truth is that all that we do will be geared towards creating new market channels, increasing sales and increase our market share.
Luke Noel® Salt Room, LLC will work towards providing services, facilities and environment that will help us reach out to our target market. These are the category of people that we intend marketing our salt room services to;
People with Lung Conditions such as:
- Breathlessness and Chest Tightness
- Bronchial Infections
- Chronic Bronchitis
- Chronic Sinusitis
- Sleep Apnea
- Ear Infections
- Laryngitis (Pharyngitis,)
- Sore Throat, and Tonsillitis
- Cystic Fibrosis
- Hay Fever
- Sinus Inflammation
- Smoker’s Cough
- Skin Aging
People with Skin Conditions such as:
- Dry and Flaky Skin
Our Competitive Advantage
Aside from the fact that our business strategy has positioned us to enjoy low labor and maintenance costs, growth market, operating in open territories and non-competitive marketplace, and accelerated return-on-investment (ROI), we can boast of having a world – class salt room facility with world class gadgets such as;
- Built-in Spacious Bench
- Plexiglass Door
- Built-in High-Quality LED Reading Light
- Convenient Dock and Audio Plug for your Portable Device
- Marine Quality Music Speakers
- MULTI S.A.L.T. FX® Halogenerator
- Cleaning and Maintenance Kit
- One 10-lb. container of Halo-Salt
- Built-in high-quality LED reading light
- Convenient dock and audio plug for your portable device
- Marine quality music speakers
- Original SALT Booth® comes fully assembled
Luke Noel® Salt Room, LLC is coming into the market well prepared to favorably compete in the industry. Our facility is well positioned (centrally positioned) and visible, we have enough parking space with good security. Our staff are well groomed in all aspect of halo therapy service delivery and all our employees are trained to provide customized customer service to all our clients.
We are going to be one of the few salt rooms cum halotherapy service providers in the whole of Florida that will offer home services and also open for business 24 hours a day and 7 days a week.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Luke Noel® Salt Room, LLC will ensure that we do all we can to maximize the business by generating income from every legal means within the scope of our industry. Below are the services we intend offering in order to generate income for Luke Noel® Salt Room, LLC;
- Salt room serivces
10. Sales Forecast
It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field. It would be hard to create a sales forecast with a newly opened business because the statistics that will be provided will be on a short – term basis.
Experts said that usually a business should be in operation for at least one year before they can generate the statistics that will help in accurate forecasting; statistics should be at least one-year-old in order to show the trends and pattern in consumer spending.
Below are the sales projection for Luke Noel® Salt Room, LLC, it is based on the location of our clinic facility and the services we will be offering to our clients (patients);
- First Fiscal Year (FY1): $120,000 (From Self – Pay Clients): $150,000 (From Health Insurance Companies)
- Second Fiscal Year (FY2): $170,000 (From Self – Pay Clients): $200,000 (From Health Insurance Companies)
- Third Fiscal Year (FY3): $250,000 (From Self – Pay Clients): $300,000 (From Health Insurance Companies)
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown within the period stated above. There won’t be any major competitor offering same services as we do within 4.5 miles’ radius from our salt room facility. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
The marketing and sales strategy of Luke Noel® Salt Room, LLC will be based on generating long-term personalized relationships with customers. In order to achieve that, we will ensure that we offer all – round halotherapy and wellness services at affordable prices compared to what is obtainable in and around Florida.
Aside from the strategic location of our business, all our employees will be well trained and equipped to provide excellent halotherapy and wellness services at all times. We know that if we are consistent with offering high quality service delivery, we will increase the number of our customers by more than 25 percent for the first year and then more than 40 percent subsequently.
Before choosing a location for our salt room, we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market and become the preferred choice for residents of Delray Beach.
We hired experts who have good understanding of the alternative medicine industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Delray Beach – Florida.
In summary, Luke Noel® Salt Room, LLC will adopt the following sales and marketing approach to win customers over;
- Introduce our business by sending introductory letters to health facilities, residents, business owners and corporate organizations
- Advertise our salt room on national dailies, local TV and radio stations
- Promote our salt room online via our official website and all available social media platforms
- Hire the services of experts to make our brands the first choice for people in Delray Beach – Florida
- Making our first impression count positively to those who will hire our services for the first time
- Make use of attractive hand bills to create awareness and also to give direction to our salt room
- Adopt direct mailing coupon marketing approach
- Position our signage/flexi banners at strategic places
- Create a loyalty plan that will enable us reward our loyal customers who refer other patience to us
11. Publicity and Advertising Strategy
We are not just in the salt room/halotherapy services business to make profits but also to become one of the market leaders hence we are going to explore all available means to promote our business. Luke Noel® Salt Room, LLC has a long – term plan of offering halotherapy services to clients all around Florida which is why we will deliberately build our brand to be well accepted in Delray Beach before venturing out.
Here are the platforms we intend leveraging on to promote and advertise Luke Noel® Salt Room, LLC;
- Place adverts on both print (community – based newspapers and magazines) and electronic media platforms
- Sponsor relevant community health and fitness programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
- Install our Billboards in strategic locations all around Delray Beach – Florida
- Distribute our fliers and handbills in target areas
- Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.
12. Our Pricing Strategy
As a salt room operator in the United States, the fee you can charge per session can range from $15 to $60, based on the size of your space and the number of clients you can handle. Luke Noel® Salt Room, LLC will work towards ensuring that all our services are offered at highly competitive prices compared to what is obtainable in the United States of America.
It is important to clearly state that in some cases salt rooms/halotherapy and wellness service providers also adopt the hourly billing cum per visit billing method.
- Payment Options
The payment policy adopted by Luke Noel® Salt Room, LLC is all – inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Luke Noel® Salt Room, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our client make payment for services rendered without any stress on their part.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business.
When it comes to setting up a salt room, the materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a salt room; it might differ in other countries due to the value of their money. However, this is what it would cost us to setup Luke Noel® Salt Room, LLC in Delray Beach – Florida;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits – $1,500.
- Marketing promotion expenses (8,000 flyers at $0.04 per copy) for the total amount of $10,000.
- The cost for hiring business consultant – $5,000.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $30,800.
- The cost of accounting software, CRM software and Payroll Software – $3,000
- The cost for leasing facility for the salt room – $180,000.
- The cost for facility remodeling – $50,000.
- Other start-up expenses including stationery – $1000
- Phone and utility deposits – $3,500
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for start-up inventory – $15,000
- Storage hardware (bins, utensil rack, shelves, glasses et al) – $1,720
- The cost for acquiring Original SALT Booth® comes fully assembled, Halogenerator, Cleaning and Maintenance Kit, One 10-lb. container of Halo-Salt and supply – $200,000
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
- The cost of launching a website – $600
- Miscellaneous – $5,000
We would need an estimate of four hundred and fifty thousand dollars (450,000) to successfully launch a standard salt room in Delray Beach – Florida It is important to state that the testing and evaluating expenses would be high because of the large amount of equipment needed to startup a salt room and also the sophistication of the technology used in salt rooms.
Generating Funds/Startup Capital for Luke Noel® Salt Room, LLC
Luke Noel® Salt Room, LLC is owned and financed by Dr. Luke Noel. He has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from the bank
N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $250,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
It is a known fact that the future of any business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Luke Noel® Salt Room, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our halotherapy services a little bit cheaper than what is obtainable in the industry and we are prepared to survive on lower profit margin for a while before increasing our service charge.
Luke Noel® Salt Room, LLC will make sure that the right foundation, business structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the facility/building Original SALT Booth® that comes fully assembled: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Printing of Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of Halogenerator, Cleaning and Maintenance Kit, One 10-lb. container of Halo-Salt and supply and gadgets et al: In Progress
- Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Compilation of our list of potential clients in and around Delray Beach – Florida: Completed
- Establishing business relationship with vendors: In Progress