Feasibility Study on Establishment of Sweet Aphrodite Salon and Spa in Caltex Muzon SJDM, Bulacan

Abstract

This research focused on establishing a business named Sweet Aphrodite Salon and Spa located at 3023 Muzon Caltex City of San Jose Del Monte Bulacan, which offers different kinds of salon and spa services with a recreation room for the kids. Sweet Aphrodite has been proposed as a business to help women, especially all mothers, relax and provide them a place to pamper themselves. The concept of the proposed is to give every woman, especially all mothers, the relaxation they need. The researchers used secondary sources of research, such as Internet sources and books, to gain more ideas and concepts regarding the study. Afterward, in-depth research was conducted regarding the significant aspects such as the process involved in preparing the services, marketing, and financial aspect of the study. The researchers used a chart to describe what they did within 5 months and budgeting the capital that the researchers invested had been fully analyzed. Hence, the researchers came up with the conclusion and recommendation to establish the proposed business. According to the survey, 98% of the respondents are familiar with salons and spas, wherein 91% want these businesses to have a playground for kids. A total of 62% of the respondents are willing to payP500 to P1,000 for the services and even agreed to pay for a cup of coffee and snack while in the shop. A total of 37% of the respondents visit a spa salon once a month. Most of the respondents prefer to have someone who can entertain them while doing the service. Meanwhile, 53% of the respondents want to have a soft massage with the use of oil-based products, and 32% of the respondents want to have a hard massage with the use of lotion. Respondents prefer to recommend the product and services of Aphrodite through Facebook. The researchers have come up with the following financial projections. The financial plan consists of the income statement, projected financial position, cash flow return on investment, and a statement of changes in equity. The business was forecasted to have a 10% increase in sales revenue annually. The cost of sales was forecasted to increase by 10%. All related expenses will have 2% increases annually. The business will accommodate 150 sales per day, and it will breakdown by different kinds of business offerings based on the financial note. The changes in owners’ equity with the starting capital of P200,000 per each of the partnership is added with the net income (P299,334.70) by the partner and the ending capital of the business is the new capital of the second year of the business operation. The return of investment of the business on its first-year operation is 32.33%, and it will follow by the next ROI of the business.