Other treatments offered are, facial and body treatments, such as, Vitamin C Antioxidant Facials, Anti-Free Radical Treatment. Take Away Spa has the latest products and techniques. Hair services are not provided as part of any treatment. Pedicure are part of Foot and Leg Treatment. As part of helping other business we are located by a hair and Nail salon that we do referrals, and co-market. Take Away Spa is a Limited Liability Corporation owned by Jeffrey Sanders. Mr.. Sanders functions as developer for Take Away Spa.
Sanders has been a marketing and sales professional for over 5 years with a proven track record, who has been working in the Business industry for the last 25 years with vase knowledge, As A Territory Sales manager tit Bimbo Bakeries, a leading bread manufacturer, he built the Metropolis territory from $kick per year to over $1. 8 million per year. During Mr.. Sanders sales career he also built a new territory from zero per year to over .
6 million per year. Take Away Spa primarily will be targeting potential clients within a three-mile radius with a household income over $25,000.
Our secondary market will include visitors staying in a local hotel. Within the U. S. , approximately 14% of the population has never tried a massage. We will assume that a conservative 70% of these two categories has tried a massage and would undergo one again, f suggested appealing services at the right price. Our market Analysis table thus reflects 70% of the local and visiting population who might be targeted. Within this group, clients who use spa services fall into four basic groups: 1 .
Clients mending from injuries or accidents / Massage Therapy. 2. Clients indulging themselves / Massage Therapy, Body and Facial Treatments. Clients who prefer unconventional health care. 4. Serious Athletes. 3. Describe the type of business you have created including: a. The product or service, and general staffing plan. Provide a rationale for your plan. B. The arm of your business and the benefits it offers your particular business, A chart of accounts specific to your business, including a rationale as to the selection of each account.
Take Away Spa offers therapeutic massage services, body treatments, facials and anti-aging treatments. Services are provided by licensed Therapists and Aesthetics who will be independently contracted and paid on a commission basis. The positive aspect of the commissioned employee is that there is very little overhead without sales; employees only make money when the business makes money. There will be a full retail line that complements the services menu offered. Products that will be offered, are high-end cosmetics, creams, candles, and other beauty products.
These high-end items tend to retail at a minimum of $20-$25 per item The staff of the spa will consists of, four certified message therapist, Aesthetics that are contracted, one Office Manager and one receptionist. The employees are 1099 and get paid 100% commission. This lessens huge overhead for salaries as employees are only paid when sales are generated. Employees will be paid based on production and percentages of service and sales to retail. There are more employees of this type available then here are jobs to fill them so it’s an employer’s market which is positive.
A front office person will be hired after one months of the Take Away Spa Grand Opening. This person will relieve some of the phone, front desk and cashier duties from the office manager. Our business was formed as a limited liability corporation for many reasons. First we would like to keep our business actions separate for our personal assets. In cases were the business may incur great debt, our personal properties are off limits. Another benefit is that the profits are not separately federally taxed but is passed through to the affiliates and filed on heir tax return.
An LLC is very simple to run and flexible in operation. Boards of directors are not needed to approve and business decisions that are made and we can decide on who can invest into our business. (“Limited Liability Company,”) Since the spa is employed by contractors, there is the possibility for them to become affiliates that will expand the business. Our chart of accounts is listed as follows: Asset Accounts Cue rent Assets Cash in Bank Petty Cash Inventory Accounts Receivable Long Term Assets Vehicles Accumulated Depreciation, Vehicles Shop Equipment Accumulated Depreciation, Shop Equipment Office Equipment
Accumulated Depreciation, Office Equipment Liability Accounts Current Liabilities Accounts Payable Employment Tax Payable Short Term Loans Payable Long Term Liabilities Equipment Payable Vehicles Payable Bank Loans payable Rent payable Direct Expense Accounts Shop or Design Supplies Rental Expense Repair and Maintenance Small Tools Shop or Design Labor Payroll Tax Expense Workers Com Expense State Sales Tax Expense Materials Freight Indirect Expense Accounts (Overhead) Salaries & Wages, Office & Sales Payroll Tax Expense, Office & Sales Accounting Advertising Bank Fees Repair and Maintenance, Office Taxes and Licenses
Telephone Utilities Depreciation Expense Insurance: Product Liability Legal Fees Office Supplies Postage Equity Capital from Home Sale Capital from Sale of Travel Business Based on the form of your business, analyze whether or not you will be required to use Generally Accepted Accounting Principles (GAP) or International Financial Reporting Standards (FIRS) accounting methods and how the FIRS / GAP convergence will impact your business. Suggest how you will incorporate any changes into your books and records.
This small business structure will be required to use the Generally Accepted Accounting Principles. Choosing this accounting method will provide evidence of all transactions to present true financial statements. These principles include the following: Cost Principle that mentions that all values listed and reported are at the cost to obtain the asset. Revenue Principle mentions that all revenues must be reported when earned. The matching principle states that financial statement must match the revenue.
Last but not least, the Disclosure Principle states that information that is applicable in making a good judgment on the company’s finances must be included in the financial statements. I think for a small business hose principles are an easier way to deal with the company’s finances. As long as we stay consistent with this method this shows true movement of the business. By adopting this method, I will have to make some changes in recording, for example adding the cash equivalents and monetary transactions to by books. “A comparison of,” 2011) Prepare a pro formal balance sheet and income statement providing the assumptions made and support the valuations assigned. Considering the value of assets (assigned per your balance sheet) used within your business, recommend two (2) specific internal controls that you will implement to protect your company’s assets and resources, justifying how each will provide assurances to management. Take Away Spa is of great value and as owner of this business, Mr.. Sanders thought that internal controls are needed to protect the spas asset and resources.
These are the two internal controls that will be implemented: Establishment of responsibility is very important, each employee needs to know their job duties and whom to go to for answers about a specific task. All contracted therapist and aesthetics will be responsible for the treatment and are of their client and also sell related products that will be provided by the spa. Therapist and aesthetics will not handle cash for the service and sale, only for tips. The receptionist will handle all phone calls related to appointments and products and services.
They will also be the designated cashier for the spa in which payments for service and products are administered. The office manager will be in charge of all day to day operational oversight. There will be form for ordering supplies as needed and one for preparing the pay/commission checks of the employee. This person will report to the owner or approved person for approvals. Physical controls will be implemented by the used to safes, alarms and cameras, time clocks, computer postcodes and product sensors.
These items will contribute to the safeguard of personnel and financial information. Keeping track and protection of inventory plus tracking time of employees. Safekeeping of any monies or checks and the protection of equipment assigned to the business. Using these controls will assist in the management process by which all things are assigned for specific reasons. Based on the internal control recommendations that you made, suggest how o will implement each within your business environment, indicating how challenges or resistances will be overcome. Will (Mr..
Sanders), implement the internal control for the establishment of responsibility by supplying new hires with a very detailed job description that list what is duties are required. A confirmation sheet will be signed by the employee upon reading and agreeing to all terms. A Code of Conduct will be issued and signed upon reading and agreeing to all terms. Within the Code of Conduct a corrective action plan will be outlined to advise employees what will be the consequences of failing to uphold to the agreed terms. This action will ensure the protection of any legal matters that may arise by having documentation.
Physical controls will also be implemented by the installation of a high tech security system within the shop. Cameras located in the office where the safe is located, above the cash register in the front of the shop and at all exit doors. All so security passwords will be on all computers and all users will have designated areas to access. The office manager and the owner will have access to employee files. The safe will require two sets of combinations to open and lock which the cashier and office manager will have. All staff will have to punch in at a time clock in order to receive proper compensation.
All products will be scanned into an inventory system in order to keep track of every item. These provisions will contribute in establishing a safe and sound business. Evaluate the impact of the regulatory environment, including the Serbians- Solely Act and other regulatory requirements, on your business venture, giving considering to how you intend to comply with the requirements and the general impact to decision making within your business. Regulations will impact my business greatly. Owning a spa business you must eave the proper licensing by the Board of Cosmetology and the Department of Health.
All techs are required to have passed and acquired a license from an accredited school which is partners with the health department. As far as complying with the GAP and the Serbians-Solely Act, I plan to comply by having financial statements in place and available to view and indicate strengths and weaknesses in the business. Following section 404 of the SOX that mention small business should identify risk and place internal controls to address them. It also states that some form of monitoring of these controls should be implemented ND are they functioning in the business.
Cite this Business Review of Take Away Spa Corporation
Business Review of Take Away Spa Corporation. (2018, May 05). Retrieved from https://graduateway.com/balance-sheet-4/