Wellness Center Business Plan Template
If you want to start a Wellness Center or expand your current Wellness Center, you need a business plan.
The following Health and Wellness Center business plan template gives you the key elements to include in a winning Wellness Center business plan.
Wellness Center Business Plan Example
I. Executive Summary
Business Overview
[Company Name], located at [insert location here] is a brand new, state-of-the-art wellness center focusing on providing services the aim to improve both physical and mental wellbeing to customers in the surrounding community. Our product and service lines fit nicely with the aspirational tastes and preferences of the local area – young, middle class suburbanites want quality wellness services, but do not want to pay luxury prices for it.
Products and Services
[Company Name] will provide wellness services for all ages and both genders. Services will include therapies such as massage, energy work, and bodywork, as well as services that promote general wellbeing, such as yoga, meditation, and nutrition programs. Other special treatments – such as acupuncture – will be available, and the team will continuously expand and improve on the menu of services.
In addition to providing these services, [Company name] will also be a retailer of natural, organic skin care products and dietary supplements. Customers will find products at [Company name] that they will not find in health and beauty stores.
Customer Focus
[Company Name] will primarily serve the residents within a 10-mile radius of our location. The demographics of these customers are as follows:
- 27,827 residents
- Average income of $74,700
- 58.9% with higher education
- 49.6% in Management/Professional occupations
- Median age: 35 years
This bodes well for [Company Name], as the prime demographic for wellness centers is educated individuals between the ages of 18 and 34. In addition, there is growing demand from Generation X for services that promote wellbeing. Individuals of all ages will be sure to patronize [Company Name] for both one-off and routine wellness services.
Management Team
[Company Name]is led by [Founder’s Name] who has been a naturopath for 20 years. While [Founder] has never run a wellness center herself, she has been in private practice since age 30. As such [Founder] has an in-depth knowledge of the wellness industry, including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- The Company will fill a specific market niche in the growing community we are entering. In addition, we have surveyed the local population and received extremely positive feedback saying that they explicitly want to frequent our business when it is launched.
- Our location is in a high-volume area with easy access from multiple residential and commercial district zones.
- The management team has a track record of success in the wellness industry.
- Wellness centers are a proven business and have succeeded in communities throughout the United States.
- Local competitors leave a large gap in the wellness market—there are providers offering individual services (massage services or yoga classes only), and a luxury spa with high-priced aesthetic services and wellness retreats, but nothing in between.
Financial Highlights
[Company Name] is currently seeking $700,000 to launch. Specifically, these funds will be used as follows:
- Facility design/build: $50,000
- Wellness center equipment purchases: $150,000
- Working capital: $500,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even
Topline projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name], located at [insert location here] is a brand new, state-of-the-art wellness center focusing on providing a variety of wellness services in a professional environment. It will showcase a calming and healing interior as well as classrooms, private treatment rooms, and a juice bar. [The Company] also sells a variety of natural and organic skin care products and dietary supplements, which will be on display in the waiting room.
[Company Name] was founded by [Founder’s Name]. While [Founder’s Name] has been in the alternative medicine business for some time, it was in [month, year] that she decided to launch [Company Name]. Specifically, during this time, [Founder] took a trip to Fort Lauderdale, FL. During her trip, [Founder’s Name] visited a wellness center that enjoyed tremendous success. After discussing the business at length with the owner of the center, [Founder’s Name] clearly understood that a similar business would enjoy significant success in her hometown.
Specifically, the customer demographics and competitive situations in the Fort Lauderdale location and in her hometown were so similar that she knew it would work. After surveying the local population, [Founder’s name] went ahead and founded [company name].
[Company Name]’s History
Upon returning from Fort Lauderdale, surveying the local customer base, and finding a potential facility location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].
The business is currently being run out of [Founder’s Name] private offices, but once the lease on [Company Name]’s commercial location is finalized, all operations will be run from there.
Since incorporation, the Company has achieved the following milestones:
- Found commercial space and signed Letter of Intent to lease it
- Developed the company’s name, logo and website located at [website]
- Hired an interior designer for the decor and furniture layout
- Determined equipment and fixture requirements
- Begun recruiting key employees with previous wellness services experience
[Company Name]’s Products & Services
Below are [Company Name]’s initial service offerings and in-store products sold.
Specialists will be asked to perform the following services for both men and women:
- Nutritional consultation
- Eastern mindfulness practices (yoga, tai chi, meditation, etc.)
- Acupuncture
- Massage therapy
- Energy treatments
- Chiropractic treatments
- Mental health therapies
The first appointment will include an initial assessment and recommendation phase where the specialist will discuss the customer’s desired outcome. A treatment plan will then be formulated, and appointments scheduled.
[Company Name] will also host a variety of classes, from wellness education to meditation and yoga, etc. Customers may enroll for these classes as desired, without an initial assessment.
[Company Name] will feature natural and organic beauty products and dietary supplements in-store. It will continue to update its offering in order to provide the newest developments in such products to its customers.
Furthermore, the waiting area will feature a relaxing, welcoming atmosphere, and a juice bar will be available for both clients and walk-in traffic.
[Company Name] plans to be open 6 days a week, from 7AM to 9PM. As demand dictates, we may extend or reduce our hours, or offer classes during off hours.
Wellness Center Design
[Company Name] will develop a 2,500 square foot facility whose key elements will include the following:
- Treatment Rooms
- Classrooms
- Reception Desk
- Product Display area
- Juice bar
- A waiting area
- Restrooms
III. Industry Analysis
[Company Name] competes against other wellness centers, spas, fitness studios, and practitioners such as Naturopaths, psychotherapists, massage therapists, and chiropractors.
According to a report by Global Wellness Institute, the wellness vertical is a fragmented one, as the majority of operators are single-location businesses. The global market is estimated to grow to over $6 trillion in three years. Since there are no truly dominant competitors, barriers to entry are not as high as many other industries, and a start-up can expect to have success in this growing market, [Company Name] is well-positioned for success. There is plenty of room in the industry particularly for conveniently located wellness centers that cater to specific geographic and demographic customer niches. Smaller wellness centers can easily develop a loyal clientele that enable them to compete and succeed against other centers; in this industry, size does not necessarily mean an advantage, which bodes well for [Company Name].
Market Trends
The market in which [Company Name] will compete is experiencing a number of different trends.
Market-level trends:
- Strong growth. This market is expected to grow consistently at around 103% annually.
- Success drivers. Customer satisfaction is what ultimately makes one wellness center triumph while another fails. The experience a wellness center client has will ultimately determine whether or not they return and whether or not they refer others to the center.
Firm-level trends:
- Economies of scale. Larger wellness centers are finding opportunities to succeed, by making effective use of support personnel. Receptionists and assistants at larger establishments can take care of many of the more menial tasks that skilled therapists and practitioners are responsible for handling in small establishments. This permits specialist staff to spend a higher proportion of their time actually performing skilled services.
- Independent spas. Independent spas also compete with wellness centers, offering some of the same treatments. These spas develop a loyal customer base and select their location on the basis of population demographics.
Customer-level trends:
- Intense customer loyalty. Many wellness centers develop repeat customers who become a regular client base and represent a significant portion of their revenues. Wellness centers whose employees are able to develop strong relationships with customers can expect to see more long-term success.
- Gender preferences. Women are the most lucrative customers for wellness centers, visiting more often and purchasing more special treatments.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the residents of [company location] and the immediately surrounding areas as well as those who work in [company location].
The area we serve is populated mostly by middle class Millennials; as a result, they have the means to pay for higher quality service, and are looking for holistic wellness services that focus on the whole person.
The precise demographics of the town in which our retail location resides is as follows:
| Wilmette | Winnetka | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
The Company will primarily target the following three customer segments:
- Millennials: The town has a significant population of millennials. These individuals are more likely to be wellness focused. This demographic is well-connected to each other and as such are a prime source of referral business. [Company name] expects to regularly acquire new customers from referrals.
- Professionals: [Company name] is located along a well-traveled commute route. By offering convenient location and exceptional service to the customer, [Company name] will draw in working men and women who want to attend a yoga or meditation session over their lunch break or at the end of the work day.
- Generation X: The town has a sizeable population of middle-aged people. As this age group finishes having children, they will increasingly focus on maximizing their wellbeing. In addition, this demographic has become increasingly proactive in maintaining their health as they age. [Company name]’s range of services include a variety of options to address these concerns.
V. Competitive Analysis
Direct & Indirect Competitors
The following practitioners/practices are located within a 20-mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Whole Health
Whole Health offers preventive healthcare, lifestyle medicine, wellness services, executive health, and concierge medicine. They are designed for individuals interested in achieving a higher level of health, wellness, and longevity. The team takes an evidence-based, patient-centered approach to care. Whole Health also partners with corporations to develop wellness services for employees. The team provides personalized medicine, with programs designed to meet the unique needs of each patient.
While we expect that Whole Health will continue to thrive based on its location and customer relationships, we expect that more and more customers will frequent [Company Name] based on the greater range of high-quality and competitively priced services we offer.
Best Life
Established in 1993, Best Life provides a personalized approach to health optimization, access to a range of treatments, and the latest technology. The company provides its guests with aesthetics and wellness services such as cryotherapy, IV therapy, halotherapy, and massage.
[Company Name] has several advantages over Best Self Spa, in that it offers a broader range of holistic treatments. [Company Name] will provide these high demand services at an affordable price point.
Wellness Champion
Wellness Champion is a provider of workplace wellness, nutrition, and injury prevention coaching. Established in 2002, the company has grown to multiple client locations across the country. Wellness Champion provides personalized onsite coaching.
Their coaches help employees live healthier lives through individualized solutions that include Nutrition Counseling, Health and Wellness Coaching, Medical Nutrition Therapy, and Safety and Injury Prevention Coaching. The company is authorized to provide on-site and telehealth coaching that are covered by the largest national health insurance carriers.
Wellness Champion provides nutrition services that include diabetes prevention and education, a comprehensive dietary assessment, personalized approach, meal planning and food preparation, and how to eat more mindfully and adopt healthier eating habits.
Wellness Champion offers some services which are unique to the area, and thus we expect it will continue to draw a large clientele. However, because many of its services are geared to a corporate clientele, we expect to draw individuals who seek the same level of support.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Location: [Company Name]’s location is near the center of town, giving us access to commuters going to and leaving the train station, local office workers, and passersby shopping in the city. We also offer adequate parking making it easy for customers to patronize us.
- Great service at an affordable price: The complete array of wellness services offered by [Company Name] goes beyond the alternative therapy-focused services of its most premium positioned competitor, Best Self. [Company Name] will offer these services at a much more affordable price.
- Management: Our management team has years of business and marketing experience that allows us to market to and serve customers in a much more sophisticated manner than our competitors.
- Relationships: Having lived in the community for 25 years, [Founder’s Name] knows all the local leaders, newspapers and other influencers. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
VI. Marketing Plan
[Company name] seeks to position itself as a respectable, upper-middle-market competitor in the wellness market. Customers can expect to receive care from licensed and certified professionals for a price somewhere between discount chains and luxury establishments.
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
- Convenient location
- Highly trained specialists
- Significant personal attention
- Moderate price point
- Comfortable, customer-focused environment
Promotions Strategy
[Company Name] expects its target market to be individuals working and/or living within a 10-mile radius of its location. [The Company’s] promotions strategy to reach these individuals includes:
Local Publications
[Company name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Regular advertisements will run to maintain exposure to relevant markets. Community newspapers, school publications, youth sports programs, and similar channels will be a major promotion effort.
Major Publications
We will make careful use of advertising in selected larger publications. [Publication or newspaper name] has a circulation of xyz, and we can expect to reach a wider geographic region of customers on a limited basis. Advertisements with major publications will be used selectively, based on cost-effectiveness. These ads will include discount coupons so that response to the ads can be tracked.
Community Events/Organizations
[Company name] will promote itself by distributing marketing materials and participating in local community events, such as school fairs, local festivals, or homeowner associations.
Commute Advertising
We will drive attention toward [Company name] by leasing a billboard alongside [route or highway]. Advertising on heavily traveled commute routes is an opportunity to alert large numbers of working individuals with disposable income of our opening.
Customer Loyalty Programs
[Company name] will create a winning customer loyalty program to keep its best clients coming back again and again. In addition, we will send periodic, regular emails and text messages to customers. These communications will (a) ensure that customers are satisfied with their treatments, and (b) remind customers after a certain period of time has passed that they might want a new treatment. Long-term customers will have the opportunity to participate in the loyalty program, and referrals will be rewarded as well.
Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will provide general information on [Company Name], offer discounts and/or provide other inducements for people to visit the center.
Ongoing Customer Communications
[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new events, products and more.
Pre-Opening Events
Before opening the wellness center, [Company Name] will organize pre-opening events designed for prospective customers, local merchants and press contacts. These events will create buzz and awareness for [Company Name] in the area.
Pricing Strategy
[Company Name]’s pricing will be moderate, so customers feel they receive great value when receiving treatment or attending a class. The customer can expect to receive quality care, for a more affordable price than what they pay at a premium spa or fitness facility.
VII. Operations Plan
Functional Roles
[Company name] will carry out its day-to-day operations on an appointment basis. Walk-in clients will be accommodated when possible. However, skin care products, dietary supplements, and juice bar offerings may be purchased on a walk-in basis.
In order to execute on [Company Name]’s business model, the Company needs to perform several functions. The majority of employees will assist in upselling customers in addition to the primary functions as treatment specialists. [Company name] anticipates using the services of X employees, divided into the following roles.
Service Functions
- Chiropractic treatments
- Vitamin Injections / IV
- Aesthetic treatments
- Nutritional counseling
- Mental health counseling
- Teaching classes
Administrative Functions
- General & administrative functions including legal, marketing, bookkeeping, etc.
- Sourcing and storing products
- Hiring and training staff
- Appointment making
- Customer service/cash register functions
- Treatment room preparation/cleaning
Miscellaneous
- Maintenance personnel
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name]is led by [Founder’s Name] who has been a Naturopath for 20 years.
While [Founder] has never run a wellness center herself, she has been in private practice since age 30. She began her career after she graduated from [Naturopathic Medical School] and passed her board exams in [19xx].
[Other person’s name] will serve as the customer service manager. [He/she] has extensive experience in the wellness industry.
[Founder] will serve as the office manager. In order to launch our wellness center, we need to hire the following personnel:
- Eastern mindfulness practice instructors (3 to start)
- Massage Therapists (2 to start)
- Chiropractor (1 to start)
- IV Certified Phlebotomists (2 to start)
- Assistants (1 to start)
- Receptionist (2 to start)
As dictated by demand and operational maturity, [Founder] will consider hiring the following personnel:
- Receptionists [Number]
- Assistant Office Manager
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come primarily from the services rendered and secondarily from the sale of supplements, skin care products, and juices/snacks.
As with most services, labor expenses are the key cost drivers for wellness centers. Specialists are salaried. Wellness center treatments typically require the provider to have licensure or certification in their field; therefore, attractive compensation packages are necessary to maintain a qualified staff.
The major cost drivers for the company’s operation will consist of:
- Treatment products and equipment
- Salaries
- Lease
Moreover, ongoing marketing expenditures and cost of goods sold expenses are also notable cost drivers for [Company Name].
Capital Requirements and Use of Funds
[Company Name] is seeking total funding of $700,000 of debt capital to launch its facility. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses and working capital.
Specifically, these funds will be used as follows:
- Facility design/build: $50,000
- Wellness center equipment purchases: $150,000
- Working capital: $500,000 to pay for marketing, salaries, and lease costs until [Company Name] is cash-flow positive
Key Assumptions & Forecasts
The following table reflects the key revenue and cost assumptions made in the financial model.
| Number of customers per day | Per location |
|---|---|
| Year 1 | 30 |
| Year 2 | 40 |
| Year 3 | 60 |
| Year 4 | 80 |
| Year 5 | 120 |
| Annual Rent | $90,000 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
