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Executive Summary
The Wellness Club is a life coaching business that focuses on various types of life coaching. This includes financial, relationship, and weight loss coaching.
We've also added online coaching to our service offering. This has allowed us to reach a wider, global audience as opposed to operating solely from our studio.
We've made significant investments in our marketing and sales to reach and surpass our goals. This along with our continuous market and customer-related observations has put us in a strong position to find considerable success in the future.
Competing with larger, longer-established coaching brands has had a great influence on our business’ mission: using technology and innovation to stand out from our more experienced competitors and providing stellar results for our clients.
We're currently seeking an investment of at least $46,000 to help fund our marketing efforts and fit out a second studio in the Cleveland area. We're looking to achieve our expansion over the next 12 months.
Financial highlights:
| Metric | Year 1 | Year 2 | Year 3 |
|---|---|---|---|
| Revenue | $667,850 | $781,450 | $879,300 |
| Gross margin | 70% | 69% | 69% |
| Net profit / (loss) | $6,457 | $25,541 | $55,825 |
Company Overview
The Wellness Club is a life coaching & personal development company founded by Gloria Stevens and Karen Williams, operating as an LLC. Headquartered in Cleveland, Ohio, USA, The Wellness Club was established to serve the growing demand for specialist services in this sector.
Mission: To deliver exceptional value to our customers through expertise, reliability, and a commitment to continuous improvement.
Business objectives:
| Period | Target |
|---|---|
| Year 1 | Establish brand, acquire initial client base, achieve operational break-even |
| Year 2 | Expand service offering, grow revenue by 17%, hire additional staff |
| Year 3 | Establish market position, target new geographic or demographic segments |
The Wellness Club was founded by Gloria Stevens and Karen Williams. Gloria Stevens serves as the CEO of the company, whereas Karen has since retired and is currently a silent partner in the business.
The pair has had a passion for helping people reach their specific goals in life since they were in college. However, they studied Marketing and Law respectively, and the careers that followed provided them with a stable income while they focused on scaling their business.
The Wellness Club is registered as an LLC and operates from Cleveland, Ohio. At the time of writing, the company has assets worth $226,000. This includes our equipment, vehicles, and business savings. In the last 12 months, the business generated north of $600,000. In doing so, we've helped over 200 people achieve their life goals.
Market & Customer Analysis
We consistently conduct a market analysis to help us stay privy to the landscape of the life coaching industry.
To ensure we have a solid market analysis consistently, we've partnered up with one of the most reputable market research firms in all of Cleveland. Although this is an expense that most businesses can't afford to incur, it produces excellent results and saves us ample time.
We also keep a keen eye on the competition to take advantage of their unique vulnerabilities and strong points.
The life coaching industry is undoubtedly vibrant and large. There is ample opportunity to succeed. Needless to say, we also have a large number of competitors who are also vying for a sizable market share.
We've been able to successfully take advantage of market opportunities by studying market trends. One such trend that we've identified and acted upon is the rise of online life coaching consultations. Since we've implemented this strategy, our sales have increased by almost 27%.
Our market research has shown that we've generated revenues that surpass at least 80% of the life coach businesses in Ohio.
Customer analysis:
Our customers prioritize their personal development and have a fairly disposable income, in the region of $4,000 - $12,000 monthly. These individuals are usually between 24 to 45 years old.
Our target customer segment consists of couples and entire families, entrepreneurs, and people who are grossly overweight.
Given the remote nature of our business, we have customers as far as Perth and Thailand. However, the vast majority of clients that visit our Ohio-based studio are typically based in and around Cleveland.
Almost 90% of the time, our customers are highly reliant on our team to help them achieve their specific life goals. This has helped us secure a healthy stream of customers who have supported our business for months and even years on end.
We've studied the customer acquisition strategies of our largest competitors and have established that they focus on social media and emails to convert customers. This is mainly because there's an added convenience and confidentiality through these acquisition methods.
Competitor analysis:
| Competitor | Strengths | Weaknesses |
|---|---|---|
| BetterHelp | Established brand, wide reach | Higher price point, less personalised |
| Tony Robbins | Strong marketing, national presence | Generic offering, less specialist focus |
| Mindvalley | Competitive pricing | Standardised, less tailored service |
The Wellness Club’s competitive edge: Specialist expertise, personalised service, and a clear focus on the underserved segment of the market set us apart from the established players listed above.
SWOT analysis:
| Positive | Negative | |
|---|---|---|
| Internal | Strengths: Specialist expertise; experienced founder; strong client relationships; differentiated positioning | Weaknesses: Limited brand recognition as a new entrant; single location; reliance on founder capacity in early years |
| External | Opportunities: Growing market demand; underserved niche segments; digital marketing reach; referral network growth | Threats: Established competitors with greater resources; economic downturn reducing discretionary spend; regulatory changes |
Sales & Marketing Plan
We've drafted a comprehensive sales plan that has been a big part of our business’ success.
Beyond our walk-in clients, which make up 45% of our total sales, we hired a talented web developer who has enhanced the user experience on our website. Since this web page revamp, we've seen an 18% increase in sales online.
We've also recruited a talented sales team that frequents gyms, schools, malls, and office parks to help us drive sales. This strategy has produced surprising results - we've seen a significant increase in email subscribers through this outreach strategy.
What's made us unique in the market is our affordable pricing. Our passion for making life coaching more accessible has helped us catch the attention of the public and ultimately generate sales. It's also helped widen our target audience to younger individuals who are more likely to need our services but may not particularly afford them.
We've predicted that we'll generate at least $2,328,600 over the next 3 years. This forecast is accredited to the growth of the market and our plans to open a second studio.
Additional marketing notes:
Our promotional activities are largely based on social media marketing. For starters, it doesn't put a dent in our marketing budget compared to the wellness magazines that we used to rely on to advertise our business.
We've built a healthy following online by investing in social media ads and recruiting an exceptional freelance social media marketer and photographer.
The development of content that shares what we've learned about life skills has also helped us build a loyal fanbase. This value-added content has helped us amass just under 150,000 page views over the last five years.
Gloria keeps her finger on the pulse regarding the effectiveness of our marketing strategies. The analytics that social media, AI, and other web tools present are second to none.
Operating Plan
Personnel
Vera Thomas — Customer Service Rep
- Ensuring our customer service inquiries are met promptly and effectively
Edwin Bullock — Admin Assistant
- Storing all documents and files safely
- Assisting with customer inquiries when needed
Roger Flack — Social Media Manager (freelance)
- Developing a new social media strategy for the new year
- Working closely with our CEO to ensure all deliverables are met
Gary Oldfield — Photographer
- Capturing quality images for our social media pages and studio
Neville Harris — Senior Life Coach
- Delivering a comprehensive life coaching experience for our clientele
- Continuing to expand their knowledge of innovative life coaching practices
- Training our new life coaches on how to deliver quality coaching sessions
Bruce Parker and Fredrick Fowler — Assistant Lead Coaches
- Working closely with the senior life coach to fulfill the needs of our customers
Frank Pierce — Cleaner
- Ensuring our studio is clean at all times
- Addressing our administrative assistant in the event that petty cash is required for cleaning materials
Management Team
CEO: Gloria Stevens
Gloria Stevens has a deep passion for helping people achieve their life goals and has been doing so ever since she left her executive marketing job at Nikon.
Since then, she's helped grow the business alongside Wellness Club’s co-founder Karen Williams. Her corporate experience has armed her with the ability to make strategic decisions and drive growth for the business.
Her inherent talent for marketing has allowed us to operate without an appointed marketing manager. However, she works closely with a freelance social media manager who oversees the digital marketing aspects of our business.
CFO: Richard Kelly
Richard Kelly ensures that the financial health of our business is up to par. His education at Berkeley and 9 years of industry experience have enabled us to run a financially sound life coaching business.
HR Manager: Brigette Dwight
Brigette has worked for Wellness Club for over 7 years and has recruited excellent individuals who have played a significant role in our current success. She's sought after by various businesses but remains loyal to Wellness Club. Brigette earned her diploma from Georgia Tech.
Financial Plan
Projected Profit or Loss Statement (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Sales | $667,850 | $781,450 | $879,300 |
| Direct Cost of Sales | $36,200 | $42,300 | $47,600 |
| Production Payroll | $152,000 | $188,000 | $214,000 |
| Other Cost of Sales | $11,900 | $13,400 | $15,100 |
| Total Cost of Sales | $200,100 | $243,700 | $276,700 |
| Gross Margin | $467,750 | $537,750 | $602,600 |
| Gross Margin % | 70.0% | 68.8% | 68.5% |
| Operating Expenses | |||
| Sales and Marketing Expenses | |||
| Advertising/Promotion | $26,900 | $31,200 | $34,600 |
| Travel | $3,800 | $4,400 | $4,800 |
| Other Sales and Marketing Expenses | $5,900 | $6,700 | $7,400 |
| Total Sales and Marketing Expenses | $36,600 | $42,300 | $46,800 |
| General and Administrative Expenses | |||
| General and Administrative Payroll | $176,000 | $184,000 | $192,000 |
| Depreciation | $39,143 | $40,429 | $42,500 |
| Dues and Subscriptions | $3,100 | $3,400 | $3,600 |
| Professional Fees | $8,400 | $8,900 | $9,400 |
| Rent | $54,000 | $69,600 | $71,700 |
| Software Purchases | $12,400 | $14,100 | $15,600 |
| Insurance | $7,600 | $8,400 | $9,100 |
| Telephone and Internet Access | $5,600 | $6,200 | $6,600 |
| Utilities | $9,800 | $12,900 | $13,500 |
| Miscellaneous | $14,600 | $16,100 | $17,000 |
| Payroll Taxes | $27,880 | $31,620 | $34,510 |
| Total General and Administrative Expenses | $358,523 | $395,649 | $415,510 |
| Other Expenses | |||
| Consultants | $61,600 | $65,800 | $69,100 |
| Total Other Expenses | $61,600 | $65,800 | $69,100 |
| Total Operating Expenses | $456,723 | $503,749 | $531,410 |
| Profit Before Interest and Taxes | $11,027 | $34,001 | $71,190 |
| EBITDA | $50,170 | $74,430 | $113,690 |
| Interest Expense | $2,853 | $1,670 | $526 |
| Taxes Incurred | $1,717 | $6,790 | $14,839 |
| Net Profit | $6,457 | $25,541 | $55,825 |
| Net Profit/Sales | 1.0% | 3.3% | 6.3% |
Projected Cash Flow Statement (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Cash Received | |||
| Cash from Operations | |||
| Cash Sales | $601,065 | $703,305 | $791,370 |
| Cash from Receivables | $65,767 | $76,441 | $86,462 |
| Subtotal Cash from Operations | $666,832 | $779,746 | $877,832 |
| Additional Cash Received | |||
| New Investment Received | $46,000 | $0 | $0 |
| Subtotal Cash Received | $712,832 | $779,746 | $877,832 |
| Expenditures | |||
| Expenditures from Operations | |||
| Cash Spending | $355,880 | $403,620 | $440,510 |
| Bill Payments | $264,662 | $309,364 | $339,163 |
| Subtotal Spent on Operations | $620,542 | $712,984 | $779,673 |
| Additional Cash Spent | |||
| Long-term Liabilities Principal Repayment | $12,600 | $13,700 | $11,700 |
| Purchase Other Current Assets | $600 | $700 | $600 |
| Purchase Long-term Assets | $38,000 | $9,000 | $14,500 |
| Dividends | $0 | $0 | $24,000 |
| Subtotal Cash Spent | $671,742 | $736,384 | $830,473 |
| Net Cash Flow | $41,090 | $43,362 | $47,359 |
| Cash Balance | $89,090 | $132,452 | $179,811 |
Projected Balance Sheet (in USD):
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Assets | |||
| Current Assets | |||
| Cash | $89,090 | $132,452 | $179,811 |
| Accounts Receivable | $10,018 | $11,722 | $13,190 |
| Inventory and Other Current Assets | $4,600 | $5,300 | $5,900 |
| Total Current Assets | $103,708 | $149,474 | $198,901 |
| Long-term Assets | |||
| Long-term Assets | $274,000 | $283,000 | $297,500 |
| Accumulated Depreciation | ($110,143) | ($150,572) | ($193,072) |
| Total Long-term Assets | $163,857 | $132,428 | $104,428 |
| Total Assets | $267,565 | $281,902 | $303,329 |
| Liabilities and Capital | |||
| Current Liabilities | |||
| Accounts Payable | $15,708 | $18,204 | $19,506 |
| Subtotal Current Liabilities | $15,708 | $18,204 | $19,506 |
| Long-term Liabilities | $25,400 | $11,700 | $0 |
| Total Liabilities | $41,108 | $29,904 | $19,506 |
| Paid-in Capital | $106,000 | $106,000 | $106,000 |
| Retained Earnings | $114,000 | $120,457 | $121,998 |
| Earnings | $6,457 | $25,541 | $55,825 |
| Total Capital | $226,457 | $251,998 | $283,823 |
| Total Liabilities and Capital | $267,565 | $281,902 | $303,329 |
| Net Worth | $226,457 | $251,998 | $283,823 |
3-year profit & loss projection:
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $667,850 | $781,450 | $879,300 |
| Direct labour and contractor costs | $200,100 | $243,700 | $276,700 |
| Gross profit | $467,750 | $537,750 | $602,600 |
| Gross margin | 70% | 69% | 69% |
| Salaries and wages | $203,880 | $215,620 | $226,510 |
| Marketing and advertising | $36,600 | $42,300 | $46,800 |
| Rent and utilities | $63,800 | $82,500 | $85,200 |
| Other operating costs, depreciation, interest and tax | $157,013 | $171,789 | $188,265 |
| Total operating expenses, interest and tax | $461,293 | $512,209 | $546,775 |
| Net profit / (loss) | $6,457 | $25,541 | $55,825 |
Break-even analysis:
- Estimated monthly fixed costs: $38,100
- Monthly revenue required to break even: $54,400
- Projected Year 1 sales average $55,654 a month, above the break-even level.
That is the example. For your own business, the life coaching business plan template walks you through each section.