Looking for a day spa business plan? You're in the right place.
A spa plan gets read by a banker or an investor with a short list of questions. How many treatment rooms, and how many hours can each therapist sell? What does a member pay, and how many cancel each month? How much cash does the spa burn before the memberships cover the payroll? A general template will not answer any of them.
This article walks through a complete sample plan for a day spa in Omaha, Nebraska, from the executive summary and SWOT to the five-year financials. The spa is fictional. The structure, and the way the numbers connect, are what to borrow.
What the plan gives you to work from:
- The executive summary: a one-page version of the spa, so a reader sees the ask, the rooms and the pricing before page two
- The membership model: how dues, cancellations and unused treatments turn into monthly revenue you can forecast
- The competitor and SWOT tables: a way to describe nearby spas honestly without naming a rival you cannot source
- Staffing against bookings: when each therapist and esthetician is hired, and the treatments per week each one has to deliver
- Gift-card and seasonal planning: where December, Valentine's Day and Mother's Day show up in the first twelve months
- The funding table and five-year statements: what the opening costs, what the lender sees, and when the spa starts paying owners
- The downside case: a 20% shortfall in bookings, and the steps management takes to stay solvent
- The stress tests and lender questions: how far cancellations, wages or a late opening move the result, and what a bank would still ask
If you are opening a spa, read this before you write your own. Keep what fits your market and change the rest.
In this plan
Want a day spa business plan you can edit for your own business? Get the day spa business plan template and build it in the Toolkit.
Ridge Fell at a Glance
Ridge Fell is a day spa that opens in January 2027 in a leased 2,800-square-foot unit in West Omaha, Nebraska. It sells massage, facials and body treatments to adults of every gender, with a monthly membership at the center of the business. Dana Whitcomb, a licensed massage therapist, owns 55% of the company. Two local private investors own the other 45%, 22.5% each.
The spa raises $685,000: $120,000 from Dana, $220,000 from the two investors and a $345,000 bank term loan. Of that, $330,000 pays for the build-out and equipment, $30,000 buys opening stock, $99,600 covers start-up costs expensed at opening and $225,400 is held as a cash reserve.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $714,827 | $1,097,000 | $1,297,000 |
| Net income after start-up costs | ($220,334) | $34,439 | $86,509 |
| Closing cash | $130,015 | $177,313 | $274,186 |
Seventy founding members are signed before the doors open, and the spa bills 318 members a month by December 2027. Year 1 loses money because six rooms, a front desk and four therapists are on payroll by October while the membership base is still forming. EBITDA turns positive in September 2027 and stays positive through December. Years 2 to 5 are profitable but thinly so: the net margin is 3.1% in Year 2 and 6.7% in Year 5.
The plan is fragile and says so. With no management response, revenue 10% below plan turns Years 2 and 3 into losses, and cancellations of 6% a month instead of 4% leave every year from Year 2 loss-making. A 20% shortfall in bookings is tested with responses: provider hours cut by a fifth from month 5, Dana's pay cut from month 7, later hires pushed back six months, marketing trimmed from Year 2 and no distributions. The spa then ends every year with cash in the bank, never below $59,650, loses $9,538 in Year 2 and earns $6,402 in Year 3. Debt cover in that case is 1.06x in Year 2, under a likely 1.25x test, and it is negative in Year 1 even in the base case, so the owners would ask the bank to waive the tests for 2027 and 2028.
The Spa and Its Rooms
Legal name: Ridge Fell Day Spa, LLC, a Nebraska limited liability company. Owners: Dana Whitcomb 55%; two private investors 22.5% each. Premises: 2,800 square feet in a West Omaha retail center, on a five-year lease with two five-year renewal options. Opening: January 2027, after a nine-week build-out.
What the spa sells
Quiet, skilled treatments at a price a regular can afford every month. The rooms are built for that: six treatment rooms, one of them a couples suite with two tables, a small relaxation lounge with tea, two showers and an on-site laundry so linens never leave the building.
Menu and prices (Year 1)
| Treatment | List price | Share of Year 1 revenue |
|---|---|---|
| Massage, 60 or 90 minutes | $125 / $170 | 28% pay per visit; part of memberships |
| Facials and skin treatments, 50 minutes and up | $135 to $165 | 19% pay per visit; part of memberships |
| Body treatments, couples sessions and group events | $120 to $185 a guest | 11% |
| Monthly membership | $99 a month | 33% |
| Retail skin care and gifts | Product price | 9% |
Goals
- Reach 318 billed members by December 2027, starting from 70.
- Turn a profit in 2028, the second year, after a first-year loss.
- Hold payroll near 51% of revenue once the team is full.
- Begin owner distributions in 2030, the fourth year, only from cash the forecast shows the spa can spare.
Licensing in Nebraska
The Nebraska Department of Health and Human Services licenses massage therapists and, separately, massage therapy establishments, and licenses estheticians through the department as well. Dana's therapist license is in place before the establishment applies. The American Massage Therapy Association's Nebraska profile lists 1,000 hours of education for massage therapists. Hours, exams and fees are set by the state and can change. Ridge Fell confirms the current requirements for both licenses with the department before it hires, verifies each provider's active license before the first appointment and carries $5,000 for the establishment license, business licenses and permits, a planning figure. A late license delays opening, and the stress tests price a two-month delay.
Omaha's Spa Market
Who sells what nearby
The Omaha metro has hotel and resort spas, franchised membership massage studios, independent salon-spas, medical spas that lead with injectables and lasers, and a large number of solo practitioners renting a room. No competitor figures are quoted here. Each category is described by what it sells.
| Type of competitor | What it sells | Why a guest chooses it | Where Ridge Fell is different |
|---|---|---|---|
| Franchised membership massage studios | Short, repeat massage on a monthly plan | Convenience and a known price | Longer rooms, facials and body work under one membership, and the same therapist where possible |
| Hotel and resort spas | Full menu, higher prices | Occasion and amenities | A weekday price a local resident pays monthly |
| Independent salon-spas | Hair and nails first, spa second | One stop for several services | Treatment-only: no hair, no nails, no noise from a salon floor |
| Medical spas | Injectables, lasers, clinical skin care | Visible results | Relaxation and skin health without a medical practice behind it |
| Solo practitioners | A single modality in a rented room | Lowest price, personal relationship | More rooms and hours, a laundry, evening and Sunday bookings |
The table sets out what each category offers and how Ridge Fell positions itself. It is not a ranking, and the spa's own prices are set after a visit to nearby menus before opening.
Labor supply and pay
The Bureau of Labor Statistics put the median pay of massage therapists at $58,450 a year in May 2025 and projects employment growth of 15% from 2025 to 2035. For skincare specialists it reports a 2025 median of $45,330 and growth of 9% over the same period. Both are national figures. Ridge Fell pays a base wage of $40,000 to therapists and $38,000 to $44,000 to estheticians. At the plan's tipping rate of about 15% of service value, a therapist delivering 21 treatments a week collects roughly $21,000 in tips on top of the base, which puts total earnings near the national median. An esthetician's base plus tips sits above the national figure.
A growing occupation also means other spas compete for the same therapists. The plan answers with pay near the median, a 3% annual raise for everyone on payroll and a recruiting allowance inside the license-and-education line.
Hourly pay, commission and tips
Therapists and estheticians are employees paid by the hour for scheduled time, and every tip goes to the provider. The two alternatives each carry a cost. A per-treatment commission ties pay to bookings but pays nothing for idle hours, which is hard to hold in the first six months while calendars fill. Renting rooms to independent contractors suits a solo practitioner and fits poorly with a spa that sets the schedule, the menu and the prices, since that control is what usually points to employment. The owner confirms worker classification with an employment lawyer before the first offer.
Tips are modeled at about 15% of service revenue. The spa owes the employer share of Social Security and Medicare tax on reported tips, 7.65%, which the 27% on-cost on base wages does not cover. That is $7,500 in Year 1 and $15,800 in Year 5, shown as its own line in the earnings table.
Every hourly rate sits above the state minimum wage. Nebraska's rate was $15.00 an hour in 2026 and is scheduled to rise 1.75% each January, to about $15.26 in 2027, against $16.35 an hour for the lowest rate in the plan (the part-time attendant) and $22.60 for a therapist's base. The federal minimum is $7.25. The owner confirms the rate that applies in Omaha with the Nebraska Department of Labor before offers go out. The spa manager is the one salaried employee besides Dana. Whether $48,000 clears the federal salary floor for exempt roles in 2028 is checked with the U.S. Department of Labor before the offer, and if it does not the role is paid by the hour with overtime.
SWOT
| Strengths | Weaknesses |
|---|---|
| A founder who has run a spa floor and still works treatments | Year 1 loses money and draws on the reserve |
| Seventy members signed before opening | A single location with one lease |
| Memberships that bill monthly and predict cash | Dependent on four or five key therapists early on |
| Opportunities | Threats |
|---|---|
| Employers and wedding parties buying gift cards and group sessions | A franchise studio opening within a few minutes' drive |
| Men and couples, groups that many spas under-serve | Therapists leaving and taking regular guests |
| Referrals from physical therapists and chiropractors | A softer economy trimming memberships first |
Who Books and Who Joins
Four kinds of guest make up the plan.
The monthly regular. Women and men aged 30 to 60 with desk jobs, sore shoulders or a stressful month, who book one massage or facial every four weeks. These guests become members. They are about 400 of the first-year sign-ups.
The gift buyer. Someone buying for a birthday, a retirement or a thank-you. Gift cards are the front door for many first visits. The plan puts about 20% of pay-per-visit and retail revenue, around $96,000 in Year 1, on gift cards.
The couple or group. Anniversaries, bridal parties and office outings. They book the couples suite and the body-treatment line, and they arrive in clusters around holidays and wedding season.
The referral from a clinic. A physical therapist or chiropractor sends someone for muscle work. Volumes are small in Year 1 and steady afterwards.
Men are about a quarter of the first-year client mix in the plan. The waiting area, the product shelf and the menu are written for them as much as for anyone else.
Winning Members and Gift Buyers
What a membership is
A member pays $99 a month for one 60-minute massage or 50-minute facial, a discount of 15% to 20% on extra treatments and on retail, and a rollover of one unused credit into the next month. The plan expects members to redeem 0.85 treatments a month on average, so the effective price per treatment is about $116 against a blended pay-per-visit ticket of about $143 in Year 1.
Four percent of members cancel each month in the plan. That is an average stay of about 25 months.
How the first-year membership count builds
| Founding members | Added after opening (gross) | Cancelled | Billed in December | |
|---|---|---|---|---|
| Year 1 | 70 | about 330 | about 82 | 318 |
Dues revenue is billed members times the monthly price. Over Years 2 to 5 the average number billed is about 365, 429, 467 and 477, and the price steps up $3 a year, about 3%. Holding cancellations at 4%, that takes roughly 250 new members a year through Year 4.
How a first visit becomes a membership
A new guest books online or at the desk. The therapist offers membership at the end of the first visit, with the first month's credit already applied. A guest who joins keeps the same therapist for as long as scheduling allows. Gift-card holders get an email after redemption with a founding-rate offer for the following 14 days.
Gift cards and what happens to them
Gift cards are sold in the spa, online and through employers. Revenue is counted when the card is redeemed, so November and December sales appear as revenue in December, January and February. Cards do not expire in the plan, and no breakage income is booked for cards that are never redeemed. Nebraska's rules on gift certificates and unclaimed property are reviewed with counsel before the first card is sold.
Where the $92,000 Goes
Marketing spend and what it buys
Year 1 marketing is $92,000: $30,000 of launch costs paid from start-up capital and $62,000 of running costs. That is 13% of Year 1 revenue. The share falls to about 5% in Years 2 and 3 and 4.4% in Year 5 as members refer friends. Year 1 brings about 400 member sign-ups and about 1,100 new pay-per-visit guests, 1,500 in all, so each new guest costs about $61 to win, about 60% of one month's dues. Charged to members alone, the $92,000 is about $230 a member, a little over two months of dues. The $58,000 Year 2 budget works out to about the same figure across roughly 250 new members.
| Channel | Year 1 spend | What it is expected to do |
|---|---|---|
| Brand, website and booking system (launch) | $12,000 | Online booking, membership sign-up and gift-card checkout live before opening |
| Founding-member campaign (launch) | $10,000 | Mailers and a pre-sale tasting evening that sign 70 founding members |
| Opening event, photography and signage (launch) | $8,000 | A visible storefront and a launch week with local press |
| Paid search and social | $20,000 | Searches such as "massage Omaha" and "facial near me" |
| Gift-card promotions | $9,000 | Valentine's Day, Mother's Day and holiday campaigns |
| Employer and wedding-planner partnerships | $8,000 | Corporate gift cards and bridal party packages |
| Email, text and member referral credits | $9,000 | Rebooking reminders and a $20 credit for each referred member |
| Local PR, events and sponsorships | $6,000 | Charity auctions, community events |
| Reviews, local listings and search | $6,000 | Reviews and a complete Google business profile |
| Photography and content | $4,000 | Treatment-room photos and service pages |
Marketing milestones
- January 2027: doors open with 70 founding members and a booking calendar about half full.
- May 2027: 170 members billed, Mother's Day gift cards sell.
- September 2027: 250 members, and EBITDA turns positive.
- December 2027: 318 members billed and $99,682 of monthly revenue.
A Day on the Floor
The unit
2,800 square feet at an all-in rent of $27 a square foot a year, which covers base rent, shared costs and property taxes: $75,600 in Year 1. Rent rises 3% a year. The plan expects the landlord to abate rent through the nine-week build-out and to contribute a $50,000 improvement allowance. Both are negotiating targets. The unit holds six rooms (one is a couples suite with two tables), a lounge, a laundry room, two showers, a retail wall and a small staff room.
Provider hours, not rooms, set the ceiling through Year 3. After that the table hours start to matter: the seven tables are in use about half of open hours at Year 3 volumes and 55% at Year 5, and weekday evenings and Saturdays fill well before the average does.
Hours and scheduling
The spa opens six days a week, ten to eight on weekdays and ten to five on Saturday, 57 hours in all, with Sunday by appointment for members. Therapists and estheticians are hourly employees on a schedule built from the booking calendar, so hours follow demand. A full-time provider is paid for about 34 hours and delivers about 21 treatments a week.
The front desk has a full-time coordinator for 40 hours and a part-time hire for about 22 hours of evenings and weekends: 62 hours against 57 open, with almost no cover for a sick day. Dana covers the desk then, and from month 6 so does the part-time attendant. In months 1 to 5 the laundry falls to therapists between guests. No overtime premium is budgeted: providers are scheduled at 34 hours and the coordinator at 40, so any added shift in December costs time and a half.
Treatment capacity against revenue
| Year 1 | Year 3 | Year 5 | |
|---|---|---|---|
| Member treatments redeemed | about 2,020 | about 4,370 | about 4,860 |
| Pay-per-visit treatments | about 2,910 | about 4,250 | about 4,580 |
| Average provider full-time equivalents (owner counted at 0.4) | 5.2 | 7.9 | 8.9 |
| Treatments per provider per week | about 18 | about 21 | about 20 |
| Share of table hours in use (seven tables, 57 open hours) | about 29% | about 50% | about 55% |
Annual averages hide the shape of Year 1. The table below shows the load in the months where it is highest or changes, on the hire dates in the personnel table.
| Month (2027) | Treatments a week | Therapists on schedule | Per therapist | Estheticians on schedule | Per esthetician |
|---|---|---|---|---|---|
| March | 66 | 2.4 | 18.6 | 1.0 | 21.0 |
| June | 97 | 3.4 | 19.3 | 2.0 | 15.9 |
| September | 109 | 3.4 | 21.8 | 2.0 | 17.3 |
| November | 135 | 4.4 | 20.9 | 2.5 | 17.3 |
| December | 157 | 4.4 | 24.0 | 2.5 | 20.7 |
Treatments are split between the two groups as the inputs describe: redeemed credits 75% massage and 25% facial, body treatments 70% therapists. Dana counts as 0.4 of a therapist and the part-time esthetician as 0.5. The thin months are September and December, when each therapist carries 22 to 24 treatments a week against the 21 the plan pays for, and March, when the lead esthetician carries 21 alone before the second esthetician starts in April. At 24 treatments a therapist is on the table about 29 of 34 paid hours, 85%, against 74% at the planning rate, so December depends on a tightly managed schedule. The early months run the other way: January to August has idle provider time, which is part of the Year 1 loss.
Linens, products and inventory
Linens are washed on site. Retail and treatment products are held at $30,000 of stock, which turns about 2.9 times in Year 1 and about 5.2 times in Year 3 as sales catch up with the opening order. Retail goods carry a 52% cost rate and are about 9% of revenue. A vendor with a 15-day payment term supplies most of the skin care.
Software and payments
One platform handles online booking, membership billing, gift cards and point of sale: $14,000 in Year 1, $21,000 by Year 5. Card and membership-billing fees run about 2.9% of revenue.
Insurance and safeguards
- Professional liability for every provider, general liability, property, cyber and employment-practices cover, budgeted at $15,000 in Year 1 and $19,000 by Year 5 as a planning figure that a broker's quote replaces. Workers' compensation sits inside the 27% payroll on-cost.
- A written intake form and contraindication check before each treatment.
- Written cancellation and membership terms, shown at sign-up.
- Linen and product-handling procedures posted in the laundry room.
The Team
Dana Whitcomb, owner and general manager
Dana has fourteen years in the trade: nine as a massage therapist and five running the treatment floor of a resort spa outside Nebraska. She holds a Nebraska massage therapy license (to be in place before opening) and works about 0.4 of a full-time therapist's schedule alongside managing. Her $68,000 salary is in the costs, so profit in the tables is what remains after she is paid.
Who joins and when
Opening day has Dana, two therapists, a lead esthetician, a front-desk coordinator and a part-time front-desk hire. A third therapist and a second esthetician join in month 4, a part-time spa attendant in month 6 and a fourth therapist in month 10. A part-time esthetician follows in month 11, a fifth therapist in month 20 and a spa manager in month 22. A second senior esthetician joins in month 40. Each hire follows booked hours, and the capacity table above shows where the schedule is thin before a hire arrives.
What the team lacks
Dana has not raised outside capital, has not signed a lease for a spa of her own and has not run a membership base from zero. The plan covers these with an accountant who reviews the numbers monthly, a lease reviewed by counsel before signing and a membership dashboard that tracks cancellations weekly.
If a key therapist leaves
Guests follow therapists. Rebooking is offered by treatment type and time first, so a guest whose therapist has left is placed with a colleague rather than lost, and non-solicitation terms in employment agreements are reviewed with an employment lawyer.
Ownership and the bank
Dana owns 55%; the two investors own 45% between them for $220,000. The bank takes Dana's personal guarantee, a lien on the equipment and a covenant to deliver quarterly accounts. Who else signs a guarantee is on the lender list below.
Five Years of Numbers
One five-year model sits behind every table here: month by month for 2027, then a full year at a time. The inputs come first, so each figure can be traced to the choice that produced it. Three limits apply throughout. Years 2 to 5 are annual figures with no seasonality. The monthly view spreads each year's costs evenly and has no receivables timing. The tax line charges corporate rates on operating profit without the start-up costs or the federal cap on old-loss deductions.
Funding the Opening
| Use of funds | Amount |
|---|---|
| Build-out: six treatment rooms, laundry, two showers, lounge ($295,000 gross, $105 a square foot, less a $50,000 landlord allowance) | $245,000 |
| Massage tables, facial beds, steamers, washer and dryer, furniture, POS, sound | $85,000 |
| Opening stock: retail skin care and treatment products | $30,000 |
| Lease security deposit (two months of rent; refundable at lease end but treated as spent here) | $12,600 |
| Establishment license, business licenses, permits | $5,000 |
| Lease counsel, entity set-up, architect drawings and permit fees, accountant, plan review | $22,000 |
| Launch: brand, site and booking system, founding-member campaign | $30,000 |
| Hiring, training and payroll for the month before opening | $30,000 |
| Cash reserve for the ramp, the summer dip and a late opening | $225,400 |
| Total uses | $685,000 |
| Source of funds | Amount |
|---|---|
| Dana Whitcomb's savings | $120,000 |
| Two Omaha private investors (common equity) | $220,000 |
| Bank term loan (SBA-guaranteed structure) | $345,000 |
| Total sources | $685,000 |
Dana contributes $120,000 from savings, 17.5% of the $685,000 raise, and owns 55% of the company. Two Omaha private investors contribute $220,000 for the other 45%, 22.5% each. They pay about 2.2 times Dana's price per point because her stake also covers her license, the pre-opening work and the guarantees she signs on the lease and the loan. A bank lends $345,000 over ten years at 10.5% with six months of interest-only payments, modeled on an SBA-guaranteed loan. The rate is a planning figure and not a quote. Equity makes up 49.6% of the raise. The bank takes Dana's personal guarantee and a lien on the equipment, and SBA's lender rules have required a guarantee from every owner of 20% or more, which would reach both investors. The build-out is $295,000 gross, $105 a square foot, less a $50,000 landlord allowance that is a negotiating target; without it the raise would be $50,000 higher. The $225,400 reserve covers the Year 1 loss before dues catch up with a payroll of eight full-time and three part-time people, a two-month delay in opening if hiring moves with it, and the 20% shortfall case below. The lowest month-end balance in the base case is about $81,000, against $130,015 at the end of Year 1. The lease deposit is booked as spent, so no cash figure in this plan includes it.
Inputs behind the forecast
- Membership dues are $99 a month in Year 1 and rise $3 a year. The spa bills 70 founding members in January and 318 in December, an average of about 198 over the year. Four percent of members cancel each month, so about 400 members join in Year 1: the 70 founding members plus about 330 added later, less about 82 cancellations. Years 2 to 5 average 365, 429, 467 and 477 billed members, which at the same cancellation rate takes roughly 250 new members a year through Year 4 and 225 in Year 5.
- A member redeems 0.85 treatments a month on average, so the 2,373 member-months of Year 1 use about 2,020 treatment slots. Dues buy a slot at about $116, against an average pay-per-visit ticket of about $143. Redeemed treatments carry the same direct costs as paid ones, and the dues line carries a 6% direct-cost rate for that reason. For the staffing figures, redeemed credits split 75% massage and 25% facials.
- Pay-per-visit tickets average $135 for massage (a mix of 60 and 90 minutes), $150 for facials with add-ons and $155 a guest for body, couples and group work. Prices rise about 3% a year. Year 1 holds about 2,910 pay-per-visit treatments: about 1,470 massages, 930 facials and 520 body treatments.
- Gift cards are about 20% of pay-per-visit and retail revenue, around $96,000 in Year 1, and are counted as revenue when redeemed. The model does not show the cash that arrives in November and December ahead of redemption, so it understates winter cash. No breakage income is booked: a card that is never redeemed would add to profit, and the plan counts none. Retail is about 9% of revenue in every year, with goods priced to a 48% gross margin.
- Each full-time provider is paid for about 34 hours a week and delivers about 21 treatments, roughly 1,090 a year. Year 1 uses 5.2 provider full-time equivalents on average, with the owner counted at 0.4, Year 3 uses 7.9 and Year 5 uses 8.9. For the load figures, body treatments go 70% to therapists and 30% to estheticians. A treatment occupies a table for about 1.2 hours with turnover, and seven tables over 57 open hours a week give about 20,700 table-hours a year, so Year 3 volumes use about half of them. Averages hide peaks: December 2027 runs near 23 treatments per provider-week, and weekday evenings and Saturdays fill before the average does.
- Therapists earn a $40,000 base wage, about $22.60 an hour over 34 paid hours, and estheticians $38,000 to $44,000, with hours scheduled to bookings. Tips go to the providers and are in neither revenue nor wages. The spa pays the employer share of Social Security and Medicare tax on them, 7.65% of tips, modeled with tips at about 15% of service revenue: $7,500 in Year 1 and $15,800 in Year 5. Payroll adds 27% to wages for payroll taxes, workers' compensation, health contributions and paid leave (15% for part-time roles). The lowest hourly rates are about $16.35 for the part-time attendant ($17,000 for roughly 1,040 hours) and $16.67 for the part-time front desk ($19,500 for roughly 1,170 hours), above the state minimum wage ($15.00 in 2026, scheduled to rise 1.75% each January from 2027). The personnel table shows launch rates, and annual raises of 3% are charged as a separate line from Year 2.
- Direct costs average 12.0% of revenue in Year 1: retail goods carry a 52% cost rate, facial products 14%, body treatments 12%, massage oils and consumables 5% and dues 6%. The engine applies the Year 1 blend to every year. As dues grow from 33% to 42% of revenue the true blend drifts toward 11.6%, a cushion of roughly $4,500 to $6,000 a year in Years 3 to 5. Inventory is held at the opening $30,000. It turns about 2.9 times in Year 1 and about 5.2 times in Year 3, because the opening order is sized ahead of sales.
- The unit is 2,800 square feet at an all-in $27 a square foot a year, covering base rent, shared costs and property taxes: $75,600 in Year 1, rising 3% a year, with a deposit of two months. The plan expects the landlord to abate rent through the nine-week build-out; if it does not, about $12,600 more comes from the reserve. Utilities of $19,000 in Year 1 reflect hot water, laundry and steam equipment. Card and membership-billing fees run 2.9% of revenue. Linens and treatment-room consumables run about 3% of revenue. Insurance is $15,000 in Year 1 for general and professional liability, property, cyber and employment-practices cover, a planning figure for a broker to replace with a quote. Workers' compensation sits inside the 27% payroll on-cost.
- The build-out is $295,000 gross, $105 a square foot, for a second-generation salon or wellness suite where plumbing and ventilation already exist. Mindbody's rule of thumb for finished spa construction is $90 to $130 a square foot (page updated March 11, 2025). Wet rooms, the laundry and sound control sit inside the figure. No separate contingency is carried, so a 10% overrun, $29,500, would come from the reserve. The five-year lease has two five-year renewal options, and the improvements are written off over ten years.
- Receivables average 2 days, because nearly all revenue is collected by card or membership debit when service is delivered. Suppliers are paid in 15 days. The equipment replacement line starts in Year 2, once the opening tables, steamers and washer have run for a year.
- Tax is charged at the federal corporate rate of 21% and a planning rate of 5.6% for Nebraska, after the Year 1 loss is carried forward. Nebraska has been lowering its corporate rate by statute, so the owners confirm the figure for 2027 and later with the Nebraska Department of Revenue. The tax base leaves out the start-up costs, which would lower tax, and the federal cap that limits loss carryforwards to 80% of taxable income (26 U.S.C. 172), which would raise it; the two omissions pull in opposite directions. An LLC would normally pass the tax to its owners' returns, and corporate rates are used here as a cautious estimate.
- Distributions of $30,000 in Year 4 and $60,000 in Year 5 are shared 55% to Dana and 45% to the investors. Each stays under that year's net income, but cumulative net income after start-up costs is ($9,094) at the end of Year 4 and $91,111 at the end of Year 5. The Year 4 payment is therefore paid while cumulative net income is still negative, so against cumulative earnings all $30,000 of it returns capital, and by Year 5 cumulative distributions of $90,000 sit just under cumulative net income. A lender is likely to restrict them until debt cover stays above 1.25x.
- Stress tests on the same model follow the financial statements. They show a thin base: revenue 10% under plan with no response loses money in Years 2 and 3, and cancellations of 6% a month leave every year from Year 2 loss-making.
Revenue by line
| Revenue stream | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Massage (pay per visit and packages) | $198,500 | $270,000 | $310,000 | $335,000 | $350,000 |
| Facials and skin treatments (pay per visit) | $139,000 | $185,000 | $215,000 | $235,000 | $248,000 |
| Body treatments, couples and group events | $80,000 | $100,000 | $120,000 | $132,000 | $140,000 |
| Monthly memberships (dues) | $234,927 | $447,000 | $540,000 | $605,000 | $635,000 |
| Retail skin care and gifts | $62,400 | $95,000 | $112,000 | $122,000 | $128,000 |
| Total revenue | $714,827 | $1,097,000 | $1,297,000 | $1,429,000 | $1,501,000 |
| Growth on prior year | – | 53% | 18% | 10% | 5% |
Dues grow from 33% of Year 1 revenue to 42% in Year 5, which is the point of the membership model: it turns a seasonal business into one with a floor. Massage is the largest pay-per-visit line and retail is about 9% of revenue in every year. Growth slows from 53% in Year 2 to 5% in Year 5. Provider hours set the ceiling in the first three years. After that the busiest table slots fill first, so later growth leans on price and on slower mid-week hours more than on new bookings. Years 2 to 5 are annual figures, so the summer dip and holiday peak shown for 2027 are not repeated in the model.
Month by month, first year
| Month | Massage (pay per visit and packages) | Facials and skin treatments (pay per visit) | Body treatments, couples and group events | Monthly memberships (dues) | Retail skin care and gifts | Total revenue | EBITDA |
|---|---|---|---|---|---|---|---|
| Jan 2027 | $6,500 | $4,500 | $2,000 | $6,930 | $2,300 | $22,230 | ($36,880) |
| Feb 2027 | $10,000 | $7,000 | $4,000 | $9,504 | $3,200 | $33,704 | ($26,779) |
| Mar 2027 | $13,000 | $8,500 | $4,500 | $11,979 | $3,800 | $41,779 | ($19,670) |
| Apr 2027 | $14,500 | $9,500 | $5,000 | $14,454 | $4,300 | $47,754 | ($14,410) |
| May 2027 | $17,500 | $12,000 | $8,500 | $16,830 | $5,100 | $59,930 | ($3,691) |
| Jun 2027 | $17,500 | $12,500 | $7,000 | $19,008 | $5,300 | $61,308 | ($2,478) |
| Jul 2027 | $16,500 | $11,500 | $6,500 | $20,988 | $5,100 | $60,588 | ($3,111) |
| Aug 2027 | $16,000 | $11,000 | $6,000 | $22,770 | $4,900 | $60,670 | ($3,039) |
| Sep 2027 | $17,500 | $12,500 | $7,000 | $24,750 | $5,500 | $67,250 | $2,754 |
| Oct 2027 | $20,000 | $14,000 | $8,000 | $26,928 | $6,100 | $75,028 | $9,601 |
| Nov 2027 | $22,500 | $16,000 | $9,500 | $29,304 | $7,600 | $84,904 | $18,295 |
| Dec 2027 | $27,000 | $20,000 | $12,000 | $31,482 | $9,200 | $99,682 | $31,305 |
January is a half-month with the doors opening mid-way. Revenue climbs each month to June, holds near $60,000 through the summer and rises again from September to a December peak driven by gift-card redemptions and holiday bookings. EBITDA is negative from January to August and positive from September to December. The lowest month-end cash balance on this view falls in September, at about $81,000, the month EBITDA turns positive. That is a different date from the $130,015 closing balance for the year, and like every cash figure here it leaves out the lease deposit, which the model treats as spent. The view spreads the year's $414,601 of payroll evenly at about $34,550 a month. With the real hire dates, payroll including on-costs runs near $26,000 a month in the first quarter and near $42,000 in November and December, so the early months look worse and the autumn months better than they will be, and the true low comes later and higher than shown. The view has no receivables timing and no deferred gift-card cash, so the low is approximate.
Who is on the schedule
| Role | Annual wage | Starts | Year 1 end | Year 2 end | Year 3 end | Year 4 end | Year 5 end |
|---|---|---|---|---|---|---|---|
| Owner, general manager and massage therapist | $68,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Massage therapist, first hire | $40,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Massage therapist, second hire | $40,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Lead esthetician | $44,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Front-desk and booking coordinator | $36,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Front desk, evenings and weekends (part time) | $19,500 | Month 1 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Massage therapist, third hire | $40,000 | Month 4 | 1 | 1 | 1 | 1 | 1 |
| Esthetician, second hire | $38,000 | Month 4 | 1 | 1 | 1 | 1 | 1 |
| Spa attendant and laundry (part time) | $17,000 | Month 6 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Massage therapist, fourth hire | $40,000 | Month 10 | 1 | 1 | 1 | 1 | 1 |
| Esthetician (part time, 20 hours a week) | $22,000 | Month 11 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Massage therapist, fifth hire | $40,000 | Month 20 | – | 1 | 1 | 1 | 1 |
| Spa manager | $48,000 | Month 22 | – | 1 | 1 | 1 | 1 |
| Second senior esthetician | $42,000 | Month 40 | – | – | – | 1 | 1 |
| Total payroll incl. on-costs | $414,601 | $543,102 | $618,455 | $658,460 | $671,795 |
Eight full-time people and three part-time staff are on payroll at the end of Year 1, rising to eleven full-time and three part-time by Year 4. The third therapist and the second esthetician start in month 4, the fourth therapist in month 10 and a part-time esthetician in month 11, each timed so that provider load stays near the 21 treatments a week the plan pays for. The operating section shows the months where it does not. The fifth therapist joins in month 20 and the spa manager in month 22, so that Dana can spend more of her week on membership, hiring and the lender relationship. Dana's $68,000 salary is already in the costs, so profit means what remains after she is paid. Providers and front-desk staff are paid by the hour, Dana and the manager by salary. Part-time wages are annual-equivalent amounts.
Earnings
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $714,827 | $1,097,000 | $1,297,000 | $1,429,000 | $1,501,000 |
| Direct costs (treatment products, cost of retail goods) | ($85,529) | ($131,255) | ($155,185) | ($170,979) | ($179,594) |
| Gross profit | $629,298 | $965,745 | $1,141,815 | $1,258,021 | $1,321,406 |
| Payroll incl. on-costs | ($414,601) | ($543,102) | ($618,455) | ($658,460) | ($671,795) |
| Rent | ($75,600) | ($77,900) | ($80,200) | ($82,600) | ($85,100) |
| Utilities | ($19,000) | ($19,600) | ($20,200) | ($20,800) | ($21,400) |
| Marketing | ($62,000) | ($58,000) | ($62,000) | ($64,000) | ($66,000) |
| Insurance | ($15,000) | ($16,000) | ($17,000) | ($18,000) | ($19,000) |
| Professional fees | ($7,000) | ($7,500) | ($8,000) | ($8,500) | ($9,000) |
| Software subscriptions | ($14,000) | ($17,000) | ($19,000) | ($20,000) | ($21,000) |
| Card and membership-billing fees (about 2.9% of revenue) | ($20,700) | ($31,800) | ($37,600) | ($41,400) | ($43,500) |
| Employer payroll tax on tips (7.65% of tips; tips at about 15% of service revenue) | ($7,500) | ($11,500) | ($13,600) | ($15,000) | ($15,800) |
| Linen, laundry supplies and treatment-room consumables | ($21,000) | ($30,000) | ($36,000) | ($39,000) | ($41,000) |
| Cleaning contract and waste removal | ($9,000) | ($9,500) | ($10,000) | ($10,500) | ($11,000) |
| License renewals, continuing education and recruiting | ($5,000) | ($6,500) | ($7,000) | ($7,500) | ($8,000) |
| Repairs, music licensing and decor refresh | ($5,000) | ($7,000) | ($8,000) | ($9,000) | ($10,000) |
| Table, steamer and laundry equipment replacement | $0 | ($6,000) | ($9,000) | ($12,000) | ($14,000) |
| Bad debt, chargebacks and gift-card write-offs | ($2,000) | ($3,000) | ($3,500) | ($4,000) | ($4,200) |
| Annual pay raises (3% a year) | $0 | ($16,293) | ($37,664) | ($61,057) | ($84,316) |
| EBITDA | ($48,102) | $105,050 | $154,596 | $186,204 | $196,295 |
| Depreciation | ($36,643) | ($36,643) | ($36,643) | ($36,643) | ($36,643) |
| Interest | ($35,989) | ($33,969) | ($31,371) | ($28,488) | ($25,286) |
| Income tax | $0 | $0 | ($73) | ($30,782) | ($34,161) |
| Net income before start-up costs | ($120,734) | $34,439 | $86,509 | $90,292 | $100,205 |
| Start-up costs expensed at opening (counsel, licensing, launch marketing, pre-opening payroll, lease deposit) | ($99,600) | $0 | $0 | $0 | $0 |
| Net income after start-up costs | ($220,334) | $34,439 | $86,509 | $90,292 | $100,205 |
Year 1 loses $120,734 before start-up costs and $220,334 after the $99,600 of start-up costs expensed at opening. EBITDA, profit before interest, depreciation and tax, is -6.7% of revenue in Year 1, 9.6% in Year 2, 11.9% in Year 3 and 13.0% to 13.1% in Years 4 and 5. Year 2 is the first profitable year, at $34,439. Income tax is zero in Years 1 and 2 and $73 in Year 3, because the early losses absorb the profit, then $30,782 in Year 4 and $34,161 in Year 5. Net income after tax is $86,509 in Year 3 and $100,205 in Year 5, a 6.7% net margin.
Where the cash goes
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Cash from operations | ($214,094) | $70,866 | $123,039 | $126,860 | $136,807 |
| Build-out and equipment | ($330,000) | $0 | $0 | $0 | $0 |
| Funding received | $685,000 | $0 | $0 | $0 | $0 |
| Loan principal repaid | ($10,892) | ($23,568) | ($26,166) | ($29,049) | ($32,251) |
| Owner distributions | $0 | $0 | $0 | ($30,000) | ($60,000) |
| Net change in cash | $130,015 | $47,298 | $96,874 | $67,811 | $44,557 |
| Closing cash | $130,015 | $177,313 | $274,186 | $341,998 | $386,554 |
Cash from operations is ($214,094) in Year 1, and $330,000 goes to the build-out and equipment. Closing cash is $130,015 after Year 1, $177,313 after Year 2 and $386,554 after Year 5, even with $90,000 of owner distributions in Years 4 and 5 and loan principal repaid on schedule. Each distribution is below that year's net income, but the Year 4 payment of $30,000 comes while cumulative net income is still ($9,094), so against cumulative earnings the whole payment returns capital. Retained earnings turn positive only in Year 5, at $1,110, and paid-in capital of $340,000 keeps total equity positive throughout, at $119,666 after Year 1.
Position at each year end
| At year end | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Cash | $130,015 | $177,313 | $274,186 | $341,998 | $386,554 |
| Accounts receivable | $3,917 | $6,011 | $7,107 | $7,830 | $8,225 |
| Product inventory | $30,000 | $30,000 | $30,000 | $30,000 | $30,000 |
| Build-out and equipment (net) | $293,357 | $256,714 | $220,071 | $183,429 | $146,786 |
| Total assets | $457,289 | $470,038 | $531,365 | $563,256 | $571,565 |
| Accounts payable | $3,515 | $5,394 | $6,377 | $7,027 | $7,381 |
| Bank loan | $334,108 | $310,540 | $284,374 | $255,325 | $223,074 |
| Paid-in capital | $340,000 | $340,000 | $340,000 | $340,000 | $340,000 |
| Retained earnings | ($220,334) | ($185,896) | ($99,387) | ($39,095) | $1,110 |
| Total liabilities and equity | $457,289 | $470,038 | $531,365 | $563,256 | $571,565 |
Margins, break-even and coverage
| Measure | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| EBITDA margin | -6.7% | 9.6% | 11.9% | 13.0% | 13.1% |
| Net margin (before start-up costs) | -16.9% | 3.1% | 6.7% | 6.3% | 6.7% |
| Payroll incl. pay raises as share of revenue | 58% | 51% | 51% | 50% | 50% |
| Revenue per full-time equivalent at year end | $75,245 | $95,391 | $112,783 | $114,320 | $120,080 |
| Average monthly revenue | $59,569 | $91,417 | $108,083 | $119,083 | $125,083 |
| Monthly revenue needed to cover operating costs | $64,122 | $81,473 | $93,449 | $101,457 | $106,502 |
| Debt service cover (EBITDA / interest + principal) | -1.0x | 1.8x | 2.7x | 3.2x | 3.4x |
In Year 1 revenue averages $59,569 a month against the $64,122 needed to cover operating costs, which is why the year loses money. Year 2 averages $91,417 against $81,473 needed and Year 3 $108,083 against $93,449. Debt service cover is negative in Year 1, when the spa pays interest from reserve cash, then moves to 1.8x in Year 2, 2.7x in Year 3 and 3.4x in Year 5. Payroll with pay raises takes 58% of Year 1 revenue, 51% in Years 2 and 3 and 50% in Years 4 and 5. Operating leverage is high: revenue 10% under plan with no response moves Year 3 from a profit of $86,509 to a loss of $19,430, as the stress table shows.
If bookings fall 20%
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $571,862 | $877,600 | $1,037,600 | $1,143,200 | $1,200,800 |
| Net income before start-up costs | ($191,179) | ($9,538) | $6,402 | $46,586 | $67,922 |
| Net income after start-up costs | ($290,779) | ($9,538) | $6,402 | $46,586 | $67,922 |
| Closing cash | $59,650 | $63,015 | $79,804 | $133,925 | $206,207 |
This case cuts every revenue line by 20% in every year, with these responses. Therapist and esthetician hours, and so their pay, are 20% lower from month 5, once four months of bookings are in. Dana's pay is 20% lower from month 7. Hires planned for month 13 or later start six months later, which moves the fifth therapist to month 26 and the spa manager to month 28, and the esthetician planned for month 40 is not hired. Marketing is 20% lower from Year 2 and stays at $62,000 in Year 1, because the monthly view spreads annual lines evenly. Card fees, payroll tax on tips and write-offs fall 20% and linens 15% from the first month. No distributions are paid. The 3% raise line follows the lower payroll. Every other cost line, including rent, utilities, insurance, software, the replacement fund and recruiting, stays at the base figure. On those terms year-end cash never falls below $59,650, the lowest month-end balance is about $39,000 in October 2027, and equity at the end of Year 1 is $49,221. Net income after start-up costs is a loss of $290,779 in Year 1 and $9,538 in Year 2, then a profit of $6,402 in Year 3 and $46,586 in Year 4. Debt service cover is negative in Year 1, 1.06x in Year 2 and 1.29x in Year 3, so Year 2 fails a likely 1.25x covenant and Year 3 clears it narrowly. The owners would ask the bank to waive the tests for 2027 and 2028, because cover is negative in Year 1 even in the base case, begin testing at 1.25x with the 2029 accounts, hold distributions until cover has stayed at or above 1.25x for two quarters, and set up an undrawn $50,000 working-capital line for a late opening. Closing cash stays below the base case in every year.
How the Numbers Hold Up
Each row is a fresh run of the model with one change, read for net income after start-up costs. Costs that move with sales move in every row that changes revenue: card fees and write-offs with revenue, payroll tax on tips with service revenue and linens by three quarters of that change. The direct-cost rate stays at the Year 1 blend of 12.0% except in the row that raises it. In the two late-opening rows the spa opens in March 2027 instead of January: the revenue ramp moves two months, so Year 1 loses its November and December peak, and Year 2 is left at the base figure. One row moves every Year 1 hire two months as well and the other leaves staff on payroll as planned. Rent and the other annual costs stay put in both, so those rows are read for Year 1 only. Month-end lows come from the monthly view, rounded and approximate; year-end lows are model balances.
| Case | Year 1 net | Year 2 net | Year 3 net | Lowest month-end, Year 1 | Lowest year-end cash | Cover, Years 2 and 3 |
|---|---|---|---|---|---|---|
| Base case | ($220,334) | $34,439 | $86,509 | $81,000 (September) | $130,015 (Year 1) | 1.8x / 2.7x |
| Revenue 10% lower, every line and year | ($278,669) | ($55,256) | ($19,430) | $43,000 (October) | ($41,939) (Year 5) | 0.3x / 0.8x |
| Revenue 20% lower, every line and year, no response | ($337,004) | ($144,950) | ($125,441) | ($1,000) (November) | ($535,448) (Year 5) | -1.3x / -1.0x |
| Members cancel 6% a month instead of 4% | ($233,893) | ($24,727) | ($13,669) | $75,000 (September) | ($8,026) (Year 5) | 0.8x / 0.9x |
| Direct costs 2 points of revenue higher | ($234,631) | $12,499 | $60,642 | $72,000 (September) | $116,306 (Year 1) | 1.4x / 2.2x |
| Wages 10% higher, every role | ($261,795) | ($21,501) | $20,970 | $50,000 (September) | $79,914 (Year 2) | 0.9x / 1.5x |
| Rent 10% higher | ($227,894) | $26,649 | $78,562 | $75,000 (September) | $122,455 (Year 1) | 1.7x / 2.5x |
| Loan rate 12.5% instead of 10.5% | ($227,218) | $27,712 | $80,108 | $76,000 (September) | $124,225 (Year 1) | 1.7x / 2.5x |
| Opening two months late; revenue and every Year 1 hire move | ($286,546) | – | – | $40,000 (July) | $63,907 (Year 1) | – |
| Opening two months late; staff stay on payroll | ($370,995) | – | – | ($31,000) (November) | ($20,542) (Year 1) | – |
The base case is profitable and thin, and the table shows how thin. Revenue 10% under plan loses $55,256 in Year 2 and $19,430 in Year 3, and wages 10% higher turn Year 2 into a loss of $21,501 with cover of 0.9x. Cancellations of 6% a month are the worst trade-specific case: members average 306 to 342 a year in place of 365 to 477, every year from Year 2 loses money and cash is negative by Year 5. Rent and the loan rate matter much less than staffing, volume and retention.
Management responses are what keep the spa solvent. With no response, a 20% shortfall takes year-end cash to ($118,622) in Year 2, where the downside table above, with its responses, holds it at $63,015.
A two-month delay is covered by the reserve if hiring moves with the opening: the low is about $40,000 in July and Year 1 ends at $63,907. If staff stay on payroll through the delay, month-end cash falls to about ($31,000) in November and Year 1 equity is negative. For that reason the owners would hold hiring until the establishment license date is firm, and would ask the bank for the undrawn $50,000 line.
What a Lender Would Still Ask
- The lease. The term sheet: a five-year base term with two five-year options against a ten-year loan, the $50,000 improvement allowance and the rent abatement through the build-out (both targets, not offers), and the landlord's consent to a lien on the improvements.
- Who guarantees. Dana's guarantee is in the plan. SBA's lender procedures have required a personal guarantee from every owner of 20% or more, which reaches both investors at 22.5%. Whether they sign, or hold under 20% each, is settled before closing.
- Collateral. $85,000 of equipment and $30,000 of stock stand against a $345,000 loan, and improvements to a leased unit are not security a bank can sell. The bank may ask Dana for more security.
- Build-out bids. Two contractor bids for the wet rooms, laundry and sound control against the $295,000 gross figure. No contingency line is carried, so a 10% overrun, $29,500, comes from the reserve.
- License and permit timing. The establishment license follows the finished build-out. A late license is the cause of both late-opening cases above.
- Evidence for the founding members. What the 70 pre-opening sign-ups have signed, and how a lender weighs them with no cancellation history. At 6% a month the plan loses money in every year from Year 2.
- Price. The $125 massage and $99 dues are the plan's figures, set after a visit to nearby menus. Each $10 off the dues price is about $23,700 of Year 1 revenue and about $51,400 of Year 3 revenue.
- Key people. Guests follow therapists, and four therapists carry the floor by October. A bank may ask for key-person life insurance on Dana; the premium is not in the plan.
- Reserve and lows. A $225,400 reserve against a base low near $81,000 and a downside low near $39,000, and the case where a late opening keeps payroll running.
- Debt cover. Negative in Year 1 in every case, 1.8x in Year 2 in the base case and 1.06x in the downside, against a likely 1.25x test. The ask is a waiver of the tests for 2027 and 2028, testing from the 2029 accounts (1.29x in the downside) and a $50,000 undrawn line.
- The investors' return. $90,000 of distributions over Years 4 and 5, $40,500 of it to the investors on $220,000, with no exit forecast. A bank is likely to restrict distributions while cover is under 1.25x.
- Tax and entity. The model charges corporate tax. An LLC taxed as a partnership puts the tax on its owners, who would then expect tax distributions.
- Seasonality after 2027. Years 2 to 5 are annual, so a summer or January trough in Year 2 is not modeled and the real Year 2 low could fall below the Year 1 figure.
Sources
- Bureau of Labor Statistics, Massage therapists, Occupational Outlook Handbook: median pay $58,450 in May 2025 and 15% employment growth from 2025 to 2035.
- Bureau of Labor Statistics, Skincare specialists, Occupational Outlook Handbook: 2025 median pay $45,330 and 9% employment growth from 2025 to 2035.
- Nebraska Department of Health and Human Services, Massage Therapy and Massage Therapy Establishments and Schools: the licensure unit that licenses massage therapists and establishments. No fee or exam requirement is quoted; confirm current rules, and the esthetician license rules, with the department.
- American Massage Therapy Association, Nebraska state regulations: lists 1,000 hours of education for massage therapists. An association summary and not the regulation.
- Mindbody, How much does it really cost to open a spa: a rule of thumb of $90 to $130 a square foot for finished spa construction; page updated March 11, 2025.
- Internal Revenue Service, Topic no. 761, Tips: withholding and reporting (reviewed October 12, 2026) and Topic no. 751, Social Security and Medicare withholding rates (reviewed September 24, 2026): the employer pays its share of Social Security and Medicare tax on reported tips, at 6.2% and 1.45%.
- U.S. Small Business Administration, SOP 50 10, Lender and Development Company Loan Programs: lender procedures that have required unlimited personal guarantees from owners of 20% or more. The current edition governs.
- 26 U.S.C. section 172(a)(2): net operating loss deductions for later years are capped at 80% of taxable income.
- U.S. Department of Labor, state minimum wage history: the federal minimum wage is $7.25 an hour.
- Jackson Lewis, Nebraska's midyear minimum wage changes (February 25, 2026): Nebraska's rate was $15 an hour from January 1, 2026, rising 1.75% each January from 2027. A law-firm summary, not the statute; confirm the rate with the Nebraska Department of Labor.
- Nebraska corporate income tax: the plan uses a 5.6% planning rate. Nebraska has been lowering the rate by statute, so confirm the rate for 2027 and later with the Nebraska Department of Revenue.
- Rent, build-out, wage, tip-rate and price figures are the plan's own figures for an example business, not quotes from a broker, contractor or competitor.
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