Take Away Spa. LLC is a new upscale finish in Washington DC. offering a complete watering place experience. We offer a assortment of over-the-top-comfortable intervention suites with luxury watering place linens and equipment. Massage are offered in a assortment of manners – traditional Swedish massage. Deep Tissue work. Hot Stone Massage. Sports. Pregnancy and others. Other interventions offered are. facial and organic structure interventions. such as. Vitamin C Antioxidant Facials. Anti-Free Extremist Treatment. Take Away Spa has the latest merchandises and techniques. Hair services are non provided as portion of any intervention. Pedicure are portion of Foot and Leg Treatment. As portion of assisting other concern we are located by a hair and Nail salon that we do referrals. and co-market. Take Away Spa is a Limited Liability Corporation owned by Jeffrey Sanders. Mr. Sanders maps as developer for Take Away Spa.
Mr. Sanders has been a selling and gross revenues professional for over 5 old ages with a proved path record. who has been working in the Business industry for the last 25 old ages with vase cognition. As A Territory Gross saless director with Bimbo Bakeries. a taking bread maker. he built the Metropolis district from $ 400k per twelvemonth to over $ 1. 8 million per twelvemonth. During Mr. Sander’s gross revenues calling he besides built a new district from zero per twelvemonth to over $ 3. 6 million per twelvemonth. Take Away Spa chiefly will be aiming possible clients within a three-mile radius with a household income over $ 25. 000. Our secondary market will include visitants remaining in a local hotel. Within the U. S. . about 14 % of the population has ne’er tried a massage. We will presume that a conservative 70 % of these two classs has tried a massage and would undergo one once more. if suggested appealing services at the right monetary value. Our market Analysis tabular array therefore reflects 70 % of the local and sing population who might be targeted.
Within this group. clients who use spa services fall into four basic groups:
1. Clients repairing from hurts or accidents / Massage Therapy. 2. Clients indulging themselves / Massage Therapy. Body and Facial Treatments. 3. Clients who prefer unconventional wellness attention. 4. Serious Athletes.
Describe the type of concern you have created including: a. The merchandise or service. and general staffing program. Supply a principle for your program. B. The signifier of your concern and the benefits it offers your peculiar concern. c. A chart of histories specific to your concern. including a principle as to the choice of each history.
Take Away Spa offers curative massage services. organic structure interventions. seventh cranial nerves and anti-aging interventions. Servicess are provided by accredited Therapists and Aestheticians who will be independently contracted and paid on a committee footing. The positive facet of the commissioned employee is that there is really small operating expense without gross revenues ; employees merely make money when the concern makes money. There will be a full retail line that complements the services bill of fare offered. Merchandises that will be offered. are high-end cosmetics. picks. tapers. and other beauty merchandises. These high-end points tend to retail at a lower limit of $ 20- $ 25 per point The staff of the watering place will consists of. four certified message healer. Aestheticians that are contracted. one Office Manager and one receptionist. The employees are 1099 and acquire paid 100 % committee. This lessens immense operating expense for wages as employees are merely paid when gross revenues are generated. Employees will be paid based on production and per centums of service and gross revenues to retail. There are more employees of this type available so there are occupations to make full them so it’s an employer’s market which is positive.
A front office individual will be hired after one months of the Take Away Spa Grand Opening. This individual will alleviate some of the phone. forepart desk and cashier responsibilities from the office director. Our concern was formed as a limited liability corporation for many grounds. First we would wish to maintain our concern actions separate for our personal assets. In instances were the concern may incur great debt. our personal belongingss are off bounds. Another benefit is that the net incomes are non individually federally taxed but is passed through to the affiliates and filed on their revenue enhancement return. An LLC is really simple to run and flexible in operation. Boardss of managers are non needed to O.K. and concern determinations that are made and we can make up one’s mind on who can put into our concern. ( “Limited Liability Company. ” ) Since the watering place is employed by contractors. there is the possibility for them to go affiliates that will spread out the concern. Our chart of histories is listed as follows: Asset Histories
Cash in Bank
Long Term Assetss
Accumulated Depreciation. Vehicles
Accumulated Depreciation. Shop Equipment
Accumulated Depreciation. Office Equipment
Employment Tax Payable
Short Term Loans Collectible
Long Term Liabilities
Bank Loans collectible
Direct Expense Accounts
Shop or Design Supplies
Repair and Care
Shop or Design Labor
Payroll Tax Expense
Workers Comp Expense
State Gross saless Tax Expense
Indirect Expense Accounts ( Overhead )
Salaries & A ; Wages. Office & A ; Gross saless
Payroll Tax Expense. Office & A ; Gross saless
Repair and Maintenance. Office
Taxs and Licenses
Insurance: Merchandise Liability
Capital from Home Sale
Capital from Sale of Travel Business
Based on the signifier of your concern. analyse whether or non you will be required to utilize By and large Accepted Accounting Principles ( GAAP ) or International Financial Reporting Standards ( IFRS ) accounting methods and how the IFRS / GAAP convergence will impact your concern. Suggest how you will integrate any alterations into your books and records.
This little concern construction will be required to utilize the Generally Accepted Accounting Principles. Choosing this accounting method will supply grounds of all minutess to show true fiscal statements. These rules include the undermentioned: Cost Principle that mentions that all values listed and reported are at the cost to obtain the plus. Revenue Principle references that all grosss must be reported when earned. The fiting rule provinces that fiscal statement must fit the gross. Last but non least. the Disclosure Principle states that information that is applicable in doing a good judgement on the company’s fundss must be included in the fiscal statements. I think for a little concern these rules are an easier manner to cover with the company’s fundss. Equally long as we stay consistent with this method this shows true motion of the concern. By following this method. I will hold to do some alterations in recording. for illustration adding the hard currency equivalents and nonmonetary minutess to by books. ( “A comparing of. ” 2011 )
Fix a pro forma balance sheet and income statement supplying the premises made and back up the ratings assigned.
Sing the value of assets ( assigned per your balance sheet ) used within your concern. urge two ( 2 ) specific internal controls that you will implement to protect your company’s assets and resources. warranting how each will supply confidences to direction.
Take Away Spa is of great value and as proprietor of this concern. Mr. Sanders thought that internal controls are needed to protect the spas plus and resources. These are the two internal controls that will be implemented: Constitution of duty is really of import. each employee needs to cognize their occupation responsibilities and whom to travel to for replies about a specific undertaking. All contracted healer and aestheticians will be responsible for the intervention and attention of their client and besides sell related merchandises that will be provided by the watering place. Therapist and aestheticians will non manage hard currency for the service and sale. merely for tips. The receptionist will manage all phone calls related to assignments and merchandises and services. They will besides be the designated teller for the watering place in which payments for service and merchandises are administered. The office director will be in charge of all twenty-four hours to twenty-four hours operational inadvertence.
There will be form for telling supplies as needed and one for fixing the pay/commission cheques of the employee. This individual will describe to the proprietor or approved individual for blessings. Physical controls will be implemented by the used to safes. dismaies and cameras. clip redstem storksbills. computing machine passcodes and merchandise detectors. These points will lend to the precaution of forces and fiscal information. Keeping path and protection of stock list plus tracking clip of employees. Safekeeping of any monies or cheques and the protection of equipment assigned to the concern. Using these controls will help in the direction procedure by which all things are assigned for specific grounds.
Based on the internal control recommendations that you made. propose how you will implement each within your concern environment. bespeaking how challenges or oppositions will be overcome.
I will ( Mr. Sanders ) . implement the internal control for the constitution of duty by providing new hires with a really elaborate occupation description that list what is responsibilities are required. A verification sheet will be signed by the employee upon reading and holding to all footings. A Code of Conduct will be issued and signed upon reading and holding to all footings. Within the Code of Conduct a disciplinary action program will be outlined to rede employees what will be the effects of neglecting to continue to the agreed footings. This action will guarantee the protection of any legal affairs that may originate by holding certification. Physical controls will besides be implemented by the installing of a high tech security system within the store. Cameras located in the office where the safe is located. above the hard currency registry in the forepart of the store and at all issue doors. All so security watchwords will be on all computing machines and all users will hold designated countries to entree. The office director and the proprietor will hold entree to employee files. The safe will necessitate two sets of combinations to open and lock which the teller and office director will hold. All staff will hold to plug in at a clip clock in order to have proper compensation. All merchandises will be scanned into an stock list system in order to maintain path of every point. These commissariats will lend in set uping a safe and sound concern.
Measure the impact of the regulative environment. including the Sarbanes-Oxley Act and other regulative demands. on your concern venture. giving sing to how you intend to follow with the demands and the general impact to determination doing within your concern.
Regulations will impact my concern greatly. Owning a watering place concern you must hold the proper licensing by the Board of Cosmetology and the Department of Health. All techs are required to hold passed and acquired a licence from an commissioned school which is spouses with the wellness section. Equally far as following with the GAAP and the Sarbanes-Oxley Act. I plan to follow by holding fiscal statements in topographic point and available to see and bespeak strengths and failings in the concern. Following subdivision 404 of the SOX that reference little concern should place hazard and topographic point internal controls to turn to them. It besides states that some signifier of monitoring of these controls should be implemented and are they working in the concern. In running a concern I plan to function my community and my employees with honestness and unity to guarantee wellness growing for both. ( Prentice & A ; Bredeson. 2010 )
Prentice. R. . & A ; Bredeson. D. ( 2010 ) . Student Guide to the Sarbanes-Oxley Act. ( 2nd ed. ) . Mason. Ohio: South-Western Cengage Learning. Department of the interior: cengage. com A Securities and Exchange Commission. ( 2011 ) . A Comparison of U. S. GAAP and IFRS. Retrieved from web site: World Wide Web. sec. gov/ . . /ifrs-work-plan-paper-111611-gaap. pdf
Limited Liability Company. ( n. d. ) . Retrieved from
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