Starting a tanning salon takes more than a good location and a few UV beds. As members sign up, the business needs properly certified equipment, a compliance structure that meets FDA and state requirements, and a financial model that proves the numbers work before a lender will fund it.
But turning a tanning salon concept into a bank-ready document is a different challenge. Lenders do not fund visions. They fund proof of market demand, realistic membership projections, and an operational structure that shows the business can cover debt service.
Creating a plan with the right data and professional layout is difficult for most first-time tanning salon operators. This sample plan for SunHaven Tanning & Wellness solves that problem.
It provides a complete, practical example you can study and adapt to build your own tanning and wellness business from the ground up, particularly for those seeking SBA loans or bank financing.
Executive Summary
SunHaven Tanning & Wellness is a hybrid tanning and wellness studio on West End Avenue, Nashville, TN 37203. It offers four service lines:
- UV tanning across three bed levels
- Sunless spray via booth or custom airbrush
- Red-light therapy
- A tiered membership program
Maya Reyes and Jordan Kim are the two owner-operators behind SunHaven. Together, they bring 15 combined years of direct experience across salon operations and membership marketing.
The US tanning salon industry generated $1.9 billion in annual revenue in 2025, and operators who diversified beyond UV-only are the ones driving that growth. Midtown Nashville has no studio offering UV, sunless, and red-light under a single membership. That is the opening SunHaven is stepping into.
SunHaven is requesting a $135,000 SBA 7(a) loan through a local community bank, combined with $50,000 in owner equity, bringing the total startup capital to $185,000.
The loan repays at $1,822 per month over 10 years at 10.5% APR fixed. The balance falls
Monthly break-even sits at 978 visits. Year 1 projects 1,231, a 26% cushion. Even at 10% below forecast, the business still clears break-even.
| Year 1 | Year 2 | Year 3 | |
| Annual Customer Visits | 14,776 | 16,324 | 17,593 |
| Total Revenue | $361,962 | $416,262 | $466,215 |
| Gross Profit | $211,085 | $242,751 | $271,883 |
| Net Income (Pre-Tax) | $2,371 | $34,261 | $54,622 |
| Ending Cash | $81,592 | $127,417 | $192,670 |
Company Overview
SunHaven Tanning & Wellness is registered in Tennessee as a Limited Liability Company (LLC) as of July 2026.
The studio runs out of 1,800 square feet at Suite 104, 2214 West End Avenue, Nashville, TN 37203, a block from Vanderbilt on Midtown’s main retail corridor. Lease signed. Opening September 2026.
Ownership and Management
Two operators founded the business. Between them, 15 years working inside salon management, front-desk operations, and membership-based marketing.
Mission
To provide Midtown Nashville residents with professional UV tanning, sunless spray, and red-light therapy services at honest prices, delivered consistently every visit.
Vision
To be the most visited tanning and wellness studio in Midtown Nashville, where every client leaves feeling confident, and every membership feels worth it.
Business Model
Revenue comes from four streams: UV tanning sessions, sunless spray tanning, red-light therapy, and monthly memberships. Memberships are the core. Single sessions and retail sales fill the rest.
Billing runs automatically via card-on-file through the Mindbody POS system.
Business Goals
These targets are tied directly to what SunHaven needs to cover debt service, sustain operations, and grow over the next three years.
- Cross the monthly break-even threshold of 978 visits by Month 6 and maintain it through Year 1.
- Reach 220 active members by Month 12, with 90 Bronze, 80 Silver, and 50 Gold tier members.
- Close Year 1 with $361,962 in revenue, a 58.32% gross margin, and a positive net income of $2,371.
- Achieve a 4.5-star average Google rating by the end of Year 2 through consistent service quality and post-visit review requests.
- Scale to $466,215 in Year 3 revenue with net income of $54,622 and $192,670 in ending cash.
Keys to Success
Membership conversion: Walk-in revenue alone does not cover fixed costs. The entire front-desk workflow, from first-visit orientation to follow-up messaging, is built around converting new visitors into members within 60 days.
Service mix: Running UV, sunless, and red-light under one roof removes the main reason members leave. A member who books a spray session before a wedding and a red-light session for recovery has no practical reason to go elsewhere.
Compliance: UV tanning operates under FDA 21 CFR 1040.20 and Tennessee state licensing requirements. A compliance failure creates liability that no single month of revenue can offset. SunHaven treats it as a daily operational standard.
Market Analysis
Industry Overview
The US tanning salon industry pulled in $1.9 billion in 2025. growing at 0.8% annually since 2020. Revenue per operator has increased as the market consolidates around studios offering broader service menus. Hybrid operators combining UV, sunless, and red-light therapy are capturing a growing share of that revenue.
The United States is the largest market for spray tanning globally, driven by strong consumer awareness of sunless tanning benefits and a well-established network of professional spray tanning salons.
The North American region holds over 40% of the total global market share for indoor tanning.
The average American spends $492 per year on skincare. Women spend well above that at $600 per year. SunHaven’s primary customer, a woman between 22 and 35, sits squarely in that higher-spending segment.
Customer behavior skews heavily habitual. 65% of tanning customers visit 20 or more times a year, making membership billing a natural fit for how this customer already behaves.
The 37203 zip code has a population of 20,429 across 12,452 occupied housing units. Median household income is $69,671. Median home value is $519,600. Median age is 30, with the female median at 29 and the male at 31.
Target Customer
SunHaven’s primary customer is a woman between the ages of 22 and 35 who lives or works in the 37203 zip code or adjacent Midtown corridors. Earning between $50k and $95k annually, she pays for personal care services regularly and values predictable monthly pricing.
The secondary customer is an event-driven woman booking a spray session three to four weeks before a wedding, bachelorette trip, or graduation. Single-session pricing applies. These bookings fill peak slots every spring and fall.
Competitive Analysis
Midtown Nashville has tanning options. What it doesn’t have is a single studio combining UV, sunless spray, and red-light therapy under one membership. Three direct competitors operate within a short drive of SunHaven’s West End Avenue location, each with a different service gap.
Direct Competitors
Sun Tan City shares the West End Avenue corridor and offers UV and spray tanning on a tiered membership. Corporate ownership means service quality shifts by location, and front-desk turnover stays high.
Riviera Tan Spa has built genuine local trust for spray tanning in the Green Hills area. No UV, no red-light, appointment-only, no membership. Customers who want all three services have nowhere to go but somewhere else.
Eclipse on Elliston runs UV tanning a mile north of SunHaven on a punch-card system, not a monthly membership. No spray, no red-light. It works for the occasional visitor until they want something more.
Indirect Competition
Mobile spray services like Beautifully Bronzed and Bronze Doctor handle event-driven customers well but carry no UV or red-light capability and no membership model. At-home self-tanners hit a lower price point but can’t produce what a professional session does.
Competitive Advantage
SunHaven is the only studio within a 15-minute drive of 37203 offering UV tanning, sunless spray, and red-light therapy under one roof.
A first-time visitor who wants a spray tan before a bachelorette weekend and a red-light session for recovery the week after does not need two studios. SunHaven handles both in one location, on a walk-in basis, with no appointment required. No direct competitors in Midtown are doing the same.
For membership customers, the same logic applies. No competitor matches all three services under one monthly plan without a customer splitting visits across multiple providers.
Treatment Services
Most tanning studios pick one service and build around it. SunHaven runs three. That breadth is what the membership model needs to work on the unit economics in this plan.
UV Tanning
UV tanning at SunHaven runs across three bed levels, from entry-level exposure to high-pressure sessions for faster, deeper results. Sessions are customized to each client’s skin type and assessed at intake.
SunHaven offers three UV session levels. A Level 1 single session runs $18, Level 2 is $22, and Level 3 high-pressure is $25.
Sunless Spray Tanning
SunHaven offers two sunless formats: a booth session for walk-in clients and a private airbrush room for custom and event applications. The booth delivers a consistent full-body spray in 8 minutes. The airbrush room is bookable for weddings, bachelorette groups, and clients who want a technician-applied finish.
A single booth session is $35, and a single custom airbrush session is $45. Clients who tan regularly can purchase a 5-pack of booth sessions for $150 ($30 each) or a 5-pack of airbrush sessions for $200 ($40 each).
Red-Light Therapy
Red-light therapy at SunHaven targets skin health and recovery at two wavelengths, covering both surface and deep tissue application. Sessions run 12 to 20 minutes.
A single red-light session is $25. A 5-pack runs $100 at $20 per session.
Memberships
Three tiers cover different budgets and usage levels. Bronze targets casual UV tanners. Silver adds red-light access for the wellness-oriented customer. Gold covers the frequent visitor who uses all three services regularly.
| Tier | Option Details | Price |
| Bronze Membership | 4 UV (Level 1) + 1 spray + 15% off walk-ins | $59/mo |
| Silver Membership | 8 UV (any level) + 2 spray + 4 red-light | $89/mo |
| Gold Membership | Unlimited UV + 4 spray + 8 red-light | $129/mo |
Retail
SunHaven carries a focused retail line to complement every service. No standalone product push; everything is cross-sold at the point of session.
Marketing & Sales Strategy
SunHaven’s Year 1 marketing budget is $9,600, allocated across five channels with a target customer acquisition cost of $24 per new member.
Acquisition Channels
- Website: SunHaven’s website launches in September 2026 with a full service and pricing menu, membership tier breakdown, studio location and hours, and an online booking engine powered by Mindbody. Visitors can browse all three service lines, compare membership tiers, check real-time availability, and book directly without calling.
- Search and Reputation: Jordan manages local SEO targeting “tanning salon Nashville” and “red light therapy Midtown.” Automated post-visit emails go out 24 hours after each session, requesting a Google or Yelp review. Every review response is handled within 48 hours.
- Social Media (Instagram & TikTok): Jordan manages both accounts on a content calendar built around seasonal demand and Nashville events. Content covers spray tan results, red-light therapy walkthroughs, skin-type consultations, and membership breakdowns. The goal is to show potential clients exactly what to expect before they walk in.
- Print & Flyers: Rack cards placed at Vanderbilt University campus boards, bridal boutiques, and Nashville bachelorette venue welcome desks before opening. Print materials carry the SunHaven booking URL and a QR code linking directly to the Mindbody booking page.
- Event Partnerships: Nashville wedding planners and fitness studios, going after event-driven spray bookings and gym-adjacent wellness clients.
- Referral Program: Existing members refer new members through a $20-for-$20 credit structure. Expected to deliver roughly 30% of new members at a marginal acquisition cost well below the paid-channel average.
Sales Process
Every new customer starts with a skin-type assessment at intake, required for UV compliance and used as a natural entry point for a service consultation. First-time visitors are offered a free red-light demo or a discounted spray session before leaving.
Between the first visit and the 60-day window, Mindbody sends two automated touchpoints: a thank-you message with a session summary on day one and a membership overview email on day seven outlining the three tiers and their monthly value against single-session pricing.
If a visitor has not joined by day 60, they receive one final offer through Mindbody, a $10 credit toward their first membership month.
Launch Promotion
SunHaven allocates $7,500 as a one-time launch budget in Year 1 to drive early membership sign-ups and first-visit traffic.
First, every new client gets their first session at $10 across any service line. UV, spray, or red-light, the introductory rate applies regardless of which service they choose.
Second, any first-time visitor who signs up for a membership on the same day as their first visit gets their first month at $10 off the standard tier price.
Third, existing members who refer a new member before the end of Month 3 receive a double credit, $40 instead of the standard $20, on their account.
Seasonality
Marketing spend is not distributed evenly across the year. February gets a heavier push for UV demand during Nashville winters. April gets the largest single allocation for wedding and bachelorette season spray bookings. A smaller June push targets graduations and summer travel prep.
January and August are historically soft months for tanning studios. No paid spend runs in those windows. Membership billing keeps revenue stable regardless, which is the point of building the model around recurring income rather than session volume.
Operations Plan
Most tanning studios lease whatever retail space is available and make it work. SunHaven’s 1,800 square feet at 2214 West End Avenue was designed around the service menu before the lease was signed.
The UV bay takes 700 square feet, enough for eight beds with real privacy between them. The spray area has two walk-in booths and a separate bookable airbrush room, so event clients are not sharing space with walk-ins. Red-light gets its own quiet zone rather than being tucked into a corner.
That layout matters operationally. Peak hours run more smoothly when service areas do not compete for the same floor space. A client finishing a UV session does not walk past someone mid-spray on the way out.
Rent is $2,200 per month on a 5-year lease. The 220-volt electrical upgrade for UV bed load is folded into the $25,000 leasehold improvement budget.
Operating Hours
SunHaven operates seven days a week, with extended hours on weekdays to capture the after-work rush.
| Operational Window | Timeframe |
| Monday – Thursday | 11:00 AM – 9:00 PM |
| Friday | 10:00 AM – 9:00 PM |
| Saturday | 9:00 AM – 7:00 PM |
| Sunday | 11:00 AM – 5:00 PM |
Closed approximately 10 days per year for major holidays. Total operating days: 350 per year, averaging 70 hours per week.
Daily Workflow
SunHaven’s daily operation runs on three shifts: opening, peak, and closing.
Opening
The opening consultant arrives at 10:30 AM. UV beds run through a full sanitization checklist. The Mindbody system is loaded, appointment queue reviewed, and retail floor prepped. First sessions are available at 11 AM.
Peak
Two consultants cover the floor during the evening peak window. The lunch peak runs lighter with one consultant handling check-ins, retail walk-ins, and spray booth turnover. A manager is on-site during the 4 to 8 PM window to handle membership upgrades and any compliance issues that need owner-level sign-off.
Closing
Final UV bed sanitization runs after the last session. Spray booths go through the full cleaning protocol. Daily POS is reconciled against the Mindbody session log. Member feedback survey responses from the day are reviewed. The close checklist is logged in Mindbody and reviewed weekly by the operations lead.
Booking & Scheduling
Mindbody runs all bookings, client profiles, membership billing, and front desk check-ins. Clients get in through the app, the SunHaven website, or by walking up to the desk.
UV beds turn over on 15-minute blocks: 8 minutes of session time, 7 minutes of cleanup. Spray booths need 20 minutes per client, red-light beds 30.
Maximum two UV sessions per day per client is enforced at the booking system level. Cancellations require four hours’ notice to avoid a $15 no-show fee.
Legal Compliance & Insurance
SunHaven holds a Tennessee Tanning Facility License, a Davidson County Business License, and a Tennessee Sales Tax Registration, all secured before the September 2026 opening date. LLC formation, operating agreement drafting, and initial CPA engagement are expensed as a one-time $3,500 setup cost in Year 1.
Insurance runs on three combined policies at $4,800 annually. General liability covers bodily injury and property damage from studio operations. Product liability covers retail product claims. Cyber liability covers data exposure from Mindbody’s client billing system.
Health & Safety Compliance
All UV equipment meets FDA 21 CFR 1040.20 certification. Exposure schedules are posted in every UV room. Eye protection is mandatory and provided at no charge.
The Tennessee state tanning facility license and Davidson County business license are in place at launch. Clients under 16 are prohibited from UV services. Ages 16 to 17 require parental consent per Tennessee law.
Every new client completes a Fitzpatrick skin-type assessment at intake. Daily UV exposure limits are enforced at the booking system level.
Equipment
Every piece of equipment in the studio is selected to support a specific service line and session volume.
All UV equipment is FDA 21 CFR 1040.20 certified.
Management Team
SunHaven is led by two owner-operators with 15 combined years of direct experience in salon operations and membership marketing. Both founders are active in the business full-time from day one.
Maya Reyes, Operations Lead
- She oversees daily studio operations, staff scheduling, vendor relationships, and equipment maintenance.
- Maya is on-site Tuesday through Saturday, approximately 50 hours per week, drawing a Year 1 salary of $40,000.
- She manages all FDA and Tennessee state compliance protocols and is responsible for SBA covenant reporting for the full 36-month window.
Jordan Kim, Marketing Lead
- At SunHaven, she manages all membership growth, digital marketing, partner outreach, and the first-visit conversion program.
- Jordan is on-site Wednesday through Sunday, approximately 45 hours per week, drawing a Year 1 salary of $40,000.
- She is the primary contact for Mindbody system management and membership billing.
Service Team
Three part-time consultants cover peak windows Monday evenings, Wednesday evenings, Friday evenings, Saturday all day, and Sunday half-day. Each works approximately 22 hours per week at $24.13 per hour, earning approximately $26,544 annually. Total PT labor runs $79,632 for Year 1.
Their responsibilities cover client check-ins, UV bed and spray booth turnover, sanitization protocols between sessions, retail cross-selling, and lotion restocking. Each consultant holds or is working toward a Tennessee cosmetology or esthetics license.
One consultant is designated as the shift lead. When either owner is on leave, the shift lead assumes front desk oversight, opens and closes the studio, and handles any compliance or client escalations that require owner-level sign-off under normal operations.
Professional Services
A contract bookkeeper handles monthly reconciliation and quarterly tax filings at $150 a month, $1,800 for the year. A CPA (Certified Public Accountant) covers year-end financials and tax preparation for another $1,800. Total professional services: $3,600 annually.
Financial Plan
SunHaven’s three-year fiscal strategy is anchored by an initial $185,000 capital injection. The model is designed to reach a $192,670 cash-on-hand position by the end of Year 3, maintaining a disciplined loan repayment schedule while ensuring the studio’s burn rate remains well below its revenue ceiling.
The following segments detail our hard-asset allocation, funding sources, and the underlying assumptions driving our pro forma statements.
Startup Costs
| Expense | Amount |
| 8 UV tanning beds (capitalized) | $36,000 |
| 2 spray tan booths/units (capitalized) | $11,600 |
| 4 red-light therapy beds (capitalized) | $19,200 |
| POS system, computers, and tablets (capitalized) | $4,200 |
| Furniture & fixtures (capitalized) | $14,000 |
| Leasehold improvements (capitalized) | $25,000 |
| Initial inventory — lotions, retail products, spray solution, replacement bulbs | $10,000 |
| Facility deposit & prepaid rent | $4,400 |
| Insurance premiums (prepaid first 12 months) | $4,800 |
| Marketing launch (one-time, expensed Y1) | $7,500 |
| Licenses & permits (one-time, expensed Y1) | $2,800 |
| Professional services — legal/accounting setup (one-time, expensed Y1) | $3,500 |
| Working capital reserve (cash) | $42,000 |
| Total Startup Costs | $185,000 |
Source of Funds
| Source | Amount |
| SBA 7(a) Loan — Nashville Community Bank | $135,000 |
| Owner equity contribution (Maya Reyes + Jordan Kim, $25,000 each) | $50,000 |
| Total Startup Capital | $185,000 |
Financial Assumptions
| Item | Assumption |
| Average revenue per customer visit (blended) | Year 1: $24.50; Year 2: $25.50; Year 3: $26.50 |
| Annual customer visits | Year 1: 14,776; Year 2: 16,324; Year 3: 17,593 |
| Year-over-year revenue growth | Year 2: 15.0%; Year 3: 12.0% |
| Direct materials cost (lotions, towels, sanitizing supplies, spray solution) | 18.0% of revenue |
| Direct labor cost (PT tanning consultants, in COGS) | 22.0% of revenue |
| Owner/admin salary (Maya + Jordan, NOT in COGS) | Year 1: $80,000; Year 2: $90,000; Year 3: $96,000 |
| Payroll tax rate (FICA, applied to direct labor and owner salary independently) | 7.65% |
| Lender | Nashville Community Bank |
| Loan principal | $135,000 |
| Loan term | 10 years (120 monthly payments) |
| Interest rate | 10.5% APR fixed |
| Monthly loan payment | $1,822 |
| Annual loan payment | $21,864 |
| Interest expense | Yr 1: $13,794; Yr 2: $12,905; Yr 3: $11,917 |
| Principal repayment | Yr 1: $8,070; Yr 2: $8,959; Yr 3: $9,947 |
| Ending loan balance | Yr 1: $126,930; Yr 2: $117,971; Yr 3: $108,024 |
| AR collection (DSO) | 0 days — cash and card-on-file membership billing only |
| AP payment (DPO) | 15 days |
| Inventory days on hand | 60 days |
Depreciation Schedule
| Asset | Cost | Useful Life | Annual Dep. | Acc. Dep. Y1 | Net PP&E Y1 | Acc. Dep. Y2 | Net PP&E Y2 | Acc. Dep. Y3 | Net PP&E Y3 |
| UV tanning beds (8 units) | $36,000 | 5 years | $7,200 | $7,200 | $28,800 | $14,400 | $21,600 | $21,600 | $14,400 |
| Spray tan booths (2 units) | $11,600 | 5 years | $2,320 | $2,320 | $9,280 | $4,640 | $6,960 | $6,960 | $4,640 |
| Red-light therapy beds (4 units) | $19,200 | 5 years | $3,840 | $3,840 | $15,360 | $7,680 | $11,520 | $11,520 | $7,680 |
| POS, computers, tablets | $4,200 | 5 years | $840 | $840 | $3,360 | $1,680 | $2,520 | $2,520 | $1,680 |
| Furniture & fixtures | $14,000 | 7 years | $2,000 | $2,000 | $12,000 | $4,000 | $10,000 | $6,000 | $8,000 |
| Leasehold improvements (5-yr lease) | $25,000 | 5 years | $5,000 | $5,000 | $20,000 | $10,000 | $15,000 | $15,000 | $10,000 |
| TOTAL | $110,000 | — | $21,200 | $21,200 | $88,800 | $42,400 | $67,600 | $63,600 | $46,400 |
Income Statement (Profit & Loss)
| Year 1 ($) | Year 2 ($) | Year 3 ($) | |
| Customer visits (annual) | 14,776 | 16,324 | 17,593 |
| Total Revenue | $361,962 | $416,262 | $466,215 |
| COGS | |||
| Direct materials (18% of revenue) | $65,153 | $74,927 | $83,919 |
| Direct labor (22% of revenue) | $79,632 | $91,578 | $102,567 |
| Payroll taxes on direct labor (7.65%) | $6,092 | $7,006 | $7,846 |
| Total COGS | $150,877 | $173,511 | $194,332 |
| Gross Profit | $211,085 | $242,751 | $271,883 |
| Gross Margin | 58.32% | 58.32% | 58.32% |
| Operating Expenses | |||
| Owner salaries (Maya + Jordan combined) | $80,000 | $90,000 | $96,000 |
| Owner payroll taxes (7.65%) | $6,120 | $6,885 | $7,344 |
| Rent / lease (1,800 sq ft @ $2,200/mo) | $26,400 | $26,400 | $26,400 |
| Insurance (GL + product liability + business) | $4,800 | $5,000 | $5,200 |
| Accounting / legal / professional fees | $3,600 | $3,600 | $3,600 |
| Phone / utilities (incl. high-load tanning bed electricity) | $14,400 | $15,000 | $15,600 |
| Ongoing marketing | $9,600 | $11,000 | $12,000 |
| Supplies (cleaning, bulb replacements, office) | $6,000 | $6,500 | $7,000 |
| Equipment maintenance & repairs | $4,800 | $5,500 | $6,200 |
| Technology subscriptions (booking, POS, scheduling) | $4,200 | $4,500 | $4,800 |
| Marketing launch (one-time, Y1 only) | $7,500 | — | — |
| Licenses & permits (one-time, Y1 only) | $2,800 | — | — |
| Professional services setup (one-time, Y1 only) | $3,500 | — | — |
| Total Operating Expenses | $173,720 | $174,385 | $184,144 |
| EBITDA | $37,365 | $68,366 | $87,739 |
| Depreciation | $21,200 | $21,200 | $21,200 |
| EBIT | $16,165 | $47,166 | $66,539 |
| Interest expense (from amortization schedule) | $13,794 | $12,905 | $11,917 |
| Net Income (Pre-Tax) | $2,371 | $34,261 | $54,622 |
Cash Flow Statement
| Year 1 ($) | Year 2 ($) | Year 3 ($) | |
| Beginning Cash | $55,800 | $81,592 | $127,417 |
| Operating Activities | |||
| Net income (pre-tax) | $2,371 | $34,261 | $54,622 |
| Depreciation (non-cash add-back) | $21,200 | $21,200 | $21,200 |
| Change in accounts receivable (DSO = 0) | $0 | $0 | $0 |
| Change in inventory | ($710) | ($1,607) | ($1,478) |
| Change in accounts payable | $6,201 | $930 | $856 |
| Change in prepaid expenses (Y1: insurance consumed) | $4,800 | $0 | $0 |
| Net Cash from Operations | $33,862 | $54,784 | $75,200 |
| Investing Activities | |||
| Capital expenditures | $0 | $0 | $0 |
| Net Cash from Investing | $0 | $0 | $0 |
| Financing Activities | |||
| Loan principal repayment | ($8,070) | ($8,959) | ($9,947) |
| Net Cash from Financing | ($8,070) | ($8,959) | ($9,947) |
| Net Change in Cash | $25,792 | $45,825 | $65,253 |
| Ending Cash | $81,592 | $127,417 | $192,670 |
Opening Balance Sheet (at Launch)
| Line Item | Amount ($) |
| Assets | |
| Cash (working capital + one-time expense float) | $55,800 |
| Inventory (opening stock) | $10,000 |
| Prepaid rent & insurance | $9,200 |
| Gross PP&E (equipment + furniture + leasehold improvements) | $110,000 |
| Total Assets | $185,000 |
| Liabilities & Equity | |
| Term loan (SBA 7(a)) | $135,000 |
| Members’ / owners’ capital (paid-in) | $50,000 |
| Retained earnings | $0 |
| Total Liabilities + Equity | $185,000 |
Balance Sheet (Years 1-3)
| Year 1 ($) | Year 2 ($) | Year 3 ($) | |
| Assets | |||
| Cash | $81,592 | $127,417 | $192,670 |
| Accounts receivable | $0 | $0 | $0 |
| Inventory (60 days × materials COGS / 365) | $10,710 | $12,317 | $13,795 |
| Prepaid expenses (security deposit only after Y1) | $4,400 | $4,400 | $4,400 |
| Net PP&E (from Depreciation Schedule) | $88,800 | $67,600 | $46,400 |
| Total Assets | $185,502 | $211,734 | $257,265 |
| Liabilities | |||
| Accounts payable (15 days × COGS / 365) | $6,201 | $7,131 | $7,987 |
| Term loan (ending balance from amortization) | $126,930 | $117,971 | $108,024 |
| Total Liabilities | $133,131 | $125,102 | $116,011 |
| Equity | |||
| Paid-in capital | $50,000 | $50,000 | $50,000 |
| Retained earnings (cumulative net income) | $2,371 | $36,632 | $91,254 |
| Total Equity | $52,371 | $86,632 | $141,254 |
| Total Liabilities + Equity | $185,502 | $211,734 | $257,265 |
Break-Even Analysis
| Item | Value |
| Average revenue per visit (Year 2) | $25.50 |
| Direct materials per visit (18%) | $4.59 |
| Direct labor per visit (22%) | $5.61 |
| Payroll taxes on direct labor per visit (7.65% × $5.61) | $0.43 |
| Total variable cost per visit | $10.63 |
| Contribution margin per visit | $14.87 |
| Contribution margin (%) | 58.31% |
| Annual fixed operating costs (Year 2 OpEx; depreciation and one-time excluded) | $174,385 |
| Break-even visits per year | 11,728 visits |
| Break-even visits per month | 978 visits |
| Break-even revenue (annual) | $299,064 |
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