Donald Quinn
Auburn, WA (USA)
Role(s):
Founder/Owner/Principal
Quinns Inc
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Startup
Location:
Auburn
Industry:
Healthcare
Year Founded:
2010
Number Employees:
1-10 people
Description:
Quinns Inc. is a start-up company wanting to enter the retail massage market by opening a “Massage Envy of Kent” franchise satisfying the ever growing need for massage of the baby boomers generation and particularly in the Kent area with 23,196 potential customers within five miles radius with income over $30K and over 401,500 yearly visitors of the Kent Station shopping and entertainment area. This is an one to two million dollars per year business with a yearly breakeven point of ca. $700,000. (This numbers are supported by the Massage Envy franchises in the nearby, comparable areas of Renton and Federal way for 2009.) Massage Envy’s concept of membership based business where customers sign 3, 6 or 12 month contracts and pay monthly dues of $59 for which they get an one free one hour massage and any subsequent hour of $39 is what makes the model unique and successful. I dare you to find a quality massage for under $90 in the greater Seattle area. The second differentiator is that the massage therapists are paid minimum wage if they are not performing massages. This keeps them motivated to rebook customers and bring in more business and keeps our costs down.
Our potential customers include clients recovering from injuries, pampering themselves, serious athletes (professional or amateur) or clients who prefer alternative health care. Our marketing strategy includes local advertising and seasonal promotions, local networking, Kent Chamber of Commerce, health care referrals, hotel referrals, online website, location traffic, charity events and franchise support. This plus our unique combination of services and outstanding location and our interaction with the customers are setting us up for huge success. Our primary competition are spas, however, none in 5 miles radius from Kent Station and price way above ours ($90 - $110). Our secondary competition comes from private and individual practitioners. These small businesses do not have the infrastructure or resources to expand beyond 20-30 clients and pose no serious threat to us.
To open one Massage Envy clinic costs $400,000 with $236,000 going to initial build up and equipment, $104,000 for first 3 months payroll expenses and $59,000 for first 3 months operating expenses. We seek an investor to either provide the full needed amount or to provide $150,000 and we will supplement the rest with a bank loan.
Our team consists of four partners, two of which are currently Massage Envy clinics managers and have been awarded and recognized by the Massage Envy community nationwide for their outstanding performance in 2009 (sales closing percentage and the biggest increase of massages performed year over year). They earned their franchise owner “The Franchise of the Year” award for 2009. We know the business and know what we are doing and how to make it successful.
In case the business does not work out, we can sell the franchise to another owner and will get support by the Massage Envy franchise network.
We offer to the investor a repayment of the initial investment within 3 years with 15 – 20% return on investment. Or the investor can buy shares in our company and be an integral part of the business, earning owners draw and dividends. Or we can do a combination of the above two.