Table of Content
Reiki Business Plan for starting your own business
Are you planning to start a reiki business? Reiki is a technique to heal emotional, mental and physical ailments by activating the natural healing process of a person using energy transfers through palms and touch.
Before actually opening your reiki center, you have to make a comprehensive reiki business plan, enlisting your major decisions and preparations. If you have little or no experience of writing a business plan, hiring an expert for making a business plan will be the best option. Otherwise, you can take help from sample business plans like the one we are providing here for a reiki startup named, ‘Sandra Reiki Center’.
Executive Summary
2.1 The Business
Sandra Reiki Center will be a licensed reiki business owned by Sandra Chastain, located in Dallas, Texas. Business will be aimed at helping people healing their ailment, alleviating depression, reducing their stress, improving their sleep, boosting their immune function, enhancing their mental skills by activating their natural self-healing system and rebalancing. The business will be started in an existing therapy center which ceased to function two months ago.
2.2 Management
Before starting a reiki business, you have to decide that on which scale will you be able to manage your business. Will you be able to manage your startup at a larger scale or not?
Sandra Reiki Center will be managed by a hired manager. Sandra is a licensed reiki minister and master, she is involved in reiki practicing and teaching for about 20 years. She along with some of her trained reiki practitioners will hold the reiki sessions.
2.3 Customers
If you are thinking about how to start a reiki business and gain customers in the very start. Don’t worry, reiki business is one of those businesses which keep blooming throughout the year, provided that you manage and market your business effectively.
Considering the present situation, where every second person is in depression, this business has a lot of market. Sandra Reiki Center will initially be serving the ailed and stressed in Dallas only.
2.4 Target of the Company
Sandra Reiki Center aims at becoming the most renowned reiki center in the whole Dallas. Our target is to ensure that all our clients are leaving our center in a fully satisfied and relaxed state.
Our financial targets include balancing the cost of the startup with the profits earned just within the eight months of the launch.
Company Summary
3.1 Company Owner
Sandra Chastain will be the owner of Sandra Reiki Center. Sandra has done her M.A. in metaphysical science from the University of Sedona. Sandra herself is a licensed master of reiki, certified in Emotion Freedom Techniques and advanced energy healing techniques. From the past five years, she is servicing as a reiki practitioner and teacher in different centers. Due to her exceptional research in metaphysical sciences, she was awarded the membership of International Association of Reiki Professionals.
3.2 Why the Business is being started
Sandra has been practicing her exceptional skills in different centers for about 20 years, now she thinks that starting my own reiki business would increase the chance to serve more people and learning. This will also allow her to make a profit by providing unparalleled service to her clients.
3.3 How the Business will be started
After great research about how to start a reiki practice business, Sandra has decided to hire an experienced manager to schedule appointments, registrations reiki license and dealing with inquiries in order to make sure that all the operations are running systematically and efficiently.
For providing healing services to patients, she, her students, a hired reiki practitioner, massage therapist, and other staff will be there in the reiki center during the working time.
The costs for the startup are as follows:
The detailed startup requirements are given below:
Start-up Expenses | |
Legal | $55,300 |
Consultants | $0 |
Insurance | $32,750 |
Rent | $32,500 |
Research and Development | $32,750 |
Expensed Equipment | $32,750 |
Signs | $1,250 |
TOTAL START-UP EXPENSES | $187,300 |
Start-up Assets | $0 |
Cash Required | $332,500 |
Start-up Inventory | $32,625 |
Other Current Assets | $232,500 |
Long-term Assets | $235,000 |
TOTAL ASSETS | $121,875 |
Total Requirements | $245,000 |
START-UP FUNDING | $0 |
START-UP FUNDING | $273,125 |
Start-up Expenses to Fund | $11,875 |
Start-up Assets to Fund | $15,000 |
TOTAL FUNDING REQUIRED | $0 |
Assets | $23,125 |
Non-cash Assets from Start-up | $18,750 |
Cash Requirements from Start-up | $0 |
Additional Cash Raised | $18,750 |
Cash Balance on Starting Date | $21,875 |
TOTAL ASSETS | $0 |
Liabilities and Capital | $0 |
Liabilities | $0 |
Current Borrowing | $0 |
Long-term Liabilities | $0 |
Accounts Payable (Outstanding Bills) | $0 |
Other Current Liabilities (interest-free) | $0 |
TOTAL LIABILITIES | $0 |
Capital | $0 |
Planned Investment | $0 |
Investor 1 | $332,500 |
Investor 2 | $0 |
Other | $0 |
Additional Investment Requirement | $0 |
TOTAL PLANNED INVESTMENT | $695,000 |
Loss at Start-up (Start-up Expenses) | $313,125 |
TOTAL CAPITAL | $251,875 |
TOTAL CAPITAL AND LIABILITIES | $251,875 |
Total Funding | $255,000 |
Services for customers
Plans like how to advertise reiki services or how much does reiki cost or how to devise the pricing strategy can only be decided after deciding the services you are going to provide in your healing center.
Sandra Reiki Center will provide the following services initially:
- Usui Reiki: Reiki technique involving the transfer of healing energy through movements of fingers and palms making specific patterns on the body being treated. As it is the most useful and commonly used reiki technique, so we have decided to hold different sessions ranging from 30 minutes to 4 hours for it.
- Holy Fire Reiki: A 30 and 45-minute session depending on your needs for healing worries and stress spontaneously.
- Reiki Drum Technique: A 30-minute session in which drumming technique is adopted for emotional and mental reprogramming through gentle drumming followed by normal hand operations over the client’s body.
- Crystal Angel Bed Session: Healing session by using different crystals and a 30-minute session on crystal bed based on vibrating frequencies of crystals.
- Massage Therapy: Massage session for different ailments ranging from 30-minutes to 2 hours.
Sandra Reiki Center will be providing these services for 18 hours a day. To facilitate our clients, we will allow our customers to make reservations online via our website.
Marketing Analysis of Reiki Business
Before you open center reiki, the first step you will have to take is to make a comprehensive business plan, including the detailed and accurate marketing analysis. It is advisable to hire marketing experts along with the services of reiki practitioners too if you yourself have no idea about starting a reiki practice business basics.
Note
Only a person with a strong background of metaphysics and reiki techniques can give you reiki room ideas because he/she can tell which positions and environment will be the most suitable for the practitioner as well as the patient.
As Sandra, herself is an experienced reiki expert and has worked in several centers before, so she has decided to seek the services of just a marketing expert for helping her make an effective marketing plan.
If you want to know how to get reiki clients just with the startup, you have to do a little effort before devising your policy for reiki marketing. It is recommended to study other reiki business examples and observe what others are doing before writing your own plan. The sample marketing plan Sandra Reiki Center has made is given here for your help.
Operational and Strategic Planning
5.1 Market and Industry Trends
Before starting any business, it is important to study the market trends through manual surveys and online research. In the United States, there still are many people who prefer to heal their disorders by alternative ways other than taking medicines. According to a survey of 2007, around 1.2 million adults tried reiki and other therapies of its kind once every year. This can be better understood by analyzing the stats given by IBISWorld, according to which alternative healthcare centers have generated a total of $17 billion in 2018 and their number is increasing by the rate of 3.8%.
Also, more than 60 hospitals in the United States have adopted reiki as a part of their service, these stats show massage therapy has a lot of markets and it can prove to be immensely profitable provided that you plan and market it successfully.
5.2 Marketing Segmentation
Dividing the customers for your service into different segments and then studying the demands of each of these segments separately will help you a lot in making success during a very short period of time. The first step to being successful in business is to know the type of target audience which can become your future customers.
The detailed marketing segmentation of our target audience is as follows:
- Stressed and Depressed: This group will be the biggest consumer of our services, and will include the highly stressed and tensed persons such as the one whose loved ones have died, or who have experienced a big failure and want to have relief, peace and mental refreshment by reiki.
- Adults with emotional and mental imbalances: Adults and young facing the challenges of life and imbalances during their work or relationships will often require our service for having relaxation and energy to start again.
- Clients with chronic diseases: Old and weak clients whose ailment can’t be cured by eating medicines will also require our services for getting healing energy for keeping their immune system alive. Such clients, if they have some type of pain will also be a consumer of our massage therapy services.
The detailed market analysis of our potential clients is given in the following table:
Market Analysis | |||||||
Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
Stressed/ Depressed | 32% | 11,433 | 13,344 | 16,553 | 18,745 | 20,545 | 13.43% |
Emotionally/ Mentally Imbalanced | 48% | 22,334 | 32,344 | 43,665 | 52,544 | 66,432 | 10.00% |
Chronic Diseased | 20% | 12,867 | 14,433 | 15,999 | 17,565 | 19,131 | 15.32% |
Total | 100% | 46,634 | 60,121 | 76,217 | 88,854 | 106,108 | 9.54% |
5.3 Business Target
Our target is to better the lives of the ill and stressed people around us by serving them with our best. We want each of our customer to leave our center in a fully relaxed state.
Our financial targets to be achieved over the course of the next three years are as follows:
- To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year
- To balance the initial cost of the startup with earned profits by eight months of the launch
5.4 Product Pricing
Sandra Reiki Center doesn’t only aim to just earn more and more profits; our main purpose is to serve the community. Besides the fact that demand of our services is really high in the market, we still have priced our services low as compared to our competitors. We have different prices for the same service depending upon how long your reiki session lasts.
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Strategy
Sales strategy is also an important factor in deciding the success and failure of a startup. It includes the details that how would people know about you and your services and why would they choose your services over others. In simple words, it comprises of a detailed competitive analysis and your advertisement strategy for business. It also includes your search for reiki healing business names and finds one for yours that compel the people to come inside.
6.1 Competitive Analysis
To survive and excel in a competitive environment we have come up with a series of competitive aspects which others in this market lack. First, we have a low pricing strategy than our competitors. Secondly, we have an excellent location nearer to the residential communities as well as the professional institutes. Our biggest competitive advantage will be the services of our highly qualified and affectionate staff. We will provide a pleasurable and peaceful environment by soothing lighting, sounds and smells with an incredible reiki healing service to our clients which will make them to visit us over and over again. Lastly, for our client’s convenience, we are developing a website for making online appointments and payments before having a session with us.
6.2 Sales Strategy
After carrying out a detailed analysis, our experts came up with the following brilliant ideas to advertise and sell ourselves.
- We will arrange informational sessions for increasing public awareness about the health benefits of reiki healing techniques
- We will provide free service to the first 25 appointments after our launch
- We will establish a strong online presence by using SEO techniques
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
Sales Forecast | |||
Unit Sales | Year 1 | Year 2 | Year 3 |
Usui Reiki | 1,887,030 | 2,680,320 | 2,588,240 |
Holy Fire Reiki | 802,370 | 815,430 | 823,540 |
Reiki Drum/ Crystal Angel Bed | 539,320 | 770230 | 1,002,310 |
Message Therapy | 265,450 | 322,390 | 393,320 |
TOTAL UNIT SALES | 3,494,170 | 4,588,370 | 4,807,410 |
Unit Prices | Year 1 | Year 2 | Year 3 |
Usui Reiki | $140.00 | $150.00 | $160.00 |
Holy Fire Reiki | $600.00 | $800.00 | $1,000.00 |
Reiki Drum/ Crystal Angel Bed | $700.00 | $800.00 | $900.00 |
Message Therapy | $650.00 | $750.00 | $850.00 |
Sales | |||
Usui Reiki | $2,149,800 | $2,784,000 | $3,383,200 |
Holy Fire Reiki | $120,050 | $194,500 | $268,500 |
Reiki Drum/ Crystal Angel Bed | $50,110 | $71,600 | $93,000 |
Message Therapy | $139,350 | $194,600 | $249,850 |
TOTAL SALES | |||
Direct Unit Costs | Year 1 | Year 2 | Year 3 |
Usui Reiki | $0.70 | $0.80 | $0.90 |
Holy Fire Reiki | $0.40 | $0.45 | $0.50 |
Reiki Drum/ Crystal Angel Bed | $0.30 | $0.35 | $0.40 |
Message Therapy | $3.00 | $3.50 | $4.00 |
Direct Cost of Sales | |||
Usui Reiki | $989,300 | $1,839,000 | $2,679,700 |
Holy Fire Reiki | $66,600 | $119,900 | $173,200 |
Reiki Drum/ Crystal Angel Bed | $17,900 | $35,000 | $52,100 |
Message Therapy | $19,400 | $67,600 | $115,800 |
Subtotal Direct Cost of Sales | $1,294,100 | $1,699,400 | $2,104,700 |
Personnel plan
Before starting a spiritual healing business, you have to gather a team with deep knowledge and practice of healing techniques and meditation. Hiring the right person before the actual launch of the business will help you after as well as before initiating your business. They can give meditation business ideas and ideas about creating a soothing environment for the patient.
7.1 Company Staff
Sandra herself is a master of reiki techniques, she has decided to hire some reiki practitioners along with a massage therapist to help her running her center. But Sandra has no idea about the management systems thus she has decided to hire an experienced General Manager for organizing and systemizing all the matters.
The company will hire the following persons initially:
- 1 General Manager for managing tasks
- 1 Front Desk Officer for acting as a receptionist, receiving calls and making reservations
- 1 Accountant for maintaining financial records
- 2 Sales Executives responsible for marketing and discovering new ventures
- 4 Reiki Practitioners for providing healing energy transfer to clients
- 1 Massage Therapist for holding massage sessions
- 4 Cleaners/Assistants for cleaning the facility and assisting with day-to-day operations
- 1 Technical Assistant for managing company’s web pages and social media accounts
- 1 Driver for transportation tasks
7.2 Average Salary of Employees
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
General Manager | $85,000 | $95,000 | $105,000 |
Front Desk Officer | $42,000 | $45,000 | $48,000 |
Accountant | $45,000 | $50,000 | $55,000 |
Sales Executives | $145,000 | $152,000 | $159,000 |
Reiki Practitioners | $345,000 | $352,000 | $359,000 |
Massage Therapist | $45,000 | $48,000 | $51,000 |
Cleaners/Assistants | $145,000 | $152,000 | $159,000 |
Technical Assistant | $42,000 | $45,000 | $48,000 |
Driver | $45,000 | $48,000 | $51,000 |
Total Salaries | $894,000 | $939,000 | $984,000 |
Financial Plan
The last step before starting any business is to make its financial plan. A financial plan enlists all the details about how will you adjust the expenditures and costs of the startup with the profits earned. Setting the budget for your business isn’t enough for managing the company’s finances effectively. It is strongly recommended to make a thorough financial plan for achieving the goals you have set for your business.
You will only be able to balance your startup costs and earning a large amount of profit if your desired customers come to visit you. To attract them just after the startup, you have to first go through for reiki business name ideas and select a few holistic healing business names, which appeal you the most. After you have decided the suitable name for your business, your advertisement techniques will make a difference for your business.
8.1 Important Assumptions
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 11.00% | 12.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 26.42% | 27.76% | 28.12% |
Other | 0 | 0 | 0 |
8.2 Brake-even Analysis
Brake-Even Analysis | |
Monthly Units Break-even | 5530 |
Monthly Revenue Break-even | $159,740 |
Assumptions: | |
Average Per-Unit Revenue | $260.87 |
Average Per-Unit Variable Cost | $0.89 |
Estimated Monthly Fixed Cost | $196,410 |
8.3 Projected Profit and Loss
Pro Forma Profit And Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $309,069 | $385,934 | $462,799 |
Direct Cost of Sales | $15,100 | $19,153 | $23,206 |
Other | $0 | $0 | $0 |
TOTAL COST OF SALES | $15,100 | $19,153 | $23,206 |
Gross Margin | $293,969 | $366,781 | $439,593 |
Gross Margin % | 94.98% | 94.72% | 94.46% |
Expenses | |||
Payroll | $138,036 | $162,898 | $187,760 |
Sales and Marketing and Other Expenses | $1,850 | $2,000 | $2,150 |
Depreciation | $2,070 | $2,070 | $2,070 |
Leased Equipment | $0 | $0 | $0 |
Utilities | $4,000 | $4,250 | $4,500 |
Insurance | $1,800 | $1,800 | $1,800 |
Rent | $6,500 | $7,000 | $7,500 |
Payroll Taxes | $34,510 | $40,726 | $46,942 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $188,766 | $220,744 | $252,722 |
Profit Before Interest and Taxes | $105,205 | $146,040 | $186,875 |
EBITDA | $107,275 | $148,110 | $188,945 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $26,838 | $37,315 | $47,792 |
Net Profit | $78,367 | $108,725 | $139,083 |
Net Profit/Sales | 30.00% | 39.32% | 48.64% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
Pro Forma Cash Flow | |||
Cash Received | Year 1 | Year 2 | Year 3 |
Cash from Operations | |||
Cash Sales | $40,124 | $45,046 | $50,068 |
Cash from Receivables | $7,023 | $8,610 | $9,297 |
SUBTOTAL CASH FROM OPERATIONS | $47,143 | $53,651 | $59,359 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
SUBTOTAL CASH RECEIVED | $47,143 | $53,651 | $55,359 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $21,647 | $24,204 | $26,951 |
Bill Payments | $13,539 | $15,385 | $170,631 |
SUBTOTAL SPENT ON OPERATIONS | $35,296 | $39,549 | $43,582 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
SUBTOTAL CASH SPENT | $35,296 | $35,489 | $43,882 |
Net Cash Flow | $11,551 | $13,167 | $15,683 |
Cash Balance | $21,823 | $22,381 | $28,239 |
8.5 Projected Balance Sheet
Pro Forma Balance Sheet | |||
Assets | Year 1 | Year 2 | Year 3 |
Current Assets | |||
Cash | $184,666 | $218,525 | $252,384 |
Accounts Receivable | $12,613 | $14,493 | $16,373 |
Inventory | $2,980 | $3,450 | $3,920 |
Other Current Assets | $1,000 | $1,000 | $1,000 |
TOTAL CURRENT ASSETS | $201,259 | $237,468 | $273,677 |
Long-term Assets | |||
Long-term Assets | $10,000 | $10,000 | $10,000 |
Accumulated Depreciation | $12,420 | $14,490 | $16,560 |
TOTAL LONG-TERM ASSETS | $980 | $610 | $240 |
TOTAL ASSETS | $198,839 | $232,978 | $267,117 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $9,482 | $10,792 | $12,102 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
SUBTOTAL CURRENT LIABILITIES | $9,482 | $10,792 | $12,102 |
Long-term Liabilities | $0 | $0 | $0 |
TOTAL LIABILITIES | $9,482 | $10,792 | $12,102 |
Paid-in Capital | $30,000 | $30,000 | $30,000 |
Retained Earnings | $48,651 | $72,636 | $96,621 |
Earnings | $100,709 | $119,555 | $138,401 |
TOTAL CAPITAL | $189,360 | $222,190 | $255,020 |
TOTAL LIABILITIES AND CAPITAL | $198,839 | $232,978 | $267,117 |
Net Worth | $182,060 | $226,240 | $270,420 |
8.6 Business Ratios
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 4.35% | 30.82% | 63.29% | 4.00% |
Percent of Total Assets | 4.35% | 4.71% | 5.80% | 9.80% |
Accounts Receivable | 5.61% | 4.71% | 3.81% | 9.70% |
Inventory | 1.85% | 1.82% | 1.79% | 9.80% |
Other Current Assets | 1.75% | 2.02% | 2.29% | 27.40% |
Total Current Assets | 138.53% | 150.99% | 163.45% | 54.60% |
Long-term Assets | -9.47% | -21.01% | -32.55% | 58.40% |
TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 4.68% | 3.04% | 2.76% | 27.30% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 25.80% |
Total Liabilities | 4.68% | 3.04% | 2.76% | 54.10% |
NET WORTH | 99.32% | 101.04% | 102.76% | 44.90% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 94.18% | 93.85% | 93.52% | 0.00% |
Selling, General & Administrative Expenses | 74.29% | 71.83% | 69.37% | 65.20% |
Advertising Expenses | 2.06% | 1.11% | 0.28% | 1.40% |
Profit Before Interest and Taxes | 26.47% | 29.30% | 32.13% | 2.86% |
Main Ratios | ||||
Current | 25.86 | 29.39 | 32.92 | 1.63 |
Quick | 25.4 | 28.88 | 32.36 | 0.84 |
Total Debt to Total Assets | 2.68% | 1.04% | 0.76% | 67.10% |
Pre-tax Return on Net Worth | 66.83% | 71.26% | 75.69% | 4.40% |
Pre-tax Return on Assets | 64.88% | 69.75% | 74.62% | 9.00% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | 19.20% | 21.16% | 23.12% | N.A. |
Return on Equity | 47.79% | 50.53% | 53.27% | N.A. |
Activity Ratios | ||||
Accounts Receivable Turnover | 4.56 | 4.56 | 4.56 | N.A. |
Collection Days | 92 | 99 | 106 | N.A. |
Inventory Turnover | 19.7 | 22.55 | 25.4 | N.A. |
Accounts Payable Turnover | 14.17 | 14.67 | 15.17 | N.A. |
Payment Days | 27 | 27 | 27 | N.A. |
Total Asset Turnover | 1.84 | 1.55 | 1.26 | N.A. |
Debt Ratios | ||||
Debt to Net Worth | 0 | -0.02 | -0.04 | N.A. |
Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
Liquidity Ratios | ||||
Net Working Capital | $120,943 | $140,664 | $160,385 | N.A. |
Interest Coverage | 0 | 0 | 0 | N.A. |
Additional Ratios | ||||
Assets to Sales | 0.45 | 0.48 | 0.51 | N.A. |
Current Debt/Total Assets | 4% | 3% | 2% | N.A. |
Acid Test | 23.66 | 27.01 | 30.36 | N.A. |
Sales/Net Worth | 1.68 | 1.29 | 0.9 | N.A. |
Dividend Payout | 0 | 0 | 0 | N.A. |
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