K A L A FAT I S
AESTHETCIS
BUSINESS PLAN:
Dear : Eugene Theodore Kalafatis [ AKA DAD]
I am writing this to you in the form of my business plan that I have put together. For a long
time now, I have been indecisive of what I want to do with my life and career. I have been too
scared to take the step forward in pursuing my studies as I was scared in picking the wrong
thing or wasting your time and money in doing so. I have thought long and hard about the
steps I want to take to reach my career goals. Having you as my father and role model has
influenced my life in such a way where I have learnt that if you want to succeed and be
better and different to the rest, you must put in more hard work and effort than everyone
else.
I see that in you because you never rest, and you are so devoted to your company that you
have built from the bottom up. I aspire to be like you Dad. For a long time now, I have always
said to myself I have something to prove to not anyone but myself. I have set high standards
for myself and my life that I am 100% responsible for and to achieve.
Sometimes I tell myself I am still young, and I have time to figure out what I want to do, but
then I also think to myself in the time and years I have now, where most people my age are
just studying for a degree for 4 years and relying on their parents for everything. I can in that
time build an operating business up. I have been working now for almost 1 and half years.
What I came to realize is that all business owners have something in common and that is
they all had to start somewhere and take that leap of fear. I’ve also learnt most people
continue to stay in their comfort zones and that is what I am most scared of. Staying in my
comfort zone won’t allow me to grow my career in the ways and standards I want to grow it.
Therefore, I am coming to you with my business plan in hopes that you will help me
financially with the cost of the courses I need to start up this business as well as helping me
start this business. Once I have done this, I plan to repay you back everything you have given
me once I start to make money with the business.
TABLE OF CONTENTS
1] EXECUTIVE SUMMARY
2] THE GROWING MARKET IN AESTHETICS
3] DETAILS ON THE COURSE
4] COMPETITORS & PRICING
5] TARGET MARKET
6] COMPETITIVE ADVANTAGE / ANALYSIS
7] SWOT ANALYSIS
8] MARKETING
9] CUSTOMER RELATIONSHIP
10] BUDGET / FINANCE
11] OPERATIONS MANAGEMENT
EXECUTIVE SUMMARY
As you know by now Aesthetics is a fast-growing industry. Non-invasive
Aesthetics is referred to as a non-surgical procedure designed to combat signs of
aging, rejuvenate and refresh skin as well as slimming. We all know that the most
popular is Botox injections and dermal fillers. For centuries now aesthetics has
gotten more popular by the day as more people feel the need and want to improve
their physical well-being and most importantly their appearance. The Non-invasive
Aesthetic market size was sitting at 62.8 billion in 2021. The Global Aesthetic
medicine market is expected to reach the value of 107 billion by the year 2028.
The compounded annual growth rate [CAGR] means that the annualized average
rate of revenue growth between 2 given years is 9.8% over the forecast period.
This essentially means that investing into the Non-invasive Aesthetics industry is a
wise & smart investment to make, as it brings in more revenue as opposed to an
industry with a CAGR of 8%. To give you a more detailed insight, the
recommended CAGR rate is between 10%-20% in any industry.
The COVID-19 pandemic underscored the resilience of the aesthetics injectables
market, which had already been evident in a previous crisis: during the 2008
recession it lost only 2.4 percent of its sales and less than 20 percent of its market
capitalization while the S&P 500 Index contracted by 50 percent. After contracting
by a moderate 7 percent in 2020, the aesthetics market rebounded swiftly in 2021,
aided by a post Covid increased consciousness and focus on aesthetics procedures.
Studies have shown that the Non-invasive Aesthetic industry has the potential to
grow over 12% more than it is over a span of 5 years.
Most importantly The CAGR growth rate for Africa is expected to grow to 11,52%
and reach a value of 64,155 million US dollars in 2030.
To conclude,
When starting up a business one needs to think about the market that is currently in
South Africa for this industry in Non-invasive Aesthetics. South Africa has the
space and the market for this industry to grow and succeed. This allows for an
advantageous opportunity for starting up a business in Non-invasive Aesthetics.
THE GROWING MARKET IN SOUTH AFRICA
The South African market for Non-invasive Aesthetics is rapidly growing in
demand due to the –
1] Growing obese population
2] raising awareness of aesthetic procedures
3] rising use of minimally invasive equipment
4] technological innovation in devices
5] The growing aesthetic consciousness among people, especially the elderly
population, is creating the demand for various devices being utilized in aesthetic
procedure
A study by the University of Cape Town published in July 2022 indicated that a
lack of physical activity and increased consumption of unhealthy food was the
leading cause of the rising trend of obesity in South Africa’s women of
childbearing age.
The opportunities for market players, like myself, are the increasing trend in
fashion and growing awareness of self-beauty and personal care, and the increase
in disposable income. The other reasons that help the boosting demand for
aesthetic products include the rise in the number of cosmetic procedures performed
each year. An article by Sowetan LIVE published in April 2021 on the increasing
demand for cosmetic procedures in South Africa indicated that in Cape Town, there
was a 30% increase in the facial procedures.
The difference between Aesthetics that are non-invasive, like Cryolipo [fat
freezing] compared to invasive procedures like Liposuction is that Non-invasive is
more cost efficient when comparing it to invasive surgeries like implants.
INVASIVE PROCEDURES
NON-INVASIVE PROCEDURES
Extended recovery periods
No incisions, stitches or scars
Experience pain, swelling and
bruising
Risks of complication with
anesthesia, bleeding and infections
Not expensive
Enhances your natural beauty and
highlights your facial features.
Expensive and significant results.
Significant results after 1-2 sessions
depending on what Aesthetic
procedure you are doing
DETAILS ON THE COURSE
The course I have researched is by the Laser & Aesthetics Academy. They offer
many other courses which I could use and do in the future but for now I want to
focus on the Cryolipolysis course.
In order to do the Cryolipolysis course I need to start with the Facial course, where
you learn fundamentals to map a face and mapping the body in order to perform
cryolipolysis, Cavitation, Radiofrequency.
Cost: R5800
Cryolipolysis course.
In this one course I learn and get certified to perform procedures known as:
1. Cryolipolysis- Fat reduction
2. Cavitation – Body contouring and laser lipo
3. Radiofrequency – skin firming and toning
4. RF face and body
After this course I am legally allowed to perform these procedures and start up a
business.
The best advantage to tis course is that with the cost of this course the machine
used to perform these procedures is included in the cost.
That makes it more ideal as I have the machine while I am training and doing the
course. This also allows me to already have a machine when starting the business
up.
Cost; R58 500
MICRONEEDLING TRAINING
To treat skin concerns via collagen production. This treats acne scars, age spots,
hair loss, fine lines ,wrinkles and pigmentation.
Cost: R7950 [with kit]
Cost; R4000 [without kit]
Now before you get a shock at the price [as I know I did] of this course in the next
part you will see the pricing of such a procedure being done on a client and a
reminder I will pay you back.
COMPETITORS AND PRICING
Pricing
Treatment 1: Cryolipolysis:
Based on research by browsing and calling up some competitors the average
pricing for this procedure is around R1500-R2000 per session.
When treating smaller areas on the body 1-2 sessions is enough but if you want to
treat a larger area like your thighs and back then 2-3 sessions may be necessary in
order to receive significant results.
So, if we take this into consideration on average, you are looking at these figures.
1 session; R1500
2 sessions; R3000
3 sessions; R4500
[ per person]
For instance, in 1 day if I possibly have only 10 clients:
1 session clients: R1500 x 10 clients = R15 000
2 sessions; R3000 x 10 clients= R30 000
3 sessions; R4500 x 1o clients = R45 000
Clients have the option to pay for the session upfront or as per session they have.
For example, if I have 3 sessions, I can pay R4500 upfront so my next 2 sessions
are free, or I can pay R1500 each time I go for a session. All depending on what
the clients want.
Therefore, if we are looking at the price per session and you have a minimum of 10
clients doing 1 session that is already R15 000 per day. If I make R15 000 a day x
in 30 days = R450 000 monthly with only seeing 10 clients per day. Annually is
R450 000 x 12 months = R5 400 000 per year.
This above calculation is only based on seeing 10 clients a day. One session is
about 30 minutes which therefore means that there is an opportunity to have more
than 10 clients in one day. Also, to take into consideration if the business grows, I
can employ someone to perform the procedures at the same time so therefore
doubling the number of clients that can be seen in 1 day.
Treatment 2: Cavitation
Non-surgical method of reducing cellulite and localized fat. This is done by
applying pressure on fat cells through ultrasonic vibrations. Cavitation gives faster
results.
Pricing
With Cavitation each session is around R2000-R3000.
From research given its recommended to do between 1-3sessions.
1 session; R2500
2 sessions; R5000
3 sessions; R10 000
Based on 10 clients a day on average you are looking at the following numbers:
1 session – R2500 x 10 clients = R25 000 /day
2 session package - R5000 x 10 clients = R 50 000 /day
3 session package- R 10 000 x 10 clients = R100 000 / day
This is just an estimate of the potential the 1 treatment can make for the business in
revenue.
RADIOFREQUENCY THERAPY [RF]
This is used for tightening your skin and getting rid of wrinkles and fight sun damage by
stimulating the production of collagen.
PRICE: [ 20 min]
Between R1000-R2000 per session.
Depending on the client and their skin problem 1-6 sessions may be needed.
1 Session; R1000 x 10 clients = R10 000 / Day
2 sessions R2000 x 10 clients = R 20 000 / Day
3 sessions: R3000 x 10 clients -= R30 000/ Day
And so it goes on to 6 session per client [if needed]
Target Market
With society changing the social right and wrongs that were in place before, more men will
feel comfortable in doing these procedures in order to make themselves feel more
acceptable and improving their appearances.
These procedures