view details of venture id 43417
Venture ID 43417
Home Country
Entry Date Thursday, December 30, 2004
Listing Last Updated Thursday, December 30, 2004
Seeking Investors from... Southeast
Line of Business/Industry Manufacturing of SpaCapsule - dry watermassage equipment.
Amount of funds sough (Minimum) 750,000.00 USD
Amount of funds sought (Maximum) 2,500,000.00 USD
Funding Sought for Stage Early Stage (Other)
Products/Services the Venture sells or plans to sell Manufacturing and developing retail locations in US and abroad.
Current/prospective Customers of the Venture Anybody who wants to establish their own business.
Year Established 2000
Current Number of Employees 13
Registered Capital No information available.
Last Year's Gross Sales 1,750,000.00 USD
Last Year's Gross Profit 350,000.00 USD
Last Year's Cashflow 200,000.00 USD
Number of Investors sought 1
Percentage of Equity offered to Investors 50
Outline of the Current Enterprise Simulated Environment Concepts Inc (SEC) is an Original Equipment Manufacturing company which specializes in production of SpaCapsules® - Dry Water Massage Unit for the leisure industry and the medical markets. SEC manufactures the most advanced Dry Water Massage Units in the global market, which satisfies rising global demand for such machines. Having a US patent N 6,428,466 for SpaCapsule® granted to SEC on August 6, 2002 by the United States Patent Bureau, our company has a unique opportunity to become a world leader in the industry. SpaCapsule is a fully self-contained system that provides an invigorating and powerful massage, by means of multiple water jets, while the user remains fully dressed and dry. Combination of aromatherapy, visual and audio stimulation, provides complete relaxation of body and mind. By adjusting temperature and pressure of the pulsating jets, the user can customize the massage experience. This experience is further enhanced by user’s selection of the aromatherapy scents as well as video and audio program. Such system effectively creates an environment of rejuvenation in a shortest time, which in itself is a rapidly growing trend. SpaCapsule has an unprecedented and superior range of applications which are meeting the highest standards of leisure and medical industries. SpaCapsule means fewer trained personnel and more satisfied customers/patients. SpaCapsule enjoys exclusivity of the entire market, having only one competitor, whose equipment was designed in 1980 with inferior appearance and functions, SpaCapsule is truly poised for a great growth.
Outline of the Prospective Venture The executives of the company have pioneered the concept of “Mall Massage”. In 1998 first installation of similar equipment in a West Palm Beach Mall resulted in a birth of a new business concepts. There were a few drawbacks: a) unavailability of suitable equipment; b) unavailability of previous business model. The initial business intent was: a) to create an exciting, attractive, functional device; b) create peripheral, custom-labeled product base (small massagers, aromatherapy oils, creams, massage related items, etc.); c) establish 100-150 US and 100 Worldwide retail locations with machines and products (mall, airport, rest areas, theme parks, etc.); d) offer the new SpaCapsule for sale to other retail operators, doctors, tanning salons, beauty salons, private individuals (in-home use), hotels, health clubs, etc; BENEFITS OF MALL BUSINESS Generation of Immediate Cash Flow. Ability to sell with substantial profit, less profitable locations to a private Owner-Operator. Ability to sell significant amount of peripheral products. Retail locations serve as advertising (marketing point) for sale of SpaCapsules and related products. Positioning of the company for acquisition or NASDAQ listing. COST AND PROFIT OF RETAIL LOCATION Set-up cost per location (machines, furniture, initial inventory of products, other retail equipment) = $30,000-35,000 Monthly gross revenue = $15,000-18,000 (approx. yearly gross $18-21,600,000) Monthly Expenses = $8,000-12,000 Monthly profit = $3,000 to 10,000 (location dependant $6,500 average) Potential Average Monthly Profit from 100 locations = $650,000 ($7,800,000 net yearly) COST AND PROFIT OF MANUFACTURING FACILITY Cost of production of One SpaCapsule Unit (with overhead) = $13,000 Average Wholesale Price = $18,500 Current Ability to produce = 240-300 units per year (240x $18,500 = $4,440,000 yearly gross) Potential to expand production, in a short term, to 500 units per year. REQUEST / WISH LIST A credit line of $3,500,000-4,500,000 during a period of 4 years to establish 100-150 retail locations (1 new location every 2 weeks) with subsequent locations being established with profit from operations. Hiring a CEO to oversee and give direction to the entire project. Creating a position and hiring a VP with experience in retail operations and Mall Management Relations. Increase peripheral sales of SpaCapsule to other interested parties (doctors, salons, spas, etc.). Development of a full-time R&D department to invent new Massage Devises and other products. Acquisition of other patents for manufacturing and introduction into retail environment.
Market Data 
Markets 
AI
