Executive Summary

Investment Opportunity

K-Wellness Sanctuary is a revolutionary wellness concept that bridges authentic Korean beauty traditions with cutting-edge medical aesthetics in West Hollywood. Leveraging operational expertise from 45+ clinics in Asia, this 5,000 sq ft facility targets an underserved market segment between luxury spas ($500+) and budget options (<$150).

$1.9M

Initial Investment

Month 9

Break-Even Point

51%

3-Year ROI

$5.4M

Year 3 Revenue

Market Opportunity

West Hollywood represents the perfect launch market with 35,000+ residents and a median household income of $94,844 (40% above national average). Our target demographics include:

Primary: Wellness enthusiasts (28-42 years, $100-250K income)
Secondary: K-Culture aficionados (22-35 years, growing 9% CAGR)
Tertiary: Medical aesthetics seekers ($18.6B market, 14.88% CAGR)

Three-Pillar Service Model

BEAUTY (40% revenue)

K-Beauty facials, medical aesthetics, and injectables featuring authentic Korean protocols and cutting-edge technology.

$89-$350

WELLNESS (35% revenue)

Korean spa circuit, body treatments, and recovery services including traditional jjimjilbang facilities.

$65-$220

SOCIAL (25% revenue)

Group experiences, educational programs, and membership community fostering connection and loyalty.

$199-$999/month

Financial Projections

Metric	Year 1	Year 2	Year 3
Revenue	$3,120,000	$4,200,000	$5,400,000
EBITDA	$167,620	$618,000	$1,332,000
EBITDA Margin	5.4%	14.7%	24.7%
Members	575	850	1,200

Market Analysis

2.1 West Hollywood Regional Analysis

Demographics and Economic Characteristics

35,090

Population

$94,844

Median Income

48.9%

Age 25-44

40%

LGBTQ+ Population

West Hollywood offers one of California's highest density areas with exceptional economic indicators. The median household income is 40% above the national average, with the 25-44 age demographic representing nearly half the population at a median income of $108,078.

Local Market Environment

Commercial rent: $30-40/sqft (40% cheaper than Beverly Hills)
CUP Approval timeline: 2-3 months (vs. Beverly Hills 3-6 months)
Business environment: Favorable to innovative wellness businesses
Perfect score on Human Rights Campaign's Municipal Equality Index
Southern California medical spa average revenue: $1.9-2.0M per location

2.2 Target Customer Profile

Primary Target (40%): Wellness Enthusiasts

Age: 28-42 years
Income: $100,000-250,000
96% hold annual memberships
Monthly wellness/beauty spending: $500-1,500
Visit frequency: 7+ times annually

Secondary Target (35%): K-Culture Aficionados

Age: 22-35 years
Income: $60,000-120,000
Active on social media (#KBeauty 769,000 TikTok posts)
Monthly beauty/entertainment spending: $300-800
Early adopters of new trends

Tertiary Target (25%): Medical Aesthetics Seekers

Age: 35-54 years (52% of all patients)
Income: $150,000+
Average visit value: $536
70% retention rate
Male ratio: 12% (Growing 14.2% annually)

2.3 Competitor Analysis

West Hollywood Wellness Market Positioning Map

High Price

Low Price

Medical

Holistic

Premium Wellness

Luxury Medical

Budget Medical

Accessible Wellness

Sweet Spot

K-WELLNESS 🎯

Remedy Place

Wi Spa

The NOW

Beverly Hills Rejuvenation

LaserAway

Burke Williams

Massage Envy

Premium/Luxury

Medical Focus

Wellness/Holistic

Budget/Value

Competitor	Positioning	Price Range	Strengths	Weaknesses
Remedy Place	Social Wellness Club	$550-2,750/month	Premium branding, celebrity clientele	Excessive pricing, lacks Korean wellness
Wi Spa	Traditional Korean	$30-45 daily	Authenticity, 24-hour operation	Aging facilities, far from West Hollywood
The NOW	Neighborhood Spa	$45-105/massage	Accessibility, consistent service	Limited services, no medical
Beverly Hills Rejuvenation	Medical Aesthetics	Premium ($10-15/unit)	22 locations, medical expertise	Lacks holistic approach

                Market Gaps Identified
                $150-300 monthly membership price point absent
No authentic K-Wellness + Medical Aesthetics fusion model
Lack of male-focused wellness programs
Limited AI-based personalization services (only 40% adoption)
Insufficient community-centered social wellness spaces

            

2.4 K-Beauty/K-Wellness Trend Analysis

$27.56B

US K-Beauty Market 2024

9.05%

Annual Growth Rate

78%

Consumer Awareness

66%

K-Wellness Tourism Growth

Service Portfolio

Strategic Framework

Core Value Proposition

"Where Seoul Meets Sunset - Accessible Luxury Wellness Experience"

Three-Pillar Revenue Model

Pillar	Revenue Share	Core Promise	Target Segment
BEAUTY	40%	"Korean Glass Skin"	Results-driven professionals
WELLNESS	35%	"Mind-Body Reset"	Wellness enthusiasts
SOCIAL	25%	"Community & Culture"	Experience seekers

PILLAR 1: BEAUTY SERVICES

K-Beauty Facials

Express Menu (30 minutes)

Designed for the time-conscious West Hollywood professional, our express treatments deliver maximum results in minimum time.

Treatment	Price	Key Features
Aqua Glow Express	$89	Double cleansing, Korean aqua peel, LED therapy
Glass Skin Quick	$99	Enzyme exfoliation, Glass skin ampoule, Dewy finish
Pore Perfect	$89	Deep cleansing, Professional extraction, Calming mask

Signature Facials (60 minutes)

Our signature line represents the pinnacle of K-beauty innovation, incorporating techniques directly from Seoul's prestigious Gangnam district clinics.

Treatment	Price	Protocol Highlights
The Seoul Glow	$180	10-step protocol, AI skin analysis, Ultrasonic therapy
K-Idol Facial	$220	Celebrity-grade prep, Lymphatic drainage, Oxygen therapy
Gangnam Lift	$250	RF tightening, Microcurrent, V-line contouring

Medical Aesthetics

$12

Botox per unit

$450

Filler starting

$400

Skin Boosters

$2,500

Ultherapy Face

PILLAR 2: WELLNESS SERVICES

K-Spa Circuit

Thermal Experience - $65 per session

West Hollywood's first authentic Korean thermal journey featuring:

Jade-infused steam room (옥 스팀)
Himalayan salt therapy room
Cryotherapy ice room
Infrared red clay sauna (황토방)
Relaxation lounge with heated floors

Pass Type	Price	Benefits
Day Pass	$65	2-hour access + 10% service discount
Monthly Unlimited	$199	Unlimited access + guest privileges
Annual VIP	$1,999	Unlimited + 20% service discount

PILLAR 3: SOCIAL SERVICES

Membership Programs

$199

Discover Tier

$399

Elevate Tier

$599

Elite Tier

$999

Founders Club

Operations Plan

4.1 Location Selection & Facility Design

Optimal Location Criteria

Target Area: West Hollywood/Beverly Hills border
Priority zones: Melrose Avenue, Robertson Boulevard, Beverly Drive
Minimum 30 parking spaces required
Public transit accessibility (within 10-min walk from Metro)

Facility Layout (5,000 sq ft)

Zone	Square Footage	Key Features
Medical Zone	1,400 sq ft	3 treatment rooms, 1 recovery room, nurse station
K-Beauty Zone	900 sq ft	3 facial rooms, 1 VIP suite
Private Wellness Zone	1,500 sq ft	Korean spa, recovery tech, massage rooms, IV bar
Common Areas	700 sq ft	Reception, consultation room, lockers
Back Office	500 sq ft	Staff areas, storage, admin offices

4.2 Staffing Structure

Phase 1: Soft Opening (Months 1-3)

15 Staff Members

Medical Director (0.2 FTE)
Nurse Practitioners/PAs (2)
Registered Nurses (3)
Estheticians (4)
Support Staff (5)

Phase 2: Growth (Months 4-6)

20 Staff Members

Additional Estheticians (2)
Massage Therapists (2)
Spa Attendant (1)

Phase 3: Full Operations (Months 7-12)

25 Staff Members

Additional RN (1)
Additional Estheticians (2)
Support Staff (2)

4.3 Operating Hours & Booking System

Operating Schedule

Service Type	Weekdays	Saturday	Sunday
Medical & K-Beauty	9:00 AM - 8:00 PM	9:00 AM - 6:00 PM	10:00 AM - 5:00 PM
Wellness Zone	6:00 AM - 10:00 PM	7:00 AM - 9:00 PM	7:00 AM - 9:00 PM

4.4 Suppliers & Partnerships

                Strategic Partnerships
                Healthcare Network: Cedars-Sinai, UCLA Health
Hospitality: Four Seasons, Peninsula, Soho House
Fitness: Equinox, Barry's Bootcamp, F45
Financial: CareCredit, Cherry, American Express

            

Marketing Strategy

5.1 Brand Positioning

Core Positioning

"The Authentic K-Beauty Medical Spa"

Leverage credibility as Korea's largest network (40 locations)
Combine Beverly Hills prestige with Gangnam medical expertise
Pioneer AI-powered personalized beauty solutions

5.2 Digital Marketing Strategy

70%

Digital Budget

3:1

Target ROI

$200

CAC Target

2.8x

Member LTV

Content Marketing Strategy

Mass production of SEO-optimized educational content
AI-driven automated personalized content generation
Visual storytelling focused on before/after transformations

Influencer Strategy

Target influencers with K-Drama/K-Pop fan bases
Secure Hollywood entertainment industry KOLs
Performance-based partnerships with ROI tracking

5.3 Local Community Marketing

Key Partnerships

Beverly Hills hotel concierge networks
Premium fitness/yoga studio collaborations
Entertainment agency corporate contracts

5.4 Membership Program

Tier	Monthly Price	Core Benefits	Target Members
Basic	$200	Core services + 10% discount	300
Premium	$500	2 monthly treatments + 20% discount	200
Elite	$1,000	Unlimited wellness + 30% discount + VIP	75

5.5 Opening Promotion Strategy

Soft Launch (1 month)

50% discount for invited guests
Build word-of-mouth foundation

Grand Opening (3 months)

$100 credit for first visit
30% discount on package purchases
Review incentive program

Long-term Strategy

Data-driven targeted marketing
AI predictive modeling for churn prevention
Personalized retention programs

Financial Plan

6.1 Initial Investment Costs

Category	Amount	Details
Facility Lease & Build-out	$935,000
Security deposit	$150,000	6 months rent
Prepaid rent	$75,000	3 months advance
Interior construction	$630,000	All zones included
Design & permits	$80,000	Architecture & approvals
Equipment Purchase	$550,000
Medical equipment	$180,000	Lasers, HIFU, devices
K-Beauty equipment	$80,000	Aqua peel, LED, etc.
Spa facilities	$160,000	Saunas, steam rooms
IT & furniture	$130,000	Systems & fixtures
Working Capital	$420,000
Licenses & insurance	$80,000	All required coverage
Initial inventory	$100,000	Products & supplies
Marketing	$90,000	3-month campaign
Operating funds	$150,000	Cash buffer
TOTAL INVESTMENT	$1,905,000

6.2 Revenue Projections

$3.12M

Year 1 Revenue

$4.20M

Year 2 Revenue

$5.40M

Year 3 Revenue

24.7%

Year 3 EBITDA

Monthly Revenue Build-up (Year 1)

Month	Revenue	% of Target	Cumulative
Month 1	$120,000	80%	$120,000
Month 2	$140,000	93%	$260,000
Month 3	$190,000	127%	$450,000
Month 4-6	$690,000	100%	$1,140,000
Month 7-12	$1,980,000	100%	$3,120,000

6.3 3-Year Financial Projections

Income Statement	Year 1	Year 2	Year 3
Revenue	$3,120,000	$4,200,000	$5,400,000
COGS (25%)	$780,000	$1,050,000	$1,350,000
Gross Profit	$2,340,000	$3,150,000	$4,050,000
Operating Expenses	$2,172,380	$2,532,000	$2,718,000
EBITDA	$167,620	$618,000	$1,332,000
EBITDA Margin	5.4%	14.7%	24.7%

6.4 Key Performance Indicators

                Operational Efficiency Metrics
                Revenue per employee: $124,800 (Y1) → $216,000 (Y3)
Revenue per sq ft: $624 (Y1) → $1,080 (Y3)
Conversion rates: Spa→Beauty 40%, Beauty→Medical 25%
Member retention: 88% annual
Average transaction value: $250-$1,200

            

Legal and Regulatory Compliance

7.1 California Medical License Requirements

Medical Director Requirements

California physician license (MD/DO) mandatory
Medical Board of California approval required
Minimum 3 years clinical experience recommended
Minimum 8 hours monthly on-site supervision
Annual compensation: $150,000-$250,000 (part-time)

Medical Staff Licensing

RN: Authorized for Botox/filler injections
NP/PA: Independent practice authority
Medical Assistant: Limited to supervised auxiliary tasks
Esthetician: 600-hour training, non-invasive procedures only

7.2 West Hollywood Business Permits

Permit Type	Cost	Timeline	Requirements
Business License	$500-2,000/year	2-4 weeks	Annual renewal
Health Permit	$1,500	3-4 weeks	LA County approval
CUP (Medical)	$3,000	2-3 months	Planning commission
Building Permit	$10,000+	4-6 weeks	Construction plans

7.3 Insurance Requirements

$1M/$3M

Malpractice Coverage

$2M

General Liability

$50K

Annual Premium

100%

HIPAA Compliant

7.4 Legal Support Framework

                Existing Law Firm Resources
                Cohen Healthcare Law Group
                        Medical Spa specialist firm
MSA drafting and PC/Medical Director structure advisory
California PLLC incorporation expertise

                    
Compliance Budget: $50,000-$80,000 (first year)

            

Risk Management

8.1 Risk Assessment Matrix

HIGH RISK

Competition intensity
Medical Director dependency
Regulatory compliance

MEDIUM RISK

Market acceptance
Staff retention
Supply chain

LOW RISK

Location stability
Technology adoption
Insurance coverage

8.2 Financial Risk Analysis

Scenario	Revenue Impact	EBITDA	Action Required
Base Case (100%)	$3,120,000	$167,620	Execute plan
Optimistic (120%)	$3,744,000	$479,620	Accelerate expansion
Conservative (70%)	$2,184,000	-$144,380	Cost reduction 20%

8.3 Mitigation Strategies

Market Risk Mitigation

Focus on unique K-Wellness positioning
Premium service quality emphasis
Strategic partnerships with Korean beauty brands
Influencer marketing budget: $20-30k/month

Operational Risk Mitigation

Multiple part-time MDs vs single full-time
Long-term contracts with retention bonuses
In-house K-Beauty certification program
Competitive compensation (20% above market)

Financial Risk Mitigation

Initial investment $1.9M + reserve $500k
Credit line establishment ($300k)
Phased investment execution
Monthly financial review meetings

8.4 Contingency Planning

                Emergency Fund Allocation
                Operating expense overrun: $200k
Marketing adjustment fund: $100k
Regulatory compliance buffer: $100k
Equipment replacement reserve: $100k
Total contingency: $500k

            

Implementation Timeline

9.1 Pre-Launch Phase (6-3 Months Before Opening)

Months -6 to -4: Regulatory & Licensing

Leverage existing MSO structure
Medical Director recruitment
West Hollywood business license
Medical spa operating license

Months -3 to -1: Operational Infrastructure

Site selection and lease negotiation
Insurance framework setup
EMR/EHR system selection
Staff recruitment begins

9.2 Construction Phase (3-1 Months Before Opening)

Month	Key Activities	Milestones
Month -3	Design finalization, permits	Building permit approved
Month -2	Core construction	All zones completed
Month -1	Equipment installation	Final inspections passed

9.3 Launch Phase (Months 1-3)

Month 1

Soft Opening

Month 2

Service Expansion

Month 3

Grand Opening