SAUNA BUSINESS PLAN

I. Executive Summary

Company Description

UrbanTherm Retreat draws its name from “urban” living and “thermal” therapy, signaling a city-based sanctuary focused on heat and cold treatments. The company operates in the wellness and recovery sector, launching in 2026 in a major U.S. urban market. It delivers premium thermal therapy services—sauna and cold plunge—backed by a $1.46 million investment in high-end infrastructure. The center operates 350 days a year and sells single visits plus multi‑session packages to provide flexible access for busy clients. One clean line: premium thermal recovery for high-stress urban professionals.

The business runs daily thermal sessions, reservation management, front‑desk concierge, facility maintenance, and guided recovery programming, all managed by a professional operations and hospitality team. The target market is high-stress professionals in downtown and adjacent neighborhoods seeking regular stress relief and performance recovery. Short-term goals: open in 2026, reach 50% average capacity within 12 months, and achieve break-even by month 18. Long-term goals: refine unit economics, build a repeat-pricing model, and prepare for a multi-site rollout within five years. One clean line: focused operations and premium service designed to scale.

Problem

City residents in Austin, Texas face chronic stress and limited access to dedicated spaces for thermal recovery; city life limits easy, affordable recovery.

Existing options are multipurpose gyms that prioritize exercise over calm, and full-service day spas with high price points; neither offers regular, affordable heat and contrast therapy focused on recovery.

Consequences include higher baseline stress, slower post-workout recovery, skipped contrast therapy due to cost or access, fragmented routines, and increased injury risk; meeting this gap is necessary to achieve the target 2026 EBITDA of $316,000.

Solution

Urban professionals and fitness enthusiasts lack a dedicated, high-quality place to disconnect and recover; existing multipurpose facilities are noisy and fail to deliver reliable contrast therapy. Our facility fills that gap by providing a focused, premium sauna destination that prioritizes recovery, calm, and consistent service.

The center combines traditional Finnish saunas, infrared rooms, cold plunge tubs, and a dedicated relaxation lounge, and supplies organic towels and aromatherapy oils. It operates 350 days per year to ensure regular access for busy professionals and a reliable revenue base.

One-liner: A serene, premium sauna center designed to reach 150 average daily visits by 2030 through focused services and consistent availability.

Mission Statement

We provide an accessible urban retreat where individuals de-stress, recover, and rejuvenate through the therapeutic power of heat and cold. We deliver a premium, specialist wellness experience that enhances physical and mental well-being while maintaining operational excellence and a tranquil environment in every guest interaction. Our goal is to set the U.S. standard for thermal recovery and achieve a 7.69% Return on Equity.

Key Success Factors

Meeting the 60 daily-visit target in 2026 and the April 2026 breakeven date hinges on operational discipline, cost control, and customer retention.

• 60 daily visits in 2026 to reach the April 2026 breakeven target.
• High hygiene and service standards to retain customers and drive multi-session pack sales.
• $18,000 monthly lease and 4% utilities kept within budget to protect margins.
• $1.46 million in specialized equipment and design creating a competitive moat.
• 31-month payback and $2.636M Year 5 EBITDA to justify the investment and scale.

Financial Summary

The financial plan launches in 2026 with staged revenue growth, reaching positive operating cash by April 2026 and full payback in 31 months.

Financial requirements: Total capital expenditure $1,460,000; breakeven April 2026; payback 31 months; IRR 5%.

Overall outlook: steady revenue growth, rising EBITDA, and a positive payback within 3 years.

Funding Requirements

Total funding required is approximately $1,882,000 to cover $1,460,000 in capital expenditures and $422,000 in minimum cash trough for initial operating losses; projected Year 1 EBITDA is $316,000, breakeven Apr-2026, total payback 31 months, and projected IRR 5%.