SPA BUSINESS PLAN GUIDE
The spa and wellness industry is a booming one with lots of potentials for entrepreneurs willing to take the bold step. Part of taking this bold step involves having your business actions worked out.
This spa business plan will be helping you achieve that. The success of a spa business lies in the strategy adopted.
In other words, this has to do with the groundwork. Think of it as a foundation for a new building. Without properly building the foundation with the right supplies and tools, it will hardly hold the weight of the building.
How To Write A Spa Business Plan
A day spa will need to be well planned if it must have any chance of future success. One of the first things to consider when starting is to determine the type of spa you wish to open.
There are two types; medical spas and standard day spas. So, what’s the difference?
These are also called medspas or medi-spas. In most cases, these are run by physicians or medical experts with services ranging from varicose & spider vein treatments, reflexology, and laser hair removal.
Other services include facials, chemical peels & microdermabrasion among others.
Standard Day Spas
Standard day spas on the other hand can be run by non-medical professionals.
Services here are also varied and include electrolysis, facials & makeup application, massages, exfoliation, wraps & packs, manicures & pedicures, and a wide range of hair services.
Things to Factor Out
Having decided on what spa-type to establish, you’ll need to figure out all other essential needs of the business.
There are several such needs such as funding, studying the demographics of your target market, equipment purchase, and your location as well as passing your message across.
Other equally important factors to figure out include knowing what you’re up against (in terms of the competition).
Having a list of services to be offered is also necessary. But for this to be successful, you must have an experienced and skilled workforce.
For a better understanding of these points, it’s necessary to get into specifics which are as follows;
You must have money set aside or saved up to float your spa business. However, the saved some are most likely not to be sufficient for launching the business. Getting a loan is one of the options available to you.
Now, funding is used to get the necessary things in place. These range from equipment purchase, renting an outlet, purchasing supplies, paying workers wages, marketing expenses, and other running costs.
Sometimes, your savings may not be sufficient to qualify you for the amount you seek.
In such a situation, you’ll need to scale back your operations. In doing this, certain services may need to be dropped and some equipment excluded until you’re able to increase your capacity to get them in the future.
Spa business equipment is quite expensive. The cost of new ones can range from $4,000 to $25,000 per item and you need to get several of these. With limited funding, it’s best to go for used equipment as opposed to new ones.
Studying Market Demographics
It is important to have an understanding of the market you wish to serve even before your spa business is launched.
Doing this enables you to structure your services to suit the needs of clients. Also, the economic status of your target market will influence the services you offer.
The more disposable income people have, the more likely they are to pamper themselves. Therefore, you’ll need to target areas with more white-collar professionals, especially those with college degrees.
An understanding of your market also helps with exploring your areas of strength which helps you compete favorably with established spa brands.
A large chunk of your startup capital will be taken up by the equipment. This can be quite substantial depending on the equipment you need as some spa equipment can be priced as high as $25,000 per item.
Depending on the funding available, you can get this new equipment or scale back by purchasing only those considered very essential. Another option to go with is to buy used spa equipment. These will still serve the purpose.
Some of the spa equipment you’ll be needing to include a steam cabinet, Swiss shower, Vichy shower, Jacuzzi or Whirlpool tub as well as a Scotch hose.
Others are facial chairs, aesthetician stool, reception desk, reception desk stool, massage table, and pedicure ottoman, and retail product display unit.
Others include a magnifying lamp, rotary brush machine, hot towel cabinet, reception area furniture, pedicure cart with footbath massager, and manicure table & light. You may also need a facial steamer and facial vacuum or spray machine.
These are only some of the equipment that might be needed for your spa business. You may want to window shop to find out the prices of each item to help you plan your budget.
This is very crucial to the success of any spa business.
You wouldn’t expect a spa business within a small farming community to be as lucrative as one found in a bustling urban center. The differences are obvious. Therefore, it’s important to choose a suitable location for your spa operations.
You may want to use findings from your feasibility studies to find a location that checks all your needs.
Passing your Message Across
A spa business that is bound to succeed should have a clear message for its target market.
This message simply projects the benefits they’re likely to get when they patronize your business. This message should be included in your marketing campaign.
For such a message to be compelling, there should be clear areas of advantage over your competitors in addition to how the message is told or sold to your audience.
Knowing What you’re Up Against
By knowing what you’re up against, you’ll be able to structure your business and services in a way that makes it remain competitive in the face of stiff competition.
This isn’t an easy task, however with the right planning strategy; you’ll build a reputable spa business.
This spa business plan has highlighted the key decisions and strategies every serious entrepreneur should adopt to make their business more successful.