Maven Business Plans

How to start a Spa Business

How to Start a Spa Business?

Many entrepreneurs are turning to the opening of the spa. It is a booming activity, the benefits of which are increasingly appreciated by an evergreen client.

The United States is the largest market for space. It has 21,000 facilities that generate $16 billion in revenue. In 2018, people made 190 million visits to the spa industry. Working on such an adventure can be a profitable investment. Thus many hotels have completed their offerings with spas to meet the expectations of their customers.

But what to do to open a spa? Follow our recommendations.

STEPS TO START A SPA BUSINESS

1. Ask yourself the right questions.

Opening a spa is a great opportunity. In fact, the demand is growing for the welfare and care of more and more sensitive people. But this business plan should not be taken lightly. This requires significant investment and – without a quality offer – you will never win with your competitors. For this, you must take each step carefully. We suggest you consider these three elements to determine the merits of this project.

  • Are you motivated enough to open a wellness center?
  • Do you have the skills and talents to run a business?
  • Is your personal life in line together with your professional goals?

2. Explain the vision

Before you start planning your business, you need to have a clear idea. Think about what is vital to the business, as it will greatly impact your entire business. Will it be a blend of both salon and spa, and will it focus on going green?

Once these decisions are made, they will help determine any other options needed. It will ultimately affect clients’ treatments and the details that affect emotions. This will give birth, set you apart from your competitors, and create a unique experience.

3. Develop the Concept

You are probably not the only spa in your city or region. What is your trademark? An innovative concept and atypical care? What’s your strength compared to your competitors? What types of treatments do you offer, and what are your offers (massages, body/face treatments, etc.)? All these questions will allow you to open a SPA in good conditions!

In order to put the odds in your favor, here is our advice on SPA trends: Create your own range of SPA products for your customers and sell them on your premises. 

If your customers are seduced and satisfied with the care provided, they will want to buy your products to benefit from their virtues at home. Surf the wave of well-being, create offers for several people (bachelorette party, Valentine’s Day, honeymoon…!). Besides, don’t hesitate to stand out from the competition by creating unique treatments for your customers who will appreciate the personalized attention.

You can use our project assessment tool. In a few minutes, you will obtain a diagnosis of your project with its strengths, weaknesses, and areas for improvement.

4. Choose your business structure.

First, consult a certified public accountant and learn about the different business structures in the spa industry. You can choose from structures such as limited liability companies, sole proprietorships, and sub-chapter partnerships. You should also consult a commercial insurance agent who specializes in liability matters.

After that, get a business license from your city authority to open a spa. You can also request a pre-inspection of your spa from your health department. You will also notify your State Department to obtain a sales tax license.

5. Describe your brand

Now that you have discovered your competitors and their strengths and weaknesses try putting something unique on the plate for customers, as the extras always attract them. At your spa business, you can offer reliable treatment classes, fitness tips, or hospitality. Besides, you can also offer a cup of herbal tea to your clients. These exceptions to your services can make a big difference in your brand identity.

6. Create a business plan

To get funding, you will need to develop a detailed spa business plan. When carrying out the business plan, you will need to address several crucial points. Remember that you have to convince your investors to follow you on this project. Your business plan must demonstrate how you carry out this concept to the end. Develop the means of your strategy. It is vital to complete your business plan with financial tables that will demonstrate to your contacts the solidity of your project. It must clearly explain:

  • The provisional income statement
  • The provisional balance
  • The financing plan
  • The cash budget

You may need to add more metrics if they are relevant. On the basis of these elements, your banker will be able to judge the solidity of your project.

Your business plan must also explain your business concept. Besides, it should have a list of all your services, as well as the products you intend to sell. Also, include initial expenses such as essential oils, massage tables, and recurring payments. Eliminate what you expect and compare your profit margins.

7. Find a place and rent it.

Find your desire location and rent it. Make sure your spa building is easily approachable and has a decent parking space. Also, get approval from the zonal department.

Next, hire a skilled interior designer. The designer will suggest the right color scheme for your spa to provide a pleasing and relaxing environment for your clients.

8. Buy spa equipment

Order your spa accessories and equipment. Contact a national supplier of spa equipment. Your spa equipment must include facial sprays, massage tables, Eye and face mask, wax warmer, and other treatment devices. Also, include special showering and sleeping equipment if you want to give these services. Work with vendors to incorporate tools into your spa environment.

9. Find targeted customers

Take a glance and decide who will be your potential customers. Your spa idea or the whole business revolves around them. So, study their tastes, preferences, and budget carefully. Make sure your services are working for them.

Decide if your spa day will appeal to neighbors or if it will be a spa destination for rich and famous people in a high-end market. With these aspects in mind, a spa logo should be created, which differentiates you from others. To better understand your target customers, you can also make demographic estimates such as socioeconomic groups, gender, age, education, occupation, etc., which is usually based on your market niche.

10. Hire experienced staff

The success of your day-to-day spa business will largely depend on the skills of your employees. Hire experienced employees who can effectively serve your customer satisfaction. One of the best ways for trained people to work for you is to get recommendations from community college cosmetology instructors when it comes to choosing qualified candidates for the job.

11. Now it’s time to tell new customers about your spa.

Marketing is a multi-faceted term, so think about your target customers’ most relevant marketing in your area.

Social media marketing and email marketing are some of the best ways to reach consumers.

In addition to publicity in local newspapers, you can create an online buzz with a series of advertisements on social media. Consider offering a free online newsletter to obtain email addresses.

Creating your spa will be possible after following all the above instructions. Note that you may have to face intense competition to set up your own business.

But with determination and unique planning, you can put your foot on the path to success. So, start your planning for the opening of your spa, which is increasingly in demand. 

Best of luck with your new adventure.

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