https://www.pexels.com/photo/brown-chair-with-white-pillows-161737/
Do you want to start or grow your existing spa business? It would help if you took some time to develop a business plan. A spa business plan acts as a pathway to a successful venture. It enables you to identify your target audience and competitors, create a goal and marketing plan, and understand finances. Hence, you won’t start your business one-sided; you will be fully aware of what to expect and the dos and donts. This article will guide you in developing the perfect spa business plan to help you prepare for your business.
Simple Guide to Developing a Spa Business Plan
General Overview
In this sector, briefly summarize each section of your plan. Advisably, write it as the last part after crafting the rest of the segments. The main goal of an executive summary is to quickly inform the reader about the type of Spa you are operating and its functions, whether you are a startup or an existing business. The focus is on providing an overview of each section. Here are the areas to focus on:-
- Indicate the name of your Spa.
- Provide the location where you will be operating.
- Your mission statement should indicate your goal and how you plan to get there.
- Mention the type of Spa you are operating.
- Provide details about your target market and competitors.
- Give a snippet of your marketing plan.
- Indicate the management team of your Spa.
- Provide an overview of your financial plan.
- Provide a business overview – is it a medical spa? Ladies’ Spa (what exactly does it offer and to whom).
- Financial expectations in one year.
Spa Business Analysis
Business analysis enables you to provide a detailed structure of your business and the type of Spa you will be running. In this case, expound on the kind of Spa you are opening. For instance:-
- Day Spa
- Destination Spa
- Medical Spa
Also, add the services you will be offering in your Spa. For instance,
- Hand & Foot massage
- Saunas
- Illuminating face and skin treatment
- Massage therapy
- Deep tissue massage
- Swedish massage
- Facial rejuvenation
- Stone massage
- Waxing
- Luxury manicure and pedicure
Provide a brief background of your spa business and enable readers to understand why you opted for that business. Explain further the following pointers :
- Any milestones achieved so far, i.e., finding a location, purchasing equipment, etc
- Briefly explain reasons for starting your business
Market Survey
The market analysis segment helps you understand the industry, competitors, and target audience. Here, you must provide an overview of the spa business, for instance, indicating its growth rate, financial projections, any new trends, etc. Notably, this also helps you learn more about the spa industry. It enables you to improve your strategy, particularly if your research identifies market trends. For instance, if there were a trend on a new nail service, it would really be a plus if your plan included such a service. It also helps you look like a pro in the field as you know what is happening in the industry. In this sector, also briefly expound on the following areas:-
- Competitors
Research your competitors to help you better plan your business. Identify at least five competitors and examine their strengths and weaknesses. Try to understand how they conduct business and retain clients. Then, devise a plan for setting yourself apart and looking unique compared to your competitors. For instance, you can offer incentives or extra services they don’t provide or have a loyalty program for returning clients.
- Target customers
Remember, you already stated the type of Spa you will open. Now, explain who you plan to attract or serve. For instance, young mums, soccer mums, college students, older ladies, sports people, couples, or teens. In other words, define precisely who you shall be targeting.
Keep in mind that your target audience dramatically affects the Spa you operate. For instance, if you choose college students and teens, they would prefer an atmosphere that speaks to them, product options that soothe them, favorable pricing, and online marketing methods. It would help to find out where they spend most of their time.
Ensure you classify your target audience further based on demographics like age group, location, income levels, etc. Also, factor in their interests and wants. The more you understand and define your audience, the better your chances of attracting and retaining your clients.
Spa Business Marketing Plan
Every startup or even existing business needs a marketing plan. Notably, this helps you to increase awareness and attract clients to your business. We have two types of marketing: online and offline. You can apply both methods to attract new clients.
When it comes to online marketing, you can apply the following methods:-
- Social media marketing is where you create a social media presence online, for instance, by opening social media pages. You can grow your pages by boosting your content.
- Using Google Ads and paid-per-click advertising
- Creating a website to list your services and prices. Optimizing your website
- Reaching to bloggers to write about your business
All these online means of advertising help reach out to online clients. When it comes to offline marketing it involves:-
- Utilizing word of mouth, where your friends and clients tell others about your services.
- Advertising on billboards, TV or radio
- Utilizing flyers and passing them to your target audience.
- Partnering with local organizations
Remember, the aim is to attract clients and make sales. Hence, utilize the method that you see working best for your business. You can always hire a marketing agency to create awareness if you need to improve your marketing.
Work Plan
Every organization has its unique way of running a business. Some prefer to open early in the morning, while others start in the afternoon. Here, come up with a plan for how you want your business to operate. For instance,
- Indicate the time you will open.
- How will you receive clients?
- Which employee will be responsible for the various services (what will be your procedures for conducting your services)? Here, include an added service to make your Spa unique.
- Who will keep the Spa clean
- What is your procurement procedure? Do you have existing suppliers?
- Indicate any technology you will adapt, for instance, point of sale and inventory, and who will be in charge.
Also, include the milestones you want to achieve. For instance, when do you expect to start making a specific figure per day? Purposefully, this will help you achieve a particular goal.
Hiring Plan / Management Team
Due to the different services offered by a spa, you need a team. Here, indicate the criteria you will apply to hire your employees. Which qualifications do you expect? Which roles will they play? Also, indicate how many people you plan to hire for a start. How much do you plan on paying them? Ensure that you map out the role of each person to increase accountability.
In addition, indicate your management team. Are you planning to hire an assistant manager? Their role is to help run the spa operations, especially when you have to leave, you are sure of your business running. Also, who will be the CEO? Do you have any partners on board? Mention the roles and qualifications of people in the higher hierarchy. If you have partners, mention their names, roles, or percentages of their spas.
Financial Plan
Notably, this is among the most crucial sectors; hence, ensure you are very realistic. Start by providing a one-year financial plan broken out into monthly or quarterly statements. The first-year statement will help you draft three-year and five-year statements. Here, discuss in detail three aspects.
- Startup budget: Include how much you plan to start your business with; in this cost, have all operations budget in mind like hiring, purchase of equipment or cost of third party printers, website (if you plan to develop one), rent (if you plan to have a physical location away from your home). Also, include where to get the finances to start your business.
- Income statement: It is more of a profit and loss statement. It shows your revenues; here, you subtract to see whether you profit or lose you’re after-expenses. You have to work with assumptions, but realistic ones are needed. Assume you will have 20 clients daily and charge each $50. Then, see how much you make in a day and multiply it by a month. Then, expenses like rent, salaries, and products should be deducted to know if it’s a loss or profit. Also, indicate by what percentage the business is expected to grow after the first quarter.
- Cash flow statement: It helps to calculate how much you need to start and maintain the Spa for the next year without indulging the profits. Look at how much you need to start a spa business, including ongoing expenses, and see if you have enough money to start and sustain your business for one year.
- Break-even analysis: Show when you foresee your business breaking even in the first five years. Notably, this happens when all your expenses are covered, and all your sales surpass the expenditure of the costs. After breaking even, your spa business starts making profits.
Conclusion
Your spa business plan is a document that is part of your business. You need to update it annually as the company experiences growth and changes. Understanding the nitty-gritty of running a spa business and planning for it will give you more clarity about its viability. Once you plan, remember to be disciplined in implementing your plans and making changes where necessary. With a spa business plan, you already have a road map to a successful business. You only need to start with one section, and the rest will flow. Find those funds and start your dream business.
