Massage Therapy Business Plan: The 5 Key Components
A thoughtful, descriptive, and professionally written massage therapy business plan can be the roadmap to success for an entrepreneur interested in opening a spa.
A business plan is also vital for prospective owners who will pursue competitive loans and other financing opportunities to cover initial costs of opening the business. For example, banks offer better loan terms, such as lower interest rates, to businesses they feel certain will succeed. A good business plan is your best opportunity to earn their confidence in your operation.
To get started, prospective business owners will need to understand the key components they should include in their massage therapy business plan.
Your business plan is likely to be several pages, if not dozens of pages, in length. Think of the executive summary as the elevator pitch. If someone asked you to briefly explain what your business offers and how you plan to make a profit, you would likely offer a short but impassioned explanation backed by sound facts and figures. Those are the details that go in your executive summary.
Entrepreneurs use this section, which is roughly one page of your business plan, to briefly highlight the business and ignite the reader’s interest in the project.
Although this item in the business plan is typically listed first, it should be written last because it’s a summary of the whole document. It’s also perhaps the most important section because it’s the reader’s first impression. They use it to decide whether they want to learn more about the proposed business or move on to other opportunities.
Leadership and Management
Who are the individuals running the business? What is in their resumes and professional experience that makes them a good fit for their respective roles? Use this section to provide biographies for each of the managers and executives overseeing the business and explain how each of them will help your business thrive.
How do you plan to get customers into your spa? Explain how you will promote your business, what customers your marketing plan will target, and make sure to detail how much that strategy will cost. You should also clarify how you plan to retain customers, particularly if your business has a unique offering that distinguishes it from the competition.
For example, MassageLuXe is a pioneer of the membership revenue model in the spa industry, which assures a higher level of consistency than other spa revenues and profits on a year-round basis.
This is perhaps the most industry-specific portion of your business plan. What are the key factors that help a spa succeed? Alternatively, what are common errors of spas that fail? How will the demographics of your spa’s target customer impact the products and services you offer? How much are they willing to pay for the services in your area?
It’s also critical to outline in detail who your business will compete with; and explain why customers are likely to choose your brand over the competing nearby spas. What are their weaknesses? How is your business different?
This is where you explain anything related to the costs of starting and running the business, and an informed, market-specific calculation of the potential revenue. How much capital do you need to open the doors of the business? Do you have the money saved, or will you need loans? What data do you have to prove the business is going to be profitable? How much are you charging for your services? How many employees will you need, and how much is the payroll?
You’ll also see what your spa owner salary will potentially be. Let’s not beat around the bush, entrepreneurs go into business to make money. Your salary will need to be accounted for in the overall payroll costs.
Using your market research to understand your potential revenue and adding up your expenses will help you set reasonable goals for your first few years in business.
Bring Your Business Plan to Life with MassageLuXe
A massage therapy business plan will keep you focused on your overall mission and vision, improve business performance, maximize spa owner salary, and ultimately help your business succeed. Entrepreneurs who open a MassageLuXe franchise get the added support of a proven business model.
Rather than figuring everything out on your own, MassageLuXe franchisees have help at every step of the process leading up to their grand opening, and beyond. Lenders also have more confidence in a franchise brand with a proven track record of success compared to a risky and unproven business startup.
MassageLuXe assists with market research, site selection, ongoing marketing, and so much more. Find out how MassageLuXe can make your dreams of spa ownership a reality.