Spa Business Plan: What it Takes to be Successful
With a growing emphasis on the benefits of self-care and improved health and wellness, entrepreneurs looking for a good investment opportunity should consider starting a spa business. Based on information from the 2021 Mindbody Wellness Index, nearly 80% of Americans polled feel wellness is more important than ever right now. The term wellness encompasses anything from eating right and exercising to getting regularly scheduled massages to relieve pain or stress with the goal of improving physical, mental, and emotional health. More and more Americans understand the necessity of taking their health into their own hands.
Strong Investment Opportunity
If the massage spa industry is something you’re interested in, the numbers tell the story. Based on statistics for 2022, the United States Market size for massage services is $16.6 billion, with a nearly 3% growth rate. The industry is in such high demand, as a matter of fact, that the employment of massage therapists is projected to grow 32% through 2030.
Starting a Spa Business
Knowing that it’s a strong industry with growth potential, step one of this venture is to create a detailed spa business plan. There are any number of templates available online or through the U.S. Small Business Administration. The goal of the business plan is to outline your business concept, identify your target customers, and present a detailed marketing plan along with financial estimates. Organizing your business through initial planning is key to future success.
- Your spa business plan begins with the Executive Summary. This is a general overview of your business concept, describing the name of the spa and services you will provide, in addition to the name of all the owners.
- The industry analysis delves into the success of the spa business and consumer trends and how you plan to tap into those trends.
- The customer analysis is a key component of your report. It targets your key customer demographic and how they will utilize your services.
- Next is your competitive analysis, carefully identifying competitive brands.
- Key to your success is a comprehensive marketing plan. It will detail your value proposition to your clients and outline your strategy for promoting the spa.
- The operations plan gives an overview of the day-to-day responsibilities of the manager and employees and the qualifications needed to be in those positions.
- Finally, the financial details are laid out. You will outline anticipated expenditures and explain the primary source of revenue for your spa, which are fees for services paid by the client. The key expenses for a spa business are the cost of purchasing the spa equipment and supplies. Other expenses are the rent and utilities for the facility as well as payroll, computers, software, website, and other marketing costs.
Prepare for your spa’s capital outlay. Initial expenses include your lease, equipment, payroll, advertising, furniture, supplies, licenses, insurance, and permits.
The list of expenses will grow because you will likely need the expertise of an attorney to review your legal structure, contracts, and agreements. An accountant will help you with accounts and taxes and assist with financial planning. You may need to obtain financing through a business loan, personal loan, or involve investors for seed money to get you started. An accountant or financial advisor can be very helpful in guiding you through this process.
If you are building your spa business from scratch, the price will increase significantly. Real estate and construction costs are hefty and dependent on many variables. Consult with real estate professionals, architects, and design specialists to maximize your space and create an inviting spa environment.
It is clear that opening a spa as a sole proprietor starting from scratch can be a time-consuming and expensive process with no guarantee of success. But by franchising with MassageLuXe, you enjoy all the perks of business ownership with a proven model as your foundation and a recognizable brand to assist and support you along your journey.
Support and Success With MassageLuXe
At MassageLuXe, we have had great success by knowing our clients and providing a high standard of services that they have come to expect with well-trained and qualified team members.
As a franchisee, you have a number of ways to make money through our recurring revenue membership model designed to provide you with predictable, stable income. Ongoing client visits create steadier sales cycles and reduce administration and billing time. Add to that, multiple revenue streams through expanding services, spa packages, gift cards, and products.
MassageLuXe is excited to partner with entrepreneurs who understand what a great opportunity it is to franchise with a company in a high-growth industry like massage, which has seen a 200% growth in the past decade. That, coupled with the burgeoning health and wellness industry, makes it a great time to open your MassageLuXe, offering the pampering of a luxury day spa with wellness benefits for your clients.
To learn more about spa franchise opportunities with MassageLuXe, scroll down to fill out the contact form below.