Creating a spa business plan is one of the firsts step to starting your spa business. Not only will it give you an idea of your personal business goals, but it will also be a necessary step in applying for funding and loans.
Due to the importance of a spa business plan, you can’t simply write a list of your goals and call it a day.
After over 30 years of experience in the beauty and wellness industry, I have written and read many spa business plans. Here are my key steps on how to write a successful spa business plan.
How Do I Write A Spa Business Plan?
Step 1: Describe your business
The first step is to describe your business. Seems pretty obvious, doesn’t it? This part will cover the basics of your company, including its goals and aspirations as well as its ethics.
Explain the treatments your spa will offer, the name and address of the spa, the type of building the spa is in, and how you intend to deal with customers. Describe your points of differentiation, your unique value proposition that you offer clients and what will set you apart from the competition.
Step 2: Financial plan
This is possibly the most important part of a business plan. As a business plan will play a huge part in applying for funding or a loan, this is what a small business must pay attention to.
In many cases, small businesses don’t survive more than 5-10 years due to improper financial planning.
You will have to write down everything from how much money you need, what you need the money for, how much money you have and what you intend to spend it on, how much profit you intend to gain, and how long it will take for you to pay the loan back.
A small business is most likely to start from personal funds, so you must prove to the lender that you can afford to start the business before you get the money. You must also prove that you can handle money appropriately.
Here are the specifics to include:
- Evidence and a calculation of your personal savings in case the loan amount isn’t enough
- Evidence and a calculation of your estimated monthly expenses, including rent and utilities, training, licensing, supplies, payroll, and an emergency fund
- An estimate of how much you will charge for every service. This will be a roughly estimated figure, so you can come up with an average figure for a week of facials, waxes, hair appointments, etc.
- Estimated calculation of taxes – Hire a certified public accountant (CPA) to calculate this figure from your estimations.
Step 3: Determine your market
You will need to thoroughly research the area your spa is in to know your demographics.
What’s the average age group? What type of income does the community earn? Are potential clients mostly male or female?
Will the environment or geography affect the success of the spa? What do your clients do for a living? All of this will give you an idea of what to charge for your services and how to tailor the spa to their liking.
Step 4: Licensing and location
By this point, you have probably chosen your spa location.
It’s up to you where you want your spa to be, but remember that it will be a risk to have it in a rural location (unless this is a risk you’re willing to take!). Explain why you have chosen the location in detail.
Next, licensing! You will need a business license (it’s a legal requirement) and you must be thoroughly aware of employee licensing rules and health regulations.
Step 5: Marketing plan
Map out an idea of how you intend to use marketing to make your spa successful.
You will need funds to cover the costs of social media advertising and sponsorships, as well as an idea of local media that you can contact (newspapers, radios, magazines, etc.).
It might be worth hiring a social media manager if you don’t know how to use social media to your advantage. It’s not as easy as posting a picture every day to Instagram if you want to be successful.
You will also need to find a spa management software that can give you an idea of your money and growth. This is usually in the form of an app or website that allows your customers to see your services and book an appointment.
Step 6: Describe your services
Time for the fun part – describe the services you will offer upon opening and intend to offer in the future!
How do these services compare to competitors? What do you offer aside from standard spa treatments? Do you do bride/bridesmaids bundles?
Will any of your services require specific equipment and tools? How do you expect your customers to react and how will you achieve this?
Step 7: Describe your team
By this point, you should have an idea of the staff you need to hire. It’s time to describe each staff member’s skills – from the laser technicians to the beauticians to massage therapists.
Include their licensing, experience, duties, training, and how much you intend to pay them. Also, make sure to include the management team, co-founders, and investors.
Plus, give an idea of whom you intend to hire in the future with future potential treatments and services.
Step 8: Daily overview
Give a rough outline of how your spa will look each day of the week.
Of course, there’s some leeway given how unpredictable spas can be, but come up with a day-to-day outline of services and roles.
For example, while the manager is going over paperwork and documents in the morning, the receptionist is dealing with customers.
Step 9: Appendix
This section will contain any other documents that you think are necessary to the business plan.
It’s often best to put absolutely everything into a business plan to prevent leaving something important out. This includes trademarks, permits, and licensing.
Step 10: Summarize
Like in a school essay, dedicate 1-2 pages at the end to summarize your business plan. Make sure to highlight the key features of each section.
If you’re working on your spa business plan, you might find this video on how to write a day spa business plan helpful: