The spa industry is one of the most resilient. Studies have shown that spas recorded a significant increase in visits in 2008. And yes, this was at the height of an economic recession.
In many places across the world, the vast majority of spas are individually owned, as opposed to those belonging to a chain.
This bodes well for a potential spa owner as no spa chain holds a very dominant position in the market. This means that if you play your cards right, you can claim a significant share of the market.
Like any other business, however, starting a spa comes with its fair share of challenges. You need to have a good understanding of what running a spa entails, and what you need to do to ensure your spa business is successful.
Here are fourthings you should do even before thinking about opening the doors of your spa.
1. Create a Business Plan
A business plan and road map have a few things in common. One, it's easy to embark on a journey without one, but even easier to get lost. Two, making each requires meticulous organization and planning. Three, both show the bigger picture, allowing you to make contingency plans.
There's no one-size-fits-all business plan, so here are two things your spa business plan must outline.
Capital Required
To have a good idea of the total amount of capital required, you need to take into account equipment costs.
Some services require relatively big investments such as tanning and hydrotherapy. Depending on the costs involved, you might even decide to hold out on some services until your spa has reached a certain amount of cash flow.
Services Offered
You can choose to serve a certain niche, such as prenatal care, or serve a wide variety of customers. The services offered by most spas can be grouped into three categories: hair removal, makeup, and body and skincare.
Body and skin services include exfoliation (such as body polish, peels, and masks), massages, and hydrotherapy treatments. On the other hand, hair removal services include electrolysis and waxing, while makeup services generally involve body piercing, application of cosmetics, and eyelash extensions.
2. Find a Great Location
Location plays a big role in determining the success of your spa. Your location should be informed by the clients you want to serve.
If you're targeting office workers, for example, the ideal location would be close to their offices and easily accessible by foot, car, or public means. It should also have ample parking space, while the neighborhood should be safe, well lit, and attractive.
3. Get Financing
There are many ways of getting financing. Being a new business, however, you're most likely to use your savings or source capital from friends and family. Once your spa grows, it becomes easier to secure funding from other sources, such as banks.
4. Get the Right Staff
Regardless of how small you start, it is impossible to run a spa alone. You need employees that are well-skilled, from massage therapists and electrologists to stylists and administrative staff.
It is important to know that the success of your business will, to a large extent, depends on the kind of staff you have. Their skills, work ethic and attitude, will determine the kind of experience your customers will have. This will have a direct impact on customer retention and even profitability.
To have a good grasp of the business, consider taking one or two short beauty courses. You might want to start with nail technology courses because manicure is one of the most in-demand services in a spa.
What Next?
While these steps will take you most of the way to owning a spa, there's still a lot more you need to do to give your spa the best chance of success. Set your sights on designing a good website, merchandising, and setting up a reliable supply chain, then work your way from there.
