How to Open a Day Spa

pixabay.com

The salon and spa industry has been one of the few gems of stability and predictably high growth over that last 10 to 15 years, and still today, it is outpacing the general economy by significant margins (in 2015, for example the spa industry saw 6.3% growth compared to 4.7% in the overall U.S. economy).

Thus, it is no surprise that entrepreneurs are clamoring to open their own day spas and beauty salons in record numbers. As usual, then, opportunity creates competition, and those who enter the industry in the strongest possible position and with the best possible spa business plan are most likely to come out on top.

How Can I Open a Day Spa Business?

There are at least three possible ways to open a new day spa business. First, there is the possibility of trying a new start-up. This, however, is one of the most expensive and risky options and has a relatively high failure rate. Second, you could buy out an existing but failing spa, but this brings up the question of why the location did not work out for the previous owners, and is thus also risky. 

The third, and we believe the most promising option is to open a spa and/or beauty salon franchise. The name recognition of a beauty franchise gives you an instant customer base that is often large, loyal, and growing, and it lets you tap into the resources and support network of the franchisor, which amounts to a ready-made, proven spa business plan being set down right before you.

Elements of a Franchise Spa Business Plan

Both your personal spa business plan and the basic parameters set by the franchise will need to align, and every needs to be different in the details to navigate local business situations adeptly.

However, some basic elements that need to be included in your spa business plan are:

  1. Site selection, layout, and financing: Obtaining a well equipped building at a prime location for an affordable price is winning half the battle, and your spa business plan will largely succeed/fail based on these factors. Spas are usually best housed in free-standing buildings, sometimes on the periphery of malls, or in strip malls in areas with plenty of lighting, foot/highway traffic, and parking. Buildings normally need to be between 1,200 and 2,000 square feet. Salon layouts are typically open, while spas are more compartmentalized, and it often takes an architect to optimally allot each square foot of space. 
  2. Services you plan to offer: The more services you can put under one roof, the better, so long as the local economy will make each offered service profitable. If possible, try to secure the equipment, products, and personnel to offer full salon services, nail services (manicure, pedicure, and painting), skin exfoliation/facials, foot and full body massages, makeup application, hydrotherapy, and organic cosmetics sales. You want to be a resort-like experience brought local and made practical/affordable. You want to be a spa, hair salon, nail salon, massage, and cosmetics franchise all wrapped up into one.
  3. Determining hours/pricing: Two major hinges upon which your spa franchise's profitability will turn are your hours of operation and the level at which your services are priced. Spas normally need to be open at odd hours so people can come after they get off work, and most are open 7 days a week and even on holidays. Prices set too high may constrict sales volume, while prices set too low may not leave room for much profit. Generally, about half the price goes to pay for labor and 10% to 15% is the profit margin, but you have to explore the local demographics to find out what the market will bear.
  4. Filling up your staff: Hiring/training your staff is a huge factor in making your spa business plan become a reality. Not only do you need to find reliable, talented workers with a good attitude and work ethic, but you need people with special training. Hair stylists with cosmetology licenses, shampoo/salon assistants, manicurists, massage therapists, and licensed aestheticians for facials and waxing are among the slots you need to fill.

In all four of these areas and more, a salon and spa franchise gives you a competitive edge. They often provide comprehensive, on-site training programs, give you helpful guidance on determining hours/pricing, along with discounts on restocking your inventory, facilitate a full range of services, offer assistance in finding/financing the best locations, and have a pre-set, proven layout scheme to facilitate optimal space allotment.

Open a Spa Franchise

The salon/spa industry has shown consistent, strong growth in recent years, but you need a solid spa business plan to take advantage of the opportunity this presents. A spa franchise helps you implement a strong, proven salon and spa business plan in the most efficient and effective manner possible.

Similar Articles

crowdfunding

Starting a business can be a daunting process at any age, but with youth can come an unfounded bravado that can come in very useful as an entrepreneur. Although with age often comes more experience and resources, young entrepreneurs will tend to find they have less to lose and more to gain

Building Awareness as an Entrepreneur

Building your reputation as an SME is a difficult hill to climb. As you are essentially coming from nothing, you need to work a lot harder than more established brands to get your product or service well known within your target audience

money

Have you ever needed a bit of extra cash? Going to a local payday lender is the last thing you want to do. Although you can access funds conveniently through a payday loan, they come with high fees. Fortunately, there are several ways you can make money in less than 24 hours

A Guide to Successfully Scaling Your Business

When starting a business most people like to dream big. However, once you have overcome the hurdles of starting a business and escaped the initial risks that come with start-ups, it can be a daunting thought to put everything you’ve worked so hard for in jeopardy by attempting to scale your business significantly.

E-learning for Organizations

The process of learning is often found aimless in this millennial generation. In fact, we have almost forgotten the advantages of focused learning. Corporate e-learning is a concept that aims to educate and prepare the employees to enhance the potential and growth of the organization they serve.

7 Trademark Mistakes

Imagine, you have successfully established your brand name in the market by working hard for years and giving everything to build it. Everything is going well and you possess a large customer base with the good market image. Then suddenly one day you are barred from using your name, or you are penalized with hefty penalties or punishments

Coworking Space the Right Choice for Entrepreneurs!

The value of coworking space can only be well understood by freelancers and small business owners. Reaching its maximum profit is what the aim should be for every business. Choosing to use an office space for rent in order to maximize the potential of their own business is definitely one of the reasons why this is opted by a lot of people and companies.

Entrepreneur

What is the first word that pops into your head when you hear the word – entrepreneur? Start-up? Rebel? Money? Struggle? Or all of these? The most commonly thought of word is – struggle. An entrepreneur does not inherit a pot of gold, they are not generally born with a silver spoon in their mouths. That is the basic reason why they are entrepreneurs – trying to get what they weren’t born with, right?

 Entrepreneurial Development Program

Most people believe that the entrepreneurship is the fastest way to become rich but this can end up being just an illusion. The truth of the matter is that you can only succeed in business when you have the right entrepreneurial skills, attitude, and behavior. Therefore, current and aspiring entrepreneurs have a chance to enhance their entrepreneurial skills through the Entrepreneurial Development Program (EDP).