How to Start a Day Spa Business
Although the industry isn't growing as it once was, there is still plenty of opportunity to be successful starting and running a day spa, according to Lynne McNees, president of the International Spa Association. McNees suggested offering shorter and less expensive treatment options and incentives to bring clients in the door and forming partnerships with local businesses to save on advertising costs. With a little creativity and determination, starting a day spa can still be a profitable and enjoyable venture.
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Instructions
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When visiting spas, make note of the variety of treatments available. Visit as many day spas as possible to get an idea about the operations, atmosphere, clientele, advertising, number and types of service, product line, layout and locations. Make notes after each visit. Then schedule interviews with spa owners wherever possible to get answers to your questions. If you visit spas that are outside your market area, you will likely have subjects who are more willing to be interviewed.
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Expected cash flow is an important aspect of developing a business plan for a day spa. Develop a business plan. Lyn Winegar, owner of Renew Day Spa & Wellness Center in Marietta, Georgia, suggests that potential owners have a firm foundation of education and experience before venturing into owning a spa facility. She advises potential spa owners to "take the time to think everything through---from your long-term goals, to cash flow, to the amount of laundry your spa will go through every week. It all matters."
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A peaceful location is important in the day spa business. Find potential locations. Then visit each one during various times of day and days of the week to observe traffic flow. Make a chart to compare potential locations on cost-per-square-foot, traffic, signage, build-out costs, if necessary, lease versus purchase arrangements and curb appeal. A desirable, peaceful location with an efficient floor layout, that is easy to get in and out of, is a necessity.
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The cost of adding a sauna to a potential location will add several thousand dollars to the renovation price. Find funding for your business. If you are purchasing the building and hiring employees, your funding requirements will be higher than if you are renting stalls out to spa professionals and leasing your building. Likewise, your costs are higher if you are paying for any build-out (renovation costs) yourself.
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Offer free chair massages at your grand opening to those who sign up for a package of services. Coordinate and plan a grand opening for your business aimed at impressing your target market. Follow ISPA President McNees' advice of "educating consumers that in highly stressful times, like a recession, managing stress is critical to living a healthy spa lifestyle." Offer loyalty programs to build repeat business and develop collaborative marketing programs with other area businesses to save costs. For example, your local wine merchant could set up a wine-tasting in conjunction with your grand opening.
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Network with other spa owners and attend professional conferences to keep current on industry and market area trends and to constantly keep your business mind stimulated with fresh ideas. You might even take vacations where you include visits to day spas to experience new treatments first-hand.
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Establish a marketing promotional calendar 12 months out and monitor the results of each program so you will know how to readjust your program. Take advantage of Internet marketing, including a website, blog and social media as much as possible to grow your business economically and geometrically.
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References
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