Spa Business Plan: Definition, Purpose and How to Make  it

A spa is a business that offers a variety of services for improving health,beauty and relaxation of a person. The services include massages, facials, sauna baths, manicures and pedicures. A spa business plan gives you a roadmap for your spa’s future through clarification of your vision and business goals. 

The business plan helps you make informed decisions regarding your clients and employees ensuring that you meet changing customers’ needs. Highlight your unique selling points that make your spa stand out from other spas in the market. Do thorough research when making your spa business plan to get valuable insights and make the plan more robust. A spa business plan is 15 to 25 pages long and is offered by companies offering business plan writing services. 

What is a Spa Business Plan?

A spa business plan is a blueprint for starting and running a spa business. It serves as a foundation for your operations and outlines your business goals and objectives. A spa business plan outlines your business concept, identifies your target customers, presents your marketing plan and details your financial plan. It documents your strategy for growth by laying out the spa’s growth plan over the next five years.

 A business plan for a spa is an outline of your spa as it details every aspect of your business from the services you will offer to the staffing needs. It will help you raise funding and should be updated as your spa grows and changes. Your management team will use the spa business plan to help anticipate future profitability or adjust the sales strategy. 

Why do you need a Spa Business Plan?

The main importance of a spa business plan is to explain your goals and objectives as well as strategies to achieve them. It helps you set clear goals and strategies, forcing you to think critically about what you want to achieve and how you will get there. Clarity of goals helps you stay focused and on track.

Helps you get funding 

A spa business plan provides lenders or investors with an assurance that their investment is going into a viable business. It convinces them to invest in your spa because it shows that you have done your homework and are serious about the business. A spa business plan will contain financial projections that will forecast the financial health of your business in the next few years. Potential investors will gain confidence that your business has a high chance of being successful.

Guides you in starting the business

A spa business plan walks you through each step of beginning and running your spa. It helps you get your business off the ground and serves as a guide for how to establish, run and grow your spa. The plan is a technique to think about all important aspects of how your spa will operate. You are able to make informed decisions on the running of your business.

Attracts top talent

A spa business plan helps you in building a team effectively. It helps you attract skilled labor and talented individuals. A business plan gives a summary of responsibilities that need to be filled currently and in future. Sharing the spa business plan with your team fosters working together towards a common goal. 

Acts as a contingency plan

A spa business plan allows you to see potential risks that your business may face. By thinking through the aspects of your business in advance you are able to come up with mitigation strategies to handle threats when they occur. Drawing up revenue and expense projections helps reduce risks because you are able to predict potential problems like less cash flow. 

Outlines your operations plan

You need a structured plan for operational and financial management of your spa. Your spa business plan will outline your operational strategies, financial goals and ways to achieve them. The structure helps you make informed and strategic decisions.

How to Make a Spa Business Plan

Making a spa business plan is a step by step process. Have a clear vision in mind by including clear business goals and a mission statement. Set targets to help track the performance of your team. Do a lot of research to identify your target market. Consult a professional business plan consultant as they have industry experience hence will make your plan look professional. Make a list of things that might affect your business such as startup costs and include them in your financial plan.

Write the Executive Summary 

The executive summary provides an overview of the whole spa business plan. Introduce the reasons behind your idea of starting a spa business  and give a brief description of your spa. Describe your target market briefly explaining the demographics, geographic locations and psychographic traits of your customer. Mention briefly the services that customers expect from your spa. Concisely mention your marketing strategies and provide a summary of your spa’s financial projections. The executive summary should have a call to action such as inviting potential investors to a meeting if they are interested in your business.

Spa Business Description

A spa business description describes your business by providing information about your spa. Such information includes the name, type of spa such as resort or medical spa, legal structure whether it is a partnership or corporation. as well as its location and reasons for selecting  the place.

Describe the owners of the business and their roles in running it. Include a mission statement that summarizes the objectives and main principles of your spa.

The mission statement should be clear, memorable and brief. The business description gives a  history of how the spa came to be in its present position. Convey your vision and aspirations such as where you see the business in the near future or plans to open a new branch in a different city. 

Explain Spa Products and Services

Explaining the spa products and services entails describing the specific services and products that will be offered to customers. Create a list of products and services that your spa will offer such as massage, pedicures, manicures, facials and body treatments.

Describe what each service entails, the time required and the qualifications of the person providing the service. Emphasize that your spa will ensure that all services are delivered with the highest standards of safety. Provide the  unique selling proposition of your products and services to help potential investors understand the value of your business. Be detailed, informative and customer focused.

Highlight Spa Marketing and Sales Plan  

Highlighting the spa marketing and sales plan includes making a list of strategies you will use to attract and retain customers. Indicate what sets your spa apart from competition and the benefits that your spa offers to its customers. Determine your pricing strategy  which should be affordable, competitive and  profitable. Create a  strategic marketing plan that is a mix of online and offline marketing tactics such as  social media, email marketing, brochures and events. Include the sales channels that you will use to reach a wider audience and close sales deals. Describe how your spa will build customer loyalty and retain customers such as through loyalty programs or personalized services.

Describe a Spa Management strategy

A management strategy is used to control and direct your spa business to achieve its goals. It makes it possible for your business to achieve top performance by establishing the resources required and timeline for achieving the goals. There are management strategies for leadership, operational activities and business administration. When developing a spa management plan, start by clarifying your vision and then gather information on how you will attain your vision. Identify the resources in your entity that will help you achieve your objectives and know if you will need external resources. List the challenges affecting your spa and develop a management strategy by considering the aspects listed. 

Create a Financial Plan and Projections for the Spa

Creating a financial plan entails providing a comprehensive overview of the financial projections for the first three to five years of your business. Create an income statement that describes the expected revenue, cost of products sold and operational costs. Prepare a balance sheet which shows the spa’s assets, liabilities and equity.

Proper financial projections help to estimate your cash inflows and outflows for the first five years of operations. Your cash flow statement should include cash receipts, loan payments and payments to vendors. Determine the break even point of your spa to understand how much revenue you need to make a profit.

Explain your Funding Need for the Spa

Be clear about your funding requirement and the purpose of fundraising. Start by providing information about your spa business such as your business structure, brief about your services, partners involved and target market.

Present the current financial position of your spa through a balance sheet that shows your assets and liabilities. Mention how much money you need as funding by narrowing down to your total startup costs.

Discuss how you will use the money by listing the details and put the figure for each activity. Areas of uses of funds include product development, operational expenses, marketing as well as technological integration. 

Write the Appendix

The appendix includes any additional information that supports the main content of your spa business plan. Have a table of contents to make it easy for readers to find particular information that they want.

Use clear labels and headings for every section of the appendix. Include updated financial statements and show financial projections for the next three years of your spa.

Give market research data such as statistics on consumer demographics and industry trends. Provide  legal documents such as licenses, permits, contracts as well as any other documentation related to your plan like product brochures.

What is the difference between a Spa, Esthetician and Barbershop Business Plans?

A spa business plan is a plan that guides a spa to  provide services for the purpose of improving health, beauty and relaxation through care treatments like massages and facials. Esthetician business plan is created for an esthetician business that provides skincare and wellness services. A barbershop business plan is written a barbershop which provides haircuts and beard grooming services. The three business plans therefore serve different business models hence their products and services section will be different. However, a spa, esthetician and barbershop business plan have the same elements. They follow the same structure and similar steps of writing a business plan. 

How long is a Spa Business Plan?

A spa business plan is 15 to 25 pages long. The length of the plan depends on factors such as the size of the business, audience, purpose of the plan and the complexity of the business. A business plan for a big spa will be longer than that of a small spa because it covers a wide scope. Complex spa businesses with multiple services and diverse market segments need longer and more detailed business plans. A spa business plan created for purposes of seeking funding will be longer than one created for internal use by partners. A plan created to be presented to potential investors will be lengthy as they will need detailed financial information.

How long is needed to Write a Spa Business Plan?

It takes three to four weeks to write a spa business plan. However, this duration varies depending on factors such as the size and complexity of the business, writing experience and skills of the plan writer, market research as well as the process of collaboration and review.

It will take longer to write a spa business plan for a large spa than that of a small spa. Startups or complex businesses require detailed plans hence will need more time to be written.

Highly experienced and skilled business plan writers will take less time to write a spa business plan. Involving team members in the business planning process enhances the quality but takes longer time to write the business plan due to coordination and review processes.

Do business plan writing services include Spa Business Plans?

Yes, spa business plans are written by companies offering business plan writing services. The companies offer business plan consultation services by  offering  customized strategic advice to help refine your business idea. Your business proposal will be written to pitch to stakeholders of the benefits of investing in your business.

Business planning companies will create a draft of your spa business plan and include  the elements of a business plan. They offer business plan translation services whereby your spa business plan is translated from one language to another so as to reach a wider audience. 

Can you hire someone to write a Spa Business Plan?

Yes, you can hire someone to write a spa business plan. Business plan writers or consultants are hired to write the plan. A business plan writer has experience in business consulting which entails identifying potential problems and coming up with strategies to solve the problems.

Business plan consultants have an in-depth understanding of your particular industry including competition, market dynamics and growth opportunities. They will let you in on industry secrets and the laws and regulations governing the industry to make a successful spa business.

Business plan writers have good collaboration skills hence will actively engage with you to know your perspective and tailor your spa business plan to your specifications.

What is the Cost of Buying Business Plan Writing Services for a SPA Business Plan?

The cost of buying business plan writing services for a Spa business plan is from $2,0000 to $25,000. However, the cost varies depending on factors such as the length of the business plan, size of the business as well as the experience of the business plan writer. The longer the business plan the more you will pay for it. A business plan for a big spa will cost more than that of a small spa. A highly experienced business plan writer will charge higher price than a less experienced writer. 

Spa Business Plan FAQS