How to Create a Spa Business Plan

19 Jul 2024

As a spa business owner, your primary responsibility is your customers. They come to you when they want to feel better about themselves and it’s your job to ensure they leave feeling better than when they arrived. The spa industry has been growing at a rate of around 6% per year since 2013¹, creating myriad opportunities for new business. This thriving industry is ripe for new entrepreneurs, with investors attracted to the constant growth experienced within the sector. Before you get started, you will need to write a spa business plan. Whether creating a day spa business plan or a medical spa business plan, we’ve got you covered!

Why is a Spa Business Plan Important?

A spa business plan is an essential document at every stage of the business. However, it is not a static document, but rather one that evolves alongside the business. In the start-up phase, a spa business plan acts as the blueprint for the idea, helping you identify viability through implementing strategic plans. As your business starts to grow, your business plan becomes a vital tool for marketing and funding. Once your initial spa has developed into a strong business, you can utilise your business plan to acquire the capital you need to begin a plan of expansion.

Top tip: Take a look at some existing spa business plan examples before you start so you can see at a glance what is expected.

How to Get Started with Your Spa Business Plan

Writing a spa business plan can seem like a daunting task. Breaking the process down into sections by using this spa business plan template can help you create a plan that will serve your business in multiple ways for many years to come.

Step 1: Describe your business

The first section of your spa business plan is used to describe the nature of the business. This includes all relevant contact details along with company name, address and business structure. You should also include your mission statement here, alongside the purpose of your organisation and your operational and customer service philosophies.

Step 2: Plan your finances

Step two covers all your finances, ranging from how much start-up capital you will require to projected earnings and forecasts for how long it will take to repay any debt incurred. You should include projected financial statements for a minimum of three years, or up to the point where your calculations suggest the business will begin to generate a profit. List out all potential sources of start-up capital and include details of all initial expenses, no matter how minor. Provide educated estimates as to how many customers you expect and how fast you expect your client base to grow. You can then use these estimates to project your ongoing costs and revenue.

Step 3: Analyse your target market

Your target market is the specific demographic that you will be aiming your services at – those most likely to benefit from what you are providing. When defining a target market, try to be accurate without being too restrictive. Too broad a target market and you risk diluting your unique offering that will set you apart from the competition. Too narrow a focus for your market research and you risk losing potential customers.

Factors to consider when identifying your target market include gender, age, geographical location, employment, income bracket and leisure activities.

Step 4: Location, permits and licensing

Where you choose to locate your business will affect how busy you are likely to be. Areas with high volumes of foot traffic are more likely to generate walk-in business. However, if you are aiming to offer exclusive services to the higher end of the market, you may want to choose somewhere more secluded.

Permits and licensing requirements may differ depending on where you locate your company, so be sure to research what is required in your area. You may need a business licence and there might also be industry-specific licences required. Outline all details of permits and licences obtained, required or awaited in this section of your spa business plan.

Step 5: Marketing plan and budget

The next stage of your spa business plan maps out all the ways you intend to market your business. Include details of which social media platforms you plan to use, which directory sites you will be listed on and other forms of marketing you intend to pursue, such as email. Explain how your website will work to drive customers to your business and include research on which local radio stations, newspapers and magazines may be willing to promote your company. You can also provide an assessment of your decision to include or not include promotions such as discounts, rewards, loyalty programs or membership to generate repeat business.

Step 6: Map out services

The services you choose to provide will play a key role in determining your success. Use this section of your spa business plan template to map out the services you want to offer, with details of market research showing the value these can bring to the community and how they differentiate from those offered by local competitors. Outline any ideas you may have regarding how these services will be packaged, such as special bundles for brides or hen parties, birthday deals and gift packages. You should also touch on the equipment you will need to be able to provide these services and your customer service philosophy in this section.

Step 7: Introduce your team

Potential investors will want to know more about the people they are investing in as well as the business. Introduce the management team that are part of your spa business plan, including relevant information such as prior experience and specialist skills. If you plan to use external service providers to broaden the range of services on offer, details of these should also be included here. If there are other individuals who have a stake in the company, such as co-founders or investors who will also be taking on management roles, add short bios for each of these.

Step 8: Outline day-to-day activities

As an add-on to introducing your team, you should also detail who will be responsible for what in terms of the day-to-day running of the business. Create a list of all the activities that will need to be completed each day and indicate who will be responsible for ensuring those activities are completed to a high standard. You can also include general job descriptions detailing the duties of each role within the business, such as the receptionist, aesthetician, manager and massage therapist.

Step 9: Include supporting documents

The bulk of your spa business plan is now complete. Towards the end, you will need to create an appendix of supporting documents to back-up your assertions, predictions and forecasts. These may include copies of permits and licences, financial statements and any other form of documentation you think stakeholders may be interested in viewing.

Step 10: Executive summary

The executive summary of your business plan will be the first section you include when showing the document to stakeholders. However, it makes sense to write this last, as you will need all the information included above to be able to effectively summarise your company. This should be no more than a page or two which highlights the most important aspects of each section, offering an overview to prospective investors.

Spa Business Plan Examples

Looking at spa business plan examples before you begin to write your own can help you fully understand the process of writing a business plan and give you some ideas about what to include and how to best present your business. There are also some great spa business plan templates available online that you can use to help you format your own document. We’ve listed a few to help you get started.

In Summary

No matter what type of business you plan on running, what demographic you’re targeting or which services you intend to include, having a plan from the start will help. Whether it’s for a day spa business plan, a medical spa business plan or anything in between, outlining everything about the business will not only help you to source funding, but it will also act as your blueprint for all future decision-making and help you to grow your business.

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