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With so much emphasis on holistic remedies, organic produce, and botanical cosmetic products these days, it's no surprise that interest in spa services is on the rise. Everyone, from baby boomers to stressed CEOs to soccer moms, is eager to try anything to keep them looking younger and feeling better. As a result, it is a good time to enter one of the trendiest personal-services industries: the day spa.
Unwinding in the spa is a pastime for Americans. In 2019, the U.S. spa industry was valued at $19 billion, although, against expectations, it dropped in 2020 to $12.1 billion due to the corona-virus pandemic. It is expected to rise in the coming years, however. Now is the time to move into the industry. Keep reading to know how to start your business on an excellent note.
Day Spa Fundamentals
Day spas are classified into two types. Body treatments and lifestyle services are available at most day spas. Acupuncture and microdermabrasion are two procedures that should be performed by a registered medical practitioner at a medical spa. Although popular thinking believes authentic day spas must provide hydrotherapies such as underwater massage, several day spas thrive on "dry" services alone.
Not everyone prefers the water treatment. These days, Americans are apprehensive about stripping naked in front of a stranger who would conduct unknown procedures on them. It is preferable to open your spa without water therapy, especially if you have a limited budget. However, you can incorporate it into your company plan to prepare for expansion when and if your clients are ready.
Building the Foundation
Finding out what your prospective clients are prepared for is crucial for your new venture's planning. Investigate the demographics of your target market to discover if, for example, people of a farming village in the center of Montana are the kind who would be interested in manicures. According to proven research, you're more likely to get clients if white-collar workers populate the market area under the age of 45 with college degrees.
You can write your business plan after conducting demographic research. This plan acts as a
- guide for your business' course and;
- valuable tool for demonstrating your business acumen.
This plan should include:
- your company description and the services it will provide;
- a personnel management plan;
- market strategies created using the demographic information you've gathered;
- an analysis of your competition;
- an operations and management plan;
- financial information, including assets and startup capital requirements; and
- an income/expense forecast and repayment plan.
Equipment & Services
You'll need to decide on the services to offer early on in the planning phase. Spa pedicures and manicures, massages, facials and makeup application, body treatments, electrolysis, and hair services are common treatments given in day spas. Hydromassage, mineral and seaweed baths, dry and wet heat, and shower massage are all examples of hydrotherapies. Many spas also provide therapeutic techniques such as Reiki and acupressure, which, depending on location, must be conducted by a licensed practitioner.
The type of facility you select will be heavily influenced by the breadth of services you intend to provide. Because spa equipment is typically massive, you'll need enough space to spread out and create a peaceful environment.
To attract affluent clients, you'll need a space or building in a desirable location. It should be near other retail companies for maximum visibility, and there should be enough parking. Don't undervalue the significance of parking. Spa services are not considered essential, so if it's difficult for them to visit your spa for whatever reason, they won't come —or they'll go next door.
Manicure and pedicure stations, massage tables, and reclining facial chairs are standard pieces of day spa equipment. High-quality spa equipment can cost anywhere from $3,000 to $20,000 per piece, and even more. So make sure to shop intelligently. It's easy to get caught up in the excitement of outfitting your spa with the best of everything—only to never use it.
Also, before you acquire something, consider how many services you'll have to provide to pay for it. Don't go spending a thousand dollars on a pedicure bed, for example, when each customer pays $7 per service on that bed. Think of how long it will take you to get an investment on that bed – unless customers are lining up out the door for that particular service.
Staffing Your Salon
Once you've put all of the needed equipment and gear in place, you'll need qualified personnel to operate it correctly. Cosmetology schools are the best venues to find people who have been taught to use the equipment and materials found in a day spa.
Many states require personal-care employees (including spa owners) to have at least a cosmetology license, while others need a set number of hours of specialized training and further certification.
Below is a list of staff needed at a beauty day spa:
- Aestheticians, who do facials, massages, waxing, and other services;
- Massage therapists, whose services give stress relief and relaxation;
- Electrologists, who remove unwanted body hair; and
- Manicurists who perform manicure and pedicure services.
Other professions you may require on your team include a makeup artist, a hairstylist, a spa manager, and a receptionist.
It is also recommended that you recruit unlicensed staff assistants to undertake chores such as escorting clients and mixing treatments, preferably in the presence of licensed staff. That way, licensed personnel have enough time to work and do their thing, and unlicensed staff can learn on the job. This can also be advantageous to your spa if the clients interpret all of this as work harmony. Lastly, it enhances productivity and contributes to the spa's profitability.
Marketing Your Business
Advertising is also critical to the success of a new business. Because some people in your market may have never considered visiting a spa or are unfamiliar with the services you provide, it's up to you to educate them on the spa's numerous benefits. A well-placed series of ads in a local newspaper aimed at upscale readers may be an efficient approach in introducing the public to your services.
Once you've snagged a customer, make sure you give them the most outstanding service possible. In this company, word-of-mouth advertising is critical, and it can mean the difference between many years of tidy earnings and humiliating defeat. Meanwhile, a clever method to capitalize on positive word-of-mouth is implementing a referral program that compensates customers for referring new customers.
The Bottom Line
As a spa entrepreneur, you must stay current in the spa industry and business in general. Consider joining a professional trade organization to stay up to date on what's new. You may also access a wealth of information on the internet to help you do business better, faster, and smarter.
