Spa Business Plan Sample

Spa Business Plan for Starting Your Own Spa Salon

With people getting more and more sensitive and careful about health, Spas are becoming a lucrative business and can help you earn quite a bit of money. If you have a solid spa marketing plan, you can make serious money in this spa business plan. We are presenting this spa and salon business plan to help you start such a business of your own.

Spas have become something much more than just some beauty parlors with steam baths. If you want to know how to how to start a spa business plan pdf, you will need to know everything from Himalayan salt baths to Thai massage.

Let’s now see what the experts of professional business planning say about this business.

Executive Summary

2.1 The Business

Sarah’s Spa will be a registered and licensed spa in Miami, Florida. It will provide all the modern alternative therapy services. Just like any massage therapy business plan, this spa business plan needs to be discreet about all the details of the business. That’s why we are following the example of Sarah’s Spa. This will serve as one of the perfect business plans for investors.

2.2 Management of Spa Center

Moving forward with the spa business plan example, the next thing we need to talk about is the management structure of the spa. The chief executive and owner of the Spa will be Sarah Jones. She will actively run the spa and will monitor the day-to-day operations. However, to run the whole setup smoothly, she will hire 2 managers who will be responsible for operations and marketing.

This medical spa business plan template will also address all the other aspects involved in starting and successfully running a spa.

2.3 Customers of Spa Salon

The customers of the spa will be of a range of different types. The ones we are focusing for this spa salon business model will include:

• People who want beauty enhancement treatments.
• People who want to try alternative therapy.
• Customers coming in for therapy suggested by a doctor.
• Customers who want to try modern detox and other health enhancement procedures.

2.4 Business Target

The subjective target of Sarah’s Spa is to provide quality spa services to clients in Miami. Objectively, the following targets have been set for the business:

• Gaining at least 100 permanent clients within a year of starting the business.
• Establishing Sarah’s Spa as a brand in all of Florida as a trustworthy name.
• Expanding the business to include more spa and salon services with the passage of time.

 

Franchise Business Plan

Helps the franchisee get business case approval from the franchisor

Company Summary

3.1 Company Owner

Sarah Jones is the owner of the business. This spa business plan template depends a lot on Sarah. This is because she has a degree in alternative therapy and has been in the spa business for the last decade. Now she has the investment and wants to start a spa of her own.

3.2 Why the Spa is being started?

Sarah is going to build a spa salon because the business has a lot of scope in Miami. The city is known for its wealthy high-profile people, the type conscious about their health and looks. Sarah plans to monetize on this opportunity and a spa is the best way for that. Moreover, from her experience in the field, Sarah knows that there is a serious gap in the field and if she can bridge it she can make a lot of money, and that too, doing something she is passionate about.

3.3 How the Spa Business will be started?

Step1: Planning the Feasibility

Step2: Developing a Brand

As Sarah is planning to target the wealthy, high-profile portion of the population of Miami, this is of cardinal importance to develop a brand. The class Sarah wants to target only buys services from brands. All resources will be used to establish a reputable brand.

Step3: Establishing the Spa 

The next thing will be to set up the spa. Sarah is in the final stages of acquiring a building on Citrus Drive Miami. This is a former school and has plenty of rooms to set up different facilities of the spa.

Step4: Going Online

The next step will be to establish an online presence. People go to the internet for everything these days and the importance of having appropriate web presence cannot be overstated for the spa business. Just like a reiki marketing plan, this spa business plan needs to have a solid presence on the web.

Step5: Promotion and Marketing

While all that is being done, promotion and marketing of the spa will be initiated via all media channels, print, electronic, and social to make Sarah’s Spa a household name in all of Florida and particularly Miami.

Start-up Expenses
Legal	$342,000
Consultants	$0
Insurance	$30,000
Rent	$26,000
Research and Development	$22,000
Expensed Equipment	$53,000
Signs	$4,100
TOTAL START-UP EXPENSES	$477,100
Start-up Assets	$344,100
Cash Required	$377,200
Start-up Inventory	$51,000
Other Current Assets	$235,000
Long-term Assets	$280,000
TOTAL ASSETS	$1,287,300
Total Requirements	$1,764,400
START-UP FUNDING
Start-up Expenses to Fund	$477,100
Start-up Assets to Fund	$1,287,300
TOTAL FUNDING REQUIRED	$1,764,400
Assets
Non-cash Assets from Start-up	$1,682,400
Cash Requirements from Start-up	$394,000
Additional Cash Raised	$55,000
Cash Balance on Starting Date	$38,000
TOTAL ASSETS	$2,169,400
Liabilities and Capital
Liabilities	$29,000
Current Borrowing	$0
Long-term Liabilities	$0
Accounts Payable (Outstanding Bills)	$45,000
Other Current Liabilities (interest-free)	$0
TOTAL LIABILITIES	$74,000
Capital
Planned Investment	$1,764,400
Investor 1	$0
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$1,764,400
Loss at Start-up (Start-up Expenses)	$331,000
TOTAL CAPITAL	$2,095,400
TOTAL CAPITAL AND LIABILITIES	$2,169,400
Total Funding	$1,764,400

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Services

Before the launch of the spa, it is important to have a plan of the services that it will offer. As the spa field is so vast and is so closely linked to alternative medicine and therapy, it is not possible to encompass all the services a spa can offer in this business plan for spa. So we will focus on four of the most important services in this salon and spa business plan pdf.

Full Body Massage

This is one of the basic services provided by any spa. We will hire the most qualified and talented massage artists to provide this service. This will be the legacy service of the business.

Detox Baths

This is an emerging service and a relatively untapped market. We will offer Himalayan salt, and Chinese detox baths for people looking to restore their skin to its formal glory.

Aromatherapy

Essential oils aromatherapy will also be a service offered by our spa. This will include alternative therapy options for relieving stress and depression with essential oils.

Physiotherapy

Last, but not the least, physiotherapy will also be one of the services Sarah’s Spa will offer.

Marketing Analysis of Spa

Business Plan for Investors

This spa salon business plan pdf also covers the marketing analysis of the spa business. In this section we will see how the market is evolving, what are the areas that still have a chance for new entrants and how can the gap in the industry be monetized. This spa business plan will tell you all of that.

If you want a complete medi spa business plan sample, you can have all of it in the lines that follow.

5.1 Market Trends

If you want to get into this spa business plan, this is the best time for it. Analysts say that the spa industry is currently under its fastest growth period. The industry is expected to be worth more than $150billion by 2022. If you want to know how to start spa salon, this document will tell you all about it.

Within the spa industry, the medical spa branch is the most rapidly growing one. As a matter of fact, it is one of the most registered new businesses in the world right now.

5.2 Marketing Segmentation

The expected customers of Sarah’s Spa will be divided into the following market segments:

5.2.1 Beauty-Conscious People

This segment of the market will be the most highly paying one for us. Just like a beauty supply business plan, we will monetize the will of people to look good. This segment of the market will also earn us some of the most loyal customers.

5.2.2 Health-Conscious people

This segment of the market will be made up of the people who are interested in things like detox and body cleansing. These people will be given all the services they need. These will also be repeat customers of the business.

5.2.3 People Referred by Doctors

Doctors can sometimes refer people to get alternative therapy. This segment of the market will not be made up of repeat customers but will be a high-paying one.

5.2.4 Salon Customers

People coming to have their hair or makeup done will fall into this category.

Market Analysis
Potential Customers	Growth	Year 1	Year 2	Year 3	Year 4	Year 5	CAGR
Beauty-Conscious People	32%	37,000	39,000	41,000	43,000	45,000	10.00%
Health-Conscious People	28%	29,000	31,000	33,000	35,000	37,000	10.00%
People Referred by Doctors	22%	21,000	23,000	25,000	27,000	28,000	10.00%
Salon Customers	18%	17,000	19,000	21,000	23,000	25,000	11.00%
Total	100%	104,000	112,000	120,000	128,000	135,000	10%

5.3 Business Target

• To provide authentic and dependable spa services to the clients.
• To establish a spa and beauty brand that people can trust and feel comfortable with.
• Having as many regular customers/clients as possible.
• Starting to make more than $30,000 a month by three years after the launch of the spa.

5.4 Product Pricing

The prices of our services will be considerably higher than those of the competitors in the market. This will be done to make it clear to the clients that we are a superior brand. The costs will also need to be higher than them because we are offering a level of service no other in the area is providing.

Marketing Strategy

A solid marketing strategy is the backbone of any spa business plan even if it is a barber business plan. We will conduct a thorough study of the industry and the situation in Miami and all of the state of Florida to make sure that our salon spa business plan pdf has a dependable and scalable marketing strategy.

Let’s see how this free spa business plan template tackles this problem.

6.1 Competitive Analysis

1. We have gathered intel and have come to know that the area does not have a reputable spa that people can use.
2. The spas in the area are all about beauty salon services and steam baths. We will offer all the modern things that make a spa what it is.
3. We will hire educated therapists and alternative therapy experts to deliver a level of service unheard of in the area.

6.2 Sales Strategy

• Sarah’s Spa will be advertised through print electronic and social media.
• We will offer concessions and discounted packages for new customers to drive sales in the start.
• We will provide our clients real value and an unparalleled quality because nothing can be more effective than providing impeccable services to the clients.

6.3 Sales Monthly

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6.4 Sales Yearly

6.5 Sales Forecast

Sales Forecast
Unit Sales	Year 1	Year 2	Year 3
Full Body Massage	43,000	45,580	48,315
Detox Baths	42,000	44,520	47,191
Aromatherapy	39,000	41,340	43,820
Physiotherapy	36,000	38,160	40,450
TOTAL UNIT SALES	160,000	169,600	179,776
Unit Prices	Year 1	Year 2	Year 3
Full Body Massage	$45.00	$52.20	$60.55
Detox Baths	$42.00	$48.72	$56.52
Aromatherapy	$49.00	$56.84	$65.93
Physiotherapy	$54.00	$62.64	$72.66
Sales
Full Body Massage	$1,935,000.00	$2,379,276.00	$2,925,557.77
Detox Baths	$1,764,000.00	$2,169,014.40	$2,667,020.11
Aromatherapy	$1,911,000.00	$2,349,765.60	$2,889,271.78
Physiotherapy	$1,944,000.00	$2,390,342.40	$2,939,165.02
TOTAL SALES	$7,554,000.00	$9,288,398.40	$11,421,014.67
Direct Unit Costs	Year 1	Year 2	Year 3
Full Body Massage	$43.00	$48.00	$55.00
Detox Baths	$40.00	$44.00	$52.00
Aromatherapy	$47.00	$53.00	$61.00
Physiotherapy	$52.00	$59.00	$68.00
Direct Cost of Sales
Full Body Massage	$1,849,000.00	$2,187,840.00	$2,657,314.00
Detox Baths	$1,680,000.00	$1,958,880.00	$2,453,942.40
Aromatherapy	$1,833,000.00	$2,191,020.00	$2,673,044.40
Physiotherapy	$1,872,000.00	$2,251,440.00	$2,750,572.80
Subtotal Direct Cost of Sales	$7,234,000.00	$8,589,180.00	$10,534,873.60

Personnel plan

The next thing that is an important part of a business plan for a spa business plan is a plan of the staff that will be needed to run the spa. Just like a spa business plan pdf, this business is dependent on the staff to operate profitably. People pay money to get grade-A services and they cannot be delivered if we don’t have the skilled and educated staff for it.

7.1 Company Staff

The following people will be needed to run the business:

• Sarah Jones will be the owner and CEO of the business.
• 2 managers for operations and marketing.
• 6 therapists.
• 3 attendants.
• 3 beauticians.
• 2 helpers.
• 2 guards.
• 1 reception clerk.
• 1 telephone operator.

7.2 Average Salary of Employees

Personnel Plan
	Year 1	Year 2	Year 3
Managers	$25,000	$27,500	$30,250
Therapists	$60,000	$66,000	$72,600
Attendants	$30,000	$33,000	$36,300
Beauticians	$27,000	$29,700	$32,670
Helpers	$16,000	$17,600	$19,360
Guards	$16,000	$17,600	$19,360
Reception clerk	$7,000	$7,700	$8,470
Telephone operator	$7,000	$7,700	$8,470
Total Salaries	$188,000	$206,800	$227,480

Financial Plan

The last thing we need to complete this med spa business plan sample is the financial plan for the business. This natural skin care business plan needs quite a bit of money to start and operate and the accurate estimate of all the costs involved in it is very hard to prepare. However, we have put together a list of the essential expenses that the starter needs to have:

• The cost of setting up the spa an buying the equipment, furniture, and machinery.
• The cost of acquiring consumable materials used in the procedures.
• The money needed to hire the staff for the spa.
• The salary of the staff for the duration after which the business will start breaking even.
• The cost of developing a website and creating an online presence.
• The cost of marketing and promoting the spa.

8.1 Important Assumptions

General Assumptions
	Year 1	Year 2	Year 3
Plan Month	1	2	3
Current Interest Rate	8.13%	8.22%	8.25%
Long-term Interest Rate	8.38%	8.41%	8.46%
Tax Rate	24.01%	24.30%	25.08%
Other	0	0	0

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8.2 Break-even Analysis

Break-Even Analysis
Monthly Units Break-even	5340
Monthly Revenue Break-even	$132,000
Assumptions:
Average Per-Unit Revenue	$236.00
Average Per-Unit Variable Cost	$0.65
Estimated Monthly Fixed Cost	$165,000

8.3 Projected Profit and Loss

Pro Forma Profit And Loss
	Year 1	Year 2	Year 3
Sales	$7,554,000	$9,288,398	$11,421,015
Direct Cost of Sales	$7,234,000	$8,589,180	$10,534,874
Other	$0	$0	$0
TOTAL COST OF SALES	$7,234,000	$8,589,180	$10,534,874
Gross Margin	$320,000	$699,218	$886,141
Gross Margin %	4.24%	7.53%	7.76%
Expenses
Payroll	$188,000	$206,800	$227,480
Sales and Marketing and Other Expenses	$135,000	$138,000	$141,000
Depreciation	$2,100	$2,200	$2,300
Leased Equipment	$0	$0	$0
Utilities	$3,000	$3,000	$3,100
Insurance	$2,100	$2,100	$2,100
Rent	$3,000	$31,000	$32,000
Payroll Taxes	$26,000	$27,000	$28,000
Other	$0	$0	$0
Total Operating Expenses	$359,200	$410,100	$435,980
Profit Before Interest and Taxes	($39,200)	$289,118	$450,161
EBITDA	($39,200)	$289,118	$450,161
Interest Expense	$0	$0	$0
Taxes Incurred	($7,840)	$57,824	$90,032
Net Profit	($31,360)	$231,295	$360,129
Net Profit/Sales	-0.42%	2.49%	3.15%

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

Pro Forma Cash Flow
Cash Received	Year 1	Year 2	Year 3
Cash from Operations
Cash Sales	$54,000	$58,320	$62,986
Cash from Receivables	$15,000	$16,200	$17,496
SUBTOTAL CASH FROM OPERATIONS	$69,000	$75,210	$81,227
Additional Cash Received
Sales Tax, VAT, HST/GST Received	$0	$0	$0
New Current Borrowing	$0	$0	$0
New Other Liabilities (interest-free)	$0	$0	$0
New Long-term Liabilities	$0	$0	$0
Sales of Other Current Assets	$0	$0	$0
Sales of Long-term Assets	$0	$0	$0
New Investment Received	$0	$0	$0
SUBTOTAL CASH RECEIVED	$70,000	$79,000	$85,000
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$41,000	$43,000	$45,000
Bill Payments	$24,000	$26,000	$28,000
SUBTOTAL SPENT ON OPERATIONS	$65,000	$69,000	$73,000
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out	$0	$0	$0
Principal Repayment of Current Borrowing	$0	$0	$0
Other Liabilities Principal Repayment	$0	$0	$0
Long-term Liabilities Principal Repayment	$0	$0	$0
Purchase Other Current Assets	$0	$0	$0
Purchase Long-term Assets	$0	$0	$0
Dividends	$0	$0	$0
SUBTOTAL CASH SPENT	$65,000	$70,200	$75,816
Net Cash Flow	$22,000	$23,000	$25,000
Cash Balance	$29,000	$31,000	$33,000

8.5 Projected Balance Sheet

Pro Forma Balance Sheet
Assets	Year 1	Year 2	Year 3
Current Assets
Cash	$275,000	$308,000	$338,800
Accounts Receivable	$23,400	$26,208	$29,458
Inventory	$4,300	$4,816	$4,900
Other Current Assets	$1,000	$1,000	$1,000
TOTAL CURRENT ASSETS	$280,000	$313,600	$352,486
Long-term Assets
Long-term Assets	$10,000	$10,000	$10,000
Accumulated Depreciation	$20,400	$22,848	$25,704
TOTAL LONG-TERM ASSETS	$24,000	$26,880	$30,240
TOTAL ASSETS	$296,000	$331,520	$372,960
Liabilities and Capital	Year 4	Year 5	Year 6
Current Liabilities
Accounts Payable	$19,000	$21,280	$23,919
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
SUBTOTAL CURRENT LIABILITIES	$18,600	$20,832	$23,415
Long-term Liabilities	$0	$0	$0
TOTAL LIABILITIES	$16,700	$18,704	$21,023
Paid-in Capital	$30,000	$30,000	$31,000
Retained Earnings	$55,000	$59,950	$65,945
Earnings	$199,400	$217,346	$239,081
TOTAL CAPITAL	$285,000	$310,650	$341,715
TOTAL LIABILITIES AND CAPITAL	$301,700	$331,520	$372,960
Net Worth	$298,000	$324,820	$357,302

 

8.6 Business Ratios

Ratio Analysis
	Year 1	Year 2	Year 3	INDUSTRY PROFILE
Sales Growth	7.24%	8.02%	8.89%	3.00%
Percent of Total Assets
Accounts Receivable	9.23%	10.23%	11.33%	9.80%
Inventory	5.42%	6.01%	6.65%	9.90%
Other Current Assets	2.11%	2.34%	2.59%	2.40%
Total Current Assets	150.30%	151.00%	152.00%	158.00%
Long-term Assets	11.60%	11.64%	11.66%	12.00%
TOTAL ASSETS	100.00%	100.00%	100.00%	100.00%
Current Liabilities	4.91%	4.95%	4.99%	4.34%
Long-term Liabilities	0.00%	0.00%	0.00%	0.00%
Total Liabilities	7.62%	7.68%	7.75%	7.38%
NET WORTH	100.80%	101.61%	102.54%	110.00%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	94.23%	96.77%	99.48%	99.00%
Selling, General & Administrative Expenses	94.30%	96.85%	99.56%	97.80%
Advertising Expenses	1.60%	1.64%	1.69%	1.40%
Profit Before Interest and Taxes	42.20%	43.34%	44.55%	33.90%
Main Ratios
Current	33	33.2	33.5	32
Quick	33.5	34	34.85	33
Total Debt to Total Assets	0.18%	0.18%	0.17%	0.40%
Pre-tax Return on Net Worth	73.23%	74.70%	75.00%	75.00%
Pre-tax Return on Assets	94.98%	99.73%	104.72%	111.30%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	33.22%	34.25%	35.31%	N.A.
Return on Equity	56.00%	57.74%	59.53%	N.A.
Activity Ratios
Accounts Receivable Turnover	7.7	7.8	7.8	N.A.
Collection Days	100	100	100	N.A.
Inventory Turnover	31.6	33.18	34	N.A.
Accounts Payable Turnover	15	16	16.3	N.A.
Payment Days	27	27	27	N.A.
Total Asset Turnover	2.4	2.5	2.6	N.A.
Debt Ratios
Debt to Net Worth	-0.04	-0.03	-0.04	N.A.
Current Liab. to Liab.	1	1	1	N.A.
Liquidity Ratios
Net Working Capital	$250,000	$264,000	$278,784	N.A.
Interest Coverage	0	0	0	N.A.
Additional Ratios
Assets to Sales	0.86	0.87	0.87	N.A.
Current Debt/Total Assets	1%	0%	0%	N.A.
Acid Test	29.3	29.5	29.8	N.A.
Sales/Net Worth	2.1	2.2	2.3	N.A.
Dividend Payout	0	0	0	N.A.

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