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.

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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.

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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.
Spa Business Plan Sample - 3 Years Forecast
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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


The most important part of this massage spa business plan is the feasibility planning of the business. At this stage, a detailed market survey will be conducted. This will be focused on getting the views of people about the business. This is the stage where we will find out what is the demand for the business and what is the condition of the competition, we are likely to face. This will make the base of this business plan sample for spa.

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.

Spa Business Plan Sample - Startup Cost
Start-up Expenses 
Research and Development$22,000
Expensed Equipment$53,000
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 Expenses to Fund$477,100
Start-up Assets to Fund$1,287,300
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 
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$45,000
Other Current Liabilities (interest-free)$0
Planned Investment$1,764,400
Investor 1$0
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$331,000
Total Funding$1,764,400
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    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.


    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.


    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:

    Spa Business Plan Sample - Marketing Segmentation
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    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 CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    Beauty-Conscious People32%37,00039,00041,00043,00045,00010.00%
    Health-Conscious People28%29,00031,00033,00035,00037,00010.00%
    People Referred by Doctors22%21,00023,00025,00027,00028,00010.00%
    Salon Customers18%17,00019,00021,00023,00025,00011.00%

    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

    Spa Business Plan Sample - Sales Monthly
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    6.4 Sales Yearly

    Spa Business Plan Sample - Sales Yearly

    6.5 Sales Forecast

    Spa Business Plan Sample - Unit Sales
    Sales Forecast   
    Unit SalesYear 1Year 2Year 3
    Full Body Massage43,00045,58048,315
    Detox Baths42,00044,52047,191
    TOTAL UNIT SALES160,000169,600179,776
    Unit PricesYear 1Year 2Year 3
    Full Body Massage$45.00$52.20$60.55
    Detox Baths$42.00$48.72$56.52
    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 CostsYear 1Year 2Year 3
    Full Body Massage$43.00$48.00$55.00
    Detox Baths$40.00$44.00$52.00
    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 1Year 2Year 3
    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 1Year 2Year 3
    Plan Month123
    Current Interest Rate8.13%8.22%8.25%
    Long-term Interest Rate8.38%8.41%8.46%
    Tax Rate24.01%24.30%25.08%
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    8.2 Break-even Analysis

    Spa Business Plan Sample - Break-even Analysis
    Break-Even Analysis 
    Monthly Units Break-even5340
    Monthly Revenue Break-even$132,000
    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 1Year 2Year 3
    Sales$7,554,000 $9,288,398 $11,421,015
    Direct Cost of Sales$7,234,000 $8,589,180 $10,534,874
    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%
    Sales and Marketing and Other Expenses$135,000$138,000$141,000
    Leased Equipment$0$0$0
    Payroll Taxes$26,000$27,000$28,000
    Total Operating Expenses$359,200 $410,100 $435,980
    Profit Before Interest and Taxes($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

    Spa Business Plan Sample - Profin Monthly

    8.3.2 Profit Yearly

    Spa Business Plan Sample - Profit Yearly

    8.3.3 Gross Margin Monthly

    Spa Business Plan Sample - Gross Margin Monthly

    8.3.4 Gross Margin Yearly

    Spa Business Plan Sample - Gross Margin Yearly

    8.4 Projected Cash Flow

    Spa Business Plan Sample - Projected Cash Flow
    Pro Forma Cash Flow   
    Cash ReceivedYear 1Year 2Year 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
    ExpendituresYear 1Year 2Year 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
    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   
    AssetsYear 1Year 2Year 3
    Current Assets   
    Accounts Receivable$23,400$26,208$29,458
    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 CapitalYear 4Year 5Year 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
    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 1Year 2Year 3INDUSTRY PROFILE
    Sales Growth7.24%8.02%8.89%3.00%
    Percent of Total Assets    
    Accounts Receivable9.23%10.23%11.33%9.80%
    Other Current Assets2.11%2.34%2.59%2.40%
    Total Current Assets150.30%151.00%152.00%158.00%
    Long-term Assets11.60%11.64%11.66%12.00%
    TOTAL ASSETS100.00%100.00%100.00%100.00%
    Current Liabilities4.91%4.95%4.99%4.34%
    Long-term Liabilities0.00%0.00%0.00%0.00%
    Total Liabilities7.62%7.68%7.75%7.38%
    NET WORTH100.80%101.61%102.54%110.00%
    Percent of Sales    
    Gross Margin94.23%96.77%99.48%99.00%
    Selling, General & Administrative Expenses94.30%96.85%99.56%97.80%
    Advertising Expenses1.60%1.64%1.69%1.40%
    Profit Before Interest and Taxes42.20%43.34%44.55%33.90%
    Main Ratios    
    Total Debt to Total Assets0.18%0.18%0.17%0.40%
    Pre-tax Return on Net Worth73.23%74.70%75.00%75.00%
    Pre-tax Return on Assets94.98%99.73%104.72%111.30%
    Additional RatiosYear 1Year 2Year 3 
    Net Profit Margin33.22%34.25%35.31%N.A.
    Return on Equity56.00%57.74%59.53%N.A.
    Activity Ratios    
    Accounts Receivable Turnover7.77.87.8N.A.
    Collection Days100100100N.A.
    Inventory Turnover31.633.1834N.A.
    Accounts Payable Turnover151616.3N.A.
    Payment Days272727N.A.
    Total Asset Turnover2.42.52.6N.A.
    Debt Ratios    
    Debt to Net Worth-0.04-0.03-0.04N.A.
    Current Liab. to Liab.111N.A.
    Liquidity Ratios    
    Net Working Capital$250,000$264,000$278,784N.A.
    Interest Coverage000N.A.
    Additional Ratios    
    Assets to Sales0.860.870.87N.A.
    Current Debt/Total Assets1%0%0%N.A.
    Acid Test29.329.529.8N.A.
    Sales/Net Worth2.12.22.3N.A.
    Dividend Payout000N.A.

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