Table of Content

    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, 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.

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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

    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

    Note

    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 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
    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 day spa. So we will focus on four of the most important services in this salon and spa business plan.

    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 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 business, 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 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 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 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 salon is a plan of the staff that will be needed to run the spa. Just like a spa business plan, 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

    Spa Business Plan Sample - 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

    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 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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