Any manager of a new spa business will have to work hard to make it profitable in a tough industry. But unfortunately, some spas that offer the best treatments, the most comfort for the client, and the best care can still close because they can’t make enough money. But what could be causing it, and how can it be stopped?
When starting a new business, it’s easy to forget that you must build a foundation first. But sometimes, the most common mistake is starting real work immediately without thinking about things like the audience or the business’s competitive advantage. The business could go bankrupt if a spa’s business plan doesn’t account for these and other things before it opens.
Why it’s important to make a business plan for a spa
A spa business plan includes specific financial information, like how much it costs to run the spa each month, and more general information, like the spa’s competitive advantage, value proposition, goals, and top priorities. Even though it seems like the most important thing to write down is financial information, other things often forgotten that are just as important. Planning for all of these things gives you some benefits:
- You can plan for possible economic problems that might happen.
- You will write down your goals and most important things.
- You’ll figure out who you want to reach and how to do it.
- how to get there
- You can decide how important tasks are.
- You will decide where your business will be most focused.
A business plan helps you stay in charge of your business and prepare for things that might go wrong. Also, if you need money to start your business, you must have a business plan.
How to make a basic plan for a spa business?
Follow these steps to make a simple business plan for your business:
1. Problems your target audience has
Describe them in detail: They go to a spa because… Where are they going? What would you like?
2. Your answer to the problems of the people you want to reach
Your services and goods. What do you have to offer?
3. Business model
How will you make a living? What kinds of services would be best for you to offer?
4. Target audience
Who do you sell things to? How are you going to introduce yourself?
5. Competitive advantage
What does your spa have that makes it different from the others?
6. Team at work
What kind of workers do you need? What kind of training do they need? How many workers do you need to keep the business going?
7. Financial report
How many sales of your goods or services do you need to cover your costs? How much does it cost each month to run the business? What should you do if you can’t pay?
Establish the expenses of:
- Banking expenses
- loan installments
- Agency expenses
- Water and electricity bills
- Personal expenses
- marketing expenses
- Product and furniture costs
- cleaning costs
For example, if all the monthly expenses of your company are 10,000. And the average cost of all your services is 20. You have to divide 10,000 by 20. And the result, 500, is the number of sales you need to make to cover the expenses.
This number may seem elusive to you, especially during the first few months of opening your business before building a loyal and repeat customer base.
How to get the most out of the business plan for your spa
It is crucial to understand that a business plan does not help if, after the opening of the business, it is left in a file cabinet. A business plan is a guide, but it must be constantly updated. Your business evolves, and your business plan should too. Updating your business plan will help you see if you are meeting the objectives set and if your strategies are effective and adapt to the real-time of performing your daily work.
Although creating a spa business plan can be a real challenge, you should invest your time in it. Remember that investments planned can save a lot of money in the long run. Also, be sure to include the use of management software for your spa in your business plan, as it will be a tool that will allow you to bring what is written in your plan to the reality of your business.
We recommend you to visit business plan consultant for your spa business plan.
Click here to read more articles.