Any manager of a new spa business faces the challenge of establishing a profitable company in a difficult industry. Sometimes some spas can offer the best treatments, the greatest customer comfort and the best care and, even then, end up closed for financial reasons. But what can be the cause, and how to avoid it?
With the euphoria of starting a new business, one can put aside the need to lay a foundation beforehand. However, sometimes the most frequent mistake is immediately jumping into the real work without first thinking about things like the target audience or the business’s competitive advantage. Failure to plan these and other aspects of a spa business plan before opening can lead to bankruptcy.
Why it is essential to carry out a spa business plan
A spa business plan consists of establishing very strict financial information about the company, such as the monthly cost of running the spa and more general elements, such as competitive advantage, value proposition, objectives and priorities. Although financial information seems the most important thing to write on paper, the other aspects are often overlooked and are just as important. Planning all these aspects gives you a series of advantages:
- You can anticipate possible financial problems and prepare for them
- You will write down your goals and priorities
- You will lay the foundations of who your target audience is and how to reach it
- You can set the priority of tasks
- You will decide in which areas you are going to focus your business
A business plan helps you maintain control of your company and prepare for possible unforeseen events. Also, a business plan is a must if you are seeking financing to start your business.
How to make a basic business plan for a spa?
If you need a basic business plan for your business, follow these steps:
- Problems that your target audience has
- Describe them in detail: Why do they go to a spa? What do they seek? What do you need?
- Your solution to the problems of your target audience
- Your products and services. What can you offer them?
- Business model
- How are you going to make money? What services are the most beneficial for you to offer?
- Target audience
- Who are your customers? What will you do to make them recognize you?
- Competitive advantage
- What does your spa offer that sets it apart from the competition?
- Work team
- What kind of workers do you need? What training do they require? How many employees do you need to run the business?
- Financial report
- How many sales of products or services do you need to break even? What is the monthly cost of running the business? What to do in case of not covering the expenses?
Establishes the expenses of:
- Banking expenses
- loan installments
- Agency expenses
- Water and electricity bills
- Personal expenses
- marketing expenses
- Product and furniture costs
- cleaning costs
Now, you can simply use the following formula:
Amount of sales needed to cover expenses =
Your company’s expenses
how much your average services cost
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 necessary sales you must make to cover the costs.
This number may seem difficult to achieve, especially during the first few months of opening your business before building a loyal and repeat customer base.
TIP: If you want to have a best business plan for a plan then hire a business plan consultant.
How to maximize the value of your spa’s business plan
It is crucial to understand that a business plan does not help if, after the opening of the business, it is left behind in a filing cabinet. A business plan is a guide, but it must be constantly updated. Your business evolves, and your business plan must be too. Updating your business plan will help you to see if you are meeting the objectives set and see if your strategies are effective and adapt to the real-time of carrying out 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.
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