Any manager of a new spa business faces the challenge of establishing a profitable business in a difficult industry. But, unfortunately, sometimes some spas can offer the best treatments, the greatest comforts to the client, and the best attention and even 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 common mistake is immediately jumping into real work without thinking about issues such as the target audience or the business’s competitive advantage. Failure to plan for these and other aspects of a spa business plan before opening can bankrupt the business.
Why it is essential to make 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 put on paper, other aspects are often overlooked and just as important. Planning all these aspects gives you a series of advantages:
- You can anticipate possible economic problems and prepare for them
- You will put your goals and priorities into writing
- 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, if you are thinking of obtaining financing to start your business, a business plan is a must.
How to make a basic business plan for a spa?
If you need a basic business plan for your business, follow these steps:
- Problems 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 for the problems of your target audience
- Your products and services. What can you offer them?
- Business model
- How are you going to make money? Which services are most advantageous for you to provide?
- Target audience
- Who are your customers? What will you do to make them recognize you?
- Competitive advantage
- What does your spa offer that makes it stand out 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 cover expenses? What is the monthly cost of running the business? What to do in case of not covering the expenses?
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. However, Maven Business Plans spa management software can help you with your business’s management and marketing tasks and obtain financial statistics. Not only will this software save you a lot of time, but it will also eliminate the need to pay for additional services like a booking website, automatic SMS, and email appointment reminders, as it has them included.
For more information, please visit: https://www.mbplans.com/
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 it is left in a file cabinet after the opening of the business. A business plan is a guide, but it must be constantly updated. Your business evolves, and your business plan should be 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.
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