The thought of starting a spa can be equal parts exciting and daunting: It involves a lot of work and there’s a laundry list of things to consider—your financial plan, what spa services you’ll offer, and location, to name just a few. To simplify the process and set yourself up for success, creating a spa business plan is paramount.
A business plan helps you understand your goals and how to reach them. It also presents your vision to potential investors in a thorough and digestible format. Whether you’re launching a small day spa or a major medical spa, a well-crafted business plan will guide your strategy, clarify your objectives, and help attract angel investors.
Read on for a step-by-step guide to writing a spa business plan so you can set yourself up for success.
How to write a spa business plan
- Write an executive summary
- Craft a company overview
- Describe the services and products offered
- Provide a market analysis
- Detail your marketing plan
- Create a logistics and operations plan
- Create a financial plan
Writing a spa business plan is manageable when you break it down into these seven steps.
1. Write an executive summary
Every business plan needs an executive summary, which provides a high-level overview of your company, what you offer to the market, and what you hope to achieve. It should be clear, concise, and engaging—and even though it appears first in your business plan, it’s best to write it last, after you’ve worked through all the other sections.
In the executive summary, provide information on your spa’s concept, what services you offer, your target market, and how you plan to generate revenue. Also include your unique selling propositions (USPs). These are elements of your business that set you apart from the competition. Your USPs should answer, “What makes your business different from other spas?”
Perhaps you offer ultra-innovative treatments, facials specifically for sensitive skin, slimming body treatments, amazing packages for bridal and bachelorette parties, a unique location, or especially cool ambiance. It’s up to you to decide and describe what will make you stand out from other spas.
Here’s what you should include in an executive summary for your spa:
- Your spa concept. A day spa business plan will look different than a big resort spa. Describe your business concept in detail.
- Your vision and goals. Why are you opening a spa and what do you hope to achieve? What do you want to offer people? How will you deliver exceptional customer service?
- Description of services. What spa services and/or products will you offer and what makes them beneficial and enticing to customers?
- Your target market. Who is your spa for? What is your target audience?
- Your marketing strategy. How are you going to promote your business? How are you going to reach your target audience?
- Financial projections. How much revenue do you foresee earning?
- The ask. How much investor money are you hoping to secure?
- Your team. Who are the main people involved in your business?
2. Craft a company overview
This section should describe your spa and answer two core questions: “Who are you?” and “What do you plan to do?”
Your answers should give readers a clear understanding of what kind of spa you are, the services you provide, the value you offer, and why your business is worth investing in. Whether launching a skin-focused spa, a hair and nail franchise, or a medical spa offering cosmetic procedures, this is the place to lay it all out.
Some components to include in your company overview are:
- Your business structure (i.e., employee-based or contractor-based; franchise or small business)
- Your spa concept and services
- Information about the spa industry
- Who your spa is for
- Your short- and long-term goals
- Your company’s values
3. Describe the services and products offered
This section should include a thorough breakdown of the different services and/or products your spa will offer. Offerings will vary based on the spa concept, but may include massage therapy, facial treatments, anti-aging treatments like Botox, hair removal, microneedling, saunas, body wraps, and beauty products.
Include information about your pricing strategy and packages or subscriptions.
4. Provide a market analysis
A market analysis is an important part of your spa business plan, and it can make or break whether investors see you as profitable. It provides details about your industry, competition, customers, and business positioning. Some specifics to include in this section are:
- The target market for your spa
- Information on similar spas, including their pricing and marketing strategies
- Spa industry market size and potential for growth
- Trends and challenges
- Your spa’s customer demographics
Additionally, you can do what’s known as a SWOT analysis, a tool to help measure your spa concept’s potential for success by identifying different strengths and weaknesses, as well as opportunities and potential threats.
5. Detail your marketing plan
This section will explain how you plan to generate awareness of your spa and, in turn, revenue. For instance, are you planning on using social media to get the word out? Commercials? Emails? Paid ads? Shopify’s marketing automation tools can send email campaigns, organize your customers into segments based on their behaviors and preferences, and analyze the results for you.
Outline a clear marketing strategy and budget that aligns with your goals and attracts customers cost-effectively. Consider adding an ecommerce website for your spa through Shopify to book appointments, showcase your services and pricing, promote your values and team, offer special promos, and sell spa merch and products.
6. Create a logistics and operations plan
Logistics and operations include detailed information about bringing your spa to life, from production to equipment to hiring your management team and staff members. This section should cover information on pricing, whether or not you plan to sell beauty products, how to manage inventory and booking appointments, and anything else related to your business’s logistics.
Shopify offers several booking tools you can use to make the process seamless for your customers, and show potential investors that you’re taking steps to give your customers an excellent experience. A few appointment booking tools to consider are Bookeasy, Meety,Cowlender, and Apntly.
7. Create a financial plan
A financial plan explains how you plan to make your spa business financially successful. For instance, how many revenue streams will your spa have? Will you sell beauty products and merchandise in addition to services? How are you going to price your treatments to ensure a profit?
What you include will vary based on your target audience and business goals, but the key elements are a balance sheet, income statement, expenses (including rent or mortgage payments, cost of equipment and products, and more), and a cash-flow statement.
Tips for writing a spa business plan
- Create a detailed hiring strategy
- Highlight the importance of atmosphere
- Provide a tiered treatment menu
In writing a spa business plan, it’s important to focus on spa-specific details that drive success and attract customers. Including these elements in your plan will show investors that you’ve thoughtfully planned every aspect of your business.
Create a detailed hiring strategy
In your hiring strategy, highlight specific credentials you’ll require (like licensed massage therapists), retention strategies, training plans, and how you’ll create an excellent company environment for your employees. This will show investors that you value not only your customers’ experience but your employees, too.
Highlight the importance of atmosphere
Including a section on the design and décor of your spa can help bring your vision to life for investors. Describe the overall ambiance you want to create—whether it’s a modern luxury day spa or a cozy traditional spa—and how it will enhance a customer’s experience. To help visualize this, you could include a mood board that showcases a color palette, furniture styles, lighting, and other design elements.
Provide a tiered treatment menu
Include a sample menu of your services with different pricing tiers. Explain how your services are bundled and your strategy for upselling your services. You can determine this information by looking at the local competition. For instance, will you position your spa as affordable, mid-range, or premium?
Spa business plan FAQ
Is a spa a profitable business?
Spas can certainly be very profitable; however, the level of profitability will depend on demand in your area, spa services, ratings, operational efficiency and consistency, marketing, and more. If done with a strong business plan in order, a spa can be highly successful and lucrative.
How do I create a business plan for a spa?
You can easily create a spa business plan by using this free business plan template, which features seven important elements typically found in traditional business plans. These include the executive summary, company overview, products or services offered, market analysis, marketing plan, logistics and operation plan, and financial plan.
How much money do I need to start a spa business?
Starting a spa can require a significant upfront investment. How much money you need will depend on myriad factors, including but not limited to: location, construction, equipment, services offered, number of employees, and marketing costs. Create a spa business plan to detail your costs, revenue, and what you hope to accomplish.
