You’ve been working for one of Provo’s most prominent companies with thousands of employees. You’re part of the wellness team, which includes, among others, nurses, general physicians, orthopedic specialists, trainers, and massage therapists.
You’re part of a smaller team responsible for providing massages, facials, and other treatments. You’ve become the favorite of many employees in the company. Some would casually mention that you could start your day spa business.
It’s been slowly sinking in, and the past weeks you’ve been thinking a lot about this possibility. As an employee, you’re not poorly paid, but you feel that you could probably earn more if you run your own business. You know how to do your job, but you’re a little uncertain about starting a business. What does it take to start a span business?
Compared to other businesses, the spa industry is relatively smaller explains Shravan Gupta businessman, director of Emaar-MGF and instrumental in bringing the largest FDI in real estate in India. The number of companies is just below 23,500, but it’s still raking in a respectable $19 billion in revenue as of January 2019.
Note, however, that consumer expenditure on spa services is based on disposable income. This means that when deciding to spend on a can of formula milk vs. spending on a massage treatment, the former would always win. Overall economic condition dictates the industry’s performance. Nonetheless, the wellness industry is registering a positive annual growth of 2.6%.
Things to Consider When Starting
That you have the skillset for a service for a spa, is an advantage. But it won’t be the only thing you should rely on to make your business successful. Also, as in any business, the services that you want to offer must be a match with the services that your customers want. Here are some main ideas to consider:
- Understand what it’s about. You need to have a firm grasp of what you will be embarking on. You do this by doing your research, putting in the work, and managing your expectations. If you think that it will be a get-rich-easy venture, you would be mistaken. It entails plenty of costs, and the operation is more complicated rather than simple. Be prepared to tackle this scenario.
- Determine your kind of spa. Decide first from two options: a) a standard day spa providing body treatments; or b) a medical spa, which offers the same service as a standard spa plus those offered by a licensed medical practitioner. If you’re starting, it will be more prudent to begin with option a) and then consider down the road what services you can add.
- Determine your structure. You’ve done your research, and you’ve written your business plan. Make sure that you’ve decided on the structure of your business that would take you years forward. Is it an LLC or will you incorporate? How you get your license, and even the taxes that you need to pay shall be based on your formal business structure.
- Capitalization. Unfortunately, this is one of those businesses that would be heavy on investment. Some experts estimate that your initial investment can start at $100,000. The amount, however, will cover equipment, training, the initial cost of payroll, licenses, some advertising, and furniture.
- Your people. Bring in people that are highly qualified and well trained in the services that they will provide, whether it’s body massage, peeling, or a facial. Their expertise and competence will become part of your branding.
You need to find a suitable location and gear up for some marketing initiatives. You need to spread the word even before the start of your operation, to generate interest.