As with any business, a business plan is the first step to starting a successful spa. You will continuously reference—and potentially revise—your spa’s business plan to guide your growth and overall success. A business plan for a spa follows the same structure as any other, with a few caveats to be aware of. To stay competitive, spas often diversify their services to include a range of different beauty, fitness, and wellness offerings, with a strong focus on retail sales. Does this describe your spa, or, maybe, your competition? Your business plan will cement your spa’s identity, define its target demographics & competition, and illustrate how it may grow and evolve over time.
Below, we’ve outlined each section of your spa’s business plan, with the kind of information you should include in each. After reading, check out this free spa business plan template PDF for a visual that brings it all to life!
Unsure where to start planning your business? This downloadable PDF guides you through each step of crafting a professional spa business plan, giving you the confidence to approach investors, secure funding, and launch your dream spa!
The Executive Summary is a snapshot of your entire business plan. It provides a high-level understanding of your spa business and must generate enough interest in people—particularly potential investors—to continue reading until the end. Keep it engaging, informative and concise, effectively communicating the most important aspects of your spa business.
This section includes:
Begin with the name of your spa business, and its street address, neighborhood, town/city, state/province, etc.
This is where you state your spa’s core purpose, values and the principles that guide the business. Whatever you stand for and wish to promote, say it here.
This is a summary of your financial expectations. This includes:
You may also include when you expect to become profitable, as well as your 3-year & 5-year financial outlooks. If you require funding to open your spa, state how much you’ll need and how you will use it.
This section defines your spa’s identity, target market, and how you position yourself competitively. Readers will get preliminary insight into what makes your spa unique and appealing. Will you run a traditional day spa with primarily massage and skincare services, or include a diverse array of offerings? Is it a one-of-a-kind place for rejuvenation & recovery, or a zone of healing & mindfulness?
This section includes:
Define the theme you organize your spa business around, the ambiance you’re trying to create and the overall experience you aim to create for clients.
Who are your target clients, generally? What are their demographics, preferences, and behaviors? Include age groups, income & education levels, professions and lifestyle characteristics.
Identify any direct (other spas) or indirect (gyms, chiropractors, massage studios) industry competitors in your area and, potentially, in your niche. What do they offer? What are their strengths and weaknesses? Are they potentially missing the set of services you plan to offer? Which gaps can you fill in the market?
What sets your spa apart from the competition? This could be a unique combo of personalized wellness services, a specific atmosphere, flawless customer service, or anything else that makes your spa distinctive. Really sell it here!
Your market analysis section will focus on the spa industry, including current trends in wellness, beauty, and fitness, as well as target market demographics, and customer preferences specific to spa services. This section should demonstrate a deep understanding of the spa industry and the specific market conditions that will influence your business. It also illustrates growth opportunities and potential challenges that may arise.
This section includes:
Provide an in-depth look at the spa industry, including its current state, trends, and significant developments. This could include information on the growth of adjacent industries, including the wellness & beauty sector, or yoga & fitness.
Explore in detail the prevailing trends influencing the spa industry. The rise of holistic wellness, technological advancements and consumer demand for personalized service could affect your spa business. Discuss the growth potential these present for the spa market and how you’ll embrace these trends to enjoy that growth.
This is where you’ll include a detailed understanding of your target market and the specific segments of the population you aim to serve, highlighting their needs, desires, pain points, and how your spa caters to them. Think of this as a granular look at what you introduced above.
What is your target audience looking for in a spa experience, and how can your spa fulfill those needs better than the competitors you introduced above?
Companies use SWOT analyses all the time to find internal strengths & weaknesses, as well as external opportunities and threats. This analysis helps in formulating strategies to capitalize on strengths and opportunities while addressing weaknesses and mitigating threats.
This section describes how your spa business is organized, legally, and how it is run, from top to bottom. This illustrates the framework of your spa business so that internal & external stakeholders understand how the business is structured, who is in charge, and how key responsibilities are delegated. This is essential for effective and efficient management.
This section includes:
Define the legal structure of your spa business. Is it an LLC (Limited Liability Company), a corporation, an S corporation, sole proprietorship or partnership? Explain the reasoning behind this. For example, an LLC is attractive to many spa businesses because it provides personal liability protection, as well as ease in maintenance and broad flexibility in terms of taxation and structure 1 .
Define your spa’s ownership structure. List all the names and roles of key stakeholders and members of your management team.
Specify the number of employees your spa needs, their roles, and the qualifications or skills you’re looking for. For example, you may need massage therapists, estheticians, and even nutritionists, personal trainers or yoga instructors. Beyond that, you may also need someone with at least 10 years of experience running wellness businesses.
A continuation of above, clearly define the roles and responsibilities of each key staff member, from the management and operational sides to any specialized roles within the spa.
Outline how you plan to hire and keep employees. This could include recruitment strategies, training programs, and employee development plans. This section is particularly important toward attracting and retaining the best talent. It may be helpful to research how other successful spa businesses do this.
This section of your spa business plan highlights your spa's main offerings. It provides a comprehensive overview of what clients can expect when they book an appointment and how your services differentiate you from competitors. It also helps potential investors understand your spa business’s revenue streams.
This section includes:
Give a detailed list and description of all the spa services and treatments you offer.
Outline your pricing structure for each service. Give sound reasoning for how you arrived at these prices and how they compare to competitors in your market. This not only requires research into the spa market, but also economic data relevant to your town, city, state, etc.
Identify your suppliers for equipment, skincare products, and any other items essential to your spa operations. Detail the relationships you have or plan to set up with these suppliers. You may have to establish many partnerships depending on the breadth of services & products you offer.
Does your spa offer any unique treatments that you created and may have exclusive rights to? Highlight them in this section. Explain what makes these treatments special and how they contribute to your competitive advantage.
An effective Sales & Marketing Strategy is essential for attracting and retaining customers. It shows how you plan to promote your spa, reach your target audience, and build a loyal customer base. This section is critical to driving your spa’s revenue success.
This section includes:
Outline your overall marketing strategy. This should include both online (website, social media, paid media) and offline channels (physical marketing collateral). Specify your target audience and the key messages you want to convey across all channels.
Describe the channels through which you will sell your spa services. This could include online booking platforms (we happen to know of a great one), walk-ins, partnerships with hotels, fitness studios, chiropractors and other businesses/distribution methods.
Detail any promotional activities you plan to undertake to attract customers. Discuss your branding strategies and how you want your spa to be perceived in the market.
Outline how you plan to attract new customers to your spa. Additionally, describe your strategies for retaining existing customers, such as loyalty programs, special offers or membership plans.
This section is important because it proves the financial viability of your spa business. It offers a roadmap for potential investors, outlining how much capital you require, how you will use that capital, and when your spa is expected to become profitable. Above all, always be realistic and transparent in your financial projections to build trust with all internal & external stakeholders.
This section includes:
Break down your spa’s estimated startup costs. This could include expenses such as lease payments, renovations, equipment purchases, initial inventory, and marketing expenses.
This is a detailed financial projection for your spa. Include prospective income statements, balance sheets, and cash flow statements. The figures and graphs in this section are not arbitrary. Provide realistic assumptions and projections based on thorough market research.
A break-even analysis determines the point at which your spa will cover all its expenses and start generating profit. This analysis is necessary for understanding your timeline to profitability.
Clearly state how much funding you are seeking and how you plan to use it. Identify potential sources of funding, such as personal investment, loans, or equity financing.
Paint a clear picture of your spa. Describe how your location and facilities contribute to the ambiance, comfort and overall customer experience. Additionally, detailing equipment and technology requirements helps investors and stakeholders understand your operational needs.
This section includes:
Describe the location of your spa, including the address, size of the facility, and any unique features of the surrounding area.
Outline the terms of your lease, including the duration, monthly rent, and any special conditions. If you purchased the property, then provide details of the purchase.
Describe the layout and design of your spa, including floor plan, interior design elements, and how the space is optimized for a relaxing and comfortable experience.
List all equipment needed for spa operations. This could include massage tables, skincare machines, Cryotherapy chambers, sensory deprivation tanks, computer systems for scheduling, and any other essential technology for your spa business.
This is an important section for spas. It illustrates that your spa business operates within all legal and regulatory frameworks. Having all necessary licenses and adhering to health & safety standards is not only a legal requirement but also builds trust with customers and investors.
This section includes:
List the specific licenses and permits needed to run a spa in your location. These include business licenses and health department permits, as well as other industry-specific certifications, such as:
Detail the measures you have in place to ensure the health and safety of your clients and staff. Discuss compliance with industry standards and any additional precautions you are taking.
Providing details about insurance coverage is important for risk management. Describe the insurance coverage for your spa.
These include, but are not limited to:
Risk Analysis is crucial for demonstrating your awareness of, and preparedness to address, potential challenges. It proves to all stakeholders and investors that you have considered the uncertainties that can impact your business and have plans in place to mitigate them. Always be transparent in your risk analysis to build credibility and trust.
This section includes:
Identify and analyze potential risks and challenges to your spa business. These may be economic downturns, changes in consumer attitudes & preferences, or unexpected events, such as natural disasters.
Outline contingency plans for addressing the risks identified above. Describe how you plan to mitigate their impact and navigate challenges that may arise during your spa's operation.
List your strategies for minimizing or eliminating potential risks to your spa business. This may involve diversification of services, which increases revenue streams, helps your spa stay relevant, spreads your investments and attracts new clients. You may also list potential strategic partnerships, or emergency financial planning to weather economic uncertainties.
This last section has supplementary information that may provide a more comprehensive view of your spa business. The goal is to offer a more in-depth understanding of key aspects of your spa business without overwhelming the main body of the business plan.
This section includes:
Include any additional information that supports or complements the main body of your business plan. This could be:
Organize this section clearly and logically with each document or piece of information accurately labeled and referenced in the business plan where relevant.
It’s important to know that every business plan is arranged a bit differently, especially for spas, which offer such a diverse range of services. Think of this article and sample as a general template, be sure to conduct thorough research, and gather data to support your business plan. Make sure that your business plan is detailed and convincing for any potential investors you’ll need to fund your business. Choosing the industry standard for spa booking and management software is one way to show stakeholders that you’re serious about running a thriving business. Start your 30-day FREE trial and experience how Vagaro can help you start an efficient & profitable spa!