spa startup 101 – the real business of spa
TRANSCRIPT
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Spa Startup 101 – The Real Business of Spa
Presented by Lisa M. StarrWynne Business
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Why Spa Services?
Technician financing a job for yourself?“I can do this better than my current boss.”
Corporate Dropout? “The spa world must be so relaxing . . .”
Long-term exit strategy?“When I retire I’ll run my spa.”
You’d like to have a little more drama in your
life?
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U.S. Spa Market
57 million US Adults have been to a spa46% of consumers would choose appearance enhancement over an expensive vacation or luxury vehicle45 million consumers visited a day spa or resort spa in the last yearCurrently 12K+ day spas in the US
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What’s a spa today anyway?
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What’s a spa today anyway?
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What You Need
A planning processSolid financial projectionsMoneyRealistic expectationsThe ability to multi-task
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Identify Target Market
Who are your target clients?Socio-economic statusEthnicityAge
Where do they live, work?What services will they be interested in?
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Define your Vision
Expansion or NewResults or experience orientedTreatment philosophyBranding opportunities
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Examine financial realities
Project cost analysis Getting facility open will cost at least $200/sq ftYou also need 6-9 months of operating capital
New construction or existing building2000 sq ft spa = approx $475KBank will want you to contribute 20-30% Profits , when achieved, will typically range from 0-15%
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Financial ProjectionsRevenue-producing areas
Treatment roomsSalon DepartmentsCosmetics, Waxing, Medical servicesRetail Area
Non-revenue producing areasLounges, locker roomsCheck-in/Check-outEmployee areasStorageHallways, utilities, laundry
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Size matters!
How big does it need to be?How big can you afford it to be?Start small and grow laterBigger is not necessarily better
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Project Logistics
Site SelectionDevelopment Team
General Contractor, Architect, Consultants, Designers
Licensing & RegulationsDevelopment Timeline
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Creating the Spa Personality
Facility locationAmbiance Floor planDesign & décorRoom LayoutAmenities
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What services is your target market seeking?
NailsMeditation/MindClasses/LecturesEastern modalitiesFitnessGroup Events
SkincareMakeupBody Treatments HydrotherapiesWaxingMassage
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Service AnalysisMost PopularMost Profitable
Facials and Makeup = retail salesMassage = low cost of service delivery
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Service MenuBasic ServicesService Packages or GroupsServices for Men & WomenSignature ServicesSeasonal and Special OfferingsUpselling OpportunitiesTie-ins to theme or branding
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Choosing product vendors
Similar PhilosophySupport & Training assistanceCost per treatment analysisEducationRetailing synergies/Price pointsPackaging
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Building a Brand Identity
Mission & Vision Statements
Logo & graphics
Facility – color scheme and design
Staff Uniforms
Service Menu, Brochures & Collateral Materials
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Building a Brand Identity - cont’d
Private Label Products
Signature Services
Web Site
Spoken cues & scripting
Training, training, training
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Assembling a Team
Management TeamSomeone in management should have spa or
salon experienceBut not necessarily everyone!
Customer Service StaffOther client-facing industries an excellent
resource – hotels, restaurants, retailSpa Service Providers
Care and feedingEmployees vs I.C.
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Your Compensation Plan
Labor is your single biggest expenseTraditional approach – commissionModern approach – treatment rates, hourly +, team-based, benefitsKnow what your competition is doingTotal payroll = < 60% of total revenueGet it right the first time!
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The Human Resource Component
Creating underlying structureOrg ChartsPosition descriptionsStaff HandbookOperations manualsOrientation & Training programsOngoing communication plan
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Continuous Evolution
Make continual facility updatesChange artworkRemerchandising/Floor movesSeasonal menu additionsExamine what works, eliminate what doesn’t
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Current Trends
Indigenous ingredients & treatmentsNew target markets – men, teens, Fusion treatmentsSocial Spa-ingGreen SpasMedicalDon’t forget the stress relief
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Future Growth Opportunities
Clinical Esthetic ServicesMedical Esthetic ServicesPreventive HealthLifestyle Management and WellnessFitnessEvent Venue
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Barriers to Success
Initial UndercapitalizationNot understanding your niche, or not having a niche at allThinking it will “run itself”Not investing in education & trainingThe wrong compensation planLack of qualified management
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Care and Feeding
Foster team-buildingProvide visionary leadershipPay attention to quality assuranceValue learningCompensate the behaviors you wantMake it fun and fulfillingExpect more competition—it’s coming
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Spa Startup 101Thank you for your attention!
Q & A with
Lisa M. [email protected]
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